19 th

Semi-Annual

Report2021.2.1- 2021.7.31

Kenedix Residential Next
Investment Corporation

Ⅰ Overview of KDR

1

2

3

4
1 T-3: KDX Odemma Residence

To our unitholder

5

2 T-96: KDX Residence Ikebukuro West

3 T-95: KDX Residence Shonandai

4 T-99: KDX Residence Kamata-minami II

5 T-78: KDX Residence Toyosu

We would like to express our sincere gratitude to all unitholders and stakeholders for their continued support and cooperatio n.

We are pleased to inform you that Kenedix Residential Next Investment Corporation (KDR) successfully closed all accounts
for the 19th fiscal period (from February 1, 2021 to July 31, 2021). We hereby report on the asset management overview andresults for the 19th Fiscal Period. For the 19th fiscal period, operating revenue was ¥ 9,195million, operating income was¥ 4,822 million, ordinary income was ¥ 4,147 million, and net income was ¥ 4,146 million, resulting in a distribution per unit of¥ 4,117, up 1.3% from the previous fiscal period.
During the fiscal period under review, KDR acquired 3 properties of rental housing and 2 healthcare facilities, and sold 1
residential facility. As a result, at the end of July 2021, our AUM amounted to 161 properties and ¥265.7 billion (totalacquisition price).
In the management of owned properties, the occupancy rate of the portfolio at the end of the fiscal period was 97.4%,
continuing to maintain a high occupancy rate despite the impact of the COVID-19.
Regarding residential facilities, although some properties in the central Tokyo area are still underperforming due todemographic changes, the occupancy rate of the entire portfolio of residential facilities recovered to the level before theCorona disaster toward the end of the fiscal period due to the increase in occupancy rates in other areas than the central
Tokyo area. As for rents, an upward trend continued. On the other hand, healthcare facilities and accommodation facilities
contributed to maintaining the profit stability of portfolio through long-term lease contracts.
As to activities in the 19th fiscal period onward, KDR acquired 1 rental housing property and an equity interest of a silent
partnership whose investment assets are two rental residential facilities and one healthcare facility. As a result, the size of our
AUM as of August 2021 is expected to be 162 properties valued at ¥268.8 billion.

Based on an accurate understanding of social and economic changes, we will pursue with flexibility investment and revenue
opportunities that we believe are the most attractive. We will dynamically invest and manage our portfolio by gathering
information and making decisions swiftly. By using this approach, we aim to maximize the unitholder’s value.
Your continued support and cooperation are highly appreciated.

Executive Director,
Kenedix Residential Next Investment Corporation

Shin Yamamoto
October 15, 2021

Highlights
Distribution
per Unit

20th (Ending January 2022) Forecast¥4,10119th (Ended July 2021) Actual（ Note) Distribution per unit for20th fiscal period and 21stfiscal period is estimatedbased on certain assumptions
as of September 14, 2021

¥4,117

21st (Ending July 2022) Forecast¥4,101

Trend in DPU（note）
（yen）
5,000

¥4,039¥4,026¥4,063¥4,064¥4,065¥4,066Jan.2020(16th Period)

Jul.2020(17th Period)

Jan.2021(18th Period)¥4,117 ¥4,101 ¥4,101

4,000¥3,473¥3,316
3,000

Jul. 2 0 1 7(11th Period)

Jan.2018(12th Period)

Jul. 2 0 1 8(13th Period)

Jan.2019
Jul. 2 0 1 9(14th Period) (15th Period)

Jul.2021(19th Period)

Jan.2022(20th Period)(Forecast)

Jul.2022(21st Period)(Forecast)(Note) KDR implemented a two-for-one split of the investment units as of the record date of February 28, 2018 (Effective date on March 1, 2018). Before the period
ended January 2018 (12th fiscal period), the figures for the distribution per unit are those taking into account the spilt of the investment units.

(million yen)
Operating revenues

Operating Income

Ordinary Income

Net Income

19th Fiscal Period

9,195

4,822

4,147

4,146

18th Fiscal Period

8,382

4,344

3,632

3,631

Portfolio Overview
Total Number of
Properties
Residential
Facilities
Healthcare
Facilities

Accommodation
Facilities

161
133 件
26 件
2件

Total Acquisition
Price (unit: bln yen)

265.7

202.1
Healthcare
58.6
Facilities
Accommodation
4.9
Facilities
Residential
Facilities

Occupancy Rates(at the end of 19th
Fiscal Period)

97.4

%

96.2 %
Healthcare
100.0 %
Facilities
Accommodation
100.0 %
Facilities
Residential
Facilities

2

Feature Article

Management Interview“Grasping changes in social
structure and linking to further
growth”
Head of Residential REIT Department,
Kenedix Real Estate Fund Management, Inc.

Tetsu Kawashima

Vision for Kenedix Residential Next Investment Corporation（1）
Occupancy Rates of Residential Facilities by Area(“KDR”) upon assuming the role of head of investment
My name is Tetsu Kawashima, and I was recently appointed as the
Head of the Residential Department, Kenedix Real Estate FundManagement, Inc. Since joining Kenedix, Inc. (“KDX”) in 2011, I’ve
been involved in investment projects for various assets, including
offices and hotels, and in 2017, I moved to the United States to leadthe investment management business for rental housing in the U.S.
as a representative of a local subsidiary. After returning to Japan in
March this year, I was appointed as Deputy Head of Residential
REIT Department and have since been involved in the managementof KDR under my predecessor, Mr. Sato.
KDR is an investment corporation committed to maximizing the
profits of unitholders by accurately grasping changes in social andeconomic structures and realizing stable rental income and steady
growth of asset size through investment in a broad range ofproperties from residential facilities to healthcare facilities toaccommodations (“spaces where people live and stay”). With
unprecedented disaster brought about by the COVID-19 pandemic,
we are now at a turning point in our social structure. Changes in ourlifestyles and working styles, such as consideration for social
distance and the introduction of remote work, can be seen, and inparticular, the popularization of telework is having a major impact
on people’s decisions on places to live and properties. Thesechanges in social and economic structures are precisely the
moment for KDR to demonstrate its true value, and by grasping theopportunities that arise from these changes, we hope to achieve
further breakthroughs for KDR.

Tokyo Central 8 wards

Other Tokyo Metropolitan Area
Other Regional Areas

98.0% 97.5%
96.8%
96.8%
96.0%

97.6%
95.8%

95.2%
94.5%

94.0%
As of the end of
the 17th Fiscal Period(July 2020)

95.1%
As of the end of
the 18th Fiscal Period(January 2021)

95.5%
As of the end of
the 19th Fiscal Period(July 2021)

Note) The occupancy rates are calculated without the newly -constructedto the contribution of long-term and fixed-rent agreements forproperties acquired after 2020 which were not operated or just began
healthcare
facilities
and accommodations to portfolio stability, theto be operated
at acquisition

main factor was that the occupancy rate of residential facilities
generally recovered to the level before the COVID-19 pandemic
under leasing operations aimed at improving it.
Since the spring of last year when the COVID-19 pandemic began,
there has been a noticeable decline in occupancy rates, especiallyfor properties in the central Tokyo area, which we consider to be
attributable to the outflow of population from the central area to thesuburbs. To deal with the decline in rental demand in the central
area due to these demographic changes, we have been making
efforts to gradually recover the occupancy rate by taking measures
such as adjusting rents or increasing leasing expenses in a timely
manner. On the other hand, rental demand in areas outside ofcentral Tokyo continues to be stable, and rising occupancy rates inthese areas are leading to improved overall performance. (1)Main points of the financial results
for the 19th fiscal period
The actual distribution per unit for 19th fiscal period was 4,117 yen,
an increase of 51 yen from the previous fiscal period. Factors
contributing to the increase include the contribution to earnings ofproperties newly acquired using funds raised through the public
offering conducted in February as well as the contribution of thegain on sale of KDX Residence Sendagaya. In terms of property
management, the occupancy rate of the portfolio as of the end of
19th fiscal period was 97.4%, an improvement of 1.2 points fromthe previous fiscal period and the same level as that of the fiscal
period ended July 2019 before the COVID-19 pandemic. In addition
to the contribution of long-term and fixed-rent agreements forhealthcare facilities and accommodations to portfolio stability, themain factor was that the occupancy rate of residential facilities
generally recovered to the level before the COVID-19 pandemic
under leasing operations aimed at improving it.

Future strategies and outlook① Strategies for External growth and Internal growth
We are now considering changing our investment policy, which isthe premise of our growth strategy. Since the merger with Japan
Senior Living Investment Corporation in March 2018, KDR has
defined “Residential Facilities”, “Healthcare Facilities” and“Accommodations” as its primary investment targets and has been
aiming to maximize unitholder value by capturing stable rental
revenues and achieving sustainable growth in asset size. However,among these three main investment targets, with regard toaccommodations, we have not been able to acquire properties that
contribute to the enhancement of the profitability of KDR
continuously due to the competitive market, and have acquired only
two properties worth 4.9 billion yen as of now. Furthermore, recently,

3

taking into account the situation inwhich the operating environment of■Residential
Primary
hotels and other facilities has
Investment ■Healthcare
deteriorated significantly due to theTarget■Accommodation
COVID-19 pandemic, KDR has
Secondary ■Accommodation
decided to refrain from active
Investment■Childcare
Targetinvestment in accommodation
facilities.
It is believed thatfacilities. It is believed that demand
for accommodations
willdemand
recover
accommodations
will profitability
and accommodation facilities willfor
graduallyregain strong
Change of Investment Policy

as the pandemic subsides in the future, but we still consider such
assets as facing a relatively large risk of fluctuation in profitability
due to economic trends and unexpected external shocking events
when compared with residential facilities and healthcare facilities,
which have maintained stable profitability supported by steady
actual demand even amid the COVID-19 pandemic. In
consideration of these conditions and the risk-return characteristics
of each asset, KDR reconsidered the policy of constructing aportfolio that achieves stability and growth. As a result, KDR
decided to change its investment policy so that its primary
investment targets are residential facilities and healthcare facilities,
while accommodations are positioned as a secondary investment
target.
KDR will aim to achieve further stability and growth of AUM throughinvestment in residential facilities and healthcare facilities as its two
primary targets, and with regard to residential facilities, we intend to
expand the investment target area. As I briefly mentioned in thesection on the results for this fiscal period, demographic trends arechanging at present. Before the COVID-19 pandemic, the annual
net population inflow to the 23 wards of Tokyo hovered around60,000 people, but in 2020, the figure dropped significantly toaround 13,000 people, and between January 2021 and July 2021, it
was 5,654 people, showing a continuous downward trend. On theother hand, each of the figures for net population inflow to the threeprefectures of Kanagawa, Chiba, and Saitama has either increasedor remained flat, but in the breakdown of the figures, the increase in
the population inflow from Tokyo to these three prefectures is seen
as a major change. As the population continues to flow into theTokyo metropolitan area, we will continue to acquire properties with
an emphasis on the Tokyo metropolitan area. However, we will also
aim to build a well-diversified portfolio by proactively grasping
opportunities to acquire properties in the suburbs of central Tokyo
under the situation with the spread of rental demand accompanying
such demographic changes.
In addition, this fiscal period's management results showed thatfamily-type properties performed better than ever in terms ofoccupancy rates and rent increases, and this performance isindicative of the changing preferences for housing. It is also said
that the spread of teleworking has led to an increase in the numberof people who are considering spacious unit-type apartments or
detached houses in order to secure sufficient work space. As the
COVID-19 pandemic moves toward an end in the future, we willneed to continue to monitor the current trends regarding
preferences for residential area and housing type. We will carefully
considerthe factorsof investmentarea and housing
unit
type
and2019)（2）Population
Changesin Tokyo Metropolitan
Area in
2020※(in
aim to acquire properties in order to achieve not only external
Kanagawa
67,789
Tokyobut
Metropolitan
growthalso internal Area
growth in the
future.
+7,44052,044+99,243
60,349（▲1,818）（+148,783）
45,071
Tokyo
Tokyo
Chiba
Chiba
48,22723
Wards+31,125+14,273（+82,982）（+9,538）

Kanagawa

Saitama+29,574+24,271（+29,609）（+26,654）

Unit) people+4,686（▲912）

43,541

Saitama+10,276

59,643+13,034(+64,176)
137,804（+5,696）

49,367

180,213preferences for residential area and housing type. We will carefully
consider the factors of investment area and housing unit type andaim to acquire properties in order to achieve not only external
growth but also internal growth in the future.
Furthermore, in terms of securing opportunities to acquire
properties, in addition to the strength of the various proprietaryroutes that have been cultivated so far, the capital and business
partnership of KDX and the SMFL Group is expected to provide afurther degree of sponsor support. By the support providing
information on properties which meet KDR’s investment criteria andwarehousing function such as establishing a bridge fund, etc., we
believe that we can expand acquisition opportunities and acquire
properties in a more reliable and appropriate timing. We acquired asilent partnership equity interest in August, and the acquisition isintended to secure flexible investment opportunities by creating abridge fund with KDX's support. With the support of our sponsors as
mentioned above, we have five properties in the pipeline that we
can announce at this time. Since the merger, KDR has conductedpublic offerings at a pace of about once a year, and we will continue
to acquire properties in the future. We will achieve growth ofapproximately 20 billion yen per year and aim to achieve AUM of
370 billion yen by 2025.
② Financial strategy and ESG initiatives

I mentioned the sponsor support for property acquisition above, buton the financial side, there is also the expectation of credit
improvement. In January of this year, the outlook was changed to“A+ positive” in JCR's rating, and it could be said that the effects ofthe partnership with SMFL Group were immediately apparent. We
believe that the possibility of upgrading our rating to “AA-” will
increase as we continue to make efforts on the stable managementof KDR, and we expect to further reduce financial costs and build
relationships with new investors and lenders.
In other matters, a total of 17 billion yen in new borrowings andrefinancing was executed between February and August, and thenumber of financial institutions from which we have borrowed totals
17, with 5 new institutions added from the previous fiscal period.
The refinancing also resulted in a longer term and lower interest
rates, and we are continuing to strengthen our financial structure.
In terms of ESG-related issues, part of the refinancing in July wasprocured through a social loan in accordance with the Social
Finance Framework defined by KDR. Under the efforts made thistime, we aim to contribute to the development of the domesticsocial financial market by further enhancing initiatives forsustainability and collaboration with financial institutions that areproactively conducting ESG investment and financing. In addition,
the Seventh Investment Corporation Bonds issued in May were
issued as a social bond in accordance with the same framework. Asa bridge connecting the capital market and the healthcare industry,
we will continue to stably manage healthcare-related facilities thatare part of the social infrastructure and also consider conducting
social finance proactively.
In terms of ESG initiatives in operations, we havebeen implementing various measures such as
obtaining environmental certification for acquired
Other
properties, reducing electricity consumption byTokyo
switching to LEDs, and introducing green leases+6,973（+1,102）in cooperation with tenants. From now on, we
recognize that efforts to reduce greenhouse gas
Otheremissions are an important issue in order toRegional
Areas
address
globalwarming.
Includingthe▲42,409
introduction of renewable energy, I would like to(▲68,244)
think about how we can contribute to theprevention of global warming.

Source) KFM, based on Monthly Report on Internal Migration in Japan published by Statistics Bureau,
Ministry of Internal Affairs and Communications

4

Introduction of Newly Acquired Properties
FeatureH-25 Medical-home Granda Kurakuen
Location

Nishinomiya-shi, Hyogo

Acquisition
Price
Completion

2,709 mi l l i on yen

Operator

November 2020
Benesse Style Care Co.,Ltd.
Hirota Shrine

Kurakuenguchi
Station

Medical-homeGranda Kurakuen

Hankyu Koyo
Line
ShukugawaCherry Blossom
StreetShukugawastationHankyu Kobe
Line

Located on the hill in Kurakuen, a famous cherry
blossom viewing spot

calls and a barrier-free design is adopted. The property also

The property is adjacent to Kurakuen, which is one of the quiet

and functional training room, a library/theater room for enjoy

and most high-end residential areas in the Osaka–Kobe area andreading and watching movies, etc.

has a wide variety of common spaces, including a dining room

located about 15-minute walk from the "Kurakuenguchi" Station
The

Status of Operations

property has a sense of openness

This healthcare facility isand excellent views on the highoperated by Benesse

ground surrounded by a rich nature,

StyleCare Co., Ltd., one of theand plenty ofindustry-leading companies.

on the Hankyu Koyo Line.

convenientlivingfacilities in the vicinity.

Among the private senior home with nursing care operated by
Benesse Style Care Co., Ltd., the facility named "Medical-

High-quality facilities withhome" is a competitive facility providing residents witha diverse menu of services

extensive daily life and nursing support services. It is staffed

All the rooms in the property arewith nurses 24 hours a day, 365 days a year, in addition to

private rooms to ensure private

care workers. It also provides residents with terminal carespace, with floor heaters and nurse

through collaboration with cooperating medical institutions.

OthersT-97

KDX Residence
Tennocho■ Residential facilities

T-98

KDX Residence
Kawasaki

T-99

KDX Residence
Kamata-minami II

H-26■ Healthcare facilities
Rihabili-homeGranda Kobe Kitano

Kobe-shi,
Hyogo
Acquisition 1,720 mi l l i on yen
Price
Completion February 2016
Location

Yokohama-shi,
Kanagawa
Acquisition 843 million yen
Price
Completion February 2020
Location

Kawasaki-shi,kanagawa
Acquisition 910 million yen
Price
Completion December 2020
Location

Ota-ku,Tokyo
Acquisition 780 million yen
Price
Completion April 2021
Location

Operator

Benesse Style Care
Co.,Ltd.

5

Sustainability
Initiatives for Environment
DBJ Green Building Certification （Note 1）

GRESB Real Estate Assessment

12 residential properties are certificated. (Obtained reassessment for
3 properties in January 2021)
KDX Rersidence Toyosu

KDX Residence Yotsuya

KDX Daikanyama
Residence
KDX Residence Higashi SakuraⅠ
KDX Residence Ohori
Harbor View Tower
KDX Sakaisuji Hommachi
Residence
KDX Residence
Hommachibashi

Ashiya Royal Homes

The Investm ent Corporation
participates in GRESB Real Estate
Assessment and acquired “Green Star”
rating for four consecutive years and“ 2 Stars “ rating in 2021.

KDX Residence Ebisu
KDX Residence Hanzomon
Serenite Kobe Motomachi
KDX Residence Shukugawa
Hills

LED Lights in Common Areas(Note 2）
Total(after 2015)

Property (props)

66

Expense (mln yen)

132.4

Cumulative annual costsavings (mln yen)

31.4

GRESB (Ex Global Real Estate
Sustainability Benchmark) is abenchmark to evaluatesustainability performance ofprivate and listed real estate
portfolio, etc. fromenvironmental and social
perspectives.

Bicycle Stations for Rent
Location

8 Residential Properties.
A part of the site of the property isprovided as a base for electric bicycles
for rent for the purpose of reducing theenvironmental load and servicing
residents and surrounding residents.

Note 1: “DBJ Green Building Certification” is a system established by Development Bank of Japan to support real estate that meets environmental and social conditions.
Note 2: “Cumulative annual cost savings ” is calculated based on the presentation materials from construction company as of exchanging construction. And it includes
reductions in electricity charges paid by lessees (operator) at healthcare facilities.

Initiatives for Social
Issuance of Social Bonds

Employees Support Program Related to COVID-19■ KDR became the first J-REIT to issue social bonds inDecember 2019
■ Received “Social 1 (F),” the highest rating of
the “JCR Social Finance Framework Assessment ”■ Providing an opportunity for investors who want tomake ESG investments has attracted a broader
range of investors and diversified fundprocurement channels
Summary of the Investment Corporation Bonds (Social Bonds)

6th Bond

7th Bond

1

Maturity

10 years

10 years2

Issue size

¥2.0 bln¥1.7 bln

3

Yield
Month ofissue

0.750%

0.720%

December 2019

May 2021

4

5

To repay loans
borrowed for the
To acquire an asset
Use of funds acquisition of assets eligible for social
eligible for social
financefinance

Vaccination Leave
When employees (including contract workers) get vaccinatedduring working hours, they are regarded as working during
working hours. If employees themselves have difficulty
working due to the occurrence of side effects after
vaccination, they may be allowed to take special paid leavefrom the date of vaccination or the next day
Support for PCR Testing Costs
In case that an employee (including contract workers) has
subjective symptoms of suspected infectious disease, or
PCR testing is required for work, or a person in attendance at
an internal or external meeting tests positive, the company
will cover the cost of PCR testing.
Remote Work and Staggered Working Hours
Employees (including contract workers) are allowed to workfrom home to a certain extent depending on the situation of
the spread of COVID-19. KFM also allow employees to adjust
their starting time between 7:00 and 11:00 to avoid
commuting during busy traffic hours.

6Overview of Portfolio

Percentage
of properties
owned byarea

Hokkaido

7 props. 3.0％

：Residential Facilities：Healthcare Facilities：Accommodations

Aomori・Akita

2 props. 0.9％

Osaka Metropolitan Area

Total

Osaka, Kyoto, Hyogo, Shiga

162 props.

31 props.
22.1％

Miyagi3 props. 1.1％
Fukuoka

6 props.

Tokyo Metropolitan Area

3.8％

Tokyo, Kanagawa, Saitama, Chiba

106

props. 65.3 ％Aichi

6 props.

Hiroshima

1 prop. 0.2％

3.6％

Portfolio breakdown
Residential Facility

Healthcare Facility
Accommodations

Family21.4%

Healthcare （1prop.）
Facility
Private Senior

42.0%

Homes (Residential)

21.8%

Small
Family（26 props.）

36.6%

19.9%
(５props.)FacilityType
Private Senior Homes(with nursing care)

6.8%（4props.）

71.0%（16props.）

Use
Other 2.4%
Other
Regional Area

Tokyo Central
8 Wards

Other Regional Area

36.0% Residential Facility

27.8%（134props.）
Other Tokyo
23 Wards

24.5%

Tokyo Metropolitan Area

72.2%

Tokyo
Metropolitan
Area

10.5%

76.4%

Area

11.6%

Serviced Senior
Housing 2.4％

1.8%（2props.）

SingleRoom Type

Other Tokyo
Metropolitan Area

Nursing and Health Facility

Area
Osaka
Metropolitan Area

Three Major
Metropolitan
Area

87.2

38.1%

49.1%
%

(Note ) The percentages are based on the acquisition price of assets acquired as of August 2, 2021.

7

Investment Unit
Investment Unit Price (After Announcement of the Merger)
KDR unit price

TSE REIT index

TSE residential REIT index

2 6 0 ,0 0 0
2 4 0 ,0 0 0
2 2 0 ,0 0 0
2 0 0 ,0 0 0
1 8 0 ,0 0 0

Nov.10, 2017
Announcement ofmerger

Sep.7 , 2018
Announcement of inclusion
in index

Jul.13 , 2018
Announcementof the 4th PO
Mar.1 , 2018
Completionof merger

As of July 31, 2021

■Volume (Right axis)（yen）

Feb.10 , 2020
Announcement of the 6th PO（unit

Feb.15 , 2021
Announcement of
the 7th PO

4 5 ,0 0 0
4 0 ,0 0 0
3 5 ,0 0 0

Feb.4 , 2019
Announcement of the 5th PO

3 0 ,0 0 0
2 5 ,0 0 0
2 0 ,0 0 0

1 6 0 ,0 0 0

1 5 ,0 0 0

140,000

1 0 ,0 0 0

1 2 0 ,0 0 0

5 ,0 0 0

1 0 0 ,0 0 00Nov. 10 Jan. 10
2017
2018

Note 1:
Note 2:

Jul. 102018

Jan. 10
2019

Jul. 102019

Jan. 10
2020

Jul. 102020

Jan. 102021

Jul. 102021

KDR investment unit price and TSE Residential REIT index are based on the closing price. For the TSE Residential REIT in dex, an index
based on the November 10, 2017 closing prices of this index and KDR investment units is used.
KDR implemented a two-for-one split of the investment units as of the record date of February 28, 2018 (Effective date o n March 1, 2018).
The above figures for the unit price before the split are those calculated by dividing the actual unit price by two.

Composition of Unitholders (based on number of units)■Foreign companies■Individuals and others ■Financial institutions

19th Fiscal Period
995,883 units

18th fiscal Period
951,258 units■ Other domestic companies■Security firms

6.6 %

69.1 %

16.8 %

4.1 % 3.5%

7.8 %

70.6 %

15.4 % 3.7 % 2.5%

The Investment Corporation discloses a variety of information on its website, including press
releases, financial results, property information and IR event information. The Investment
Corporation will continue to make efforts to provide information to its unitholders in a timely
manner.
https://www.kdr-reit.com/

8Unitholders’benefit programs
Seikatsu Kagaku Un-Ei Co., Ltd.
Benefits

Eligible
PersonFacilities
Available

・One-day facility site-visit(lunch included) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree) ※A residentof the requested healthcare facility and a use inconjunction with other discount systems are
ineligible.
All of the private senior homes with nursing care
operated by Seikatsu Kagaku Un-Ei Co., Ltd. as ofJuly 31,2021.

The No. of
25 facilities
Facilities
Tokyo, Saitama, Chiba, Kanagawa, Shizuoka, Aichi,
Area
Kyoto, Hyogo, Osaka
Contact+81-120-580-731
No.
Property
owned by N/A
KDR

Sompo Care Inc.

Benefits

Ⅰ. Sompo Care LAVIERE・≪On the condition of lump sum payment≫3%
discount from the initial lump sum payment forresident・ ≪ On the condition of monthly payment ≫ 3%
discount of the amount equivalent to the rent outof the monthly payment (Until the contract ends)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S,
Sompo no ie GH, Private senior homes(residential), Serviced senior housing, Group
homes
・3% discount of the amount equivalent to the rentout of the monthly payment or of the rent (Until
the contract ends)

Eligible
PersonUnitholder and his / her spouses and his / herrelatives (within the second degree)※A user who has inquired this benefit throughagencies, a resident of the requested healthcare
facility and a use in conjunction with otherdiscount systems are ineligible.

Facilities
Available

Ⅰ. Sompo Care LAVIERE operated by Sompo Care
Inc as of July 31,2021. (Excluding short-term use)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S,
Sompo no ie GH, Private senior homes(residential), Serviced senior housing, Grouphomes operated by Sompo Care Inc. as of July
31,2021.
(Facilities for short-term use and Facilities operated
by its franchisees and operating partners are
excluded.)

Homepage https://www.seikatsu-kagaku.co.jp/

CENTURY LIFE CORPORATION
Benefits

Eligible
PersonFacilities
Available

・One-day facility site-visit (lunch included) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility anda use in conjunction with other discount systems
are ineligible.
All of the private senior homes with nursing careand serviced senior housing operated by CENTURY
LIFE CORPORATION as of July 31,2021.

The No. of
10 facilities
Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Osaka

Contact+81-120-580-731
No.
Property
owned by N/AKDR

The No. of
433 facilities
Facilities
Hokkaido, Iwate , Miyagi, Akita, Saitama, Chiba,
Tokyo, Kanagawa, Shizuoka, Aichi, Kyoto, Osaka,
Area
Hyogo, Nara, Okayama, Hiroshima, Fukuoka,
Kumamoto
Contact
No.

+81-120-37-1865

Homepage https://www.centurylife.co.jp/

Property
owned by Sompo Care LAVIERE Kobe Tarumi
KDR
Homepage https://www.sompocare.com/

SENIOR LIFE COMPANY

HITOWA Care Service Co., Ltd.

・

Benefits≪ On
thecondition
of
lump
sum
payment ≫Discount on lump sum payment forresident ( ¥ 300,000 discount)・Trial residence free of charge (1-night, 2-day stay,with dinner and breakfast)・ One-day facility site-visit (with lunch) free ofchargeEligible
PersonUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility anda use in conjunction with other discount systems
are ineligible

Facilities
Available

All of the private senior homes with nursing care
and apartment for the elderly operated by LIXILSENIOR LIFE COMPANY as of July 31,2021.

The No. of
5 facilities
Facilities

Area

Tokyo, Fukuoka

Contact+81-120-678-723
No.
Property
owned by N/A
KDR

Benefits

・Discount on usage charge for two-monthequivalent

Eligible
PersonUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility andan application through agencies are ineligible

Facilities
Available

All of the private senior homes with nursing care
operated by HITOWA Care Service Co., Ltd as ofJuly 31,2021.

The No. of
117 facilities
Facilities
Area

Hokkaido, Miyagi, Saitama, Chiba, Tokyo,
Kanagawa, Nagano, Aichi, Hyogo, Okinawa

Contact
No.

+81-120-12-2943

Property
Irise Kamata/Yuseien , Irise
owned by
Nishioka, Izarie Eniwa Building
KDR
Homepage https://www.irs.jp/

Homepage https://www.felio.life/9

Nichii Carepalace Company
Benefits

Eligible
PersonFacilities
Available

・Discount on initial move-in costs
Nichii home: ¥ 100,000, Iris Garden: ¥ 50,000 (taxincluded)Unitholder and his / her spouses and his / her relatives(within the third degree)※A user who has inquired this benefit throughagencies, a resident of the requested healthcare
facility of Nichii home or Iris garden, and an use inconjunction with other discount systems are ineligible.
All of the private senior homes with nursing care
operated by Nichii Carepalace Company as of July
31,2021.
※Excluding facilities that are no longer operated by
Nichii Carepalace Company due to a change inoperator after July 31, 2021

The No. of
81 facilities
Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Shizuoka

Contact No. +81-120-555-800
Property
owned by
KDR

Nichii Home Nakano-Minamidai, Nichii Home Tama
Plaza

CARE TWENTYONE CORPORATION
Benefits

Eligible
PersonFacilities
Available

・ One-day facility site-visit(with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility is
ineligible and a use in conjunction with otherdiscount systems are unavailable.
All of the private senior homes with nursing care
operated by Care twenty one Corporation as of July
31,2021.

The No. of
44 facilities
Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Aichi, Kyoto,
Osaka, Hyogo, Hiroshima

Contact
No.

+81-120-944-821

Property
owned by Plaisant Grand Ota tamagawa
KDR
Homepage https://www.care21.co.jp/

Homepage http://www.nichii-carepalace.co.jp/

Sawayaka Club Corporation

Benefits

Eligible
PersonFacilities
Available

・10% discount on usage charge for the first monthly
payment.
・Trial residence free of charge (1-night, 2-day stay,with dinner and breakfast)・One-day facility site-visit(with lunch) free of charge
Unitholder and his / her spouses and his / her relatives(within the second degree)※A resident of the requested healthcare facility and a
use in conjunction with other discount systems are
ineligible.
All of the private senior homes with nursing care
operated by Sawayaka Club Corporation as of July
31,2021.

The No. of
77 facilities
Facilities
Hokkaido, Akita, Tochigi, Saitama, Chiba, Kanagawa,Area
Niigata, Shizuoka, Aichi, Mie, Kyoto, Osaka, Hyogo,
Ehime, Wakayama, Fukuoka, Oita
Contact No. +81-120-958-490
Property
owned by
KDR

Sawayaka Sakura Nibankan

NM LIFE Co., Ltd.

Benefits

Eligible
Person・ Discount on one-time payment for resident (¥200,000 discount)・Trial residence free of charge, up to three times(1-night, 2-day stay, with dinner and breakfast)・
Same-day facility site-visit(with lunch) free ofcharge (within the three times)
Unitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility anda use in conjunction with other discount systems
are ineligible.

Facilities
Joy Stage Hachioji
Available
The No. of
1 facility
Facilities
Area

Tokyo

Contact+81-120-38-0161
No.
Property
owned by Joy Stage Hachioji
KDR
Homepage https://joystage.com/

Homepage http://www.sawayakaclub.jp/

Excellent Care System Co., Ltd.
Benefits
Eligible
PersonFacilities
Available

・One-day facility site-visit(with lunch) free of charge
Unitholder and his / her spouses and his / her relatives(within the second degree)※A resident of the requested healthcare facility and a
use in conjunction with other discount systems are
ineligible.
All of the private senior homes with nursing care
operated by Excellent Care System Co., Ltd. as of July
31,2021.

The No. of
19 facilities
Facilities
Area

Tokyo, Kanagawa, Kyoto, Hyogo, Tokushima(Note 1) The area and the number of facilities are as of July 31, 2021.
(Note 2) There may be restrictions on trial residence and facility tour due tothe operating condition of operators.
(Note 3) In the case of private senior homes with nursing care, those
who are not required for nursing care may not be able to use this
Unitholder Benefits Program .
(Note 4) It may be necessary to consult with a care manager and take a
medical checkup before trial residence.

Contact No. +81-44-819-5107
Property
owned byKDR

Excellent Nishinomiya, Excellent Kitano

Homepage https://www.excare.co.jp/

1061Unitholders’ benefit programs
Through the utilization of the Unitholders’ Benefit Program, KDR hope that the unitholders and theirfamilies will be able to realize healthy longevity.
General Outline of the Unitholder Benefit Program

1 Eligible

Unitholder

Unitholders stated or recorded on the unitholders’ register of the Investment Corporation as ofJuly 31, 2021 are eligible for the unitholder benefit program.

2 Contents

Unitholders owing more than 1 unit will be entitled to the benefits as described previous page.

Please present Semi-annual Report for the fiscal period ended July 2021 (19th fiscal
Method for the period) and the paper setting forth the name, address, etc. of the unitholder or
3
Use of Benefits dividend receipts, which are enclosed in the Semi-annual Report, to the healthcare
facility.

4

Validity Period April 30, 2022

Q&A
Q At which facilities will I be eligible for benefit programs?
A Facilities offering programs are shown on the list, but applicable facility types vary
About Benefit
programdepending on each operator. Please call the operator to find out which facilities
offer benefit programs.
Q How can I check the details of benefit programs?

Details of benefit programs vary depending on each operator. Moreover,A there may be some restrictions to benefit programs due to the operational

status of facilities and such. Please call the operator to find out the detailsof the benefit programs.
Q What are the procedures required to use the program?

Please call and tell the operator that you wish to use the “Unitholder

A Benefit Program.” You will be provided with detailed information onnecessary procedures.
Q What do I need to bring when using the program?
How to use

Please bring the document enclosed with this Semi-annual Report affixed
A with your address, name and other information. Some operators or

facilities may require additional confirmation documents. Please confirm
the details with the relevant operator.
Q Can I go directly to a facility when I want to see the facility or do a trial residence?

If you visit a facility without prior notice, they may not be able to respond to

A your request depending on the operational status or vacancy status. Pleasecall the operator in advance and receive instructions before a visit.

11

II.

Asset Management Report

1. Outline of Asset Management Operation(1)

Operating Result and Financial Position
Fiscal period

Unit

15th

16th

17th

18th

19th

From Feb. 1, 2019

From Aug. 1, 2019

From Feb 1, 2020

From Aug. 1, 2020

From Feb. 1, 2021

to Jul. 31, 2019

to Jan. 31, 2020

to Jul. 31, 2020

to Jan. 31, 2021

to Jul. 31, 2021

Operating result

Operating revenues

mil.yen

8,136

8,066

8,374

8,382

9,195

(Rental revenues)

mil.yen

7,933

8,027

8,289

8,382

8,758

Operating expenses

mil.yen

3,777

3,806

3,904

4,038

4,373

(Expenses related to rent business) mil.yen

2,915

2,911

3,005

3,060

3,333

Operating income

mil.yen

4,358

4,260

4,469

4,344

4,822

Ordinary income

mil.yen

3,741

3,614

3,808

3,632

4,147

Net income

mil.yen

3,741

3,613

3,808

3,631

4,146

Total asset

mil.yen

254,965

256,665

272,960

283,172

293,176%（＋4.0）（＋0.7）（＋6.3）（＋3.7）（＋3.5）

Interest-bearing debt

mil.yen

125,900

127,650

135,050

145,220

146,920

Unitholders’ equity

mil.yen

118,541

118,500

127,457

127,132

135,218%（＋5.9）（-0.0）（＋7.6）（-0.3）（＋6.4）

99,731
3,687
102.1

108,550
3,866

108,550
3,867

116,322

101.5

106.5

98.9

907,458

951,258

951,258

995,883(period to period change)Asset(period to period change)
Unitholders’ capital

mil.yenTotal distribution

mil.yenDistribution per unit

Dividend payout ratio (Note 2)%

99,731
3,687
98.5

Number of investment units issued
and outstanding

unit

907,458

Net income per unit (Note 3)

yen

4,142

3,981

4,028

3,817

4,189

Unitholders’ equity per unit

yen

130,630

130,584

133,988

133,646

135,777

Distribution per unit

yen

4,063

4,064

4,065

4,066

4,117

Profit distribution

yen

4,063

4,064

4,065

4,066

4,117

Distribution in excess of profit

yen

－

－

－

－

－

Return on assets (Note 4)

%

1.5

1.4

1.4

1.3

1.4

Annualized (Note 5)

%

3.0

2.8

2.9

2.6

2.9

%

3.2

3.0

3.1

2.9

3.2

%

6.5

6.0

6.2

5.7

6.4

46.5

46.2

46.7

44.9

46.1

（＋0.8）（-0.3）（＋0.5）（-1.8）（＋1.2）

%

49.4

49.7

49.5

51.3

50.1

mil.yen

4,948

5,023

5,218

5,165

5,291

yen

5,453

5,536

5,486

5,430

5,313

mil.yen

6,408

6,545

6,751

6,825

6,971

%

5.5

5.5

5.4

5.2

5.3

mil.yen

5,796

5,888

6,235

6,347

6,346

Return on net assets(Note 6)

Annualized (Note 5)
Net asset ratio
Financial indicator(period to period change)
Interest-bearing debt ratio on assets(Note 7)%

4,100

(Note 8)FFO
(Funds from Operation)
FFO per unit (Note 9)(Note10)

Leasing NOI(Net Operating Income)Annualized NOI yield (Note 5,11)(Note 12)

Leasing NCF(Net Cash Flow)

Annualized NCF yield(Note 5,13)

Number of properties

%

5.0

5.0

5.0

4.9

4.8

properties

143

144

151

157

161

Reference

Leased units (Residential)

unit

8,080

8,148

8,319

8,755

9,027

Total leasable floor area (Note 14)m²

491,050.34

490,988.55

503,721.25

516,871.89

525,995.20

Occupancy ratio (Note 14)

%

97.5

97.6

96.8

96.2

97.4

Depreciation expenses

mil.yen

1,391

1,428

1,467

1,504

1,546

Capital expenditures

mil.yen

612

656

515

478

625

(Note 1)
(Note 2)

Figures are rounded down to the nearest unit. Ratios are rounded off to one decimal place
Dividend payout ratio＝Total distribution(excluding Distribution in excess of profit)/Net income×100

12(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)
(Note 12)(Note 13)
(Note 14)“Net income per unit” are calculated by dividing the net income with weighted average unit based on days.
Return on assets ＝Net income /｛(Total assets at the beginning of period + Total assets at the end of period)/2｝×100
Annualized values for the 15th fiscal period are calculated based on a period of 181 days,, 184 days for 16th fiscal period, 182 days for17th fiscal period, 184 days for 18th fiscal period, 181days for 19th fiscal period.
Return on net assets ＝Net income / {(Total net assets at the beginning of period + Total net assets at the end of period) /2} ×100
Interest-bearing debt ratio of assets ＝Interest-bearing debt at the end of period / Total assets at the end of period×100
FFO＝Net income + Depreciation expenses + Amortization of deferred assets - Gain on sale of real estate property + Loss on sale of realestate property.
FFO per unit ＝FFO／Number of investment units issued and outstanding(rounded down to unit)
Leasing NOI＝Rental revenues －Expenses related to rent business＋Depreciation expenses
Annualized NOI yield＝Annualized NOI／Total acquisition prices of properties ×100
Leasing NCF＝ Leasing NOI－Capital expenditures
Annualized NCF yield ＝Annualized NCF／Total acquisition prices of properties ×100
Figure and ratio include for land with leasehold interest.

13

（2）Outline of Asset Management Operation for the 19th Fiscal Period(ⅰ) Outline of the History of the Investment Corporation
Kenedix Residential Next Investment Corporation (the “Investment Corporation”) was established on November
15, 2011 under the Act on Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”).
On April 26, 2012, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange (Securities Code: 3278).
The Investment Corporation subsequently issued new investment units through three public offering and by wayof third-party allotment to steadily grow its asset size through continuous investment in rental housing, which is its
primary investment target.
Moreover, seeking further growth opportunities, the Investment Corporation conducted an absorption type merger(“the Merger”) with the Investment Corporation as the surviving corporation and Japan Senior Living Investment
Corporation (“JSL”) as the absorbed corporation on March 1, 2018, and changed its name from Kenedix Residential
Investment Corporation to Kenedix Residential Next Investment Corporation.(Following the merger, theInvestment Corporation implemented a 2-for-1 investment unit split with an effective date of March 1, 2018.)
Even after the merger, the Investment Corporation procured funds on a regular basis and pursue sustainable growth
opportunities by investing in rental housing, senior homes, hotels, etc. As of the end of the 19th fiscal period, theInvestment Corporation owns a total of 161 real estate properties (total acquisition price: 265,762 million yen (Note1)) consisting of 133 residential facilities such as rental housing, 26 healthcare facilities such as private senior homes
with nursing care and 2 accommodation facilities such as hotels. Most recently, the Investment Corporation
procured funds by issuing new investment units in February and March and the total number of investment units
issued and outstanding is 995,883 units as of the end of the 19th fiscal period.
The Investment Corporation entrusts the asset management to Kenedix Real Estate Fund Management, Inc. (the“Asset Management Company”), a company that was formed with personnel from Kenedix, Inc. and adheres to thecore philosophies of Kenedix, Inc. The Asset Management Company provides real estate investment management
services with flexibility and agility by flexibly pursing optimal investment opportunities and income opportunities
and agilely investing and managing based on swift information gathering and decision-making while accurately
grasping real estate-related trends.
（Note）“Acquisition price” is the sales price of each trust beneficiary interest or real estate indicated in each trust beneficiary interest sales
contract and real estate sales contract concerning the owned assets (excluding acquisition costs, adjustment in property tax andcity-planning tax, and consumption tax) and is rounded down to the nearest million yen. The appraisal value as of March 1, 2018
is indicated as the acquisition price for assets succeeded by JSL due to the merger. The same applies hereinafter.

(ⅱ) Investment Environment
During the 19th fiscal period, the Japanese economy remained in a tough situation in some components, such as
weakening private consumption, especially in service spending, due to the impact of the COVID-19. On the other
hand, the recovery trend is continuing, including improvement in corporate capital investment and production, andgradual increase in exports. As for the economy going forward, it is expected to continue the recover trend due tothe effects of various government policies and improvements in overseas economies, while taking measures toprevent the spread of infection and promoting vaccination. However, it is still necessary to keep a cautious andclose watch on the impacts, such as the trends of the global economy which has been affected by the spread of the
COVID-19, as well as the possibility of future volatility in the financial and capital markets.
With regard to residential facilities, one of the main investment targets of the Investment Corporation, the flow ofpeople from other regional areas to Tokyo metropolitan area has declined due to the spread of the COVID-19.
Within the Tokyo metropolitan area, the rental market is also undergoing changes, as companies are introducing
telework and other measures to diversify their residential needs, which used to be focused on the city center. As aresult of these changes in the market environment, some rental housings in central Tokyo have seen a delayed
recovery in occupancy rates, but the occupancy rate of some rental housing in the suburbs of central Tokyo andother regional areas are higher than before the COVID-19 pandemic. As for the rental housing market in general,
the impact of the COVID-19 pandemic has been minimal, and occupancy rates have remained steady. On the other
hand, with regard to the increase in rent, although the rate of increase is decreasing, the trend of increase in rent
still continues.
Concerning the environment surrounding healthcare facilities, with one of the longest average life expectancies forboth men and women, Japan now has a super-aging society (Note) which no other country has ever experienced, andthe “aging,” or the increase in the ratio of the elderly population against total population and the increase in elderly
population itself, is expected to continue going forward. In response to such trends, the number of senior care14

facilities such as private senior homes with nursing care and serviced senior housing has been on the rise in recent
years. The Investment Corporation believes that demand for senior care facilities, including nursing care facilities,
will continue to increase. Even under the circumstances of the spread of the COVID-19, stable facility operations
have continued with infection prevention measures taken by the operators of each facility.
Demand for accommodation facilities has decreased substantially due to restrictions on entry into Japan fromoverseas and restrictions on movement within Japan in order to prevent the spread of the Covid-19, andaccommodation facility operators continues to face a difficult operating environment. As the impact of the newcoronavirus infection gradually eases, accommodation demand is expected to recover, but it will take a certain
amount of time to return to the situation before the coronavirus disaster.
In the real estate investment market, some investors initially took a cautious stance toward real estate investment
due to the spread of the new coronavirus infection, but investors' willingness to invest in real estate is recovering
against the backdrop of accommodative monetary policies in Japan and overseas, and active transactions are
currently taking place. Expected yields on rental housing, which is the main investment target of the Investment
Corporation, remain low, and the environment for property acquisitions is expected to remain difficult.
(Note) “Super-aging society” refers to a society with a population aging rate (ratio of the elderly population aged 65 or over against total
population) exceeding 21%, as defined by the World Health Organization and the United Nations.

(ⅲ) Operating Results(A) Acquisition and Sale of Assets
The Investment Corporation comprehensively taking into account the composition of the entire portfolio,
earnings power in the future, etc., and the Investment Corporation acquired 5 properties in total (total acquisition
price:6,963 million yen), which includes acquisitions of 3 residential properties (total acquisition price: 2,533
million yen) and 2 healthcare facilities (total acquisition price: 4,429 million yen), and sold 1 residential property(acquisition price: 650 million yen / sale price: 1,110 million yen).
＜Acquired assets＞

Property number
T-97
T-98
T-99
Residential
H-25
H-26
Healthcare

Property name
KDX Residence Tennocho
KDX Residence Kawasaki
KDX Residence Kamata-minami II
Subtotal
Medical-home Granda Kurakuen
Rihabili-home Granda Kobe Kitano
Subtotal
Total

Acquisition price（million yen）（Note）
843
910
780
2,533
2,709
1,720
4,429
6,963

＜Sold asset＞

Property number
T-23

Property name
KDX Residence Sendagaya

Sale price（million yen）（Note）
1,110(Note) “Acquisition Price” and “Sale Price” are the purchase or sales amount of each trust beneficiary interest (excluding acquisitionor sale costs, property tax, city planning tax or consumption tax, etc.) indicated in each trust beneficiary interest purchase orsales contract concerning the acquired assets and sold assets, and are rounded down to the nearest million yen.

As a result of the above, as of the end of the 19th fiscal period, the Investment Corporation owned a total of 161
properties (total acquisition price: 265,762million yen), which consist of 133 residential properties (acquisition
price: 202,182 million yen), 26 healthcare facilities (acquisition price: 58,620 million yen) and 2 accommodation
facilities (acquisition price: 4,960 million yen).

(B) Management and Operation of Assets
With respect to residential, the Investment Corporation managed our real estate holdings with the aim of achieving
stable and optimal performance by working with a property management company (“PM Company”) that operates
and manages properties, which were selected through a multifaceted approach of taking into consideration the15

region, location and city, rent range, tenant type (corporate or individual) and other various characteristics.
Moreover, the Investment Corporation strove to partner with leading real estate companies with a strong local
presence and bolster the PM Company’s efficient leasing activity. We also ensured that soliciting conditions took
into consideration the characteristics and occupancy levels of individual properties; carried out efficient advertisingefforts utilizing the power of the KDX Residence brand; utilized leasing agents; and implemented flexible sales
activities attuned to the characteristics of each of the properties in accordance with plans.
Specific measures that contributed to improvement in revenue at the rental business are as follows: with respect
to properties with stable and robust occupancy conditions, the Investment Corporation strove to raise rent levels
for and obtain key money from new tenants; raise rents when leases were renewed; increase revenue associatedwith auxiliary facilities; and improve the parking contract rate; and as measures to slash rental business expenses,
we reduced utility bills by switching the electricity supplier for common areas; changed the lighting in common
areas to LED; and reviewed the contracts for auxiliary facilities, as well as solicitation costs, etc., in order toimprove income and expenditures.
Moreover, with the aim of maintaining and/or improving the market competitiveness of our portfolio assets, theInvestment Corporation undertook planned major renovation work at five properties, updating work in common
areas as well as value-increasing work and facility updates in individually-owned areas.
The Investment Corporation continued to introduce LED lighting to common areas as part of our environmental
efforts and obtained 12 properties of DBJ Green Building Certification from external rating agencies in the end of
the 18th fiscal period (July 31, 2021).
As a result of the above, the occupancy rate for residential facilities was 96.2% as of the end of the 19th fiscal
period (July 31, 2021). The average occupancy rate for residential facilities during the 19th fiscal period was 95.9%.
As a specific measure contributing to the maintenance and improvement of revenue at the rental business forhealthcare facilities, the Investment Corporation usually visits facilities to confirm their operating status, including
revenues, expenditures, and occupancy rates, but the Investment Corporation refrained from visiting the sites
voluntarily as much as possible out of consideration for the spread of COVID-19 in this period too, and continued
to monitor operations of the managers by all possible means including online interviews about business conditions,future management policies, etc.
The Investment Corporation tried to conduct repair works with thorough prevention measure for infection as well
as talking the priority into account from the point of view of prevention of spread of COVID-19.
As a result of the above, the average occupancy rate for healthcare facilities was 100% and the occupancy rate asof the end of 19th fiscal period (July 31, 2021) was 100%. The occupancy rate for the entire portfolio was 97.4%
as of the end of 19th fiscal period (July 31, 2021).
With regard to the hotels, the Investment Corporation will continue to operate them while keeping a close eye on
future economic trends, as the spread of the novel coronavirus has led to a significant decline in demand for lodging
both on business and vacation.

(C) Financing
The Investment Corporation procures funds with the aim of medium- to long-term stable earnings and sustained
growth of portfolio assets, taking into consideration the balance between financial stability and financing costs.
(Issuance of New Investment Units)
During the 19th fiscal period, the Investment Corporation raised 7,402 million yen in funding by issuing 42,500
new investment units through public offering on February 25, 2021, and 370 million yen by issuing 2,125 newinvestment units through third party allotments on March 9, 2021, with the aim of allocation to funds foracquisition of specified assets.
As a result, unitholders’ capital came to 116,322 million yen as of the end of the 19th fiscal period (July 31,2021).
(Borrowing)
The Investment Corporation borrowed 8,750 million yen as funds for repaying borrowings of which repayment
was due during the 19th fiscal period.

16

As a result of the foregoing, the balance of borrowings was 138,220 million yen, the balance of the interestbearing debt including the investment corporation bond was 146,920 million yen at the end of 19th period (July31, 2021) and the average remaining term of interest-bearing debt (Note 1) was 4.1 years, and the average interest
rate at the end of 19th fiscal period (Note 2) was 0.93%. The long-term debt ratio (Note 3) came to 84.4%, the fixedinterest-rate ratio (Note 4) was 98.4%, and the loan to value ratio (LTV) came to 50.1%.
(Note 1)
(Note 2)

(Note 3)(Note 4)

It is calculated by weighting and averaging the remaining term of each interest-bearing debt according to the balance ofeach interest-bearing debt and rounded off to decimal place.
The average interest rate of each interest-bearing debt was calculated taking into account the upfront fee (per annum) andinterest rate swaps, etc., and the weighted average was calculated in accordance with the balance of each interest-bearingdebt.
Long-term debt ratio = (balance of long-term borrowings (excluding long-term borrowings to be repaid within one year)+ balance of investment corporation bonds (excluding investment corporation bonds to be repaid within one year)) ÷(balance of borrowings + balance of investment corporation bonds)
The long-term debt ratio that includes long-term borrowings and investment corporation bonds to be repaid within one
year is 100%.
The fixed interest-rate ratio = (balance of fixed interest-ratio borrowings (including borrowings for which interest rates
are substantially fixed through interest rate swap transactions, etc.) + balance of investment corporation bonds) ÷ (balanceof borrowings + balance of investment corporation bonds)（Investment Corporation Bonds）
During the 19th fiscal period, the Investment Corporation issued the following 1,700 million yen of investment
corporation bonds (Social bond). Consequently, the outstanding debt balance totaled 8,700 million yen.
The fund through issuance of social bonds was fully used for the acquisition of “Rihabili-home Granda Kobe
Kitano”, which is an asset eligible for social finance (Note 1).
Name of investment
corporation bonds

Issuance date

Balance as ofJuly 31, 2021
(million yen)Interest
rate（％）

Maturity date

Redemption
methodRemarks

Seventh Series Unsecured
Investment Corporation
Bonds (Social Bond)

May 31, 2021

1,700

0.720

May 30, 2031

Full onmaturity（Note2）（Note 1）Assets eligible for social finance refer to assets fulfilling the following eligibility criteria.

Senior living facilities

Medical facilities

・Private senior homes
・Serviced senior housing
・Apartments for the elderly
・Group homes for elderly with cognitive
impairment
・Small multi-function facilities
・Daycare facilities, etc.
・Hospitals
・Clinics
・Medical malls
・Nursing and health facilities, etc.

（Note 2）Ranking pari passu among the specified investment corporation bonds（Credit Ratings）
The status of the credit ratings as of the end of the 19th fiscal period (July 31, 2021).
Credit Rating Agency
Japan Credit Rating Agency, Ltd.(JCR)

Type
Long-term issuer rating
Bond rating

RatingA+ (Outlook : Positive)A+（Shelf Registration）
The Investment Corporation filed a shelf registration statement regarding investment corporation bonds(excluding short-term investment corporation bonds) on June 26, 2020 with the following overview.
Planned issuance
100,000 million yen
amountPlanned issuance
From July 6, 2020 to July 5, 2022
periodFunds for acquiring specified assets (having the meaning as set forth in the Act on
Use of proceeds
Investment Trusts and Investment Corporations, Article 2, Paragraph 1); funds for
repaying borrowings; funds for redeeming investment corporation bonds (including17

short-term investment corporation bonds); funds for returning deposits; funds forpaying for repairs and maintenance, etc.; operating capital, etc.
The Investment Corporation issued 1,700 million yen of the Seventh Series Bonds (Social Bond) on May 31,
2021 based on the above shelf registration.

(ⅳ) Overview of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues was 9,195
million yen, operating income was 4,822 million yen, ordinary income was 4,147 million yen and net income was
4,146 million yen for the 19th fiscal period.
In regard to profit distributions for the 19th fiscal period, pursuant to the distribution policy in the Investment
Corporation’s articles of incorporation, the Investment Corporation has decided to apply special provisions of thetax system for investment corporations (Act on Special Measures Concerning Taxation (Act No. 26 of 1957; asamended) (“Act on Special Measures Concerning Taxation”), Article 67-15) and to distribute 4,100,050,311 yen as
profit distribution from unappropriated retained earnings for the 19th fiscal period, which is the amount of the net
income excluding a part of gain on sale of real estate property, etc., plus the reversal of reserve for temporary
difference adjustment.
In the event that a gain on the sale of real estate, etc. occurs, the necessity of retaining the gain on the sale shall beconsidered.

（3）Changes in Unitholders’ Capital
The changes in unitholders’ capital and number of investment units issued and outstanding for last five years are
as follows.

Date
March 1,2018
March 1,2018
August 1, 2018
August 29, 2018
February 20, 2019
March 11, 2019
February 26,2020
February 25,2021
March 9, 2021

Capital transaction

Number of investment units
Issued and outstanding
Increase
BalanceUnitholders’ capital(Million yen)
Increase
Balance

Investment unit split
Merger349,089

698,178―

80,13284,750782,928―

80,132Public offering
Third-party allotment
Public offering
Third-party allotment
Public offering
Public offering
Third-party allotment

82,100865,028

12,47092,602

4,105

869,133

623

93,22636,500905,633

6,195

99,421

1,825

907,458309

99,73143,800951,258

8,818

108,550

42,500993,758

7,402

115,952

2,125

995,883370

116,322

Remark(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 1) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective dateas of March 1, 2018.
(Note 2) In connection with the Merger, the Investment Corporation unit following the Investment Unit Split was allocated to every JSL
unit with 84,750 JSL units newly issued on March 1, 2018.
(Note 3) New investment units were issued at a price of ¥157,047 per unit (subscription price of ¥151,892 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 4) New investment units were issued at a price of ¥151,892 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets and repayment of borrowings.
(Note 5) New investment units were issued at a price of ¥175,500 per unit (subscription price of ¥169,740 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 6) New investment units were issued at a price of ¥169,740 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets.
(Note 7) New investment units were issued at a price of ¥208,065 per unit (subscription price of ¥201,342 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 8) New investment units were issued at a price of ¥179,985 per unit (subscription price of ¥174,170 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 9) New investment units were issued at a price of ¥174,170 per unit through the third-party allotment in order to raise funds foracquiring new properties.

【Changes in Unit Price at Tokyo Stock Exchange 】
The highest and lowest closing prices of the investment units listed on J-REIT section of the Tokyo Stock Exchange

18

for each fiscal period are as follows.
Fiscal period
For the fiscal period ended
Highest price
Lowest price15th Fiscal period
July 31, 2019

16th Fiscal period
January 31, 2020
225,500

17th Fiscal period
July 31, 2020
217,400

18th Fiscal period
January 31, 2021
198,000

19th Fiscal period
July 31, 2021
244,800

198,600
172,000

191,400

106,900

168,600

177,300（4）Distributions
The Investment Corporation intends to apply the corporate income taxation special provision (Act on Special
Measures Concerning Taxation, Article 67-15) that specifies deduction of an amount equivalent to profit distributions
as deductible expenses from an investment corporation’s taxable income, and in accordance with the distribution policy
set forth in the Investment Corporation’s certificate of incorporation, Article 38 (1), has decided to distribute 4,100,050
thousand yen as profit distribution from unappropriated retained earnings for the 19th fiscal period, which is the amountof the net income excluding a part of gain on sale of real estate property, etc., plus the reversal of reserve for temporary
difference adjustment.
As a result, distributions per unit for the 19th fiscal period amounted to 4,117 yen.
18th
19th
15th
16th
17th
From Feb.1, 2019 From Aug.1, 2019 From Feb.1, 2020 From Aug.1, 2020 From Feb.1, 2021
to Jan.31, 2021
to Jul.31, 2021
to Jul.31, 2019
to Jan.31, 2020
to Jul.31, 2020

Fiscal period

Unappropriated retained
earnings
Retained earnings
Total distribution(Thousandyen)(Thousandyen)(Thousandyen)(Distribution per unit)(Yen)

Profit distribution(Thousandyen)(Profit distribution per unit)(Yen)

Unitcapital refunds(Thousandyen)(Unitcapital refunds per unit)(Yen)

Unitcapital refund from(Thousandretained earnings for temporaryyen)difference adjustment(Unitcapital refund fromretained earnings for temporary (Yen)difference adjustment per unit)
Unitcapital refunds fromdeduction of unitcapital undertax rules(Thousandyen)(Unitcapital refunds fromdeduction of unitcapital undertax rules per unit)(Yen)

4,125,881

4,072,277

4,212,398

3,997,276

4,296,284

458,879

404,367

365,534

149,461

216,234

3,687,001

3,687,909

3,866,863

3,867,815

4,100,050（4,063）（4,064）（4,065）（4,066）（4,117）

3,687,001

3,687,909

3,866,863

3,867,815

4,100,050（4,063）（4,064）（4,065）（4,066）（4,117）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

（5）Management Policy and Issues to Be Addressed
Outlook for Asset Management
The Investment Corporation primarily invests in residential facilities mainly such as rental housing, etc.,
healthcare facilities such as private senior homes with nursing care and accommodation facilities such as hotels,
based on the three core strategies: “Consistent External Growth by Making Use of Good Judgment,” “EfficientProfit Management” and “Challenge to New Business Opportunities.”
Going forward, the Investment Corporation will continue to seek maximization of unitholder value by evolving
into a REIT capable of adapting to change in social/economical structures and improving its “stability” and “ability
to pursue growth,” through diversified investment in “spaces where people live and stay” encompassing residential
facilities, healthcare facilities and accommodations.
Based on the above three principal investment targets, the Investment Corporation newly added child-care facilities

19

as an investment target on September 12, 2019. As "spaces where people live and stay" they are considered to haveclose affinity with the residential facilities of the Investment Corporation.

（A）New Property Acquisitions
The Investment Corporation will invest primarily in residential, healthcare and accommodation properties“spaces where people live and stay” as its target investments. In making investments, the Investment Corporation
will stringently select real estate etc. where stable demand from tenants and users and long-term stable revenue
flows can be projected on the basis of an individual analysis of the attributes of a particular property, as well as
regional analysis taking into account location, etc.
In residential facilities, the Investment Corporation focuses on the potential earnings power of land and use“location prestige,” “location convenience” and “whether there is a special market” and other metrics to determine
investment opportunities providing rental income with medium- to long-term stability, and invests also in rental
residential facilities and other residential facilities located mainly in greater Tokyo and in Other Regional Areas(government-designed municipalities and other regional cities. The same applies hereinafter.) by discerning room
types where stable rent demand can be expected, in accordance with the locational characteristics after analyzing
the attractiveness of the land in detail.
In healthcare facilities and accommodations, the Investment Corporation judges investment opportunity
considering scale and characteristic of market, regional financial affairs and status of competitive facilities, etc.
and examines investment mainly in three major metropolitan area.
The Investment Corporation believes that it will be possible to acquire properties steadily by utilizing the“judgment capabilities” cultivated as a real estate investment management professional to select excellent
investment opportunities from a wide range of investment targets.
As a property acquisition channel, the Investment Corporation use not only the pipeline from Kenedix, Inc and
Kenedix Investment Partners, Inc. pursuant to the Memorandum of Understanding concerning Real Estate
Information Provisions dated October 1, 2013 (including the change after the date and calls “Support Line MOU”.
This Support Line MOU was used for i) residential facilities, ii and) healthcare facilities and iii) accommodations
and Residential REIT department is applied for those having a priority consideration right to responsible for theasset management of the Investment Corporation) but also leverage the Asset Management Company’s own
network, including Jyukyo Holdings Co., Ltd., with which a support agreement was executed on June 15, 2017
and Shinsei Bank, Limited, HASEKO Corporation, and Mitsubishi UFJ Trust and Banking Corporation, withwhich a support agreement was executed on November 10, 2017 by the Merger, for flexible property acquisitions.
We also plan to control property acquisition timing in order to acquire properties at an advantageous timing inaccordance with the future market and financing climates, and we are considering investment in silent partnership
equities and real estate-backed securities (preferred securities, etc.).

（B）Management of Owned Assets
As residential facilities, with the goal of securing a rental income with medium- to long-term stability, PM
companies and the Asset Management Company work together to formulate leasing strategies in accordance withindividual property characteristics, and by closely allying with leading real estate companies experienced inregional rental markets, seek to maintain or improve occupancy rates and rent levels.
The Investment Corporation will also take into account the operation statuses of the properties and movementsof competing properties and seek to maintain or improve occupancy rates, raise rent levels at the time of tenantchanges, increase rent at the time of lease renewals, receive key money, reduce the time of vacancy, maintain or
improve lease renewal rates, and secure parking revenue and other auxiliary revenue and other income
opportunities to secure rent income.
The Investment Corporation will respond to requests from some tenants to reduce rents due to the Covid-19
appropriately, taking into account individual circumstances.
The Investment Corporation will further strive to cut down on restoration and other repair and maintenanceexpenses, review the electricity provider for common areas in connection with the liberalization of the electricity
market, cut costs through the use of LED lighting for common areas, and reduce tenant solicitation and other20

costs.
The Investment Corporation will carry out strategic work to update common areas and enhance the value ofleased areas of the properties and continue implementing appropriate, major repairs, as necessary, while it seek
to maintain or enhance the market competitiveness of its assets.
As healthcare facilities, the Investment Corporation continues to monitor properly operational status of facilities
it owns and business status of operators by information about them and companies from operators, inspection ofoperating status and interview by visiting them and interview with managements in operating company, etc.
Considering results of monitoring, the Investment Corporation proposes to improve buildings, facilities andoperation and examines changing operators in case important issue occurs in succession of management in
operators. The Investment Corporation contracts Back-up operation conclusion with operators and support
companies in preparation of changing operators.
The Investment Corporation will manage to make internal growth by deepening relation with operators such as
value-ups based on proposal from operators and cooperation for resolving issues in operation.
The Investment Corporation will continue to monitor the impact of the Covid-19 on the lodging business, andwill take appropriate measures in consultation with operators to ensure the best possible outcome from a longterm perspective.

（C）Financing
The Investment Corporation will continue to pay close attention to changes in interest rates and otherdevelopments in the financing environment and will consider various options and choose optimal financing meansin order to achieve the optimal balance between financial stability and financing costs, and seek to build an
appropriate financial base.

（D）Disclosure of Information
The Investment Corporation’s basic policy for disclosure is to engage in proactive investor relations activities
to provide a broad range of information to investors and concerned parties and to quickly disclose accurate
information to the extent possible. Specifically, we practice appropriate disclosure though the Tokyo Stock
Exchange (TDnet registration and press releases) and through our website (https://www.kdr-reit.com/en).

（E）Conflicts of Interest
The Asset Management Company has established related-party transaction rules of the Residential REIT
Department and conducts management based on said rules upon transactions with related parties in the
management of assets of the Investment Corporation. The Asset Management Company is also entrusted withmanagement of other REITs of Kenedix group, and which may compete against the Investment Corporation in
the acquisition of investment properties. The Asset Management Company has established a department thatobtains information for sales of real estate and preferentially considers acquisition thereof. For this reason, theAsset Management Company prepared a rule on “Right of first consideration” based on type and scale ofproperties and determines the order of consideration within the Asset Management Company in advance, in
addition to setting up internal “pipeline meetings” with a compliance officer in attendance, implementing
operation in accordance with certain rules. By doing so, the Asset Management Company prevents arbitrary
distribution of real estate sales information and thereby prevents conflicts of interest from arising among theinvestment corporations whose assets it manages and strives to implement proper measures to address conflictsof interest.

（6）Important Subsequent Events
Not applicable21

(Reference)(ⅰ) Acquisition of Assets
The Investment Corporation acquired the following trust beneficiary interest in real estate.
Date of
Acquisition
August2, 2021(Note 1)
(Note 2)
(Note 3)

Property
number
T-100

Property Name

Location

Previous Owner

Acquisition
Appraisal
Price
value
（mil.yen） （mil.yen）（Note 2）

KDX Residence Kamishakujii
II(Note1)

Nerima-ku,
Tokyo

GK KRF96

3,087（Note 3）

3,280

The trust beneficiary interest sales contract associated with the asset for T-100 falls under the forward commitments, etc. by
the Investment Corporation as specified in the Financial Services Agency “Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.”“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-be acquired
assets and is rounded down to the nearest million yen.
“Appraisal date” for T-100 is July 31, 2021.

The Investment Corporation concluded a silent partnership agreement for the acquisition of equity interest of a silent
partnership (Total acquisition price: 107 million yen (Note)) with GK Trinity One as its operator, which acquires
and manages 2 residential properties and 1 healthcare facility, on August 24, 2021, and executed a partial capital
contribution (Investment amount: 15 million yen) on August 26, 2021.
(Note)The silent partnership agreement falls under the forward commitments, etc. by the Investment Corporation as specified in the
Financial Services Agency “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.”(ii) Borrowings
With respect to the above (i) Acquisition of assets, the Investment Corporation borrowed a total of 1.8 billion yen(Series 56) on August 2, 2021 in order to allocate the proceeds to funds for the acquisition of T-100 and a part ofassociated costs thereof.

22

2．Overview of the Investment Corporation（1）Unitholders’ Capital
Fiscal period

15th
As of July 31,
2019

16th
As of January 31,
2020

17th
As of July 31,
2020

18th
As of January 31,
2021

19th
As of July 31,
2021

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

907,458

907,458

951,258

951,258

995,883

99,731

99,731

108,550

108,550

116,322

11,684

10,39011,005

11,317

10,522

Number ofinvestment units
held

Ratio（％）

Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)（2）Matters Concerning Investment Units
Major unitholders as of January 31, 2021 are as follows.

Name

Address（Note1）(Units)Custody Bank of Japan, Ltd. (Trust Acct.)

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

244,845

24.58

The Master Trust Bank of Japan Ltd. (Trust
Acct.)

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

216,918

21.78

The Nomura Trust Banking Co., Ltd. (Trust
Acct.)

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

51,213

5.14

Kenedix, Inc.

1-6 Uchisaiwai-cho 2-chome, Chiyodaku, Tokyo

29,515

2.96

Custody Bank of Japan, Ltd.
(Securities Investment Trust Acct.)

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

22,0782.21

18,813

1.88

16,278

1.63

15,024

1.50

12,863

1.29

10,136

1.01

637,683

64.03

Mitsubishi UFJ Trust and Banking Corporation

Japan Securities Finance Co., Ltd.
STATE STREET BANK WEST CLIENTTREATY 505234

2-chome,11-3,
Hamamatsu-cho
2-chome,Minato-ku, Tokyo
Standing proxy: The Master Trust Bankof Japan, Ltd.
2-10, Nihonbashi Kayabacho 1-chome,
Chuo-ku, Tokyo
Shinagawa Intercity Tower A 15-1, 2chome, Kohnan, Minato-ku, Tokyo
Standing proxy: Mizuho Bank, Ltd.
194, Motosojamachi, Maebashi-shi,
Gunma
1-11, Nihonbashi 3-chome, Chuo-ku,
TokyoStanding Proxy: The Hongkong andShanghai Banking Corporation Limited,Tokyo branch

The Gunma Bank, Ltd.

SSBTC CLIENT OMNIBUS ACCOUNT

Total(Note) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places23

（3）Matters Concerning Directors and Auditor(ⅰ) The Executive Directors, Supervisory Directors and the Independent Auditor During the 19th Fiscal
Period Are as Follows.

Position

Name

Keisuke Sato

Executive
Director

Katsue Okuda

Osamu Chiba

Supervisory
Director

Satoshi Ogawa(Note 1)

Soichiro Iwao

Independent
auditor(Note 2)
(Note 1)
(Note 2)

Ernst & Young ShinNihon
LLC

Other concurrent title

Kenedix Real Estate Fund Management, Inc.
Director & COO, Head of Residential REIT Department
Ogata Appraisal Corporation, Director
Lecturer in Meiji University’s Graduate School of Global
Business
Kudan Ogata Holdings Corporation, Representative
director
Kudan Urban Appraisal Co., Ltd., Director
CERESPO CO., LTD., Auditor
Sankei Building Asset Management Co., Ltd., Investment
Committee, External committee member
Fiscal System Council, Ministry of Finance, committee
memberMaruha Nichiro Corporation, Outside Director
Akebono Law Office, Attorney
Maruzen Foods Corporation, Outside Auditor
IMAGICA GROUP Inc., Outside Director
Ogawa CPA Office, CPA
GK Mercury Consulting, Representative Partner
Oedo-Onsen Monogatari Co., Ltd, Auditor
Ooedo Onsen Monogatari Hotels & Resorts Co., Ltd.
AuditorHungarian Medical Universities, Director
National Federation of Industrial Health Organization,
Director
Iwao Consultant Office, Director
Japan Society for Dying with Dignity, President－

Total amount offees
paid during theperiod(thousand yen)
1,800

1,800

1,500

1,500

1,500

17,200Supervisory Director may be an officer of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation.
Independent auditor's fee includes that for comfort letter preparation.

(ⅱ) Policy on Decisions to Terminate or Not Reappoint the Accounting Auditor
Dismissal of an independent auditor will be made in accordance with the Act on Investment Trusts and Investment
Corporations, and a decision not to re-appoint an independent auditor will be considered by comprehensively taking
into account the audit quality, compensation and other various circumstances by the board of directors of theInvestment Corporation.

（4）Matters Concerning Directors and Officers Liability Insurance Policy
Classification

Summary of Insurance Policy

All of Executive
Directors
andSupervisory
Directors(Outline of the insured accident to be covered)
The Investment Corporation has concluded a directors' liability insurance policy as set forth in Article 116-3,
Paragraph 1 of the Act on Investment Trust and Investment Corporation, with an insurance company and theInvestment Corporation shall compensate for damages, litigation expenses, and other damages incurred by the
insured as a result of receiving a claim for damages arising from an act performed by the insured in connection
with its business as a director of the Investment Corporation to a certain extent under the insurance contract.
(Burden ratio of insurance premiums)
Of the premiums for all insured persons, approximately 91% is paid by the Investment Corporation andapproximately 9% is paid by the insured persons themselves.
(Measures to ensure that the appropriateness of the execution of duties by directors is not impaired)
There is no deductible for a series of liability for damages, but the maximum amount payable is 1 billion yen.

24

（5）Asset Management Company, Custodian and General Administrators
The asset management company, custodian and general administrators as of the end of the 17th fiscal period are as
follows.
Classification

Name

Asset manager
CustodianKenedix Real Estate Fund Management, Inc.

General administrator (Unitholder registry)

Sumitomo Mitsui Trust Bank, Limited

General administrator (Regarding bookkeeping)Mizuho Trust & Banking Co., Ltd.

Mizuho Trust & Banking Co., Ltd.

General administrator (Administration)

Mizuho Trust & Banking Co., Ltd.

General administrator(Regarding investment corporation bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

25

3．Status on Investment Properties（1）Component of Assets
Classification

Use

18th
As of January 31, 2021
Total amountComposition ratio
held(%)(mil.yen)(Note 5)Areaof assets（Note 4）

Residential
Trustbeneficiaryinterest in
real
estate(Note 6)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

（Note 4）

144,31151.0

146,14849.8

55,561

19.6

55,21918.8

22,447

7.9

22,396

7.6(Note 2)29,515

10.4

33,919

11.6

Other (Note 3)

1,277

0.5

1,263

0.4

5,098

1.8

5,085

1.7

258,21191.2

264,032

90.1

172

0.1

172

0.1

172
24,788

0.1
8.8

172
28,9720.1
9.9

283,172

100.0

293,176100.0(Note 2)

Healthcare

19th
As of July 31, 2021
Total amountComposition ratio
held(%)(mil.yen)(Note 5)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

Accommodation Tokyo Metropolitan
Area (Note 1)
Total (Trust beneficiary interest in real estate)
Real
Healthcare
Other Regional Area
(Note 2)
estate(Note 6)
Total (Real estate)
Bank deposits and other assets
Total assets(Note 1) “Tokyo Metropolitan Area” means major cities in Tokyo, Kanagawa, Saitama and Chiba.
(Note 2) “Other regional areas” include government-designed municipalities and other regional cities.
(Note 3) “Other” means cities except Tokyo Metropolitan Area and Other regional areas.
(Note 4) “Total amount held” means carrying amounts on the balance sheet (amounts of Trust beneficiary interests in real property and real
property are book values net of depreciation) at the end of fiscal period and rounded off to one dismal place.
(Note 5) “Composition ratio” means the ratio of carrying amounts of each classified assets to total assets on balance sheet and rounded off to
one dismal place.
(Note 6) Rihabili-home Granda Mondoyakujin consists of both trust beneficiary interest in real estate and real estate, therefore, they are
remarked in each category of use distinctively.

（2）Major Assets Owned
The overview of major assets owned by the Investment Corporation (Top 10 properties in net book value as of July
31, 2021) are as follows.
No.

Name of property

T-78

KDX Residence Toyosu
KDX Residence Shukugawa
Hills

R-45
H-22

Tsukui Sun-shine Machida

7,621

6,811.38

Ratio of rental
Occupancy
revenue to total
Major use
Rate (%)
rental revenue(Note 3)(%) (Note 4)
6,811.38
100.0
2.1 Residential

7,257

17,575.39

17,247.78

Book value Leasable area
(Million yen) (m²) (Note 1)

7,037

15,553.33

Leased area(m²) (Note 2)

15,553.33

98.1

2.5

Residential

100.0

NonDisclosure

Healthcare(Note 5)

H-10

Activa Biwa

6,239

39,649.84

39,649.84

100.0

NonDisclosure

Healthcare(Note 5)T-56

KDX Residence Hanzomon

4,922

4,854.23

4,676.25

96.3

1.5

Residential

T-1

KDX Daikanyama Residence

4,732

5,338.99

4,854.33

90.9

1.8

Residential

R-39

KDX Residence Ohori Harbor
View Tower

4,390

11,855.63

10,944.15

92.3

2.0

Residential

100.0

NonDisclosure

Healthcare

H-3

Joy Stage Hachioji

3,762

13,812.27

13,812.27(Note 5)T-52

KDX Residence Togoshi

3,696

4,591.76

4,345.03

94.6

1.4

Residential

H-16

Anesis Teradacho

3,434

7,856.64

7,856.64

100.0

NonDisclosure

Healthcare(Note 5)

Total

53,095

127,899.46

125,751.00

-

18.8

26

(Note 1) “Leasable area” is the floor area of each portfolio asset for which the building is leasable (if a portfolio asset has more than one
building, the total floor area of leasable buildings) that is set forth in a lease agreement as of July 31, 2021.
(Note 2) “Leased area” is the floor space set forth in a lease agreement that has been executed with an end tenant and leased as of July 31,
2021.
(Note 3) “Occupancy rate” = “leased area” / “leasable area” ×100
(Note 4) The ratio of rental revenue to total rental revenue = each property’s real estate lease business revenue / total for all properties.
(Note 5) The Investment Corporation has not obtained consent from the tenant to release this information.

27

（3）Overview of the Portfolio（Detail of Real Estate Portfolio Assets）
The overview of assets under management of the Investment Corporation as of the end of the 19th fiscal period
Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

T-1

KDX Daikanyama Residence

7-1, Sarugakucho,Shibuya-ku,Tokyo

TBI

4,732

6,890

T-3

KDX Odemma Residence
KDX Iwamoto-cho
Residence
KDX Bunkyo Sengoku
Residence
KDX Azumabashi Residence
KDX Shimura Sakaue
Residence

3-10, Nihombashi-Odenmacho,Chuo-ku,Tokyo

TBI

1,671

2,490

16-12, Iwamotocho 2-chome, Chiyoda-ku,Tokyo

TBI

766

1,120

3-2, Honkomagome 6-chome, Bunkyo-ku,Tokyo

TBI

1,436

1,980

9-8, Azumabashi 1-chome, Sumida-ku,Tokyo

TBI

599

1,070

16-5, Higashi-Sakashia 1-chome, Itabashi-ku,Tokyo

TBI

2,587

3,800

TBI

2,159

2,410

T-4
T-5
T-6
T-7
T-9

Cosmo Heim Motosumiyoshi

KDX Musashi Nakahara
Residence
T-11 KDX Chiba Chuo Residence
KDX Kawaguchi Saiwai-cho
T-12
Residence
T-13 KDX Residence Shirokane I
T-10

5-1, Kizukigioncho, Nakahara-ku, Kawasaki-shi,
Kanagawa
18-22, Shimokodanaka 4-chome, Nakahara-ku,
Kawasaki-shi, Kanagawa
2-17, Shindencho, Chuo-ku, Chiba-shi, Chiba

Residential Facilities

Tokyo Metropolitan Area

TBI

643

778

TBI

1,257

1,830

14-24, Saiwaicho 2-chome, Kawaguchi-shi, Saitama

TBI

1,169

1,580

7-8, Shirokanedai 4-chome, Minato-ku, Tokyo

TBI

3,073

3,920

T-15 KDX Residence Shirokane II
KDX Residence MinamiT-16
aoyamaKDX Residence MinamiT-17
azabu
T-18 KDX Residence Shiba Koen

7-8, Shirokanedai 4-chome, Minato-ku, Tokyo

TBI

2,843

3,900

4-8, Minami-Aoyama 3-chome, Minato-ku, Tokyo

TBI

2,258

2,650

3-22, Minami-Azabu 2-chome, Minato-ku, Tokyo

TBI

2,124

2,950

4-16, Shiba 3-chome, Minato-ku, Tokyo

TBI

1,796

2,580

T-19 KDX Residence Azabu East

25-2, Higashi-Azabu 1-chome, Minato-ku, Tokyo

TBI

1,571

2,260

T-20 KDX Residence Takanawa

15-7, Takanawa 3-chome, Minato-ku, Tokyo

TBI

787

1,160

T-21 KDX Residence Nishihara
KDX Residence Daikanyama
T-22
II
KDX Residence Nihombashi
T-24
Suitengu
KDX Residence Nihombashi
T-25
Hakozaki
KDX Residence HigashiT-26
shinjuku
T-27 KDX Residence Yotsuya
KDX Residence NishiT-28
shinjuku
T-29 KDX Residence Kagurazaka
KDX Residence Futako
T-30
Tamagawa
KDX Residence Komazawa
T-31
Koen
T-32 KDX Residence Mishuku

37-4, Nishihara 1-chome, Shibuya-ku, Tokyo

TBI

1,487

2,040

11-22, Ebisu Nishi 2-chome, Shibuya-ku, Tokyo

TBI

785

1,090

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,157

4,310

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1,137

1,490

1-9 Okubo 2-chome, Shinjuku-ku, Tokyo

TBI

3,202

4,490

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,302

3,190

18-15, Nishi-Shinjuku 7-chome, Shinjuku-ku, Tokyo

TBI

1,016

1,510

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

700

1,030

31-29, Seta 2-chome, Setagaya-ku, Tokyo

TBI

1,269

1,600

21-6 Komazawa 5-chome, Setagaya-ku, Tokyo

TBI

895

1,240

37-13, Mishuku 2-chome, Setagaya-ku, Tokyo

TBI

780

1,050

T-33 KDX Residence Yoga

34-21, Seta 5-chome, Setagaya-ku, Tokyo

TBI

685

970

T-34 KDX Residence Shimouma

21-8, Shimouma 1-chome, Setagaya-ku, Tokyo

TBI

625

841

T-35 Raffine Minami-magome
KDX Residence Yukigaya
T-36
OtsukaT-37 KDX Residence Denenchofu

24-8, Minami-Magome 5-chome, Ota-ku, Tokyo

TBI

1,235

1,480

15-13, Minami-Yukigaya 2-chome, Ota-ku, Tokyo

TBI

1,048

1,430

40-14, Denenchofu Honmachi, Ota-ku, Tokyo

TBI

1,061

1,330

T-38 KDX Residence Tamagawa
KDX Residence
T-39
Monzennakacho
KDX Residence
T-40
Okachimachi
KDX Residence MotoT-41
asakusa
KDX Residence Itabashi
T-42
Honcho9-17, Tamagawa 1-chome, Ota-ku, Tokyo

TBI

717

1,030

6-7, Kiba 3-chome, Koto-ku, Tokyo

TBI

782

1,070

28-4, Taito 2-chome, Taito-ku, Tokyo

TBI

857

1,160

8-10, Motoasakusa 4-chome, Taito-ku, Tokyo

TBI

803

1,080

13-16, Yamatocho, Itabashi-ku, Tokyo

TBI

583

848

28

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

T-43 KDX Residence Azusawa
KDX Residence Tobu
T-44
NerimaKDX Residence Yokohama
T-45
KannaiKDX Residence
T-46
Miyamaedaira
T-47 KDX Residence MachidaT-48 KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka

7-13, Azusawa 1-chome, Itabashi-ku, Tokyo

TBI

541

702

27-9, Kitamachi 1-chome, Nerima-ku, Tokyo

TBI

382

565

TBI

756

1,060

TBI

995

1,210

TBI

1,658

2,260

TBI

1,320

1,840

TBI

1,033

1,430

5-9, Bandaicho 3-chome, Naka-ku, Yokohama-shi,
Kanagawa
14-3, Miyamaedaira 3-chome, Miyamae-ku,
Kawasaki-shi, Kanagawa
13-32, Kamitsurumahoncho, Minami-ku,
Sagamihara-shi, Kanagawa
24-13, Midori 4-chome, Sumida-ku, Tokyo
33-4, Nishimbashi-Hamacho 3-chome, Chuo-ku,
Tokyo
8-5, Nihombashi-Horidomecho 1-chome, Chuo-ku,
Tokyo
11-27, Yakumo 3-chome, Meguro-ku, Tokyo

TBI

552

734

TBI

1,321

1,720

29

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)

T-52 KDX Residence Togoshi
KDX Residence Shinagawa
T-53
SeasideT-54 KDX Residence Ojima

1-1, Togoshi 5-chome, Shinagawa-ku, Tokyo
6-7, Higashi-Shinagawa 3-chome, Shinagawa-ku,
Tokyo
8-4, Ojima 4-chome, Koto-ku, Tokyo

TBI

3,696

5,100

TBI

2,533

3,460

TBI

1,791

2,640

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,576

3,530

T-56 KDX Residence Hanzomon

12-1, Kojimachi 2-chome, Chiyoda-ku, Tokyo

TBI

4,922

6,170

T-57 B-Site Akihabara
KDX Residence Kagurazaka
T-58
Dori
T-59 KDX Residence Sendagi

7, Kanda-Sudacho 1-chome, Chiyoda-ku, Tokyo

TBI

856

1,090

120-1, Yaraicho, Shinjuku-ku, Tokyo

TBI

1,367

2,260

43-17, Sendagi 3-chome, Bunkyo-ku, Tokyo

TBI

2,324

2,600

T-60 KDX Residence Seijo

16-25, Seijyo 4-chome, Setagaya-ku, Tokyo

TBI

1,451

1,690

T-61 KDX Residence Akihabara

13-7, Taito Higashi 2-chome, Taito-ku, Tokyo

TBI

1,231

1,680

T-62 KDX Residence Iriya

10-7, Iriya 1-chome, Taito-ku, Tokyo

TBI

1,041

1,480

T-63 KDX Residence Tachikawa

28-29, Akebonocho 2-chome, Tachikawa-shi, Tokyo
10, Mukaicho 1-chome, Tsurumi-ku, Yokohama-shi,
Kanagawa

TBI

2,999

3,850

TBI

1,151

1,590

5-3, Chitose 1-chome, Sumida-ku, Tokyo

TBI

1,086

1,460

13-11, Akasaka 6-chome, Minato-ku, Tokyo

TBI

1,175

2,030

T-67 KDX Residence Kanda

8-2, Uchikanda 2-chome, Chiyoda-ku, Tokyo

TBI

707

1,220

T-68 KDX Residence Ebisu
KDX Residence NishiT-69
magomeT-70 KDX Residence Nishi-azabu
KDX Residence Azabu
T-71
Sendaizaka
KDX Residence Waseda
T-72
Tsurumaki
KDX Residence Bunkyo
T-73
Yushima
KDX Residence
T-74
Kamishakujii

11-16, Ebisu Minami 1-chome, Shibuya-ku, Tokyo

TBI

2,896

4,770

4-4, Minami-Magome 6-chome, Ota-ku, Tokyo

TBI

1,150

1,390

5-10, Nishi-Azabu 3-chome, Minato-ku, Tokyo

TBI

1,231

1,870

1-7, Minami-Azabu 3-chome, Minato-ku, Tokyo

TBI

798

1,230

574-25, Waseda-Tsurumakimachi, Shinjuku-ku,
Tokyo

TBI

554

920

29-2, Yushima 2-chome, Bunkyo-ku, Tokyo

TBI

690

1,020

18-5, Kamishakujii 1-chome, Nerima-ku, Tokyo

TBI

646

880

TBI

761

1,140

TBI

890

1,260

T-64 KDX Residence Tsurumi
KDX Residence Morishita
ChitoseT-66 KDX Residence Akasaka
T-65

Residential Facilities

Tokyo Metropolitan Area

T-77 KDX Residence Ryogoku

44-16, Higashi-Ikebukuro 5-chome, Toshima-ku,
Tokyo
26-14, Shimotakaido 1-chome, Suginami-ku,
Tokyo
19-13, Kamesawa 2-chome, Sumida-ku, Tokyo

TBI

837

1,290

T-78 KDX Residence Toyosu

2-33, Toyosu 1-chome, Koto-ku, Tokyo

TBI

7,621

7,910

T-79 KDX Residence Asagaya

1-47-24, Asagayaminami, Suginami-ku, Tokyo
7-17-35, Hiyoshi, Kohoku-ku, Yokohama-shi,
Kanagawa

TBI

1,961

2,310

TBI

2,678

2,800

4-23-15, Kamikitazawa, Setagaya-ku, Tokyo

TBI

1,395

1,480

3-2-11, Noge, Setagaya-ku, Tokyo

TBI

1,130

1,330

1-9-8 Higashi-Asakusa, Taito-ku, Tokyo

TBI

701

774

413-1 Hongo-cho, Funabashi-shi, Chiba

TBI

1,012

1,070

T-75 KDX Residence Shin-otsuka
T-76 KDX Residence SakurajosuiT-80 KDX Residence Hiyoshi

T-85

KDX Residence
Kamikitazawa
KDX Residence Kaminoge
KDX Residence HigashiAsakusa
KDX Residence NishiFunabashi
KDX Residence Hatagaya

T-86

KDX Residence Asagaya II

T-81
T-82
T-83
T-84

KDX Residence
Gakugeidaigaku
KDX Residence KamataT-88
minami
T-87

2-24-7 Hatagaya Shibuya-ku, Tokyo

TBI

2,629

2,790

3-31-5 Asagaya-minami, Suginami-ku, Tokyo

TBI

975

1,020

2-4-3 Takaban, Meguro-ku, Tokyo

TBI

771

828

3-9-2 Minami-Rokugo, Ota-ku, Tokyo

TBI

1,968

2,210

TBI

655

650

T-90 KDX Residence Mitaka

1-23-20, Kichijoji-Higashimachi, Musashino-shi,Tokyo
4-15-31, Shimorenjaku, Mitaka-shi,Tokyo

TBI

2,687

2,940

T-91 KDX Residence Nakanobu

6-6-1, Nakanobu, Shinagawa-ku, Tokyo

TBI

848

905

T-92 KDX Residence Ichikawa

2-6-12, Ichikawa, Ichikawa-shi, Chiba

TBI

879

909

T-93 KDX Residence Hatchobori

1-8-5, Irifune, Chuo-ku, Tokyo

TBI

3,221

3,560

T-89 KDX Residence Kichijoji

30

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)

T-94 KDX Residence Nakaitabashi

68-11, Yayoicho, Itabashi-ku, Tokyo

TBI

1,861

1,870

T-95 KDX Residence Shonandai

2-9-10, Shonandai, Fujisawa-shi, Kanagawa

TBI

1,565

1,630

2-6, Nakamarucho, Itabashi-ku, Tokyo

TBI

2,355

2,500

T-97 KDX Residence Tennocho

1-30-2, Tennocho, Hodogaya-ku, Yokohama-shi,
Kanagawa

TBI

908

913

T-98 KDX Residence Kawasaki

1-1-12, Nakajima Kawasaki-ku,, Kawasaki-shi,
Kanagawa

TBI

951

1,010

3-9-13, Minami-rokugo, Ota-ku, Tokyo

TBI

815

856

3-25, Kasugamachi, Aoba-ku, Sendai-shi, Miyagi
24-28, Izumi 2-chome, Higashi-ku, Nagoya-shi,
Aichi
49-6, Shinsakae 1-chome, Naka-ku, Nagoya-shi,
Aichi
7-15, Kawaracho 1-chome, Chuo-ku, Osaka-shi,
Osaka
2-43, Sakaemachi 3-chome, Takarazuka-shi, Hyogo
21-27, Shimizu 1-chome, Minami-ku, Fukuoka-shi,
Fukuoka
1000-4, Minami 2-jo 40-chome, Chuo-ku, Sapporoshi, Hokkaido
2-35, Kikusui 4-jo 3-chome, Shiroishi-ku, Sapporoshi, Hokkaido
4-16, Hiragishi 4-jo 3-chome, Toyohira-ku, Sapporoshi, Hokkaido
15-42, Ichibancho 1-chome, Aoba-ku, Sendai-shi,
Miyagi13-22, Higashi-sakura 2-chome, Higashi-ku, Nagoyashi, Aichi
5-10, Higasi-sakura 1-chome, Higashi-ku, Nagoyashi, Aichi
4-27, Yokota 2-chome, Atsuta-ku, Nagoya-shi, Aichi
40-3, Nishi 7-jo Kakekoshicho, Shimogyo-ku, Kyotoshi, Kyoto
30-2, Saiintakadacho, Ukyo-ku, Kyoto-shi, Kyoto

TBI

897

1,360

TBI

1,017

1,490

TBI

962

1,470

TBI

2,633

3,740

TBI

1,296

2,030

TBI

1,507

2,110

TBI

750

1,050

TBI

836

1,090

TBI

448

604

TBI

485

723

TBI

2,189

2,610

TBI

840

1,070

TBI

777

1,050

TBI

756

941

TBI

406

521

T-96

KDX Residence Ikebukuro
West

T-99

KDX Residence Kamataminami II

R-2

KDX Jozenjidori Residence

R-3

KDX Izumi Residence

R-4

KDX Chihaya Residence

R-7

KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

KDX Residence Odori Koen

R-5

Other Regional Area

KDX Residence Kikusui
R-10
Yojo
KDX Residence Toyohira
R-11
Koen
R-13 KDX Residence Ichiban-cho
KDX Residence HigashiR-16
sakura I
KDX Residence HigashiR-17
sakura II
R-18 KDX Residence Jingumae
R-19 KDX Residence Nishi-oji
R-20 KDX Residence Saiin

31

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

R-21 KDX Residence Namba
KDX Residence NambaR-22
minamiKDX Residence Ibaraki I・II
R-24

6-16, Inari 1-chome, Naniwa-ku, Osaka-shi, Osaka
11-9, Shiokusa 3-chome, Naniwa-ku, Osaka-shi,
Osaka

TBI

1,327

1,750

TBI

1,241

1,660

9-11, 9-12, Takehashicho, Ibaragi-shi, Osaka

TBI

1,270

1,459

KDX Residence ToyonakaR-25
minami
R-26 KDX Residence Moriguchi

7-22, Shonaihigashicho 2-chome, Toyonaka-shi,Osaka
12-12, Dainichihigasihmachi, Moriguchi-shi, Osaka
8-10, Ninomiyacho 4-chome, Chuo-ku, Kobe-shi,
Hyogo
20-10, Oharacho, Ashiya-shi, Hyogo
10-5, Funairisaiwaicho, Naka-ku, Hiroshima-shi,
Hiroshima
6-22, Chikukohonmachi, Hakata-ku, Fukuoka-shi,
Fukuoka
5-7, Minato 3-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
10-17, Hiraojyosuimachi, Chuo-ku, Fukuoka-shi,
Fukuoka
5-31, Shinsakae 1-chome, Naka-ku, Nagoya-shi,
Aichi
9-3, Moriminamimachi 1-chome, Higashinada-ku,
Kobe-shi, Hyogo

TBI

654

940

TBI

496

691

TBI

1,047

1,260

TBI

1,476

2,000

TBI

532

759

TBI

627

944

TBI

709

927

TBI

728

962

TBI

3,365

4,620

TBI

951

1,170

2-14, Hommachibashi, Chuo-ku, Osaka-shi, Osaka

TBI

3,093

3,720

1-8, Minamikusatsu 1-chome, Kusatsu-shi, Shiga

TBI

1,935

2,480

TBI

4,390

5,190

TBI

877

1,770

TBI

1,237

1,710

TBI

624

754

TBI

1,730

1,780

TBI

2,433

2,630

7-1, Hinoikecho, Nishinomiya-shi, Hyogo

TBI

7,257

7,380

2-13 Teppocho-nihsi, Miyagino-ku, Sendai-shi,
Miyagi

TBI(Note 2)

R-27 KDX Residence Sannomiya
R-28 Ashiya Royal Homes
KDX Residence Funairi
R-29
Saiwai-cho
KDX Residence TenjinR-30
higashi II
R-32 KDX Residence Nishi Koen

Other Regional Area

Residential Facilities

KDX Residence Hirao JosuiR-33
machi
R-35 Leopalace Flat Shin-sakae
R-36
R-37
R-38
R-39
R-40

KDX Residence Konan
YamateKDX Residence
Hommachibashi
KDX Residence Minamikusatsu
KDX Residence Ohori
Harbor View Tower
KDX Residence Minamisanjo

R-41 Serenite Kita-kyuhoji
Serenite Nishinomiya
R-42
HommachiR-43 KDX Residence Nishijin
R-44 Serenite Kobe Motomachi
KDX Residence Shukugawa
Hills
KDX Residence SendaiekiR-46
higashiR-45

2-18, Minato 1-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
3-2, Minami 3-jo Nishi 8-chome, Chuo-ku, Sapporoshi, Hokkaido
3-15, Kitakyuhojicho 1-chome, Chuo-ku, Osaka-shi,
Osaka
5-26, Hommachi, Nishinomiya-shi, Hyogo
24-30, Nishijin 2-chome, Sawara-ku, Fukuoka-shi,
Fukuoka
1-22, Kaigandori 3-chome, Chuo-ku, Kobe-shi,
Hyogo

Subtotal
H-1

1,450
258,918

2-15-21 Kitakojiya, Ota-ku, Tokyo

TBI

1,084

1,120

3-26-24 Minamidai, Nakano-ku, Tokyo

TBI

1,758

1,770

924-2 Yokokawamachi, Hachioji-shi, Tokyo
2-22-4 Hijirigaoka, Tama-shi, Tokyo (Building A)
H-4 Yuimaru Hijirigaoka(Note 2)
2-20-6 Hijirigaoka, Tama-shi, Tokyo (Building B)
2-21-2 Hijirigaoka, Tama-shi, Tokyo (Building C)
2-23-6, Inukura, Miyamae-ku, Kawasaki-shi,
H-5 Nichii Home Tama Plaza
Kanagawa
H-21 Plaisant Grand Ota tamagawa 2-19-4 Tamagawa,Ota-ku, Tokyo
1-11-7 Oyamagaoka Machida-shi, Tokyo (WestTsukui Sun-shine Machida
Tower)
H-22 (Note2)
1-11-8 Oyamagaoka Machida-shi, Tokyo (East
Tower)
H-23 Serabi Ebisu
2-10-20, Mita, Meguro-ku, Tokyo
6-3-1 Tsukisamuchuodori, Toyohira-ku, Sapporo-shi,
H-6 TenHokkaido
13-7-10 Nishioka Sanjo, Toyohira-ku, Sapporo-shi,
H-7 Irise Nishioka
Hokkaido
H-8 Izarie Eniwa Building
1-8-1 Aioimachi, Eniwa-shi, Hokkaido (Note 4)

TBI

3,762

3,790

TBI

1,059

1,120

TBI

2,778

2,980

TBI

3,201

3,200

TBI

7,037

7,090

TBI

1,715

1,700

TBI

2,550

2,660

TBI

798

860

TBI

1,535

1,730

H-9

TBI

911

992

TBI

6,239

6,570

H-2

Healthcare Facilities

Tokyo Metropolitan Area

H-3

Irise Kamata/Yuseien
Nichii Home NakanoMinamidai
Joy Stage Hachioji

1,402
201,367

Other Regional Area

Sawayaka Sakura Nibankan

H-10 Activa Biwa(Note 2)

1-10-3 Oroshimachi, Akita-shi, Akita
6-16-16 Ogoto, Otsu-shi, Shiga
6-11-8 Ogoto, Otsu-shi, Shiga

32

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

6-17-17 Ogoto, Otsu-shi, Shiga
Sompo Care LAVIERE Kobe
TarumiRihabili-home Granda Mondo
H-12
Yakujin
H-13 Excellent Nishinomiya

285 Sarukura, Myodanicho, Tarumi-ku, Kobe-shi,
Hyogo

H-15 Excellent Kitano

10 Kitanohigashi, kobaicho, kita-ku, Kyoto-shi, Kyoto

TBI

746

782

H-16 Anesis Teradacho

1-4-24, Hayashiji, Ikuno-ku, Osaka-shi, Osaka

TBI

3,434

3,640

H-17 Rococo-riha

6-7 Hozan-cho, Toyonaka-shi, Osaka

TBI

2,030

2,170

H-18 Orage Suma

3-622-11, Wakakusa-cho, Suma-ku, Kobe-shi, Hyogo

TBI

2,735

2,810

H-11

10-10 Hayashidacho, Nishinomiya-shi, Hyogo
2-4-3 Sumiredai, Nishinomiya-shi, Hyogo

TBI
TBI and
RE
TBI

2,039

2,110

1,188

1,250

910

976

33

Appraisal value

Area

Use

No.

Name of property

Location

Form ofownership(Note 3)

Book
value
(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)Other Regional
Area
OthersHealthcare Facilities

H-19 Canadian Hill

2-3-1 Nagaminedai, Nada-ku, Kobe-shi, Hyogo

TBI

1,815

1,880

H-20 Anesis Hyogo

1-8-21, Yoshida-cho, Hyogo-ku, Kobe-shi, Hyogo
1-10-13, Mikage tsuka-machi, Higashi nada-ku,
Kobe-shi, Hyogo

TBI

1,388

1,440

TBI

1,122

1,380

6-6, Okuhata, Nishinomiya-shi, Hyogo

TBI

2,842

2,820

4-12-1, Kitano-cho, Chuo-ku, Kobe-shi, Hyogo

TBI

1,802

1,800

57-2 Tachino Oura-aza, Tohokumachi-Oaza,
Kamikita-gun, Aomori

TBI

1,263

1,380

57,75160,020H-24 Arute Ishiyagawa
Medical-home Granda
H-25
Kurakuen
Rihabili-home Granda
H-26
Kobe Kitano
H-14 Gran Hills Ogawarako

Subtotal

Tokyo
Metropolitan Area

Accommodation
Facilities

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

3-44-12 Minami-Otsuka, Toshima-ku, Tokyo

TBI

2,448

2,380

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

2-10-32 Kitasaiwai, Nishi-ku, Yokohama-shi,
Kanagawa

TBI

2,636

2,600

Subtotal

5,085

4,980

Total

264,204

323,918(Note 1) “Appraisal value at the end of the fiscal period” is the appraisal value in a real property appraisal prepared, pursuant to the asset
appraisal techniques and standards in the Investment Corporation’s certificate of incorporation and the rules of the Investment Trusts
Association, Japan, by Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K. or
Tanizawa Sogo Appraisal Co., Ltd.
(Note 2) R-24 and H-22 consist of two buildings and H-4, H-10 consist of three buildings, book value and appraisal value are total amount ofeach value of the properties.
(Note 3) “TBI” represents trust beneficiary interest in real estate and “RE” represents real estate.
(Note 4) Due to the disposal of replotting, the residence indication was changed as of March 13, 2021.

34

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as follows.
18th(From August 1, 2020 to January 31, 2021)

19th(From February 1, 2021 to July 31, 2021)

Area
Use

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenants at
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)No.

Name of property

T-1

KDX Daikanyama Residence

1

89.6

156

1.9

1

90.9

154

1.8

T-3

KDX Odemma Residence
KDX Iwamoto-cho
Residence
KDX Bunkyo Sengoku
Residence
KDX Azumabashi Residence
KDX Shimura Sakaue
Residence
Cosmo Heim Motosumiyoshi
KDX Musashi Nakahara
Residence
KDX Chiba Chuo Residence
KDX Kawaguchi Saiwai-cho
Residence
KDX Residence Shirokane I

1

94.6

57

0.7

1

98.2

54

0.6

1

95.2

26

0.3

1

90.9

27

0.3

1

94.0

52

0.6

1

94.8

51

0.6

1

95.5

25

0.3

1

93.2

26

0.3

1

98.9

106

1.3

1

100.0

108

1.2

1

96.7

58

0.7

1

93.9

77

0.9

1

100.0

27

0.3

1

100.0

27

0.3

1

95.3

62

0.7

1

98.1

65

0.7

1

96.6

49

0.6

1

98.3

50

0.6

1

96.3

109

1.3

1

98.6

112

1.3

KDX Residence Shirokane II
KDX Residence MinamiT-16
aoyamaKDX Residence MinamiT-17
azabu
T-18 KDX Residence Shiba Koen

1

98.1

93

1.1

1

95.2

90

1.0

1

93.5

61

0.7

1

73.1

50

0.6

1

98.4

74

0.9

1

93.7

73

0.8

1

88.5

64

0.8

1

93.5

62

0.7

T-19

KDX Residence Azabu East

1

94.3

54

0.6

1

94.3

55

0.6

T-20

KDX Residence Takanawa

1

100.0

26

0.3

1

91.1

27

0.3

T-21

1

94.2

51

0.6

1

97.9

51

0.6

1

95.5

25

0.3

1

79.7

25

0.3

1

100.0

24

0.3

－

－

0

0.0

1

100.0

104

1.2

1

100.0

106

1.2

1

89.8

39

0.5

1

94.3

39

0.4

1

97.0

110

1.3

1

97.0

111

1.3

1

94.0

78

0.9

1

97.8

83

1.0

1

96.3

35

0.4

1

94.5

36

0.4

1

94.2

24

0.3

1

97.1

24

0.3

1

100.0

43

0.5

1

97.5

44

0.5

1

97.8

28

0.3

1

100.0

29

0.3

T-32

KDX Residence Nishihara
KDX Residence Daikanyama
II
KDX Residence Sendagaya
KDX Residence Nihombashi
Suitengu
KDX Residence Nihombashi
Hakozaki
KDX Residence Higashishinjuku
KDX Residence Yotsuya
KDX Residence Nishishinjuku
KDX Residence Kagurazaka
KDX Residence Futako
Tamagawa
KDX Residence Komazawa
Koen
KDX Residence Mishuku

1

95.3

26

0.3

1

90.7

26

0.3

T-33

KDX Residence Yoga

1

97.5

24

0.3

1

97.5

24

0.3

T-34

KDX Residence Shimouma

1

100.0

21

0.3

1

96.9

21

0.3

Raffine Minami-magome
KDX Residence Yukigaya
T-36
OtsukaT-37 KDX Residence Denenchofu

1

100.0

41

0.5

1

100.0

41

0.5

1

94.6

39

0.5

1

93.2

38

0.4

1

97.2

38

0.5

1

97.2

38

0.4

KDX Residence Tamagawa
KDX Residence
Monzennakacho
KDX Residence
Okachimachi
KDX Residence Motoasakusa
KDX Residence Itabashi
Honcho

1

96.5

28

0.3

1

96.5

29

0.3

1

90.0

27

0.3

1

96.1

27

0.3

1

100.0

30

0.4

1

100.0

33

0.4

1

95.0

30

0.4

1

92.5

30

0.3

1

100.0

23

0.3

1

92.3

23

0.3

T-4
T-5
T-6
T-7
T-9
T-10
T-11
T-12
T-13
T-15

Residential Facilities

Tokyo Metropolitan Area

T-22
T-23
T-24
T-25
T-26
T-27
T-28
T-29
T-30
T-31

T-35

T-38
T-39
T-40
T-41
T-42

35

18th
(From August 1, 2020 to January 31, 2021)

Area
Use

No.

Name of property

19th(From February 1, 2021 to July 31, 2021)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)T-43

KDX Residence Azusawa
KDX Residence Tobu
NerimaKDX Residence Yokohama
T-45
KannaiKDX Residence
T-46
Miyamaedaira
T-47 KDX Residence Machida

1

97.9

20

0.2

1

95.1

20

0.2

T-44

1

97.5

17

0.2

1

100.0

18

0.2

1

91.8

32

0.4

1

97.5

35

0.4

1

95.4

37

0.4

1

100.0

37

0.4

1

98.0

63

0.8

1

98.1

66

0.8

KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka

1

97.3

45

0.5

1

100.0

46

0.5

1

100.0

35

0.4

1

94.0

34

0.4

1

95.4

19

0.2

1

96.8

20

0.2

1

96.5

39

0.5

1

100.0

38

0.4

T-48

36

18th
(From August 1, 2020 to January 31, 2021)

19th(From February 1, 2021 to July 31, 2021)

Area
Use

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)No.

Name of property

T-52

1

94.9

122

1.5

1

94.6

122

1.4

1

89.4

79

1.0

1

94.5

84

1.0

T-54

KDX Residence Togoshi
KDX Residence Shinagawa
SeasideKDX Residence Ojima

1

88.9

64

0.8

1

94.9

65

0.7

T-55

KDX Residence Oyama

1

96.7

92

1.1

1

98.6

94

1.1

T-56

KDX Residence Hanzomon

1

97.8

135

1.6

1

96.3

134

1.5

T-57

1

100.0

26

0.3

1

100.0

24

0.3

1

92.5

50

0.6

1

100.0

51

0.6

T-59

B-Site Akihabara
KDX Residence Kagurazaka
Dori
KDX Residence Sendagi

1

100.0

66

0.8

1

100.0

68

0.8

T-60

KDX Residence Seijo

1

94.6

42

0.5

1

100.0

44

0.5

T-61

KDX Residence Akihabara

1

90.9

43

0.5

1

97.6

42

0.5

T-62

KDX Residence Iriya

1

94.5

39

0.5

1

97.3

39

0.4

T-63

KDX Residence Tachikawa

1

91.4

96

1.1

1

96.0

101

1.2

T-64

1

100.0

55

0.7

1

100.0

55

0.6

1

98.7

39

0.5

1

92.2

38

0.4

T-66

KDX Residence Tsurumi
KDX Residence Morishita
ChitoseKDX Residence Akasaka

1

100.0

34

0.4

1

93.1

40

0.5

T-67

KDX Residence Kanda

1

95.0

29

0.4

1

93.9

30

0.4

T-68

1

90.4

88

1.1

1

97.2

92

1.1

1

93.0

31

0.4

1

89.1

33

0.4

1

86.0

39

0.5

1

91.3

38

0.4

1

87.3

26

0.3

1

97.1

27

0.3

1

100.0

22

0.3

1

95.2

21

0.2

1

100.0

24

0.3

1

95.6

25

0.3

1

93.5

23

0.3

1

93.7

23

0.3

T-75

KDX Residence Ebisu
KDX Residence Nishimagome
KDX Residence Nishi-azabu
KDX Residence Azabu
Sendaizaka
KDX Residence Waseda
Tsurumaki
KDX Residence Bunkyo
Yushima
KDX Residence
Kamishakujii
KDX Residence Shin-otsuka

1

100.0

22

0.3

1

100.0

28

0.3

T-76

KDX Residce Sakurajosui

1

88.3

27

0.3

1

95.9

29

0.3

T-77

KDX Residence Ryogoku

1

91.4

29

0.4

1

85.8

29

0.3

T-78

KDX Residence Toyosu

1

100.0

180

2.2

1

100.0

180

2.1

T-79

KDX Residence Asagaya

1

100.0

50

0.6

1

100.0

51

0.6

T-80

KDX Residence Hiyoshi
KDX Residence
Kamikitazawa
KDX Residence Kaminoge

1

99.0

80

1.0

1

98.1

80

0.9

1

97.4

37

0.4

1

100.0

38

0.4

1

100.0

26

0.3

1

100.0

26

0.3

KDX Residence Kaminoge
KDX Residence NishiFunabashi
KDX Residence Hatagaya

1

100.0

20

0.2

1

95.1

21

0.2

1

100.0

28

0.3

1

98.3

31

0.4

1

95.7

61

0.7

1

92.9

61

0.7

1

90.6

22

0.3

1

96.9

23

0.3

1

78.8

15

0.2

1

91.4

16

0.2

1

100.0

50

0.6

1

100.0

50

0.6

T-89

KDX Residence Asagaya II
KDX
Residence
Gakugeidaigaku
KDX Residence Kamataminami
KDX Residence Kichijoji

1

87.4

12

0.1

1

90.1

15

0.2

T-90

KDX Residence Mitaka

1

73.6

42

0.5

1

97.7

64

0.7

T-91

KDX Residence Nakanobu

1

95.2

19

0.2

1

95.2

21

0.2

T-92

KDX Residence Ichika

1

95.8

15

0.2

1

97.9

22

0.3

T-93

KDX Residence Hatchobori

1

39.2

8

0.1

1

95.8

42

0.5

T-94

KDX Residence Nakaitabashi

1

6.5

1

0.0

1

98.7

40

0.5

T-53

T-58

T-65

T-69
T-70

Residential Facilities

Tokyo Metropolitan Area

T-71
T-72
T-73
T-74

T-81
T-82
T-83
T-84
T-85
T-86
T-87
T-88

37

18th
(From August 1, 2020 to January 31, 2021)

Area
Use

No.

Name of property

T-95

KDX Residence Shonandai
KDX Residence IkebukuroWest
KDX Residence Tennocho

T-96

19th
(From February 1, 2021 to July 31, 2021)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)
1

94.1

22

0.3

1

98.0

47

0.5

1

100.0

－

－

1

100.0

41

0.5

－

－

－

－

1

97.8

20

0.2

－

－

－

－

1

100.0

13

0.2

－

－

－

－

1

100.0

6

0.1

R-2

KDX Residence Kawasaki
KDX Residence Kamataminami II
KDX Jozenji Dori Residence

1

95.9

50

0.6

1

93.6

52

0.6

R-3

KDX Izumi Residence

1

95.0

42

0.5

1

92.9

41

0.5

R-4

1

95.0

46

0.6

1

97.5

48

0.6

1

91.3

106

1.3

1

95.3

111

1.3

R-7

KDX Chihaya Residence
KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

1

100.0

60

0.7

1

94.3

60

0.7

R-8

KDX Shimizu Residence

1

95.9

74

0.9

1

97.9

75

0.9

R-9

1

92.3

33

0.4

1

96.2

34

0.4

1

97.9

34

0.4

1

99.0

39

0.4

1

93.8

22

0.3

1

95.3

23

0.3

1

93.7

26

0.3

1

93.5

27

0.3

1

91.4

87

1.0

1

89.8

90

1.0

1

100.0

37

0.5

1

94.0

37

0.4

R-18

KDX Residence Odori Koen
KDX Residence Kikusui
Yojo
KDX Residence Toyohira
Koen
KDX Residence Ichiban-cho
KDX Residence Higashisakura I
KDX Residence Higashisakura II
KDX Residence Jingumae

1

94.6

39

0.5

1

94.4

39

0.5

R-19

KDX Residence Nishi-oji

1

96.9

33

0.4

1

97.9

35

0.4

T-97
T-98
T-99

R-5

Other Regional Area

R-10
R-11
R-13
R-16
R-17

38

18th
(From August 1, 2020 to January 31, 2021)

Area
Use

No.

Name of property

19th(From February 1, 2021 to July 31, 2021)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)

R-20

KDX Residence Saiin

1

97.9

18

0.2

1

96.0

19

0.2

R-21

1

97.0

56

0.7

1

99.2

57

0.7

1

92.7

55

0.7

1

98.5

54

0.6

1

98.4

54

0.6

1

98.3

54

0.6

1

98.4

29

0.4

1

97.0

29

0.3

R-26

KDX Residence Namba
KDX Residence Nambaminami
KDX Residence Ibaraki I・IIKDX Residence Toyonakaminami
KDX Residence Moriguchi

1

96.5

24

0.3

1

100.0

24

0.3

R-27

KDX Residence Sannomiya

1

95.0

38

0.5

1

94.5

38

0.4

R-28

Ashiya Royal Homes
KDX Residence Funairi
Saiwai-cho
KDX Residence Tenjinhigashi II
KDX Residence Nishi Koen
KDX Residence Hirao Josuimachi
Leopalace Flat Shin-sakae
KDX Residence Koman
YamateKDX Residence
Hommachibashi
KDX Residence Minamikusatsu
KDX Residence Ohori
Harbor View Tower
KDX Residence Minamisanjo
Serenite Kita-kyuhoji
Serenite Nishinomiya
Hommachi
KDX Residence Nishijin

1

83.1

62

0.7

1

83.8

58

0.7

1

96.9

28

0.3

1

100.0

28

0.3

1

96.8

32

0.4

1

96.8

31

0.4

1

94.4

31

0.4

1

92.2

31

0.4

1

95.3

28

0.3

1

87.8

27

0.3

1

100.0

121

1.5

1

100.0

121

1.4

1

98.4

33

0.4

1

100.0

33

0.4

1

95.8

105

1.3

1

99.1

108

1.2

1

95.5

100

1.2

1

95.6

101

1.2

1

86.0

174

2.1

1

92.3

179

2.0

1

94.9

53

0.6

1

97.7

56

0.7

1

94.8

41

0.5

1

91.5

42

0.5

1

98.1

23

0.3

1

92.5

23

0.3

1

95.1

58

0.7

1

91.2

57

0.7

KDX Residence Hiyoshi
KDX Residence Shukugawa
Hills
KDX Residence Sendaiekihigashi
Subtotal

1

99.1

75

0.9

1

100.0

79

0.9

1

98.0

213

2.6

1

98.1

217

2.5

1

89.8

39

0.5

1

93.2

40

0.5

6,564

78.3

6,863

78.4

R-22
R-24
R-25

R-29
R-30

Other Regional Area

Residential Facilities

R-32
R-33
R-35
R-36
R-37
R-38
R-39
R-40
R-41
R-42
R-43
R-44
R-45
R-46

131

94.5

133

96.2

1

100.0

1

100.0

1

100.0

1

100.0

H-3

Irise Kamata/Yuseien
NichiiHome
NakanoMinamidai
Joy Stage Hachioji

1

100.0

1

100.0

H-4

Yuimaru Hijirigaoka

1

100.0

1

100.0

H-5

Nichii Home Tama Plaza

1

100.0

1

100.0

H-21

Plaisant Grand Ota tamagawa

1

100.0

1

100.0

H-22

Tsukui Sun-shine Machida

1

100.0

1

100.0

H-23

Serabi Ebisu

1

100.0

1

100.0

H-6

Ten

1

NonNondisclosure disclosure
100.0 （Note5）（Note5）

1

100.0

H-7

Irise Nishioka

1

100.0

1

100.0

H-8

Izarie Eniwa Building

1

100.0

1

100.0

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

H-10

Activa Biwa
Sompo Care LAVIERE Kobe
TarumiRihabili-home Granda Mondo
Yakujin
Excellent Nishinomiya

1

100.0

1

100.0

1

100.0

1

100.0

1

96.2

1

100.0

1

100.0

1

100.0

H-1

Other Regional Area

Healthcare Facilities

Tokyo Metropolitan Area

H-2

H-11
H-12
H-13

NonNondisclosure disclosure（Note5）（Note5）39

18th(From August 1, 2020 to January 31, 2021)

Area
Use

No.

Name of property

19th(From February 1, 2021 to July 31, 2021)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)

H-15

Excellent Kitano

1

100.0

1

100.0

H-16

Anesis Teradacho

1

100.0

1

100.0

H-17

Rococo-riha

1

100.0

1

100.0

H-18

Orage Suma

1

100.0

1

100.0

H-19

Canadian Hill

1

100.0

1

100.0

40

18th
(From August 1, 2020 to January 31, 2021)

Area

Use

No.

H-20

19th
(From February 1, 2021 to July 31, 2021)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)Name of property

Anesis Hyogo

1

100.0

Other

Healthcare Facilities

Other Regional
Area

NonNondisclosure disclosure（Note5）（Note5）

1

100.0

1

100.0

H-24

Arute Ishiyagawa

1

100.0

H-25

Medical-home Granda
Kurakuen

－

－

－

－

1

100.0

H-26

Rihabili-home Granda Kobe
Kitano

－

－

－

－

1

100.0

H-14

Gran Hills Ogawarako

1

100.0 disclosure disclosure

1

100.0

26

100.0

1

100.0

1

100.0

2

100.0

161

97.4

Non（Note5）

24

99.9

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

1

100.0

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

1

100.0

Subtotal

2

100.0

Total

157

96.2

Subtotal（Note5）（Note5）

Non（Note5）

1,696

20.2

Tokyo
Metropolitan
Area
Accommodation
Facilities

NonNondisclosure disclosure（Note5）

NonNondisclosure disclosure（Note5）

8,382

100.0

1,767

20.2

NonNondisclosure disclosure（Note5）（Note5）

8,758

100.0

(Note1) Regarding residential, in the “number of tenants” column, if a master lease agreement has been executed with a master lease company,
1 is entered as the number of tenants. As of July 31, 2021, master lease agreements had been executed for all investment assets of theInvestment Corporation except for Raffine Minami-magome; the “total” for the “number of tenants” is the sum of the master leaseagreements for the properties (running number); and for the properties with no master lease agreement, the number of end tenants isentered. For reference, the total number of master lease companies is 12.
"Total number of tenants" of the healthcare facility and accommodation facility lists the total number of tenants of the master lease
contract pertaining to each asset effective as of the end of July 2021.
(Note2) The “occupancy rate” = leased area / leasable area x 100. The “total” for the “occupancy rate” column is the occupancy rate for the
portfolio as a whole.
(Note3) “Rental and other operating revenues” is the sum of a property’s rental business income for each fiscal period.
(Note4) (T-23) KDX Residence Sendagaya was sold on February 5, 2021.
(Note5) The Investment Corporation has not obtained consent from the tenant to release this information.

（4）Details of Specified Transaction
The details of specified transaction at the end of 19th fiscal period are as follows.
Contact amount (million yen)Classification

Transaction

Over-the-counter transactions

Interest rate swap
(Floating-rate to fixedrate interest)(Note 1)

Over 1 year
113,720(Note 1)

Fair value(million yen)
(Note 2) (Note 3)

95,070-487

Total
113,720
95,070-487－(Note 1) The interest rate swap contract amount, etc. is based on the assumed principal.
(Note 2) With respect to those meeting the requirements for special treatment under the accounting standards for financial products, the fairvalue is not listed.
(Note 3) Appraised at the price presented by the financial institution that is the other party in the transaction.

(5) Other Assets
Real estate properties as well as beneficiary interests having real estate properties as major trust assets
are all set forth in (3) Details of portfolio assets above. There are not any other specified assets theInvestment Corporation owns at the end of 17th fiscal period except for those mentioned in (3) above.
(6) Asset Ownership per Country or Region
There is no relevant information for countries and regions other than Japan.

41

4. Capital Expenditures for Property(1)Planned Capital Expenditures

The table below shows major capital expenditures for renovations, repairs and other projects that are planned forthe 20th fiscal period ending January 31, 2022. These expenditures are for real estate owned by the Investment
Corporation and real estate in trusts in which the Investment Corporation owns trust beneficiary rights. Theseplanned projects may include some expenditure that will be recorded as expenses rather than capital expenditures
for accounting purposes.

No.

Name of property

Planned amount of capital
expenditure(million yen)
Payment Total of
Total for the advanced
period payment

Location

PurposeScheduled

Otsu-shi,Shiga

Hot-water supply
pipe replacement
construction for
Residence Bldg
(No. 1~8)

From August 2021 To
January 2022

161

－

－

From August 2021 To
January 2022

72

－

－

From August 2021 To
January 2022

35

－

－

From August 2021 To
January 2022

19

－

－

From August 2021 To
January 2022

18

－

－

H-10

Activa Biwa

T-47

KDX Residence Machida

Sagamiharashi, Kanagawa

T-33

KDX Residence Yoga

Setagaya-ku,
Tokyo

T-57

B-Site Akihabara

Chiyoda-ku,
Tokyo

R-28

Ashiya Royal Homes

Ashiya-shi,
Hyogo

Major renewal
construction
Major renewal
construction
Restoring
construction
Elevatingequipment
replacement
construction（2）Capital Expenditures During the 19th Fiscal Period
The table below shows major capital expenditures for renovations, repairs and other projects in the 19th fiscal period
ended July 2021. The construction cost for the period amounted to 990 million yen, consisting of 625 million yen of
capital expenditures and 365 million yen of repair and maintenance expenses.
No.

Name of property

Capital expenditures(million yen)

Location

PurposeTerm

Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
In-room value-up
construction
Elevating equipment
replacement
construction

From February 2021
To June 2021

84

From April 2021 To
July 2021

42

From April 2021 To
July 2021

35

From March 2021 To
July 2021

35

From March 2021 To
July 2021

34

From June 2021 To
July 2021

8

From May 2021 To
June 2021

7

T-63

KDX Residence Tachikawa

Tachikawashi, Tokyo

T-60

KDX Residence Seijo

Setagaya-ku,
Tokyo

H-1

Irise Kamata/Yuseien

Ota-ku, Tokyo

T-32

KDX Residence Misyuku

Setagaya-ku,
Tokyo

T-34

KDX Residence Shimouma

Setagaya-ku,
Tokyo

T-22

KDX Residence Daikanyama II

Shibuya-ku,
Tokyo

T-10

KDX Musashi Nakahara
Residence

Kawasaki-shi,
Kanagawa

Other
Total

377
625

42

(3)

Reserved Funds for Long-term Maintenance Plan

In accordance with its long-term repair and maintenance plan for each property, the Investment Corporation setsaside, from the cash flow during the 19th fiscal period, repair and maintenance reserves designed to finance paymentof future medium- to long-term major repair and maintenance work.
(million yen)

Term
Reserve balance at the
beginning of the period
Amount of reserve
during the period
Reversal of reserves
during the period
Amount carriedforward to the next
period

15th
16th
17th
18th
19th
From Feb. 1, 2019 From Aug. 1, 2019 From Feb. 1, 2020 From Aug. 1, 2020 From Feb. 1, 2021
to Jul. 31, 2020
to Jan. 31, 2021
to Jul. 31, 2021
to Jan. 31, 2020
to Jul. 31, 2019
831

898

921

953

982

71

36

41

29

37

4

12

9

―

4

898

921

953

982

1,015

43

5. Expenditures and Liabilities(1) Details of Asset Management Expenses(in thousands of yen)
18th
From August 1, 2020
to January 31, 2021

Item(ⅰ) Asset management fees (Note)(ⅱ) Asset custody fees(ⅲ) Administrative service fees(ⅳ) Directors’ compensation(ⅴ) Other operating expenses
Total

19th
From February 1, 2021
to July 31, 2021
645,144
14,60048,792
8,100
260,792
977,430

668,991
15,03450,3688,100
297,440
1,039,935（Note）There are other asset management fees in addition to the amount set forth above, and asset management fees pertaining to property
acquisitions (18th fiscal period: 105,442 thousand yen and 19th fiscal period: 69,632 thousand yen) and sold fee pertaining to property
sold (19th fiscal period: 5,550 thousand yen).

(2)

Status of Interest-bearing Debt

Borrowings as of July 31, 2021 are as follows.
Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Short-term loans payable

Sumitomo Mitsui Banking Corporation

February 28, 2020

1,000

-

0.428

February 28, 2021

Sumitomo Mitsui Banking Corporation

March 2, 2020

500

-

0.428

February 28, 2021

Sumitomo Mitsui Banking Corporation

July 31, 2020

500

-

0.381

July 31, 2021

Subtotal

Current portion of long-term borrowings

2,000

-

Sumitomo Mitsui Banking Corporation

January 31, 2014

1,000

-

1.221

July 31, 2021

Aozora Bank, Ltd.

March 28, 2014

1,350

-

1.183

March 31, 2021

Sumitomo Mitsui Banking Corporation)

July 30, 2018

1,000

-

0.409

July 31, 2021

Shinsei Bank, Ltd.

July 30, 2018

1,000

-

0.409

July 31, 2021

MUFG Bank, Ltd.

July 30, 2018

500

-

0.409

July 31, 2021

Mizuho Bank, Ltd.

July 30, 2018

500

-

0.409

July 31, 2021

MUFG Bank, Ltd.

January 31, 2020

900

-

0.456

July 31, 2021

Mizuho Bank, Ltd.

January 31, 2020

500

-

0.456

July 31, 2021

Sumitomo Mitsui Banking Corporation

1,100

1,100

MUFG Bank, Ltd.

1,100

1,100

Mizuho Bank, Ltd.

600

600
0.916

August 7, 2021

Aozora Bank, Ltd.

350

350

Resona Bank, Ltd.

300

300

Mizuho Trust & Banking Co., Ltd.

300

300

August 7, 2014

1,000

1,000

0.996

August 7, 2021

Sumitomo Mitsui Banking Corporation

August 29, 2014

600

600

0.945

August 31, 2021

MUFG Bank, Ltd.

August 29, 2014

600

600

0.945

August 31, 2021

Aozora Bank, Ltd.

August 29, 2014

500

500

0.945

August 31, 2021

Sumitomo Mitsui Banking Corporation

February 5, 2015

1,200

1,200

0.875

January 31, 2022

Sumitomo Mitsui Banking Corporation

January 29, 2021

800

800

0.431

January 31, 2022

Sumitomo Mitsui Banking Corporation (Note 5)

April 30, 2014

2,000

2,000

1.267

April 30, 2022

Aozora Bank, Ltd. (Note 5)

April 30, 2014

1,500

1,500

1.267

April 30, 2022

MUFG Bank, Ltd. (Note 5)

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Resona Bank, Ltd. (Note 5)

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Aozora Bank, Ltd. (Note 5)

April 30, 2015

2,000

2,000

0.875

April 30, 2022

1,100

1,100

1,100

1,100

1.115

July 29, 2022

1,000

1,000

August 7, 2014

Development Bank of Japan Inc.

(Note 3)

Shinsei Bank, Ltd. (Note 5)
Sumitomo Mitsui Banking Corporation (Note 5)
MUFG Bank, Ltd. (Note 5)

July 29, 2015

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4）
Unguaranteedmaturity
date

Repaymentof principal

Unsecured/in full on （Note 4）
Unguaranteedmaturitydate

44

Mizuho Bank, Ltd. (Note 5)
Sompo Japan Insurance Inc. (Note 5)

300

300

1,000

1,000

Sumitomo Mitsui Banking Corporation

February 26, 2021

-

1,000

0.432

February 28, 2022

Sumitomo Mitsui Banking Corporation

February 26, 2021

-

500

0.432

February 28, 2022

27,20021,950Subtotal

45

Classification

Averageinterest
rate

Balance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Sumitomo Mitsui Banking Corporation

400

400

MUFG Bank, Ltd.

400

400

Mizuho Bank, Ltd.

300

300

Resona Bank, Ltd.

200

200

Mizuho Trust & Banking Co., Ltd.

200

200

Aozora Bank, Ltd.

150

150

August 7, 2014

500

500

1.320

August 7, 2023

Mizuho Bank, Ltd.

November 14, 2014

950

950

1.083

November 30, 2022

MUFG Bank, Ltd.

February 5, 2015

1,200

1,200

1.105

January31, 2024

Resona Bank, Ltd.

April 30, 2015

1,500

1,500

0.987

April 30, 2023

MUFG Bank, Ltd.

April 30, 2015

2,000

2,000

1.100

April 30, 2024

Sumitomo Mitsui Banking Corporation

April 30, 2015

1,000

1,000

1.265

April 30, 2025

Resona Bank, Ltd.

August 31, 2015

1,100

1,100

0.923

August 31, 2022

Mizuho Trust & Banking Co., Ltd.

August 31, 2015

700

700

0.923

August 31, 2022

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2015

950

950

1.047

August 31, 2023

MUFG Bank, Ltd.

August 31, 2015

1,700

1,700

1.169

August 31, 2024

Mizuho Bank, Ltd.

August 31, 2015

950

950

1.169

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2015

2,000

2,000

1.345

August 31, 2025

Development Bank of Japan Inc. (Note 3)

August 31, 2015

1,000

1,000

1.193

August 31, 2024

MUFG Bank, Ltd.

October 27, 2015

1,000

1,000

1.156

April 27, 2025

MUFG Bank, Ltd.

April 28, 2016

1,000

1,000

0.819

April 28, 2025

Sumitomo Mitsui Banking Corporation

April 28, 2016

2,500

2,500

0.903

April 30, 2026

MUFG Bank, Ltd. (Note 3)

August 1, 2016

1,000

1,000

0.660

July 31, 2025

Mizuho Bank, Ltd. (Note 3)

August 30, 2016

1,500

1,500

0.816

August 31, 2026

Aozora Bank, Ltd.

August 31, 2016

1,000

1,000

0.713

August 31, 2024

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2016

1,000

1,000

0.797

August 31, 2025

Resona Bank, Ltd.

August 31, 2016

500

500

0.797

August 31, 2025

LenderDrawdown
Date

August 7, 2014

Development Bank of Japan Inc. (Note 3)(Note 1)

Payment
due date(Note 2)

1.254

Debt
Financing
MethodUse

Remarks

August 7, 2023

46

Classification

LenderDrawdown
Date

Balance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)Long-term borrowings

MUFG Bank, Ltd. (Note 3)

August 31, 2016

2,000

2,000

0.670

August 31, 2025

Mizuho Trust & Banking Co., Ltd. (Note 3)

August 31, 2016

500

500

0.751

August 31, 2025

Sumitomo Mitsui Banking Corporation

August 31, 2016

3,000

3,000

0.906

August 31, 2026

Development Bank of Japan Inc. (Note 3)

November 1, 2016

1,000

1,000

0.773

October 31, 2025

Resona Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Shinsei Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Mizuho Trust & Banking Co., Ltd. (Note 3)

August 22, 2017

1,200

1,200

0.928

August 22, 2027

Development Bank of Japan Inc. (Note 3)

August 22, 2017

1,000

1,000

0.928

August 22, 2027

Mizuho Bank, Ltd. (Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

THE BANK OF FUKUOKA, LTD. (Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.501

February 28,2023

MUFG Bank, Ltd.

August 31, 2017

1,500

1,500

0.501

February 28, 2023

Aozora Bank, Ltd.

August 31, 2017

1,500

1,500

0.582

February 29, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,000

1,000

0.582

February 29, 2024

MUFG Bank, Ltd.

August 31, 2017

1,000

1,000

0.582

February 29, 2024

Mizuho Bank, Ltd.

August 31, 2017

500

500

0.624

August 31, 2024

Mizuho Trust & Banking Co., Ltd. (Note 3)

August 31, 2017

500

500

0.661

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.665

February 28, 2025

Resona Bank, Ltd.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Nippon Life Insurance Company (Note 3)

July 30, 2018

500

500

0.900

January30, 2027

Sumitomo Mitsui Banking Corporation

1,500

1,500

MUFG Bank, Ltd.

1,400

1,400

Mizuho Bank, Ltd.

900

900

Development Bank of Japan Inc.

500

500

Nippon Life Insurance Company

500

500

400

400

0.799

February2, 2026

Shinsei Bank, Ltd.

400

400

Sumitomo Mitsui Trust Bank, Limited.

400

400

Mizuho Trust & Banking Co., Ltd.

400

400

Aozora Bank, Ltd.

300

300

THE BANK OF FUKUOKA, LTD.

300

300

Resona Bank, Ltd.

August 2, 2018

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,000

1,000

0.509

August 31, 2022

MUFG Bank, Ltd.

August 31, 2018

400

400

0.509

August 31, 2022

Development Bank of Japan Inc. (Note 3)

August 31, 2018

1,600

1,600

0.498

August 31, 2022

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,200

1,200

0.592

August 31, 2023

Aozora Bank, Ltd.

August 31, 2018

1,000

1,000

0.592

August 31, 2023

MUFG Bank, Ltd.

August 31, 2018

800

800

0.592

August 31, 2023

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,050

1,050

0.914

February 28,2027

Resona Bank, Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Bank, Ltd.

August 31, 2018

250

250

0.914

February 28, 2027

Development Bank of Japan Inc. (Note 3)

August 31, 2018

1,400

1,400

0.884

February 28, 2027

MUFG Bank, Ltd. (Note 3)

August 31, 2018

800

800

0.825

February 28, 2027

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4） Unguarantmaturity
eed
date

47

Classification

LenderDrawdown
Date

Balance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)Long-term borrowings

Nippon Life Insurance Company (Note 3)

September 28, 2018

700

700

0.920

September 30, 2026

Shinsei Bank, Ltd.

September 28, 2018

1,000

1,000

1.031

September 30, 2028

Sumitomo Mitsui Trust Bank, Limited.

September 28, 2018

800

800

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 28, 2018

500

500

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

June 3, 2019

400

400

0.363

November 30, 2024

Mizuho Bank, Ltd. (Note 3)

June 3, 2019

2,000

2,000

0.330

May 31, 2025

Shinsei Bank, Ltd.

June 3, 2019

500

500

0.484

November 30, 2025

Shinsei Bank, Ltd.

July 31, 2019

500

500

0.272

January 31, 2023

Mizuho Bank, Ltd.

July 31, 2019

800

800

0.299

July 31, 2023

Sumitomo Mitsui Banking Corporation

September 17, 2019

1,000

1,000

0.572

August 31, 2026

MUFG Bank, Ltd.

October 29, 2019

500

500

0.325

April 30, 2023

Resona Bank, Ltd.

October 29, 2019

450

450

0.336

April 30, 2024

MUFG Bank, Ltd.

November 29, 2019

1,500

1,500

0.600

November 30, 2026

Shinsei Bank, Ltd.

January31, 2020

500

500

0.329

July 31, 2023

Mizuho Trust & Banking Co., Ltd.

January31, 2020

300

300

0.329

July 31, 2023

Sumitomo Mitsui Trust Bank, Limited.

January31, 2020

300

300

0.329

July 31, 2023

THE BANK OF FUKUOKA, LTD.

January31, 2020

200

200

0.329

July 31, 2023

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Banking Corporation

March 2, 2020

500

500

0.464

February 28, 2027

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Resona Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

THE BANK OF FUKUOKA, LTD.

March 2, 2020

400

400

0.414

February 28, 2027

MUFG Bank, Ltd. (Note 3)

March 2, 2020

400

400

0.450

February 28, 2027

Aozora Bank, Ltd.

March 2, 2020

200

200

0.531

February 29, 2028

MUFG Bank, Ltd. (Note 3)

March 13, 2020

600

600

0.300

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

June 30, 2020

1,000

1,000

0.646

June 30, 2028

Shinsei Bank, Ltd.

June 30, 2020

800

800

0.646

June 30, 2028

Development Bank of Japan Inc. (Note 3)

June 30, 2020

500

500

0.616

June 30, 2028

Sumitomo Mitsui Banking Corporation

July 29, 2020

1,750

1,750

0.691

July 31, 2028

Shinsei Bank, Ltd.

July 29, 2020

1,750

1,750

0.641

July 31, 2028

MUFG Bank, Ltd.

July 29, 2020

1,000

1,000

0.641

July 31, 2028

Mizuho Bank, Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Resona Bank, Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Sumitomo Mitsui Banking Corporation

July 31, 2020

1,000

1,000

0.686

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

August 3, 2020

800

800

0.637

July 31, 2028

MUFG Bank, Ltd.

August 31, 2020

500

500

0.640

August 31, 2028

Aozora Bank, Ltd.

August 31, 2020

300

300

0.690

August 31, 2028

Sumitomo Mitsui Banking Corporation

September 24, 2020

840

840

0.648

September 30, 2028

Sumitomo Mitsui Banking Corporation

September 30, 2020

900

900

0.658

September 30, 2028

Mizuho Bank, Ltd.

September 30, 2020

800

800

0.658

September 30, 2028

Mizuho Bank, Ltd.

September 30, 2020

1,330

1,330

0.658

September 30, 2028

Resona Bank, Ltd.

September 30, 2020

500

500

0.558

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 30, 2020

400

400

0.608

September 30, 2028

MUFG Bank, Ltd. (Note 3)

September 30, 2020

800

800

0.550

September 30, 2028

MUFG Bank, Ltd.

October 27, 2020

300

300

0.637

October 31, 2027

Mizuho Bank, Ltd.

November 2, 2020

500

500

0.478

April 30, 2025

Mizuho Trust & Banking Co., Ltd.

November 2, 2020

1,000

1,000

0.585

October 31, 2027

Sumitomo Mitsui Banking Corporation

November 30, 2020

2,000

2,000

0.617

November 30, 2027

MUFG Bank, Ltd.

January 29, 2021

1,000

1,000

0.599

January 31, 2028

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4） Unguarantmaturity
eed
date

48

Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Mizuho Bank, Ltd.

January 29, 2021

1,200

1,200

0.409

January 31, 2025

Mizuho Trust & Banking Co., Ltd.

January 29, 2021

1,100

1,100

0.359

January 31, 2025

Aozora Bank, Ltd.

March 31, 2021

-

1,350

0.677

March 31, 2029

Shinsei Bank, Ltd.

July 30, 2021

-

1,000

0.252

July 31, 2024

Daishi Hokuetsu Bank, Ltd. (Note 3)

July 30, 2021

-

500

0.350

January 31, 2027

The Bank of Yokohama,Ltd.

July 30, 2021

-

1,000

0.467

July 31, 2029

Sumitomo Mitsui Banking Corporation

July 30, 2021

-

1,400

0.598

January 31, 2030

MUFG Bank, Ltd. (Note 3)

July 30, 2021

-

1,000

0.575

January 31, 2030

Nippon Life Insurance Company (Note 3)

July 30, 2021

-

1,000

0.700

January 31, 2030

Subtotal

109,020

116,270

Total

138,220

138,220

Debt
Financing
MethodUse

Remarks（Note 1）All debts except for the following Note 3 are borrowing at a floating rate.
（Note 2）Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal places. Also, with regard
to borrowings for which interest rate swap transactions and other derivative transactions were implemented in order to hedge the interest rate
volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and other derivatives areindicated.
（Note 3）Borrowings is applied at a fixed rate.
（Note 4）All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses are included)
and repayment of debts.
（Note 5）Debts included in the classification of current portion of long-term loans payable from the 19th fiscal period and in of long-term loans payablein the 18th fiscal period.

（3）Investment Corporation Bonds
Outstanding Investment corporation bonds as of July 31, 2021 are as follows.
SeriesFirst Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Third Series Unsecured
Investment Corporation
Bonds
Fourth Series Unsecured
Investment Corporation
Bonds
Fifth Series Unsecured
Investment Corporation
Bonds
Sixth Series Unsecured
Investment Corporation
Bonds（Social Bond）
Seventh Series Unsecured
Investment Corporation
Bonds（Social Bond）
Total

Date of issue

Balance atBalance at thethe beginning
Interest rate
end of periodof period（%）(mil. yen)(mil. Yen)

Repayment dateAugust 30, 2016

1,000

1,000

0.200

August 30, 2021

August 30, 2016

1,000

1,000

0.540

August 28, 2026

August 30, 2016

1,000

1,000

0.800

August 30, 2028

November 30,
2018

1,000

1,000

0.410

November 30,
2023

November 30,
2018

1,000

1,000

0.850

November 30,
2028

December 20,
2019

2,000

2,000

0.750

December 20,
2029

0.720

May 30,2031

Repayment
methodUse

Remarks（Note 1）

Repaymentof principal
in full on
maturity
date（Note 3）（Note 2）

May 31,
2021

-

1,700

7,000

8,700

（Note 1）Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate and repayment of debts.
（Note 2）Funds for acquisition of assets eligible for social finance or funds for repayment of borrowings procured with the aim of allocation to funds for acquisitionof assets eligible for social finance.
（Note 3）Ranking pari passu among the specified investment corporation bonds.

（4）Status of Short-Term Investment Corporation Bonds
Not applicable（5）Investment Unit Warrants
Not applicable49

6．Acquisitions and Sales during the 19th Fiscal Period(1) Acquisitions and Sales of Real Estate Properties and Asset-backed Securities, etc., Infrastructure Assets
and Infrastructure-related Assets
Acquisition
Type

No.

Sale

Acquisition
price
Acquisition(million yen)
date

Name

Sales date

（Note 2）

(Note 1)

Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest－

Sale price Book value Gain and loss
(in millions)(million yen)
yen)(million yen) (million（Note 1）
（Note 2）

5,
－ February
2021

T-23

KDX Residence Sendagaya

1,110

631

437

T-97

KDX Residence Tennocho

March 1,
2021

843

－

－

－

－

H-25

Medical-home Granda Kurakuen

March 1,
2021

2,709

－

－

－

－

T-98

KDX Residence Kawasaki

April 1,
2021

910

－

－

－

－

T-99

KDX Residence Kamata-minami
II

May 6,
2021

780

－

－

－

－

H-26

Rihabili-home Granda Kobe
KitanoJune 1,
2021

1,720

－

－

－

－

（Note 1）“Acquisition price” and “Sale price” are the amount identified in the purchase or sale agreement of each trust beneficiary interest(excluding expenses required for the acquisition or sale, property tax, city planning tax or consumption tax, etc.), rounded down to
the nearest whole million yen.
（Note 2）“Book value” and “Gain and loss” are rounded down to the nearest whole million yen.

(2) Acquisitions and Sales of Other Assets
Other than the foregoing real estate properties, asset-backed securities, infrastructure assets and other infrastructurerelated assets, major assets in general are bank deposits or bank deposits within trust assets.

(3) Appraisals of Specified Assets(ⅰ) Real Estate, etc.
Date ofacquisitionor saleAcquisition
Appraisal
price or Sale
value
price
(million yen)(million yen)
(Note 2)

Transa
ction

Type

Sale

Trust
BeneficiaryInterest

T-23

KDX Residence Sendagaya

February 5,
2021

1,110

870

Trust
Acquisition BeneficiaryInterest

T-97

KDX Residence Tennocho

March 1,
2021

843

907

Trust
Acquis Beneficiary
itionInterest

H-25 Medical-home Granda Kurakuen

March 1,
2021

2,709

2,780

Trust
Acquis Beneficiary
itionInterest

T-98 KDX Residence Kawasaki

April 1,
2021

910

982

No.

Property nameAppraiser

As of Appraisal
date(Note 1)

Trust
AcquisBeneficiary
itionInterest
Trust
Acquis Beneficiary
itionInterest

T-99

KDX Residence Kamata-minami
II

May 6,
2021

780

854

Japan Real Estate
Institute
DAIWA REALESTATEAPPRAISAL
CO., LTD.
The Tanizawa
Sōgō Appraisal
Co., Ltd.
DAIWA REALESTATEAPPRAISAL
CO., LTD.
Japan Real Estate
Institute

H-26

Rihabili-home
KitanoJune 1,
2021

1,720

1,800

Japan Real
Estate Institute

GrandaKobe

January 31,
2021
December 1,
2020
November 30,
2020

December 1,
2020

January 1,
2021
April 15,2021

（Note 1）“Transaction” are the amount identified in the purchase or sale agreement of each trust beneficiary interest (excluding expenses
required for the acquisition or sale, property tax, city planning tax or consumption tax, etc.), rounded down to the nearest whole
million yen.
（Note 2）“Appraisal value” of specific assets above was calculated in accordance with the guideline of “Real Estate Appraisal Standards,
Chapter 3, Appraisal of Securitized Real Estate.”(ⅱ) Others
With regard to transactions and contracts entered by the Investment Corporation whose values shall be
investigated based on the Act on Investment Trusts and Investment Corporations, FRIQ Audit Corporation
performs an investigation of transactions. For the fiscal period from February 1, 2021 to July 31, 2021, thetransactions subject to such investigation were seven interest rate swap transactions, for which the Investment

50

Corporation received reports from FRIQ Audit Corporation. For this purpose, investigation was performed withrespect to details of the interest swap contracts, such as the name of counter parties, contract amounts, the periodof transactions or other matters related to the details of the relevant OTC derivative transactions.
This survey is not a part of the audit for financial statements, and there is no guarantee of fairness of the priceand internal management system.

（4）Transactions with Related-Party(i) Transactions
Category
Total amountTransaction with related party
GK KRF96
SMFL MIRAI Partners Company, Limited
Total

Transaction price (million yen)
Acquisition price（Note 2）
6,963 million yen
2,709 million yen
1,720 million yen
4,429 million yen（38.9％）（24.7％）（63.6％）

Sale price（Note 2）
1,110 million yen
－
－
－

（－％）
（－％）
（－％）

(ⅱ) Amounts of Fees Paid
Not applicable(Note 1) A related-party, etc. is a defined as a related-party, etc. of the asset management company having executed an asset management
entrustment agreement with the Investment Corporation provided in Article 123 of the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations and Article 26, Item 27 of Rules on asset management reports, pertaining toinvestment trusts and investment corporations of the Investment Trusts Association, Japan.
(Note 2) The “Acquisition price” and the “Sale price” don’t include the related cost to the transaction, tax and dues reimbursement, consumption
tax, etc.
(Note 3) The amount of payments including expenses for repair work of which orders were placed to related-party, etc. during the 19th fiscal
period other than the above paid fees is as follows.
Kenedix Engineering, Inc.
Construction costs recorded as capital expenditure: 30 million yen

Repair costs: 3 million yen（5）Transactions with Asset Management Company Related to Concurrent Operations Carried Out by the
Asset Management Company
There is no transaction with the Asset Management Company, KFM, regarding to the Type II Financial Instruments
Business, and Building Lots and Buildings Transaction Business. Furthermore, KFM does not concurrently engage
in any of Type I Financial Instruments Business, Real Estate Specified Joint Business.

51

7．Accounting(1)

Assets, Liabilities, Principal and Profit/Loss

Please see the Balance Sheet, the Statement of Income and Retained Earnings, the Statement of Unitholders’ Equity,
Notes and the Calculation pertaining to Distributions below.

(2)

Change to Calculation of Depreciation AmountNot applicable(3)

Change to Real Estate and Other Infrastructure Assets Appraisal Method
Not applicable(4)Disclosure Pertaining to Investment Trust Beneficial Right Securities, etc.

The status of investment units held by the Asset management Company of the Investment Corporation (Kenedix
Real Estate Fund Management, Inc) is as follows.

(ⅰ) Acquisitions
Date of acquisition

Number of units

Number of disposal
units

Number of units held

March 1, 2018 (Note)

1

-

1

Accumulated total

1

-

1

(Note) The Asset Management Company acquired one investment unit of Japan Senior Living Investment Corporation on July 21, 2015.
Following the merger with the Investment Corporation, the Asset Management Company acquired its investment units on March 1,
2018, which is the effective date of the merger.

(ⅱ) Ownership

13th Fiscal Period
From February 1, 2018 to July 31, 2018
14th Fiscal Period
From August 1, 2018 to January 31, 201915th Fiscal Period
From February 1, 2019 to July 31, 2019
16th Fiscal Period
From August 1, 2019 to January 31, 2020
17th Fiscal Period
From February 1, 2020 to July 31, 2020
18th Fiscal Period
From August 1, 2020 to January 31, 2021
19th Fiscal Period
From February 1, 2021 to July 31, 2021

(5)

Number of units
held at end of fiscal
period（Unit）

Asset held at the endof fiscal period（million yen）

Ratio to total number ofunits issued (%)

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

Disclosure Pertaining to Overseas Real Estate Holding Corporations
Not applicable(6)

Disclosure Pertaining to Real Estate Held by Overseas Real Estate Holding Corporations
Not applicable52

8. Other（1） General Information(i) Unitholders’ General Meeting
Not applicable(ii) Board of directors’ Meeting
Date of approval

Items

February 18, 2021

Conclusion of new investment
unit underwriting agreement

June 22, 2021

Entrustment of generaladministrative work for theissuance of investment
corporation bonds

Overview
Entrusted administrative work related to solicitation of investment units to beissued to underwriters (SMBC Nikko Securities Co., Ltd., Mizuho Securities
Co., Ltd., Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd., Daiwa Securities Co. Ltd, Tokai Tokyo Securities Co.,
Ltd.).
With respect to the comprehensive resolution on the issuance of investment
corporation bonds approved on the same day, the candidate company wasapproved for the entrustment of general administrative work for the investment
corporation bonds, and the decision on other necessary matters was left to the
executive directors.

（2）OtherUnless otherwise specified, amounts are rounded down, and ratios are rounded off.

[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shallprevail.

53

Financial Statements(19th Fiscal Period: From February 1, 2021 to July 31, 2021)

Independent Auditor’s Report
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements

54

55

56

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of July 31, 2021
19th Fiscal Period
as of July 31, 2021

18th Fiscal Period
as of January 31, 2021

(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 15 and 20)
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment, net
Intangible assets
Leasehold right in trust (Notes 15 and 20)
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets¥16,724,647
10,811,226
168,096
15,82325,296
27,745,090¥12,947,764
10,469,429
90,961

172,666
111,119,141(15,847,746)
95,271,394
1,249,509(319,090)
930,419
1,501,150(452,582)
1,048,567
941,780(147,578)
794,202
164,872,506
263,089,757

172,666
108,177,749(14,437,598)
93,740,151
1,175,676(285,575)
890,101
1,493,742(420,189)
1,073,553
798,111(121,898)
676,213160,714,888
257,267,575

1,115,030
2,458
1,117,488

1,116,755
3,234
1,119,989

89,381
998,658
12,7581,100,798
265,308,044

89,381
1,056,412
14,4781,160,272
259,547,837

52,037
71,778123,816¥293,176,951

41,06658,54999,616¥283,172,411

9,576
7,224
23,524,958

57

19th Fiscal Period
as of July 31, 2021

18th Fiscal Period
as of January 31, 2021

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable
Short-term loans payable (Notes 10 and 22)
Current portion of investment corporation bonds (Notes 10 and 21)
Current portion of long-term loans payable (Notes 10, 11 and 22)
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Noncurrent liabilities¥671,687¥603,335

1,000,000
21,950,000
424,095
49,510605
66,0202,000,000
1,000,000
15,200,000
364,045
49,658605
35,9291,203,553
76,116
12,261

1,147,437
90,58825,453,849

20,603,002

111,402

Investment corporation bonds (Notes 10 and 21)

7,700,000

6,000,000

Long-term loans payable (Notes 10, 11 and 22)
Tenant leasehold and security deposits in trust

116,270,000
3,396,104
4,570,534

121,020,000
3,176,031

Asset retirement obligations (Note 14)

68,07867,892Other499,957

554,484

132,504,674
157,958,524

135,437,338

116,322,630

108,550,294

13,187,100

13,187,100

1,900,000
1,900,000

1,920,000

4,296,284

3,997,276

19,383,384
135,706,015

19,104,376
127,654,670(487,588)(522,600)

Tenant lump sum deposits in trust

Total noncurrent liabilities
Total liabilities

4,618,929

156,040,341

NET ASSETS
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Voluntary retained earnings
Reserve for temporary difference adjustments (Note 4)
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders' equity

1,920,000

Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 10 and 11)(487,588)(522,600)

Total net assets (Note 3)

Total valuation and translation adjustments

135,218,427

127,132,070

Total liabilities and net assets¥293,176,951¥283,172,411

See accompanying notes to the financial statements.

58

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from February 1, 2021 to July 31, 2021
19th Fiscal Period
from February 1, 2021
to July 31, 2021

18th Fiscal Period
from August 1, 2020
to January 31, 2021

(in thousands of yen)
Operating revenues
Rent revenue-real estate (Note 6)
Other lease business revenue (Note 6)
Gain on sales of real estate property (Note 6)
Total operating revenues
Operating expenses
Expenses related to rent business (Note 6)
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Consumption taxes refund
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 13)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥8,145,546
612,776
437,537
9,195,861¥7,834,662
548,0028,382,664

3,333,440
668,991
15,03450,3688,100
297,440
4,373,375
4,822,485

3,060,925
645,144
14,60048,792
8,100
260,792
4,038,356
4,344,308

43
397
43,28776
43,805

41
323
114
479

529,613
23,359130,855
4,505
30,528718,862
4,147,428
4,147,428

531,956
21,702
129,966
4,118
24,697712,440
3,632,346
3,632,346

605
605
4,146,823
149,461605
605
3,631,741
365,534¥3,997,276¥4,296,284

See accompanying notes to the financial statements.

59

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from February 1, 2021 to July 31, 2021

Unitholders'
capitalBalance as of July 31, 2020
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2021 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2021 (Note 7)¥108,550,294

Capitalsurplus¥13,187,100

Unitholders' equity
Surplus
Voluntary retained earnings
UnappropriatedReserve for
Total
retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)
¥1,940,000¥1,940,000¥4,212,398(20,000)¥108,550,294¥13,187,100(20,000)

Total
unitholders'equityTotal
surplus¥19,339,498¥127,889,792

20,000--(3,866,863)
3,631,741(3,866,863)
3,631,741(3,866,863)
3,631,741(235,121)¥127,654,670(20,000)¥1,920,000(20,000)¥1,920,000(215,121)¥3,997,276(235,121)¥19,104,376(20,000)(20,000)

20,000--(3,867,815)
4,146,823(3,867,815)
4,146,823(3,867,815)
4,146,823

299,008¥4,296,284

279,008¥19,383,384

8,051,344¥135,706,015

7,772,336

7,772,336¥116,322,630

7,772,336¥13,187,100(20,000)¥1,900,000(20,000)¥1,900,000

Valuation and translation adjustments
Deferred gains orlosses on hedges

Balance as of July 31, 2020
Changes of items during the period
Reversal of reserve for temporary
difference adjustment
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2021 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2021 (Note 7)

Total valuationand translation
adjustments(in thousands of yen)¥(432,188)¥(432,188)

Total net assets¥127,457,603(3,866,863)
3,631,741(90,411)(90,411)(90,411)(90,411)¥(522,600)(90,411)¥(522,600)(325,533)¥127,132,070
7,772,336(3,867,815)
4,146,823

35,01235,01235,01235,012¥(487,588)

35,012¥(487,588)

8,086,357¥135,218,427

See accompanying notes to the financial statements.

60

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from February 1, 2021 to July 31, 2021
19th Fiscal Period
from February 1, 2021
to July 31, 2021

18th Fiscal Period
from August 1, 2020
to January 31, 2021

(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
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 advances received
Decrease (increase) in long-term prepaid expenses
Decrease in net property, plant and equipment held in trust due to sale
Other, net¥4,147,428
1,547,032
4,505
30,528(43)552,973(77,134)(6,246)(60,583)
85,95630,091
56,11657,754
631,984(145,674)¥3,632,346
1,504,959
4,118
24,697(41)553,658(59,168)
35,3395,095
127,276(14,235)
25,117(32,451)(42,030)
120,676

Subtotal

6,854,688

5,885,358

Interest income received
Interest expenses paid
Income taxes (paid) refund

43(559,047)(605)

41(548,623)(605)

Net cash provided by (used in) operating activities

6,295,079

5,336,171(7,895,245)(179,176)
400,972(190,257)
141,861(65,684)(11,717,031)(171)(130,915)
174,807(235,705)
368,895

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Payments for lease and guarantee deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant lump sum deposits in trust
Proceeds from tenant lump sum deposits in trust
Net cash provided by (used in) investing activities(7,721,844)(11,605,805)

Net cash provided by (used in) financing activities
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid

(2,000,000)
8,750,000(6,750,000)
1,684,522
7,728,578(3,867,656)(800,000)
15,070,000(4,100,000)(3,867,238)

Net cash provided by (used in) financing activities

5,545,445

6,302,761

Net increase (decrease) in cash and cash equivalents

4,118,679

33,127

Cash and cash equivalents at the beginning of period

23,417,194

23,384,067

Cash and cash equivalents at the end of period (Note 8)¥27,535,874¥23,417,194

See accompanying notes to the financial statements.

61

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from February 1, 2021 to July 31, 2021

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Residential Next Investment Corporation (“the Investment Corporation”) was established on November 15, 2011 under the Act on
Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On April 26, 2012, the Investment Corporation was listed on
the Real Estate Investment Trust Market of the Tokyo Stock Exchange (Securities Code: 3278). The Investment Corporation implemented a 2-for-1
split of its investment units held by unitholders set forth or recorded in the final unitholder registry on February 28, 2018 with March 1, 2018 as theeffective date. And also on March 1, 2018, the Investment Corporation conducted an absorption-type merger (“the Merger”) whereby the Investment
Corporation was the surviving corporation and Japan Senior Living Investment Corporation (“JSL”) was the dissolving corporation.
After "the Merger", the Investment Corporation raised funds through four public offerings and three third-party allotment. As of July 31, 2021, theend of the 19th fiscal period, the number of investment units issued and outstanding totaled 995,883 units.
The Investment Corporation is externally managed by Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”), a
company that was formed with personnel from Kenedix, Inc. and adheres to the core philosophies of Kenedix, Inc., that is, to provide management
services from the perspective of real estate investors a real estate management company. As the asset manager, the Asset Management Company
shall provide flexible and speedy real estate investment and management services based on the strategies of the Investment Corporation: “Flexible
pursuit for appropriate investment and profit opportunities with comprehension of the real estate market trends” and “Speedy execution based on
expeditious information collection and judgement.”
During the 19th fiscal period, the Investment Corporation acquired 3 residential properties (total acquisition price of ¥2,533 million) and 2
healthcare properties (total acquisition price of ¥4,429 million) and sold 1 residential property (acquisition price of ¥650 million, disposition price of¥1,110 million). As a result, the Investment Corporation has a portfolio comprised of 161 properties (total acquisition price of ¥265,762 million) as ofJuly 31, 2021, the end of the 19th fiscal period. The portfolio consists of 133 residential properties (total acquisition price of ¥202,182 million), 26
healthcare properties (total acquisition price of ¥58,620 million) and 2 accommodation properties (total acquisition price of ¥4,960 million).
The occupancy rates of the overall portfolio were 96.2% and 97.4% as of the end of the 18th and 19th fiscal period, respectively. Furthermore,
the average occupancy rates of the properties for residential and healthcare were 95.9% and 100.0% as of the end of the 19th fiscal period.
During the 18th and 19th fiscal period, the Investment Corporation made borrowings of ¥4,900 million and ¥8,750 million for the repayment ofdebt matured. During the 18th fiscal period, the Investment Corporation made new borrowings of ¥10,170 million upon acquiring properties. As aresult, the balance of borrowings as of the end of the 18th and 19th fiscal period stood at ¥138,220 million and ¥138,220 million, respectively. Thebalance of interest-bearing debt including investment corporation bonds as of the end of the 18th and 19th periods, was ¥145,220 million and¥146,920 million, respectively.
Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan (Japanese GAAP), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, the Financial
Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which were preparedin accordance with Japanese GAAP and were presented in the Securities Report of the Investment Corporation filed with the Kanto Local Finance
Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements
issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial statements
include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
The Investment Corporation fiscal period is a six-month period which ends at the end of January or July. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

62

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Property and Equipment (including trust assets)
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimateduseful lives of the assets ranging as stated below:

Buildings

From February 1, 2021
to July 31, 2021
2-69 years

From August 1, 2020
to January 31, 2021
2-69 years

Structures

3-65 years

3-65 years

Machinery and equipment

3-40 years

3-40 years

Tools, furniture and fixtures

2-30 years

2-30 years(B) Intangible Assets (including trust assets)
Intangible assets are amortized by the straight-line method. Fixed-term leaseholds are amortized by the straight-line method based on thecontract period.
(C) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized by the straight-line method.
(D) Unit Issuance Costs
Unit issuance costs are amortized over a period of 3 years under the straight-line method.
(E) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.
(F) Accounting Treatment of Trust Beneficiary Interests in Real Estate
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, all relevant assets
and liabilities in trust are recorded on the balance sheet and the statement of income and retained earnings.
(G) Revenue Recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including parking
space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrual basis over the life of eachlease.
(H) Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar
year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period.
Under Japanese tax regulations, the seller of the property is liable for these taxes on the property from the date of disposal to the end of thecalendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period
following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the propertyrelated taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥4,538
thousand and ¥31,508 thousand as of January 31, 2021 and July 31, 2021, respectively.
(I)

Income Taxes

63

Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets andliabilities using the statutory tax rates.
(J) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes
applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(K) Derivative Financial Instruments
The Investment Corporation enters into derivative transactions to hedge risks prescribed in its Articles of Incorporation based on its risk
management policies. The Investment Corporation hedges interest rate volatility risk of its interest payments on its borrowings by utilizing
interest rate swap as hedging instruments.
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the time of judgment of its
effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments are compared and a judgment is made basedon changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate swaps andother derivatives that meet the requirements for special treatment.
(L) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily
convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.
(M) Presentation of Amounts
Amounts of less than one thousand yen are truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and
filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios are rounded off in the accompanying
financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.
(Accounting standards issued but not yet effective)・ “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued on March 31, 2020)
・ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on March 26, 2021)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States have jointly
developed comprehensive accounting standards for revenue recognition and issued “Revenue from Contracts with Customers” (IFRS 15 (IASB) and
Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 is applied from fiscal years beginning on or after January 1, 2018 and that Topic
606 will be applied from fiscal years beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards for revenue
recognition and issued them together with the implementation guidance.
The basic policy of the ASBJ when it developed the accounting standards for revenue recognition was to specify the accounting standards,
incorporating the basic principles of IFRS 15 as a starting point, from the perspective of comparability between financial statements, which is one of
the benefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which consideration should be given,such as practices that have been conducted thus far in Japan, alternative treatments will be added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending January 31, 2022.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on the financial statements is currently under evaluation.
・ “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)
・ “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on July 4, 2019)
・ “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on March 31, 2020)64

(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 “Fair Value Measurement” (IASB) and Topic
820 “Fair Value Measurement” (FASB)). The ASBJ repeatedly considered the guidance regarding fair value of financial instruments and disclosurein order to improve the comparability with such international accounting standards, and issued “Accounting Standard for Fair Value Measurement”
and “Implementation Guidance on Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending January 31, 2022.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on the financial statements is currently underevaluation.

65

3. NET ASSETSThe Investment Corporation issues only non-par value units in accordance with the Investment Trust Act. The entire amount of the issue price of
new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least ¥50,000 thousand as required by
the Investment Trust Act.

4. RESERVE FOR TEMPORARY DIFFERENCE ADJUSTMENTS
As of July 31, 2021
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
period(in thousands of yen)

Reversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversalAppropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥1,920,000¥ -¥20,000¥1,900,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.
As of January 31, 2021
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
period(in thousands of yen)

Reversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversalAppropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥1,940,000¥ -¥20,000¥1,920,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period startingfrom the next fiscal period after the fiscal period, in which the initial amount was reserved.

5. COMMITMENT LINE CONTRACTS
KDR has commitment line contracts with the following financial institutions
As of July 31, 2021

As of January 31, 2021
(in thousands of yen)

Total amount of commitment line contracts
Balance of loans payable outstanding
Remaining amount¥4,500,000¥4,500,000--¥4,500,000¥4,500,000

66

6. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY
Rental and other operating revenues and property-related expenses for the periods from February 1, 2021 to July 31, 2021 and from August 1, 2020
to January 31, 2021 consist of the following:
From February 1, 2021
From August 1, 2020
to July 31, 2021
to January 31, 2021
(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥7,783,762

Rental revenues from limited proprietary rights of land

¥7,464,641-

22,118361,784

347,9028,145,546

7,834,662

Parking space rental revenues

209,493

206,193

Miscellaneous

403,283

341,808

Common area charges
Subtotal
Others:612,776

548,002¥8,758,323¥8,382,664¥482,452¥436,795

Subtotal
Total rental and other operating revenues
B. Property-related expenses:
Property management fees and facility management fees
Utilities

93,51992,202

Taxes

533,686

497,116

Repairs and maintenance

365,133

275,759

Insurance

13,681

15,119Trust fees

58,58057,030Depreciation

1,546,256

1,504,182

Others240,128

182,718¥3,333,440¥3,060,925¥5,424,883¥5,321,738

Total property-related expenses
C. Net operating income from real estate rental business (A-B)
Gain on sales of real estate property:
From February 1, 2021 to July 31, 2021

(in thousands of yen)
KDX Residence Sendagaya
Revenue from sale of real estate property¥1,110,000

Cost of real estate property

631,984

Other sales expenses

40,478Gain on sales of real estate property¥437,537

From August 1, 2020 to January 31, 2021 : Not applicable

7. UNITHOLDERS’ EQUITY
Total number of authorized investment units and total number of investment units issued and outstanding are as follows:

Total number of authorized investment units
Total number of investment units issued and outstanding

From February 1, 2021
to July 31, 2021
10,000,000 units

From August 1, 2020
to January 31, 2021
10,000,000 units

995,883 units

951,258 units678. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of July 31, 2021 and January 31, 2021:
As of July 31, 2021

As of January 31, 2021

(in thousands of yen)
Cash and deposits¥16,724,647¥12,947,764

Cash and deposits in trust

10,811,226

10,469,429

Cash and cash equivalents¥27,535,874¥23,417,194

9. LEASES
The Investment Corporation, as lessee, has entered into Fixed-term lease contract whereby fixed monthly rents are due in advance. The future
minimum rental expenses under existing non-cancelable operating leases as of July 31, 2021 and January 31, 2021 are as follows:
As of July 31, 2021

As of January 31, 2021

(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

527,000

533,000

Total¥539,000¥545,000

The Investment Corporation, as lessor, has entered into leases whereby fixed monthly rents are due in advance with a lease term of generally
two years for residential properties. The future minimum rental revenues under existing non-cancelable operating leases as of July 31, 2021 andJanuary 31, 2021 are as follows:
As of July 31, 2021

As of January 31, 2021

(in thousands of yen)Due in 1 year

¥6,078,634¥3,475,193

Due after 1 year

13,592,410

15,461,675

Total¥19,671,045¥18,936,868

10. FINANCIAL INSTRUMENTS(A). Overview(1) Policy for financial instruments
The Investment Corporation procures funds for asset acquisitions, repairs, payment of distributions, repayment of loans, etc. through loans fromfinancial institutions, issuance of investment corporation bonds, issuance of investment units and other means. With regard to the procurement ofinterest-bearing debts, the Investment Corporation ensures that it can effectively combine stable long-term funds with flexible short-term funds.
Management of surplus funds is undertaken through various bank deposits focusing on safety, liquidity and effectiveness. The Investment
Corporation uses derivatives for the purpose of hedging its exposure to changes in interest rates and other risks and does not enter into derivativetransactions for speculative or trading purposes.
(2) Types of financial instruments and related risk
Bank deposits are for managing the Investment Corporation’s surplus funds and are exposed to credit risk such as the bankruptcy of financial
institutions at which funds are deposited.
Borrowings and investment corporation bonds are made primarily for the purpose of procuring funds for the acquisition of real estate and trust
beneficiary interests in real estate and have a repayment date of a maximum of 8 years and 6 months for borrowings and also have a redemption
date of a maximum of 9 years and 10 months for investment corporation bonds as of July 31, 2021, the end of the 19th fiscal period, are exposed
to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are exposed tointerest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of the borrowings.
(3) Risk management for financial instruments
a. Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored
by deposits in non-interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. In utilizing

68derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable ratings.
b.

Market risk

While borrowings with floating rates are exposed to interest rate volatility risk, such risk is monitored by adjusting the rate of the balance ofborrowings with floating rates against the total borrowings according to the financial environment, interest rate forecasts by continuous monitoring,etc. and by using derivatives, etc. A risk management policy is established with regard to the execution and management of derivatives, and suchtransactions are entered into based on this policy.
c.

Liquidity risk

Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by
diversifying financial institutions. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value
is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could
result in a different fair value.
(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table.
As of July 31, 2021
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Cash and deposits¥16,724,647¥16,724,647(2) Cash and deposits in trust

10,811,226

10,811,226-

27,535,874

27,535,874

-

-

-

-

(2) Current portion of investment corporation bonds

1,000,000

999,800(200)(3) Current portion of long-term loans payable

21,950,000

21,965,460

15,460Subtotal(1) Short-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Subtotal¥-

7,700,000

7,691,110(8,890)116,270,000

116,667,820

397,820

146,920,000

147,324,190

404,190

Derivative transactions*¥(487,588)¥(487,588)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of January 31, 2021
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Cash and deposits¥12,947,764¥12,947,764(2) Cash and deposits in trust

10,469,429

10,469,429-

Subtotal¥-

23,417,194

23,417,194-(1) Short-term loans payable

2,000,000

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

1,000,000

998,900(1,100)(3) Current portion of long-term loans payable

15,200,000

15,215,486

15,486(4) Investment corporation bonds(5) Long-term loans payable
Subtotal

6,000,000

5,958,400(41,600)

121,020,000

121,463,368

443,368

145,220,000

145,636,154

416,154

Derivative transactions*¥(522,600)¥(522,600)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions.

69

Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying amount approximates fair value.
Liabilities(1) Short-term loans payable
Since these items are settled in a short period of time with floating interest rates, their carrying amount approximates fair value.
(2) Current portion of investment corporation bonds and (4) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates arereflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment Corporation has
not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interestrate swaps is based on the present value of the total of principal and interest, accounted for together with the applicable interest-rate swaps,
discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type.)
Derivative transactions
Please refer to Note 11 “DERIVATIVE TRANSACTIONS”.
Note 2: Redemption schedule for financial assets with maturities
As of July 31, 2021
Due in 1 year or
less
Cash and
Deposits
Cash anddeposits in trust
Total

Due after 1 year
through 2 years¥16,724,647
10,811,226¥27,535,874

As of January 31, 2021
Due in 1 year or
less
Cash and
Deposits
Cash anddeposits in trust
Total

¥

Due after 2 years
Due after 3 years
through 3 years
through 4 years(in thousands of yen)-¥-

Due after 1 year
through 2 years¥12,947,764¥

10,469,429¥23,417,194

¥

¥

¥

-

-

-

¥

-

-

¥

¥

¥

-

Due after 5 years

¥

¥

-

Due after 2 years
Due after 3 years
through 3 years
through 4 years(in thousands of yen)¥-

Due after 4 years
through 5 years

-

¥

-

-

-

¥

-

Due after 4 years
through 5 years

Due after 5 years

¥

¥

¥

-

-

¥

-

-

¥

-

Note 3: Redemption schedule for loans payable and investment corporation bonds
As of July 31, 2021
Due in 1 year or
lessShort-term loans
payableInvestment
corporation bonds
Long-term loans
payable
Total

¥

-

Due after 1 year
through 2 years¥

Due after 2 years
Due after 3 years
through 3 years
through 4 years(in thousands of yen)-¥-

Due after 4 years
through 5 years

Due after 5 years

¥

-

¥

-

¥

-

1,000,000-

1,000,000--

6,700,000

21,950,000

13,350,000

15,850,000

16,350,000

19,000,000

51,720,000¥22,950,000¥13,350,000¥16,850,000¥16,350,000¥19,000,000¥58,420,00070As of January 31, 2021
Due in 1 year or
lessShort-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal

Due after 1 year
through 2 years¥2,000,000¥

Due after 2 years
Due after 3 years
through 3 years
through 4 years(in thousands of yen)-¥

Due after 4 years
through 5 years

Due after 5 years

¥

-

¥

-

¥

-

-

1,000,000-

1,000,000--

5,000,000

15,200,000

18,250,000

14,400,000

15,900,000

15,500,000

56,970,000¥18,200,000¥18,250,000¥15,400,000¥15,900,000¥15,500,000¥61,970,000

11. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of July 31, 2021 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodAccounting
method, inprinciple
Specialtreatment forinterest-rate
swaps

Type of derivativetransactions
Interest rate
swap transaction:
Receive/floating
and pay/fixedInterest rate
swap transaction:
Receive/floating
and pay/fixed
Total

Hedged items

Contract amount(in thousands of yen)
Maturing
Total
after 1 year

Fair value(in thousands of yen)Calculation method for
applicable fair value
Based on the amountprovided by counterparty
financial institutions

Long-termloans payable¥82,870,000¥78,370,000¥(487,588)

Long-termloans payable

30,850,000

16,700,000*-¥113,720,00¥95,070,000¥(487,588)0*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value
is included in the fair value of the hedged long-term loans payable.
The contract amount and the fair value of interest-rate swap transactions as of January 31, 2021 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodAccounting
method, inprinciple
Specialtreatment forinterest-rate
swaps

Type of derivativetransactions
Interest rate
swap transaction:
Receive/floating
and pay/fixedInterest rate
swap transaction:
Receive/floating
and pay/fixed
Total

Hedged items

Contract amount(in thousands of yen)
Maturing afterTotal
1 yearFair value(in thousands of yen)Calculation method for
applicable fair value
Based on the amountprovided by counterparty
financial institutions

Long-termloans payable¥79,320,000¥76,320,000¥(522,600)

Long-termloans payable

33,200,000

24,200,000*-¥112,520,00¥100,520,000¥(522,600)0*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value
is included in the fair value of the hedged long-term loans payable.

7112. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other19th Fiscal Period (February 1, 2021 to July 31, 2021) and 18th Fiscal Period (August 1, 2020 to January 31, 2021): Not applicable
2．Affiliated companies and other19th Fiscal Period (February 1, 2021 to July 31, 2021) and 18th Fiscal Period (August 1, 2020 to January 31, 2021): Not applicable
3．Fellow subsidiary companies and other19th Fiscal Period (February 1, 2021 to July 31, 2021) and 18th Fiscal Period (August 1, 2020 to January 31, 2021): Not applicable
4．Directors, major individual unitholders and other19th Fiscal Period (February 1, 2021 to July 31, 2021) and 18th Fiscal Period (August 1, 2020 to January 31, 2021): Not applicable

13. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements under the Special Taxation
Measures Law of Japan are met, including a requirement that it currently distributes in excess of 90% of its net income for the fiscal period in order
to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of theInvestment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excess of 90% of its
distributable income in the form of cash distributions totaling ¥4,100 million and ¥3,867 million for the periods ended July 31, 2021 and January 31,
2021, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.01% and 0.02% for the periods ended July 31, 2021 and January 31, 2021, respectively. The following
table summarizes the significant differences between the statutory tax rate and the effective tax rate.
From February 1, 2021
to July 31, 2021
31.46%

From August 1, 2020
to January 31, 2021
31.46%

Deductible cash distributions(31.09)(31.04)

Others(0.36)(0.40)

Effective tax rate

0.01%

0.02%

Statutory tax rate

The significant components of deferred tax assets and liabilities as of July 31, 2021 and January 31, 2021 are as follows:
As of July 31, 2021

As of January 31, 2021

(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥644,993¥661,652

Deferred gains or losses on hedges

157,409

168,964

Asset retirement obligations

21,417

21,359Amortization of leasehold right in trust

2,351

1,808

Other
Subtotal deferred tax assets

20

20

826,192

853,806

Valuation allowance(826,192)(853,806)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

72

14. ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations reported on balance sheets
1. Summary of the asset retirement obligations
The Investment corporation has recognized the original state restoration obligations assumed under the general fixed-term land leasehold agreement
as the asset retirement obligations in connection with Arute Ishiyagawa acquired on June 3, 2019.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 0.54711% and the useful life has been estimated to be 47 years and one
month based on the time period from the date of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following
From February 1, 2021
to July 31, 2021

From August 1, 2020
to January 31, 2021

(in thousands of yen)
Balance at the beginning of period¥67,892

Accretion adjustment
Balance at the end of period¥67,707185

185¥68,078¥67,892

15. INVESTMENT AND RENTAL PROPERTIESThe Investment Corporation owns real estate for rental purposes in the Tokyo Metropolitan Area and other regional areas for the purpose ofgenerating rental revenues.
The book value and fair value concerning the above real estate for rental purposes are as follows.
19th Fiscal Period
from February 1, 2021
to July 31, 2021

18th Fiscal Period
from August 1, 2020
to January 31, 2021

(in thousands of yen)Book value
Balance at the beginning of period¥258,384,330¥248,229,744

Changes during the period
Balance at the end of period

5,820,457
264,204,787

10,154,586
258,384,330¥323,918,000¥312,166,000

Fair value at the end of period
Note 1: Book value excludes accumulated depreciation from acquisition costs.

Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 19th fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 5 properties totaling ¥7,340,422 thousand, and the principal decrease was the salesof real estate trust beneficiary interests in 1 property totaling ¥631,984 thousand and depreciation of ¥1,546,070 thousand, and during the18th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in 6 properties totaling ¥10,750,264
thousand and additional acquisition of real estate and real estate trust beneficiary interest in 2 properties amounting to ¥430,265 thousand,and the principal decrease was depreciation of ¥1,503,997 thousand.
Note 3: The fair value is the appraisal value or the survey value determined by outside appraisers. In addition, the fair value at the end of 18th
fiscal period of KDX Residence Sendagaya, which was sold on February 5, 2021, is based on the sales price (¥1,110,000 thousand) under
the trust beneficiary interest sales contracts entered into on January 26, 2021.
Income and loss in the fiscal periods ended July 31, 2021 and January 31, 2021 for real estate for rental purposes is listed in Note 6 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY”.

16. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from February 1, 2021 to July 31, 2021 and from August 1, 2020 to January 31, 2021 is asfollows:(A) Segment information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment
subject to disclosure.

73

(B) Related information(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income and retained earnings.
(2) Information about each geographic area(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income
and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plantand equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income
and retained earnings.

17. PER UNIT INFORMATION

Net asset value per unit

From February 1, 2021

From August 1, 2020

to July 31, 2021

to January 31, 2021

¥135,777¥133,646

Net income per unit

¥4,189¥3,817Weighted average number of units (units)989,825

951,258

The weighted average number of units outstanding of 989,825 and 951,258 were used for the computation of the amount of net income per unit
as of July 31, 2021 and January 31, 2021, respectively.
Net income per unit after adjusting for residual units is not included because there were no residual investment units.
The basis for calculating net income per unit is as follows:

Net income (in thousands of yen)
Net income not available to ordinary unitholders (in thousands of yen)
Net income available to ordinary unitholders (in thousands of yen)
Weighted average number of units during the period (units)

From February 1, 2021

From August 1, 2020

to July 31, 2021

to January 31, 2021

¥4,146,823¥3,631,741--¥4,146,823¥3,631,741

989,825

951,258

18. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable

19. SECURITIES PORTFOLIO
Securities portfolio consists of the following as of July 31, 2021
(1)

Stock Not applicable(2)

Securities other than shares Not applicable

Securities portfolio consists of the following as of January 31, 2021
(1) Stock Not applicable(2) Securities other than shares

Not applicable7420. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
Property, plant and equipment consist of the following as of July 31, 2021:
Type of asset

Property,plant andequipment

Intangible
assetsLand
Sub total
Buildings in trust
Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures intrust
Land in trust
Sub total
Total
Leasehold right in
trust
Other
Total

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiod¥172,666
172,666
108,177,749
1,175,676¥¥

3,112,405
75,269Depreciation
Depreciation
for theperiod(in thousands of yen)
¥172,666¥¥
172,666
111,119,141
15,847,746
1,450,106
1,249,509
319,090
34,603

Balance atthe end of
period171,014
1,436

Accumulated
depreciation

Netbalance at
end of theperiod¥172,666
172,666
95,271,394 Notes 1 and 2
930,419

1,493,742

11,7154,307

1,501,150

452,582

33,8301,048,567

798,111

145,367

1,698

941,780

147,578

25,805794,202160,714,888
272,360,169
272,532,836

4,653,754
7,998,512
7,998,512

496,137
674,593
674,593

164,872,506
279,684,088
279,856,754

16,766,997
16,766,997

1,544,345
1,544,345

1,122,504--

1,122,504

7,474

1,724

1,115,030

7,762¥1,130,267

-

-

7,762
¥1,130,267

5,304¥12,779776¥2,501

2,458¥1,117,488¥¥

Remarks

164,872,506 Notes 1 and 2
262,917,090
263,089,757

Note 1: The amount of increase during the period is primarily attributable to the acquisition of the real estate properties and capital expenditures.
Note2: The amount of decrease during the period is primarily attributable to the sales of the real estate property.
Property, plant and equipment consist of the following as of January 31, 2021:
Type of asset

Property,plant andequipment

Intangible
assetsLand
Sub total
Buildings in trust
Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures intrust
Land in trust
Sub total
Total
Leasehold right in
trust
Other
Total

Depreciation
Depreciation
for theperiod(in thousands of yen)
¥172,666¥¥
172,666
108,177,749
14,437,598
1,413,425
1,175,676
285,575
33,354

Increaseduring theperiodDecreaseduring theperiod¥1,798,041
1,798,041
104,694,136
1,127,421¥172,666
172,666
3,483,612
48,255¥1,798,041
1,798,041-

1,468,718

25,024-

1,493,742

420,189

33,429

1,073,553

693,103

105,008-

798,111

121,898

22,063676,213150,985,849
258,969,228
260,767,270

9,729,039
13,390,940
13,563,607

1,798,041

160,714,888
272,360,169
272,532,836

15,265,261
15,265,261

1,502,272
1,502,272

1,229,487-

106,982

1,122,504

5,749

1,724

1,116,755-¥106,982

7,762¥1,130,267

4,528¥10,277776¥2,501

3,234¥1,119,989

7,762¥1,237,249¥

Balance atthe end of
periodNetbalance at
end of theperiodBalance atthe beginningof period

Accumulated
depreciation¥172,666
172,666
93,740,151
890,101

Remarks

Note 2
Note 1

160,714,888 Notes 1 and 2
257,094,908
257,267,575
Note 2

Note 1: The amount of increase during the period is primarily attributable to the acquisition of the real estate properties and capital expenditures.
Note 2: Due to the change in ownership form to real estate trust beneficiary for Cosmo Heim Motosumiyoshi (land), land decreased and reclassified
into land in trust. On the other hand, due to the partial change in ownership form to real estate for Rehabili-home Granda Mondo Yakujin(land with leasehold interest), leasehold right in trust decreased and reclassified into Land.

75

21. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of July 31, 2021 are as follows.
Balance at theDecrease
Balance at
Date of
Seriesbeginning ofduring thethe end of
issue
periodperiodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2018(Note 1)Fifth series of unsecured
November 30,
investment corporation
1,000,000
1,000,000
2018
bonds (Note 1)
Sixth series of unsecured
December 20,
investment corporation
2,000,000
2,000,000
bonds(Social bond)2019(Note 1)Seventh series of
May 31,
unsecured investment
1,700,000
corporation bonds(Social
2021bond) (Note 1)¥ Total¥7,000,000¥ 8,700,000

Interest
rate

0.200%
0.540%
0.800%
0.410%
0.850%
0.750%

0.720%

Repayment date

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured(Note4)

Unsecured

August 30,
2021
August 28,
2026
August 30,
2028
November 30,
2023
November 30,
2028
December 20,
2029
May 30,2031

Note 1: Ranking pari passu among the specified investment corporation bonds.
Note 2: Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate andrepayment of debts.
Note 3: Investment corporation bonds were used as the funds for repayment of borrowings procured for the purpose of appropriating funds for theacquisition of social eligible assets.
Note 4: Investment corporation bonds were used as the funds for the acquisition of social eligible assets.
Note 5: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
Due after 1 year
Due after 2 years
Due after 3 years
Due after 4 years
or less
through 2 years
through 3 years
through 4 years
through 5 years
Investment
corporation bonds(in thousands of yen)

¥1,000,000¥ -¥1,000,000

Outstanding Investment corporation bonds as of January 31, 2021 are as follows.
Balance at theDecrease
Balance at
Date of
Seriesbeginning ofduring thethe end of
issue
periodperiodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2018(Note 1)Fifth series of unsecured
November 30,
investment corporation
1,000,000
1,000,000
2018
bonds (Note 1)
Sixth series of unsecured
December 20,
investment corporation
2,000,000
2,000,000
bonds(Social bond)2019(Note 1)
¥ Total¥7,000,000¥7,000,000¥ -Interest
rate

0.200%
0.540%
0.800%
0.410%
0.850%
0.750%

Repayment date

¥ -

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured

August 30,
2021
August 28,
2026
August 30,
2028
November 30,
2023
November 30,
2028
December 20,
2029

Note 1: Ranking pari passu among the specified investment corporation bonds.

76Note 2: Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate andrepayment of debts.
Note 3: Investment corporation bonds were used as the funds for repayment of borrowings procured for the purpose of appropriating funds for theacquisition of social eligible assets.
Note 4: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
Due after 1 year
Due after 2 years
Due after 3 years
Due after 4 years
or less
through 2 years
through 3 years
through 4 years
through 5 years
Investment
corporation bonds(in thousands of yen)

¥1,000,000¥ -¥1,000,000

¥ -

¥ -

77

22. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of July 31, 2021
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Banking Corporation
Short-term Sumitomo Mitsui
Banking Corporationloans
payableSumitomo Mitsui
Banking Corporation
Sub total
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Current
Sumitomo Mitsui
portion of Banking Corporation
longSumitomo Mitsui
termBanking Corporation
loans
Sumitomo Mitsui
payableBanking Corporation(Note 2)
Aozora Bank, Ltd.
(Note 2)
MUFG Bank, Ltd.
(Note 2)
Resona Bank,
Limited (Note 2)
Aozora Bank, Ltd.
(Note 2)
Shinsei Bank, Limited(Note 2)
Sumitomo Mitsui
Banking Corporation(Note 2)
MUFG Bank, Ltd.
(Note 2)
Mizuho Bank, Ltd.
(Note 2)
Sompo Japan
Insurance Inc.(Note 2)

Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sub total
Sumitomo Mitsui
Banking Corporation
Long-term
MUFG Bank, Ltd.
loans
Mizuho Bank, Ltd.
payableResona Bank,
Limited1,000,000-

1,000,000-

0.428%

February 28, 2021

500,000-

500,000-

0.428%

February 28, 2021

500,000-

500,000-

0.381%

July 31, 2021

2,000,000-

2,000,000-

1,000,000-

1,000,000-

1.221%

July 31, 2021

1,350,000-

1,350,000-

1.183%March 31, 2021

1,000,000-

1,000,000-

0.409%

July 31, 2021

1,000,000
500,000
500,000
900,000
500,000-

1,000,000
500,000
500,000
900,000
500,000-

0.409%
0.409%
0.409%
0.456%
0.456%

July 31, 2021
July 31, 2021
July 31, 2021
July 31, 2021
July 31, 2021

1,100,000--

1,100,000

1,100,000
600,000
350,000--

1,100,000
600,000
350,000

0.916%

August 7, 2021

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.996%(Note 5)

August 7, 2021

600,000--

600,000

0.945%

August 31, 2021

600,000
500,000--

600,000
500,000

0.945%
0.945%

August 31, 2021
August 31, 2021

1,200,000--

1,200,000

0.875%

January 31, 2022

800,000--

800,000

0.431%

January 31, 2022

2,000,000--

2,000,000

1.267%

April 30, 2022

1,500,000--

1,500,000

1.267%

April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022

2,000,000--

2,000,000

0.875%

April 30, 2022

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000--

1,000,000

1.115%

July 29, 2022

300,000--

300,000

1,000,000--

1,000,000-

1,000,000-

1,000,000

0.432%

February 28, 2022

0.432%

February 28, 2022

1.254%

August 7, 2023-

500,000-

500,000

27,200,000

1,500,000

6,750,000

21,950,000

400,000--

400,000

400,000
300,000--

400,000
300,000

200,000--

200,00078

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

200,000--

200,000

150,000--

150,000

500,000--

500,000

950,000
1,200,000--

1,500,000-

2,000,000-

1,000,000

950,000
1,200,000

1.320%(Note 5)1.083%
1.105%

November 30, 2022
January 31, 2024-

1,500,000

0.987%

April 30, 2023-

2,000,000

1.100%

April 30, 2024--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

August 7, 2023

1,000,000--

1,000,000

1,000,000
1,000,000--

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

Aozora Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Long-term
Resona Bank,
loans
LimitedpayableMUFG Bank, Ltd.

1,000,000--

1,000,000

0.660%(Note 5)0.816%(Note 5)0.713%

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

0.797%

August 31, 2025

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

0.773%(Note 5)October 31, 2025

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

0.900%
0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)1,500,000--

1,500,000

0.501%

February 28, 2023

1,500,000
1,500,000--

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

0.582%
0.624%
0.661%(Note 5)1,500,000--

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
Limited0.670%(Note 5)0.751%(Note 5)

August 31, 2024
April 27, 2025
April 28, 2025
April 30, 2026
July 31, 2025
August 31, 2026
August 31, 2024

August 31, 2025
August 31, 2025

August 22, 2027
August 22, 2027
August 22, 2027
August 22, 2027

August 31, 2024

79

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Trust Bank, Limited
Nippon Life Insurance
Company
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
Nippon Life Insurance
Company
Resona Bank,
LimitedShinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedLong-term Sumitomo Mitsui
loans
Trust Bank, Limited
payableMizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

0.799%

February 2, 2026

500,000--

500,000

500,000--

500,000

400,000--

400,000

400,000--

400,000

0.799%

February 2, 2026

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.509%

August 31, 2022

0.509%
0.498%(Note 5)

August 31, 2022

400,000--

400,000

1,600,000--

1,600,000

1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

0.914%
0.884%(Note 5)0.825%(Note 5)0.920%(Note 5)1.031%

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

Mizuho Bank, Ltd.

2,000,000--

2,000,000

Shinsei Bank, Limited
Shinsei Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Trust Bank, Limited
The Bank ofFukuoka, Ltd.
Mizuho Bank, Ltd.

500,000
500,000
800,000--

500,000
500,000
800,000

0.330%(Note 5)0.484%
0.272%
0.299%

November 30, 2025
January 31, 2023
July 31, 2023

1,000,000--

1,000,000

0.572%

August 31, 2026

500,000--

500,000

0.325%

April 30, 2023

MUFG Bank, Ltd.
Nippon Life Insurance
Company
Shinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Trust &Banking Co., Ltd.

August 31, 2022

February 28, 2027
February 28, 2027
September 30, 2026
September 30, 2028

May 31, 2025

450,000--

450,000

0.336%

April 30, 2024

1,500,000
500,000--

1,500,000
500,000

0.600%
0.329%

November 30, 2026
July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023

500,000--

500,000

0.259%

February 29, 2024

80

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Trust Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
The Bank ofFukuoka, Ltd.

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.464%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

400,000--

400,000

0.414%

February 28, 2027

0.450%(Note 5)0.531%
0.300%(Note 5)

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

0.646%

June 30, 2028

800,000--

800,000

0.646%

June 30, 2028

500,000--

500,000

0.616%(Note 5)June 30, 2028

1,750,000--

1,750,000

0.691%

July 31, 2028

1,750,000--

1,750,000

0.641%

July 31, 2028

1,000,000--

1,000,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

Sumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo MitsuiLong-term Banking Corporation
Mizuho Trust &loans
Banking Co., Ltd.
payableMUFG Bank, Ltd

February 28, 2027
February 29, 2028
February 29, 2024

500,000--

500,000

0.640%

August 31, 2028

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

300,000--

300,000

0.690%

August 31, 2028

840,000--

840,000

0.648%

September 30, 2028

900,000--

900,000

0.658%

September 30, 2028

800,000--

800,000

0.658%

September 30, 2028

Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.

1,330,000--

1,330,000

0.658%

September 30, 2028

500,000--

500,000

0.558%

September 30, 2028

400,000--

400,000

0.608%

September 30, 2028

MUFG Bank, Ltd

800,000--

800,000

MUFG Bank, Ltd

300,000--

300,000

0.550%(Note 5)0.637%

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd

500,000--

500,000

0.478%

April 30, 2025

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

1,000,000--

1,000,000

0.599%

January 31, 2028

1,200,000--

1,200,000

0.409%

January 31, 2025

1,100,000--

1,100,000

0.359%

January 31, 2025-

1,350,000-

1,350,000

0.677%March 31, 2029-

1,000,000-

1,000,000

July 31, 2024-

500,000-

500,000

0.252%
0.350%(Note 5)-1,000,000-

1,000,000

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Shinsei Bank, Limited
Daishi Hokuetsu
Bank, Ltd.
The Bank of
Yokohama, Ltd.

0.467%

September 30, 2028
October 31, 2027

January 31, 2027
July 31, 2029

81Classification

Balance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-1,400,000

0.598%

January 31, 2030

1,000,000-

1,000,000

Balance atthebeginning of
periodIncreaseduring theperiodSumitomo Mitsui
Banking Corporation-

1,400,000

MUFG Bank, Ltd-

LenderDecreaseduring theperiodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Long-term
loans
payableNippon Life Insurance
Company
Sub total

Total

-

1,000,000-

1,000,000

109,020,000

7,250,000-

116,270,000¥138,220,000¥8,750,000¥8,750,000¥138,220,000

0.575%(Note 5)0.700%(Note 5)January 31, 2030
January 31, 2030

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 2

Due after 1 year

Due after 3 years

years

through 2 years

through 3 years

through 4 years

Due after 4
years through 5
years

Due after 5
years(in thousands of yen)
Long-term loans payable¥ 13,350,000¥ 15,850,000¥ 16,350,000¥ 19,000,000¥ 51,720,000

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.
Short-term debt and long-term debt consist of the following as of January 31, 2021
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-0.414%

January 31, 2021

1,000,000

0.414%

February 28, 2021

Balance atthe end of
periodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Short-term Banking Corporation
loans
Sumitomo Mitsui
payableBanking Corporation
Sumitomo Mitsui
Banking Corporation
Sub total
MUFG Bank, Ltd.

Current
portion of
longtermloanspayableSumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation(Note 2)
MUFG Bank, Ltd.
(Note 2)¥800,000
1,000,000¥-¥800,000--

500,000--¥

500,000

0.414%

February 28, 2021

0.364%

July 31, 2021

500,000--

500,000

2,800,000-

800,000

2,000,000

1,000,000-

1,000,000-

1.109%

January 31, 2021

2,000,000-

2,000,000-

0.804%

November 30, 2020

300,000
300,000
500,000-

300,000
300,000
500,000-

0.678%
0.624%
0.422%

August 31, 2020
October 27, 2020
August 31, 2020

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

1,000,000--

1,000,000

0.409%

July 31, 2021

1,000,000
500,000
500,000
900,000
500,000--

1,000,000
500,000
500,000
900,000
500,000

0.409%
0.409%
0.409%
0.439%
0.439%

July 31, 2021
July 31, 2021
July 31, 2021
July 31, 2021
July 31, 2021

1,100,000--

1,100,000
0.916%

August 7, 2021

1,100,000--

1,100,000

82

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)

0.996%(Note 5)

August 7, 2021

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)Mizuho Bank, Ltd.
(Note 2)
Aozora Bank, Ltd.
(Note 2)
Resona Bank,
Limited (Note 2)
Mizuho Trust &Banking Co., Ltd.
(Note 2)Development Bank ofCurrent
portion of Japan Inc.
(Note 2)longterm
Sumitomo Mitsui
loansBanking Corporation
payable(Note 2)
MUFG Bank, Ltd.
(Note 2)
Aozora Bank, Ltd.
(Note 2)
Sumitomo Mitsui
Banking Corporation(Note 2)
Sumitomo Mitsui
Banking Corporation
Sub total
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank,
LimitedSumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Long-term
Sumitomo Mitsui
loansBanking Corporation
payableShinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Insurance Inc.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

600,000--

600,000

350,000--

350,000

300,000--

300,000--

300,000--

1,000,000

300,000
1,000,000
600,000--

600,000

0.945%

August 31, 2021

600,000--

600,000

0.945%

August 31, 2021

500,000--

500,000

0.945%

August 31, 2021

1,200,000--

1,200,000

0.875%

January 31, 2022

0.428%

January 31, 2022-

800,000-

800,000

18,500,000

800,000

4,100,000

15,200,000

2,000,000--

2,000,000

1.267%

April 30, 2022

1,500,000
1,000,000--

1,500,000
1,000,000

1.267%
1.267%

April 30, 2022
April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022--

400,000--

400,000
300,000

200,000--

200,000

1.254%

August 7, 2023

200,000--

200,000

150,000--

150,000

500,000--

500,000

950,000
1,200,000
2,000,000--

950,000
1,200,000
2,000,000

1.320%(Note 5)1.083%
1.105%
0.875%

November 30, 2022
January 31, 2024
April 30, 2022

1,500,000--

1,500,000

0.987%

April 30, 2023

2,000,000--

2,000,000

1.100%

April 30, 2024

1,000,000--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

400,000
400,000
300,000

August 7, 2023

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

1,000,000
1,000,000--

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%

August 31, 2024
April 27, 2025
April 28, 2025
April 30, 2026

83

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

Aozora Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Resona Bank,
Limited1,000,000--

1,000,000

0.660%(Note 5)0.816%(Note 5)0.713%

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000-

500,000

0.797%

August 31, 2025

MUFG Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo MitsuiLong-term Banking Corporation
MUFG Bank, Ltd.
loans
payableMizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Nippon Life Insurance
Company
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
Nippon Life Insurance
Company
Resona Bank,
LimitedShinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation-

0.670%(Note 5)0.751%(Note 5)

July 31, 2025
August 31, 2026
August 31, 2024

2,000,000--

2,000,000

August 31, 2025

500,000--

500,000

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

0.773%(Note 5)October 31, 2025

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

0.900%
0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)

August 22, 2027

1,200,000

1,500,000--

1,500,000

0.501%

February 28, 2023

1,500,000
1,500,000--

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

0.582%
0.624%
0.661%(Note 5)1,500,000--

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000--

400,000

0.799%

February 2, 2026

400,000--

400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

August 31, 2022

1,600,000--

1,600,000

0.509%
0.498%(Note 5)1,200,000--

1,200,000

0.592%

August 31, 2023

August 31, 2025

August 22, 2027
August 22, 2027
August 22, 2027
August 22, 2027

August 31, 2024

August 31, 2022

84

Classification
LenderBalance atthebeginning of
periodAozora Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.

1,000,000
800,000

MUFG Bank, Ltd.
Nippon Life Insurance
Company
Shinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Shinsei Bank, Limited
Shinsei Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Long-term Shinsei Bank, Limited
loans
Mizuho Trust &payableBanking Co., Ltd.
Sumitomo Mitsui
Trust Bank, Limited
The Bank ofFukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
The Bank ofFukuoka, Ltd.

Decreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)(in thousands of yen)-

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

Increaseduring theperiod

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

0.914%
0.884%(Note 5)0.825%(Note 5)0.920%(Note 5)1.031%

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

2,000,000--

2,000,000

500,000
500,000
800,000--

1,000,000-

500,000
450,000

Unsecured/
Unguaranteed

September 30, 2026
September 30, 2028

500,000
500,000
800,000

November 30, 2025
January 31, 2023
July 31, 2023-

1,000,000

0.572%

August 31, 2026--

500,000

0.325%

April 30, 2023--

450,000

0.336%

April 30, 2024

1,500,000
500,000--

1,500,000
500,000

0.600%
0.329%

November 30, 2026
July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.464%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

400,000--

400,000

0.414%

February 28, 2027

May 31, 2025

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

0.646%

June 30, 2028

800,000--

800,000

0.646%

June 30, 2028
June 30, 2028

Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited(Note 6)

February 28, 2027

MUFG Bank, Ltd.

Sumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited

Remarks

February 28, 2027

0.330%(Note 5)0.484%
0.272%
0.299%

0.450%(Note 5)0.531%
0.300%(Note 5)Use

February 28, 2027
February 29, 2028
February 29, 2024

500,000--

500,000

0.616%(Note 5)1,750,000--

1,750,000

0.691%

July 31, 2028

1,750,000--

1,750,000

0.641%

July 31, 2028

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.641%

July 31, 2028

Mizuho Bank, Ltd.

500,000--

500,000

0.641%

July 31, 2028

85

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust &Banking Co., Ltd.
MUFG Bank, Ltd

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

1,000,000--

1,000,000

0.686%

July 31, 2028-

800,000-

800,000

0.637%

July 31, 2028-

500,000-

500,000

0.640%

August 31, 2028-

300,000-

300,000

0.690%

August 31, 2028-

840,000-

840,000

0.648%

September 30, 2028-

900,000-

900,000

0.658%

September 30, 2028-

800,000-

800,000

0.658%

September 30, 2028-

1,330,000-

1,330,000

0.658%

September 30, 2028-

500,000-

500,000

0.558%

September 30, 2028-

400,000-

400,000

0.608%

September 30, 2028-

800,000-

800,000

0.550%

September 30, 2028-

300,000-

300,000

0.637%

October 31, 2027

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd-

500,000-

500,000

0.478%

April 30, 2025-

1,000,000-

1,000,000

0.585%

October 31, 2027-

2,000,000-

2,000,000

0.617%

November 30, 2027-

1,000,000-

1,000,000

0.599%

January 31, 2028

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sub total-

1,200,000-

1,200,000

0.409%

January 31, 2025-

1,100,000-

1,100,000

0.359%

January 31, 2025

Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Long-term Mizuho Bank, Ltd.
Resona Bank,
loans
LimitedpayableMizuho Trust &Banking Co., Ltd.
MUFG Bank, Ltd(Note 5)
MUFG Bank, Ltd

Total

106,750,000

14,270,000-

121,020,000¥128,050,000¥15,070,000¥4,900,000¥138,220,000

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 1 year
through 2 years
Long-term loans payable¥18,250,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥14,400,000¥15,900,000

Due after 4 years
through 5 years

Due after 5 years¥15,500,000¥56,970,000

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.

8623. DISTRIBUTIONS
19th Fiscal Period(From February 1, 2021 to July 31, 2021)

I. Retained earnings at the end of period

18th Fiscal Period(From August 1, 2020 to January 31, 2021)¥4,296,284,882¥3,997,276,406¥20,000,000¥20,000,000¥4,100,050,311¥3,867,815,028¥4,117¥4,066¥216,234,571¥149,461,378

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,100,050,311, which is the amount deducteda part of gain on sale of real estate property and otheradjustments from net income and added reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
19th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥3,867,815,028, which is the amount of¥3,631,741,850 in net income and ¥216,073,178 fromretained earnings brought forward and reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
18th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

II. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments (Note 1)
III. Total distributions
Distributions per unit
IV. Retained earnings brought forward to
the next period

Method of calculating distribution amount

Note 1: Reserve for temporary difference adjustments
19th Fiscal Period (February 1, 2021 to July 31, 2021)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 19th fiscal period distribution.
18th Fiscal Period (August 1, 2020 to January 31, 2021)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 18th fiscal period distribution.

87