July 15, 2020

Financial Report for the Fiscal Period Ended May 31, 2020
(December 1, 2019 – May 31, 2020)

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:

August 24, 2020
August 17, 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 May 31, 2020
(December 1, 2019 – May 31, 2020)(1) Operating results(Percentages show changes from the corresponding amounts for the previous period.)
Operating revenue

Fiscal period ended
May 31, 2020
Fiscal period ended
November 30, 2019

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

14,984

(3.6)

8,206

(5.5)

7,333

(6.2)

7,332

(6.2)

15,542

4.7

8,680

0.9

7,818

1.2

7,817

1.2

Basic earnings per unit

Return on unitholders’equity (ROE)%

Ordinary profit tototal assets

Ordinary profit tooperating revenue

Yen%%
Fiscal period ended
9,507
2.9
1.4
48.9
May 31, 2020
Fiscal period ended
10,1363.1
1.5
50.3
November 30, 2019
(Note) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (771,224 units for the fiscal period ended November 30, 2019 and for the fiscal period ended May 31, 2020).

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(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
May 31, 2020
Fiscal period ended
November 30, 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

9,504

7,329

4

3

9,508

7,332

10,137

7,817

–

–

10,137

7,817

Payout ratio

Distribution
ratio tounitholders’equity%%Fiscal period ended
100.0
2.9
May 31, 2020
Fiscal period ended
100.0
3.1
November 30, 2019
(Note) The ¥4 in cash distributions in excess of earnings per unit for the fiscal period ended May 31, 2020 comprises ¥4 inallowance for temporary difference adjustments. There are no distributions on reduction of unitholders’ capital for tax
purposes.

(3) Financial position

As of May 31, 2020

Total assets

Net assets

Millions of yen
525,686

Millions of yen
255,700

515,480

256,198

As of November 30, 2019
(Reference) Unitholders’ equity
As of May 31, 2020:
As of November 30, 2019:

Unitholders’ equity tototal assets
%
48.6
49.7

Net assets per unit
Yen
331,551
332,196¥255,700 million¥256,198 million(4) Cash flows

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

29,648(31,151)

2,074

16,756

11,533(169)(7,978)16,185-2-

2.

Forecasts of results for the fiscal period from June 1, 2020 to November 30, 2020 andthe fiscal period from December 1, 2020 to May 31, 2021
(Percentages show changes from the corresponding amounts for the previous period.)
Operatingrevenue
Millionsof yenFiscal period ending
November 30, 2020
Fiscal period ending
May 31, 2021

Operatingprofit% Millionsof yenOrdinary
profit% Millionsof yen(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unitCashdistributions
per unit

Profit% Millionsof yen

%

Yen

Yen

14,945

(0.3)

7,919

(3.5)

6,973

(4.9) 6,972

(4.9)

9,040

–

14,921

(0.2)

8,160

3.1

7,158

2.7

2.7

9,280

–

7,157

(Reference) Forecasted profit per unit (forecasted profit / total projected number of investment units issued at end of period)
for the fiscal period ending November 30, 2020:¥9,040for the fiscal period ending May 31, 2021:¥9,280* 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 May 31, 2020

771,224 units

As of November 30, 2019

771,224 units

Number of treasury units at end of period
As of May 31, 2020

– units

As of November 30, 2019

– units(Note) Please refer to “Per Unit Information” on page 35 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 18th Fiscal Period from June 1, 2020 to November 30, 2020 and the 19th Fiscal Period
from December 1, 2020 to May 31, 2021” on pages 11 through 12 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.

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Index
1. Asset Management Status .............................................................................................................................. 5(1) Asset Management Status ...................................................................................................................... 5(2) Investment Risk ................................................................................................................................... 13
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 ............................................. 36
3. Reference Information ................................................................................................................................. 38(1) Composition of Invested Assets ........................................................................................................... 38(2) Investment Assets ................................................................................................................................ 39-4-

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 May 31, 2020, the Investment Corporation disposedof beneficiary interests of real estate in trust of A-PLACE Shinbashi Ekimae, in addition to having
acquired Ebisu Prime Square (51% co-ownership interest). Consequently, the Investment Corporation
held 44 properties (with the total acquisition price of ¥509,185 million) at the end of the fiscal period
under review.
(B) Investment Environment in the Fiscal Period Under Review
In the first half of the fiscal period under review, the Japanese economy continued on a trend of
gradual recovery on the whole underpinned by improvement in the employment and income
environments, and despite apparent weakening still prevailing with respect to exports andmanufacturing. However, due to rapidly deteriorating business conditions as a result of requests forthe public to stay at home and other measures brought about by the spread of COVID-19 in February2020 and thereafter, the outlook remains uncertain.
With respect to the environment surrounding retail properties, whereas consumer sentiment has been
deteriorating rapidly, the consumer confidence index is currently showing some signs of bottoming
out, according to the Monthly Consumer Confidence Survey released by the Economic and Social
Research Institute, Cabinet Office, Government of Japan. Moreover, measures taken by respective
nations restricting travel and immigration amid proliferation of COVID-19 have affected demand
related to inbound tourism. For instance, the number of overseas visitor arrivals to Japan reached amonthly record low in April 2020, followed by May 2020, according to the Japan National Tourism
Organization.
In the rental office market, both occupancy rates and rents have held to high levels particularly in thefive central wards of Tokyo (Chiyoda-ku, Minato-ku, Chuo-ku, Shibuya-ku and Shinjuku-ku).
Meanwhile, the average vacancy rate in the five central wards of Tokyo has continued holding to the
1% range, at 1.64% as of the end of May 2020, according to data published by Miki Shoji Co., Ltd.
Rent levels have been continuing on an upward trajectory as they encounter their longest upward
phase of gains ever with the average rent having been increasing for 77 consecutive months. In major
cities outside Tokyo, average vacancy rates have also remained low while rent levels have been
holding to a moderate upward trajectory.

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In the J-REIT market, whereas asset sizes have continued to expand against a backdrop of the interestrate environment remaining at low levels and a strong real estate market, the situation has become
unstable given developments such as a brief yet substantial drop in the Tokyo Stock Exchange REIT
index mainly over concerns about financial results due to the spread of COVID-19.
(C) Investment Performance
The Investment Corporation acquired beneficiary interests of real estate in trust of Ebisu Prime
Square (51% co-ownership interest) (with the acquisition price of ¥30,700 million) as trust assets on
January 10, 2020, and disposed of beneficiary interests of real estate in trust of A-PLACE Shinbashi
Ekimae (with the disposition price of ¥21,000 million) as trust assets on March 19, 2020, 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 ¥509,185 million) with the total leasablearea of 425,551.96 m2 (128,727 tsubo).
The trend of monthly average occupancy rate (Note) during the fiscal period under review is asfollows:
December31, 2019

January 31, February 29,
2020
2020

March 31,2020

April 30,
2020

May 31,
2020

Urban Retail
Properties

99.8%

99.8%

99.8%

99.8%

99.5%

99.8%

Tokyo Office
Properties

100.0%

99.7%

99.8%

99.8%

99.7%

99.7%

Activia
Account
Properties

99.7%

99.5%

99.5%

99.9%

99.9%

99.9%

Total

99.8%

99.7%

99.7%

99.8%

99.7%

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 cutting unit energy consumption, etc. by an annual average of 1% over the medium
to long term. Initiatives carried out in the fiscal period under review include upgrading to LED
lighting at some common areas of DECKS Tokyo Beach, icot Tama Center, Osaka Nakanoshima
Building, icot Omori and EDGE Shinsaibashi, and some private areas at A-FLAG KOTTO DORI, APLACE Shibuya Konnoh, A-PLACE Gotanda Ekimae, A-PLACE Shinagawa Higashi, Ebisu Prime
Square, A-PLACE Bashamichi and EDGE Shinsaibashi. Other initiatives included installing air
conditioning units and elevators with those offering greater energy efficiency at A-FLAG SAPPORO;
asphalt pavement works incorporating recycled aggregate at icot Nakamozu, and; replacing toilets
with those that use water-saving equipment at Osaka Nakanoshima Building.
Moreover, we continue to engage in annual initiatives geared to acquiring green building
certifications. During the fiscal period under review, we have acquired the CASBEE (Comprehensive
Assessment System for Built Environment Efficiency) for Real Estate certification for the two
properties Q plaza SHINSAIBASHI (A class) and A-FLAG BIJUTSUKAN DORI (S class). We havealso acquired the BELS certifications for the one property icot Nakamozu (Kohnan building: fivestars, bank building: one star). As such, a total of 26 of our properties have acquired green building
certification, which amounted to 55.7% of our holdings calculated on the basis of gross floor area (asof May 31, 2020).
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At Ebisu Prime Square we took the opportunity to raise awareness of ESG issues by taking part in the
Earth Hour event which involved temporarily switching off the some of the lights located in Ebisu
Prime Square’s common areas enlisting cooperation of its tenants. We also cooperated in community
activities to coexist with nearby businesses, residents and cities. At Osaka Nakanoshima Building thisinvolved working in conjunction with nearby buildings in carrying out the Hikari-no-Mi (fruits oflight) project which involves having employees at nearby companies and their families draw smilingfaces on fruit bags, then fitting those fruit bags with LED lights and hanging them on trees located on
the premises. We also held a Shiodome Marché open market event at Shiodome Building.
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 borrowed funds of ¥31,000 million inorder to cover the acquisition costs for beneficiary interests of real estate in trust for the above one
property and related costs, and made a repayment of ¥21,000 million from the disposition of
beneficiary interests of real estate in trust for the above one property. The Investment Corporation
also borrowed a total of ¥18,298 million largely in order to cover repayment of borrowings andinvestment corporation bonds that had come due, and worked to otherwise maintain a stable financialbase through ongoing moves that have included diversifying repayment dates. As a result, as of theend of the fiscal period under review, the balance of interest-bearing debt was ¥244,348 million(borrowings of ¥227,348 million and investment corporation bonds of ¥17,000 million). The ratio ofinterest-bearing debt to total assets (LTV = Balance of interest-bearing debt / Total assets x 100) was
46.5% as of the end of the fiscal period under review. The long-term debt ratio and the ratio of fixedinterest debt to total interest-bearing debt were 95.5% and 88.1%, 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 ¥14,984 million, ¥8,206 million, and ¥7,333 million, respectively, for the fiscal period
under review, and profit was ¥7,332 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the
Articles of Incorporation), the decision was made with respect to paying distributions of profits of¥7,329,712,896, which is the entire amount of the net profit defined in Article 136, Paragraph 1 of theInvestment Trust Act, with such amount excluding a fraction of less than ¥1 of distributions perinvestment unit, with the aim that as greatest as possible distributions of profits would be included intax 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”). In addition, distributions in excess of earnings shall be made in an amount decided
by the Investment Corporation and equivalent 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 account effects of the deduction in net assets on distribution amounts. During the fiscal
period under review, the Investment Corporation has accordingly decided to distribute ¥3,084,896 as
distributions related to allowance for temporary difference adjustments, calculated to exclude a
fraction of less than ¥1 of distributions in excess of earnings per investment unit, with the amountequivalent to deferred losses on hedges of ¥3,443,618. Consequently, distributions per investment unit
resulted in ¥9,508.

-7-ii) Outlook for the Next Fiscal Period(A) Investment Environment for the Next Fiscal Period
Although the declaration of a state of emergency (hereinafter referred to as the “Declaration of a Stateof Emergency”) regarding the novel coronavirus disease (COVID-19), which was issued on April 7,2020 under Article 32, Paragraph 1 of the Act on Special Measures for Pandemic Influenza and New
Infectious Diseases Preparedness and Response (Act No. 31 of 2012, including subsequent revisions),
was lifted on May 25, 2020, for all prefectures in Japan, the impact of temporarily closing businesses
and other measures to prevent the spread of infections during the state of emergency remains. In theJapanese economy going forward, in addition to concerns over a second wave of infections, we
believe it is necessary to carefully monitor corporate earnings, employment and income environments
and other economic trends on the domestic front. In addition, we must also pay attention to the risksof a global economic downturn, etc. caused by the spread of COVID-19 around the world.
In the rental office market, although the conditions are expected to remain stable, we believe that thediversification in workstyles, including teleworking and other measures brought about by requests forthe public to stay at home following the Declaration of a State of Emergency, has accelerated and it isnecessary to keep a close eye on the impact of the COVID-19 pandemic going forward. With respect
to the environment surrounding retail properties, although we are currently encountering prevailingsigns of recovery in consumer sentiment, the difficult conditions caused by the decrease in numbers ofoverseas visitor arrivals to Japan and other effects of COVID-19 are likely to continue for the time
being. While the J-REIT market is expected to continue to move in prices in the short term, depending
on developments of the COVID-19 pandemic, as low interest rates continue in the environment, longterm capital inflows can be expected against a backdrop of factors that include consistent J-REIT
performance and relatively high dividend yields.
Amid this environment, the Investment Corporation will fulfill its social responsibility in preventing
the spread of infections, etc. while minimizing the impact of the COVID-19 pandemic through its
abundant management expertise, and pursue internal growth utilizing the strength of its portfolio withrigorously selected investment assets, aiming to improve 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 rigorously 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.
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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.
d. Financial Strategy
Having a sound financial strategy in an effort to conservatively control LTV as well as make stablelong-term borrowings and diversify maturities (diversifying repayment dates), the Investment
Corporation will endeavor to build a stable financial base with a solid bank formation based ongood relationships with major financial institutions. In addition, with the aim of diversifying meansof raising funds, the Investment Corporation will issue investment corporation bonds while paying
close attention to trends in financial markets. Concerning the issuance 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 the aim of achieving long-termand stable growth.
(C) Significant Subsequent Events
Not applicable.

-9-(D) Outlook of Investment Performance
For the fiscal period ending November 30, 2020 (18th fiscal period: June 1, 2020 to November 30,2020), 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 18th Fiscal Period from June 1, 2020 to November 30, 2020 and the 19th Fiscal Period from
December 1, 2020 to May 31, 2021” on pages 11 through 12.
Operating revenue¥14,945 million

Operating profit¥7,919 million

Ordinary profit¥6,973 million

Profit¥6,972 million

Cash distributions per unit

¥9,040Cash distributions in excess of earnings per unit¥–

If it is assumed that there are no changes in “Assumptions for Forecasts of Investment Performancefor the 18th Fiscal Period from June 1, 2020 to November 30, 2020 and the 19th Fiscal Period from
December 1, 2020 to May 31, 2021” on pages 11 through 12, the outlook of investment performancefor the fiscal period ending May 31, 2021 (19th fiscal period: December 1, 2020 to May 31, 2021) isestimated as follows.
Operating revenue¥14,921 million

Operating profit¥8,160 million

Ordinary profit¥7,158 million

Profit¥7,157 million

Cash distributions per unit

¥9,280Cash 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.

- 10 -

Assumptions for Forecasts of Investment Performance for the 18th Fiscal Period from June 1, 2020 toNovember 30, 2020 and the 19th Fiscal Period from December 1, 2020 to May 31, 2021
Item
PeriodAssumptions
・ 18th fiscal period (June 1, 2020 to November 30, 2020) (183 days)
・ 19th fiscal period (December 1, 2020 to May 31, 2021) (182 days)

Investment
portfolio

・ Our forecasts of investment performance assume that the Investment Corporation
holds 44 properties as of today (the “Assets Currently Held”).
In the fiscal period ending November 30, 2020 (18th fiscal period), on June 8, 2020,
some of the structures of EDGE Shinsaibashi (the “Disposed Assets”) have been
disposed.
・ 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.
・ The Investment Corporation expects to record ¥25 million in the fiscal period
ending November 30, 2020 (18th fiscal period) as a gain on the sale of Disposed
Assets.
・ In addition to the above, a certain amount of the expected lower leasing businessrevenue, etc. due to the impact of the COVID-19 pandemic has been factored into
the calculations.

OperatingexpensesNon-operating
expenses・ 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.
・ 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. For property tax and city planning tax, ¥1,270 million and ¥1,271 million
for the Assets Currently Held will be expensed in the fiscal period ending November
30, 2020 (18th fiscal period) and in the fiscal period ending May 31, 2021 (19thfiscal period), respectively.
・ 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 ¥1,336 million and ¥1,353 million for the 18th fiscal period
ending November 30, 2020 and the 19th fiscal period ending May 31, 2021,
respectively.
・ We expect interest expense and other borrowing-related expenses of ¥945 million in
the fiscal period ending November 30, 2020 (18th fiscal period) and ¥1,002 million
for the fiscal period ending May 31, 2021 (19th fiscal period).

- 11 -

Item

Assumptions

・ As of today, the Investment Corporation has a balance of interest-bearing debt of¥244,348 million (borrowings of ¥227,348 million and investment corporation
bonds of ¥17,000 million).
・ We assume that there will be refinancing of all interest-bearing debt due by the endof the fiscal period ending November 30, 2020 (18th fiscal period) and the fiscal
Interest-bearing
period ending May 31, 2021 (19th fiscal period) (18th fiscal period: short-term
debtborrowings of ¥5,998 million; 19th fiscal period: short-term borrowings of ¥5,000
million and long-term borrowings of ¥12,500 million).
・ We assume the LTV ratios as of November 30, 2020 and May 31, 2021 are both tobe approximately mid-46%.
・ 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 19th fiscal period (May 31, 2021).
・ The cash distributions per unit for the 18th fiscal period ending November 30, 2020
and the 19th fiscal period ending May 31, 2021 have been calculated in accordancewith the total projected number of investment units issued as of the end of each of
the fiscal periods which is 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
assets, are calculated assuming no fluctuation. Accordingly, we do not anticipate
distributions in excess of earnings (allowance for temporary difference adjustments)
Cash distributions
for the 18th fiscal period ending November 30, 2020 or the 19th fiscal period ending
in excess of
May 31, 2021.
earnings per unit
・ 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 of
Other
Japan that affect the above forecasts.
・ We assume that there will be no material changes in general economic conditions orreal estate markets.

- 12 -

(2) Investment Risk
The following changes were made in “Investment Risk” in the latest Securities Report (filed on February
27, 2020; prepared in Japanese only). The changed parts are underlined.

(1) Risk Factors(Omission)i) Risk Related to Investment Units and Investment Corporation Bonds Issued by the Investment
Corporation(Omission)(B) Risk Related to Fluctuations in Market Prices
Recently, the novel coronavirus disease (COVID-19) has been spreading globally, which has caused
business to stagnate and had a negative impact on economic activities in various ways. Under thesecircumstances, especially for retail properties and hotel use, the spread of COVID-19 has affected
not only the entire Japanese economy, but also the global economy. Due to concerns that this will
have an immediate negative impact on income, there has been downward pressure on stock prices inthe stock market. Because the Investment Corporation holds some retail properties that include
accommodation facilities (hotels), these investment units are no exception. Amid growing concernsthat the impact will spread or persist in the future, there is a risk of further impact on the overallmarket.
In addition to the above, the market prices of these investment units are affected by changes ininterest rates, exchange rates and other changes in financial markets; the market environment andfuture economic trends; trading volume of these investment units by domestic and overseas
investors; and social events, etc. that could affect the trustworthiness of the real estate transactions,
including comparisons with other financial instrument investments and earthquakes, tsunamis,liquefaction and other natural disasters.
The Investment Corporation mainly invests in real estate, etc. and real estate-backed securities andthe market prices of these investment units are affected by factors surrounding the real estate market,
such as fluctuations in appraisal values of real estate; trends in the real estate market; the relationshipbetween real estate supply and demand; the economic environment surrounding corporations that
can affect real estate demand; and changes, etc. in legal, accounting and tax systems.
If the Investment Corporation issues new investment units in order to raise the funds necessary to
carry out this business, the cash distributions and net assets per unit of these investment units may bediluted, and the market prices of these investment units may be affected as a result of the impact on
the balance of supply and demand for these investment units in the market.
In addition, if the Investment Corporation or the Asset Manager, or other investment corporation orasset manager receives administrative guidance or an administrative sanction or is subject toadministrative disposition by a regulatory authority, etc., the market prices of these investment units
could drop.
Also, the prices of the investment corporation bonds could fluctuate due to the market environment,such as changes in interest rates, and could be affected by a review or downgrade of the rating.
(Omission)ix) Other
Risk Related to Pandemics and Natural Disasters, Etc.
Recently, COVID-19 has been spreading. Therefore, it is necessary to continue closely monitoring
the situation to determine if the spread of infections will have an immediate negative impact on theoffice properties held by the Investment Corporation. In addition, the Investment Corporation holds
some retail properties that include accommodation facilities (hotels), and there are concerns about
the effects on these assets. For retail properties, there is a possibility of delinquent rent payments andrequests from tenants for rent reductions due to sluggish sales resulting from the spread of COVID19 and a prolonged outbreak of infections, as well as the risk of vacancies arising from tenants
moving out.
- 13 -

Furthermore, if there is a prolonged outbreak of infections, the business of the Asset Manager could
stagnate in various ways and as a result, the financial results of the Investment Corporation could be
negatively impacted.
As it is still uncertain when the COVID-19 pandemic will be brought under control and it is difficult
to predict the overall impact, there is a possibility of risks arising other than those for the negative
effects already mentioned. As a result, the financial position and business results of the Investment
Corporation could be negatively impacted.
In addition to the above, it is generally difficult for only the Investment Corporation to avoid therisks of natural disasters, pandemics, etc., as well as the large-scale natural disasters, etc. in the past
few years due to climate change and other factors, and damages arising from pandemics, natural
disasters, etc. could have a significant negative impact on the financial position and business resultsof the Investment Corporation.

- 14 -

2. Financial Statements(1) Balance Sheet(Unit: Thousands of yen)
As of November 30, 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 May 31, 2020

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

13,486,961
3,269,588
679,207
571,533
16,50818,023,799

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

84,702,637(13,975,701)
70,726,935
734,704(215,485)
519,218
1,367,743(387,964)
979,779
263,247(143,002)
120,245424,862,322
8,478
497,216,979

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

9,055,086
1,186
9,056,272

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

1,261,641–
10
38,322
1,299,975
507,573,227

98,652
98,652515,480,977

89,44789,447525,686,474

(Unit: Thousands of yen)
As of November 30, 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*3*2- 16 -

As of May 31, 2020

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

1,005,767
10,998,000–
12,500,000
149,224
952,182817
330,044849,827
4,156
32,904
26,822,925

17,000,000
199,050,000

17,000,000
203,850,000

21,543,424

22,309,458–
237,593,424
259,282,705

3,443
243,162,902
269,985,827

248,370,846

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

7,829,267

7,333,243

7,829,267
256,189,316

7,333,243
255,704,090

8,954
8,954
256,198,271
515,480,977(3,443)(3,443)
255,700,646
525,686,474*2

(2) Statement of Income(Unit: Thousands of yen)Previous fiscal period(From June 1, 2019
to November 30, 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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
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 December 1, 2019
to May 31, 2020)

*1
*1
*2

14,063,573
1,136,219
343,063
15,542,856

*1
*1
*2

13,903,877
936,713
143,798
14,984,389*1

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

5,470,679
1,104,664
15,02936,852
3,300
147,558
6,778,084
8,206,304

59
967
663
–
1,690

72
698
9,535
381
10,687636,20335,543642,50745,976

9,905

9,205

181,347500
863,501
7,818,311
7,818,311
614
19
634
7,817,677
11,5897,829,267

185,307500
883,497
7,333,494
7,333,494
828
(5)
823
7,332,671
572
7,333,243

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

Unitholders’capitalBalance at beginningof period
Changes during
periodDividends ofsurplusDistributions inexcess of earnings
from allowance 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 during
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 during
periodBalance at end of
period7,817,677–(Unit: Thousands of yen)
Valuation and translation
adjustments
Total
Total net
Deferredvaluationassetsgains orandlosses ontranslation
hedgesadjustments
Balance at beginningof period
Changes during
periodDividends ofsurplusDistributions inexcess of earnings
from allowance fortemporarydifference
adjustments(10,797)

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

8,954

8,954

256,198,271- 18 -

Current fiscal period (From December 1, 2019 to May 31, 2020)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Unitholders’capitalBalance at beginningof period
Changes during
periodDividends ofsurplus
Reversal of
allowance fortemporarydifference
adjustments

248,370,846

Surplus

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

10,797(10,797)

10,797

Unitholders’capital, net

Unappropriatedretainedearnings(undisposed
loss)

Total surplus

Totalunitholders’equity248,360,049

7,829,267

7,829,267

256,189,316(7,817,897)(7,817,897)(7,817,897)(10,797)(10,797)–

7,332,671

7,332,671

7,332,671

10,797

ProfitNet changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
period–10,797

10,797

10,797(496,023)(496,023)(485,226)*1
248,370,846––

248,370,846

7,333,243

7,333,243

255,704,090(Unit: Thousands of yen)
Valuation and translation
adjustments
Total
Total net
Deferredvaluationassetsgains orandlosses ontranslation
hedgesadjustments
Balance at beginningof period
Changes during
periodDividends ofsurplus
Reversal of
allowance fortemporarydifference
adjustments

8,954

8,954

(7,817,897)–

ProfitNet changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
period256,198,271

7,332,671(12,398)(12,398)(12,398)(12,398)(12,398)(497,625)(3,443)(3,443)

255,700,646- 19 -

(4) Statement of Cash Distributions
Previous fiscal period(From June 1, 2019
to November 30, 2019)

Current fiscal period(From December 1, 2019
to May 31, 2020)

AmountAmount¥7,829,267,374¥7,333,243,684

I

Unappropriated retained
earnings

II

Additional amount of cash
distributions in excess ofearnings–¥3,084,896

Of which, allowance fortemporary difference
adjustments–¥3,084,896

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

Of which, reversal of
allowance for temporary
difference adjustments¥10,797,136–¥7,817,897,688¥7,332,797,792[¥10,137][¥9,508]

Of which, distributions ofprofits¥7,817,897,688¥7,329,712,896[Of which, distributions ofprofits per unit][¥10,137][¥9,504]

Of which, allowance fortemporary difference
adjustments–¥3,084,896[Of which, cash
distributions in excess ofearnings per unit
(Related to allowance fortemporary difference
adjustments)]

[¥–]

[¥4]

Earnings carried forward¥572,550¥3,530,788

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

Calculation method for
distributions

Based on the distribution policy
set forth in Article 35, Paragraph
1 of the Articles of Incorporationof the Investment Corporation,
distributions shall be limited tothe amount of net profit in excess
of an amount equivalent to ninety
hundredths (90/100) of
distributable profits, as stipulated
in Article 67-15, Paragraph 1 of
the Act on Special Measures
Concerning Taxation. In
consideration of this policy, we
will pay distributions of profits of¥7,817,897,688, which is theamount of the unappropriatedretained earnings less the reversalof allowance for temporary
difference adjustments (refers to
stipulations of Article 2,
Paragraph 2, Item 30 of theRegulations on Accountings ofInvestment Corporations), except
a fraction of less than ¥1 of
distributions per investment unit.

- 21 -

Based on the distribution policy
set forth in Article 35, Paragraph
1 of the Articles of Incorporationof the Investment Corporation,
distributions shall be limited tothe amount of net profit in excess
of an amount equivalent to ninety
hundredths (90/100) of
distributable profits, as stipulated
in Article 67-15, Paragraph 1 of
the Act on Special Measures
Concerning Taxation. In
consideration of this policy, we
will pay distributions of profits of¥7,329,712,896, which is theamount of the net profit definedin Article 136, Paragraph 1 of the
Act on Investment Trusts andInvestment Corporations, except afraction of less than ¥1 of
distributions per investment unit.
Based on the policy on
distribution of cash exceeding net
profit set forth in Article 35,
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 ¥3,084,896
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¥3,443,618. As a result,distributions are to amount to¥7,332,797,792 for the fiscal
period under review.

(5) Statement of Cash Flows(Unit: Thousands of yen)Previous fiscal period(From June 1, 2019
to November 30, 2019)

Current fiscal period(From December 1, 2019
to May 31, 2020)

7,818,311
1,299,058

7,333,494
1,334,606

9,905

9,205

(59)
671,747
181,347
61,777
213,632
165,699(72)
688,484
185,307125,267(49,018)(209,406)

1,493,070

20,787,757

37,505
303,762
19,133
7,278(83,861)(10,040)
12,188,268
59(653,684)(1,108)
11,533,534–(156,233)(11,313)268,249
8,590
25,21230,340,13072(691,442)(616)
29,648,143(472,822)(31,917,697)(345,198)(1,012,287)

648,645

1,778,321(169,375)(31,151,663)

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

31,992,459(26,000,000)
17,219,286(7,300,000)

8,953,594––(7,723,513)(32,598)(7,978,987)
3,385,171
12,800,282
16,185,454(6,000,000)(7,813,803)(23,326)
2,074,615
571,095
16,185,454
16,756,549

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of investment corporation bondissuance costs
Interest income and interest on securities
Interest 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
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 disposing entity
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. The amount equivalent toproperty tax included in acquisition cost for properties for the current fiscal
period is ¥135,713 thousand.
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 June 1, 2019 to November 30, 2019)
1.

2.

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(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 December 1, 2019 to May 31, 2020)
1.

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- 24 -(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments
3,084

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 November 30, 2019
Total amount specified in the commitmentline contracts¥21,000,000 thousand¥21,000,000 thousand–¥1,998,000 thousand¥21,000,000 thousand¥19,002,000 thousand

Loan balance
Net balance

As of May 31, 2020

*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts andInvestment Corporations
As of November 30, 2019
¥50,000 thousand

As of May 31, 2020
¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous 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
Reason for
RelatedReason for
Initialbeginning provision reversal
end ofreversal
assets, etc.
provisionamountof 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 -

Current fiscal period (From December 1, 2019 to May 31, 2020)
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
Reason for
RelatedReason for
Initialbeginning provision reversal
end ofreversal
assets, etc.
provisionamountof period for period for period period
Changes inDeferredfair value ofgains or––
10,797–
10,797–
derivative
losses ontransactions
hedges2.

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.

- 26 -

Notes to Statement of Income*1. Breakdown of Profit (Loss) from Real Estate Leasing Business
Previous fiscal period(From June 1, 2019
to November 30, 2019)(Unit: Thousands of yen)
Current fiscal period(From December 1, 2019
to May 31, 2020)

12,896,071

12,772,803

Common service fees

754,640

739,471

Parking lot fees

295,863

290,588

Other rent revenue

116,997

A. Real estate leasing businessrevenues
Leasing business revenue
Rent

B.

14,063,573

101,013

13,903,877

Other leasing business revenue

1,136,219

936,713

Total real estate leasing businessrevenues

15,199,792

14,840,590

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

1,252,752

1,286,910

Utilities expenses

1,011,981

841,809

Tax and public dues

1,087,694

1,110,349

Insurance

11,227

12,914

Repair and maintenanceexpenses

436,542

312,576

1,298,804

1,334,352

Depreciation
Other expenses related toleasing businessC.

365,5425,464,545

571,767

5,470,679

Total real estate leasing business
expenses

5,464,545

5,470,679

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

9,735,247

9,369,910- 27 -

*2.

Breakdown of Gain (Loss) on Sales of Real Estate Properties
Previous 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
Current fiscal period (From December 1, 2019 to May 31, 2020)(Unit: Thousands of yen)
A-PLACE Shinbashi Ekimae
Income from sales of real estate properties
Costs of sales of real estate properties
Other costs of sales
Gain on sales of real estate properties

21,000,000
20,787,757
68,443
143,798

Notes to Statement of Unitholders’ Equity
Previous fiscal period(From June 1, 2019
to November 30, 2019)

Current fiscal period(From December 1, 2019
to May 31, 2020)*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 June 1, 2019
to November 30, 2019)

Current fiscal period(From December 1, 2019
to May 31, 2020)

Cash and deposits¥12,670,027 thousand¥13,486,961 thousand

Cash and deposits in trust¥3,515,426 thousand¥3,269,588 thousand

Cash and cash equivalents¥16,185,454 thousand¥16,756,549 thousand- 28 -

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 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)).
(Unit: Thousands of yen)
Carrying amount
Fair value
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- 29 -

Carrying amounts, fair values, and the differences between the two values as of May 31, 2020, 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)).
Carrying amount

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

13,486,961

13,486,961–(2) Cash and deposits in trust

3,269,588

3,269,588–

Total assets

16,756,549

16,756,549–(1) Short-term borrowings

10,998,000

10,998,000–(2) Current portion of long-termborrowings

12,500,000

12,600,325

100,325(3) Investment corporation bonds

17,000,000

17,278,254

278,254(4) Long-term borrowings

203,850,000

206,045,048

2,195,048

Total liabilities

244,348,000

246,921,627

2,573,627(3,443)(3,443)–

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.
(3) 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.
(2) Current portion of long-term borrowings, (4) 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 32 and 33.

- 30 -

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

As of November 30, 2019

Leasehold and guarantee
deposits received in trust **(Unit: Thousands of yen)
As of May 31, 2020

21,543,424

22,309,458

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
(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

–

–

–

–

–

Expected Amounts of Redemption of Monetary Claims after the Account Closing Date
(May 31, 2020)
Within1 year

1–2 years

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

Deposits

13,486,961

–

–

–

–

–

Deposits in trust

3,269,588

–

–

–

–

–

Total

16,756,549

–

–

–

–

–

(Note 4) 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–

5,000,000

11,000,000

Long-term borrowings

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

99,450,000

Total

18,300,000 26,250,000 22,100,000 27,750,000 29,500,000 110,450,000- 31 -

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (May 31, 2020)
Within1 year

1–2 years

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

Short-term borrowings

10,998,000

–

–

–

–

–

Investment corporation
bonds

–

–

1,000,000–

7,000,000

9,000,000

Long-term borrowings
Total

12,500,000 27,850,000 26,500,000 32,750,000 24,000,000 92,750,000
23,498,000 27,850,000 27,500,000 32,750,000 31,000,000 101,750,000

Notes on Derivative Transactions
1. Derivative Transaction to Which Hedge Accounting Is Not Applied(As of November 30, 2019)
Not applicable.
(As of May 31, 2020)
Not applicable.
2. Derivative Transaction to Which Hedge Accounting Is Applied(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

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
12,000,000 12,000,000
borrowings

8,954

Based onprices, etc.
indicated bypartnerfinancial
institutions

Long-term
18,140,000 18,140,000
borrowings*–- 32 -

Portion due
after 1 year

(As of May 31, 2020)
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(3,443)

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 (4)” on page 30.)
Notes on Tax Effect Accounting
1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of November 30, 2019

As of May 31, 2020

Deferred tax assets
Non-deductible amount for tax purposesof enterprise tax payable¥5 thousand¥10 thousand

Total deferred tax assets¥5 thousand¥10 thousand¥5 thousand¥10 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 November 30, 2019
Effective statutory tax rate

As of May 31, 2020

31.51%

31.46%(31.51)%(31.46)%

0.01%

0.01%

0.01%

0.01%

Adjustments
Distributions paid included indeductibles
Other
Effective income tax rate after applicationof tax effect accounting- 33 -

Notes on Transactions with Related Parties
Previous fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable.
Current fiscal period (From December 1, 2019 to May 31, 2020)
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 June 1, 2019
(From December 1, 2019
to November 30, 2019)
to May 31, 2020)

Use
Carrying amount on the balance sheet
Urban Retail
Properties

Balance at beginning of period

200,524,577

198,881,821

Changes during period(1,642,755)(89,939)

Balance at end of period

198,881,821

198,791,882

241,282,000

239,866,000

195,556,130

195,101,532

Changes during period(454,598)

9,815,079

Balance at end of period

195,101,532

204,916,612

232,420,000

244,140,000

102,739,890

102,648,428

Changes during period(91,462)(84,857)

Balance at end of period

102,648,428

102,563,571

120,550,000

121,620,000

Balance at beginning of period

498,820,598

496,631,782

Changes during period(2,188,816)

9,640,283

Balance at end of period

496,631,782

506,272,066

594,252,000

605,626,000

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

Balance at beginning of period

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 increase in the current fiscal period is the acquisition of Ebisu Prime Square
worth ¥31,057,540 thousand. The decrease is mainly due to the disposition of A-PLACE Shinbashi
Ekimae worth ¥20,787,757 thousand and the provision of depreciation worth ¥1,334,352 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.”- 34 -

Per Unit Information
Previous fiscal period(From June 1, 2019
to November 30, 2019)

Current fiscal period(From December 1, 2019
to May 31, 2020)

Net assets per unit

¥332,196¥331,551

Basic earnings per unit

¥10,136¥9,507(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 771,224 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 June 1, 2019
to November 30, 2019)

Current fiscal period(From December 1, 2019
to May 31, 2020)

7,817,677

7,332,671––

Profit attributable to common investment units(Thousands of yen)

7,817,677

7,332,671

Average number of investment units for theperiod (Units)771,224

771,224

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.

- 35 -

(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)- 36 -

(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.

- 37 -

3. Reference Information(1) Composition of Invested Assets

Type ofassetsPrevious fiscal period

Current fiscal period(As of November 30, 2019)(As of May 31, 2020)

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

198,88138.6

198,791

37.8

Tokyo Office Properties

195,10137.8

204,916

39.0

Activia Account Properties

102,64819.9

102,563

19.5

The five central wards ofTokyo (Note 3)

314,26261.0

324,165

61.7

Wards of Tokyo other than
the five central wards

33,0796.4

32,972

6.3

Three major metropolitan
areas (Note 4)

138,100

26.8

137,912

26.2

Other locations

11,1892.2

11,222

2.1

Subtotal

496,63196.3

506,272

96.3

Total real estate assets

496,63196.3

506,272

96.3

Deposits and other assets

18,8493.7

19,414

3.7

Total assets (Note 5)

515,480100.0

525,686

100.0

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

By property type

By locationRealestateBy property type

By locationRealestate intrust- 38 -

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Total liabilities (Notes 5, 6)

259,28250.3

269,985

51.4

Total net assets (Note 5)

256,19849.7

255,700

48.6(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.”- 39 -

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 17th fiscal period. Figures shown in the table
are as of May 31, 2020 unless otherwise provided.
a. Overview of assets held (1)(As of May 31, 2020)

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)

45,00044,666

62,77563,6002.6

61,950

2.3

2.7

8.8

UR-2

Tokyu Plaza Akasaka(Note 6)

11,450

11,63915,10015,4004.0

15,000

4.1

4.2

2.2

UR-3

Q plaza EBISU (Note 7)

8,430

8,196

11,80012,0003.2

11,7003.4/3.3

3.4

1.7

UR-5

Kyoto Karasuma Parking
Building

8,860

8,688

10,70010,8004.8

10,700

4.8

5.0

1.7

UR-7

Kobe Kyu Kyoryuchi
25Bankan

21,33020,43727,30027,8003.8

26,800

3.6

4.0

4.2

UR-8

A-FLAG SAPPORO

4,410

4,909

7,720

7,720

5.4

7,720

5.2

5.6

0.9

UR-9

A-FLAG SHIBUYA(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)

6,370

6,338

7,920

7,950

3.9

7,910

3.7

4.1

1.3

UR-10 Q plaza SHINSAIBASHI

13,35013,412

14,70014,6003.6

14,800

3.4

3.8

2.6

UR-11 A-FLAG KOTTO DORI

4,370

4,395

4,840

4,840

3.4

4,840

3.1

3.5

0.9

A-FLAG BIJUTSUKAN
UR-12
DORI

4,700

4,723

4,860

4,950

3.5

4,770

3.3

3.7

0.9

A-FLAG DAIKANYAMA
UR-13
WEST

2,280

2,411

2,400

2,430

3.9

2,370

3.7

4.1

0.4

A-FLAG KITA
UR-14
SHINSAIBASHI

4,725

4,833

4,760

4,860

3.9

4,650

3.6

4.0

0.9

DECKS Tokyo Beach
UR-15(Note 6)

12,74012,91912,691

12,936

4.0

12,446

3.8

4.2

2.5

UR-16

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

37,50037,89539,00038,7002.6

39,000

2.5

–

7.4

UR-17

Q plaza HARAJUKU(Note 6)

13,20013,324

13,30013,3803.0

13,140

2.7

3.1

2.6

198,715

198,791

239,866

241,966–

237,796

–

–

39.0

Subtotal- 40 -

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

7,168

11,70011,8003.6

11,700

3.7

3.8

1.5

TO-2

A-PLACE Ebisu Minami

9,640

9,334

15,30015,2003.5

15,300

3.6

3.7

1.9

TO-3

A-PLACE Yoyogi

4,070

3,861

4,980

5,050

3.9

4,900

3.7

4.1

0.8

TO-4

A-PLACE Aoyama

8,790

8,567

10,30010,3003.9

10,300

3.7

4.1

1.7

TO-5

Luogo Shiodome

4,540

4,184

6,410

6,430

3.5

6,400

3.3

3.7

0.9

TO-6

TAMACHI SQUARE(Land)

2,338

2,362

2,840

2,970

3.4

2,790

3.8

3.6

0.5

TO-7

A-PLACE Ikebukuro

3,990

3,695

5,560

5,650

3.9

5,460

3.7

4.1

0.8

TO-8

A-PLACE Shinbashi

5,650

5,795

7,330

7,380

3.7

7,270

3.4

3.8

1.1

TO-9

A-PLACE Gotanda

5,730

5,449

7,970

8,070

3.5

7,860

3.3

3.7

1.1

TO-10 A-PLACE Shinagawa

3,800

3,771

6,030

6,150

3.4

5,900

3.2

3.6

0.7

TO-11 OSAKI WIZTOWER

10,69010,56814,50014,7003.3

14,400

3.0

3.4

2.1

Shiodome Building(Note 6)

71,60070,75577,70081,5503.3

75,950

3.1

3.5

14.1

TO-13 A-PLACE Ebisu Higashi

7,072

7,048

7,720

7,830

3.7

7,600

3.5

3.9

1.4

4,810

4,935

5,730

5,710

3.6

5,750

3.3

3.7

0.9

7,280

7,547

7,870

7,910

3.8

7,830

3.5

3.9

1.4

18,80018,80621,00021,3003.8

20,600

3.6

4.0

3.7

30,70031,062

31,20031,8243.4

30,600

3.2

3.6

6.0

TO-12

A-PLACE Shibuya
KonnohA-PLACE Gotanda
TO-15
EkimaeA-PLACE Shinagawa
TO-16
HigashiEbisu Prime Square (Note
TO-18
6)
TO-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
method206,900

204,916

244,140

249,824–

240,610

–

–

40.6

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

8,034

10,80011,0004.8

10,700

4.7
/4.8
/4.9

5.0

1.7

AA-4

icot Mizonokuchi

2,710

2,604

3,240

3,310

5.4

3,160

5.2

5.8

0.5

AA-5

icot Tama Center

2,840

2,596

4,000

4,010

5.0

3,990

4.6

5.2

0.6

AA-6

A-PLACE Kanayama

6,980

6,231

8,770

8,900

5.1

8,640

4.9

5.3

1.4

AA-7

Osaka Nakanoshima
Building

11,10011,122

16,30016,5003.8

16,100

3.6

4.0

2.2

AA-8

icot Omori

5,790

5,711

6,870

6,940

4.3

6,790

4.1

4.5

1.1

AA-9

Market Square Sagamihara

4,820

4,638

5,010

5,030

5.3

4,990

5.1

5.5

0.9

AA-10 Umeda Gate Tower

19,00019,236

21,40021,7003.7

21,200

3.4

3.8

3.7

AA-11 A-PLACE Bashamichi

3,930

3,976

4,740

4,840

4.8

4,630

4.5

5.0

0.8

AA-12 Commercial Mall Hakata

6,100

6,313

6,290

6,300

4.8

6,280

4.5

4.9

1.2

AA-13 EDGE Shinsaibashi

19,80019,98520,00020,2003.8

19,800

3.5

3.9

3.9

(Note 1)

(Note 2)

(Note 3)(Note 4)

Subtotal

103,570

102,563

121,620

123,130–

120,280

–

–

20.3

Total

509,185

506,272

605,626

614,920–

598,686

–

–

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 May 31, 2020,
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 May 31, 2020.
- 41 -

(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, Shiodome Building, and Ebisu Prime Square, the figures are in proportion to the pro rata shareof our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 49%, 30%, 60%, 35% and 51%,
respectively).
The discount rates of Q plaza EBISU represent 3.4% from the first year to the third year and 3.3% in and after the
fourth 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 second year, 4.8% from the third year
to the seventh year and 4.9% in and after the eighth year.

- 42 -

b. Overview of assets held (2)Category(As of May 31, 2020)
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

34

2,065

1,699

4,918.44

4,899.86

99.6

UR-2

Tokyu Plaza
Akasaka (Note 8)

Chiyoda, Tokyo

September 10,
1969

93

951

391

16,609.75

16,474.10

99.2

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

1,246

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

17

593

132

21,229.16

21,229.16

100.0

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

673

433

2,820.23

2,820.23

100.0

UR-11

A-FLAG KOTTO
DORI

Minato, Tokyo

January 22, 1992

8

237

185

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

186

129

2,538.13

2,538.13

100.0

UR-15

DECKS Tokyo
Beach (Note 8)

Minato, Tokyo

June 20, 1996

80

636

488

16,125.56

15,988.39

99.1

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

280

–

–

124,677.95

124,386.55

99.8

Q plaza
UR-17 HARAJUKU(Note 8)Subtotal

Shibuya, Tokyo–
March 5, 2015–

- 43 -

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

640

557

7,342.60

7,342.60

100.0

TO-2

A-PLACE Ebisu
MinamiShibuya, Tokyo

January 31, 1995

10

757

615

7,950.49

7,950.49

100.0

TO-3

A-PLACE Yoyogi Shibuya, Tokyo

February 22, 2007

3

253

233

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

346

308

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

374

313

5,054.19

5,054.19

100.0

TO-9

A-PLACE Gotanda

Shinagawa,Tokyo

February 27, 2012

11

369

339

4,028.69

4,028.69

100.0

TO-10

A-PLACE
ShinagawaMinato, Tokyo

September 20,
1991

8

255

240

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

40

3,238

2,677

28,136.05

28,136.05

100.0

TO-13

A-PLACE Ebisu
Higashi

Shibuya, Tokyo

January 10, 1992

7

349

265

4,010.69

4,010.69

100.0

TO-14

A-PLACE Shibuya
Shibuya, Tokyo
KonnohMarch 18, 1992

4

281

219

3,010.53

3,010.53

100.0

TO-15

A-PLACE Gotanda Shinagawa,EkimaeTokyo

November 30,
1993

12

380

315

4,328.32

4,328.32

100.0

TO-16

A-PLACE
Minato, Tokyo
Shinagawa Higashi

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

8

1,036

940

14,658.98

14,658.98

100.0

TO-18

Ebisu Prime Square
Shibuya, Tokyo(Note 8)January 31,1997

107

1,505

1,143

18,063.02

17,738.37

98.2

–

254

–

–

126,347.10

126,022.45

99.7

AA-1

Amagasaki Q’s
MALL (Land)

–

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

10

240

237

5,181.58

5,181.58

100.0

AA-6

A-PLACE
Kanayama

Nagoya, Aichi

February 10, 2009

21

535

434

9,314.90

9,314.90

100.0

AA-7

Osaka
Nakanoshima
Building

Osaka, Osaka

March 5, 1984

39

998

708

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

884

719

13,624.49

13,624.49

100.0

A-PLACE
AA-11
Bashamichi

Yokohama,
Kanagawa

May 31, 1975

36

338

236

9,710.91

9,548.77

98.3

Fukuoka,
Fukuoka

November 3, 2005

19

352

164

9,612.88

9,612.88

100.0

Subtotal

Activia Account Properties

Date ofconstruction

AA-8 icot Omori
AA-9

AA-12

Market Square
Sagamihara

Commercial Mall
HakataAmagasaki,
Hyogo

AA-13 EDGE Shinsaibashi Osaka, Osaka

April 22, 1986

22

937

726

15,897.66

15,897.66

100.0

Subtotal

–

177

–

–

174,526.91

174,364.77

99.9

Total

–

711

–

–

425,551.96

424,773.77

99.8- 44 -

(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 May 31, 2020 described in
the lease agreements in relation to buildings, except that for properties with master lease agreements, the total numberof end-tenants is listed. For properties for which we acquire only land, the total number of tenants of the land 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 of
May 31, 2020), 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 May 31, 2020, as indicated in
the lease agreements in relation to buildings as of May 31, 2020 by 12 (for where multiple lease agreements areconcluded 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 iscalculated as the annual contracted rent (excluding consumption tax) as indicated in the lease agreement for such land
as of May 31, 2020, rounding to the nearest million yen. For properties with master lease agreements, the annual
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 May 31, 2020), as indicated in therelevant 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 of
May 31, 2020 (limited to leasehold and guarantee deposit based on the lease agreement for leased property that was
occupied by the tenant as of May 31, 2020), rounding to the nearest million yen. For properties with master leaseagreements, 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 May 31, 2020 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 of May 31, 2020of 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 of
May 31, 2020. For properties with master lease agreements, counted is the total of the area of properties for which
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 of May
31, 2020, 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, Shiodome Building, and Ebisu Prime Square, the figures are in proportion to the pro rata shareof our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 49%, 30%, 60%, 35% and 51%,
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 May 31, 2020, assuming that thelease agreements with the end-tenants remained effective; the same shall apply hereinafter.

- 45 -

(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 17th fiscal period as of May 31,
2020. 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

Payment
for theperiodTotalamount
paid

160

–

–

Total
amountA-PLACE Ebisu
Minami(Shibuya, Tokyo)

Large-scale repair
work (First period)

A-PLACE Ebisu
Minami(Shibuya, Tokyo)

Large-scale repair
From June 2021
work (Second period) to November 2021

160

–

–

icot Nakamozu(Sakai, Osaka)

Large-scale repair
work (First period)

150

–

–

icot Nakamozu(Sakai, Osaka)

Large-scale repair
From September 2021
work (Second period) to November 2021

150

–

–

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units(First period)

From April 2021
to May 2021

136

–

–

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units(Second period)

From October 2021
to November 2021

136

–

–

A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Large-scale repair
work

From June 2020
to May 2021

96

–

–

Replacement of
Osaka Nakanoshima
elevators
Building(elevators No. 1 and(Osaka, Osaka)
2)

From May 2020
to August 2020

94

–

–

DECKS Tokyo
Beach(Minato, Tokyo)

Renovation of 3rd
floor Seaside Deck

From May 2021
to May 2021

80
(Note)––A-PLACE Gotanda
Large-scale repair
Ekimaework(Shinagawa, Tokyo)

From July 2020
to May 2021

79

–

–

Luogo Shiodome(Minato, Tokyo)

From December 2019
to July 2020

77

–

–

A-FLAG SHIBUYA
From November 2020
Renewal of escalators(Shibuya, Tokyo)
to May 2022

64

–

–

49

–

–

Large-scale repair
work

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

From November 2020
to May 2021

From March 2021
to May 2021

From July 2020
to September 2020

- 46 -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 June 2020

31

–

–

A-PLACE
Shinagawa Higashi(Minato, Tokyo)

From September 2020
to November 2020

30

–

–

Repair work for
Umeda Gate Tower indoor and outdoor air From July 2020
conditioning units in to November 2020
(Osaka, Osaka)
private areas

30

–

–

TLC Ebisu Building Renewal of automatic From October 2020
(Shibuya, Tokyo)
security system
to November 2020

28

–

–

Osaka Nakanoshima Repair of lavatory
plumbing for 6th andBuilding
7th floors(Osaka, Osaka)

From July 2020
to September 2020

28

–

–

Osaka Nakanoshima Repair of lavatory
plumbing for 8th andBuilding
9th floors(Osaka, Osaka)

From July 2020
to September 2020

28

–

–

Installation of LED
lighting (First period)

A-PLACE Ebisu
Minami(Shibuya, Tokyo)

Maintenance of air
conditioning units(replacement ofsensors)

From July 2020
to November 2020

24

–

–

A-PLACE
Shinagawa(Minato, Tokyo)

Renewal of automatic From October 2020
security system
to November 2020

18

–

–

DECKS Tokyo
Beach(Minato, Tokyo)

Outer wall repair
work

From November 2020
to November 2020

17
(Note)––A-PLACE Shibuya
Konnoh(Shibuya, Tokyo)

Installation of LED
lighting

From June 2020
to November 2020

17

–

–

Replacement ofEbisu Prime Square
residential tower’s(Shibuya, Tokyo)
calorimeter

From October 2020
to November 2020

16
(Note)––A-FLAGSHIBUYA(Shibuya, Tokyo)

Replacement ofsprinkler pump andfire extinguishingpump panel

From July 2020
to November 2020

15

–

–

A-PLACE
Shinagawa Higashi(Minato, Tokyo)

Replacement of halon
From June 2020
fire extinguishing
to September 2020
system14––

A-PLACE Yoyogi(Shibuya, Tokyo)

Maintenance of air
conditioning units

From July 2020
to August 2020

13

–

–

From July 2020
to November 2020

13

–

–

Osaka Nakanoshima Replacement ofdisaster prevention
Buildingpump(Osaka, Osaka)- 47 -

Estimated construction cost
(Millions of yen)

Name of real
property(Location)

PurposeScheduled period

Tokyu Plaza
Omotesando
Harajuku(Shibuya, Tokyo)

Renovation work forroof deck (Second
period)From November 2020
to November 2020

A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Replacement ofcompressor for air
conditioning(common areas on
6th, 8th and 9th
floors)From June 2020
to November 2020

Pressure resistancetesting for carbon
Ebisu Prime Square dioxide container
From September 2020
(Shibuya, Tokyo)
valves, etc.
to October 2020(concurrently used forthree buildings)

Total
amountPayment
for theperiodTotalamountpaid

12(Note)

–

–

12

–

–

11
(Note)––A-FLAGDAIKANYAMA
WEST(Shibuya, Tokyo)

Replacement of halon From October 2020
container valvesto November 2020

10

–

–

A-FLAGDAIKANYAMA
WEST(Shibuya, Tokyo)

Work to change to
From November 2020
electronic locks in theto November 2020
building

10––

A-FLAGDAIKANYAMA
WEST(Shibuya, Tokyo)

Installation of
additional security
cameras10––(Note)

From November 2020
to November 2020

The shown estimated construction cost with regard to Tokyu Plaza Omotesando Harajuku, DECKS Tokyo
Beach and Ebisu Prime Square is the amount equivalent to the ratio of the Investment Corporation’s coownership interests of real estate trust beneficiary (75%, 49% and 51%, respectively).

- 48 -

b. Capital expenditure during the fiscal period
For assets held by the Investment Corporation in the 17th fiscal period, construction work
conducted by the Investment Corporation during the fiscal period ended May 31, 2020 that falls into
capital expenditure is as follows. The capital expenditure for the fiscal period ended May 31, 2020
amounted to ¥702 million, and repair and maintenance expenses that were accounted for as expensein the fiscal period ended May 31, 2020 came to ¥312 million. On aggregate, construction work of¥1,014 million was carried out during the fiscal period.
Name of real property(Location)

Purpose

PeriodConstruction cost
(Millions of yen)

Osaka Nakanoshima
Building(Osaka, Osaka)

Replacement of elevators(elevators No. 5 and 6)

From November 2019
to February 2020

88

Osaka Nakanoshima
Building(Osaka, Osaka)

Replacement of elevators(elevators No. 3 and 4)

From March 2020
to May 2020

85

A-FLAGDAIKANYAMA
WEST(Shibuya, Tokyo)

Paint renewal work on entire
outer wall

From May 2020
to May 2020

65

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of rainwater
From December 2019
drain and hot water main pipe
to April 2020
for upper floors

40

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair of lavatory plumbingfor 12th to 15th floors

From February 2020
to May 2020

37

Ebisu Prime Square(Shibuya, Tokyo)

Installation of air
conditioning units and control From January 2020
equipment on standard floors to March 2020in the tower building

26(Note)A-FLAG SAPPORO(Sapporo, Hokkaido)

Repair work on mechanicalparking equipment No. 2

From March 2020
to April 2020

23

A-FLAG SAPPORO(Sapporo, Hokkaido)

Work to increase capacity of
air conditioning equipment(gas-heat pump (GHP) air
conditioning systems) forsmall banquet halls on 2nd
floor

From March 2020
to May 2020

19

DECKS Tokyo Beach(Minato, Tokyo)

Measures for business
continuity planning (BCP)
and redundancy of power
generator operation time

From October 2019
to March 2020

17
(Note)A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of elevator
controls (elevator No. 7)

From March 2020
to March 2020

14

A-FLAG
BIJUTSUKAN DORI
(Minato, Tokyo)

Replacement of air
conditioning equipment on
1st and 2nd basement floors

From January 2020
to January 2020

14

A-PLACE Aoyama(Minato, Tokyo)

Partial renovation of central
monitoring panel

From February 2020
to May 2020

13

Osaka Nakanoshima
Building(Osaka, Osaka)Renewal of capacitors

From December 2019
to March 202011

- 49 -Name of real property(Location)

PurposeA-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of pneumatic
automatic control equipment
and removal work therefor

DECKS Tokyo Beach(Minato, Tokyo)

Renewal work for signs on all From December 2019buildings
to December 2019

Period

Other

10
10
(Note)
222

Total(Note)

From March 2020
to May 2020

Construction cost
(Millions of yen)702

The shown construction cost with regard to Ebisu Prime Square and DECKS Tokyo Beach is the amountequivalent to the ratio of the Investment Corporation’s co-ownership interests of real estate trust
beneficiary (51% and 49%, respectively).

- 50 -

(C) Information concerning major tenants
a. Summary of major tenants
For assets held in the 17th 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 May 31, 2020. 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 May 31, 2020. 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

237

185

December 31, 2026

TLC Ebisu Building

7,342.60

640

557

May 31, 2025

A-PLACE Ebisu Minami

7,950.49

757

615

May 31, 2025

A-PLACE Yoyogi

3,106.17253

233

May 31, 2025

A-PLACE Aoyama

7,303.69

568

534

May 31, 2025

Luogo Shiodome

4,476.35

346

308

May 31, 2025

A-PLACE Ikebukuro

3,409.73(Note 5)(Note 5)

May 31, 2025

A-PLACE Shinbashi

5,054.19374

313

May 31, 2025

A-PLACE Gotanda

4,028.69

369

339

May 31, 2025

A-PLACE Shinagawa

2,986.36255

240

May 31, 2025

OSAKI WIZTOWER

7,193.28

668

668

May 31, 2025

4,010.69

349

265

May 31, 2025

A-PLACE Shibuya Konnoh

3,010.53

281

219

September 30, 2025

A-PLACE Gotanda Ekimae

4,328.32

380

315

June 30, 2026

A-PLACE Shinagawa
Higashi

14,658.98

1,036

940

March 31, 2027

Ebisu Prime Square (Note 6)

14,271.04

1,308

1,109

January 31, 2030

9,314.9535

434

May 31, 2025

Osaka Nakanoshima Building

20,226.77

998

708

November 30, 2024

Umeda Gate Tower

13,624.49

884

719

April 30, 2028

A-PLACE Bashamichi

9,548.77

338

236

October 31, 2026

Commercial Mall Hakata

9,612.88

352

164

March 31, 2027

158,115.45

–

–

–

Real EstateManagement A-PLACE Ebisu Higashi

A-PLACE Kanayama

Total- 51 -

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

19,653.9

1,246

1,431

August 31, 2023

A-FLAG SAPPORO

21,229.16

593

132

December 31, 2023

A-FLAG SHIBUYA

3,403.07

420

179

December 31, 2023

Q plaza SHINSAIBASHI

2,820.23

673

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

2,538.13

186

129

June 30, 2027

DECKS Tokyo Beach(Note 6)

15,988.39

636

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

167,899.88

–

–

–

The leased area is the leased area to end-tenants in respect to the leased area provided in the master lease agreement
as of May 31, 2020 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 May 31, 2020),
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 May 31, 2020, as indicated in thesublease agreement concluded with the end-tenant as of May 31, 2020 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 May 31, 2020 (limited to leasehold and guarantee deposit based on the lease agreement for leased property thatwas occupied by the tenant as of May 31, 2020), rounding to the nearest million yen, where the tenant 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 Ebisu Prime Square, 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) (51%, 49% and 60%, respectively).

- 52 -

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 May 31, 2020.
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
(Note 3)

Sumitomo Mitsui Trust
Bank, Limited (Note 4)

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

29,883.44(Note 5)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 GLOBAL
Umeda Gate Tower
EXPERT CO., LTD. (Note 6)

7,870.86––

Swing Corporation

6,488.78

April 30, 2022

Ordinary building leaseagreement(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

A-PLACE Shinagawa Higashi–
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 May 31, 2020. 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 May 31, 2020 (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 of
May 31, 2020.
As of March 31, 2020, a fixed-term building lease agreement with a lease period of November 1, 2021 to March 31,
2027 was entered into for A-FLAG SAPPORO.
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.
YANMAR Co., Ltd. changed its name to YANMAR GLOBAL EXPERT CO., LTD. as of April 1, 2020. We
received a notice of cancellation for some of the lease agreements effective October 21, 2020 from YANMARGLOBAL EXPERT CO., LTD. The area covered by the cancelled agreements is 2,623.62 m2 and the total leased area
will be 5,247.24 m2 after the cancellation.
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.

- 53 -

(D) Overview of lease and profit and loss
17th fiscal period (From December 1, 2019 to May 31, 2020)
Property number

UR-1

UR-2

UR-3

UR-5

(Unit: Thousands of yen)
UR-7

Property name

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

Q plaza EBISU

Kyoto Karasuma
Parking Building

Kobe Kyu Kyoryuchi
25Bankan

183

183

183

183

183

Number of business days in the 17th
fiscal period
a. Real estate leasing business revenues

775,050

575,416

268,747(Note 2)774,533

Leasing business revenue

726,696

491,943

242,919(Note 2)

719,006

Other leasing business revenue

48,354

83,47225,828(Note 2)

55,526b. Expenses related to leasing business

232,781236,262

57,046

41,984

193,206

Management operation expenses

83,89979,142

16,343

3,235

79,507

Utilities expenses

20,47254,047

20,860–47,564

Tax and public dues

63,88170,052

9,003

36,37847,867

254

565

101

212

897

5,942

21,193429

1,421

10,330Insurance
Repair and maintenance expenses
Other expenses related to leasing
business

58,331

11,26010,308736

7,038

c. NOI (a – b)542,269

339,153

211,700(Note 2)581,326

d. Depreciation

52,31938,75618,301

15,810122,303

Profit (loss) from leasing business(c – d)489,949

300,396

193,398(Note 2)459,023

UR-8

UR-9

UR-10

UR-11

Q plaza
SHINSAIBASHI

A-FLAG KOTTO
DORI

Property number
Property name
Number of business days in the 17th
fiscal period

A-FLAG SAPPORO A-FLAG SHIBUYA(Unit: Thousands of yen)
UR-12
A-FLAG
BIJUTSUKAN
DORI

183

183

183

183

183

412,739

217,454351,134

125,007125,282

Leasing business revenue

359,223

209,911

336,137

120,077

119,079

Other leasing business revenue

53,516

7,542

14,996

4,929

6,202

b. Expenses related to leasing business

213,654

33,63056,43533,801

32,413

Management operation expenses

85,477

12,183

8,898

10,213

3,726

Utilities expenses

68,895

6,132

12,380

5,115

4,982

Tax and public dues

25,19011,417

15,66013,971

2,177

856

70

89

100

49

Repair and maintenance expenses

27,466

2,630

9,517

1,826

3,299

Other expenses related to leasing
business

5,766

1,196

9,888

2,574

18,178c. NOI (a – b)

199,085

183,823

294,699

91,20692,868d. Depreciation

72,704

8,364

16,850

5,117

6,976

Profit (loss) from leasing business(c – d)126,381

175,458

277,848

86,08985,892

a. Real estate leasing business revenues

Insurance- 54 -

(Unit: Thousands of yen)
UR-17

Property number

UR-13

UR-14

UR-15

UR-16

Property name

A-FLAGDAIKANYAMA
WEST

A-FLAG KITASHINSAIBASHIDECKS Tokyo
Beach (Note 1)

Tokyu Plaza Ginza(Land) (Note 1)

Number of business days in the 17th
fiscal period
a. Real estate leasing business revenues

183

183

Q plaza
HARAJUKU(Note 1)

183

183

183

(Note 2)

99,476447,094

571,500

241,029

Leasing business revenue(Note 2)89,491

331,615

571,500

228,802

Other leasing business revenue(Note 2)

9,984

115,479–

12,227b. Expenses related to leasing business

31,06921,528311,927306

32,830Management operation expenses

12,5687,305

109,239–

18,798

Utilities expenses

300

6,310

82,872–

11,600Tax and public dues

13,7586,319

57,177

–

–

82

59

617

–

106

Repair and maintenance expenses

1,237

–

13,972––Other expenses related to leasing
business

3,122

1,534

48,047306

2,325

c. NOI (a – b)(Note 2)

77,947135,167

571,193

208,198

d. Depreciation

3,082

4,666

26,874–

6,632(Note 2)73,281

108,293571,193

201,566

Property number

TO-1

TO-2

TO-3

TO-4

Property name

TLC Ebisu Building

A-PLACE
Ebisu Minami

A-PLACE
YoyogiA-PLACE
Aoyama

183

183

183

183

Insurance

Profit (loss) from leasing business(c – d)Number of business days in the 17th
fiscal period
a. Real estate leasing business revenues

183(Unit: Thousands of yen)
TO-5
Luogo Shiodome

342,484

388,497

136,845309,164

183,862

Leasing business revenue

325,016

376,526

130,290294,980

173,000

Other leasing business revenue

17,467

11,971

6,555

14,183

10,862b. Expenses related to leasing business

70,331

95,68831,88963,98750,852

Management operation expenses

24,906

29,832

10,72318,894

14,233

Utilities expenses

16,43918,1508,566

15,474

11,404

Tax and public dues

19,58817,44633,41010,742

23,406

Insurance

266

339

114

249

214

Repair and maintenance expenses

570

2,175

584

1,374

3,244

Other expenses related to leasing
business

10,703

11,779

1,156

4,588

2,167

c. NOI (a – b)272,152

292,809104,956

245,176

133,010d. Depreciation

41,48031,403

15,42922,597

27,388

Profit (loss) from leasing business(c – d)230,672

261,406

89,526

222,579

105,621

Property number

TO-6

TO-7

TO-8

TO-9

(Unit: Thousands of yen)
TO-10

Property name

TAMACHISQUARE (Land)

A-PLACE
Ikebukuro

A-PLACE
Shinbashi

A-PLACE
GotandaA-PLACE
Shinagawa

183

183

183

183

Number of business days in the 17th
fiscal period
a. Real estate leasing business revenues

183
62,502(Note 2)200,656

197,885

136,542

62,502(Note 2)

187,695

187,972

130,861–(Note 2)

12,960

9,913

5,680

9,385

36,30652,30144,491

31,219Management operation expenses–

10,487

17,403

12,86010,948

Utilities expenses

–

7,953

11,565

9,229

6,062

9,130

10,856

15,656

14,288

11,651

Insurance

–

113

190

153

105

Repair and maintenance expenses

–

12

2,118

1,017

908

Other expenses related to leasing
business

255

6,882

5,366

6,941

1,543

c. NOI (a – b)

53,116(Note 2)

148,355

153,393

105,322d. Depreciation–

20,685

23,107

26,811

9,258

53,116(Note 2)

125,247

126,582

96,064

Leasing business revenue
Other leasing business revenue
b. Expenses related to leasing businessTax and public dues

Profit (loss) from leasing business(c – d)- 55 -

(Unit: Thousands of yen)
TO-15

Property number

TO-11

TO-12

TO-13

TO-14

Property nameOSAKI
WIZTOWER

Shiodome Building(Note 1)

A-PLACE Ebisu
HigashiA-PLACE Shibuya
KonnohNumber of business days in the 17th
fiscal period
a. Real estate leasing business revenues

183

183

A-PLACE Gotanda
Ekimae

183

183

183

345,589

1,539,771

185,007

144,796

187,601

Leasing business revenue

335,0461,468,694

176,748

139,627

181,057

Other leasing business revenue

10,542

71,077

8,258

5,168

6,543

b. Expenses related to leasing business

90,462

345,061

55,07539,604

74,105

Management operation expenses

57,840105,672

16,382

20,76328,096

Utilities expenses

7,883

64,189

7,732

6,133

9,086

Tax and public dues

22,663

121,751

14,023

9,706

18,273

Insurance

448

900

139

107

159

Repair and maintenance expenses–

29,51913,681857

12,691Other expenses related to leasing
business

1,626

23,027

3,115

2,036

5,797

c. NOI (a – b)

255,127

1,194,710

129,932

105,192

113,496

d. Depreciation

48,275

151,614

23,511

12,89912,857

Profit (loss) from leasing business(c – d)206,851

1,043,096

106,420

92,292

100,638

Property number

TO-16

TO-17

TO-18

Property name

A-PLACE
Shinagawa Higashi

Number of business days in the 17th
fiscal period
a. Real estate leasing business revenues

183

A-PLACE Shinbashi Ebisu Prime Square
Ekimae (Note 3)(Notes 1, 4)
109(Unit: Thousands of yen)
AA-2

AA-1
Amagasaki Q’s
MALL (Land)

icot Nakamozu

143

183

183

540,690

238,136

669,560

356,784

310,464

Leasing business revenue

509,733

227,342600,608356,784

310,434

Other leasing business revenue

30,957

10,794

68,952–30

b. Expenses related to leasing business

143,206

315,657

170,366

56,41468,054
6,744Management operation expenses

56,252

11,54060,661–

Utilities expenses

28,436

10,52877,760–30

Tax and public dues

49,68954,655867

56,15930,334

Insurance

630

-

673

–

307

Repair and maintenance expenses

4,451

802

21,090–29,371Other expenses related to leasing
business

3,745

238,130

9,313

255

1,266

c. NOI (a – b)397,484(77,520)

499,194

300,369

242,409

d. Depreciation

30,07235,07035,411–

34,644

Profit (loss) from leasing business(c – d)367,411(112,591)

463,782

300,369

207,765

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 17th
fiscal period
a. Real estate leasing business revenues

183

183

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

183

183

183

(Note 2)

143,537

295,928

543,795

224,139

Leasing business revenue(Note 2)135,075

278,146

521,113202,800

Other leasing business revenue(Note 2)

8,461

17,781

22,682

21,339b. Expenses related to leasing business

13,236

40,633

83,182

209,562

47,911

Management operation expenses

2,261

15,432

24,761

57,408

8,972-

10,91621,00235,164

20,847

10,072

11,736

26,64653,71912,488

133

217

343

1,023

144

Repair and maintenance expenses

-

1,041

884

55,563

4,455

Other expenses related to leasing
business

768

1,288

9,544

6,682

1,002

c. NOI (a – b)(Note 2)102,903

212,745334,233

176,228

d. Depreciation

8,345

19,02552,26780,19018,367(Note 2)

83,878160,477

254,042

157,861

Utilities expenses
Tax and public dues
Insurance

Profit (loss) from leasing business(c – d)- 56 -

(Unit: Thousands of yen)
Property number

AA-9

Property nameMarket Square
Sagamihara

Number of business days in the 17th
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 2)471,239

183,387

162,234

521,057

Leasing business revenue(Note 2)441,422

169,747

136,227

477,687

Other leasing business revenue(Note 2)29,816

13,64026,00743,369b. Expenses related to leasing business

37,190106,834

80,47662,451

81,507

Management operation expenses

16,05332,93324,033

21,12939,138

Utilities expenses

4,548

25,206

18,776

19,91627,267

Tax and public dues

13,68034,775

17,23812,76368

Insurance

180

504

402

166

617

Repair and maintenance expenses

416

3,551

10,658

3,815

8,454

Other expenses related to leasing
business

2,312

9,863

9,367

4,659

5,960

c. NOI (a – b)(Note 2)364,404

102,911

99,783

439,550

d. Depreciation

23,64467,851

31,755

15,656

15,965

Profit (loss) from leasing business(c – d)(Note 2)

296,552

71,155

84,126

423,584(Note 1)

(Note 2)
(Note 3)(Note 4)

As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land),Q plaza HARAJUKU, Shiodome Building and Ebisu Prime Square, the figures are in proportion to the pro rata shareof our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 49%, 30%, 60%, 35% and 51%,
respectively).
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
Disposed on March 19, 2020. Therefore, figures up to the day prior to the disposition date are presented.
Acquired on January 10, 2020. Therefore, figures after the acquisition date are presented.

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