Semi-Annual Reportfor the Period ended November 30, 2019(the 16th Period)
From June 1, 2019 to November 30, 2019

Ebisu Prime Square

Activia Properties Inc. 21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo

https://www.activia-reit.co.jp/en/

Semi-Annual Report for the
16th Period ended November 2019

Abema Towers
Shibuya PARCO
Shibuya Scramble Square

From June 1, 2019 to November 30, 2019
Shibuya Hikarie

Cash Distributions (Result)
The Period ended November 2019(the 16th Period)
Shibuya Stream

Cash distributions per unit
Shibuya Mark City

Central Tower
Shibuya Fukuras¥

10,137

Cash Distributions (Forecast)

Shibuya Solasta

The Period ending May 2020
(the 17th Period)

Cash distributions per unit

¥

9,880

The Period ending November 2020
(the 18th Period)

Cash distributions per unit

¥

9,930

View of Shibuya area from Ebisu Prime Square

Basic Policy of Activia Properties Inc.

Focused investment in Urban Retailproperties and Tokyo Office properties
Activia Properties Inc. aims at proactive

management through selecting assets thatappeal to retail customers and officetenants as urban centers and hubs for business

Utilization of the comprehensive support
and capabilities of the Tokyu Fudosan
Holdings Group’s value chain

activity, in order to maximize unitholder value overthe medium to long term. API also takes initiatives
to improve its asset management.

Strong governance structure aimed at
maximizing unitholder value

Contents
4

Message53

IV. Statements of Changes in Unitholders’ Equity

6

Topics54

V. Statements of Cash Distributions

14

API’s Basic Policy

56

VI. Statements of Cash Flows

15

Portfolio List

57

VII. Notes to Financial Statements

16

Portfolio Map

69

VIII. Schedule of Financial Statements

19

Overview of API

79

Independent Auditor’s Report

20

I.

Asset Management Report80

Overview of the Asset Manager

50

II.

Balance Sheets81

Information on Unitholders

52

III. Statements of Operations

Message

Aiming at Maximization of Unitholder Value,
We Conducted an Asset Replacement by
pursuing Internal Growth

including location, use, size, and quality, we promote

have successfully maintained a high rate.

a wide range of initiatives to reduce the environmental

co-ownership interest in A-FLAG AKASAKA.

Executive Director
Activia Properties Inc.

Activia Properties Inc.

to long term, and in addition to our focus on factors

In June 2019, we disposed of the remained 50%

Kazushi Sato

Thank you very much for your continued support for

The overall occupancy rate of our portfolio at theend of the period under review was 99.8%, and weload and to contribute to our environment and local
community.

As a result of the above-mentioned management,

Based on these initiatives, our asset manager

operating revenue, operating profit, and profit were

TLC REIT Management Inc. identified core issues¥15,542 million, ¥8,680 million and ¥7,817 million,

for the medium to long term from social issues, suchrespectively, for the period ended November 2019.

as consideration for the environment and society,

Distributions per investment unit were ¥10,137,

and we have enhanced governance. And we haveexceeding the previous forecast of ¥10,018.

adopted these as the material issues that API needs

The J-REIT market has been maintaining an

In the period ending May 2020, we will conduct

to address, and we have released quantitative targets

upward trend overall, partially due to an inflow ofan asset replacement with the aim to improve DPU

as well as clearly stating practical management
policy to such ends.

Recently we have closed all accounts for thefunds targeting earnings stability and relatively highand strengthen our portfolio, etc. Concretely, we

16th period from June 1, 2019 to November 30, 2019.

yields, against a backdrop of interest-rate environment

acquired Ebisu Prime Square (51% co-ownership

We will continue to promote engagement with

We owe this achievement to your understanding andremaining at low levels and a strong real estateinterest) in January 2020, and will dispose of A-PLACE

the target set for each issue to enhance trustworthy

continuous support for which we wish to extend ourmarket. Financing activities through publicly offered

Shinbashi Ekimae in March 2020. As a consequence,

relationships with all of our stakeholders, including

deep appreciation.

capital increases and property acquisition have been

total assets held by API will be 44 properties with theunitholders.

continuously and actively conducted, and this has led

total acquisition price of ¥509.2 billion.

In the fiscal period under review, the Japanese
economy continued on a trend of gradual recovery

to an ongoing expansion in J-REIT asset sizes.

Recently,

there

is

increased

For the 17th period ending May 2020 andforonwards, we will aim at a steady DPU growth byon the whole amid factors that included corporate

Under these circumstances, for internal growthcorporations to include and actively promote ESG

demandpursuing internal growth particularly in office, andearnings holding steadily at high levels and improving

API has continuously achieved rent increase at lease(environment, social, governance) perspectives into

seek to maximize unitholder value as our mostemployment and income environments. However,contract renewals, mainly in offices particularly

their long-term management strategy to realize aimportant task in management, through external

concerns of a recession in the global economy

for Tokyo Office properties. Management of retailsustainable society.

growth strategy, such as asset replacement in view

sparked by Sino-American trade talks resulted inproperties, such as Urban Retail properties remains

API has aimed to build a portfolio of properties

continued weakness in exports and cautious businessstable over the long term, taking advantage ofthat can expect stable and sustainable customer

sentiment, particularly in the manufacturing industry.

location and quality of the properties.

demand to maximize unitholder value in the medium

to strengthen our portfolio.
We would be most grateful for your continued
support and encouragement. Thank you.

Financial Highlights (Millions of yen)
Period ended May 31, 2019(the 15th Period)
Operating revenue

Operating profit

Ordinary profit

Profit¥14,843
¥

8,599

¥

7,726

¥

7,725

Period ended November 30, 2019(the 16th Period)¥

15,542
8,680
7,818
7,817
¥

¥

¥

Period ended May 31, 2019(the 15th Period)
Total assets

Net assets¥

514,359¥¥

256,085¥

Unitholders’ equity tototal assets (%)

Net assets per unit (yen) (Note)

Period ended November 30, 2019(the 16th Period)

49.8%
¥

332,050

515,480
256,19849.7
332,196%¥(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

45

Topics
Management Highlights of the 16th Period
Ended November 2019
Realizing Enhanced Unitholder Value

External Growth (Asset Replacement)
Conducted an asset replacement aiming at DPU and NAV growth as well as strengthening our portfolio

Outline of Asset Replacement

DPU

10,137¥

NAV per unit¥

458,775(vs. FP15 +¥120/+1.2%)(vs. FP15 +¥7,763/+1.7%)

Internal Growth

External Growth

Achieved largest internal growth ever

Anticipated asset

Asset to be disposed of

TO-18 Ebisu Prime Square (51% co-ownership interest)

TO-17 A-PLACE Shinbashi Ekimae

Announced asset replacement

Replacement

Rent increase (Offices)+ ¥147mn/period

Improvement of
portfolio earnings
Enhance capacity forinternal growth

Increase rate (Avg. for offices)+12.9%
Financial Strategies
Flexible issuance of Green Bonds

Return to greater
Shibuya area
ESG
Promotion of new initiatives

Issued in Julyand November 2019

Amendment to management
fee structure(¥5 billion in 5-year bonds /¥4 billion in 10-year bonds)

Takes effect from the 17th Period
ending May 2020

Largest number of investors
disclosing their investments(8 investors for issuance in July,
21 investors for issuance in November)

Acquisition price(Appraisal NOI yield)¥30,700 million(3.7%)

Anticipated disposition price¥21,000 million

Assumed book value (Note 1)¥20,824 million

Appraisal value¥31,000 million

Appraisal value (Note 2)¥20,400 million

Expected NOI¥1,148 million

Expected NOINOI yield after depreciation

3.1%

Improve NOI yield after depreciation

NOI yield after depreciation¥635 million
2.6%

Removes unrealized loss on asset

3 attractiveness of Ebisu Prime Square

EstablishedSustainability Policy
Identified Materiality

1 Located in the greater
Shibuya area

2 A rare tower block enjoying
high visibility

3 Internal growth potential

Prime location with a 6-minute walk from Ebisu
Station with robust office demand from techcompanies

A multi-use complex comprised of office tower,commercial building and rental residences
extended to approximately 4,000 tsubo

Secured capacity for internal growth with
11% rent gap at time of acquisition(Note 1) Assumed value as of March 19, 2020
(Note 2) Appraisal value stated in the appraisal report effective as of November 30, 20196

7

Management of retail properties

Internal Growth

Sales trend (Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach)
Both properties showed signs of recovery despite temporary decline caused by typhoon, etc.

Management of Tokyo Office properties

Impact from consumption tax increase on sales in October 2019 and onwards is minimal

Rent revision(%)
130
Tokyu Plaza
Omotesando
HarajukuMarked the largest increase ever in rent income and area with rent increases for the period ended November 2019 andthe upward trend continues
For the period ending May 2020 and onwards, internal growth capacity is secured with large rent gap

Sales

120

(Y-on-Y)

Area subject to rent revision
Ratio of area with increased rent

Area (up)Area (down)(tsubo)11,000

87%
78%

8,000

65%

4,000

(overall -11%)

10,178tsubo(Note) Rent gap at end of
the 16th Period

0% or over
-10% ~ under -0%-20% ~ under -10%

-24%

3,262
tsubo

2,000

110

Under renovation works
100

Typhoon, etc.

90

6,342
tsubo
0

1,427
tsubo

Jun.

Dec.

(Note) Forecast basis

0
Increasedamount +¥28.9mn
Increase
ratio

+4.8%

-47 tsubo-17 tsubo+¥40.0mn+¥23.0mn+¥47.1mn+¥99.5mn

+7.3%

+5.2%

+9.1%

+12.0%

Jun.

2018.11 (14th Period)-11 tsubo

2019.5 (15th Period)

2019.11 (16th Period)

6,489 tsubo 3,799 tsubo 4,492 tsubo 4,861 tsubo

Upward rent revision · Replacement with higher rent already achieved (16th & 17th Periods)
Steadily achieved rent increase mainly in UR properties
2021.52021.112020.52020.11(17th Period) (18th Period) (19th Period) (20th Period)

2017.112018.112019.52018.52019.112020.5(12th Period) (13th Period) (14th Period) (15th Period) (16th Period) (17th Period)

Tenant replacement

Aim to conclude contracts with higher rents than market taking advantage of a favorable market environment

UR-13

1,245 tsubo +¥2.0mn/period+1.4%

Achieved first upward rent
revision in January 2017 after
acquisition

191 tsubo +¥2.1mn/period +10.5%+2.6%

Increase rate +6.3% (780 tsubo)(¥mn/period)
30
Decreased rent

A-FLAGDAIKANYAMA WEST

Increase
rate

1,436 tsubo +¥4.1mn/period

Total

Upward revision example

Rent increase

Area
Upward revision

Tenant replacement

Increased rent (incl. forecast)

101.9%
Growth led byoverseas tourists

-9%

-14%
-19%

3,878
tsubo

99.9%
Strong sales inrenewed shops

Under -20%

6,489
tsubo

4,977
tsubo

4,728
tsubo

Rent gap diversification

38,211 tsubo

62%

61%

6,000

Total leasable area

DECKS Tokyo
Beach

Sales-linked rent at hotels
Revenue increase is expected for the 18th Period owing to rally after decline caused by natural disasters
and more overseas tourists, etc.

+29.1%

20(¥ mn)

400
Even period: Tokyu Plaza Akasaka, A-FLAG SAPPORO+11.7%

327.5+17.1%

10¥11.3
million¥9.2
million¥15.5
million(Note)
Forecast basis-¥0.3 million-¥0.1 million

40%

78%

100%

100%

100%

2017.11(12th Period)

2018.5(13th Period)

2018.11(14th Period)

2019.5(15th Period)

2019.11(16th Period)

300

2020.5(17th Period)

276.9

257.8

200

100

(Note) Figures on the bar graph represent the average of increase rates.

8

+7.4%

-¥2.9 million-¥1.5 million
Fixed-term contract(Based on numberof contracts)¥11.2
million¥19.4
million¥2.4 million0

Odd period: Kobe Kyu Kyoryuchi 25Bankan+26.2%

0

71.0

73.8

2018.5(13th Period)

2018.11(14th Period)

2019.5(15th Period)

65.7

2019.11(16th Period)

2020.5(17th Period)(Forecast)2020.11(18th Period)(Forecast)9

Financial Management Status

Consistent Initiatives for ESG

Trend in LTV

Amendment to asset management fee structureWith LTV after asset replacement being expected to be 46.5% (appraisal LTV at 39.2%), LTV considering DPU level
will be effectively controlled.

Amendment to asset management fee structure to enhance unitholder value approved at the 5th Unitholder Meeting
held in August 2019.

(%)
50.0

LTV

Strengthen incentives to maximize unitholder value by raising type II ratio (DPU/NOI based).

Appraisal LTV

Assumed LTV ratio

47.7%
46.5%

46.0%

45.6%
44.7%

46.0%

43.3%

Acquisition
capacity(LTV50%)

41.6%

40.0

40.1%

39.6%

37.7%

2016.1110th Period

2017.511th Period

2017.1112th Period

2018.513th Period

2018.1114th Period¥ 36.5billion

39.2%

38.7%

38.3%

38.0%

2016.5
9th Period

45.5%

44.8%

38.2%

2019.515th Period

2019.11
16th Period

March 19,
2020
(Assumption)

AM Fee type I(asset based)

40%~50%Rating(JCR)<Before>Total assets at
end of thepreceding FP×
0.3%(Up to 0.4%)

AA(Stable)*Purchased by
Bank of Japan(Note) Assumption-based as ofMarch 19, 2020

<After>Total assets at
end of thepreceding FP×
0.25%(Up to 0.3%)

AM Fee type II(DPU / NOI based)<Before>
DPU
x
NOI
×
0.00020%(Up to 0.00020%)<After>DPU
×NOI
×0.00021%(Up to 0.00021%)

Trends in average period remaining to maturity and average interest rate
Secured ratio of fixed interest rate debt of over 90% along with extending average remaining period to maturity andlowering average interest rate.
(years)6.0

Avg. years remaining to maturity (left axis)

Avg. interest rate (right axis)

(%)
1.00

Ave. remaining
period tomaturity

Fixedinterest
rate ratio

Identification of Materiality

0.75

4.7yrs93%

Identified Materiality (core issues) that we should deal with based on principles of
SDGs

0.50

Averageinterest
rate

Long-term
borrowing
ratio

0.57%

98%

0.77%
0.67%

0.67%

0.65%

5.0

4.0

3.0

4.4
years

4.1
years

3.5
years
2016.5
9th Period

2016.1110th Period

4.4
years

2017.511th Period

2017.1112th Period

0.66%

0.63%

4.6
years

0.59%

4.5
years

2018.513th Period

2018.1114th Period

0.57%

4.7
years

4.5
years

2019.515th Period(Note 1) New rate for management fees is applied from the 17th period ending May 2020
(Note 2) No change for total AM fee of type I and type II (up to total assets at each FP × 0.5%)

Work to contribute to SDGs by addressing Materiality

Materiality

Related SDGs

0.25

2019.11
16th Period

0.00

E

Reducing environmental impact(Note) At end of 16th period
ended November 2019

Human capital development as a group of professionals

List of lenders (as of March 19, 2019 on assumed basis)
Contribution to the local community

8%
19%
3%

9%

18 lenders¥244,350mn

9%

26%

Sumitomo Mitsui Trust BankMUFG Bank

Mizuho Bank

Sumitomo Mitsui Banking Corporation

Development Bank of Japan

Mizuho Trust & Banking

Resona Bank

The Norinchukin Bank

The Bank of Fukuoka

Shinkin Central Bank

The 77 BankThe Gunma Bank

Nippon Life Insurance Company

Sumitomo Mitsui Insurance Company

Taiyo Life Insurance Company

THE NISHI-NIPPON CITY BANKTokyo Marine & Nichido Fire Insurance

The Bank of Kyoto

Investment Corporation Bonds
19%

10

S
Health and well-being of tenants

Supplier engagement

G

Management framework corresponding to multifacetedsocial demand towards sustainable society

11

ESG Initiatives
1. Green certification (As of November 30, 2019)

3. Initiatives at properties

GRESB Real Estate Assessment
Green-certified
assets in portfolio

UR-1 Tokyu Plaza Omotesando Harajuku

UR-15 DECKS Tokyo Beach

Vegetable growing experiences in “Omohara Forest” are continuallyoffered to local nursery schools kids which helps to reinforce
relationship with the local community

Newly created playground for kids
Installed furniture and green area on the Seaside Deck, offering
visitors a refreshing space

TO-12 Shiodome Building

TO-18 Ebisu Prime Square

Using open space for HAMASITE summer festival, a traditional
event in the area
Joined by various stakeholders in the area including residents,
workers, tenants, etc.

Offering farming experience on the terrace of the commercial
building to contribute fostering their community

25
properties
Global rating

By sector
Sector leader for“DiversifiedOffice/Retail/Asia” forthree consecutive years

5 stars fortwo consecutive years

CASBEE Certification

S(
A(

)

(59%)

Disclosure
Highest A rank for
two consecutive years

BELS Assessment) 11 properties

2 properties

10 properties

2 properties*Based on GFA

DBJ Green Building

1 property

4 properties
1 property

4. Initiatives at the Asset Manager
2. Examples of works for environmental performance improvement
UR-8 A-FLAG SAPPORO
Installedenvironmental-friendly
escalators(microprocessor
controlled) and reduced
power consumption by
20%

ESG seminar for employees and outside
stakeholders

TO-8 A-PLACE Shinbashi
Installed energy-saving glass that helps to reduce
airconditioning load by 7%

AA-7 Osaka Nakanoshima Building
Installed water-saving urinals and toilets
and reduced water consumption by 66%
for urinals and by 47% for toilets
New elevator system reduces energy
consumption by 22%

12

ESG lectures by outside experts for
employees and seminars for AM
and PM companies are organized
to heighten stakeholders’consciousness of ESG

Local cleanup campaign
Periodically participate
in cleanups organized
by NPO “Green Bird”
and activate
community throughevents such as
picking up litter incooperation withresidents and workers
in and around Shibuya

13

API’s Basic Policy

Portfolio List
(As of November 30, 2019)

Focused investments in Urban Retail and Tokyo Office properties

Category

UR-1

Portfolio Construction Policy

UR-2
UR-3

Urban Retail properties
Urban Retail properties are easily recognizable and are located near major
train stations or popular areas in Tokyo, government-designated major cities
within the three major metropolitan areas or other major cities in Japan.

Tokyo Office properties
Tokyo Office properties are located within the 23 wards of Tokyo in areas
with a high concentration of offices and near major train stations.

Activia Account properties

Investment ratio

UR-5(based on acquisition price)

UR-7

70%

UR-8
UR-9

or moreUR-10

of the amount invested

UR-11(Note) The actual investment ratio could differ
from the ratio indicated above in the
short term depending on theacquisition or selling of properties.

UR-12
UR-13
UR-14

Commercial facilities and office buildings other than Urban Retail and Tokyo Office properties that API rigorously
selected assessing the attributes and competitiveness of each property in anticipation that such properties will secureboth stability and profitability through portfolio diversification.

UR-15

Tokyu Fudosan Holdings Group’s redevelopment projects, etc. in Shibuya
FY2019FY2020Tokyo Port City Takeshiba

FY2021 onwards
Jingumae 6-chome Urban area
Redevelopment Project

Shibuya Station Sakuragaoka Exit
District Redevelopment Project

Shibuya Fukuras (Tokyu Plaza Shibuya)
2018

Usage:
office, retail
Total floor area: approx. 59 thousand m2
Opening:
Oct. 2019
Tokyu Plaza Shibuya in Dec. 2019

Shibuya
StreamShibuya
Hikarie

2023

2027

Shibuya Scramble Square

Central Tower
West Tower

Usage:
office, retail, observation deck, etc.
Total floor area: approx. 277 thousand m2
Opening:
East tower in Nov. 2019
Central / West tower in FY2027 (scheduled)

2019

LegendBy Sponsor GroupAcquired in the 17th Period

Shibuya Station –Sakuragaoka Area

Shibuya
FukurasScramble
Crossing

By Tokyu Corporation

2019

Shibuya
Solasta

Tokyu Plaza Omotesando
Harajuku (Note 2)
Tokyu Plaza Akasaka (Note 2)
Q plaza EBISU
Kyoto Karasuma Parking
Building
Kobe Kyu Kyoryuchi
25Bankan

DECKS Tokyo Beach (Note 2)

Luogo Shiodome

TO-6

TAMACHI SQUARE (Land)(Note 3)

TO-7

A-PLACE Ikebukuro

TO-8

A-PLACE Shinbashi

TO-9

A-PLACE Gotanda

TO-10
TO-11
TO-12
TO-13
TO-14

A-PLACE Shinagawa
OSAKI WIZTOWER
Shiodome Building (Note 2)
A-PLACE Ebisu Higashi
A-PLACE Shibuya Konnoh

TO-15

A-PLACE Gotanda Ekimae

Shibuya Station Sakuragaoka Exit District Redevelopment project(Tentative name) Jingumae 6-chome Urban Area Redevelopment Project

Usage:
retail, public institution
Total floor area: approx. 22 thousand m2
Opening:
FY2022 (scheduled)Tokyo Port City Takeshiba
Usage:
office, retail, residence
Total floor area: approx. 201 thousand m2
Opening:
FY2020 (scheduled)

Jingumae, Shibuya-ku, Tokyo

Daiba, Minato-ku, Tokyo

Acquisition price Investment Total leasable(In millions of yen)ratio
area (m2)Completion(Note 1)45,0008.8%

4,918.44

Mar. 2012

100.0%

2.2%
1.7%

16,609.75
4,024.88

Sep. 1969
Aug. 2008

99.9%
100.0%

8,860

1.7%

21,616.04

Jul. 2006

100.0%

21,3304.2%

19,653.90

Jan. 2010

100.0%

4,410

0.9%

21,229.16

May 1980

99.6%

6,370

1.3%

3,403.07

Jun. 1988

100.0%

13,3502.6%

2,820.23

Nov. 2007

100.0%

4,370

0.9%

2,656.53

Jan. 1992

100.0%

4,700

0.9%

1,994.65

Dec. 1998

100.0%

2,280

0.4%

2,579.08

Apr. 1992

100.0%

4,725

0.9%

2,536.75

Mar. 2008

100.0%

16,125.56

Jun. 1996
Nov. 2000(Extension)

99.2%

12,7402.5%

Ginza, Chuo-ku, Tokyo

37,5007.4%

1,130.04—

100.0%

Jingumae, Shibuya-ku, Tokyo

13,200198,715
7,400
9,640
4,070
8,790

2.6%
39.0%
1.5%
1.9%
0.8%
1.7%

3,378.49
124,676.57
7,342.60
7,950.49
3,106.17
7,303.69

Mar. 2015—
Mar. 1993
Jan. 1995
Feb. 2007
Sep. 1966

100.0%
99.8%
100.0%
100.0%
100.0%
100.0%

Ebisu, Shibuya-ku, Tokyo
Ebisu-Minami, Shibuya-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
Kita-Aoyama, Minato-ku, Tokyo
Higashi-Shinbashi, Minato-ku,
TokyoShiba, Minato-ku, Tokyo
Minami-Ikebukuro,
Toshima-ku, Tokyo
Shinbashi, Minato-ku, Tokyo
Nishi-Gotanda, Shinagawa-ku,
Tokyo
Konan, Minato-ku, Tokyo
Osaki, Shinagawa-ku, Tokyo
Kaigan, Minato-ku, Tokyo
Higashi, Shibuya-ku, Tokyo
Shibuya, Shibuya-ku, Tokyo
Nishi-Gotanda, Shinagawa-ku,
Tokyo

4,540

0.9%

4,476.35

Jul. 2004

100.0%

2,338

0.5%

1,287.96—

100.0%

3,990

0.8%

3,409.73

Oct. 2011

100.0%

5,650

1.1%

5,052.14

Mar. 1999

100.0%

5,730

1.1%

4,028.69

Feb. 2012

100.0%

3,800
10,69071,600
7,072
4,810

0.7%
2.1%
14.1%
1.4%
0.9%

2,986.36
7,193.28
28,136.05
4,010.69
2,995.72

Sep. 1991
Jan. 2014
Dec. 2007
Jan. 1992
Mar. 1992

100.0%
100.0%
99.7%
100.0%
100.0%

7,280

1.4%

4,316.89

Nov. 1993

100.0%A-PLACE Shinagawa Higashi

Konan, Minato-ku, Tokyo

18,800

3.7%

TO-18 Ebisu Prime Square (Note 2)
Tokyo Office properties
AA-1 Amagasaki Q’s MALL (Land)

Hiroo, Shibuya-ku, Tokyo

30,700206,900
12,000

6.0%
40.6%
2.4%

8,500

1.7%

28,098.02

AA-2

icot Nakamozu

AA-4

icot Mizonokuchi

AA-5

icot Tama Center

AA-6

A-PLACE Kanayama

AA-7

Osaka Nakanoshima Building

AA-8

icot Omori

AA-9

Market Square Sagamihara

AA-11 A-PLACE Bashamichi
AA-12 Commercial Mall Hakata
AA-13 EDGE Shinsaibashi
Activia Account properties
Total

Occupancy
rate

11,4508,430Aug. 1985(Main building)
14,658.98
Sep. 1999(Annex)
18,063.02
Jan. 1997
126,318.81—
27,465.44—

AA-10 Umeda Gate Tower

Usage:
office, retail, residence
Total floor area: approx. 255 thousand m2
Opening:
FY2023 (scheduled)

Location

Nagatacho, Chiyoda-ku, Tokyo
Ebisu, Shibuya-ku, Tokyo
Motohonenjicho, Nakagyo-ku,
Kyoto
Kyomachi, Chuo-ku, Kobe City,
Hyogo
Minami-Yonjo-Nishi, Chuo-ku,
A-FLAG SAPPORO
Sapporo City, Hokkaido
A-FLAG SHIBUYA
Udagawacho, Shibuya-ku, Tokyo
Shinsaibashi-suji, Chuo-ku,
Q plaza SHINSAIBASHI
Osaka City, Osaka
Minami-Aoyama, Minato-ku,
A-FLAG KOTTO DORITokyo
Minami-Aoyama, Minato-ku,
A-FLAG BIJUTSUKAN DORITokyo
A-FLAG DAIKANYAMA WEST Sarugakucho, Shibuya-ku, Tokyo
Minami-Senba, Chuo-ku, Osaka
A-FLAG KITA SHINSAIBASHI
City, Osaka

TO-5

TO-16

2019

Shibuya Scramble
Square East Tower

Property nameUR-16 Tokyu Plaza Ginza (Land)(Note 2)
UR-17 Q plaza HARAJUKU (Note 2)
Urban Retail properties
TO-1 TLC Ebisu Building
TO-2 A-PLACE Ebisu Minami
TO-3 A-PLACE Yoyogi
TO-4 A-PLACE Aoyama

Sponsor’s Situation

Shibuya Fukuras(Tokyu Plaza Shibuya)

Property
number

Shioe, Amagasaki City, Hyogo
Nakamozucho, Kita-ku,
Sakai City, Osaka
Mizonokuchi, Takatsu-ku,
Kawasaki City, Kanagawa
Ochiai, Tama City, Tokyo
Kanayama, Naka-ku,
Nagoya City, Aichi
Nakanoshima, Kita-ku,
Osaka City, Osaka
Omorikita, Ota-ku, Tokyo
Shimokuzawa, Chuo-ku,
Sagamihara City, Kanagawa
Tsurunocho, Kita-ku, Osaka City,
Osaka
Honcho, Naka-ku, Yokohama
City, Kanagawa
Tokojimachi, Hakata-ku, Fukuoka
City, Fukuoka
Nishi-Shinsaibashi, Chuo-ku,
Osaka City, Osaka

Jun. 2007

100.0%
98.0%
99.7%
100.0%
100.0%

2,710

0.5%

14,032.05

Jul. 1998

100.0%

2,840

0.6%

5,181.58

Mar. 2006

100.0%

6,980

1.4%

9,314.90

Feb. 2009100.0%

11,1002.2%

20,226.77

Mar. 1984

100.0%

5,790

1.1%

6,209.79

Mar. 2007

100.0%

4,820

0.9%

15,152.42

Jun. 2014

100.0%

19,0003.7%

13,624.49

Jan. 2010

100.0%

3,930

0.8%

9,775.50

May 1975

100.0%

6,100

1.2%

9,612.88

Nov. 2005

95.0%

19,8003.9%

15,897.64

Apr. 1986

100.0%

103,570
509,18520.3%
100.0%

174,591.48
425,586.86

—
—

99.7%
99.7%

(Note 1) The completion date is the date of construction of the main building as described in the property registry. For properties with multiple main buildings, the construction date of the oldest building
is listed. However, for A-PLACE Shinbashi and A-FLAG SHIBUYA, the date of inspection that confirms the completion of construction written on the certificate of inspection is provided.
(Note 2) Figures provided for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU, Shiodome Building and Ebisu Prime
Square are in proportion to our pro rata share of the co-ownership interests (75%, 50%, 49%, 30%, 60%, 35% and 51%, respectively).
(Note 3) The acquisition price of TAMACHI SQUARE (Land) is the land acquisition price at the time of the initial acquisition (June 13, 2012).
(Note 4) Calculated based on the 44 properties including Ebisu Prime Square acquired on January 10, 2020 and excluding A-PLACE Shinbashi Ekimae to be disposed of March 19, 2020.

14

15

Portfolio Map

Central Tokyo Area

Tokyu Plaza

UR-1 Omotesando Harajuku

Tokyu PlazaUR-2 Akasaka

UR-3 Q plaza EBISU

A-FLAG

UR-9 SHIBUYA

A-FLAG

UR-11 KOTTO DORI

Kita WardURBAN
RETAILTOKYO
OFFICE

Toshima Ward

Arakawa Ward

Ikebukuro

Nippori
A-FLAG

UR-12 BIJUTSUKAN DORI

7

A-FLAG

UR-13 DAIKANYAMA WESTDECKS Tokyo

Tokyu Plaza

UR-15 Beach

UR-16 Ginza (land)TO-3 A-PLACE Yoyogi

TO-4 Aoyama

Q plaza

UR-17 Harajuku

Taito Ward

Bunkyo Ward

Ueno

Asakusa

Shinjuku Ward

Sum

ida

Rive

r

Takadanobaba

Chiyoda Ward

Akihabara
Shinjuku

ShibuyaWard

3

Yotsuya

Akasaka
Mitsuke2

Gaienmae 4

SumidaWard
TLC Ebisu

TO-1 Building

A-PLACETO-2 Ebisu Minami

A-PLACE

TO-5 Luogo Shiodome

Tokyo

16
Chuo
1 Omotesando
8
Ward
Shibuya 17 11 12
Shinbashi
Minato Ward
9
5
12
14
13
Tokyo Tower Hamamatsucho
13 18
Ebisu
3 1
6
2
Tamachi
Harajuku

TAMACHI

TO-6 SQUARE (Land)

OSAKI

TO-11 WIZTOWER

A-PLACE

TO-7 Ikebukuro

Shiodome

TO-12 Building

A-PLACE

TO-8 Shinbashi

A-PLACE

TO-13 Ebisu Higashi

A-PLACE

TO-9 Gotanda

A-PLACE

TO-14 Shibuya Konnoh

A-PLACE

TO-10 Shinagawa

A-PLACE

TO-15 Gotanda Ekimae

MeguroWard

Meguro9

Gotanda Shinagawa

15 Osaki 10

Shinagawa
Ward

16

15
A-PLACE

TO-16 Shinagawa Higashi

TO-18 Ebisu Prime Square

11
Oimachi16

17

Greater Tokyo Area

SapporoAA-4 icot Mizonokuchi

UR-8 A-FLAG SAPPORO

Overview of API
Structure
The REITThe Sponsor

2

Tokyo

5
9

4

8

AA-5 icot Tama Center

NagoyaShin-Yokohama
ma

11

3

A-PLACE

4

CustodianTransfer Agent
General Administratorof InstitutionallyManaged Assets
Sumitomo Mitsui
Trust Bank, Limited

AA-6 Kanayama
6

General Meetingof Unitholders
The Asset Manager
AA-8

AA-9

icot Omori

Market Square
Sagamihara

AA-11

A-PLACE
Bashamichi

Hakata5

1

MUFG Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited

Board of Directors

Commercial Mall

General Administrator
for Investment
Corporation Bonds

AA-12 Hakata

Executive Director:
Kazushi Sato
Supervisory Director:
Yonosuke Yamada

7Supervisory Director:
Yoshinori Ariga

Support Companies
URBAN
RETAIL

ACTIVIAACCOUNT

UR-5

Kyoto Karasuma
Parking Building

UR-7

Kobe Kyu Kyoryuchi
25Bankan

UR-10

Tokyu Livable Inc.

Q plaza
SHINSAIBASHI

Tokyu Community Corp.

Independent Auditor

Tokyu Hands Inc.
Tokyu Sports Oasis, Inc.

Ernst & Young
ShinNihon LLC

1Asset management agreement

2

Asset custody agreement

3

Transfer agency agreement

4

General administration agreement

5

Fiscal agency agreement

6

Sponsor support agreement,
outsourcing agreement

7

Afﬁliate support agreements

Tokyu Stay Co., Ltd.

A-FLAG KITA

UR-14 SHINSAIBASHI

Amagasaki Q's

AA-1 MALL (Land)

AA-2 icot Nakamozu

Name

Kyoto

5
Osaka Nakanoshima

AA-7 Building

7

18

1
10

Activia Properties Inc.

Executive Director Kazushi Sato

Hyogo/Osaka/Kyoto

Shin-KobeeHistory

ProfileUmeda Gate

AA-10 Tower

Address

Shibuya Solasta 18F,
21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo

Contact

Activia Management Division of
TLC REIT Management Inc.
Tel. +81-3-6455-3377

Closing dates

May 31 and November 30

EDGE

AA-13 Shinsaibashi

Shin-Osaka
hin
hinka
a

Sep. 7, 2011

Registration of incorporation, and foundation
under Article 166 of the Act on Investment
Trusts and Investment Corporations

Implementation of registration by theprime minister under Article 189 of theSep. 20, 2011 Act on Investment Trusts and Investment
Corporations (registration number: Directorof Kanto Local Finance Bureau No. 73)
Jun. 13, 2012

Listed on the J-REIT section of the Tokyo
Stock Exchange (securities code: 3279)

7
10 14
13 2

19

I. Asset Management Report
1. Review of Asset Management(1) Investment Performance of the Investment Corporation

Asset Management Report for the 16th Fiscal Period(Semi-Annual Report)

Fiscal periodBusiness period

From June 1, 2019 to November 30, 2019

III.

Statements of Operations

IV.

Statements of Changes in Unitholders’ Equity

V.

Statements of Cash Distributions

VI.

Statements of Cash Flows

VII.
VIII.

Notes to Financial Statements
Schedule of Financial Statements
Independent Auditor’s Report

16th period

12,72013,327

13,815

14,843

15,542(millions of yen)

[11,861][12,409][12,673][13,472][14,063]

Operating expenses(millions of yen)

5,645

5,855

6,268

6,243

6,862

[Expenses related to rent business](millions of yen)

[4,509][4,706][5,076][4,973][5,464]

Operating profit(millions of yen)

7,074

7,471

7,546

8,599

8,680

Ordinary profit(millions of yen)

6,218

6,611

6,697

7,726

7,818

Profit(millions of yen)

6,217

6,610

6,696

7,725

7,817

Net assets(millions of yen)

208,523

223,777

223,842

256,085

256,198(%)(millions of yen)

[0.0]

[7.3]

[0.0]

[14.4][0.0]

426,838

445,941

445,464

514,359

515,480

[0.2]

[4.5]

[－0.1][15.5][0.2](millions of yen)

202,233

217,091

217,091

248,370

248,370

Number of units issued and outstanding(units)665,214

698,704

698,704

771,224

771,224

Net assets per unit

(yen)313,467

320,275

320,368

332,050

332,196

Total distributions(millions of yen)

6,217

6,611

6,696

7,725

7,817

(yen)

9,346

9,493

9,584

10,118

10,136(yen)[9,346][9,462][9,584][10,003][10,137]

(yen)

[—]

[—]

[—]

[14]

[―]

Unitholders’ capital

Balance Sheets

15th period(millions of yen)

[Change from the previous period]II.

14th period[Lease business revenue]

Total assets

Asset Management Report

13th period

Operating revenue[Change from the previous period]I.

12th period

From June 1, 2017 From December 1, 2017
From June 1, 2018 From December 1, 2018 From June 1, 2019
to November 30, 2017
to May 31, 2018
to November 30, 2018
to May 31, 2019
to November 30, 2019

Basic earnings per unit

(Note4)(Note1)(%)

Cash distributions per unit

Activia Properties Inc.
21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo[Earnings distributions per unit][Distributions per unit in excess ofearnings]
Ordinary profit to total assets(Note2)

(%)

1.5

1.5

1.5

1.6

1.5

Return on unitholders’ equity(Note2)

(%)

3.0

3.1

3.0

3.2

3.1

Unitholders’ equity to total
assets[Change from the previous
period]

48.9

50.2

50.2

49.8

49.7

(Note2)

(%)

[—]

[1.3]

[―]

[－0.4][－0.1]

Payout ratio(Note2)

(%)

99.9

100.0

99.9

99.8

100.0

(properties)[Other reference]
Number of properties

39

42

42

45

44

2

(m )

370,296.85

395,994.33

395,967.44

415,167.22

414,008.41

(%)

100.0

99.8

99.9

99.5

99.8

Depreciation(millions of yen)

1,189

1,234

1,267

1,294

1,298

Capital expenditure(millions of yen)

303

1,077

352

413

640

(millions of yen)

9,400

9,855

10,006

10,827

11,034

Total leasable area

(Note3)

Occupancy rate at end of period

NOI(Note2)(Note1) Basic earnings per unit is calculated by dividing profit by the daily weighted average number of investment units issued and outstanding (665,214 units,696,324
units,698,704 units, 763,508 and 771,224 units for the 12th,13th,14th,15th and 16th fiscal periods, respectively).
(Note2) The indicators are calculated as follows:
Ordinary profit to total assets: Ordinary profit ÷ Average total assets × 100; Average total assets = (Total assets at beginning of period + Total assets at end of period) ÷ 2
Return on unitholders’ equity: Profit ÷ Average net assets × 100; Average net assets = (Net assets at beginning of period + Net assets at end of period) ÷ 2
Unitholders’ equity to total assets: Net assets at end of period ÷ Total assets at end of period × 100
Payout ratio: Total distribution amount (excluding distributions in excess of earnings) ÷ Profit × 100 (rounded down to the first decimal place)
NOI: Rental operating income (Lease business revenue + Other lease business revenue – Expenses related to rental business) + Depreciation + Loss on retirement of noncurrent assets(Note3) The total leasable area is equal to the gross floor area of leasable space in each property excluding properties for which we acquire land only, based on the leaseagreements for building or floor plans as of the end of each fiscal period. Total leasable area for properties for which only land is acquired is based on the lease agreement
for land or land plans as of the end of each fiscal period. As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Shiodome Building, Q
plaza HARAJUKU and Tokyu Plaza Ginza (Land), the figures are in proportion to a pro rata share of co-ownership interests of each property (75%, 50%, 49%, 35%, 60%
and 30%, respectively).
(Note4) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not considered.

2
20

21

(2) Asset Management during the Fiscal Period under Review
1) 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. (on April 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 an absorbed company) as the organizer under the Act on Investment Trusts and Investment Corporations (ActNo. 198 of 1951, including subsequent revisions; hereinafter referred to as the “Investment Trust Act”), 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 market of Tokyo Stock
Exchange, Inc. (Securities code 3279) on June 13, 2012. On December 19, 2018, the Investment Corporation carried out apublicly 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 the words “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 broadly energizing society. The Investment Corporation will also selectreal 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 for the future).
In the fiscal period under review, which ended on November 30, 2019, the Investment Corporation transferred beneficiaryinterests of real estate in trust of A-FLAG AKASAKA (50% co-ownership interest) (Note). Consequently, the Investment
Corporation held 44 properties (with the total acquisition price of ¥498,985 million) at the end of the fiscal period underreview.
(Note) Co-ownership interests of 50% had already been transferred as of March 1, 2019 and the remaining 50% co-ownership interest has now beentransferred as of June 3, 2019.

2) Investment Environment and Investment Performance
In the fiscal period under review, the Japanese economy continued on a trend of gradual recovery on the whole amid
factors that included corporate earnings holding steadily at high levels and improving employment and income
environments although concerns of recession in the global economy sparked by Sino-American trade talks resulted incontinued weakness in exports and cautious business sentiment particularly in the manufacturing industry.
With respect to the environment surrounding retail properties, consumer sentiment has remained firm amid a current
scenario where the consumer confidence index has increased for two consecutive months running up to November, anddespite concerns regarding effects of October’s consumption tax hike as well as typhoons and other natural disasters,
according to the Monthly Consumer Confidence Survey released by the Economic and Social Research Institute, Cabinet
Office, Government of Japan. Moreover, according to the Consumption Trend Survey for Foreigners Visiting Japan
released by the Japan Tourism Agency, the Ministry of Land, Infrastructure, Transport and Tourism, demand related toinbound tourism has remained strong with tourism consumption by overseas visitors to Japan having reached a recordhigh over the months January to September 2019, despite a downturn in the number of tourists from South Korea due todiscord between Japan and South Korea.
In the rental office market, supply has continued to tighten relative to demand. In that regard, according to data publishedby Miki Shoji Co., Ltd., the average vacancy rate of the five central wards of Tokyo (Chiyoda-ku, Minato-ku, Chuo-ku,
Shibuya-ku and Shinjuku-ku) has been hovering just above the 1% range since November 2018, thereby currently
marking a new record low. Meanwhile, rent levels have been continuing on an upward trajectory as they encounter theirlongest upward phase of gains ever with the average rent having been increasing for 71 consecutive months. The market
has also remained favorable in major cities outside Tokyo as vacancy rates hold to their lowest ever levels, having
decreased to the 1% range in Osaka, for instance, along with ongoing moderate increases in rent levels.
The J-REIT market has been maintaining an upward trend overall partially due to an inflow of funds targeting earnings
stability and relatively high yields, against a backdrop of interest-rate environment remaining at low levels and a strong
real estate market. Financing activities through publicly offered capital increase and property acquisition have been
continuously and actively conducted, and this has led to an ongoing expansion in J-REIT asset sizes.
On June 3, 2019, the Investment Corporation transferred beneficiary interests of real estate in trust of A-FLAG
AKASAKA (50% co-ownership interest) (with the transfer price of ¥1,875 million) as trust assets in accordance with thebasic 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 under review were 44
properties (with the total acquisition price of ¥498,985 million) with the total leasable area of 414,008 m2 (125,235 tsubo).
In addition, the occupancy rate at the end of the 16 th period was 99.8%.

3) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” with the aim of maximizing
medium- and long-term unitholder value, the Investment Corporation has been promoting various initiatives with its
sights set on lowering environmental loads and contributing to our 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 theInvestment Corporation needs to address, we released quantitative targets encompassing a wider range of performancebenchmarks from an environmental standpoint, and also clearly stated practical management policy to such ends. This
involves daily effort to achieve our basic objective of reducing four items, including cutting unit energy consumption andgreenhouse gases (GHG) 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 Tokyu Plaza Akasaka, DECKS Tokyo
Beach, Luogo Shiodome, A-PLACE Gotanda Ekimae, A-PLACE Bashamichi and EDGE Shinsaibashi, and some private
areas at A-PLACE Ebisu Minami, A-PLACE Shinagawa, A-PLACE Ebisu Higashi, A-PLACE Gotanda Ekimae, APLACE Kanayama and EDGE Shinsaibashi. Other initiatives included replacing escalators with those that consume lesspower and replacing air conditioning units with those offering greater energy efficiency at A-FLAG SAPPORO; replacing
air conditioning units with those that use environmentally sound refrigerants at DECKS Tokyo Beach; installing energysaving glass at A-PLACE Shinbashi; replacing toilets with those that use water-saving equipment, and replacing elevatorswith those that consume less power and generate lower carbon dioxide emissions at Osaka Nakanoshima Building.
Moreover, we continue to engage in annual initiatives geared to acquiring green building certifications, and during the
fiscal period under review, we have acquired the BELS certifications for the one property Q plaza HARAJUKU (twostars). As such, a total of 25 of our properties have acquired green building certification, which amounted to 59.0% of ourholdings calculated on the basis of gross floor area (as of November 30, 2019).
Furthermore, at Tokyu Plaza Omotesando Harajuku, we continued the “Yasai-no-mori (garden of vegetables) Project,”which entails the property growing vegetables in cooperation with NPOs, sponsor companies, and neighboring nurseryschools. We also cooperated in community activities to coexist with nearby businesses, residents and cities as part ofinitiatives for local society, which during the fiscal period under review included Shiodome Building acting as special
sponsor of the Hamasite Summer Festival and Kyoto Karasuma Parking Building taking part in the Gion Festival.
The Investment Corporation will contribute to achieving a sustainable society by engaging in such initiatives geared to theenvironment and society.

4) Overview of Financing
In the fiscal period under review, the Investment Corporation diversified repayment dates on debt, extended the average
maturity, and diversified means of financing. Also, with the aims of further promoting its sustainability initiatives andexpanding its range of investors by fueling demand from new investors who are interested in ESG investment, theInvestment Corporation issued its first green bonds (unsecured investment corporation bonds) of ¥5,000 million and¥4,000 million in July and November, 2019, respectively, and used the funds to cover repayment of short-termborrowings. In addition, the Investment Corporation refinanced borrowings amounting to a total of ¥18,100 million
largely in order to cover repayment of borrowings and investment corporation bonds that had come due, and worked tootherwise maintain a stable financial base through ongoing moves that have included diversifying repayment dates. As ofthe end of the fiscal period under review, the balance of interest-bearing debt was ¥234,350 million (borrowings of¥211,350 million and investment corporation bonds of ¥23,000 million). The ratio of interest-bearing debt to total assets(LTV = Balance of interest-bearing debt / Total assets x 100) was 45.5% as of the end of the fiscal period under review.
The long-term debt ratio and the ratio of fixed-interest debt to total interest-bearing debt were 97.9% and 92.8%,
respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review is as follows.
This investment unit does not have a credit rating provided or made available for inspection 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’srequest.
Credit Rating Agency

RatingOutlookJapan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable5) Overview of Financial Results and Distributions
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥15,542
million, ¥8,680 million, and ¥7,818 million, respectively, for the fiscal period under review, and profit was ¥7,817
million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles ofIncorporation), it was decided that the amount obtained by subtracting reversal of allowance for temporary difference

4
22

23

adjustments from all of the amount of unappropriated retained earnings would be distributed except a fraction of less than
¥1 of distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included
in tax deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957,
including subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). Consequently,
distributions per investment unit resulted in ¥10,137.

Summary

Establishment through private
September 7, 2011
placement
Capital increase through public
June 12, 2012
offering
Capital increase through thirdJuly 10, 2012
party allotment
Capital increase through public
December 16, 2013
offering
Capital increase through thirdJanuary 15, 2014
party allotment
Capital increase through public
December 17, 2014
offering
Capital increase through thirdJanuary 8, 2015
party allotment
October 1, 2015
December 15, 2015
January 6, 2016
December 1, 2016
December 15, 2016
December 13, 2017
December 26, 2017
December 19, 2018
January 7, 2019

Investment unit split
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment

Number of total
investment units issued

Total unitholders’ capital(millions of yen)

Increase

Increase

Total

Fiscal periodBusiness period(3) Capital Increase, etc.
A summary of capital increases until the fiscal period under review is as follows:
Date

Fluctuation in Market Price of the Investment Securities

Changes in prices of the Investment Corporation’s investment units listed on the Tokyo Stock Exchange REIT Market are as
follows.

Remarks

Total

437,500

448,000

466,000

432,000

461,000(4) Distributions, etc.

With the aim that as greatest as possible distributions of profits would be included in tax deductible expenses under Article 6715 of the Act on Special Measures Concerning Taxation, We will pay distributions of profits of ¥7,817,897,688, which is theamount of the unappropriated retained earnings less the reversal of allowance for temporary difference adjustments, except afraction of less than ¥1 of distributions per investment unit. Consequently, distributions per investment unit resulted in¥10,137.

90,83491,034(Note 2)

762

205,262

339

91,373(Note 3)

43,100248,362

32,636124,010(Note 4)2,700

251,0622,044

126,054(Note 5)

Unappropriated retained earnings

24,050275,11222,800148,855(Note 6)2,020

277,132

1,915

150,770(Note 7)

19,152

169,922(Note 9)3,520

599,654

1,610

171,532(Note 10)61,040660,694

28,583200,116(Note 11)4,520

665,2142,116

202,233(Note 12)31,090696,304

13,793

216,026(Note 13)2,400

698,704

1,064

217,091(Note 14)

67,320766,024

29,036

246,127(Note 15)5,200

771,2242,242

248,370(Note 16)

(Note 1) The Investment Corporation was established through an investment of Tokyu Land Corporation, which underwrote the investment units with an offer
price per unit of ¥500,000.
(Note 2) API issued new investment units through a public offering at a price of ¥460,000 per unit (issue price of ¥445,050 per unit) to raise funds for theacquisition of new properties, etc.
(Note 3) Following the public offering on June 12, 2012, API issued new investment units through a third-party allotment at a price of ¥445,050 per unit.
(Note 4) API issued new investment units through a public offering at a price of ¥782,925 per unit (issue price of ¥757,229 per unit) to raise funds for theacquisition of new properties, etc.
(Note 5) Following the public offering on December 16, 2013, API issued new investment units through a third-party allotment at a price of ¥757,229 per unit.
(Note 6) API issued new investment units through a public offering at a price of ¥979,020 per unit (issue price of ¥948,051 per unit) to raise funds for theacquisition of new properties.
(Note 7) Following the public offering on December 17, 2014, API issued new investment units through a third-party allotment at a price of ¥948,051 per unit.
(Note 8) A 2-for-1 investment unit split was implemented with September 30, 2015 as the record date and October 1, 2015 as the effective date.
(Note 9) API issued new investment units through a public offering at a price of ¥472,360 per unit (issue price of ¥457,418 per unit) to raise funds for theacquisition of new properties, etc.
(Note 10) Following the public offering on December 15, 2015, API issued new investment units through a third-party allotment at a price of ¥457,418 per unit.
(Note 11) API issued new investment units through a public offering at a price of ¥483,326 per unit (issue price of ¥468,283 per unit) to raise funds for theacquisition of new properties.
(Note 12) Following the public offering on December 1, 2016, API issued new investment units through a third-party allotment at a price of ¥468,283 per unit.
(Note 13) API issued new investment units through a public offering at a price of ¥458,150 per unit (issue price of ¥443,657 per unit) to raise funds for theacquisition of new properties.
(Note 14) Following the public offering on December 13, 2017, API issued new investment units through a third-party allotment at a price of ¥443,657 per unit.
(Note 15) API issued new investment units through a public offering at a price of ¥445,410 per unit (issue price of ¥431,320 per unit) to raise funds for theacquisition of new properties.
(Note 16) Following the public offering on December 19, 2018, API issued new investment units through a third-party allotment at a price of ¥431,320 per unit.
(Note 17) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are notconsidered.

From June 1, 2019
to November 30, 2019

Lowest204,500

596,134

From December 1, 2018
to May 31, 2019

589,000

204,100

41,870From June 1, 2018
to November 30, 2018492,500(Note 1)

(Note 8)16th period

518,000

200

150,770

15th period

499,500

200—

From June 1, 2017
From December 1, 2017
to November 30, 2017
to May 31, 2018(yen)

14th period

518,000400

554,264

13th period

Highest400

277,132

12th period

Fiscal periodBusiness period

12th period

13th period

14th period

15th period

16th period

From June 1, 2017 From December 1, 2017 From June 1, 2018 From December 1, 2018 From June 1, 2019
to November 30, 2017
to May 31, 2018
to November 30, 2018
to May 31, 2019
to November 30, 2019
¥6,217,532 thousand¥6,611,254 thousand¥6,696,690 thousand¥7,726,143 thousand¥7,829,267 thousand

Retained earnings¥442 thousand¥117 thousand¥311 thousand¥11,589 thousand¥572 thousand

Total distributions¥6,217,090 thousand¥6,611,137 thousand¥6,696,379 thousand¥7,725,350 thousand¥7,817,897 thousand[¥9,346][¥9,462][¥9,584][¥10,017][¥10,137]¥6,217,090 thousand¥6,611,137 thousand¥6,696,379 thousand¥7,714,553 thousand¥7,817,897 thousand[¥9,346][¥9,462][¥9,584][¥10,003][¥10,137]¥－thousand¥－thousand¥－thousand¥10,797 thousand¥－thousand

[¥－]

[¥－]

[¥－]

[¥14]

[¥－]

¥－thousand¥－thousand¥－thousand¥10,797 thousand¥－thousand

[¥－]

[¥－]

[¥－]

[¥14]

[¥－]

¥－thousand¥－thousand¥－thousand¥－thousand¥－thousand

[¥－]

[¥－]

[¥－]

[¥－]

[¥－]

[Distributions per unit]
Of which, total distributions of profits[Distributions of profits per unit]
Of which, total return on unitholders’capital[Return on unitholders’ capital perunit]
Of the total return on unitholders’capital, the total distribution paymentsfrom the allowance for temporary
difference adjustment[Of the return on unitholders’ capitalper unit, the distribution payment
from the allowance for temporary
difference adjustment per unit]
Of the total return on unitholders’capital, the total distribution paymentsfrom investments and other decreased
distribution under tax laws
[Of the return on unitholders’ capitalper unit, the distribution paymentsfrom investments and other decreased
distribution under tax laws]

6
24

25

(5) Future Investment Policy and Issues to Address
In the Japanese economy going forward, we are observing a firm underpinning supported by robustness in corporate earnings andthe employment and income environments on the domestic front despite a lack of clarity on what effect global economic
slowdown will have on exports and capital expenditure. Meanwhile, we will need to closely monitor developments, particularly
those involving the progress of Sino-American trade negotiations, monetary policy in Europe and the U.S., and the direction
being taken regarding the U.K.’s withdrawal from the European Union.
In the rental office market, a scenario of vacancy rates remaining at low levels and moderately rising rent levels is likely topersist amid strong office demand particularly due to factors that include continuing office environment improvements, andoffice space expansion by the relocation or extension of facilities due to workforce increases, against a backdrop of robust
corporate performance. With respect to the environment surrounding retail properties, we will need to closely monitor effects ofthe consumption tax hike and other such concerns, despite prevailing signs of recovery in consumer sentiment and a trend of
brisk spending by overseas visitors to Japan. The J-REIT market is likely to remain firm in part given the likelihood of low
interest rates due to ongoing monetary easing, and also against a backdrop of factors that include consistent J-REIT performanceand relatively high dividend yields. Amid this environment, the Investment Corporation will continue to promote internal growthby leveraging the competitiveness of its assets under management, while also working to achieve external growth through careful
investment decisions, with the aim of improving unitholder value.

1) 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.

2) 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 such as use, size, specifications and other qualities of properties, andcredibility and name recognition of tenants, 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 to maintain and improve
the quality of its portfolio by carefully selecting investment assets based on the information it receives under its sponsor
support agreement with Tokyu Land Corporation regarding the Investment Corporation and its support agreement withfive group companies in the Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive knowhow and information-gathering network of the Asset Manager.

3) Internal Growth Strategy
The Investment Corporation will operate, manage, and refurbish its portfolio to maintain and improve the competitivenessof its facilities through a comprehensive understanding of the features of its overall portfolio and its individual assets
under management, based on the unique expertise of its Asset Manager. The Investment Corporation will also seek tomanage its portfolio in a stable manner and strengthen its earnings by establishing appropriate operational andmanagement systems tailored to the specific characteristics of the assets it has invested in, and through regular and nonregular inspections by the property management company that has considerable experience in the operation andmanagement of real estate.
The Investment Corporation will also maintain and improve the value of its assets through its expertise in internal growththrough operating and managing properties. It will maximize the competitiveness of its assets through the ongoing
assistance of Tokyu Land Corporation and other support companies, which, through their face-to-face business with
consumers, have rich information 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.

4) Financial Strategy
Having the sound financial strategy in an effort to conservatively control LTV as well as make stable long-termborrowings and diversify maturities (diversifying repayment dates), the Investment Corporation will endeavor to build
stable financial base with solid bank formation. In addition, with the aim of diversifying means of raising funds, theInvestment 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 andflexibly carry out such issuance while paying appropriate attention to various environmental factors with the aim ofachieving long-term and stable growth.

(6) Significant Matters after Book Closing
Not applicable.
< Reference Information >a. Acquisition of Property
The Investment Corporation acquired the property listed below through borrowings, etc. in accordance with the basic asset
management policy set forth in the Articles of Incorporation.
(TO-18) Ebisu Prime Square (acquisition of 51% co-ownership interest)
Type of assets
Trust beneficiary interest
Acquisition price¥30,700 million

Acquisition date

January 10, 2020

Location

1) 1-39, Hiroo 1-chome, Shibuya-ku, Tokyo2) 1-40, Hiroo 1-chome, Shibuya-ku, Tokyo3) 1-7, Hiroo 1-chome, Shibuya-ku, Tokyo
1) Office, retail, parking lots
2) Retail, parking lots
3) Residence, sports club, parking lots
12,179.49 m2

Use

Land area

Gross floor area (Note) 67,581.00 m2
Structure

Month and year ofcompletion
Ownership

1) Steel frame, reinforced concrete, steel-framed reinforced concrete / 22 floors above and 3 floors underground2) Reinforced concrete / 2 floors above and 2 floors underground3) Steel-framed reinforced concrete, reinforced concrete / 13 floors above and 2 floors underground
January 1997Land:
Building:

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

b. Transfer of Property
The Investment Corporation plans to transfer property listed below in accordance with the basic asset management policy set
forth in the Articles of Incorporation.
(TO-17) A-PLACE Shinbashi EkimaeType of assets
Trust beneficiary interest
Scheduled transfer
price
Scheduled delivery
date (Note)
Location¥21,000 million

Use

Retail, office and parking lots

Land area

1,001.39 m2

Gross floor area

8,541.44 m2

Structure

Steel frame, steel-framed reinforced concrete / 10 floors above and 1 floor undergroundMonth and year ofcompletion
Ownership

April 2008 / partial demolition and extension in May 2018

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

Land:
Building:

Owned
Owned

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

8
26

27

(3) Matters Relating to Officers, etc.

2. Overview of the Investment Corporation

1) Executive Director, Supervisory Directors, and Independent Auditor during the Fiscal Period under Review(1) Unitholders’ Capital

Total number of authorized(units)investment units
Total number of investment(units)units issued
Unitholders’ capital(millions of yen)

12th period
As of November
30, 2017(Note)

Number of unitholders

13th period
As of May31, 2018

14th period
As of November
30, 2018

15th period
As of May31, 2019

16th period
As of November
30, 2019

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

665,214

698,704

698,704

771,224

771,224¥202,233¥217,091¥217,091¥248,370¥248,370

6,871

7,162

6,910

7,680

6,914

(persons)(Note) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not

Title

Executive
Director(Note 1)
(Note 2)

Supervisory
Directors(Note 1)considered.

Independent
Auditor(2) Matters Relating to Investment Units

The top 10 unitholders as of the end of the fiscal period under review are as follows:
Name

Number of units
owned

Percentage of total units issued (%)(Note)

Japan Trustee Services Bank, Ltd. (Trust accounts)

148,037

19.19

The Master Trust Bank of Japan, Ltd. (Trust accounts)

133,353

17.29

Tokyu Land Corporation

73,425

9.52

The Nomura Trust and Banking Co., Ltd.
(Investment accounts)

30,697

3.98

Trust & Custody Services Bank, Ltd.
(Securities investment trust accounts)

25,535

3.31

State Street Bank & Trust Company(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited. Tokyo office)18,2802.37

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

13,9411.80

Mizuho Securities Japan Co., Ltd.

13,2101.71

JPMorgan Securities Co., Ltd.

9,087

1.17

STATE STREET BANK WEST CLIENT - TREATY 505234(Standing proxy: Mizuho Bank, Ltd.)

8,001

1.03

Total

473,566

61.40(Note) The percentage of total units issued is calculated by rounding down to the second decimal place.

Name of officer, etc.

Major concurrent post, etc.

Total amount of compensationfor each position during thebusiness period under review(thousands of yen)Kazuyuki Murayama

TLC REIT Management Inc.,
General Manager of Strategy Department,
Activia Management Division－

Kazushi Sato

TLC REIT Management Inc.,
Managing Director, Chief Division Officerof Activia Management Division－

Yonosuke Yamada

Yamada, Goya and Suzuki Law Office
Managing Partner

Yoshinori Ariga

Ariga Yoshinori Accounting Office
Managing Partner

Ernst & Young ShinNihon
LLC

－

3,300

15,700(Note 3)(Note 1) Executive Directors or Supervisory Directors do not hold any investment units of the Investment Corporation under their or another person’s name.
Supervisory Directors may serve as directors of companies other than those mentioned above, but there are no mutual business interests whatsoever
between such companies and the Investment Corporation.
(Note 2) Kazuyuki Murayama resigned from office as Executive Director at the end of his term of office effective September 7, 2019.Kazushi Sato was elected as
Executive Director at the general meeting of unitholders of the Investment Corporation heid on August 9, 2019 and assumed office effective September
8, 2019.
(Note 3) Compensation for the Independent Auditor includes fees for preparing comfort letters related to the issuance of investment corporation bonds in July 2019
and November 2019.

2) Policy Regarding the Dismissal of or Refusal to Reappoint the Accounting Auditor
The Investment Corporation will dismiss the accounting auditor in conformity with the provisions of the Investment
Trust Act and determine not to reappoint the accounting auditor through a resolution of a general meeting of unitholders
while comprehensively considering various factors.

Asset Manager, Custodian Company, and Administrative Agent
Consignment classification
Asset manager

Name
TLC REIT Management Inc.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (unitholder registry administration, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting service, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administrative service)

Sumitomo Mitsui Trust Bank, Limited

General administrator (investment corporation bond service)

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited

10
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29

3. Assets of the Investment Corporation(3) Details of Assets, such as Real Estate, Incorporated into the Portfolio(1) Composition of Assets of the Investment Corporation

Type of assets

Category

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)(Note 1)

Urban Retail Properties
Real estate―

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)(Note 1)――

8-12 Ebisu 1-chome, Shibuya-ku, Tokyo

Kyoto Karasuma Parking
Building
Kobe Kyu Kyoryuchi
25Bankan

678 Motohonenjicho, Nakagyo-ku, Kyoto
City, Kyoto―

Activia Account Properties

―

―

―

―

―

―

―

―

200,524

39.0

198,881

38.6

Tokyo Office Properties

195,556

38.0

195,101

37.8

Activia Account Properties

102,739

20.0

102,648

19.9

Subtotal

498,82097.0

496,63196.3

498,82097.0

496,631

96.3

Total assets (Note 2)

15,5383.0

18,8493.7

514,359

100.0

515,480100.0(498,820)(97.0)(496,631)

30-3 Jingu-mae 4-chome, Shibuya-ku, Tokyo

Q plaza EBISU―

Deposits and other assets

Tokyu Plaza Omotesando
Harajuku (Note 4)
Tokyu Plaza Akasaka (Note 4)―

Total real estate, etc.

Location――

Urban Retail Properties

Property name14-3 Nagatacho 2-chome, Chiyoda-ku,
TokyoTokyo Office Properties

Subtotal

Real estate in trust

A summary of properties owned and under management by the Investment Corporation as of the end of the fiscal period
under review is as follows:

16th period
As of November 30, 2019Urban Retail Properties

15th period
As of May 31, 2019

A-FLAG SAPPORO

1, Minami-Yonjo-Nishi 5-chome, Chuo-ku,
Sapporo City, Hokkaido

A-FLAG SHIBUYA

32-13, Udagawa-cho, Shibuya-ku, Tokyo

Q plaza SHINSAIBASHI
A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI
A-FLAG DAIKANYAMA
WEST
A-FLAG KITASHINSAIBASHI(96.3)

6-1, Daiba 1-chome, Minato-ku, Tokyo
2-1, Ginza 5-chome, Chuo-ku, Tokyo

TLC Ebisu Building

A-PLACE Yoyogi

Major assets owned by the Investment Corporation (the 10 largest properties by book value) as of the end of the fiscal period
under review are as follows:
Occupancy
rate (%)(Note 3)Major use

Leasable area(m2)
(Note 1)

Shiodome Building (Note 4)

70,891

28,136.05

28,058.40

99.7

10.3

OfficeTokyu Plaza Omotesando
Harajuku (Note 4)

44,704

4,918.44

4,918.44

100.0

7.3

RetailTokyu Plaza Ginza (Land) (Note 4)

37,8951,130.04

1,130.04

100.0

3.8

RetailA-PLACE Shinbashi Ekimae

20,822

6,484.57

6,484.57

100.0

2.6

OfficeTokyo Office Properties

Leased area(m2)
(Note 2)

A-PLACE Aoyama
Luogo Shiodome

Book value at endof period(millions of yen)

10-11, Minami Senba 3-chome, Chuo-ku,
Osaka city, Osaka

Tokyu Plaza Ginza (Land)(Note 4)

A-PLACE Ebisu Minami

Property name11-6, Sarugakucho, Shibuya-ku, Tokyo

28-6, Jingu-mae 6-chome, Shibuya-ku,
Tokyo

18-18 Ebisu 1-chome, Shibuya-ku, Tokyo
15-1 Ebisu-minami 1-chome, Shibuya-ku,
Tokyo
23-15 Sendagaya 5-chome, Shibuya-ku,
Tokyo
11-3 Kita-Aoyama 2-chome, Minato-ku,Tokyo
3-3 Higashi-Shinbashi 2-chome, Minato-ku,
Tokyo

TAMACHI SQUARE (Land)

26-24 Shiba 5-chome, Minato-ku, Tokyo

A-PLACE Ikebukuro

16-22 Minami Ikebukuro 1-chome,
Toshima-ku, Tokyo

A-PLACE Shinbashi

11-1 Shinbashi 4-chome, Minato-ku, Tokyo

A-PLACE Gotanda

27-3, Nishigotanda 2-chome, Shinagawa-ku,
Tokyo

A-PLACE Shinagawa

8-40, Konan 1-chome, Minato-ku, TokyoOSAKI WIZTOWER

11-1 Osaki 2-chome, Shinagawa-ku, Tokyo

Shiodome Building (Note 4)

2-20 Kaigan 1-chome, Minato-ku, Tokyo

Kobe Kyu Kyoryuchi 25Bankan

20,54919,653.90

19,653.90

100.0

4.9

RetailEDGE Shinsaibashi

19,994

15,897.64

15,897.64

100.0

3.2

OfficeUmeda Gate Tower

19,302

13,624.49

13,624.49

100.0

3.1

OfficeA-PLACE Gotanda Ekimae

A-PLACE Shinagawa Higashi

18,832

14,658.98

14,658.98

100.0

3.5

Office5-1 Nishigotanda 1-chome, Shinagawa-ku,
Tokyo

A-PLACE Shinagawa Higashi

7-18 Konan 1-chome, Minato-ku, Tokyo

Q plaza SHINSAIBASHI

13,4122,820.23

2,820.23

100.0

2.4

RetailA-PLACE Shinbashi Ekimae

12-9 Shinbashi 1-chome, Minato-ku, Tokyo

Q plaza HARAJUKU (Note 4)

13,3283,378.49

3,378.49

100.0

1.6

RetailSubtotal

279,735

110,702.83

110,625.18

99.9

42.8

Total
(Note 1)
(Note 2)
(Note 3)(Note 4)

Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

Subtotal(2) Major Assets Owned
Ratio of rental
revenue tototal rental
revenues (%)

1-10 Shinsaibashi-suji 1-chome, Chuo-ku,
Osaka City, Osaka
4-40, Minami-Aoyama 5-chome, Minatoku, Tokyo
3-16, Minami-Aoyama 6-chome, Minatoku, Tokyo

DECKS Tokyo Beach (Note 4)

Q plaza HARAJUKU (Note 4)(Note 1) The total amount of assets owned is based on the amounts on the balance sheets as of the end of each 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 the Investment
Corporation.
(Note 2) Total assets represent the amounts recorded on the balance sheets as of the end of each fiscal period. The figures in parentheses represent portions thatpractically correspond to real estate owned in the object assets.

25 Kyomachi, Chuo-ku, Kobe City, Hyogo

Asset type

A-PLACE Ebisu Higashi(Note 5)
A-PLACE Shibuya Konnoh(Note 5)

13-11 Higashi 3-chome, Shibuya-ku, Tokyo
3-1 Shibuya 3-chome, Shibuya-ku, Tokyo

Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

Total leasable area(m2)
(Note 1)

Assessed value at
end of period(millions of yen)
(Note 2)

Book value at endof period(millions of yen)
(Note 3)

4,918.44

62,77544,704

16,609.75

15,70011,677

4,024.88

11,9008,215

21,616.04

11,2008,704

19,653.90

27,40020,54921,229.16

7,250

4,865

3,403.07

8,110

6,343

2,820.23

14,70013,4122,656.53

5,020

4,394

1,994.65

4,860

4,711

2,579.08

2,400

2,348

2,536.75

4,780

4,837

16,125.56

12,887

12,892

1,130.04

39,00037,895

3,378.49

13,30013,328

124,676.57

241,282

198,881

7,342.60

11,8007,205

7,950.49

15,2009,364

3,106.17

4,970

3,876

7,303.69

10,4008,577

4,476.35

6,570

4,206

1,287.96

3,000

2,362

3,409.73

5,270

3,716

5,052.14

7,250

5,819

4,028.69

7,970

5,475

2,986.36

5,430

3,779

7,193.28

14,60010,61628,136.05

77,70070,8914,010.69

7,720

7,066

2,995.72

5,680

4,945

4,316.89

7,860

7,541

14,658.98

20,60018,832

6,484.57

20,40020,822

114,740.36

232,420

195,101

Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements forbuilding or floor plans as of November 30, 2019 and leasable space for properties for which we acquire only land, based on lease agreements for land or
land plans as of November 30, 2019.
Leased area refers to the leased area of each property based on lease agreements as of November 30, 2019. For properties with master lease agreements,
leased area refers to leased areas of each property and is actually leased based on sublease agreements with end-tenants.
Occupancy rate refers to the percentage of total leased area for each property to total leasable area for each property as of November 30, 2019, rounding
down to the first decimal place.
As for Shiodome Building, Tokyu Plaza Omotesando Harajuku,Tokyu Plaza Ginza (Land) and Q plaza HARAJUKU, the figures are in proportion to a
pro rata share of our trust beneficiary co-ownership interest of each property (35%, 75%, 30% and 60%, respectively).

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31

Amagasaki Q’s MALL (Land)
icot Nakamozu

Activia Account Properties

icot Mizonokuchi
icot Tama Center
A-PLACE Kanayama
Osaka Nakanoshima Building
icot Omori

Location
3-1 Shioe 1-chome, Amagasaki City, Hyogo(main building)
2-3 Shioe 1-chome, Amagasaki City, Hyogo(sports club)428-2 Nakamozucho 3-cho, Kita-ku, Sakai
City, Osaka
11-1 Mizonokuchi 6-chome, Takatsu-ku,
Kawasaki City, Kanagawa
35 Ochiai 1-chome, Tama City, Tokyo
14-18 Kanayama 1-chome, Naka-ku,
Nagoya City, Aichi
2-2 Nakanoshima 2-chome, Kita-ku, Osaka
City, Osaka
8-2, Omorikita 1-chome, Ota-ku, Tokyo

Market Square Sagamihara
Umeda Gate Tower
A-PLACE Bashamichi
Commercial Mall Hakata
EDGE Shinsaibashi

777-2 Shimokuzawa, Chuo-ku, Sagamihara
City, Kanagawa
1-9, Tsurunocho, Kita-ku, Osaka City,Osaka
43 Honcho 4-chome, Naka-ku,Yokohama
City, Kanagawa
6-40, Tokojimachi 2-chome, Hakata-ku,
Fukuoka city, Fukuoka
2-3, Nishi Shinsaibashi 2-chome, Chuo-ku,
Osaka City, Osaka

Asset type

Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

Total leasable area(m2)
(Note 1)

Assessed value at
end of period(millions of yen)
(Note 2)

Book value at endof period(millions of yen)
(Note 3)

27,465.44

14,20012,11328,098.02

10,9008,068

14,032.05

3,240

2,612

5,181.58

4,000

2,609

9,314.90

8,830

20,226.77
6,209.79(Note 5)

Changes in key figures in the rental business (figures by property owned and under management by the Investment Corporation)
15th period(From December 1, 2018 to May 31, 2019)

16th period(From June 1, 2019 to November 30, 2019)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

Revenues related torent business(millions of yen)
(Note 3)

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

Revenues related torent business(millions of yen)
(Note 3)

Ratio of rental
revenue to total
rental revenues(%)

Tokyu Plaza
Omotesando Harajuku(Note 4)

35

100.0

1,081

7.5

35

100.0

1,115

7.3

6,282

Tokyu Plaza Akasaka(Note 4)

98

100.0

613

4.2

95

99.9

667

4.4

15,20010,972Q plaza EBISU

4

100.0

271

1.9

4

100.0

277

1.8

6,870

5,729

Kyoto Karasuma
Parking Building

2

100.0

(Note 5)(Note 5)2100.0(Note 5)(Note 5)

Property name15,152.42

5,010

4,661

A-FLAG AKASAKA

8

100.0

79

0.5

－

－

1

0.0

13,624.49

21,40019,302

Kobe Kyu Kyoryuchi
25Bankan

7

100.0

805

5.6

7

100.0

743

4.9

9,775.50

4,610

3,976

A-FLAG SAPPORO

17

100.0

448

3.1

16

99.9

636

4.2

9,612.88

6,290

6,323

A-FLAG SHIBUYA

2

100.0

217

1.5

2

100.0

220

1.4

15,897.64

20,00019,994Q plaza
SHINSAIBASHI

6

100.0

353

2.4

6

100.0

358

2.4

A-FLAG KOTTO
DORI

7

100.0

122

0.8

7

100.0

124

0.8

A-FLAG
BIJUTSUKAN DORI

4

100.0

124

0.9

4

100.0

128

0.8

A-FLAGDAIKANYAMA
WEST

1

100.0

(Note 5)(Note 5)1100.0(Note 5)(Note 5)

A-FLAG KITASHINSAIBASHI

5

100.0

106

0.7

5

100.0

105

0.7

DECKS Tokyo Beach(Note 4)

85

100.0

583

4.0

81

99.2

620

4.1

Tokyu Plaza Ginza(Land) (Note 4)

1

100.0

448

3.1

1

100.0

571

3.8

Q plaza HARAJUKU(Note 4)

16

100.0

184

1.3

16

100.0

243

1.6

Subtotal

174,591.48

120,550

102,648

Total

414,008.41

594,252

496,631

Tokyo Office Properties(Note 1) Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of November 30, 2019 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of November
30, 2019.
(Note 2) The appraisal of each property is commissioned to the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd.,
Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K.. Assessed value at end of period stands for the appraised value described in each real estateappraisal report, with November 30, 2019 taken as the point of evaluation.
(Note 3) Book value at end of period stands for the book value minus depreciation as of November 30, 2019, rounded down to the nearest ¥ million.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU and Shiodome Building,the figures are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (75%, 50%, 49%, 30%, 60% and 35%, respectively).
(Note 5) The calculation of total leasable 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).

Urban Retail Properties

Property nameSubtotal

298

100.0

－

－

282

99.8

－

－

TLC Ebisu Building

12

100.0

343

2.4

12

100.0

339

2.2

A-PLACE Ebisu
Minami

11

100.0

374

2.6

11

100.0

389

2.6
0.9

A-PLACE Yoyogi

3

100.0

130

0.9

3

100.0

135

A-PLACE Aoyama

8

100.0

303

2.1

8

100.0

315

2.1

Luogo Shiodome

7

100.0

179

1.2

7

100.0

182

1.2

TAMACHI SQUARE(Land)

1

100.0

62

0.4

1

100.0

62

0.4

A-PLACE Ikebukuro

1

100.0

(Note 5)(Note 5)1100.0(Note 5)(Note 5)

A-PLACE Shinbashi

9

98.7

199

1.4

10

100.0

206

1.4

A-PLACE Gotanda

11

100.0

182

1.3

11

100.0

193

1.3

A-PLACE Shinagawa

7

100.0

116

0.8

8

100.0

129

0.9

OSAKI WIZTOWER

5

100.0

337

2.3

5

100.0

354

2.3

Shiodome Building(Note 4)

39

100.0

1,524

10.5

38

99.7

1,568

10.3

A-PLACE Ebisu
Higashi

8

100.0

175

1.2

8

100.0

176

1.2

A-PLACE Shibuya
Konnoh

4

100.0

115

0.8

4

100.0

117

0.8

A-PLACE Gotanda
Ekimae

10

100.0

185

1.3

10

100.0

190

1.3

A-PLACE Shinagawa
Higashi

9

100.0

518

3.6

9

100.0

534

3.5

A-PLACE Shinbashi
Ekimae

6

100.0

399

2.8

6

100.0

400

2.6

Subtotal

151

99.9

－

－

152

99.9

－

－

14
32

33

Property name

Numberoftenants(Note 1)

Activia Account Properties

Amagasaki Q’s
MALL (Land)

15th period(From December 1, 2018 to May 31, 2019)1

4. Capital Expenditure for Assets under Management

16th period(From June 1, 2019 to November 30, 2019)

Occupancy
rate(%)(Note 2)

Revenues related torent business(millions of yen)
(Note 3)

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

Revenues related torent business(millions of yen)
(Note 3)

Ratio of rental
revenue to total
rental revenues
(%)

100.0

356

2.5

1

100.0

356

2.3

icot Nakamozu

2

100.0

311

2.1

2

100.0

310

2.0

icot Mizonokuchi

1

100.0

(Note 5)(Note 5)1100.0(Note 5)(Note 5)

icot Tama Center

9

100.0

146

1.0

9

100.0

146

1.0

A-PLACE Kanayama

20

100.0

287

2.0

21

100.0

294

1.9

Osaka Nakanoshima
Building

40

99.9

535

3.7

40

100.0

544

3.6

icot Omori

8

100.0

233

1.6

8

100.0

234

1.5

Market Square
Sagamihara

3

100.0

(Note 5)(Note 5)3100.0(Note 5)(Note 5)

Umeda Gate Tower

15

100.0

464

3.2

15

100.0

475

3.1

A-PLACE Bashamichi

34

100.0

184

1.3

34

100.0

185

1.2

Commercial Mall
Hakata

18

97.0

210

1.5

18

95.0

220

1.4

EDGE Shinsaibashi

19

90.7

351

2.4

23

100.0

487

3.2

Subtotal

170

99.0

－

－

175

99.7

－

－

Total

619

99.5

14,502

100.0

609

99.8

15,199100.0(Note 1) The number of tenants refers to the total number of tenants for each property at the end of each fiscal period, based on each lease agreement. In the casewhere a master lease agreement is in place, the number of end tenants is counted. In the case of a property for which only land is acquired, the total numberof tenants on the land is counted.
(Note 2) Occupancy rate refers to the percentage of leased area to leasable area for each property as of the end of each fiscal period, rounding down to the firstdecimal place.
(Note 3) Rental revenue includes other rental revenue.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu plaza Ginza (Land), Q plaza HARAJUKU and
Shiodome Building, the figures are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (75%, 50%, 49%,
30%, 60% and 35%, respectively).
(Note 5) Rental revenue and the ratio of rental revenue to total rental revenues are not disclosed, as consent from tenants has not been obtained.

(4) Details of Specified Transaction
The outstanding contract amount and fair value of specified transactions as of the end of the fiscal period under review
are as follows:(thousands of yen)Classification

Over-the-counter

Transaction
Interest rate swaps(Receive floating pay fixed)
Total

Notional contract amount (Note 1)
Over 1 year

Fair value(Note 2) (Note 3)

30,140,000

30,140,000

8,954

30,140,000

30,140,000

8,954(Note 1) The contract amount of interest rate swaps is presented based on its notional principal.
(Note 2) The statement of the fair value is omitted for those transactions that satisfy requirements for special treatment based on accounting standards forfinancial instruments.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

(5) Other Assets
There are no major incorporations of other specified assets that are the principal investment targets of the Investment
Corporation as of the end of the fiscal period under review.

(1) Scheduled Capital Expenditure

The following table shows major capital expenditure for renovation works, etc., scheduled for the properties
owned by the Investment Corporation at the end of the fiscal period under review. The estimated construction
cost below includes the portion expensed for accounting purposes.

Name of real property(Location)

Estimated construction cost
(millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid

Osaka Nakanoshima
Building(Osaka, Osaka)Complete replacement of elevator
machinery and equipment

From December 2019
to April 2020

190

–

–

Luogo Shiodome(Minato, Tokyo)

Large-scale repair work

From December 2020
to May 2020

83

–

–

A-PLACE Bashamichi(Yokohama, Kanagawa)

Large-scale repair work

From May 2020
to November 2020

80

–

–

A-PLACE Gotanda
Ekimae(Shinagawa, Tokyo)

Maintenance of outerwall

From May 2020
to November 2020

72

–

–

A-FLAGDAIKANYAMA WEST
(Shibuya, Tokyo)

Large-scale repair work

From December 2019
to May 2020

62

–

–

TLC Ebisu Building(Shibuya, Tokyo)

Renovation work for mechanicalparking facility

From October 2021
to November 2021

62

–

–

TLC Ebisu Building(Shibuya, Tokyo)

Installation of LED lighting

From May 2020
to September 2020

59

–

–

A-PLACE
Shinbashi Ekimae(Minato, Tokyo)

Renewal of outdoor air conditioning From April 2020
units
to May 2020

50

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of rainwater drain pipes
and hot water main pipes for highrise building (Second period)

From December 2019
to May 2020

41

–

–

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair of lavatory plumbing for12th and 13th floors

From March 2020
to May 2020

32

–

–

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair of lavatory plumbing for
14th and 15th floors

From March 2020
to May 2020

32

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of pneumatic automatic
control equipment

From March 2020
to May 2020

31

–

–

EDGE Shinsaibashi(Osaka, Osaka)

Maintenance of mechanical parking
equipment (vertical rotary
From December 2019equipment)
to May 2020
Replacement, etc. of intermediatechain guide rails

30

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Overhaul of mechanical parking
facility system

From March 2020
to May 2020

26

–

–

Tokyu Plaza Omotesando
Harajuku(Shibuya, Tokyo)

Renewal of deck for rooftop garden“Omohara forest”

From February 2020
to February 2020––

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of air conditioning units
for small banquet halls (conversion
to gas-heat pump (GHP) air
conditioning systems)

From March 2020
to May 2020

22

–

–

Osaka Nakanoshima
Building(Osaka, Osaka)Renewal of capacitors

From February 2020
to February 2020

19

–

–

A-FLAG BIJUTSUKAN
DORI(Minato, Tokyo)

Renewal of air conditioning units

From January 2020
to January 2020

19

–

–

23
(Note)

16
34

35

Name of real property(Location)

Estimated construction cost
(millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid––

DECKS Tokyo Beach(Minato, Tokyo)

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

From December 2019
to March 2020

A-PLACE Bashamichi(Yokohama, Kanagawa)

Construction to repartition private
areas

From December 2019
to December 201917

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of elevators

From March 2020
to May 2020

17

–

–

A-PLACE Aoyama(Minato, Tokyo)

Partial renovation of central
monitoring panel

From March 2020
to May 2020

15

–

–

A-PLACE
Ebisu Minami(Shibuya, Tokyo)

Maintenance of outdoor air
conditioning units

From February 2020
to May 2020

12

–

–

DECKS Tokyo Beach(Minato, Tokyo)

Renovation of signs

From December 2019
to December 2019–

icot Nakamozu(Sakai, Osaka)

Application of colored asphalt
coating

From March 2020
to May 2020

Shiodome Building(Minato, Tokyo)

Replacement of shut-off valve forheat source water (First period)

From October 2019
to January 2020

Shiodome Building(Minato, Tokyo)

Replacement of pipes for kitchen
waste water system

From October 2019
to January 2020

18
(Note)

11(Note)

10
10(Note)

10(Note)(2) Capital Expenditure during the Period
For assets held by the Investment Corporation in the 16th fiscal period, construction work conducted by the Investment
Corporation during the fiscal period ended November 30, 2019 that falls into capital expenditure is as follows. The
capital expenditure for the fiscal period ended November 30, 2019 amounted to ¥640 million, and repair andmaintenance expenses that were accounted for as expense in the fiscal period ended November 30, 2019 came to ¥436
million. On aggregate, construction work of ¥1,076 million was carried out during the fiscal period.
Purpose

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

Large-scale repair work

From June 2019
to November 2019

90

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of emergency power
generators

From April 2019
to August 2019

89

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of elevator (elevator
No. 8)

From June 2019
to August 2019

53

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of elevator (elevator
No. 7)

From September 2019
to November 201945–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of power control board(Second period)

From August 2019
to November 2019

30

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of escalators (fourescalators)

From October 2019
to November 2019

25

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

25

–

–

Renewal of air conditioning units and From October 2019
FCUs
to November 2019

Osaka Nakanoshima Building(Osaka, Osaka)

Repair of lavatory plumbing for 10thand 11th floors

From September 2019
to November 201919

Shiodome Building(Minato, Tokyo)

Inspection and maintenance of
emergency power generationequipment, and replacement ofdeteriorated parts

From September 2019
to September 2019

(Note)DECKS Tokyo Beach(Minato, Tokyo)

Environment-related improvement
work

From November 2019
to November 2019

(Note)

Kobe Kyu Kyoryuchi 25Bankan(Kobe, Hyogo)

Renovation of multilevel car parksystemFrom November 2019
to November 2019

17

A-PLACE Gotanda
Ekimae(Shinagawa, Tokyo)

Installation of LED lighting inprivate areas

From August 2019
to November 2019

14

A-PLACE Shinbashi(Minato, Tokyo)

Renewal of central monitoring
equipment

From July 2019
to November 2019

10

–

–

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

Other

18

18

180

Total

640

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

(3) Money Accumulated for Long-Term Repair Plan
Not applicable

36

18

37

5. Expenses and Liabilities(2) Borrowings

The status of borrowings from financial institutions as of November 30, 2019 is as follows:(1) Details of Expenses Related to Asset Management, etc.
Item(a) Asset management fees (Note)(b) Asset custody fees

15th period(From December 1, 2018
to May 31, 2019)

Category(thousands of yen)
16th period(From June 1, 2019
to November 30, 2019)

1,127,058

1,249,529

14,021

14,641Maturity
date

Repayment
method

1,670

－

1,670

－ 0.19184%

June 1,2019

Lump-sum(Note 4)
repayment

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,660

－

Sumitomo Mitsui Trust Bank, Limited

1,600

－

1,600

－ 0.19154%

November
24,
2019

Lump-sum(Note 7)
repayment

Unsecured,
non-guaranteed

January 10, Lump-sum
repayment (Note 3)
2020

Unsecured,
non-guaranteed

June 13,2019

Lump-sum (Note 3)
repayment

Unsecured,
non-guaranteed

June 28,
2019

Lump-sum(Note 4)
repayment

Unsecured,
non-guaranteed

LenderSumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Shortterm
loans
payableMizuho Bank, Ltd.

(c) Administrative service fees

35,16837,874(d) Directors’ compensation

3,300

3,300

Sumitomo Mitsui Trust Bank, Limited

90,83092,843

Mizuho Bank, Ltd.

1,270,378

1,398,189(e) Other operating expenses
Total(Note) Asset management fees contain acquisition fees that were included in the book value of acquired properties (15th fiscal period: ¥352,500 thousand).

(unit: millions of yen)

Averageinterest rate
(Note 1)

Drawdown
dateJune 1,2018

April 24,
2019

MUFG Bank, Ltd.
January 10,
2019

MUFG Bank, Ltd.
Total
Development Bank of Japan Inc.

June 13,2012

BeginningbalanceEndingbalance

800

－

2,000

2,000

2,000

2,000 0.20062%

1,000

1,000

14,0005,000

Use offunds

Remarks

6,000－ 1.19051%

1,200

－

1,200

－ 0.02875%(Note 5)

Sumitomo Mitsui Trust Bank, Limited

340－ 0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)340－ 0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

340－ 0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

340－ 0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking Corporation

170－ 0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Development Bank of Japan Inc.

170

－ 0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking Co.,LTD.
The Norinchukin Bank

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Mizuho Trust & Banking Co.,LTD.

June 30,
2016

January 9,
2015

1,500

－

1,500

－

0.02875%(Note 5)Lump-sum
repayment

0.51000%

August 29,
2019

Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

160

160 0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

160

160 0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

160

160 0.93846%

160

160 0.93846%

Sumitomo Mitsui Banking Corporation

80

Development Bank of Japan Inc.

Shinkin Central Bank

August 29,
2014

Sumitomo Mitsui Trust Bank, Limited
Long- MUFG Bank, Ltd. (Note 6)
term
loans
payable Mizuho Bank, Ltd.
(Note 2)January 10,(Note 3)2020
Lump-sum
repayment
January 10,(Note 3)2020

Unsecured,
non-guaranteed

80 0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

80

80 0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust Bank, Limited

600

600 0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)600

600 0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

600

600 0.72546%

Unsecured,
non-guaranteed

600

600 0.72546%

January 10,(Note 4)2020
Lump-sum
January 10, repayment (Note 4)
2020

Sumitomo Mitsui Banking Corporation

300

300 0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Development Bank of Japan Inc.

300

300 0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

March 31,2020

Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

January 10,
2014

July 9,2014

Resona Bank, Limited.
The Bank of Fukuoka, Ltd.
The Gunma Bank, Ltd.
The Norinchukin Bank

March 31,
2015

1,500

1,500

1,000

1,000

500

500

500

500

0.52500%

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

20
38

39

(Unit: Millions of yen)

(Unit: Millions of yen)
Category
LenderDrawdown
dateEndingbalance

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks

Category
LenderSumitomo Mitsui Trust Bank, Limited

1,060

1,060 1.07980% December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust Bank, Limited

MUFG Bank, Ltd. (Note 6)

1,060

1,060 1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,060

1,060 1.07980%

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

December 19,
2013

1,060

December 19,(Note 3)2020
Lump-sum
repayment
December 19,
1,060 1.07980%(Note 3)2020

Drawdown
dateJune 15,
2015

Averageinterest rate
(Note 1)Maturity
date

1,500

1,500 0.94688%

June 15,
2022

1,500

1,500 0.94688%

June 15,
2022

1,500

1,500 0.94688%

June 15,
2022

1,500

1,500 0.94688%

BeginningbalanceEndingbalance

Repayment
methodUse offunds

Remarks(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Lump-sum
repayment

Sumitomo Mitsui Banking Corporation

530

530 1.07980% December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust Bank, Limited

200

200 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank of Japan Inc.

530

530 1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)200

200 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust Bank, Limited

1,340

1,340 1.07856%

January 10,2021(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

200

200 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,340

1,340 1.07856%

January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

200

200 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

1,340

1,340 1.07856%

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking Corporation

100

100 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

1,340

1,340 1.07856%

January 10,(Note 3)2021
Lump-sum
January 10, repayment(Note 3)2021

Unsecured,
non-guaranteed

Development Bank of Japan Inc.

100

100 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

670

670 1.07856%

January 10,
2021

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560

1,560

Mizuho Bank, Ltd.

1,560

1,560

1,560

1,560 0.44835%

June 15,2022

Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

0.38236%January 10,2023

Lump-sum
repayment (Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,nonguaranteed(Note 4)

Unsecured,nonguaranteed(Note 4)

Unsecured,nonguaranteed(Note 4)

Unsecured,nonguaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

January 10,
2014

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Nippon Life Insurance Company
Longtermloanspayable(Note 2)Beginningbalance

670
March 31,
2017

500

670 1.07856%

January 10,2021(Note 3)

Unsecured,
non-guaranteed

500 0.25000%

March 31,2021

Lump-sum
repayment (Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust Bank, Limited

3,920

3,920

MUFG Bank, Ltd.

3,920

3,920

1,970

1,970

1,970

1,970

Mizuho Bank, Ltd.

January 10,
2019

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

January 10,
2019

1,970

0.21562%

1,970 0.36607%

Sumitomo Mitsui Trust Bank, Limited

320

320

MUFG Bank, Ltd.

640

640

320

January 5,
2018(Note 3)

July 12,
2021

July 12,2021

Lump-sum (Note 3)
repayment

Lump-sum
repayment (Note 3)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking Corporation

160

28, Lump-sum (Note 3)
320 0.41931% December
2021
repayment
160

Development Bank of Japan Inc.

160

160

Sumitomo Mitsui Trust Bank, Limited

840

840 0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

840

840 0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840 0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840

840 0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking Corporation

420

420 0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank of Japan Inc.

420

420 0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking Co.,LTD.

March 31,
2015

2,000

2,000

500

500

March 31,
2017

400

400

400

400

Mizuho Bank, Ltd.

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Shinkin Central Bank
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
The 77 Bank, Ltd.

January 9,
2015

840

0.68500%

0.30630%

March 31,2022
March 31,2022

Lump-sum
repayment

Lump-sum
repayment (Note 4)
Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Unsecured,
non-guaranteed

June 13,2018

Lump-sum
repayment

Sumitomo Mitsui Banking Corporation

160

160

Development Bank of Japan Inc.

160

160

Sumitomo Mitsui Trust
Bank, Limited

620

620

620

620

620

620

Sumitomo Mitsui Banking Corporation

320

320

Development Bank of Japan Inc.

320

320

1,250

1,250

0.61330%(Note 5)

March 30,
2023

1,250

1,250

0.61330%(Note 5)

March 30,
2023

1,250

1,250

0.61330%(Note 5)

March 30,
2023

1,250

1,250

0.61330%(Note 5)

March 30,
2023

Sumitomo Mitsui Trust Bank, Limited

750

750

Mizuho Bank, Ltd.

750

750

750

750

0.44804%

March 30,2023

(Note 4)

Sumitomo Mitsui Banking Corporation

375

375

Lumpsum
repayment

Unsecured,nonguaranteed

Development Bank of Japan Inc.

375

375

Sumitomo Mitsui Trust Bank, Limited

800

800

1,600

1,600

800

800

0.38472%

April 6,2023

(Note 3)

Sumitomo Mitsui Banking Corporation

400

400

Lumpsum
repayment

Unsecured,nonguaranteed

Development Bank of Japan Inc.

400

400

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

January 9,
2019

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6) (Note7)

Unsecured,
non-guaranteed

December 16,
2015

Mizuho Bank, Ltd.

September30,
2015

MUFG Bank, Ltd. (Note 6)

MUFG Bank, Ltd.

March 30,
2018

MUFG Bank, Ltd.
Mizuho Bank, Ltd.

October 6,
2016

Lumpsum
repaymen
t

22
40

41

(Unit: Millions of yen)

(Unit: Millions of yen)
Category
LenderDrawdown
date

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd. (Note 6)
Mizuho Bank, Ltd.

June 15,2015

MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

December 16,
2015

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

June 13,2017

Mizuho Bank, Ltd.
Taiyo Life Insurance Company
Mitsui Sumitomo Insurance Company,
LimitedMarch 31,2017

Sumitomo Mitsui Trust Bank, Limited

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Maturity
date

1,500

1,500 1.06316%

June 15,
2023

1,500

1,500 1.06316%

June 15,
2023

1,500

1,500 1.06316%

June 15,
2023

1,500

1,500 1.06316%

June 15,2023

625

625 0.75387%

June 15,2023

625 0.75387%

June 15,
2023

625

1,250

2,500

2,500 0.46400%

1,250

1,250

500
500

1,400

January 12,
2016

Endingbalance

1,250

1,400

MUFG Bank, Ltd. (Note 6)
Mizuho Bank, Ltd.

Averageinterest rate
(Note 1)

Beginningbalance

500

June 15,
2023

Repayment
methodUse offunds

Remarks(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

Lump-sum
repayment

Lump-sum
repayment

Endingbalance

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodMarch 21,2025

Lump-sum(Note 3)
repayment

Unsecured,
non-guaranteed

September
16,
2025

Lump-sum(Note 3)
repayment

Unsecured,
non-guaranteed

0.46453%

September
16,
2025

Lump-sum
repayment (Note 4)

Unsecured,
non-guaranteed

September
16,
2025

Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

February 27, Lump-sum(Note 4)2026
repayment

Unsecured,
non-guaranteed

March 19,2026

Lump-sum (Note 3)
repayment

Unsecured,
non-guaranteed

June 12,2026

Lump-sum
repayment (Note 4)

Unsecured,
non-guaranteed

September 7, Lump-sum (Note 4)
2026
repayment

Unsecured,
non-uaranteed

December 14, Lump-sum (Note 4)
2026
repayment

Unsecured,
non-uaranteed

28, Lump-sum (Note 4)0.23004% December
2026
repayment

Unsecured,
non-uaranteed

Sumitomo Mitsui Trust Bank, Limited

1,200

1,200

MUFG Bank, Ltd.

2,400

2,400

1,200

1,200 0.54094%

Mizuho Bank, Ltd.

September 21,
2016

Sumitomo Mitsui Banking Corporation

600

Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

March 16,
2017

600

600

1,800

1,800

3,600

3,600

1,800

1,800 0.70169%

Sumitomo Mitsui Banking Corporation

900

900

Development Bank of Japan Inc.

900

900

Mizuho Trust & Banking Co.,LTD.

440

440

Resona Bank, Limited.

440

440

The Bank of Fukuoka, Ltd.

440

440

440

440

440

440

THE NISHI-NIPPON CITY BANK,
LTD.

500

500

January 12,2024(Note 4)

Unsecured,
non-guaranteed

1,400 0.78362%

January 12,2024(Note 4)

Unsecured,
non-guaranteed

The Bank of Kyoto,Ltd.

300

300

January 12,(Note 4)2024
Lump-sum
repayment
January 12,(Note 4)2024

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust Bank, Limited

500

500

Mizuho Bank, Ltd.

500

500

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

500

500 0.58630%

250

250

1,400

1,400 0.78362%

1,400

1,400 0.78362%

The Norinchukin Bank

January 12,2024(Note 4)

Unsecured,
non-guaranteed

Development Bank of Japan Inc.

700

700 0.78362%

January 12,2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Trust & Banking Co.,LTD.

2,000

2,000

1,500

1,500

1,000

1,000

Shinkin Central Bank

500

500

The Norinchukin Bank

500

500

0.41380%

March 29,2024

Shinkin Central Bank

Lump-sum (Note 4)
repayment

Unsecured,
non-guaranteed

March 16,2018

March 30,
2018

Sumitomo Mitsui Banking Corporation
Longtermloanspayable(Note 2)Development Bank of Japan Inc.

250

250

－

1,500

－

1,500

Sumitomo Mitsui Trust Bank, Limited

2,100

2,100

MUFG Bank, Ltd.

4,200

4,200

2,100

2,100 0.61942%

Sumitomo Mitsui Banking Corporation

1,050

1,050

Development Bank of Japan Inc.

1,050

1,050

December 13,
Sumitomo Mitsui Banking Corporation
2016

6,000

6,000 0.69796%

Mizuho Trust & Banking Co.,LTD.
Shinkin Central Bank

Mizuho Bank, Ltd.

August 29,
2019

September 21,
2016

0.09313%

Sumitomo Mitsui Trust Bank, Limited

1,200

1,200

0.85377%

June 17,2024(Note 3)

Unsecured,nonguaranteed

MUFG Bank, Ltd. (Note 6)

1,200

1,200

0.85377%

June 17,2024(Note 3)

Unsecured,nonguaranteed

Mizuho Trust & Banking Co.,LTD.

1,100

1,100

Resona Bank, Limited.

1,100

1,100

0.85377%

June 17,2024(Note 3)

Unsecured,nonguaranteed

The Bank of Fukuoka, Ltd.

1,100

1,100 0.35765%

1,100

1,100

(Note 3)

Unsecured,nonguaranteed

The 77 Bank, Ltd.

(Note 3)

Unsecured,nonguaranteed

MUFG Bank, Ltd.

(Note 3)

Unsecured,nonguaranteed

Mizuho Trust & Banking Co.,LTD.

Lumpsum
repayment(Note 4)

Unsecured,nonguaranteed

Lumpsum
repayment(Note 4)

Mizuho Bank, Ltd.

MUFG Bank, Ltd.

December
16,
2015

Sumitomo Mitsui Banking Corporation

Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

June 13,2016

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

June 13,
2016

1,200

1,200

1,200

1,200

0.85377%

June 17,
2024

600

600

0.85377%

June 17,2024

0.85377%

June 17,2024

0.33150%(Note 5)June 17,
2024

600

600

1,500

1,500

3,000

3,000

1,500

1,500

1,500

1,500

3,000

3,000

1,500

1,500

0.36900%(Note 5)

December
13,
2024

Lumpsum
repayment

Unsecured,nonguaranteed

March 7,2019

The Norinchukin Bank

Sumitomo Mitsui Trust Bank, Limited
June 13,2017

Mizuho Bank, Ltd.

The Norinchukin Bank

June 28,
2019

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

January 9,
2018

Use offunds

Remarks

600

1,400 0.78362%

500

Unsecured,
non-guaranteed

700 0.78362%

The Bank of Fukuoka, Ltd.

BeginningbalanceLump-sum
repayment (Note 4)

700

March 31,2017

LenderDrawdown
date

September
29,
2023

0.35998%

Sumitomo Mitsui Banking Corporation

Resona Bank, Limited.

Category

600

600

1,750

1,750

3,500

3,500 0.71015%

1,750

1,750

－

1,200

－

1,200

780

780

1,560

1,560

780

780 0.70698%

Sumitomo Mitsui Banking Corporation

390

390

Development Bank of Japan Inc.

390

390

January 9,
2027

Lump-sum
repayment (Note 4)

Unsecured,
non-uaranteed

24
42

43

(Unit: Millions of yen)
Category
LenderDrawdown
date

Sumitomo Mitsui Trust
Bank, Limited

BeginningbalanceEndingbalance

2,200

2,200

2,200

2,200

2,200

2,200

Sumitomo Mitsui Banking Corporation

200

200

Development Bank of Japan Inc.

200

200

Sumitomo Mitsui Trust Bank, Limited

320

320

MUFG Bank, Ltd.

640

640

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Mizuho Bank, Ltd.

June 13,2018

January 5,
2018

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks

0.73360%

June 13,2027

Lump-sum
repayment(Note 4)

Unsecured,
non-uaranteed

320

320 0.74869%

Sumitomo Mitsui Banking Corporation

160

160

Development Bank of Japan Inc.

160

160

1,000

1,000

1,000

1,000 0.54375%(Note 5)1,000

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

April 19,2019

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
LongSumitomo Mitsui Trusttermloans Bank, Limited
payable Mizuho Bank, Ltd.
(Note 2)
MUFG Bank, Ltd.

April 19,2019

January 10,
2019

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

January 10,
2019

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

May 31,
2019

1,000
500

500

500

500 0.58821%

3,210

3,210

3,210
1,610

3,210 0.55800%(Note 5)
1,610

1,610

1,610

1,610

1,610 0.65264%

1,165

1,165

1,165

1,165

590

590 0.56127%

Sumitomo Mitsui Banking Corporation

590

590

Development Bank of Japan Inc.

590

590

Sumitomo Mitsui Trust
Bank, Limited－

420

Mizuho Bank, Ltd.

－

420

－

420 0.49281%

－

220

－

220

MUFG Bank, Ltd.

MUFG Bank, Ltd.

July 9,2019

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Total

June 13,2019－
206,350

6,000 0.56511%

July 5,
2027

July 5,
2027

July 5,2027

Lump-sum
repayment

Lump-sum
repayment(Note 3)(Note 4)

Unsecured,
non-uaranteed

Unsecured,
non-uaranteed

Lump-sum
repayment(Note 4)

Unsecured,
non-uaranteed

January 11, Lump-sum
2028
repayment(Note 3)

Unsecured,
non-uaranteed

January 11, Lump-sum
2028
repayment(Note 3)

Investment Corporation Bonds
Name of bonds

Issuance date

Balance as ofMay
31, 2019(millions ofyen)

Balance as ofNovember30, 2019(millions ofyen)Interest
rate(%)

The 2nd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

2,000

The 3rd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

The 4th Unsecured Investment
Corporation Bond

February 3, 2016

The 5th Unsecured Investment
Corporation Bond

Maturity date

Repayment
method0.297

April 21,2020

Lump sum(Note)

2,000

0.726

April 21,2025

Lump sum(Note)

2,000

2,000

0.770

February 3,
2026

Lump sum(Note)

February 2, 2017

4,000

4,000

0.001

January 31,
2020

Lump sum(Note)The 6th Unsecured Investment
Corporation Bond

February 2, 2017

1,000

1,000

0.480

February 2,
2027

Lump sum(Note)The 7th Unsecured Investment
Corporation Bond

February 2, 2017

1,000

1,000

0.810

February 2,
2032

Lump sum(Note)The 8th Unsecured Investment
Corporation Bond

February 13,
2018

1,000

1,000

0.160

August 12,
2022

Lump sum(Note)The 9th Unsecured Investment
Corporation Bond

February 13,
2018

1,000

1,000

1.050

February 12,
2038

Lump sum(Note)

The 10th Unsecured Investment
Corporation Bond (Green Bond)

July 9, 2019

－

5,000

0.220 July 9, 2024

Lump sum(Note)

The 11th Unsecured Investment
Corporation Bond (Green Bond)

November 18,
2019

－

4,000

0.530

November16, 2029

Lump sum(Note)

14,00023,000Unsecured,
non-uaranteed

Total

Use of proceeds
Repayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRemarks

Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed(Note) The Investment Corporation may repurchase and cancel bonds at any time after the date of payment unless otherwise specified by the Japan Securities
Depository Center, Inc.
May 31,2028

Lump-sum
repayment(Note 4)

Unsecured,
non-uaranteed(3) Short-Term Investment Corporation Bonds
Not applicable(4) Subscription Rights for New Investment Units
July 10,2028

Lump-sum
repayment(Note 4)

Unsecured,
non-uaranteed

December
13,
2028

Lump-sum
repayment(Note 4)

Unsecured,
non-uaranteed

Not applicable

6. Buying and Selling during the Period(1) Buying and Selling, etc., of Real Estate and Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets
Acquisition

206,350(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of thishedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.
(Note 7) Use of the borrowings is appropriated to repayment of investment corporation bonds.

Category

Asset type

Urban Retail
Properties

Trust
beneficiaryinterests

Property name

A-FLAGAKASAKA

Acquisition
date－

DisposalAcquisition price(millions of yen)－

(Note 2) (Note 3)

Total

－

Disposal
date(Note1)

June 3,2019

Disposalamount(millions ofyen)Book value(millions ofyen)

Gain (loss) on
disposal(millions of
yen)

1,875

1,530

343

1,875

1,530

343

(Note1) The disposal amount represents the trading value of trust beneficiary rights stipulated in beneficiary right sale agreement for the asset (excluding
consumption tax, local consumption tax, and expenses such as trading commissions).
(Note2) The disposal amount of A-FLAG AKASAKA represents figure equivalent to the percentage of the Investment Corporation’s co-ownership interest (50%).
(Note3) Regarding the disposal of A-FLAG AKASAKA, in addition to the above, there were “Other disposal expenses” of ¥1 million and the gain (loss) on
disposal reflects such expenses.

(2) Buying and Selling, etc. of Other Assets
Not applicable. In addition, the Investment Corporation’s assets other than the above-mentioned real estate and assetbacked securities are mostly comprised of direct bank deposits and bank deposits in trust.

26
44

45

(3) Survey of Prices, etc. of Specified Assets

7. Accounting Status

1) Real Estate
Property nameDate ofacquisition /disposal

A-FLAGAKASAKA (Note 2)

June 3,
2019

1,875

Total

－

1,875

Acquisition /Disposal

Disposal(Note 1)

Disposal amount(millions of yen)Appraisal value(millions of yen)

(Note 1)Name of appraiser

Date ofappraisal

1,875Japan Real Estate Institute

October 1,
2018

1,875

－

－

The disposal amount represents the trading value of trust beneficiary rights stipulated in beneficiary right sale agreement for the asset (excluding
consumption tax, local consumption tax, and expenses such as trading commissions).
The disposal amount of A-FLAG AKASAKA represents figure equivalent to the percentage of the Investment Corporation’s co-ownership interest (50%).
The appraisal of the above-mentioned real estate was conducted by applying “Real Estate Appraisal Standard Section 3: Appraisals Regarding Prices ofReal Estate for Securitization.”(Note 2)
(Note 3)

Please refer to “II. Balance Sheets,” “III. Statements of Operations,” “IV. Statements of Changes in Unitholders’ Equity,” “V.
Statements of Cash Distributions” and “VII. Notes to Financial Statements.”(2) Changes in the Calculation Method of Depreciation Expenses
Not applicable(3) Changes in the Evaluation Method of Real Estate, etc. and Infrastructure Assets, etc.
Not applicable2) Others
Not applicable

8. Other(4) Transactions between Interested Parties
Purchase and sale amounts

Category
Total amount(1) Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company

Purchase amounts

Sale amounts－ million¥1,875 million

Not applicable(2) Announcements

Details of transactions between interested parties

1) The 5th unitholders' meeting was held on August 9, 2019.
The main summary of matters that were approved at the unitholders' meeting was as follows:

ORB Limited Liability Company－ million (－%)

¥1,875 million (100.0%)

Total－ million (－%)

¥1,875 million (100.0%)

Commissions Paid
Category

Property management fee

Total amount (A)(thousands of yen)

424,176

Breakdown of transactions with interested parties
Paid toTokyu Community Corp.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation
Tokyu Community Corp.
Tokyu Community Corp.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation

Building management fee

753,388

Construction management fee

15,641Other management operation
expenses

59,546

Tokyu Community Corp.

Other lease business expenses

365,542

Tokyu Community Corp.
HANDS LAB INC.
Ishikatsu Exterior Inc.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation
Tokyu Re・design Corporation

Amount (B)(thousands of yen)
184,451

AgendaSummary

Agendum1:
Partial Amendment to the
Articles of Incorporation

The Articles of Incorporation were amended with regard to the following matters as per the original proposals:
・To change the location of the head office of the Investment Corporation from Minato-ku, Tokyo to Shibuyaku, Tokyo as of the date of the relocation of the head office of the Investment Corporation decided at themeeting of the Board of Directors held by December 31, 2019.
・In connection with the structure of the asset management fee to the asset management company, in order toalign to the asset management fee more closely with the unitholders' interest, the balance of the type1
management fee calculated based on the amounts of the total assets of API and the type2 management fee
based on DPU and NOI will be revised, by lowering the upper limit of the type1 management fee from
0.4% to 0.3% and increasing the upper limit of the type2 management fee from 0.0002% to 0.00021%.
・In association with the new calculation method of the asset management fee mentioned in above, in orderthat it will be applied from December 1, 2019, the first day of the 17th fiscal period of API, a supplementaryprovision stipulating an effective date of the change mentioned in above will be established.
・In order to avoid any influence in documentation from the change of era, a year in the Articles ofIncorporation will be written in western calendar.
Kazushi Sato was elected as Executive Director as per the original proposal.

(B) / (A)(%)
43.5

127,059

30.0

69,112
629,132
7,337

16.3
83.5
46.9

5,114

32.7

1,505

9.6

7,101

11.9

113,368
1,296
946

31.0
0.4
0.3

953

0.3

878
784

0.2
0.2

(Note 1) The term “Interested parties” refers to interested parties of Asset Management Companies as stipulated by Article 201, Paragraph 1 of theInvestment Trust Act, Article 123 of the Enforcement Ordinances of the Act on Investment Trust and Investment Corporation of Japanand Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment
Corporations, issued by The Investment Trusts Association, Japan.
(Note 2) Other than commission paid as referred to above, construction works ordered to interested parties are as follows:
Tokyu Community Corp.
¥99,994 thousand
Tokyu Land SC Management Corporation¥12,699 thousand
Tokyu Architects & Engineers INC.
¥4,500 thousand
Tokyu Re・design Corporation¥2,535 thousand(5) Transactions between the Asset Manager in Other Businesses of the Asset Manager
No relevant matter exists under this subject as the asset manager (TLC REIT Management Inc.) does not engage in any
other business such as the first- or second-type financial instruments businesses under the Financial Instruments andExchange Act (or the securities business under the former Securities and Exchange Act), the building lots and buildings
transaction business, or the real estate joint enterprise.

46(1) Assets, Liabilities, Principal, and Profit and Loss

Agendum2:
Election of One Executive
Director
Agendum3:
Kazuyuki Murayama was elected as Alternate Executive Director as per the original proposal.
Election of One Alternate
Executive Director
Agendum4:
Yonosuke Yamada and Yoshinori Ariga were elected as per the original proposal.
Election of Two Supervisory
Directors

2) Here is an outline of major agreement that the Board of Directors of the Investment Corporation approved to conclude andmodify for the fiscal period under review.
Date of approval

Item

August 29, 2019 Conclusion of the 4thalteration agreement for aconsignment agreement for
asset management

Summary
In response to the approval of changes in the stipulations related to asset management feesat the 5th general meeting of unitholders of the Investment Corporation, the Board of
Directors of the Investment Corporation approved changes in part of a consignment
agreement for asset management (including later changes), which was entered into by andbetween the Investment Corporation and TLC REIT Management Inc. as of September 7,
2011.

(3) Status of Companies Owing Real Estate Overseas
Not applicable28

47

(4) Status of Real Estate Owned by Companies Owning Real Estate Overseas
Not applicable(5) Other
For the purpose of this report, the numbers for amounts below unit and percentages are rounded to units, unless otherwise
mentioned specifically.

48

49

Financial Statements
II. Balance Sheets(Unit: Thousands of yen)

(Unit: Thousands of yen)
As of May 31, 2019

As of May 31, 2019

As of November 30, 2019

As of November 30, 2019

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits

9,257,380

12,670,027

Operating accounts payable

614,988

1,265,123

Cash and deposits in trust

3,542,901

3,515,426

Short-term loans payable

14,000,000

5,000,000

Operating accounts receivable

866,251804,474

Current portion of investment corporation bonds

6,000,000

6,000,000

Prepaid expenses

507,244355,113

Current portion of long-term loans payable

20,400,000

7,300,000

7,987

6,749

Accounts payable - other375,773

198,011

14,181,766

17,351,791

Accrued expenses

929,635

963,509

Other
Total current assets

Income taxes payable

1,099

605

Accrued consumption taxes

165,430

379,062

84,986,537

Advances received

574,299581,577

11,0191,390

Non-current assets
Property, plant and equipment
Buildings in trust

84,710,063

Accumulated depreciation(12,065,901)(13,256,431)

Deposits received

Buildings in trust, net

72,644,162

71,730,105

Other

698,826

703,696

Accumulated depreciation(185,296)(201,554)

Structures in trust, net

513,529

502,142

Structures in trust

Machinery and equipment in trust

1,406,968

1,434,131

Accumulated depreciation(359,497)(388,834)

Machinery and equipment in trust, net

1,047,471

1,045,296

Tools, furniture and fixtures in trust

222,204

247,197

Accumulated depreciation(113,714)(128,828)

Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment

108,489

118,368

415,408,426

414,174,855

5,928

5,928

489,728,007

487,576,696

Intangible assets
Leasehold rights in trust

9,092,591

9,055,086

1,695

1,441

9,094,287

9,056,527

1,258,702

1,350,026

Derivatives

－

8,954

Deferred tax assets

24

5

Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses

Other
Total investments and other assets
Total non-current assets

38,32238,322

1,297,049

1,397,309

500,119,344

498,030,533

Deferred assets
Investment corporation bond issuance costs

58,10398,652

Total deferred assets

58,10398,652514,359,213

515,480,977

Total assets

Total current liabilities

0－43,072,245

21,689,281

Non-current liabilities
Investment corporation bond

8,000,000

17,000,000

Long-term loans payable

185,950,000

199,050,000

Tenant leasehold and security deposits in trust

21,239,977

21,543,424

Derivatives Liabilities
Total non-current liabilities
Total liabilities

11,474－215,201,452

237,593,424

258,273,697

259,282,705

248,370,846

248,370,846

Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Allowance for temporary difference－

adjustments
Total deduction from unitholders' capital
Unitholders' capital, net*3(10,797)－(10,797)248,370,846

248,360,049

7,726,143

7,829,267

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus

7,726,143

7,829,267

256,096,990

256,189,316

Deferred gains or losses on hedges(11,474)

8,954

Total valuation and translation adjustments(11,474)

Total unitholders’ equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets*2

256,085,515
514,359,213

8,954
*2

256,198,271
515,480,977

1
50

2

51

III. Statements of Operations

Ⅳ. Statements of Changes in Unitholders’ Equity(Unit: Thousands of yen)Previous fiscal period

Current fiscal period(From December 1, 2018

(From June 1, 2019

to May 31, 2019)

to November 30, 2019)

Previous fiscal period (From December 1, 2018 to May 31, 2019)(Unit: Thousands of yen)
Unitholders’ equity

Operating revenue
Lease business revenue

Surplus*1

13,472,375*1

14,063,573

Other lease business revenue*1

1,030,063*1

1,136,219

Gain on sales of real estate properties*2

341,051*2

343,063

Total operating revenue

14,843,490

15,542,856

Operating expenses
Expenses related to rent business
Asset management fee*1

4,973,578
1,127,058*1

5,464,545
1,249,529

Asset custody fee

14,021

14,641

Administrative service fees

35,16837,874

Directors’ compensations

3,300

3,300

Other operating expenses

90,83092,843

Total operating expenses

6,243,957

6,862,734

8,599,533

8,680,122

Operating profit
Non-operating income

Unitholders’ capital

Balance at beginning ofcurrent period

Issuance of new
investment units

217,091,520

31,279,326

7,725,832

7,725,832

Net changes of items
other than unitholders’equity1,029,453

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

32,243,059

Balance at end ofcurrent period*1
248,370,846

7,726,143

7,726,143

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

256,085,515

Interest expenses

634,549

636,203

Interest expenses on investment corporation bonds

36,26235,543

Amortization of investment corporation bond issuance costs

9,542

9,905

Investment unit issuance expenses

25,013－

Borrowing related expenses

167,716

181,347500

500

873,583

863,501

7,726,936

7,818,311

Dividends of surplus
Distribution in excess of
net earnings fromallowance for temporary
difference adjustments

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

1,104

634

7,725,832

7,817,677

311

11,5897,726,143

7,829,267

ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

Valuation andtranslation adjustments

Unitholders’ equity

Non-operating expenses

Total income taxes(65,719)

1,029,453

1,690

19

(65,719)

31,279,326

986

(6)

(65,719)

Total changes of items
during period

Total non-operating income

Income taxes - deferred

31,279,326

7,725,832

663

614

31,279,326

7,725,832－

7,818,311

223,842,455

ProfitInsurance claim income

1,110

54,24554,245(6,696,379)

59

7,726,936

223,788,210(6,696,379)

967

Income taxes - current

6,696,690

Total net assets(6,696,379)

73

Profit before income taxes

Total surplus

Total valuationand translation
adjustments(6,696,379)

913

Ordinary Profit

6,696,690

Total unitholders’ Deferred gains orequitylosses on hedges

Dividends of surplus

Reversal of distribution payable

Total non-operating expenses

Unappropriatedretained earnings(undisposed loss)

Changes of items during
periodInterest income

Other

Valuation and translation adjustments

Unitholders’ capital

Balance at beginning ofcurrent period
Changes of items during
periodSurplusDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

7,726,143

256,096,990(11,474)(11,474)(7,714,553) (7,714,553)(7,714,553)(7,714,553)(10,797)(10,797)

7,817,677

7,817,677

Total
surplus248,370,846－(10,797)－(10,797)248,370,846

7,726,143(10,797)

ProfitNet changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end ofcurrent period

Totalunitholders’equityDeduction from
Unappropriunitholders' capital
ated
Total
Unitholders’ Allowance forUnitholders’retaineddeduction
capitalcapital, net
earnings
temporaryfrom(undisposed
difference
unitholders'loss)adjustments
capital7,817,677

7,817,677

Total net
assets256,085,515

20,42920,42920,429－(10,797)(10,797)(10,797)

103,123

103,123

92,326

20,42920,429112,756*1
248,370,846(10,797)(10,797)248,360,049

7,829,267

7,829,267

256,189,316

8,954

8,954

256,198,271

4

3
52

53

V. Statements of Cash Distributions

Calculation method for distributions

Fiscal periods
Previous fiscal period(From December 1, 2018
to May 31, 2019)
AmountAmount¥7,726,143,417¥7,829,267,374

Additional amount of cash distributions in excessof earnings¥10,797,136－

Of which, allowance for temporary difference
adjustments¥10,797,136－

Amount incorporated into unitholders' capital－¥10,797,136

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

Ⅰ

Unappropriated retained earnings

Ⅱ

Ⅲ

Ⅳ

Distributions[Cash distributions per unit]
Of which, distributions of earnings

Ⅴ

Current fiscal period(From June 1, 2019
to November 30, 2019)¥7,714,553,672¥7,817,897,688[Of which, distributions of earnings per unit]¥[10,003]¥[10,137]

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

¥[14]

¥[－]

¥11,589,745¥572,550

Earnings carried forward

5
54

Based on the distribution policy set
Based on the distribution policy set
forth in Article 35, Paragraph 1 of the forth in Article 35, Paragraph 1 of the
Articles of Incorporation of the
Articles of Incorporation of theInvestment Corporation, distributions Investment Corporation, distributions
shall be limited to the amount of net shall be limited to the amount of net
profit in excess of an amountprofit in excess of an amountequivalent to ninety hundredths
equivalent to ninety hundredths(90/100) of distributable profits, as(90/100) of distributable profits, as
stipulated in Article 67-15, Paragraph stipulated in Article 67-15, Paragraph
1 of the Act on Special Measures
1 of the Act on Special Measures
Concerning Taxation. In
Concerning Taxation. In
consideration of this policy, we will consideration of this policy, we will
pay distributions of profits ofpay distributions of profits of¥7,714,553,672, which is almost the ¥7,817,897,688, which is the amountentire amount of the net profitof the unappropriated retained
defined in Article 136, Paragraph 1
earnings less the reversal ofof the Act on Investment Trusts and allowance for temporary difference
Investment Corporations, except for adjustments (refers to stipulations offractional distribution per unit less
Article 2, Paragraph 2, Item 30 of thethan one yen.
Regulations on Accountings ofBased on the policy on distribution of Investment Corporations), except acash exceeding net profit set forth in fraction of less than ¥1 of
distributions per investment unit.
Article 35, Paragraph 2 of the
Articles of Incorporation of theInvestment Corporation, distributions
in excess 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 ofInvestment Corporations), taking into
account effects of the deduction in
net assets on distribution amounts.
During the fiscal period underreview, the Investment Corporation
has accordingly decided to distribute¥10,797,136 as distributions related
to allowance for temporary
difference adjustments (refers to
stipulations of Article 2, Paragraph 2,
Item 30 of the Regulations on
Accountings of Investment
Corporations), calculated to exclude
a fraction of less than ¥1 of
distributions in excess of earnings
per investment unit, with the amountequivalent to deferred losses onhedges of ¥11,474,393. As a result,distributions are to amount to¥7,725,350,808 for the fiscal period
under review.

655

VI. Statements of Cash Flows

VII. Notes to Financial Statements(Unit: Thousands of yen)Previous fiscal period

Current fiscal period(From December 1, 2018

(From June 1, 2019

to May 31, 2019)

to November 30, 2019)

Cash flows from operating activities
Profit before income taxes

7,726,936

7,818,311

Depreciation

1,295,168

1,299,058

Loss on retirement of non-current assets

3,793

－

Amortization of investment corporation bond issuance costs

9,542

9,905

(73)

(59)

Interest expenses

670,811

671,747

Investment unit issuance expenses

25,013－

Borrowing related expenses

167,716

181,347

Decrease (increase) in operating accounts receivable(17,425)

61,777

Increase (decrease) in accrued consumption taxes(291,956)

213,632

Interest income and interest on securities

Decrease (increase) in prepaid expenses(172,582)

165,699

Decrease in property, plant and equipment in trust due to sale

1,495,081

1,493,070

Decrease in intangible assets in trust due to sale37,50537,505

Increase (decrease) in operating accounts payable(75,397)

303,762

Increase (decrease) in accrued expenses

72,335

19,133

Increase (decrease) in advances received

145,410

7,278

9,113

(83,861)

Decrease (increase) in long-term prepaid expenses
Other, net(5,940)(10,040)

Subtotal

11,095,053

12,188,268

73

59(668,083)(653,684)

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities(987)(1,108)

10,426,056

11,533,534(71,588,974)(472,822)(326,192)(345,198)

Notes on Assumption of Going Concern
Not applicable

Notes on Important Accounting Policies
1. Method of depreciation of (1)non-current assets(2)(3)
2. Accounting method fordeferred assets(1)

3. Accounting for income
and expenses

Property-related taxes
For property tax, city planning tax, depreciable asset tax for real properties held, the amount of tax
levied corresponding to the calculation period is recorded as expenses related to rent business.
The settlement money for property tax that is paid to the transferor for acquisition of real
properties (so-called “amount equivalent to property tax”) is not recorded as expenses related torent business but included in the acquisition costs for the related properties. There is no amountequivalent to property tax included in acquisition cost for properties for the current fiscal period.

4. Method of hedge
accounting(1)

Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities

2,082,892

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

Cash flows from financing activities
Increase in short-term loans payable

18,095,107

4,997,750

Decrease in short-term loans payable(13,200,000)(14,000,000)

Proceeds from long-term loans payable

40,234,648

12,925,779

Repayments of long-term loans payable(6,500,000)(13,100,000)－

8,953,594

Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds(4,000,000)－

Proceeds from issuance of investment units

31,199,767－

Dividends paid

(6,695,537)(7,723,513)(17,847)(32,598)

59,116,138(7,978,987)

Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents(290,079)

3,385,171

Cash and cash equivalents at beginning of period

13,090,361

12,800,282

Cash and cash equivalents at end of period*112,800,282

*1

(3)

(4)

Investment unit issuance expenses
The full amount is recorded as expenses at the time of expenditure.
Investment corporation bond issuance costs
Amortized by the straight-line method over the period until maturity.

Method of hedge accounting
Deferred hedge accounting is applied. For interest rate swaps that satisfy the requirements for
special treatment, special treatment is applied.
Hedging instruments and hedged items
Hedging instruments: Interest rate swaps transactions
Hedged items: Long-term loans payable
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 theInvestment Corporation.
Method of assessing hedge effectiveness
The Investment Corporation assesses hedge effectiveness by comparing the cumulative totalchanges in the cash flows of the hedged items with those of the hedging instruments, and thenverifying the ratio of the changes in both amounts. However, hedge effectiveness is deemed tohave been ensured with respect to interest rate swaps that satisfy the requirements for special
treatment.

5. Scope of cash (cash andcash equivalents) in thestatements of cash flows

Cash and cash equivalents include cash on hand, cash in trust, demand deposits, deposits in trust, andhighly liquid short-term investments that are readily convertible, bear little risk in price fluctuations,and mature within three months of the date of acquisition.

6. Other important mattersrelated to the preparationof financial statements

(1)

(2)

Accounting method for trust beneficiary right with real estate, etc. as trust asset
With regard to trust beneficiary right with real estate, etc. in holding as trust asset, all assets andliabilities as well as all revenue and expense items associated with all trust assets are accounted forunder the respective account items of the balance sheets and statements of operations.
Of the trust assets accounted for under the respective account items, the following items withsignificance are separately indicated on the balance sheets.
i)
Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture andfixtures in trust; land in trust; construction in progress in trust; and leasehold rights in trustiii) Tenant leasehold and security deposits in trust
Accounting method for consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for by the tax-exclusion method.
Consumption taxes unqualified for deduction for tax purposes for non-current assets, etc. are
included in acquisition cost for each asset.

16,185,454

7
56

(2)

(2)

Cash flows from investing activities
Purchase of property, plant and equipment in trust

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
Intangible assets
Internal use software is amortized by the straight-line method over the expected useful life
(5 years).
Long-term prepaid expenses
The straight-line method is used.

857

Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2018 to May 31, 2019)
1. Reason for Provision, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

Notes to Statements of Operations*1. Breakdown of Income from Real Estate Leasing Business(Unit: Thousands of yen)Previous fiscal period(Unit: Thousands of yen)
Allowance for temporary difference
adjustments

Reason for provision
Recognition of loss on valuation ofinterest rate swaps

10,797A.

Current fiscal period(From December 1, 2018

(From June 1, 2019

to May 31, 2019)

to November 30, 2019)

Real estate leasing business revenues

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.

Lease business revenue
12,235,271

12,896,071

Common service fees

836,999754,640

Current fiscal period (From June 1, 2019 to November 30, 2019)
1. Reason for Reversal, Related Assets, etc. and Amount of Reversal

Parking lot fees

291,993295,863

Other rent revenue

108,110

Related assets, etc.
Deferred gains or losses on hedges

Rent(Unit: Thousands of yen)
Allowance for temporary difference
adjustments

Reason for reversal
Elimination of loss on valuation ofinterest rate swaps

Other lease business revenue
Total real estate leasing business revenues
B.

(10,797)

Expenses related to rent businessNotes to Balance Sheets

Management operation expenses

Total amount specified in thecommitment line contracts¥21,000,000 thousand––

Loan balance
Net balance¥21,000,000 thousandC.

¥21,000,000 thousand

1,087,694

9,402

11,227

189,963436,542

1,294,914

1,298,804

Loss on retirement of non-current assets

3,793

Other expenses related to rent business

300,981－
4,973,578

365,5425,464,545

Total real estate leasing business expenses

4,973,578

5,464,545

Income from real estate leasing business (A – B)

9,528,861

9,735,247(Unit: Thousands of yen)

¥50,000 thousand

A-FLAG AKASAKA (50% co-ownership interest)
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*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable.
Current fiscal period (From June 1, 2019 to November 30, 2019)
1. Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
InitialRelated assets, etc. Reason for provision
beginning of provision for reversal forend ofamountperiodperiodperiodperiodRecognition of loss
Deferred gains or losses
on valuation of
10,797–
10,797–
10,797on hedges
interest rate swaps

1,011,981

998,158

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

As of November 30, 2019

¥50,000 thousand

940,529

Tax and public dues

*2. Breakdown of Gain on sales of real estate properties*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
As of May 31, 2019

Utilities expenses

Depreciation¥21,000,000 thousand

1,136,219
15,199,792

1,252,752

Repair and maintenance expenses

As of November 30, 2019

As of May 31, 201914,063,573

14,502,439

1,235,835

Insurance

Commitment Line Contracts
The Investment Corporation has the commitment line contracts with three of the banks with which it does business.

116,997

1,030,063

Real estate leasing business expenses

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.

1.

13,472,375

1,875,000
1,532,587
1,361
341,051

Current fiscal period (From June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
Reason forreversal–

A-FLAG AKASAKA (50% co-ownership interest)
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

1,875,000
1,530,575
1,360
343,063

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.

9
58

10
59

Notes to Statements of Changes in Unitholders’ Equity

Notes on Financial Instruments
1. Matters Regarding Financial Instruments*1. Total number of authorized investment units and total number of investment units issued are as follows:
Previous fiscal period

Total number of authorized investment units
Total number of investment units issued(1) Policy for Financial Instruments

Current fiscal period(From December 1, 2018

(From June 1, 2019

to May 31, 2019)

to November 30, 2019)

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.

4,000,000 units

4,000,000 units

771,224 units

771,224 units

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, and diversified due dates toensure financial stability and avoid the risk of interest-rate hikes.
The Investment Corporation also invests temporary excess funds in deposits in general, taking safety andliquidity, etc. into account and considering the interest-rate environment and its cash management.

Notes to Statements of Cash Flows

The Investment Corporation may carry out derivatives transactions for the purpose of hedging the interest-raterisk of borrowings and other risks, but does not engage in speculative transactions.

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

Current fiscal period(2) Content and Risks of Financial Instruments and Risk Management System(From June 1, 2019
to November 30, 2019)

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

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

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

As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit risks suchas the insolvency of the financial institutions in which the excess funds are deposited. However, the Investment
Corporation deposits excess funds carefully by limiting the period of deposits to the short term, taking safety andliquidity, etc. into account and considering the financial environment and its cash management.
Borrowings and investment corporation bond are received mainly for the purpose of acquiring real estate andrefinancing of existing borrowings. Tenant leasehold and security deposits are deposits provided by tenants.
Borrowings, investment corporation bond, tenant leasehold and security deposits are exposed to liquidity risks at
the time of repayments. However, these risks are managed through management of liquidity in hand by preparing
a monthly funding plan, efforts to reduce liquidity risk on loans payable and investment corporation bond by
diversifying repayment periods, etc., and other means.

Notes to Lease Rental Revenues
The Investment Corporation leases properties on which rental revenues are earned. As of May 31, 2019 and November 30, 2019,
future lease revenues under non-cancelable operating leases are summarized as follows:
As of May 31, 2019

Floating-rate loans payable are also exposed to the risk of fluctuations in interest-rates. However, these risks aremanaged through derivative transactions (interest rate swaps) as hedging instruments in certain floating-rateloans payable.

As of November 30, 2019

Due within one year

¥14,945,574 thousand¥16,137,216 thousand

Due after one year

¥128,246,729 thousand¥121,523,586 thousand

Total¥143,192,304 thousand¥137,660,803 thousand(3) Supplemental Remarks on the Fair Value of Financial Instruments
The fair value of financial instruments is based on market prices or reasonably calculated value if it has nomarket price. As certain assumptions are made in calculating these values, if different assumptions, etc. are used,
these values could vary.
2.

Matters Regarding Fair Values of Financial Instruments
Carrying amounts, fair values, and the differences between the two values as of May 31, 2019, are as shown below.
Financial instruments whose fair value is considered to be extremely difficult to determine are not included in thistable (please refer to (Note 2)).
(Unit: Thousands of yen)
Carrying amount(1) Cash and deposits

9,257,380－

3,542,901

3,542,901－

Total assets

12,800,282

12,800,282－(1) Short-term loans payable

14,000,000

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

6,000,000

6,003,546

3,546(3) Current portion of long-term loans payable

20,400,000

20,446,855

46,855(4) Investment corporation bonds

8,000,000

8,327,254

327,254

185,950,000

188,220,631

2,270,631

234,350,000

236,998,287

2,648,287(11,474)(11,474)－

Total liabilities
Derivative transactions

60

Difference(2) Cash and deposits in trust(5) Long-term loans payable

11

9,257,380

Fair value

1261

Carrying amounts, fair values, and the differences between the two values as of November 30, 2019, are as shown
below. Financial instruments whose fair value is considered to be extremely difficult to determine are not includedin 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 loans payable

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-term loans payable

7,300,000

7,320,691

20,691(4) Investment corporation bonds

17,000,000

17,504,805

504,805(5) Long-term loans payable

199,050,000

201,308,615

2,258,615

234,350,000

237,138,949

2,788,949

8,954

8,954

－

Total liabilities
Derivative transactions(Note 3) Expected Amounts of Repayment of Monetary Claims after the Account Closing Date (May 31, 2019)(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

Deposits

9,257,380

－

－

－

－

－

Deposits in trust

3,542,901

－

－

－

－

－

Total

12,800,282

－

－

－

－

－

Expected Amounts of Repayment of Monetary Claims after the Account Closing Date (November 30, 2019)(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Deposits

12,670,027

－

－

－

－

－

Deposits in trust

3,515,426

－

－

－

－

－

Total

16,185,454

－

－

－

－

－

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 issettled in a short time.
Liabilities(1) Short-term loans payable
The book value is used as the fair value of these liabilities, given that the fair value is almost the same as the book value, as
it is settled in a short time.
(2) Current portion of investment corporation bonds, (4) Investment corporation bonds
The fair value is determined by discounting the total of principal and interest at a rate taking into account the remaining
period and credit risk of the said investment corporation bonds.
(3) Current portion of long-term loans payable, (5) Long-term loans payable
These fair values are determined by discounting the total of principal and interest at the rate assumed when a new loan ismade corresponding to the remaining period. The book value is used as the fair value of those loans payable with floatinginterest rates, given that the fair value is almost the same as the book value, as their interest rates are reviewed on a shortterm interval to reflect market interest rates (however, for long-term loans payable with floating interest rates to which
special treatment for interest rate swaps is applied, the fair value is the value calculated by discounting the sum of principal
and interest, which are treated in combination with the said interest rate swap, at a reasonable rate estimated for a similar
new loan).
Derivative transactions
Please refer to “Notes on Derivative Transactions.”(Note 2) Carrying Amounts of Financial Instruments Where Fair Value Is Considered to Be Extremely Difficult to Determine(Unit: Thousands of yen)
Tenant leasehold and security deposits in trust *1

Over 5 years(Note 4) Expected Amounts of Repayment of Loans Payable and Investment Corporation Bonds after the Account Closing Date
(May 31, 2019)(Note 1) Measurement Methods for Fair Values of Financial Instruments

Category

4–5 years

As of May 31, 201921,239,977(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Short-term loans payable

14,000,000

－

－

－

－

－

Investment corporation bonds

6,000,000－－

1,000,000－

7,000,000

Long-term loans payable

20,400,000

12,500,000

22,850,000

26,500,000

25,750,000

98,350,000

40,400,000

12,500,000

22,850,000

27,500,000

25,750,000

105,350,000

Total

Expected Amounts of Repayment of Loans Payable and Investment Corporation Bonds after the Account Closing Date
(November 30, 2019)(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Short-term loans payable

5,000,000

－

－

－

－

－

Investment corporation bonds

6,000,000－

1,000,000－

5,000,000

11,000,000

Long-term loans payable

7,300,000

26,250,000

21,100,000

27,750,000

24,500,000

99,450,000

18,300,000

26,250,000

22,100,000

27,750,000

29,500,000

110,450,000

As of November 30, 2019
21,543,424

Total*1 As there are no market prices for tenant leasehold and security deposits in trust from tenants for leasehold properties andthe actual period of deposit from move-in of the tenant to move-out is difficult to determine, it is extremely difficult toreasonably estimate the cash flow. Therefore, the fair value for tenant leasehold and security deposits in trust is not
subject to the disclosure of fair value.

13
62

14
63

Notes on Derivative Transactions
1.

Notes on Deferred Tax Accounting
1.

Derivative transaction to which hedge accounting is not applied

Components of Deferred Tax Assets and Deferred Tax Liabilities
As of May 31, 2019

(As of May 31, 2019)
Deferred tax assets

Not applicable(As of November 30, 2019)
Not applicable2.

2.

(As of May 31, 2019)¥5 thousand

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

Type of derivativetransactions

Major hedged
items

Amount of contract
Portion due after
one year

Fair value

Based on prices, etc.
Interest rate swaps
Long-term
14,400,000
12,000,000(11,474)
indicated by partner
Receive floatingloans payable
Pay fixed
financial institutions
Special treatment
Interest rate swaps
Long-term
for interest rate
Receive floating
18,140,000
18,140,000*–
loans payableswaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termloans payable, a hedged item. Thus, their fair values are included in the fair value of long-term loans payable. (Pleaserefer to “(Note 1) Liabilities (5), 2. Matters Regarding Fair Values of Financial Instruments, Notes on Financial
Instruments.”)

As of November 30, 201931.51%

31.51%(31.50)%(31.51)%

0.00%

0.01%

0.01%

0.01%

(Adjustments)

Calculation method
for fair value

Distributions paid included in deductibles
Other

Deferred hedge
accounting

Effective income tax rate after application of tax
effect accounting

Notes on Transactions with Related Parties
1.

Parent Company and Major Corporate Unitholders
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable
Current fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable(As of November 30, 2019)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the accountclosing date by method of hedge accounting.

2.

(Unit: Thousands of yen)Type of derivativetransactions

Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax Rate afterApplication of Deferred Tax Accounting

Effective statutory tax rate

(Unit: Thousands of yen)

Major hedged
items

Amount of contract
Portion due after
one year

Fair value

Based on prices, etc.
Interest rate swaps
Long-term
12,000,000
12,000,000
8,954
indicated by partner
Receive floatingloans payable
Pay fixed
financial institutions
Special treatment
Interest rate swaps
Long-term
for interest rate
Receive floating
18,140,000
18,140,000*–
loans payableswaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termloans payable, a hedged item. Thus, their fair values are included in the fair value of long-term loans payable. (Pleaserefer to “(Note 1) Liabilities (5), 2. Matters Regarding Fair Values of Financial Instruments, Notes on Financial
Instruments.”)

15

Affiliates, etc.
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable
Current fiscal period (From June 1, 2019 to November 30, 2019)
Not applicableCalculation method
for fair value
3.

Deferred hedge
accounting

64¥24 thousand

As of May 31, 2019

The following table shows contract amount or principal amount, etc. set forth in the contract as of the accountclosing date by method of hedge accounting.

Hedge accounting

Non-deductible amount for tax purposes ofenterprise tax payable

Net deferred tax assets

Derivative transaction to which hedge accounting is applied

Hedge accounting

As of November 30, 2019

Sister companies, etc.
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable
Current fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable4.

Directors and major individual unitholders
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable
Current fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable

1665Notes on Investment and Rental Properties

Segment Information

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 fair values of investment and rental properties are
as follows.

Segment Information for the fiscal periods ended May 31, 2019 and November 30, 2019 is as follows:1.

(Unit: Thousands of yen)Previous fiscal periodUsebusiness.

Current fiscal period(From December 1, 2018

(From June 1, 2019

to May 31, 2019)

to November 30, 2019)2.

Urban Retail
Properties

151,044,711(2)

200,524,577

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

Balance at end of period

200,524,577

198,881,821

Property, plant and equipment:

Fair value at end of period

242,147,000

241,282,000

Disclosure is not required as Property, plant and equipment located in Japan are in excess of 90% of total Property, plant and

195,900,898

195,556,130

Disclosure is not required as revenues from external customers attributed to Japan are in excess of 90% of total revenues.

equipment.

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

Balance at end of period

195,556,130

195,101,532

Fair value at end of period

228,760,000

232,420,000

Balance at beginning of period

83,038,644

102,739,890

Changes during period

19,701,246(91,462)

Balance at end of period

102,739,890

102,648,428

Fair value at end of period

119,660,000

120,550,000

Balance at beginning of period

429,984,254

498,820,598

Changes during period

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

Balance at end of period

498,820,598

496,631,782

Fair value at end of period

590,567,000

594,252,000

3.

Information about Major Customers
Previous fiscal period (From December 1, 2018 to May 31, 2019)(Unit: Thousands of yen)
Name of Customer

Carrying amount on the balance sheets

Revenues

Related Segment

Tokyu Community Corp.

5,513,357

Property rental businessTokyu Land SC Management Corporation

4,353,049

Property rental businessTokyu Land Corporation

2,114,424

Property rental businessCurrent fiscal period (From June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
Name of Customer

Carrying amount on the balance sheets

Total

Information about Geographic Areas

Revenues from Overseas Customers:

Changes during period

Balance at beginning of period

Activia
Account
Properties

Information about Products and Services

Disclosure is not required as revenues from external customers for the single segment is in excess of 90% of total revenues.

Carrying amount on the balance sheets

Tokyo Office
Properties

Enterprise-wide Disclosures(1)

Carrying amount on the balance sheets
Balance at beginning of period

Operating Segment Information
Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in the property rental

Revenues

Related Segment

Tokyu Community Corp.

5,658,717

Property rental businessTokyu Land SC Management Corporation

4,512,597

Property rental businessTokyu Land Corporation

2,202,906

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

17
66

18
67

VIII. Schedule of Financial Statements

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

Securities

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

Net assets per unit

¥332,050¥332,196

Basic earnings per unit

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

2.

Securities Other Than Shares
Not applicable

Derivative Transactions

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

7,725,832

7,817,677－－

Profit attributable to common investment
units (Thousands of yen)

7,725,832

7,817,677

Average number of investment units forthe period (Units)763,508771,224

Amount not attributable to common
unitholders (Thousands of yen)

SharesNot applicable

Significant Subsequent Events
Not applicable.

Amount of contract (Note 1)

Fair value(Note 2) (Note 3)Classification

Type of derivative transactions

Over-the-counter

Interest rate swaps
Receive floating Pay fixed

30,140,000

30,140,000

8,954

Total

30,140,000

30,140,000

8,954

Portion due
after one year

(Note 1) The amounts of contract do not represent the market risk exposure associated with the derivative instruments.
(Note 2) The interest rate swaps which qualify for hedge accounting and meet specific criteria are not measured at fair value inthe balance sheets and the interest received or paid under the interest rate swap contracts is recognized on an accrualbasis.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

Property and Equipment

Omission of Disclosure

The following tables show the summary of movement in property and equipment.

As the need for disclosing notes on securities, retirement benefits, equity in earnings of affiliates, and asset retirement obligations(Unit: Thousands of yen)in this financial report is not material or applicable, the disclosure of these items is omitted.

Beginningbalance

Tangible
AssetsDecrease

EndingBalanceAccumulated
depreciation

Depreciation
for the period

Net property,
plant andequipment

Buildings in trust

84,710,063

575,836

299,363

84,986,537

13,256,431

1,234,554

71,730,105

Structures in trust

698,826

8,637

3,767

703,696

201,554

17,377502,142

Machinery andequipment in
trust

1,406,968

28,633

1,471

1,434,131

388,834

29,6501,045,296

Tools, furnitureand fixtures intrust

222,204

27,4552,462

247,197

128,828

17,221

118,368

415,408,426－

1,233,570

414,174,855－－

414,174,855

5,928

－

－

5,928

－

－

5,928

Subtotal

502,452,417

640,563

1,540,634

501,552,345

13,975,649

1,298,804

487,576,696

Leasehold rights
in trust

9,092,591－

37,505

9,055,086－－

9,055,086

7,153

－

－

7,153

5,712

254

1,441

9,099,745－

37,505

9,062,239

5,712

254

9,056,527

511,552,162

640,563

1,578,140

510,614,585

13,981,362

1,299,058

496,633,223

Land in trust(Note1)

Construction inprogress in trust

Intangible
AssetsIncrease

Other (Note2)
Subtotal
Total(Note1) The main reason for the decrease is mainly due to the transfer of A-FLAG AKASAKA (50% co-ownership interest).
(Note2) “Other” is software (non-real estate asset).

19
68

20
69

Other Specified Assets

Loans Payable
The following tables show the details of loans payable.

Not applicable(Unit: Thousands of yen)
Category

Investment Corporation Bonds

Lender(Unit: Thousands of yen)Issue
2nd unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)
3rd unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

Issue Date

April 21,2015

April 21,2015

4th unsecured bonds(with pari passu conditions among February 3,
2016
specified investment corporation
bonds)

Beginningbalance

Decrease

2,000,000－

2,000,000

2,000,000

5th unsecured bonds(with pari passu conditions among February 2,
2017
specified investment corporation
bonds)

4,000,000

6th unsecured bonds(with pari passu conditions among February 2,
2017
specified investment corporation
bonds)

1,000,000

7th unsecured bonds(with pari passu conditions among February 2,
2017
specified investment corporation
bonds)
8th unsecured bonds(with pari passu conditions among February 13,
2018
specified investment corporation
bonds)
9th unsecured bonds(with pari passu conditions among February 13,
2018
specified investment corporation
bonds)
10th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)(Green Bonds)

Total

1,000,000

1,000,000

1,000,000

July 9,
2019

–

－

－

Interest
Rate

RedemptionDate

2,000,000

0.297%

April 21,2020

2,000,000

2,000,000

4,000,000

0.726%

0.770%

April 21,2025

February 3,
2026

January 31,
0.001%
2020

Use of funds

Remarks

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed－－

14,000,000

－

－

－

－

－

－

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

1,000,000

1,000,000

1,000,000

1,000,000

5,000,000

4,000,000－ 23,000,000

0.480%

0.810%

0.160%

February 2,
2027

February 2,
2032

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

August 12,
2022

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

1.050%

February 12,
2038

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

0.220%

July 9,2024

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

0.530%–

November 16, Partial repayment of the
Unsecured,2029
long-term borrowings non-guaranteed–––(Unit: Thousands of yen)Unsecured bonds(with pari passu conditions among
specified investment corporation bonds)

6,000,000

1–2 years

2–3 years－

1,000,000

3–4 years

4–5 years－

5,000,000

21

Longtermloanspayable(Note 2)

Decrease

1,670,000–

1,670,000–

Mizuho Bank, Ltd.

1,670,000–

1,670,000–

MUFG Bank, Ltd.

1,660,000–

1,660,000–

Sumitomo Mitsui Trust
Bank, Limited

1,600,000–

1,600,000–

Mizuho Bank, Ltd.

1,600,000–

1,600,000–

MUFG Bank, Ltd.

800,000–

800,000–

Sumitomo Mitsui Trust
Bank, Limited

2,000,000––

2,000,000

Mizuho Bank, Ltd.

2,000,000––

2,000,000

MUFG Bank, Ltd.

1,000,000––

1,000,000

Sumitomo Mitsui Trust
Bank, Limited–

1,670,000

1,670,000–

Mizuho Bank, Ltd.

–1,670,000

1,670,000–

MUFG Bank, Ltd.

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

Annual redemptions of investment corporation bonds scheduled for next five years after each balance sheet date were as follows:
Within 1 year

70

Shortterm
loans
payableIncrease

Endingbalance

Sumitomo Mitsui Trust
Bank, Limited

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks0.19184%

June 1,
2019(Note 4)

Unsecured,
non-guaranteed

0.19154%

November 24,
2019(Note 7)

Unsecured,
non-guaranteed

0.20062%January 10,2020(Note 3)

Unsecured,
non-guaranteed

0.20227%

June 3,2020(Note 4)

Unsecured,
non-guaranteed

June 13,2019(Note 3)

Unsecured,
non-guaranteed

June 28,2019(Note 4)

Unsecured,
non-guaranteed–

1,660,000

1,660,000–

14,000,000

5,000,000

14,000,000

5,000,000

Development Bank ofJapan Inc.

6,000,000–

6,000,000–

1.19051%

Mizuho Trust & Banking
Co.,LTD.

1,200,000–

1,200,000–

0.02875%(Note 5)The Norinchukin Bank

1,200,000–

1,200,000–

0.02875%(Note 5)

Sumitomo Mitsui Trust
Bank, Limited

340,000–

340,000–

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

340,000–

340,000–

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

340,000–

340,000–

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

340,000–

340,000–

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

170,000–

170,000–

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

170,000–

170,000–

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

1,500,000–

1,500,000–

0.51000%

1,500,000–

1,500,000–

August 29,
2019(Note 4)

Shinkin Central Bank

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

160,000––

160,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

160,000––

160,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

160,000––

160,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

160,000––

160,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

80,000––80,0000.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

80,000––80,0000.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Total

11th unsecured bonds(with pari passu conditions among November 18,
specified investment corporation2019
bonds)(Green Bonds)(Note)－

Endingbalance

Beginningbalance22
71

(Unit: Thousands of yen)
Category
LenderIncrease

Endingbalance

Decrease

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

Lender

600,000––

600,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

600,000––

600,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed(Note 4)600,000––

600,000

January 9,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

420,000––

420,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

420,000––

420,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

2,000,000––

2,000,000

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.72546%

Sumitomo Mitsui Banking
Corporation

300,000––

300,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

300,000––

300,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Resona Bank, Limited.

1,500,000––

1,500,000

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

The Gunma Bank, Ltd.

500,000––

500,000

0.52500%

March 31,2020

(Note 4)

Unsecured,
non-guaranteed

The Norinchukin Bank

500,000––

500,000

Sumitomo Mitsui Trust
Bank, Limited

1,060,000––

1,060,000–

1,060,000

1.07980%(Note 3)

Unsecured,
non-guaranteed

Shinkin Central Bank

500,000––

500,000(Note 3)

Unsecured,
non-guaranteed

Tokio Marine & Nichido
Fire Insurance Co., Ltd.

400,000––

400,000(Note 3)

Unsecured,
non-guaranteed

The 77 Bank, Ltd.

400,000––

400,000

Mizuho Bank, Ltd.

1,060,000––

1,060,000

1.07980%

December 19,
2020

MUFG Bank, Ltd.

1,060,000––

1,060,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

530,000––

530,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

530,000––

530,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited––

1,500,000

0.94688%

1,340,000

1.07856%(Note 3)June 15,2022(Note 4)–

Unsecured,
non-guaranteed

1,500,000–

January 10,2021

Mizuho Bank, Ltd.

1,340,000

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

100,000––

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000––

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560,000––

1,560,000

0.44835%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

670,000––

670,000

1.07856%January 10,
2021

Development Bank ofJapan Inc.

670,000––

670,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Nippon Life Insurance
Company

500,000––

500,000

0.25000%

March 31,2021

(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

3,920,000––

3,920,000

Mizuho Bank, Ltd.

3,920,000––

3,920,000

MUFG Bank, Ltd.

1,970,000––

1,970,000

Sumitomo Mitsui Banking
Corporation

1,970,000––

1,970,000

0.21562%

July 12,2021

Unsecured,
non-guaranteed

1,970,000––

1,970,000

Mizuho Bank, Ltd.

1,560,000––

1,560,000

Sumitomo Mitsui Trust
Bank, Limited

320,000––

320,000

MUFG Bank, Ltd.

1,560,000––

1,560,000

MUFG Bank, Ltd.

640,000––

640,000

160,000––

160,000

Mizuho Bank, Ltd.

320,000––

320,000

Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Banking
Corporation

160,000––

160,000

Development Bank ofJapan Inc.

160,000––

160,000

Development Bank ofJapan Inc.

160,000––

160,000

0.41931%

December 28,
2021(Note 3)(Note 3)

Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)Development Bank ofJapan Inc.

0.36607%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

23
72

Remarks

0.73690%

600,000–

Use offunds

840,000–

1,060,000

Maturity
date

–

–

MUFG Bank, Ltd. (Note 6)

Decrease

Averageinterest rate
(Note 1)–600,000

December 19,
2020

Increase

Endingbalance

840,000

MUFG Bank, Ltd.

December 19,
2020

Beginningbalance

Sumitomo Mitsui Trust
Bank, Limited

January 10,
2020

1.07980%(Unit: Thousands of yen)
Category

Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

Longtermloanspayable(Note 2)Beginningbalance24
73

(Unit: Thousands of yen)

(Unit: Thousands of yen)
Category
LenderLongtermloanspayable(Note 2)Beginningbalance

Increase

Endingbalance

Decrease

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Category

Remarks

LenderIncrease

Decrease

Endingbalance

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

Sumitomo Mitsui Trust
Bank, Limited

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

700,000––

700,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

700,000––

700,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

2,000,000––

2,000,000

Resona Bank, Limited.

1,500,000––

1,500,000

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.41380%

March 29,2024

(Note 4)

Unsecured,
non-guaranteed

Shinkin Central Bank

500,000––

500,000

The Norinchukin Bank

500,000––

500,000

Sumitomo Mitsui Trust
Bank, Limited

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

375,000

MUFG Bank, Ltd. (Note 6)

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed–

375,000

Mizuho Bank, Ltd.

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed––

800,000

MUFG Bank, Ltd.

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

1,600,000––

1,600,000––

600,000

0.85377%––

800,000

June 17,2024(Note 3)800,000

Sumitomo Mitsui Banking
Corporation

600,000

Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

400,000––

400,000

Development Bank ofJapan Inc.

600,000––

600,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

400,000––

400,000

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

MUFG Bank, Ltd.

3,000,000––

3,000,000

0.33150%(Note 5)June 17,2024(Note 4)

Unsecured,
non-guaranteed

0.36900%(Note 5)

December 13,
2024(Note 4)

Unsecured,
non-guaranteed

0.54094%

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

0.70169%

September 16,
2025(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

620,000––

620,000

Mizuho Bank, Ltd.

620,000––

620,000

MUFG Bank, Ltd.

620,000––

620,000

Sumitomo Mitsui Banking
Corporation

320,000––

320,000

Development Bank ofJapan Inc.

320,000––

320,000

Sumitomo Mitsui Trust
Bank, Limited

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.
(Note 6)

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

750,000––

750,000

Mizuho Bank, Ltd.

750,000––

750,000

MUFG Bank, Ltd.

750,000––

750,000

Sumitomo Mitsui Banking
Corporation

375,000––

Development Bank ofJapan Inc.

375,000–

Sumitomo Mitsui Trust
Bank, Limited

800,000

MUFG Bank, Ltd.

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

0.38236%0.44804%

0.38472%

January 10,
2023

March 30,
2023

April 6,2023

1.06316%

June 15,2023(Note 4)(Note 4)(Note 3)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)

(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,500,000––

1,500,000(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

MUFG Bank, Ltd.

3,000,000––

3,000,000

Mizuho Bank, Ltd.

1,500,000––

1,500,000

Sumitomo Mitsui Trust
Bank, Limited

1,200,000––

1,200,000

MUFG Bank, Ltd.

2,400,000––

2,400,000

MUFG Bank, Ltd. (Note 6)

1,500,000––

1,500,000

1.06316%

June 15,2023

Mizuho Bank, Ltd.

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

625,000––

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

625,000––

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,200,000––

1,200,000

Sumitomo Mitsui Trust
Bank, Limited

600,000––

600,000

1,250,000––

1,250,000

Sumitomo Mitsui Banking
Corporation

MUFG Bank, Ltd.

2,500,000––

2,500,000

June 15,2023(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

600,000––

600,000

Mizuho Bank, Ltd.

1,250,000––

1,250,000

Sumitomo Mitsui Trust
Bank, Limited

1,800,000––

1,800,000

Taiyo Life Insurance
Company

500,000––

500,000

MUFG Bank, Ltd.

3,600,000––

3,600,000

Mitsui Sumitomo Insurance
Company, Limited

500,000

Mizuho Bank, Ltd.

0.46400%

0.35998%––

500,000

September 29,
2023(Note 4)

Unsecured,
non-guaranteed

2574

Beginningbalance1,800,000––

1,800,000

Sumitomo Mitsui Banking
Corporation

900,000––

900,000

Development Bank ofJapan Inc.

900,000––

900,000

26
75

(Unit: Thousands of yen)

(Unit: Thousands of yen)
Category
LenderLongtermloanspayable(Note 2)Beginningbalance

Increase

Endingbalance

Decrease

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Category

Remarks

Lender

Beginningbalance

Increase

Endingbalance

Decrease

Mizuho Trust & Banking
Co.,LTD.

440,000––

440,000

Sumitomo Mitsui Trust
Bank, Limited

2,200,000––

2,200,000

Resona Bank, Limited.

440,000––

440,000

Mizuho Bank, Ltd.

2,200,000––

2,200,000

The Bank of Fukuoka, Ltd.

440,000––

440,000

MUFG Bank, Ltd.

2,200,000––

2,200,000

Shinkin Central Bank

440,000––

440,000

200,000––

200,000

The Norinchukin Bank

440,000––

440,000

Sumitomo Mitsui Banking
Corporation

THE NISHI-NIPPONCITY BANK, LTD.

500,000––

500,000

Development Bank ofJapan Inc.

200,000––

200,000

The Bank of Kyoto,Ltd.

300,000––

300,000

Sumitomo Mitsui Trust
Bank, Limited

320,000––

320,000

Sumitomo Mitsui Trust
Bank, Limited

500,000––

500,000

MUFG Bank, Ltd.

640,000––

640,000

Mizuho Bank, Ltd.

500,000––

500,000

Mizuho Bank, Ltd.

320,000––

320,000

MUFG Bank, Ltd.

500,000––

500,000

Sumitomo Mitsui Banking
Corporation

160,000––

160,000

Sumitomo Mitsui Banking
Corporation

250,000––

250,000

Development Bank ofJapan Inc.

160,000––

160,000

Development Bank ofJapan Inc.

250,000––

250,000

Sumitomo Mitsui Trust
Bank, Limited

1,000,000––

1,000,000

Mizuho Bank, Ltd.

1,000,000––

1,000,000

MUFG Bank, Ltd.

1,000,000––

1,000,000

Sumitomo Mitsui Banking
Corporation

500,000––

500,000

Development Bank ofJapan Inc.

500,000––

500,000

Sumitomo Mitsui Trust
Bank, Limited

3,210,000––

3,210,000

Mizuho Bank, Ltd.

3,210,000––

3,210,000

MUFG Bank, Ltd.

1,610,000––

1,610,000

Sumitomo Mitsui Banking
Corporation

1,610,000––

1,610,000

Development Bank ofJapan Inc.

1,610,000––

1,610,000

Sumitomo Mitsui Trust
Bank, Limited

1,165,000––

1,165,000

Mizuho Bank, Ltd.

1,165,000––

1,165,000

MUFG Bank, Ltd.

590,000––

590,000

Sumitomo Mitsui Banking
Corporation

590,000––

590,000

Development Bank ofJapan Inc.

590,000––

590,000

Mizuho Trust & Banking
Co.,LTD.

–

Shinkin Central Bank

1,500,000–

1,500,000–

1,500,000–

1,500,000

Sumitomo Mitsui Trust
Bank, Limited

2,100,000––

2,100,000

MUFG Bank, Ltd.

4,200,000––

4,200,000

Mizuho Bank, Ltd.

2,100,000––

2,100,000

Sumitomo Mitsui Banking
Corporation

1,050,000––

1,050,000

Development Bank ofJapan Inc.

1,050,000––

1,050,000

Sumitomo Mitsui Banking
Corporation

6,000,000––

6,000,000

Mizuho Trust & Banking
Co.,LTD.

1,100,000––

1,100,000

Resona Bank, Limited.

1,100,000––

1,100,000

0.46453%

0.58630%

0.09313%0.61942%0.69796%0.35765%

September
16,
2025

September
16,
2025

February 27,
2026

March 19,2026

June 12,2026

September 7,
2026(Note 4)(Note 4)(Note 4)(Note 3)(Note 4)(Note 4)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)The Bank of Fukuoka, Ltd.

1,100,000––

1,100,000

The Norinchukin Bank

1,100,000––

1,100,000

600,000––

600,000

Sumitomo Mitsui Trust
Bank, Limited

1,750,000––

1,750,000

MUFG Bank, Ltd.

3,500,000––

3,500,000

Mizuho Bank, Ltd.

1,750,000––

1,750,000

Sumitomo Mitsui Trust
Bank, Limited–

420,000–

420,000

Mizuho Bank, Ltd.

–

420,000–

420,000

MUFG Bank, Ltd.

–

420,000–

420,000

Sumitomo Mitsui Banking
Corporation–

220,000–

220,000

Development Bank ofJapan Inc.

–

220,000–

220,000

Development Bank ofJapan Inc.

–

6,000,000–

6,000,000

206,350,000

13,100,000

13,100,000

206,350,000

The 77 Bank, Ltd.

Mizuho Trust & Banking
Co.,LTD.

–

1,200,000–

1,200,000

The Norinchukin Bank–

1,200,000–

1,200,000

Sumitomo Mitsui Trust
Bank, Limited

780,000––

780,000

MUFG Bank, Ltd.

1,560,000––

1,560,000

Mizuho Bank, Ltd.

780,000––

780,000

Sumitomo Mitsui Banking
Corporation

390,000––

390,000

Development Bank ofJapan Inc.

390,000––

390,000

0.71015%0.23004%

0.70698%

December
14, 2026

December28, 2026

January 9,2027(Note 4)(Note 4)(Note 4)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Total

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

0.54375%(Note 5)

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.55800%(Note 5)January 11,2028(Note 3)

Unsecured,
non-guaranteed

0.65264%January 11,2028(Note 3)

Unsecured,
non-guaranteed

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

0.49281%

July 10, 2028

(Note 4)

Unsecured,
non-guaranteed

0.56511%

December
13,2028(Note 4)

Unsecured,
non-guaranteed(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of this hedging
instrument.

27
76

28
77

Independent Auditor’s Report(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.
(Note 7) Use of the borrowings is appropriated to repayment of investment corporation bonds.
(Note 8) Annual repayments of long-term loans payable scheduled for next five years after each balance sheet date were as follows:(Unit: Thousands of yen)
Within 1 year
Long-term loans payable

7,300,000

1–2 years
26,250,000

2–3 years
21,100,000

3–4 years
27,750,000

4–5 years
24,500,000

29
78

79

Overview of the Asset Manager

Information on Unitholders

Overview of the Asset Manager

Trends in Unit Prices

Corporate
name

TLC REIT Management Inc.

Established

October 6, 2009

CapitalRegistration &License¥200 million

Financial Instruments Business Firm, granted by the Director of the Kanto
Regional Finance Bureau (Financial Instruments) Registration No. 2370
Discretionary Transaction Agent granted by the Minister of Land,
Infrastructure, Transport and Tourism, Registration No. 65
Building Lots and Building Transactions Business License, granted by theGovernor of Tokyo (3) No. 91139

TSE REIT index (left axis)

API (left axis)(¥)

Market Cap. (right axis)(¥ 100 millions)November 30, 2019
API: ¥565,500
TSE REIT index: 2,220pt
Market Cap.: ¥435.7bn

600,000
550,000

5,000
4,500
4,000

500,000

3,500

450,000
Shareholder

Tokyu Land Corporation 100%

President andCEO

Hiroyuki Tohmata

DNA of Tokyu Land Corporation

3,000

400,000

2,500

350,000

2,000
1,500

300,000

The Tokyu Fudosan Holdings Group generally carries on the frontier spirit and development capabilities of Tokyu Land
Corporation in undertaking development mainly in the Tokyo metropolitan area and major cities nationwide. The Group has
built up a strong track record as a pioneer in creating businesses ahead of the times in anticipation of customer demands, forexample by opening Tokyu Plaza as the forefront of a building complex near the station and Tokyu Hands as a specialty store
for daily-life materials.
API’s staff, with abundant experience in many fields of the Tokyu Fudosan Holdings Group, engage in J-REIT operations tomeet the needs of unitholders.

June 13, 2012
API: ¥221,750
TSE REIT index: 906pt
Market Cap.: ¥90.7bn

250,000
200,000

As an asset manager, API’s staff is required to work proactively (take initiative, foresee and make improvements). API aims
at stable asset management over the medium to long term, through not only management and good care of individual
properties, but also by closely observing and responding early to the changing market environment (real estate transaction,leasing and finance markets).

0Jun. 13, End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of2012 Nov. 2012 May 2013 Nov. 2013 May 2014 Nov. 2014 May 2015 Nov. 2015 May 2016 Nov. 2016 May 2017 Nov. 2017 May 2018 Nov. 2018 May 2019 Nov. 2019
(Note 1) Performance of TSE REIT index is indexed to API unit price as of June 13, 2012 being 100.
(Note 2) As API implemented a 2-for-1 investment unit split effected as of October 1, 2015, the closing prices on and after the listing date are indicated as half as adjusted for the unit split.

Other domestic
companies

Foreignunitholders

148 (2.1%)

Number ofunitholders
by holder type

6,914

Shareholders’ Meeting
Corporate Auditor
Board of Directors

Securities
companies

251 (3.6%)

Organizational Chart
Financial
institutions

44,605 (5.8%)
Foreignunitholders

Securities
companies

21 (0.3%)

26,976 (3.5%)
Number ofinvestment units
by holder type160,214(20.8%)

Individuals,other

203 (2.9%)

Individuals,
other771,224

Financial
institutions

Other domestic
companies

6,291 (91.0%)

458,501 (59.5%)

80,928 (10.5%)(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

Compliance Committee

Investment Committee
President & CEO

Acquisition Priority
Review Meeting
Internal Audit Dept.

Annual Schedule
Closing monthfor the fiscal
period endingin MayAnnouncementof financial
results

Commencementof payment ofdividends

Release of theSemi-Annual
ReportClosing monthfor the fiscal
period ending inNovemberAnnouncementof financial
results

Commencement of
payment of dividends

Release of theSemi-Annual
ReportMay

July

AugustSeptember

NovemberJanuary

February

March

Compliance Dept.

Activia
Management Div.

Finance &Accounting
Dept.

500

Distribution of Unitholders

Proactive Behavior

Corporate Planning& Administration
Dept.

1,000

Asset
Investment
Dept.

Environmental
Engineering
Dept.

Strategy
Dept.

Asset
Management
Dept.

Comforia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

Broadia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

API Website
We provide all appropriate information on our website in a timely
and reliable manner.

URL

https://www.activia-reit.co.jp/en/
Accessible from smartphone as well.

80

81

Information on Unitholders

Unitholder Memo

Withholding tax rate on dividends of listed investment corporations

Account closing dates

May 31 and November 30

Unitholders’ meeting

To be held at least once every two years

Record date forunitholders’ meeting

A record date based on Article 15, Section 1 of the Articles of Incorporation

Dates for determining cash
distribution payments

May 31 and November 30

Administrator ofunitholders’ registryCommencement
date of thedividend payment

Dividend tax rate oflisted investment
corporations

From January 1, 2014 through December 31, 2037

From January 1, 2038

20.315%20%
Income tax
15%

Income tax 15% + Reconstruction special income tax 0.315% (Note)
Breakdown

Breakdown

Residence tax 5%

Sumitomo Mitsui Trust Bank, Limited
4-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

Residence tax
5%(Note) 15% × reconstruction special income tax rate 2.1% = 0.315%.

Place of business of administratorof unitholders’ registry

Stock exchange

Stock Transfer Agency Business Planning Department of
Sumitomo Mitsui Trust Bank, Limited
Mailing address: 8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan
Tel: 0120-782-031 (toll-free, available within Japan only)
URL: https://www.smtb.jp/personal/agency/ (Japanese page)
J-REIT section of the Tokyo Stock Exchange (securities code: 3279)

Newspaper to provide public notice

During the period from January 1, 2013 through December 31, 2037 (25 years), the Act on Special Measures for
Securing Financial Resources Necessary to Implement Measures for Reconstruction following the Great East
Japan Earthquake (2011 Law No. 117) is in force. As a result, there is a reconstruction special income taxof 2.1%.

Nihon Keizai Shimbun

This reconstruction special income tax will be imposed together when income tax is withheld at the source on■■ Change of registered address, name or seal, etc., or designation or change ofaccount for receipt of dividends:

dividends paid by listed investment corporations.
Additional issues to be aware of are as follows.

Please contact the securities company.

■■ Matters to be noted regarding the withholding tax on dividends of listed■■ Dividends
You can receive dividends by presenting a dividend receipt to the nearest head office/branch/office ofinvestment corporations

Japan Post Bank (bank agency). If the period for receipt has already expired, please specify how you wish

• In the case of an individual unitholder who holds 3% or more of the outstanding investment, the income tax

to receive dividends on the back of the dividend receipt, and then mail it to the Stock Transfer Agency

rate is 20.42% (income tax 20% + reconstruction special income tax 0.42% (Note)).

Department, Sumitomo Mitsui Trust Bank, or receive dividends directly at the service counter of the head

However, with regard to residence tax, a separate procedure is required.

office/branch of the bank.

• If a corporate unitholder receives dividends, no residence tax will be imposed.

In addition, with respect to future dividends, if you wish to receive dividends through transfer to a bank

(Note) 20% × reconstruction special income tax rate 2.1% = 0.42%.

account, etc., please take the necessary procedures at your securities company.
Telephone inquiries

Stock Transfer Agency Business Planning Department of Sumitomo Mitsui Trust Bank, LimitedTel:0120-782-031 (toll-free, available within Japan only)■■ Matters to be noted regarding the Reconstruction Special Income Tax• In cases where income tax is non-taxable or exempt, or where the income tax rate is less than the rate
provided by domestic laws due to the application of a tax treaty, the reconstruction special income tax will■■ Dividend statement
Pursuant to the provisions of the Act on Special Measures concerning Taxation, with regard to dividends
paid by API, API will send to each unitholder a payment notification describing the amount of the dividend,

not be imposed.
• With regard to taxes in the case where you have selected the method of allocation in proportion to thenumber of shares held, please ask your securities company.

withholding tax and so forth. However, the dividend statement sent along with the dividend payment alsofunctions as the payment notification.

For more details, please ask the tax office with jurisdiction over the place of tax payment.

Please note that each unitholder may use the payment notification as an attachment for a tax return. (Ifyou select the method of allocation in proportion to the number of shares held, please ask your securities
company for further information.)

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