Semi-Annual Reportfor the Period ended May 31, 2020
(the 17th Period)

From December 1, 2019 to May 31, 2020

Shiodome Building

Tokyu Plaza Omotesando Harajuku

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

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

To HarajukuNew Shibuya City Office

Abema Towers

MIYASHITA PARKKo

en

Tokyu Department StoreHONTEN Store

-d

or

iS

tre

et

A-FLAG SHIBUYA
Shib

Bunkamura

uya

2022
Shibuya-ku Dogenzaka
2-Chome Development Project

Cen

ter

SHIBUYA SCRAMBLE
SQUAREStre

etCash Distributions (Result)
The Period ended May 2020

SHIBUYA109

sau-

MiyamasZaka

Scramble
Crossing

2024
Shibuya 2-Chome 17
District Redevelopment

a
buy
Shi .
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SHIBUYA FUKURAS

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(the 18th Period)
Roppongi-dori Ave.

Cash distributions per unit¥

A-PLACE Shibuya Konnoh
SHIBUYA STREAM

9,040

The Period ending May 2021

ine(the 19th Period)

Cash distributions per unitTo

ky

Next Shibuya Sakuragaoka
District Redevelopment

uT

oy

ok

To

Fu

ta

ko

The Period ending November 2020

a-d

am

y
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9,508

Cash Distributions (Forecast)

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A
ori

Basic Policy of Activia Properties Inc.

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

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

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

activity, in order to maximize unitholder value overthe medium- to long-term. API also takes initiatives

Strong governance structure aimed at
maximizing unitholder value

¥

oL

ine

2023
Shibuya Station Sakuragaoka Exit
District Redevelopment

to improve its asset management.

¥

aL
hibuy

.3S

Cash distributions per unit

e

in
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e.

CERULEAN TOWER

opoli

O

(the 17th Period)

ri Av

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SHIBUYA SOLASTA

Metr

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Shibuya Hikarie

SHIBUYA MARK CITY

No
sway

o
nd

Central and West Bldg.
aka

De

SHIBUYA CAST.

2027

en-Z
Doug

aw
a
To
ky
u

Shibuya Station area map

From December 1, 2019 to May 31, 2020
Meiji-dori Ave.
kutoshin Line
Tokyo Metro Fu

JR Yamanote Line

SHIBUYA PARCO

Semi-Annual Report for the
17th Period ended May 2020

To

9,280

Eb

isu

Contents
4

Message53

IV. Statements of Changes in Unitholders’ Equity

6

TOPICS

54

V.

14

API’s Basic Policy

56

VI. Statements of Cash Flows

Statements of Cash Distributions

15

Portfolio List

57

VII. Notes to Financial Statements

16

Portfolio Map

70

VIII. Schedule of Financial Statements

19

Overview of API

80

Independent Auditor’s Report

20

I.

Asset Management Report84

Overview of the Asset Manager

50

II.

Balance Sheets85

Information on Unitholders

52

III.

Statements of Operations

Message

We Aim to Enhance Unitholder
Value Along With Fulfilling Our Social
Responsibility Amid an Emergency

properties. On the other hand, retail properties,

their long-term management strategy to realize amainly Urban Retail properties under management,sustainable society.

have been hardly affected, as some PM-operated

API has promoted a wide range of initiatives toretail properties that have been obliged to completely

reduce the environmental load and to contribute toclose to prevent the spread of COVID-19. From now

our environment and local community. Furthermore,on, we should keep a close eye on the real estate

considering the spread of COVID-19, we recognize

Kazushi Satomarket and handle this situation promptly andour

Executive Director
Activia Properties Inc.

appropriately. We consider that the advantages

preventive measure against COVID-19, such asof location and quality of our retail properties

retail property closures, and to support businesssocialresponsibilities

are

to

implement

remain unchanging, and we will strive to manage

continuity of our tenants, which will contribute toThank you very much for your continued support forexports and manufacturing. However, due to thethose properties aiming for future upside after therealizing a sustainable society along with maximizing

Activia Properties Inc.

spread of COVID-19 in February and thereafter, thecoronavirus.

unitholder value in the medium to long term. We willFirst, I would like to express my sincere

employment and income situation, which had been

The overall occupancy rate of our portfolio at thecontinue to promote our commitment to the targets

condolences for the victims of COVID-19 and those

improving until then, has started to show someend of the period under review was 99.8%, and we

set for each material issue to enhance trustworthy

concerned, wishing people fighting with COVID-19 a

weakness, and the outlook remains uncertain.

have successfully maintained a high rate. In January

relationships with all of our stakeholders, including

In the J-REIT market, despite asset sizes

2020, we acquired Ebisu Prime Square (51%unitholders.

quick and complete recovery.
Recently we have closed all accounts for thecontinuing to expand against a backdrop of the

coownership interest) and disposed of A-PLACE

17th period from December 1, 2019 to May 31, 2020.

interest-rate environment remaining at low levels andShinbashi Ekimae in March 2020.

We owe this achievement to your understanding anda strong real estate market, the situation has become

As a result of the above-mentioned management,

by various measures, including continuous support

continuous support, for which we wish to extend ourunstable given developments such as a brief yet

operating revenue, operating profit, and profit werefor our tenants, while prioritizing enhancement of

deep appreciation.

substantial drop in the Tokyo Stock Exchange REIT

¥14,984 million, ¥8,206 million and ¥7,332 million,

unitholder value as our most important task, whichindex, mainly over concerns about financial results

respectively, for the period ended May 2020.

we believe possible through aiming at bringing API

due to the spread of COVID-19.

Distributions per investment unit were ¥9,508.

back early to a growth path and seeking to steadily

In the first half of the fiscal period under review,
the Japanese economy continued a trend of gradual
recovery on the whole underpinned by improvements

Under these circumstances, API has continuallyin the employment and income environments, anddespite apparent weakening still prevailing for

Recently,

there

is

increased

For the 18th period ending November 2020 and
onwards, we will strive to conduct stable management

demandforgrow DPU. We would be most grateful for yourachieved rent increases for lease contract renewals,

corporations to include and actively promote ESG

continued support and encouragement. Thank you.

mainly in offices particularly for Tokyo Office(environment, social, governance) perspectives into

Financial Highlights (Millions of yen)
Period ended November 30, 2019(the 16th Period)
Operating revenue

Operating profit

Ordinary profit

Profit¥15,542
¥

8,680

¥

7,818

¥

7,817

Period ended May 31, 2020
(the 17th Period)¥

14,984
8,206
7,333
7,332
¥

¥

¥

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

Net assets¥

515,480¥¥

256,198¥

49.7%

Unitholders’ equity tototal assets (%)
Net assets per unit (yen) (Note)

Period ended May 31, 2020
(the 17th Period)¥

332,196525,686
255,700
48.6
331,551%¥(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

45

Topics
Management Highlights of the 17th Period
Ended May 2020

DPU Summary for the 17th Period Ended
May 2020

 AV per unit enjoyed the benefit from asset replacement (Note 1) along with posting a record high for office internal growthNand progressing cost reduction in financeWhile stabilized DPU of ¥10,000 were close to achieving our target for internal growth, mainly from offices, etc., the
COVID-19 outbreak obliged us to entirely close some of our property-manager-operating properties and agree to fixed
rent reductions for some tenants.

 oth revenue and profit for FP17 ended May 2020 decreased from the previous period due to impact from COVID-19 andBdecrease in gain on sale of property

Financial Result (May 2020)
Operating revenue(Gain on sale of real estate)

Profitvs. Nov. 201915.0 bn-¥0.6bn(¥0.1bn)(-¥0.2bn)

7.3 bn¥9,508¥ 460,378-¥0.5bn-¥629+¥1,603¥¥

DPU
NAV per unit

Internal Growth in Office (Note 2) (May 2020)
Ratio of area with increased rent
Increased amount
Increase rate
Average rent
Rent gap

81%¥182mn15.2%¥21.6k-11%

Properties Under Management (end of May 2020)
Nb. of properties
AUM
Target investment ratio (UR+TO)
Appraisal value
Unrealized gain

44
¥ 509.2 bn
79.7%¥ 605.6 bn¥ 99.4 bn

Finance (end of May 2020)
Interest-bearing debts
LTV (book value)
Average remaining years to maturity
Average interest rate
Commitment line
6(¥)

vs. Nov. 2019+19pt+¥35mn+2.3pt+¥0.7k
+2.5ptvs. Nov. 2019–+¥10.2bn+0.4pt+¥11.4bn+¥1.7bnvs. Nov. 2019¥ 244.3 bn

46.5%
4.4 year
0.55%¥21.0 bn+¥10bn+1.0pt-0.3 year-0.02pt–(Note 1) Refers to acquisition of Ebisu Prime Square and disposition of A-PLACE Shinbashi Ekimae(Note 2) F igures for “Internal Growth in Office” are calculated based on all offices of Tokyo Office properties and Activia Account properties.
Increased amount refers to the amount of the total difference before and after rent revision (at contract renewal or tenant replacement) adjusted to the period covered.

Finance(interest rate)+45

10,137
10,000Benefit from
disposition

Maintenanceexpenses,etc. +153

Sales-linked
rent at hotels -255
(seasonal factor,
COVID-19 impact
not incorporated)

Amended AM fee+136(Note 1)

Internal growth(Upwardly revised
rent, etc.)
+174

9,781
9,500

COVID-19
9,508
impactBenefit from disposition &-651
aquisition (Note 2)
9,383

9,000

0

2019.11 (FP16)(Result)

2020.5 (FP17)(Result)(Note 1) B enefit from disposition refers to the gain on sale of A-FLAG AKASAKA of which 50% in co-ownership interest was disposed of as of June
3, 2019 (FP16) from which the amount equivalent to ¥356 per unit was contributed to DPU(Note 2) B enefit from disposition & acquisition refers to the amount equivalent to ¥125 per unit, calculated by deducting lost profit of A-PLACE
Shinbashi Ekimae disposed of on March 19, 2020 from gain on sale of this property and operating profit of Ebisu Prime Square acquiredon January 10, 2020.

Fixed-rent reduction-¥602

Four properties closed entirely for two months
Property nameClosure period
Mar. 28-29, Apr. 4-5

Apr. 8-May 18

May 19-31

Tokyu Plaza Omotesando Harajuku

COVID-19
Impact-¥651

Tokyu Plaza Akasaka
DECKS Tokyo Beach
Commercial Mall Hakata(Note) Excluding some stores

Decline in revenue from sales-linked rent, etc.

-¥49

D ue to a drop in tenant sales, parking revenues, and event
cancellations chiefly for properties that closed their facilities
entirely, revenue from sales-linked rent declinedD ecrease in sales-linked rent in hotels affected lesssignificantly for the period under review since the settlement
period of revenue comes later7

API’s Growth Cycle

Management Status of OfficeIn response to the government’s declaration of a state of emergency, preventive measures are being taken andcompensation for tenants implemented
Best solution for return to growth path for API considering the middle to long term point of view is to support tenant businesses

Enhancement ofunitholder value

Socialresponsibility

API’scommitment

Enhancement ofunitholder value

 onduct strategy toCcontinuously growstabilized DPU losed entire facility ofCsome properties toprevent infection

 igorously selected investment
Rin high-quality properties inprime location

 arly return to growthEpath AV growth asNoutcome of rigorously
selected investment

 upport tenants withS
temporary rent
reductions

 usinesses to be recoveredBfrom tenants located in centerof commerce

1. Rent Revisions
 osted record highs in increased amount and increased rental rate on Tokyo Office properties and in increased amount andParea with higher rent on Activia Account properties
 ontinue negotiation on rent revision judging respective tenant’s situation and location while paying attention to tenantCbusiness downturn due to COVID-19 impact
Area (up)Area (down) eep growth strategy
Kwith priority on
maximization ofunitholder value

78%
65%

Significance of fulfilling social responsibility

82%

61%

4,977 tsubo

 void vacancy increase due to inflexible management with excessive focus on immediate earnings andAstrengthen confidence with tenants
 upport tenants and maintain portfolio occupancy stabilized in order to early return to path to growth withS
leveraging API’s strength

Area subject to rent revision
Ratio of area with increased rent

3,262 tsubo

62%

6,453 tsubo

6,342 tsubo

5,261
tsubo

3,878 tsubo

Increasedamount (¥ mn)-47 tsubo+40.0-17 tsubo
+23.0

+47.1

-11 tsubo+99.5+109.5

Increase ratio(+7.3%)(+5.2%)(+9.1%)(+12.0%)(+17.1%)

2018.5(13th Period)

2018.11(14th Period)

2019.5(15th Period)

2019.11(16th Period)

2020.5(17th Period)

Defining three straight periods from FP17 ended May 2020 to FP19 ending May 2021 as “emergency”,

Area (up)Area (down)

we will work for return to growth path with supporting tenants with a point of view of sustainability

Area subject to rent revision
Ratio of area with increased rent

80%

Growth Strategy After Crisis
New Initiatives
Tenant support
in emergency

829%

 ction1 towards stabilized DPU of ¥10,000 has been done with internal growthAachieved and asset replacement conducted in FP16 ended Nov. 2019
Fulfill API’s social responsibility to support tenant businesses as an important step
towards return to growth path

Action 2
Internal growth:
office properties hanging role of office makes immediate negotiations with tenants on rents harder,C
although we will emphasize significance of location, which will be an opportunity for API
Continue to pursue internal growth at tenant replacement taking conditions of rent gap
without relying on negotiations on lease condition with existing tenants

Action 3
Replacement ofretail tenants

 ursue continual rent increases at tenant replacement where API’s retail properties canPseize opportunity owing to this competitive advantage
Turn environmental change such as postponement of Olympic Games into opportunity
for internal growth as underlies prospective tenants who watch opportunity to move tobetter location

Action 4External growth60% ontinuous strategy for external growth without prioritizing AUM expansion
CPursue asset replacement opportunity to acquire offices in the greater Shibuya areaand Shinagawa-Gotanda area

5,029 tsubo

34%

4,009
tsubo

2,835 tsubo

9%1,494 tsubo

255 tsubo

595 tsubo

Increasedamount (¥ mn)

+2.3

+1.6

-97 tsubo
+5.9

+19.4

+29.3

Increase ratio(+11.9%)(+3.9%)(+5.2%)(+9.7%)(+8.6%)

2018.5(13th Period)

2018.11(14th Period)

2019.5(15th Period)

2019.11(16th Period)

2020.5(17th Period)

2. API’s Strategy on Tenant Replacement
 umber of contracts concluded with favorablyNhigher rent than market owing to highcompetitiveness of properties and enhanced
leasing capacity on the rise (large gap comparedwith market rents)
 table earnings over long term secured byS
concluding contracts with longer term in order to
respond to market transition(Note 1) G ap with contracted rent refers to the rate of divergence between
the contracted rent and market rent at time of lease contractconclusion(Note 2) G raph shows figures for average contract term and rent gap forTokyo Office properties

Avg. contract term

+9.9%

Gap with contracted
rent

4.0 years

+9.7%
+8.1%
3.2 years

2.4 years+0.5%
2018.5(13th Period)

2.5 years

3.5 years+1.3%

2018.11(14th Period)

2019.5(15th Period)

2019.11(16th Period)

2020.5(17th Period)

9

Management Status of Retail Properties

Financial Management Status

1. Characteristics of API’s Retail Properties
Lease maturity diversification
 verall maturity dates are diversifiedO
even though lease renewal with animportant tenant is nearly scheduled
Avg. lease term 13.8 years
Avg. remaining years
7.3 years
to maturity

Fixed-rent ratio

Ratio of tourists from oversea

Rent structure with low volatility

 ales composed mainly by domesticS
customers

63%

17,540
tsubo

5%
3,250
tsubo

2020.11FP18

2021.5FP19

2021.11FP20

2022.5
FP21

Hotel(Operator)

Location

Number ofrooms

1-min walk from 2-min walkfrom Susukino
AkasakaStation
mitsuke Station

487

575

40.1%

39.6%

2016.1110th Period

2017.511th Period

2017.1112th Period

2018.513th Period

10

¥ 37
billion(Stable)

39.1%

38.2%

2018.1114th Period

2019.515th Period2020.517th Period

2019.11
16th Period(years)6.0

5.0

Avg. interest rate (right axis)

Avg. years remaining to maturity (left axis)
0.67%

0.67%

0.66%

0.65%

0.63%

0.59%

0.57%

(in millions of yen)
400
300

AA

*Purchased by
Bank of Japan(Note) At the end of the 17th
period ended May 2020

276.9

4.0

257.8
185.6

100
0

60.8

Expect nosales-linked
rent occur

2020.52019.112020.11(16th period) (17th period) (18th period)(Forecast)

2021.5(19thperiod)(Forecast)

71.0
2018.11(14th period)

2019.5(15th period)

Kobe2020.5 (FP17)

2021.5 (FP19)

Akasaka·Sapporo

2020.11(FP18)

2021.11 (FP20)

2020

4.4
years

4.1
years
3.0

2016.1110th Period

4.6
years

4.4
years

2017.511th Period

2017.1112th Period

2018.513th Period

Sales linked

Averageinterest
rate

Fixed
interest
rate ratio

0.75

0.55%

88%

Averageremaining period
to maturity

Long-term
borrowing
ratio

0.55%

4.5
years

4.7
years

4.5
years

2018.1114th Period

2019.515th Period

2019.11
16th Period

0.25

4.4
years

2020.517th Period

4.4

years

0.00

95%

(Note) At the end of the 17th
period ended May 2020

List of lenders
2021

8%
19%

Sales
linked

(%)
1.00

0.50

200

Fixed portion increased

Fixed

38.7%

Trends in average period remaining to maturity and average interest rate

New contract of 5.5 years with effecting date of Nov. 2021 (FP20) concluded with Tokyu Hotels in Mar. 2020

Previous
contract

Rating(JCR)

14%(Note) Sales via foreign agencies to total sales in FY2019

Impact on FP17 ended May 2020 and FP18 ending Nov.
2020 will be less significant, while FP19 ending May 2021
and after might be hardly affected5-min walk from
Kyukyoryuchi ·Daimarumae
StationFixed

Acquisition
capacity*at LTV 50%

New lease contract (A-FLAG SAPPORO)

Fixed rent

37.7%

38.3%

Average of three hotels

2019

New
contract

39.1%

 owered avg. interest rate with maintaining avg. remaining period to maturity and will continue to work for debt
Lcost reduction

Kobe Kyu
Kyoryuchi
25Bankan

116

46.5%

45.5%

(Note) Sales of the duty-free shop in the property in
FY2019(Note) Ratio of actual fixed rent of FP16 ended Nov. 2019
and FP17 ended May 2020 to total rent revenue
including sales-linked rent portion recorded tothose two periods

Oriental Hotel(Plan Do See)

45.6%

41.6%
40.0

Timing of recognition of revenue from sales-linked rent

Akasaka Excel Sapporo Tokyu
Hotel Tokyu
REI Hotel(Tokyu Hotels) (Tokyu Hotels)

Appraisal
LTV

15%

DECKS Tokyo Beach

Overview of Hotels
A-FLAGSAPPORO

44.8%

44.7%

46.0%

(Note) Sales of the duty-free shop in the property in
FY2019

Sales-linked rent at hotels: 1.2%
Others:0.5%
2022.11
FP22

LTV
46.5%

46.0%

2. Management Status of Hotels
Tokyu Plaza
Akasaka

Appraisal LTV

18%(Note) Ratios of area where lease term will mature to total
leasable areas

Property

LTV
47.7%

Fixed rent
43,567
tsubo

3%
2,407
tsubo

(%)
50.0

Tokyu Plaza Omotesando Harajuku

98%

4%
2,851
tsubo


Rate
at the end of the FP17 ended May 2020 of 46.5% (appraisal LTV at 39.1%), LTV is being controlled within the
expected range of 40~50%

Domestic visitors
Visitors from oversea

Lease contract already renewed for
5,700 tsubo in Hotel in Sapporo
25%

Trend in LTVs

[New contract summary]Fixed rent contributing to solid earnings
Sales-linked rent benefitting tenant's sales
growthIncreased ratio of
leading to
DPU management with low volatility

9%18 lenders¥244.3 billion

9%

26%

19%

Sumitomo Mitsui Trust BankMUFG Bank

Mizuho Bank

Sumitomo Mitsui Banking Corporation

Development Bank of Japan

Mizuho Trust & Banking

Resona Bank

The Norinchukin Bank

The Bank of Fukuoka

Shinkin Central Bank

The 77 BankThe Gunma Bank

Nippon Life Insurance Company

Sumitomo Mitsui Insurance Company

Taiyo Life Insurance Company

THE NISHI-NIPPON CITY BANKTokyo Marine & Nichido Fire Insurance

The Bank of Kyoto

Investment Corporation Bonds

11

ESG Initiatives
1. Preventive measures against COVID-19 spread

3. Green Certification at the end of May 2020

Measures taken in each property

GRESB Real Estate Assessment

Retailproperties

 lcohol-based hand sanitizer, complete disinfection of environmental surfaces such asA
handrails in buildings
Ventilation of inside facility including entrance kept open and use of fresh-air treatment
unit with maximized powerAwareness poster to support awareness to prevent infectionCreate one-way traffic in facilities, etc.

Officeproperties

 lcohol-based hand sanitizer, complete disinfection of environmental surfaces such asA
handrails in buildingsTemperature check obliged to facility keepers and requested to service providers
Floor markings to manage traffic flow, etc.

Green-certified
assets in portfolio

Global rating
5 stars fortwo consecutive year

CASBEE Certification

S(
A(

Measures taken by Asset Manager
Identified material duties in view of business continuity and implement effective measures against infection)) 11 properties
12 properties

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

56%(26 properties)

Disclosure
Highest A rank for
two consecutive years

BELS Assessment(Based on GFA)

DBJ Green Building

3 properties
2 properties
4 properties

1 property

1 property

 apidly implemented measures to keep our employees safe and prevent infection spread such as WFH
R
recommendation from March and reduced core time of office works
WFH as basic rule in April to May and on-going promotion of flexible work arrangements in June and afterwards
Remote PC distributed to all employees, introducing web conference system, etc.

2. Examples of works for environmental performance improvement
UR-8

A-FLAG SAPPORO

Installed energy-saving air conditioners, etc. andreduced power consumption by 49%

AA-2

Asphalt pavement using renewable aggregate
AA-7

UR-15 DECKS Tokyo Beach onducted renovation work to extend emergency
Cgenerator's operating hours as part of business
continuity planning12

icot Nakamozu

Osaka Nakanoshima BuildingInstalled water-saving urinals and toilets andreduced water consumption by 66% for urinals
and by 47% for toilets (10th & 11th floors in FP16
ended Nov. 2019: 12th to 15th floors in FP17
ended May 2020)(Note) For icot Nakamozu is counted here as awarded property five stars in BELS certification, with the Konan Building awarded a five-star rating and the Bank Building was awarded
one star rating.

4. Fortified “same-boat principle” with Sponsor group ponsor announced additional acquisition of shares ofS
API in May 2020 and shown anew its supportive
position to API
With “Same-boat principle” with API’s unitholders,further support from Sponsor which will contributeto mid-to long-term growth will be expected

Beforeacquisition

Additional
acquisition

Afteracquisition

Nb. of units issued andoutstanding

771,224 units—

771,224 units

Nb. of units held bySponsor73,425 units

7,712 units

81,137 units

Percentage of units
held by Sponsor

9.5%

1.0%

10.5%

5. Announcement of Sustainable Procurement Policy and Human Rights Policy ith aim to strengthen its ESG management and realize and enhance a sustainable society, Tokyu Fudosan Holdings GroupW
enacted the Sustainable Procurement Policy and Human Rights Policy in January 2020.
As a member of the group, TLC REIT Management, the asset manager of API, shares the policies and works paying
consideration to the environment, such as climate change as well as to build a sound economy and society with respect forhuman rights.
13

API’s Basic Policy

Portfolio List

1. Portfolio Composition Policy of API

Category e intend to maintain a competitive portfolio in the medium to long term by investing primarily in Urban Retail properties
W
and Tokyo Office properties upon careful consideration of location as the most important factor, followed by other factors
such as size, quality, specifications and suitability for use by tenants.

Property
number
UR-1
UR-2
UR-3
UR-5
UR-7

Urban Retail properties that are easily recognized and located either near major train
stations or popular areas in Tokyo, government-designated major cities within
Japan's three major metropolitan areas and other major cities in Japan

UR-8

70%

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

or more

UR-9
UR-10
UR-11
UR-12
UR-13
UR-14
UR-15

30%

To enhance the stability and profitability of our portfolio, we rigorously select commercial
facilities other than Urban Retail properties and office buildings other than Tokyo Officeproperties, after assessing the attributes and competitiveness of each property

Investment ratio (by category)or less

Investment ratio (by area)
Other major cities of Japan 2%

TO

UR

40.6%

39.0%
OfficeThreemetropolitan
areas

6 centralwards of
Tokyo

27%

Retail

52.6% 47.4%

69%

Other wardsof Tokyo

2%

Focusedinvestment
ratio

79.7%

Asset size

(UR+TO)¥509.2 bn

2. Sponsor Group’s Value Chain
 PI pursues enhancement of asset size by acquisition of competitive assets (external growth) as well as maximization ofA
profitability through management bringing out the asset’s highest competitivity, fully using the Tokyu Fudosan HoldingsGroup’s value chain based on a comprehensive support system.

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

DECKS Tokyo Beach (Note 2)

TO-5

Luogo Shiodome

TO-6

TAMACHI SQUARE (Land)(Note 3)

TO-7

A-PLACE Ikebukuro

TO-8

A-PLACE Shinbashi

TO-9

A-PLACE Gotanda

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

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

TO-15

A-PLACE Gotanda Ekimae

14

Hotel

Wellness

OfficeCommercial
properties

Logistics
properties

RenewableenergyOverseabusiness

Building
management

Retail

4,918.44

Mar. 2012

99.6%

2.2%
1.7%

16,609.75
4,024.88

Sep. 1969
Aug. 2008

99.2%
100.0%

8,860

1.7%

21,616.04

Jul. 2006

100.0%

21,3304.2%

19,653.90

Jan. 2010

100.0%

4,410

0.9%

21,229.16

May 1980

100.0%

6,370

1.3%

3,403.07

Jun. 1988

100.0%

13,3502.6%

2,820.23

Nov. 2007

100.0%

4,370

0.9%

2,656.53

Jan. 1992

100.0%

4,700

0.9%

1,994.65

Dec. 1998

100.0%

2,280

0.4%

2,579.08

Apr. 1992

100.0%

4,725

0.9%

2,538.13

Mar. 2008

100.0%

Jun. 1996
Nov. 2000(Extension)

99.1%

Daiba, Minato-ku, Tokyo

12,7402.5%

16,125.56

Ginza, Chuo-ku, Tokyo

37,5007.4%

1,130.04—

100.0%

Jingumae, Shibuya-ku, Tokyo

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

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

3,378.49
124,677.95
7,342.60
7,950.49
3,106.17
7,303.69

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

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

4,540

0.9%

4,476.35

Jul. 2004

100.0%

2,338

0.5%

1,287.96—

100.0%

3,990

0.8%

3,409.73

Oct. 2011

100.0%

5,650

1.1%

5,054.19

Mar. 1999

100.0%

5,730

1.1%

4,028.69

Feb. 2012

100.0%

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

0.7%
2.1%
14.1%
1.4%
0.9%

2,986.36
7,193.28
28,136.05
4,010.69
3,010.53

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

100.0%
100.0%
100.0%
100.0%
100.0%

7,280

1.4%

4,328.32

Nov. 1993

100.0%

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

18,800

3.7%

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

Hiroo, Shibuya-ku, Tokyo

30,700206,900
12,000

6.0%
40.6%
2.4%

8,500

1.7%

28,098.02

2,710

0.5%

2,840

0.6%

6,980

icot Nakamozu

AA-4

icot Mizonokuchi

AA-5

icot Tama Center

AA-6

A-PLACE Kanayama

AA-7

Osaka Nakanoshima Building

AA-8

icot Omori

AA-9

Market Square Sagamihara

AA-10 Umeda Gate Tower

AA-12 Commercial Mall Hakata

Activia Account properties
Total

Brokerage

8.8%

11,4508,430

Konan, Minato-ku, Tokyo

AA-2

Occupancy
rate

45,000A-PLACE Shinagawa Higashi

AA-13 EDGE Shinsaibashi

Residence

Jingumae, Shibuya-ku, Tokyo

Completion(Note 1)

Aug. 1985(Main building)
14,658.98
Sep. 1999(Annex)
18,063.02
Jan. 1997
126,347.10—
27,465.44—

AA-11 A-PLACE Bashamichi
Listed on the 1st section of Tokyo Stock Exchange with security code 3289, Operating revenue: ¥963.2bn, Operating profit: ¥78.3bn (Result FY2020)

Location

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

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

TO-16

AA 20.3%

Property name(As of May 31, 2020)
Acquisition price Investment Total leasable(In millions of yen)ratio
area (m2)

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

100.0%
98.2%
99.7%
100.0%

Jun. 2007

100.0%

14,032.05

Jul. 1998

100.0%

5,181.58

Mar. 2006

100.0%

1.4%

9,314.90

Feb. 2009100.0%

11,1002.2%

20,226.77

Mar. 1984

100.0%

5,790

1.1%

6,209.79

Mar. 2007

100.0%

4,820

0.9%

15,152.42

Jun. 2014

100.0%

19,0003.7%

13,624.49

Jan. 2010

100.0%

3,930

0.8%

9,710.91

May 1975

98.3%

6,100

1.2%

9,612.88

Nov. 2005

100.0%

19,8003.9%

15,897.66

Apr. 1986

100.0%

103,570
509,18520.3%
100.0%

174,526.91
425,551.96

—
—

99.9%
99.8%

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

15

Portfolio Map

Central Tokyo Area

Tokyu PlazaUR-2 Akasaka

A-FLAG

UR-13 DAIKANYAMA WEST

TLC Ebisu

TO-2 Ebisu Minami

TO-6 SQUARE (Land)

TAMACHI

TO-7 Ikebukuro

OSAKI

TO-12 Building

A-PLACE

TO-18 Ebisu Prime SquareUR-1 Omotesando Harajuku

Tokyu PlazaUR-3 Q plaza EBISU

A-FLAG

UR-11 KOTTO DORI

A-FLAG

UR-15 Beach

UR-16 Ginza (Land)

Tokyu Plaza

UR-17 Harajuku

A-PLACETO-3 A-PLACE Yoyogi

TO-4 Aoyama

A-PLACE

TO-5 Luogo Shiodome

A-PLACE

TO-8 Shinbashi

A-PLACE

TO-9 Gotanda

A-PLACE

TO-10 Shinagawa

Shiodome

TO-13 Ebisu Higashi

A-PLACE

TO-14 Shibuya Konnoh

A-PLACE

TO-15 Gotanda Ekimae

UR-9 SHIBUYA

A-FLAG

Kita WardURBAN
RETAILTOKYO
OFFICE

Arakawa Ward

Toshima Ward

Ikebukuro

NipporiTaito Ward

Ueno

DECKS Tokyo

Q plaza

Asakusa
River

Takadanobaba

Bunkyo Ward

UR-12 BIJUTSUKAN DORI

Shinjuku Ward

Shinjuku

Yotsuya

Chiyoda Ward

SumidaWard

Tokyo

Omotesando

Shibuya

Akihabara

TO-1 Building

Akasaka
Mitsuke

ShibuyaGaienmae
Ward

Harajuku

Su

mi

da

Nakano
Ward

Chuo
Ward

A-PLACE

Shinbashi

Minato Ward

Tokyo Tower

Hamamatsucho

Ebisu
Ebisu

TO-11 WIZTOWER

A-PLACE

TamachiMeguroWard

MeguroGotandaTakanawa Gateway
Shinagawa

Osaki

ShinagawaWard16

TO-16 Shinagawa Higashi

Oimachi17

Greater Tokyo Area

AA-4 icot Mizonokuchi

GreaterTokyo
Area
Greater Tokyo
Area

icotMizonokuchi
Mizonokuchi
AA-4
AA-4 icot

Sapporo UR-8 A-FLAG SAPPORO
SapporoSapporo UR-8
SAPPORO
A-FLAGSAPPORO
UR-8A-FLAG

Overview of API
Structure

5
4 8
Tokyo
95
4 8
Shin-Yokohama
911
Shin-Yokohama

The REITThe Sponsor

Tokyo

2

AA-5 icot Tama Center
CenterAA-5
icotTama
Tama
CenterAA-5 icot

3

Nagoya AA-6 A-PLACE
Kanayama
A-PLACE
Nagoya AA-6
Nagoya
AA-6A-PLACE

Sumitomo Mitsui
Trust Bank, Limited

Kanayama
Kanayama

11

4

CustodianTransfer Agent
General Administratorof InstitutionallyManaged Assets

6

General Meetingof Unitholders
Market Square

AA-8 icot Omori
AA-8 icot Omori
AA-8 icot Omori

AA-9 Sagamihara
Market Square
AA-9 Market
SquareSagamihara
AA-9 Sagamihara

The Asset Manager

A-PLACE

AA-11 Bashamichi
A-PLACE
AA-11 Bashamichi
A-PLACE
AA-11 Bashamichi

51

Hakata AA-12 Commercial Mall
HakataCommercialMall
Mall
HakataCommercial
HakataAA-12

Executive Director:
Kazushi Sato
Supervisory Director:
Yonosuke Yamada

7Supervisory Director:
Yoshinori Ariga

Support Companies
URBAN ACTIVIAURBAN ACCOUNTACTIVIARETAILRETAILACCOUNTURBANACTIVIARETAIL ACCOUNT

8
8

Kyoto Karasuma

MUFG Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited

Board of Directors

AA-12 Hakata
HakataQ plaza

Kobe Kyu Kyoryuchi
UR-5 Kyoto
UR-7 Kobe
UR-10 QSHINSAIBASHI
Karasuma
Kyu Kyoryuchi
plaza
25Bankan
Parking
Building
UR-5 Parking
Kyoto Building
Karasuma UR-7 Kobe
plaza
Kyu Kyoryuchi UR-10 Q
25Bankan
SHINSAIBASHI
UR-5 Parking Building UR-7 25Bankan
UR-10 SHINSAIBASHI

Tokyu Livable Inc.
Tokyu Community Corp.

Independent Auditor

Tokyu Hands Inc.
Tokyu Sports Oasis, Inc.

Ernst & Young
ShinNihon LLC

1Asset management agreement

2

Asset custody agreement

3

Transfer agency agreement

4

General administration agreement

5

Fiscal agency agreement

6

Sponsor support agreement,
outsourcing agreement

7

Affiliate support agreements

Tokyu Resorts & Stays Co., Ltd.

6
6

12
12

A-FLAG KITA

KITA
UR-14A-FLAG
SHINSAIBASHI
UR-14
SHINSAIBASHI
A-FLAG KITA
UR-14 SHINSAIBASHI

AA-2 icot Nakamozu
AA-2
AA-2 icot Nakamozu

icot Nakamozu

Kyoto

Shin-Kobe

7
7

Activia Properties Inc.

Executive Director Kazushi Sato
Nagoya5
Kyoto
5Shin-Kobe

History

ProfileName

関西
Hyogo/Osaka/Kyoto
Hyogo/Osaka/Kyoto
関西
Hyogo/Osaka/Kyoto

18

Amagasaki Q's

Q's
AA-1 Amagasaki
MALL (Land)
AA-1
MALL (Land) Q's
Amagasaki
AA-1 MALL (Land)

1 Shin-Osaka
1 Shin-Osaka
10
7
10 14
7
10
2
10 14
13
2
13

NagoyaOsaka

Nakanoshima
Nakanoshima
AA-7 Osaka
AA-7
Building
Osaka
Building
AA-7 Nakanoshima

Building

Umeda Gate

Gate
AA-10 Umeda
AA-10
Tower
Tower
Umeda Gate
AA-10 Tower

General Administrator
for Investment
Corporation Bonds

Address

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

Contact

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

Closing dates

May 31 and November 30

EDGE

AA-13 EDGE
AA-13
Shinsaibashi
Shinsaibashi
EDGE
AA-13 Shinsaibashi

Sep. 7, 2011

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

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

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

19

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

Asset Management Report for the 17th Fiscal Period(Semi-Annual Report)

Fiscal periodBusiness period

From December 1, 2019 to May 31, 2020

III.

Statements of Operations

IV.

Statements of Changes in Unitholders’ Equity

13,327

13,815

14,843

15,542

14,984[12,409][12,673][13,472][14,063][13,903]

Operating expenses(millions of yen)

5,855

6,268

6,243

6,862

6,778

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

[4,706][5,076][4,973][5,464][5,470]Operating profit(millions of yen)

7,471

7,546

8,599

8,680

8,206

Ordinary profit(millions of yen)

6,611

6,697

7,726

7,818

7,333

Profit(millions of yen)

6,610

6,696

7,725

7,817

7,332

Net assets(millions of yen)

223,777

223,842

256,085

256,198

255,700

V.

Statements of Cash Distributions

VI.

Statements of Cash Flows

VII.
VIII.

Notes to Financial Statements
Schedule of Financial Statements
Independent Auditor’s Report21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo(%)(millions of yen)

[7.3]

[0.0]

[14.4][0.0][－0.2]

445,941

445,464

514,359

515,480

525,686[4.5][－0.1][15.5]

[0.2]

[2.0]

(millions of yen)

217,091

217,091

248,370

248,370

248,370

Number of units issued and outstanding(units)698,704

698,704

771,224

771,224

771,224

Net assets per unit

(yen)

320,275

320,368

332,050

332,196

331,551

Total distributions(millions of yen)

6,611

6,696

7,725

7,817

7,332

(yen)

9,493

9,584

10,118

10,136

9,507

Cash distributions per unit

(yen)

9,462

9,584

10,017

10,137

9,508[Earnings distributions per unit][Distributions per unit in excess ofearnings](yen)[9,462][9,584][10,003][10,137][9,504]

(yen)

[—]

[—]

[14]

[―]

[4]

Basic earnings per unit

Activia Properties Inc.

17th period(millions of yen)

Unitholders’ capital

Balance Sheets

16th period(millions of yen)

[Change from the previous period]II.

15th period[Lease business revenue]

Total assets

Asset Management Report

14th period

Operating revenue[Change from the previous period]I.

13th period

From December 1, 2017 From June 1, 2018 From December 1, 2018 From June 1, 2019 From December 1, 2019
to May 31, 2018
to November 30, 2018
to May 31, 2019
to November 30, 2019
to May 31, 2020

(Note4)(Note1)(%)

Ordinary profit to total assets(Note2)

(%)

1.5

1.5

1.6

1.5

1.4

Return on unitholders’ equity(Note2)

(%)

3.1

3.0

3.2

3.1

2.9

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

50.2

50.2

49.8

49.7

48.6

(Note2)

(%)

[1.3]

[―]

[－0.4][－0.1][－1.1]

Payout ratio(Note2)

100.0

99.9

99.8

100.0

100.0

(%)

[Other reference]
Number of properties

42

42

45

44

44

2

(m )

395,994.33

395,967.44

415,167.22

414,008.41

425,551.96

(%)

99.8

99.9

99.5

99.8

99.8

Depreciation(millions of yen)

1,234

1,267

1,294

1,298

1,334

Capital expenditure(millions of yen)

1,077

352

413

640

702

(millions of yen)

9,855

10,006

10,827

11,034

10,704

Total leasable area

(properties)(Note3)

Occupancy rate at end of period

NOI(Note2)(Note1) Basic earnings per unit is calculated by dividing profit by the daily weighted average number of investment units issued and outstanding (696,324 units,698,704 units,763,508 units,771,224 and 771,224 units for the 13th,14th,15th, 16th and 17th fiscal periods, respectively).
(Note2) The indicators are calculated as follows:
Ordinary profit to total assets: Ordinary profit ÷ Average total assets × 100; Average total assets = (Total assets at beginning of period + Total assets at end of period) ÷ 2
Return on unitholders’ equity: Profit ÷ Average net assets × 100; Average net assets = (Net assets at beginning of period + Net assets at end of period) ÷ 2
Unitholders’ equity to total assets: Net assets at end of period ÷ Total assets at end of period × 100
Payout ratio: Total distribution amount (excluding distributions in excess of earnings) ÷ Profit × 100 (rounded down to the first decimal place)
NOI: Rental operating income (Lease business revenue + Other lease business revenue – Expenses related to rental business) + Depreciation + Loss on retirement of noncurrent assets(Note3) The total leasable area is equal to the gross floor area of leasable space in each property excluding properties for which we acquire land only, based on the leaseagreements for building or floor plans as of the end of each fiscal period. Total leasable area for properties for which only land is acquired is based on the lease agreement
for land or land plans as of the end of each fiscal period. As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Shiodome Building, Q
plaza HARAJUKU, Tokyu Plaza Ginza (Land) and Ebisu Prime Square, the figures are in proportion to a pro rata share of co-ownership interests of each property (75%,50%, 49%, 35%, 60%, 30% and 51% respectively).
(Note4) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not considered.

2
20

21

(2) Asset Management during the Fiscal Period under Review
1) Transition of Investment Corporation
Activia Properties Inc. (hereinafter referred to as the “Investment Corporation”) was established on September 7, 2011, withunitholders’ capital of ¥200 million (400 units) and TLC Township Inc. (on April 1, 2017, an absorption-type merger took placewith current TLC REIT Management Inc. (hereinafter referred to as the “Asset Manager”) as a surviving company and TLC
Activia Investment Management Inc. (its trade name was changed from TLC Township Inc. on April 1, 2012) as an absorbed
company) as the organizer under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, including
subsequent revisions; hereinafter referred to as the “Investment Trust Act”), and completed its registration in the Kanto Local
Finance Bureau on September 20, 2011 (Director-General of the Kanto Local Finance Bureau No. 73).
After that, the Investment Corporation was listed on the real estate investment trust securities market of Tokyo Stock Exchange,
Inc. (Securities code 3279) on June 13, 2012. On December 19, 2018, the Investment Corporation carried out a publicly offeredcapital increase for the sixth consecutive year, and on January 7, 2019, it carried out a third-party allotment.
“Activia” of “Activia Properties,” the name of the Investment Corporation, has been coined from the words “activate” and “ia,”a suffix meaning “place.” By investing in and managing real estate appropriate to its name, the Investment Corporation seeks to
become an entity capable of broadly energizing society. The Investment Corporation will also select real estate capable ofsustaining customer demand as a location for both corporate activities and urban recreation in popular areas, with the aim of
maximizing the medium- and long-term value of unitholders, supported by its proactive management (management to improvethe circumstances by taking initiatives and acting for the future).
In the fiscal period under review, which ended on May 31, 2020, the Investment Corporation disposed of beneficiary interestsof real estate in trust of A-PLACE Shinbashi Ekimae, in addition to having acquired Ebisu Prime Square (51% co-ownershipinterest). Consequently, the Investment Corporation held 44 properties (with the total acquisition price of ¥509,185 million) at
the end of the fiscal period under review.

2) Investment Environment and Investment Performance
In the first half of the fiscal period under review, the Japanese economy continued on a trend of gradual recovery on the whole
underpinned by improvement in the employment and income environments, and despite apparent weakening still prevailingwith respect to exports and manufacturing. However, due to rapidly deteriorating business conditions as a result of requests forthe public to stay at home and other measures brought about by the spread of COVID-19 in February 2020 and thereafter, theoutlook remains uncertain.
With respect to the environment surrounding retail properties, whereas consumer sentiment has been deteriorating rapidly, theconsumer confidence index is currently showing some signs of bottoming out, according to the Monthly Consumer Confidence
Survey released by the Economic and Social Research Institute, Cabinet Office, Government of Japan. Moreover, measurestaken by respective nations restricting travel and immigration amid proliferation of COVID-19 have affected demand related toinbound tourism. For instance, the number of overseas visitor arrivals to Japan reached a monthly record low in April 2020,
followed by May 2020, according to the Japan National Tourism Organization.
In the rental office market, both occupancy rates and rents have held to high levels particularly in the five central wards ofTokyo (Chiyoda-ku, Minato-ku, Chuo-ku, Shibuya-ku and Shinjuku-ku). Meanwhile, the average vacancy rate in the five
central wards of Tokyo has continued holding to the 1% range, at 1.64% as of the end of May 2020, according to data publishedby Miki Shoji Co., Ltd. Rent levels have been continuing on an upward trajectory as they encounter their longest upward phaseof gains ever with the average rent having been increasing for 77 consecutive months. In major cities outside Tokyo, averagevacancy rates have also remained low while rent levels have been holding to a moderate upward trajectory.
In the J-REIT market, whereas asset sizes have continued to expand against a backdrop of the interest-rate environment
remaining at low levels and a strong real estate market, the situation has become unstable given developments such as a brief
yet substantial drop in the Tokyo Stock Exchange REIT index mainly over concerns about financial results due to the spread of
COVID-19.
The Investment Corporation acquired beneficiary interests of real estate in trust of Ebisu Prime Square (51% co-ownershipinterest) (with the acquisition price of ¥30,700 million) as trust assets on January 10, 2020, and disposed of beneficiary interestsof real estate in trust of A-PLACE Shinbashi Ekimae (with the disposition price of ¥21,000 million) as trust assets on March 19,
2020, in accordance with the basic asset management policy set forth in the Articles of Incorporation.
Consequently, total assets held by the Investment Corporation at the end of the fiscal period under review were 44 properties(with the total acquisition price of ¥509,185 million) with the total leasable area of 425,551.96 m2 (128,727 tsubo).
In addition, the occupancy rate at the end of the 17 th period was 99.8%.

3) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” with the aim of maximizing
medium- and long-term unitholder value, the Investment Corporation has been promoting various initiatives with its sights set
on lowering environmental loads and contributing to our nearby surroundings and local communities, thereby extending beyond
considerations such as location, use, size and qualities. Based on such initiatives, the Investment Corporation’s asset
management company TLC REIT Management Inc. established the “Sustainability Policy,” clearly stating our approach incontributing to sustainable development of society. In July 2019, as material issues that the Investment Corporation needs toaddress, we released quantitative targets encompassing a wider range of performance benchmarks from an environmental
standpoint, and also clearly stated practical management policy to such ends. This involves daily effort to achieve our basic
objective of cutting unit energy consumption, etc. by an annual average of 1% over the medium to long term. Initiatives carriedout in the fiscal period under review include upgrading to LED lighting at some common areas of DECKS Tokyo Beach, icot
Tama Center, Osaka Nakanoshima Building, icot Omori and EDGE Shinsaibashi, and some private areas at A-FLAG KOTTO
DORI, A-PLACE Shibuya Konnoh, A-PLACE Gotanda Ekimae, A-PLACE Shinagawa Higashi, Ebisu Prime Square, APLACE Bashamichi and EDGE Shinsaibashi. Other initiatives included installing air conditioning units and elevators withthose offering greater energy efficiency at A-FLAG SAPPORO; asphalt pavement works incorporating recycled aggregate at
icot Nakamozu, and; replacing toilets with those that use water-saving equipment at Osaka Nakanoshima Building.
Moreover, we continue to engage in annual initiatives geared to acquiring green building certifications. During the fiscal period
under review, we have acquired the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) for Real
Estate certification for the two properties Q plaza SHINSAIBASHI (A class) and A-FLAG BIJUTSUKAN DORI (S class). We
have also acquired the BELS certifications for the one property icot Nakamozu (Kohnan building: five stars, bank building: onestar). As such, a total of 26 of our properties have acquired green building certification, which amounted to 55.7% of ourholdings calculated on the basis of gross floor area (as of May 31, 2020).
At Ebisu Prime Square we took the opportunity to raise awareness of ESG issues by taking part in the Earth Hour event which
involved temporarily switching off the some of the lights located in Ebisu Prime Square’s common areas enlisting cooperationof its tenants. We also cooperated in community activities to coexist with nearby businesses, residents and cities. At Osaka
Nakanoshima Building this involved working in conjunction with nearby buildings in carrying out the Hikari-no-Mi (fruits oflight) project which involves having employees at nearby companies and their families draw smiling faces on fruit bags, thenfitting those fruit bags with LED lights and hanging them on trees located on the premises. We also held a Shiodome Marché
open market event at Shiodome Building.
The Investment Corporation will contribute to achieving a sustainable society by engaging in such initiatives geared to theenvironment and society.

4) Overview of Financing
In the fiscal period under review, the Investment Corporation borrowed funds of ¥31,000 million in order to cover theacquisition costs for beneficiary interests of real estate in trust for the above one property and related costs, and made arepayment of ¥21,000 million from the disposition of beneficiary interests of real estate in trust for the above one property. The
Investment Corporation also borrowed a total of ¥18,298 million largely in order to cover repayment of borrowings andinvestment corporation bonds that had come due, and worked to otherwise maintain a stable financial base through ongoingmoves that have included diversifying repayment dates. As a result, as of the end of the fiscal period under review, the balanceof interest-bearing debt was ¥244,348 million (borrowings of ¥227,348 million and investment corporation bonds of ¥17,000
million). The ratio of interest-bearing debt to total assets (LTV = Balance of interest-bearing debt / Total assets x 100) was
46.5% as of the end of the fiscal period under review. The long-term debt ratio and the ratio of fixed-interest debt to totalinterest-bearing debt were 95.5% and 88.1%, respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review is as follows. This
investment unit does not have a credit rating provided or made available for inspection by a credit rating agency or one
scheduled to be provided or made available for inspection by a credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

Rating

Forecast

Japan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable5) Overview of Financial Results and Distributions
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥14,984 million,¥8,206 million, and ¥7,333 million, respectively, for the fiscal period under review, and profit was ¥7,332 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles of Incorporation),
the decision was made with respect to paying distributions of profits of ¥7,329,712,896, which is the entire amount of the net
profit defined in Article 136, Paragraph 1 of the Investment Trust Act, with such amount excluding a fraction of less than ¥1 of
distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included in tax
deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including
subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). In addition, distributions in excess ofearnings shall be made in an amount decided by the Investment Corporation and equivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item 30 (b) of the Regulations on Accountings of Investment Corporations), taking into
account effects of the deduction in net assets on distribution amounts. During the fiscal period under review, the Investment
Corporation has accordingly decided to distribute ¥3,084,896 as distributions related to allowance for temporary difference
adjustments, calculated to exclude a fraction of less than ¥1 of distributions in excess of earnings per investment unit, with theamount equivalent to deferred losses on hedges of ¥3,443,618. Consequently, distributions per investment unit resulted in¥9,508.

4
22

23

Fluctuation in Market Price of the Investment Securities(3) Capital Increase, etc.
A summary of capital increases until the fiscal period under review is as follows:
Date

Summary

Establishment through private
placement
Capital increase through public
June 12, 2012
offering
Capital increase through thirdJuly 10, 2012
party allotment
Capital increase through public
December 16, 2013
offering
Capital increase through thirdJanuary 15, 2014
party allotment
Capital increase through public
December 17, 2014
offering
Capital increase through thirdJanuary 8, 2015
party allotment
September 7, 2011

October 1, 2015
December 15, 2015
January 6, 2016
December 1, 2016
December 15, 2016
December 13, 2017
December 26, 2017
December 19, 2018
January 7, 2019

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

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

Number of total
investment units issued

Total unitholders’ capital(millions of yen)

Increase

Increase

Total

Remarks

Total

400

400

200

200

(Note 1)

204,100

204,500

90,83491,034(Note 2)

762

205,262

339

91,373(Note 3)

43,100248,362

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

251,0622,044

126,054(Note 5)24,050275,11222,800148,855(Note 6)2,020

277,132

1,915

150,770(Note 7)277,132554,264—

150,770(Note 8)41,870596,134

19,152

169,922(Note 9)3,520

599,654

1,610

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

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

665,2142,116

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

13,793

216,026(Note 13)2,400

698,704

1,064

217,091(Note 14)

67,320766,024

29,036

246,127(Note 15)5,200

771,2242,242

248,370(Note 16)

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

Fiscal periodBusiness period

13th period

14th period

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

(yen)

15th period

16th period

17th period

From December 1, 2018
to May 31, 2019

From June 1, 2019
to November 30, 2019

From December 1, 2019
to May 31, 2020

Highest499,500

518,000

492,500

589,000

582,000

Lowest448,000

466,000

432,000

461,000

227,400(4) Distributions, etc.

As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥14,984 million,¥8,206 million, and ¥7,333 million, respectively, for the fiscal period under review, and profit was ¥7,332 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles of Incorporation),
the decision was made with respect to paying distributions of profits of ¥7,329,712,896, which is the entire amount of the net
profit defined in Article 136, Paragraph 1 of the Investment Trust Act, with such amount excluding a fraction of less than ¥1 of
distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included in tax
deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including
subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). In addition, distributions in excess ofearnings shall be made in an amount decided by the Investment Corporation and equivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item 30 (b) of the Regulations on Accountings of Investment Corporations), taking into
account effects of the deduction in net assets on distribution amounts. During the fiscal period under review, the Investment
Corporation has accordingly decided to distribute ¥3,084,896 as distributions related to allowance for temporary difference
adjustments, calculated to exclude a fraction of less than ¥1 of distributions in excess of earnings per investment unit, with theamount equivalent to deferred losses on hedges of ¥3,443,618. Consequently, distributions per investment unit resulted in¥9,508.
Fiscal periodBusiness period

Unappropriated retained earnings

13th period

14th period

15th period

16th period

17th period

From December 1, 2017 From June 1, 2018 From December 1, 2018 From June 1, 2019 From December 1, 2019
to May 31, 2018
to November 30, 2018
to May 31, 2019
to November 30, 2019
to May 31, 2020
¥6,611,254 thousand¥6,696,690 thousand¥7,726,143 thousand¥7,829,267 thousand¥7,333,243 thousand

Retained earnings¥117 thousand¥311 thousand¥11,589 thousand¥572 thousand¥3,530 thousand

Total distributions¥6,611,137 thousand¥6,696,379 thousand¥7,725,350 thousand¥7,817,897 thousand¥7,332,797 thousand[¥9,462][¥9,584][¥10,017][¥10,137][¥9,508]¥6,611,137 thousand¥6,696,379 thousand¥7,714,553 thousand¥7,817,897 thousand¥7,329,712 thousand[¥9,462][¥9,584][¥10,003][¥10,137][¥9,504]¥－thousand¥－thousand¥10,797 thousand¥－thousand¥3,084 thousand

[¥－]

[¥－]

[¥14]

[¥－]

[¥4]

¥－thousand¥－thousand¥10,797 thousand¥－thousand¥3,084 thousand

[¥－]

[¥－]

[¥14]

[¥－]

[¥4]

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

[¥－]

[¥－]

[¥－]

[¥－]

[¥－]

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

6
24

25

(5) Future Investment Policy and Issues to Address
Although the declaration of a state of emergency (hereinafter referred to as the “Declaration of a State of Emergency”)
regarding the novel coronavirus disease (COVID-19), which was issued on April 7, 2020 under Article 32, Paragraph 1 of the
Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response (Act No. 31 of 2012,
including subsequent revisions), was lifted on May 25, 2020, for all prefectures in Japan, the impact of temporarily closing
businesses and other measures to prevent the spread of infections during the state of emergency remains. In the Japanese
economy going forward, in addition to concerns over a second wave of infections, we believe it is necessary to carefully
monitor corporate earnings, employment and income environments and other economic trends on the domestic front. In
addition, we must also pay attention to the risks of a global economic downturn, etc. caused by the spread of COVID-19 aroundthe world.
In the rental office market, although the conditions are expected to remain stable, we believe that the diversification inworkstyles, including teleworking and other measures brought about by requests for the public to stay at home following the
Declaration of a State of Emergency, has accelerated and it is necessary to keep a close eye on the impact of the COVID-19
pandemic going forward. With respect to the environment surrounding retail properties, although we are currently encountering
prevailing signs of recovery in consumer sentiment, the difficult conditions caused by the decrease in numbers of overseas
visitor arrivals to Japan and other effects of COVID-19 are likely to continue for the time being. While the J-REIT market is
expected to continue to move in prices in the short term, depending on developments of the COVID-19 pandemic, as low
interest rates continue in the environment, long-term capital inflows can be expected against a backdrop of factors that include
consistent J-REIT performance and relatively high dividend yields.
Amid this environment, the Investment Corporation will fulfill its social responsibility in preventing the spread of infections,etc. while minimizing the impact of the COVID-19 pandemic through its abundant management expertise, and pursue internal
growth utilizing the strength of its portfolio with rigorously selected investment assets, aiming to improve unitholder value.

(6) Significant Matters after Book Closing
Not applicable.

1) Basic Policy
The Investment Corporation’s basic policies are to invest in assets, with targeted investments in Urban Retail and Tokyo Officeproperties; utilize the Tokyu Fudosan Holdings Group’s value chain based on the comprehensive support system; and agovernance structure that maximizes unitholder value.

2) External Growth Strategy
The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main target. It will make its
investment decisions carefully, concentrating on selecting properties in excellent locations, including surrounding areas, andthoroughly considering individual factors such as use, size, specifications and other qualities of properties, and credibility andname recognition of tenants, in order to construct a competitive portfolio in the medium to long term.
To acquire these competitive assets on an ongoing basis, the Investment Corporation will work to maintain and improve thequality of its portfolio by rigorously selecting investment assets based on the information it receives under its sponsor support
agreement with Tokyu Land Corporation regarding the Investment Corporation and its support agreement with five groupcompanies in the Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive know-how andinformation-gathering network of the Asset Manager.

3) Internal Growth Strategy
The Investment Corporation will operate, manage, and refurbish its portfolio to maintain and improve the competitiveness of its
facilities through a comprehensive understanding of the features of its overall portfolio and its individual assets undermanagement, based on the unique expertise of its Asset Manager. The Investment Corporation will also seek to manage its
portfolio in a stable manner and strengthen its earnings by establishing appropriate operational and management systems
tailored to the specific characteristics of the assets it has invested in, and through regular and non-regular inspections by theproperty management company that has considerable experience in the operation and management of real estate.
The Investment Corporation will also maintain and improve the value of its assets through its expertise in internal growththrough operating and managing properties. It will maximize the competitiveness of its assets through the ongoing assistance of
Tokyu Land Corporation and other support companies, which, through their face-to-face business with consumers, have richinformation regarding consumer needs and developments in industries such as retail and services.
With respect to the property management business for the assets under management, leasing support has been provided from
Tokyu Land Corporation, Tokyu Land SC Management Corporation or Tokyu Community Corp.

4) Financial Strategy
Having a sound financial strategy in an effort to conservatively control LTV as well as make stable long-term borrowings anddiversify maturities (diversifying repayment dates), the Investment Corporation will endeavor to build a stable financial basewith a solid bank formation based on good relationships with major financial institutions. In addition, with the aim ofdiversifying means of raising funds, the Investment Corporation will issue investment corporation bonds while paying close
attention to trends in financial markets. Concerning the issuance of new investment units, moreover, the Investment Corporation
will prudently and flexibly carry out such issuance while paying appropriate attention to various environmental factors with theaim of achieving long-term and stable growth.

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26

27

2. Overview of the Investment Corporation(3) Matters Relating to Officers, etc.

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

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

Number of unitholders

13th period
As of May31, 2018

14th period
As of November
30, 2018

15th period
As of May31, 2019

16th period
As of November
30, 2019

17th period
As of May31, 2020

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

698,704

698,704

771,224

771,224

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

7,162

6,910

7,680

6,914

7,758

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

The top 10 unitholders as of the end of the fiscal period under review are as follows:
Percentage of total units issued (%)(Note)

Japan Trustee Services Bank, Ltd. (Trust accounts)

168,340

21.82

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

113,039

14.65

Tokyu Land Corporation

73,425

9.52

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

35,601

4.61

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

22,3482.89

Mizuho Securities Japan Co., Ltd.

19,966

2.58

State Street Bank & Trust Company(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited. Tokyo office)16,8962.19

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

11,492

1.49

SMBC Nikko Securities Inc.

10,334

1.33

The bank of New York Mellon 140044

9,230

1.19

480,671

62.32

Total

(Note 1)Supervisory
Directors(Note 1)Name of officer, etc.

Major concurrent post, etc.

Kazushi Sato

TLC REIT Management Inc.,
Chief Division Officer of Activia
Management Division

Yonosuke Yamada

Yamada, Goya and Suzuki Law Office
Managing Partner

Yoshinori Ariga

Ariga Yoshinori Accounting Office
Managing Partner

Ernst & Young ShinNihon
LLC－

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

－

3,300

11,600(Note 2)

(Note 1) Executive director or supervisory directors do not hold any investment units of the Investment Corporation under their or another person’s name.
Supervisory directors may serve as directors of companies other than those mentioned above, but there are no mutual business interests whatsoever
between such companies and the Investment Corporation.
(Note 2) Compensation for the independent auditor includes the audit fees for financial statements prepared in English.

(2) Matters Relating to Investment Units

Number of units
owned

Executive
Director

Independent
Auditorconsidered.

Name

Title

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

(4) Asset Manager, Custodian Company, and Administrative Agent
Consignment classification

Name

Asset manager

TLC REIT Management Inc.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (unitholder registry administration, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting service, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administrative service)

Sumitomo Mitsui Trust Bank, Limited

General administrator (investment corporation bond service)

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited(Note) The percentage of total units issued is calculated by rounding down to the second decimal place.

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29

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

A summary of properties owned and under management by the Investment Corporation as of the end of the fiscal period
under review is as follows:(1) Composition of Assets of the Investment Corporation

Type of assets

Category

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)

Urban Retail Properties

―

―

―

―

Tokyo Office Properties

―

―

―

―

Activia Account Properties

―

―

―

―

Subtotal

―

―

―

―

Urban Retail Properties

198,88138.6

198,791

37.8

Tokyo Office Properties

195,10137.8

204,91639.0(Note 1)

Real estate

Real estate in trust

17th period
As of May 31, 2020

Activia Account Properties
Subtotal

102,648(Note 1)

19.9

102,56319.5

496,63196.3

506,272

96.3

Total real estate, etc.

496,63196.3

506,272

96.3

Deposits and other assets

18,8493.7

19,414

3.7

515,480100.0

525,686

100.0

Total assets (Note 2)(496,631)(96.3)(506,272)

Urban Retail Properties

16th period
As of Nvember 30, 2019

Location

Tokyu Plaza Omotesando
Harajuku (Note 4)30-3 Jingu-mae 4-chome, Shibuya-ku, Tokyo

Tokyu Plaza Akasaka (Note 4)

14-3 Nagatacho 2-chome, Chiyoda-ku,
Tokyo

Q plaza EBISU

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

Kyoto Karasuma Parking
Building
Kobe Kyu Kyoryuchi
25Bankan

678 Motohonenjicho, Nakagyo-ku, Kyoto
City, Kyoto(96.3)

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

A-FLAG SHIBUYA

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

Q plaza SHINSAIBASHI
A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI

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

TLC Ebisu Building
A-PLACE Ebisu Minami

A-PLACE Aoyama

Ratio of rental
revenue tototal rental
revenues (%)

Luogo Shiodome

Major use
Tokyo Office Properties

Occupancy
rate (%)(Note 3)

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

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

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

TAMACHI SQUARE (Land)

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

A-PLACE Ikebukuro

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

A-PLACE Shinbashi

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

A-PLACE Gotanda

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

A-PLACE Shinagawa

8-40, Konan 1-chome, Minato-ku, Tokyo

Shiodome Building (Note 4)

70,75528,136.05

28,136.05

100.0

10.4

OfficeTokyu Plaza Omotesando
Harajuku (Note 4)

44,666

4,918.44

4,899.86

99.6

5.2

RetailTokyu Plaza Ginza (Land) (Note 4)

37,8951,130.04

1,130.04

100.0

3.9

RetailOSAKI WIZTOWER

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

Ebisu Prime Square

31,062

18,063.02

17,738.37

98.2

4.5

OfficeShiodome Building (Note 4)

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

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

Kobe Kyu Kyoryuchi 25Bankan
EDGE Shinsaibashi

20,437
19,985

19,653.90
15,897.66

19,653.90
15,897.66

100.0
100.0

5.2
3.5

OfficeUmeda Gate Tower

19,236

13,624.49

13,624.49

100.0

3.2

OfficeA-PLACE Shinagawa Higashi

18,806

14,658.98

14,658.98

100.0

3.6

OfficeQ plaza SHINSAIBASHI

13,4122,820.23

2,820.23

100.0

2.4

RetailQ plaza HARAJUKU (Note 4)

13,324

3,378.49

3,378.49

100.0

1.6

Retail289,583

122,281.30

121,938.07

99.7

43.5

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

Asset type
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

Subtotal

Major assets owned by the Investment Corporation (the 10 largest properties by book value) as of the end of the fiscal period
under review are as follows:
Leased area(m2)
(Note 2)

11-6, Sarugakucho, Shibuya-ku, Tokyo

Tokyu Plaza Ginza (Land)(Note 4)Q plaza HARAJUKU (Note 4)(2) Major Assets Owned

Leasable area(m2)
(Note 1)

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

DECKS Tokyo Beach (Note 4)

A-PLACE Yoyogi

Book value at endof period(millions of yen)

25 Kyomachi, Chuo-ku, Kobe City, Hyogo

A-FLAG SAPPORO

A-FLAG DAIKANYAMA
WEST
A-FLAG KITASHINSAIBASHI(Note 1) The total amount of assets owned is based on the amounts on the balance sheets as of the end of each fiscal period (for real estate and real estate in trust,book value less depreciation expenses), in accordance with the asset valuation method set forth in the Articles of Incorporation of the Investment
Corporation.
(Note 2) Total assets represent the amounts recorded on the balance sheets as of the end of each fiscal period. The figures in parentheses represent portions thatpractically correspond to real estate owned in the object assets.

Property name

Property name13-11 Higashi 3-chome, Shibuya-ku, Tokyo
3-1 Shibuya 3-chome, Shibuya-ku, Tokyo

A-PLACE Gotanda Ekimae

5-1 Nishigotanda 1-chome, Shinagawa-ku,
Tokyo

A-PLACE Shinagawa Higashi

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

Ebisu Prime Square (Note 4)

1-9,39,40 Hiroo 1-chome, Shibuya-ku,
Tokyo

Subtotal

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

Total leasable area(m2)
(Note 1)

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

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

4,918.44

62,77544,666

16,609.75

15,100

11,6394,024.88

11,8008,196

21,616.04

10,7008,688

19,653.90

27,30020,437

21,229.16

7,720

4,909

3,403.07

7,920

6,338

2,820.23

14,70013,4122,656.53

4,840

4,395

1,994.65

4,860

4,723

2,579.08

2,400

2,411

2,538.13

4,760

4,833

16,125.56

12,691

12,9191,130.04

39,00037,895

3,378.49

13,30013,324

124,677.95

239,866

198,791

7,342.60

11,7007,168

7,950.49

15,3009,334

3,106.17

4,980

3,861

7,303.69

10,3008,567

4,476.35

6,410

4,184

1,287.96

2,840

2,362

3,409.73

5,560

3,695

5,054.19

7,330

5,795

4,028.69

7,970

5,449

2,986.36

6,030

3,771

7,193.28

14,50010,56828,136.05

77,70070,7554,010.69

7,720

7,048

3,010.53

5,730

4,935

4,328.32

7,870

7,547

14,658.98

21,00018,806

18,063.02

31,20031,062

126,347.10

244,140

204,916

Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements forbuilding or floor plans as of May 31, 2020 and leasable space for properties for which we acquire only land, based on lease agreements for land or landplans as of May 31, 2020.
Leased area refers to the leased area of each property based on lease agreements as of May 31, 2020. For properties with master lease agreements,
leased area refers to leased areas of each property and is actually leased based on sublease agreements with end-tenants.
Occupancy rate refers to the percentage of total leased area for each property to total leasable area for each property as of May 31, 2020, rounding down
to the first decimal place.
As for Shiodome Building, Tokyu Plaza Omotesando Harajuku,Tokyu Plaza Ginza (Land), Ebisu Prime Square and Q plaza HARAJUKU, the figures
are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (35%, 75%, 30%, 51% and 60%, respectively).

12
30

31

Amagasaki Q’s MALL (Land)
icot Nakamozu

Activia Account Properties

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

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

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

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

Asset type

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

Total leasable area(m2)
(Note 1)

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

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

27,465.44

14,20012,11328,098.02

10,8008,034

14,032.05

3,240

2,604

5,181.58

4,000

2,596

9,314.90

8,770

6,231

20,226.77

16,30011,122

6,209.79(Note 5)

6,870

5,711

15,152.42

5,010

4,638

13,624.49

21,4009,710.91
9,612.88

4,740
6,290

Changes in key figures in the rental business (figures by property owned and under management by the Investment Corporation)
16th period(From June 1, 2019 to November 30, 2019)17th period(From December 1, 2019 to May 31, 2020)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Tokyu Plaza
Omotesando Harajuku(Note 4)

35

100.0

1,115

7.3

34

99.6

775

5.2

Tokyu Plaza Akasaka(Note 4)

95

99.9

667

4.4

93

99.2

575

3.9

Property name

Q plaza EBISU

4

100.0

277

1.8

4

100.0

268

1.8

Kyoto Karasuma
Parking Building

2

100.0

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

A-FLAGAKASAKA(Note 4)

1

0.0

－

－

－

－

－

－

19,236

Kobe Kyu Kyoryuchi
25Bankan

7

100.0

743

4.9

7

100.0

774

5.2

3,976

A-FLAG SAPPORO

16

99.6

636

4.2

17

100.0

412

2.8

A-FLAG SHIBUYA

2

100.0

220

1.4

2

100.0

217

1.5

Q plaza
SHINSAIBASHI

6

100.0

358

2.4

6

100.0

351

2.4

A-FLAG KOTTO
DORI

7

100.0

124

0.8

8

100.0

125

0.8

A-FLAG
BIJUTSUKAN DORI

4

100.0

128

0.8

4

100.0

125

0.8

A-FLAGDAIKANYAMA
WEST

1

100.0

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

A-FLAG KITASHINSAIBASHI

5

100.0

105

0.7

5

100.0

99

0.7

DECKS Tokyo Beach(Note 4)

81

99.2

620

4.1

80

99.1

447

3.0

Tokyu Plaza Ginza(Land) (Note 4)

1

100.0

571

3.8

1

100.0

571

3.9

Q plaza HARAJUKU(Note 4)

16

100.0

243

1.6

16

100.0

241

1.6

99.8

－

－

99.8

－

－

6,313

15,897.66

20,00019,985

Subtotal

174,526.91

121,620

102,563

Total

425,551.96

605,626

506,272

Urban Retail Properties

Property name(Note 1) Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of May 31, 2020 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of May 31, 2020.
(Note 2) The appraisal of each property is commissioned to the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd.,
Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K.. Assessed value at end of period stands for the appraised value described in each real estateappraisal report, with May 31, 2020 taken as the point of evaluation.
(Note 3) Book value at end of period stands for the book value minus depreciation as of May 31, 2020, rounded down to the nearest ¥ million.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU, Shiodome Building andEbisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (75%, 50%, 49%, 30%, 60%,
35%, and 51%, respectively).
(Note 5) The calculation of total leasable area for icot Omori includes part of an external bicycle parking lot (approximately 21 m2) and part of a common area on the second
floor (approximately 28 m2).

Tokyo Office Properties

Subtotal

282

280

TLC Ebisu Building

12

100.0

339

2.2

12

100.0

342

2.3

A-PLACE Ebisu
Minami

11

100.0

389

2.6

10

100.0

388

2.6

A-PLACE Yoyogi

3

100.0

135

0.9

3

100.0

136

0.9

A-PLACE Aoyama

8

100.0

315

2.1

8

100.0

309

2.1

Luogo Shiodome

7

100.0

182

1.2

7

100.0

183

1.2

TAMACHI SQUARE(Land)

1

100.0

62

0.4

1

100.0

62

0.4

A-PLACE Ikebukuro

1

100.0

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

A-PLACE Shinbashi

10

100.0

206

1.4

10

100.0

200

1.4

A-PLACE Gotanda

11

100.0

193

1.3

11

100.0

197

1.3

A-PLACE Shinagawa

8

100.0

129

0.9

8

100.0

136

0.9

OSAKI WIZTOWER

5

100.0

354

2.3

5

100.0

345

2.3

Shiodome Building(Note 4)

38

99.7

1,568

10.3

40

100.0

1,539

10.4

A-PLACE Ebisu
Higashi

8

100.0

176

1.2

7

100.0

185

1.2

A-PLACE Shibuya
Konnoh

4

100.0

117

0.8

4

100.0

144

1.0

A-PLACE Gotanda
Ekimae

10

100.0

190

1.3

12

100.0

187

1.3

A-PLACE Shinagawa
Higashi

9

100.0

534

3.5

8

100.0

540

3.6

A-PLACE Shinbashi
Ekimae

6

100.0

400

2.6

－

－

238

1.6

Ebisu Prime
Square(Note 4)

－

－

－

－

107

98.2

669

4.5

Subtotal

152

99.9

－

－

254

99.7

－

－

14
32

33

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

Property name

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

1

100.0

356

2.3

1

Activia Account Properties

Amagasaki Q’s
MALL (Land)

4. Capital Expenditure for Assets under Management

17th period(From December 1, 2019 to May 31, 2020)
Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues
(%)

100.0

356

2.4

icot Nakamozu

2

100.0

310

2.0

2

100.0

310

2.1

icot Mizonokuchi

1

100.0

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

icot Tama Center

9

100.0

146

1.0

10

100.0

143

1.0

A-PLACE Kanayama

21

100.0

294

1.9

21

100.0

295

2.0

Osaka Nakanoshima
Building

40

100.0

544

3.6

39

100.0

543

3.7

icot Omori

8

100.0

234

1.5

8

100.0

224

1.5

Market Square
Sagamihara

3

100.0

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

Umeda Gate Tower

15

100.0

475

3.1

15

100.0

471

3.2

A-PLACE Bashamichi

34

100.0

185

1.2

36

98.3

183

1.2

Commercial Mall
Hakata

18

95.0

220

1.4

19

100.0

162

EDGE Shinsaibashi

23

100.0

487

3.2

22

100.0

Subtotal

175

99.7

－

－

177

Total

609

99.8

15,199100.0

711(Receive floating pay fixed)
Total

Payment forthe period

Totalamountpaid

A-PLACE Ebisu Minami Large-scale repair work
(Shibuya, Tokyo)(Second period)

From June 2021
to November 2021

160

–

–

1.1

icot Nakamozu(Sakai, Osaka)

Large-scale repair work
(First period)

From March 2021
to May 2021

150

–

–

521

3.5

icot Nakamozu(Sakai, Osaka)

Large-scale repair work
(Second period)

From September 2021
to November 2021

150

–

–

99.9

－

－

99.8

14,840100.0

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units (First
period)From April 2021
to May 2021

136

–

–

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units (Second
period)From October 2021
to November 2021

136

–

–

A-PLACE Bashamichi(Yokohama, Kanagawa)

Large-scale repair work

From June 2020
to May 2021

96

–

–

Osaka Nakanoshima
Building(Osaka, Osaka)

Replacement of elevators(elevators No. 1 and 2)

From May 2020
to August 2020

94

–

–

DECKS Tokyo Beach(Minato, Tokyo)

Renovation of 3rd floor
Seaside Deck

From May 2021
to May 2021

80
(Note)––A-PLACE Gotanda
Ekimae(Shinagawa, Tokyo)

Large-scale repair work

From July 2020
to May 2021

79

–

–

Luogo Shiodome(Minato, Tokyo)

Large-scale repair work

From December 2019
to July 2020

77

–

–

A-FLAG SHIBUYA(Shibuya, Tokyo)

Renewal of escalators

From November 2020
to May 2022

64

–

–

TLC Ebisu Building(Shibuya, Tokyo)

Installation of LED lighting

From July 2020
to September 2020

49

–

–

EDGE Shinsaibashi(Osaka, Osaka)

Maintenance of mechanicalparking equipment (vertical
From December 2019rotary equipment)
to June 2020
Replacement, etc. ofintermediate chain guide
rails

31

–

–

A-PLACE Shinagawa
Higashi(Minato, Tokyo)

Installation of LED lighting From September 2020
(First period)to November 2020

30

–

–

Umeda Gate Tower(Osaka, Osaka)

Repair work for indoor andoutdoor air conditioning
units in private areas

From July 2020
to November 2020

30

–

–

TLC Ebisu Building(Shibuya, Tokyo)

Renewal of automatic
security system

From October 2020
to November 2020

28

–

–

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair of lavatory plumbing From July 2020
for 6th and 7th floors
to September 2020

28

–

–

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair of lavatory plumbing From July 2020
for 8th and 9th floors
to September 2020

28

–

–

Notional contract amount (Note 1)
Over 1 year

Fair value(Note 2) (Note 3)

30,140,000

30,140,000△3,44330,140,000

30,140,000△3,443(5) Other Assets
There are no major incorporations of other specified assets that are the principal investment targets of the Investment
Corporation as of the end of the fiscal period under review.

Not applicable for countries and regions other than Japan.

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

(6) Ownership of Assets by Country and Region

Scheduled period–(thousands of yen)Interest rate swaps

Purpose160

The outstanding contract amount and fair value of specified transactions as of the end of the fiscal period under review
are as follows:

Over-the-counter

Name of real property(Location)

Estimated construction cost
(millions of yen)

From November 2020
to May 2021

(4) Details of Specified Transaction

Transaction

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

A-PLACE Ebisu Minami Large-scale repair work
(Shibuya, Tokyo)(First period)(Note 1) The number of tenants refers to the total number of tenants for each property at the end of each fiscal period, based on each lease agreement. In the casewhere a master lease agreement is in place, the number of end tenants is counted. In the case of a property for which only land is acquired, the total numberof tenants on the land is counted.
(Note 2) Occupancy rate refers to the percentage of leased area to leasable area for each property as of the end of each fiscal period, rounding down to the firstdecimal place.
(Note 3) Rental revenue includes other rental revenue.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, A-FLAG Akasaka, DECKS Tokyo Beach, Tokyu plaza Ginza (Land), Q plaza
HARAJUKU, Shiodome Building and Ebisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownershipinterest of each property (75%, 50%, 50%, 49%, 30%, 60%, 35% and 51%, respectively). A-FLAG Akasaka and A-PLACE Shinbashi Ekimae were
disposed on June 3, 2019 and March 19, 2020, respectively.
(Note 5) Rental revenue and the ratio of rental revenue to total rental revenues are not disclosed, as consent from tenants has not been obtained.

Classification(1) Scheduled Capital Expenditure

16
34

35

Name of real property(Location)

Estimated construction cost
(millions of yen)
PurposeScheduled period

TotalamountPayment forthe period

Totalamountpaid––

Maintenance of air
A-PLACE Ebisu Minami
conditioning units(Shibuya, Tokyo)(replacement of sensors)

From July 2020
to November 2020

A-PLACE Shinagawa(Minato, Tokyo)

Renewal of automatic
security system

From October 2020
to November 2020

DECKS Tokyo Beach(Minato, Tokyo)

Outer wall repair work

From November 2020
to November 2020

A-PLACE Shibuya
Konnoh(Shibuya, Tokyo)

From June 2020
Installation of LED lighting
to November 2020

Ebisu Prime Square(Shibuya, Tokyo)

Replacement of residential
tower’s calorimeter

From October 2020
to November 2020

16
(Note)–A-FLAG SHIBUYA(Shibuya, Tokyo)

Replacement of sprinkler
From July 2020
pump and fire extinguishing
to November 2020
pump panel

15–

A-PLACE Shinagawa
Higashi(Minato, Tokyo)

Replacement of halon fire
extinguishing system

From June 2020
to September 2020

14

A-PLACE Yoyogi(Shibuya, Tokyo)

Maintenance of air
conditioning units

From July 2020
to August 2020

Osaka Nakanoshima
Building(Osaka, Osaka)

Replacement of disasterprevention pump

From July 2020
to November 2020

Tokyu Plaza Omotesando
Renovation work for roof
Harajuku
deck (Second period)(Shibuya, Tokyo)

From November 2020
to November 2020

24
18

–

–

17
(Note)

–

–

17

–

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

Purpose

PeriodConstruction cost
(Millions of yen)

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of elevators (elevators
No. 5 and 6)

From November 2019
to February 2020

88

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of elevators (elevators
No. 3 and 4)

From March 2020
to May 2020

85

A-FLAGDAIKANYAMA WEST
(Shibuya, Tokyo)

Paint renewal work on entire outerwall

From May 2020
to May 2020

65

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of rainwater drain andhot water main pipe for upper floors

From December 2019
to April 202040–

Osaka Nakanoshima Building(Osaka, Osaka)

Repair of lavatory plumbing for 12th
to 15th floors

From February 2020
to May 2020

37

–

–

Ebisu Prime Square(Shibuya, Tokyo)

Installation of air conditioning units
and control equipment on standard
floors in the tower building

From January 2020
to March 2020

26
(Note)

13––

A-FLAG SAPPORO(Sapporo, Hokkaido)

Repair work on mechanical parking
equipment No. 2

From March 2020
to April 2020

23

13

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Work to increase capacity of air
conditioning equipment (gas-heatpump (GHP) air conditioning
systems) for small banquet halls on
2nd floor

From March 2020
to May 2020

19

DECKS Tokyo Beach(Minato, Tokyo)

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

From October 2019
to March 2020

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

Replacement of elevator controls(elevator No. 7)

From March 2020
to March 2020

14

A-FLAG BIJUTSUKAN DORI
(Minato, Tokyo)

Replacement of air conditioning
equipment on 1st and 2nd basement
floorsFrom January 2020
to January 2020

14

A-PLACE Aoyama(Minato, Tokyo)

Partial renovation of central
monitoring panel

From February 2020
to May 2020

13

Osaka Nakanoshima Building(Osaka, Osaka)Renewal of capacitors

From December 2019
to March 2020

11

12
(Note)––––A-PLACE Bashamichi(Yokohama, Kanagawa)

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

Ebisu Prime Square(Shibuya, Tokyo)

Pressure resistance testingfor carbon dioxide container From September 2020
valves, etc. (concurrently
to October 2020
used for three buildings)

A-FLAGDAIKANYAMA WEST
(Shibuya, Tokyo)

Replacement of halon
container valves

From October 2020
to November 2020

10

A-FLAGDAIKANYAMA WEST
(Shibuya, Tokyo)

Work to change toelectronic locks in thebuilding

From November 2020
to November 2020

10

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

A-FLAGDAIKANYAMA WEST
(Shibuya, Tokyo)

Replacement of pneumatic automatic
From March 2020
control equipment and removal work
to May 2020
therefor

Installation of additional
security cameras

From November 2020
to November 2020

10

–

–

DECKS Tokyo Beach(Minato, Tokyo)

Renewal work for signs on allbuildings

1211(Note)

–

–

–

–

–

–

From December 2019
to December 20191010
(Note)(Note) The shown estimated construction cost with regard to Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach and Ebisu prime Square is the

Other

222

amount equivalent to the ratio of the Investment Corporation’s co-ownership interests of real estate trust beneficiary (75%, 49% and 51%,

Tatal

702

respectively).

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

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

18
36

37

5. Expenses and Liabilities(2) Borrowings

The status of borrowings from financial institutions as of May 31, 2020 is as follows:(1) Details of Expenses Related to Asset Management, etc.
Item(a) Asset management fees (Note)(b) Asset custody fees

16th period(From June 1, 2019
to November 30, 2019)(thousands of yen)
17th period(From December 1, 2019
to May 31, 2020)

1,249,529

1,104,664

14,641

15,029(c) Administrative service fees

37,87436,852(d) Directors’ compensation

3,300

3,300

(e) Other operating expenses
Total

92,843

147,558

1,398,189

1,307,404(Note) Asset management fees contain acquisition fees that were included in the book value of acquired properties (17th fiscal period: ¥153,500 thousand).

Category
Lender

Draw
down
date

Sumitomo Mitsui Trust
Bank, Limited
January 10,
Mizuho Bank, Ltd.
2019
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
January 30,
2020
Short- Mizuho Bank, Ltd.
term MUFG Bank, Ltd.
loans Sumitomo Mitsui Trust
payable Bank, Limited
April 17,2020
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
January 10,
Mizuho Bank, Ltd.
2020
MUFG Bank, Ltd.
Total
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Longterm Sumitomo Mitsui Trustloans Bank, Limited
payable MUFG Bank, Ltd.
(Note 2) (Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
The Gunma Bank, Ltd.
The Norinchukin Bank

January 10,
2014

BeginningbalanceUse offunds

Remarks

0.18548% January 10,2020(Note 3)

Unsecured,
non-guaranteed–

2,000,000
1,000,000–––

1,600,000

November
30,
2020(Note 7)

Unsecured,
non-guaranteed

666,000

November
30,
2020(Note 7)

Unsecured,
non-guaranteed

January 12,2021(Note 3)

Unsecured,
non-guaranteed

–
–
–
–
–
–

1,600,000 0.20364%
800,000
666,000 0.35059%
666,000
2,000,000– 2,000,000 0.19966%– 1,000,000
5,000,000 10,998,000
160,000– 0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

160,000– 0.93846% January 10,2020(Note 3)

Unsecured,
non-guaranteed

160,000(Note 3)(Note 4)1,500,00010,– 0.93846% January
2020
January10,– 0.93846%
2020
10,– 0.93846% January
2020
January 10,– 0.93846%
2020– 0.72546% January 10,
2020
January 10,– 0.72546%
2020– 0.72546% January 10,
2020
10,– 0.72546% January
2020
January 10,– 0.72546%
2020
10,– 0.72546% January
2020–

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

1,000,000–

500,000
500,000––(Note 4)

Unsecured,
non-guaranteed

160,000

80,000600,000
600,000
600,000
600,000
300,000
300,000
March 31,2015

(Unit: Thousands of yen)

Maturity
date

2,000,000

80,000July 9,2014

Averageinterest rate
(Note 1)Endingbalance0.52500%

March 31,2020

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

20
38

39

Category
Lender

Draw
down
date

Sumitomo Mitsui Trust
Bank, Limited

Beginningbalance
1,060,000

MUFG Bank, Ltd.
(Note 6)

Endingbalance

Averageinterest rate
(Note 1)

1,060,000 1.07980%

1,060,000

1,060,000 1.07980%

1,060,000

1,060,000 1.07980%

1,060,000

1,060,000 1.07980%

Sumitomo Mitsui
Banking Corporation

530,000

530,000 1.07980%

Development Bank ofJapan Inc.

530,000

530,000 1.07980%

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

1,340,000

1,340,000 1.07856%

1,340,000

1,340,000 1.07856%

Mizuho Bank, Ltd.

1,340,000

1,340,000 1.07856%

1,340,000

1,340,000 1.07856%

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

MUFG Bank, Ltd.

December19, 2013

January
10, 2014

Sumitomo Mitsui
Banking Corporation
Long- Development Bank ofterm Japan Inc.
loans Nippon Life Insurance March 31,
payable Company
2017(Note 2) Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
January
10, 2019
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJanuaryJapan Inc.
10, 2019
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
January 5,
2018
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

January 9,
2015

670,000

670,000 1.07856%

670,000

670,000 1.07856%

500,000

500,000 0.25000%

3,920,000

3,920,000

3,920,000
1,970,000

3,920,000
0.21696%
1,970,000

1,970,000

1,970,000

1,970,000

1,970,000 0.36607%

320,000

320,000

640,000
320,000
160,000

640,000
320,000 0.41931%
160,000

160,000

160,000

840,000

840,000 0.73690%

840,000

840,000 0.73690%

840,000

840,000 0.73690%

840,000

840,000 0.73690%

420,000

420,000 0.73690%

420,000

420,000 0.73690%(Unit: Thousands of yen)
Maturitydate

Use offunds

Remarks(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

July 12,2021(Note 3)

Unsecured,
non-guaranteed

July 12,2021(Note 3)

Unsecured,
non-guaranteed

December
19,
2020
December
19,
2020
December
19,
2020
December
19,
2020
December
19,
2020
December
19,
2020
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
March 31,2021

(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)Category
LenderSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.

January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,2022(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

BeginningbalanceEndingbalanceJanuary
10, 2020

Averageinterest
rate(Note 1)

(Unit: Thousands of yen)
Maturitydate

Use offunds

Remarks–

1,420,000––

1,420,000
January 11,
0.20966%2022
720,000(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed–

720,000

January
10, 2020–11,
720,000 0.31571% January
2022

March 31,2015

2,000,000

2,000,000

500,000

500,000

March 31,2017

400,000

400,000

400,000

400,000

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000 0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000 0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000 0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000 0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

200,000

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui
Banking Corporation

100,000

100,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000

100,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560,000

1,560,000

Mizuho Bank, Ltd.

1,560,000

1,560,000

MUFG Bank, Ltd.

1,560,000

1,560,000(Note 4)160,000

160,000

June 15,2022

Unsecured,
non-guaranteed

160,000

160,000

Shinkin Central Bank
Tokio Marine &Nichido Fire Insurance
Co LtdThe 77 Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.

June 15,
2015

Long- MUFG Bank, Ltd.
term
loans
payable Sumitomo Mitsui Trust(Note 2) Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.

December
28,
2021

Draw
down
date

MUFG Bank, Ltd.

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

December16, 2015

June 13,2018

0.44835%

22
40

41

Category
Lender

Draw
down
date

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
January 9,
2019
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
(Note 6)
September
30, 2015
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
(Note 6)
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
March 30,
2018
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Long- Mizuho Bank, Ltd.
October 6,
term Sumitomo Mitsui2016loans Banking Corporation
payable Development Bank of(Note 2) Japan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
(Note 6)
June 15,2015
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
December16, 2015
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
June 13,
MUFG Bank, Ltd.
2017
Mizuho Bank, Ltd.
Taiyo Life Insurance
Company
March 31,
Mitsui Sumitomo
2017
Insurance Company,
LimitedBeginningbalanceEndingbalance

620,000

620,000

620,000
620,000

620,000
620,000

320,000

320,000

320,000
1,250,000

1,250,000
1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

750,000

750,000

750,000
750,000

750,000
750,000

375,000

375,000

800,000
1,600,000
800,000
400,000
400,000

0.38236%0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)0.44804%(Note 4)

Remarks

Unsecured,
non-guaranteed

March 30,
2023
March 30,
2023
March 30,
2023
March 30,
2023

March 30,2023

(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

800,000
1,600,000
800,000 0.38472%
400,000

April 6,2023

(Note 3)

Unsecured,
non-guaranteed

400,000

1,500,000

1,500,000 1.06316%

1,500,000

1,500,000 1.06316%

1,500,000

1,500,000 1.06316%

625,000

625,000 0.75387%

2,500,000
1,250,000

January 10,
2023

Use offunds

375,000

1,500,000 1.06316%

625,000

Maturity
date

625,000 0.75387%
1,250,000

2,500,000 0.46400%
1,250,000

500,000

500,000

500,000

500,000

Category
Lender

0.35998%

Resona Bank, Limited.

March 31,2020–

1,500,000 0.19436%

The Gunma Bank, Ltd.

March 31,2020–

500,000 0.23436%

June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023
September
29,
2023
September
30,
2023
September
30,
2023(Note 4)(Note 4)(Note 4)(Note 4)(Note 3)(Note 3)(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

Draw
down
date

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

1,500,000

1,250,000(Unit: Thousands of yen)

320,000

1,250,000

375,000

Averageinterest
rate(Note 1)

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
January
10, 2020
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka, March 31,
2017
Ltd.
Long- Shinkin Central Bank
term The Norinchukin Bankloans Sumitomo Mitsui Trust
payable Bank, Limited(Note 2) MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

December16, 2015

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
June 13,2016
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
June 13,2016
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
September
21, 2016
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

(Unit: Thousands of yen)

BeginningbalanceEndingbalanceMaturitydate

Use offunds

Remarks

1,400,000

1,400,000 0.78362% January 12,
2024
January 12,
1,400,000 0.78362%
2024
1,400,000 0.78362% January 12,2024
12,1,400,000 0.78362% January
2024
January 12,
700,000 0.78362%
2024
12,
700,000 0.78362% January
2024(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

1,400,000
January
12, 2016

Averageinterest
rate(Note 1)1,400,000
1,400,000
700,000
700,000–

1,420,000––

1,420,000
720,000 0.34459% January 12,2024
720,000––
2,000,000

2,000,000
1,500,000

1,000,000

1,000,000

500,000
500,000

500,000
500,000(Note 4)(Note 3)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

1,200,000 0.85377%

June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024(Note 3)(Note 3)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

1,200,000 0.85377%
1,200,000 0.85377%

1,200,000

1,200,000 0.85377%

600,000

600,000 0.85377%
600,000 0.85377%

1,500,000

1,500,000

3,000,000
1,500,000

3,000,000
1,500,000(Note 3)(Note 3)(Note 3)(Note 3)0.33150%(Note 5)June 17,2024(Note 4)

Unsecured,
non-guaranteed

0.36900%(Note 5)

December
13,
2024(Note 4)

Unsecured,
non-guaranteed

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

1,500,000

1,500,000

3,000,000
1,500,000

3,000,000
1,500,000

1,200,000

1,200,000

2,400,000
1,200,000

2,400,000
1,200,000 0.54094%
600,000

600,000(Note 4)

March 29,2024

1,200,000

600,000(Note 4)0.41380%

1,200,000

600,000(Note 4)720,000

1,500,000

1,200,000(Note 4)600,000

24
42

43

Category
LenderSumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
Shinkin Central Bank
The Norinchukin Bank
THE NISHI-NIPPONCITY BANK, LTD.
The Bank of
Kyoto,Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Long- Development Bank ofterm Japan Inc.
loans Mizuho Trust &payable Banking Co.,LTD.
(Note 2)
Shinkin Central Bank
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
The 77 Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co.,LTD.
The Norinchukin Bank

Draw
down
date

March 16,2017

Beginningbalance

March 30,
2018

August29, 2019

September
21, 2016

December13, 2016
March 7,2019

June 13,2017
June 28,
2019

Averageinterest rate
(Note 1)1,800,000

1,800,000

3,600,000
1,800,000

3,600,000
1,800,000 0.70169%
900,000

900,000
900,000

March 16,2018

Endingbalance(Unit: Thousands of yen)
Maturity
date

September
16,
2025

Use offunds(Note 3)

Remarks

Unsecured,
non-guaranteed

900,000

440,000

440,000

440,000

440,000

440,000

440,000

440,000
440,000

440,000 0.46453%
440,000

500,000

500,000

300,000

300,000

500,000

500,000

500,000
500,000

500,000
500,000

250,000

250,000

250,000

250,000

1,500,000

1,500,000

1,500,000

1,500,000

2,100,000

2,100,000

4,200,000
2,100,000

4,200,000
2,100,000

1,050,000

1,050,000

0.58630%

0.09313%

September
16,
2025

September
16,
2025
February27,
2026(Note 4)(Note 4)(Note 4)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

0.61942%

March 19,2026

(Note 3)

Unsecured,
non-guaranteed

1,050,000

1,050,000

6,000,000

6,000,000 0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

1,100,000

1,100,000

1,100,000

1,100,000

September
7,2026(Note 4)0.71015%

December
14, 2026(Note 4)

Unsecured,
non-guaranteed

0.23004%

December28, 2026(Note 4)

Unsecured,
non-guaranteed

1,100,000

1,100,000 0.35765%

1,100,000
600,000

1,100,000
600,000

1,750,000

1,750,000

3,500,000
1,750,000

3,500,000
1,750,000

1,200,000

1,200,000

1,200,000

1,200,000

Unsecured,
non-guaranteed

Category
Lender

Draw
down
date

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
January 9,
2018
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
January
10, 2020
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
June 13,2018
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
January 5,
Long- Mizuho Bank, Ltd.
2018
term Sumitomo Mitsuiloans Banking Corporation
payable Development Bank of(Note 2) Japan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
April 19,
2019
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofApril 19,
Japan Inc.
2019
The Bank of Fukuoka,
March 31,Ltd.
2020
The Norinchukin Bank
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
January
10, 2019
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJanuaryJapan Inc.
10, 2019
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
May 31,
2019
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

1,560,000
780,000 0.70698%
390,000

January 9,2027(Note 4)

Unsecured,
non-guaranteed

January 12,(Note 4)2027

Unsecured,
non-guaranteed

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

1,000,000

1,000,000

1,000,000
1,000,000

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

July 5,2027(Note 4)

Unsecured,
non-guaranteedJuly5,2027(Note 4)

Unsecured,
non-guaranteed

September
30,2027(Note 4)

Unsecured,
non-guaranteed

3,210,000

3,210,000

3,210,000
1,610,000

3,210,000 0.55800% January 11,(Note 3)2028
1,610,000 (Note 5)

Unsecured,
non-guaranteed

1,610,000

1,610,000

1,610,000

11, (Note 3)
1,610,000 0.65264% January
2028

Beginningbalance
780,000
1,560,000
780,000
390,000
390,000

Endingbalance
780,000

390,000–

950,000––

950,000
950,000–

475,000

0.43349%–

475,000

2,200,000

2,200,000

2,200,000
2,200,000

2,200,000
2,200,000 0.73360%
200,000

200,000
200,000

200,000

320,000

320,000

640,000
320,000

640,000
320,000

160,000

160,000

160,000

160,000

500,000

500,000

500,000

500,000 0.58821%–

1,000,000–

500,000

0.28500%

1,165,000

1,165,000

1,165,000
590,000

1,165,000
590,000 0.56127%
590,000

590,000
590,000

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

590,000

26
44

45

Category
Lender

Draw
down
date

BeginningbalanceEndingbalance

Averageinterest
rate(Note 1)

(Unit: Thousands of yen)
Maturitydate

Use offunds

Remarks

Sumitomo Mitsui Trust
420,000
420,000
Bank, Limited
Mizuho Bank, Ltd.
420,000
420,000
Long- MUFG Bank, Ltd.
July 9,420,000
420,000 0.49281
July 10,
Unsecured,(Note 4) non-guaranteed
term
2019
%
2028
Sumitomo
Mitsuiloans
220,000
220,000
Banking
Corporation
payable(Note 2) Development Bank of
220,000
220,000
Japan Inc.
Development Bank ofJune 13,0.56511 December
Unsecured,
6,000,000
6,000,000(Note 4) non-guaranteed
Japan Inc.
2019%
13,2028
Total
206,350,000 216,350,000(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of this hedging
instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.
(Note 7) Use of the borrowings is appropriated to repayment of investment corporation bonds.

(3) Investment Corporation Bonds
Name of bonds

Issuance date

Balance as ofNovember30, 2019(millions ofyen)

Balance as ofMay
31, 2020(millions ofyen)Interest
rate(%)

The 2nd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

－

The 3rd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

The 4th Unsecured Investment
Corporation Bond

February 3, 2016

The 5th Unsecured Investment
Corporation Bond

Maturity date

Repayment
method0.297

April 21,2020

Lump sum(Note)

2,000

0.726

April 21,2025

Lump sum(Note)

2,000

2,000

0.770

February 3,
2026

Lump sum(Note)

February 2, 2017

4,000

－

0.001

January 31,
2020

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

February 2, 2017

1,000

1,000

0.480

February 2,
2027

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

February 2, 2017

1,000

1,000

0.810

February 2,
2032

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

February 13,
2018

1,000

1,000

0.160

August 12,
2022

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

February 13,
2018

1,000

1,000

1.050

February 12,
2038

Lump sum(Note)

The 10th Unsecured Investment
Corporation Bond (Green Bond)

July 9, 2019

5,000

5,000

0.220 July 9, 2024

Lump sum(Note)

The 11th Unsecured Investment
Corporation Bond (Green Bond)

November 18,
2019

4,000

4,000

0.530

November16, 2029

Lump sum(Note)

23,00017,000Total

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

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

(4) Short-Term Investment Corporation Bonds
Not applicable(5) Subscription Rights for New Investment Units
Not applicable

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

Asset type

Tokyo Office
Properties

Trust
beneficiaryinterests

Tokyo Office
Properties

Trust
beneficiaryinterests

Total

Property name

Ebisu Prime Square(Note 2)

A-PLACE
Shinbashi Ekimae

DisposalAcquisitiondate

Acquisition price(millions of yen)

January 10,
2020

30,700－－－30,700(Note 3)

Disposalamount(millions ofyen)Book value(millions ofyen)

Gain (loss) on
disposal(millions of
yen)

－

－

－

March 19,2020

21,00020,787143－

21,00020,787143

Disposal
date(Note1)－(Note1) The acquisition and disposal amount represent the trading value of trust beneficiary rights stipulated in beneficiary right sale agreement for the asset(excluding consumption tax, local consumption tax, and expenses such as trading commissions).
(Note2) The acquisition amount of Ebisu Prime Square represents figure equivalent to the percentage of the Investment Corporation’s co-ownership interest(51%).
(Note3) Regarding the disposal of A-PLACE Shinbashi Ekimae, in addition to the above, there were “Other disposal expenses” of ¥68 million and the gain (loss)
on disposal reflects such expenses.

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

28
46

47

7. Accounting Status(3) Survey of Prices, etc. of Specified Assets
1) Real Estate
Acquisition /Disposal

Ebisu Prime Square

Acquisition
Disposal(Note 1)

Property nameDate ofacquisition /disposalAcquisition /Disposal amount(millions of yen)Appraisal value(millions of yen)

(Note 1)

(Note 2)January 10,
2020

30,700A-PLACE Shinbashi
EkimaeMarch 19,2020

21,000Date ofappraisal

Name of appraiser

31,000

JLL Morii Valuation &Advisory K.K.

October 1,
201920,200Japan Real Estate InstituteMay 31,
2019

The acquisition and disposal amount represent the trading value of trust beneficiary rights stipulated in beneficiary right sale agreement for the asset(excluding consumption tax, local consumption tax, and expenses such as trading commissions).
The acquisition amount of Ebisu Prime Square represents figure equivalent to the percentage of the Investment Corporation’s co-ownership interest (51%).
The appraisal of the above-mentioned real estate was conducted by applying “Real Estate Appraisal Standard Section 3: Appraisals Regarding Prices ofReal Estate for Securitization.”(Note 2)
(Note 3)2) Others(1) Assets, Liabilities, Principal, and Profit and Loss
Please refer to “II. Balance Sheets,” “III. Statements of Operations,” “IV. Statements of Changes in Unitholders’ Equity,” “V.
Statements of Cash Distributions” and “VII. Notes to Financial Statements.”(2) Changes in the Calculation Method of Depreciation Expenses
Not applicable(3) Changes in the Evaluation Method of Real Estate, etc. and Infrastructure Assets, etc.
Not applicableNot applicable

8. Other(4) Transactions between Interested Parties
Category
Total amount
Details of transactions between interested parties
Rouge LLC

Purchase and sale amounts
Purchase amounts
Sale amounts¥30,700 million¥21,000 million¥30,700 million (100.0%)

ASUNARO Limited Liability Company－ million (－%)

Total

¥30,700 million (100.0%)(1) Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company
Not applicable－ million (－%)
¥21,000 million (100.0%)¥21,000 million (100.0%)

Total amount (A)(thousands of yen)

Property management fee

451,204

Building management fee

753,291

Construction management fee

10,868Other management operation
expenses

Other lease business expenses

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

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

Amount (B)(thousands of yen)
225,775(B) / (A)(%)

May 26, 2020

50.0

124,03927.5

60,821
2,418
629,145
5,244

13.5
0.5
83.5
48.3

3,664

33.7

1,085

10.0

71,545

Tokyu Community Corp.

7,101

9.9

88,517

15.5

1,133

0.2

571,767

Tokyu Community Corp.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation
HANDS LAB INC.
Tokyu Housing Leace Corporation
Tokyu Re・design Corporation

882
727
672
671

0.2
0.1
0.1
0.1

Item

Summary

Comprehensive approval ofissuance of investment
corporation bonds andappointment ofadministrators

The Board of Directors of the Investment Corporation made a comprehensive resolution
regarding the issuance of investment corporation bonds (total amount: ¥50 billion or less;issuance period: June 1, 2020 to October 3, 2020); approved the appointment of candidate
companies for the entrustment of affairs and administrative works, such as issuing agent,financial agent, and paying agent regarding the placing of investment corporation bonds;
and entrusted the decision of other necessary matters to the Executive Director.

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

(Note 1) The term “Interested parties” refers to interested parties of Asset Management Companies as stipulated by Article 201, Paragraph 1 of theInvestment Trust Act, Article 123 of the Enforcement Ordinances of the Act on Investment Trust and Investment Corporation of Japanand Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment
Corporations, issued by The Investment Trusts Association, Japan.
(Note 2) Other than commission paid as referred to above, construction works ordered to interested parties are as follows:
Tokyu Community Corp.
¥84,114 thousand
Tokyu Re・design Corporation¥30,954 thousand
Tokyu Land SC Management Corporation¥9,246 thousand
Tokyu Land Corporation¥581 thousand(5) Transactions between the Asset Manager in Other Businesses of the Asset Manager
No relevant matter exists under this subject as the asset manager (TLC REIT Management Inc.) does not engage in any
other business such as the first- or second-type financial instruments businesses under the Financial Instruments andExchange Act (or the securities business under the former Securities and Exchange Act), the building lots and buildings
transaction business, or the real estate joint enterprise.

30

48

49

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

(Unit: Thousands of yen)
As of November 30, 2019

As of November 30, 2019

As of May 31, 2020

As of May 31, 2020

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits

12,670,027

13,486,961

Operating accounts payable

1,265,123

1,005,767

Cash and deposits in trust

3,515,426

3,269,588

Short-term loans payable

5,000,000

10,998,000

Operating accounts receivable

804,474

679,207

Current portion of investment corporation bonds

6,000,000－

Prepaid expenses

355,113571,533

Current portion of long-term loans payable

7,300,000

12,500,000

6,749

16,508

Accounts payable - other

198,011

149,224

17,351,791

18,023,799

Accrued expenses

963,509952,182

Other
Total current assets

Income taxes payableNon-current assets
Property, plant and equipment

605

817

Accrued consumption taxes

379,062

330,044849,827

84,986,537

84,702,637

Advances received

581,577

Accumulated depreciation(13,256,431)(13,975,701)

Deposits received

1,390

4,156

Buildings in trust, net

71,730,105

70,726,935

Other

－

32,904

703,696734,704

21,689,281

26,822,925

Buildings in trust

Structures in trust
Accumulated depreciation(201,554)(215,485)

Structures in trust, net

502,142519,218

Machinery and equipment in trust

1,434,131

1,367,743

Accumulated depreciation(388,834)(387,964)

Machinery and equipment in trust, net

1,045,296

979,779

Tools, furniture and fixtures in trust

247,197263,247

Accumulated depreciation(128,828)(143,002)

Tools, furniture and fixtures in trust, net

118,368

120,245

414,174,855

424,862,322

5,928

8,478

487,576,696

497,216,979

Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets

9,055,086

9,055,086

1,441

1,186

9,056,527

9,056,272

1,350,026

1,261,641

8,954

－

5

10

38,32238,322

1,397,309

1,299,975

498,030,533

507,573,227

Investments and other assets
Long-term prepaid expenses
Derivatives
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs

98,65289,447

Total deferred assets

98,65289,447515,480,977

525,686,474

Total assets

Total current liabilities
Non-current liabilities
Investment corporation bond

17,000,000

17,000,000

Long-term loans payable

199,050,000

203,850,000

Tenant leasehold and security deposits in trust

21,543,424

22,309,458

Derivatives Liabilities
Total non-current liabilities
Total liabilities

－

3,443

237,593,424

243,162,902

259,282,705

269,985,827

248,370,846

248,370,846

Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Allowance for temporary difference
adjustments*3

Total deduction from unitholders' capital
Unitholders' capital, net(10,797)*3－(10,797)－248,360,049

248,370,846

7,829,267

7,333,243

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus

7,829,267

7,333,243

256,189,316

255,704,090

Deferred gains or losses on hedges

8,954(3,443)

Total valuation and translation adjustments

8,954

Total unitholders’ equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets*2

256,198,271
515,480,977(3,443)*2

255,700,646
525,686,474

1
50

2

51

III. Statements of Operations(Unit: Thousands of yen)Ⅳ. Statements of Changes in Unitholders’ Equity
Previous fiscal period (From June 1, 2019 to November 30, 2019)

Previous fiscal period

Current fiscal period(From June 1, 2019

(From December 1, 2019

to November 30, 2019)

to May 31, 2020)(Unit: Thousands of yen)

Operating revenue

Unitholders’ capital

Lease business revenue*1

14,063,573*1

13,903,877

Other lease business revenue*1

1,136,219*1

936,713Gain on sales of real estate properties*2

343,063*2

143,798

Total operating revenue

15,542,856

14,984,389

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

5,464,545*1

5,470,679

1,249,529

1,104,664

Asset custody fee

14,641

15,029Administrative service fees

37,87436,852

Directors’ compensations

3,300

3,300

Other operating expenses

92,843

147,558

Total operating expenses

6,862,734

6,778,084

8,680,122

8,206,304

Operating profit
Non-operating income
Interest income

59

72

Reversal of distribution payable

967

698

Insurance claim income

663

9,535

Other

－

381

1,690

10,687

Total non-operating income

Balance at beginning ofcurrent period
Changes of items during
periodTotal
surplus248,370,846－－

Interest expenses

636,203642,50735,54345,976

Amortization of investment corporation bond issuance costs

9,905

9,205

181,347

185,307500

500

863,501

883,497

Ordinary Profit

7,818,311

7,333,494

Profit before income taxes

Total non-operating expenses

7,818,311

7,333,494

Income taxes - current

614

828

Income taxes - deferred

19

(5)

Total income taxes

634

823

7,817,677

7,332,671

11,589572

7,829,267

7,333,243

ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

352

248,370,846

Dividends of surplus
Distribution in excess of
net earnings fromallowance for temporary
difference adjustments(10,797)(10,797)

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

7,726,143

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

7,817,677

7,817,677

7,726,143(10,797)

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

Totalunitholders’equity7,817,677

7,817,677

Total net
assets256,085,515

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

103,123

103,123

92,326

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

7,829,267

7,829,267

256,189,316

8,954

8,954

256,198,271

Current fiscal period (From December 1, 2019 to May 31, 2020)(Unit: Thousands of yen)
Valuation andtranslation adjustments

Unitholders’ equity

Interest expenses on investment corporation bonds

Other

Surplus

Deduction from
Unappropriunitholders' capital
ated
Total
Unitholders’ Allowance forUnitholders’retaineddeduction
capitalcapital, net
earnings
temporaryfrom(undisposed
difference
unitholders'loss)adjustments
capitalNon-operating expenses

Borrowing related expenses

Valuation andtranslation adjustments

Unitholders’ equity

Unitholders’ capital

Balance at beginning ofcurrent period
Changes of items during
periodSurplus

Deduction from
Unappropriunitholders' capital
ated
Total
Unitholders’ Allowance forUnitholders’retaineddeduction
capitalcapital, net
earnings
temporaryfrom(undisposed
difference
unitholders'loss)adjustments
capitalTotal
surplus248,370,846(10,797)(10,797)248,360,049

Dividends of surplus
Reversal of allowancefor temporary difference
adjustments

10,797

10,797

10,797

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

Totalunitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

7,829,267

256,189,316

8,954

8,954

(7,817,897) (7,817,897)(7,817,897)(7,817,897)

7,829,267

Total net
assets256,198,271(10,797)(10,797)－－

7,332,671

7,332,671

7,332,671

7,332,671(12,398)(12,398)(12,398)－

10,797

10,797

10,797(496,023)(496,023)(485,226)(12,398)(12,398)(497,625)*1
248,370,846－－

248,370,846

7,333,243

7,333,243

255,704,090(3,443)(3,443)

255,700,646

453

V. Statements of Cash Distributions

Calculation method for distributions

Fiscal periods
Previous fiscal period(From June 1, 2019
to November 30, 2019)
AmountAmount¥7,829,267,374¥7,333,243,684

Additional amount of cash distributions in excessof earnings－¥3,084,896

Of which, allowance for temporary difference
adjustments－¥3,084,896

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

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

Unappropriated retained earnings

Ⅱ

Ⅲ

Ⅳ

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

Ⅴ

Current fiscal period(From December 1, 2019
to May 31, 2020)¥7,817,897,688¥7,329,712,896[Of which, distributions of earnings per unit]¥[10,137]¥[9,504]

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

¥[－]

¥[4]

¥572,550¥3,530,788

Earnings carried forward

5
54

Based on the distribution policy set
Based on the distribution policy set
forth in Article 35, Paragraph 1 of the forth in Article 35, Paragraph 1 of the
Articles of Incorporation of the
Articles of Incorporation of theInvestment Corporation, distributions Investment Corporation, distributions
shall be limited to the amount of net shall be limited to the amount of net
profit in excess of an amountprofit in excess of an amountequivalent to ninety hundredths
equivalent to ninety hundredths(90/100) of distributable profits, as(90/100) of distributable profits, as
stipulated in Article 67-15, Paragraph stipulated in Article 67-15, Paragraph
1 of the Act on Special Measures
1 of the Act on Special Measures
Concerning Taxation. In
Concerning Taxation. In
consideration of this policy, we will consideration of this policy, we will
pay distributions of profits ofpay distributions of profits of¥7,817,897,688, which is the amount ¥7,329,712,896, which is the amountof the net profit defined in Articleof the unappropriated retained
136, Paragraph 1 of the Act onearnings less the reversal of
Investment Trusts and Investment
allowance for temporary difference
adjustments (refers to stipulations of Corporations, except for fractional
Article 2, Paragraph 2, Item 30 of the distribution per unit less than ¥1.
Regulations on Accountings ofBased on the policy on distribution of
Investment Corporations), except acash exceeding net profit set forth infraction of less than ¥1 of
Article 35, Paragraph 2 of the
distributions per investment unit.
Articles of Incorporation of theInvestment Corporation, distributions
in excess of earnings shall be madein an amount decided by theInvestment Corporation andequivalent to a deduction in net
assets (refers to stipulations ofArticle 2, Paragraph 2, Item 30 (b) of
the Regulations on Accountings ofInvestment Corporations), taking into
account effects of the deduction in
net assets on distribution amounts.
During the fiscal period underreview, the Investment Corporation
has accordingly decided to distribute¥3,084,896 as distributions related toallowance for temporary difference
adjustments (refers to stipulations ofArticle 2, Paragraph 2, Item 30 of theRegulations on Accountings ofInvestment Corporations), calculated
to exclude a fraction of less than ¥1of distributions in excess of earnings
per investment unit, with the amountequivalent to deferred losses onhedges of ¥3,443,618. As a result,distributions are to amount to¥7,332,797,792 for the fiscal period
under review.

655

VII. Notes to Financial Statements

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

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

Profit before income taxes

7,818,311

7,333,494

Depreciation

1,299,058

1,334,606

9,905

9,205

Cash flows from operating activities

Amortization of investment corporation bond issuance costs
Interest income and interest on securities

(59)

(72)

Interest expenses

671,747

688,484

Borrowing related expenses

181,347

185,307

Decrease (increase) in operating accounts receivable

61,777125,267

Increase (decrease) in accrued consumption taxes

213,632(49,018)

Decrease (increase) in prepaid expenses

165,699(209,406)

1,493,070

20,787,757

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

Increase (decrease) in operating accounts payable

303,762(156,233)

Increase (decrease) in accrued expenses

19,133(11,313)

7,278

268,249(83,861)

8,590

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

Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net(10,040)

25,212

Subtotal

12,188,268

30,340,130

Interest income received

59

72(653,684)(691,442)(1,108)(616)

11,533,534

29,648,143

Purchase of property, plant and equipment in trust(472,822)(31,917,697)

Repayments of tenant leasehold and security deposits in trust(345,198)(1,012,287)

Proceeds from tenant leasehold and security deposits in trust

648,645

1,778,321

Net cash provided by (used in) investing activities(169,375)(31,151,663)

Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

Notes on Assumption of Going Concern
Not applicable

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

(1)
(2)

Property-related taxes
For property tax, city planning tax, depreciable asset tax for real properties held, the amount of tax
levied corresponding to the calculation period is recorded as expenses related to rent business.
The settlement money for property tax that is paid to the transferor for acquisition of real
properties (so-called “amount equivalent to property tax”) is not recorded as expenses related torent business but included in the acquisition costs for the related properties. The amountequivalent to property tax included in acquisition cost for properties for the current fiscal period is¥135,713 thousand.

4. Method of hedge
accounting

(1)
(2)
(3)

(4)

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

4,997,750

31,992,459(14,000,000)(26,000,000)

Proceeds from long-term loans payable

12,925,779

17,219,286

Repayments of long-term loans payable(13,100,000)(7,300,000)

Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Dividends paid
Other, net
Net cash provided by (used in) financing activities

8,953,594－－(6,000,000)(7,723,513)(7,813,803)(32,598)(23,326)(7,978,987)

2,074,615

Net increase (decrease) in cash and cash equivalents

3,385,171

571,095

Cash and cash equivalents at beginning of period

12,800,282

16,185,454

Cash and cash equivalents at end of period*116,185,454*1

16,756,549

756

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

3. Accounting for income
and expenses

Cash flows from investing activities

Decrease in short-term loans payable

Property, plant and equipment (including trust assets)
The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 70 years
Structures
2 to 66 years
Machinery and equipment
2 to 33 years
Tools, furniture and fixtures
2 to 15 years
Intangible assets
Internal use software is amortized by the straight-line method over the expected useful life
(5 years).
Long-term prepaid expenses
The straight-line method is used.

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

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

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

6. Other important mattersrelated to the preparationof financial statements

(1)

(2)

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

857Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From June 1, 2019 to November 30, 2019)
1. Reason for Reversal, Related Assets, etc. and Amount of Reversal
Related assets, etc.
Deferred gains or losses on hedges(Unit: Thousands of yen)
Allowance for temporary difference
adjustments

Reason for reversal
Elimination of loss on valuation ofinterest rate swaps(10,797)

2. Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging instruments.
Current fiscal period (From December 1, 2019 to May 31, 2020)
1. Reason for Provision, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

Current fiscal period (From December 1, 2019 to May 31, 2020)
1. Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
InitialRelated assets, etc. Reason for provision
beginning of provision for reversal forend ofamountperiodperiodperiodperiodDeferred gains or losses
on hedges－－

10,797－

10,797－

Reason forreversal
Change in fairvalue ofderivativetransactions

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

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

Reason for provision
Recognition of loss on valuation ofinterest rate swaps

3,084

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

Notes to Balance Sheets
1.

Commitment Line Contracts
The Investment Corporation has the commitment line contracts with three of the banks with which it does business.
As of May 31, 2020

As of November 30, 2019
Total amount specified in thecommitment line contracts¥21,000,000 thousand¥21,000,000 thousand

Loan balance–¥1,998,000 thousand

Net balance¥21,000,000 thousand¥19,002,000 thousand*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
As of November 30, 2019

As of May 31, 2020

¥50,000 thousand¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From June 1, 2019 to November 30, 2019)
1. Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
InitialRelated assets, etc. Reason for provision
beginning of provision for reversal forend ofamountperiodperiodperiodperiodRecognition of loss
Deferred gains or losses
on valuation of
10,797–
10,797–
10,797on hedges
interest rate swaps

Reason forreversal–

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

9
58

10
59

Notes to Statements of Operations

Notes to Statements of Changes in Unitholders’ Equity*1. Breakdown of Income from Real Estate Leasing Business*1. Total number of authorized investment units and total number of investment units issued are as follows:(Unit: Thousands of yen)A.

Previous fiscal period

Current fiscal period(From June 1, 2019

(From December 1, 2019

to November 30, 2019)

to May 31, 2020)

Total number of authorized investment units

Real estate leasing business revenues

Total number of investment units issued

Lease business revenue
Rent

12,896,071

12,772,803

Common service fees

754,640

739,471

Parking lot fees

295,863

290,588

Other rent revenue

116,997

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

14,063,573

101,013

15,199,792

14,840,590

Real estate leasing business expenses
Expenses related to rent business
1,286,910

Utilities expenses

1,011,981

841,809

Tax and public dues

1,087,694

1,110,349

Insurance

11,227

12,914

Repair and maintenance expenses

436,542

312,576

1,298,804

1,334,352

Depreciation
Other expenses related to rent businessC.

365,5425,464,545

571,767(From December 1, 2019

to November 30, 2019)

to May 31, 2020)

4,000,000 units

4,000,000 units

771,224 units

771,224 units*1. Reconciliation between Cash and Cash Equivalents at End of Period and the Amount on the Balance Sheets
13,903,877
936,713

1,252,752

Current fiscal period(From June 1, 2019

Notes to Statements of Cash Flows

1,136,219

Management operation expenses

Previous fiscal period

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

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

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

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

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

Notes to Lease Rental Revenues
The Investment Corporation leases properties on which rental revenues are earned. As of November 30, 2019 and May 31, 2020,
future lease revenues under non-cancelable operating leases are summarized as follows:
5,470,679

Total real estate leasing business expenses

5,464,545

5,470,679

Income from real estate leasing business (A – B)

9,735,247

9,369,910*2. Breakdown of Gain on sales of real estate properties

As of November 30, 2019

As of May 31, 2020

Due within one year

¥16,137,216 thousand¥16,962,650 thousand

Due after one year

¥121,523,586 thousand¥117,205,771 thousand

Total¥137,660,803 thousand¥134,168,421 thousand

Previous fiscal period (From June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
A-FLAG AKASAKA (50% co-ownership interest)
Income from sales of real estate properties
Costs of sales of real estate properties
Other costs of sales
Gain on sales of real estate properties

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

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

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

11
60

12
61

Notes on Financial Instruments
1. Matters Regarding Financial Instruments

Carrying amounts, fair values, and the differences between the two values as of May 31, 2020, are as shown below.
Financial instruments whose fair value is considered to be extremely difficult to determine are not included in thistable (please refer to (Note 2)).

(1) Policy for Financial Instruments(Unit: Thousands of yen)

The Investment Corporation raises funds by borrowing, issuing investment corporation bonds, or issuinginvestment units for the purpose of acquiring real estate-related assets and repaying interest-bearing debt.

Carrying amount

When raising funds, the Investment Corporation aims to sustain stable financing capability for a long time at low
cost by enhancing its capital adequacy and maintaining conservative interest-bearing debt, looking for attributes
such as extended borrowing periods for interest-bearing debt, fixed interest rates, and diversified due dates toensure financial stability and avoid the risk of interest-rate hikes.

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

3,269,588

3,269,588－

Total assets

16,756,549

16,756,549－

The Investment Corporation also invests temporary excess funds in deposits in general, taking safety andliquidity, etc. into account and considering the interest-rate environment and its cash management.

(1) Short-term loans payable

10,998,000

10,998,000－

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

(2) Current portion of long-term loans payable

12,500,000

12,600,325

100,325(3) Investment corporation bonds

17,000,000

17,278,254

278,254(4) Long-term loans payable

203,850,000

206,045,048

2,195,048

244,348,000

246,921,627

2,573,627(3,443)(3,443)－As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit risks suchas the insolvency of the financial institutions in which the excess funds are deposited. However, the Investment
Corporation deposits excess funds carefully by limiting the period of deposits to the short term, taking safety andliquidity, etc. into account and considering the financial environment and its cash management.
Borrowings and investment corporation bond are received mainly for the purpose of acquiring real estate andrefinancing of existing borrowings. Tenant leasehold and security deposits are deposits provided by tenants.
Borrowings, investment corporation bond, tenant leasehold and security deposits are exposed to liquidity risks at
the time of repayments. However, these risks are managed through management of liquidity in hand by preparing
a monthly funding plan, efforts to reduce liquidity risk on loans payable and investment corporation bond by
diversifying repayment periods, etc., and other means.
Floating-rate loans payable are also exposed to the risk of fluctuations in interest-rates. However, these risks aremanaged through derivative transactions (interest rate swaps) as hedging instruments in certain floating-rateloans payable.
(3) Supplemental Remarks on the Fair Value of Financial Instruments
The fair value of financial instruments is based on market prices or reasonably calculated value if it has nomarket price. As certain assumptions are made in calculating these values, if different assumptions, etc. are used,
these values could vary.
Matters Regarding Fair Values of Financial Instruments
Carrying amounts, fair values, and the differences between the two values as of November 30, 2019, are as shown
below. Financial instruments whose fair value is considered to be extremely difficult to determine are not includedin this table (please refer to (Note 2)).
(Unit: Thousands of yen)
Carrying amount

Fair value

Difference

12,670,027

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

3,515,426

3,515,426－

Total assets

16,185,454

16,185,454－(1) Short-term loans payable

5,000,000

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

6,000,000

6,004,836

4,836(3) Current portion of long-term loans payable

7,300,000

7,320,691

20,691(4) Investment corporation bonds

17,000,000

17,504,805

504,805(5) Long-term loans payable

199,050,000

201,308,615

2,258,615

234,350,000

237,138,949

2,788,949

8,954

8,954

－

Total liabilities

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

Derivative transactions

13
62

Difference

13,486,961(2) Content and Risks of Financial Instruments and Risk Management System

2.

Fair value(1) Cash and deposits(Note 2) Carrying Amounts of Financial Instruments Where Fair Value Is Considered to Be Extremely Difficult to Determine(Unit: Thousands of yen)
Category
Tenant leasehold and security deposits in trust *1

As of November 30, 2019
21,543,424

As of May 31, 2020
22,309,458*1 As there are no market prices for tenant leasehold and security deposits in trust from tenants for leasehold properties andthe actual period of deposit from move-in of the tenant to move-out is difficult to determine, it is extremely difficult toreasonably estimate the cash flow. Therefore, the fair value for tenant leasehold and security deposits in trust is not
subject to the disclosure of fair value.

1463

Notes on Derivative Transactions(Note 3) Expected Amounts of Repayment of Monetary Claims after the Account Closing Date (November 30, 2019)(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Deposits

12,670,027

－

－

－

－

－

Deposits in trust

3,515,426

－

－

－

－

－

Total

16,185,454

－

－

－

－

－

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Deposits

13,486,961

－

－

－

－

－

Deposits in trust

3,269,588

－

－

－

－

－

16,756,549

－

－

－

－

－

(Note 4) Expected Amounts of Repayment of Loans Payable and Investment Corporation Bonds after the Account Closing Date
(November 30, 2019)(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Short-term loans payable

5,000,000

－

－

－

－

－

Investment corporation bonds

6,000,000－

1,000,000－

5,000,000

11,000,000

Long-term loans payable

7,300,000

26,250,000

21,100,000

27,750,000

24,500,000

99,450,000

18,300,000

26,250,000

22,100,000

27,750,000

29,500,000

110,450,000

Total

Expected Amounts of Repayment of Loans Payable and Investment Corporation Bonds after the Account Closing Date
(May 31, 2020)(Unit: Thousands of yen)
Within 1 year
Short-term loans payable
Investment corporation bonds
Long-term loans payable
Total

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

10,998,000

－

－

－

－

－

－

－

1,000,000－

7,000,000

9,000,000

12,500,000

27,850,000

26,500,000

32,750,000

24,000,000

92,750,000

23,498,000

27,850,000

27,500,000

32,750,000

31,000,000

101,750,000

1564(As of November 30, 2019)
Not applicableNot applicable2.

(Unit: Thousands of yen)

Total

Derivative transaction to which hedge accounting is not applied(As of May 31, 2020)

Expected Amounts of Repayment of Monetary Claims after the Account Closing Date (May 31, 2020)
Within 1 year

1.

Derivative transaction to which hedge accounting is applied(As of November 30, 2019)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the accountclosing date by method of hedge accounting.
(Unit: Thousands of yen)
Hedge accounting

Type of derivativetransactions

Major hedged
items

Amount of contract
Portion due after
one year

Fair value

Calculation method
for fair value

Based on prices, etc.
Interest rate swaps
Long-term
12,000,000
12,000,000
8,954
indicated by partner
Receive floatingloans payable
Pay fixed
financial institutions
Special treatment
Interest rate swaps
Long-term
for interest rate
Receive floating
18,140,000
18,140,000*–
loans payableswaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termloans payable, a hedged item. Thus, their fair values are included in the fair value of long-term loans payable. (Pleaserefer to “(Note 1) Liabilities (5), 2. Matters Regarding Fair Values of Financial Instruments, Notes on Financial
Instruments.”)
Deferred hedge
accounting(As of May 31, 2020)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the accountclosing date by method of hedge accounting.
(Unit: Thousands of yen)
Hedge accounting

Type of derivativetransactions

Major hedged
items

Amount of contract
Portion due after
one year

Fair value

Calculation method
for fair value

Based on prices, etc.
Interest rate swaps
Long-term
12,000,000
12,000,000(3,443)indicated by partner
Receive floatingloans payable
Pay fixed
financial institutions
Special treatment
Interest rate swaps
Long-term
for interest rate
Receive floating
18,140,000
18,140,000*–
loans payableswaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termloans payable, a hedged item. Thus, their fair values are included in the fair value of long-term loans payable. (Pleaserefer to “(Note 1) Liabilities (4), 2. Matters Regarding Fair Values of Financial Instruments, Notes on Financial
Instruments.”)
Deferred hedge
accounting

16
65Notes on Investment and Rental Properties

Notes on Deferred Tax Accounting
1.

Components of Deferred Tax Assets and Deferred Tax Liabilities
As of November 30, 2019

The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions for rental revenue.
The carrying amounts on the balance sheet, changes during the fiscal period, and fair values of investment and rental properties are
as follows.

As of May 31, 2020

Deferred tax assets(Unit: Thousands of yen)Non-deductible amount for tax purposes ofenterprise tax payable¥5 thousand¥10 thousand

Total deferred tax assets¥5 thousand¥10 thousand¥5 thousand¥10 thousand

Net deferred tax assets
2.

Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax Rate afterApplication of Deferred Tax Accounting
As of November 30, 2019
Effective statutory tax rate

Use

31.51%

31.46%(31.51)%(31.46)%

0.01%

0.01%

0.01%

0.01%

(Adjustments)
Distributions paid included in deductibles
Other
Effective income tax rate after application of tax
effect accounting

Activia
Account
Properties

Affiliates, etc.
Previous fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable

Total

Sister companies, etc.
Previous fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable

198,881,821

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

Balance at end of period

198,881,821

198,791,882

Fair value at end of period

241,282,000

239,866,000

195,556,130

195,101,532

Changes during period(454,598)

9,815,079

Balance at end of period

195,101,532

204,916,612

Fair value at end of period

232,420,000

244,140,000

102,739,890

102,648,428

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

Balance at end of period

102,648,428

102,563,571

Fair value at end of period

120,550,000

121,620,000

Balance at beginning of period

498,820,598

496,631,782

Changes during period(2,188,816)

9,640,283

Balance at end of period

496,631,782

506,272,066

Fair value at end of period

594,252,000

605,626,000

Balance at beginning of period(Note 1) The carrying amount on the balance sheets is the acquisition cost less accumulated depreciation.
(Note 2) The main reason for the increase in the current fiscal period is the acquisition of Ebisu Prime Square worth ¥31,057,540
thousand. The decrease is mainly due to the transfer of A-PLACE Shinbashi Ekimae worth ¥20,787,757 thousand andthe provision of depreciation worth ¥1,334,352 thousand.
(Note 3) The fair value at end of period is the appraisal value provided by an outside real estate appraiser.

Directors and major individual unitholders
Previous fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable
Current fiscal period (From December 1, 2019 to May 31, 2020)
Not applicable

The profit/loss concerning investment and rental properties for the current fiscal period is indicated under “Notes to Statements ofOperations.”

1766

200,524,577

Carrying amount on the balance sheets

Current fiscal period (From December 1, 2019 to May 31, 2020)
Not applicable4.

to May 31, 2020)

Balance at beginning of period

Balance at beginning of periodTokyo Office
Properties

Current fiscal period (From December 1, 2019 to May 31, 2020)
Not applicable3.

(From December 1, 2019

Carrying amount on the balance sheets

Parent Company and Major Corporate Unitholders
Previous fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable
Current fiscal period (From December 1, 2019 to May 31, 2020)
Not applicable2.

(From June 1, 2019
to November 30, 2019)

Carrying amount on the balance sheets

Notes on Transactions with Related Parties
1.

Current fiscal period

Carrying amount on the balance sheets

Urban Retail
Properties

As of May 31, 2020

Previous fiscal period

1867Segment Information

Per Unit Information

Segment Information for the fiscal periods ended November 30, 2019 and May 31, 2020 is as follows:
1. Operating Segment Information
Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in the property rental
business.
2.

3.

Enterprise-wide Disclosures(1) Information about Products and Services
Disclosure is not required as revenues from external customers for the single segment is in excess of 90% of total revenues.
(2) Information about Geographic Areas
Revenues from Overseas Customers:
Disclosure is not required as revenues from external customers attributed to Japan are in excess of 90% of total revenues.
Property, plant and equipment:
Disclosure is not required as Property, plant and equipment located in Japan are in excess of 90% of total Property, plant andequipment.
Information about Major Customers
Previous fiscal period (From June 1, 2019 to November 30, 2019)
Name of Customer

Revenues(Unit: Thousands of yen)
Related Segment

5,658,717

Property rental businessTokyu Land SC Management Corporation

4,512,597

Property rental businessTokyu Land Corporation

2,202,906

Property rental business

Name of Customer

Revenues¥332,196¥331,551

Basic earnings per unit

¥10,136¥9,507(Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (previous fiscal period 771,224 units; current fiscal period 771,224 units). Diluted earnings per unit is not stated,as there is no potential investment unit.
(Note 2) The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From June 1, 2019
to November 30, 2019)
Profit (Thousands of yen)

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

7,817,677

7,332,671－－

Profit attributable to common investment
units (Thousands of yen)

7,817,677

7,332,671

Average number of investment units forthe period (Units)771,224

771,224

Significant Subsequent Events
Not applicable.

Omission of Disclosure

As the need for disclosing notes on securities, retirement benefits, equity in earnings of affiliates, and asset retirement obligationsin this financial report is not material or applicable, the disclosure of these items is omitted.

(Unit: Thousands of yen)
Related Segment

Tokyu Community Corp.

6,061,386

Property rental businessTokyu Land SC Management Corporation

4,102,214

Property rental businessTokyu Land Corporation

1,769,752

Property rental business

19
68

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

Net assets per unit

Amount not attributable to common
unitholders (Thousands of yen)

Tokyu Community Corp.

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

Previous fiscal period(From June 1, 2019 to November 30, 2019)20
69

Other Specified Assets

VIII. Schedule of Financial Statements

Not applicable

Securities
1.

SharesNot applicable

Investment Corporation Bonds(Unit: Thousands of yen)

2.

Securities Other Than Shares
Not applicable

Derivative Transactions(Unit: Thousands of yen)Amount of contract (Note 1)

Fair value(Note 2) (Note 3)Classification

Type of derivative transactions

Over-the-counter

Interest rate swaps
Receive floating Pay fixed

30,140,000

30,140,000△3,443

Total

30,140,000

30,140,000△3,443

Portion due
after one year

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

Property and Equipment
The following tables show the summary of movement in property and equipment.
(Unit: Thousands of yen)Tangible
Assets

Accumulated
depreciation

Depreciation
for the period

Net property,
plant andequipment

3,487,763

84,702,637

13,975,701

1,267,489

70,726,935

51,13820,130734,704

215,485

17,898519,218

1,434,131

50,788117,176

1,367,743

387,964

30,337

979,779

247,197

25,627

9,578

263,247

143,002

18,625120,245

Increase

Buildings in trust

84,986,537

3,203,863

Structures in trust

703,696

Machinery andequipment in
trust
Tools, furnitureand fixtures intrust
Land in trust

Decrease

414,174,855

28,428,423

17,740,956

424,862,322－－

424,862,322

5,928

2,550

－

8,478

－

－

8,478

Subtotal

501,552,345

31,762,392

21,375,604

511,939,133

14,722,153

1,334,352

497,216,979

Leasehold rights
in trust

9,055,086－－

9,055,086－－

9,055,086

7,153

－

－

7,153

5,966

254

1,186

9,062,239－－

9,062,239

5,966

254

9,056,272

510,614,585

31,762,392

21,375,604

521,001,373

14,728,120

1,334,606

506,273,252(Note1)

Construction inprogress in trust

Intangible
AssetsEndingBalance

Beginningbalance

Other (Note2)
Subtotal
Total(Note1) The main reason for the increase is mainly due to the acquisition of Ebisu Prime Square (51% co-ownership interest).
The main reason for the decrease is mainly due to the transfer of A-PLACE Shinbashi Ekimae.
(Note2) “Other” is software (non-real estate asset).

21
70

Issue

Issue Date

Beginningbalance

2nd unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

April 21,2015

2,000,000

2,000,000－

0.297%

April 21,
2020

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

3rd unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

April 21,2015

2,000,000－

2,000,000

0.726%

April 21,2025

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

4th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 3,
2016

2,000,000－

2,000,000

0.770%

February 3,
2026

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

5th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 2,
2017

4,000,000

4,000,000－

0.001%

January 31,
2020

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

6th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 2,
2017

1,000,000－

1,000,000

0.480%

February 2,
2027

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

7th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 2,
2017

1,000,000－

1,000,000

0.810%

February 2,
2032

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

8th unsecured bonds(with pari passu conditions among February 13,
2018
specified investment corporation
bonds)

1,000,000－

1,000,000

0.160%

August 12,
2022

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

9th unsecured bonds(with pari passu conditions among February 13,
2018
specified investment corporation
bonds)

1,000,000－

1,000,000

1.050%

February 12,
2038

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

10th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)(Green Bonds)

5,000,000－

5,000,000

0.220%

July 9,2024

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

4,000,000－

4,000,000

0.530%

July 9,2019

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

23,000,000

Decrease

Endingbalance

Interest
Rate

RedemptionDate

6,000,000 17,000,000–

Use of funds

Remarks

November 16, Partial repayment of the
Unsecured,2029
long-term borrowings non-guaranteed–––

Annual redemptions of investment corporation bonds scheduled for next five years after each balance sheet date were as follows:(Unit: Thousands of yen)

Within 1 year
Unsecured bonds(with pari passu conditions among specified
investment corporation bonds)－

1–2 years

2–3 years－

1,000,000

3–4 years

4–5 years－

7,000,000

2271

Loans Payable(Unit: Thousands of yen)
Category

The following tables show the details of loans payable.

Lender(Unit: Thousands of yen)
Category
LenderSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

Drawdown
date

January 10,
2019

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

January 10,
2020

MUFG Bank, Ltd.
Shortterm
loans
payableSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

January 30,
2020

Increase

Averageinterest rate
(Note 1)Endingbalance

Decrease

2,000,000–

2,000,000–

2,000,000–

2,000,000–

1,000,000–

1,000,000––

8,400,000

8,400,000––

8,400,000

8,400,000––

4,200,000

4,200,000––

1,600,000–

1,600,000–

1,600,000–

1,600,000

MUFG Bank, Ltd.

–

800,000–

800,000

Sumitomo Mitsui Trust
Bank, Limited–

666,000–

666,000–

666,000–

666,000–

666,000–

666,000–

2,000,000–

2,000,000–

2,000,000–

2,000,000–

1,000,000–

1,000,000

Mizuho Bank, Ltd.

April 17,2020

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

January 10,
2020

MUFG Bank, Ltd.
Total

5,000,000

Sumitomo Mitsui Trust
Bank, Limited

160,000

31,998,000–

26,000,000
160,000

0.18548%

Maturity
date

January 10,
2020

Use offunds(Note 3)

Remarks

Unsecured,
non-guaranteed

0.20364%

March 19,2020

November 30,
2020(Note 3)(Note 7)

Unsecured,
non-guaranteed

0.19966%

November 30,
2020

January 12,2021(Note 7)(Note 3)

Unsecured,
non-guaranteed

10,998,000–

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

Remarks

1,060,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,060,000––

1,060,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

1,060,000––

1,060,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

1,060,000––

1,060,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

530,000––

530,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

530,000––

530,000

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

670,000––

670,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

670,000––

670,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

500,000––

500,000

0.25000%

March 31,2021

(Note 4)

Unsecured,
non-guaranteed

3,920,000––

3,920,000

3,920,000––

3,920,000

1,970,000––

1,970,000

0.21696%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

1,970,000––

1,970,000

1,970,000––

1,970,000

0.36607%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

320,000––

320,000

640,000––

640,000

320,000––

320,000

0.41931%

December 28,
2021(Note 3)

Unsecured,
non-guaranteed

160,000––

160,000

Nippon Life Insurance
Company

December19, 2013

January 10,
2014

March 31,2017

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

January 10,
2019

MUFG Bank, Ltd. (Note 6)

160,000–

160,000–

0.93846%

Mizuho Bank, Ltd.

160,000–

160,000–

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

160,000–

160,000–

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

80,000–80,000–0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

80,000–80,000–0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

160,000––

160,000

Sumitomo Mitsui Trust
Bank, Limited

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

420,000––

420,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

420,000––

420,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

January 10,
2014

Sumitomo Mitsui Trust
Bank, Limited

600,000–

600,000–

0.72546%

January 10,
2020

MUFG Bank, Ltd. (Note 6)

600,000–

600,000–

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

MUFG Bank, Ltd.
Mizuho Bank, Ltd.

600,000–

600,000–

0.72546%

MUFG Bank, Ltd.

600,000–

600,000–

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

Sumitomo Mitsui Banking
Corporation

300,000–

300,000–

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

Development Bank ofJapan Inc.

300,000–

300,000–

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

Resona Bank, Limited.

1,500,000–

1,500,000–

The Bank of Fukuoka, Ltd.

1,000,000–

1,000,000–

500,000–

500,000–

500,000–

500,000–

July 9, 2014

The Gunma Bank, Ltd.
The Norinchukin Bank

March 31,2015

0.52500%

March 31,2020

(Note 4)

Unsecured,
non-guaranteed

23

January 10,
2019

Sumitomo Mitsui Trust
Bank, Limited

January 10,2020

Mizuho Bank, Ltd.

72

Longtermloanspayable(Note 2)

Use offunds–

MUFG Bank, Ltd.

Unsecured,
non-guaranteed

Maturitydate–

Mizuho Bank, Ltd.
0.35059%

Decrease

Averageinterest rate
(Note 1)

1,060,000

Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

Increase

Endingbalance

Sumitomo Mitsui Trust
Bank, Limited

MUFG Bank, Ltd.

0.18867%

BeginningbalanceJanuary 10,
2020

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)Beginningbalance

Drawdown
date

January 5,
2018

January 9,
2015

24
73

(Unit: Thousands of yen)

(Unit: Thousands of yen)
Category
LenderDrawdown
date

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

January 10,
2020

Sumitomo Mitsui Banking
Corporation

Increase

Endingbalance

Decrease–

1,420,000–

1,420,000–

1,420,000–

1,420,000–

720,000–

720,000–

720,000–

720,000–

720,000–

720,000

2,000,000––

2,000,000

500,000––

500,000

400,000––

400,000

400,000––

400,000

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

MUFG Bank, Ltd. (Note 6)

1,500,000––

1,500,000

Development Bank ofJapan Inc.
Mizuho Trust & Banking
Co.,LTD.

January 10,
2020
March 31,2015

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

Mizuho Bank, Ltd.
Longtermloanspayable(Note 2)Beginningbalance

March 31,2017

June 15,2015

MUFG Bank, Ltd.

1,500,000

1,500,000

Sumitomo Mitsui Trust
Bank, Limited

200,000

MUFG Bank, Ltd. (Note 6)

200,000

–

–

–

–

–

–

–

–

1,500,000

1,500,000

200,000

200,000

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

Lender

0.20966%

January 11,2022(Note 4)0.31571%

January 11,2022

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

March 31,2022

(Note 4)

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

0.30630%

0.94688%

June 15,2022

0.94688%

June 15,2022

0.65691%

June 15,2022

0.65691%

June 15,2022(Note 4)(Note 4)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

200,000––

200,000

0.65691%

MUFG Bank, Ltd.

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

100,000––

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

320,000––

320,000

Development Bank ofJapan Inc.

320,000––

320,000

Sumitomo Mitsui Trust
Bank, Limited

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

750,000––

750,000

750,000––

750,000

750,000––

750,000

0.44804%

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

0.38472%

April 6,2023

(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

375,000––

375,000

375,000––

375,000

Sumitomo Mitsui Trust
Bank, Limited

800,000––

800,000

1,600,000––

1,600,000

800,000––

800,000

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

400,000––

400,000

400,000––

400,000

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

625,000––

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

625,000––

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

1,250,000––

1,250,000

2,500,000––

2,500,000

0.46400%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

1,250,000––

1,250,000

500,000––

500,000
0.35998%––

500,000

September 29,
2023(Note 4)500,000

Unsecured,
non-guaranteed

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

1,560,000

Sumitomo Mitsui Banking
Corporation

Mizuho Bank, Ltd.

1,560,000––

1,560,000

Development Bank ofJapan Inc.

1,560,000––

1,560,000

Development Bank ofJapan Inc.

160,000

160,000––

160,000

June 15,2015

MUFG Bank, Ltd.

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.

December16, 2015

June 13,2017

Mizuho Bank, Ltd.
Taiyo Life Insurance
Company
Mitsui Sumitomo Insurance
Company, Limited

25
74

October 6,
2016

Development Bank ofJapan Inc.

––

March 30,
2018

Development Bank ofJapan Inc.

––

September
30, 2015

Sumitomo Mitsui Trust
Bank, Limited

1,560,000

160,000

January 9,
2019

MUFG Bank, Ltd. (Note 6)

Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation

Unsecured,
non-guaranteed

620,000

100,000

Unsecured,
non-guaranteed(Note 4)620,000––(Note 4)January 10,
2023

–

–

–

June 15,2022

0.38236%–

100,000

0.44835%

Remarks

620,000

Development Bank ofJapan Inc.

June 13,2018

Use offunds

620,000

Mizuho Bank, Ltd.

Longtermloanspayable(Note 2)

Maturity
date

620,000

MUFG Bank, Ltd.
(Note 6)

Unsecured,
non-guaranteed

Endingbalance

Decrease–

MUFG Bank, Ltd.

Unsecured,
non-guaranteed

Increase–

Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

Beginningbalance

Averageinterest rate
(Note 1)620,000

Sumitomo Mitsui Banking
Corporation

December16, 2015

MUFG Bank, Ltd.

Drawdown
date

Sumitomo Mitsui Trust
Bank, Limited

June 15,2022

Mizuho Bank, Ltd.

Category

March 31,2017

Resona Bank, Limited.

March 31,2020–

1,500,000–

1,500,000

0.19436%

September 30,
2023(Note 4)

Unsecured,
non-guaranteed

The Gunma Bank, Ltd.

March 31,2020–

500,000–

500,000

0.23436%

September 30,
2023(Note 4)

Unsecured,
non-guaranteed26
75

(Unit: Thousands of yen)
Category
LenderDrawdown
date

Sumitomo Mitsui Trust
Bank, Limited

MUFG Bank, Ltd.

1,400,000

January 12,
2016

Sumitomo Mitsui Banking
Corporation

Decrease––––

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,400,000

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

700,000––

700,000

700,000––

700,000

Sumitomo Mitsui Trust
Bank, Limited–

1,420,000–

1,420,000

Mizuho Bank, Ltd.

–

1,420,000–

1,420,000–

720,000–

720,000–

720,000–

720,000

Sumitomo Mitsui Banking
Corporation

January 10,
2020

Development Bank ofJapan Inc.

Category
LenderJanuary 12,2024(Note 3)3,600,000––

3,600,000

1,800,000––

1,800,000

900,000––

900,000

Development Bank ofJapan Inc.

900,000––

900,000

Mizuho Trust & Banking
Co.,LTD.

440,000––

440,000

Resona Bank, Limited.

440,000––

440,000

The Bank of Fukuoka, Ltd.

440,000––

440,000

440,000––

440,000

The Norinchukin Bank

440,000––

440,000

THE NISHI-NIPPONCITY BANK, LTD.

500,000––

500,000

The Bank of Kyoto,Ltd.

300,000––

300,000

Sumitomo Mitsui Trust
Bank, Limited

500,000––

500,000

500,000––

500,000

500,000––

500,000

250,000––

250,000

250,000––

250,000

1,500,000––

1,500,000

1,500,000––

1,500,000

2,100,000––

2,100,000

4,200,000––

4,200,000

2,100,000––

2,100,000

1,050,000––

1,050,000

1,050,000––

1,050,000

6,000,000––

6,000,000

1,100,000––

1,100,000

1,100,000––

1,100,000

1,100,000––

1,100,000

1,100,000––

1,100,000

600,000––

600,000

1,750,000––

1,750,000

3,500,000––

3,500,000

1,750,000––

1,750,000

1,200,000––

1,200,000

1,200,000––

1,200,000

720,000–

Mizuho Trust & Banking
Co.,LTD.

2,000,000––

2,000,000

Mizuho Bank, Ltd.

Resona Bank, Limited.

1,500,000––

1,500,000

MUFG Bank, Ltd.

1,000,000––

1,000,000

Shinkin Central Bank

500,000––

500,000

The Norinchukin Bank

500,000––

500,000

March 31,2017

Sumitomo Mitsui Trust
Bank, Limited

1,200,000––

1,200,000

0.41380%

March 29,2024

0.85377%

June 17,2024(Note 4)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation
Longtermloanspayable(Note 2)

Mizuho Trust & Banking
Co.,LTD.

MUFG Bank, Ltd. (Note 6)

1,200,000––

1,200,000

0.85377%

Mizuho Bank, Ltd.

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

600,000––

600,000

0.85377%

June 17,2024

Development Bank ofJapan Inc.

600,000––

600,000

0.85377%

June 17,2024

1,500,000––

1,500,000
0.33150%(Note 5)June 17,2024

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.

June 13,2016

3,000,000––

3,000,000

Mizuho Bank, Ltd.

1,500,000––

1,500,000

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

MUFG Bank, Ltd.

June 13,2016

Mizuho Bank, Ltd.

Shinkin Central Bank

December 13,
2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

Sumitomo Mitsui Banking
Corporation

The Bank of Fukuoka, Ltd.

––

3,000,000

1,500,000––

1,500,000

The 77 Bank, Ltd.

1,200,000––

1,200,000

MUFG Bank, Ltd.

2,400,000––

2,400,000

MUFG Bank, Ltd.

1,200,000––

1,200,000

Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

600,000
600,000––––

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

600,000

27

December13, 2016

March 7,2019

June 13,2017

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

600,000

September
21, 2016

The Norinchukin Bank

3,000,000

0.54094%

August 29,
2019

Mizuho Trust & Banking
Co.,LTD.

Sumitomo Mitsui Trust
Bank, Limited

September
21, 2016

March 30,
2018

MUFG Bank, Ltd.

Sumitomo Mitsui Trust
Bank, Limited

Mizuho Bank, Ltd.

March 16,2018

Sumitomo Mitsui Trust
Bank, Limited

Resona Bank, Limited.
0.36900%(Note 5)

March 16,2017

Development Bank ofJapan Inc.

June 17,2024

December16, 2015

Decrease

1,800,000

Sumitomo Mitsui Banking
Corporation

720,000

Increase

Endingbalance–Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

Beginningbalance–

Shinkin Central Bank
0.34459%

Drawdown
date

1,800,000–

The Bank of Fukuoka, Ltd.

76

(Unit: Thousands of yen)Endingbalance

Development Bank ofJapan Inc.

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Increase

1,400,000

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

Beginningbalance

June 28,
2019

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.70169%

September
16,
2025(Note 3)

Unsecured,
non-guaranteed

0.46453%

September
16,
2025(Note 4)

Unsecured,
non-guaranteed

0.58630%

September
16,
2025(Note 4)

Unsecured,
non-guaranteed

0.09313%

February 27,
2026(Note 4)

Unsecured,
non-guaranteed

0.61942%

March 19,2026

(Note 3)

Unsecured,
non-guaranteed

0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

0.35765%

September 7,
2026(Note 4)

Unsecured,
non-guaranteed

0.71015%

December
14, 2026(Note 4)

Unsecured,
non-guaranteed

0.23004%

December28, 2026(Note 4)

Unsecured,
non-guaranteed28
77

(Unit: Thousands of yen)
Category
LenderDrawdown
date

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

January 9,
2018

Increase

Endingbalance

Decrease

780,000––

780,000

1,560,000––

1,560,000

780,000––

780,000

Averageinterest rate
(Note 1)0.70698%

Maturity
date

January 9,
2027

Use offunds(Note 4)

Remarks

Unsecured,
non-guaranteed

LenderLongtermloanspayable(Note 2)420,000

Mizuho Bank, Ltd.

420,000––

420,000

MUFG Bank, Ltd.

420,000––

420,000

Sumitomo Mitsui Banking
Corporation

220,000––

220,000

220,000––

220,000

6,000,000––

6,000,000

206,350,000

17,300,000

7,300,000

216,350,000

390,000––

390,000

Development Bank ofJapan Inc.

Sumitomo Mitsui Trust
Bank, Limited–

950,000–

950,000

Development Bank ofJapan Inc.

–

950,000–

950,000–

950,000–

950,000–

475,000–

475,000

Development Bank ofJapan Inc.

–

475,000–

475,000

Sumitomo Mitsui Trust
Bank, Limited

2,200,000––

2,200,000

Mizuho Bank, Ltd.

2,200,000––

2,200,000

2,200,000––

2,200,000

200,000––

200,000

200,000––

200,000

Sumitomo Mitsui Banking
Corporation

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

June 13,
2018

Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited

320,000––

320,000

640,000––

640,000

320,000––

320,000

160,000––

160,000

Development Bank ofJapan Inc.

160,000––

160,000

Sumitomo Mitsui Trust
Bank, Limited

1,000,000––

1,000,000

Mizuho Bank, Ltd.

1,000,000––

1,000,000

1,000,000––

1,000,000

500,000––

500,000

500,000––

500,000–

1,000,000–

1,000,000–

500,000–

500,000

3,210,000––

3,210,000

3,210,000––

3,210,000

1,610,000––

1,610,000

1,610,000––

1,610,000

1,610,000––

1,610,000

1,165,000––

1,165,000

1,165,000––

1,165,000

590,000––

590,000

590,000––

590,000

590,000––

590,000

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

MUFG Bank, Ltd.

January 5,
2018

April 19,2019

Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

April 19,
2019

The Bank of Fukuoka, Ltd.

March 31,
2020

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

January 10,
2019

Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

January 10,
2019

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

May 31,
2019

Total
0.43349%(Note 4)

Decrease–

Development Bank ofJapan Inc.

Unsecured,
non-guaranteed

Increase

Endingbalance–

390,000

January 12,2027

Beginningbalance
420,000–

January 10,
2020

Drawdown
date

Sumitomo Mitsui Trust
Bank, Limited–

MUFG Bank, Ltd.

July 9, 2019

June 13,
2019

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.49281%

July 10, 2028

(Note 4)

Unsecured,
non-guaranteed

0.56511%

December
13,2028(Note 4)

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

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed(Note 7) Use of the borrowings is appropriated to repayment of investment corporation bonds.
(Note 8) Annual repayments of long-term loans payable scheduled for next five years after each balance sheet date were as follows:(Unit: Thousands of yen)
Within 1 year
Long-term loans payable

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

0.54375%(Note 5)

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed

0.65264%January 11,2028(Note 3)

Unsecured,
non-guaranteed

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

29
78(Unit: Thousands of yen)
Category

390,000

Mizuho Bank, Ltd.

Longtermloanspayable(Note 2)Beginningbalance

12,500,000

1–2 years
27,850,000

2–3 years
26,500,000

3–4 years
32,750,000

4–5 years
24,000,000

30
79Independent Auditor’s Report

80

81

82

83

Overview of the Asset Manager

Information on Unitholders

Overview of the Asset Manager

Trends in Unit Prices

Corporate
name

TLC REIT Management Inc.

Established

October 6, 2009

CapitalRegistration &License¥200 million

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

TSE REIT index (left axis)

API (left axis)

Market Cap. (right axis)(¥)(¥ 100 millions)

600,000

5,000

550,000

4,500
4,000

500,000

3,500

450,000
Shareholder

Tokyu Land Corporation 100%

President andCEO

Hiroyuki Tohmata

DNA of Tokyu Land Corporation

3,000

400,000

2,500

350,000

2,000

300,000

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

250,000
200,000

1,500

May 31, 2020
API: ¥366,500
TSE REIT index: 1,701pt
Market Cap.: ¥282.7bn

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

1,000
500
0

Jun. 13, End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of2012 Nov. 2012 May 2013 Nov. 2013 May 2014 Nov. 2014 May 2015 Nov. 2015 May 2016 Nov. 2016 May 2017 Nov. 2017 May 2018 Nov. 2018 May 2019 Nov. 2019 May 2020
(Note 1) Performance of TSE REIT index is indexed to API unit price as of June 13, 2012 being 100.
(Note 2) As API implemented a 2-for-1 investment unit split effected as of October 1, 2015, the closing prices from the listing date to the end of May 2015 are indicated as half asadjusted for the unit split.

Distribution of Unitholders

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

Other domestic
companies

Foreignunitholders

167 (2.2%)

252 (3.2%)
Number ofunitholders
by holder type

Organizational Chart

7,758

Financial
institutions

Shareholders’ Meeting
Corporate Auditor

Securities
companies

52,261(6.8%)

31,188 (4.0%)

Foreignunitholders

Securities
companies

Number ofinvestment units
by holder type

163,488(21.2%)

24 (0.3%)
Individuals,other

175 (2.3%)

Individuals,
other771,224

Financial
institutions

Other domestic
companies

7,140 (92.0%)443,133 (57.5%)

81,154 (10.5%)(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

Board of Directors
Investment Committee

Compliance Committee
President & CEO
Acquisition Priority
Review Meeting
Compliance Dept.

Internal Audit Dept.

Annual Schedule
Closing monthfor the fiscal
period endingin MayAnnouncementof financial
results

Commencementof payment ofdividends

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

Commencement of
payment of dividends

Release of theSemi-Annual
ReportMay

July

AugustSeptember

NovemberJanuary

FebruaryMarch

API Website
Activia
Management Div.

Corporate
Management Div.
Corporate
Human
Finance &Planning Resources Accounting
Dept.
Dept.
Dept.

Asset
Environmental
Investment Engineering
Dept.
Dept.

Strategy
Dept.

Asset
Management
Dept.

Comforia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

Broadia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

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

URL

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

84

85

Information on Unitholders

Unitholder Memo

Withholding tax rate on dividends of listed investment corporations

Account closing dates

May 31 and November 30

Unitholders’ meeting

To be held at least once every two years

Record date forunitholders’ meeting

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

Dates for determining cash
distribution payments

May 31 and November 30

Administrator ofunitholders’ registryCommencement
date of thedividend payment

Dividend tax rate oflisted investment
corporations

From January 1, 2014 through December 31, 2037

From January 1, 2038

20.315%20%
Income tax
15%

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

Breakdown

Residence tax 5%

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

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

Place of business of administratorof unitholders’ registry

Stock exchange

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

Newspaper to provide public notice

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

Nihon Keizai Shimbun

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

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

Please contact the securities company.

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

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

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

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

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

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

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

office/branch of the bank.

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

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

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

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

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

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

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

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

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

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