TOKYU REIT, Inc. Semiannual Report

Investment in

Highly Competitive Properties
in Areas with

Strong Growth Potential

The Fiscal Period
Ended January 2024
(41st Fiscal Period)
From August 1, 2023 to January 31, 2024

BASIC POLICY

1 Investment strategy to secure ‘growth potential’
Invest in areas with strong growth potential—Investment in properties in central Tokyo and Tokyu Areas

Committed to continued collaboration with Tokyu Corporationand its subsidiaries (Note) (Sponsor collaboration)
Growth through heightened added value of the Tokyu Areas

2 A portfolio that secures ‘stability’

Diversified property uses and limited investment regions
Winning long-term contracts with well-balanced tenants
Investment criteria aimed at low risk and steady returns

3 Fund structure that backs ‘transparency’

Thorough implementation of strict measures against conflicts of interest
Independent third-party checks
Proactive disclosure of transaction details

CONTENTS
BASIC POLICY/CONTENTS.......................................... ......... 2
To Our Unitholders . . .......................................................... 3
Financial Summary. . . .......................................................... 4
Performance. . . . . . . . . . . . . ................................................. ......... 5
Topics.. . . . . . . . . . . . . . . . . . . . . . . ................................................. ......... 6
Sustainability Measures. ............................................ ......... 7
Feature.. . . . . . . . . . . . . . . . . . . . ................................................. ........ 14
Investment Management Strategy. . .................................. 16
Financial Strategies.. . ........................................................ 20
Portfolio.. . . . . . . . . . . . . . . . . . ......................................................... 21

Asset Management Report..................................................32
Independent Auditor’s Report............................................64
Balance Sheet........................................................................68
Statement of Income............................................................70
Statement of Changes in Unitholders’ Equity....................71
Statement of Cash Distributions..........................................72
Statement of Cash Flows......................................................73
Notes to Financial Statements.............................................74
Supplementary Schedules....................................................90
Unitholder Information........................................................96(Note)	Tokyu Corporation and its subsidiaries referred to in this semiannual report collectively represent “Tokyu Corporation,” “a subsidiary of Tokyu Corporation” “a tokutei mokuteki
kaisha (TMK) or a special purpose entity (SPE) that was established based on the intention of Tokyu Corporation or a subsidiary of Tokyu Corporation and where the share ofinvestment by silent partnership or other investment shares in that entity by the respective company exceeds 50%.” (The same applies hereinafter.)2

To Our Unitholders
With regard to the next fiscal period onward, after

Executive Director
TOKYU REIT, Inc.

estimating the gain on sale of real estate, etc. to be recorded

Representative Director & President,
Chief Executive Officer
Tokyu Real Estate Investment
Management Inc.

due to the disposition of our 40% quasi-co-ownership in Tokyo

Yoshitaka Kimura

fiscal period ending July 2024. After estimating the temporary

Nissan Taito Building in February 2024, net income per unit isforecast to be ¥4,800 (increase of ¥289 period on period) in thedecrease in leasing NOI accompanying tenant move-outs, net
income per unit is forecast to be ¥2,883 (decrease of ¥1,917

On behalf of, I would like to express mysincere appreciation to all of you, our unitholders, for yourcontinued support and patronage.

period on period) in the fiscal period ending January 2025.
Distribution per unit is planned to be ¥3,750 (same amountas the previous fiscal period) after provision and partial reversal

I hereby report our operating environment and results for the
fiscal period ended January 2024.

of reserve for reduction entry of replaced property for the fiscal
period ending July 2024 and ¥3,400 (decrease of ¥350 period

During the fiscal period ended January 2024, we disposed ofon period) after partial reversal of reserve for reduction entry

our 30% quasi-co-ownership in Tokyo Nissan Taito Building,and reserve for reduction entry of replaced property for the

posting a gain on the sale of ¥1,295 million and provision of

fiscal period ending January 2025.

reserve for reduction entry of replaced property of ¥804 million.

Positioning ESG and the SDGs as important management

We also completed leasing for the extended section of Tokyu

issues,Toranomon Building, at which extension work was completed in

identification of material issues (materiality) and ESG initiatives

June 2022, and the occupancy rate rose by 1.5 percentage

in various fields based on the Sustainability Policy. We also

points from the end of the previous fiscal period to 100%.

prepared a new sustainability report, which was disclosed on

Furthermore, due to factors such as the end of the free-rent

theand Tokyu REIM have promoted

website, in the current fiscal period.

period at Tokyu Toranomon Building and rent increases

will continue to strive to maximize

accompanying move-ins at other properties, leasing NOI wasunitholder value through “investment in highly competitive¥5,372 million (increase of ¥146 million period on period).

properties in areas with strong growth potential.”

Additionally, gain on sale of real estate, etc. rose by ¥12 million

greatly appreciates your continued support.

compared with the previous fiscal period, and operating income
stood at ¥4,843 million (increase of ¥160 million period on

March 2024

period), net income at ¥4,410 million (increase of ¥150 million
period on period), and net income per unit at ¥4,511 (increaseof ¥153 period on period). The distribution per unit will be¥3,750 (same amount as the previous fiscal period), with
provision and partial reversal of reserve for reduction entry of
replaced property.

April 1988
Entered Tokyu Corporation, Railway Operation Division,
Railway Business Unit

April 2011
Tokyu Corporation, General Manager of Planning &Administration Division, Group Companies Business Unit

April 2019
Tokyu Corporation, Deputy Executive General Manager ofCorporate Planning Headquarters

November 1988
Tokyu Corporation, Resort Headquarters

June 2011
Tokyu REIM, Auditor (Part-time)

September 1996
Transferred to K.K. Urabandai Kougen Tokyu Resort

July 2011
Tokyu Corporation, General Manager of Division I, Group
Companies Business Unit

April 2020
Tokyu Corporation, Executive General Manager of Corporate
Planning Headquarters

April 1997
Transferred to TOKYU RESEARCH INSTITUTE, INC.
February 2002
Tokyu Corporation, Management Planning Division,
Corporate Headquarters
April 2005
Tokyu Corporation, Manager of Management Planning
Division, Corporate Headquarters
April 2009
Tokyu Corporation, Manager of Planning & Administration
Division, Group Companies Business Unit

April 2020
Tokyu REIM, Director (Part-time)

April 2012
Tokyu Corporation, General Manager of Group Business
Division, Group Companies Business Unit

July 2022
Transferred to Tokyu REIM, Representative Director &Executive Vice President

April 2014
Tokyu Corporation, General Manager of Business Strategy
Division, Corporate Planning Unit

May 2023
Appointed Executive Director of
position)

October 2014
Tokyu REIM, Director (Part-time)May 2023
Tokyu REIM, Representative Director & President, Chief
Executive Officer (current position)

April 2015
Transferred to Tokyu Green System Co., Ltd., Director &President(current

3

Financial Summary

Fiscal Period Ended January 2024
(FP 41)
Cash Distribution per Unit

Fiscal Period Ending July 2024
(FP 42)
Cash Distribution per Unit

Fiscal Period Ending January 2025
(FP 43)
Cash Distribution per Unit

¥3,750(Fixed)(Date of payment: April 16, 2024)¥3,750(Forecast)(Date of payment: Mid October 2024)¥3,400(Forecast)(Date of payment: Mid April 2025)

Financial Summary
Ended July 2023
(FP 40)
ActualBalance Sheets

31 properties

31 properties

Total Assets¥241,453 million¥241,413 million

Interest-Bearing Debt

¥104,500 million¥104,500 million

43.3%

43.3%

Operating Revenues¥8,924 million¥8,962 million

Net Income¥4,260 million¥4,410 million¥3,750¥3,750¥187,116¥179,195

Number of Properties

Total Assets Loan-to-Value (LTV) Ratio

Statements ofIncomeDistributions

Distribution per Unit
Average Market Price per Unit

4

Ended January 2024
(FP 41)
ActualPerformance
TOKYU REIT, Inc. () listed its units on the Tokyo Stock Exchange on September 10, 2003. With the ultimate goal of
maximizing unitholder value,is engaged in asset investment and management based on principles of growth, stability,
and transparency.
is committed to securing stable earnings and cash distributions through investment in highly
competitive properties in areas with strong growth potential.
invests primarily in office properties, retail properties,
residences and complexes that include any one of these properties located in Tokyo Central 5 Wards and the Tokyu Areas, which refers to
the areas serviced by the Tokyu rail network. As of January 31, 2024 (FP 41),
held 19 office buildings, 8 retail facilities,
2 residences, 1 complex and 1 land with leasehold interest for a total of 31 properties.

Occupancy Rate

Unit Price

(%)
100
99

98.5%
98.4%
98.4%

98

99.4%

99.5%
99.5%

98.8%

99.4%

99.3%

98.6%
98.6%

98.6%

(¥)
250,000

100%

100%
99.8%
99.8%

100%
100%

200,000

150,000

Closing Price at the end of FP 41¥172,00097(Jan. 31, 2024)
100,000

96
95

End ofAug. 2023

RetailEnd ofSep. 2023

End ofOct. 2023

OfficeEnd ofNov. 2023

End ofDec. 2023

50,000Aug. 1,2023

End ofJan. 2024

End of
End ofAug. 2023 Sep. 2023

End ofOct. 2023

End ofNov. 2023

End of
End ofDec. 2023 Jan. 2024

Unit Price

Total

Cash Distribution per Unit(¥)
20,00015,889

5,000

2,500

4,432

2,424

2,846

2,609 2,759

2,835

2,836 2,885

3,072

3,312 3,256

Ended
Jan.
2005
(FP 3)

Ended
Jan.
2006
(FP 5)

Ended
Jan.
2007
(FP 7)

Ended
Jan.
2008
(FP 9)

Ended
Jan.
2009
(FP 11)

3,101

2,519 2,409 2,647 2,621 2,341 2,229 2,403 2,564 2,517 2,586 2,451 2,631 2,695

2,746 2,650 2,650 2,739

3,099 2,923

3,298

Ended
Jan.
2019
(FP 31)

Ended
Jan.
2020
(FP 33)3,551 3,760 3,621

3,950 4,005 4,040 3,750 3,750

0
Ended
Jan.
2004
(FP 1) (Note 1)

Ended
Jan.
2010
(FP 13)

Ended
Jan.
2011
(FP 15)

Ended
Jan.
2012
(FP 17)

Ended
Jan.
2013
(FP 19)Cash Distribution per Unit

Ended Ended Ended
Jan. Jul. Jan.
2014 2014 2015
(FP 21) (FP 22) (FP 23)(Note 2)

Ended
Jan.
2016
(FP 25)

Ended
Jan.
2017
(FP 27)

Ended
Jan.
2018
(FP 29)

Ended
Jan.
2021
(FP 35)

Ended
Jan.
2022
(FP 37)

Ended
Jan.
2023
(FP 39)

Ended
Jan.
2024
(FP 41)(Notes) 1. Official distribution per unit in the fiscal period ended January 2004 (FP 1) was ¥1,897 (adjusted for five-for-one split) based on the actual operating period of 144 days, but the recalculated
distribution per unit of ¥2,424 based on 184 operating days is used in the above graph for the sake of comparison with figures from the fiscal period ended July 2004 (FP 2) and thereafter.
2. Cash distribution per unit have been adjusted to take into account the split of investment units (five-for-one split) conducted on February 1, 2014 for pre-split figures.

Unrealized Gains/Losses and Unrealized Gains/Losses over Book Value(¥ billion)
100

Unrealized Gains/Losses (Left Axis)

90
80

Unrealized Gains/Losses over Book Value (Right Axis)

36.2%

70

89.4
41.1%

60
50

(%)
50
88.5
87.8
45
40
38.5%35
37.9%
30
25

67.1

40

20

30

15

20

10

10
0

5

-0.9%

-10 -0.9

End of Jan.
2004
(FP 1)

0
End of Jan.
2005
(FP 3)End of Jan.
2006
(FP 5)End of Jan.
2007
(FP 7)End of Jan.
2008
(FP 9)End of Jan.
2009
(FP 11)

End of Jan.
2010
(FP 13)End of Jan.
2011
(FP 15)End of Jan.
2012
(FP 17)

End of Jan.
2013
(FP 19)End of Jan.
2014
(FP 21)

End of Jan.
2015
(FP 23)End of Jan.
2016
(FP 25)End of Jan.
2017
(FP 27)

End of Jan.
2018
(FP 29)End of Jan.
2019
(FP 31)

End of Jan.
2020
(FP 33)End of Jan.
2021
(FP 35)End of Jan.
2022
(FP 37)

End of Jan.
2023
(FP 39)-5End of Jan.
2024
(FP 41)5

Topics
Property Disposition (FP ended Jul. 2023 (FP 40) - FP ending Jul. 2024 (FP 42))
Aimed to level incremental distributions and secured funds for future external growth by disposing
over three fiscal periods
Disposition

Overview of property
Jul. 31, 2023
(30% quasi-co-ownership interest)

Disposition dateTokyo Nissan Taito
Building (Office)

Buyer

Gain on sale of real estate,etc.
Of which, provision ofreserve for reduction
entry of replaced property

Feb. 29, 2024
(40% quasi-co-ownership interest)

Domestic godo kaisha (GK)Disposition price

2,385 million yen

2,385 million yen

3,180 million yen

Difference between the disposition
price and the book value (Note 1)

1,288 million yen

1,301 million yen

1,738 million yen

NOI(NOI yield) (Note 2)

279 million yen per annum(3.5%)NOI after depreciation(NOI yield after depreciation) (Note 2)

175 million yen per annum(2.2%)

Occupancy rate (Note 3)

100.0%

Completion date

September 1992

Location

Taito-ku, TokyoEffect of Disposition(Unit: million yen)Jan. 31, 2024
(30% quasi-co-ownership interest)

Use of Proceeds from Sale
Out of sales proceeds, 6,167 million yen (Note 4) will beheld as cash on hand for property acquisitions
targeted to be made by the fiscal period ending
July 2024.

FP ended
Jul. 2023(FP 40)
ActualFP endedJan. 2024(FP 41)
ActualFP endingJul. 2024(FP 42)
Forecast

Total

1,282

1,295

1,729

4,307

652

804

1,089

2,546

(Note 1) Difference between the disposition price and estimated book value as of thedisposition date (as of July 14, 2023) is indicated.
(Note 2) The actual results from February 2022 to January 2023. Yields are based on
disposition price.
(Note 3) As of the end of the fiscal period ended January 2024 (FP 41).
(Note 4) Sum of the book value as of the disposition date, the actual amountof provision of reserve for reduction entry of replaced property and theestimated amount is indicated.

Trend and Guidance for Distribution per Unit
Distribution per unit

Gain on sale, etc. per unit (Note)

Reversal of reserve for reduction entry
Reversal of reserve for reduction entry of
per unit
replaced property per unit
Distribution per unit (excluding gain on sale, etc. per unit (Note),
reversal of reserve for reduction entry per unit and reversal ofAdvanced property
reserve for reduction entry of replaced property per unit)
acquisitions in the property

Distribution floor
3,400 yenreplacement scheme

(yen)

2,739

Period of extension work of
Tokyu Toranomon Building(Period of revenue decrease)

3,099
323

2,923

3,298

40

315

3,551
326

2,739

2,776

2,883

2,983

3,225

End ofJul. 2018(FP 30)End ofJan. 2019(FP 31)

End ofJul. 2019(FP 32)End ofJan. 2020(FP 33)End ofJul. 2020(FP 34)

3,760
365

3,395

End ofJan. 2021(FP 35)

3,621

3,950

4,005
3,400 yen

4,040

3,750

3,750

644

501

654

3,200 yen

1,526

1,636

2,424

2,369

2,353

End ofJan. 2022(FP 37)

End ofJul. 2022(FP 38)End ofJan. 2023(FP 39)

1,687

3,621

End ofJul. 2021(FP 36)

3,750

61

59

3,400

63

3,047

3,188

End ofJul. 2023(FP 40)End ofJan. 2024(FP 41)

65

450

3,033

2,883

End ofJul. 2024(FP 42)
Forecast

End ofJan. 2025(FP 43)
Forecast(Note) Gain on sale of real estate, etc. per unit - Provision of reserve for reduction entry per unit - Provision of reserve for reduction entry of replaced property per unit

(Reference) Change in/Forecast of Balance of Reserve for Reduction Entry per Unit
and Balance of Reserve for Reduction Entry of Replaced Property per Unit

Reversed due to the depreciation for thebuilding of Futako Tamagawa Rise

(Unit: yen)

End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End ofJul. 2024 Jan. 2025
Jul. 2019 Jan. 2020 Jul. 2020 Jan. 2021 Jul. 2021 Jan. 2022 Jul. 2022 Jan. 2023 Jul. 2023 Jan. 2024
(FP 43)(FP 42)(FP 41)(FP 40)(FP 39)(FP 38)(FP 37)(FP 36)(FP 35)(FP 34)(FP 33)(FP 32)
Forecast Forecast

Reserve for reduction
entry per unit

Reserve for reduction
entry of replaced
property per unit

6

Provision

—

364

393

416

—

—

433

—

—

—

—

—

Reversal

—

—

—

—

—

—

—

—

—

—

—

450

Balance

368

733

1,126

1,542

1,542

Provision
Reversal
Balance

—

—

—

—

—

1,542

1,976

1,976

1,976

1,976

1,976

1,525

3,283

—

3,003

667

823

1,114

—

—

—

—

59

61

63

65

3,283

3,283

6,286

6,894

7,655

8,706

8,640

Sustainability Measures
External Certification, Green Finance, etc.
External Certification and Evaluation
GRESB

MSCI ESG Ratings

GRESB Real Estate Assessment

GRESB Public Disclosure
BBB

4 StarGreen Star
(9th consecutiveyear)

A Level(highest rating)*The use by TOKYU REIT of any MSCI ESG RESEARCH LLC or its affiliates (“MSCI”) data, andthe use of MSCI logos, trademarks, service marks or index names herein, do not constitute asponsorship, endorsement, recommendation, or promotion of TOKYU REIT by MSCI. MSCI
services and data are the property of MSCI or its information providers, and are provided“as-is” and without warranty. MSCI names and logos are trademarks or service marks of
MSCI.

Environmental Certification
Acquisition ratio of environmental certification (Note),
Number of properties certified
49.6%
31.5%

14 properties

54.1%

53.3%

14 properties

14 properties

53.2%

CASBEE Real Estate
Assessment Certification

BELS Certification

LEED Certification

Rank S: 3 properties
Rank A: 10 properties: 1 property

Gold: 1 property

15 properties

7 properties

End of Jan. 2022 End of Jul. 2022 End of Jan. 2023 End of Jul. 2023 End of Jan. 2024
(FP 37)(FP 38)(FP 39)(FP 40)(FP 41)* As of the end of February 2024, the acquisition ratio of environmental certification
was 55.4% (15 properties).

Target (Tokyu REIM)
Increase the acquisition ratio of environmental certification (Note)of the owned properties to 70% or more by fiscal 2025

(Note) Based on total floor space (excluding land with leasehold interest). Even when a certification is acquired only for a certain use at properties including multiple uses, the area for which environmental
certification is acquired is calculated based on the total floor area of the said property. The figures are calculated by using the exclusive area based on ownership ratio when part of the ownershipinterest is held at buildings under compartmentalized ownership and the total floor area or exclusive area based on ownership ratio when part of the ownership interest is held at co-owned properties.

Green Finance Framework
Green Eligibility Criteria
1. Green buildings
DBJ Green Building Certification (5, 4 or 3 Stars)
CASBEE Certification (Rank S, A or B+)
BELS Certification (5, 4 or 3 Stars)
LEED Certification (Platinum, Gold or Silver)

2. Renovation work, etc.
Renovation work intending to improve the number of stars or rank by one
or more for any of the environmental certifications listed in 1
Renovation work capable of reducing energy consumption, greenhouse gas
emission or water consumption by 30% or moreIntroduction or acquisition of facilities related to renewable energy

External Evaluation
Obtained the top rank (Green 1 [F]) in the Green Finance Framework evaluation by Japan Credit Rating Agency, Ltd. (JCR)Procurement (balance as of the end of the fiscal period ended Jan. 2024)
Total: 19.0 billion yen (green bond: 6.0 billion yen, green loan: 13.0 billion yen)

Task Force on Climate-related Financial Disclosures (TCFD) (Tokyu REIM)
E ndorsed TCFD recommendations and joined the TCFD Consortium (August 2022)
Analyzed the impact of climate change on businesses based on multiple scenarios (less than 1.5°C less than 2°C, 4°C). Identified andassessed the risks and opportunities for business activities, and implemented disclosure in line with the TCFD recommendations(March 2023)

7

Sustainability Measures
Environmental Measures
Reduction of Energy Consumption and Greenhouse Gas (“GHG”) Emissions / Reduction of Water
Consumption and Waste
Setting of Environmental Performance Targets
46.2% reduction from the level for fiscal 2019 in fiscal 2030

Greenhouse gas emission intensity (Note 1)

Achieve carbon neutrality by fiscal 2050

Energy consumption intensity and water consumption intensity (Note 1)

5% reduction from the level for fiscal 2019 by fiscal 2024

Waste recycling rate (Note 2)

Maintain the level of fiscal 2019 or higher by fiscal 2024

Environmental Performance Data
<FY2022 (Feb. 2022 - Jan. 2023)>
FY2022

vs. FY2019

264,635-114,229(-30.2%)

Scope 1

78

70

Scope 2161

-5,306

Scope 3

1,358

-12,206

Consumption rate (t-CO2/m2)

0.009

Energy consumption (GJ)

Greenhouse gas
emissions(t-CO2)

Water consumption (m3)

142,675

Waste discharge (Note 2) (t)928-0.082(-90.4%)-47,151(-24.8%)-1,837(-66.4%)* Please refer to TOKYU REIT’s website for other items (https://www.tokyu-reit.co.jp/eng)(Note 1) The figures for greenhouse gas, energy and water are counted for each fiscal year from February to January of the following year.
(Note 2) The figures for waste are counted for each fiscal year from April to March of the following year.

Introduction of 100% Renewable Energy
Ratio of properties introduced 100% renewable energy (Note 3)

78.2% (27 properties)

 ajor Construction Work Related to Reduction ofM
Energy Consumption(fiscal period ended Jul. 2023 (FP 40) & fiscal period ended Jan. 2024 (FP 41)) enewal of air conditioning equipment:R
7 properties

Reduction of electricity
consumption(TOKYU REIT Omotesando Square, CONZE Ebisu, Tokyo Nissan Taito Building,
TOKYU REIT Toranomon Building, Akihabara Sanwa Toyo Building,
Shibuya Dogenzaka Sky Building, Futako Tamagawa Rise)Renovation of restrooms: 3 properties<Progress rate of switching to LED at exclusively
owned office areas (Note 4)>
89.3%

80.3%
67.4%

End of Jul. 2022
(FP 38)Reduction of electricity
consumption

End of Jan. 2023
(FP 39)(Note 4) Based on total leasable area.

8

End of Jul. 2023
(FP 40)Introduction of Green Leases
Green lease introduction rate: 78.3% (Note 5)(Note 5) The figure is the percentage of green leases among newly signed leases (including
amendment memorandums) during the fiscal period ended January 2024 (FP 41) basedon the number of leases (excluding Futako Tamagawa Rise and residential sections).

Water-saving(TOKYU REIT Shinjuku 2 Building, TOKYU REIT Ebisu Building, Futako Tamagawa Rise)

86.5%(Note 3) Based on total floor area of properties under management excluding land with leaseholdinterest. The figures are calculated by using the exclusive area based on ownership
ratio when part of the ownership interest is held at buildings under compartmentalized
ownership and the total floor area or exclusive area based on ownership ratio when part ofthe ownership interest is held at co-owned properties.

End of Jan. 2024
(FP 41)

Preserving Biodiversity
Developed “open areas with water andgreenery,” including rooftop greeningof a large-scale facility as part of ouraim to pursue urban development inharmony with the surrounding area’sabundant natural environment(Futako Tamagawa Rise)Acquisition of JHEP certification(Futako Tamagawa Rise)Social Contribution
Initiatives for Social Consideration
Initiatives for Local Communities

Improvement of Safety and Comfort of Tenants egional disaster prevention baseR
(Futako Tamagawa Rise)
Secured stockpiles and conducted training toaccommodate people who have difficulty
returning home in preparation for emergencies

Implementation of disaster prevention drills
Regularly implement disaster prevention drills at
owned properties

 eld an event to enjoy learning aboutHdisaster preparedness(Futako Tamagawa Rise)
Held an event for local residents to learn about
preparing for disasters
 stablished the roof garden as a venue forE
learning(Futako Tamagawa Rise)At the roof garden, various events such as
wildlife observation sessions and vegetablegardening workshops are held

©Futakotamagawa RiseImplementation of training for tenant
employees(Futako Tamagawa Rise)
Conducted training to improve tenant employees’ customer service
capabilities
 enant satisfaction survey
T(Futako Tamagawa Rise)
Conducted satisfaction surveys targeting all tenant employees for the
purpose of improving tenant satisfaction

 isclosure of Information
D
to Stakeholders©Futakotamagawa RiseInstalled disaster-relief vending machines(6 properties: 8 machines)

Issued “Sustainability Report 2022”

Initiatives for the Officers and Employees of the Investment Management Company
Allocation and Development of Personnel Sufficient in Both Quality and Quantity
Training program

Support for the acquisition of qualifications

Implemented various training for all officers
and employees

Supported self-development of officers and employees with enhanced subsidy
programs for acquiring and maintaining qualifications

 ompliance training: 8 times
C(actual results for fiscal 2022)
Diversity training (2023)
Training by job grade (2023)

Major qualifications

6 Real Estate Appraisers

1 Certified Public Accountant

29 Real Estate Notaries

1 First-Class Architect

9 ARES Certified Masters

2 Second-Class Architects

5 Certified Building Administrators

1 AML/CFT Officer, etc.

7 Certified Rental Property Managers
 o. of people who utilized the subsidy programs for acquiring and maintainingN
qualifications: 12 (actual results for fiscal 2022)

Diversity training (2023)

Creation of a Healthy Organizational Culture and Work Environment
Development of comfortable work environment
 atio of female officers and employees, and ratio of female managers: 48% and 39%
RPercentage of employees taking annual paid holiday: 75.8% /Average overtime hours: 20 hours per month (actual results for fiscal 2022)
Enrichment of childcare and nursing care leave system, short-time work system, etc.
Establishment of health committee: Appointment of industrial physician, interview with
officers and employees
Implementation of stress check for officers and employees:
Consultation rate: 93.3% (actual results for fiscal 2022)
Established in-house rules on remote work/shortened working hours and staggered
working hours
Promoted the use of NewWork (Note) (satellite office)Implemented renovation work of the office space at the Investment Management
Company with an aim to promote communication and improve comfort, etc.

Office (after renovation)(Note) Jointly used satellite shared office for corporations operated by Tokyu Corporation.

9

Sustainability Measures
Governance
TOKYU REIT, Inc. Board of Directors’s Board of Directors comprises Executive Directors that execute the operations of the investment corporation andSupervisory Directors that oversee the Executive Directors’ execution of operations. The Articles of Incorporation stipulate that theBoard of Directors must contain one or two Executive Directors and two or three Supervisory Directors, with at least one more
Supervisory Director than the number of Executive Directors. It also limits the term of office of these directors at two years. As of theend of January 2024 (FP 41), there were one Executive Director and two Supervisory Directors (Note) at.

(Note) In addition, appointments of Tatsumi Yamagami as a substitute executive director and Minako Matsumoto as a substitute supervisory director were approved at the General Meeting of Unitholders
of TOKYU REIT held on April 21, 2023.

Maruhito Kondo
Supervisory Director

Yoshitaka Kimura
Executive Director

Takashi Aikawa
Supervisory Director

Maruhito Kondo Supervisory Director

Takashi Aikawa Supervisory Director

April 1988

Admitted to the Bar of Japan (Tokyo Bar Association).
Entered Ohara Law Office.

Admitted to Joto Audit Corporation

May 1988
September 1988
July 1989
February 1996
May 1998

Studied abroad at the Chinese University of Hong Kong.

November 1997
March 2001
April 2003
April 2015
January 2021
May 2021

Outside auditor of SHOEI FOODS CORPORATION (current position)

June 2003

Appointed Supervisory Director, TOKYU REIT, Inc. (current position).

Studied abroad at Renmin University of China.
Worked at Robert Lee & Fong Solicitors in Hong Kong.
Opened Maruhito Kondo Law Office (current position).
Admitted to Daini Tokyo Bar Association(current position).

Admitted to Shinsoh Audit Corporation
Certified as a public accountant in Japan (current)
Appointed Chief Representative, Shinsoh Audit Corporation(current position)
Appointed Supervisory Director, TOKYU REIT, Inc. (current position)*See page 3 about Yoshitaka Kimura’s career.

TOKYU REIT’s Initiatives (Governance)’s Aim, Goals

Characteristics of’s Governance Structure

1

Unitholder first

1

Proactive involvement of independent outside board members

2

Aim to become a “Global investment product”

2

Optimal balance between sponsor collaboration and independence

3

Quality decision-making process3

Strict focus on fiduciary duty for investment managementcompany and the others

4

Aim to become the most reputable J-REIT

4

Management fee set to “being in the same boat as unitholders”

Willing to learn from investors but reject requests from short-term interests
Willing to become invest-worthy for all investors around the globe
Highest level board management in the REIT industry
Outperform other J-REITs’s Management Characteristics

Excellent
Governanceas a Source ofCompetitiveness

Structural

Multiple layers of monitoring and proactive involvement ofoutside board members
Management fee set to “being in the same boat as unitholders”

Stringent measures against conflicts of interest
Board meetings held twice or more a month on a regular basis
and enhanced resolution and reporting system

Human
Resources

Carefully select board members to enhance debate (Note)
Provide appropriate compensation to board members for the
responsibility and the workload

Legal advisor to be present at board meetings

CultureBoard members not hesitant to reject, waive resolution or agreewith conditions
Willing to debate among independent outside board members

Tokyu REIM’s efforts• Strict focus on fiduciary duty
• Management fee programmed to enhance involvement of all business segments• Intend to let all Tokyu REIM staff communicate directly with investors

Status of the Board of Directors’ meetings held (ended Jan. 2024
(FP 41)):
1.6 meetings per month on average

Attendance at Board of Directors’ meeting (ended Jan. 2024 (FP 41))
Yoshitaka Kimura (Executive Director) 100%
Maruhito Kondo (Supervisory Director) 100%
Takashi Aikawa (Supervisory Director) 100%
General Administrator 100%

Track
Record(Note) Professional and a company manager with experience as an outside board member.

10Structure and External Service Providers
Independent Auditor
PricewaterhouseCoopers
Japan LLC (Note 2)

General Meeting of Unitholders

Tokyo Stock Exchange
Unitholder
Investment

Rental and Other Income

TOKYU REIT, Inc.
Board of Directors (Note 1)
Yoshitaka Kimura Executive Director
Maruhito Kondo Supervisory Director
Takashi Aikawa Supervisory Director

Purchaseand SaleInvestment

Unitholder

Investment Unit

Purchaseand SaleCash Distribution

Unitholder

Fund
Procurement

Investment Property

Financial Institution
Investors

Interest andOther Expenses
Property Management

Investment Management
Outsourcing

Administrative Functions
Outsourcing

General Administrator
Asset Custodian
Mitsubishi UFJ Trust andBanking Corporation

Asset Custody
Outsourcing

Investment Management Company
Property
Management
Company

Instructions

Tokyu Real Estate Investment Management Inc.

General Administratorof Investment
Corporation Bonds
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Norinchukin Bank

(Note 1)	In addition, appointments of Tatsumi Yamagami as a substitute executive director and Minako Matsumoto as a substitute supervisory director were approved at the General Meeting ofUnitholders ofheld on April 21, 2023.
(Note 2) Changed its name from PricewaterhouseCoopers Aarata LLC on December 1, 2023.

Overview of Investment Management Fee
Investment management fee structure linked to three performance indices aimed to balance conflicts ofinterest by “being in the same boat as unitholders”
Remuneration

Base 1(Linked to asset
valuation)

Base 2(Linked to cash flow)

Criteria for calculation

Remuneration

Reason for adoption

Ended Jan. 2024 (FP 41)

Asset value at the end of previous fiscal period 0.125%(0.120% for the portion exceeding 200 billion yen and 300 billion yen or less)(0.115% for the portion exceeding 300 billion yen)¥392 million

It will be linked not to the total investment amount but to the total asset valuation and motivate theenhancement of asset value even after the acquisition of properties
Standard cash flow in current fiscal period (Note) 6.0%
(5.7% for the portion exceeding 5.0 billion yen and 7.5 billion yen or less)(5.4% for the portion exceeding 7.5 billion yen)¥324 million

Motivating the increase of distributions through the increase in rent revenue and reduction of expenses
Incentive Fee(Linked to investment
unit price)(Average price in current fiscal period - Highest average price over all previous fiscal periods)
number of units 0.4%
It will motivate the increase in investment unit price and efforts on the overall asset management businesssuch as finance, IR, governance and compliance in addition to the normal asset management business will
be enriched

Not occurred(Note)	Standard cash flow here shall be the amount derived by subtracting an amount equivalent to 50% each of profit or loss from the sale of specified assets and profit or loss from the valuation of
specified assets from the net income before income taxes, plus depreciation and amortization of deferred assets.
*Apart from the above,
pays predetermined fees, etc. to an asset custodian, general administrators, property management companies and an independent auditor, among others.

*	The above fees are all booked as expenses.

does not adopt an acquisition incentive fee, which is capitalized on the balance sheet.

11

Sustainability Measures
Collaboration with Tokyu Corporation and Its Subsidiaries
To achieve external growth,works to acquire a balanced mix of properties from the real estate investment market as
also conducts replacement of properties and other measures as needed

well as Tokyu Corporation and its subsidiaries.

in order to maintain and improve the portfolio quality, aiming to enhance its asset value and increase net income per unit.
also endeavors to achieve internal growth by enhancing earnings stability and growth potential through collaboration
with Tokyu Corporation and its subsidiaries in the areas of property maintenance and management.
The memorandum requires that, when Tokyu Corporation and its subsidiaries attempt to sell
their owned real estate assets that are qualified for investment by

Pipeline Support for Property
Acquisition

preemptively offer the sale to, they should. This arrangement will enabletomake further progress in the implementation of its Capital Re-investment Model explained.
Property Management

Will be outsourced, in principle, to Tokyu Corporation and its subsidiaries.


Trademark License“

has received permission from Tokyu Corporation to use the trademarks of” and “TOKYU.”

Tokyu Corporation owns 49,000 investment units (5.01% of total) ofHolding of Investment Units.

Related Party Transactions
 evelopment of self-imposed rules on transactions with Related Parties (Note) and measures to avoid conflicts ofDinterest through multiple checks
Rules on Related-Party Transactions
Rules for Transactions with Related Parties
Acquisition / Disposition
Acquisition price appraisal value by third party
Disposition price appraisal value by third party
Second opinion for the appraisal by third party

Property Management
Obtain fee opinion from third party
Performance check

Leasing
Appropriate rent level
Disclosure of leasing conditions

Double Checks for Due Process
Investment Management Company Level
Deliberation by Compliance and Risk Management Committee(including two external members)

REIT Level
Prior approval of the Board of Directors only by two independent
supervisory directors

Timely and Proactive Disclosure of Transactions and Rules(Note) “Related Parties” is a collective term for 1 and 2.
1. “Tokyu Corporation and its subsidiaries” refers to any entity that falls under the following (1) to (3):(1) Tokyu Corporation(2) A subsidiary of Tokyu Corporation(3) A tokutei mokuteki kaisha (TMK) or special purpose entity (SPE) that was established based on the intention of Tokyu Corporation or a subsidiary of Tokyu Corporation and where the shareof investment by silent partnership or other investment shares in that entity by the respective company exceeds 50%.
2. Affiliates of Tokyu Corporation

12

Tokyu Real Estate Investment Management Inc.
(Investment management company)

URL: www.tokyu-reim.co.jp/en/

Tokyu Real Estate Investment Management Inc. (“Tokyu REIM”) contracted withon June 20, 2003, to act as its

investment management company.
, Tokyu REIM strives to maximize unitholder value throughUnderpinned by investment policies held in common withbusiness growth, stability and transparent operations. In addition, Tokyu REIM implements strict measures against conflicts of interestand takes all necessary care in transactions with Tokyu Corporation and other related parties.
Tokyu REIM is a financial instruments dealer under the Financial Instruments and Exchange Act (Kanto Financial Bureau (Kin-sho) No. 360).

Board of Directors

Function : Decision-making on management strategy
Members : Representative director & president, representative director & executive vice president,

Compliance and Risk
Management Committee

Function : Advisory on compliance and risk management, and Related-Party transactions
Members : Two directors (part-time), and two external committee members

Investment Committee

Function : Advisory on investment decisions
Members : Representative director & president (committee chairman), representative director &three directors, two directors (part-time) and two auditors (part-time) from sponsors

executive vice president, three directors and one appraiser

Major Shareholder
Name

Address

Shares Held

Ratio

Tokyu Corporation

5-6, Nampeidai-cho, Shibuya-ku, Tokyo

6,000 shares

100%

Organization Chart
Shareholders’ Meeting
Auditors

Auditor Firm
Auditor Office

Investment Committee

Board of Directors

Compliance and Risk Management Committee

Sustainability Promotion Committee

President, Chief Executive Officer (CEO)Disclosure Committee

Executive Vice President
Executive Officer, Chief Compliance Officer (CCO)

Executive Officer, Chief Investment Officer (CIO)

Asset Transaction
Division

Portfolio
Management
Division

Executive Officer, Chief Financial Officer (CFO)

Business Planning& Development
Division

Financeand IR
Division

GeneralAdministration
Division

Compliance
Office13

Feature
Investment Policy

Investment in Highly Competitive Properties in Areas with Strong Growth Potential
Areas with Strong Growth Potential
Investment Area: Tokyo Metropolitan Area
Investment of more than 85% in Tokyo Central 5 Wards and areas along Tokyu rail lines, areas showing population growth andmore growth potential in the Tokyo Metropolitan Area
100% of investment in Tokyo Central 5 Wards and areas along Tokyu rail lines as of the end of January 2024 (FP 41)*Based on acquisition priceControl earthquake risk through PML (Set portfolio PML (Note) at 10% or lower)
Set portfolio PML as of the end of January 2024 (FP 41): 3.4%
Oriented towards total return (comprised of income return (rental revenues, etc.) of each fiscal period and future capital
return (gains on sales))Percentage Share in Total Portfolio by Region
Tokyu Areas(excluding Shibuya Ward)
19.5%

Tokyo Central
5 Wards
80.5%

Area

Tokyu Areas
64.7%

Targeted Areas of Investment
Tokyo Central 5 Wards

CentralTokyo

ShibuyaWard
45.2%

Other major commercial andretail districts of Tokyo
Tokyu rail network hub

Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards
The areas surrounding Ikebukuro, Koraku, Ueno and other areas
Shibuya Ward
Tokyo: Shinagawa, Meguro, Setagaya and Ota wards, Machida city

Tokyu Areas

Other Tokyu rail network
areas

Yokohama, Kanagawa Prefecture:	Kohoku, Kanagawa, Naka, Nishi, Midori, Aoba
and Tsuzuki wards
Kawasaki, Kanagawa Prefecture: Nakahara, Takatsu and Miyamae wards
Yamato, Kanagawa Prefecture

OthersOther districts in the Tokyo Metropolitan Area, including Kanagawa, Saitama and Chiba Prefectures(excluding the separately mentioned areas above)(Note) The PML for the entire portfolio. There is no unified, strict definition of PML; as used in this semiannual report, PML represents the amount and percentage of damages in the event of theoccurrence of the largest earthquake that is expected to happen once in 475 years. Calculations incorporate data relating to the assessment of building conditions of individual properties,
conformity to architectural design, assessment of ground conditions of relevant site and assessment of seismic performance. The PML is based on the earthquake risk assessment reports
prepared by Tokio Marine dR Co., Ltd. Damages in this instance refer to property damage and do not include secondary damages such as loss of life and damages to surrounding facilities.
In addition, damages are limited to structural damage and damages to facilities and building interior and exterior, and do not cover damages caused by earthquake fire which started within
the property and fire damage from surrounding facilities.

14

Highly Competitive Properties
Focus on Location
Office buildings
Within a seven-minute walk from the nearest station as a rule
Retail properties

Travel time from the nearest
train station
(on foot; acquisition price basis)
Over 5 min. 17.6%

Conduct various surveys and analyses in many aspects, including purchasing power
potential of the trade zone, growth potential, compatibility of tenants with the trade

4 min. 8.1%
1 min.
41.9%

zone, and status of competitionR esidences

3 min. 21.9%

Primarily located within a ten-minute walk from the nearest station
Secure favorable location, with focus on exit price and liquidity

2 min. 10.6%

74.4%* of properties lie within a three-minute range (as of the end of January 2024 (FP 41))
* Based on acquisition priceMinimum Investment Amount per Property
4.0 billion yen, in principle (Note 1)
However,(1) Properties located in Tokyu Areas (including Shibuya Ward): 1.0 billion yen(2) Properties located in Central Tokyo (excluding Shibuya Ward) (Note 2): 2.0 billion yen(3) Land with leasehold interest: 1.0 billion yen
Average amount invested per property is ¥7.9 billion (end of January 2024 (FP 41))
* Based on acquisition priceAsset Class( 1) Office buildings
(2) Retail properties

Investment ratio by use *Based on acquisition priceLand with leaseholdinterest 0.5%

(3) Residences
(4) Complexes that include any one of the (1) to (3) above (Note 3)

Complex8.2%
Residence
1.1%(Notes) 1.	The portfolio shall maintain 80% or higher ratio of properties with the investment amount per property of 4.0 billion yen
or larger.
2.	Chiyoda, Chuo, Minato and Shinjuku wards, and other major commercial and retail districts of Tokyo.
3. When a hotel is included in the above complex, it shall, in principle, meet the following criteria.
		 (1) A lease agreement which can reduce business/operational risks of the hotel shall be concluded with the tenant of thehotel portion of the complex.
		 (2) The tenant of the hotel portion of the complex shall be Tokyu Corporation and its subsidiaries or shall possess
operational skills equal to those of Tokyu Corporation and its subsidiaries.

Retail27.5%
Office62.7%

Main Strategy and the Other
Investment management fee structure “being in the same boat as unitholders”

Refer to Page 11“Capital Re-investment Model” through collaboration with sponsors

Refer to Page 16“Value and contrarian investment strategy” focusing on cyclicality of real estate prices

Refer to Page 17

Debt management strong against credit crises

Refer to Page 20

15

Investment Management Strategy
Capital Re-investment Model“Capital Re-investment Model” through collaboration with sponsors
Our unique investment strategy involves a capital re-investment model. When we purchase properties from Tokyu Corporation and its
subsidiaries, the proceeds are eventually used for re-investment in the Tokyu Areas by Tokyu Corporation and its subsidiaries, andis not part of and istherefore, contribute to maintaining and improving the value of our target area. While

independent from the Tokyu Group, we try to explore opportunities for collaboration with Tokyu Corporation and its subsidiaries, while,at the same time, making sure we maintain and observe rules on conflicts of interest that investors also believe in.

Third Parties
Properties

Proceeds

Properties
andProceeds

Investment

CapitalMarketTokyu Corporation (sponsor)
Re-investment in’sTarget Areas

TOKYU REIT, Inc.
ReturnRe-investment
in Other Areas
Railway network enrichment
and safety measures

Acquired 18 properties fromsponsors since listing
Major properties acquired from Tokyu
Corporation and its subsidiaries
Lower vacancy rate, shorten downtime,higher rent, lower cap rate, etc.

Office, retail, and residential realestate development in Tokyu Areas

QFRONT

Futako Tamagawa
Rise

Top three properties based on
unrealized gains on
investment property value(¥ billion)• QFRONT (24.6)• Tokyu Toranomon Building (7.9)• Tokyu Sakuragaoka-cho Building (6.1)

Tokyu Bancho
Building

Minami-machida Grandberry Park

Shibuya redevelopment

Shibuya Hikarie

Tokyu Toranomon
Building

Provided by Shibuya Hikarie

As of the issuance date of this semiannual
report,has no plan toacquire the above property.

Improve the value and population/town
growth of’s target areas

Maintain & enhance the portfolio
value ofSponsor Collaboration in Line with Stages of Life of Property (medium to long term)aims for ceaseless value enhancement in investment targeted areas through division of roles with sponsor.
Property value

Increase ofproperty value

Flow of time

Owner

Sponsor

TOKYU REIT

Sponsor

TOKYU REIT

Tokyu Saginuma Building

Stages of property

Development

Management

Redevelopment

Management

TOKYU REIT—

Attracting prime tenants
Effective renovations—

Attracting prime tenants
Effective renovations

SponsorEnhancement of added
value of Tokyu Areas throughproperty development

Re-investment of funds fromsales in Tokyu Areas, etc.

Enhancement of added
value of Tokyu Areas
through redevelopment

1978: Developed by sponsor
2003: Acquired from sponsor
2011: Renewal (GMS NSC)
2016: Transferred to sponsor

Re-investment of funds fromsales in Tokyu Areas, etc.

Divisionof roles16

Quality development of Tokyu
Areas leveraging know-how
of sponsor group

Aging and Change inexternal environment

Decrease< Concrete examples >Current status: Redevelopment
around station is inprogress

TOKYU REIT’s Long-Term Investment Management Strategy (Surf Plan)“Value and contrarian investment strategy” focusing on cyclicality of real estate prices
has conducted investment with a focus on the cyclicality of real estate prices, in order to achieve enhanced portfolio
has been implementing the “Long-Term Investment Management Strategy (Surf Plan).” Under thisquality. Specifically,

strategy, through value investment and contrarian investment (Note) by focusing on the cyclicality of real estate prices,
secures capital gains while replacing properties, aiming to build a portfolio that boasts lasting competitiveness and balance sheets thatare strong against even difficult economic times. The objective of this approach is to accurately discern the ‘waves’ of prosperity anddepression in real estate market conditions.
+

2nd phase

3rd phase

4th phase0-

Preparation
phase
Acquisition

Acquisition
phase
Sale

Sales andPreparation
Replacement Phase
phase
Real Estate Price(Note) It is not intended for

Acquisition
phase

Public Offering

Sales andPreparation
Replacement Phase
phase

Acquisition
phase

Sales andPreparation
Replacement Phase
phase

Capital Gainto engage in short-term trading in property investments.

Investment Style

Value & Contrary

Value Investment

Contrary Investment

An approach of investing into properties that areundervalued against the respective benchmarks.
aims to secure high yield (total return)by acquiring properties that appear to be undervalued
in terms of their appraisal values, NOI (net operating
income) and other indicators.

An approach of investing in the phase when prices are
falling.
aims to acquire properties when
they are priced low and sell them when they are priced
high, thereby recouping the investment.

Concept
Strong BS even during economic downturns

Portfolio with permanent competitivenessthrough asset replacements

Long-term view••

Portfolio with appreciated properties
Low leverage at bottom of economic cycle••

Sell old properties
Invest in highly competitive properties
in areas with strong growth potential

Economic downturns

Boom periods

Contrary
Investment

Acquisitions during economic downturns (low price)

Dispositions during boom periods (high price)(capital gains)

Flexible
LTV control

LTV during economic downturns/
credit crunch periods
Low High (or raise equity)

LTV during boom periods/loose credit periods
High Low

17

Investment Management Strategy
Investment Targeted Areas
RetailOfficeResidence
Complex
Land with leasehold interest
Central Tokyo

Ikebukuro
StationShibuya Ward
Tokyu Areas

Ueno
StationSuidobashi
StationShinjuku
Ward Chiyoda
WardAkasakaTokyo
StationStationOmote-sando
Chuo
StationWard
MinatoWard

TOKYU REIT Shimokitazawa Square
Shinjuku
StationFutako Tamagawa Rise

ShibuyaWard
ShibuyaStationShimo-takaido StationT
Lin okyue Se

T o k y o Metropol i tan
G ov ernment

tag

ay

Setagaya Ward

shi

Tokyu

e

Lin

-to
Miyamae-en Takatsu
Ward yu Den
k
Ward
o
T

Tokyu
MeguroLineai LineNakahara
Ward

Kawasaki City

yu I

Tok

keg

Tam

Midori Ward

wa

TOKYU REIT Jiyugaoka Square

i Lin

e

Lin

e

Kamata Station

TOKYU REIT Kamata Building
Ota Ward

yokoyu
Tok nhi

am

aga

Line

yu

ma

Line
Kohoku Wardu To

Tsuzuki Ward

Yokohama City S yokoha
Chuo-Rinkan
StationTok

Oimachi
StationShinagawa
Ward

Toky

Tokyu onokuni
Kodom
Line

Machida City

Aoba Ward

GotandaStationMeguroWard

OimachSTYLIO FIT Musashikosugi

Kanagawa Ward
Yamato City

Yokohama
StationNishi Ward

Ueno
StationTokyo Nissan Taito Building

Motomachi-Chukagai
StationNaka Ward

Shinjuku Ward

TOKYU REIT
Shinjuku 2 Building

Kana g a wa
Pref e c t u r e

Suidobashi
StationTokyu Bancho Building

Shinjuku
StationKojimachi Squarecocoti

Akihabara
Sanwa Toyo
Building

TOKYU REIT
Shinjuku Building

Fujisawa City

Chiyoda Ward

Shibuya Ward

Fujisawa Station

TOKYU REIT
Omotesando Square

TOKYU REIT Shibuya
Udagawa-cho Square
QFRONT

Shibuya Station

Tokyu Railways

Minatomirai Line

Tokyo Metro Hanzomon Line

Toei Mita Line

Tokyo Metro Ginza Line

Keio Inokashira Line

Tokyo Metro Yurakucho Line

Keikyu Line

Tokyu Sakuragaoka-cho
Building

Tokyo Metro Hibiya Line

Tsukuba Express

Tokyu Ikejiri-ohashi Building

Tokyo Metro Chiyoda Line

JR Yamanote Line

Meguro Higashiyama Building

Tokyo Metro Tozai Line

JR Saikyo LineREVE Nakameguro(Land with leasehold interest)

Tokyo Metro Namboku Line

JR Tokaido Line

Tokyo Metro Fukutoshin Line

JR Chuo Line
JR Keihin Tohoku LineJR Negishi LineTokyo
StationAkasaka Station

Chuo
Ward

Omote-sando Station Kamiyacho
Aoyama Oval Building Station

Shibuya Dogenzaka
Sky Building

Lexington Aoyama
TOKYU REIT Shibuya Miyashita Koen Building
TOKYU REIT Shibuya R Building
TOKYU REIT Ebisu Building
CONZE Ebisu

Tokyu Meguro Line

Maison Peony Toritsudaigaku

TOKYU REIT Toranomon Building

OKI Shibaura Office
MinatoWard

Tokyu Nampeidai-cho Building
MeguroWard

Tokyu Toranomon Building

GotandaStationShinagawa
Ward* Some properties are only partially owned by TOKYU REIT.
* As for Tokyo Nissan Taito Building, 30% of the quasi-co-ownership interest was disposed on July 31, 2023,
another 30% of the quasi-co-ownership interest was disposed on January 31, 2024, and the remaining
40% of the quasi-co-ownership interest was disposed on February 29, 2024.

18

Status of Redevelopment around Shibuya Station
Redevelopment of Greater SHIBUYA (extensive Shibuya area) (Note) is inprogress mainly by Tokyu Group1 SHIBUYASCRAMBLE SQUARE

Phase I (East building)Opened in November 2019
Phase II (Central building/West building)
Scheduled to open in fiscal 2027
*The schedule may be changed in the future

Harajuku Stn.
Yoyogi Park

Meiji-Jingumae Stn.
Omotesando Hills

Me

TOKYU REIT
Shibuya
Udagawa-cho Square

NHK Studio Park
Abema Towers

Bunkamura

Aoyama Oval bldg.

SHIBUYA109

Shibuya Dogenzaka Tokyu
Sky bldg.
Nampeidai-cho

CeruleanTower

FloorsEast building: B7/47F
Central building: B2/10F
West building: B5/13F

2 SHIBUYA AXSH

Japanese Red Cross
Medical Center

ori

or
i

Tokyu Corporation andits subsidiaries’ properties<Office> CyberAgent, Inc., MIXI, Inc., WeWork

1,000 m radius

LOG ROAD DAIKANYAMA
koTokLine yu Toyo

DAIKANYAMA T-SITE

TOKYU REIT’ s properties

Office, store, observation facility, parking lot, etc.

Major tenants

Scheduled to open in the first half of fiscal 2024

SHIBUYA STREAM

3

Tokyu
Sakuragaoka-cho
bldg.
SHIBUYA BRIDGE

Saigoyama Park

From Shibuya Stn.

1,500 m radius

Usage

-d

ate

am

Tokyu
Ikejiri-ohashi bldg.

1,000 m radius

Tokyu Corporation, East Japan Railway Company, Tokyo
Metro Co., Ltd.

Kokugakuin Univ.

iji-d

uY

Ky

Ikejiri-ohashi
Stn.

i

-tosh

n-en

u De
Toky
Line

TOKYU REIT
Shibuya R bldg.

Me

bldg.

ressway
Metropolitan Exp
buya line
Route No. 3 Shi

2SHIBUYA FUKURAS

Shinsen Stn.
SHIBUYA SOLASTA

Implementing
body

Shibuya Hikarie

1 Shibuya Stn.

Keio Inokashira Line

Lexington Aoyama

Aoyama Gakuin Univ.
MAGNET by SHIBUYA109
KALEIDO Shibuya Miyamasuzaka

4

KomabaTodaimae Stn.

1,500 m radiuscocotiTOKYU REIT Shibuya
Miyashita Koen bldg.

QFRONT

Shibuya Mark City

Omote-sando Stn.

SHIBUYA CAST

Shibuya Parco
Hulic bldg.

Univ. ofTokyo Komaba
CampusTOKYU REIT
Omotesando
SquareTok
Chi yo Me
yod tro
a Li
ne

iji-d
ori

JR Yamanote Lin
e·Saikyo Line

Odakyu Odawara Line
Yoyogi-Koen Stn.

To AoyGi kyo ama
nz M
a L et -dori
ine r oYoyogi-Hachiman
Stn.

To
Ha kyo M
nzo et
mo ro
nL
ine

Tok
Fuk yo M
uto etro
shi
nL
ine

N

Meguro River
Meguro Higashiyama
REVE Nakameguro
bldg.
(land with leaseholdYamainterest)
tedo
ri

Metro
Tokyo
Line
HibiyaTOKYU REIT
Ebisu bldg.

Daikanyama Stn.

Shibuya 2-Chome 17 District Urban Redevelopment
Association (Members: Tokyu Corporation, etc.)

Usage

Office, store, parking lot, etc.

Floors

B4/23F

Ebisu Stn.

Komazawa-dori

3 Shibuya Sakura StageCONZE Ebisu

Naka-meguro Stn.

Implementing
bodyCompletion in November 2023

Properties planned by the Tokyu Group

Ebisu Garden Place*As of the issuance date of this semiannual report.

owns 16 properties in Greater SHIBUYA (extensive Shibuya area) (Note)
where redevelopment is in progress
Acquisition Price: 130.3 billion yen

QFRONTTOKYU REIT
Omotesando
SquareLexington Aoyama

Appraisal Value: 178.2 billion yen

Tokyu
Nampeidai-cho
Building

Tokyu
Sakuragaoka-cho
Building

TOKYU REIT
Shibuya Udagawacho Squarecocoti

Implementing
body

Shibuya Station Sakuragaoka-guchi Area Urban
Redevelopment Association(Member: Tokyu Land Corporation)

Usage

Office, store, residences, church, serviced apartments,
parking lot, etc.

FloorsBlock A: B4/39F
Block B: B1/30F
Block C: 4F

4 Shibuya Upper West Project
Scheduled for completion in fiscal 2027

CONZE Ebisu

Tokyu Ikejiri-ohashi
Building

AoyamaOval Building

TOKYU REIT
Shibuya R
Building

TOKYU REIT
Ebisu Building

TOKYU REIT Shibuya
Miyashita Koen
Building

Shibuya Dogenzaka
Sky Building

and Meguro Higashiyama Building, REVE Nakameguro (land with leasehold interest)(Note) Area within radius of 2.5 km from Shibuya Station.
*Some properties are only partially owned by TOKYU REIT or Tokyu Corporation and its subsidiaries.
*As of the issuance date of this semiannual report, TOKYU REIT has no plan to acquire properties owned by Tokyu Corporationand its subsidiaries, and properties planned by the Tokyu Group.
*Pictures are provided by SHIBUYA SCRAMBLE SQUARE 1 , Shibuya 2-Chome 17 District Urban Redevelopment Association 2 andTokyu Land Corporation 3 . The source of 4 is as follows. Image by Proloog/Copyright: Snøhetta (Provided by: Tokyu Corporation)

Implementing
body

Tokyu Corporation, L Catterton Real Estate,
Tokyu Department Store

Usage

Retail, hotel, residence, etc.

Floors

B4/34F

19

Financial Strategies
TOKYU REIT’s Financial Strategies
Debt management strong against credit crises
With its financial strategies based on stability, flexibility and efficiency,

strives to maximize unitholder value by

reducing capital costs as well as fostering external growth with minimal expenditures.

Basic Policies

Stability in Funding

Management of Low LTV to Ensure Financial Soundness (Note)
Long-term Fixed-interest Debt Financing
Assurance of Multiple Lenders
Diversification of Repayment Dates

Flexibility in Financing

Assurance of Prompt Fund Procurement Schemes

Efficiency

Efficient Cash Management
Assurance of Low-rate Financing Based on Stable Management(Note) An acronym for Loan to Value (LTV). The proportion of liabilities including bonds, debt financing and other interest-bearing liabilities to total asset value.
This formula derives the liability level to the acquired property’s value. Low LTV (namely, less liabilities or high-valued properties) is considered as high level of financial soundness.

Debt

Ratings

Total Interest-Bearing Debt

¥104.5 billion

Long-Term Fixed-Rate Ratio

100.0%

Avg. Duration

4.37 years

Commitment Line

¥18.0 billion (Note)

Japan Credit Rating
Agency, Ltd. (JCR)

Long-term Issuer Rating AA- (Outlook: Stable)

Rating and Investment
Information, Inc. (R&I)

Issuer Rating

A+(Rating Outlook: Stable)(Note)	The execution of the commitment line agreement allows us toundergo debt financing at any given time up to the designatedamount. To this end, a flexible and efficient fund procurement
system has been assured.
	Moreover, there is no outstanding debt under the commitment line
agreement as of January 31, 2024.

Changes in LTV
controls its LTV in a conservative manner in order to secure financial soundness.
(%)
60
42.2

41.9

41.8

44.0

44.9

36.6

34.8

34.4

36.4

37.4

End ofJul. 2019(FP 32)End ofJan. 2020(FP 33)End ofJul. 2020(FP 34)End ofJan. 2021(FP 35)End ofJul. 2021(FP 36)

50

41.6

41.4

32.9

32.9

End ofJan. 2022(FP 37)

End ofJul. 2022(FP 38)

43.5

43.3

43.3

35.5

34.6

34.2

End ofJan. 2023(FP 39)End ofJul. 2023(FP 40)End ofJan. 2024(FP 41)

40
30
20
10
0

LTV based on total assets at the end of period = Balance of period-end interest-bearing debt / Period end total assets
LTV based on appraisal value = (Balance of interest-bearing debt at the end of period + Balance of securities deposit without reserved cash at theend of period) / (Appraisal value at the end of period)

LTV based on appraisal value is calculated by using appraisal value, and thus increases or decreases if appraisal value at the end of period decreases or increases.

Diversification of Repayment and Redemption Dates of Interest-Bearing Debts
In addition,

works to diversify repayment dates for its debt financing in order to avoid the risk of large-scale refinancing

within a short period of time.
Long-term debt repaid during period ended Jan. 2024 (FP 41)
Long-term debt
Investment corporation bonds
Weighted average interest rate (excluding short-term debt)(¥ billion)

0.71%

10.0
1.06%

8.0
6.0
4.0
2.0
0.0

20

0.62%
5.5

1.58%
5.0

0.63%
2.5

7.5

3.0

0.54%

0.65%

5.5

5.7

Long-term debt financed/borrowed during period ended Jan. 2024 (FP 41)
0.80%

0.66%
0.53%

3.0

0.62%

0.62%

5.7

6.0

6.3

5.0

0.68%
9.7

9.4
7.0

Ended Jan. 2024 (FP 41)
Average interest rate

1.0

0.70%

6.0

0.72%
3.0
1.7

1.24%
1.04%

2.5

1.5

1.0

Jul.
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Jan.
Jan.
Jul.
Jan.
Jul.
Jan.
2024 2024 2025 2025 2026 2026 2027 2027 2028 2028 2029 2029 2030 2030 2031
2031 2032(FP 41) (FP 42) (FP 43) (FP 44) (FP 45) (FP 46) (FP 47) (FP 48) (FP 49) (FP 50) (FP 51) (FP 52) (FP 53) (FP 54) (FP 55) (FP 56) (FP 57)

1.07%

0.97%

3.0

2.5

Jul.
Jan.
2033 2033(FP 59) (FP 60)

0.77%

1.00%
1.0

Jan.
2040
(FP 73)

Portfolio (properties owned at the end of January 2024 (FP 41))
Data of the Fiscal Period ended January 2024 (FP 41)
In the acquisition of investment properties,

considers a variety of factors, including a comprehensive analysis offorecasted revenue stream, growth potential of the area, property size, construction and facility specifications, earthquake resistance,leasing rights, occupancy and appeal to tenants, property management, the environment and foundation quality, and theproperty’s competitiveness.

Top 10 Tenants by Leased Area
No.

Tenant name1

OKI Electric Industry Co., Ltd.

2

Rakuten Group, Inc.

3

Business category
Electric equipment
ServiceTokyu Corporation

4

Real estate

Property name
OKI Shibaura Office

Mar. 31, 2030

18,102.32

10.9%

Futako Tamagawa Rise (Note 2)

Mar. 31, 2024 (Note 3)

12,278.49

7.4%

Tokyu Nampeidai-cho Building

Dec. 31, 2031

7,148.18

4.3%

Tokyu Sakuragaoka-cho Building

Dec. 31, 2031

3,878.36

2.3%

REVE Nakameguro(land with leasehold interest)

Sep. 26, 2068

497.02

0.3%

Futako Tamagawa Rise (Note 2)

Mar. 31, 2025

134.780.1%

QFRONT

Dec. 14, 2039

4,502.93

2.7%

Aug. 31, 2025

907.950.5%Service

Aoyama Oval Building (Note 4)

Dec. 31, 2024

4,660.28

2.8%

TOKYU REIT Kamata Building

Sep. 30, 2024 (Note 3)

4,593.33

2.8%

TOKYU REIT Shinjuku Building

Jul. 31, 2024 (Note 3)

1,955.57

1.2%

TOKYU REIT Shinjuku 2 Building

Mar. 31, 2025

1,683.22

1.0%

TOKYU REIT Toranomon Building

Apr. 30, 2024 (Note 3)

3,553.89

2.1%

cocotiNov. 30, 2024

1,584.79

1.0%

TOKYU REIT Omotesando Square

Apr. 30, 2024

1,317.44

0.8%Tokyu Toranomon Building

Nov. 30, 2027

2,374.36

1.4%

Total of top 10 tenants in leased area

69,172.91

41.7%

Total leased area as of end of Jan. 2024 (FP 41 (31 properties))

165,709.27

100.0%

Other financial business
Futako Tamagawa Rise

5

Sansan, Inc.

6

FUJITSU LIMITEDElectric equipment

7

Relo Group, Inc.

Other financial business8

Japan Post Insurance Co., Ltd.

Insurance

9

THINK FITNESS Corporation

Service

PCI Holdings, Inc.

Leased area (m2) Ratio (Note 1)(Note 2)

Culture Convenience Club Co., Ltd.

10

Expiration date

Other financial business(Note 1) “Ratio” indicates ratio of tenant’s leased areas to total leased area of 31 properties held as of the end of the fiscal period ended Jan. 2024 (FP 41).
(Note 2) The leased area at Futako Tamagawa Rise is based on the percentage of co-ownership interest of the acquired compartment under compartmentalized ownership.
(Note 3) Expiration date of contract for largest leased area among multiple leased areas is indicated.
(Note 4) Leased area for the 47.5% quasi-co-ownership interest of trust beneficiary interest of the 97.1% compartmentalized ownership interest is indicated for the tenant of Aoyama Oval Building.

Creation of Portfolio Resilient to Earthquakes
Structural status (earthquake resistance)
Investment
Criteria

Portfolio

Properties that are compliant with the new earthquake resistancestandards (Note), that completed anti-seismic reinforcement work, or thathas PML of less than 15%

29 out of 31 properties comply with the new earthquake resistancestandards(One property is land with leasehold interest only)

Manage properties with a portfolio PML of 10% or less; examinepurchasing earthquake insurance if a portfolio PML surpasses thisfigure.

Portfolio PML: 3.4%
Although the merit of geographical diversification in terms ofearthquake risks is small, the value of the portfolio PML is kept at afairly low level as individual properties have high earthquake
resistant ratings.

(Note) The new earthquake resistance standards are the earthquake resistant design standards based on the Building Standards Act, which was revised in 1981 with the aim to prevent buildings fromcollapsing even from earthquakes with seismic intensity of six and secure safety for human lives. Buildings that obtained building confirmation in June 1981 and after are understood to satisfy the
new earthquake resistance standards. In fact, there were almost no reports of collapsing of buildings that were designed in accordance with the new earthquake resistance standards from the Great
Hanshin Earthquake in 1995 and the Great East Japan Earthquake in 2011, in which a seismic intensity of seven was actually observed.

21

Portfolio (properties owned at the end of January 2024 (FP 41))
Track Record (Results of Management)
Changes in Occupancy Rate
Total

(%)
100

Retail Properties

Office
100%
100%
100%

95

90

85

End ofJul. 2014(FP 22)End ofJul. 2015(FP 24)End ofJul. 2016(FP 26)End ofJul. 2017(FP 28)End ofJul. 2018(FP 30)End ofJul. 2019(FP 32)End ofJul. 2020(FP 34)End ofJul. 2021(FP 36)End of
End ofJul. 2023 Jan. 2024
(FP 40) (FP 41)

End ofJul. 2022(FP 38)Changes in Average Rent
Total(¥/month/tsubo)

50,000Retail Properties

Office42,15640,00030,00023,243
20,33020,00010,0000

End ofJul. 2014(FP 22)End ofJul. 2015(FP 24)End ofJul. 2016(FP 26)End ofJul. 2017(FP 28)End ofJul. 2018(FP 30)End ofJul. 2019(FP 32)End ofJul. 2020(FP 34)End ofJul. 2021(FP 36)End ofJul. 2022(FP 38)End of End of
Jul. 2023 Jan. 2024
(FP 40) (FP 41)

Disposition
248.6
232.5

*Based on acquisition price* In calculating the above unit price, we haven’t factored in vacant spaces.
* Includes common area charges and excludes income from parking, warehouses, etc.
* 1 tsubo 3.30578 m2

Change in Asset Size(¥ billion)
250
229.6

Retail
222.0

222.0

Office
224.8

223.6

Residences
222.3

222.3

Complex
223.5

223.5

Land with leasehold interest
225.1

231.4

231.2

231.0

242.6

232.4

247.6

246.3

244.9
67.3

200
150

153.6

100
50

2.7

0

-9.5
End of–50 Jul. 2014
(FP 22)End of Jul. 2015
(FP 24)End of Jul. 2016
(FP 26)-1.2-4.0
End of Jul. 2017
(FP 28)End of Jul. 2018
(FP 30)-5.1
End of Jul. 2019
(FP 32)-1.7-1.8
End of Jul. 2020
(FP 34)

-1.8

-34.7
End ofJul. 2021(FP 36)-9.8
End ofJul. 2022(FP 38)

-5.0

-1.3

End of End of
Jul. 2023 Jan. 2024
(FP 40) (FP 41)

Sale of Tokyu Saginuma
Sale of TOKYU REIT Kiba Building
Building and TOKYU REIT
Sale of KALEIDO Shibuya Miyamasuzaka
Hatchobori Building
Sale of TOKYU REIT Akasaka Hinokicho Building
Sale of Tokyu Saginuma 2 Building
Sale of OKI System Center (land with leasehold interest) (40%)
Sale of Shonan Mall Fill (land with leasehold interest), Daikanyama Forum, Setagaya Business Square and OKI System Center (land with leasehold interest) (30%)
Sale of OKI System Center (land with leasehold interest) (30%), Akasaka 4-chome Building (Tokyu Agency Inc. Head Office Building)Sale of Tokyu Ginza 2-chome Building
Sale of Tokyo Nissan Taito Building (30%)
Sale of Tokyo Nissan Taito Building (30%)

Sale of Beacon Hill Plaza(Ito-Yokado Noukendai Store)

22

-13.9

20.2
-1.3

1.1

Portfolio Overview (at the end of January 2024 (FP 41))

RetailUse

Name of Property

Acquisition
Date

AcquisitionPrice(¥ million)

Location

Ratio
Probable Maximum
Loss (PML) in
Total Leasable Occupancy (Based on
2Acquisition Earthquake Risk
Area (m )Rate(Note 1)AnalysisPrice)QFRONT

Sep. 10, 2003

15,100

Shibuya Ward, Tokyo

4,502.93

100%

6.2%

2.0%

Lexington Aoyama

Sep. 11, 2003

4,800

Minato Ward, Tokyo

2,094.96

100%

2.0%

8.0%

TOKYU REIT Omotesando Square

Sep. 10, 2003

5,770

Shibuya Ward, Tokyo

2,669.10

100%

2.4%

9.9%

TOKYU REIT Shibuya Udagawa-cho Square

Mar. 1, 2004

6,600

Shibuya Ward, Tokyo

1,543.05

100%

2.7%

8.5%

Apr. 6, 2005

14,700
Shibuya Ward, Tokyo

8,295.62

100%

10.0%

1.8%

Aug. 2, 2005

9,800

CONZE Ebisu

Oct. 31, 2006

5,116

Shibuya Ward, Tokyo

2,327.00

100%

2.1%

4.3%

TOKYU REIT Shimokitazawa Square

Apr. 26, 2019

2,257

Setagaya Ward, Tokyo

1,246.98

100%

0.9%

7.8%

Meguro Ward, Tokyo

1,231.80

100%

1.3%

5.8%

cocotiOct. 1, 2019

1,548

Mar. 4, 2020

1,611

Tokyu Nampeidai-cho Building

Sep. 11, 2003

4,660

Shibuya Ward, Tokyo

7,148.18

100%

1.9%

6.4%

Tokyu Sakuragaoka-cho Building

Sep. 11, 2003

6,620

Shibuya Ward, Tokyo

4,737.19

100%

2.7%

3.8%

Sep. 11, 2003

1,780

Taito Ward, Tokyo

3,150.97

100%

0.7%

1.7%

Sep. 10, 2003

4,720

Ota Ward, Tokyo

7,337.82

100%

1.9%

4.9%

Dec. 15, 2004

8,630

Minato Ward, Tokyo

10,238.07

100%

4.2%

3.2%

TOKYU REIT Jiyugaoka SquareTokyo Nissan Taito Building(Note 2)TOKYU REIT Kamata Building

1,100
Sep. 21, 2007
TOKYU REIT Toranomon Building

200

OfficeOct. 26, 2007

140

Jan. 21, 2015107

Tokyu Ikejiri-ohashi Building

Mar. 28, 2008

5,480

Meguro Ward, Tokyo

5,710.32

100%

2.2%

3.8%

Kojimachi Square

Mar. 19, 2010

9,030

Chiyoda Ward, Tokyo

5,409.07

100%

3.7%

3.3%

TOKYU REIT Shinjuku Building

Mar. 26, 2010

9,000

Shinjuku Ward, Tokyo

6,270.68

100%

3.7%

3.9%

Akihabara Sanwa Toyo Building

Oct. 29, 2010

4,600

Chiyoda Ward, Tokyo

4,433.37

100%

1.9%

6.2%

TOKYU REIT Shibuya R Building

Aug. 16, 2013

5,270

Shibuya Ward, Tokyo5,246.68

100%

2.2%

3.1%

Minato Ward, Tokyo

11,029.27

100%

7.6%

2.4%

Shinjuku Ward, Tokyo

1,790.46

100%

1.1%

3.6%

Chiyoda Ward, Tokyo

6,137.50

100%

5.6%

2.2%

Aug. 16, 2013

15,000Tokyu Toranomon Building

Jan. 9, 2015

1,850

Jun. 30, 2022

1,700

TOKYU REIT Shinjuku 2 Building

Oct. 30, 2015

2,750

Mar. 24, 2016

12,740Mar. 28, 2019

1,040

TOKYU REIT Ebisu Building

Aug. 1, 2018

4,500

Shibuya Ward, Tokyo

1,872.80

100%

1.8%

2.8%

Shibuya Dogenzaka Sky Building

Mar. 28, 20198,100

Shibuya Ward, Tokyo

4,136.05

100%

3.3%

4.9%

OKI Shibaura Office

Sep. 28, 2020

11,900

Minato Ward, Tokyo

18,102.32

100%

4.9%

3.4%

TOKYU REIT Shibuya Miyashita Koen Building

Mar. 29, 2021

6,000

Shibuya Ward, Tokyo

2,299.69

100%

2.4%

2.8%

Aoyama Oval Building

Dec. 10, 2021

18,600

Shibuya Ward, Tokyo

8,527.90

99.6%

7.6%

2.3%

Meguro Higashiyama Building

Mar. 24, 2022

8,100

Meguro Ward, Tokyo

6,152.43

100%

3.3%

3.6%

Maison Peony Toritsudaigaku

Nov. 15, 2017

1,200

Meguro Ward, Tokyo

852.16

100%

0.5%

2.9%

STYLIO FIT Musashikosugi

Jan. 20, 2021

1,500 Kawasaki City, Kanagawa Prefecture

1,830.00

100%

0.6%

6.3%

Land withleaseholdinterest

Complex

Residence

Tokyu Bancho Building

Futako Tamagawa Rise

Jan. 31, 2023

20,200

Setagaya Ward, Tokyo

18,919.73

100%(Block I-b) 3.9%
(Block II-a)2.5%
8.2%(Block II-b)3.6%(Block III) 3.3%

REVE Nakameguro(Land with leasehold interest)

Sep. 27, 2018

1,150

Meguro Ward, Tokyo

497.02

100%

0.5%

—

165,741.12

100%

100.0%

3.4%

Total

244,971(Note 1) Ratio is rounded to one decimal place. Accordingly, the total may not exactly match the sum of relevant items.
(Note 2) 30% of the quasi-co-ownership interest was disposed on July 31, 2023, another 30% of the quasi-co-ownership interest was disposed on January 31, 2024, and the remaining 40% of the quasico-ownership interest was disposed on February 29, 2024.

23

PORTFOLIO (properties owned at the end of January 2024 (FP 41))
Properties contributed by sponsors

Lexington Aoyama

Properties contributed by sponsors

A retail property
representing Tokyo facing
the scramble crossing infront of Shibuya Station andhaving extremely highvisibility with a large display
screen installed on the wall.

kam

ura-d

Shibuya Upper West
Project (under planning)ori Shibu
ya

Cente

r-gai

SHIBUYATOKYU
REI HOTELQFRONT

Magnet by
Shibuya Stn. SHIBUYA109

Shibuya 109

Lin
e

TOKYU PLAZAOMOTESANDO HARAJUKUonTokyo Metro
Fukutoshin
Line

JR
Saikyo
Line

yo
Me
tro
ya
H
ma
-do anzomri

TOKYU REIT Shibuya
ori Udagawa-cho Square

TOKYU REIT
Omotesando Square

Omotesando
Hills
Om

ote

To
k

Bun

JR
Yamanote
Line

ira-d

Me Me
To ijiji-i-jijin iji-d
Fuk kyo M ngguumma ori
uto etr eaeStSnt.
shin o
n.
Lin
e

ash

Shibuya Stn.
Meiji-doriInok

A retail property comprisedof tenants such as apparelstores and located at thecenter of Kotto-dori wherestores serving customers
with high sensibility
concentrate.

sanOmote-sando
Stn.

do

SHIBUYASCRAMBLE SQUARE(under construction)

SHIBUYA FUKURAS

aL
ine
inz

tro

Ch

iyo

da

Lin

e

Lexington Aoyama
Kot
t

o-d

Aoyama Gakuin Univ.

ori

Address:
21-6, Udagawa-cho, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a one-minute walk from Shibuya Station—JR
Yamanote Line, etc.
Total Land Space:	784.26 m2 (Land included in the property trust totals 728.30 m2)
Total Floor Space:	6,675.52 m2 (Exclusive area 4,804.46 m2)
Structure/Floors:
SRC/S, B3/8F
Completed:
October 1999
Type of Ownership: Land—Proprietary ownership
Building—Compartmentalized ownership

Address:
5-11-9, Minami-Aoyama, Minato-ku, Tokyo
Nearest Station:	Approximately a five-minute walk from Omote-sando Station—
Tokyo Metro Ginza Line, etc.
Total Land Space: 776.59 m2
Total Floor Space: 2,342.21 m2
Structure/Floors:
S/RC, B1/4F
Completed:
January 1998
Type of Ownership:	Land—Proprietary ownership
Building—Proprietary ownership

TOKYU REIT Omotesando Square

Properties contributed by sponsors
TOKYU REIT
Shibuya Udagawa-cho Squarendo

Omote-sando Stn.
Tok
yo
Me
tro
Ch
iyo

Lin

e

QFRONT
gai
Magnet by
SHIBUYA109

en-

Kott
o

-do

ri

Address:
4-3-2, Jingumae, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a two-minute walk from Omote-sando Station—
Tokyo Metro Ginza Line, etc.
Total Land Space: 1,259.21 m2
Total Floor Space: 3,321.20 m2
Structure/Floors:
S/SRC, B1/4F
Completed:
October 1985
Type of Ownership: 	Land—Proprietary ownership
Building—Proprietary ownershipuD

Aoyama Gakuin Univ.

SHIBUYATOKYU
REI HOTEL

Hachiko Statue
Shibuya Excel Hotel Tokyu
Shibuya Stn.
Moyai Statue
Shibuya Mark Cityen-

Lexington Aoyama

tos

da

Do
ge
n
hi L
ine zaka

Shibuya 109

Tok
y

Tok
yo
Me
tro
Gin
za
Lin
e

Aoyama Oval Buildingori Shibu
ya C

enter-

Mizuho BKMIYASHITAPARKTokyo Metro
Fukutoshin Line
Shibuya Stn.
Meiji-doriShibuya Upper West Bunka
mura
Project (under planning)
-d

yo

tesa

JR Yamanote LineAo

TOKYU REIT
Inok
Shibuyaash
Udagawa-cho
ira-dori Square

Me

tro

TOKYU REIT
Omotesando Square
Omotesando
Om
Hills
o

A retail property facing
Inokashira-dori and Shibuya
Center-gai, occupied by anapparel store.

Ha
nz
om
on
ya
Lin
ma
e
-do
ri

TOKYU PLAZAOMOTESANDOHARAJUKU

To
k

Me
Me
ij
ij
To i-jing dori iFuk kyo Me umae
uto tro
Stn
shin
.
Line

A retail property locatednear Omote-sando Station,
comprised of various storessuch as restaurants, cafés,general merchandise store,
sports gym and beautysalon, etc.

24

Aoyama Oval Building

SHIBUYASTREAM

Shibuya
Sakura StageMeoG

Shibuya Stn.

Moyai
StatueyoMetr

ShibuyaMark City

Shibuya
Hikarie

To
kyo

sh
iL
ine

za
ka
en
Do
g

T
De okyunen-toShibuya Excel Hotel Tokyu

Tok

Mizuho BK

Hachiko Statue

Ao

QFRONTSHIBUYA FUKURAS

Shibuya
Hikarie

SHIBUYASCRAMBLE SQUARE SHIBUYA(under construction) STREAM
Shibuya Sakura Stage

Address: 	[Bldg. 1] 25-10, Udagawa-cho, Shibuya-ku, Tokyo[Bldg. 2] 25-5, Udagawa-cho, Shibuya-ku, Tokyo
Nearest Station:	Approximately a two-minute walk from Shibuya Station—JR
Yamanote Line, etc.
Total Land Space: 679.27 m2
Total Floor Space: 	 [Bldg. 1] 1,473.10 m2[Bldg. 2] 56.39 m2
Structure/Floors:[Bldg. 1] S, 3F[Bldg. 2] S, 2F
Completed: 	[Bldg. 1] July 1998
[Bldg. 2] June 1995
Type of Ownership: L and—Proprietary ownership
Building—Proprietary ownershipcocoti

CONZE Ebisu

kam

ura-d

ge

Do

SHIBUYAQFRONT
TOKYU
Magnet by REI HOTELSHIBUYA109
Shibuya Stn.
Hachiko Statue

ter-g

ori
Shibuya 109

ai

uS
tn.
Eb
is

-dori

CONZE Ebisu

PEACOCKSTORECALPIS

Shibuya
Post OfficezakaMiyamasu

Shibuya Hikarie

Shibuya Stn.

YebisuGarden Placee

Shibuya Excel Hotel Tokyu

Komazawa

TOKYU REIT
Shibuya Miyashita
Koen Building

o Lin
aiky
JR S
Line

ka
nza

Ebisu Business Tower
Atre Ebisu

te
ano
am
JR Y

Bun

MIYASHITA
PARK

Ebisu Park

cocotiTokyo Metro Hibiya Line.

TOKYU REIT
ashir
a-do Shibuya Udagawa-cho Squareriya Cen

JR Saikyo Line

ri

Inok

Shibu

Tokyo Metro Fukutoshin Linedo

Meiji-dori
TOKYU REIT
Ebisu Building

SHIBUYA CAST.

Shibuya Stn.
Meiji-dorin-

A retail property located in
the Ebisu area occupied byrestaurants and service
stores.
Redevelopments areunderway nearby and thearea can be expected to
grow more vibrant.

u Stn
Ebis

Ko
e

JR Yamanote LineA retail property withhigh-quality design locatedalong Meiji-dori andoccupied by brand shops
and cafés.

Moyai Statue

Address:
1-23-16, Shibuya, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a one-minute walk from Shibuya Station—JR
Yamanote Line, Tokyu Toyoko Line and Tokyo Metro FukutoshinLine, etc.
Total Land Space: 1,705.35 m2
Total Floor Space: 11,847.87 m2
Structure/Floors:
S/SRC, B2/12F
Completed:
September 2004
Type of Ownership: Land—Proprietaryownership
Building—Proprietary ownership

Address:
2-3-14, Ebisu-Minami, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a two-minute walk from Ebisu Station—Tokyo
Metro Hibiya Line, etc.
Total Land Space: 562.07 m2
Total Floor Space: 2,789.35 m2
Structure/Floors:
S/SRC, B1/9F
Completed:
March 2004
Type of Ownership: 	Land—Proprietary ownership
Building—Proprietary ownership

TOKYU REIT Shimokitazawa Square

TOKYU REIT Jiyugaoka Square
A retail property locatedapproximately a two-minute
walk from Jiyugaoka Station on
the Tokyu Toyoko and Oimachilines.
Facing Kuhombutsugawa
Ryokudo (Green Street), where
there is a concentration ofmany sophisticated stores andcustomer-visiting-type offices.

A retail property located in
the Shimo-kitazawa area
occupied by stores andoffices.
Redevelopment of thestation-front plaza of
Shimo-kitazawa Station,pedestrian pathways, etc.
are underway and greater
bustle are anticipated.
Shimokitazawa Seitoku
Senior High School

Central Gate

TOKYU REIT
Shimokitazawa SquareeWest Exit

Kitazawa Town Hall
Honda Theatre

Shimo-Kitazawa Stn.

Address:
6-6-1, Daita, Setagaya-ku, Tokyo
Nearest Station: 	Approximately a three-minute walk from Shimo-kitazawa
Station—Keio Inokashira Line
Approximately a five-minute walk from Shimo-kitazawa
Station—Odakyu Odawara Line
Total Land Space: 489.27 m2
Total Floor Space: 1,306.55 m2
Structure/Floors:
RC, B1/4F
Completed:
June 2008
Type of Ownership: Land—Proprietary ownership
Building—Proprietary ownership

Line
chi
ima
yu O
Trainchi
TOKYU REIT
Jiyugaoka

Shimokitazawa
Hospital

PEACOCK STORE

Jiyugaoka
Square

iver

uR

Tok

uts
mb

en

Gre

y

Wa

o

Kuh

Tokyu
Line Toyoko

ra LineFullel With Jiyugaoka
South Gateoriokashi

yu

ak

Od

a

ar

w

a
Od

Jiyugaoka Stn.

Lin

Jiyu-dri
ura-doKamak

Keio In

Jiyugaoka Tokyu Building

Address:
2-13-6, Jiyugaoka, Meguro-ku, Tokyo
Nearest Station:	Approximately a two-minute walk from Jiyugaoka Station—
Tokyu Toyoko Line and Oimachi Line
Total Land Space: 575.54 m2
Total Floor Space: 1,272.60 m2
Structure/ Floors: SRC, 5F
Completed:
December 2001
Type of Ownership: Land—Proprietary ownership
Building—Proprietary ownership

25

PORTFOLIO (properties owned at the end of January 2024 (FP 41))
Properties contributed by sponsors

Properties contributed by sponsors
Tokyu
Sakuragaoka-cho Building

Lin
Yam
JR

Address:
5-6, Nampeidai-cho, Shibuya-ku, Tokyo
Nearest Station:	Approximately a seven-minute walk from Shibuya Station—JR
Yamanote Line, etc.
Total Land Space: 2,013.28 m2
Total Floor Space: 7,003.88 m2
Structure/Floors:
S/SRC, B2/5F
Completed:
July 1992
Type of Ownership: L and—Proprietary ownership
Building—Proprietary ownership

o

lR
ona
Nati
SHIBUYASOLASTA

Shibuya
Sakura Stage

Tokyu
Sakuragaoka-cho
Building

Shibuya
Hikarie

ine
oL
yok
ri
To
do
yu
ijiMe

a
nz
ak
Do

ge

o. 3
te N
Rou
way
press
n Ex
ta
li
o
op
Cerulean Tower
Metr
Tokyu Hotel46
o. 2
Cerulean Tower
ad N

yo

an

ote

L

ine

Tokyu Nampeidai-cho Building

Shibuya Stn.

SHIBUYA FUKURAS

e

kyu
To

SHIBUYASTREAMTo
De kyuLin n-ene
tos
hi

ori

ine

L
ko

yo
To

SHIBUYA FUKURAS

d
ijiMe

SHIBUYA
Moyai Statue SCRAMBLE SQUARE(under construction)

o. 3
46
te N
No. 2
Rou
Road
Shibuya
way
onal
press
Sakura Stage
Nati
n Ex
ta
li
opo
Cerulean Tower
Metr
Tokyu Hotel
Tokyu
Cerulean Tower
Sakuragaoka-cho
Building
SHIBUYA SOLASTA

Shibuya Excel Hotel Tokyu

Line
SHIBUYA
shira
Moyai Statue SCRAMBLE SQUARE
Inoka
Shibuya Mark City
Keio
(under construction)

SHIBUYASTREAMkTo

Hachiko Statue

Shibuya
Hikarie

Shibuya Stn.

Saik

en
Do
g
To
De kyuLin n-ene
tos
hi

Keio

Line ShibuyashiraMark City
Inoka

JR

za
ka

Hachiko Statue
Shibuya Excel Hotel Tokyu

A nine-story office building
located in the Shibuya area
where development is
progressing. Occupied by
Tokyu Corporation.

roo Met neToky toshin Li
Fuku ya Stn.
ShibuoMetr neTokyotoshin Li
Fuku ya Stn.
u
ib
h
S

A five-story office building
located in the Shibuya area
where development is
progressing. Occupied by
the headquarters of Tokyu
Corporation.

e
Lin
ote
an
e
Lin
Yam
yo
JR
aik
S
JR

Tokyu
Nampeidai-cho Building

Tokyu Nampeidai-cho Building

Address:
31-2, Sakuragaoka-cho, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a five-minute walk from Shibuya Station—JR
Yamanote Line, etc.
Total Land Space: 1,013.03 m2
Total Floor Space: 6,505.39 m2
Structure/Floors:
SRC, B3/9F
Completed:
June 1987
Type of Ownership: L and—Proprietary ownership
Building—Compartmentalized ownership (Note)(Note) All of compartmentalized ownership with whole building are entrusted.

Properties contributed by sponsors

Address:
2-6-6, Moto-Asakusa, Taito-ku, Tokyo
Nearest Station:	Approximately a three-minute walkfrom Inaricho Station—Tokyo Metro
Ginza Line
Total Land Space: 1,718.45 m2
Total Floor Space: 11,373.20 m2
Structure/Floors:
SRC, B2/10F
Completed:
September 1992
Type of Ownership: L and—Proprietary ownership
Building—Proprietary ownership

26eTokyu Ikegami Line

Kamata Stn.

Tokyu Tamagawa Line

Tokyo Nissan Taito
Building

Tsukuba Exp
ress
Kasuga-doriNaka-okachi Toei Oedo Line Shin-okachi-machi-machiStn.
Stn.

* 30% of the quasi-coownership interest wasdisposed on July 31,
2023, another 30% of
the quasi-co-ownershipinterest was disposed on
January 31, 2024, andthe remaining 40% of
the quasi-co-ownershipinterest was disposed on
February 29, 2024.

Ota City OfficeAroma Square

Yuzawaya

TOKYU REIT
ApricoKamata Building
Line

Stn.

Maruetsu

hokuTokyo M
etro Ginz
a LineAsakusa-dori
InarichoTokyu Plazaihin To

Okachi-mhi
Stn.

GRANDUO
East
Kamata Stn.

ty Officashi-doriachi Stn.

JR Lines

Ueno-okachi-mac

Metropolitan Expr
esswayUeno Line

Chuo-

dori

Ueno Marui

Taito Ci

A nine-story ofﬁce building
located near Kamata Station
where there are available
three lines operated by two
railway companies as wellas the Ota City Ofﬁce.

Kiyosub

Ueno Stn.

Syo
wa
-do
To
ri
Lin kyo M
e
etro
Hib
iya

Takamori
Saigo Statue

Keisei Ueno

Stn.

A highly convenient office
several stations including
Ueno Station, Inaricho
Station and ShinOkachimachi Station
available for use.

TOKYU REIT Kamata Building

JR Ke

Tokyo
Nissan Taito Building

Kampa

chi-dor

Address:
5-13-23, Kamata, Ota-ku, Tokyo
Nearest Station:	Approximately a three-minute walk from Kamata Station—JR
Keihin Tohoku Line, etc.
Total Land Space: 1,642.86 m2
Total Floor Space: 10,244.51 m2
Structure/Floors:
S/SRC, B1/9F
Completed:February 1992
Type of Ownership: L and—Proprietary ownership
Building—Proprietary ownershipiTOKYU REIT Toranomon Building

Tokyu Ikejiri-ohashi
Building

Properties contributed by sponsors

An office building located in
an area expected to become
more vibrant where largescale redevelopments areunderway nearby.

A seven-story officebuilding, expected toaccommodate stabledemand in the Shibuya
area.

For Toranomon
The Okura Tokyo

Toranomon Hills
Station Tower

Tokyu Toranomon Building
Toranomon Hills
Business Tower
Toranomon Hills
Mori Tower
Shin
tora
-dori

iya
Lin

Japan Meteorological
Agency/Minato
Education Centere

Toranomon-hills
Stn.

i-

jir
Ike

D

Line

Sugekari
Elementary School

Ohashi Junction

Tokyu Ikejiri-ohashi
Building

Higashiyama
Kaizuka Park

Sugekari
Park

Me

gu

ro

Riv

er

Sak

Azabudai Hills
Mori JP Tower

246

oshi

Tokyu Higashiyama
Building

TOKYU REIT
Toranomon Building
Kamiyacho Stn.

ura
da-d
ori

Azabudai Hills
Residence
Sakura-asadori

Shiroyama
Trust Tower
Garden Plaza

Tok
y

oM

Kamiyacho Trust Tower

tn.

hi S

s
oha

Tokyu

No.

n-t
en-e

ay
sw
res te
xp ou
nE rR
ta la
oli rcuri
op Ci
doetr alteM entr
ma
C
Ya

etro

Hib

Roppongi-Itchome Stn.

tan
poli
tro . 3Me te No
rou

Road

onal

Nati

ay
ssw

re
Exp

Address:
3-17-1, Toranomon, Minato-ku, Tokyo
Nearest Station:	Approximately a one-minute walk from Kamiyacho Station—
Tokyo Metro Hibiya Line
Total Land Space: 1,728.38 m2 (Co-ownership ratio: 86.116%)
Total Floor Space: 15,343.73 m2 (Area owned by TOKYU REIT: 10,882.65 m2)
Structure/Floors:
SRC/RC, B2/9F
Completed:
April 1988
Type of Ownership: Land—Proprietary ownership (Co-ownership ratio: 86.116%)
Building—Compartmentalized ownership and co-ownership ofcompartmentalized ownership

Address: 	
3-8-1, Higashiyama, Meguro-ku, Tokyo
Nearest Station:	Approximately a five-minute walk from Ikejiri-ohashi Station—
Tokyu Den-en-toshi Line
Total Land Space: 2,382.67 m2
Total Floor Space: 7,619.56 m2
Structure/Floors:	SRC, 7F
Completed: 	October 1989
Type of Ownership: Land—Proprietary ownership
Building—Proprietary ownership

Kojimachi Square

TOKYU REIT Shinjuku Building

Properties contributed by sponsors

Kojimachi
SquareShinjuku-dori

Address:
3, Nibancho, Chiyoda-ku, Tokyo
Nearest Station:	Approximately a one-minute walk from Kojimachi Station—
Tokyo Metro Yurakucho Line
Total Land Space: 1,269.24 m2
Total Floor Space: 6,803.47 m2
Structure/Floors:
S/RC, B1/7F
Completed:
January 2003
Type of Ownership: L and—Proprietary ownership
Building—Proprietary ownershipT
M okyo
aru M
no et
uc ro
hi
Lin
e

Yas
uku
nido
ri

IsetanDepartment
Store

Stn
.

Otsuka Kagu
Furniture Store
Toei
Shinjuku LineTOKYU REIT

Sh
inj
uk
uSa
nc
ho
me

Ichibancho
Tokyu Building

Shinjuku
Stn.

Koshu-Kaido
JR SHINJUKUMIRAINA TOWER

Keio
Line

JR LineIsraeli Embassy

ShinjukuStn.

Bic CameraTok
Han yo Metr
zom o
on L
ine

Joshigakuin Junior andSenior High School

Nippon Television Network
Corporation (Former Site)

Line
do
i Oe
Toe

i
Toe Lineo
Oed
Odakyu Line

Tokyo Metro
Marunouchi LineBelgian Embassy
Sophia
Univ.

ne
ku Li
ShinjuToei

Tokyu Bancho Building

Stn.
achi
Kojim

Futaba Gakuen
SchoolYotsu
ya Stn.

Toky
Nam o Metro
boku
Line

JR

es
Lin
bu
So
o,
u
Ch

o
Metr neTokyokucho Li
Yura

ri
do
oritobSoya
Ichiga n.
St

Hanzomon Stn.

.
Stn
ya
iga
Ich

Yasukuni-dori

An office building where
demand from IT and servicerelated companies is
expected against the
backdrop of the vibrantcommercial areas.

Fu Tokyku o
tos Meh
Me in L tro
inijido eri

An office building where
demand from tenants
pursuing an image of an
academic area, proximity tocentral Tokyo, and a quiet
environment is expected.

Takashimaya
Department Store

Shinjuku Building

Tenryu-ji Tokyo Metropolitan
Temple Shinjuku High School
TOKYU REIT Shinjuku 2 Building
Shinjuku Gyoen National Park

Address:
4-3-25, Shinjuku, Shinjuku-ku, Tokyo
Nearest Station:	Approximately a one-minute walk from Shinjuku-Sanchome
Station—Tokyo Metro Marunouchi Line, etc.
	Approximately a four-minute walk from Shinjuku Station—JR
Yamanote Line, etc.
Total Land Space: 1,113.87 m2
Total Floor Space: 8,720.09 m2
Structure/Floors:
SRC, 10F
Completed:May 2003
Type of Ownership: Land—Proprietary ownership
Building—Proprietary ownership

27

PORTFOLIO (properties owned at the end of January 2024 (FP 41))
TOKYU REIT Shibuya R Building

Located at a corner lot at theintersection of Chuo-dori andKuramaebashi-dori. An officebuilding with high transportation
convenience in being directly
connected to Suehirocho Station.

Address:
3-16-8, Sotokanda, Chiyoda-ku, Tokyo
Nearest Station: 	Approximately a one-minute walk from Suehirocho Station—
Tokyo Metro Ginza Line
Total Land Space: 795.33 m2
Total Floor Space: 5,704.69 m2
Structure/Floors:
SRC, B1/8F
Completed:
September 1985
Type of Ownership: L and—Proprietary ownership
Building—Compartmentalized ownership (Note)

An office building located in anarea expected to be further
developed and the establishmentof Toranomon-hills Station andlarge-scale developments in thesurrounding areas are scheduled.
Extension work completed inJune 2022.

Atago Shrine

TOKYU REIT
Azabudai
Toranomon
Hills
Building
Kamiyacho Stn.

Toranomon Hills
Mori Tower

Tokyo Jikei
University School of Medicine

Shimbashi Stn.

Tok
Hib yo M
iya etr
Lin oeToranomon-hills Stn.

Line

Shintora-doriToranomon Hills
Station Tower

Toranomon Stn.
Toky
o Met
ro G Uchisaiwaicho Stn.
inza
Tokyu
Line
Toranomon
Building
Toranomon Hills
Business Tower

Mita

JAPAN PATENT OFFICE

Line
ko
oyo
yu T
Tok

ori
i-d

ij
Me

Located on a corner lot at
the intersection of Meiji-dori
and Koshu Kaido.
An office building adjacent
to TOKYU REIT Shinjuku
Building.
ine
do L
i Oe
Toe

ShinjukuStn.

Shinjuku
Stn.

T
Yas
uku
M okyoar Mniun edoou trorichiL
Isetanine Department Store
Main
Building
Bic Camera
Shinjuku Marui
Main Building
Otsuka Kagu
Furniture Store

Toei
Shinjuku LineTOKYU REIT
Shinjuku 2 Building

Keio
Line
Toei
AsakusaLine
Shimbashi Stn.
Shiodome Stn.

Atago
Green Hills

28

TOKYU REIT Shinjuku 2 Building

JR L
ine

Kasumigaseki Stn.
Central Common Government Ofﬁces No. 4Hibiya Park
Ministry ofTokyo Metro
Finance Japan
Chiyoda LineCentral Common
Ministry of Economy,
Government Ofﬁces No. 7
Trade And Industry

Toei

Cabinet Ofﬁce

SHIBUYA STREAM

Fu Tokyku o
tos Meh t
Me in Li ronijido eri

Properties contributed by sponsors

Cabinet Secretariat

TOKYU REIT
Shibuya R
Building

Address:
3-10-13, Shibuya, Shibuya-ku, Tokyo
Tokyu Nampeidai-cho Building
Nearest Station: 	Approximately a two-minute walk from Shibuya Station—JR Lines, etc.
Total Land Space: 1,077.45 m2 (Area owned by TOKYU REIT: 819.41 m2)
Total Floor Space: 	 7,289.38 m2 (Including parking space 41.18 m2)(Area owned by TOKYU REIT: 4,403.69 m2)
Structure/Floors:
SRC (Parking: S), B1/9F
Completed:
March 1990
Type of Ownership: L and—Proprietary ownership
Building—Compartmentalized ownership and co-ownership ofcompartmentalized ownership(Note) All of compartmentalized ownership with whole building are entrusted.

Tokyu
Toranomon Building

ine
te L
ano
e
Yam yo Lin
R
J
Saik
JR

AkihabaraStn.

.
ya Stn
Shibu

Tokyo Metro
Hibiya Line

Tokyo Metro
Ginza Line

Matsuzakaya
JR Lines

Akihabara
Stn.

Sh
inj
uk
uSa
nc
ho
me
Stn
.

ori

JR Sobu Line

Shin-ochanomizu Stn.

SHIBUYA SCRAMBLE SQUARE(under construction)

SHIBUYA FUKURAS
246
No. 3
Route
d No.
esswaynal RoaNatioan ExprTokyu Metropolit
Cerulean Tower Shibuya
Sakura Stage
Sakuragaoka-cho Building Tokyu Hotel
Cerulean Tower

Address:
1-21-19, Toranomon, Minato-ku, Tokyo
Nearest Station:	Approximately a one-minute walk from Toranomon-hills
Station—Tokyo Metro Hibiya Line	Approximately a three-minute walk from Toranomon Station—
Tokyo Metro Ginza Line
Total Land Space: 2,016.83 m2
Total Floor Space: 14,033.73 m2
Structure/Floors:
S, 10F
Completed:
April 2010
June 2022 (Extended Portion)
Type of Ownership: Land—Proprietary ownership
Building—Proprietary ownership

Koshu-Kaido
JR SHINJUKUTokyo Metropolitan
MIRAINA TOWER
TOKYU REIT Shinjuku High School
Shinjuku Building
Takashimaya
Department
Store
Shinjuku Gyoen National Park

TOKYU REIT
Shinjuku 2 Building

Koshu-Kaido

Address: 	4-3-23, Shinjuku, Shinjuku-ku,
Tokyo
Nearest Station:	Approximately a one-minute
TOKYU REIT
walk from Shinjuku-Sanchome
Shinjuku Building
Station—Tokyo Metro
Marunouchi Line, etc.
Approximately a four-minute walk from Shinjuku Station—JR
Yamanote Line, etc.
Total Land Space: 270.05 m2
Total Floor Space: 2,006.13 m2
Structure/Floors:
S, 10F
Completed:
December 1991
Type of Ownership: L and—Proprietary ownership
Building—Proprietary ownership
Meij
i-do
ri

ri-d

Shibuya Stn.
Moyai Statue

Shibuya Mark City

uzaka
Hanzomon Line
Miyamasa Lineetro Ginz
Tokyo M
Shibuya Hikarie

Tokyo Metro

JR Lineobo

n-toshDen-eTokyu Shibuya
Excel Hotel Tokyu

Toei LineoOed
Odakyu LineanomStn. izu

Sot

QFRONT

Shibuya 109

Hachiko Statue
i LineKuramaebashidori

TSUKUBA EXPRESSOchAKIHABARACROSSFIELD

Line

Akihabara
Sanwa Toyo
Building
Chuo-dorihuoTokyo Metro
Chiyoda Line

Metro neTokyo nouchi Li
Maru

JR C

Tokyo Medical
And
Dental University
Dental Hospital

Suehirocho
Stn.

Kanda
MyoujinMIYASHITAPARKSHIBUYATOKYU
REI HOTEL

er

Hongo- Sanchome Stn.

TOKYU REIT
Shibuya Udagawa-cho Square
Magnet by
SHIBUYA109

Riv

YushimaTenjinuya

Ueno-okachimachi Stn.
Yushima Stn.
Ueno-hirokojiNaka-okachimachi
Stn.
Stn.
Okachimachi
Stn.

Toei Oedo Line
Hongo- Sanchome Stn.

A large office building withhigh scarcity along Meijidori. Access from Shibuya
Station is expected tofurther improve with thedevelopment around thestation.

Shib

Akihabara Sanwa Toyo BuildingProperties contributed by sponsors

TOKYU REIT Ebisu Building

A large office building withhigh visibility and officespecifications located in the
Ichigaya and Yotsuya area.

To
Lin kyu T
e oyo

Toky
Han o Metro
zom
on L
ine

.
Stn
isu
Eb

Hanzomon Stn.

tro e
o Me
Toky kucho Lin
Yura

Ebisu Park

Kojimachi
SquareKomazaw

a-doriCONZE Ebisu

Shinjuku-dori

Properties contributed by sponsors

Address:
3-25-11, Higashi, Shibuya-ku, Tokyo
Nearest Station:	Approximately a three-minute walk from Ebisu Station-JR
Yamanote Line and Tokyo Metro Hibiya Line
Total Land Space: 478.40 m2
Total Floor Space: 2,603.30 m2
Structure/Floors:
S/SRC, B1F/7F
Completion:
April 1992
Type of Ownership: Land-Proprietary ownership
Building-Proprietary ownership

OKI Shibaura Office
An office building located in
the Shibaura area, an area
expected to develop further
with a large-scale mixed-use
development in front of
Tamachi Station and theopening of a new station.
Occupied by Oki ElectricIndustry Co., Ltd.

Highly visible office building
sitting at the intersection of
Tamagawa-dori Street (National
Route No. 246) and Dogenzaka
Street.
Surrounding the area, theredevelopment around Shibuya
Station is in progress.
SHIBUYATOKYU
REI Hotel

ak
a
nz
ge
Do

-toshiDen-enLine

Shibuya Mark City

Hachiko Statue
Shibuya Stn.

Miy

Moyai Statue

Shibuya Hikarie
SHIBUYA SCRAMBLE
SQUARE(under construction)

JR

ine
te
no
oL
iky
ma
Ya
JR

Sa

i
e
or
Lin
i-d
eij oko
y
To

u
ky

3
No.
246
oute
No.
ay R
oad
ssw
nal R
Expre
Shibuya Dogenzaka
Natio
litan
Cerulean Tower
opotre
Sky Building
M
Tokyu Hotel
Cerulean Tower Shibuya
SHIBUYA SOLASTA
Sakura Stage
Tokyu Sakuragaoka-cho Building
SHIBUYA FUKURAS

M

To

Shinsen Stn.

aka

uz
amas

a Stn.

Tokyu

tn.

iS

ach

Tam

uy
Shib

SHIBUYA109

Tokyo Metro
Fukutoshin LineSHIBUYASTREAMe

Lin

Address:
28-1, Maruyamacho, Shibuya-ku, Tokyo
Nearest Station:	Approximately a five-minute walk from Shibuya Station-Keio
Inokashira Line	Approximately a three-minute walk from Shinsen Station-Keio
Inokashira Line
Total Land Space: 721.34 m2
Total Floor Space: 5,644.91 m2
Structure/Floors:
SRC, B1/11F
Completed:
March 1988
Type of Ownership: Land-Proprietary ownership
Building-Proprietary ownership

Daiic
Toe
hi K
JR K
iA
eihin
eihin
sak
Toho
usa
ku LinLine •Yame
JR Toka
anote
ido M
Line
ain Line

Shibuya Upper West
Inokashira-dBunkamura Project (under planning)
ori
Bun
kam
ura
QFRONT
-do
ri

Line
ote

Shibuya Dogenzaka
Sky Building

PEACOCK STORECALPIS

Address:
6, Yonbancho, Chiyoda-ku, Tokyo
Nearest Station: 	Approximately a three-minute walk from Ichigaya Station—JR
Chuo Main Line, etc.
Total Land Space:	2,754.18 m2 (Land included in the property trust totals: 2,573.80 m2)
Total Floor Space: 	 15,834.55 m2
(Exclusive ownership area of compartments under compartmentalized
ownership pertaining to property trust: 11,431.09 m2)
Structure /Floors: 	 S, 11F
Completed:
September 2011
Type of Ownership: Land—Proprietary ownership(Quasi-co-ownership interest of trust beneficiary interest: 52.6%)
Building—Compartmentalized ownership
(Quasi-co-ownership interest of the 95.1%
compartmentalized ownership interest of the trust
beneficiary interest: 52.6%)

Meiji-doriTokyo Metro
Hibiya Line

n
ama
JR Y

Sophia
Univ.

a

am

ny
ika
Da tn.
S

.

Stn.
achi
Kojim

Nippon Television
Network Corporation(Former Site)

TOKYU REIT Ebisu Building

u Stn
Ebis

Futaba Gakuen
SchoolEbisu Prime Square Towerko

Nihon University

Tokyu Bancho Embassy of the Grand Duchyof Luxembourg
BuildingToky
Nam o Metro
boku
Yotsu
Line
ya StnTokyo Metr.
Marunouc ohi Line
JR
Ch
uo
, So
bu
Lin
es

ri
-do
ori
tob
So

.
Stn
ya
iga
Ich

An office building locatednear Ebisu Station. The
vicinity is concentrated withrestaurants.

msb Tamachi
Tamachi Station
Tower NAiiku Hospital

Tower STokyo Tech High School of
Science and Technology

Granpark

Capital Mark Tower

Tokyo-Monorail

Tokyu Bancho Building

Shibaura Island

OKI Shibaura Office

Address:
4-10-16, Shibaura, Minato-ku, Tokyo
Nearest Station:	Approximately an eight-minute walk from Tamachi Station—JR
Yamanote Line, etc.
Total Land Space: 4,646.65 m2
Total Floor Space: 18,102.32 m2
Structure/Floors:
SRC, B2/12F
Completed:
June 1982
Type of Ownership: Land—Proprietary ownership
Building—Proprietary ownership

29

PORTFOLIO (properties owned at the end of January 2024 (FP 41))
Aoyama Oval Building

Shibuya 109

ka

za
gen

Do

ya
hibu

S

SHIBUYATOKYU
REI HOTEL

Magnetby SHIBUYA
109

Haciko Statue

Shibuya Post Ofﬁce

Shibuya Excel Hotel Tokyu

ri
Me
ijido

cocotiSHIBUYA SCRAMBLE SQUARE(under construction)

United Nations
University

Aoyama Oval Building
Lexington Aoyama

Tomin no Shiro(Tentative name)

TOKYU REIT
Shibuya Miyashita Koen Building

Ko

tto

-do

ri

Aoyama Gakuin Univ.

Address:
1-17-2, Shibuya, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a one-minute walk from Shibuya Station—JR
Yamanote Line, Tokyu Toyoko Line and Tokyo Metro FukutoshinLine, etc.
Total Land Space: 364.74 m2
Total Floor Space: 2,568.30 m2
Structure/Floors:
S, 12F
Completed:
April 2008
Type of Ownership:	Land—Proprietary ownership
Building—Proprietary ownership

Address: 	5-52-2, Jingumae, Shibuya-ku, Tokyo
Nearest Station: 	Approximately a four-minute walk from Omote-sando Station—
Tokyo Metro Ginza Line, etc.
Total Land Space: 	4,702.82 m2 [Land included in the property trust totals:
4,602.60 m2]
Total Floor Space: 	28,629.19 m2 [Exclusive ownership area of compartments undercompartmentalized ownership pertaining to property trust:
20,801.49 m2]
Structure/Floors: 	S/SRC, B2/16F
Completed: 	October 1988
Type of Ownership: 	Land—Proprietary ownership	[Quasi-co-ownership interest of trust beneficiary interest: 47.5%]
	Building—Compartmentalized ownership and co-ownership ofthe compartmentalized ownership	[Quasi-co-ownership interest of the 97.1% compartmentalized
ownership interest of the trust beneficiary interest: 47.5%]

Meguro Higashiyama Building

Maison Peony Toritsudaigaku

Tokyo Collegeof Musicive

MeguroHigashiyama
Buildingr

REVE Nakameguro(Land with leaseholdinterest)
Tokyu Store
o
ur
eg
-m
ka
Na

n.
St

Nakameguro
Atlas Tower
Nakameguro GT

Address:	1-4-4, Higashiyama, Meguro-ku, Tokyo
Nearest Station:	Approximately a six-minute walk from Naka-meguro Station—
Tokyu Toyoko Line and Tokyo Metro Hibiya Line
Total Land Space:	1,572.38 m2
Total Floor Space:	8,540.29 m2
Structure/Floors:	SRC/S/RC, 8F
Completed:	March 1995
Type of Ownership:	Land—Proprietary ownership
Building—Compartmentalized ownership (Note)(Note) All compartmentalized ownership of the building has been acquired.

Lin
e
ori
o-d
gur
Me

MUFG Bank, Ltd.
aikaw mNominstrea adoa
M een R
Gr

Sumitomo Mitsui Bank

Maison Peony
Toritsudaigaku

Tokyu Store

Tor
itsu
-da
iga
ku

No

ri

do

a-

w
za

Meguro Kakinokizaka
Post Office

ur
oR

Tok
yu
Toy
ok
o

Don QuijoteMeg

To
To kyuky To
o M yoetr ko L
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ine
Komazawa-doriY

M am
Ce etrop ate
ntr oli -d
al tan ori
Cir
cu Explar resRo sw
ute ayThe property is a residencebuilding locatedapproximately a one-minute
walk from Toritsu-daigaku
Station on the Tokyu
Toyoko line.

Stn.

An office building located in
the Nakameguro area,
which is a flourishing areawith many offices of IT,
apparel and entertainment
companies as well as
restaurants and such. Highvisibility property facing
Yamate-dori Avenue.

30

Omote-sando Stn.

SHIBUYA CAST.

Shibuya Hikarie

Shibuya Stn.

TOKYU REIT
Omotesando
SquareMizuho BKMIYASHITA
PARK

aasuzakMiyam

TOKYU PLAZA OMOTESANDO HARAJUKUTokOmotesando Hills
Ch yo Miyoeda tro
Lin
e
Om
ote
san
do

Ao
ya
ma
-d
or
i

QFRONTStn.

TOKYU REIT
Shibuya Miyashita Koen Building

ShibuyaStn.

TokFu yo Mku
tos etrohin
Line

MIYASHITA
PARK

Shib

uya
Cen
terBungaidori kamura-

cocotiLine

TOKYU REIT Shibuya
Udagawa-cho Square

Meiji-jingumaeStn.
JR Yamanote, Saikyo Linesi

SHIBUYA CAST.

Meiji-dorior

JR Saikyo LineInodori kashira--d

JR Yamanote Lineen

Tokyo Metro Fukutoshin

Ko

An office building locatedin the Omotesando andAoyama area, which has
high demand in boththe office and the retailmarkets. High visibility
property facing Aoyamadori Avenue.

To
Ha kyonz M
om etron oLine

An office building locatedin the Shibuya area, which
has ongoing large-scale
redevelopment and is
an area with high brandstrength for both the officeand the retail markets.

To
Gin kyoza Me
Lin troe

TOKYU REIT Shibuya Miyashita Koen Building

Mizuho BK

Address:
1-2-5, Nakane, Meguro-ku, Tokyo
Nearest Station:	Approximately a one-minute walk from Toritsu-daigaku
Station—Tokyu Toyoko Line
Total Land Space:	245.61 m2
Total Floor Space: 	 950.36 m2
Structure/Floors:RC, 10F
Completed:
August 2014
Type of Ownership:	Land—Proprietary ownership
Building—Proprietary ownership

STYLIO FIT Musashikosugi

Properties contributed by sponsors

Futako Tamagawa Rise

Properties contributed by sponsors

ines
sen
ku L
inju
kan
-Sh
hin
nan
o
h
,S
ka

Q Plaza Futako Tamagawa

ori
wa-d
aga

za

ori

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pac

Kaminoge
Natural Park

i

or

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rk

pa

i

ku

Kan

a
aw
ag

or

yo

og

in

m

Ka

i

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do

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ta

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aw

Ta
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ag

su
ut

az

Ta
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Ka
Stn mino
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ori

Ko

t
Fu

Futako-tamagawa
Stn.

Ta
m
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Pa
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Tama Art University

FutakoTamagawa
Rise

m
Ta

Address:r
Rive

Address:	2-chome, Kamimaruko-sannocho, Nakahara-ku, Kawasaki-shi,
Kanagawa
Nearest Station:	Approximately a five-minute walk from Mukaigawara Station—
JR Nambu Line
Approximately a nine-minute walk from Musashi-kosugi
Station—JR Yokosuka Line, Shonan-Shinjuku Line and Sotetsu
Line through service
Approximately a twelve-minute walk from Musashi-kosugi
Station—Tokyu Toyoko Line and Meguro Line
Total Land Space:	676.26 m2
Total Floor Space: 	 2,320.12 m2
Structure/Floors:RC, 7F
Completed:
April 2020
Type of Ownership:	Land—Proprietary ownership
Building—Proprietary ownership

Tamagawa
Takashimaya

Tam

Mukaigawara Stn.

d

oa
lR
na
tio 6
Na . 24
No

Tok
yu
Den
Oim -en-toshiach
i Lin LineeGrand TreeMusashi kosugi

A large complex consistingof retail, office, hotel andresidence directly connectedto Futako-tamagawa Station,a major station in the Tokyu
Areas. With the developmentof this property, further
development is expected in
the Futako Tamagawa area
as a city with a mixture ofwork, residence and leisure.

a
aw
Nog

NEC
Tamagawa Plant

yuMusashi-kosugi
Stn.

Tok

e
u Lin
amb
JR N

LaLa terrace
Musashikosugirkchi Pa
Ryoku
awa
Tamag

STYLIO FIT
Musashikosugi

Musashi-kosugi
Stn.

Musashi-kosugi
TOKYU SQUARE

River
Tama

Tok
a
JR Y
oko ido S
su

Nippon Medical
SchoolMusashikosugi
Hospital

Tokyu
Meg ToyokouroLine ,s

The property is a residencebuilding located in theMusashikosugi area wheredevelopment is rapidly
progressing in recent years
as result of redevelopment.

ch

ive

iP

r

ark

Futako-tamagawa
Park

2-21-1, Tamagawa, Setagaya-ku, Tokyo, etc.

Nearest Station:	Approximately a one-minute walk from Futako-tamagawa Station on
the Tokyu Den-en-toshi Line and Oimachi Line
Total Land Space:(Block I-b) Land area: 13,416.66 m2
Percentage of site rights of the acquired portion: 1,098,663/10,000,000(Block II-a) Land area: 28,082.83 m2
Percentage of site rights of the acquired portion: 126,480/1,000,000(Block II-b) Land area: 3,472.03 m2

REVE Nakameguro (Land with leasehold interest)
Land with leasehold interestof a complex locatedapproximately a four-minute
walk from Naka-meguro
Station on the Tokyu Toyoko
Line.

Percentage of site rights of the acquired portion: 21,160/1,000,000(Block III) Land area: 296.51 m2
Percentage of site rights of the acquired portion: 4,516/94,273
Total Floor Space:(Block I-b) Entire building: 99,137.30 m2
Exclusive area of compartments under compartmentalized ownership
pertaining to the acquisition: 77,290.76 m2
Of such area, the acquired ownership interest is 10.7% (retail: 3.2%,
office: 7.4%)(Block II-a) Entire building: 154,232.18 m2
Exclusive area of compartments under compartmentalized ownership
pertaining to the acquisition: 118,463.13 m2
Of such area, the acquired ownership interest is 12.7% (retail: 5.4%,

Ya
M mat
Ce etrop e-do
ntr ol ri
al itaCir n E
cu xp
lar resRo sw
ute ayuroS(Block III) Entire building: 1,385.49 m2
Exclusive area of compartments under compartmentalized ownership

-m

r

eg

ive

ok
o L Naine kapertaining to the acquisition: 3,277.59 m2
Of such area, the acquired ownership interest is 4.5% (retail)

oR

uT
oy

Exclusive area of compartments under compartmentalized ownership

gur

To
ky

(Block II-b) Entire building: 7,502.36 m2

i

Me

tn
.

Tokyu Storehotel: 0.5%, office: 6.8%)

Tokyo Metro Hibiya Line

KomazawadorTokyo College of MusicREVE Nakameguro(Land with leasehold interest)

pertaining to the acquisition: 566.94 m2

Nakameguro Atlas Tower
Nakameguro GT

Address:
1-13-14, Kamimeguro, Meguro-ku, Tokyo
Nearest Station:	Approximately a four-minute walk from Naka-meguro Station—
Tokyu Toyoko Line and Tokyo Metro Hibiya Line
Total Land Space: 497.02 m2
Type of Ownership: Land—Proprietary ownershipOf such area, the acquired ownership interest is 7.5% (retail)
Structure /Floors:(Block I-b) S/RC/SRC, B3/16F(Block II-a) RC, B3/30F(Block II-b) RC, B1/3F(Block III) RC/S, 2F

Completed:(Block I-b) November 2010
(Block II-a) June 2015
(Block II-b) April 2010
(Block III) April 2010

Type of Ownership: Land—Co-ownership of site rights (proprietary ownership)
Building—Co-ownership of compartmentalized ownership31

I. Asset Management Report
1. Financial Highlights(1) Result of Operation and Financial Position

41st fiscal period 40th fiscal period 39th fiscal period 38th fiscal period 37th fiscal period
From August 1, From February 1, From August 1, From February 1, From August 1,
2023 to January 2023 to July 31, 2022 to January 2022 to July 31, 2021 to January
31, 20242023
31, 2023
2022
31, 2022(184 days)(181 days)(184 days)(181 days)(184 days)

OperatingincomeBalance sheet
Portfolio
Distribution
Management index¥ 8,671¥ 11,641¥ 4,843¥ 4,682¥ 7,331¥ 4,732¥ 7,481¥ 4,260¥ 6,885¥ 4,339¥ 7,071(a) (Note 1)¥ 7,667¥ 7,638¥ 6,736¥ 6,637¥ 6,934

Rental service expenses(b)¥ 3,247¥ 3,369¥ 3,008¥ 3,065¥ 3,131[Depreciation and amortization](included in (b))(c) (Note 2)[¥ 952][¥ 957][¥ 863][¥ 824][¥ 968]

NOI (Net Operating Income)(a)－(b)＋(c)¥ 5,372¥ 5,226¥ 4,591¥ 4,395¥ 4,771

FFO (Funds from Operation)(d) (Note 3)¥ 4,067¥ 3,935¥ 3,163¥ 3,129¥ 3,332

(e)

¥ 447

¥ 422

¥ 375

¥ 2,379¥ 417(d)－(e)¥ 3,619¥ 3,512¥ 2,788¥ 750¥ 2,915(f)¥ 241,413¥ 241,453¥ 239,993¥ 224,636¥ 226,847[−0.0%][0.6%][6.8%][−1.0%][−3.5%](g) (Note 4)¥ 104,500¥ 104,500¥ 104,500¥ 93,000¥ 94,400(h)¥ 123,562¥ 122,817¥ 122,507¥ 119,537¥ 119,059

Capital expenditures
AFFO(Adjusted Funds from Operation)[Change from the preceding period]
Interest-bearing liabilities
Total unitholders’ equity (Net assets)[Change from the preceding period]
Unitholders’ capital

Per unit
data
Other

¥ 11,321¥ 4,410[0.6%][0.3%][2.5%][0.4%][3.1%]¥ 110,479¥ 110,479¥ 110,479¥ 110,479¥ 110,479

Acquisition costs of properties(Note 5)

¥ 244,971¥ 246,306¥ 247,641¥ 232,451¥ 232,509

Book value of properties(Note 5)

¥ 230,248¥ 231,833¥ 233,453¥ 217,720¥ 217,976

Appraisal value of properties
at end of period(i) (Note 5)

Number of properties at end of period¥ 318,786¥ 319,636¥ 321,480¥ 307,150¥ 304,110

31 properties

31 properties

31 properties

31 properties

32 properties

Total leasable area

(Note 6)

165,741.12 m2

168,104.20 m2

170,499.25 m2

155,157.45 m2

149,024.77 m2

Occupancy rate at end of period(Note 6)100.0%

98.5%

96.6%

91.2%

97.8%

Cash distribution¥ 3,666¥ 3,666¥ 3,949¥ 3,915¥ 3,861

Dividend payout ratio

83.1%

86.1%

57.4%

90.2%

54.6%

977,600 units

977,600 units

977,600 units

977,600 units

977,600 units¥ 126,393¥ 125,631¥ 125,314¥ 122,276¥ 121,787¥ 3,750¥ 3,750¥ 4,040¥ 4,005¥ 3,950

Total number of units
issued and outstanding
Total unitholders’ equity per unit
(base value)
Cash distribution per unit

32

¥ 8,924

Net income

Total assets

Financial position¥ 8,962

Operating income
Revenue from property leasing

Cash flow

Result of operation

Statementof incomeMillions of yen, except per unit data or where otherwise indicatedOperating revenues

Return on total unitholders' equity(annualized)(Note 7)

7.1%

7.0%

11.3%

7.3%

12.0%

Equity ratio(h)÷(f)

51.2%

50.9%

51.0%

53.2%

52.5%

[0.3%][−0.2%][−2.2%][0.7%][3.3%](g)÷(f)

43.3%

43.3%

43.5%

41.4%

41.6%

(g)÷(i)

32.8%

32.7%

32.5%

30.3%

31.0%

(Note 8)¥ 179,195¥ 187,116¥ 202,419¥ 188,278¥ 190,881[Change from the preceding period]
Proportion of interest-bearing
liabilities to total assets
at end of period
Proportion of interest-bearing
liabilities to appraisal value
at end of period
Average market price per unit
during period

Note 1.
Note 2.
Note 3.

Note 4.
Note 5.
Note 6.
Note 7.
Note 8.

‘Revenue from property leasing’ does not include revenues from facility acceptance (37th fiscal
period: ¥5 million; 38th fiscal period: ¥10 million) or contributions for construction (40th fiscal period:¥3 million).
‘Depreciation and amortization’ includes loss on disposal of property and equipment (37th fiscal
period: ¥13 million; 38th fiscal period: ¥3 million; 39th fiscal period: ¥2 million; 40th fiscal period:¥1 million; 41st fiscal period: ¥2 million).
Net income + Depreciation and amortization + Other property related depreciation and amortization+ Loss on sales of real estate properties − Gain on sales of real estate properties − Gain on exchangeof real estate properties − Revenues from facility acceptance.
Other property related depreciation and amortization was not incurred.
Short-term debt + Long-term debt due within one year + Long-term debt + Investment corporation
bonds due within one year + Investment corporation bonds.
For ‘Trust beneficiary interest in real estate,’ the portion equivalent to the properties held in substance,
which is total assets less the money that is part of the assets of the concerned trust beneficiary interestin real estate, is shown.
Regarding ‘Total leasable area’ and ‘Occupancy rate at end of period,’ please refer to notes 2, 4 and 5of ‘3. Portfolio Profile (2) Major Portfolio.’
Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 365 ÷ Numberof days of investment management.
Average price during period (closing price) on the Real Estate Investment Trust Section of the Tokyo
Stock Exchange, Inc. (“Tokyo Stock Exchange”) on which the investment certificates of TOKYU REIT,
Inc. (“TOKYU REIT”) are listed.

(2) Development of Asset Investment Management during the Current Period① Investment Environment
During the fiscal period under review (41st fiscal period: six-month period ended January 31,2024), the Japanese economy was recovering moderately, albeit with standstill seen in some
aspects.
Specifically, in the Tokyo metropolitan area’s economy, while showing some impact of rising
prices, department stores, supermarkets and convenience stores had greater sales turnover thanthe previous year, and accommodation and restaurant services were picking up. These, among
other factors, showed that consumer spending was on the way to moderate recovery. In theemployment situation, the unemployment rate exceeded that of the previous year and the active
job openings-to-applicants ratio recently fell, but with the high state of eagerness to hire among
companies on the back of labor shortage, the employment situation was on an improving trend.
Population movements saw a net immigration of over 110,000 people into the Tokyo
metropolitan area from other regions of the country during the period from January 2023 to
December 2023 (Source: “Report on Internal Migration in Japan Derived from the Basic Resident
Registration” (Statistics Bureau, Ministry of Internal Affairs and Communications)). This has
further exacerbated the disparity between the Tokyo metropolitan area and other regions of thecountry.
Under these circumstances, in Tokyo’s 23 wards’ office market, there were newly constructedbuildings having reached construction completion while yet to be leased up on the one hand,but progress in filling vacancies at existing buildings with the demand for relocations, tenants
increasing floor space and such on the other hand, which kept the vacancy rate unchanged.
Despite progress in contracts at competitive buildings, there continued to be rent adjustments
at buildings with vacancies, keeping office rent on a gradual downward trend overall.
In the retail property leasing market, retail sales turnover made a strong showing overall dueto the impact of greater opportunities for people to go out and the increase in domestic andforeign travelers. In terms of location, the increase in sales at shopping centers around terminal
stations in large cities that were visited by inbound tourists stood out. Department store sales
turnover continued to be on an increasing trend, but the increase was at a slower pace than thatat the peak.

33

In the real estate trading market, with the amount of investment increasing among domestic
investors, including J-REITs, but the amount of investment decreasing among overseas
investors, the total amount of investment in 2023 decreased by 3% compared with that in 2022.
With interest rate spreads being high compared with those of other major countries, eventhough interest rates are rising following the Bank of Japan’s monetary policy tweaks, demandfor prime properties in Japan was strong among domestic investors, keeping the expected cap
rate hovering at a low level.

② Investment Performance Resultsa. Acquisition and Sale of Properties and Investment Management Control
TOKYU REIT engaged in investment activities by adopting a basic policy based on the stanceof “investment in highly competitive properties in areas with strong growth potential” as it has
to date, and additionally pursuant to its “Long-Term Investment Management Strategy (Surf
Plan)” (see Note below) that was formed by applying the investment management experiencethat it has gained since its listing.
During the 41st fiscal period, TOKYU REIT sold 30% quasi-co-ownership interest of the trust
beneficiary interest in Tokyo Nissan Taito Building on January 31, 2024.
As of January 31, 2024, TOKYU REIT held an investment portfolio totaling 31 properties witha total acquisition price of ¥244,971 million and total leasable area of 165,741.12 m2. The periodend appraisal value for TOKYU REIT’s entire portfolio amounted to ¥318,786 million.
As in the previous fiscal period, the total period-end appraisal value exceeded the total bookvalue, resulting in an amount of difference of ¥88,537 million. Based on accounting principles
generally accepted in Japan, such unrealized gains are not reflected in TOKYU REIT’s financial
statements.
The average per-tsubo rental rate for the existing property portfolio at the end of the 41st
fiscal period increased by 0.6% compared with the end of the 40th fiscal period. In addition, thevacancy rate at the end of the 41st fiscal period decreased from the 1.5% at the end of the 40th
fiscal period by 1.5 percentage points to 0.0%.
Note.

34

The “Long-Term Investment Management Strategy (Surf Plan)” is a strategy of TOKYU REIT formed by
its investment management company Tokyu Real Estate Investment Management Inc. (“Tokyu REIM”).
Under this strategy, while replacing properties through value investment and contrarian investment
by focusing on the cyclicality of real estate prices, TOKYU REIT aims to build a portfolio that boasts
lasting competitiveness and balance sheets that are strong against even difficult economic times.

b. Countering Conflicts of Interest
The fairness and transparency of transactions were ensured by strictly adhering to the Rules
on Related-Party Transactions that are Tokyu REIM’s self-imposed rules, and accordingly
following prescribed procedures.
Moreover, TOKYU REIT has received an opinion report from Urban Research InstituteCorporation stating that fees paid to related parties (see Note below) for property management
services pertaining to its portfolio properties were within the range set by other J-REITs listedon the Tokyo Stock Exchange.
Note.

“Related parties” refers to any entity that falls under any of (i) to (iv) below:(i) Tokyu Corporation(ii) A subsidiary of Tokyu Corporation(iii) A tokutei mokuteki kaisha (TMK) or special purpose entity (SPE) that was established based on
the intention of Tokyu Corporation or a subsidiary of Tokyu Corporation and where the share ofinvestment by silent partnership or other investment shares in that entity by the respective
company exceeds 50%(iv) An affiliate of Tokyu Corporation.

③ Financing
TOKYU REIT undertakes financing activities under a financial policy that emphasizes
stability, flexibility and efficiency.
During the 41st fiscal period, to secure interest-bearing liabilities with fixed long-term interest
rates and diversified repayment dates, long-term debt of ¥5,500 million due for repayment in
the 41st fiscal period was refinanced.
TOKYU REIT has established commitment lines with four financial institutions, which
provide credit facilities up to a total of ¥18,000 million, in order to secure financial credibility
through the enhancement of liquidity on hand. The balance of interest-bearing liabilities as ofthe end of the 41st fiscal period was ¥104,500 million, consisting of ¥11,000 million in investment
corporation bonds and ¥93,500 million in long-term debt (of which, ¥7,500 million is the current
portion of long-term debt). The weighted-average interest rate for the 41st fiscal period was
0.77% (calculated based on the annualized amount of interest payable for the 41st fiscal period
divided by the total average balance of each interest-bearing liability).
TOKYU REIT’s credit ratings as of the end of the 41st fiscal period were as follows:
Rating Agency

Credit Rating

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating: AA−

Outlook: Stable

Rating and Investment Information, Inc. (R&I)

Issuer rating: A+

Outlook: Stable35

(3) Issuance of New Investment Units
There were no new investment units issued during the fiscal period under review, and there
was no increase or decrease in the total number of units issued and outstanding or unitholders’capital. Issuance of new investment units until the end of the previous fiscal period is as follows:

Date

RemarkTotal number of units
issued and outstanding

Unitholders’ capital

Units

Millions of yen

ChangeTotal

Change

Note

Total

June 20,
2003

Incorporation throughprivate offering

400

400

¥ 200

¥ 200

(Note 1)

September 10,
2003

Issuance of units throughpublic offering

97,60098,000¥ 49,917¥ 50,117(Note 2)

August 3,
2004

Issuance of units throughpublic offering

42,000140,000¥ 26,481¥ 76,599(Note 3)

August 25,
2004

Issuance of units throughthird-party allotment

2,000

142,000¥ 1,261¥ 77,860(Note 4)

August 1,
2005

Issuance of units throughpublic offering

26,700168,700¥ 19,658¥ 97,519(Note 5)

August 26,
2005

Issuance of units throughthird-party allotment

680

169,380¥ 500¥ 98,019(Note 6)

August 12,
2013

Issuance of units throughpublic offering

23,764

193,144¥ 11,327¥ 109,346(Note 7)

September 10,
2013

Issuance of units throughthird-party allotment

2,376

195,520¥ 1,132¥ 110,479(Note 8)February 1,
977,600―¥ 110,479(Note 9)Split of units
782,080
2014
Note 1.
TOKYU REIT was incorporated at an offer price of ¥500,000 per unit.
Note 2.
Issued new investment units through public offering at an offer price of ¥530,000 (issue price:¥511,450) per unit for the purpose of acquiring new properties.
Note 3.
Issued new investment units through a public offering at an offer price of ¥652,484 (issue price:¥630,512) per unit for the purpose of acquiring new properties and repayments of short-term loans.
Note 4.
Issued new investment units through a third-party allotment at an issue price of ¥630,512 per unit
for the purpose of acquiring new properties and repayments of short-term loans.
Note 5.
Issued new investment units through a public offering at an offer price of ¥761,950 (issue price:¥736,292) per unit for the purpose of acquiring new properties and the repayment of short-term loans.
Note 6.
Issued new investment units through third-party allotment at an issue price of ¥736,292 per unit forthe purpose of acquiring new properties and repayments of short-term loans.
Note 7.
Issued new investment units through a public offering at an offer price of ¥493,350 (issue price:¥476,652) per unit for the purpose of acquiring new properties.
Note 8.
Issued new investment units through a third-party allotment at an issue price of ¥476,652 per unit
for the purpose of acquiring new properties.
Note 9.
TOKYU REIT conducted a five-for-one split of investment units with January 31, 2014 as the reference
date and February 1, 2014 as the effective date.

36

【Movements of Market Price】
The highest and lowest (closing price) market prices on the Tokyo Stock Exchange, on which
the investment certificates of TOKYU REIT are listed, are as follows:
41st fiscal period
From August 1, 2023
to January 31, 2024

40th fiscal period
From February 1, 2023
to July 31, 2023

Highest¥ 189,400¥ 197,600

Lowest¥ 166,400¥ 175,300

39th fiscal period
From August 1, 2022
to January 31, 2023

38th fiscal period
From February 1, 2022
to July 31, 2022

37th fiscal period
From August 1, 2021
to January 31, 2022

¥ 216,800¥ 199,000¥ 201,500¥ 193,000¥ 177,000¥ 177,800

Yen(4) Distribution Information
In the 41st fiscal period, ¥804 million of the ¥1,295 million in capital gains from the dispositionof Tokyo Nissan Taito Building (30% quasi-co-ownership interest) on January 31, 2024 wasretained in the reserve for reduction entry under special provisions for property replacement as
set forth in the Regulation on Accountings of Investment Corporations pursuant to the special
provisions for taxation in the case of replacement by purchase of specified assets (Article 65-7of the Special Taxation Measures Law). In addition, a ¥60 million portion of the reserve for
reduction entry under special provisions for property replacement posted in prior fiscal years
was reversed. Consequently, with respect to the distribution, TOKYU REIT decided to
distribute unappropriated retained earnings, less the concerned provision of reserve for
reduction entry after adding the concerned reversal of reserve for reduction entry to net income,in the entire amount (except for the rounding amount, which is the distribution per unit of lessthan ¥1) for application of Article 67-15 of the Special Taxation Measures Law that allows
TOKYU REIT to deduct the maximum amount of profit distribution from its taxable income.
Accordingly, the distribution per unit for the 41st fiscal period was ¥3,750.
41st fiscal period 40th fiscal period 39th fiscal period 38th fiscal period 37th fiscal period
From
From
From
From
From
August 1, 2023
February 1, 2023
August 1, 2022
February 1, 2022
August 1, 2021
to January 31, 2024 to July 31, 2023 to January 31, 2023 to July 31, 2022 to January 31, 2022
Millions of yen, except per unit data
Unappropriated retained earnings
Undistributed earnings
Cash distribution[Cash distribution per unit]
Cash distribution of
accumulated earnings[Cash distribution of
accumulated earnings
per unit]
Cash distribution in excess ofaccumulated earnings[Cash distribution in excess ofaccumulated earnings
per unit]
Cash distribution fromallowance for temporary
difference adjustment[Cash distribution fromallowance for temporary
difference adjustment
per unit]
Cash distribution from
distribution accompanying
decrease in capital, etc.
under tax law[Cash distribution from
distribution accompanying
decrease in capital, etc.
under tax law
per unit]¥ 4,470¥ 4,318¥ 6,885¥ 4,339¥ 7,071

¥ 804

¥ 652

¥ 2,936¥ 424¥ 3,209¥ 3,666¥ 3,666¥ 3,949¥ 3,915¥ 3,861[¥ 3,750][¥ 3,750][¥ 4,040][¥ 4,005][¥ 3,950]¥ 3,666¥ 3,666¥ 3,949¥ 3,915¥ 3,861[¥ 3,750][¥ 3,750][¥ 4,040][¥ 4,005][¥ 3,950]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

37

(5) Future Policies of Investment Management① Forecast of Future Movement
The economic outlook is that the economy is expected to continue recovering at a moderatepace with the improving employment and income situation due in part to the effects of various
measures and policies. However, the impact associated with global monetary tightening,
concerns over the future of the Chinese economy and other overseas economic downturns pose
downside risks to the Japanese economy. In addition, the impact of rising prices, the situation
surrounding the Middle East and financial and capital market volatility are among factors that
require due attention.
In light of such an outlook, in the real estate leasing market, Tokyo’s office market had a large
volume of new supply in 2023. But, progress in relocations for building upgrade or better
location, mainly at existing buildings, suggests that it will not lead to as much substantial slackin the supply-demand balance as was feared.
In the real estate trading market, real estate investors maintain an active investment stance
while being wary of monetary easing policy tweaks. However, concerns over the impact of alarge volume of supply of offices in the future, the cautious investment stance of overseas
investors and other factors pose the possibility of the amount of investment decreasing year onyear.
② Future Policies of Investment Management and Issues to be Countered
Adopting a basic policy of “investment in highly competitive properties in areas with strong
growth potential,” TOKYU REIT engages in investment by placing Central Tokyo and Tokyu
Areas (see Note 1 below) as focused investment target areas and setting certain criteria forlocation, use, investment size, etc. In addition, in the selection of individual properties, TOKYUREIT conducts a comprehensive consideration of the expected earnings of the property, future
potential of the area it is located in, etc. In this manner, TOKYU REIT will keep obtaining abalanced mix of competitive, high-quality properties from the real estate investment market aswell as Tokyu Corporation and its subsidiaries (see Note 2 below).
Note 1.

Note 2.

38“Central Tokyo” is the five central Tokyo wards (Chiyoda, Chuo, Minato, Shinjuku and Shibuya
wards) and other major commercial and retail districts of Tokyo (the areas surrounding Ikebukuro,
Koraku, Ueno and other areas).
“Tokyu Areas” is the Tokyu rail network hub (Shibuya ward) and other Tokyu rail network areas(Tokyo (Shinagawa, Meguro, Setagaya and Ota wards, and Machida city); Yokohama city, Kanagawa
prefecture (Kohoku, Kanagawa, Naka, Nishi, Midori, Aoba and Tsuzuki wards); Kawasaki city,
Kanagawa prefecture (Nakahara, Takatsu and Miyamae wards); and Yamato city, Kanagawa
prefecture).
Shibuya ward is included in both Central Tokyo and Tokyu Areas.
“Other” is other districts in the Tokyo Metropolitan Area, including Kanagawa, Saitama and Chiba
prefectures (excluding the separately mentioned areas above).
The same applies hereafter.
“Tokyu Corporation and its subsidiaries” refers to any entity that falls under any of (i) to (iii) below:(i) Tokyu Corporation(ii) A subsidiary of Tokyu Corporation(iii) A tokutei mokuteki kaisha (TMK) or special purpose entity (SPE) that was established based on
the intention of Tokyu Corporation or a subsidiary of Tokyu Corporation and where the shareof investment by silent partnership or other investment shares in that entity by the respective
company exceeds 50%.

TOKYU REIT will endeavor to achieve internal growth by enhancing earnings stability andgrowth potential through collaboration with Tokyu Corporation and its subsidiaries in property
maintenance and management aspects. To that end, by maintaining a careful watch on
corporate earnings and consumption trends, TOKYU REIT will make every effort to manage
facilities in a way that makes each property the choice of corporate tenants and visitors over the
medium to long term. Specifically, with the objective of maintaining and raising rent levels,
TOKYU REIT will make strategic and appropriate renovations commensurate with the grade of
the properties being improved and implement leasing activities from a medium to long term
perspective. TOKYU REIT will also implement appropriate cost control measures with regard
to maintenance fees and additional capital expenditures.
The investment environment assessment at the end of the 41st fiscal period was that the priceof real estate in the Tokyo Metropolitan Area continues to hover at a high level despite theuncertain state of the real estate trading market, and thus in the “sales and replacement phase”
of the “Long-Term Investment Management Strategy (Surf Plan).” Within the Tokyo
Metropolitan Area, expectations are for the price of real estate in Shibuya and Tokyu Areas torise as development of the Greater Shibuya Area (within a 2.5 km radius of Shibuya Station)
and Tokyu Areas will continue following the development of the area surrounding Shibuya
Station by Tokyu Corporation, the sponsor. These lead to increase in unrealized gains of theportfolio properties of TOKYU REIT, which places Central Tokyo and Tokyu Areas as focusedinvestment target areas.
Based on the environment described above, TOKYU REIT will conduct property replacement
after taking into consideration the portfolio properties’ total return (see Note 3 below), property
age, location, etc., as well as consider the acquisition and retirement of treasury investment units
by using surplus funds that accrue from property replacement, in line with the “Long-Term
Investment Management Strategy (Surf Plan)” and “Capital Re-investment Model.”Note 3.

Portfolio properties’ total return is composed of income return (rental revenues, etc.) of each fiscal
period and future capital return (gains on sales).

Furthermore, to assure transparency, Tokyu REIM will improve external audit functions anddisclosure activities so as to fulfill its responsibilities as a REIT fund manager operating
according to global standards.
In March 2022, Tokyu REIM established a Sustainability Policy, and also installed a
Sustainability Promotion Committee as part of its efforts to develop a system to continuously
and systematically promote and discuss company-wide sustainability initiatives. In August
2022, Tokyu REIM expressed its support for the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD), and joined the TCFD Consortium, an organization formedby domestic companies supporting the TCFD recommendations. A qualitative scenario analysis
has been conducted based on “governance,” “strategy,” “risk management” and “metrics andtargets,” regarding the risks and opportunities related to climate change. The understanding
and disclosure of this analysis are included in the TCFD recommendations, and such has been
disclosed on TOKYU REIT’s website. TOKYU REIT will work together with Tokyu REIM topromote initiatives that advance contributions to realize a sustainable society, while aiming toenhance portfolio value and maximize unitholder value.

39(6) Subsequent Events
The following events occurred after the end of the 41st fiscal period of TOKYU REIT.
Disposition of Asset
The following asset was sold on February 29, 2024.
(i) Type of asset:
Trust beneficiary interest in domestic real estate(ii) Property name:Tokyo Nissan Taito Building(iii) Disposition price (Note 1): ¥3,180 million(iv) Contract date:July 14, 2023(v) Disposition date:February 29, 2024(vi) Purchaser:
Domestic godo kaisha (GK) (Note 2)(vii) Posting of gain on sale of real estate and reserve for reduction entry:
Gain on sale of real estate of ¥1,729 million is expected to be posted in the six months
ending July 31, 2024 (42nd fiscal period). Of this, ¥1,089 million is expected to beretained in the reserve for reduction entry under special provisions for property
replacement as set forth in the Regulation on Accountings of Investment
Corporations through the application of the system of special provisions for taxationin the case of replacement by purchase of specified assets (Article 65-7 of the Special
Taxation Measures Law).
Note 1.
Note 2.

40‘Disposition price’ is the amount for the 40% quasi-co-ownership interest, and is the amountexclusive of the expenses required for disposition of the asset (property-related taxes, etc.).
This is the third phase of the disposition of trust beneficiary interest in domestic real estate thattook place in the form of disposition of quasi-co-ownership interest in three phases. The nameof the company, the purchaser in said transaction, has not been disclosed as said company has
not provided consent.
There is no capital relationship, personnel relationship or business relationship other than saidtransaction between TOKYU REIT or Tokyu REIM and said company, and said company is nota related party of TOKYU REIT or Tokyu REIM.

2. Company Profiles(1) Summary of Unitholders’ Contributions
41st fiscal period 40th fiscal period 39th fiscal period 38th fiscal period 37th fiscal period
As of
As of
As of
As of
As of
January 31, 2024
July 31, 2023
January 31, 2023
July 31, 2022
January 31, 2022
Total number of units
authorized(units)Total number of units
issued and outstanding(units)Unitholders’ capital(millions of yen)

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

977,600

977,600

977,600

977,600

977,600¥ 110,479¥ 110,479¥ 110,479¥ 110,479¥ 110,479

10,364

9,823

9,793

10,116

10,190

Number of unitholders(persons)(2) Details Regarding TOKYU REIT’s Investment Units
The following table sets forth the major unitholders of TOKYU REIT as of January 31, 2024.

Name

Address

As a percentage
Numberof total numberof unitsof units issued
owned
and outstanding
Units%

Custody Bank of Japan, Ltd.
(trust account)

1-8-12, Harumi, Chuo-ku, Tokyo

302,01030.89

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

2-11-3, Hamamatsu-cho, Minato-ku, Tokyo

144,096

14.74

Tokyu Corporation

5-6, Nampeidai-cho, Shibuya-ku, Tokyo

49,0005.01

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

2-2-2, Otemachi, Chiyoda-ku, Tokyo

44,528

4.55

State Street Bank West Client – Treaty 505234 Shinagawa Intercity Tower A,(Standing Proxy: Mizuho Bank, Ltd.)
2-15-1, Konan, Minato-ku, Tokyo

18,707

1.91

JPMorgan Chase Bank 385781(Standing Proxy: Mizuho Bank, Ltd.)

Shinagawa Intercity Tower A,
2-15-1, Konan, Minato-ku, Tokyo

12,7891.31

JPMorgan Chase Bank 385771(Standing Proxy: Mizuho Bank, Ltd.)

Shinagawa Intercity Tower A,
2-15-1, Konan, Minato-ku, Tokyo

12,423

1.27

JPMorgan Chase Bank 380072(Standing Proxy: Mizuho Bank, Ltd.)

Shinagawa Intercity Tower A,
2-15-1, Konan, Minato-ku, Tokyo

9,151

0.94

SMBC Nikko Securities Inc.

3-3-1, Marunouchi, Chiyoda-ku, Tokyo

9,024

0.92

8,489

0.87

610,21762.42

State Street Bank and Trust Company 505103 Shinagawa Intercity Tower A,(Standing Proxy: Mizuho Bank, Ltd.)
2-15-1, Konan, Minato-ku, Tokyo
Total
Note.

‘(Number of units owned) As a percentage of total number of units issued and outstanding’ is rounded
to two decimal places. Therefore, the sum total of the items may not necessarily correspond to the‘Total’ figure.

41

(3) Details of TOKYU REIT’s Directors and Auditor① Name of Directors and Auditor (as of January 31, 2024)

Title

Name

Title at other companies

Total fee foreach title(Note 2)(Thousandsof yen)¥―(Note 3)

Executive
Director

Yoshitaka Kimura

Representative Director & President, and Chief Executive
Officer of Tokyu Real Estate Investment Management Inc.

Supervisory
Director

Maruhito Kondo

Head of Maruhito Kondo Law Office
Lawyer

¥ 3,000

Supervisory
Director

Takashi Aikawa

Representative Partner of Shinsoh Audit Corporation
Certified public accountant¥ 3,000

Independent
Auditor
Note 1.

Note 2.
Note 3.

PricewaterhouseCoopers¥ 10,000
Japan LLC
The executive director, supervisory directors and independent auditor do not possess investment
units of TOKYU REIT under their own name nor under another person’s name. Although there arecases in which supervisory directors could be directors of companies other than those stated above,none of the companies or those stated above have vested interest in TOKYU REIT.
The amount paid to the executive director and supervisory directors in the fiscal period under review
and the amount payable to the independent auditor for audits pertaining to the fiscal period underreview are shown.
The executive director serves without compensation from TOKYU REIT.

② Policies Regarding Decision of Dismissing and Not Reappointing Independent Auditors
TOKYU REIT shall observe the stipulations in the Law Concerning Investment Trust andInvestment Corporation (Law No. 198 of 1951, including amendments thereto) (“Investment
Trust Law”) in making decisions for the dismissal of an independent auditor. With regard to
the abrogation of an independent auditor’s reappointment, appropriate decisions shall be madeat TOKYU REIT’s Board of Directors meetings with due consideration given to audit quality,compensation and various other factors.
(4) Details Regarding Directors and Officers Liability Insurance Contract
Insured parties

Executive directors andsupervisory directors

Contract details<Insured events>
Insurance coverage is provided for the compensation for damages, litigation
expenses, etc. incurred by the insured parties should claims be made against theinsured parties for damages arising from acts in their capacity as directors of
TOKYU REIT.
<Share of burden of insurance expenses>
The insurance expenses are fully borne by TOKYU REIT.
<Measures to ensure the proper execution of duties is not impaired>No insurance coverage is provided for cases such as damages incurred by the
insured parties from criminal acts, acts conducted while aware that doing sowould be in violation of laws and regulations, etc.

42(5) Investment Management Company, Asset Custodian and General Administrators
The following table sets forth information about TOKYU REIT’s investment managementcompany, asset custodian and general administrators as of January 31, 2024.
Business to be entrusted

Name

Investment Management Company

Tokyu Real Estate Investment Management Inc.

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

General Administrator(accounting matters, running of the organization,transfer agent for investment units, etc.)

Mitsubishi UFJ Trust and Banking Corporation

General Administrator(administration of investment corporation bonds)

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

43

3. Portfolio Profile(1) Asset Composition

Asset type

Use

Area

Shibuya Ward
Tokyu Areas

Retail

2,207

0.9

2,211

0.9

Sub total
Shibuya Ward
Central Tokyo

13,427
11,2245.6
4.6

13,423
11,250

5.6
4.7(excluding
Shibuya Ward)

38,40415.9

38,49115.9(excluding
Shibuya Ward)

8,393

3.5

8,403

3.5

Sub total
Tokyu Areas

58,02224.0

58,14624.1(excluding
Shibuya Ward)

2,626

1.1

2,645

1.1

Sub total
Tokyu Areas

2,626

1.1

2,645

1.1

(excluding
Shibuya Ward)

20,276

8.4

20,371

8.4

Sub total
Tokyu Areas

20,276

8.4

20,3718.4(excluding
Shibuya Ward)

1,162

0.5

1,162

0.5

Sub total
Total
Shibuya Ward
Central Tokyo

1,162
95,514
39,681

0.5
39.6
16.4

1,162
95,74839,745

0.5
39.7
16.5

(excluding
Shibuya Ward)

4,673

1.9

4,665

1.9

(excluding
Shibuya Ward)

3,174

1.3

3,176

1.3

Sub total
Shibuya Ward
Central Tokyo

47,52939,313

19.7
16.3

47,58739,296

19.7
16.3(excluding
Shibuya Ward)

38,84816.1

40,09016.6(excluding
Shibuya Ward)

9,043

3.7

9,110

3.8

Sub total

87,205
134,734
11,165

36.1
55.8
4.6

88,497136,085
9,619

36.7
56.4
4.0

Tokyu Areas

Real estate
Residence

Complex

RetailTokyu Areas

Trust
beneficiaryinterest inreal estate
OfficeTokyu Areas

Total
Other assets

100.0¥ 241,453
100.0¥ 241,413[95.4][¥ 231,833][96.0][¥ 230,248]
Regarding ‘Area,’ please refer to note 1 of ‘1. Financial Highlights (5) Future Policies of Investment
Management ② Future Policies of Investment Management and Issues to be Countered.’‘Total amount held’ is the amount allocated in the balance sheet at the end of the period (as toproperties, figures are net book value after deducting depreciation).
Figures in brackets of ‘Total assets’ represent the portion of actually held properties in the target assets
above.
‘(Total amount held) As a percentage of total assets’ is rounded to one decimal place. Therefore, thesum total of the items may not necessarily correspond to the ‘Total’ figure.
Total assets

Note 1.
Note 2.
Note 3.
Note 4.

44

40th fiscal period
As of July 31, 2023
Total
As a
amountpercentage ofheldtotal assets
Millions of%yen¥ 11,211
4.6(excluding
Shibuya Ward)

OfficeLand withleaseholdinterest

41st fiscal period
As of January 31, 2024
Total
As a
amountpercentage ofheldtotal assets
Millions of%yen¥ 11,220
4.6

(2) Major Portfolio
Major portfolio held by TOKYU REIT as of January 31, 2024 is as follows:
As apercentage
Occupancy of revenue
from
rate
property
leasing

Book
value

Total
leasablearea

Leasedarea

Millions of
yen

m2

m2

%

¥

13,367

4,502.93

4,502.93

100.0

10.2

RetailLexington Aoyama

4,673

2,094.96

2,094.96

100.0

1.9

RetailTOKYU REIT Omotesando Square

5,613

2,669.10

2,669.10

100.0

2.2

RetailTOKYU REIT Shibuya Udagawa-cho Square

6,535

1,543.05

1,543.05

100.0

3.2

Retailcocoti

20,701

8,295.62

8,295.62

100.0

7.3

RetailCONZE Ebisu

4,684

2,327.00

2,327.00

100.0

1.4

RetailTOKYU REIT Shimokitazawa Square

2,207

1,246.98

1,246.98

100.0

0.7

RetailTOKYU REIT Jiyugaoka Square

3,174

1,231.80

1,231.80

100.0

1.0

RetailTokyu Nampeidai-cho Building

4,004

7,148.18

7,148.18

100.0

2.3

OfficeTokyu Sakuragaoka-cho Building

6,253

4,737.19

4,737.19

100.0

3.3

OfficeTokyo Nissan Taito Building

1,444

3,150.97

3,150.97

100.0

1.8

OfficeTOKYU REIT Kamata Building

3,689

7,337.82

7,337.82

100.0

3.1

OfficeTOKYU REIT Toranomon Building

9,732

10,238.07

10,238.07

100.0

4.9

OfficeTokyu Ikejiri-ohashi Building

5,353

5,710.32

5,710.32

100.0

2.6

OfficeKojimachi Square

8,210

5,409.07

5,409.07

100.0

2.6

OfficeTOKYU REIT Shinjuku Building

8,693

6,270.68

6,270.68

100.0

3.8

OfficeAkihabara Sanwa Toyo Building

4,532

4,433.37

4,433.37

100.0

2.3

OfficeTOKYU REIT Shibuya R Building

5,249

5,246.68

5,246.68

100.0

3.5

OfficeTokyu Toranomon Building

17,086

11,029.27

11,029.27

100.0

5.5

OfficeTOKYU REIT Shinjuku 2 Building

2,891

1,790.46

1,790.46

100.0

1.1

OfficeTokyu Bancho Building

12,566

6,137.50

6,137.50

100.0

4.5

OfficeTOKYU REIT Ebisu Building

4,630

1,872.80

1,872.80

100.0

1.2

OfficeShibuya Dogenzaka Sky Building

5,728

4,136.05

4,136.05

100.0

2.6

OfficeOKI Shibaura Office

12,094

18,102.32

18,102.32

100.0

5.2

OfficeTOKYU REIT Shibuya Miyashita Koen Building

5,974

2,299.69

2,299.69

100.0

1.5

OfficeAoyama Oval Building

18,696

8,527.90

8,496.05

99.6

5.9

OfficeMeguro Higashiyama Building

8,393

6,152.43

6,152.43

100.0

2.8

OfficeMaison Peony Toritsudaigaku

1,179

852.16852.16100.0

0.4

Residence

STYLIO FIT Musashikosugi

1,446

1,830.00

1,830.00

100.0

0.5

Residence

Futako Tamagawa Rise

20,276

18,919.73

18,919.73

100.0

10.4

ComplexREVE Nakameguro(land with leasehold interest)

1,162

497.02497.02100.0

0.3

Land withleaseholdinterest¥ 230,248

165,741.12

165,709.27

100.0

100.0

Name of property

QFRONT

Total

Main use%

45

Note 1. The properties listed in the table except for TOKYU REIT Shibuya Udagawa-cho Square, CONZE Ebisu, TOKYUREIT Shimokitazawa Square, TOKYU REIT Toranomon Building, TOKYU REIT Shinjuku Building, TOKYU REIT
Shibuya R Building, Tokyu Toranomon Building, TOKYU REIT Shinjuku 2 Building, TOKYU REIT Shibuya
Miyashita Koen Building, Meguro Higashiyama Building, Maison Peony Toritsudaigaku, STYLIO FIT
Musashikosugi, Futako Tamagawa Rise and REVE Nakameguro (land with leasehold interest) (total of 17
properties) are all owned in the form of trust beneficiary interest in real estate.
Note 2. ‘Total leasable area’ is the total area of the building’s, facility’s and land’s leasable office, retail, warehouse,
residential and land space as indicated in the agreements and drawings (common-use portion is included whenleased). For Tokyu Nampeidai-cho Building, the area of parking lots is included. For QFRONT, the area of othercompartmentalized owners’ exclusive ownership portions is included since the fiduciary rents that area andleases it out as a block together with the entrusted property. For TOKYU REIT Toranomon Building, the area ofthe exclusive ownership portions co-owned with other compartmentalized owners is included since TOKYUREIT rents that area and leases it out together with the exclusive ownership portion under TOKYU REIT’s
proprietary ownership. For TOKYU REIT Shibuya R Building, the area of part of the exclusive ownership portions
under the proprietary ownership of and the exclusive ownership portions co-owned with othercompartmentalized owners is included since TOKYU REIT rents that area and leases it out together with theexclusive ownership portion under TOKYU REIT’s proprietary ownership. For REVE Nakameguro (land withleasehold interest), the stated figure is the leased area of land. For Tokyu Bancho Building, the stated figure is
calculated by multiplying the total leasable area of the whole building by the 52.6% quasi-co-ownership interestof the 95.1% compartmentalized ownership interest of the trust beneficiary interest. For Aoyama Oval Building,the area of part of the exclusive ownership portions co-owned with other compartmentalized owners is included
since the fiduciary rents that area and leases it out together with the exclusive ownership portion under thefiduciary’s proprietary ownership; and the stated figure is calculated by multiplying the total leasable area of thewhole building by the 47.5% quasi-co-ownership interest of the trust beneficiary interest. For Futako Tamagawa
Rise, the stated figure is the sum total of the figures calculated by multiplying the total leasable area of each blockby the percentage of interest in the compartments under compartmentalized ownership; and the area of part ofthe exclusive ownership portions co-owned with other compartmentalized owners is included since Tokyu
Corporation and TOKYU REIT rent that area and lease it out together with the exclusive ownership portion underTokyu Corporation and TOKYU REIT’s ownership. For Tokyo Nissan Taito Building, the stated figure is
calculated by multiplying the total leasable area of the whole building by the 40% quasi-co-ownership interest of
the trust beneficiary interest.
Note 3. ‘Leased area’ is the area out of the total leasable area that is actually under lease agreements and leased (the area
as indicated in the agreements; does not include lease agreements for parking lots, side signboards, etc.). For
Tokyu Nampeidai-cho Building, the area of parking lots is included. For QFRONT, the area of othercompartmentalized owners’ exclusive ownership portions is included since the fiduciary rents that area andleases it out as a block together with the entrusted property. For TOKYU REIT Toranomon Building, the area ofthe exclusive ownership portions co-owned with other compartmentalized owners is included since TOKYUREIT rents that area and leases it out together with the exclusive ownership portion under TOKYU REIT’s
proprietary ownership. For TOKYU REIT Shibuya R Building, the area of part of the exclusive ownership portions
under the proprietary ownership of and the exclusive ownership portions co-owned with othercompartmentalized owners is included since TOKYU REIT rents that area and leases it out together with theexclusive ownership portion under TOKYU REIT’s proprietary ownership. For REVE Nakameguro (land withleasehold interest), the stated figure is the leased area of land. For Tokyu Bancho Building, the stated figure is
calculated by multiplying the total leased area of the whole building by the 52.6% quasi-co-ownership interest of
the 95.1% compartmentalized ownership interest of the trust beneficiary interest. For Aoyama Oval Building, thearea of part of the exclusive ownership portions co-owned with other compartmentalized owners is included
since the fiduciary rents that area and leases it out together with the exclusive ownership portion under thefiduciary’s proprietary ownership; and the stated figure is calculated by multiplying the total leased area of thewhole building by the 47.5% quasi-co-ownership interest of the trust beneficiary interest. For Futako Tamagawa
Rise, the stated figure is the sum total of the figures calculated by multiplying the total leased area of each blockby the percentage of interest in the compartments under compartmentalized ownership; and the area of part ofthe exclusive ownership portions co-owned with other compartmentalized owners is included since Tokyu
Corporation and TOKYU REIT rent that area and lease it out together with the exclusive ownership portion underTokyu Corporation and TOKYU REIT’s ownership. For Tokyo Nissan Taito Building, the stated figure is
calculated by multiplying the total leased area of the whole building by the 40% quasi-co-ownership interest of
the trust beneficiary interest.
Note 4. ‘Occupancy rate’ is the leased area expressed as a percentage of total leasable area at the end of the period.
Note 5. ‘Occupancy rate’ and ‘(Book value) As a percentage of revenue from property leasing’ are rounded to one decimal
place. Therefore, the sum total of the items may not necessarily correspond to the ‘Total’ figure.

46

Use

(3) Details of Properties in Portfolio
The properties held by TOKYU REIT as of January 31, 2024 are as follows:

Area

RetailShibuya
Ward

Name of property

Investment
type(excluding
Shibuya
Ward)

Tokyu
Areas

m2

Millions of Millions of
yen
yen
¥

75-8, etc., Udagawa-cho,Shibuya-ku, Tokyo

Trust
beneficiaryinterest inreal estate

4,502.93

TOKYU REIT
Omotesando Square

4-3-18, Jingumae, Shibuyaku, Tokyo

Trust
beneficiaryinterest inreal estate

2,669.10

8,420

5,613

TOKYU REIT
Shibuya Udagawa-cho
Square86-2, Udagawa-cho,Shibuya-ku, Tokyo

Real estate

1,543.05

12,5006,535

cocoti1-23-1, Shibuya,
Shibuya-ku, Tokyo

Trust
beneficiaryinterest inreal estate

8,295.62

23,40020,701CONZE Ebisu

2-3-5, etc., Ebisu Minami,
Shibuya-ku, Tokyo

Real estate

2,327.00

5,200

4,684

19,337.70

87,52050,9025-235-7, etc., MinamiAoyama, Minato-ku,
Tokyo

Trust
beneficiaryinterest inreal estate

2,094.96

6,460

4,673

2,094.96

6,460

4,673

Lexington Aoyama
Sub total
TOKYU REIT
Shimokitazawa Square(excluding
TOKYU REIT
ShibuyaJiyugaoka Square
Ward)

ShibuyaWard

Appraisalvalue
at end of Book value
periodQFRONT

Sub total
CentralTokyo

OfficeLocation(lot number)

Total
leasablearea

38,000¥13,367

6-1058-114, etc., Daita,
Setagaya-ku, Tokyo

Real estate

1,246.98

2,260

2,207

2-20-10, etc., Jiyugaoka,
Meguro-ku, Tokyo

Trust
beneficiaryinterest inreal estate

1,231.80

3,540

3,174

Sub total

2,478.78

5,800

5,381

Total

23,911.44

99,78060,957

7,148.18

7,870

4,004

4,737.19

12,400

6,253

Trust
beneficiaryinterest inreal estate
Trustbeneficiaryinterest inreal estate

Tokyu Nampeidai-cho
Building

12-3, Nampeidai-cho,Shibuya-ku, Tokyo

Tokyu Sakuragaoka-cho
Building

109-9, Sakuragaoka-cho,Shibuya-ku, TokyoTOKYU REIT
Shibuya R Building

3-10-2, etc., Shibuya,
Shibuya-ku, Tokyo

Real estate

5,246.68

10,1005,249

TOKYU REIT
Ebisu Building

3-2-11, Higashi, Shibuyaku, Tokyo

Trust
beneficiaryinterest inreal estate

1,872.80

4,740

4,630

Shibuya Dogenzaka Sky
Building

22-1, etc., Maruyamacho,
Shibuya-ku, Tokyo

Trust
beneficiaryinterest inreal estate

4,136.05

8,640

5,728

TOKYU REIT
1-17-5, etc., Shibuya,
Shibuya Miyashita Koen
Shibuya-ku, Tokyo
Building

Real estate

2,299.69

6,250

5,974

5-52-1, etc., Jingumae,
Shibuya-ku, Tokyo

Trust
beneficiaryinterest inreal estate

8,527.90

18,30018,69633,968.49

68,30050,537

Aoyama Oval Building
Sub total

47

Use

Area

CentralTokyo

Name of property

Investment
type3,150.97

2,556

1,444

TOKYU REIT
Toranomon Building

3-45-6, Toranomon,
Minato-ku, Tokyo

Real estate

10,238.07

14,300

9,732

Kojimachi Square

3-9 and 3-3, Niban-cho,
Chiyoda-ku, Tokyo

Trust
beneficiaryinterest inreal estate

5,409.07

10,1008,210

TOKYU REIT
Shinjuku Building

4-2-3, etc., Shinjuku,
Shinjuku-ku, Tokyo

Real estate

6,270.68

13,500

8,693

Akihabara Sanwa Toyo

3-50-5, etc., Sotokanda,
Chiyoda-ku, Tokyo

Trust
beneficiaryinterest inreal estate

4,433.37

6,760

4,532

Tokyu Toranomon
Building

1-216-2, etc., Toranomon,
Minato-ku, Tokyo

Real estate

11,029.27

25,00017,086TOKYU REIT
Shinjuku 2 Building

4-3-4, Shinjuku, Shinjukuku, Tokyo

Real estate

1,790.46

3,280

2,891

Tokyu Bancho
Building

6-2, etc., Yonban-cho,
Chiyoda-ku, Tokyo

Trust
beneficiaryinterest inreal estate

6,137.50

16,20012,566

OKI Shibaura Office

4-1-6, Shibaura, Minatoku, Tokyo

Trust
beneficiaryinterest inreal estate

18,102.32

13,70012,09466,561.71

105,396

77,2525-13-7, Kamata,Ota-ku, Tokyo

Trust
beneficiaryinterest inreal estate

7,337.82

5,970

3,689

3-1050, etc.,
Higashiyama,
Meguro-ku, Tokyo

Trust
beneficiaryinterest inreal estate

5,710.32

6,460

5,353

1-1316-1, etc.,
Higashiyama,
Meguro-ku, Tokyo

Real estate

6,152.43

8,240

8,393

Sub total

19,200.57

20,67017,436

Total

119,730.77

194,366

145,227

TOKYU REIT
Kamata Building
Tokyu Ikejiri-ohashi

Meguro Higashiyama
Building

Residence

Millions of Millions of
yen
yen

Trust
beneficiaryinterest inreal estate(excluding
Building
Shibuya
Ward)

48

m2
2-120-2, etc., MotoAsakusa,
Taito-ku, Tokyo

Sub total

Tokyu
Areas

Appraisalvalue
at end of Book value
periodTokyo Nissan Taito
Building(excluding
Building
Shibuya
Ward)

OfficeLocation(lot number)

Total
leasablearea

Maison Peony
Toritsudaigaku

1-8-1 and 1-8-8, Nakane,
Meguro-ku, Tokyo

Real estate852.16

1,400

1,179

(excluding
Shibuya
STYLIO FIT
Ward)Musashikosugi

2-1324-1, etc.,
Kamimaruko-sannocho,
Nakahara-ku, Kawasakishi, Kanagawa

Real estate

1,830.00

1,620

1,446

Sub total

2,682.16

3,020

2,626

Total

2,682.16

3,020

2,626

Tokyu
Areas

Use
Complex
Land with leasehold interest

Area

Name of property

Tokyu
Areas

(excluding Futako Tamagawa Rise
Shibuya
Ward)

Tokyu
Areas

Location(lot number)

2-5000-2, etc., Tamagawa,Setagaya-ku, Tokyo

Investment
type

Total
leasablearea

Appraisalvalue
at end of Book value
periodm2

Millions of Millions ofyen
yen

18,919.73

20,40020,276

Sub total

18,919.73

20,40020,276

Total

18,919.73

20,40020,276497.02

1,220

1,162

Sub total

497.02

1,220

1,162

Total

497.02

1,220

1,162

REVE Nakameguro(excluding (land with
Shibuyaleasehold interest)Ward)

1-202-1, Kamimeguro,
Meguro-ku, Tokyo

Real estate

Real estate

Grand total
165,741.12¥ 318,786¥ 230,248
Note 1. ‘Location (lot number)’ is stated as based on the description shown in the registry book. The present status of theproperty might not correspond to the descriptions in the registry book.
Note 2. ‘Total leasable area’ is the total area of the building’s, facility’s and land’s leasable office, retail, warehouse,
residential and land space as indicated in the agreements and drawings (common-use portion is included whenleased). For Tokyu Nampeidai-cho Building, the area of parking lots is included. For QFRONT, the area of othercompartmentalized owners’ exclusive ownership portions is included since the fiduciary rents that area andleases it out as a block together with the entrusted property. For TOKYU REIT Toranomon Building, the area ofthe exclusive ownership portions co-owned with other compartmentalized owners is included since TOKYUREIT rents that area and leases it out together with the exclusive ownership portion under TOKYU REIT’s
proprietary ownership. For TOKYU REIT Shibuya R Building, the area of part of the exclusive ownership portions
under the proprietary ownership of and the exclusive ownership portions co-owned with othercompartmentalized owners is included since TOKYU REIT rents that area and leases it out together with theexclusive ownership portion under TOKYU REIT’s proprietary ownership. For REVE Nakameguro (land withleasehold interest), the stated figure is the leased area of land. For Tokyu Bancho Building, the stated figure is
calculated by multiplying the total leasable area of the whole building by the 52.6% quasi-co-ownership interestof the 95.1% compartmentalized ownership interest of the trust beneficiary interest. For Aoyama Oval Building,the area of part of the exclusive ownership portions co-owned with other compartmentalized owners is included
since the fiduciary rents that area and leases it out together with the exclusive ownership portion under thefiduciary’s proprietary ownership; and the stated figure is calculated by multiplying the total leasable area of thewhole building by the 47.5% quasi-co-ownership interest of the trust beneficiary interest. For Futako Tamagawa
Rise, the stated figure is the sum total of the figures calculated by multiplying the total leasable area of each blockby the percentage of interest in the compartments under compartmentalized ownership; and the area of part ofthe exclusive ownership portions co-owned with other compartmentalized owners is included since Tokyu
Corporation and TOKYU REIT rent that area and lease it out together with the exclusive ownership portion underTokyu Corporation and TOKYU REIT’s ownership. For Tokyo Nissan Taito Building, the stated figure is
calculated by multiplying the total leasable area of the whole building by the 40% quasi-co-ownership interest of
the trust beneficiary interest.
Note 3. For ‘Appraisal value at end of period,’ TOKYU REIT indicates the assessed value based on the appraisal by realestate appraisers following the asset evaluation method, standards and reporting date laid down in TOKYUREIT’s Articles of Incorporation and rules of The Investment Trusts Association, Japan (based on real estateappraisal reports prepared by Japan Real Estate Institute, Japan Valuers Co., Ltd., and Daiwa Real EstateAppraisal Co., Ltd., which adopt the period end date as the date of value estimate).

49

Use

The developments of the leasing business of the properties held by TOKYU REIT are as
follows:

Area

Name of property

QFRONT

2

100.0

¥ 778

10.2

2

100.0

¥ 804

10.5

TOKYU REIT
Omotesando Square

4

100.0

168

2.2

4

100.0

179

2.4

2

100.0

242

3.2

1

96.4

245

3.2

cocoti

15

100.0

559

7.3

15

100.0

560

7.3

CONZE Ebisu

8

100.0

108

1.4

7

85.8

100

1.3

31

100.0

1,859

24.2

29

98.0

1,891

24.8

7

100.0

147

1.9

7

100.0

137

1.8

7

100.0

147

1.9

7

100.0

137

1.8

9

100.0

52

0.7

9

100.0

49

0.6

5

100.0

77

1.0

5

100.0

79

1.0

Sub total

14

100.0

129

1.7

14

100.0

128

1.7

RetailShibuya TOKYU REIT Shibuya
Ward Udagawa-cho Square

Sub total
CentralTokyo Lexington Aoyama(excl.
Shibuya
Sub total
Ward)
Tokyu TOKYU REIT
Areas Shimokitazawa Square(excl.
Shibuya TOKYU REIT
Ward) Jiyugaoka Square

Total

52

100.0

2,136

27.9

50

98.4

2,158

28.3

Tokyu Nampeidai-cho
Building

1

100.0

178

2.3

1

100.0

178

2.3

Tokyu Sakuragaoka-cho
Building

2

100.0

251

3.3

2

100.0

252

3.3

TOKYU REIT
Shibuya R Building

12

100.0

271

3.5

12

100.0

272

3.6

7

100.0

94

1.2

8

100.0

101

1.3

9

100.0

197

2.6

9

100.0

186

2.4

TOKYU REIT Shibuya
Miyashita Koen Building

9

100.0

117

1.5

8

100.0

122

1.6

Aoyama Oval Building

27

99.6

449

5.9

26

99.3

409

5.4

Sub total
OfficeShibuya TOKYU REIT
Ward Ebisu Building
Shibuya Dogenzaka Sky
Building

67

99.9

1,561

20.4

66

99.8

1,523

19.9

Tokyo Nissan Taito
Building

17

100.0

138

1.8

17

100.0

203

2.7

TOKYU REIT
Toranomon Building

10

100.0

376

4.9

10

100.0

369

4.8

Kojimachi Square

10

100.0

196

2.6

8

87.6

203

2.7

7

100.0

290

3.8

7

100.0

292

3.8

7

100.0

175

2.3

7

100.0

165

2.2

13

100.0

423

5.5

11

89.2

348

4.6

TOKYU REIT
Shinjuku 2 Building

2

100.0

83

1.1

2

100.0

83

1.1

Tokyu Bancho
Building

8

100.0

344

4.5

8

100.0

353

4.6

OKI Shibaura Office

1

100.0

396

5.2

1

100.0

396

5.2

75

100.0

2,425

31.6

71

97.3

2,416

31.6

TOKYU REIT
Central Shinjuku Building
Tokyo
Akihabara Sanwa Toyo
(excl.
Building
ShibuyaWard) Tokyu Toranomon
Building

Sub total

50

41st fiscal period
40th fiscal period
From August 1, 2023 to January 31, 2024
From February 1, 2023 to July 31, 2023
As a
As a
Revenue percentage
Revenue percentageof revenueof revenue
from
from
Occupancy
Occupancy
NumberNumber
from
from
rate
property
rate
propertyofofproperty
property
leasingleasingtenants
tenants
leasingleasing
Millions
Millions%%%%of yenof yenUse
OfficeTOKYU REIT
Tokyu Kamata Building
Areas Tokyu Ikejiri-ohashi(excl. Building
ShibuyaWard) Meguro Higashiyama
Building

Land with leasehold interest

Complex

Residence

Area

Name of property

41st fiscal period
40th fiscal period
From August 1, 2023 to January 31, 2024
From February 1, 2023 to July 31, 2023
As a
As a
Revenue percentage
Revenue percentageof revenueof revenue
from
from
Occupancy
Occupancy
NumberNumber
from
from
rate
property
rate
propertyofofproperty
property
leasingleasingtenants
tenants
leasingleasing
Millions
Millions%%%%of yenof yen
5

100.0

238

3.1

5

100.0

238

3.1

6

100.0

202

2.6

6

100.0

202

2.6

13

100.0

218

2.8

13

100.0

214

2.8

Sub total

24

100.0

659

8.6

24

100.0

654

8.6

Total

166

100.0

4,645

60.6

161

98.4

4,594

60.2

26

100.0

28

0.4

25

96.7

28

0.4

1

100.0

38

0.5

1

100.0

39

0.5

Sub total

27

100.0

67

0.9

26

99.0

67

0.9

Total

27

100.0

67

0.9

26

99.0

67

0.9

146

100.0

796

10.4

146

99.3

796

10.4

Sub total

146

100.0

796

10.4

146

99.3

796

10.4

Total

146

100.0

796

10.4

146

99.3

796

10.4

1

100.0

21

0.3

1

100.0

21

0.3

1

100.0

21

0.3

1

100.0

21

0.3

Total

1

100.0

21

0.3

1

100.0

21

0.3

Grand total

392

100.0

¥ 7,667

100.0

384

98.5

¥ 7,638

100.0

Tokyu Maison Peony
Areas Toritsudaigaku(excl.
Shibuya STYLIO FIT
Ward) Musashikosugi

Tokyu
Areas
(excl. Futako Tamagawa Rise
Shibuya
Ward)

Tokyu
Areas REVE Nakameguro(excl. (land with
Shibuya leasehold interest)
Ward)

Sub total

Note 1. ‘Number of tenants’ is counted cumulatively, i.e., when one tenant leases plural rooms for rent in the same
property, it is regarded as one tenant, and when in plural properties, it is regarded as plural tenants. For
QFRONT, the number of tenants includes one tenant (Tokyu Corporation) leasing space on the facade of thebuilding for installing a large LED display screen, etc. and posting signboards, among other purposes. For
Tokyo Nissan Taito Building and Maison Peony Toritsudaigaku, the number of tenants includes residential
tenants. For STYLIO FIT Musashikosugi, the number of tenants is the number of lessees under the master
lease agreement. For Futako Tamagawa Rise, when the same tenant occupies compartments in different blocks
or for different uses, the tenant is counted as separate tenants in the number of tenants.
Note 2. ‘Occupancy rate’ is the leased area expressed as a percentage of total leasable area at the end of the period.
Note 3. ‘Occupancy rate’ and ‘(Revenue from property leasing) As a percentage of revenue from property leasing’ arerounded to one decimal place. Therefore, the sum total of the items may not necessarily correspond to the‘Total’ figure.

(4) Other Assets
As of January 31, 2024, there are no assets targeted for investment other than those describedabove.
(5) Assets Held in Each Country and Region
TOKYU REIT does not invest in overseas properties.

51

4. Capital Expenditures for Properties Held
(1) Plan of Capital Expenditures
The following lists the estimated amounts of major capital expenditures for repair andmaintenance work of properties held, as scheduled as of January 31, 2024. The estimatedconstruction costs shown below include those recorded in expenses for accounting purposes.
Repairs and maintenance and capital expenditures will be conducted based on efficient repair
and maintenance plans prepared for each property to maintain and improve theircompetitiveness from a medium to long term perspective.
Estimated construction cost
Millions of yen
Name of property

LocationObjective

Total

Amountpaid
duringperiodAmountpaid
by end ofperiodFrom December 2022
to March 2024

¥ 825

―

―

From June 2023
to July 2024

¥ 500

―

―

Estimated period

QFRONT

Shibuya-ku,
Tokyo

Replacement andrenewal of equipment

QFRONT

Shibuya-ku,
Tokyo

Replacement of
air-conditioning
equipment

TOKYU REIT
Shinjuku 2 Building

Shinjuku-ku,
Tokyo

Renewal ofrestrooms and such

From December 2023
to May 2024

¥ 99

―

―

Shibuya Dogenzaka Sky
Building

Shibuya-ku,
Tokyo

Renewal ofrestrooms and such

From August 2023
to June 2024

¥ 95

―

―

TOKYU REIT
Shibuya R Building

Shibuya-ku,
TokyoRenovation of elevators

From April 2024
to July 2024

¥ 44

―

―

(2) Capital Expenditures Made during Period
The following is an overview of construction work conducted during the fiscal period underreview that fall under the category of capital expenditures for properties held.
Capital expenditures during the 41st fiscal period amounted to ¥447 million and ¥128 million
in repairs and maintenance expenses were charged to expenses for a combined total of ¥576
million spent for such work.
Objective

Location

TOKYU REIT
Shinjuku 2 Building

Shinjuku-ku,
Tokyo

Renewal ofrestrooms and such

From July 2023
to November 2023

Aoyama Oval Building

Shibuya-ku,
Tokyo

Replacement ofsprinklers

From May 2023
to September 2023

52

QFRONT

Shibuya-ku,
Tokyo

Replacement ofcooling tower

From October 2023
to November 2023

37

CONZE Ebisu

Shibuya-ku,
Tokyo

Replacement of
air-conditioning
equipment

From November 2023
to December 2023

24

cocotiShibuya-ku,
Tokyo

Replacement ofelectrical power
equipment

From November 2023
to November 2023

16

Other

Millions of yen
¥

93

222
Total

52

PeriodConstruction cost

Name of property¥ 447

(3) Reserve for Long-Term Repair and Maintenance Plan (Reserve for Repairs and Maintenance)
Based on long-term repair and maintenance plans decided for each property, TOKYU REIT
accounted for reserves for repairs and maintenance from cash flows made during the period inorder to pay for significant repairs and maintenance scheduled in the medium to long term
future as follows:
41st fiscal period

From August 1, 2023
to January 31, 2024

40th fiscal period

From February 1, 2023
to July 31, 2023

39th fiscal period

From August 1, 2022
to January 31, 2023

38th fiscal period

From February 1, 2022
to July 31, 2022

37th fiscal period

From August 1, 2021
to January 31, 2022

Millions of yen
Reserveat beginning of period¥ 135

Amount transferred toreserve during period
Reversal fromreserve during period

¥

96

¥ 180

¥ 101

¥ 105

285

297

418

364

573

273

258

503

285

577

Reserve
¥ 146
¥ 135
¥ 96
¥ 180
at end of period
Note.
TOKYU REIT took over reserves made in the trust assets that the prior owner accounted for at the timeof trade of beneficiary interests in trust accounts and such reserves are included in the ‘Amounttransferred to reserve during period.’

¥ 101

53

5. Expenses and Debt
(1) Investment Management Expenses
41st fiscal period

From August 1, 2023 to January 31, 2024

40th fiscal period

From February 1, 2023 to July 31, 2023

Millions of yen
Asset management fees
Asset-based fees

¥ 392

¥ 394

Cash-based fees

324

316

Unit price-based fees

¥ 717

―

¥ 711

Asset custodian fees

17

17

General administration fees

38

38

Directors’ fees

6

6

Other operating expenses

92

98

¥ 872

¥ 871

Total

54

―

(2) Short-term Debt and Long-term Debt
Short-term debt and long-term debt from each financial institution as of January 31, 2024 are
as follows:
Category
LenderDevelopment Bank of Japan Inc.

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

MUFG Bank, Ltd.

Balance Balance Average
as of
as of interest
January Julyrate
31, 2024 31, 2023 (Note 1)
Millions Millions%of yen of yen

Maturity
date

February¥ 5,000 ¥ 5,000 1.57750
25, 2014

February
26, 2024

UnsecuredandUnguaran-teed(Notes 2
and 3)

June
25, 2015
May
25, 2017
June
27, 2017
July
25, 2017
January
25, 2018

June
25, 2025
November27, 2023
December27, 2023
January
25, 2024
January
25, 2028

UnsecuredandUnguaran-teed(Note 2)September
26, 2024

UnsecuredandUnguaran-teed(Notes 2
and 3)

Drawdown
date

March
26, 2018

Long-term debt

MUFG Bank, Ltd.
Nippon Life Insurance Company
MUFG Bank, Ltd.
The Dai-ichi Life Insurance Company,
LimitedMizuho Bank, Ltd.
The Norinchukin BankMUFG Bank, Ltd.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
The Dai-ichi Life Insurance Company,
LimitedApril
10, 2018
June
25, 2018
July
31, 2018
November
12, 2018
January
28, 2019May
27, 2019
June
25, 2019
June
28, 2019
August29, 2019
November19, 2019
December25, 2019
January27, 2020

5,000

5,000 1.26125―

1,000 0.62116―

2,000 0.61773―

1,000 0.63573

5,000

5,000 0.90880

2,500

2,500 0.62827

2,500

2,500 0.65250―

1,500 0.60000

500

500 0.68569

2,000

2,000 0.90260

1,700

1,700 0.72652

3,000

3,000 0.60380

2,000

2,000 0.56116

1,500

1,500 0.46789

400

400 0.48124

400

400 0.50641

1,400

1,400 0.46876

2,000

2,000 0.55395

500

500 0.64089

1,000

1,000 0.82000

Repayment
methodUse offunds

RemarkMarch26, 2025
October
10, 2023
Bullet Refinance
Decemberpayment
fund25, 2025
July
31, 2028May
12, 2026
January
28, 2027
UnsecuredMay
and27, 2027

June
28, 2027

Unguaran-teed(Note 2)February29, 2028
December25, 2028
January27, 2032

55

Category
Lender
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mitsui Sumitomo Insurance Co., Ltd.
The Norinchukin Bank

Drawdown
date

June
25, 2020

June
29, 2020

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

December25, 2020

Sumitomo Mitsui Trust Bank, Limited
Mitsui Sumitomo Insurance Co., Ltd.
Mizuho Bank, Ltd.

June
25, 2021

The Dai-ichi Life Insurance Company,
LimitedLong-term debt

Nippon Life Insurance Company

July30, 2021

The Dai-ichi Life Insurance Company,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.

October22, 2021

Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Nippon Life Insurance Company
Mizuho Trust & Banking Co., Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Shinkin Central Bank
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Daido Life Insurance Company

56

December27, 2021
January
31, 2022
February25, 2022May
25, 2022
July
27, 2022
August5, 2022
November11, 2022
December26, 2022

Balance Balance Average
as of
as of interest
January Julyrate
31, 2024 31, 2023 (Note 1)
Millions Millions%of yen of yen
1,500

1,500 0.60137

4,000

4,000 0.67380

500

500 0.49250

500

500 0.55000

2,700

2,700 0.53896

2,000

2,000 0.57127

2,700

2,700 0.59776

1,000

1,000 0.48880

1,000

1,000 0.66140

1,000

1,000 0.47000

500

500 0.61130

1,500

1,500 0.78000

800

800 0.64577

1,600

1,600 0.63943

1,600

1,600 0.64830

3,500

3,500 0.51005

1,500

1,500 0.60055

500

500 0.56880

500

500 0.78815

3,000

3,000 0.62630

2,000

2,000 0.62329

2,000

2,000 0.77489

1,500

1,500 0.56282

1,700

1,700 1.10315

500

500 0.91500

Maturity
date

Repayment
methodDecember25, 2028
June
25, 2030
June
29, 2027
June
29, 2028
December25, 2028
June
25, 2029
December25, 2029
June
26, 2028
June
25, 2030
July
31, 2028
July
30, 2030
July29, 2033

Use offunds

Refinance
fund
Bulletpayment

April
23, 2029

December29, 2025
July
30, 2027
February25, 2026
February25, 2030May
25, 2026
January27, 2027
January
28, 2030
January
30, 2026
November11, 2030
December26, 2028(Note 4)
Refinance
fund

RemarkUnsecuredandUnguaran-teed(Note 2)Category
LenderDrawdown
date

Mitsui Sumitomo Insurance Co., Ltd.

Balance Balance Average
as of
as of interest
January Julyrate
31, 2024 31, 2023 (Note 1)
Millions Millions%of yen of yen
1,000

1,000
0.81130

Shinkin Central Bank

1,000

1,000

The Yamagata Bank, Ltd.

950

950

The 77 Bank, Ltd.

480

480

Kansai Mirai Bank, Limited

480

480

480

480

The Joyo Bank, Ltd.

240

240 0.97750

The Chiba Bank, Ltd.

480

480

The Nishi-Nippon City Bank, Ltd.

240

240

The Hachijuni Bank, Ltd.

700

700

The Bank of Fukuoka, Ltd.

950

950

Long-term debt

The Bank of Kyoto, Ltd.

Daido Life Insurance Company

January
30, 2023

March
10, 2023

MUFG Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

June
27, 2023

Development Bank of Japan Inc.
Nippon Life Insurance Company
Nippon Life Insurance Company
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
The Norinchukin Bank
Sub total
Total
Note 1.
Note 2.
Note 3.
Note 4.

July31, 2023
October
10, 2023
November27, 2023
December27, 2023
January
25, 2024

1,500

1,500 0.95125

500

500 0.58500

1,500

1,500 1.03690

1,000

1,000 1.25250

500

500 0.83036

1,500― 1.47065

1,000― 0.82000

2,000― 0.78000

1,000― 1.31065

93,500Maturity
date

Repayment
methodUse offunds

RemarkJanuary29, 2027(Note 4)January
30, 2030

UnsecuredandUnguaran-teed(Note 2)

Bulletpayment
March
10, 2028
June
29, 2026
June
27, 2031
June
27, 2033
January
31, 2029
October
10, 2031
November27, 2026
December28, 2026
January
26, 2032

Refinance
fund

93,500¥ 93,500 ¥ 93,500‘Average interest rate’ is the weighted average interest rate during the period.
Depending on the financial position of TOKYU REIT, additional interest rates, additional cash reserves, asset
acquisition and disposition restrictions, debt burden and payment restrictions, dividend restrictions, offeringof additional pledge and other financial covenants may apply.
As of the end of the fiscal period, the amounts are recorded in the balance sheets as ‘Long-term debt due within
one year’ under ‘Current liabilities.’
The funds are for the acquisition of property and for expenditures pertaining to the acquisition.

57

(3) Investment Corporation Bonds
The status of investment corporation bonds issued and outstanding as of January 31, 2024 is
as follows:

Name

Issue date

Balance
as ofJanuary
31, 2024

Balanceas of
July31, 2023

Annualinterest Maturity Redemption
rate
methoddateMillions of yen
6th Series
Unsecured Investment
Corporation Bonds
7th Series
Unsecured Investment
Corporation Bonds

Use ofproceeds

Remark%¥ 1,000¥ 1,000 0.54000

October
24, 2029

1,000

1,000 1.00000

October
24, 2039

October
24, 2019

Repaymentof debt
financing

8th Series
October
October
Unsecured/
Unsecured Investment
3,000
3,000 0.51000
29, 2020
29, 2030 Full amountUnguaranteed
Corporation Bonds
on maturity(Note 1)
9th Series
Unsecured Investment October
October
3,000
3,000 0.36000
14, 2027
Corporation Bonds
14, 2022(Green Bonds)
10th Series
Unsecured Investment January
January
3,000
3,000 1.07400(Note 2)21, 2033
Corporation Bonds
23, 2023(Green Bonds)
Total¥ 11,000 ¥ 11,000
Note 1. These bonds rank pari passu in right of payment with certain investment corporation bonds.
Note 2. The funds are for the acquisition of property and for expenditures pertaining to the acquisition.

(4) Short-term Investment Corporation Bonds
There is no item that falls under this category.
(5) Investment Unit Options
There is no item that falls under this category.

58

6. Acquisitions and Dispositions during the 41st Fiscal Period(1) Sales and Purchases of Properties and Asset Backed Securities or Infrastructure Assets andInfrastructure-related Assets
Acquisition
Asset type

Name of property

Acquisition
price

Acquisition
date

Disposition
dateMillions of yen

Disposition
Disposition
Book
Gain (Loss)
price
value
on sale(Note 1)
(Note 2)
(Note 3)(Note 2)Millions of yen

Trustbeneficiary Tokyo Nissan Taito
January 31,――¥ 2,385¥ 1,085¥ 1,295
interest in Building2024
real estate
Note 1. ‘Disposition price’ is the amount exclusive of the expenses required for disposition of the property (brokeragecharges, property-related taxes, etc.) and is identical to the disposition costs stated in the sale and purchaseagreement, etc.
Note 2. ‘Disposition price’ and ‘Book value’ are the amounts for the 30% quasi-co-ownership interest of the trust
beneficiary interest.
Note 3. ‘Gain (Loss) on sale’ is the disposition price, minus the book value and other sales expenses.

(2) Sales and Purchases of Other Assets
Major assets other than the aforementioned properties and asset backed securities are eitherbank deposits or bank deposits held as trust assets.
(3) Research on Prices of Specified Assets① Property

Acquisitionordisposition

Asset type

Name of property

Acquisitionordispositiondate

Acquisition
orAppraisal
disposition
value
price
(Note 3)(Note 1)
(Note 3)
Millions of yen

Appraiser

Date of
value

Trust
Daiwa
January 31,
beneficiary Tokyo Nissan Taito
Real Estate
Disposition¥ 1,944¥ 2,385
June 1, 2023
2024
interest in Building
Appraisal
real estateCo., Ltd.
Note 1. ‘Acquisition or disposition price’ is the amount exclusive of the expenses required for acquisition or dispositionof the property (brokerage charges, property-related taxes, etc.) and is identical to the acquisition or disposition
costs stated in the sale and purchase agreement, etc.
Note 2. The appraisal value above is based on “Real Estate Appraisal Standards; Practical Theory; Chapter 3: Appraisal
in respect with Securitizable Subject Property.”
Note 3. ‘Acquisition or disposition price’ and ‘Appraisal value’ are the amounts for the 30% quasi-co-ownership interestof the trust beneficiary interest.

② Other
There is no item that falls under this category.

59

(4) Trading with Interested Persons, Etc.
① Status of Trading
TOKYU REIT carried out no transactions, including the trading of specified assets, withinterested persons, etc.
② Amounts of Commissions Paid

Item

Utilities expenses

Subcontract expenses

Totalamounts ofcommissions
paid (A)Thousandsof yenPaid to interested persons, etc.
Payee

¥ 57

0.0

Tokyu Power Supply Co., Ltd.

¥0

0.0

Tokyu Community Corporation¥ 180,900

34.1

Tokyu Property Management Co., Ltd.

¥ 71,365

13.5

Tokyu Lifia Corporation¥ 10,046

1.9¥ 7,743

1.5

Tokyu Agency Pro-mix Co., Ltd.

¥ 453

0.1

its communications Inc.

¥ 249

0.0

¥0

0.0

Tokyu Property Management Co., Ltd.

¥ 16,543

5.7

Tokyu Card, Inc.

¥ 11,458

3.9

Tokyu Business Support Co., Ltd.

¥ 2,6240.9

Tokyu Community Corporation¥ 2,234

0.8

Tokyu Malls Development Corporation¥ 2,1030.7

Tokyu Agency Inc.

¥ 1,580

0.5

its communications Inc.

¥ 1,305

0.4

¥ 840

0.3

Tokyu Agency Pro-mix Co., Ltd.

¥ 423

0.1

Tokyu Corporation

¥ 274

0.1

Tokyu Department Store Co., Ltd.

¥ 112

0.0

Tokyu Linen Supply Co., Ltd.

¥ 61

0.0

Tokyu Recreation Co., Ltd.

¥ 10

0.0

Tokyu Lifia Corporation

¥ 10

0.0

Tokyu Store Chain Co., Ltd.

¥2

0.0

¥ 132,781

73.6¥ 180,344 Tokyu Community Corporation¥ 23,559

13.1

Tokyu Corporation¥ 21,111

11.7¥ 9,300

99.3¥ 530,018 Tokyu Corporation¥ 291,309 Shibuya Chikagai Co., Ltd.

Tokyu Property Management Co., Ltd.
Property management fees

Insurance premium

60

Thousandsof yen

B/A(%)

Shibuya Chikagai Co., Ltd.

¥ 479,566

Tokyu Store Chain Co., Ltd.

Other rental service
expenses

Amount ofpayment (B)¥ 9,368 Tokyu Insurance Consulting Co., Ltd.

Note 1. “Interested persons, etc.” refers to persons having interests in Tokyu REIM based on the investment
management agreement concluded with TOKYU REIT as defined in Article 123 of the Investment Trust
Law Enforcement Order and Article 26, Paragraph 1, Item 27 of the Rules on Investment Reports, etc.
for Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.
Note 2. In addition to the commissions paid as described in the table, TOKYU REIT paid commissions to third
parties through interested persons, etc., Tokyu Property Management Co., Ltd. and Tokyu Community
Corporation in the amount of ¥87,594 thousand and ¥31,129 thousand, respectively.
In addition to the commissions paid as described in the table, the amount paid for repair andmaintenance work related to interested persons, etc. during the 41st fiscal period are as follows:
Tokyu Renewal Co., Ltd.
Tokyu Community Corporation
Tokyu Property Management Co., Ltd.
Tokyu Corporation
Tokyu Agency Pro-mix Co., Ltd.
Tokyu Agency Inc.
Tokyu Business Support Co., Ltd.

¥ 71,737 thousand¥ 49,754 thousand¥ 25,030 thousand¥ 980 thousand¥ 594 thousand¥ 67 thousand¥ 6 thousand(5) Trading between the Investment Management Company and TOKYU REIT Pertaining toBusiness Concurrently Operated by the Investment Management Company
There is no item that falls under this category.
7. Accounting(1) Assets, Liabilities, Unitholders’ Capital and Profit/Loss
See accompanying Balance Sheet, Statement of Income, Statement of Changes in Unitholders’Equity, Statement of Cash Distributions, Statement of Cash Flows and Notes to Financial
Statements.
The data for the previous fiscal period in such Balance Sheet, Statement of Income, Statementof Changes in Unitholders’ Equity, Statement of Cash Distributions, Statement of Cash Flowsand Notes to Financial Statements are for reference, and not subject to the audit by a financial
auditor pursuant to the provisions of Article 130 of the Investment Trust Law in the fiscal period
under review.
(2) Change in Depreciation Method
There is no item that falls under this category.
(3) Change in Property and Infrastructure Asset Valuation Methods
There is no item that falls under this category.

61

8. Other(1) News
During the fiscal period under review, TOKYU REIT’s Board of Directors approved thefollowing matters stipulated under Article 109, Paragraph 2, Items 2, 3, 5, 6 and 8 of theInvestment Trust Law.
Date ofmeetingNovember 24,
2023

Agenda item

Summary

Engagement of underwriters
for investment corporationbond offerings and otheroutsourcing of generaladministrative operations
relating to investment
corporation bonds

In connection with a comprehensive resolution passed on
the same date regarding the engagement of underwriters
for investment corporation bond offerings, the meeting
approved that TOKYU REIT’s executive director shall havefull authority on the selection, etc. of providers of generaladministrative operations relating to investment
corporation bond offerings to be issued in the future.

(2) Status, etc. of Beneficiary Certificates of Investment Trust Issuing Beneficiary Certificates
There is no item that falls under this category.
(3) Disclosure Pertaining to Corporation Holding Overseas Properties
There is no item that falls under this category.
(4) Disclosure Pertaining to Properties of Corporation Holding Overseas Properties
There is no item that falls under this category.
(5) Other
Unless otherwise specifically mentioned, the figures in this report have been rounded down
for amounts and rounded for ratios to the nearest specified unit.

62

63

64

65

66

67

TOKYU REIT, Inc.
Balance Sheet
As of January 31, 2024 and July 31, 2023
January 31, 2024

July 31, 2023

(Millions of yen)
ASSETS
Current assets:
Cash and deposits with banks
Cash and deposits with banks held in trust
Tenant receivables
Lease deposits held in trust due within one year
Other current assets
Total current assets

Fixed assets:
Property and equipment
Buildings and structures
Land
Other tangible assets
Construction in progress
Buildings and structures held in trust
Land held in trust
Other tangible assets held in trust
Construction in progress held in trust
Less accumulated depreciation
Total property and equipment
Intangible assets
Intangible assets held in trust
Total intangible assets
Investments and other assets
Lease deposits
Lease deposits held in trust
Deferred tax assets
Other assets
Total investments and other assets
Total fixed assets

Deferred assets:
Investment corporation bond issuance expenses
Total deferred assets
Total assets

¥

6,841
2,773
165
18
84

5,564
2,486
183
18
75

9,883

8,327

22,80478,715274
431,362
118,776
1,205
17(22,911)

22,61678,715271
332,175
119,353
1,217
15(22,535)

230,248

231,833

0

0

0

0

211
595
0
422

211
613
0
410

1,229

1,236

231,478

233,070

52

56

52

56

¥ 241,413¥ 241,453

The accompanying notes are an integral part of these financial statements.
68¥

TOKYU REIT, Inc.
Balance Sheet, continued
As of January 31, 2024 and July 31, 2023
January 31, 2024

July 31, 2023

(Millions of yen)
LIABILITIESCurrent liabilities:
Long-term debt due within one year
Accounts payable
Consumption tax payable
Rent received in advanceAccrued expenses and other current liabilities
Total current liabilities
Long-term liabilities:
Investment corporation bonds
Long-term debt
Tenant leasehold and security deposits
Tenant leasehold and security deposits held in trust
Other long-term liabilities
Total long-term liabilities
Total liabilities¥ 7,500
1,003
198
1,478
145

¥ 10,500
1,268
483
1,688
121

10,325

14,061

11,00086,000
4,588
5,901
35

11,00083,000
4,541
5,993
39

107,525

104,574¥ 117,851¥ 118,635¥ 110,479
1,932¥ 110,479
1,932

6,679
4,470

6,087
4,318

123,562

122,817¥ 241,413¥ 241,453

NET ASSETS
Unitholders’ capital
Reserve for reduction entry
Reserve for reduction entry under special provisions
for property replacement
Retained earnings
Total net assets
Total liabilities and net assets

The accompanying notes are an integral part of these financial statements.
69

TOKYU REIT, Inc.
Statement of Income
For the six months ended January 31, 2024 and July 31, 2023
For the six months ended
January 31, 2024

July 31, 2023

(Millions of yen)
Operating revenues:
Rental revenue
Other rental revenue
Gain on sales of real estate properties
Contribution for construction¥ 7,213
454
1,295
-

¥ 7,097
540
1,282
3

Operating expenses:
Rental service expenses
Asset management fees
Other

(3,247)
(717)
(154)

(3,369)
(711)
(160)

Operating income

4,843

4,682

0
2

0
8

(369)
(36)

(366)
(36)

(4)
(23)

(3)
(23)

4,411

4,261

(0)
0

(0)
0

4,410
0

4,260
0

60

58

¥ 4,470¥ 4,318

Non-operating income:Interest income
Other
Non-operating expenses:
Interest expense
Interest expense on investment corporation bonds
Amortization of investment corporation bondissuance expenses
Other
Income before income taxes
Income taxes:
Current
Deferred
Net income
Retained earnings at beginning of period
Reversal of reserve for reduction entry under
special provisions for property replacement
Retained earnings at end of period

The accompanying notes are an integral part of these financial statements.
70

TOKYU REIT, Inc.
Statement of Changes in Unitholders’ Equity
For the six months ended January 31, 2024 and July 31, 2023
For the six months ended January 31, 2024

Reserve for
reduction entry
under special
provisions forReserve forUnitholders’property
reduction entry replacement
capital(Millions of yen)

Balance at beginning of period
Changes during the period
Provision ofreserve for reduction entry
under special provisions forproperty replacement
Reversal ofreserve for reduction entry
under special provisions forproperty replacement
Cash distributions declared

Total¥ 110,479¥ 1,932¥ 6,087¥ 4,318¥ 122,817

-

-

652

(652)

-

-

-

(60)
-

60
(3,666)
4,410(3,666)
4,410

-

-

592

151

744

¥ 110,479¥ 1,932¥ 6,679¥ 4,470¥ 123,562

Retainedearnings

Total

Net income
Total changes during the period
Balance at end of period

Retainedearnings

For the six months ended July 31, 2023

Reserve for
reduction entry
under special
provisions forReserve forUnitholders’property
reduction entry replacement
capital(Millions of yen)

Balance at beginning of period
Changes during the period
Provision ofreserve for reduction entry
under special provisions forproperty replacement
Reversal ofreserve for reduction entry
under special provisions forproperty replacement
Cash distributions declared
Net income
Total changes during the period¥ 110,479¥ 1,932¥ 3,209¥ 6,885¥ 122,507

-

-

2,935

(2,935)

-

-

-

(58)
-

58
(3,949)4,260(3,949)
4,260

-

-

2,877

(2,566)310

Balance at end of period¥ 110,479¥ 1,932¥ 6,087¥ 4,318¥ 122,817

The accompanying notes are an integral part of these financial statements.
71

TOKYU REIT, Inc.
Statement of Cash Distributions
For the six months ended January 31, 2024 and July 31, 2023
For the six months ended
January 31, 2024

July 31, 2023

(Millions of yen)
Retained earnings at end of period
Cash distributions declared¥ 4,470
3,666¥ 4,318
3,666

804

652

Provision of reserve for reduction entry under
special provisions for property replacement
Retained earnings carried forward

¥

0

¥

0

The Board of Directors of TOKYU REIT resolved on March 15, 2024 and September 14, 2023 toeffect payment of cash distributions of ¥3,750 and ¥3,750 per unit to unitholders of record on
January 31, 2024 and July 31, 2023, respectively. The cash distributions were calculated as follows:
For the six months ended January 31, 2024
As set forth in Article 30, Paragraph 2 of TOKYU REIT’s Articles of Incorporation, TOKYU REIT
has a policy of making cash distributions in excess of 90% of distributable income as defined in
Article 67-15 of the Special Taxation Measures Law of Japan (“Special Taxation Measures Law”).
Based on this policy, TOKYU REIT decided to distribute ¥3,666 million as cash distributions ofearnings, which is almost the entire amount of unappropriated retained earnings remaining after
deducting the provision of reserve for reduction entry under special provisions for property
replacement as set forth in Article 65-7 of the Special Taxation Measures Law. TOKYU REIT will
not be making the cash distributions in excess of earnings as set forth in Article 30, Paragraph 4 of
the Articles of Incorporation.
For the six months ended July 31, 2023
As set forth in Article 30, Paragraph 2 of TOKYU REIT’s Articles of Incorporation, TOKYU REIT
has a policy of making cash distributions in excess of 90% of distributable income as defined in
Article 67-15 of the Special Taxation Measures Law. Based on this policy, TOKYU REIT decided to
distribute ¥3,666 million as cash distributions of earnings, which is almost the entire amount of
unappropriated retained earnings remaining after deducting the provision of reserve for reduction
entry under special provisions for property replacement as set forth in Article 65-7 of the Special
Taxation Measures Law. TOKYU REIT will not be making the cash distributions in excess ofearnings as set forth in Article 30, Paragraph 4 of the Articles of Incorporation.

The accompanying notes are an integral part of these financial statements.
72

TOKYU REIT, Inc.
Statement of Cash Flows
For the six months ended January 31, 2024 and July 31, 2023
For the six months ended
January 31, 2024

July 31, 2023

(Millions of yen)
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance expenses
Loss on disposal of property and equipment
Interest income
Interest expense(Increase) Decrease in tenant receivables(Increase) Decrease in consumption tax refund receivables
Increase (Decrease) in consumption tax payable
Increase (Decrease) in accounts payable
Increase (Decrease) in rent received in advance
Decrease in property and equipment held in trust due to sale
Other, net
Total
Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities¥ 4,411
950
4
2
(0)
406
25
(284)
(59)
(210)
1,085
(16)
6,313
0
(400)
(0)
5,912

¥ 4,261
956
3
1
(0)
402
(66)
321
483
26
571
1,096
(74)
7,984
0
(400)
(0)
7,582

Cash flows from investing activities:
Payments for purchases of property and equipment
Payments for purchases of property and equipment held in trust
Proceeds from lease deposits held in trust
Proceeds from tenant leasehold and security deposits
Payments for tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits held in trust
Payments for tenant leasehold and security deposits held in trust
Net cash provided by (used in) investing activities

(294)
(354)
18
108
(60)
50
(149)
(682)

(250)
(212)
255
(41)
50
(161)
(359)

Cash flows from financing activities:
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Payment of dividends
Net cash provided by (used in) financing activities

5,500(5,500)(3,665)(3,665)1,000(1,000)5,000(5,000)(3,948)(3,948)Net change in cash and cash equivalents
Cash and cash equivalents at beginning of period

1,564
8,050

3,274
4,775

¥ 9,615¥ 8,050

Cash and cash equivalents at end of period

The accompanying notes are an integral part of these financial statements.
73

TOKYU REIT, Inc.
Notes to Financial Statements
For the six months ended January 31, 2024 and July 31, 2023

1. Organization and basis of presentation(a) Organization
TOKYU REIT, Inc. (“TOKYU REIT”), a real estate investment corporation with initial capital of¥200 million, was formed on June 20, 2003 under the Investment Trust and Investment Corporation
Law of Japan (“Investment Trust Law”). Registration with the Kanto Local Finance Bureau of the
Ministry of Finance was completed on July 18, 2003 in accordance with the Investment Trust Law.
On September 10, 2003, TOKYU REIT was listed on the Tokyo Stock Exchange and issued 97,600
investment units for proceeds totaling ¥49,917 million through initial public offering. TOKYU REIT
acquired 11 properties with those proceeds and started its substantial operation.
In August 2004, TOKYU REIT completed its second public offering of 42,000 units and third party
allotment of 2,000 units. Net proceeds totaling ¥27,742 million were utilized in the partial repaymentsof short-term debt and the acquisition of an additional two properties.
In August 2005, TOKYU REIT completed its third public offering of 26,700 units and third party
allotment of 680 units. With net proceeds totaling ¥20,159 million, TOKYU REIT repaid short-term
debt and acquired 40% of trust beneficiary interest of cocoti.
TOKYU REIT completed its fourth public offering of 23,764 units in August 2013 and third party
allotment of 2,376 units in September 2013. Net proceeds totaling ¥12,459 million were utilized in thepartial repayments of short-term debt and the acquisition of an additional three properties.
TOKYU REIT conducted a five-for-one split of investment units with January 31, 2014 as thereference date and February 1, 2014 as the effective date.
As of January 31, 2024, TOKYU REIT’s total capital is ¥110,479 million with 977,600 units issued
and outstanding. TOKYU REIT has been operating 31 properties at an occupancy rate of
approximately 100.0%. Total acquisition cost of the 31 properties is ¥244,971 million and total rentablearea is 165,741.12 m2.
(b) Basis of presentation
The financial statements of TOKYU REIT, which is incorporated in Japan, have been prepared inaccordance with the provisions set forth in the Financial Instruments and Exchange Law and related
regulations and accounting principles generally accepted in Japan, which are different in certain
respects to the application and disclosure requirements of International Financial ReportingStandards (“IFRS Standards”).
Certain items presented in the financial statements for domestic purposes, which were submitted
to the Director-General of the Kanto Local Finance Bureau of the Ministry of Finance, have been
reclassified in the accompanying financial statements for the convenience of readers outside Japan.
The accompanying financial statements have been reclassified and translated into English from theaudited financial statements that were prepared for Japanese domestic purposes from the accounts
and records maintained by TOKYU REIT and were filed with the Kanto Local Finance Bureau of the
Ministry of Finance as required by the Financial Instruments and Exchange Law (in place of the
Securities and Exchange Law effective from September 30, 2007). TOKYU REIT does not prepare
consolidated financial statements, as TOKYU REIT has no subsidiaries.
TOKYU REIT’s first fiscal period began on June 20, 2003, the date of incorporation, and ended on
January 31, 2004. TOKYU REIT’s fiscal period is a six-month period, which ends at the end of Januaryand July of each year.

74

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

2. Significant accounting policies(a) Property and equipment - Property and equipment are carried at cost, less accumulated
depreciation. Depreciation of property and equipment, except for land and construction inprogress, is computed by using the straight-line method at rates based on the estimated useful
lives of the respective assets.
The ranges of useful lives used in the computation of depreciation are generally as follows(including those held in trust):
January 31, 2024

July 31, 2023

(years)Buildings and structures
Buildings

2-50

2-50

Structures

2-45

2-45

Machinery and equipment

2-16

2-16

Tools, furniture and fixtures

2-15

2-15

Other tangible assets(b) Intangible assets - Amortization is computed by using the straight-line method.
(c) Accounting method for deferred assets – Amortization of investment corporation bond issuance
expenses is computed by using the straight-line method at rates based on the redemption periodof the respective bonds.
(d) Revenue recognition – TOKYU REIT operates rental office properties, rental retail properties,
rental residential properties and complexes that include any one of these. Revenue from leasing
is recognized on an accrual basis over the term of each lease. Rental revenue includes fixed rental
revenues, recoveries of utility charges and other income.
The nature of the main performance obligations for revenue from contracts with customers of
TOKYU REIT and the general timing that the concerned performance obligations are satisfied(general timing of revenue recognition) are as follows:(1) Sales of real estate properties – TOKYU REIT recognizes revenue from sales of real estate
properties when buyers (customers) obtain control of the concerned real estate properties
upon satisfying the delivery obligations under the real estate sale agreements.
(2) Recoveries of utility charges – TOKYU REIT recognizes recoveries of utility charges inaccordance with the supply of electricity, water, etc. to lessees (customers) based on thecontent of the lease agreements and incidental agreements for the real estate properties. For
the recoveries of utility charges for which TOKYU REIT is deemed to act as agent, TOKYUREIT recognizes revenue as being the net amount of the amount receivable of the charges forthe electricity, gas, etc. supplied by third parties after deducting the amount payable to theconcerned third parties.
(e) Property-related taxes – Property-related taxes (property tax, city planning tax and depreciable
property tax) are imposed on property on a calendar year basis. The amount of such taxes
assessed for the concerned accounting period is charged to income as rental service expenses. In
accordance with Japanese business practice, at the time of disposal, the seller of the property is
generally liable for property-related taxes on the property from the date of disposal to the end of
the calendar year in which the property is disposed. The seller, however, is reimbursed by thepurchaser of the property for the accrued property-related tax liabilities up to the time of disposal,
and the amount of the settlement reflects this adjustment when acquiring a property. TOKYUREIT is allocating the portion of the property-related taxes related to the period following thepurchase date of each property through the end of the calendar year. The amount of those
allocated portions of the property-related taxes is capitalized as part of the acquisition costs of
the related properties. Capitalized property-related taxes are nil for the six months ended January
31, 2024. Capitalized property-related taxes are nil for the six months ended July 31, 2023.

75

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023
(f) Cash and cash equivalents - Cash and cash equivalents consist of cash, demand deposits, cash
and deposits held in trust and short-term investments that are highly liquid, readily convertible
to cash, have insignificant risk of price fluctuation and expire within three months from the dateof acquisition.
(g) Accounting treatment of beneficiary interest in trust accounts, including real estate – For trust
beneficiary interests in real estate, which are commonly utilized in the ownership of commercial
properties in Japan and through which TOKYU REIT holds most of its property, all accounts ofassets and liabilities within the trust, as well as all income generated and expenses incurred fromassets and liabilities in the trust, are recognized in the balance sheet and income statement
accounts.
(h) Non-deductible consumption taxes – Non-deductible consumption taxes related to fixed assets
are recorded as long-term prepaid expenses and are amortized using the straight-line method
over five years.
(i) Accounting standard for impairment of fixed assets – Effective August 1, 2005, TOKYU REIT
adopted the “Accounting Standard for Impairment of Fixed Assets” (“Opinion Concerning
Establishment of Accounting Standard for Impairment of Fixed Assets” issued by the BusinessAccounting Deliberation Council in Japan on August 9, 2002) and “Implementation Guidance for
the Accounting Standard for Impairment of Fixed Assets” (“Financial Accounting Standard
Implementation Guidance No. 6” issued by the Accounting Standards Board of Japan (ASBJ) on
October 31, 2003). The standard requires the recognition of an impairment loss on fixed assets
whenever events or changes in circumstances indicate that the carrying amounts of fixed assets
may not be recoverable.
(j) Accounting standard for asset retirement obligations – Effective April 1, 2010, TOKYU REIT
adopted the “Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18
issued on March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement
Obligations” (ASBJ Guidance No. 21 issued on March 31, 2008).

76

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

3. Commitment line agreements
TOKYU REIT has commitment line agreements which provide credit facilities totaling ¥2,000
million with one financial institution, ¥8,000 million with one financial institution and ¥8,000 million
with three financial institutions. Combined, commitment lines total ¥18,000 million with four
financial institutions. No amount has been drawn down as of January 31, 2024.

4. Reserve for reduction entry under special provisions for property replacement
The breakdown of the reserve for reduction entry under special provisions for property
replacement as set forth in Article 2, Paragraph 2, Item 28 of the Regulation on Accountings ofInvestment Corporations is as follows:
Item
Relevant properties
Reason for recognition and amount
Policy for reversal
Description of reversal in the period

Breakdown
To be determined
Gain on sale of ¥1,282 million due to the sale of Tokyo Nissan
Taito Building (30% quasi-co-ownership interest) in July 2023
Reversal into retained earnings has been made in accordancewith tax regulations.
Not applicable.
Amount as ofJanuary 31, 2024

Amount as ofJuly 31, 2023

(Millions of yen)
Balance before provision or reversal in the period

¥ 652
652

Balance on the balance sheets
Provision in the statements of cash distributions-

Reversal in the statements of cash distributions
Balance after provision or reversal in the period

¥ 652

Item
Relevant properties
Reason for recognition and amount
Policy for reversal
Description of reversal in the period―-

Reversal in the statements of income

Breakdown
Futako Tamagawa Rise
Gain on sale of ¥4,585 million due to the sale of Tokyu Ginza
2-chome Building in November 2022
Reversal into retained earnings has been made in accordancewith tax regulations.
Reversal has been made with depreciation.
Amount as ofJuly 31, 2023

Amount as ofJanuary 31, 2024
(Millions of yen)
Balance before provision or reversal in the period
Reversal in the statements of income
Balance on the balance sheets
Provision in the statements of cash distributions
Reversal in the statements of cash distributions
Balance after provision or reversal in the period¥ 2,877¥ 2,935

60

58

2,817

2,877

-

-

¥ 2,817¥ 2,877

77

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023
Item
Relevant properties
Reason for recognition and amount
Policy for reversal
Description of reversal in the period

Breakdown
STYLIO FIT Musashikosugi, TOKYU REIT Shibuya
Miyashita Koen Building and Aoyama Oval Building
Gain on sales of ¥4,039 million due to the sales of Shonan Mall
Fill (land with leasehold interest) in August 2021 andSetagaya Business Square in December 2021
Reversal into retained earnings has been made in accordancewith tax regulations.
Not applicable.
Amount as ofJanuary 31, 2024

Amount as ofJuly 31, 2023

(Millions of yen)
Balance before provision or reversal in the period
Reversal in the statements of income
Balance on the balance sheets
Provision in the statements of cash distributions
Reversal in the statements of cash distributions
Balance after provision or reversal in the period¥ 3,209¥ 3,209

-

-

3,209

3,209

-

-

¥ 3,209¥ 3,209

5. Unitholders’ equity
TOKYU REIT issues investment units in accordance with the Investment Trust Law. All theproceeds from the issuance of new units are designated as share capital. TOKYU REIT maintains
minimum net assets of at least ¥50 million as required by the Investment Trust Law.

78

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

6. Rental revenue and expense
Rental revenues and expenses for the six months ended January 31, 2024 and July 31, 2023 were as
follows:
For the six months ended
January 31, 2024
July 31, 2023
(Millions of yen)
Revenue from property leasing:
Rental revenue:
Rent income
Common area charges
Parking lot revenue under monthly contract
Other rent income
Sub total
Other rental revenue:
Incidental income
Other miscellaneous income
Sub total
Total revenue from property leasing
Rental service expenses:
Utilities expenses
Subcontract expenses
Property management fees
Repairs and maintenance expenses
Property-related taxes
Insurance premium
Depreciation and amortization
Loss on disposal of property and equipment
Other
Total rental service expenses
Operating income from property leasing activities(a)-(b)¥ 6,195
571
145
301
7,213

¥ 6,071
582
143
299
7,097

(a)

374
79
454
7,667

435
105
540
7,638

(b)

479
530
180
128
675
9
950
2
291
3,247

520
513
178
185
684
8
956
1
320
3,369

¥ 4,420¥ 4,268

7. Breakdown of gain on sales of real estate properties
Tokyo Nissan Taito Building (30% quasi-co-ownership interest) was sold on January 31, 2024.
For the six months ended
January 31, 2024

July 31, 2023

(Millions of yen)
Revenue from sale of property¥ 2,385

Cost of property

―

1,085

Other sales expenses

4

Gain on sales of real estate properties¥ 1,295

Tokyo Nissan Taito Building (30% quasi-co-ownership interest) was sold on July 31, 2023.
For the six months ended
January 31, 2024

July 31, 2023

(Millions of yen)
Revenue from sale of property
Cost of property
Other sales expenses
Gain on sales of real estate properties―¥ 2,385
1,096
6¥ 1,282

79

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

8. Investment units authorized and investment units issued and outstanding
The total number of units authorized and the total number of units issued and outstanding forthe six months ended January 31, 2024 and July 31, 2023 were as follows:
For the six months ended
January 31, 2024
Total number of units authorized
Total number of units issued and outstanding

July 31, 2023

10,000,000 units

10,000,000 units

977,600 units

977,600 units

9. Cash and cash equivalents
Cash and cash equivalents as of January 31, 2024 and July 31, 2023 consisted of the following:
January 31, 2024

July 31, 2023

(Millions of yen)
¥ 6,841

Cash and deposits with banks
Cash and deposits with banks held in trust
Cash and cash equivalents¥ 5,564

2,773

2,486

¥ 9,615¥ 8,050

10. Leases
TOKYU REIT leases its properties to tenants under non-cancelable operating leases. As of January
31, 2024 and July 31, 2023, the future lease revenues under the non-cancelable operating leases wereas follows:
January 31, 2024
Due within one year
Due after one year
Total

¥

July 31, 2023

(Millions of yen)
6,879

¥

6,898

36,00136,497¥ 42,881¥ 43,396

As of January 31, 2024 and July 31, 2023, the future lease payments under the non-cancelable
operating leases were as follows:
January 31, 2024
Due within one year
Due after one year
Total

80

July 31, 2023

(Millions of yen)
¥ 233

¥ 251

321

427

¥ 554

¥ 679

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

11. Fair value of financial instruments(a) Matters concerning status of financial instruments(1) Policy for handling financial instruments
TOKYU REIT procures funds for asset acquisition or debt repayment, etc. through additional
issuance of investment units, debt financing or issuance of investment corporation bonds. In the
procurement of funds, TOKYU REIT adopts the financial policy of seeking maximization ofunitholder value based on ensuring stability, flexibility and efficiency and also through reductionof funding costs, external growth and keeping expenditures at a minimum.
Concerning the investment management of surplus funds, while the scope of investment
includes securities and monetary claims, considering safety, in principle, TOKYU REIT manages
surplus funds in the form of deposits.
While derivative transactions may possibly be utilized for the purpose of hedging interest rate
fluctuation risks, etc., TOKYU REIT adopts the policy of not engaging in speculative transactions.
At present, TOKYU REIT does not engage in any derivative transactions.
(2) Description of financial instruments and associated risks, and risk management structure
At TOKYU REIT, the appropriateness and effectiveness of the risk management structure isregularly evaluated and enhanced by the investment management company. The following
outlines the description of individual financial instruments and the associated risks, and the risk
management structure.
Deposits are exposed to risks of failure of the financial institution holding the deposit and othercredit risks, but the concerned risks are controlled by striving to diversify the financial institutions
holding the deposit.
Funds from debts and investment corporation bonds are mainly used as funds for asset
acquisition or debt repayment, etc. These funds are exposed to liquidity risk at the time of
repayment, but the liquidity risk is controlled at TOKYU REIT through such measures as striving
to maintain and strengthen the capacity to procure funds from the capital market via capitalincreases, securing several fund procurement sources and diversifying repayment deadlines,
executing commitment line agreements which provide credit facilities totaling ¥18,000 million
with TOKYU REIT’s main financial institutions, and also preparing monthly fund management
plans.
Debt with floating interest rates are exposed to interest rate fluctuation risks, but the impact ofrising interest rate on TOKYU REIT operations is limited by keeping the LTV based on appraisal
value (Note) at low levels, maintaining the ratio of debt that are long-term fixed-rate debt at highlevels, and setting a procurement limit depending on the economic environment and financial
environment, terms of lease agreements with tenants, asset holding period and other factors.
Furthermore, derivative transactions (interest rate swap transactions) are available as a hedging
instrument to avoid risks of rises in floating interest rates and to promote fixed interest payable.
Tenant leasehold and security deposits are deposits from tenants and are exposed to liquidity
risks arising from tenants moving out of properties. The liquidity risk is controlled through suchmeasures as preparing monthly fund management plans.
Note. [Interest-bearing liabilities + Security and guarantee deposits without reserved cash] ÷[Total appraisal value at the end of the fiscal period or at the time of acquisition of specified assets] × 100

81

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023
(3) Supplementary explanation on matters concerning fair value of financial instruments
Certain assumptions are adopted in the calculation of the fair value of financial instruments
and there may be cases where the value will vary when different assumptions are adopted.
(b) Matters concerning fair value of financial instruments
The following are the carrying amounts and fair value as of the end of the fiscal periods, and thedifferences between these amounts. Notes on “cash and deposits with banks” and “cash and deposits
with banks held in trust” are omitted because these are settled within a short period of time and thefair value is thus approximately the same as the book value. Notes on “tenant receivables,” “accounts
payable,” “tenant leasehold and security deposits” and “tenant leasehold and security deposits heldin trust” are omitted because these accounts are immaterial.
January 31, 2024
Carrying
amountFair value

July 31, 2023
Carrying
amountDifference

Fair value

Difference¥¥(Millions of yen)
(1) Long-term debt due within one year¥(2) Investment corporation bonds(3) Long-term debt
Liabilities total

7,500

¥

7,499

¥

(0)

¥

10,50010,53737

11,00086,00010,407
84,911(592)(1,088)11,00083,00010,59082,243

(409)
(756)

¥ 104,500¥ 102,817¥ (1,682)¥ 104,500¥ 103,371¥ (1,128)

Note 1. Method of calculation of fair value of financial instruments.
Liabilities(1) Long-term debt due within one year; (3) Long-term debt
The fair value of long-term debt is calculated based on the method of discounting the sum total amount ofprincipal and interest by the rate assumed as being applicable in the event of a new drawdown of a similar debt.
(2) Investment corporation bonds
The fair value of investment corporation bonds is calculated by discounting the sum total amount of principal
and interest by the rate that takes into account the investment corporation bonds’ remaining term and credit risks.
Note 2. Amount of repayment of investment corporation bonds and long-term debt scheduled to be due after
balance sheet date.
January 31, 2024
Investment
corporationbonds

Long-term
debt

July 31, 2023

Total

Investment
corporationbonds

Long-term
debt

Total

(Millions of yen)
Within one year-

¥ 7,500¥ 7,500

Within two years,
but over one year-

13,000Within three years,
but over two years-

Within four years,
but over three years
Within five years,
but over four years
Over five years

82

¥

¥

-

¥ 10,500¥ 10,500

13,000-10,00010,00015,70015,700-

11,200

11,2003,000

11,30014,300-13,30013,300-15,10015,1003,000

14,40017,4008,000

30,90038,9008,000

34,10042,100TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

12. Income taxes
Income taxes are accounted for financial reporting purposes. The tax effect of temporary
differences between the amount of assets and liabilities for financial statements and for income tax
reporting is recognized as deferred taxes. Deferred tax assets are ¥13 thousand as of January 31, 2024.
Deferred tax assets are ¥13 thousand as of July 31, 2023.
Income taxes in Japan applicable to TOKYU REIT consist of corporate income tax, enterprise tax
and inhabitant tax. The following is a reconciliation between the statutory income tax rate in Japanand the effective tax rate reflected in the accompanying financial statements for the six months ended
January 31, 2024 and July 31, 2023.
January 31, 2024

July 31, 2023

Statutory income tax rate

31.46%

31.46%

Deductible cash distributions
Provision of reserve for reduction entry under
special provisions for property replacement
Other(26.15)(27.07)(5.74)
0.44(4.82)
0.45

0.02%

0.02%

Effective tax rate

13. Related party transactions
For the six months ended January 31, 2024
TOKYU REIT’s Executive Director and Tokyu REIM’s Representative Director & President andChief Executive Officer Yoshitaka Kimura, who holds no voting units of TOKYU REIT, has enteredinto an asset management agreement subject to the conditions set forth in TOKYU REIT’s Articles ofIncorporation with TOKYU REIT. The amount of management fees incurred for the six months ended
January 31, 2024 and payable due to asset manager as of then were as follows:
January 31, 2024
(Millions of yen)
Asset management fees for the period
Management fees payable due to asset manager

¥ 717
357

For the six months ended July 31, 2023
TOKYU REIT’s Executive Director and Tokyu REIM’s Representative Director & President andChief Executive Officer Yoshitaka Kimura, who holds no voting units of TOKYU REIT, has enteredinto an asset management agreement subject to the conditions set forth in TOKYU REIT’s Articles ofIncorporation with TOKYU REIT. The amount of management fees incurred for the six months ended
July 31, 2023 and payable due to asset manager as of then were as follows:
July 31, 2023
(Millions of yen)
Asset management fees for the period
Management fees payable due to asset manager
Note.

¥ 711
348

Kazuyoshi Kashiwazaki resigned as the executive director upon the end of his term of office on April 30, 2023.
Yoshitaka Kimura was appointed as the new executive director at TOKYU REIT’s General Meeting ofUnitholders held on April 21, 2023, and assumed the office on May 1, 2023. The asset management fees for theperiod include the payment during the period when Kazuyoshi Kashiwazaki was the executive director.

83

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

14. Fair value of investment and rental properties
TOKYU REIT owns rental office properties, rental retail properties, rental residential properties
and complexes that include any one of these (including land) primarily in Central Tokyo and Tokyu
Areas (Note 1). The following are the carrying amount at the end of the fiscal period, change during
the fiscal period and fair value at the end of the fiscal period for these investment and rental
properties.
For the six months ended
January 31, 2024

July 31, 2023

(Millions of yen)
Carrying amount (Note 2)
Balance at beginning of period
Change during the period (Note 3)¥ 231,833(1,585)¥ 233,453(1,619)Balance at end of period¥ 230,248¥ 231,833

As of January 31, 2024
Fair value at end of period (Note 4)

As of July 31, 2023

(Millions of yen)
¥ 319,410¥ 320,805

Note 1. Area classification:“Central Tokyo” is the five central Tokyo wards (Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards) andother major commercial and retail districts of Tokyo (the areas surrounding Ikebukuro, Koraku, Ueno andother areas).
“Tokyu Areas” is the Tokyu rail network hub (Shibuya ward) and other Tokyu rail network areas (Tokyo(Shinagawa, Meguro, Setagaya and Ota wards, and Machida city); Yokohama city, Kanagawa prefecture(Kohoku, Kanagawa, Naka, Nishi, Midori, Aoba and Tsuzuki wards); Kawasaki city, Kanagawa prefecture(Nakahara, Takatsu and Miyamae wards); and Yamato city, Kanagawa prefecture). Shibuya ward is included
in both Central Tokyo and Tokyu Areas. “Other” is other districts in the Tokyo Metropolitan Area, including
Kanagawa, Saitama and Chiba prefectures (excluding the separately mentioned areas above).
Note 2. The carrying amount is the acquisition price (including expenditures pertaining to the purchase) lessaccumulated depreciation.
Note 3. Of the change during the six months ended January 31, 2024, the amount of increase is mainly attributable torenovation work conducted on each property and other capital expenditures (¥447 million), and the amountof decrease is mainly attributable to the disposition of 30% quasi-co-ownership interest of the trust beneficiaryinterest in Tokyo Nissan Taito Building (¥1,085 million) and depreciation and amortization (¥950 million).
Of the change during the six months ended July 31, 2023, the amount of increase is mainly attributable torenovation work conducted on each property and other capital expenditures (¥422 million), and the amountof decrease is mainly attributable to the disposition of 30% quasi-co-ownership interest of the trust beneficiaryinterest in Tokyo Nissan Taito Building (¥1,096 million) and depreciation and amortization (¥956 million).
Note 4. The fair value as of the end of the fiscal period shows the disposition price in the case of the properties forwhich a disposition agreement has been concluded, and the appraisal value as appraised by an independent
real estate surveyor in the case of the other properties.

The income (loss) in the six months ended January 31, 2024 and July 31, 2023 for investment and rental
properties are as presented in “Rental revenue and expense” of the “Notes to Financial Statements.”

84

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

15. Revenue recognition(a) Information about disaggregation of revenue from contracts with customers
For information about disaggregation of revenue from contracts with customers, please refer to“Rental revenue and expense” in the “Notes to Financial Statements.”“Rental revenue and expense” includes revenue based on the “Accounting Standard for Lease
Transactions” (ASBJ Statement No. 13). The main revenue from contracts with customers consists ofrecoveries of utility charges (“Incidental income” of “Other rental revenue”).
(b) Information as basis for understanding revenue from contracts with customers
The information is as presented in “Significant accounting policies” in the “Notes to Financial
Statements.”(c) Information for understanding the amount of revenue for the fiscal period under review andsubsequent fiscal periods(1) Balance, etc. of contract assets and contract liabilities
Not applicable.
(2) Transaction price allocated to the remaining performance obligations(i) Sales of real estate properties
Not applicable.
(ii) Recoveries of utility charges
For recoveries of utility charges, as TOKYU REIT has a right to consideration from lessees(customers) in an amount that directly corresponds with the value to the customers of the
portion of performance completed by the end of the period, revenue is recognized in theamount to which TOKYU REIT has the right to invoice in accordance with Paragraph 19 of
the “Implementation Guidance on Accounting Standard for Revenue Recognition.”
Accordingly, through application of Paragraph 80-22 (2) of the “Accounting Standard for
Revenue Recognition,” the transaction price allocated to the remaining performanceobligations is not included in the notes.

85

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

16. Segment and related information[Segment information]
Disclosure of segment information is omitted because TOKYU REIT has a single segment—the
Property Leasing Business.
[Related information](a) Information about products and services
Disclosure is omitted because net sales to external customers of a single products and services
category account for over 90% of the operating revenues recorded in the statements of income.
(b) Information about geographical areas(1) Operating revenues
Disclosure is omitted because operating revenues from external customers in Japan account forover 90% of the operating revenues recorded in the statements of income.
(2) Property and equipment
Disclosure is omitted because the amount of property and equipment located in Japan accountfor over 90% of the amount of property and equipment recorded in the balance sheets.
(c) Information about major customers
For the six months ended January 31, 2024
Party

Operating revenues

Name of related segment(Millions of yen)Domestic godo kaisha (GK)¥ 1,295

Property Leasing Business¥ 765

Property Leasing Business

Operating revenues

Name of related segment(Note 1)

Related parties (Note 2)

For the six months ended July 31, 2023
Party

(Millions of yen)Domestic godo kaisha (GK)(Note 3)

Related parties (Note 2)¥ 1,282

Property Leasing Business¥ 776

Property Leasing Business

Note 1. This is the second phase of the disposition of trust beneficiary interest in domestic real estate that took placein the form of disposition of quasi-co-ownership interest in three phases. The name of the company, thepurchaser in said transaction, has not been disclosed as said company has not provided consent.
There is no capital relationship, personnel relationship or business relationship other than said transaction
between TOKYU REIT or Tokyu REIM and said company, and said company is not a related party of TOKYUREIT or Tokyu REIM.
Note 2. “Related parties” refers to any entity that falls under any of (i) to (iv) below:(i) Tokyu Corporation(ii) A subsidiary of Tokyu Corporation(iii) A tokutei mokuteki kaisha (TMK) or special purpose entity (SPE) that was established based on theintention of Tokyu Corporation or a subsidiary of Tokyu Corporation and where the share of investment
by silent partnership or other investment shares in that entity by the respective company exceeds 50%(iv) An affiliate of Tokyu Corporation.
Note 3. The name of the company has not been disclosed as said company has not provided consent.
There is no capital relationship, personnel relationship or business relationship between TOKYU REIT or
Tokyu REIM and said company, and said company is not a related party of TOKYU REIT or Tokyu REIM.

86

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

17. Per unit information
The following table summarizes the net income per unit for the six months ended January 31, 2024
and July 31, 2023 and the unitholders’ equity per unit as of January 31, 2024 and July 31, 2023.
For the six months ended
Net income per unit

Unitholders’ equity per unit

January 31, 2024

July 31, 2023

¥ 4,511¥ 4,357

As of January 31, 2024

As of July 31, 2023

¥ 126,393¥ 125,631

Net income per unit is computed by dividing net income by the weighted-average number of units
outstanding during each period.
Diluted net income per unit is not presented since neither warrants nor convertible bonds were
issued during the six months ended January 31, 2024 and July 31, 2023.
Note.

The basis for calculating net income per unit is as follows:
For the six months ended
January 31, 2024
Net income

July 31, 2023

(Millions of yen)
¥ 4,410¥ 4,260

Amount not available to ordinary unitholders--

Net income available to ordinary unitholders¥ 4,410¥ 4,260

Weighted-average number of units

977,600 units

977,600 units

87

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

18. Subsequent events
The following events occurred after the end of the six months ended January 31, 2024 (41st fiscal
period) of TOKYU REIT.
Disposition of asset
The following asset was sold on February 29, 2024.
(i) Type of asset:
Trust beneficiary interest in domestic real estate(ii) Property name:Tokyo Nissan Taito Building(iii) Disposition price (Note 1):¥3,180 million(iv) Contract date:July 14, 2023(v) Disposition date:February 29, 2024(vi) Purchaser:
Domestic godo kaisha (GK) (Note 2)(vii) Posting of gain on sale of real estate and reserve for reduction entry:
Gain on sale of real estate of ¥1,729 million is expected to be posted in the six months
ending July 31, 2024 (42nd fiscal period). Of this, ¥1,089 million is expected to be retainedin the reserve for reduction entry under special provisions for property replacement as
set forth in the Regulation on Accountings of Investment Corporations through theapplication of the system of special provisions for taxation in the case of replacement bypurchase of specified assets (Article 65-7 of the Special Taxation Measures Law).
Note 1. ‘Disposition price’ is the amount for the 40% quasi-co-ownership interest, and is the amount exclusive of
the expenses required for disposition of the asset (property-related taxes, etc.).
Note 2. This is the third phase of the disposition of trust beneficiary interest in domestic real estate that took placein the form of disposition of quasi-co-ownership interest in three phases. The name of the company, thepurchaser in said transaction, has not been disclosed as said company has not provided consent.
There is no capital relationship, personnel relationship or business relationship other than saidtransaction between TOKYU REIT or Tokyu REIM and said company, and said company is not a related
party of TOKYU REIT or Tokyu REIM.

88

TOKYU REIT, Inc.
Notes to Financial Statements, continued
For the six months ended January 31, 2024 and July 31, 2023

19. Other
The breakdown of the reserve for reduction entry under special provisions for property
replacement as set forth in Article 2, Paragraph 2, Item 28 of the Regulation on Accountings ofInvestment Corporations is as follows:
Item
Relevant properties
Reason for recognition and amount
Policy for reversal
Description of reversal in the period

Breakdown
To be determined
Gain on sale of ¥1,295 million due to the sale of Tokyo Nissan
Taito Building (30% quasi-co-ownership interest) in January
2024
Reversal into retained earnings has been made in accordancewith tax regulations.
Not applicable.
Amount as ofJanuary 31, 2024

Amount as ofJuly 31, 2023

(Millions of yen)¥

Balance before provision or reversal in the period-

Balance on the balance sheets
Provision in the statements of cash distributions

804-

Reversal in the statements of cash distributions¥ 804

Balance after provision or reversal in the period

Item
Reason for recognition and amount
Policy for reversal
Description of reversal in the period―-

Reversal in the statements of income

Relevant properties-

Breakdown
To be determined
Gain on sale of ¥1,282 million due to the sale of Tokyo Nissan
Taito Building (30% quasi-co-ownership interest) in July 2023
Reversal into retained earnings has been made in accordancewith tax regulations.
Not applicable.
Amount as ofJanuary 31, 2024

Amount as ofJuly 31, 2023

(Millions of yen)
Balance before provision or reversal in the period
Reversal in the statements of income
Balance on the balance sheets
Provision in the statements of cash distributions
Reversal in the statements of cash distributions
Balance after provision or reversal in the period

―

¥

652
-

¥ 652

89

TOKYU REIT, Inc.
Supplementary Schedules
As of January 31, 2024 and July 31, 2023

1. Schedule of property and equipment and intangible assets
Property and equipment and intangible assets as of January 31, 2024 and July 31, 2023 consisted of
the following:

Balance
Property and equipment
Buildings and structures
Buildings¥ 22,582
Structures
221
Land
78,715
Other tangible assets
Machinery and equipment
140
Tools, furniture and fixtures
134
Construction in progress
4
Property and equipment held in trust
Buildings and structures
Buildings
31,023Structures338
Land
118,776
Other tangible assets
Machinery and equipment
939
Tools, furniture and fixtures265
17
Construction in progress
253,160
Sub total
Intangible assets
Intangible assets
1012Intangible assets held in trust
22
Sub total
Total

90

¥ 253,183

January 31, 2024
Accumulated
depreciation¥(6,021)
(100)
―

Net
Balancebalance(Millions of yen)¥

16,561
121
78,715¥22,395
221
78,715

July 31, 2023
Accumulated
depreciation¥(5,608)(94)―

Netbalance¥

16,786
126
78,715

(73)
(89)
―

66
44
4

137
134
3

(69)
(85)
―

67
48
3

(15,281)(250)―

15,742
88
118,776

31,840335
119,353(15,310)(243)―

16,53091
119,353

(863)
(232)
―
(22,911)76
33
17230,248945
272
15254,369

(882)
(239)
―
(22,535)6232
15
231,833

(10)
(12)
(22)

―
0
0

10
12
22

(10)
(11)
(22)

―
0
0

¥ (22,934)¥ 230,248¥ 254,392¥ (22,558)¥ 231,833

TOKYU REIT, Inc.
Supplementary Schedules, continued
As of January 31, 2024 and July 31, 2023

2. Investment corporation bonds
The status of investment corporation bonds issued and outstanding as of January 31, 2024 and July
31, 2023 were as follows:

Name

Issue date

Balance
as ofJanuary
31, 2024

Balanceas of
July31, 2023

DecreaseduringtheperiodAnnualinterest Maturity
rate
date

Millions of yen
6th Series
Unsecured Investment
Corporation Bonds
7th Series
Unsecured Investment
Corporation Bonds
8th Series
Unsecured Investment
Corporation Bonds
9th Series
Unsecured Investment
Corporation Bonds(Green Bonds)
10th Series
Unsecured Investment
Corporation Bonds(Green Bonds)
Total¥ 1,000 0.54000

October
24, 2029

1,000―

1,000 1.00000

October
24, 2039

October29, 2020

3,000―

3,000 0.51000

October29, 2030

October
14, 2022

3,000―

3,000 0.36000

October
14, 2027

January
23, 2023

3,000―

3,000 1.07400

January
21, 2033¥

October
24, 2019¥ 11,000¥―

Remark%―¥ 1,000

Use ofproceeds

Repaymentof debt
financing

Unsecured/
Unguaranteed(Note 1)

(Note 2)

¥ 11,000

Note 1. These bonds rank pari passu in right of payment with certain investment corporation bonds.
Note 2. The funds are for the acquisition of property and for expenditures pertaining to the acquisition.
Note 3. The total amount of bonds due for redemption within five years of the date of the balance sheet and expected
to be repaid by specific year(s) is as follows:
Within one year

Within two years, Within three years, Within four years, Within five years,
but over one year but over two years but over three years but over four years
Millions of yen

Investment corporation bonds

¥

―

¥

―

¥

―

¥ 3,000¥―

91

TOKYU REIT, Inc.
Supplementary Schedules, continued
As of January 31, 2024 and July 31, 2023

3. Short-term debt and long-term debt
Short-term debt and long-term debt as of January 31, 2024 and July 31, 2023 consisted of the following:
Category

Balance Increase Decrease Balance Average
as ofduring during
as ofinterest
rate
January
the
the
July
31, 2024 period period 31, 2023 (Note 1)

LenderLong-term debt

¥

―

¥

¥ 5,000

Development Bank of Japan Inc.

5,000

―

―

5,000 1.26125

Sumitomo Mitsui Trust Bank, Limited

―

―

1,000

1,000 0.62116

Mizuho Bank, Ltd.

―

―

2,000

2,000 0.61773

The Norinchukin Bank

―

―

1,000

1,000 0.63573

5,000

―

―

5,000 0.90880― ¥ 5,000 1.57750

MUFG Bank, Ltd.

2,500

―

―

2,500 0.62827

MUFG Bank, Ltd.

2,500

―

―

2,500 0.65250

―

―

1,500

1,500 0.60000

500

―

―

500 0.68569

The Dai-ichi Life Insurance Company,
Limited

2,000

―

―

2,000 0.90260

Mizuho Bank, Ltd.

1,700

―

―

1,700 0.72652

The Norinchukin Bank

3,000

―

―

3,000 0.60380

MUFG Bank, Ltd.

2,000

―

―

2,000 0.56116

MUFG Bank, Ltd.

1,500

―

―

1,500 0.46789

MUFG Bank, Ltd.

400

―

―

400 0.48124

Sumitomo Mitsui Trust Bank, Limited

400

―

―

400 0.50641

MUFG Bank, Ltd.

1,400

―

―

1,400 0.46876

MUFG Bank, Ltd.

2,000

―

―

2,000 0.55395

Mizuho Bank, Ltd.

500

―

―

500 0.64089

The Dai-ichi Life Insurance Company,
Limited

1,000

―

―

1,000 0.82000

MUFG Bank, Ltd.

1,500

―

―

1,500 0.60137

Nippon Life Insurance Company
MUFG Bank, Ltd.

Use offunds

Remark%Development Bank of Japan Inc.

Development Bank of Japan Inc.

92

Millions of yen

Maturity
date

February
26, 2024

UnsecuredandUnguaran-teed(Notes 2
and 3)

June
25, 2025
November27, 2023
December27, 2023
January
25, 2024
January
25, 2028

UnsecuredandUnguaran-teed(Note 2)September
26, 2024

UnsecuredandUnguaran-teed(Notes 2
and 3)

March
26, 2025
October
10, 2023
December Refinance
25, 2025
fund
July
31, 2028May
12, 2026
January
28, 2027
May
Unsecured27, 2027
andJune
28, 2027

February29, 2028
December25, 2028
January27, 2032
December25, 2028

Unguaran-teed(Note 2)

TOKYU REIT, Inc.
Supplementary Schedules, continued
As of January 31, 2024 and July 31, 2023

Category

Balance Increase Decrease Balance Average
as ofduring during
as ofinterest
rate
January
the
the
July
31, 2024 period period 31, 2023 (Note 1)

LenderDevelopment Bank of Japan Inc.

――

4,000 0.67380

Mitsui Sumitomo Insurance Co., Ltd.

500

―

―

500 0.49250

The Norinchukin Bank

500

―

―

500 0.55000

Sumitomo Mitsui Trust Bank, Limited

2,700

―

―

2,700 0.53896

MUFG Bank, Ltd.

2,000

―

―

2,000 0.57127

Sumitomo Mitsui Trust Bank, Limited

2,700

―

―

2,700 0.59776

Mitsui Sumitomo Insurance Co., Ltd.

1,000

―

―

1,000 0.48880

Mizuho Bank, Ltd.

1,000

―

―

1,000 0.66140

The Dai-ichi Life Insurance Company,
Limited

1,000

―

―

1,000 0.47000

500

―

―

500 0.61130

1,500

―

―

1,500 0.78000

Mizuho Bank, Ltd.

800

―

―

800 0.64577

MUFG Bank, Ltd.

1,600

―

―

1,600 0.63943

Sumitomo Mitsui Trust Bank, Limited

1,600

―

―

1,600 0.64830

Sumitomo Mitsui Trust Bank, Limited

3,500

―

―

3,500 0.51005

Nippon Life Insurance Company

1,500

―

―

1,500 0.60055

Mizuho Trust & Banking Co., Ltd.

500

―

―

500 0.56880

Mizuho Trust & Banking Co., Ltd.

500

―

―

500 0.78815

Sumitomo Mitsui Trust Bank, Limited

3,000

―

―

3,000 0.62630

Sumitomo Mitsui Trust Bank, Limited

2,000

―

―

2,000 0.62329

Shinkin Central Bank

2,000

―

―

2,000 0.77489

Sumitomo Mitsui Trust Bank, Limited

1,500

―

―

1,500 0.56282

Mizuho Bank, Ltd.

1,700

―

―

1,700 1.10315

500

―

―

500 0.91500

Mitsui Sumitomo Insurance Co., Ltd.

1,000

―

―

1,000

Shinkin Central Bank

1,000

―

―

1,000

The Dai-ichi Life Insurance Company,
LimitedDaido Life Insurance Company

Use offunds

Remark

%4,000

Nippon Life Insurance Company

Long-term debt

Millions of yen

Maturity
date

0.81130June
25, 2030
June
29, 2027
June
29, 2028
December25, 2028
June
25, 2029
December25, 2029
June
26, 2028
June
25, 2030
July
31, 2028
July
30, 2030
RefinanceJulyfund
29, 2033
April
23, 2029
December29, 2025
July
30, 2027
February25, 2026
February25, 2030May
25, 2026
January27, 2027
January
28, 2030
January(Note 4)30, 2026
November11, 2030 Refinance
fund
December26, 2028
January29, 2027

UnsecuredandUnguaran-teed(Note 2)

(Note 4)93

TOKYU REIT, Inc.
Supplementary Schedules, continued
As of January 31, 2024 and July 31, 2023
Balance Increase Decrease Balance Average
as ofduring during
as ofinterest
rate
January
the
the
July
31, 2024 period period 31, 2023 (Note 1)

Category

Long-term debt

LenderMillions of yen
950

―

―

950

The 77 Bank, Ltd.

480

―

―

480

Kansai Mirai Bank, Limited

480

―

―

480

The Bank of Kyoto, Ltd.

480

―

―

480

The Joyo Bank, Ltd.

240

―

―

240 0.97750

The Chiba Bank, Ltd.

480

―

―

480

The Nishi-Nippon City Bank, Ltd.

240

―

―

240

The Hachijuni Bank, Ltd.

700

―

―

700

The Bank of Fukuoka, Ltd.

950

―

―

950

1,500

―

―

1,500 0.95125

500

―

―

500 0.58500

Mizuho Trust & Banking Co., Ltd.

1,500

―

―

1,500 1.03690

Development Bank of Japan Inc.

1,000

―

―

1,000 1.25250

Nippon Life Insurance Company

500

―

―

500 0.83036

Nippon Life Insurance Company

1,500

1,500

―

― 1.47065

Sumitomo Mitsui Trust Bank, Limited

1,000

1,000

―

― 0.82000

Mizuho Bank, Ltd.

2,000

2,000

―

― 0.78000

The Norinchukin Bank

1,000

1,000

―

― 1.31065

93,500

5,500

5,500

¥ 93,500¥ 5,500

MUFG Bank, Ltd.

Sub total
Total

Use offunds

January
30, 2030(Note 4)

Remark%The Yamagata Bank, Ltd.

Daido Life Insurance Company

Maturity
date

Unsecured

March
and
10, 2028
Unguaran
-teed
June
(Note
2)
29, 2026
June
27, 2031
June
27, 2033
January Refinance
31, 2029
fund
October
10, 2031
November27, 2026
December28, 2026
January
26, 2032

93,500¥ 5,500 ¥ 93,500

Note 1. ‘Average interest rate’ is the weighted average interest rate during the period.
Note 2. Depending on the financial position of TOKYU REIT, additional interest rates, additional cash reserves, asset
acquisition and disposition restrictions, debt burden and payment restrictions, dividend restrictions, offeringof additional pledge and other financial covenants may apply.
Note 3. As of the end of the fiscal period, the amounts are recorded in the balance sheets as ‘Long-term debt due
within one year’ under ‘Current liabilities.’
Note 4. The funds are for the acquisition of property and for expenditures pertaining to the acquisition.
Note 5. The total amount of long-term debt repayable within five years of the date of the balance sheet and expected
to be repaid by specific year(s) is as follows:
Within one year

Within two years, Within three years, Within four years, Within five years,
but over one year but over two years but over three years but over four years
Millions of yen

Long-term debt

94

¥ 7,500¥ 13,000¥ 15,700¥ 11,300¥ 15,100

95

Unitholder Information
Unit Price Chart (Note)(%)
375 1st 2nd

3rd

325

TOKYU REIT

300
275

Nikkei Stock Average

4th

5th

6th

7th

8th

9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st

350 Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period
January 31, 2024
Closing price for FP 41 ¥172,000

TSE REIT Index

May 31, 2007
Highest price after listing ¥294,000

250
225

First pricefor listing¥106,000

200
175

November 28, 2011
Lowest price after listing ¥67,900

150
125
100
75
50
2003/
9/10

2004/
7/30

2005/
7/29

2006/
7/31

2007/
7/31

2008/
7/31

2009/
7/31

2010/
7/30

2011/
7/29

2012/
7/31

2013/
7/31

2014/
7/31

2015/
7/31

2016/
7/29

2017/
7/31

2018/
7/31

2019/
7/31

2020/
7/31

2021/
7/30

2022/
7/29

2023/ 2024/
7/31 1/31(Note) Investment unit prices prior to February 1, 2014, on which a five-for-one split of investment units was implemented, have been changed in consideration of the split.

Unitholder Composition

Foreign Corporations and Individuals
170,568 units (17.45%)
Other Domestic Corporations
67,406 units (6.90%)

Individuals in Japan
91,225 units (9.33%)

Domestic Financial Institutions (Note)
648,401 units (66.33%)

By Investment Unit
(977,600 units total)

By Unitholder(10,364 unitholders total)

Individuals in Japan
9,841 (94.95%)
Domestic Financial Institutions (Note)
125 (1.21%)

0

20

Other Domestic Corporations
172 (1.66%)
40

Foreign Corporations and Individuals
226 (2.18%)

60

80

(%)

100

(Note) Domestic Financial Institutions include financial instruments dealers.
*The ratio is rounded to two decimal places.

Results Reporting Schedule
Ended Jan. 2024
(FP 41)Ending Jul. 2024
(FP 42)

Date of settlement

Jan. 31, 2024

Jul. 31, 2024

Announcement offinancial results

Mar. 15, 2024

Mid. Sep. 2024

Ended Jan. 2024
(FP 41)Ending Jul. 2024
(FP 42)

Delivery of investment
management report(Japanese only)

Apr. 15, 2024

Mid. Oct. 2024

Payment of cash
distributions

Apr. 16, 2024

Mid. Oct. 2024

Concerning the distribution of analyst-oriented presentation materials, etc.
Every fiscal period,
conducts an analyst-oriented explanatory meeting which is held by the investment management company
on the next business day after the announcement of results. The presentation materials, etc. used at the explanatory meetings are posted on’s website (www.tokyu-reit.co.jp/eng/), but for unitholders that are not able to view the website we will consider sending thepresentation materials, etc. used at the explanatory meeting. Unitholders that wish to receive these materials should contact the investment
management company listed below by mail or fax. When contacting the company please include your unitholder number which can be foundin the enclosed “distributions statement.”

Tokyu Real Estate Investment Management Inc.
Shibuya Mark City West Bldg. 11F 1-12-1, Dogenzaka, Shibuya-ku, Tokyo 150-0043* The investment management company will cover postal fees.
* If there are any questions please contact us at +81-3-5428-5828.

96

Fax: +81-3-5489-1633

Address
1-12-1, Dogenzaka, Shibuya-ku, Tokyo 150-0043, Japan

Date for Determining Cash Distribution
Payments

Established

Annually on January 31 and July 31(Cash distributions paid within three months of each date)June 20, 2003

Executive Director
Yoshitaka Kimura

Supervisory Directors
Maruhito Kondo
Takashi Aikawa

Independent Auditor

The Administrator of the Register ofUnitholders
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo 100-8212, Japan

Transfer Agent Head Business Office
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
1-4-5, Marunouchi, Chiyoda-ku, Tokyo 100-8212, Japan

PricewaterhouseCoopers Japan LLC

Contact

1-1-1, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan

Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
1-1, Nikko-cho, Fuchu-shi,
Tokyo 183-0044, Japan

Date of Settlement
Annually on January 31 and July 31

Unitholders’ General Meeting
More than once every two years

Date for Finalizing General
Meeting Voting Rights

Address
Mitsubishi UFJ Trust and Banking Corporation
Shin-Tokyo Post Office, PO box No. 29,
Tokyo 137-8081, Japan
Tel: 0120-232-711 (toll free number: Japan only)

As designated under Article 12 of the by-laws

Listing

Newspaper for Posting Public
Announcements

Tokyo Stock Exchange (8957)

The Nikkei (Nihon Keizai Shimbun)

Distributions
The Time Limit for Claiming Cash Distributions
stipulates that the time limit for claiming cash distributions shall be three
The Articles of Incorporation ofyears from the date on which payment commenced, at which point the right of unitholders to receive cash distributions thatremain unclaimed shall be annulled.
The date on which payment commenced for fiscal period ended July 2021 (FP 36) is on October 15, 2021 and for fiscal period
ended January 2022 (FP 37) is on April 15, 2022.

Investment Management Company
Tokyu Real Estate Investment Management Inc.
TEL: +81-3-5428-5828
Financial Instruments Dealer (Kanto Financial Bureau (Kin-sho) No. 360) / Member of the Investment Trusts Association, Japan

Disclaimer
This Semiannual Report is, in principle, an English translation of the Japanese report on TOKYU REIT’s investment
management published every six months.
This translation is prepared and provided for the readers’ convenience.
All readers are recommended to refer to the original version in Japanese of the report for complete and accurate information.
For further information please visit thewebsite at (www.tokyu-reit.co.jp/eng/).

The information in this report without description of dates is as of January 31, 2024.

97

TOKYU REIT, Inc.
www.tokyu-reit.co.jp/eng/