For a Superior Level of Living Comfort
COMFORIA

Comforia Residential REIT, Inc

Semi-Annual Reportfor the 12th Fiscal Period
From February 1, 2016 to July 31, 2016

2-6-21 Minami-Aoyama, Minato-ku, Tokyo
http://www.comforia-reit.co.jp/english/

I

Overview of the Investment Corporation

Greetings

For a Superior Level of Living Comfort
COMFORIA is the name we have given to the urban rental residences producedby the Tokyu Land Corporation. The word COMFORIA is a compound that
we coined from “comfort,” and “ia,” a Latin suffix meaning “place.”
The idea that residences are not just containers has given birth toour “COMFORIA” series of rental residences made specifically for people
who wish to live freely and affluently in urban communities.
We invest in and manage the urban exclusive rental residence “COMFORIA” series,
which Tokyu Land Corporation has produced, to maximize our unitholders’ value.

We are pleased to inform you that Comforia Residential REIT, Inc (the “Investment
Corporation”) safely closed all accounts for the 12th Fiscal Period (from February 1,
2016 to July 31, 2016). We would like to thank all of our unitholders and stakeholders
for their continued support and cooperation.
We hereby report on the asset management overview and results for the 12th
Fiscal Period. During the 12th Fiscal Period, the Investment Corporation newly
acquired two properties located within the Tokyo 23 wards (COMFORIA SHINJUKUEASTSIDE TOWER and one other property) in February 2016 through a public
offering for the third consecutive year since listing, in addition to borrowings, as wellas two additional properties also located within the Tokyo 23 wards (COMFORIA
Hiroyuki Tohmata
OJIMA and one other property) in June 2016 through borrowings. Consequently, our
Executive Director
asset size as of the end of the period totaled 98 properties, with ¥164.4 billion as thetotal acquisition price. The average occupancy rate remained high at 95.7% for the
12th Fiscal Period. The Investment Corporation achieved ¥6,531 million in operating revenue, ¥2,746 million in operating
income, and ¥2,304 million in profit, all of which exceeded our forecasts, resulting in ¥4,487 in distribution per unit.
Furthermore, after the end of the 12th Fiscal Period, we acquired additional properties, namely COMFORIA SAPPOROSHOKUBUTSUEN and COMFORIA OGIMACHI in August 2016 and September 2016, respectively, through borrowings. As
a result, our portfolio as of September 30, 2016 stood at 100 properties, with a total acquisition price of ¥167.1 billion. We
intend to continue to make selective investments in the Tokyo 23 wards.
We invest mainly in rental residences in the Tokyo metropolitan area, based on our basic policies of “investments inresidential properties with stable earnings and a high growth potential” and “utilization of the Tokyu Fudosan HoldingsGroup,” as well as the concept and expertise of the urban rental residence “Comforia” series, which Tokyu Land
Corporation has produced for singles and small families. We will continue to aim to achieve stable earnings and ensure thesteady growth of our managed assets based on medium- and long-term perspectives to maximize our unitholders’ value.
Your continued support and cooperation are highly appreciated.

Financial Highlights
Operating revenue
Operating income
ProfitDistribution per unit
Total loan to value (LTV)¥6,531 million Number of properties¥2,746 million Acquisition price¥2,304 million Appraisal value
Occupancy rate at the 12th
¥4,487
Fiscal Period-end
Average occupancy rate
50.6 %

98 properties¥164.4 billion¥189.8 billion
96.3 %
95.7 %

Contents
I. Overview of the Investment Corporation
Greetings……………………………………………………………… 1

II. Asset Management Report……………………………… 21
III. Financial Section

Featured Property

Balance Sheets……………………………………………… 50

COMFORIA SHINJUKU EASTSIDE TOWER……………………… 2

Statements of Income……………………………………… 52

Topic 1 Steady External Growth…………………………………… 4

Statements of Changes in Unitholders’ Equity………… 53

Topic 2 Acquisition of Assets and Future Acquisition Policy……… 6

Statements of Cash Distributions………………………… 54

Internal Growth Strategy …………………………………………… 8

Statements of Cash Flows…………………………………
Notes…………………………………………………………
Supplementary Schedules…………………………………
Independent Auditor’s Report……………………………

Financial Strategy …………………………………………………… 9
Portfolio Map ……………………………………………………… 10
Portfolio List ……………………………………………………… 12

55
56
67
71

Basic Policies……………………………………………………… 17

Overview of the Investment Corporation and AssetManagement Company……………………………………… 18
1

A landmark located near the
Shinjuku-sanchome area in a city
district with a variety of city functions

Featured
Property

COMFORIA SHINJUKU EASTSIDE TOWER
The Investment Corporation acquired COMFORIA SHINJUKU EASTSIDE TOWER on February 2, 2016.
Conveniently located near the Shinjuku-sanchome area, this property features high-quality public spaces anda well-rounded array of facilities as well as rich green spaces, making it an ideal property able to serve as alandmark for the area. In addition, the property was the first to receive the highest rank in the Residence Editionof the DBJ Green Building Certification. It is a flagship property for the Investment Corporation as broad-based
rental demand for this property is expected among singles, double-income couples with no children andfamilies who attach importance to factors such as a city-center location and the convenience and comfort of theresidential environment.

High-Quality Common Facilities to
Ensure Rich and Comfortable Living

1F Forest Lounge■Summary of Property
Address

6-27-29 Shinjuku, Shinjuku-ku, Tokyo, and other locations

A two-minute walk from Higashishinjuku Station
Nearest station / Tokyo Metro Fukutoshin Line and one other line
Distance (on foot) A four-minute walk from Shinjuku-sanchome Station
Tokyo Metro Marunouchi Line and two other lines
Rentable units

765 units

Completion date January 2012
(Tower Building)
Structure /(Annex Building)Number of floors(Gate Building)

RC·S / B1-32F
RC / 4F
RC / 1F

The Forest Lounge on the first floor, which is based on theconcept of an overseas luxury hotel, commands a view of thewater feature outside the window, creating a comfortable andrelaxing atmosphere. Residents can enjoy light meals such as
pizza and pasta at the lounge during the day and use it as abar lounge at night.
Club Eastside on the 32nd floor is equipped with a gym,
swimming pool, spa and club lounge. Residents can spend
quality time there, enjoying the view of Shinjuku as they
unwind both body and mind.

Acquisition date February 2, 2016Line

Shinjuku-gyoemmae
Shinjuku-dTakashimaya
ori
Shinjuku Store
Maru
nouc
hi Line
Shinjuku Gyoen

oshin

Keio Shinsen
Shinjuku

Tokyo Medical and
Dental University

Yoyogine

Meiji-dori

Stunning View from a Skyscraper
Soaring High above Shinjuku City
Shinjuku Eastside
SquareFrom the terraces of the highest stories of this property,
which has become a landmark of the Shinjuku-sanchomearea, you can enjoy panoramic views of the Shinjuku East Exit
area and Shinjuku Gyoen below, as well as the picturesquegreen enclave of Jingu Gaien and the Shinjuku metropolitan
area further afield. As well as alcoholic beverages, the clublounge also offers a splendid night view of Tokyo.
The swimming pool located on the same floor serves as acommon facility, where the residents can refresh themselves
while enjoying the view.

Annex Building
Poppins
Police box
Tower
Building

Maruetsu

Nisshinshokuhinmae
Gate Building
Nisshin Foods Cucina del Campo

Shinjuku
Community
CenterFukut

Keio Department
Store, Shinjuku

COMFORIA SHINJUKUEASTSIDE TOWER

Isetan Shinjuku Yasukuni-doriMain Store
Toei Subway
Shinjuku Line
Shinjuku-sanchomeu
Shinjuk

OdakyuDepartment
Store

Tokyo
Women’s
Medical University

shin Li

Shinjuku City
OfficeOedo Line

Fukutoi

Higashishinjuku

OhkuboHospital

Seibu-Shinjuku
Shinjukunishiguchi

uats
kam
Wa wadaka

Meiji-dor

Seibu Shinjuku Line

Line
Chuo
Yamanote Line

Okubo Shinokubo

Gym, swimming pool, spa and club lounge on the 32nd floor: Club Eastside

1F Forest Gallery
Terrace on the 32nd floor: Club Eastside

A landmark property in the Shinjuku area that offers unparalleledhospitality and a high-quality atmosphere akin to that of a luxury hotel.
Takahiro Uesugi, Manager
Investment Operation Department
TLC Comforia Investment Management INC.
COMFORIA SHINJUKU EASTSIDE TOWER is the largest property held by the Investment Corporation. While located near the Shinjuku East
Exit area, which is one of Japan’s largest shopping districts, the property is surrounded by rich green spaces, creating a completely different
atmosphere in this area.
The property is equipped with a lounge that offers a hotel-style morning buffet, authentic Italian food and alcohol as well as room service.
Furthermore, the property offers a valet parking service that residents can use 24 hours a day to have their cars taken out of the parking lot
with a simple phone call. The valet team also offers a wide range of services including car washing, etc. At the swimming pool located on the
top floor, regular events produced by Tokyu Sports Oasis, Inc. are planned. We make continuous efforts to administer daily operations tocater to the needs of residents. In recognition of its grade, comfort and security, etc., the property received the highest rank in the Residence
Edition of the DBJ Green Building Certification program in July 2016 for the first time since the program started.

2

First to Receive the Highest Rank in the Residence Edition of the DBJ Green
Building Certification
In July 2016, the property was certified as a top-class building exhibiting superior environmental

and social awareness, making it the first to receive the highest rank conferred in the Residence
Edition of the DBJ Green Building Certification for buildings in Japan. The commendation reflects theproperty’s excellence in the following aspects: well-rounded array of facilities and design for each unit;
common spaces that contribute to the comfort and convenience of residents; extremely advanced
security and disaster-prevention systems; a mutual assistance agreement with municipalities in theevent of a disaster; and active involvement in and interaction with local communities.
COMFORIA SHINJUKU EASTSIDE TOWER official website (only in Japanese)

http://www.cf-shinjuku-est.jp/
3Topic 1

During the 12th Fiscal Period, the Investment Corporation newly acquired COMFORIA SHINJUKU EASTSIDE TOWER and one otherproperty in February 2016 through a public offering and borrowings, as well as two additional properties located in the Tokyo 23 wards
in June 2016.
We will continue to promote external growth by primarily utilizing the collaboration with our sponsor group, as well as original
sourcing by TLC Comforia Investment Management INC. (hereinafter referred to as the “Asset Management Company”), to invest
selectively in high quality properties mainly in the Tokyo 23 wards. We aim to achieve an asset size of ¥200 billion in the medium to longterm, while seeking stable distribution levels.

Steady External Growth

Steady Growth and Selective Investment Mainly in theTokyo 23 Wards
Acquired COMFORIASHINJUKUEASTSIDE TOWER
and three other properties

Asset size

Acquired COMFORIAKUDAN and 24
other properties(Billions of yen)

Acquired COMFORIA
KOMABA and one
other property

Acquired COMFORIA
KANDAJINBOCHO
and 11 other properties

Over the 3.5
years since listing,achieved
2.3-fold growth

200

150

146.5

50

Distribution
per unit (DPU) (Note)
Occupancy rate
at end of periodTokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

94.0%

Itabashi

96.3%

93.3%

Listed(Feb. 6, 2013)“End of 6th
Fiscal Period”
Ended Jul. 2013“End of 7th
Fiscal Period”
Ended Jan. 2014“End of 8th
Fiscal Period”
Ended Jul. 2014“End of 9 th
Fiscal Period”
Ended Jan. 2015

“End of 10 th
Fiscal Period”
Ended Jul. 2015

¥4,051
95.9%¥4,203
96.2%¥4,26894.8%¥4,29695.2%¥4,403
95.5%

ー

94.3%

93.6%

96.3%

ー

90.0%

Tokyo
23 wards

92.9%

92.5%

Tokyo
23 wards

Tokyo
23 wards
More thanTokyo
23 wards

74.5

71.2

Tokyo
23 wards

146.7

122.8

100

71.2

Aim to expand asset size while
maintaining a ratio of assets
in the Tokyo 23 wards above 90%

164.4

116.2

Tokyo
23 wards

Replacementof assets

ToshimaAcquired in
the 12th
Fiscal PeriodNakanoArakawa

SumidaBunkyoTaito
Shinjuku“End of 11th
“End of 12th
ChiyodaShibuya
Fiscal Period”
Fiscal Period”
Chuo Koto
SetagayaEnded Jan. 2016
Minato Ended Jul. 2016

¥4,33996.2%¥4,48796.3%

MeguroShinagawa
Ota

Future strategy
Aim to improve DPU (ongoing basis)
Consistently stable occupancy rate

Note: Since a four-for-one split of investment units was carried out effective August 1, 2014, the figures for DPU prior to the split are divided by four and rounded
off to the nearest full number.

End of 11th
Fiscal Period

End of 12th
Fiscal Period=
The Pipeline with the Tokyu Fudosan
69.0% That Enables External Growth
67.3% +Holdings Group

83.2%

2 Property development by Tokyu Land Corporation (As of August 31, 2016)

1 Acquisition from sponsor groups
End of 11th
Fiscal Period

Acquired in
the 12th
Fiscal Period

Sponsor
33.7%

Other

End of 12th
Fiscal Period

67.3% + 83.2% = 69.0%

31.0%

Tokyu Land Corporation has developed 16 properties with 1,803 units of rental residences as the “Comforia” series.
(Major development properties)
Tokyo area
Osaka area
10 properties 1,148 units

69.0%

4

69.0%

■COMFORIA KAMATA■COMFORIA AKIHABARA EAST

Suita-city
ItabashiHigashiyodogawa
Higashiyodogawa
Arakawa

ToshimaNakanoThe Investment Corporation promotes steady growth centered on
the acquisitiongroups, mainly from Tokyu
Otherof assets from sponsor Sponsor
31.0%
33.7%
Land Corporation.
In addition, we strive to reinforce our property acquisition channels
From sponsorCompany.
group
through the Asset Management

6 properties 655 units

From sponsor group

BunkyoTaito
Shinjuku

SumidaShin-osaka
Osaka

Umeda

ChiyodaShibuya
Setagaya

Chuo

MeguroShinagawa

Other sponsors
35.2%

Koto

Nishi

Shinsaibashi

Location

Location

Ota-ku,Tokyo

Chiyoda-ku,
Tokyo

MinatoOta(As of July 31, 2016)

Note: No specific plan has been made by Comforia Residential REIT (CRR) to acquire
any of the above properties.

5Topic 2

Acquisition of Assets and Future

During the 12th Fiscal Period, the Investment Corporation acquired COMFORIA SHINAGAWA EAST and COMFORIASHINJUKU EASTSIDE TOWER on February 2, 2016 and COMFORIA OJIMA and COMFORIA OMORI TROIS on June 30,
2016, acquiring a total of four properties.
The Investment Corporation aimed to achieve the steady growth of assets through those acquisitions.

End of 12th
Fiscal Period¥146.7 billion¥164.4 billion (+¥17.6 billion)

Acquired on February 2, 2016 (acquisition through public offering)

Shinagawa
Prince Hotel

Shinagawa Campus,
Tokyo University of Marine Scienceand Technologyansen
o Shinkine

Kyukaigan-ku

kunOfficei-doriIsetanShinjuku
Main Store

Keio Department
Store, Shinjuku

Shinjudori

Tokaideihin
Daiichi K/

Keio Shinsen
Shinjuku

Tokyo
Women’s
Medical University

COMFORIA SHINJUKUEASTSIDE TOWER

S

hin
Shinjuku-gyoemmae
Takashimaya juku-do
Marunouchi Lineri
Shinjuku Store

Shinjuku GyoeneLin1-20-8, Kitashinagawa, Shinagawa-ku, Tokyo

Address(Land) Fixed-term lease (Building) Ownership

6-27-29 Shinjuku, Shinjuku-ku, Tokyo, and other locations

A two-minute walk from Higashi Shinjuku Station on the
Nearest station /Tokyo Metro Fukutoshin Line and one other line
Distance
A four-minute walk from Shinjuku-sanchome Station on the(on foot)
Tokyo Metro Marunouchi Line and two other lines
Ownership(Land) Fixed-term lease (Building) Ownership

Large
0.3%
Family11.1%

Tokyo 23
wards

Retail stores, etc.
0.5%Single/Compact

Central Tokyo
47.0%

94.3%

Sub-central
Tokyo
47.3%

Single
46.7%

88.1%

Compact
41.4%(As of July 31, 2016)765 units

Assets acquired in the 13th Fiscal Period
Acquired on August 1, 2016

Acquired on September 30, 2016

Omori

JR Sobu Line

Route 7 (Komatsugawa

Omorikaigan

aido

Ito-YokadoTok

Meiji-doriMaruhachi-doriLine

Keiyo-doro

oda

Line)

COMFORIA OMORI TROIS

Joto High School

COMFORIA OJIMA
Joto
Healthcare Center
PeacockLine
Toei Shinjuku

Nishiojima

Community Center

ana-d

Ojima

4-8-10, Ojima, Koto-ku, Tokyo

Addressori

Heiwajima

3-36-7, Omorikita, Ota-ku, Tokyo

Completion date February 2015

Completion date January 2012

99 units

Rentable units

45 units

Daimarue

SapporoHokkaido
Government

452

Address

Nishi Juitchome 36
rk
oro Odori Pa Odori

Mitsukoshi

Sapporo Medical Chuo-ward Office
University Hospital

Susukino

Shiden1-6, Kitanijo-Nishi 10-chome, Chuo-ku, Sapporo-shi, Hokkaido

Nearest station /A six-minute walk from Nishi 11-chome Station on the
Distance
Tozai Line of Sapporo Municipal Subway(on foot)
Ownership

OwnershipCompletion date October 2006
Rentable units

42 units

Tenjimbashisuji
6chome

e

Lin

hi

c
ma

ni

Ta

Umeda

Tenma
OgimachiOgimachi Park

Osaka Loop Line

Osaka Umeda

Clock
Tower

Sapp
Tozai Line

230

SapporoNearest station / A six-minute walk from Heiwajima Station on the Keikyu
Distance (on foot) Line
Ownership

Lin

Botanic Garden

Nearest station / A three-minute walk from Ojima Station on the Toei
Distance (on foot) Shinjuku Line
小名木川
Ownership
Ownership

Ownershipain

Sapporo

COMFORIA SAPPORO Hokkaido University
SHOKUBUTSUEN

OmoriSports Center

Kann

te M

COMFORIA OGIMACHI
Tozai Line

Yodoyabashi

Address

Osakatenmangu

RouMinamimorimachi
te 1 Loop R
Sakaisuji
oute
Nak
Line
a
nos

Keihan Line

him

aL

ine

Tanimachi Line

Tobu Kameido Line

Kameido

Hak

Midosuji

100 COMFORIA OMORI TROIS

Hokkaido University

Tenjimbashisuji

102 COMFORIA OGIMACHI

Keikyu Lineeihin
Daiichi K

99 COMFORIA OJIMA

101 COMFORIA SAPPORO SHOKUBUTSUENLine

Appraisal NOI yield 5.69% (As of July 31, 2016)

MidosujiAppraisal NOI yield 5.62% (As of July 31, 2016)

Acquired on June 30, 2016

6

Room types

ine
Toho L

Rentable units

Acquisition price ¥13,264 million

Rentable units

Other major cities
3.5%
Tokyo
metropolitan
area
2.2%

Takeyoshi Tazaki, Manager
Investment Operation
Department
TLC Comforia Investment
Management INC.

Completion date January 2012

97 units

Acquisition price ¥1,430 million

Address

Investment areas

Toei Subway
Shinjuku Line

Shinjuku-sanchome

YoyogiThe Investment Corporation invests intensively in rental residences in the Tokyo
metropolitan area and rental residences for singles and small families, for which theneeds for rental residences are expected to rise in line with an increase in population andthe number of households. We thereby strive to acquire properties selectively, mainly
focusing on the Tokyo 23 wards, by leveraging the pipeline of our sponsor group. In the
12th Fiscal Period, we acquired four properties in the Tokyo 23 wards.
In the 13th Fiscal Period, we have already acquired a total of two properties including
one property in Sapporo-shi, Hokkaido and another property in Osaka-shi, Osaka. Whileclosely collaborating with our sponsor group, we will continue to invest in high-quality
properties by further expanding and utilizing our own information channels in the future.

Tokyo Medical and Dental University

shin

yu L

Shinagawa Shishokai
Hospital

Keik

Shinjuku City

Yasu

uto

YamanoTokaido te Line/Yokosu
ka LineLine

Kitashinagawa

Completion date February 2015
Rentable units

Shinjukunishiguchi
OdakyuDepartment
Store

Oedo Line

Ohkubo Hospital

Seibu-Shinjuku

COMFORIA SHINAGAWA EAST

A five-minute walk from Kitashinagawa Station on the
Nearest station /Keikyu Line
Distance
A 10-minute walk from Shinagawa Station on the JR(on foot)
Tokaido Shinkansen and five other lines
Ownership

Higashishinjuku

Shinagawa Intercity

Maruetsu Petit

Wakamatsukawada

FukAddress

e
o Lin
Chu
Yamanote Line

Queen’s Isetan

Shinagawa

Shinokubo

Okubo

ecute Shinagawa

Meiji-dori

98 COMFORIA SHINJUKU EASTSIDE TOWER
Seibu
Shinjuku Line

97 COMFORIA SHINAGAWA EAST

With a focus on the Tokyo 23 wards, we will continue to acquire properties ona steady basis by leveraging our capability to identify high-quality properties.

ku LineNambo

End of 11th
Fiscal Period

Acquisition Policy

3-7-15 Tenjinbashi, Kita-ku, Osaka-shi, Osaka

A two-minute walk from Ogimachi Station on the Osaka Municipal
Nearest station / Subway Sakaisuji Line
Distance
A six-minute walk from Minami-morimachi Station on the Osaka
Municipal Subway Tanimachi Line and one other line
(on foot)
A six-minute walk from Temma Station on the JR Osaka Loop Line
Ownership

OwnershipCompletion date September 2014
Rentable units

88 units

Acquisition price ¥2,110 million

Acquisition price ¥866 million

Acquisition price ¥1,250 million

Acquisition price ¥1,435 million

Appraisal NOI yield 4.60% (As of July 31, 2016)

Appraisal NOI yield 4.90% (As of July 31, 2016)

Appraisal NOI yield 5.60% (As of August 1, 2016)

Appraisal NOI yield 5.03% (As of July 31, 2016)7

Internal Growth Strategy

Financial Strategy
We will carry out equity finance (additional issuance of investment units) and debt finance (borrowings of funds andissuance of investment corporation bonds) while paying attention to financial soundness and earnings stability.
Furthermore, we will appropriately control our balance sheet by maintaining an LTV level to secure fund capacity.

Occupancy rate(%)
100

Total portfolio

95.5%

96.0%

Total portfolio (year-on-year)

95.9%

95.6%

95.8%

95.8%

96.2%

96.4% 96.5%

95

95.1% 94.9% 95.2%

96.3%

Interest-bearing debt

90
100

Central Tokyo

Sub-central Tokyo

Tokyo metropolitan area

90
10th FP

Jul.

2015

11th FP

Aug.

Sep.

Oct.

Nov.

12th FP

Dec.

Jan.

2016

Feb.

Mar.

Apr.

May

End of 12th
Fiscal Period(ended Jul. 31, 2016)(ended Jul. 31, 2015)(ended Jan. 31, 2016)

49.7%

49.8%

50.6%

Long-term debt ratio

85.3%

78.0%

86.5%

Fixed-interest debt ratio

97.8%

97.5%

78.8%

Average maturity

3.9 years

3.4 years

3.9 years

Weighted avg. interest

0.87%

0.87%

0.66%

Note: Interest-bearing debt balance/total assets

Jun.

Jul.

Diversification of repayment dates
The expected repayments of debt and investment corporation bonds as of July 31, 2016 are as follows:

Development of COMFORIA WELBOX service
We strive to offer high-quality services that increase tenant satisfaction
in light of the Comforia brand concept. COMFORIA WELBOX, a
dedicated service for tenants that was introduced in June 2015, offers
unique Internet services developed with the support of EWEL, one of
the Tokyu Fudosan Holdings Group companies. About 4,000 services
are provided in total, including discount services at Tokyu Hands,
another group company, as well as discounts for car rentals, cinema andaccommodation. In the 12th Fiscal Period, we strived to further
improve the living environment by conducting a tenant survey
aimed at enhancing operation management, etc., targeting thosetenants who have registered for this service and by collating
their opinions. By providing such services, we hope to improve theprofitability of our portfolio through increased tenant satisfaction andraised occupancy rates.

End of 11th
Fiscal Period

LTV (Note)

Other major cities

95

End of 10th
Fiscal Period(Millions of yen)Debt

15,00012,495

10,000

5,000

5,500

7,925

6,770 6,300 6,900 7,500
3,700

5,500 3,000
4,925

1,350
0

List of the services of COMFORIA WELBOXEntered into a support agreement with Tokyu Sports Oasis and introduced a facility
usage service for residents
As of July 1, 2016, the Investment Corporation entered into a support agreement with Tokyu Sports Oasis, Inc., a memberof our sponsor group, to provide information and offer proposals related to services for residents.
FitOn, a facility usage service for residents, was introduced to selected properties in the Comforia series.
This service, which offers residents free use of facilities at Tokyu Sports Oasis, Inc. for a specified number of times permonth, aims to support residents’ health and comfort.
In addition, at COMFORIA SHINJUKU EASTSIDE TOWER, the management and operation of the gym andpool within the property are entrusted to Tokyu Sports Oasis, Inc., which offers services such as personal training.

Investment corporation bonds

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

20th
FP

21st
FP

22nd
FP

3,300

5,000

23rd
FP

24th
FP

3,410

3,410
2,000 2,330 2,670

25th
FP

26th
FP

27th
FP

28th
FP

The Investment Corporation’s loan balances as of July 31, 2016 are as follows:

0.9%
1.5%

2.0%
2.3%
2.6%

0.6%
0.6%

Lender■ Mitsubishi UFJ Trust and Banking Corporation

17.6%

8.3%
14.4%

16.8%

15.8%

Loan balance

16.8%

comprehensive fitness clubs
Planning and operation of fitness-related business■ Swimming school business■8(millions of yen)
15,490■ Mizuho Bank, Ltd.

14,780■ The Bank of Tokyo-Mitsubishi UFJ, Ltd.

14,780■ Sumitomo Mitsui Trust Bank, Limited

13,925■ Development Bank of Japan Inc.

12,700■ Sumitomo Mitsui Banking Corporation

7,335■ The Norinchukin Bank

2,250

■ Mizuho Trust & Banking Co., Ltd.

2,000

■ The Bank of Fukuoka, Ltd.

1,750

■ The Tokyo Tomin Bank, Limited

1,300■ Shinkin Central Bank

750

■ The 77 Bank, Ltd.

500
500
88,060Total

Main businesses■ Management, planning, and operation of members-only

30th
FP

Loan balances■ The Daishi Bank, Ltd.

Tokyu Sports Oasis, Inc.

29th
FP

5,000

Credit rating
As of March 31, 2016, the Japan Credit Rating Agency, Ltd. (JCR) upgraded the credit rating of the Investment Corporation by one
notch to AA− (Stable).

Before change

A+ (Positive)

After changeAA− (Stable)
9Portfolio Map
The Investment Corporation manages assets with superb accessibility
located mainly in the Tokyo 23 wards.
47

Central Tokyo 39 properties

1 COMFORIA NIHONBASHI NINGYOCHO
2 COMFORIA WASEDA
3 COMFORIA SHIMOOCHIAI
4 COMFORIA HIGASHINAKANO
14 COMFORIA GINZA EAST
15 COMFORIA AZABUDAI
16 COMFORIA SHIBAKOEN
17 COMFORIA NISHIAZABU
18 COMFORIA MINAMIAOYAMA
19 COMFORIA MINAMIAOYAMA DEUX

20 COMFORIA NISHIWASEDA
59 COMFORIA AKASAKA
26 COMFORIA HARAJYUKU
60 COMFORIA MITA EAST
30 COMFORIA MITA NORTH
61 COMFORIA SHIBAURA CANAL
31 COMFORIA SHIBAURA BOWHOUSE 69 COMFORIA KITASANDO
48 COMFORIA SHIROKANETAKANAWA 70 COMFORIA YOYOGIUEHARA
49 COMFORIA NIHONBASHI NINGYOCHO EAST 71 COMFORIA SASAZUKA
50 COMFORIA ATAGO
72 COMFORIA SHINJUKUGYOEN II
56 COMFORIA KUDAN
73 COMFORIA ICHIGAYAYANAGICHO
57 COMFORIA NIHONBASHININGYOCHO NORTH 74 COMFORIA KAGURAZAKA
58 COMFORIA SHINKAWA
80 COMFORIA NIBANCHO

81 COMFORIA NISHISHINJUKU
83 COMFORIA KANDAJINBOCHO
84 COMFORIA NIHONBASHI
85 COMFORIA TAMACHI
86 COMFORIA AZABUJUBAN
92 COMFORIA SHINJUKUGYOEN I
93 COMFORIA KAGURAZAKA DEUX
96 COMFORIA AZABU EAST
98 COMFORIA SHINJUKU EASTSIDE TOWER

Sub-central Tokyo 50 properties

5 COMFORIA BUNKYOKASUGA
39 COMFORIA GAKUGEIDAIGAKU
88 COMFORIA MINAMISUNAMACHI
6 COMFORIA ASAKUSAMATSUGAYA
40 COMFORIA HIGASHINAKANO DEUX 89 COMFORIA HIGASHISHINAGAWA
7 COMFORIA NISHIOI
41 COMFORIA HIGASHIIKEBUKURO WEST 90 COMFORIA MEGUROYAKUMO
8 COMFORIA NAKANO
43 COMFORIA RYOGOKU DEUX
91 COMFORIA YOGA
9 COMFORIA SHIMOKITAZAWA
44 COMFORIA OMORI DEUX
94 COMFORIA ITABASHINAKAJUKU
10 COMFORIA NISHIKAMATA
45 COMFORIA MACHIYA
Acquired in the 13th
11 COMFORIA OYAMA
51 COMFORIA ASAKUSABASHI
Fiscal Period
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 52 COMFORIA RYOGOKU SOUTH
COMFORIA SAPPORO
13 COMFORIA KOMAZAWA
53 COMFORIA TOYOSUSHOKUBUTSUEN
21 COMFORIA KOISHIKAWA
55 COMFORIA SUMIDA-TACHIBANA
22 COMFORIA SENGOKU
62 COMFORIA UENOHIROKOJI
23 COMFORIA DAIKANYAMAAOBADAI
63 COMFORIA KASUGATOMISAKA
27 COMFORIA IKEBUKURO
64 COMFORIA HONKOMAGOME
29 COMFORIA RYOGOKUISHIWARA
65 COMFORIA MORISHITA
32 COMFORIA ASAKUSABASHI DEUX
66 COMFORIA KIBAKOEN
33 COMFORIA OSHIAGE
67 COMFORIA MEGURO CHOJAMARU
34 COMFORIA HONJOAZUMABASHI
68 COMFORIA NISHIMAGOME
35 COMFORIA KIYOSUMISHIRAKAWA TROIS 75 COMFORIA HIGASHIIKEBUKURO EAST
36 COMFORIA MONZENNAKACHO
76 COMFORIA HIGASHIIKEBUKUROCOMFORIA
HIMONYA
37
82 COMFORIA KOMABACOMFORIAMISYUKU
38
87 COMFORIA KINSHICHO

Adachi

Itabashi

Nerima97 COMFORIA SHINAGAWA EAST
99 COMFORIA OJIMA
100 COMFORIA OMORI TROIS

95 101
28

Tokyo 23 wards + Tokyo metropolitan area

94
11

Kita

Acquired in the 12th
Fiscal Period
COMFORIA SHINJUKUEASTSIDE TOWER

Arakawa

Katsushika
45
27 Toshima
64
41
Ikebukuro
Taito
75 22
Sumida76
Nakano3
Bunkyo
Ueno
21
55
8
5
20
6
4
62
33
40
2
63
Edogawa
32 51 29 34
Shinjuku 74
8773
Acquired in the 12th
93 56 83
81
57 84 43 52
98 72
Suginami
Fiscal Period
49
Shinjuku 69 92
65 35
99
80 Chiyoda
1
COMFORIA OJIMA
Tokyo
12
88
Minato
58 36
71 Shibuya
59
66 Koto26 1814
919 15 5070
Chuo
Shibuya 17 96
53
30 16
82
86 48 60
23
Setagaya
38
61
67
31
85
13
91
39
Shinagawa
37
97
Meguro89
90
Shinagawa

7
Ota

68
10

46

Acquired in the 12th
Fiscal Period

44

COMFORIA SHINAGAWA EAST

100
Acquired in the 12th
Fiscal Period
COMFORIA OMORI TROISTokyo metropolitan area 5 properties
Acquired in the 13th
Fiscal Period

28 COMFORIA KOMAE
47 COMFORIA YATSUKA
42 COMFORIA YOKOHAMAKANNAI 77 COMFORIA SHINKOYASU
46 COMFORIA ICHIKAWAMYODENCOMFORIA OGIMACHI

As of September 30, 2016

Other major cities 6 properties

Central Tokyo

54 COMFORIA SHIN-OSAKA
78 COMFORIA SHINSAKAE
79 COMFORIA KITAHORIE
95 COMFORIA KITASANJO
101 COMFORIA SAPPORO SHOKUBUTSUEN
102 COMFORIA OGIMACHI

78

77

Sub-central Tokyo
Tokyo metropolitan area

54 79 102

Other major cities

42

Acquired in the 12thand 13th Fiscal Periods

Total 100 properties
10

11

Portfolio List
No.

Property nameLocation

Gross floor area (m2)

Rentable Acquisition price Investment
units(thousands of yen) ratio (%)

Portfolio properties at the 12th Fiscal Period-end

12

1 COMFORIA NIHONBASHI NINGYOCHO
2 COMFORIA WASEDA
3 COMFORIA SHIMOOCHIAI
4 COMFORIA HIGASHINAKANO
5 COMFORIA BUNKYOKASUGA
6 COMFORIA ASAKUSAMATSUGAYA
7 COMFORIA NISHIOI
8 COMFORIA NAKANO
9 COMFORIA SHIMOKITAZAWA
10 COMFORIA NISHIKAMATA
11 COMFORIA OYAMA
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH
13 COMFORIA KOMAZAWA
14 COMFORIA GINZA EAST
15 COMFORIA AZABUDAI
16 COMFORIA SHIBAKOEN
17 COMFORIA NISHIAZABU
18 COMFORIA MINAMIAOYAMA
19 COMFORIA MINAMIAOYAMA DEUX
20 COMFORIA NISHIWASEDA
21 COMFORIA KOISHIKAWA
22 COMFORIA SENGOKU
23 COMFORIA DAIKANYAMAAOBADAI
26 COMFORIA HARAJYUKU
27 COMFORIA IKEBUKURO
28 COMFORIA KOMAE
29 COMFORIA RYOGOKUISHIWARA
30 COMFORIA MITA NORTH
31 COMFORIA SHIBAURA BOWHOUSE
32 COMFORIA ASAKUSABASHI DEUX
33 COMFORIA OSHIAGE
34 COMFORIA HONJOAZUMABASHI
35 COMFORIA KIYOSUMISHIRAKAWA TROIS
36 COMFORIA MONZENNAKACHO
37 COMFORIA HIMONYA
38 COMFORIA MISYUKU
39 COMFORIA GAKUGEIDAIGAKU
40 COMFORIA HIGASHINAKANO DEUX
41 COMFORIA HIGASHIIKEBUKURO WEST
42 COMFORIA YOKOHAMAKANNAI
43 COMFORIA RYOGOKU DEUX
44 COMFORIA OMORI DEUX
45 COMFORIA MACHIYA
46 COMFORIA ICHIKAWAMYODEN
47 COMFORIA YATSUKA
48 COMFORIA SHIROKANETAKANAWA
49 COMFORIA NIHONBASHI NINGYOCHO EAST
50 COMFORIA ATAGO
51 COMFORIA ASAKUSABASHI
52 COMFORIA RYOGOKU SOUTH
53 COMFORIA TOYOSU

NihonbashiNingyocho, Chuo-ku, Tokyo

3,021.53

45

1,586,837

0.9

Bentencho, Shinjuku-ku, Tokyo

3,080.28

79

1,900,000

1.1

Nakaochiai, Shinjuku-ku, Tokyo

2,726.15

44

1,181,000

0.7

Kitashinjuku, Shinjuku-ku, Tokyo

1,058.75

37552,707

0.3

Nishikata, Bunkyo-ku, Tokyo

3,198.5480

1,470,000

0.9Matsugaya, Taito-ku, Tokyo

2,264.8462

910,000

0.5

Nishioi, Shinagawa-ku, Tokyo

1,542.53

59902,370

0.5

Kamitakada, Nakano-ku, Tokyo

1,935.39

35

881,863

0.5

Hanegi, Setagaya-ku, Tokyo

5,287.18

116

2,587,000

1.5

Nishikamata, Ota-ku, Tokyo

3,358.99103

1,550,000

0.9

Oyamacho, Itabashi-ku, Tokyo

4,793.28

97

1,987,000

1.2

Miyoshi, Koto-ku, Tokyo

1,317.2245740,000

0.4

Komazawa, Setagaya-ku, Tokyo

1,695.4639

1,290,000

0.8

Irifune, Chuo-ku, Tokyo

5,773.48

133

3,059,000

1.8

Azabudai, Minato-ku, Tokyo

1,028.94

24

574,000

0.3

Shibakoen, Minato-ku, Tokyo

1,914.13

54

1,398,000

0.8Nishiazabu, Minato-ku, Tokyo

1,069.7722755,000

0.5

Minamiaoyama, Minato-ku, Tokyo

1,763.88

24

1,041,000

0.6

Minamiaoyama, Minato-ku, Tokyo

487.97

6

248,000

0.1

Takadanobaba, Shinjuku-ku, Tokyo

2,971.10

60

1,685,000

1.0

Koishikawa, Bunkyo-ku, Tokyo

1,015.7137

552,000

0.3

Sengoku, Bunkyo-ku, Tokyo

3,514.75

44

1,219,000

0.7

Aobadai, Meguro-ku, Tokyo

1,533.95

26

926,000

0.6

Sendagaya, Shibuya-ku, Tokyo

6,314.63

99

3,629,000

2.2

Ikebukuro, Toshima-ku, Tokyo

1,171.21

28

602,000

0.4

Iwadokita, Komae-shi, Tokyo

1,468.30

24

399,000

0.2

Ishiwara, Sumida-ku, Tokyo

1,151.4747651,000

0.4

Mita, Minato-ku, Tokyo

1,257.9430

850,000

0.5

Kaigan, Minato-ku, Tokyo

4,862.1875

2,650,000

1.6

Asakusabashi, Taito-ku, Tokyo

1,596.33

46874,000

0.5

Narihira, Sumida-ku, Tokyo

1,369.2647714,000

0.4

Honjo, Sumida-ku, Tokyo

1,434.29

48

762,000

0.5

Shirakawa, Koto-ku, Tokyo

1,553.4550873,000

0.5

Fuyuki, Koto-ku, Tokyo

4,916.04

144

2,658,000

1.6

Himonya, Meguro-ku, Tokyo

2,302.53

28

1,189,000

0.7

Ikejiri, Setagaya-ku, Tokyo

2,842.56

59

1,874,000

1.1

Shimouma, Setagaya-ku, Tokyo

1,919.59

38

1,138,000

0.7

Higashinakano, Nakano-ku, Tokyo

1,419.08

40

833,000

0.5

Higashiikebukuro, Toshima-ku, Tokyo

8,296.57

155

3,911,000

2.3

Okinacho, Naka-ku, Yokohama-shi, Kanagawa

2,377.6260

972,000

0.6

Chitose, Sumida-ku, Tokyo

2,010.27

66

1,014,730

0.6

Omorikita, Ota-ku, Tokyo

2,180.52

64

1,188,000

0.7Arakawa, Arakawa-ku, Tokyo

1,361.9230

594,000

0.4

Shioyaki, Ichikawa-shi, Chiba

1,533.11

48

606,000

0.4

Sezaki, Soka-shi, Saitama

1,710.09

62

626,000

0.4

Mita, Minato-ku, Tokyo

1,932.57

37

1,300,000

0.8

NihonbashiNingyocho, Chuo-ku, Tokyo

2,912.38

82

2,139,300

1.3

Toranomon, Minato-ku, Tokyo

1,147.20

38

826,000

0.5

Yanagibashi, Taito-ku, Tokyo

5,273.67141

2,680,000

1.6

Chitose, Sumida-ku, Tokyo

2,404.23

61

1,240,000

0.7

Edagawa, Koto-ku, Tokyo

4,513.10

161

3,096,650

1.954 COMFORIA SHIN-OSAKA

Higashinakajima, Higashiyodogawa-ku,
Osaka-shi, Osaka

6,530.63

133

2,400,000

1.4

55 COMFORIA SUMIDA-TACHIBANA

Tachibana, Sumida-ku,Tokyo

1,888.25

56

938,000

0.6

No.

Property nameLocation

Kudanminami, Chiyoda-ku, Tokyo
56 COMFORIA KUDAN
57 COMFORIA NIHONBASHININGYOCHO NORTH Nihonbashi Horidomecho, Chuo-ku, Tokyo
Shinkawa, Chuo-ku, Tokyo
58 COMFORIA SHINKAWA
Akasaka, Minato-ku, Tokyo
59 COMFORIA AKASAKA
Shiba, Minato-ku, Tokyo
60 COMFORIA MITA EAST
Kaigan, Minato-ku, Tokyo
61 COMFORIA SHIBAURA CANAL
Ueno, Taito-ku, Tokyo
62 COMFORIA UENOHIROKOJI
Kasuga, Bunkyo-ku, Tokyo
63 COMFORIA KASUGATOMISAKA
Honkomagome, Bunkyo-ku, Tokyo
64 COMFORIA HONKOMAGOME
Shinohashi, Koto-ku, Tokyo
65 COMFORIA MORISHITA
Kiba, Koto-ku, Tokyo
66 COMFORIA KIBAKOEN
Kamiosaki, Shinagawa-ku, Tokyo
67 COMFORIA MEGURO CHOJAMARU
Nishimagome, Ota-ku, Tokyo
68 COMFORIA NISHIMAGOME
Sendagaya, Shibuya-ku, Tokyo
69 COMFORIA KITASANDO
Uehara, Shibuya-ku, Tokyo
70 COMFORIA YOYOGIUEHARA
Sasazuka, Shibuya-ku, Tokyo
71 COMFORIA SASAZUKA
Shinjuku, Shinjuku-ku, Tokyo
72 COMFORIA SHINJUKUGYOEN II
Ichigayayanagicho, Shinjuku-ku, Tokyo
73 COMFORIA ICHIGAYAYANAGICHO
Iwatocho, Shinjuku-ku, Tokyo
74 COMFORIA KAGURAZAKA
Higashiikebukuro, Toshima-ku, Tokyo
75 COMFORIA HIGASHIIKEBUKURO EAST
Higashiikebukuro, Toshima-ku, Tokyo
76 COMFORIA HIGASHIIKEBUKURO
Koyasudori, Kanagawa-ku, Yokohama-shi, Kanagawa
77 COMFORIA SHINKOYASU
Shinsakae, Naka-ku, Nagoya-shi, Aichi
78 COMFORIA SHINSAKAE
Kitahorie, Nishi-ku, Osaka-shi, Osaka
79 COMFORIA KITAHORIE
Nibancho, Chiyoda-ku, Tokyo
80 COMFORIA NIBANCHO
Kitashinjuku, Shinjuku-ku, Tokyo
81 COMFORIA NISHISHINJUKUIkejiri, Setagaya-ku, Tokyo
82 COMFORIA KOMABA
Kandajinbocho, Chiyoda-ku, Tokyo
83 COMFORIA KANDAJINBOCHO
Nihonbashibakurocho, Chuo-ku, Tokyo
84 COMFORIA NIHONBASHI
Shibaura, Minato-ku, Tokyo
85 COMFORIA TAMACHI
Mita, Minato-ku, Tokyo
86 COMFORIA AZABUJUBAN
Taihei, Sumida-ku, Tokyo
87 COMFORIA KINSHICHO
Minamisuna, Koto-ku, Tokyo
88 COMFORIA MINAMISUNAMACHI
Higashishinagawa, Shinagawa-ku, Tokyo
89 COMFORIA HIGASHISHINAGAWA
Yakumo, Meguro-ku, Tokyo
90 COMFORIA MEGUROYAKUMO
Yoga, Setagaya-ku, Tokyo
91 COMFORIA YOGA
Shinjuku, Shinjuku-ku, Tokyo
92 COMFORIA SHINJUKUGYOEN I
Iwatocho, Shinjuku-ku, Tokyo
93 COMFORIA KAGURAZAKA DEUX
Nakajuku, Itabashi-ku, Tokyo
94 COMFORIA ITABASHINAKAJUKU
Kitasanjohigashi, Chuo-ku, Sapporo-shi, Hokkaido
95 COMFORIA KITASANJO
Higashiazabu, Minato-ku, Tokyo
96 COMFORIA AZABU EAST
Kitashinagawa, Shinagawa-ku, Tokyo
97 COMFORIA SHINAGAWA EAST

Gross floor area (m2)

Rentable Acquisition price Investment
units(thousands of yen) ratio (%)

1,787.8936

1,280,500

0.8

1,717.58

36

1,108,000

0.7

2,866.0859

1,840,800

1.1

2,956.70

40

1,945,000

1.2

4,973.31

111

3,190,550

1.9

2,703.41

95

1,570,000

0.9

1,935.60

37

1,050,000

0.6

4,479.23

106

2,912,150

1.7

2,623.37

36

1,344,000

0.8

2,159.39

75

1,530,000

0.9

1,753.8560

956,000

0.6

3,720.52

71

1,972,000

1.2

1,797.93

52

990,000

0.6

7,667.04

144

4,268,000

2.6

2,344.24

51

1,560,000

0.9

3,440.91

89

1,789,000

1.1

2,312.7965

1,806,000

1.1

2,416.85

69

1,623,000

1.0

1,161.31

29

736,000

0.4

3,156.84

90

1,712,000

1.0

1,798.18

48

1,132,000

0.7

2,622.19

36

1,077,000

0.6

4,098.97

144

1,653,400

1.0

1,910.0173

1,010,000

0.6

2,165.01

42

1,621,000

1.0

1,947.14

56

1,625,000

1.0

7,450.62

136

5,000,000

3.0

1,823.86

431,434,000

0.9

2,950.59

63

1,956,000

1.2

5,494.78

77

3,272,000

2.0

1,632.38

55

1,471,000

0.9

1,917.15

46

1,042,000

0.6

8,124.20

211

4,681,000

2.8

3,298.65

86

1,510,000

0.9

1,333.57

36

813,000

0.5

1,798.36

39

1,041,000

0.6

1,832.93

52

1,406,000

0.8

1,637.00

46

1,245,000

0.7

7,732.25

104

3,794,280

2.3

3,949.7960

660,000

0.4

3,505.1269

1,900,000

1.1

3,701.0797

1,430,000

0.9(Tower Building) 69,308.35(Annex Building) 2,305.29(Gate Building)
203.15765

13,264,000

7.9

98 COMFORIA SHINJUKU EASTSIDE TOWER

Shinjuku, Shinjuku-ku, Tokyo

99 COMFORIA OJIMA
100 COMFORIA OMORI TROIS

Ojima, Koto-ku, Tokyo

2,828.47

99

2,110,000

1.3

Omorikita, Ota-ku, Tokyo

1,232.5245

866,000

0.5

344,581.25

7,147

164,420,137

98.4

Kitanijonishi, Chuo-ku, Sapporo-shi, Hokkaido

4,062.4442

1,250,000

0.7

Tenjinbashi, Kita-ku, Osaka-shi, Osaka

2,374.77

88

1,435,000

0.9

Sub-total

6,437.21130

2,685,000

1.6

Total

351,018.46

7,277

167,105,137

100.0

Sub-total

Assets acquired in the 13th Fiscal Period
101 COMFORIA SAPPORO SHOKUBUTSUEN
102 COMFORIA OGIMACHI

13

Portfolio List
59 COMFORIA AKASAKA

Central Tokyo
98 COMFORIA SHINJUKU EASTSIDE TOWER

26 COMFORIA HARAJYUKU

96 COMFORIA AZABU EAST

Sub-central Tokyo14

93 COMFORIA KAGURAZAKA DEUX

80 COMFORIA NIBANCHO

71 COMFORIA SASAZUKA

97 COMFORIA SHINAGAWA EAST

69 COMFORIA KITASANDO

60 COMFORIA MITA EAST

48 COMFORIA SHIROKANETAKANAWA

87 COMFORIA KINSHICHO

88 COMFORIA MINAMISUNAMACHI

82 COMFORIA KOMABA

63 COMFORIA KASUGATOMISAKA

15

Portfolio List
75 COMFORIA HIGASHIIKEBUKURO EAST

Basic Policies
41 COMFORIA HIGASHIIKEBUKURO WEST

52 COMFORIA RYOGOKU SOUTH

We invest intensively in rental residences for singles and small families, mainly in the Tokyo metropolitan area, based on ourbasic policies of “investments in residential properties with stable earnings and high growth potential” and “utilization of the
Tokyu Fudosan Holdings Group,” with the aim of ensuring stable earnings over the medium and long term and maximizing
our unitholders’ value.

“COMFORIA” series
We will invest in and manage rental residences, fully utilizing the concept and expertise of the urban rental residence“Comforia” series, which Tokyu Land Corporation has produced.

For a Superior Level of Living Comfort
COMFORIA is the name we have given to the urban rental residences produced by the Tokyu Land Corporation.
The word COMFORIA is a compound that we coined from “comfort,” and “ia,” a Latin suffix meaning “place.”
The idea that residences are not just containers has given birth to our “COMFORIA” series of rental residences made specificallyfor people who wish to live freely and affluently in urban communities.
COMFORIA offers living comfort beyond expectation and surpasses the level of mere convenience in many ways.

51 COMFORIA ASAKUSABASHI

38 COMFORIA MISYUKU

6 COMFORIA ASAKUSAMATSUGAYA

Four Advantages COMFORIA Offers

Location

Quality

COMFORIA knows how
valuable time is.

COMFORIA knows whathigh quality
feels like.

SafetyService

COMFORIA knows
where peace of mind
comes from.

COMFORIA knows
how residents feel.

Value chain of the Tokyu Fudosan Holdings GroupWe have concluded sponsor support agreements, support agreements and property management agreements for
managed assets with the Asset Management Company and the Tokyu Fudosan Holdings Group companies, to fully utilize
the value chain and expertise of the Tokyu Fudosan Holdings Group. With the support of the Tokyu Fudosan HoldingsGroup companies through such agreements, we will aim to expand our asset size (external growth), and maintain andincrease asset value (internal growth).
On July 1, 2016, a new support agreement was concluded between Tokyu Sports Oasis, Inc. and the Investment
Corporation with regard to the provision of information and proposals concerning tenant services, etc.

Tokyo metropolitan area
5 COMFORIA BUNKYOKASUGA

42 COMFORIA YOKOHAMAKANNAI

Other major cities

Tokyu Land Corporation
Comprehensive real estate developer
Sponsor support agreement

54 COMFORIA SHIN-OSAKA
Tokyu Housing Lease Corporation
Property management/Tenant leasing
Support agreement● Information on the sale of properties● Warehousing● Advisory● Human resources/Expertise● Information on the sale of properties● Considering becoming tenants● Market information● Information on the sale of properties● Market information

Property management agreement

TOKYU COMMUNITY CORP.
Management of condominiums
and buildings
Support agreement

Tokyu Livable, Inc.
Comprehensive real estate marketingintermediary and brokerage ofland and buildings
Support agreement

TLC Comforia Investment Management INC.

EWEL, Inc.
Welfare service agency businessSupport agreement● Information on the sale of properties● Considering becoming tenants● Market information● Information on thewelfare services forresidential tenants

TOKYU E-LIFE DESIGN Inc.
Management and operation of senior
housing and nursing homes
Support agreement● Market information

16

Tokyu Sports Oasis, Inc.
Management, planning and operation of acomprehensive fitness club based on private membership
Support agreement● Providing information and making proposals
concerning services, etc. for tenantsof rental residences.

17

Overview of the Investment Corporation and Asset Management Company

Overview of the Investment Corporation
Name of theinvestment corporation

Comforia Residential REIT, Inc

Representative

Hiroyuki Tohmata, Executive Director

Address

2-6-21 Minami-Aoyama, Minato-ku,
Tokyo 107-0062, Japan

Inquiries

TLC Comforia Investment Management INC.
Tel: +81-3-5770-5710

Fiscal period-end

January 31 and July 31 of each year

History
June 8, 2010

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

June 30, 2010

Implementation of registration by the prime minister under Article 187 of the Act on Investment
Trusts and Investment Corporations (registration number: Director of Kanto Finance Bureau No. 71)

February 6, 2013

Listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange

Structure
The Investment Corporation

SponsorTokyu Land Corporation2

Mitsubishi UFJ Trust and Banking Corporation

5

Asset Management Company
TLC Comforia Investment
Management INC.

Asset Custodian
General Administration (operationof the administrative instrument)
Transfer Agent

Comforia Residential REIT, Inc1

Tokyu Livable, Inc.
TOKYU COMMUNITY CORP.
Tokyu Housing Lease Corporation
TOKYU E-LIFE DESIGN Inc.
EWEL, Inc.
Tokyu Sports Oasis, Inc.

Heiseikaikeisha Tax Corporation

Unitholders’ Meeting

General Administration(corporation bond)

Board of Directors

6

Supporting Company

General Administration(accounting, etc.)

3

Executive Director
Hiroyuki Tohmata
Supervisory Director Yoshihiro Kataoka
Supervisory Director Koji Yamamoto

4

Sumitomo Mitsui Trust Bank, Limited

Asset management agreement
Asset custody agreement,
Administrative service agreement,
Transfer agency agreement
3 Accounting service agreement
4 Fiscal, issuing and payment agency agreement
5 Sponsor support agreement
6 Support agreement
1
2

AuditorErnst & Young ShinNihon LLC

Overview of the Asset Management Company
Trade name

TLC Comforia Investment Management INC.

Representative

Hiroyuki Tohmata, President & CEO

Address

2-6-21 Minami-Aoyama, Minato-ku, Tokyo 107-0062, Japan

Established

October 2009

Capital¥200 million

Shareholder

Tokyu Land Corporation 100%

Registrations/
LicensesFinancial Instruments Business Firm, granted by the
Director of the Kanto Regional Finance Bureau (Financial
Instruments) Registration No. 2370
Discretionary Transaction Agent granted by the Ministerof Land, Infrastructure, Transport and Tourism,
Registration No. 65
Building Lots and Building Transactions Business License,
granted by the Governor of Tokyo (2) No. 91139

Overview of organization
Shareholders’ Meeting
Corporate Auditor
Board of Directors
Investment Committee

Compliance Committee
President & CEO
Compliance Officer
Compliance OfficeInternal Audit

Investment Operation Department

18

Finance & Accounting Department

Strategic Planning Department

19

Asset Management ReportII

I. Asset Management Report
Overview of Asset Management
1. Performance of the Investment Corporation

Asset Management Report for the 12th Fiscal Period(Semi-Annual Report)

From February 1, 2016 to July 31, 2016

II.
III.

Asset Management Report
Comforia Residential REIT, Inc
Financial Section
2-6-21
Minami-Aoyama, Minato-ku,
Balance Sheets
Tokyo 107-0062, Japan
Statements of Income
Statements of Changes in Unitholders’ Equity
Statements of Cash Distributions
Statements of Cash Flows
Notes
Supplementary Schedules
Independent Auditor’s Report

Fiscal period

8thFiscal Period

9thFiscal Period

10th
Fiscal Period

11th
Fiscal Period

12th
Fiscal PeriodBusiness period

FromFeb. 1, 2014 toJul. 31, 2014

From
Aug. 1, 2014 toJan. 31, 2015

From
Feb. 1, 2015 toJul. 31, 2015

From
Aug. 1, 2015 toJan. 31, 2016

From
Feb. 1, 2016 toJul. 31, 2016

Operating revenue(millions of
yen)

4,017

4,103

4,952

5,050

6,531

[Rent revenue - real estate](millions ofyen)[4,014][4,099][4,942][4,957][6,531]

Operating expenses(millions of
yen)

1,912

1,971

2,416

2,446

3,785

[Expenses related to rent business](millions ofyen)[1,551][1,519][1,919][1,902][3,196]

Operating income(millions of
yen)

2,105

2,131

2,535

2,603

2,746

Ordinary income(millions of
yen)

1,719

1,730

2,087

2,148

2,312

Profit(millions of
yen)

1,718

1,729

2,086

2,147

2,304

Total assets(millions ofyen)

125,866

132,857

158,962

159,245

179,944(%)[56.6][5.6][19.6][0.2][13.0](millions ofyen)

58,62958,62977,31077,36985,139[Period-on-period change]
Net assets[Period-on-period change](%)[66.9][0.0][31.9][0.1][10.0](millions ofyen)

56,90056,90075,22475,22482,743(units)100,662

402,648

473,804

473,804

513,504(yen)

145,609

145,610

163,169

163,295

165,801

Total distributions(millions of
yen)

1,718

1,729

2,086

2,055

2,304

Distribution per unit

(yen)

17,074

4,296

4,403

4,339

4,487

[Earnings distribution per unit](yen)[17,074][4,296][4,403][4,339][4,487][Distribution in excess of earnings per
unit]

(yen)

[–]

[–]

[–]

[–]

[–]

Return on assets(Note 2)

(%)

1.7

1.3

1.4

1.4

1.4

Return on unitholders’ equity(Note 3)

(%)

3.7

3.0

3.1

2.8

2.8

(%)

46.6

44.1

48.6

48.6

47.3

Unitholders’ capital
Number of investment units issued
Net assets per unit

Unitholders’ equity ratio(Note 1)

(Note 4)

[Period-on-period change]
Interest-bearing debt[–2.5][4.5][–0.0][–1.3]

71,97078,99079,27091,060(Note 5)

(%)

51.6

54.2

49.7

49.8

50.6

Payout ratio(Note 6)

(%)

99.9

99.9

99.9

95.7

99.9

Number of properties(properties)

80

82

94

94

98

Total leasable area(m2)

174,471.74

181,571.53

214,620.36

217,652.64

272,172.73

(%)

94.8

95.2

95.5

96.2

96.3

Depreciation(millions of
yen)

664

681

816

821

1,017

Capital expenditure(millions of
yen)

61

95

52

52

131

(millions of
yen)

3,127

3,262

3,839

3,875

4,352

NOI
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)20

[2.9]
64,920Interest-bearing debt ratio

Occupancy rate at end of period

-1-

(%)
(millions ofyen)(Note 7)The Investment Corporation implemented a four-for-one split of investment units effective August 1, 2014, with July 31, 2014 as the record date. Net
assets per unit for the 8th Fiscal Period are calculated under the assumption that the split took place at the beginning of the 8th Fiscal Period.
Ordinary income ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100
Profit ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100
Net assets at end of period ÷ Total assets at end of period × 100
Interest-bearing debt at end of period ÷ Total assets at end of period × 100
Total distributions ÷ Profit × 100
Payout ratio is rounded down to the first decimal place.
Real estate rental revenue and expenses + Depreciation

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2.

Asset Management Status for the 12th Fiscal Period

3. Capital Increases(1) History of the Investment Corporation
Comforia Residential REIT, Inc (the “Investment Corporation”) was established on June 8, 2010 as an investment
corporation that invests mainly in residential properties in accordance with the “Act on Investment Trusts and Investment
Corporations” of Japan (Act No. 198 of 1951, as revised; hereinafter referred to as the “Investment Trust Act”), withregistration by the Prime Minister completed as of June 30, 2010 under Article 187 of the Investment Trust Act (registration
number: Director of Kanto Finance Bureau No. 71). Investments by the Investment Corporation commenced in August 2010.
The Investment Corporation issued new investment units (18,691 units) through a public offering on February 6, 2013 andwas listed on the real estate investment trust market of the Tokyo Stock Exchange, Inc. (securities code: 3282).
Managed assets of the Investment Corporation at the commencement of operations totaled 11 properties, acquired
for a total of ¥15,508 million. As a result of additional acquisition and sale of properties under the basic policy of asset
management (to manage assets with the aim of achieving stable earnings and ensuring the steady growth of our managed
assets based on medium- and long-term perspectives to maximize our unitholders’ value) stipulated in the regulations of theInvestment Corporation, the portfolio owned as of the end of the 12th Fiscal Period includes 98 properties, acquired for a
total of ¥164,420 million.
(2) Investment performance(i) Investment environment
During the 12th Fiscal Period, the Japanese economy remained on a modest recovery trend amid improvements in theemployment and income environment. Under these circumstances, the residential rental market has maintained highoccupancy rates, with unit rent roughly unchanged across the board. In the real estate investment market, as funds
seeking yield flowed toward real estate investment as a result of the fiscal policies of the government and monetary
policies of the Bank of Japan (BOJ), there is overheated motivation to invest by individuals and corporate entities on theback of vigorous motivation of financial institutions to lend.
(ii) Acquisition of assets
During the 12th Fiscal Period, the Investment Corporation acquired a total of four properties including COMFORIASHINJUKU EASTSIDE TOWER and one other property, which were acquired in February 2016, and COMFORIAOJIMA and one other property, which were acquired in June 2016. As a result, assets owned by the Investment
Corporation as of the end of the 12th Fiscal Period totaled 98 properties, acquired for a total of ¥164,420 million.
(iii) Operation management of assets owned by the Investment Corporation
The Investment Corporation consigns property management operations mainly to Tokyu Housing Lease Corporation,
which has an extensive track record in managing the “Comforia” series of properties. Under the “Comforia” series, theInvestment Corporation promotes unified management and strive to improve operational efficiency and shorten periodsof vacancy.
(3) Overview of funding
During the 12th Fiscal Period, the Investment Corporation issued investment units (39,700 units) and borrowed funds(¥10,550 million) to be appropriated for the acquisition of COMFORIA SHINJUKU EASTSIDE TOWER and one otherproperty in February 2016 and for the repayment of borrowing undertaken in November 2015. Subsequently, anotherborrowing was undertaken in March 2016 (¥9,925 million) to repay existing loans that had reached their due date (¥9,925
million). In addition, the Investment Corporation borrowed funds (¥3,220 million) in June 2016 to be appropriated for theacquisition of COMFORIA OJIMA and one other property. As a result, unitholders’ capital as of the end of the 12th Fiscal
Period (July 31, 2016) was ¥82,743 million, interest-bearing debt was ¥91,060 million, the ratio of interest-bearing debt tototal assets (LTV) was 50.6%, the average maturity of interest-bearing debt was 3.9 years, the ratio of long-term debt was
86.5%, and the fixed rate ratio was 78.8%.
The Investment Corporation obtained the following rating as of the end of the 12th Fiscal Period.
Name of credit rating agency

RatingOutlookJapan Credit Rating Agency, Ltd. (JCR)

AA–

Stable(4) Overview of performance and distributions
As a result of investment during the 12th Fiscal Period, the Investment Corporation posted operating revenues of ¥6,531
million, operating income of ¥2,746 million, ordinary income of ¥2,312 million, and profit of ¥2,304 million.
The Investment Corporation carried out distributions so that the Special Provisions for Taxation on Investment
Corporations (Article 67-15 of the Act on Special Measures Concerning Taxation [Law No. 26 of 1957, as revised;hereinafter referred to as the “Act on Special Measures Concerning Taxation”]) would be applied by distributing almost all
unappropriated retained earnings. As a result, the distribution per unit (DPU) was ¥4,487 for the period.

-322

Date

Number of investment units
issued (units)

Type

ChangeBalanceUnitholders’ capital(millions of yen)
ChangeRemarks

Balance

June 8, 2010

Establishment throughprivate placement

200

200

100

100

(Note 1)

August 30, 2010

Capital increase throughprivate placement

7,800

8,000

3,900

4,000

(Note 2)

March 18, 2011

Capital increase throughprivate placement

24,27032,27011,84015,840(Note 3)February 2, 2012

Capital increase throughprivate placement

16,40048,6708,200

24,040(Note 4)

February 5, 2013

Capital increase throughpublic offering

18,691

67,361

9,935

33,975(Note 5)February 3, 2014

Capital increase throughpublic offering

31,90099,261

21,96055,936(Note 6)

February 26, 2014

Capital increase throughthird-party allotment

1,401

100,662964

56,900(Note 7)

August 1, 2014

Investment unit split

301,986

402,648–

56,900(Note 8)February 2, 2015

Capital increase throughpublic offering

70,000472,648

18,02574,926(Note 9)February 27, 2015

Capital increase throughthird-party allotment

1,156

473,804297

75,224(Note 10)February 1, 2016

Capital increase throughpublic offering

37,800511,604

7,159

82,383(Note 11)February 26, 2016

Capital increase throughthird-party allotment

1,900

513,504359

82,743(Note 12)(Note 1)
(Note 2)
(Note 3)

Established at an issue price of ¥500,000 per investment unit.
Issued privately placed investment units at an issue price of ¥500,000 per investment unit to fund the acquisition of new properties.
Issued privately placed investment units at an issue price of ¥500,000 (subscription price of ¥487,852) per investment unit to fund the acquisition of
new properties and repay loans.
(Note 4) Issued privately placed investment units at an issue price of ¥500,000 per investment unit to fund the acquisition of new properties and repay loans.
(Note 5) Issued investment units at an issue price of ¥550,000 (subscription price of ¥531,575) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 6) Issued investment units at an issue price of ¥712,530 (subscription price of ¥688,413) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 7) Issued investment units to Mizuho Securities Co., Ltd. at an issue price of ¥688,413 per investment unit.
(Note 8) Carried out a four-for-one-split of investment units effective as of August 1, 2014, with July 31, 2014 as the record date.
(Note 9) Issued investment units at an issue price of ¥266,253 (subscription price of ¥257,514) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 10) Issued investment units to Mizuho Securities Co., Ltd. at an issue price of ¥257,514 per investment unit.
(Note 11) Issued investment units at an issue price of ¥195,828 (subscription price of ¥189,400) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 12) Issued investment units to Mizuho Securities Co., Ltd. at an issue price of ¥189,400 per investment unit.

[Fluctuation in market price of the investment securities]
The highest and lowest prices (closing price) in the real estate investment trust market of the Tokyo Stock Exchange, Inc., where theInvestment Corporation is listed, by fiscal period are as follows.
Fiscal period

8th Fiscal Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

Closing month/year

Jul. 2014

Jan. 2015

Jul. 2015

Jan. 2016

Jul. 2016

Highest¥769,000¥188,600 (Note)¥283,700¥266,300¥242,500¥250,900

Lowest¥690,000¥187,700 (Note)¥186,900¥232,600¥189,600¥206,900(Note) The investment unit price is shown for the ex-rights period (July 29, 2014–July 31, 2014) of the investment unit split.

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4. Performance of Distributions
DPU for the 12th Fiscal Period was ¥4,487. The Investment Corporation has decided to distribute almost all unappropriatedretained earnings with the intent of including the maximum amount of earnings distributions in deductible expenses by applying
special measures concerning taxation (Article 67-15 of the Act on Special Measures Concerning Taxation).
Fiscal period

8th Fiscal Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal PeriodBusiness period

From Feb. 1, 2014
to Jul. 31, 2014

From Aug. 1, 2014
to Jan. 31, 2015

From Feb. 1, 2015
to Jul. 31, 2015

From Aug. 1, 2015
to Jan. 31, 2016

From Feb. 1, 2016
to Jul. 31, 2016

Unappropriated retained earnings
Retained earnings
Total distributions[Distribution per unit]
Of which, total earnings
distributions[Earnings distribution per unit]
Of which, total return on
unitholders’ capital¥1,718,736 thousand ¥1,729,936 thousand ¥2,086,414 thousand ¥2,148,086 thousand ¥2,304,285 thousand¥33 thousand¥160 thousand¥255 thousand¥92,251 thousand¥193 thousand¥1,718,702 thousand ¥1,729,775 thousand ¥2,086,159 thousand ¥2,055,835 thousand ¥2,304,092 thousand[¥17,074][¥4,296][¥4,403][¥4,339][¥4,487]¥1,718,702 thousand ¥1,729,775 thousand ¥2,086,159 thousand ¥2,055,835 thousand ¥2,304,092 thousand[¥17,074][¥4,296][¥4,403][¥4,339][¥4,487]¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Return on unitholders’ capital per
unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on unitholders’capital, the total distribution
payments from the allowance fortemporary difference¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on unitholders’capital, the total distribution
payments from investments andother decreased distribution under
the tax laws¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Of the total return on unitholders’capital per unit, the distribution
payments from investments andother decreased distribution under
the tax laws]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

[Of the return on unitholders’capital per unit, the distribution
payment from the allowance fortemporary difference per unit](2) Internal growth strategy
With the aim of maximizing portfolio value and cash flows from individual properties from a medium- to long-term
perspective and to make the most of the experience and comprehensive strength of the Tokyu Fudosan Holdings Group inproperty management, we will consign property management operations mainly to Tokyu Fudosan Holdings Group
companies, which have extensive experience in the management of J-REIT and the “Comforia” series. In addition, we will
strive for efficient management by examining the adequacy of building management specifications and costs.
Furthermore, we will actively utilize the expertise of Tokyu Fudosan Holdings Group in asset and fund management toachieve higher-quality overall management of the Investment Corporation.
In the 13th Fiscal Period and onwards, we will continue to aim to maintain and improve occupancy rates by closely
monitoring the property management situation, as we did in the 12th Fiscal Period.
(3) Financial strategy
In consideration of addressing future interest rate risk and refinance risk, we will carry out funding activities by paying
attention to financial soundness and earnings stability. With regard to debt, we will efficiently combine short-term fundingthat focuses on agility with long-term stable funding. Furthermore, we will consider the issuance of new investment units inaccordance with financing needs for property acquisition and the financial situation of the Investment Corporation, while
paying attention to the market development and distribution level, with the upper limit of the ratio of interest-bearing debt tototal assets (LTV) at around 60%.

6. Significant Matters after Book Closing
Not applicable(Note) Figures above are rounded down to the nearest unit.

5. Future Investment Policy and Issue to Address
Based on our basic policies of investment management, the Investment Corporation acquired four assets during the 12th Fiscal
Period, and has carried out investment and management based on the concept and expertise incorporated into the urban residential
rental “Comforia” series, which Tokyu Land Corporation (hereinafter referred to as “Tokyu Land”) has been producing. Goingforward, we aim to achieve medium- to long-term growth by continuing to carry out investment and management based on ourbasic policies.
(1) External growth strategy
The Investment Corporation aims to acquire higher-quality assets and expand its asset size, utilizing the support of the Tokyu
Fudosan Holdings Group, primarily the sponsor support of Tokyu Land, and original information from TLC Comforia
Investment Management INC., its asset management company (hereinafter referred to as the “Asset Management
Company”).
Specifically, we will acquire properties developed by our sponsor, Tokyu Land, using the sponsor support agreement theAsset Management Company entered into with Tokyu Land, and continuously and steadily acquire quality residential
properties that are under stable operation. In addition, we intend to utilize real estate brokerage capabilities through the vast
information network of Tokyu Fudosan Holdings Group companies, who are not our sponsors, to acquire quality residential
properties, achieve stable operation and enhance profitability. Based on this perspective, the Asset Management Company
has entered into a support agreement with each of the six support companies of the Tokyu Fudosan Holdings Group
companies (Tokyu Livable, Inc., TOKYU COMMUNITY CORP., Tokyu Housing Lease Corporation, TOKYU E-LIFE
DESIGN Inc., EWEL, Inc., and Tokyu Sports Oasis, Inc.).

-524

-625

Overview of the Investment Corporation
1. Unitholders’ Capital
8th Fiscal
Period

9th Fiscal
Period10th Fiscal
Period11th Fiscal
Period12th Fiscal
PeriodAs of Jul. 31,
2014

As of Jan. 31,
2015

As of Jul. 31,
2015

As of Jan. 31,
2016

As of Jul. 31,
2016

Total number of authorized
investment units (Note)(units)2,000,000

8,000,000

8,000,000

8,000,000

8,000,000

Total number of investment units
issued (Note)(units)100,662

402,648

473,804

473,804

513,504

Unitholders’ capital(millions ofyen)

56,90056,90075,22475,22482,743

Number of unitholders(people)

5,672

5,254

8,148

7,530

7,749

(Note) A four-for-one split of investment units was carried out effective August 1, 2014.

2. Matters concerning Investment Units
Major unitholders as of July 31, 2016 are as follows.
Number of investment units
owned (units)

Name

Ratio to the total number ofinvestment units issued (%) (Note)

Japan Trustee Services Bank, Ltd. (trust account)

154,24430.03

Tokyu Land Corporation

51,664

10.06

Trust & Custody Services Bank, Ltd. (securities investment
trust account)

39,388

7.67

The Master Trust Bank of Japan, Ltd. (trust account)

34,098

6.64

The Nomura Trust & Banking Co., Ltd. (trust account)

21,615

4.20

The Asahi Fire And Marine Insurance Company Limited

9,600

1.86

Trust & Custody Services Bank, Ltd. (taxable trust money
account)

9,397

1.82

STATE STREET BANK AND TRUST COMPANY 505001(Standing proxy: Mizuho Bank, Ltd.)

5,218

1.01

Nippon Tosho Fukyu Co., LTD.

4,279

0.83

Mitsubishi UFJ Trust and Banking Corporation(Standing proxy: The Master Trust Bank of Japan, Ltd.)

4,168

0.81

333,671

64.97

Total

(2) Policy for decisions on dismissal or non-reappointment of Accounting Auditor
The Board of Directors shall, with the consent of all its members, dismiss the Accounting Auditor if it is deemed that it falls
under any of the grounds set forth in each item of Paragraph 1 of Article 105 of the Investment Trust Act, and when it isdetermined that there is no hope for improvement.
In addition, when it is determined that the Accounting Auditor is not fit for its role, upon comprehensive examination of
its execution of duties as the Accounting Auditor and other various circumstances, the Board of Directors shall dismiss or not
reappoint said Accounting Auditor with the consent of all of its members, and forward a proposal for the appointment of a
new Accounting Auditor to the unitholders’ meeting.
(3) Disposition of suspension of services that the Accounting Auditor has been subject to in the past two years
Details of the disciplinary action announced by the Financial Services Agency on December 22, 2015:(i) Subject of the action
Ernst & Young ShinNihon LLC(ii) Description of the action– Three-month suspension from accepting new engagements(From January 1, 2016 to March 31, 2016)– Order to improve operations (improvement of the audit management system)
Note: In addition, an order for payment of a surcharge of approximately ¥2.1 billion was decided on January 22,2016.
(iii) Reason for the action– Seven certified accountants from Ernst & Young ShinNihon LLC (hereinafter referred to as the “Auditor”) had, in
negligence of due care, attested the financial statements of TOSHIBA CORPORATION for fiscal 2009, fiscal 2011
and fiscal 2012 (for years that ended March 31, 2010, 2012 and 2013) containing material misstatements as though
no material misstatements were present.
– The Auditor’s operations were deemed significantly inappropriate

4. Asset Management Company, Asset Custodian and General Administration
The asset management company, asset custodian and general administration as of July 31, 2016 are as follows.
Consignment segment

Name

Asset management company

TLC Comforia Investment Management INC.

Asset custodian

Mitsubishi UFJ Trust and Banking Corporation

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

General administration (accounting service)

Heiseikaikeisha Tax Corporation

General administration (administrative service)

Mitsubishi UFJ Trust and Banking Corporation

General administration (corporation bond service)

Sumitomo Mitsui Trust Bank, Limited(Note) The percentage of investment units owned to the total number of investment units issued is rounded down to the nearest tenths.

3. Matters concerning Directors, etc.
(1) Name of directors, etc.
The names of directors, etc. during the 12th Fiscal Period are as follows.
Position

Name of director, etc.

Main concurrent posts

Executive
Director

Hiroyuki Tohmata

President & CEO, TLC Comforia Investment
Management INC.
Operating Officer, Tokyu Land Corporation–

Supervisory
Director

Yoshihiro Kataoka

Head of Kataoka & Kobayashi
Outside Audit & Supervisory Board Member,
The Higo Bank, Ltd.

1,800

Supervisory
Director

Koji Yamamoto

Partner, Shiki-Sogo Law and Accounting Office
Supervisory Officer, Toshi Saisei Fund Investment
Corporation

1,800

Accounting
AuditorErnst & Young
ShinNihon LLC (Note 2)–

16,434(Note 1)
(Note 2)

None of the Executive Director or Supervisory Directors own investment units in the Investment Corporation, either in their own name orin someone else’s name. Furthermore, although Supervisory Directors may be officers of a corporation other than those mentioned above,neither one has an interest in the Investment Corporation.
The amount includes the fees pertaining to the production of a “Auditor’s Comfort Letter to Lead Underwriting Firm” related to theissuance of new investment units in February 2016.

-726

Total amount of
remuneration paid during theperiod (thousands of yen)-827

3. Statement of Properties Incorporated in the Portfolio

Status of Managed Assets of the Investment Corporation

The overview of assets under management of the Investment Corporation as of July 31, 2016 is as follows.

1. Composition of Assets of the Investment Corporation
11th Fiscal Period(as of January 31, 2016)
Type of asset

Area

Properties in trust

Area

Total amountowned (millions ofyen) (Note 1)

Percentage of total
assets (%) (Note 2)

Total amountowned (millions ofyen) (Note 1)

Percentage of total
assets (%) (Note 2)

–

–

3,205

1.8

Sub-central Tokyo

Real estate

12th Fiscal Period(as of July 31, 2016)

Other major cities

1,072

0.7

1,065

0.6

Central Tokyo

64,624

40.6

78,56643.7

Sub-central Tokyo

73,91646.4

75,175

41.8

Tokyo metropolitan area

3,735

2.3

3,708

2.1

Other major cities
Subtotal

4,853

3.0

4,813

2.7

148,201

93.1

166,535

92.5

Deposits and other assets

11,043

6.9

13,408

7.5

Total assets

159,245100.0

179,944100.0(Note 1)
(Note 2)

“Total amount owned” shows the amount posted on the balance sheets as of the closing of accounts (the book value after depreciation for real estateand properties in trust).
The sum may not total 100.0% since figures are rounded down to the nearest tenth.

2. Major Assets Owned

Property name
COMFORIA SHINJUKUEASTSIDE TOWER

Book value(millions ofyen)
14,230Rentable area(m2)
48,267.60

45,547.85

Occupancy
rate
(%)
94.4

Ratio to total
rental revenues(%)

Main usage

21.5

Apartment
building

COMFORIA KOMABA

5,251

5,342.38

5,289.76

99.0

2.0

Apartment
building

COMFORIA
MINAMISUNAMACHI

4,781

6,141.98

5,965.71

97.1

2.0

Apartment
building

COMFORIA KITASANDO

4,308

4,973.52

4,779.12

96.1

2.1

Apartment
building

COMFORIA
ITABASHINAKAJUKU

3,913

6,966.04

6,633.53

95.2

1.8

Apartment
building

COMFORIAHIGASHIIKEBUKURO WEST

3,836

6,436.14

6,144.52

95.5

2.4

Apartment
building

Address

COMFORIA NIHONBASHININGYOCHO

3-5-10 Nihonbashi Ningyocho, Chuo-ku, Tokyo

COMFORIA WASEDA

147 Bentencho, Shinjuku-ku, Tokyo

COMFORIA SHIMOOCHIAI

2-7-10 Nakaochiai, Shinjuku-ku, Tokyo

COMFORIA HIGASHINAKANO

4-34-2 Kita-Shinjuku, Shinjuku-ku, Tokyo

COMFORIA GINZA EAST

1-3-1 Irifune, Chuo-ku, Tokyo

COMFORIA AZABUDAI

3-4-4 Azabudai, Minato-ku, Tokyo

COMFORIA SHIBAKOEN

2-2-15 Shibakoen, Minato-ku, Tokyo

COMFORIA NISHIAZABU

4-1-10 Nishiazabu, Minato-ku, Tokyo

COMFORIA MINAMIAOYAMA

4-1-12 Minami-Aoyama, Minato-ku, Tokyo

COMFORIA MINAMIAOYAMA
DEUX

4-2-1 Minami-Aoyama, Minato-ku, Tokyo

COMFORIA NISHIWASEDA

1-5-19 Takadanobaba, Shinjuku-ku, Tokyo

COMFORIA HARAJYUKU

3-61-3 Sendagaya, Shibuya-ku, Tokyo

COMFORIA MITA NORTH

2-7-16 Mita, Minato-ku, Tokyo

COMFORIA SHIBAURABOWHOUSE

3-13-12 Kaigan, Minato-ku, Tokyo

COMFORIASHIROKANETAKANAWA

5-1-21 Mita, Minato-ku, Tokyo

COMFORIA HARAJYUKU

3,566

4,528.51

4,278.97

94.5

1.9

Apartment
building

COMFORIA TAMACHI

3,444

4,251.63

4,251.63

100.0

1.5

Apartment
building

COMFORIA MITA EAST

3,192

3,639.93

3,513.29

96.5

1.5

Apartment
building

COMFORIA NIHONBASHININGYOCHO EAST

3-6-3 Nihonbashi Ningyocho, Chuo-ku, Tokyo

COMFORIA TOYOSU

3,068

4,127.00

3,799.15

92.1

1.5

Apartment
building

COMFORIA ATAGO

3-23-7 Toranomon, Minato-ku, Tokyo

49,593

94,674.73

90,203.53

95.3

38.2
COMFORIA KUDAN

2-6-12 Kudan Minami, Chiyoda-ku, Tokyo

COMFORIA NIHONBASHININGYOCHO NORTH

1-1-6 Nihonbashi Horidomecho, Chuo-ku,
Tokyo

COMFORIA SHINKAWA

2-15-5 Shinkawa, Chuo-ku, Tokyo

COMFORIA AKASAKA

2-17-63 Akasaka, Minato-ku, Tokyo

Total

-928

Rented area
(m2)

Central Tokyo

The overview of major assets owned by the Investment Corporation (top 10 properties in terms of term-end book value)is as follows.

Property name

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Book value(millions ofyen) (Note 2)

2,040

1,575

2,400

1,912

1,460

1,136

654

562

3,840

2,972

736

565

1,660

1,360

878

739

1,450

1,040

374

248

2,010

1,638

4,360

3,566

1,010

844

3,210

2,621

1,580

1,335

2,480

2,121

918

829

1,500

1,288

1,240

1,110

2,120

1,848

2,310

1,959

- 10 29

Property name

COMFORIA MITA EAST

4-18-1 Shiba, Minato-ku, Tokyo

COMFORIA SHIBAURA CANAL

3-1-9 Kaigan, Minato-ku, Tokyo

COMFORIA KITASANDO

4-5-10 Sendagaya, Shibuya-ku, Tokyo

COMFORIA YOYOGIUEHARA

2-31-5 Uehara, Shibuya-ku, Tokyo

COMFORIA SASAZUKA

1-59-10 Sasazuka, Shibuya-ku, Tokyo

COMFORIA SHINJUKUGYOEN II

1-13-3 Shinjuku, Shinjuku-ku, Tokyo

COMFORIA
ICHIGAYAYANAGICHO

18-2 Ichigaya Yanagicho, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA

26-1 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA NIBANCHO

4-8 Nibancho, Chiyoda-ku, Tokyo

COMFORIA NISHISHINJUKU

1-20-12 Kita-Shinjuku, Shinjuku-ku, Tokyo

COMFORIA KANDAJINBOCHO

1-42-2 Kanda Jinbocho, Chiyoda-ku, Tokyo

COMFORIA NIHONBASHI

1-2-2 Nihonbashi Bakurocho, Chuo-ku, Tokyo

COMFORIA TAMACHI

4-5-13 Shibaura, Minato-ku, Tokyo

COMFORIA AZABUJUBAN

1-2-15 Mita, Minato-ku, Tokyo

COMFORIA SHINJUKUGYOEN I

1-10-4 Shinjuku, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA
DEUX

7-3 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA AZABU EAST

2-29-1 Higashi-Azabu, Minato-ku, Tokyo

COMFORIA SHINJUKUEASTSIDE TOWER

Sub-central Tokyo

Address(Tower Building) 6-27-29 Shinjuku,
Shinjuku-ku, Tokyo(Annex Building) 6-27-28 Shinjuku,
Shinjuku-ku, Tokyo(Gate Building) 6-27-14 Shinjuku, Shinjuku-ku,
Tokyo
Subtotal

COMFORIA BUNKYOKASUGA

1-15-12 Nishikata, Bunkyo-ku, Tokyo

COMFORIAASAKUSAMATSUGAYA

1-11-5 Matsugaya, Taito-ku, Tokyo

COMFORIA NISHIOI

6-6-1 Nishi-Oi, Shinagawa-ku, Tokyo- 11 30

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trustBook value(millions ofyen) (Note 2)

Area

Property name

Address

3,660

3,192

COMFORIA NAKANO

2-40-12 Kamitakada, Nakano-ku, Tokyo

1,800

1,573

COMFORIA SHIMOKITAZAWA

1-9-14 Hanegi, Setagaya-ku, Tokyo

4,770

4,308

COMFORIA NISHIKAMATA

6-37-3 Nishi-Kamata, Ota-ku, Tokyo

1,740

1,567

COMFORIA OYAMA

4-4 Oyamacho, Itabashi-ku, Tokyo

2,140

1,807

COMFORIA
KIYOSUMISHIRAKAWA SOUTH

3-2-13 Miyoshi, Koto-ku, Tokyo

2,020

1,811

COMFORIA KOMAZAWA

2-1-5 Komazawa, Setagaya-ku, Tokyo

1,880

1,627

COMFORIA KOISHIKAWA

2-17-27 Koishikawa, Bunkyo-ku, Tokyo

842

739

COMFORIA SENGOKU

4-3-20 Sengoku, Bunkyo-ku, Tokyo

1,780

1,645

COMFORIA
DAIKANYAMAAOBADAI

2-1-7 Aobadai, Meguro-ku, Tokyo

1,650

1,658

COMFORIA IKEBUKURO

2-57-1 Ikebukuro, Toshima-ku, Tokyo

1,550

1,508

COMFORIA
RYOGOKUISHIWARA

1-36-1 Ishiwara, Sumida-ku, Tokyo

2,110

2,002

COMFORIA ASAKUSABASHI
DEUX

5-24-10 Asakusabashi, Taito-ku, Tokyo

3,510

3,444

COMFORIA OSHIAGE

4-7-2 Narihira, Sumida-ku, Tokyo

1,590

1,505

COMFORIA
HONJOAZUMABASHI

2-11-12 Honjo, Sumida-ku, Tokyo

1,470

1,437

COMFORIA
KIYOSUMISHIRAKAWA TROIS

3-5-14 Shirakawa, Koto-ku, Tokyo

1,310

1,277

COMFORIA MONZENNAKACHO

16-8 Fuyuki, Koto-ku, Tokyo

2,620

1,953

COMFORIA HIMONYA

2-3-3 Himonya, Meguro-ku, Tokyo

COMFORIA MISYUKU

3-23-2 Ikejiri, Setagaya-ku, Tokyo

13,700

14,230
COMFORIA GAKUGEIDAIGAKU

6-46-6 Shimouma, Setagaya-ku, Tokyo

COMFORIA HIGASHINAKANO
DEUX

4-2-19 Higashi-Nakano, Nakano-ku, Tokyo

COMFORIAHIGASHIIKEBUKURO WEST

3-22-21 Higashi-Ikebukuro, Toshima-ku, Tokyo

COMFORIA RYOGOKU DEUX

1-2-10 Chitose, Sumida-ku, Tokyo

88,372

78,566

1,950

1,420

1,190

868

989

899

Sub-central Tokyo

Central Tokyo

Area

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Book value(millions ofyen) (Note 2)

988

885

3,130

2,471

2,100

1,492

2,230

1,990

877

714

1,620

1,258

651

538

1,620

1,209

1,250

939

661

584

779

635

1,040

876

849

719

894

765

1,030

859

3,030

2,612

1,440

1,205

2,420

1,844

1,440

1,137

1,050

823

5,150

3,836

1,230

1,038

- 12 31

COMFORIA OMORI DEUX

3-4-2 Omori Kita, Ota-ku, Tokyo

COMFORIA MACHIYA

5-51-7 Arakawa, Arakawa-ku, Tokyo

COMFORIA ASAKUSABASHI

2-20-10 Yanagibashi, Taito-ku, Tokyo

COMFORIA RYOGOKU SOUTH

2-14-8 Chitose, Sumida-ku, Tokyo

COMFORIA TOYOSU

1-4-12 Edagawa, Koto-ku, Tokyo

COMFORIA
SUMIDA-TACHIBANA

5-18-5 Tachibana, Sumida-ku, Tokyo

COMFORIA UENOHIROKOJI

3-17-4 Ueno, Taito-ku, Tokyo

COMFORIA KASUGATOMISAKA

1-11-18 Kasuga, Bunkyo-ku, Tokyo

COMFORIA HONKOMAGOME

2-29-24 Honkomagome, Bunkyo-ku, Tokyo

COMFORIA MORISHITA

3-6-8 Shin-Ohashi, Koto-ku, Tokyo

COMFORIA KIBAKOEN

2-17-7 Kiba, Koto-ku, Tokyo

COMFORIA MEGUROCHOJAMARU

2-6-25 Kami-Osaki, Shinagawa-ku, Tokyo

COMFORIA NISHIMAGOME

2-35-8 Nishi-Magome, Ota-ku, Tokyo

COMFORIAHIGASHIIKEBUKURO EAST

2-8-1 Higashi-Ikebukuro, Toshima-ku, Tokyo

COMFORIAHIGASHIIKEBUKURO

4-3-5 Higashi-Ikebukuro, Toshima-ku, Tokyo

COMFORIA KOMABA

4-8-25 Ikejiri, Setagaya-ku, Tokyo

COMFORIA KINSHICHO

3-8-6 Taihei, Sumida-ku, Tokyo

COMFORIA
MINAMISUNAMACHI

4-4-20 Minamisuna, Koto-ku, Tokyo

COMFORIAHIGASHISHINAGAWA

3-22-11 Higashi-Shinagawa, Shinagawa-ku,
Tokyo

COMFORIA MEGUROYAKUMO

1-12-10 Yakumo, Meguro-ku, Tokyo

COMFORIA YOGA

3-24-3 Yoga, Setagaya-ku, Tokyo

COMFORIA
ITABASHINAKAJUKU

62-2 Nakajuku, Itabashi-ku, Tokyo- 13 32

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

1,380

1,216

837

608

3,330

2,661

1,550

1,233

3,540

3,068

1,020

971

1,230

1,056

3,340

2,923

1,560

1,347

1,750

1,531

1,100

957

2,360

2,000

1,090

998

2,180

1,727

1,260

1,136

5,270

5,251

1,110

1,077

4,760

4,781

1,600

1,552

836

833

1,070

1,100

4,100

3,913

Area

Property nameSub-central
Tokyo

Address

COMFORIA SHINAGAWA EAST

1-20-8 Kitashinagawa, Shinagawa-ku, Tokyo

COMFORIA OJIMACOMFORIA OMORI TROIS

4-8-10 Ojima, Koto-ku, Tokyo
3-36-7 Omorikita, Ota-ku, Tokyo
Subtotal

COMFORIA KOMAE

3-9-5 Iwato Kita, Komae-shi, Tokyo

COMFORIA
YOKOHAMAKANNAI

2-8-15 Okinacho, Naka-ku, Yokohama-shi,
Kanagawa

COMFORIA ICHIKAWAMYODEN

1-9-10 Shioyaki, Ichikawa-shi, Chiba

COMFORIA YATSUKA

3-38-3 Sezaki, Soka-shi, Saitama

COMFORIA SHINKOYASU

2-216-2 Koyasudori, Kanagawa-ku,
Yokohama-shi, Kanagawa

COMFORIA SHIN-OSAKA

1-21-24 Higashi-Nakajima,
Higashi-Yodogawa-ku, Osaka-shi, Osaka

COMFORIA SHINSAKAE

2-28-18 Shinsakae, Naka-ku, Nagoya-shi, Aichi

COMFORIA KITAHORIE

3-12-2 Kita-Horie, Nishi-ku, Osaka-shi, Osaka

COMFORIA KITASANJO

2-2-51 Kita-Sanjo Higashi, Chuo-ku,
Sapporo-shi, Hokkaido

Tokyo metropolitan area

Property nameBook value(millions ofyen) (Note 2)

Address

Ownership form
Beneficial
interest in realestate trust
Real estate
Real estate
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Subtotal

Other major cities

Sub-central Tokyo

Area

Appraisalvalue at end of
period(millions ofyen) (Note 1)(Note 1)

(Note 2)

Subtotal
Total

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Beneficial
interest in realestate trust

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Book value(millions ofyen) (Note 2)

1,480

1,595

2,150
893
90,404

2,271
933
78,380

544

423

1,260

949

746

620

727

634

1,200

1,080

4,477

3,708

2,760

2,391

1,840

1,722

1,070

1,065

905

699

6,575
189,828

5,879
166,535“Appraisal value at end of period” indicates the appraisal value by a real estate appraiser (based on real estate appraisal reports or research reports
prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sōgō Appraisal Co., Ltd., Morii Appraisal &Investment Consulting, Inc. and Japan Valuers Co., Ltd., with the account closing date as the date of value estimate), pursuant to the method of asset
appraisal stipulated in the regulations of the Investment Corporation as well as the “Ordinance on Accountings of Investment Corporations” (Cabinet
Office Ordinance No. 47 of 2006).
“Book value” indicates the acquisition price (including miscellaneous expenses related to the acquisition) as of the end of the 12th Fiscal Period (July31, 2016) minus accumulated depreciation, and does not include construction in progress or construction in progress in trust.

- 14 33

The overview of the rental business by assets under management of the Investment Corporation is as follows.

Area

Property name

Number oftenants(at end of
period)(Note 1)COMFORIA NIHONBASHININGYOCHOCOMFORIA WASEDACOMFORIA SHIMOOCHIAICOMFORIA HIGASHINAKANOCOMFORIA GINZA EASTCOMFORIA AZABUDAICOMFORIA SHIBAKOENCOMFORIA NISHIAZABUCOMFORIA MINAMIAOYAMACOMFORIA MINAMIAOYAMADEUXCOMFORIA NISHIWASEDACOMFORIA DAIKANYAMA (Note 3)
COMFORIA HARAJYUKU NORD

Sub-central Tokyo

Central Tokyo(Note 3)

COMFORIA HARAJYUKUCOMFORIA MITA NORTHCOMFORIA SHIBAURABOWHOUSECOMFORIASHIROKANETAKANAWACOMFORIA NIHONBASHININGYOCHO EASTCOMFORIA ATAGOCOMFORIA KUDANCOMFORIA NIHONBASHININGYOCHO NORTHCOMFORIA SHINKAWACOMFORIA AKASAKACOMFORIA MITA EASTCOMFORIA SHIBAURA CANALCOMFORIA KITASANDOCOMFORIA YOYOGIUEHARACOMFORIA SASAZUKACOMFORIA SHINJUKUGYOEN II
COMFORIA
ICHIGAYAYANAGICHOCOMFORIA KAGURAZAKACOMFORIA NIBANCHOCOMFORIA NISHISHINJUKUCOMFORIA KANDAJINBOCHOCOMFORIA NIHONBASHICOMFORIA TAMACHICOMFORIA AZABUJUBANCOMFORIA SHINJUKUGYOEN I
COMFORIA KAGURAZAKA
DEUXCOMFORIA AZABU EASTCOMFORIA SHINJUKUEASTSIDE TOWER
Subtotal
COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATA

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

Number oftenants(at end of
period)(Note 1)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)

Area

Property name

Number oftenants(at end of
period)(Note 1)

100.0

58,052

1.2

1

97.8

58,017

0.9

1
1
1
1
1
1
1
1

96.9
97.7
95.2
99.0
95.9
93.2
100.0
95.1

65,89045,37020,270117,197
21,772
48,69725,65941,166

1.3
0.9
0.4
2.4
0.4
1.0
0.5
0.8

1
1
1
1
1
1
1
1

96.9
95.5
96.9
98.7
100.0
97.9
100.0
100.0

67,19245,47021,850113,622
22,65949,45625,23943,084

1.0
0.7
0.3
1.7
0.3
0.8
0.4
0.7

1

100.0

11,334

0.2

1

100.0

11,595

0.2

1
–

93.0
–

57,62525,563

1.2
0.5

1
–

96.7
–

59,535
–

0.9
–

–

–

8,654

0.2

–

–

–

–

1
1

95.9
96.2

122,561
30,337

2.5
0.6

1
1

94.5
97.1

122,420
30,795

1.9
0.5

1

100.0

93,693

1.9

1

96.3

100,046

1.5

1

92.2

42,032

0.8

1

94.7

43,147

0.7

1

98.2

65,880

1.3

1

93.0

66,468

1.0

1
1

97.5
83.8

27,60837,711

0.6
0.8

1
1

97.5
100.0

29,52040,488

0.5
0.6

1

100.0

35,403

0.7

1

94.4

36,014

0.6

1
1
1
1
1
1
1
1

98.3
100.0
95.5
99.0
93.7
96.4
98.9
95.5

57,84764,74898,34953,724
126,505
50,11863,672
56,838

1.2
1.3
2.0
1.1
2.6
1.0
1.3
1.1

1
1
1
1
1
1
1
1

100.0
97.5
96.5
98.9
96.1
98.1
98.9
97.4

58,77459,56096,66753,665
134,171
50,76065,815
56,115

0.9
0.9
1.5
0.8
2.1
0.8
1.0
0.9

1

92.3

50,801

1.0

1

93.6

50,621

0.8

1
1
1
1
1
1
1
1

94.3
86.5
96.3
95.2
97.1
96.1
96.4
98.3

22,85046,80343,73842,09662,93496,224
41,72240,795

0.5
0.9
0.9
0.8
1.3
1.9
0.8
0.8

1
1
1
1
1
1
1
1

100.0
98.0
93.6
90.4
98.6
100.0
96.4
98.3

23,75649,71445,41042,11762,453
95,541
44,233
43,206

0.4
0.8
0.7
0.6
1.0
1.5
0.7
0.7

1

96.0

41,424

0.8

1

100.0

40,926

0.6

1

93.4

39,568

0.8

1

98.8

70,240

1.1

–

–

–

–

1

94.4

1,402,125

21.5

1
1

96.2
98.3

2,103,245
58,719

42.4
1.2

2
1

96.1
98.2

3,532,505
58,489

54.1
0.9

1

97.9

42,741

0.9

1

98.6

45,041

0.7

1
1
1
1

93.2
90.3
98.4
96.6

30,10030,34492,28865,014

0.6
0.6
1.9
1.3

1
1
1
1

98.3
93.4
95.9
98.2

31,28729,98392,90367,731

0.5
0.5
1.4
1.0

COMFORIA OYAMACOMFORIA
KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWACOMFORIA KOISHIKAWACOMFORIA SENGOKUCOMFORIA
DAIKANYAMAAOBADAICOMFORIA IKEBUKUROCOMFORIA
RYOGOKUISHIWARA
COMFORIA ASAKUSABASHI
DEUX
COMFORIA OSHIAGE
COMFORIA
HONJOAZUMABASHICOMFORIA
KIYOSUMISHIRAKAWA TROISCOMFORIA MONZENNAKACHOCOMFORIA HIMONYACOMFORIA MISYUKUCOMFORIA GAKUGEIDAIGAKUCOMFORIA HIGASHINAKANODEUXCOMFORIAHIGASHIIKEBUKURO WEST
COMFORIA RYOGOKU DEUXCOMFORIA OMORI DEUXCOMFORIA MACHIYACOMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH
COMFORIA TOYOSUCOMFORIA
SUMIDA-TACHIBANACOMFORIA UENOHIROKOJI
COMFORIA KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOENCOMFORIA MEGUROCHOJAMARUCOMFORIA NISHIMAGOMECOMFORIAHIGASHIIKEBUKURO EASTCOMFORIAHIGASHIIKEBUKUROCOMFORIA KOMABACOMFORIA KINSHICHOCOMFORIA
MINAMISUNAMACHICOMFORIAHIGASHISHINAGAWACOMFORIA MEGUROYAKUMOCOMFORIA YOGACOMFORIA
ITABASHINAKAJUKUCOMFORIA SHINAGAWA EASTCOMFORIA OJIMACOMFORIA OMORI TROIS
Subtotal

12th Fiscal Period(from February 1, 2016 to July 31, 2016)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

(Note 2)

1

- 15 34

11th Fiscal Period(from August 1, 2015 to January 31, 2016)

12th Fiscal Period(from February 1, 2016 to July 31, 2016)

Sub-central Tokyo

11th Fiscal Period(from August 1, 2015 to January 31, 2016)

Number oftenants(at end of
period)(Note 1)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

1

95.8

80,336

1.6

1

96.5

77,088

1.2

1

100.0

28,884

0.6

1

95.6

28,848

0.4

1
1
1

93.9
97.4
97.5

39,58822,01153,891

0.8
0.4
1.1

1
1
1

97.9
95.2
96.3

41,79421,08652,990

0.6
0.3
0.8

1

95.4

33,187

0.7

1

100.0

37,662

0.6

1

93.1

21,276

0.4

1

92.8

22,760

0.3

1

100.0

25,590

0.5

1

100.0

25,599

0.4

1

98.2

30,231

0.6

1

100.0

30,966

0.5

1

93.6

25,360

0.5

1

98.0

25,923

0.4

1

98.2

26,149

0.5

1

100.0

28,414

0.4

1

100.0

31,485

0.6

1

95.9

32,454

0.5

1
1
1
1

95.1
91.6
96.5
93.8

89,90442,404
66,92041,157

1.8
0.9
1.3
0.8

1
1
1
1

97.3
85.7
96.6
100.0

91,57742,36765,34638,749

1.4
0.6
1.0
0.6

1

91.7

30,943

0.6

1

96.1

28,807

0.4

1

96.6

154,369

3.1

1

95.5

158,265

2.4

1
1
1
1
1
1

92.5
98.6
97.0
98.2
97.5
91.4

36,09339,60325,69098,02247,87598,056

0.7
0.8
0.5
2.0
1.0
2.0

1
1
1
1
1
1

98.7
98.5
97.0
97.9
98.7
92.1

36,804
39,157
25,689100,574
48,694
99,952

0.6
0.6
0.4
1.5
0.7
1.5

1

92.3

31,231

0.6

1

95.4

31,607

0.5

1
1
1
1
1

100.0
98.8
91.8
97.5
96.7

34,161
86,77046,30050,50632,779

0.7
1.8
0.9
1.0
0.7

1
1
1
1
1

94.1
97.9
100.0
94.5
100.0

34,824
92,47643,86450,16834,353

0.5
1.4
0.7
0.8
0.5

1

97.4

71,201

1.4

1

96.1

72,861

1.1

1

96.3

33,289

0.7

1

96.3

32,222

0.5

1

98.9

65,723

1.3

1

98.9

69,571

1.1

1

100.0

34,886

0.7

1

100.0

35,742

0.5

1
1

95.7
96.3

125,191
34,429

2.5
0.7

1
1

99.0
100.0

132,245
36,843

2.0
0.6

1

95.8

129,017

2.6

1

97.1

130,131

2.0

1

100.0

51,340

1.0

1

98.2

51,154

0.8

1
1

95.3
97.8

25,03430,790

0.5
0.6

1
1

97.2
93.0

25,54731,000

0.4
0.5

1

95.3

116,304

2.3

1

95.2

120,458

1.8

–
–
–
1

–
–
–
96.2

–
–
–
2,507,202

–
–
–
50.6

1
1
1
1

99.0
96.9
88.8
96.8

70,5789,925
4,477
2,637,070

1.1
0.2
0.1
40.4

- 16 35

11th Fiscal Period(from August 1, 2015 to January 31, 2016)
Area

Property name

Number oftenants(at end of
period)Other major
citiesTokyo metropolitan
area(Note 1)COMFORIA KOMAE
COMFORIA
YOKOHAMAKANNAICOMFORIA
ICHIKAWAMYODENCOMFORIA YATSUKACOMFORIA SHINKOYASU
Subtotal
COMFORIA SHIN-OSAKACOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA KITASANJO
Subtotal
Total(Note 1)

(Note 2)
(Note 3)

Occupancy
rate(at end of
period)(%)

Rental revenue(during period)(thousands of yen)

(Note 2)

4. Statement of Renewable Energy Power Generation Facilities

12th Fiscal Period(from February 1, 2016 to July 31, 2016)

Ratio tototal
rentalrevenues(%)

Number oftenants(at end of
period)(Note 1)

Occupancy
rate(at end of
period)(%)

Rental revenue(during period)(thousands of yen)

(Note 2)

Not applicable

Ratio to total
rentalrevenues(%)

5. Statement of Operational License of Public Facilities

6. Statement of Securities Incorporated in the Portfolio

1

100.0

19,138

0.4

1

100.0

19,428

0.3

1

96.7

39,312

0.8

1

90.5

41,129

0.6

1

95.7

24,383

0.5

1

100.0

24,715

0.4

1
1
1
1
1
1
1
1
1

98.4
85.3
94.3
96.3
97.9
91.9
98.4
96.6
96.2

26,85537,054
146,743
89,31858,12432,841
19,639199,923
4,957,115

0.5
0.7
3.0
1.8
1.2
0.7
0.4
4.0
100.0

1
1
1
1
1
1
1
1
2

100.0
86.0
94.1
95.0
97.2
93.2
97.7
95.9
96.3

27,60736,307
149,188
89,15958,86629,32635,723
213,076
6,531,841

0.4
0.6
2.3
1.4
0.9
0.4
0.5
3.3
100.0

“Number of tenants” indicates the number of tenants under a direct lease relationship with the Investment Corporation or the trustee. Therefore, incases where the Investment Corporation or trustee comprehensively leases all of the rooms for rent from each managed property to the master lease
company (hereinafter referred to as the “introduction of a master lease”), and said master lease company subleases each room for rent to end tenants,
the number of tenants will be shown as “1,” and will not include the number of end tenants related to the said sublease. Tokyu Housing Lease
Corporation and Mitsubishi Real Estate Services Co., Ltd. are the two master lease companies hired by the Investment Corporation; therefore, the sumof the number of tenants and subtotal of the number of tenants in Central Tokyo is set as “2.” Even for managed assets where a master lease isintroduced, end tenants who do not accept the introduction of a master lease will be under a direct lease relationship with the Investment Corporation
or trustee. However, the number of said end tenants is not included in the total number of tenants.
“Occupancy rate” is the percentage of rented area vs. the rentable area of each managed asset.
These properties were sold to a third party as of October 19, 2015.

Not applicableNot applicable

7. Details of Specified Transactions
The amount of specified derivative transactions entered into by the Investment Corporation and fair value as of July 31, 2016 are
as follows.
Segment
Over-the-countertransactions

Type

Contract amount (millions of yen)

Receive floating, pay
fixed interest-rate swap
transactions
Total(Note 1)
(Note 2)

Over 1 year

(Note 1)

Fair value(millions of yen)
(Note 2)

61,14555,645–

61,14555,645–The contract amount of the interest-rate swap transactions is based on the notional principal.
The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate. The fair value is omitted fortransactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

8. Other Assets
The beneficiary rights of the trusts in which the properties owned by the Investment Corporation are entrusted are listed on the
aforementioned “3. Statement of Properties Incorporated in the Portfolio.” As of the end of the 12th Fiscal Period, there is no
incorporation in particular of specified assets as principal investment targets by the Investment Corporation, other than assets inthe aforementioned “3. Statement of Properties Incorporated in the Portfolio,” “4. Statement of Renewable Energy Power
Generation Facilities,” “5. Statement of Operational License of Public Facilities” and “6. Statement of Securities Incorporated in
the Portfolio.”

9. Ownership of Assets by Country and Region
Not applicable for countries and regions other than Japan- 17 36- 18 37

Capital Expenditure for Properties Owned

2. Capital Expenditure during the Period

1. Expected Capital Expenditure
Major capital expenditure that accompanies repair works currently planned for assets already acquired (includes assets undermanagement that were acquired after the account closing date) is as follows. The following expected amount of construction work
includes portions that are separately accounted under expenses.
Property name(location)

PurposeScheduled period

Total amountPayment forthe period

Total amountalready paid

Property name(location)

PurposeCOMFORIA HIMONYA(Meguro-ku, Tokyo)

Large-scale repair work

From Mar. 2016
to Jul. 2016

31,314

COMFORIA
DAIKANYAMAAOBADAI(Meguro-ku, Tokyo)

Exterior wall repair work

From May 2016
to Jul. 2016

27,8584,622

PeriodConstruction cost(thousands of yen)

COMFORIA MITA NORTH(Minato-ku, Tokyo)

Large-scale repair work

From Sep. 2016
to Dec. 2016

28,500––

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

Electric water heater
replacement work

From Aug. 2016
to Jan. 201727,160––

COMFORIA
MINAMIAOYAMA(Minato-ku, Tokyo)

Building face plate and signage
installation work

From Feb. 2016
to Mar. 2016

Conversion of a shop into an
officeFrom Sep. 2016
to Sep. 2016

COMFORIA SHINJUKUEASTSIDE TOWER(Shinjuku-ku, Tokyo)

12,940––

COMFORIA KITASANDO(Shibuya-ku, Tokyo)

Washing machine installation place
repair work

From Feb. 2016

COMFORIA KITASANDO(Shibuya-ku, Tokyo)

Entrance improvement work

From Nov. 2016
to Dec. 2016

6,710

–

–

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

From Aug. 2016
to Jan. 2017

From Jul. 2016
to Jul. 2016

6,200

–

–

Waterproofing repair work andpainting of iron section in common
area

3,640

Air conditioner replacement
work

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

Painting of iron section incommon area

From Dec. 2016
to Jan. 2017

Painting of iron section in common
area

From Jun. 2016
to Jul. 2016

2,848

COMFORIA YATSUKA(Soka-shi, Saitama)

COMFORIA MISYUKU(Setagaya-ku, Tokyo)

2,500

–

–

COMFORIA SHIBAURABOWHOUSE(Minato-ku, Tokyo)

Air conditioner replacement work

From Aug. 2016
to Jan. 2017

From Feb. 2016
to Jul. 2016

2,234

Wooden flooring installation
work

COMFORIA GINZA EAST
(Chuo-ku, Tokyo)

2,400

–

–

COMFORIA SENGOKU(Bunkyo-ku, Tokyo)

Wooden flooring installation work

COMFORIA KITASANDO(Shibuya-ku, Tokyo)

Washing machine installation
place repair work

From Aug. 2016
to Jan. 2017

2,400

–

–

COMFORIA SHIN-OSAKA(Higashi-Yodogawa-ku,
Osaka-shi, Osaka)

From Oct. 2016
to Nov. 2016

Connecting water supply pipe repair
work

From Jul. 2016
to Jul. 2016

2,041

Painting of iron section incommon area

2,000

–

–

COMFORIA SHINKOYASU(Kanagawa-ku, Yokohama-shi,
Kanagawa)

Replacement of glass used incommon area corridors on 6F
and 7F

Electric water heater replacement work

From Oct. 2016
to Oct. 2016

From Apr. 2016
to Jun. 2016

1,706

COMFORIA HARAJUKU(Shibuya-ku, Tokyo)

1,617

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

COMFORIAGAKUGEIDAIGAKU(Setagaya-ku, Tokyo)

From Nov. 2016
to Dec. 2016

Additional security camera installation
work

From Jun. 2016
to Jul. 2016

1,592

Painting of iron section incommon area

1,600

–

–

COMFORIA SHINJUKUEASTSIDE TOWER(Shinjuku-ku, Tokyo)

Washing machine replacement work

Bathroom dehumidifier
installation work

From Aug. 2016
to Jan. 2017

From Feb. 2016
to Jul. 2016

1,592

COMFORIA KITAHORIE(Nishi-ku, Osaka-shi, Osaka)

COMFORIA IKEBUKURO(Toshima-ku, Tokyo)

1,560

–

–

Elevator parts replacement work

COMFORIA NISHIWASEDA(Shinjuku-ku, Tokyo)

Painting of iron section incommon area

From Dec. 2016
to Jan. 2017

COMFORIA OSHIAGE(Sumida-ku, Tokyo)

1,500

–

–

COMFORIA
SHIMOKITAZAWA(Setagaya-ku, Tokyo)

2F rooftop waterproofing
repair work

From Nov. 2016
to Nov. 2016––

Bathroom dehumidifier installation
work

From Feb. 2016
to Jul. 2016

1,508

1,500

COMFORIA KITAHORIE(Higashi-Yodogawa-ku, Osaka-shi,
Osaka)

COMFORIA
SHIMOKITAZAWA(Setagaya-ku, Tokyo)

Elevator parts replacement work

From Oct. 2016
to Oct. 2016

From Jul. 2016
to Jul. 2016

1,493

Increased pressure supply
pump installation work

COMFORIA KITASANDO(Shibuya-ku, Tokyo)

1,270

–

–

Washing machine replacement work

ITV equipment replacement
work

From Oct. 2016
to Oct. 2016

From Apr. 2016
to Jul. 2016

1,432

COMFORIA SHINJUKUEASTSIDE TOWER(Shinjuku-ku, Tokyo)

COMFORIASHIROKANETAKANAWA(Minato-ku, Tokyo)

1,213

–

–

Pre-fabricated bath renewal work

COMFORIA YATSUKA(Soka-shi, Saitama)

Painting of parking lot
equipment

From Dec. 2016
to Jan. 2017

COMFORIA SENGOKU(Bunkyo-ku, Tokyo)

1,108

–

–

Entrance repair work

Painting of iron section incommon area

From Dec. 2016
to Jan. 2017

1,070

–

–

From Jul. 2016
to Jul. 2016

1,375

COMFORIA NAKANO(Nakano-ku, Tokyo)

COMFORIA YOGA
(Setagaya-ku, Tokyo)

COMFORIA GINZA EAST
(Chuo-ku, Tokyo)

Air conditioner replacement
work

From Aug. 2016
to Jan. 2017––

Painting of iron section in common
area

From Jun. 2016
to Jul. 2016

1,255

1,010

COMFORIA NIBANCHO(Chiyoda-ku, Tokyo)

COMFORIA
KIYOSUMISHIRAKAWA
SOUTH(Koto-ku, Tokyo)

COMFORIA SHIBAKOEN(Minato-ku, Tokyo)

Painting of iron section in common
area

1,201

Painting of iron section incommon area

From Oct. 2016
to Nov. 2016

From May 2016
to Jun. 2016

1,000

COMFORIA AZABUJUBAN(Minato-ku, Tokyo)

Painting of iron section in common
area

From Jun. 2016

- 19 38

Expected amount of construction work
(thousands of yen)

The overview of main construction works corresponding to capital expenditure that took place in the 12th Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 12th Fiscal Period was ¥131,836
thousand. Together with repair expenses of ¥188,075 thousand that were classified as expenses for the 12th Fiscal Period,
construction works totaling ¥319,912 thousand were carried out.

–

–

–

–

to Jul. 2016

From Jun. 2016
to Jul. 2016

From Jun. 2016
to Jun. 2016

From Jun. 2016
to Jul. 2016

to Jul. 2016

4,005

2,184

1,524

1,390

1,116

- 20 39

Property name(location)

PurposeConstruction cost(thousands of yen)

PeriodCOMFORIA SHINJUKUGYOEN II Painting of iron section in common(Shinjuku-ku, Tokyo)
area

From May 2016
to Jun. 2016

COMFORIA
DAIKANYAMAAOBADAI(Meguro-ku, Tokyo)

Washing machine replacement work

From Feb. 2016
to Jul. 2016

COMFORIA
DAIKANYAMAAOBADAI(Meguro-ku, Tokyo)

Automatic door security enhancement
work

From Jul. 2016
to Jul. 2016

COMFORIA OMORI DEUX
(Ota-ku, Tokyo)

Automatic door security enhancement
work

From Jul. 2016

COMFORIA IKEBUKURO(Toshima-ku, Tokyo)

Washroom repair work

From Jun. 2016
to Jul. 2016

1,054

COMFORIA NIHONBASHININGYOCHO EAST
(Chuo-ku, Tokyo)

Non-touch lock control panel
replacement work

From Apr. 2016
to Apr. 2016

1,031

Other properties, etc.

Automatic door security enhancement
work, etc.

From Feb. 2016
to Jul. 2016

27,492

1,116

Status of Expenses and Liabilities
1. Statement of Expenses Related to Investments

1,074

Item

11th Fiscal Period
From Aug. 1, 2015 to Jan. 31, 2016

Asset management fee (Note)
1,063
1,063

to Jul. 2016

Total

332,987(Thousands of yen)
12th Fiscal Period
From Feb. 1, 2016 to Jul. 31, 2016
345,066

Asset custody fee

5,918

5,926

Administrative service fees

24,97425,313

Directors’ compensation
Other expenses
Total

3,600

3,600

176,307

208,565543,788588,471(Note) In addition to the amount stated above, asset management fees amounting to ¥25,600 thousand and ¥103,230 thousand in the 11th Fiscal Period and 12th
Fiscal Period, respectively, related to the acquisition of property are incorporated in the book value of each property, as well as ¥24,450 thousand intransfer fees related to the sale of property in the 11th Fiscal Period.

131,836

3. Money Reserved for Long-Term Repair Plans
From the cash flows during the fiscal period, the Investment Corporation sets aside reserves for repairs, which are to be(Thousands of yen)appropriated for repairs in the medium to long term.
8th Fiscal Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

From Feb. 1, 2014
to Jul. 31, 2014

From Aug. 1, 2014
to Jan. 31, 2015

From Feb. 1, 2015
to Jul. 31, 2015

From Aug. 1, 2015
to Jan. 31, 2016

From Feb. 1, 2016
to Jul. 31, 2016

Balance of reserves at the
beginning of period

175,529

232,973

248,938

313,837

327,081

Amount of reserves
during period

144,738

239,628

188,329

188,418

232,577

Reversal of reserves
during period

87,293

223,663

123,430

175,173

180,771

Amount carried forward
to next period

232,973

248,938

313,837

327,081

378,887

Fiscal period- 21 40- 22 41

2. Loan Status
The status of loans as of July 31, 2016 is as follows.

LenderDevelopment Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Limited
The Tokyo Tomin Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
The Tokyo Tomin Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Trust & Banking, Co., Ltd.
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The 77 Bank, Ltd.
The Daishi Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Balance atBalance atthethe end of
Drawdown beginningcurrentof current
perioddate
period(millions(millions ofof yen)yen)

3,570
Mar. 23,2011

Mar. 23,2011

Feb. 3,2012

Sep. 4,2013

Sep. 30,
2013

Sep. 30,
2013
Feb. 4,2014

Feb. 4,2014

Feb. 4,2014(Note 2)––

1.34500

1,785
1,000
3,570
3,570

–
–
3,570
3,570

1.03715
1.037150.70469
0.70469

3,570

3,570

0.70469

1,785
1,090
1,090
1,090

1,785
1,090
1,090
1,090

0.70469
1.41200
1.41200
1.41200

1,090

1,090

1.41200

1,090

1,090

1.41200

550
300

550
300

1.41200
1.41200

2,000

2,000

0.79500

1,350

1,350

0.67075

1,350

1,350

0.67075

3,570

1.33500

1,350

1,350

0.67075600

600

0.67075

1,350

1,350

0.90487

2,000
1,500
1,000
500
500
1,000
1,000
1,000

2,000
1,500
1,000
500
500
1,000
1,000
1,000

0.379900.379900.379900.379900.379900.60700
0.60700
0.60700

1,000

1,000

0.60700

1,000

1,000

0.60700

500
1,000
1,000
1,000

500
1,000
1,000
1,000

0.60700
0.882400.882400.88240

1,000

1,000

0.88240

1,000

1,000

0.88240500

500

0.88240- 23 42

Averageinterest
rate (%)

Maturity Repayment
date
methodMar. 23,
2016

Mar. 23,
2019

Lump-sum
repayment

Lump-sum
repayment

Use offunds(Note 4)(Note 4)

Remarks

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Sep. 29,2017

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Aug. 31,2018

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Mar. 30,
2018

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Sep. 30,
2019

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Jan. 31,2017

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Jan. 31,2019

Jan. 31,2021

Lump-sum
repayment

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Long-term loans (Note 1)

Long-term loans (Note 1)

Type

Type

LenderDevelopment Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Shinkin Central Bank
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Drawdown
dateJun. 30,
2014

Jun. 30,
2014

Feb. 3,2015

Feb. 3,2015

Feb. 3,2015

Feb. 3,
2015

Nov. 30,
2015

Balance atthebeginningof current
period(millionsof yen)Balance atthe end ofcurrent
period(millionsof yen)

670
670
670

670
670
670

0.601500.601500.60150670

670

0.60150670

670

0.60150

350
910
910
910

350
910
910
910

0.60150
0.90100
0.90100
0.90100

910

910

0.90100

910

910

0.90100

450
750
750
750
600
600
600

450
750
750
750
600
600
600

0.90100
0.308200.308200.308200.69250
0.69250
0.69250600

600

0.69250600

600

0.69250

300
620
620
620

300
620
620
620

0.69250
0.79875
0.79875
0.79875620

620

0.79875620

620

0.79875

310
620
620
620

310
620
620
620

0.79875
1.04200
1.04200
1.04200

620

620

1.04200

620

620

1.04200

310
440
440

310
–
–

1.04200
0.33000
0.33000440–

0.33000

Averageinterest
rate (%)(Note 2)440–0.33000220–

0.33000

Maturity
date

Repayment
methodUse offunds

Remarks

Jun. 30,
2020

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Jun. 30,2022

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Mar. 30,
2018

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Jan. 31,2022

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Jan. 31,2023

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Jan. 31,2025

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Nov. 30,
2016(Note 3)- 24 43

Long-term loans (Note 1)

Type

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
The Tokyo Tomin Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking Corporation
Total(Note 1)
(Note 2)
(Note 3)(Note 4)

Drawdown
dateFeb. 2,
2016

Feb. 2,
2016

Feb. 2,
2016

Feb. 2,
2016

Mar. 23,
2016

Mar. 23,
2016

Jun. 30,
2016

Balance atthebeginningof current
period(millionsof yen)Balance atthe end ofcurrent
period(millionsof yen)

–
–

790
790

0.26311
0.26311–790

0.26311(Note 2)–790

0.26311

–
–
–
–

390
360
360
360

0.26311
0.583400.583400.58340–360

0.58340–360

0.58340

–
–
–
–

200
420
420
420

0.583400.62460
0.62460
0.62460–420

0.62460–420

0.62460

–
–
–
–

230
490
490
490

0.62460
0.677450.677450.67745–490

0.67745–490

0.67745

–
–

220
1,570

0.677450.27125–

1,570

0.27125

–
–
–

1,000
785
2,000

0.27125
0.27125
0.61950–

2,000

0.61950

–
–

1,000
1,290

0.619500.23364–1,290

0.23364–
76,270640
88,0600.23364

3. Investment Corporation Bonds
Maturity
date

Repayment
methodUse offunds

Remarks

The status of investment corporation bonds as of July 31, 2016 is as follows.

Issue
Feb. 28,2017

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

1st Unsecured Bond
(Note 1)

Issue
date

Balance atthe beginningof current
period(millions ofyen)Amountincreased incurrent
period(millions ofyen)Amountdecreased incurrent
period(millions ofyen)

Balance atthe end ofcurrent
period(millions ofyen)Jul. 30,
2014

3,000

–

–

3,000

3,000

–

–

3,000

Total
(Note 1)
(Note 2)Mar. 31,2023

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Couponrate (%)

0.64000

Maturity Repayment
date
methodUse offunds

SecurityJul. 30,2021(Note 2)

UnsecuredLump-sum
repayment

The bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are appropriated to the acquisition of real estate in trust and the repayment of some of the existing borrowings.

4. Short-Term Investment Corporation Bonds
Not applicable

5. Investment Unit Acquisition Rights
Not applicable
Aug. 31,2023

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Purchase and Sale during the Period
1. Purchase and Sale of Properties and Asset Backed Securities
Acquisition
Property nameFeb. 29,2024

Mar. 31,2021

Lump-sum
repayment

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Lump-sum
repayment(Note 4)

Jun. 30,
2017

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Acquisition price(millions of yen)

Sale date

Book value(millions ofyen)

Gain on sale(millions ofyen)

COMFORIA
SHINAGAWA EAST

Feb. 2, 2016

1,430

–

–

–

–

COMFORIA SHINJUKUEASTSIDE TOWER

Feb. 2, 2016

13,264––––

COMFORIA OJIMA

Jun. 30, 2016

2,110

–

–

–

–

COMFORIA OMORI
TROISJun. 30, 2016

866

–

–

–

–

–

17,670

–

–

–

–

Total
Mar. 31,2025

Acquisition date

Sale
Sale price(millions ofyen)(Note) The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property tax, city
planning tax, consumption tax and local consumption tax.

2. Purchase and Sale of Other Assets
Main assets other than the above properties and asset backed securities are bank deposits or bank deposits within trust assets.

Long-term loans include the current portion of long-term loans payable.
Average interest rates consist of the borrowing rates for each loan agreement rounded to the fifth decimal place. Furthermore, the stated rate for loans
for which interest-rate swap transactions were carried out to avoid interest rate risk takes into account the effect of the interest-rate swap.
The full amount was repaid before maturity on February 2, 2016.
The usage of funds includes purchasing properties in trust and the repayment of existing loans.

- 25 44

Averageinterest
rate (%)- 26 45

3. Appraisals of Specified Assets(2) Amount of commission paid

(1) Real estate, etc.
Acquisitionor saleType of asset

Property nameAcquisition
Acquisition or price or saleprice (millions
sale dateof yen) (Note 1)

Real estate appraisal
Appraisalvalue(millions ofyen)

Appraisalcompany(Note 2)

Date ofvaluation

Acquisition

Beneficial
interest in realestate trust

Acquisition

Beneficial
interest in realestate Trust

COMFORIA SHINJUKUEASTSIDE TOWER

Feb. 2, 2016

13,264

13,500(1)

Oct. 31, 2015

Acquisition

Real estate

COMFORIA OJIMA

Jun. 30, 2016

2,110

2,150

(2)

May 31, 2016

Real estate

COMFORIA OMORI
TROISJun. 30, 2016

866

893

(1)

May 31, 2016

Acquisition(Note 1)
(Note 2)

COMFORIA
SHINAGAWA EAST

Feb. 2, 2016

1,430

1,440

(1)

Oct. 31, 2015

The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property
tax, city planning tax, consumption tax and local consumption tax.
The appraisal companies handling the real estate appraisal of each property are (1) Japan Real Estate Institute and (2) The Tanizawa Sōgō
Appraisal Co., Ltd.

(2) Other
Of the transactions carried out by the Investment Corporation that were deemed to require an appraisal pursuant to theprovisions of Article 201 of the Investment Trust Act, the Investment Corporation has entrusted the appraisals to the Akira
Sugai Certified Public Accountant Office in respect to the transactions other than those shown in the aforementioned “(1)Real estate, etc.” The transactions that were deemed to be subject to the appraisals during the period between February 1,
2016 and July 31, 2016 were five interest-rate swap transactions for which the Investment Corporation received an appraisal
report on the transactions including the names of transaction counterparties, currency type, contractual interest rates,transaction period, and other details of the interest-rate swap transactions.

Category

Property management
entrustment costs
Marketing-related
expenses
Other expenses related
to rent businessTotal amount ofcommission paid(A) (thousands ofyen)

Breakdown of transaction with related parties
Amount of payment(B) (thousands ofyen)

Percentage of total
amount B/A (%)

331,163

55.1

22,970

3.8

TOKYU COMMUNITY CORP.

3,370

0.6

Tokyu Livable, Inc.

1,367

0.8

441

0.3

Tokyu Sports Oasis, Inc.

7,339

4.9

TS Community Co., Ltd.

2,666

1.8

Payee
Tokyu Housing Lease Corporation

601,432 TS Community Co., Ltd.
168,957
149,762

Tokyu Resort Service Co., Ltd.

(3) Major payments to other related parties
Tokyu Homes Corporation¥34,808 thousand (repair work)
EWEL, Inc.
¥2,354 thousand (system usage, etc.)
TS Community Co., Ltd.
¥1,408 thousand (repair work)
TC-forum Co., Ltd.
¥695 thousand (venue rental)
Tokyu Community Corp.
¥252 thousand (repair work)

5. Transactions with Asset Management Companies related to Concurrent Operations Carried Out by the AssetManagement Company
The Asset Management Company (TLC Comforia Investment Management INC.) is not concurrently engaged in type I financial
instruments business, type II financial instruments business, realty business or specified real estate cooperative business.

4. Transactions with Related Parties(1) Information on transaction
Category

Purchase and sales amount
Purchase amount

Sales amount¥17,670,000 thousand¥－ thousand

Tokyu Land Corporation¥14,694,000 thousand (83.2%)¥－ thousand

(－ %)

Total

¥14,694,000 thousand (83.2%)¥－ thousand(－ %)Total amount
Breakdown of transactions between related parties(Note) The term “Related parties” refers to related parties defined in Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations as well as related parties of the Investment Corporation prescribed in Article 26, Paragraph 1, Item 27 of theRegulations Concerning Investment Reports of Investment Trusts and Investment Corporations issued by the Investment Trusts Association,
Japan. Descriptions are included with regard to related parties that fall under any of these and that had transactions or paid commissions, etc.
during the 12th Fiscal Period. (The same shall apply in “(2) Amount of commission paid” and “(3) Major payments to other related parties”
below.)- 27 46- 28 47

Accounting Status(2) Board of Directors of the Investment Corporation
The main overviews of the major conclusion and change of contracts that were approved by the Board of Directors of theInvestment Corporation during current period are as follows.

1. Assets, Liabilities, Principal and Profit/LossApproval date

Please refer to “1. Balance Sheets,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statementsof Cash Distributions,” “5. Statements of Cash Flows,” and “6. Notes.”

Matter

2. Changes in the Calculation Method of Depreciation
Not applicable

April 28, 2016

3. Changes in the Appraisal Method of Real Estate, etc.
Not applicable

3.

Other
1.

Beneficiary Certificates of Investment Trusts Established by Own Company
Not applicable

Disclosure on Overseas Property Owning Corporations
Not applicable

4. Disclosure on Real Estate Owned by Overseas Property Owning Corporations
Not applicable

2. Notices(1) Unitholders’ Meeting
The fourth unitholders’ meeting was held on April 22, 2016. A summary of matters that were approved at the unitholders’ meetingis as follows:
AgendaSummary
Agendum 1: Partial Amendment to the Articles
A summary of amendments to the Articles of Incorporation is as follows:of IncorporationTo change the address of the head office of the Investment Corporationfrom Shibuya-ku, Tokyo to Minato-ku, Tokyo as of the date of therelocation of the head office decided at the meeting of the Board of
Directors held by May 31, 2016.

To establish the necessary provisions to add renewable power generation
facilities as investment targets for the Investment Corporation and amend
related wording following the addition of assets that correspond to
specified assets due to the amendment to the Order for Enforcement of
the Act on Investment Trusts and Investment Corporations.

To change the provisions to enable the distribution of money in excess ofearnings with the aim of alleviating the taxation burden of the Investment
Corporation following the amendment of the Act on Investment Trusts
and Investment Corporations, Ordinance on Accounting of Investment
Corporations and the Act on Special Measures Concerning Taxation, withregard to the issue of differences in accounting and tax treatment(discrepancy between tax and accounting profits) at investment
corporations.
To add asset management fees IV for the purpose of clarifying fees andthe timing of such payment in cases where the Investment Corporation
inherits the assets of another investment corporation which is acounterparty of a merger between the Investment Corporation and anotherinvestment corporation.
To clarify that the Investment Corporation bears the costs of issuing
subscription rights for new investment units.
To amend necessary wording and expressions, etc. in order to haveconsistency with laws and regulations, etc. to be applied to the Investment
Corporation and clarify provisions.
Agendum 2: Appointment of an Executive
Hiroyuki Tohmata was appointed as Executive Director.
Director
Agendum 3: Appointment of an Alternate
Takehiro Izawa was appointed as Alternative Executive Director.
Executive Director
Agendum 4: Appointment of two Supervisory
Yoshihiro Kataoka and Koji Yamamoto were appointed as Supervisory
Directors
Directors.

- 29 48

Change in asset management
consignment contract

Overview
In response to the approval of changes in the stipulations related toasset management fees at the fourth unitholders’ meeting of theInvestment Corporation, the Board of Directors of the Investment
Corporation approved the addition of asset management fees IV to the
management fees stipulated in the original contract as compensation
for asset management services in the asset management consignment
agreement contract (including later changes) which was entered into
by and between the Investment Corporation and the AssetManagement Company as of June 14, 2010.

5. Other
Figures in this material are rounded down (values) and rounded to the nearest decimal place (percentages) unlessotherwise indicated.

- 30 49

III Financial Section
II. Financial Section
1. [Balance Sheets]

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets-150(Thousands of yen)(Thousands of yen)
11th Fiscal Period(As of January 31, 2016)

12th Fiscal Period(As of July 31, 2016)

5,628,757
4,703,318
7,635
14,293–
9
10,354,013

4,665,098
6,071,996
6,573
157,975
89,406605
10,991,655

667,564(31,715)
635,849
5,927
(661)
5,266
–
–
–
431,262
64,615,063(4,551,429)
60,063,634
821,638(143,891)
677,746
1,081,784(119,444)
962,339
73,815(23,088)
50,726
85,109,790
147,936,616

1,876,339(44,450)
1,831,888
21,514(1,003)
20,51017,687(91)
17,5962,401,273
79,162,090(5,485,708)
73,676,381
1,061,875(172,188)
889,686
1,450,501(145,083)
1,305,418
95,377(30,055)
65,321
85,109,790
165,317,869

265,279
16,653281,932

1,217,703
17,731
1,235,435

10,129602,353
612,482
148,831,031

1,507,194
826,889
2,334,083
168,887,388

45,925
14,88360,808159,245,853

51,646
13,50965,155
179,944,200

11th Fiscal Period(As of January 31, 2016)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

12th Fiscal Period(As of July 31, 2016)

270,460
17,405,000
32,068108,810629
45,292757,387
2,578
311
18,622,539

476,247
12,270,000
90,015
123,705
7,484–
1,037,971–
2,146
14,007,572

3,000,000
58,865,000
5,015
1,383,447––
63,253,462
81,876,001

3,000,000
75,790,000
17,792
1,893,294
94,006
1,554
80,796,648
94,804,220

75,224,343

82,743,523––

92,17092,1702,148,086

2,304,285

2,148,086
77,372,430

2,396,455
85,139,979(2,578)(2,578)*1 77,369,851
159,245,853––*1 85,139,979
179,944,200

-251

2.

[Statements of Income](Thousands of yen)
11th Fiscal Period(From August 1, 2015
to January 31, 2016)

Operating revenue
Rent revenue - real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Directors’ compensations
Audit fee
Asset custody fee
Administrative service fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

-352

3.

[Statements of Changes in Unitholders’ Equity]
11th Fiscal Period (From August 1, 2015 to January 31, 2016)

12th Fiscal Period(From February 1, 2016
to July 31, 2016)*1 4,772,679*1 6,232,360*1 184,435*1 299,481*2 92,911

5,050,026－
6,531,841*1 1,902,989*1 3,196,903

332,987
3,600
11,664
5,918
24,974
164,6432,446,778
2,603,248

345,066
3,600
13,734
5,926
25,313
194,8313,785,374
2,746,467

856
48
904

1,068
－
1,068

338,388
83,1989,600

309,410
94,895
9,599

1,373

1,373

22,950455,5112,148,641
2,148,641803
6
810
2,147,831
255
2,148,086

19,445434,724
2,312,810
2,312,810
7,648
958
8,606
2,304,20480
2,304,285(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
unitholders’equityDeferred gains
or losses onhedgesTotal valuationand translation
adjustments

Total net assets

(505)

(505)

77,310,252

Unappropriatedretainedearnings(undisposed
loss)

Total surplus

2,086,414

2,086,414

77,310,758

Dividends of surplus(2,086,159)(2,086,159)(2,086,159)(2,086,159)

Profit2,147,831

2,147,831

2,147,831

2,147,831

Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
periodNet changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end of current
period75,224,343–*1

75,224,343(2,073)(2,073)

61,672

61,672

61,672(2,073)(2,073)59,5982,148,086

2,148,086

77,372,430(2,578)(2,578)77,369,851

12th Fiscal Period (From February 1, 2016 to July 31, 2016)(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new
investment units

Voluntary retained
earnings
Unitholders’capitalTotal
Reserve forvoluntary
reduction
retainedentry
earnings
75,224,343––

Dividends of surplus
92,17092,170

ProfitNet changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end of current
periodUnapproTotal
priatedunitholders’retained
equityTotal surplus
earnings(undisposed
loss)
2,148,086

2,148,086

7,519,180

Provision of reserve for
reduction entry

7,519,180*1

82,743,523(2,073)77,372,430

Totalvaluationandtranslation
adjustments

Deferred
gains orlosses onhedges(2,578)(2,578)

Total net
assets77,369,851

7,519,180

7,519,180(2,055,835)(2,055,835)(2,055,835)(2,055,835)(92,170)–––

2,304,204

2,304,204

2,304,204

2,304,204
2,578

2,578

2,578

92,17092,170156,198

248,369

7,767,549

2,578

2,578

7,770,127

92,17092,1702,304,285

2,396,455

85,139,979––

85,139,979

-453

4.

[Statements of Cash Distributions]

5.

Category

11th Fiscal Period(From August 1, 2015
to January 31, 2016)

12th Fiscal Period(From February 1, 2016
to July 31, 2016)

Unappropriated retained earnings¥2,148,086,708¥2,304,285,459

II. Distributions[Distribution per unit]
III. Voluntary retained earnings
Provision of reserve for reduction
entry
IV. Retained earnings carried forward
Method for calculating distributions¥2,055,835,556[¥4,339]¥2,304,092,448[¥4,487]I.

¥92,170,266¥80,886
The Investment Corporation will makecash distributions using accounting profits
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation, in
an amount that exceeds 90% of the“amount of distributable profit” of theInvestment Corporation as set forth in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥2,055,835,556 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings after deducting provision ofreserve for reduction entry as set forth in
Article 66-2 of the Act on Special
Measures Concerning Taxation.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

-554

¥–
¥193,011
The Investment Corporation will makecash distributions using accounting profits
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation, in
an amount that exceeds 90% of the“amount of distributable profit” of theInvestment Corporation as set forth in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥2,304,092,448 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings.
Furthermore, the Investment
Corporation does not pay out dividends
that exceed accounting profits as outlined
in Article 35-2 of the Investment
Corporation’s Articles of Incorporation.

[Statements of Cash Flows](Thousands of yen)
11th Fiscal Period(From August 1, 2015
to January 31, 2016)

Cash flows from operating activities
Profit before income taxes
Depreciation
Borrowing related expenses
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease due to sales of property, plant and equipmentin trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Purchase of intangible assets in trust
Proceeds from collection of lease and guarantee
deposits
Payments for lease and guarantee deposits
Proceeds from tenant leasehold and security deposits
Repayment of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
in trust
Repayment of tenant leasehold and security deposits intrust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

12th Fiscal Period(From February 1, 2016
to July 31, 2016)

2,148,641
824,039
83,1982,312,810
1,020,188
94,895

1,373

1,373

22,950(856)
347,989
4,767
18,234

19,445(1,068)319,009
1,061(141,423)

25,624(89,406)

45,292(45,724)790(280)(3,846)(45,292)
134,329811
15,388
280,584

2,322,939–

4,061
5,799,196856(344,308)
1,742
(845)
5,456,641

1,912
3,924,621
1,068(319,502)–(792)
3,605,394(1,848)(2,747,306)––(3,211,892)(14,956,417)(3,768)(960,990)

60

–

–
759
(6,095)(1,497,065)
13,815(872)

149,346753,276(181,184)(243,243)(2,786,268)(20,107,157)

279,697(280,000)
1,979,684(1,700,000)–(2,084,204)(7,108)(1,811,930)
858,441
9,473,633*1 10,332,075––
23,382,463(11,905,000)
7,494,013(2,055,111)(9,583)
16,906,782
405,019
10,332,075*1 10,737,094

-655

6.
[Notes]<Summary of Significant Accounting Policies>
1. Method of depreciation of(1) Property, plant and equipment (including trust assets)
non-current assets andProperty, plant and equipment are depreciated using the straight-line method overamortization
the estimated useful lives as follows:
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures

2–64 years
2–64 years
10–34 years
3–15 years(2) Intangible assets (including trust assets)
Intangible assets are amortized by the straight-line method.

2.

Accounting policies fordeferred assets

3.

Accounting standards forrevenues and expenses

4.

Method of hedge
accounting(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line
method over the redemption periods.

6.

Other significant
accounting policies utilized
in the preparation offinancial statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities in addition to revenues and expenses of financial assets
held in the form of trust beneficiary interests in real estate and other assets arerecorded in full in the Investment Corporation’s Balance Sheets and Statements ofIncome.
Important line items included in accounting for financial assets and liabilities in
the Investment Corporation’s Balance Sheets are as follows:(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; construction in progress in trust;and leasehold rights in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are excluded from transaction amounts. Non-deductible
consumption taxes applicable to the acquisition of non-current assets, etc. are
included in the cost of acquisition for each asset.

(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method overthree years.
Accounting treatment of fixed property tax, etc.
For property tax, city planning tax, and depreciation asset tax for real estate
properties held, the amounts to be paid for the fiscal periods are calculated out of
the tax amounts decided to be levied and are recorded as expenses related to rent
business.
Of the amounts paid for the acquisition of real estate property or beneficiaryright of real estate in trust, the amounts equivalent to fixed property tax for thecorresponding year are capitalized as part of the acquisition cost of the relevant
property rather than being charged as expenses.
(1) Method of hedge accounting
The deferred hedge method is applied.
However, the special accounting treatment is applied for interest-rate swap
transactions that meet certain criteria.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest expenses on loans payable(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its
investment management guidelines with the objective of hedging interest rate
fluctuation risks and other risks pertaining to borrowings, etc.

5.

Scope of funds (cash andcash equivalents) on theStatements of Cash Flows(4) Method of evaluating the effectiveness of hedging
As for the method of assessing the effectiveness of the hedge, the cumulativechanges in cash flow of the hedged items and hedging instruments are compared
and a judgment is made by verifying the ratio of the changed amount. However, anassessment of the effectiveness of hedging activities is omitted in the case ofinterest-rate swap transactions that meet the requirements for the special treatment.
The funds (cash and cash equivalents) on the Statements of Cash Flows consist of cashon hand and cash in trust, deposits and deposits in trust that are readily available, andshort-term investments with maturities of three months or less from the date of purchasewhich are readily convertible to cash and with insignificant risk of market value
fluctuation.

-756

-857

<Notes to the Balance Sheets>*1. Minimum net assets pursuant to Article 67-4 of the Act on Investment Trusts and Investment Corporations
11th Fiscal Period(As of January 31, 2016)(Thousands of yen)
12th Fiscal Period(As of July 31, 2016)

50,000<Notes to the Statements of Income>*1. Breakdown of real estate rental revenues and expenses

A. Real estate rental revenue
Rent revenue - real estate(Rental revenues, common service
charges)(Parking revenues)
Other lease business revenue(Key money and contract renewal
fees)(Other revenues)
Total real estate rental revenues
B. Real estate rental expenses
Expenses related to rent business(Property management fees andfacility management fees)(Repairs and maintenance)(Land rent)(Tax and public dues)(Insurance)(Utilities)(Marketing-related expenses)(Trust fees)(Depreciation)(Other expenses related to rent
business)
Total real estate rental expenses
C. Income from real estate rental business(A - B)(Thousands of yen)
12th Fiscal Period(From February 1, 2016
to July 31, 2016)

4,681,644

6,088,598

91,035

4,772,679

143,761

184,435
4,957,115

140,838

122,557
61,877

601,432

124,735
2,729
222,958
6,980
62,442
107,334
40,887
821,726

188,075
693,460
242,197
7,044
86,253
168,957
41,373
1,017,498

80,501150,6093,334,938

21,29338,187(2) COMFORIA HARAJYUKU NORD
595,000
532,420

Other sales expenses

7,855

Gain on sales of real estate properties

54,72412th Fiscal Period (From February 1, 2016 to July 31, 2016)
Not applicable-958*1. Total number of authorized
investment units and total number ofinvestment units issued andoutstanding
Total number of authorized investment
units
Total number of investment units issued
and outstanding

12th Fiscal Period(As of July 31, 2016)

8,000,000 units

8,000,000 units

473,804 units

513,504 units<Notes to the Statements of Cash Flows>*1. Reconciliation of balance sheets items to cash and cash equivalents at end of period in the Statements of Cash Flows(Thousands of yen)
11th Fiscal Period
12th Fiscal Period(As of January 31, 2016)(As of July 31, 2016)
Cash and deposits
5,628,757
4,665,098
Cash and deposits in trust
4,703,318
6,071,996
Cash and cash equivalents
10,332,075
10,737,094<Notes to lease transactions>
1. Operating lease transactions (Lessee)
Future minimum lease payments under non-cancelable operating lease transactions
11th Fiscal Period(As of January 31, 2016)–––

2. Operating lease transactions (Lessor)
Future minimum lease payments receivable under non-cancelable operating lease transactions

3,196,903

1,850,000

11th Fiscal Period(As of January 31, 2016)

Due within 1 year
Due after 1 year
Total

3,054,125

1,790,518

Other sales expenses

299,481
6,531,841

1,902,989(Thousands of yen)

Gain on sales of real estate properties

6,232,360

158,642432,693(1) COMFORIA DAIKANYAMA

Revenue from sales of real estate
properties
Costs of sales of real estate properties

50,00011th Fiscal Period(From August 1, 2015
to January 31, 2016)*2. Breakdown of gain on sales of real estate properties
11th Fiscal Period (From August 1, 2015 to January 31, 2016)

Revenue from sales of real estate
properties
Costs of sales of real estate properties<Notes to the Statements of Changes in Unitholders’ Equity>

Due within 1 year
Due after 1 year
Total

11th Fiscal Period(As of January 31, 2016)
60,432
138,878
199,311(Thousands of yen)
12th Fiscal Period(As of July 31, 2016)
1,363,440
82,351,776
83,715,216(Thousands of yen)
12th Fiscal Period(As of July 31, 2016)
162,606
495,713658,320<Notes to financial instruments>
1. Status of financial instruments(1) Policies for financial instruments
With a focus on stability, flexibility and efficiency as the basis of its financial policy, the Investment Corporation procures
funds through borrowings as well as the issuance of investment corporation bonds (including short-term investment
corporation bonds; the same shall apply hereinafter) and investment units among other means with the aim of growing its
investment assets through their acquisition.
The Investment Corporation may enter into derivatives transactions, which shall be executed solely for the purpose ofhedging against interest-rate fluctuations and other risks pertaining to borrowings, etc.
(2) Characteristics and risk profile of each financial instrument and risk management system
The funds for borrowings and investment corporation bonds were mainly appropriated for the acquisition of investment
assets and repayment of borrowings, etc. With regard to liquidity and interest rate fluctuation risks associated with thesefinancing activities, the Investment Corporation endeavors to manage and limit them by considering and implementing
multifaceted funding methods including the utilization of surplus funds and raising funds, etc. from capital markets throughissuance of investment units, etc. while diversifying funding sources. Although loans with floating interest rates are exposed
to a risk of fluctuation in interest payable, the Investment Corporation employs derivative transactions (interest-rate swap
transactions) as hedging instruments in order to avoid interest rate fluctuation risks and fix loan interest payable. For moredetailed information on the method of hedge accounting, hedging instruments, hedged items, hedging policy and theevaluation method for hedge effectiveness, please refer to the previous section “6. Notes: Summary of significant accounting
policies, 4. Method of hedge accounting.”(3) Supplementary note regarding fair value of financial instruments
The fair value of financial instruments presented in this report is based on their market value, and in cases where market
value is not available, reasonably calculated values are presented. Since the calculation of fair value is based on certain
assumptions, fair value could differ depending on the assumptions used.

- 10 59

2.

Fair value of financial instruments
The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of January
31, 2016 are as follows.
(Thousands of yen)
Carrying value
Fair value
Difference(Note 1)

(Note 1)

(1) Cash and deposits

5,628,757

5,628,757–(2) Cash and deposits in trust

4,703,318

4,703,318–(3) Current portion of long-term loans
payable(17,405,000)(17,417,564)

12,564(4) Investment corporation bonds(3,000,000)(3,038,037)

38,037(5) Long-term loans payable(58,865,000)(59,530,149)

665,149(2,578)(2,578)–(6) Derivative transactions

The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of July 31,
2016 are as follows.
(Thousands of yen)
Carrying value
Fair value
Difference(Note 1)

(Note 1)

(1) Cash and deposits

4,665,098

4,665,098–(2) Cash and deposits in trust

6,071,996

6,071,996–(3) Current portion of long-term loans
payable(12,270,000)(12,273,860)

3,860(4) Investment corporation bonds(3,000,000)(3,085,554)

85,554(5) Long-term loans payable(75,790,000)(76,878,753)

1,088,753–––(6) Derivative transactions(Note 1)
(Note 2)

(Note 3)Figures in parentheses indicate liabilities.
Methods to determine the fair value of financial instruments:(1) Cash and deposits and (2) Cash and deposits in trust
Due to their short tenors, the carrying values of these assets are reasonable approximations of their present value and hence are used as theirfair value.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short-term and theircarrying values are good approximations of their fair value, the carrying values are presented as their fair value. However, the fair value offloating-rate long-term loans payable and current portion of long-term loans payable hedged by interest-rate swap transactions subject tospecial accounting treatment (refer to the following section entitled “Notes to derivative transactions”) are calculated by discounting theaggregated principal and interest on such loans, after taking into account the effect of said interest-rate swap transactions, using reasonableestimates of the rates that would be applicable in a similar borrowing.
(4) Investment corporation bonds
The fair value of investment corporation bonds is measured based upon the present value obtained by discounting the total amount ofprincipal and interest at a rate that takes into account the term to maturity and credit risk.
(6) Derivative transactions
Please refer to the following section entitled “Notes to derivative transactions.”
Carrying value of financial instruments whose fair value cannot be reliably measured(Thousands of yen)
11th Fiscal Period
12th Fiscal Period(As of January 31, 2016)(As of July 31, 2016)(1) Tenant leasehold and security deposits(5,015)(Note 4) Redemption schedule for monetary claims (Thousands of yen)
11th Fiscal Period (As of January 31, 2016)
Due in 1 year
or less
Deposits

5,628,757

Deposits in trust

4,703,318

Total

10,332,075

12th Fiscal Period (As of July 31, 2016)
Due in 1 year
or less
Deposits

4,665,098

Deposits in trust

6,071,996

Total

10,737,094(Note 5) Redemption schedule for loans payable and investment corporation bonds (Thousands of yen)
11th Fiscal Period (As of January 31, 2016)
Due in 1 year
Due after 1 year Due after 2 years Due after 3 years
or less
to 2 years
to 3 years
to 4 years
Current portion of
long-term loans
17,405,000–––
payableLong-term loans–
6,300,000
14,400,000
13,845,000
payableInvestment––––
corporation bonds
Total

17,405,000

12th Fiscal Period (As of July 31, 2016)
Due in 1 year
or less
Current portion of
long-term loans
12,270,000
payableLong-term loans–
payableInvestment–
corporation bonds
Total

12,270,000

Due after 4 years
to 5 years

Due after 5 years––

9,200,000

15,120,000–

3,000,000

6,300,000

14,400,000

13,845,000

9,200,000

18,120,000

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

–

–

–

–

–

13,200,000

19,995,000

5,050,000

10,425,000

27,120,000

–

–

–

3,000,000–

13,200,000

19,995,000

5,050,000

13,425,000

27,120,000<Notes to investment securities>
11th Fiscal Period (As of January 31, 2016)
Not applicable
12th Fiscal Period (As of July 31, 2016)
Not applicable<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
11th Fiscal Period (As of January 31, 2016)
Not applicable
12th Fiscal Period (As of July 31, 2016)
Not applicable(17,792)(2) Tenant leasehold and security deposits in(1,383,447)(1,893,294)
trust(1)(2) Fair value of tenant leasehold and security deposits and leasehold and security deposits in trust is not subject to disclosure of fair value, as
these items have no market value and their future cash flows are difficult to reasonably estimate given the fact that although a predetermined
period for each lease contract exists, the actual deposit period cannot be calculated due to possible contract termination, renewal or extension.
(3) Figures in parentheses indicate non-current liabilities.

- 11 60- 12 612.

Transactions subject to hedge accounting
11th Fiscal Period (As of January 31, 2016)
Hedge
accounting
methodType of derivativetransactions

Deferredaccounting
method, inprinciple

Receive floating, pay
fixed interest-rate
swap transactions

Specialtreatment ofinterest-rate
swap
transactions

Receive floating, pay
fixed interest-rate
swap transactions

2.

Contract amount
Hedged items

Maturing after 1
yearLong-term loans
payable(*1)

Long-term loans
payable
(*1)

Total

15,280,000–(Thousands of yen)Calculation
method for
Fair value
applicable fairvalue
Evaluated basedon the fair value
calculated by the(2,578) counterparty of
the contract
using market
interest rate, etc.

51,360,000

38,720,000(*2)

66,640,000

38,720,000(2,578)12th Fiscal Period (As of July 31, 2016)
Contract amountHedge
accounting
methodType of derivativetransactions

Hedged items

Specialtreatment ofinterest-rate
swap
transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-term loans
payable

Total

(*1)

Maturing after 1
year
61,145,000

55,645,000

61,145,000

55,645,000

Fair value(Thousands of yen)Calculation
method for
applicable fair
value

(*2)

Statutory tax rate
(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry
Other
Effective tax rate
3.

Deferred tax assets
Enterprise tax payable
Amortization of leasehold rights
Asset retirement obligations
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax assets, net
Deferred tax liabilities
Property, plant and equipment
corresponding to asset retirement
obligations
Total deferred tax liabilities
Deferred tax liabilities, net- 13 62

12th Fiscal Period(As of July 31, 2016)
32.31

35.36

(30.91)(1.39)
0.03
0.04(35.23)
–
0.24
0.37

Revision of amounts of deferred tax assets and deferred tax liabilities as a result of the change in tax rate due to the amendment ofcorporate tax law, etc.
The Act for Partial Revision of the Income Tax Act, etc. (Act No.15 of 2016) and the Act for Partial Revision of the Local Tax Act,etc. (Act No.13 of 2016) were promulgated on March 31, 2016, and as a result, the corporate tax rate, etc. has been lowered fromfiscal periods beginning on or after August 1, 2016. Accordingly, the effective statutory tax rate used to measure deferred tax
assets and deferred tax liabilities for the current fiscal period has been changed to 34.81% for temporary differences expected to
be settled or realized in the fiscal periods beginning during the period between August 1, 2016 and February 1, 2018 and to34.60% for temporary differences expected to be settled or realized in the fiscal periods beginning on or after August 1, 2018. The
effect of these changes on the financial statements is immaterial.

<Notes to share of profit or loss of investments accounted for under the equity method>
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
12th Fiscal Period (From February 1, 2016 to July 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable
12th Fiscal Period (From February 1, 2016 to July 31, 2016)–<Notes to retirement benefits>
11th Fiscal Period (As of January 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
12th Fiscal Period (As of July 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.

(Thousands of yen)
12th Fiscal Period(As of July 31, 2016)

11th Fiscal Period(As of January 31, 2016)(%)

11th Fiscal Period(As of January 31, 2016)*1 Long-term loans payable include the current portion of long-term loans payable.
*2 Interest-rate swap transactions for which the special treatment is applied are accounted for together with the underlying hedged items. As a result,
their fair value is included in the fair value of items listed under “(3) Current portion of long-term loans payable” and “(5) Long-term loans payable”
in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”<Notes to tax-effect accounting>
1. Components of deferred tax assets and liabilities

Significant differences between the statutory tax rate and the effective tax rate

9
–
–
9
–
9
9

605
2,963
32,52636,095(35,490)605––(1,554)––(1,554)(948)

Attribution

Company’s
name orperson’s
name

Major
unitholder

Tokyu Land
Corporation(Note 1)
(Note 2)
(Note 3)2.

Location

Capital andinvestment(millions ofyen)Type ofbusinessor jobtitle

Ratio ofvotinginterest(held)(%)(Note 1)

Concurrent
positions
held by
officers

Businessrelationship

Shibuyaku,Tokyo57,551Real
estatebusiness

10.06

Yes

Major
unitholder

Relationship
Details oftransactions

Transaction
amount(thousandsof yen)Purchase of
beneficiary
14,694,000
rights of realestate in trust

Account

Period-end
balance(thousandsof yen)––The ratio of voting interest is rounded down to the second decimal place.
In the above amounts, transaction amount does not include consumption taxes, while the period-end balance does include consumption taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.

Affiliated companies and other11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable
12th Fiscal Period (From February 1, 2016 to July 31, 2016)
Not applicable- 14 63

3.

Fellow subsidiary companies and other11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Attribution

Company’s
name orperson’s
name

Major
unitholder’ssubsidiary

Tokyu
Housing
Lease
Corporation

Location

Capital andinvestment(millions ofyen)Line ofbusinessor jobtitle

Ratio ofvotinginterest(held)(%)(Note 1)

Concurrent
positions
held by
officers

BusinessrelationshipShinjukuku,
Tokyo

100

Real
estatebusiness

–

No

Major
unitholder’ssubsidiary

Relationship
Details oftransactions

Transaction
amount(thousandsof yen)Account

Period-end
balance(thousandsof yen)Property
management
contract

305,067

Operatingaccounts
payable54,42612th Fiscal Period (From February 1, 2016 to July 31, 2016)
Attribution

Company’s
name orperson’s
name

Location

Major
unitholder’ssubsidiary

Tokyu
Housing
Lease
Corporation

Shinjukuku,
Tokyo(Note 1)
(Note 2)
(Note 3)

4.

Capital andinvestment(millions ofyen)Line ofbusinessor job
title

100

Real
estatebusiness

Ratio ofvotinginterest(held)(%)(Note 1)

Relationship
Concurrent
positions
held by
officers

Businessrelationship

No

Major
unitholder’ssubsidiary–

Details oftransactions

Property
management
contract

Transaction
amount(thousandsof yen)Account

331,163

Operatingaccounts
payablePeriod-end
balance(thousandsof yen)62,253

The ratio of voting interest is rounded down to the second decimal place.
In the above amounts, transaction amount does not include consumption taxes, while the period-end balance does include consumption
taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.

Directors, major individual unitholders and other11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable
12th Fiscal Period (From February 1, 2016 to July 31, 2016)
Not applicable

148,620,014

148,201,895

Changes during period(418,118)

18,333,677

Balance at end of
period148,201,895

166,535,573

Fair value at end of period

170,697,000

189,828,000(Note 1)
(Note 2)The book value excludes accumulated depreciation from acquisition cost. The book value does not include construction in progress andconstruction in progress in trust.
Among changes in the book value of real estate for rental purposes that occurred during the 11th Fiscal Period, the principal increase consistedof the acquisition of two properties including COMFORIA AZABU EAST and one other property during the 11th Fiscal Period totaling¥2,673,479 thousand, while the principal decrease consisted of the disposition of two properties including COMFORIA DAIKANYAMA andone other property during the 11th fiscal period totaling ¥2,322,939 thousand and depreciation of ¥821,726 thousand. During the 12th Fiscal
Period, the principal increase consisted of the acquisition of four properties including COMFORIA SHINJUKU EASTSIDE TOWER and threeother properties during the 12th fiscal period totaling ¥19,218,757 thousand, while the principal decrease consisted of depreciation of¥1,016,916 thousand.
The fair value at end of period is the appraisal value or the survey value determined by outside appraisers.

<Notes to segment information>(Segment information)
Disclosure is omitted because the property leasing business is the Investment Corporation’s sole business, with no reportablesegment subject to disclosure.

Calculation of the amount of asset retirement obligations
Asset retirement obligations are calculated based on the remaining period of the fixed-term lease (52 years) as the expected periodof use and 1.2% as the discount rate.
Changes in the total amount of asset retirement obligations(Thousands of yen)
12th Fiscal Period(From February 1, 2016
to July 31, 2016)

11th Fiscal Period(From August 1, 2015
to January 31, 2016)
Balance at beginning of period－－

Increase due to purchase of property, plantand equipment－

93,424

Adjustment due to passage of time－582

Balance at end of period－

94,006- 15 64

Balance at beginning of
periodIncome and loss related to real estate for rental purposes, etc. for the 11th Fiscal Period (From August 1, 2015 to January 31,2016) and 12th Fiscal Period (From February 1, 2016 to July 31, 2016) are listed in “Notes to the Statements of Income.”

The Investment Corporation has concluded fixed-term lease contracts with certain landlords, and recognizes asset retirement
obligations concerning the duty of restoration upon the expiry of the lease period with regard to some of these assets.

3.

Book value(Note 3)<Notes to asset retirement obligations>
1. Overview of asset retirement obligations

2.

<Notes to investment and rental properties>
The Investment Corporation owns real estate for rental purposes (including land) in the Tokyo metropolitan area and otherregional areas. The book value, changes during the period and fair value regarding the above real estate for rental purposes are as
follows.
(Thousands of yen)
11th Fiscal Period
12th Fiscal Period(From August 1, 2015
(From February 1, 2016
to January 31, 2016)
to July 31, 2016)(Related information)
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on
the Statements of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of theamount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.
12th Fiscal Period (From February 1, 2016 to July 31, 2016)
1. Information about each product and service
Disclosure is omitted because net sales to external customers of a single product/service category account for over 90% of theoperating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on
the Statement of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of theamount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.

- 16 65

<Notes to per unit information>

Net assets per unit

11th Fiscal Period(From August 1, 2015
to January 31, 2016)¥163,295

12th Fiscal Period(From February 1, 2016
to July 31, 2016)¥165,801¥4,533¥4,489Profit per unit
(Note 1)
(Note 2)7.

(ii) Information on contract amount and fair value of derivative transactions and forward exchange contracts
Information on derivative transactions and forward exchange contracts entered into by the Investment Corporation as ofJuly 31, 2016 is as follows.
(Thousands of yen)Contract amount (Note 1)
Fair value
Classification
Type
Maturing after 1(Note 2)year
Over-the-counter
Receive floating, pay fixed
61,145,000
55,645,000–
interest-rate swap transactionstransactions
Total
61,145,000
55,645,000–

Profit per unit was calculated by dividing profit for the period by the daily weighted average number of investment units issued and outstanding.
Profit per unit after adjusting for diluted units is not included because there were no diluted investment units.
The basis for calculating profit per unit is as follows:

Profit (thousands of yen)Amount not attributable to common
unitholders (thousands of yen)
Profit attributable to common
investment units (thousands of yen)
Average number of investment units
for the period (units)

11th Fiscal Period(From August 1, 2015
to January 31, 2016)
2,147,831

12th Fiscal Period(From February 1, 2016
to July 31, 2016)
2,304,204––

2,147,831

2,304,204

473,804

513,243[Supplementary schedules](i) Supplementary schedule of investment securities
Not applicable(Note 1)
(Note 2)The contract amount of interest-rate swap transactions is based on the notional principal.
Fair value is evaluated based on the value calculated by the counterparty of the contract using market interest rate, etc. Disclosure of fairvalue is omitted for the transactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial
Instruments.

(iii) Condensed supplementary schedule of real estate properties

Intangible
assetsProperty, plant and equipment<Notes to significant subsequent events>
Not applicable(Thousands of yen)

Accumulated depreciation
orBalance at end accumulated
Net balance atof current
amortization Depreciation end of current
periodperiodat end ofduringcurrent
periodperiodAsset type

Balance at
beginning ofcurrent period

Increaseduring period

Decreaseduring period

Buildings

667,564

1,208,774–

1,876,339 

44,45012,735

1,831,888(Note)

5,927

15,586–

21,514

1,003

342

20,510(Note)–

17,687–

17,68791

91

17,596(Note)

431,262

1,970,011–

2,401,273––

2,401,273(Note)

64,615,063

14,547,027–

79,162,090

5,485,708

934,279

73,676,381(Note)

821,638240,236–

1,061,875

172,188

28,296889,686(Note)

1,081,784

368,717–1,450,501

145,083

25,6381,305,418(Note)

73,815

21,561–

95,37730,055

6,967

65,321

Structures
Machinery andequipment
Land
Buildings in
trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures intrust
Land in trust
Total
Leaseholdrights in trust
Other
Total

85,109,790––

85,109,790––

85,109,790

152,806,847

18,389,603–

171,196,451

5,878,581

1,008,350

165,317,869

265,279

960,990–

1,226,269

8,565

8,565

1,217,703

23,134

3,768–

26,903

9,171

2,690

17,731

288,413964,758–

1,253,172

17,737

11,255

1,235,435

Remarks(Note)(Note) Increases during the 12th Fiscal Period are due primarily to the acquisition of real estate for rental purposes. The details are as follows.
(Thousands of yen)

Property name

Increase during
periodCOMFORIA SHINJUKU EASTSIDE TOWER

14,394,950

COMFORIA OJIMA

2,275,048

COMFORIA SHINAGAWA EAST

1,613,427

COMFORIA OMORI TROIS

935,331(iv) Supplementary schedule of other specified assets
Not applicable- 17 66- 18 67

(v) Supplementary schedule of investment corporation bonds
Issuance
date

Bond name
The Investment
Corporation 1st
unsecuredbonds

Balance at
beginningof current
periodJuly 30,
2014

Increaseduringperiod3,000,000

Balanceat end ofcurrent
periodDecreaseduringperiod––(Thousands of yen)
Couponrate (%)

Redemption
date

0.64000

July 30,2021

3,000,000

Use offunds(Note 2)

Classification
Lender

Security

Due after 1 year
to 2 years-

1,000,000––

1,000,000

0.60700

Mizuho Bank, Ltd.

1,000,000––

1,000,000

0.60700

1,000,000––

1,000,000

0.60700

1,000,000––

1,000,000

0.60700

1,000,000––

1,000,000

0.60700

500,000––

500,000

0.60700

Development Bank of Japan Inc.

1,000,000––

1,000,000

0.88240

Mizuho Bank, Ltd.

1,000,000––

1,000,000

0.88240

1,000,000––

1,000,000

0.88240

1,000,000––

1,000,000

0.88240

1,000,000––

1,000,000

0.88240

500,000––

500,000

0.88240Development Bank of Japan Inc.

670,000––

670,000

0.60150

Mizuho Bank, Ltd.

670,000––

670,000

0.60150

670,000––

670,000

0.60150

670,000––

670,000

0.60150

670,000––

670,000

0.60150

350,000––

350,000

0.60150Development Bank of Japan Inc.

910,000––

910,000

0.90100

Mizuho Bank, Ltd.

910,000––

910,000

0.90100

910,000––

910,000

0.90100

910,000––

910,000

0.90100

910,000––

910,000

0.90100

450,000––

450,000

0.90100

Shinkin Central Bank

750,000––

750,000

0.30820

The Norinchukin Bank

750,000––

750,000

0.30820

The Bank of Fukuoka, Ltd.

750,000––

750,000

0.30820Development Bank of Japan Inc.

600,000––

600,000

0.69250

Mizuho Bank, Ltd.

600,000––

600,000

0.69250

600,000––

600,000

0.69250

600,000––

600,000

0.69250

600,000––

600,000

0.69250

300,000––

300,000

0.69250Development Bank of Japan Inc.

620,000––

620,000

0.79875

Unsecured
Unguaranteed

Mizuho Bank, Ltd.

620,000––

620,000

0.79875

620,000––

620,000

0.79875

Unsecured
Unguaranteed

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

620,000––

620,000

0.79875

620,000––

620,000

0.79875

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Unsecured(Thousands of yen)

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years--

3,000,000--

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of July 31, 2016 is as follows:
Classification
LenderDevelopment Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedThe Tokyo Tomin Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.

Long-term
loans
payable(Note 1)

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Balance atBalance at end
Increase during
Decrease
beginning ofof current
periodduring period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)
3,570,000
3,570,000
1,785,000
1,000,000
3,570,000––––

3,570,000
3,570,000
1,785,000
1,000,000

–

–

–
–
–
3,570,000

1.33500
1.03715–

3,570,000

0.70469

3,570,000––

3,570,000

0.70469

1,785,000––

1,785,000

0.70469

1,090,000––

1,090,000

1.41200

1,090,000––

1,090,000

1.41200

1,090,000––

1,090,000

1.41200

1,090,000
550,000

–

–

–

–

–

1,090,000
1,090,000
550,000–

300,000

1.41200

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000––

2,000,000

0.79500

Mizuho Bank, Ltd.

1,350,000
1,350,000
1,350,000
600,000

–

–

–

–

–

–

1,350,000
1,350,000
1,350,000
600,000

0.67075
0.67075––

1,350,000

0.90487

Mizuho Trust & Banking Co., Ltd.

2,000,000––

2,000,000

0.37990

The Norinchukin Bank

1,500,000––

1,500,000

0.37990

The 77 Bank, Ltd.
The Daishi Bank, Ltd.

500,000
500,000

–

–

–

–

–

–

- 19 -

1,000,000
500,000
500,000(Note 4)

Unsecured
Unguaranteed

March 23,
2019

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

August 31,
2018

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

March 30,
2018

Lump-sum
repayment(Note 4)0.67075

1,350,000

1,000,000

Lump-sum
repayment

0.67075

Development Bank of Japan Inc.

The Bank of Fukuoka, Ltd.

Remarks

1.41200––

March 23,
2016

Lump-sum
1.41200 September 29,
repayment
2017
1.41200

300,000–

Use of funds

0.70469––

Repayment
method

1.03715

3,570,000

1,090,000

Maturity date

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

1.34500

The Tokyo Tomin Bank, Limited

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

68–

Averageinterest rate(%)
(Note 2)0.379900.379900.37990

September 30, Lump-sum
2019
repayment

January 31,
2017

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

Averageinterest rate(%)
(Note 2)Development Bank of Japan Inc.

(Note 1)
(Note 1) The bonds are subject to the pari passu clause among specified investment corporation bonds.
(Note 2) The funds are appropriated to acquire of real estate in trust and repayment of certain existing borrowings.
(Note 3) The total amount of repayment of investment corporation bonds payable for each year during the five years following the balance sheet date is asshown below.

Due in 1 year
or less

Balance atBalance at end
Increase during
Decrease
beginning ofof current
periodduring period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Unsecured
Unguaranteed

Long-term
loans
payable(Note 1)

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

310,000––

310,000

0.79875

Development Bank of Japan Inc.

620,000––

620,000

1.04200

Mizuho Bank, Ltd.

620,000––

620,000

1.04200

620,000––

620,000

1.04200

620,000––

620,000

1.04200

620,000––

620,000

1.04200

310,000––

310,000

1.04200

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Maturity date

Repayment
methodUse of funds

Remarks

January 31,
2019

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

January 31,
2021

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

June 30,
2020

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

June 30,2022

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

March 30,
2018

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

January 31,
2022

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

January 31,
2023

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

January 31,
2025

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed- 20 69Balance atBalance at end
Increase during
Decrease
beginning ofof current
periodduring period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Classification
LenderMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

440,000–

440,000–

0.33000

440,000–

440,000–

0.33000

440,000–

440,000–

0.33000

440,000–

440,000–

0.33000

220,000–

220,000–

0.33000–

790,000–

790,000

0.26311–790,000–

790,000

0.26311–790,000–

790,000

0.26311–790,000–

790,000

0.26311–390,000–

390,000

0.26311Development Bank of Japan Inc.

–

360,000–

360,000

0.58340

Mizuho Bank, Ltd.

–

360,000–

360,000

0.58340–

360,000–

360,000

0.58340–

360,000–

360,000

0.58340–

360,000–

360,000

0.58340–

200,000–

200,000

0.58340Development Bank of Japan Inc.

–

420,000–

420,000

0.62460Mizuho Bank, Ltd.

–

420,000–

420,000

0.62460–

420,000–

420,000

0.62460–

420,000–

420,000

0.62460–

420,000–

420,000

0.62460–

230,000–

230,000

0.62460

Development Bank of Japan Inc.

–

490,000–

490,000

0.67745

Mizuho Bank, Ltd.

–490,000–

490,000

0.67745–490,000–

490,000

0.67745–490,000–

490,000

0.67745–490,000–

490,000

0.67745–

220,000–

220,000

0.67745Development Bank of Japan Inc.

–

1,570,000–

1,570,000

0.27125

Mitsubishi UFJ Trust and Banking
Corporation–

1,570,000–

1,570,000

0.27125

The Tokyo Tomin Bank, Limited–

1,000,000–

1,000,000

0.27125

Sumitomo Mitsui Trust Bank,
Limited

–785,000–

785,000

0.27125

Development Bank of Japan Inc.

–

2,000,000–

2,000,000

0.61950–

2,000,000–

2,000,000

0.61950–

1,000,000–

1,000,000

0.61950–

1,290,000–

1,290,000

0.23364–

1,290,000–

1,290,000

0.23364–

640,000–

640,000

0.23364

76,270,000

23,695,000

11,905,000

88,060,000

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Long-term
loans
payable(Note 1)

Averageinterest rate(%)
(Note 2)

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking
Corporation
Total

Maturity date

Repayment
methodUse of funds

Remarks

November 30,
Lump-sum2016
repayment(Note 3)(Note 4)

Unsecured
Unguaranteed

February 28,
2017

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

March 31,2023

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

August 31,
2023

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

February 29,
2024

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

March 31,2021

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

March 31,2025

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

June 30,
2017

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed(Note 1)
(Note 2)Long-term loans payable include the current portion of long-term loans payable.
The average interest rate is the interest rate for each loan contract rounded to the nearest fifth decimal place. As for the borrowings hedged byinterest-rate swap transactions in order to avoid interest rate fluctuation risk, the interest rates reflect the effect of interest-rate swap transactions.
(Note 3) The amount was repaid in full ahead of schedule on February 2, 2016.
(Note 4) The use of funds is mainly for the acquisition of real estate in trust and repayment of existing borrowings, etc.
(Note 5) The total amount of repayment of long-term loans payable for each year during the five years following the balance sheet date is as shown
below.
(Thousands of yen)Due in 1 year or Due after 1 year Due after 2 years Due after 3 years Due after 4 years
Due after 5 years
lessto 2 years
to 3 years
to 4 years
to 5 years
12,270,000

13,200,000

19,995,000

5,050,000

10,425,000

27,120,000- 21 7071