JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

FINANCIAL RESULTS FOR THE FISCAL PERIOD ENDED MARCH 2021
(REIT)
May 17, 2021
Japan Real Estate Investment Corporation
Tokyo Stock Exchange8952
https://www.j-re.co.jp/en/
Yutaka Yanagisawa, Executive Director
Japan Real Estate Asset Management Co., Ltd.
Naoki Umeda, President & CEO
Masaru Motooka, Executive Officer & General Manager, Planning Department/ TEL +81-3-3211-7951
June 25, 2021
June 14, 2021

Name of Issuer:
Stock Exchange Listing:
Securities Code:
URL:
Representative:
Asset Management Company:
Representative:
Contact:
Scheduled Date of Filing Securities Report:
Scheduled Date of Dividend Payment:
Supplementary Materials for Financial
Results:
Holding of a Briefing on Financial Results:

Yes
Yes (primarily for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)

1. Financial Results for the March 2021 period (October 1, 2020 –March 31, 2021)(Percentages represent increases/decreases compared with results for the previous fiscal period)(1) Operating Results

Operating Revenues
Period ended

March 31, 2021
September 30, 2020

Operating Profit

Profit%Millions of yen%

Millions of yen%

Millions of yen%

34,94434,966

(0.1)
(2.9)

16,47916,498

(0.1)
(4.9)

15,50815,608

(0.6)
(4.4)

15,56015,598

(0.2)
(1.0)

Profit per Unit
Period ended

March 31, 2021
September 30, 2020

Ordinary Profit

Millions of yen

ROE

ROA

(Profit to Unitholders’Equity Ratio)(Ordinary Profit toTotal Assets Ratio)

Ordinary Profit toOperating Revenues Ratio

Yen

%

%

%

11,233
11,260

3.0
3.0

1.5
1.6

44.4
44.6

(2) Dividends
Dividend per Unit
Excluding Excess of
Earnings

Total Cash Dividends
Excluding Excess of
Earnings

Dividend in Excessof Earnings per Unit

Total Dividends in
Excess of Earnings

Yen

Millions of yen

Yen

Millions of yen%%

11,32011,262

15,68015,600

-

-

100.8
100.0

3.0
3.0

Period ended

March 31, 2021
September 30, 2020
Notes 1:
2:
3:

Payout Ratio

Ratio of Dividends
to Net Assets

The payout ratio is rounded off to the first decimal place.
For the period ended March 31, 2021, the total dividends are calculated as profit, adding the reservation for a reduction entry (120
million yen).
For the period ended September 30, 2020, the total dividends are calculated as profit, adding the reservation for a reduction entry (2 million
yen).

(3) Financial Standing
Total Assets
As ofMarch 31, 2021
September 30, 2020

Net Assets

Equity Ratio

Net Assets per Unit

Millions of yen

Millions of yen%

Yen

1,001,734
1,000,254

515,262
515,30251.4
51.5

371,974
372,002

Reference: Total unitholders’ equity is 515,262 million yen for the March 31, 2021 period and 515,302 million yen for the September 30, 2020 period.

1

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(4) Cash Flows
Cash Flows fromOperating Activities
Period ended

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash Equivalents
at End of Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

22,50821,479(1,701)(18,527)(15,149)
2,304

34,353
28,695

March 31, 2021
September 30, 2020

2. Performance Forecasts for the September 2021 period (April 1, 2021 to September 30, 2021)
and the March 2022 period (October 1, 2021 to March 31, 2022)(Percentages represent projected increases/decreases compared with the results for the preceding fiscal period)
Operating Revenues
Period ending
September 30, 2021
March 31, 2022
Reference:

Millions of yen

36,95034,580Operating Profit% Millions of yen

5.7
(6.4)

Ordinary Profit% Millions of yen

18,0809.7
16,080 (11.1)

17,14015,140

Dividend per Unit
Dividend in Excess
Excluding Excess ofof Earnings per Unit
Earnings

Profit% Millions of yen

10.5(11.7)

%

Yen

Yen

16,6406.9
15,210 (8.6)

11,350
11,100-

Profit per unit forecast = Profit forecast / Number of total investment units forecast for the end of the period(the September 2021 period): 12,010 yen; (the March 2022 period): 10,980 yen.

*Other(1) Changes in Accounting Policy/Changes in Accounting Estimates/Restatements
Changes in accounting policy following revisions to accounting standards, etc.:
Other changes in accounting policy:
Changes in accounting estimates:
Restatements:

None
None
None
None

(2) Number of Units Outstanding
Number of Units Outstanding at End of Period (Including Treasury Units)
As of March 31, 2021
1,385,210 units
As of September 30, 2020
1,385,210 units
Number of Treasury Units at End of Period
As of March 31, 2021
0 units
As of September 30, 2020
0 units
Note: Please refer to the notes regarding per unit information on page 24 for the number of investment units on which the calculations ofprofit per unit are based.

* The Implementation Status of Statutory Audit
At the time of disclosure of these financial results, the audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act have not yet finished.

* Explanation regarding the appropriate use of business operations forecasts, and other special remarks
Estimates for the Company’s future operating results contained in the financial results are forward-looking statements and are basedon information currently available to the Company and certain assumptions deemed reasonable. Actual results may differ substantiallyfrom the projections depending on a number of factors. In addition, these forecasts do not guarantee the stated dividends. As forassumptions underlying performance forecasts, please refer to the table entitled “Assumptions Underlying Performance Forecasts for
the September 2021 period (April 1, 2021 to September 30, 2021) and the March 2022 period (October 1, 2021 to March 31, 2022)”
on pages 7 and 8.

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JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

1. Business Policy and Operations(1)
Business Operations① Results for the Period
Japan Real Estate Investment Corporation (the “Company”) was established on May 11, 2001, following the Act on Investment
Trusts and Investment Corporations of Japan (“ITA”). The Company was listed on the real estate investment trust market of
the Tokyo Stock Exchange (“TSE”) on September 10, 2001 (Securities Code: 8952). Since its IPO, the size of the Company’s
assets (total acquisition price) has grown steadily, expanding from 92.8 billion yen to 1.07 trillion yen*, as of March 31, 2021.
In the same period, the Company continued to grow steadily in the number of properties in its portfolio, from 20 to 73
properties.
During the March 2021 period (October 1, 2020 to March 31, 2021), the Japanese economy, as a whole, is getting back on therecovery track, although the new coronavirus pandemic ("COVID-19") has severely affected some industries such as nonmanufacturing industries, which show signs of weakness in corporate income, etc. The Company considers it is necessary tocontinue to monitor the domestic and international development of the pandemic and the impact of fluctuations in financial
and capital markets.
In the office leasing market, vacancy rates have been on an upward trend against the backdrop of the penetration of telework,
which accelerated in the wake of COVID-19. Rents have turned to a downward trend, but slightly. Against the backdrop ofsuch leasing market trends, the Company strived to secure stable income and occupancy rates for the entire portfolio, attracting
new tenants through strategic leasing activities and further increasing the satisfaction level of existing tenants by improving
the added value of the properties. While demand for office buildings in good locations and high quality continues to be high,the Company considers it is necessary to continue to pay close attention to the impact of changes in work styles and otherfactors in the office leasing market.
In the real estate investment market, property prices remained in a high price range due to the continued favorable financing
environment against the backdrop of continued monetary easing policy. While domestic and overseas investors are highly
motivated to acquire properties, the number of prime office buildings for sale is limited, and the acquisition environment
continues to be challenging.
Under such market conditions, the Company made sound investments under the Investment Guideline of providing stabledividends to unitholders, which was set forth at the time of the Company’s listing on the TSE and remains unchanged to date.
Accordingly, the Company was able to provide a dividend per investment unit at 11,320 yen, which is an increase by 58 yencompared with the previous period.
* The acquisition price includes the selling price (614 million yen) of the part of Jingumae Media Square Building disposed ofon October 30, 2009. The total acquisition price in the subsequent sections follows the same convention.
②

Results of Operations
a. Property Management and Acquisition and Disposition
In the office leasing market in the fiscal period under review, the market was in the above-mentioned environment, andalthough some new contracts were concluded to improve the location and office environment, the occupancy rate at the endof the fiscal period under review decreased by 1.1 % from the end of the previous fiscal period to 97.9 % due to the impactof an increase in the number of terminations and extended downtime, but still remained high.
Although there were no property acquisitions or sales during the fiscal period under review, the Company made a contract on
March 31, 2021 to dispose of the trust beneficiary interest in Otsuka Higashi-Ikebukuro Building (Toshima-ku, Tokyo) for
6,025 million yen. The transfer date is scheduled for August 31, 2021.
As a result of the above, the Company’s portfolio at the end of the fiscal period under review, March 31, 2021, consisted of
73 properties, with a total acquisition price of 1.07 trillion yen. Net rentable floor area stood at 873,873 m2 with 1,497 tenants
in total.
Note: Shibuya Cross Tower (land with leasehold interest), whose building ownership was disposed of on January 18, 2018,
is included in the above number of properties and total acquisition price, but is not included in net rentable floor area or
total number of tenants.

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JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

b. Finance Activities
According to its financial policy, the Company aims to maintain the LTV ratio (ratio of interest-bearing debt to total assets)
at 30% to 40%, and strives to maintain a sound and conservative financial profile by staggering maturities, extension ofdurations and diversification of stable lenders among other possibilities, taking into consideration the borrowing costs andexisting relationships with lenders.
Concerning new loans related to property acquisition and the refinancing of existing loans, the Company carries out loans
strategically and flexibly after giving close consideration to the above-mentioned means, as well as the possibility of
repayment with funds procured from issuing new investment units.
During the March 2021 period, the Company issued Japan Real Estate Investment Corporation 13th Unsecured Bonds inorder to increase the ratio of long-term loans and investment corporation bonds to interest-bearing debt, and borrowed funds
through sustainability-linked loans, a first in the J-REIT industry, as well as borrowing to fund the repayment of existing loans.
As a result of the above financing activities, as of March 31, 2021, the Company’s total interest-bearing debt increased by 0.5
billion yen compared with the previous period, to 419.4 billion yen. This amount consists of long-term loans totaling 358.5
billion yen (including the current portion of long-term loans totaling 51.7 billion yen), short-term loans totaling 18.0 billion
yen, and investment corporation bonds totaling 42.9 billion yen. The current LTV ratio stands at 41.9%.
The Company’s credit ratings as of March 31, 2021 were as follows:
Rating Agency

Credit Rating

S&P Global Ratings Japan Inc.

Long-term: A+; Short-term: A-1; Outlook: Stable

Moody’s Japan K.K.

Rating: A1; Outlook: Negative

Rating and Investment Information, Inc.

Rating: AA; Outlook: Stablec. General Meeting of Unitholders
The Company held the 12th General Meeting of Unitholders on December 10, 2020. The meeting deliberated the proposals
for partial amendments to the Articles of Incorporation, appointment of one executive director, appointment of two
substitute executive directors, appointment of two supervisory directors, and appointment of one substitute supervisory
director. All the proposals were approved and resolved as originally proposed. Following the meeting resolutions, Mr.
Yutaka Yanagisawa, Mr. Tomohiro Okanoya and Mr. Hiroaki Takano were re-elcted as Executive Director and Supervisory
Directors respectively and assumed office as of December 10, 2020. Meanwhile, Mr. Naoki Umeda and Mr. Masaaki Fujino
have been elected as Substitute Executive Directors and Mr. Yoshinori Kiya as Substitute Supervisory Director.
③ Summary of Financial Results and Dividends
As a result of the above operations, in the period under review, the Company’s operating revenues decreased 0.1% comparedwith the previous period, to 34.9 billion yen. On the income front, operating profit decreased 0.1%, to 16.4 billion yen. After
deducting expenses for interest payments on loans and other costs, ordinary profit decreased 0.6%, to 15.5 billion yen, andprofit decreased 0.2%, to 15.5 billion yen.
Turning to dividends, the Company will make cash distributions using earnings based on the dividend policy outlined in
Article 32-1(2) of the Company’s Articles of Incorporation, in an amount that exceeds 90% of profit available for dividends
as required by Article 67-15 of the Special Taxation Measures Act. Based on this policy, the Company decided that the total
amount of dividends, which is calculated by adding the reversal of reserve for tax purpose reduction entry to theunappropriated retained earnings and also securing retained earnings brought forward, is 15,680,577,200 yen for the period
under review, which is a multiple of 1,385,210－the number of units outstanding as of March 31, 2021. Accordingly, thedividend per investment unit is 11,320 yen.
(2) Outlook① Operating Environment
Although the Japanese economy is expected to remain in a difficult situation for some time due to the prolonged COVID-19
pandemic, it is expected to continue to pick up due to the effect of various measures and overseas economic recovery as thelevel of the socio-economic activity has been raised in stages while preventive measures against COVID-19 have been inplace. On the other hand, the Company considers it is necessary to pay close attention to the impact of the re-emergence of
the infectious disease in Japan and abroad, the risk of a global economic downturn due to trade issues between the UnitedStates and China, and fluctuations in financial and capital markets.
In the office leasing market, the Company pays close attention to the impact of the penetration of telework, which has
accelerated due to COVID-19, and other factors, and at the same time, the Company strives to secure stable income and
4

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

maintain and improve asset values over the medium to long term while carefully monitoring trends in the office leasing market
and the business conditions of tenants managed by the Company.
Regarding the real estate investment market, it is important to continue to be proactive in searching for new properties inorder to promote more strategic replacement of our portfolio while paying close attention to future market trends due tochanges in social conditions.
a Property Management
Based on the conditions stated above, the Company will adhere to the following management policies in order to maintainand improve profitability.
(i) Strengthen relationships of trust with existing tenants
The Company has contracts with numerous property management companies. Each property management company has
developed relationships of trust with their tenants through their daily diligence in managing their respective properties
over the years. The Company will work to further solidify these relationships by anticipating tenants’ needs and providing
tailored services to bolster tenant satisfaction, thereby maintaining and improving occupancy rates and raising the rent
levels.
(ii) Fill vacancies promptly
In cooperation with the property management companies mentioned above and their leasing brokers, the Company will
actively seek the most appropriate tenants for each property, based on location and features, in order to fill current andanticipated vacancies without delay. Furthermore, the Company will work to identify additional needs for floor area
among the existing tenants.
(iii) Stabilize revenues and income
With the aim of stabilizing revenues and income, the Company will endeavor to promote fixed lease agreements andsecure long-term leasing with its large-scale tenants.
(iv) Reduce management costs
The Company has introduced sound competitive principles to a number of property management companies so that they
perpetually review and improve their management systems and cost structures. Along with this, the Company endeavors
to ensure and enhance tenant satisfaction.
b Property Acquisitions and Dispositions
The Company has adopted the following policies for acquiring properties.
(i) To access property information quickly, the Company continues to enhance its property information channels whileworking to develop new channels.
(ii) In its acquisition activities, the Company continues to meticulously monitor and examine economic, physical, and legal
factors, including rights-related issues, when selecting properties. In particular, with regard to the structure of buildings,
the Company requires buildings to meet or exceed new earthquake-resistant standards, verifies the need for renovations
by capturing current conditions accurately based on engineering reports, and exclusively targets properties capable ofmaintaining a competitive edge in terms of the facilities they offer over the medium to long term.
(iii) In accordance with its acquisition policies, the Company shall maintain its portfolio so that 70% or more of the portfolio
properties are located within the Tokyo metropolitan area, with the remaining 30% or fewer located in other major cities.
Under these policies, the Company will continue to acquire highly competitive properties. At the same time, in order tofurther improve the quality of its portfolio, the Company will remain open to the replacement of portfolio properties withdue consideration at the right time.
c Financial Policies
The Company has adopted the following financial policies.
(i) In principle, the Company shall maintain an LTV ratio (including investment corporation bonds) below 65%. To ensure
an even lower interest-bearing debt ratio, the Company adopts the conservative target level of 30% to 40%.
5

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(ii) The Company shall set the ceiling for the combined total of loans and investment corporation bonds at 1 trillion yen.
(iii) When obtaining a loan, the Company shall only negotiate with qualified institutional investors (limited to those defined
under Article 67-15 of the Special Taxation Measures Act) before executing a loan agreement.
(iv) With the purpose of maintaining liquidity at an appropriate level, the Company may establish preliminary borrowing
frameworks such as overdraft agreements and commitment line agreements as needed.
(v) In financial transactions, in order to realize low financing costs, the Company aims to achieve the best execution by making
comprehensive judgments on borrowing terms and conditions, such as interest rate levels and borrowing periods.
② Performance Forecasts
The Company’s forecasts for the September 2021 period (April 1, 2021 to September 30, 2021) are as follows: operating
revenues totaling 36.9 billion yen, operating profit totaling 18.0 billion yen, ordinary profit totaling 17.1 billion yen, andprofit totaling 16.6 billion yen. The Company plans to declare a per-unit cash dividend of 11,350 yen.
The Company’s forecasts for the March 2022 period (October 1, 2021 to March 31, 2022) are as follows: operating revenues
totaling 34.5 billion yen, operating profit totaling 16.0 billion yen, ordinary profit totaling 15.1 billion yen, and profit totaling
15.2 billion yen. The Company plans to declare a per-unit cash dividend of 11,100 yen.
Regarding the assumptions underlying these forecasts, please see pages 7 and 8 entitled “Assumptions Underlying
Performance Forecasts for the September 2021 period (April 1, 2021 to September 30, 2021) and the March 2022 period(October 1, 2021 to March 31, 2022).” Operating revenues, operating profit, ordinary profit, profit, and cash dividend perunit might vary depending on changes that could occur in the market situation.

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JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Assumptions Underlying Performance Forecasts for the September 2021 period (April 1, 2021 to September 30, 2021) and the
March 2022 period (October 1, 2021 to March 31, 2022)
Assumption

Item
Accounting
period・The September 2021 period: April 1, 2021 to September 30, 2021 (183 days)
・The March 2022 period: October 1, 2021 to March 31, 2022 (182 days)
・In the September 2021 period, the Company’s portfolio consists of 73 properties as of March 31, 2021, and 72

Number ofproperties heldby theCompany

properties at the end of the September 2021 period, assuming the trust beneficiary interest in Otsuka HigashiIkebukuro Building is disposed of on August 31, 2021.
・In the March 2022 period, the Company’s property portfolio consists of 72 properties at the end of the March

Number ofunits
outstanding

・The Company assumes that the total number of units outstanding is 1,385,210 units, the number as of March 31,

2022 period, assuming the disposition stated above is carried out.
・The actual portfolio may differ from this assumption due to additional property acquisitions and dispositions.
2021.
・The Company maintains an LTV ratio within a range between 30% and 40% as an operational guideline.
・The Company executed a long-term loan of 5.0 billion yen to allocate the loan for the repayment of existing
long-term loans of 5.0 billion yen on April 5, 2021. Moreover, the Company executed a short-term loan of 7.0
billion yen to allocate the loan for the repayment of existing short-term loans of 7.0 billion yen on April 20, 2021.
In addition, the Company executed a long-term loan of 5.0 billion yen to allocate the loan for the repayment ofInterest-bearing
debt

Operatingrevenues

existing long-term loans of 5.0 billion yen on April 26, 2021. As a result, the balance of interest-bearing debt is419.4 billion yen as of May 17, 2021.
・In September 2021 period, as of May 17, 2021, the Company will refinance the long-term loans due forrepayments during the period totaling 14.2 billion yen (repayment dates: June 15, 2021, June 28, 2021, July 20,
2021, and August 31, 2021) and the short-term loans due for repayment during the period totaling 11.0 billion yen(repayment date: May 18, 2021). There are no investment corporation bonds set to mature in the September 2021
period.
・In the March 2022 period, as of May 17, 2021, the Company will refinance the long-term loans due forrepayments during the period totaling 27.5 billion yen (repayment dates: October 1, 2021, November 15, 2021,
December 17, 2021, January 7, 2022, January 17, 2022, and January 31, 2022). There are no investment corporation
bonds set to mature in the March 2022 period.
・Revenues from portfolio properties held by the Company are calculated by taking into consideration the newleases and the tenancy terminations confirmed as of May 17, 2021, and by factoring in potential variables thatreflect the recent office leasing market landscape, such as rent levels and occupancy rates.
・In addition to the above, the revenue is calculated by incorporating, to a certain extent, the impact of the decrease
in rent due to the spread of COVID-19, which is proved at this point in time.

7

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Item

Operatingexpenses

Nonoperating
expensesAssumption
・ Of the taxes applicable to the Company, property taxes, city planning taxes and depreciable property taxes
corresponding to the relevant fiscal period have been recorded as property-related expenses. However, when a property
is acquired at a point during the period used for the calculation of property tax, a property tax adjustment is levied thattakes into account the date of the transfer of the new acquisition. The amount of the adjustment is factored into theacquisition price and therefore not recorded as an expense in the relevant fiscal period.
・Property and other taxes will be 3,410 million yen in the September 2021 period and 3,400 million yen in the March2022 period.
・Depreciation will be 6,240 million yen in the September 2021 period and 6,160 million yen in the March 2022
period.
・Repair expenses may vastly differ from the projected amounts as such costs fluctuate significantly from one fiscal
period to another, and because these costs are not recurring.
・The non-operating expenses, such as interest expenses on loans and investment corporation bonds, will be 950
million yen in the September 2021 period and 940 million yen in the March 2022 period.
・In the September 2021 period, the Company will make a reduction entry on part of the gain of 2,530 million yen forthe disposition of the trust beneficiary interest in Otsuka Higashi-Ikebukuro Building, applying “Exceptions of theTaxation in case of the Replacement by Purchase of Specific Assets” under Article 65-7 of the Special Taxation

Dividend
amounts

Other

Measures Act.
・In the March 2022 period, the Company will distribute dividends of 160 million yen as a return of internal reserves.
・The Company shall not distribute dividends in excess of earnings. Thus, based on its Articles of Incorporation, theCompany shall make cash distributions of the amount that is higher than 90% of profit available for dividends up to
the earnings.
・No revisions will be made in such areas as laws, tax systems, accounting standards, and listing rules as well as
regulations of the Investment Trusts Association, Japan to the extent that impact the above-mentioned forecasts.
・No unprecedented or significant changes will occur to the general market trends or real estate market conditions orother factors.
・Although the above is calculated by incorporating, to a certain extent, the impact of the decrease in rents due to the
spread of COVID-19, which is proved at this point in time, it may fluctuate due to uncertainty in future changes in
COVID-19.
・In addition to the income taxes deferred related to reversal of reserve for reduction entry, etc., the corporate and othertaxes are calculated by taking into consideration the taxes in relation to the amortization of term leasehold interest forbuildings and asset retirement obligations.

8

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

3. Financial Statements(1) Balance Sheets
Thousands of yen
As of September 30, 2020
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Land leasehold interests
Easement
Other
Total intangible assets

9

As of March 31, 2021

21,499,934
7,195,933
430,651
228,047
20,81829,375,384

27,205,981
7,147,852
521,760
135,511
20,94835,032,055

263,978,877(107,639,942)
156,338,934
3,231,736(1,074,576)
2,157,160
3,478,769(2,616,025)
862,743
461,525(307,996)
153,528474,256,178
26,968107,000,367(32,423,749)
74,576,617
1,022,645(368,876)
653,769
802,094(568,526)
233,568
72,089(45,355)
26,733
251,658,301
5,689
960,950,193

265,776,388(111,950,847)
153,825,541
3,232,451(1,127,789)
2,104,661
3,480,509(2,683,808)
796,701
483,514(320,897)
162,617474,256,178
60,380107,362,525(34,437,955)
72,924,570
1,029,596(396,294)
633,302814,862(584,870)
229,991
72,983(48,399)
24,584
251,658,301
11,316956,688,146

5,627,555
828,095
38,7286,494,378

5,611,725
828,095
33,1606,472,981

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Thousands of yen
As of September 30, 2020
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Deposits received from tenants
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for tax purpose reduction entry
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

10

As of March 31, 2021

577,168
1,573,847
95,0281,125,046
3,371,090
970,815,663

577,168
1,573,847
61,736
1,226,601
3,439,354
966,600,481

63,42863,4281,000,254,476

102,101
102,101
1,001,734,637

1,079,870
31,000,000
52,200,000
1,880,176
367,496
8,247
468,126
3,170,806
14,71390,189,438

1,424,904
18,000,000
51,700,000
1,874,124
347,827
11,612
1,145,093
3,172,578
14,142
77,690,282

32,993,175
302,800,000
57,302,113
1,281,107
356,041
30,569394,763,006
484,952,444

42,993,175
306,800,000
57,385,322
1,217,307
359,628
26,345
408,781,778
486,472,061

497,241,216

497,241,216

2,426,375
2,426,375
15,634,440
18,060,815
515,302,031
515,302,031
1,000,254,476

2,424,282
2,424,282
15,597,077
18,021,360
515,262,576
515,262,576
1,001,734,637

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(2) Statements of Income
Thousands of yen
For the period
from April 1, 2020
to September 30, 2020
Operating revenues
Rent revenues
Other lease business revenues
Total operating revenues
Operating expenses
Expenses related to lease business
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensations
Commission expenses
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Dividend income
Reversal of distributions payable
Gain on receipt of donated non-current assets
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings

11

For the period
from October 1, 2020
to March 31, 2021

34,778,422
187,969
34,966,391

34,666,758
277,319
34,944,078

16,649,118
1,456,400
64,692133,043
7,800
89,74367,293
18,468,092
16,498,298

16,648,001
1,433,297
64,705
134,140
7,800
105,520
71,203
18,464,669
16,479,409

122
12,574
1,384
100,456
897
115,434

140
－
1,501
9,166
－
10,807798,168
161,468

754,704
172,899

7,379

11,642

38,133
1,005,149
15,608,583
15,608,583
10,834(1,046)
9,788
15,598,795
35,645
15,634,440

42,355
981,60215,508,613
15,508,613
11,633(63,799)(52,165)
15,560,779
36,297
15,597,077

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(3) Statements of Changes in Unitholders’ Equity
For the period from April 1, 2020 to September 30, 2020
Thousands of yen

Unitholders’ equity
Surplus
Unitholders’capitalVoluntary retained
earnings

Unappropriated retained
earnings

Total
surplusTotal
unitholders’equityTotal
net assets

Reserve fortax purpose
reduction
entry

Total
voluntary
retainedearnings

1,368,194

1,368,194

15,790,904

17,159,098

514,400,314

514,400,314

1,060,273

1,060,273(1,060,273)

－

－

－

(2,092)(2,092)

2,092

－

－

－

Dividends of surplus(14,697,078)(14,697,078)(14,697,078)(14,697,078)

Profit15,598,795

15,598,795

15,598,795

15,598,795

Balance at beginning of
the period

497,241,216

Changes during the period
Provision of reserve for tax
purpose reduction entry
Reversal of reserve for tax
purpose reduction entry

Total changes during
the period
Balance at end of the period－

1,058,181

1,058,181(156,463)

901,717

901,717

901,717497,241,216

2,426,375

2,426,375

15,634,440

18,060,815

515,302,031

515,302,031

For the period from October 1, 2020 to March 31, 2021
Thousands of yen

Unitholders’ equity
Surplus
Unitholders’capitalVoluntary retained
earnings

Unappropriated retained
earnings

Total
surplusTotal
unitholders’equityTotal
net assets

Reserve fortax purpose
reduction
entry

Total
voluntary
retainedearnings

2,426,375

2,426,375

15,634,440

18,060,815

515,302,031

515,302,031(2,092)(2,092)

2,092

－

－

－

Dividends of surplus(15,600,235)(15,600,235)(15,600,235)(15,600,235)

Profit15,560,779

15,560,779

15,560,779

15,560,779

Balance at beginning of
the period

497,241,216

Changes during the period
Reversal of reserve for tax
purpose reduction entry

Total changes during
the period
Balance at end of the period－(2,092)(2,092)(37,363)(39,455)(39,455)(39,455)

497,241,216

2,424,282

2,424,282

15,597,077

18,021,360

515,262,576

515,262,576

12

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(4) Statements of Cash Distributions
For the period
from April 1, 2020
to September 30, 2020

For the period
from October 1, 2020
to March 31, 2021

Amount (Yen)Amount (Yen)I Retained earnings

15,634,440,510

15,597,077,487

2,092,431

120,506,758

15,600,235,020

15,680,577,200(Dividend per investment unit)(11,262)(11,320)

Ⅳ Retained earnings brought forward

36,297,921

37,007,045

II Reversal of voluntary retained earnings
Reversal of reserve for tax purpose
reduction entry
III Cash distribution

Computation Method for Determining

The Company will make cash

The Company will make cash

Dividends

distributions using earnings based on the
cash distribution policy outlined in Article
32-1(2) of the Company’s Articles ofIncorporation, in an amount that exceeds
90% of the “amount of distributableprofit” as set forth in Article 67-15 of theSpecial Taxation Measures Act. Based on
this policy, the Company has decided thatthe total amount of dividends, which is set
not to exceed the unappropriated retained
earnings and also to secure retained
earnings brought forward, is¥15,600,235,020 for the period underreview, which is a multiple of 1,385,210— the number of units outstanding as of
September 30, 2020. Furthermore, theCompany does not pay out dividends thatexceed earnings as outlined in Article 321(3) of the Company’s Articles ofIncorporation.

distributions using earnings based on the

13

cash distribution policy outlined in Article
32-1(2) of the Company’s Articles ofIncorporation, in an amount that exceeds
90% of the “amount of distributableprofit” as set forth in Article 67-15 of theSpecial Taxation Measures Act. Based on
this policy, the Company has decided thatthe total amount of dividends, which is
calculated by adding the reversal ofreserve for tax purpose reduction entry to
the unappropriated retained earnings andalso securing retained earnings brought
forward, is ¥15,680,577,200 for the period
under review, which is a multiple of
1,385,210 — the number of units
outstanding as of March 31, 2021.
Furthermore, the Company does not pay
out dividends that exceed earnings as
outlined in Article 32-1(3) of theCompany’s Articles of Incorporation.

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(5) Statements of Cash Flows
Thousands of yen
For the period
from April 1, 2020
to September 30, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on receipt of donated non-current assets
Amortization of investment corporation bond issuancecosts
Dividend income
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in supplies
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Refund of leasehold and guarantee deposits received
Proceeds from leasehold and guarantee deposits received
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation bonds
Payments of investment corporaion bond issuance costs
Distributions paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

14

For the period
from October 1, 2020
to March 31, 2021

15,608,583
6,628,009(100,456)

15,508,613
6,530,798(9,166)

7,379

11,642(12,574)(122)
959,636(159,133)
425(48,282)(77,877)(23,243)(105,996)(131)(193,103)
37,888(78,517)
22,442,485
12,696(961,191)(14,059)
21,479,931－(140)
927,604(91,109)(129)
92,535(94,763)(19,649)
676,967
131
1,771
33,291(104,128)
23,464,270
140(947,405)(8,269)22,508,736(18,345,844)(1,577,074)(888,636)
2,284,029(18,527,526)(1,431,157)(353,107)(1,340,413)
1,423,621(1,701,056)

39,000,000(37,000,000)
28,000,000(13,000,000)－－(14,695,378)
2,304,621
5,257,026
23,438,840
28,695,867

27,500,000(40,500,000)
31,500,000(28,000,000)
10,000,000(50,315)(15,599,398)(15,149,713)
5,657,966
28,695,867
34,353,833

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(6) Notes Concerning Going Concerns Assumption“Not applicable”(7) Summary of Significant Accounting Policies
Investment securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving averagemethod.
Property and equipment, depreciation and impairment (except for leased assets)
Property and equipment is stated at cost, less accumulated depreciation. The cost of land, buildings and building improvements includes
the purchase price of property and acquisition costs. Depreciation is calculated on a straight-line basis over the estimated useful lives of
the assets ranging as stated below:
Buildings....................................................................... 2-61 years
Structures...................................................................... 2-75 years
Machinery and equipment............................................ 2-18 years
Tools, furniture and fixtures......................................... 2-29 years
Expenditures for repairing expenses are charged to income as incurred. Significant renewals and betterments are capitalized.
The Company reviews fixed assets for impairment whenever events or changes in circumstances indicate that the carrying amount of
its fixed assets may not be recoverable. According to the standard set by the Accounting Standards Board of Japan, companies are required
to recognize an impairment loss in their statement of income if certain indicators of asset impairment exist and the book value of an asset
exceeds the undiscounted sum of future cash flows of the asset. The standard states that impairment losses should be measured as theexcess of the book value over the higher of (i) the fair market value of the asset, net of disposition costs, and (ii) the present value of
future cash flows arising from ongoing utilization of the asset and from disposal after asset use. The standard covers land, factories,
buildings and other forms of property, plant and equipment as well as intangible assets. Fixed assets are grouped at the lowest level forwhich there is identifiable cash flows that are independent of cash flows of other groups of assets.
Intangible assets
Intangible assets primarily consist of leasehold rights and easement, which are stated at cost. Amortization of a term leasehold interest forbusiness use is calculated by the straight-line method based on the period of agreement.
Leased assets
Leased assets under finance lease transactions that do not transfer ownership of the leased assets to the lessees are capitalized anddepreciated by the straight-line method over the lease term with no residual value.
Deferred charges
Investment corporation bond issuance costs are amortized using the straight-line method over the redemption periods.
Investment unit issuance expenses are charged to income as incurred. The underwriters’ economic remunerations for underwriting theoffering are not recognized as investment unit issuance expenses in the financial statements since such costs are not paid by the Company
as commission under the so-called “spread-method”.
Under the spread-method, the difference between the offer price (the price paid by the unitholder) and the issue price (the price received
by the Company) is retained by the underwriters as remuneration.
Revenue recognition
Revenues from leasing of office space are recognized as rent accrued over the lease period.
Taxes on property and equipment
Property and equipment is subject to property taxes and city planning taxes on a calendar year basis. These taxes are generally charged
to income during the period. The sellers of the properties are liable for property taxes for the calendar year including the period from thedate of purchase by the Company through the end of the year since the taxes are imposed on the owner registered on the record as ofJanuary 1 based on the assessment made by the local government. The Company pays the amount equivalent to the property taxes to thesellers applicable to the period since acquisition and includes the amount equivalent to the taxes in the purchase price of each property
and capitalizes it as a cost of the property.
Consumption taxes
Consumption taxes withheld and consumption taxes paid are not included in the statements of income. The consumption taxes paid are
generally offset against the balance of consumption taxes withheld. As such, the excess of payments over amounts withheld are includedin current assets and the excess of amounts withheld over payments are included in current liabilities.
Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks, and short-term investments, which are highly liquid, readily
convertible to cash and with insignificant risk of price fluctuation, with original maturity of three months or less.
Hedge accounting
The Company enters into derivative transactions to hedge against interest-rate risk and other forms of risk based on the risk management
policies outlined in the Company’s Articles of Incorporation. The Company uses interest-rate swap transactions for hedging fluctuationsin interest rates on floating-rate loans. The Company has also executed currency swap transactions as a method of hedging against
15

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

currency exchange fluctuation risks. Deferred hedge accounting is generally used for such interest-rate swaps and currency swap
transactions, and the effectiveness of hedging is measured by comparing the total cash flow fluctuation of the hedged item and that of thehedging instrument since the inception of the hedge.
For interest-rate swaps and currency swaps that qualify for hedge accounting and meet certain criteria provided under Japanese GAAP,
however, the Company applies special accounting treatment. Under such special accounting treatment, the differentials paid or received
under the swap agreements are recognized and included in interest expense of the hedged loans, and the interest-rate swaps and currency
swaps are not required to be separately valued. For interest-rate swaps and currency swaps that meet the specific criteria for such special
accounting treatment, ongoing assessments of hedge effectiveness are not required and hence not performed.

16

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(8) Notes to Financial Statements(Notes to Balance Sheets)a.
Commitment line agreement
The Company has signed commitment line agreements with three banks.
Thousands of yen
As of September 30, 2020b.

As of March 31, 2021

Total amount of commitment line agreement
Debt financing balance

60,000,000－

60,000,000－

Balance

60,000,000

60,000,000

Reserve for tax purpose reduction entry
Thousands of yen
As of September 30, 2020

Reserve for tax purpose reduction entry
Deferred tax liability for the reserve for tax
purpose reduction entry
Total

As of March 31, 2021

2,426,375

2,424,282

1,282,004

1,218,278

3,708,380

3,642,561

Note: Reduction entry is made based on the reserve method, where the requirements of the tax law are met, and deferred tax liability isrecorded in the liabilities section for the future taxable temporary difference related to the amount of the reserve for reduction entry,
and the net amount after deducting the deferred tax liability is recorded in the net assets section as the reserve for tax purpose reduction
entry. This deferred tax liability is recorded (or reversed) as a counterpart account of income taxes-deferred in the statements ofincome.

c.

Minimum net assets required by Article 67, Paragraph 4 of the ITA
Thousands of yen
As of September 30, 2020

As of March 31, 2021

50,00050,000(Notes to Statements of Income)Breakdown of property-related revenues and expenses
Thousands of yen
For the period from April 1, 2020
to September 30, 2020

For the period from October 1, 2020
to March 31, 2021

Property-Related Revenues
Rent revenues
Rental revenues
Common service charges
Parking revenues
Other rental revenues
Other lease business revenues
Cancellation charges
Other miscellaneous revenues

34,966,391
34,778,422
29,118,151
2,585,443
711,241
2,363,586
187,969
102,624
85,34434,944,078
34,666,758
29,084,031
2,501,546
722,895
2,358,284
277,319
98,600178,719

Property-Related Expenses
Expenses related to lease business
Property management expenses
Utilities expenses
Property and other taxes
Casualty insurance
Repairing expenses
Depreciation
Other rental expenses
Property-Related Profits

16,649,118
16,649,118
3,657,166
2,228,640
3,295,586
46,010645,173
6,626,407
150,132
18,317,272

16,648,001
16,648,001
3,792,045
1,959,967
3,295,526
45,983
823,623
6,529,196
201,658
18,296,076

17

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Changes in Unitholders’ Equity)
Total number of investment units issuable
and number of units outstanding

As of September 30, 2020

As of March 31, 2021

Total number of investment units issuable

4,000,000 units

4,000,000 units

Number of units outstanding

1,385,210 units

1,385,210 units(Supplemental Cash Flow Information)
Cash and cash equivalents
The following table represents a reconciliation of cash and cash equivalents as of September 30, 2020 and March 31, 2021:
Thousands of yen
As of September 30, 2020
As of March 31, 2021

Cash and deposits
Cash and deposits in trust
Time deposits with maturities of more than three months
Cash and cash equivalents

21,499,934
7,195,933－
28,695,867

27,205,981
7,147,852－
34,353,833(Financial Instruments)
a. Status of financial instruments(i) Policies for dealing financial instruments
Concerning the financing of property acquisitions, the Company shall use several funding sources including bank loans, the issuanceof investment corporation bonds and the issuance of investment units. When executing such financing activities, the Company
endeavors to retain the ability to secure stable and low-cost financing by maintaining high credit ratings and thereby limiting thefinancial covenants that may restrict the financial flexibility of the Company. To achieve these goals, the Company intends to further
develop and reinforce the confidence of debt holders and rating agencies in the Company by bolstering the capital base and controlling
the loan-to-value ratio (“LTV”) at an adequate level.
In order to hedge against future interest-rate fluctuations, the Company may enter into derivative transactions, which shall be
executed solely for the purpose of hedging against interest-rate fluctuation and other risks, and not for speculative purposes.
With respect to management of excess funds, as a matter of policy the Company uses time deposits as its main vehicle, while
securities and monetary claims are also eligible for such investment.
(ii) Characteristics and risk profile of each financial instrument and risk management system
The Company regularly re-evaluates the appropriateness and effectiveness of its risk management system in order to improve on it.
The characteristics and risk profile of financial instruments and the system in place to manage such risks are as follows:
The deposits, which are typically large time deposits used to manage excess funds, are exposed to the credit risk of the deposit-taking
financial institutions. The Company manages credit risk by restricting the tenor of the deposit to relatively short periods and setting aminimum credit rating requirement for the deposit-taking financial institutions.
The funding proceeds from borrowings and issues of investment corporation bonds are applied mainly to acquire real estate
properties and repay outstanding loans and bonds. While floating-rate short-term and long-term loans are exposed to the risk ofinterest-rate hikes, such risk is mitigated by the Company’s low LTV and relatively high percentage of long-term fixed-rate debts
within the total borrowing. The Company may also exercise hedging by means of derivative transactions (interest-rate swap
transactions) in order to mitigate the risk of fluctuation concerning the floating-rate long-term loans, thereby effectively stabilizing
the overall interest rates on the loans. Foreign currency-denominated loans are also exposed to currency exchange and interest-ratefluctuation risk. However, the Company uses derivative transactions as a method of hedging against these risks (interest-rate andcurrency swap transactions). Foreign currency investment corporation bonds are also exposed to currency exchange risk. However,
the Company uses derivative transactions as a method of hedging against the risks (currency swap transactions). For more detailed
information on the hedge accounting method, please refer to the previous section “(7) Summary of Significant Accounting Policies:
Hedge accounting”.
Loans and investment corporation bonds involve liquidity risk at the time of maturity. To manage such liquidity risk, the Company
implements measures such as ① maintaining and strengthening its ability to access equity markets to secure funds, ② maintaining
commitment lines with major financial institutions (There is no amount outstanding under the facility as of September 30, 2020 andMarch 31, 2021) and ③ preparing monthly financial plans.
(iii) Supplementary note regarding fair value of financial instruments
The fair values of financial instruments presented in this report are based on their market value, and in cases where market values are
not available, reasonably calculated values are presented. Since calculation of fair value is based on certain assumptions, the fair value
could differ depending on the assumptions used. In addition, the contract value of derivative transactions, which is presented in thefollowing section entitled “Derivative Transactions”, is not an exact representation of market risk attributable to derivative transactions.

18

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

b. Fair value of financial instruments
Fair value of financial instruments, their values carried on the balance sheets and the differences between them as of September 30, 2020
and March 31, 2021 are as follows.
The financial instruments whose fair values are extremely difficult to estimate are excluded from the following schedule (Note 2):
Thousands of yen
As of September 30, 2020

Book value *21,499,934
7,195,933(31,000,000)(52,200,000)(32,993,175)(302,800,000)－(1) Cash and deposits(2) Cash and deposits in trust(3) Short-term borrowings(4) Current portion of long-term borrowings(5) Investment corporation bonds(6) Long-term borrowings(7) Derivative transactions

Fair value *21,499,934
7,195,933(31,000,000)(52,285,340)(34,107,600)(305,188,746)－

Difference *－－－(85,340)(1,114,425)(2,388,746)－* Liabilities are shown in parentheses.
Thousands of yen
As of March 31, 2021

Book value *27,205,981
7,147,852(18,000,000)(51,700,000)(42,993,175)(306,800,000)－(1) Cash and deposits(2) Cash and deposits in trust(3) Short-term borrowings(4) Current portion of long-term borrowings(5) Investment corporation bonds(6) Long-term borrowings(7) Derivative transactions

Fair value *27,205,981
7,147,852(18,000,000)(51,806,789)(44,094,756)(307,182,235)－

Difference *－－－(106,789)(1,101,581)(382,235)－* Liabilities are shown in parentheses.
Notes: 1. Measurement of fair value of financial instruments and matters concerning derivative transactions(1) Cash and deposits and (2) Cash and deposits in trust
Due to short tenor, the book values of these assets are reasonable approximations of the present value of these assets and hence usedas their fair value.
(3) Short-term borrowings
Since these loans’ tenor is short and rates are reset at a short interval, the book values of these liabilities are reasonable approximationsof their present value and hence used as their fair values.
(4) Current portion of long-term borrowings and (6) Long-term borrowings
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short term
and their book values are good approximations of their fair values, the book values are presented as their fair values. (However, thefair values of floating-rate long-term loans (please refer to the following “Derivative Transactions, b. Derivatives designated as
hedging instruments”) hedged by an interest-rate and currency swap subject to integrated treatment or by an interest-rate swap subject
to special accounting treatment are calculated by discounting the aggregated principal and interest on such loans using reasonableestimates of the rates that would be applicable if the Company were to refinance the existing loans for the remaining period to maturity
under the prevailing market condition.) The fair values of long-term loans with fixed interest rates are calculated by discounting theaggregated amounts of the principal and the interest of the loans by the rates that are reasonably estimated to be applicable if theCompany were to refinance the existing loans for the remaining period to maturity.
(5) Investment corporation bonds
Their fair values are based on reference prices published by a financial data provider where available. When reference prices are notavailable, their fair values are calculated by discounting the aggregate of the principal and interest by nominal rates assumed
applicable if the loans were refinanced for the duration of the current maturity. (However, the fair values of investment corporation
bonds (please refer to the following “Derivative Transactions, b. Derivatives designated as hedging instruments”) hedged by acurrency swap subject to allocation treatment are calculated by discounting the aggregate of the principal and interest integrated withthe currency swap by nominal rates assumed applicable if the loans were refinanced for the duration of the current maturity.)(7) Derivative transactions
Please refer to the following section entitled “Derivative Transactions”.
2. Financial instruments whose fair values cannot be reliably measured(1) Non-listed stock *1(2) Deposits received from tenants *2

Thousands of yen
As of September 30, 2020
As of March 31, 2021
577,168
577,168
57,302,113
57,385,322*1. With regard to non-listed stock, which does not have a quoted market price in an active market and whose cash flows are not reasonably
estimated, fair value cannot be reliably measured and it is therefore presented at book value.
*2. With regard to deposits received from tenants, which do not have a quoted market price in an active market and reasonably estimatedtenor, their cash flows cannot be reliably measured and they are therefore presented at their book value.

19

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

3. Redemption schedule for monetary claims after the closing dateThousands of yen
As of September 30, 2020
1 year or less

Cash and deposits
Cash and deposits in trust
Total

1 to 2 years

21,499,934
7,195,933
28,695,867———

2 to 3 years

3 to 4 years———

4 to 5 years———

Over 5 years

—
—
—

—
—
—

Thousands of yen
As of March 31, 2021
1 year or less

Cash and deposits
Cash and deposits in trust
Total

1 to 2 years

27,205,981
7,147,852
34,353,833———

2 to 3 years

3 to 4 years

—
—
—

—
—
—

4 to 5 years

Over 5 years

—
—
—

—
—
—

4. Repayment schedule for investment corporation bonds, long-term borrowings and other interest-bearing debt after the closing dateThousands of yen
As of September 30, 2020
Short-term borrowings
Investment corporation bonds
Long-term borrowings
Total

1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Over 5 years

31,000,000—
52,200,000
83,200,000——
51,000,000
51,000,000——
48,500,000
48,500,000—
10,000,000
42,300,000
52,300,000—
10,000,000
52,000,000
62,000,000—
12,993,175
109,000,000
121,993,175

Thousands of yen
As of March 31, 2021
Short-term borrowings
Investment corporation bonds
Long-term borrowings
Total

1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Over 5 years

18,000,000—
51,700,000
69,700,000——
48,500,000
48,500,000—
10,000,000
39,500,000
49,500,000——
54,800,000
54,800,000—
20,000,000
47,500,000
67,500,000—
12,993,175
116,500,000
129,493,175

20

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Derivative Transactions)a. Derivatives not designated as hedging instruments
As of September 30, 2020
“Not applicable”
As of March 31, 2021
“Not applicable”
b. Derivatives designated as hedging instruments
As of September 30, 2020
The contract amount or the equivalent principal amount set out in the contract as of the closing date for each derivative
designated as a hedging instrument is as follows:(Thousands of yen)

Derivative
accounting method
Special Treatment forinterest-rate swap
Integrated Treatment (Special
Treatment and Allocation
Treatment) for interest-rate andcurrency swap

Allocation Treatment for
currency swap

Type ofderivative transaction
Receive floating,pay fixed interest-rate
swap transactions
Receive floating USD,
pay fixed JPY,
interest-rate and currency
swap transactions (withinitial and final exchange)
Receive fixed USD,
pay fixed JPY, currency
swap transactions (withinitial and final exchange)

Hedged item

Contract valueOver one year

Fair value

Measurementof fair value

Long-term
borrowings

57,300,000

46,800,000*1―Long-term
borrowings

10,000,000

10,000,000*1―Investment
corporation bonds

2,993,175

2,993,175*2―

As of March 31, 2021
The contract amount or the equivalent principal amount set out in the contract as of the closing date for each derivative
designated as a hedging instrument is as follows:(Thousands of yen)

Derivative
accounting method
Special Treatment forinterest-rate swap
Integrated Treatment (Special
Treatment and Allocation
Treatment) for interest-rate andcurrency swap

Allocation Treatment for
currency swap

Type ofderivative transaction
Receive floating,pay fixed interest-rate
swap transactions
Receive floating USD,
pay fixed JPY,
interest-rate and currency
swap transactions (withinitial and final exchange)
Receive fixed USD,
pay fixed JPY, currency
swap transactions (withinitial and final exchange)

Hedged item

Contract valueOver one year

Fair value

Measurementof fair value

Long-term
borrowings

46,800,000

26,300,000*1―Long-term
borrowings

10,000,000

10,000,000*1―Investment
corporation bonds

2,993,175

2,993,175*2―*1. The derivative transactions eligible for Special Treatment for interest-rate swap and Integrated Treatment (Special Treatment for interest-rate swap
and Allocation Treatment for currency swap) are accounted for as integral parts of the hedged loans, and the fair value of those derivativetransactions is included in that of the underlying long-term borrowings as of September 30, 2020 and March 31, 2021. Please refer to page 19,
Note 1 of the section entitled “b. Fair value of financial instruments” under “Financial Instruments”, as well as subheadings (4) and (6) concerningderivative transactions.
*2. Currency swap transactions eligible for allocation treatment are accounted for as integrated parts of the hedged investment corporation bonds, andthe fair value of the currency swap transactions is included in that of the underlying investment bonds as of September 30, 2020 and March 31,
2021. Please refer to page 19, Note 1 of the section entitled “b. Fair value of financial instruments” under “Financial Instruments”, as well as
subheading (5) concerning derivative transactions.

21

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Income Taxes)
The Company is subject to Japanese corporate income taxes on all of its taxable income. However, under the Special Taxation Measures
Act, an investment corporation is allowed to deduct dividends of earnings or dividend distributions, paid to unitholders from its taxable
income if certain tax requirements are satisfied. Such tax requirements include dividend distributions in excess of 90% of its profit
available for dividends for the fiscal period as stipulated by Article 67-15 of the Special Taxation Measures Act. The significant
components of deferred tax assets and liabilities as of September 30, 2020 and March 31, 2021 were as follows:

Thousands of yen
As of September 30, 2020
As of March 31, 2021

Deferred tax assets:
Accrued enterprise tax
Amortization of a term leasehold interest
Asset retirement obligations
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Asset retirement obligations
Reserve for advanced depreciation of non-current assets
Total deferred tax liabilities
Net deferred tax liabilities

897
105,861
123,154229,913(127,560)
102,353971
111,337
124,395
236,703(134,276)
102,426

101,455
1,282,004
1,383,460
1,281,107

101,455
1,218,278
1,319,734
1,217,307

The reconciliation of tax rate difference between the adjusted statutory tax rate and the effective tax rate as of September 30, 2020 andMarch 31, 2021 was as follows:
As of September 30, 2020

As of March 31, 2021

34.59%(34.57%)
0.04%
0.00%
0.06%

34.59%(34.97%)
0.04%
0.00%
(0.34%)

Statutory tax rate
Deductible dividend distribution
Change in valuation allowance
Others
Effective tax rate

(Asset Retirement Obligations)
For the six months ended September 30, 2020 and March 31, 2021
Asset retirement obligations reported on balance sheets
The Company acquired Osaki Front Tower on February 1, 2011 under the term leasehold for business use agreement which, at the expiryof the leasehold, obligates the Company to restore the leased land to its original state. At the inception of a lease with such an obligation,
the Company recognized an asset retirement obligation and a corresponding capital asset in an amount equal to the present value of theestimated demolition cost required for the removal of the properties located on the leased land. The present value is calculated using
2.015% as the discount rate over 42 years, which is the term of the leasehold.
Change in the asset retirement obligations for the six months ended September 30, 2020 and March 31, 2021 consisted of the following:Thousands of yen
For the period from April 1, 2020
For the period from October 1, 2020
to September 30, 2020
to March 31, 2021

Balance at the beginning of the period
Increase in tangible fixed assets
Accretion expense
Balance at the end of the period

352,489－
3,551
356,04122

356,041－
3,587
359,628

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Investment and Rental Property)
For the six months ended September 30, 2020 and March 31, 2021
The Company owns primarily a portfolio of office properties in Tokyo and other prefectures in order to gain rental revenue from them.
The book values on balance sheets as of September 30, 2020 and March 31, 2021 and the fair values as of September 30, 2020 andMarch 31, 2021 are as follows:
Thousands of yen

Book value

Fair value

As of March 31, 2020

Change during the period *1

As of September 30, 2020

As of September 30, 2020

955,228,960

12,213,246

967,442,207

1,253,980,000

Thousands of yen

Book value

Fair value

As of September 30, 2020

Change during the period *2

As of March 31, 2021

As of March 31, 2021

967,442,207(4,281,843)

963,160,363

1,255,095,000

Notes: 1. Book value on balance sheets means the acquisition cost less accumulated depreciation.
2. Significant changes*1. As for the increases/decreases for the period, the major reason for the increases was the acquisition of Link Square Shinjuku (¥17,417,790
thousand). The major reason for the decreases was by depreciation.
*2. As for the increases/decreases for the period, the major reason for the decreases was by depreciation.
3. Fair values as of September 30, 2020 and March 31, 2021 are defined as the appraised values provided by an external qualified professional
appraiser. As of March 31, 2021, Otsuka Higashi-Ikebukuro Building, for which the disposition agreement was made dated March 31, 2021, wasvalued at the disposition price.

Profits and losses related to investment and rental property are listed in the “Breakdown of property-related revenues and expenses”
under “Notes to Statements of Income”.
(Segment Information)
For the six months ended September 30, 2020 and March 31, 2021
Since the Company has been engaged in the real estate leasing business using a single segment, segment information has been omitted.
Information on products and services
Since revenues from external customers for a single segment accounted for more than 90% of total operating revenues, segment
information on products and services has been omitted.
Information on geographic area
a. Revenue
Since 100% of total operating revenues was generated from external customers within Japan, a geographical breakdown of revenues
has been omitted.
b. Property and equipment
Since 100% of total property and equipment on the balance sheets was located within Japan, a geographical breakdown of suchproperty and equipment has been omitted.
Information on major clients
Since no single external client represents 10% or more of the Company’s total operating revenues, information on major clients has been
omitted.

23

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Per Unit Information)
The following table summarizes information about net assets per unit and profit per unit as of September 30, 2020 and March 31, 2021
and for the periods then ended, respectively:
Yen

Net assets per unit
Profit per unit

For the period from April 1, 2020
to September 30, 2020

For the period from October 1, 2020
to March 31, 2021

372,002
11,260371,974
11,233

Notes: 1. Profit per unit is computed by dividing profit by the weighted average number of units outstanding during each period.
Diluted profit per unit has not been presented since no warrants or convertible bonds were outstanding during the period.
2. The basis for the computation of profit per unit is as follows:

Thousands of yen
For the period from April 1, 2020
For the period from October 1, 2020
to September 30, 2020
to March 31, 2021

ProfitAmount not attributable tonormal unitholders
Profit applicable tonormal investment units
Average number of units

15,598,795

15,560,779－－

15,598,795

15,560,779

1,385,210 units

1,385,210 units(Subsequent Events)“Not applicable”

24

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(9) Increase/Decrease in Total Number of Units Outstanding
There is no change in the number of investment units outstanding and the amount of unitholders’ capital during the period underreview. Changes in the past five years are as follows.

Date

April 16, 2018

Number of Units Outstanding

Total Unitholders’ Capital(Millions of yen)

Increase/Decrease Balance

Increase/Decrease Balance

Remarks
Issuance of new investment
units (public offering)

69,000 1,378,310

35,659493,675

Notes

＊

1

Issuance of new investment＊26,900 1,385,210
3,565
497,241
units (third-party allocation)*1. New investment units were issued at 533,120 yen per unit (underwriting price of 516,800 yen) for the purpose of funding theacquisition of specified assets and the partial repayment of short-term loans, and in the event there are any funds remaining, cash
reserves.
*2. New investment units were issued at 516,800 yen per unit for the purpose of funding the partial repayment of short-term loans and,in the event there are any funds remaining, cash reserves.
May 9, 201825

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

4. Changes in Officers
Change in officers shall be disclosed in a timely manner once the decision is made.

5. Reference Dataa.

Composition of the Company’s Assets
As of September 30, 2020

Asset type

Real property

RegionTotal ofnet book value*1(¥ million)

Ratio tototal assets(%)

Tokyo 23 wards

518,35151.8

516,639

51.6

Tokyo metropolitan area
(excluding Tokyo 23 wards)*2

41,323

4.1

41,023

4.1

Other major cities

80,6128.1

80,0158.0

640,287

64.0

637,677

63.7

238,275

23.8

237,210

23.7

16,056

1.6

15,9691.6

72,822

7.3

72,302

7.2

327,155

32.7

325,482

32.5

32,812

3.3

38,574

3.9

(－)

(－)

(－)

(－)

1,000,254

100.0

1,001,734

100.0(967,442)(96.7)(963,160)(96.1)

Total
Tokyo 23 wards
Tokyo metropolitan area
Real property
in trust

As of March 31, 2021

(excluding Tokyo 23 wards)*2
Other major cities
Total

Total ofnet book value*1(¥ million)

Ratio tototal assets(%)

Savings and other assets

Total amount of assets*1. Totals of net book value as of September 30, 2020 and March 31, 2021 are based on the total amounts from the balance sheets as of
September 30, 2020 and March 31, 2021, respectively. Real property and real property in trust present the net book values after
depreciation and amortization.
*2. Tokyo metropolitan area encompasses the prefectures of Tokyo, Kanagawa, Chiba and Saitama throughout this document.
*3. The figures in parentheses indicate the value of real property held. Ratios are rounded to the first decimal place.

26

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）b.

Real Estate Investment Property and Trust Beneficiary Rights in Trust of Real Estatei) Outline of real estate and other assets included in the Company's holdings (quick reference guide)
The table below is a quick reference guide outlining the real estate and other assets included in the Company’s holdings as ofMarch 31, 2021.
Number oftenants*1

Leasable floorarea (m2)Occupancy rate*2

Appraisal value
at the end of
period (¥ mil)*3

Book value at theend of period(¥ mil)5*525,678*5100.0%*5

88,00069,70881,555,500

7.6%

MD Kanda
Building

Realproperty

9

6,269

89.5%

9,010

8,571

9,520,000

0.9%

Kandabashi
Park Building

Realproperty

10

3,687

100.0%

5,080

4,396

4,810,000

0.4%

OtemachiFinancial City
North Tower

Realproperty

2

5,112

62.3%

20,70014,554

15,462,900

1.4%OtemachiPark Building

Trust

22

2,372

100.0%

10,500

10,207

10,175,000

1.0%Nibancho
GardenRealproperty

1
*5

9,316
*5

100.0%*5

18,50012,021

14,700,000

1.4%Mitsubishi
UFJ Trust andBanking
Building

Realproperty

10

11,904100.0%

54,90028,67444,700,000

4.2%

Burex
Kojimachi
Building

Realproperty

1

4,495

100.0%

7,370

5,387

7,000,000

0.7%(¥ thousand)

Ratio
*2

Ratio byregion*2Type ofspecified asset
Realproperty

Name ofproperty

RegionTokyo metropolitan area

Tokyo
23
wards

Kitanomaru
SquareAcquisition price*4

78.0%

Sanno Grand
Building

Realproperty

46

20,54598.9%

29,00020,95910,200,000
10,700,000
Total:
20,900,000

Yurakucho
Denki
Building

Realproperty

9

4,697

97.7%

9,040

7,666

7,200,000

0.7%

Front Place
Nihonbashi

Realproperty

2

8,468

100.0%

20,300*6

17,45017,560,000

1.6%

Kyodo
Building(Kayabacho
2Chome)

Trust

10

4,464

100.0%

5,040

4,063

4,410,000

0.4%

Burex
Kyobashi
Building

Realproperty

1

4,279

100.0%

7,670

4,306

5,250,000

0.5%

Ginza
1Chome East
Building

Trust

8

4,513

100.0%

7,930

6,060

6,459,000

0.6%

27

2.0%

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Realproperty
Harumi Center
Real
Building
property
Akasaka Park
Real
Building
property
Aoyama Crystal
Real
Building
property
CloverTrust
Shiba-koen
Harumi Front

Shiodome
Building

Tokyo metropolitan area

Shiba 2Chome
DaimonBuilding
Cosmo
Tokyo 23
Kanasugibashi
wards
Building
Seavans S
Building
Tamachi Front
Building

100.0%

18,90017,099(¥ thousand)

Ratio
*2

16,830,000 1.6%

11

4,255

100.0%

6,340

7,207

5,353,500
2,645,922*7 0.7%
Total:
7,999,422

8

33,369100.0%

40,800*8

26,09631,300,000 2.9%

12

20,812100.0%

21,00021,09226,800,000 2.5%30
*544,999
*5

97.7%
*5

80,70058,03260,800,000 5.7%

9

4,898

100.0%

9,390

7,012

7,680,000 0.7%

9

2,550

100.0%

4,880
*6

4,404

4,500,000 0.4%

Trust

35

44,21399.7%

125,000

100,219

21,250,000
54,600,000
10,100,000
10,450,000 10.0%
10,530,000
Total:
106,930,000

Trust

22

9,611

97.1%

7,870

5,970

4,859,000 0.5%

Trust

7

4,062

100.0%

3,710

2,483

2,808,000 0.3% 78.0%

14

6,074

98.8%

7,160

5,645

5,400,000 0.5%

8

3,792

100.0%

7,930
*6

6,053

6,210,000 0.6%

RealpropertyRealproperty

23,100,000
6,660,000
25,460,000
5.9%
8,460,000
Total:
63,680,000
25,025,000
10,100,000
3.3%
Total:
35,125,000

Shinjuku
Eastside Square

Trust

41

40,940100.0%

74,500*659,706

Shinjuku Front
Tower

Trust

39

21,41696.9%

38,300*6

34,574

ShinwaBuilding

Realproperty

9

6,066

83.1%

9,080

7,704

7,830,000 0.7%

Tokyo Opera
Real
City Building*9 property
Front PlaceMinamiShinjuku
Link Square
Shinjuku

Ratio byregion*2

Realproperty

Book value atthe end of period(¥ mil)Ryoshin Ginza
East Mirror
Building

4,326

Appraisal value
at the end of
period (¥ mil)*3

Number oftenants*1
11

Occupancy rate*2

Type ofspecified asset
Realproperty

Leasable floorarea (m2)Name ofproperty

RegionGinza Sanwa
Building

Acquisition price*4

RealpropertyRealproperty

92

34,971

96.5%

35,60027,9369,350,000
22,426,831
3.0%
Total:
31,776,831

2

4,095

100.0%

9,910
*6

9,302

9,250,000 0.9%

22,767

6,670,000(1,170,000)*10
2.1%
17,300,000
Total:
22,800,000

16

9,786

28

100.0%

23,300JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Book value at theend of period(¥ mil)92.1%

13,3006,674

8,700,000

0.8%

6

3,147

100.0%

7,400

4,805

4,885,000

0.5%

6

5,558

100.0%

10,00010,748

12,200,000
*11

1.1%

27,186

34,600,000(8,076,000)*13
Total:
26,524,000

2.5%

1.4%

Ratio
*2

Shibuya Cross
Tower(Land)

Real
property

Ebisu Neonato

Realproperty

5

8,659

100.0%

19,60013,7063,740,000
360,000
10,512,000
Total:
14,612,000

TIXTOWER
UENO

Real
property

16

15,016100.0%

26,10018,38022,000,000

2.1%

5

5,205

100.0%

6,970

4,237

5,500,000

0.5%

Real
property

1

16,856100.0%

18,500*8

7,644

12,300,000

1.1%

Trust

27

7,706

100.0%

6,230

4,675

5,123,000

0.5%

1.0%

Tokyo
23
Higashi GotandaRealwards 1Chome Building property
Tokyo metropolitan area

Osaki Front
Tower*14
Omori-Eki
Higashiguchi
Building

*12

*12

*12

40,200Harmony Tower

Realproperty

23

14,34095.4%

14,5009,638

8,500,000
520,000
2,100,000
Total:
11,120,000

Otsuka Higashi
Ikebukuro
Building

Trust

5

7,253

98.7%

4,850

3,280

3,541,000

0.3%

Ikebukuro
2Chome Building

Trust

9

2,186

100.0%

1,950

1,565

1,728,000

0.2%

Ikebukuro YS
Building

Realproperty

11

5,932

100.0%

6,100

3,965

4,500,000

0.4%

Hachioji First
SquareRealproperty

4,754

3,300,000
2,379,112
Total:
5,679,112

0.5%

2,442

1,232,000
1,342,000
Total:
2,574,000

0.2%

Tokyo
metroReal
politan Saitama Urawa
Building
propertyarea,
excluding
MM Park
RealTokyo
Building
property
23
wards Queen’s Tower A Trust
Musashi Kosugi
STM Building

Realproperty

45

18

10,068

4,510

94.1%

100.0%

5,010

3,070

78.0%

6.2%

33

38,415

99.3%

41,50030,14237,400,000

3.5%

50

26,66999.3%

23,700*6

15,96917,200,000

1.6%

26

5,378

97.8%

4,660

3,684

4,000,000

0.4%

29

Ratio byregion*2

Appraisal value atthe end of period(¥ mil)*3

7,745

Occupancy rate*2

RealpropertyRealproperty

8

Leasable floorarea (m2)Real
Property

Number oftenants*1

Type ofspecified asset

Name ofproperty

RegionYoyogi1 Chome
Building
Jingumae
Terrace
Jingumae Media
Square Building(¥ thousand)Acquisition price*4

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Type ofspecified asset

Number oftenants*1

Leasable floorarea (m2)Occupancy rate*2

Appraisal value
at the end of
period (¥ mil)*3

Book value atthe end of period(¥ mil)Real
property

8

12,265100.0%

9,640

5,491

7,100,000

0.7%

Jozenji Park Building

Realproperty

18

2,518

76.9%

1,050

946

1,000,000

0.1%

Higashi Nibancho
SquareRealproperty

23

20,526100.0%

14,400*88,394

9,950,000

0.9%

0.3%

(¥ thousand)

Ratio
*2

Other major cities

Sendai Honcho Honma
Building

Trust

28

6,234

100.0%

2,770

2,785

2,924,000
250,000
Total:
3,174,000

AER

Real
property

62

23,612

94.8%

20,70018,106

18,640,000

1.7%

Daido Seimei
Niigata Building

Realproperty

10

3,928

100.0%

1,850

1,718

1,770,000

0.2%

Kanazawa Park
Building

Realproperty

84

20,946

98.7%

6,860

4,424

2,880,000
1,700,000
Total:
4,580,000

0.4%

Kanazawa
Kamitsutsumicho
Building

Realproperty

27

7,213

98.1%

3,170

2,415

2,780,000

0.3%

0.6%

Nishiki Park
Building*15

Realproperty

63*5

10,338
*5

99.2%
*5

5,260

4,910

3,850,000
1,300,000
650,000
175,000
Total:
5,975,000

Nagoya Hirokoji Place

Trust

31

13,20087.9%

13,800*6

7,657

8,567,000

0.8%

Nagoya Hirokoji
Building

Realproperty

42

21,382

99.5%

12,60014,774

14,533,000

1.4%

Nagoya Misono
Building

Realproperty

17

3,448

100.0%

1,550

1,349

1,865,000

0.2%

Shijo Karasuma Center
Building

Realproperty

13

6,634

86.8%

6,950
*6

3,667

4,400,000

0.4%

Umeda Square
Building*16

Trust

38

10,37597.8%

15,80015,677

15,523,520

1.5%

Shin Fujita Building

Trust

47

28,40399.1%

20,00021,06324,000,000

2.2%

Sakaisujihonmachi
Building

Realproperty

3,527

2,264,000
1,900,000
Total:
4,164,000

0.4%

24

11,520100.0%

30

3,890

Ratio byregion*2

Name ofproperty

Region8･3 Square Kita
Building

Acquisition price*4

15.8%

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Number oftenants*1

Leasable floorarea (m2)Occupancy rate*2

Appraisal value
at the end of
period (¥ mil)*3

Book value atthe end of period(¥ mil)Trust

40

20,45099.2%

14,70013,612

6,934,000
7,380,000
Total:
14,314,000

1.3%

Amagasaki Front
Building

Trust

26

15,50091.0%

10,1008,158

9,300,000

0.9%

2,416

4,650,000(555,131)*17
Total:
4,094,868

0.4%

0.3%

Lit City Building

Realproperty

28

8,885

100.0%

4,700(¥ thousand)

Ratio
*2

15.8%

NHK Hiroshima
Broadcasting Center
Building

Realproperty

13

9,881

89.6%

3,550

2,961

1,320,000
1,450,000
Total:
2,770,000

Tosei Tenjin
Building

Realproperty

18

3,995

94.3%

1,710

1,313

1,550,000

0.1%

Tenjin Crystal
Building

Realproperty

30

5,964

100.0%

3,120

3,598

5,000,000

0.5%

Hinode Tenjin
Building

Trust

2

5,944

100.0%

4,700

3,348

3,657,000

0.3%

Total

1,497

873,87397.9%

1,253,920

963,160

1,070,574,154*1.

Ratio byregion*2Type ofspecified asset

Other major cities

Name ofproperty

RegionMidosuji Daiwa
Building

Acquisition price*4

100.0%The total number of tenants is based on the gross number of tenants in each building. Each instance of occupancy of a single tenantleasing space is considered separately on a per property basis even if said tenant leases floor area in multiple properties.
*2. Occupancy rate, ratio of acquisition price and ratio by region are rounded to the nearest first decimal place.
*3. Appraisal value at the end of period is, as a rule, the value assessed by real estate appraisers based on the Company's Articles ofIncorporation and the Cabinet Office Ordinance on Accountings of Investment Corporations. The book closing date is used as theappraisal date and the appraisal value is calculated by Daiwa Real Estate Appraisal Co., Ltd.
*4. Incidental expenses arising from acquisitions are not included in the acquisition price.
*5. Residential portions are not included in the total number of tenants, the occupancy rate or the leasable floor area for Kitanomaru
Square, Nibancho Garden, Akasaka Park Building or Nishiki Park Building. The residential portions for these properties are as
follows: Kitanomaru Square, leasable floor area: 11,694m2, occupancy rate: 98.9%; Nibancho Garden, leasable floor area: 1,686m2,
occupancy rate: 100.0%; Akasaka Park Building, leasable floor area: 10,780m2, occupancy rate: 94.4%; Nishiki Park Building,leasable floor area: 954m2, occupancy rate: 67.9%.
*6. Appraisal values by Japan Real Estate Institute.
*7. This includes the acquisition price of the land and building adjacent to Ryoshin Ginza East Mirror Building dated July 4, 2008, thecost of the adjacent building’s demolition and the total expense of the construction and expansion of the Ryoshin Ginza East Mirror
Building (excluding brokerage fees and other acquisition-related expenses) after its completion on May 24, 2010.
*8. Appraisal values by Chuo Real Estate Appraisal Co., Ltd.
*9. Accompanying the acquisition of Tokyo Opera City Building on September 13, 2005, the Company acquired 33 shares of Tokyo
Opera City Building Co., Ltd. (the business that maintains, services and operates the building) at a total acquisition price of 2,797
thousand yen and inherited the 874 thousand yen deposit made to Tokyo Opera City Building Co., Ltd. by the seller. In an additional
acquisition, on March 24, 2010, the Company acquired 91 shares of Tokyo Opera City Building Co., Ltd. at a total acquisition priceof 7,539 thousand yen. Concurrently, the Company acquired 4,931 shares of Tokyo Opera City Heat Supply Co., Ltd. (the supplierof heat to the building) at a total acquisition price of 566,831 thousand yen, inheriting the 2,360 thousand yen deposit made toTokyo Opera City Building Co., Ltd. by the seller.
Regarding the appraisal value at the end of the fiscal period of the above-mentioned shares, the 124 shares of Tokyo Opera City
Building Co., Ltd. are valued at 10,336 thousand yen and the 4,931 shares of Tokyo Opera City Heat Supply Co., Ltd. are valued
at 566,831 thousand yen.
*10. Because the building was disposed on August 23, 2013, the acquisition price of the building at the time of the land and building
purchase dated March 24, 2004, has been deducted.
*11. This is the acquisition price dated October 9, 2003, and includes a portion of the site disposed on October 30, 2009 (cost ofinvestment sold, 614 million yen).
*12. Because the building portion of Shibuya Cross Tower (land with leasehold interest) was disposed on January 18, 2018, no total
number of tenants, leasable floor area or occupancy rate are provided. Furthermore, the 5,153 m2 portion of land still held is being
31

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

rented to the transferee of the building, Mitsubishi Estate Co., Ltd.
*13. Because the building was disposed on January 18, 2018, the acquisition price of the building at the time of the land and building
purchase dated November 30, 2001, has been deducted.
*14. On acquiring Osaki Front Tower, the Company inherited the land renter’s lease deposit of 1,040,000 thousand yen held by the sellerof the building. The value of the lease deposit was appraised at the end of the fiscal period and remained unchanged.
*15. On acquiring Nishiki Park Building on October 2, 2006, the Company inherited the 9,000 thousand yen lease deposit made by theland renters held by the seller of the building.
*16. Trust assets of the trust beneficiary right acquired by the Company include a claim for 500,000 thousand yen of deposit for
construction to connect to underground shopping centers given to Osaka Shigaichi Kaihatsu Co., Ltd., which was held by theprevious owner.
*17. Because the retail units were disposed on September 28, 2018, the acquisition price of the retail units at the time of the land andbuilding purchase dated February 1, 2006, has been deducted.
*18. In the above quick reference guide, if the real estate or other assets are classified as shared ownership or compartmental ownership,
only the real estate or other assets owned by the Company are presented and the portions owned by the other shared owners orcompartmental owners are excluded.

32

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

ii) Breakdown of property-related revenues and expenses for real estate and other assets included in the Company's holdings
The table below is a quick reference guide outlining the revenues and expenses on each real estate and other asset for the March
2021 period (October 1, 2020 – March 31, 2021). Furthermore, the income summary is presented based on the previously
mentioned “Summary of Significant Accounting Policies.”(Millions of Yen)
Revenues / Expenses (October 1, 2020 – March 31, 2021)
Property- Propertyrelated related
revenues expenses
Property and other
taxes

Repairing expenses

Depreciation
①

711

132

39

97

1

25

414

-

1,038

1,453

38

1,415

230

80

15

11

22

0

2

28

-

149

178

18

160

127

42

2

-

18

0

3

18

-

84

103

9

93

345

179

38

14

51

0

0

74

-

165

240

21

218

183

56

8

10

-

0

0

37

-

126

164

-

164

Nibancho Garden

481

223

61

20

56

0

23

60

-

257

318

8

310

Mitsubishi UFJ
Trust and Banking
Building
Burex Kojimachi
Building
Sanno Grand
Building
Yurakucho Denki
Building
Front Place
Nihonbashi
Kyodo Building(Kayabacho
2Chome)Burex Kyobashi
Building
Ginza 1Chome East
Building
Ginza Sanwa
Building
Ryoshin Ginza East
Mirror Building

981

378

55

45

160

0

25

89

1

602

691

75

615

162

52

-

-

14

0

3

34

-

109

143

74

69

965

353

101

39

123

0

11

76

0

611

688

16

671

275

136

32

19

49

0

7

26

-

139

166

44

122

399

144

23

14

40

0

1

64

-

255

319

1

318

157

52

10

6

12

0

1

22

-

104

126

-

126

158

37

-

-

12

0

2

22

-

120

143

1

141

189

81

14

7

11

0

0

47

-

107

154

-

154

378

154

28

11

85

0

4

24

0

224

249

1

247

167

80

14

7

16

0

1

40

-

86

127

8

118

Harumi Front

1,189

589

132

63

81

1

5

304

-

599

904

0

903

Other expenses

Utilities expenses

MD Kanda
Building
Kandabashi Park
Building
Otemachi Financial
City North Tower
Otemachi Park
Building

Casualty insurance

Property management
expenses

Kitanomaru Square

PropertyNOI
Capitalrelated③(①+②) expend- NCF
profits
itures ③－④
②
④*2

1,750

Name of property

Harumi Center
Building
Akasaka Park
Building
Aoyama Crystal
Building

598

299

76

30

49

0

2

139

-

298

438

1

436

2,308

1,181

238

190

277

3

56

416

-

1,127

1,543

216

1,326

242

103

14

7

33

0

25

21

-

139

160

59

101

Clover Shiba-koen

117

48

9

4

6

0

4

22

-

68

91

1

90

Shiodome Building

2,362

917

179

83

195

1

42

409

4

1,445

1,855

55

1,799

301

156

33

16

40

0

3

61

0

145

206

4

202

124

48

11

5

13

0

1

14

-

76

91

-

91

Shiba 2Chome
Daimon Building
Cosmo
Kanasugibashi
Building

33

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Millions of Yen)
Revenues / Expenses ( October 1, 2020 – March 31, 2021)
Property- Propertyrelated related
revenues expenses
Property and other
taxes

Repairing expenses

Depreciation
①

35

25

0

0

18

43

0

130

173

35

138

Other expenses

Utilities expenses

124

Casualty insurance

Property management
expenses254

Name of property

Seavans S Building

CapitalPropertyexpendNOI
related
NCF
ituresprofits ③(①+②)④*2 ③－④②

Tamachi Front
Building
Shinjuku Eastside
SquareShinjuku Front
Tower

169

66

11

6

14

0

2

31

-

102

134

-

134

1,819

599

103

80

108

1

4

300

0

1,219

1,520

2

1,517

941

358

72

37

61

0

15

171

-

583

754

9

744

Shinwa Building

220

108

27

9

20

0

12

38

0

112

150

15

135

1,582

1,127

*1

*1

*1

*1

455

*1

485

*1

198

85

15

9

25

0

2

30

-

112

143

-

143

636

223

41

25

24

0

-

131

-

412

544

-

544

310

108

28

14

25

0

0

39

0

201

240

-

240

189

61

10

6

20

0

7

16

-

128

144

3

141

229

200

36

14

59

0

43

45

0

29

74

177

(102)

540

85

-

-

85

-

-

-

-

454

454

-

454

478

207

51

15

38

1

4

95

-

271

367

7

359

666

323

64

25

37

1

3

191

-

343

534

12

522

193

74

15

11

14

0

6

25

0

118

144

-

144

Osaki Front Tower

716

449

66

31

26

0

3

224

95

267

491

4

486

Omori-Eki
Higashiguchi
Building

240

116

28

13

25

0

10

39

0

123

162

24

138

Harmony Tower

469

269

149

-

56

0

12

50

-

199

249

-

249

202

98

21

16

12

0

4

42

-

103

146

-

146

71

39

8

4

5

0

12

8

-

32

40

13

27

209

79

17

11

15

0

2

32

-

130

162

-

162

233

117

50

5

26

0

0

34

-

116

151

3

147

127

58

14

8

8

0

8

17

-

68

86

22

63

MM Park Building

1,284

668

137

130

80

1

18

299

0

616

915

38

876

Queen’s Tower A

990

698

203

80

116

2

50

238

6

292

530

145

385

Musashi Kosugi
STM Building

170

101

22

3

12

0

35

27

0

68

96

14

81

Tokyo Opera City
Building*1
Front PlaceMinami- Shinjuku
Link Square
Shinjuku
Yoyogi 1Chome
Building
Jingumae Terrace
Jingumae Media
Square Building
Shibuya Cross
Tower(Land)
Ebisu Neonato
TIXTOWER
UENO
Higashi Gotanda
1Chome Building

Otsuka Higashi
Ikebukuro Building
Ikebukuro 2Chome
Building
Ikebukuro YS
Building
Hachioji First
SquareSaitama Urawa
Building

*1

*1

*1

34

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(Millions of Yen)
Revenues / Expenses (October 1, 2020 – March 31, 2021)
Property- Propertyrelated related
revenues expenses
Property and other
taxes

29

55

23

0

1

70

-

184

254

4

250

52

35

9

5

7

0

1

11

-

17

28

6

22

593

252

71

35

41

0

2

101

0

341

442

0

441

143

67

17

12

16

0

3

18

-

75

93

16

77

660

324

88

45

65

0

0

124

-

335

459

-

459

77

63

13

5

6

0

0

36

-

13

50

7

42

530

324

97

40

67

1

35

82

0

205

288

240

48

141

83

18

13

9

0

1

40

-

57

97

0

97

294

168

54

18

25

0

4

58

6

125

184

23

161

372

177

41

22

35

0

2

74

-

195

269

20

248

592

354

87

35

66

0

6

157

0

237

395

1

394

77

55

10

4

6

0

4

30

-

21

51

1

50

202

101

30

10

11

0

3

44

0

100

145

11

133

464

216

58

21

52

0

5

78

0

248

326

30

295

776

487

91

51

78

1

15

249

-

289

539

48

490

253

139

42

24

36

0

9

26

-

114

140

0

139

564

286

68

37

77

0

3

98

-

278

376

-

376

529

224

65

19

26

0

6

104

1

305

409

9

400

228

106

26

12

16

1

13

35

-

122

157

-

157

237

194

49

20

24

0

16

58

25

42

100

65

34

91

40

13

6

7

0

1

11

-

51

62

-

62

167

122

22

15

19

0

1

63

-

44

108

-

108

182

75

21

15

14

0

1

21

-

107

128

-

128

Depreciation①

NHK Hiroshima
Broadcasting
Center Building
Tosei Tenjin
Building
Tenjin Crystal
Building
Hinode Tenjin
Building

Casualty insurance

Lit City Building

Other expenses

Utilities expenses

181

Repairing expenses

Property management
expenses

8･3 Square Kita
Building
Jozenji Park
Building
Higashi Nibancho
SquareSendai Honcho
Honma Building
AER
Daido Seimei
Niigata Building
Kanazawa Park
Building
Kanazawa
Kamitsutsumicho
Building
Nishiki Park
Building
Nagoya Hirokoji
Place
Nagoya Hirokoji
Building
Nagoya Misono
Building
Shijo Karasuma
Center Building
Umeda Square
Building
Shin Fujita
Building
Sakaisujihonmachi
Building
Midosuji Daiwa
Building
Amagasaki Front
Building

PropertyNOI
Capitalrelated③(①+②) expend- NCF
profits
itures ③－④
②
④*2

365

Name of property

Total
34,944 16,648 3,792 1,959 3,295
45
823 6,529
201 18,296
24,825
2,163 22,661*1. Disclosure of NOI and NCF in the breakdown of the expenses of the property leasing business for Tokyo Opera City Building has
been withheld at the request of the joint owners of the relevant real estate.
*2. Construction expenses that correspond to capital expenditures incurred during the period under review are listed under capital
expenditures. This does not include expenses capitalized as construction in progress, expenses capitalized as furniture, etc., or such
expenses included in the book value as brokerage fees for acquiring real estate or other assets, real estate acquisition taxes or otheracquisition-related expenses.
35

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

c. Condition of Other Assets(i) Shares/Investment Securities
Securities
Tokyo Opera City
Building Co., Ltd.
Tokyo Opera City Heat
Supply Co., Ltd.
Total

Acquisition price(¥ thousand)Appraisal value(¥ thousand)Unit priceAmountUnit priceAmountValuation
gain/loss(¥ thousand)

124

83

10,336

83

10,336

－

*

4,931

114

566,831114

566,831

－

*

－

－

577,168－

577,168

－

－

Notes

Number ofsharesNotes* Appraisal value for relevant non-listed stock are defined as acquisition costs.

(ii) Other Specified Assets
Asset type

Appraisal value(¥ thousand)Unit priceAmountUnit priceAmountValuation
gain/loss(¥ thousand)Book value (¥ thousand)
Quantity

Monetary claim

1

1,040,000

1,040,000

1,040,000

1,040,000

－

－

Total

－

－

1,040,000－

1,040,000－－* Trust beneficiary rights, mainly consisted of the trust asset of real estate, are included in the previous section b. “Real Estate Investment
Property and Trust Beneficiary Rights in Trust of Real Estate”.

36

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

d. Capital Expenditures(i) Schedule for Capital Expenditures
The significant scheduled capital expenditures, such as current plans for repair, maintenance and renovation work on existing
properties, are listed below.
The following scheduled capital expenditures include those accounted for as expenses.
Estimated cost (¥ million)
Name of property(Location)

Kanazawa Park Building(Kanazawa, Ishikawa Prefecture )NHK Hiroshima
Broadcasting Center Building(Hiroshima, Hiroshima Prefecture)

Kanazawa Park Building(Kanazawa, Ishikawa Prefecture)TotalamountPayment amountfor the fiscal underreview period

Total amountalready paid

From April 2021
To December 2021

144

－

－

Upgrade of
air conditioning
facilities

From June 2020
To June 2021

80

－

－

Elevator renewal
construction

From April 2021
To December 2021

56

－

－

PurposeScheduled period

Upgrade of
air conditioning
facilities(ii) Capital expenditures during the period under review
For acquired real estate and other assets, capital expenditures incurred in the period under review totaled ¥2,163 million and repair,maintenance and renovation expenses classified as expenses in the period under review totaled ¥823 million, for a total of ¥2,987
million worth of construction that has been carried out.
The major item in the capital expenditure was the upgrade of air conditioning facilities of Kanazawa Park Building.
Name of property(Location)

Expenditures forconstruction (¥ million)

Purpose

Period(Kanazawa, Ishikawa Prefecture )Upgrade of
air conditioning facilities

From April 2020
To December 2020

220

Jingumae Media Square
Building

Construction work

From September 2020
To January 2021

156

Upgrade ofelectrical equipment

From October 2020
To March 2021

74

Kanazawa Park Building(Shibuya-ku, Tokyo)

Burex Kojimachi Building(Chiyoda-ku, Tokyo)

Other real estate

1,712

Total

2,163

(iii) Money Saved for Long-term Repair Plans“Not applicable”

37

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

e.

Expenses and Liabilities(i) Details on Operation-related Expenses
For the period
from April 1, 2020
to September 30, 2020

For the period
from October 1, 2020
to March 31, 2021

¥1,456,400 thousand¥997,747 thousand¥458,653 thousand¥1,433,297 thousand¥993,010 thousand¥440,286 thousand(b) Asset custody fees

¥64,692 thousand¥64,705 thousand(c) Administrative service fees

¥133,043 thousand¥134,140 thousand(d) Directors’ compensations¥7,800 thousand¥7,800 thousand(e) Commission expenses¥89,743 thousand¥105,520 thousand(f) Other operating expenses¥67,293 thousand¥71,203 thousand¥1,818,973 thousand¥1,816,667 thousand

Item(a) Asset management fees *(breakdown) NOI-linked fee
Distribution-linked fee

Total* In addition to the asset management fees listed above, in the case that a property is acquired, an “acquisition fee” is included in theacquisition cost of the property and paid to the asset management company. In the case that a property is sold, a “disposition fee” isincluded in the loss on sale and paid to the asset management company. These fees are calculated by multiplying the buying/selling
price of the property by a fee rate. In the period ended September 30, 2020, the acquisition fee amounted to ¥86,500 thousand, and in
the period ended March 31, 2021, these fees amounted to ¥0.

38

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）(ii) Borrowings
The condition of loans by financial institutions as of March 31, 2021 is as follows.

Drawdown
date

Balance at
beginning ofcurrent period(¥thousand)

Balance at
end ofcurrent period(¥thousand)Averageinterest
rate *1(%)

Repayment
date

MUFG Bank, Ltd. *3

August 18,
2020

11,000,000

―

0.109

November 18,
2020

Sumitomo Mitsui
Trust Bank, Limited

December 26,
2019

1,300,000

―

0.120

December 28,
2020*4

MUFG Bank, Ltd.

January 15,
2021

―

―

0.11818

January 29,
2021

MUFG Bank, Ltd. *5

November 18,
2020

―

―

0.11909

February 18,
2021

Sumitomo Mitsui
Banking Corporation

March 27,2020

5,000,000

―

0.120

March 29,2021
*6Classification
LenderShort-term borrowings

Sumitomo Mitsui
Trust Bank, Limited

March 30,2020

1,700,000

―

0.120

March 30,2021
*7

Sumitomo Mitsui
Trust Bank, Limited

April 20,2020

2,000,000

2,000,000

0.11308

April 20,2021

MUFG Bank, Ltd.

April 20,2020

5,000,000

―

0.120

April 20,2021
*8Mizuho Bank, Ltd.

April 20,2020

5,000,000

5,000,000

0.11308

April 20,2021

MUFG Bank, Ltd. *9

February 18,
2021―

11,000,000*90.11909

May 18,2021

31,000,000

18,000,000

SubtotalLong-term borrowings

The Yamaguchi
Bank, Ltd.

October 29,
2012

2,000,000

―

0.800

October 29,
2020

MUFG Bank, Ltd.

December 21,
2012

5,000,000―

0.80125

December 21,
2020

MUFG Bank, Ltd.

December 21,
2012

5,000,000―

0.80125

December 21,
2020

MUFG Bank, Ltd.

January 15,
2013

5,500,000―

0.83625

January 15,
2021

MUFG Bank, Ltd.

January 31,
2014

4,000,000―

0.64225

January 29,
2021

The Bank ofFukuoka, Ltd.

January 31,
2014

2,500,000―

0.63849

January 29,
2021

Sumitomo Mitsui
Trust Bank, Limited

January 31,
2014

2,000,000―

0.62575

January 29,
2021

The Iyo Bank, Ltd.

March 24,2014

2,000,000―

0.6035

March 24,2021

MUFG Bank, Ltd.

April 4,2017

5,000,000

5,000,000

0.00064*11

MUFG Bank, Ltd.

April 24,2013

5,000,000

5,000,000

0.775Mizuho Bank, Ltd.

June 15,2012

4,000,000

4,000,000

1.07375

Sumitomo Mitsui
Trust Bank, Limited

December 26,
2016

3,700,000

3,700,000

0.1913

Sumitomo Mitsui
Banking Corporation

January 19,
2018

5,000,000

5,000,000

0.16255

39

April 5,2021
*10April 26,2021
*10June 15,2021*10June 28,2021*10
July 20,2021*10

Repayment
methodUse ofproceeds

Notes

Bullet*2

Unsecured
Unguaranteed
UnsubordinatedBullet*2

Unsecured
Unguaranteed
UnsubordinatedJAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Drawdown
date

Balance at
beginning ofcurrent period(¥thousand)

Balance at
end ofcurrent period(¥thousand)Averageinterest
rate *1(%)

Repayment
date

The Bank ofFukuoka, Ltd.

August 31,
2017

1,500,000

1,500,000

0.1325

August 31,
2021
*10

The Iyo Bank, Ltd.

October 1,
2014

1,000,000

1,000,000

0.46525

October 1,
2021
*10

The Chugoku
Bank, Limited

October 1,
2014

1,000,000

1,000,000

0.4725October 1,
2021
*10

Daishi Hokuetsu
Bank, Ltd. *12(former The Daishi
Bank, Ltd.)

1,800,000

1,800,000

Sony Bank
Incorporated

1,400,000

1,400,000

The Toho Bank, Ltd.

1,400,000

1,400,000

Daishi Hokuetsu
Bank, Ltd. *12(former The
Hokuetsu
Bank, Ltd.)

1,400,000

1,400,000

The Shinkumi
Federation Bank

1,000,000

1,000,000

900,000

900,000

Classification
Lender

The Akita Bank, Ltd.
The Gunma
Bank, Ltd.

November 14,
2014

0.463

Long-term borrowings

900,000

900,000

The 77 Bank, Ltd.

900,000

900,000

The Tochigi
Bank, Ltd.

900,000

900,000

The Fukui Bank, Ltd.

900,000

900,000

The Bank of
Iwate, Ltd.

500,000

500,000

The Higo Bank, Ltd.

500,000

500,000

The Yamagata
Bank, Ltd.

500,000

500,000

Use ofproceeds

Notes

Bullet*2

Unsecured
Unguaranteed
UnsubordinatedNovember 15,
2021
*10

December 17,
2021*10
January 7,
2022*10January 17,
2022*10January 31,
2022
*10

The Nishi-Nippon
City Bank, Ltd.

June 17,2014

2,000,000

2,000,000

0.621

Sumitomo Mitsui
Banking Corporation

January 7,
2013

2,000,000

2,000,000

0.980

Mizuho Bank, Ltd.

January 15,
2013

5,000,000

5,000,000

0.96625

The
Norinchukin Bank

January 31,
2014

3,500,000

3,500,000

0.757

Mizuho Bank, Ltd.

April 24,2013

3,000,000

3,000,000

0.87375

April 25,2022

MUFG Bank, Ltd.

June 15,2012

4,000,000

4,000,000

1.1975June 15,2022

MUFG Bank, Ltd.

June 15,2012

2,500,000

2,500,000

1.2725June 15,2022

Shinsei Bank,
LimitedJune 15,2012

2,500,000

2,500,000

1.2725June 15,2022

40

Repayment
methodJAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Drawdown
date

Balance at
beginning ofcurrent period(¥thousand)

Balance at
end ofcurrent period(¥thousand)Averageinterest
rate *1(%)

Repayment
dateJune 17,2014

3,000,000

3,000,000

0.6785June 17,
2022

The Gunma
Bank, Ltd.

1,000,000

1,000,000

The Shinkumi
Federation Bank

1,000,000

1,000,000

Daishi Hokuetsu
Bank, Ltd. *12(former The Daishi
Bank, Ltd.)

1,000,000

1,000,000

1,000,000

1,000,000

0.3925

August 10,
2022

The Toho Bank, Ltd.

1,000,000

1,000,000

The Fukui Bank, Ltd.

1,000,000

1,000,000

The Tochigi
Bank, Ltd.

500,000

500,000

Classification
LenderThe
Norinchukin BankThe Chugoku
Bank, Limited

August 10,2015Long-term borrowings

MUFG Bank, Ltd.

September 1,
2015

2,000,000

2,000,000

0.47125

September 1,
2022

The Hachijuni
Bank, Ltd.

December 20,
2017

1,000,000

1,000,000

0.1863

December 20,
2022

Development Bankof Japan Inc.

January 7,
2013

3,000,000

3,000,000

1.115

January 6,
2023

Daishi Hokuetsu
Bank, Ltd. *12(former The Daishi
Bank, Ltd.)

January 7,
2016

1,500,000

1,500,000

0.2802January 10,
2023

The 77 Bank, Ltd.

January 10,
2018

1,000,000

1,000,000

0.205

January 10,2023

The Hachijuni
Bank, Ltd.

January 15,
2016

1,000,000

1,000,000

0.265

January 16,
2023

The Iyo Bank, Ltd.

January 15,
2016

1,000,000

1,000,000

0.265

January 16,
2023

Sumitomo Mitsui
Trust Bank, Limited

January 17,
2018

3,000,000

3,000,000

0.210January 17,
2023

Development Bankof Japan Inc.

January 31,
2014

5,000,000

5,000,000

0.9325January 31,
2023

The Yamaguchi
Bank, Ltd.

March 25,2013

1,000,000

1,000,000

0.945

March 24,
2023

The Bank ofFukuoka, Ltd.

March 24,2015

2,000,000

2,000,000

0.5125

March 24,
2023

The
Norinchukin Bank

March 25,2015

3,500,000

3,500,000

0.46825

March 27,
2023

The Chugoku
Bank, Limited

March 26,2018

2,000,000

2,000,000

0.1988March 27,2023

Sumitomo Mitsui
Banking Corporation

November 29,
2018

3,000,000

3,000,000

0.1694

May 29,2023

41

Repayment
methodUse ofproceeds

Notes

Bullet*2

Unsecured
Unguaranteed
UnsubordinatedJAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Drawdown
date

Balance at
beginning ofcurrent period(¥thousand)

Balance at
end ofcurrent period(¥thousand)Averageinterest
rate *1(%)

Repayment
date

Sumitomo Mitsui
Trust Bank, Limited

November 29,
2018

3,000,000

3,000,000

0.1694

May 29,2023

MUFG Bank, Ltd.

June 1,
2017

12,000,000

12,000,000

0.01172*11

June 1,
2023

The Chugoku
Bank, Limited

June 15,2015

3,000,000

3,000,000

0.61175

June 15,2023

The Bank ofFukuoka, Ltd.

June 15,2017

2,500,000

2,500,000

0.2388June 15,2023

MUFG Bank, Ltd.

December 19,
2014

10,000,000

10,000,000

0.42375*13

December 19,
2023

MUFG Bank, Ltd.

March 26,2018

5,000,000

5,000,000

0.00045*11

March 26,
2024

The Hachijuni
Bank, Ltd.

March 26,2018

1,000,000

1,000,000

0.2338March 26,2024

Sumitomo Mitsui
Trust Bank, Limited

May 29,2019

5,000,000

5,000,000

0.075

May 29,2024

The Iyo Bank, Ltd.

June 15,2017

2,500,000

2,500,000

0.275

June 17,2024

The Hachijuni
Bank, Ltd.

June 15,2017

1,000,000

1,000,000

0.275

June 17,2024

MUFG Bank, Ltd.

September 1,
2015

3,500,000

3,500,000

0.630

September 2,
2024

Sumitomo Mitsui
Trust Bank, Limited

September 2,
2015

3,800,000

3,800,000

0.536

September 2,
2024

The
Norinchukin Bank

September 1,
2017

5,000,000

5,000,000

0.240

September 2,
2024

Sumitomo Mitsui
Trust Bank, Limited

September 26,
2019

5,500,000

5,500,000

0.105

September 26,
2024

Taiyo Life Insurance
Company

October 1,
2014

2,000,000

2,000,000

0.7825October 1,
2024

Mizuho Bank, Ltd.

October 1,
2015

2,500,000

2,500,000

0.5575October 1,
2024

The Gunma
Bank, Ltd.

November 18,
2019

1,000,000

1,000,000

0.1264*11

November 18,
2024

MUFG Bank, Ltd.

June 1,
2018

10,000,000

10,000,000

0.2544

December 2,
2024

Shinkin Central Bank

January 7,
2020

2,000,000

2,000,000

0.2075January 7,
2025

The Ashikaga
Bank, Ltd.

January 9,
2018

1,000,000

1,000,000

0.285January 9,2025

Mizuho Trust &Banking Co., Ltd.

March 2,2015

3,000,000

3,000,000

0.5585

March 3,2025

Classification
LenderLong-term borrowings

42

Repayment
methodUse ofproceeds

Notes

Bullet*2

Unsecured
Unguaranteed
UnsubordinatedJAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Drawdown
date

Balance at
beginning ofcurrent period(¥thousand)

Balance at
end ofcurrent period(¥thousand)Averageinterest
rate *1(%)

Repayment
date

MUFG Bank, Ltd.

March 26,2018

2,000,000

2,000,000

0.2725

March 26,2025

Development Bankof Japan Inc.

March 30,2017

5,000,000

5,000,000

0.315

March 31,2025

Taiyo Life Insurance
Company

May 29,2015

1,500,000

1,500,000

0.7375

May 29,2025

Sumitomo Mitsui
Trust Bank, Limited

June 15,2020

7,000,000

7,000,000

0.2075June 16,2025

Sumitomo Mitsui
Trust Bank, Limited

August 31,
2018

3,000,000

3,000,000

0.320

August 29,
2025

Development Bankof Japan Inc.

September 1,
2015

7,000,000

7,000,000

0.7175September 1,
2025

Sumitomo Mitsui
Trust Bank, Limited

September 23,
2020

5,000,000

5,000,000

0.1475September 24,
2025

Mizuho Bank, Ltd.

December 26,
2016

5,000,000

5,000,000

0.3625

December 26,
2025

Sumitomo Mitsui
Trust Bank, Limited

January 29,
2021―

2,000,000

0.1625January 29,
2026

MUFG Bank, Ltd.

February 26,
2018

6,500,000

6,500,000

0.3413February 26,
2026

Mizuho Bank, Ltd.

March 27,2018

5,500,000

5,500,000

0.300

March 27,2026

Shinkin Central Bank

March 30,2017

5,000,000

5,000,000

0.360

March 30,
2026

The
Norinchukin Bank

January 23,
20194,000,000

4,000,000

0.1988July 23,2026

Shinkin Central Bank

September 1,
2017

5,000,000

5,000,000

0.3188September 1,
2026

MUFG Bank, Ltd.

October 31,
2016

3,000,000

3,000,000

0.240

October 30,
2026

Mizuho Bank, Ltd.

December 21,
2016

5,000,000

5,000,000

0.415

December 21,
2026

Shinkin Central Bank

January 23,
20195,000,000

5,000,000

0.2213January 25,
2027

Shinkin Central Bank

April 24,2018

6,000,000

6,000,000

0.3675

April 26,
2027

The
Norinchukin Bank

July 3,2020

2,000,000

2,000,000

0.24375

July 5,2027

The Joyo Bank, Ltd.

January 9,
2018

1,000,000

1,000,000

0.4188January 11,2028

Sumitomo Mitsui
Banking Corporation

January 19,
2018

3,000,000

3,000,000

0.4338January 19,
2028

The Bank ofFukuoka, Ltd.

January 29,
2021―

2,500,000

0.21875

January 31,
2028

Mizuho Bank, Ltd.

March 30,2018

4,000,000

4,000,000

0.3963

March 30,2028

Classification
LenderLong-term borrowings

43

Repayment
methodUse ofproceeds

Notes

Bullet*2

Unsecured
Unguaranteed
UnsubordinatedJAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Drawdown
date

Balance at
beginning ofcurrent period(¥thousand)

Balance at
end ofcurrent period(¥thousand)Averageinterest
rate *1(%)

Repayment
date

MUFG Bank, Ltd.

March 30,2018

4,000,000

4,000,000

0.3963

March 30,
2028

Taiyo Life Insurance
Company

March 30,2018

1,000,000

1,000,000

0.3963

March 30,
2028

Mizuho Bank, Ltd.

November 15,
2019

8,500,000

8,500,000

0.34875

November 15,
2028

Shinkin Central Bank

January 15,
2020

5,000,000

5,000,000

0.325

January 15,2029

Mizuho Bank, Ltd.

November 1,
2019

6,000,000

6,000,000

0.35125

November 1,
2029

MUFG Bank, Ltd.

January 15,
2020

5,500,000

5,500,000

0.3625January 15,
2030

MUFG Bank, Ltd.

April 27,2020

5,000,000

5,000,000

0.35875

April 26,
2030

Mizuho Bank, Ltd.

April 27,2020

5,000,000

5,000,000

0.35875

April 26,2030

MUFG Bank, Ltd.

June 15,2020

4,000,000

4,000,000

0.36125

June 14,2030

MUFG Bank, Ltd.

October 20,
2020―

5,000,000

0.2925October 18,
2030

MUFG Bank, Ltd.

December 21,
2020―

10,000,000

0.2825

December 20,
2030

The Iyo Bank, Ltd.

March 24,2021―

2,000,000

0.17909*11

March 24,
2031

The Yamanashi Chuo
Bank, Ltd.

March 26,2019

2,000,000

2,000,000

0.3688March 26,
2031

The
Norinchukin Bank
*14

January 29,
2021―

5,000,000

0.35625

July 31,
2031

The
Norinchukin Bank
*15

January 29,
2021―

5,000,000

0.3775January 30,
2032

Sumitomo Life
Insurance Company

March 26,2019

1,000,000

1,000,000

0.505

March 27,2034

Sumitomo Life
Insurance Company

December 16,
2019

2,000,000

2,000,000

0.490

December 18,
2034

355,000,000

358,500,000

386,000,000

376,500,000

Classification
LenderLong-term borrowings

Subtotal
Total

*1.
*2.
*3.
*4.
*5.
*6.
*7.
*8.

Repayment
methodUse ofproceeds

Notes

Bullet*2

Unsecured
Unguaranteed
Unsubordinated

The average for floating interest rates is recorded as the weighted average during the period. The average is rounded off to thefifth decimal place. The weighted average for interest rates of loans for which floating interest rates were swapped to fixed rates
in order to hedge the risk of interest rate fluctuations is calculated taking the effect of this swap into consideration.
The purposes of executing these loans are to purchase real properties or beneficiary right of real estate in trust, to repay existingloans, and to fund the redemption of investment corporation bonds.
As of August 18, 2020, MUFG Bank, Ltd. transferred its loan receivable of ¥7,700 million to Mitsubishi UFJ Trust and Banking
Corporation.
The Company made a full repayment (¥1,300 million) before maturity on October 26, 2020.
As of November 18, 2020, MUFG Bank, Ltd. transferred its loan receivable of ¥10,400 million to Mitsubishi UFJ Trust andBanking Corporation.
The Company made a full repayment (¥5,000 million) before maturity on October 27, 2020.
The Company made a full repayment (¥1,700 million) before maturity on October 30, 2020.
The Company made a full repayment (¥5,000 million) before maturity on October 20, 2020.

44

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）*9.

As of February 18, 2021, MUFG Bank, Ltd. transferred its loan receivable of ¥10,400 million to Mitsubishi UFJ Trust andBanking Corporation.
*10. At the end of the period under review, these loans are accounted for under current liabilities on the balance sheets as the current
portion of long-term borrowings.
*11. These are floating rate borrowings which are not swapped into fixed rates.
*12. As of January 1, 2021, The Daishi Bank, Ltd. and The Hokuetsu Bank, Ltd. merged and changed their corporate names to Daishi
Hokuetsu Bank, Ltd.
*13. In order to hedge the risk of exchange rate and interest rate fluctuations related to foreign currency-denominated loans, theCompany conducted an interest-rate and currency swap transaction, which substantially secured exchange and interest rates.
Accordingly, the balance and the weighted average for interest rates during the period are calculated taking the effect of thisinterest-rate and currency swap into consideration.
*14. The applicable interest rate will be lowered by 0.01% from the original rate of 0.35625% for a corresponding period pursuant to
the loan agreement on the condition that either one of the targets set for CO2 emissions reduction and the number of ZEBcertified buildings the Company owns, respectively, is achieved.
*15. The applicable interest rate will be lowered by 0.01% from the original rate of 0.3775% for a corresponding period pursuant to theloan agreement on the condition that either one of the targets set for CO2 emissions reduction and the number of ZEB-certified
buildings the Company owns, respectively, is achieved.

(iii) Investment Corporation Bonds
Outstanding investment corporation bonds as of March 31, 2021 are as follows.
Securities

Date of issue

Balance at
beginning ofcurrent period(¥ thousand)4th unsecured investment
corporation bondSeptember 29,
2005

10,000,000

10,000,0002.56

September 29,
2025

Bullet*1*2

10th unsecured investment
corporation bondMarch 30,2017

10,000,000

10,000,000

0.3975

March 30,
2027

Bullet*1*2 *3

11th unsecured investment
corporation bondOctober 26,
20172,993,175

2,993,175

0.2788October 26,
2027

Bullet*1*2 *3 *4

November 1,
2018

10,000,000

10,000,000

0.23

November 1,
2023

Bullet*1*2

October 26,
2020―

10,000,000

0.20

October 24,
2025

Bullet*1*2

32,993,175

42,993,175

12th unsecured investment
corporation bond(Japan Real Estate
Investment Green Bonds)

13th unsecured investment
corporation bond
Total

Balance at
end ofcurrent period(¥ thousand)Interest
rate(%)

Repayment
periodRepayment
methodUse ofproceeds

Notes*1. The investment corporation bonds are primarily used to fund the acquisition of real properties or beneficiary right of real estate intrust, and to repay existing loans.
*2. Financial covenants, such as a negative pledge, are not included in these bonds.
*3. Bond issuance was limited to qualified institutional investors by a private placement.
*4. For the purpose of avoiding foreign currency risk with respect to foreign currency investment corporation bonds, the Company engages
in currency swap transactions to fix the exchange rates. Considering the effects of the currency swap transactions, the balances andinterest rates are reflected in the schedule.

(iv) New Unit Acquisition Rights“Not applicable”

45

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

f. Examination of the Value of Specified Assets(i) Real Estate, etc.
“Not applicable”(ii) Other
Value inspections on transactions by the Company that are deemed necessary under Article 201 of the ITA, are entrusted to Yoshihiro
Tanaka CPA Office, excluding ones described in (i) Real Estate, etc. above.
During the period from October 1, 2020 to March 31, 2021, there was no transaction that was subject to such inspections.

g. Transactions with Interested Parties (from October 1, 2020 to March 31, 2021)(i) Transactions“Not applicable”(ii) Amount of Commission Fees and Other Expenses
Segment

Property
management
expensesUtilities
expenses
Other
operatingexpenses

Total amount ofcommission fees andother expenses A¥3,792,045 thousand¥1,959,967 thousand¥200,940 thousand

Breakdown of transactions with interested parties
Payment recipient

Amount paid B

Percentage of
total amount
B/A

Mitsubishi Jisho Property
Management Co., Ltd.

¥2,431,521 thousand

64.1 %

Mitsubishi Estate Co., Ltd.

¥169,694 thousand

4.5 %Mitsubishi Real Estate Services
Co., Ltd.

¥39,027 thousand

1.0 %Yuden Building Kanri Co., Ltd.

¥30,041 thousand

0.8 %Mitsubishi Estate Parks Co.,Ltd.
Minato Mirai 21 District
Heating and Cooling Co., Ltd.
Mitsubishi Jisho Property
Management Co., Ltd.

¥1,087 thousand

0.0 %¥69,586 thousand

3.6 %¥14,350 thousand

7.1 %Mitsubishi Estate Co., Ltd.

¥419 thousand

0.2 %Mitsubishi Jisho Sekkei Inc..

¥15,990 thousand

8.0 %*1. Interested parties refers to interested parties of the asset management company who has concluded consignment agreements with theCompany, as stipulated in Article 123 of the enforcement order of the ITA, and Section 26, Paragraph 1, Item 27 of the Regulationsfor Management Reports Concerning Investment Trusts and Investment Corporations of the Investment Trusts Association, Japan.
*2. In addition to the transactions and commission fees listed above, other amounts paid to interested parties, such as orders placed for
repair work, are listed below.
Mitsubishi Jisho Property Management Co., Ltd.
Mitsubishi Estate Co., Ltd.
Yuden Building Kanri Co., Ltd.
Mitsubishi Real Estate Services Co., Ltd.
Izumi Parktown Service Ltd.

¥729,146 thousand¥283,266 thousand¥51,910 thousand¥16,227 thousand¥103 thousand

46

JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

h. Other Announcements(i) General Meeting of Unitholders
The Company’s 12th General Meeting of Unitholders was held on December 10, 2020. The major items deliberated and results thereof
are as follows:
AgendaOverview

Item 1: Partial amendments to the Articles ofIncorporation (No.1)

As per the original proposal, the amendments were made to the Articles ofIncorporation concerning the following points:- The establishment and change on the provision to convene the General Meetingof Unitholders of the Company on a certain date and to partially revise the public
notice procedure, respectively- The establishment of the provision to the effect that the provision of deemedaffirmative voting rights of unitholders shall not apply to some of important
proposals- The change on the provision concerning the basic date for determining
unitholders who can exercise their rights at the general meeting of unitholders- The change on the provision so that the terms of executive directors andsupervisory directors may be extended or shortened within the limits stipulated
by laws and regulations by resolution of the general meeting of unitholders- The change on the provision concerning the timing of payment of audit fees tothe external auditors

Item 2: Partial amendment to the Articles ofIncorporation (No.2)

As per the original proposal, the amendments were made to the Articles ofIncorporation concerning the following point:- The change on the provision concerning the asset management fees is made inaccordance with the establishment of a fee linked to gains on the dispositions ofproperties (the positive value after taking into account the gains and losses on thedispositions of properties), which is the transient source of distributions. The
gains on the dispositions of properties would be excluded from the calculation of
the existing distribution linked fee, of the asset management fees.
Mr. Yutaka Yanagisawa was appointed as Executive Director as originallyproposed. He assumes the position for the duration starting from December 10,
2020 to the conclusion of the general meeting of unitholders to be held byDecember 31, 2022, at which the election of an executive director will be
proposed.
Mr. Naoki Umeda and Mr. Masaaki Fujino were appointed as SubstituteExecutive Directors as originally proposed.
Mr. Tomohiro Okanoya and Mr. Hiroaki Takano were appointed as Supervisory
Directors as originally proposed. They assume the position for the duration
starting from December 10, 2020 to the conclusion of the general meeting ofunitholders to be held by December 31, 2022, at which the election ofsupervisory directors will be proposed.
Mr. Yoshinori Kiya was appointed as Substitute Supervisory Director as
originally proposed.

Item 3: Appointment of one executive director

Item 4: Appointment of two substituteexecutive directors
Item 5: Appointment of two supervisory
directors

Item 6: Appointment of one substitutesupervisory director(ii) Board of Directors
Below is an overview of the important change and the conclusion of major contracts that were accepted by the Company’s Board of
Directors
Date of acceptanceAccepted item

November 16, 2020

Consignment of a generaladministrative work
concerning the issuance ofinvestment corporation bonds

Overview
In connection with the comprehensive resolution adopted on the samedate on the issuance of investment corporate bonds, the approval was
given to the candidate agents to whom an administrative work for thesaid bonds was consigned. Other items necessary for its operation are
entrusted to the executive directors to decide.

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JAPAN REAL ESTATE INVESTMENT CORPORATION（8952）

Selected Financial Data
Millions of yen
For the period from

For the period from

For the period from

For the period from

For the period from

October 1, 2020 toMarch 31, 2021

April 1, 2020 to
September 30, 2020

October 1, 2019 toMarch 31, 2020

April 1, 2019 to
September 30, 2019

October 1, 2018 toMarch 31, 2019

Operating revenues

34,94434,96635,99635,16433,022

Operating expenses

18,464

18,46818,641

18,66918,473Operating profit

16,47916,49817,354

16,494

14,548

Ordinary profit

15,50815,60816,326

15,39013,441

Profit before income
taxes
Profit15,50815,60816,326

15,39013,441

15,56015,59815,755

14,945

13,4311,001,734

1,000,254

982,607966,390963,676

Interest-bearing debt

419,493418,993

401,993389,993389,993

Net assets

515,262

515,302514,400

512,770

511,256

Unitholders’ capital

497,241

497,241

497,241

497,241

497,241

1,385,210

1,385,210

1,385,210

1,385,210

1,385,210

Net assets per unit (Yen)371,974

372,002371,351

370,174

369,082

Cash distribution

15,68015,60014,697

14,124

13,432

Dividend payout ratio(Note 1)Dividend per unit
(Yen)
Net operating income(NOI)
Funds from operations(FFO)
Return on assets(ROA) (Note 2)

100.8%

100.0%

93.3%

94.5%

100.0%

11,32011,262

10,61010,197

9,697

24,82524,943

23,413

23,10422,60322,08922,22519,986

19,795

19,831

1.5%

1.6%

1.7%

1.6%

1.4%

(3.1% annualized)(3.1% annualized)(3.3% annualized)(3.2% annualized)(2.8% annualized)

3.0%

3.0%

3.1%

2.9%

2.6%

(6.1% annualized)(6.0% annualized)(6.1% annualized)(5.8% annualized)(5.3% annualized)

EOP equity ratio(Note 4)
EOP interest-bearing
debt ratio on total
assets (Note 5)
FFO multiple (Times)

51.4%

51.5%

52.4%

53.1%

53.1%

41.9%

41.9%

40.9%

40.4%

40.5%

20.4

16.8

22.0

25.4

22.7

Debt service coverage
ratio (Times) (Note 6)

24.8

24.2

24.3

21.4

19.6

Total assets

Number of units

Return on equity(ROE) (Note 3)

Notes:1.
2.
3.

4.
5.
6.

Dividend payout ratio = Dividend per unit / Profit per unit × 100
ROA = Ordinary profit / Average of Total assets during the period × 100
ROE = Profit / Average of Net assets during the period × 100(Annualized portion of the calculation given in Note 2 and Note 3 assumes a fiscal period of 182 days for the period ended March
31, 2019, 183 days for the period ended September 30, 2019, 183 days for the period ended March 31, 2020, 183 days for theperiod ended September 30, 2020 and 182 days for the period ended March 31, 2021.)
EOP equity ratio = (Net assets at the end of period / Total assets at the end of period) × 100
EOP interest-bearing debt ratio on total assets = (Interest-bearing debt at the end of period / Total assets at the end of period) ×100
Debt service coverage ratio = Profit before Interest, Taxes, Depreciation and Amortization / Interest expenses

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