July 14, 2022

Financial Report for the Fiscal Period Ended May 31, 2022
(December 1, 2021 – May 31, 2022)

Activia Properties Inc.
Listing:
Securities code:
URL:
Representative:

Tokyo Stock Exchange3279
https://www.activia-reit.co.jp/en/
Nobuhide Kashiwagi, Executive Director

Investment management company:
TLC REIT Management Inc.
Representative: Masaoki Kanematsu, President & CEO
Contact:
Kazuyuki Murayama, General Manager of Strategy Department,
Activia Management Division
TEL: +81-3-6455-3377
Scheduled date to file Securities Report:
Scheduled date to start distribution payments:
Supplementary material on financial report:
Financial report presentation meeting:

August 29, 2022
August 16, 2022
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen)1.

Summary of financial results for the fiscal period ended May 31, 2022
(December 1, 2021 – May 31, 2022)(1) Operating results(Percentages show changes from the corresponding amounts for the previous period.)
Operating revenue

Fiscal period ended
May 31, 2022
Fiscal period ended
November 30, 2021

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

15,512

(0.9)

8,624

(1.5)

7,734

(0.6)

7,731

(0.3)

15,646

6.3

8,758

8.1

7,781

7.3

7,753

6.9

Basic earnings per unit

Return on unitholders’equity (ROE)%

Ordinary profit tototal assets

Ordinary profit tooperating revenue

Yen%%
Fiscal period ended
9,453
2.8
1.4
49.9
May 31, 2022
Fiscal period ended
9,754
2.9
1.4
49.7
November 30, 2021
(Note) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (794,871 units for the fiscal period ended November 30, 2021 and 817,847 units for the fiscal period ended
May 31, 2022).

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(2) Cash distributions
Cash
distributions
per unit

Total
distributions(excluding excessof earnings)(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unit

Yen Millions of yen
Fiscal period ended
May 31, 2022
Fiscal period ended
November 30, 2021

(including excessof earnings)

Yen Millions of yen

Total
distributions(including excessof earnings)

Yen Millions of yen

9,510

7,727

0

0

9,510

7,727

9,360

7,700

0

0

9,360

7,700

Payout ratio

Distribution
ratio tounitholders’equity

%

%

99.9

2.8

99.3

2.8

Fiscal period ended
May 31, 2022
Fiscal period ended
November 30, 2021

(Note)

Cashdistributions
per unit

Total
distributions
in excess ofearnings

Because new investment units were issued during the fiscal period ended November 30, 2021 andtreasury investment units were canceled during the fiscal period ended May 31, 2022, the payout ratios
for these periods are obtained by the following formula with figures rounded to the first decimal place:
Payout ratio = total distributions (excluding excess of earnings) / profit × 100(3) Financial position

As of May 31, 2022

Total assets

Net assets

Millions of yen
562,272

Millions of yen
274,768

566,257

278,716

As of November 30, 2021
(Reference) Unitholders’ equity
As of November 30, 2021:
As of May 31, 2022:

Unitholders’ equity tototal assets%
48.9

Net assets per unit

49.2

338,760

Yen
338,149¥278,716 million¥274,768 million(4) Cash flows

Fiscal period ended
May 31, 2022
Fiscal period ended
November 30, 2021

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

9,234

(774)

(11,909)16,60821,002(49,887)

31,061

20,057-2-

2.

Forecasts of results for the fiscal period from June 1, 2022 to November 30, 2022 andthe fiscal period from December 1, 2022 to May 31, 2023
(Percentages show changes from the corresponding amounts for the previous period.)
Operatingrevenue
Millionsof yenFiscal period ending
November 30, 2022
Fiscal period ending
May 31, 2023

15,882

Operatingprofit% Millionsof yen2.4

15,868 (0.1)

8,834

Ordinary
profit% Millionsof yen2.4

8,712 (1.4)

7,888(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unit

%

Yen

Yen

Cash
distributions
per unit

Profit% Millionsof yen
2.0

7,773

0.5

9,300

0

7,706 (2.3)

7,693

(1.0)

9,350

0

(Reference) Forecasted profit per unit (forecasted profit / total projected number of investment units issued at end of period)
for the fiscal period ending November 30, 2022:¥9,566for the fiscal period ending May 31, 2023:¥9,468* Other(1) Changes in accounting policies, changes in accounting estimates, and restatement of priorperiod financial statements
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards and other regulations: None
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement of prior period financial statements: None

(2) Total number of units issueda.

b.

Total number of units issued at end of period (including treasury investment units)
As of May 31, 2022

812,564 units

As of November 30, 2021

822,754 units

Number of treasury investment units at end of period
As of May 31, 2022

– units

As of November 30, 2021

– units(Note) Please refer to “Per Unit Information” on page 37 for the number of investment units used as the basis
for calculating basic earnings per unit.

* Financial reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Other special items
Forward-looking statements presented in this financial report including forecasts of results are based on
information currently available to us and on certain assumptions we deem to be reasonable. As such, actual
operating and other results may differ materially due to a number of factors. Furthermore, these forecasts arein no way a guarantee of any distribution amount. Please refer to “Assumptions for Forecasts of Investment
Performance for the 22nd Fiscal Period from June 1, 2022 to November 30, 2022 and the 23rd Fiscal Period
from December 1, 2022 to May 31, 2023” on pages 11 through 13 for information on assumptions for theforecasts.

This English version is a translation of the original Japanese document and is only for reference purposes. In
the case where any differences occur between the English version and the original Japanese version, theJapanese version will prevail.

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Index
1. Asset Management Status .............................................................................................................................. 5(1) Asset Management Status ...................................................................................................................... 5
2. Financial Statements .................................................................................................................................... 14(1) Balance Sheet ....................................................................................................................................... 14(2) Statement of Income ............................................................................................................................ 16(3) Statement of Unitholders’ Equity......................................................................................................... 17(4) Statement of Cash Distributions .......................................................................................................... 19(5) Statement of Cash Flows...................................................................................................................... 20(6) Notes on Assumption of Going Concern ............................................................................................. 21(7) Notes on Important Accounting Policies ............................................................................................. 21(8) Notes to Financial Statements .............................................................................................................. 23(9) Changes in Total Number of Investment Units Issued and Outstanding ............................................. 38
3. Reference Information ................................................................................................................................. 41(1) Composition of Invested Assets ........................................................................................................... 41(2) Investment Assets ................................................................................................................................ 42-4-

1. Asset Management Status(1) Asset Management Statusi) Summary of Results for the Current Fiscal Period(A) Transition of Investment Corporation
Activia Properties Inc. (hereinafter referred to as the “Investment Corporation”) was established on
September 7, 2011, with unitholders’ capital of ¥200 million (400 units) and TLC Township Inc. (onApril 1, 2017, an absorption-type merger took place with current TLC REIT Management Inc.
(hereinafter referred to as the “Asset Manager”) as a surviving company and TLC Activia Investment
Management Inc. (its trade name was changed from TLC Township Inc. on April 1, 2012) as anabsorbed company) as the organizer under the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951, including subsequent revisions; hereinafter referred to as the “Investment TrustAct”), and completed its registration in the Kanto Local Finance Bureau on September 20, 2011
(Director-General of the Kanto Local Finance Bureau No. 73).
After that, the Investment Corporation was listed on the real estate investment trust securities marketof Tokyo Stock Exchange, Inc. (Securities code 3279) on June 13, 2012. On September 7, 2021, theInvestment Corporation carried out its seventh publicly offered capital increase after the listing, andon September 28, 2021, it carried out a third-party allotment.
“Activia” of “Activia Properties,” the name of the Investment Corporation, has been coined from thewords “activate” and “ia,” a suffix meaning “place.” By investing in and managing real estate
appropriate to its name, the Investment Corporation seeks to become an entity capable of broadlyenergizing society. The Investment Corporation will also select real estate capable of sustaining
customer demand as a location for both corporate activities and urban recreation in popular areas,
with the aim of maximizing the medium- and long-term value of unitholders, supported by its
proactive management (management to improve the circumstances by taking initiatives and acting forthe future).
The Investment Corporation has continued to carefully select investment assets with a focus on
location and quality since having concluded its IPO, and consequently held 47 properties (with thetotal acquisition price of ¥548,035 million) at the end of the fiscal period under review.
(B) Investment Environment in the Fiscal Period Under Review
During the fiscal period under review, the Japanese economy showed signs of a gradual recovery,
despite another slight contraction due to the expansion of the COVID-19 mutations and the resulting
issuance of a quasi-state of emergency to prevent the spread of COVID-19.
With respect to the environment surrounding retail properties, a recovery trend in personal
consumption, as well as robust sales of high-end products and spring/summer clothing, was observed
due in part to a return of the flow of people as a result of a decrease in the number of people who were
infected with the disease.
The rental office market has become more stable than before, although the prevalence of teleworking,as well as office consolidations and relocations to smaller offices aimed at cost reductions, continue.
Meanwhile, the average vacancy rate in the five central wards of Tokyo (Chiyoda-ku, Minato-ku,
Chuo-ku, Shibuya-ku and Shinjuku-ku) as of May 31, 2022, according to data published by Miki
Shoji Co., Ltd., was 6.37%, an increase of 0.02 percentage points from the period ended November
30, 2021. Rent levels have dropped for 22 consecutive months starting in August 2020. The averagerent per tsubo (about 3.3 square meters) in the five central wards of Tokyo as of May 31, 2022, was¥20,319. Vacancy rates remain high in major cities other than Tokyo, but there are signs that rent
levels have bottomed out.
The J-REIT market saw volatile price movements due to accelerated monetary tightening in the U.S.
from the beginning of 2022 and the escalation of tensions in Ukraine in March, but subsequently, themarket regained its ground, and the price bounced back by the end of May 2022.
(C) Investment Performance
The Investment Corporation has continued to maintain and improve its portfolio in accordance withthe basic asset management policy set forth in the Articles of Incorporation. Consequently, total assets
held by the Investment Corporation at the end of the fiscal period under review were 47 properties(with the total acquisition price of ¥548,035 million) with the total leasable area of 428,911.58 m2(129,743 tsubo).
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The trend of monthly average occupancy rate (Note) during the fiscal period under review is asfollows:
December31, 2021

January 31, February 28,
2022
2022

March 31,2022

April 30,2022

May 31,
2022

Urban Retail
Properties

97.4%

97.7%

97.5%

96.9%

96.2%

97.7%

Tokyo Office
Properties

95.8%

96.2%

96.6%

97.4%

96.4%

96.7%

Activia
Account
Properties

97.9%

97.9%

97.9%

98.0%

97.9%

98.7%

Total

97.1%

97.3%

97.4%

97.5%

97.0%

97.8%

(Note)

Figures for occupancy rates are rounded to the nearest tenth.

(D) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” withthe aim of maximizing medium- and long-term unitholder value, the Investment Corporation has beenpromoting various initiatives with its sights set on lowering environmental loads and contributing toour nearby surroundings and local communities, thereby extending beyond considerations such as
location, use, size and qualities. In July 2019, as material issues that the Investment Corporation needs
to address, we released quantitative targets encompassing a wider range of performance benchmarks
from an environmental standpoint, and also clearly stated practical management policy to such ends.
In addition, we are striving daily to achieve our basic objective of cutting unit energy consumption,etc. by an annual average of 1% over the medium to long term. Sustainability Department wasestablished as of April 1, 2021 to expand the functionality of the Sustainability Promotion System of
TLC REIT Management Inc., our Asset Manager. The Sustainability Department succeeds the ESGrelated missions from the Environmental Engineering Department, and we will further promote oursustainability program. Environmental load reduction work during the fiscal period under review
includes escalator control renewal at A-FLAG SHIBUYA and air conditioning equipment
replacement at Commercial Mall Hakata. The introduction of eco-mode operation, which senses
usage conditions and controls speed, in the escalator control renewal work at A-FLAG SHIBUYA,
has led to power consumption saving and improved energy-saving performance.
Moreover, we continue to engage in annual initiatives geared to acquiring green building
certifications. During the fiscal period under review, we have acquired the CASBEE (Comprehensive
Assessment System for Built Environment Efficiency) for Real Estate certification for icot Nakamozu(A class) and A-FLAG SHIBUYA (A class). We have also acquired the DBJ Green Building
Certification for Shiodome Building (four stars). As such, a total of 29 of our properties have acquired
green building certification, which amounted to 65.5% of our holdings calculated on the basis of grossfloor area (as of May 31, 2022).
In addition, in a total of 24 office properties, including TLC Ebisu Building and A-PLACE Ebisu
Minami, service to provide preferential group services for tenant employees has been launched. Aswell, Tokyu Plaza Omotesando Harajuku provides space to exhibit the works of graduates and current
students of nearby vocational schools. Industry-academia collaboration is also underway. The
Investment Corporation will contribute to achieving a sustainable society by engaging in suchinitiatives geared to the environment and society.
(E) Overview of Financing
During the fiscal period under review, the Investment Corporation borrowed ¥14,100 million largely
in order to cover repayment of borrowings that had come due, and worked to otherwise maintain astable financial base through ongoing moves that have included diversifying repayment dates. As aresult, as of the end of the fiscal period under review, the balance of interest-bearing debt was¥260,350 million (borrowings of ¥233,650 million and investment corporation bonds of ¥26,700
million). The ratio of interest-bearing debt to total assets (LTV = Balance of interest-bearing debt /Total assets x 100) was 46.3% as of the end of the fiscal period under review. The long-term debt
ratio and the ratio of fixed-interest debt to total interest-bearing debt were 100% and 98.3%,
respectively.
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The credit rating the Investment Corporation has obtained as of the end of the fiscal period underreview is as follows. This investment unit does not have a credit rating provided or made available forinspection by a credit rating agency or one scheduled to be provided or made available for inspection
by a credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

Rating

Forecast

Japan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable(F) Overview of Financial Results and Distributions in the Fiscal Period Under Review
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary
profit were ¥15,512 million, ¥8,624 million, and ¥7,734 million, respectively, for the fiscal period
under review, and profit was ¥7,731 million.
As for distributions for the fiscal period under review, the decision was made with respect to paying
distributions of profit of ¥7,727,483,640, which is the entire amount of the unappropriated retained
earnings less the amount equivalent to the internal reserve and the reversal of allowance for temporary
difference adjustments (refers to stipulations of Article 2, Paragraph 2, Item 30 of the Regulations on
Accountings of Investment Corporations). Consequently, distributions per investment unit resulted in¥9,510.

-7-ii) Outlook for the Next Fiscal Period(A) Investment Environment for the Next Fiscal Period
The Japanese economy is expected to normalize its economic activities and recover thanks to progressin vaccination rollout and various government measures. Meanwhile, it is necessary to closely
monitor risks such as the progress of the depreciation of the yen, stagnation in supply chains, andinstability in financial and capital markets due to the monetary policies of central banks in various
countries, in addition to the prolonged tension in Ukraine.
With respect to the environment surrounding retail properties, the number of foreign visitors to Japanis expected to pick up due to the recent easing of immigration restrictions; on the other hand, the riskof household purchasing power being pressured by full-scale price hikes in food and other products
due to the depreciated yen and soaring energy prices requires careful consideration. In the rental officemarket, although an increase in new supply from FY2023 onward should be closely watched, thechoices of and preference for properties in favorable locations, in particular, are expected to continue
to dominate as the trend of relocations to smaller offices and partial contract cancellations appears tohave been leveled off. The J-REIT market has had relatively stable medium- to long-term earnings
performance, despite the fact that the outlook remains uncertain with the market on the verge ofrecovering from COVID-19, and a continuous influx of money is expected for J-REIT with its
enticingly high dividend yield level.
Amid this environment, the Investment Corporation will fulfill its social responsibility in preventing
the spread of infections, etc. while minimizing the impact of the COVID-19 pandemic through its
abundant management expertise, and in line with its medium- to long-term portfolio strategy of asset
replacement, etc., it will aim to return to the path of improving unitholder value through external
growth by leveraging sponsor support and through internal growth by utilizing the strength of its
properties focused on location and quality.
(B) Investment Policy and Developments to Be Addressed in the Next Fiscal Perioda. Basic Policy
The Investment Corporation’s basic policies are to invest in assets, with targeted investments in
Urban Retail and Tokyo Office properties; utilize the Tokyu Fudosan Holdings Group’s value chain
based on the comprehensive support system; and a governance structure that maximizes unitholder
value.
b. External Growth Strategy
The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main
target. It will make its investment decisions carefully, concentrating on selecting properties in
excellent locations, including surrounding areas, and thoroughly considering individual factors suchas use, size, specifications and other qualities of properties, and credibility and name recognition oftenants, in order to construct a competitive portfolio in the medium to long term.
To acquire these competitive assets on an ongoing basis, the Investment Corporation will work tomaintain and improve the quality of its portfolio by rigorously selecting investment assets based on
the information it receives under its sponsor support agreement with Tokyu Land Corporation
regarding the Investment Corporation and its support agreement with four group companies in the
Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive know-how
and information-gathering network of the Asset Manager.
c. Internal Growth Strategy
The Investment Corporation will operate, manage, and refurbish its portfolio to maintain andimprove the competitiveness of its facilities through a comprehensive understanding of the featuresof its overall portfolio and its individual assets under management, based on the unique expertise of
its Asset Manager. The Investment Corporation will also seek to manage its portfolio in a stablemanner and strengthen its earnings by establishing appropriate operational and management
systems tailored to the specific characteristics of the assets it has invested in, and through regularand non-regular inspections by the property management company that has considerable experiencein the operation and management of real estate.
The Investment Corporation will also maintain and improve the value of its assets through its
expertise in internal growth through operating and managing properties. It will maximize thecompetitiveness of its assets through the ongoing assistance of Tokyu Land Corporation and other-8-

support companies, which, through their face-to-face business with consumers, have richinformation regarding consumer needs and developments in industries such as retail and services.
With respect to the property management business for the assets under management, leasing support
has been provided from Tokyu Land Corporation, Tokyu Land SC Management Corporation or
Tokyu Community Corp.
d. Financial Strategy
Having a sound financial strategy in an effort to conservatively control LTV as well as make stablelong-term borrowings and diversify maturities (diversifying repayment dates), the Investment
Corporation will endeavor to build a stable financial base with a solid bank formation based ongood relationships with major financial institutions. In addition, with the aim of diversifying meansof raising funds, the Investment Corporation will issue investment corporation bonds while paying
close attention to trends in financial markets. Concerning the issuance of new investment units,
moreover, the Investment Corporation will prudently and flexibly carry out such issuance while
paying appropriate attention to various environmental factors with the aim of achieving long-termand stable growth.
(C) Significant Subsequent Events
Not applicable.
< Reference Information >The Investment Corporation transferred below in accordance with the basic asset management
policy set forth in the Articles of Incorporation.
(UR-14) A-FLAG KITASHINSAIBASHI
Type of assets

Beneficial interests in trust

Scheduled transfer price¥5,100 million in total

Scheduled delivery dateJune 30, 2022

Location

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

Use

Retail, office and parking

Land area

627.13 m2

Gross floor area

3,096.18 m2

Structure
Month and year of completion

Steel frame, reinforced concrete / 7 floors above and 1 floor
underground
March 2008

Ownership

Owned

The Investment Corporation plans to transfer property listed below in accordance with the basic
asset management policy set forth in the Articles of Incorporation.
(TO-5) Luogo Shiodome
Type of assets

Beneficial interests in trust

Scheduled transfer price¥9,110 million in total

Scheduled delivery date

Location(1) ¥1,822 million (20% co-ownership interest)(2) ¥2,642 million (29% co-ownership interest)(3) ¥4,646 million (51% co-ownership interest)(1) November 30, 2022 (20% co-ownership interest)(2) May 31, 2023 (29% co-ownership interest)(3) June 1, 2023 (51% co-ownership interest)
3-3, Higashi-shinbashi 2-chome, Minato-ku, Tokyo

Use

OfficeLand area

1,134.44 m2

Gross floor area

8,242.61 m2-9-Structure
Month and year of completion

Steel frame, steel-framed reinforced concrete / 11 floors above
and 1 floor underground
July 2004

Ownership
Owned(Note) The contract for the sale of beneficial interests in trust falls under a forward
commitment, etc. as provided in the “Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.” by Financial Services Agency(forward commitment, etc. refers to a postdated sales contract under which payment
and delivery shall be made at least one month after the conclusion of the contract, or
any other contract similar thereto).
(D) Outlook of Investment Performance
For the fiscal period ending November 30, 2022 (22nd fiscal period: June 1, 2022 to November 30,2022), investment performance is estimated as follows. For the assumptions used for the estimation of
investment performance, please refer to “Assumptions for Forecasts of Investment Performance forthe 22nd Fiscal Period from June 1, 2022 to November 30, 2022 and the 23rd Fiscal Period from
December 1, 2022 to May 31, 2023” on pages 11 through 13.
Operating revenue¥15,882 million

Operating profit¥8,834 million

Ordinary profit¥7,888 million

Profit¥7,773 million

Cash distributions per unit

¥9,300Cash distributions in excess of earnings per unit¥–

If it is assumed that there are no changes in “Assumptions for Forecasts of Investment Performancefor the 22nd Fiscal Period from June 1, 2022 to November 30, 2022 and the 23rd Fiscal Period from
December 1, 2022 to May 31, 2023” on pages 11 through 13, the outlook of investment performancefor the fiscal period ending May 31, 2023 (23rd fiscal period: December 1, 2022 to May 31, 2023) isestimated as follows.
Operating revenue¥15,868 million

Operating profit¥8,712 million

Ordinary profit¥7,706 million

Profit¥7,693 million

Cash distributions per unit

¥9,350Cash distributions in excess of earnings per unit¥–

(Note) The above estimation is determined based on certain assumptions at the time of preparing
the financial statements. Due to changes in the circumstances surrounding the Investment
Corporation including acquisition or disposition of properties, the trend of real estatemarket, etc. in the future, actual operating revenue, operating profit, ordinary profit, profit
and cash distributions per unit may change. Furthermore, this estimation does notguarantee the amount of distributions.

- 10 -

Assumptions for Forecasts of Investment Performance for the 22nd Fiscal Period from June 1, 2022 toNovember 30, 2022 and the 23rd Fiscal Period from December 1, 2022 to May 31, 2023
Item
PeriodInvestment
portfolio

Assumptions
・ 22nd fiscal period (June 1, 2022 to November 30, 2022) (183 days)
・ 23rd fiscal period (December 1, 2022 to May 31, 2023) (182 days)
・ Our forecasts of investment performance take into account the following property
dispositions associated with the 46 properties that the Investment Corporation holds
as of today (the “Assets Currently Held”).
・ 22nd fiscal period (June 1, 2022 to November 30, 2022)
As A-FLAG KITA SHINSAIBASHI was transferred on June 30, 2022, and Luogo
Shiodome (the pro rata share of our trust beneficiary co-ownership interests (junkyōyū-mochibun) of 20%) is scheduled to be transferred on November 30, 2022, thetotal number of properties after these scheduled transfer dates is assumed to be 46
properties.
・ 23rd fiscal period (December 1, 2022 to May 31, 2023)
Luogo Shiodome (the pro rata share of our trust beneficiary co-ownership interests(jun kyōyū-mochibun) of 29%) is scheduled to be transferred on May 31, 2023, andthe total number of properties after said scheduled transfer date is assumed to be 46
properties.
・ Our forecasts, however, may change due to any changes to the composition of ourinvestment portfolio.

・ We have calculated our real estate leasing business revenues from the Assets
Currently Held taking into account the relevant lease agreements effective as oftoday, market trends, etc.
・ Operating revenue is based on our assumption that there will be no delinquencies or
non-payment of rents by tenants.
・ In the 22nd fiscal period (June 1, 2022 to November 30, 2022), ¥87 million of gainon the sale of A-FLAG KITA SHINSAIBASHI from its transfer and ¥882 millionof gain on the sale of Luogo Shiodome (the pro rata share of our trust beneficiary
Operating revenue
co-ownership interests (jun kyōyū-mochibun) of 20%) from its transfer are estimatedto be recorded. In the 23rd fiscal period (December 1, 2022 to May 31, 2023),¥1,290 million of gain on the sale of Luogo Shiodome (the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) of 29%) from its transfer is
expected to be recorded. This may change, however, depending on outcomes of thesales, transfer prices, transfer dates and other conditions.
・ In addition to the above, a certain amount of the expected lower leasing businessrevenue, etc. due to the impact of the COVID-19 pandemic has been factored into
the calculations.

- 11 -

Item

Assumptions

Operatingexpenses・ Expenses related to leasing business (other than depreciation), which are ourprincipal operating expenses, were calculated based on the historical information
and upon considering variable factors.
・ In general, property tax and city planning tax of properties acquired are settled at thetime of acquisition between the former owner (seller) and the purchaser based on
their respective periods of ownership in relation to the relevant tax year. However,any of these taxes allocated to the purchaser are not expensed at the time ofacquisition because they are treated as a part of the acquisition cost for accounting
purposes. For property tax and city planning tax, ¥1,422 million and ¥1,413 million
for the Assets Currently Held will be expensed in the fiscal period ending November
30, 2022 (22nd fiscal period) and in the fiscal period ending May 31, 2023 (23rdfiscal period), respectively.
・ Repair and maintenance expenses of buildings are estimated at the amount required
for each of the fiscal periods based on the medium- and long-term repair andmaintenance plans formed by the Asset Manager. However, the actual repair andmaintenance expenses for the fiscal periods may significantly differ from theestimates since (i) an unforeseeable event may cause serious damage to a building
requiring emergent repair expenditure, (ii) in general, amounts vary according to thefiscal period, and (iii) certain types of repair and maintenance expenses are notrequired in every fiscal period.
・ We calculate depreciation expenses (including incidental expenses) by the straightline method, assuming ¥1,376 million and ¥1,391 million for the 22nd fiscal period
ending November 30, 2022 and the 23rd fiscal period ending May 31, 2023,
respectively.

Non-operating
expenses・ We expect interest expense and other borrowing-related expenses of ¥945 million
for the fiscal period ending November 30, 2022 (22nd fiscal period) and ¥1,005
million for the fiscal period ending May 31, 2023 (23rd fiscal period).

・ As of today, the Investment Corporation has a balance of interest-bearing debt of¥260,350 million (borrowings of ¥233,650 million and investment corporation
bonds of ¥26,700 million).
・ We assume that there will be refinancing of all interest-bearing debt due by the endof the fiscal period ending November 30, 2022 (22nd fiscal period) and the fiscal
period ending May 31, 2023 (23rd fiscal period) (22nd fiscal period: long-term
Interest-bearing
borrowings of ¥12,000 million and investment corporation bonds of ¥1,000 million;
debt
23rd fiscal period: long-term borrowings of ¥14,500 million).
・ We assume the LTV ratios as of November 30, 2022 and May 31, 2023 are both tobe approximately 46%.
・ The LTV ratio is obtained by the following formula:
LTV = Balance of interest-bearing debt / Total assets × 100

Units

・ The number is based on our assumption of total of 812,564 units issued as of today.
We assume that there will be no changes in number of investment units before theend of the 23rd fiscal period (May 31, 2023).
・ The cash distributions per unit for the 22nd fiscal period ending November 30, 2022
and the 23rd fiscal period ending May 31, 2023 have been calculated in accordancewith the total projected number of investment units issued as of the end of each of
the fiscal periods which is 812,564 units.

- 12 -

Item

Assumptions

・ Cash distributions (cash distributions per unit) are calculated based on the cash
distribution policy stipulated in our Articles of Incorporation.
・ In order to distribute stable dividends over the long term, assumptions were madefor the calculation that ¥266 per unit and ¥118 per unit were retained as part of gainon sale of real estate properties in the fiscal period ending November 30, 2022 (22ndfiscal period) and the fiscal period ending May 31, 2023 (23rd fiscal period),
Cash distributions
respectively.
per unit
・ The cash distributions per unit may change due to various factors, including changes
to the composition of our investment portfolio, changes in rental revenues
accompanying changes in tenants, and unexpected maintenance and repairs.
・ Deferred losses on hedges, which arise from interest rate swaps and are counted as adeduction in net assets, are calculated assuming no fluctuation.
・ As stated above, deferred losses on hedges, which are counted as a deduction in net
assets, are calculated assuming no fluctuation. Accordingly, we do not anticipate
distributions in excess of earnings (allowance for temporary difference adjustments)
Cash distributions
for the 22nd fiscal period ending November 30, 2022 or the 23rd fiscal period
in excess ofending May 31, 2023.
earnings per unit
・ Among cash distributions in excess of earnings, we currently do not anticipate
distributions deemed as distributions on reduction of unitholders’ capital for tax
purposes.
・ We assume that there will be no amendments in legislation, taxation, accounting
standards, listing regulations or regulations of the Investment Trusts Association of
Other
Japan that affect the above forecasts.
・ We assume that there will be no material changes in general economic conditions orreal estate markets.

- 13 -

2. Financial Statements(1) Balance Sheet(Unit: Thousands of yen)
As of November 30, 2021
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Income taxes refund receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Land leasehold interests in trust
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Derivatives
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 14 -

As of May 31, 2022

15,986,135
4,071,575
911,525
388,238–
14,324
21,371,798

12,843,945
3,764,154
871,790599,919
13
3,772
18,083,596

87,070,366(17,086,807)
69,983,558
783,513(259,824)
523,689
1,464,287(501,805)
962,481
290,941(182,233)
108,707462,769,582
35,061
534,383,081

87,597,797(18,371,248)
69,226,549
793,559(279,961)
513,597
1,522,142(542,401)
979,741
335,509(199,934)
135,575
462,769,582
64,240533,689,287

9,055,086
423
9,055,510

9,055,086
4,197
9,059,283

1,278,079–
2,765
38,322
1,319,167
544,757,758

1,264,829
20,177–38,322
1,323,329
544,071,900

127,469
127,469
566,257,027

117,273
117,273562,272,770

(Unit: Thousands of yen)
As of November 30, 2021
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received in trust
Derivatives liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference
adjustments
Other deduction from unitholders’ capital
Total deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*3*2- 15 -

As of May 31, 2022

928,758
1,000,000
26,100,000
64,640981,085
31,233
199,558784,759
74,54830,164,583

1,087,755
1,000,000
26,500,000
8,047
988,033605
412,809634,802804
30,632,856

25,700,000
207,550,000
24,125,396
409–
257,375,805
287,540,389

25,700,000
207,150,000
24,021,568–
242
256,871,810
287,504,667

270,963,556

270,963,556(40,103)

*3

(866)

–
(40,103)
270,923,453*4(3,999,657)(4,000,523)
266,963,033

7,793,594

7,784,892

7,793,594
278,717,047

7,784,892
274,747,925

(409)
(409)
278,716,638
566,257,027

20,177
20,177274,768,103
562,272,770*2(2) Statement of Income(Unit: Thousands of yen)Previous fiscal period(From June 1, 2021
to November 30, 2021)
Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sale of real estate properties
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Reversal of distributions payable
Insurance claim income
Compensation income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuancecosts
Investment unit issuance expenses
Financing fees
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 16 -

Current fiscal period(From December 1, 2021
to May 31, 2022)*1, *3*1, *3*2

14,283,556
1,112,460
250,323
15,646,339*1, *3*1, *3

14,490,760
1,021,894–
15,512,654*1

5,551,549
1,135,604
15,28139,0543,300
143,153
6,887,943
8,758,396*1

5,558,011
1,187,489
16,01939,832
3,300
83,052
6,887,706
8,624,948

82
1,113
857
–
2,052

91
1,019
523
26,144
27,779616,195
60,629630,483
67,477

9,186

10,196

93,250198,829500
978,591
7,781,857
7,781,857
31,245(2,763)28,482
7,753,375
40,2197,793,594–
205,731
3,956
917,8457,734,882
7,734,882
605
2,765
3,370
7,731,512
53,3797,784,892

(3) Statement of Unitholders’ Equity
Previous fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Surplus

Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of
period248,370,846

Allowance for
Other deduction Total deduction
temporaryfrom unitholders’ from unitholders’difference
capitalcapitaladjustments(28,535)–(28,535)

Unitholders’capital, net

Unappropriatedretained earnings(undisposed loss)

Total surplus

248,342,311

7,278,928

7,278,928(7,238,708)(7,238,708)

7,753,375

7,753,375

Changes during period
Issuance of new
investment units

22,592,710

22,592,710

Dividends of surplus
Distributions in excessof earnings fromallowance fortemporary difference
adjustments(11,568)(11,568)(11,568)

ProfitNet changes in items
other than unitholders’equityTotal changes during
periodBalance at end of period

22,592,710(11,568)–(11,568)

22,581,141

514,666

514,666*1
270,963,556(40,103)–(40,103)

270,923,453

7,793,594

7,793,594

Unitholders’equityValuation and translation
adjustments(Unit: Thousands of yen)

Balance at beginning of
periodTotal valuation
Total unitholders’ Deferred gains or
and translation
equitylosses on hedges
adjustments

Total net assets

255,621,239

255,581,592(39,646)(39,646)

Changes during period

Issuance of new
investment units

22,592,710

22,592,710

Dividends of surplus(7,238,708)(7,238,708)

Distributions in excessof earnings fromallowance fortemporary difference
adjustments(11,568)(11,568)

7,753,375

7,753,375

ProfitNet changes in items
other than unitholders’equity39,23739,23739,237

Total changes during
period23,095,808

39,23739,237

23,135,045

Balance at end of period

278,717,047

(409)

(409)

278,716,638- 17 -

Current fiscal period (From December 1, 2021 to May 31, 2022)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Surplus

Deduction from unitholders’ capital
Unitholders’capitalBalance at beginning of
period270,963,556

Allowance for
Other deduction Total deduction
temporaryfrom unitholders’ from unitholders’difference
capitalcapitaladjustments(40,103)–(40,103)

Unitholders’capital, net

Unappropriatedretained earnings(undisposed loss)

Total surplus

270,923,453

7,793,594

7,793,594(7,700,977)(7,700,977)(39,237)(39,237)

7,731,512

7,731,512

Changes during period

Dividends of surplus
Reversal of allowancefor temporary
difference adjustments

39,23739,23739,237

ProfitPurchase of treasury
investment units
Cancellation oftreasury investment
units
Net changes in items
other than unitholders’equityTotal changes during
periodBalance at end of period(3,999,657)(3,999,657)(3,999,657)–

39,237(3,999,657)(3,960,420)(3,960,420)(8,702)(8,702)*1
270,963,556(866)(3,999,657)(4,000,523)

266,963,033

7,784,892

7,784,892(Unit: Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity

Total valuation
Treasury
Total unitholders’ Deferred gains or
and translation
investment units
equitylosses on hedges
adjustments

Balance at beginning of
period–278,717,047

(409)

(409)

Total net assets

278,716,638

Changes during period
Dividends of surplus(7,700,977)(7,700,977)––

7,731,512

7,731,512(3,999,657)(3,999,657)(3,999,657)

3,999,657––

Reversal of allowancefor temporary
difference adjustments
ProfitPurchase of treasury
investment units
Cancellation oftreasury investment
units
Net changes in items
other than unitholders’equityTotal changes during
periodBalance at end of period

20,587

20,587

20,587–(3,969,122)

20,587

20,587(3,948,534)–

274,747,925

20,177

20,177274,768,103- 18 -

(4) Statement of Cash Distributions
Previous fiscal period(From June 1, 2021
to November 30, 2021)

Current fiscal period(From December 1, 2021
to May 31, 2022)

AmountAmountI

Unappropriated retained
earnings¥7,793,594,694¥7,784,892,593

II

Amount incorporated into
unitholders’ capital¥39,237,355¥866,293

Of which, reversal of
allowance for temporary
difference adjustments¥39,237,355¥866,293¥7,700,977,440¥7,727,483,640[¥9,360][¥9,510]

Of which, distributions ofprofits¥7,700,977,440¥7,727,483,640[Of which, distributions ofprofits per unit][¥9,360][¥9,510]

IV Earnings carried forward¥53,379,899¥56,542,660

III Distributions[Cash distributions per unit]

Calculation method for
distributions

Based on the distribution policy
set forth in Article 35, Paragraph
1 of the Articles of Incorporationof the Investment Corporation,
distributions shall be limited tothe amount of net profit in excess
of an amount equivalent to ninety
hundredths (90/100) of
distributable profits, as stipulated
in Article 67-15, Paragraph 1 of
the Act on Special Measures
Concerning Taxation. In
consideration of this policy,
internal reserve of ¥53,379,899
was provided for stabilization of
future distributions in view of¥250,323,186 of gain on sale ofreal estate properties arising, andwe will pay distributions ofprofits of ¥7,700,977,440, whichis the entire amount of theunappropriated retained earnings
less the amount equivalent to theinternal reserve and the reversalof allowance for temporary
difference adjustments (refers to
stipulations of Article 2,
Paragraph 2, Item 30 of theRegulations on Accountings ofInvestment Corporations), for the
fiscal period under review.

- 19 -

Based on the distribution policy
set forth in Article 35, Paragraph
1 of the Articles of Incorporationof the Investment Corporation,
distributions shall be limited tothe amount of net profit in excess
of an amount equivalent to ninety
hundredths (90/100) of
distributable profits, as stipulated
in Article 67-15, Paragraph 1 of
the Act on Special Measures
Concerning Taxation. In
consideration of this policy, thedecision was made with respect topaying distributions of profit of¥7,727,483,640, which is theentire amount of theunappropriated retained earnings
less the amount equivalent to theinternal reserve and the reversalof allowance for temporary
difference adjustments (refers to
stipulations of Article 2,
Paragraph 2, Item 30 of theRegulations on Accountings ofInvestment Corporations).

(5) Statement of Cash Flows(Unit: Thousands of yen)Previous fiscal period(From June 1, 2021
to November 30, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Amortization of investment corporation bond issuance
costs
Interest income and interest on securities
Interest expenses
Investment unit issuance expenses
Financing fees
Decrease (increase) in operating accounts receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease in property, plant and equipment in trust due
to saleIncrease (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Refund of leasehold and guarantee deposits received intrust
Proceeds from leasehold and guarantee deposits
received in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation
bonds
Proceeds from issuance of investment units
Purchase of treasury investment units
Distributions paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1- 20 -

Current fiscal period(From December 1, 2021
to May 31, 2022)

7,781,857
1,374,955
5,229

7,734,882
1,367,676
1,097

9,186

10,196(82)
676,825
93,250198,829(310,112)(64,232)
203,964(91)
697,960–
205,73139,735
213,250(203,453)

11,540,850–(50,957)
37,22889,143
1,091
63,83821,650,868
82(647,967)(650)
21,002,333

73,131
2,889(149,957)
12,433(42,513)
9,962,969
91(697,361)(31,247)
9,234,452(51,376,826)–(645,349)(4,160)(1,190,565)(1,225,657)

2,679,605

1,100,346(49,887,787)(774,820)

3,898,245(3,900,000)
25,723,217(13,750,000)––
13,915,275(14,100,000)

3,879,871–

22,499,459–(7,254,890)(34,589)
31,061,312
2,175,858
17,881,851
20,057,710–(3,999,657)(7,699,901)(24,957)(11,909,242)(3,449,610)
20,057,710
16,608,099*1

(6) Notes on Assumption of Going Concern
Not applicable.
(7) Notes on Important Accounting Policies
1. Method ofdepreciation of noncurrent assets(1) Property, plant and equipment (including trust assets)
The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 70 years
Structures
2 to 66 years
Machinery and equipment
2 to 33 years
Tools, furniture and fixtures
2 to 15 years(2) Intangible assets
Internal use software is amortized by the straight-line method over the
expected useful life (5 years).
(3) Long-term prepaid expenses
The straight-line method is used.

2. Accounting methodfor deferred assets(1) Investment unit issuance expenses
The full amount is recorded as expenses when incurred.
(2) Investment corporation bond issuance costs
Amortized by the straight-line method over the period until maturity.

(1) Accounting for income
3. Accounting forincome and expenses
Details of major performance obligations and typical timing of satisfying
the performance obligations (timing when revenue is recognized) withregard to the Investment Corporation’s revenue from contracts withcustomers are as follows.
i) Sale of real estate properties
For sale of real estate properties, revenue is recorded at the time when thebuyer, a customer, obtains control of the real estate property, etc., byfulfilling the delivery obligation set forth in the agreement for the sale of
the real estate property.
ii) Utilities income
For utilities income, revenue is recorded according to supply of electricity,water, etc. to the tenant, a customer, based on the contract for lease of thereal estate property, etc. and any accompanying agreement. Of utilities
income, for such income for which the Investment Corporation isconsidered to be an agent, the net amount of the amount received as
charges for electricity, gas, etc. supplied by other parties less the amount
paid to the other parties is recognized as revenue.
(2)
Property-related taxes
For property tax, city planning tax, depreciable asset tax for real properties
held, the amount of tax levied corresponding to the calculation period isrecorded as expenses related to leasing business.
The settlement money for property tax that is paid to the disposing entity
for acquisition of real properties (so-called “amount equivalent to propertytax”) is not recorded as expenses related to leasing business but included in
the acquisition costs for the related properties. There is no amountequivalent to property tax included in acquisition cost for properties for thecurrent fiscal period.

- 21 -

4. Method of hedge
accounting(1) Method of hedge accounting
Deferred hedge accounting is applied. For interest rate swaps that satisfy
the requirements for special treatment, special treatment is applied.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swaps transactions
Hedged items: Long-term borrowings(3) Hedging policy
Based on the management policy of financial market risks, the Investment
Corporation makes interest rate swaps for the purpose to hedge risks set
forth in the Articles of Incorporation of the Investment Corporation.
(4) Method of assessing hedge effectiveness
The Investment Corporation assesses hedge effectiveness by comparing
the cumulative total changes in the cash flows of the hedged items withthose of the hedging instruments, and then verifying the ratio of thechanges in both amounts. However, hedge effectiveness is deemed tohave been ensured with respect to interest rate swaps that satisfy therequirements for special treatment.

5. Scope of cash (cash Cash and cash equivalents include cash on hand, cash in trust, demandand cash equivalents) deposits, deposits in trust, and highly liquid short-term investments that arein the statement ofreadily convertible, bear little risk in price fluctuations, and mature withincash flows
three months of the date of acquisition.
6. Other matters related (1) Accounting method for beneficial interests in trust with real estate, etc. as
to the preparation oftrust asset
financial statements
With regard to beneficial interests in trust with real estate, etc. in holding
as trust asset, all assets and liabilities as well as all revenue and expense
items associated with all trust assets are accounted for under the respective
account items of the balance sheet and statement of income.
Of the trust assets accounted for under the respective account items, thefollowing items with significance are separately indicated on the balance
sheet.
i) Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment intrust; tools, furniture and fixtures in trust; land in trust; construction inprogress in trust; and land leasehold interests in trustiii) Leasehold and guarantee deposits received in trust(2) Accounting method for consumption tax and local consumption tax
Consumption taxes unqualified for deduction for tax purposes for noncurrent assets, etc. are included in acquisition cost for each asset.
Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From June 1, 2021 to November 30, 2021)
1.

Reason for Reversal, Related Assets, etc. and Amount of Reversal

Related assets, etc.

Reason for reversal

Deferred gains or losses on hedges

Elimination of loss on valuationof interest rate swaps- 22 -(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments(39,237)

2.

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

Current fiscal period (From December 1, 2021 to May 31, 2022)
1.

2.

Reason for Reversal, Related Assets, etc. and Amount of Reversal

Related assets, etc.

Reason for reversal

Deferred gains or losses on hedges

Elimination of loss on valuationof interest rate swaps(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments(866)

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

(8) Notes to Financial Statements
Notes to Balance Sheet
1. Commitment Line Contracts
The Investment Corporation has the commitment line contracts with three of the banks with which it does
business.
As of November 30, 2021
Total amount specified in the commitmentline contracts¥21,000,000 thousand¥21,000,000 thousand¥– thousand¥– thousand¥21,000,000 thousand¥21,000,000 thousand

Loan balance
Net balance

As of May 31, 2022

*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts andInvestment Corporations
As of November 30, 2021
¥50,000 thousand- 23 -

As of May 31, 2022
¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From June 1, 2021 to November 30, 2021)
1.

Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
RelatedReason for
Initialbeginning provision reversal
end ofreversal
assets, etc.
provisionamountof period for period for period period
Recognition
Deferredof loss on
gains orvaluation of
40,10328,535
11,568–40,103–losses oninterest rate
hedgesswaps

2.

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

Current fiscal period (From December 1, 2021 to May 31, 2022)
1.

Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
RelatedReason for
Initialbeginning provision reversal
end ofreversal
assets, etc.
provisionamountof period for period for period period
Changes inDeferredfair value ofgains or–
40,103
40,103–39,237866
derivative
losses ontransactions
hedges2.

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

*4. Status of Cancellation of Treasury Investment Units
As of November 30, 2021
Total number of units canceled
Total amount of cancellation- 24 -

As of May 31, 2022

– units

10,190 units¥– thousand¥3,999,657 thousand

Notes to Statement of Income*1. Breakdown of Profit (Loss) from Real Estate Leasing Business
Previous fiscal period(From June 1, 2021
to November 30, 2021)(Unit: Thousands of yen)
Current fiscal period(From December 1, 2021
to May 31, 2022)

13,170,192

13,413,454

Common service fees

706,032

677,699

Parking lot fees

307,780

299,832

Other rent revenue

99,550

A. Real estate leasing businessrevenues
Leasing business revenue
Rent

B.

14,283,556

99,773

14,490,760

Other leasing business revenue

1,112,460

1,021,894

Total real estate leasing businessrevenues

15,396,016

15,512,654

Real estate leasing business
expenses
Expenses related to leasing
business
Management operation
expenses

1,307,867

1,269,345

Utilities expenses

873,305

918,297

Tax and public dues

1,374,652

1,273,744

Insurance

13,324

13,296

Repair and maintenanceexpenses

276,218

346,175

1,374,701

1,367,301

Loss on retirement of noncurrent assets

5,229

1,097

Other expenses related toleasing business

326,250

Depreciation

C.

5,551,549

368,7545,558,011

Total real estate leasing business
expenses

5,551,549

5,558,011

Profit (loss) from real estateleasing business (A – B)

9,844,466

9,954,643- 25 -

*2.

Breakdown of Gain (Loss) on Sale of Real Estate Properties
Previous fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Tokyu Plaza Akasaka (50% co-ownership interest)
11,800,000
Income from sale of real estate properties
11,540,850
Costs of sale of real estate properties
8,826
Other costs of sale
250,323
Gain on sale of real estate properties
Current fiscal period (From December 1, 2021 to May 31, 2022)
Not applicable.

*3.

Transactions with Major Unitholders
Previous fiscal period(From June 1, 2021
to November 30, 2021)(Unit: Thousands of yen)
Current fiscal period(From December 1, 2021
to May 31, 2022)

Operating transactions
Operating revenue

974,811 (Note 1)

917,241 (Note 2)(Note 1) Due to the Investment Corporation’s issuance of new investment units through public offeringthat was conducted on September 7, 2021, Tokyu Land Corporation no longer qualifies as a major
unitholder. Consequently, the transaction amount stated above is for the amount until the time
immediately preceding when that company ceased to qualify as a major unitholder.
(Note 2) Tokyu Land Corporation became a major unitholder on March 3, 2022, as a result of thecancellation of treasury investment units conducted by the Investment Corporation during the
fiscal period under review and the acquisition of the Investment Corporation’s investment units
through market transactions conducted by Tokyu Land Corporation. Consequently, the transaction
amount stated above is for the amount from a point in time when that company became a major
unitholder.
Notes to Statement of Unitholders’ Equity
Previous fiscal period(From June 1, 2021
to November 30, 2021)

Current fiscal period(From December 1, 2021
to May 31, 2022)*1. Total number of authorized investment units
and total number of investment units issued
Total number of authorized investment units
Total number of investment units issued

4,000,000 units

4,000,000 units

822,754 units

812,564 units

Notes to Statement of Cash Flows*1. Reconciliation between Cash and Cash Equivalents at End of Period and the Amount on the Balance
Sheet
Previous fiscal period(From June 1, 2021
to November 30, 2021)

Current fiscal period(From December 1, 2021
to May 31, 2022)

Cash and deposits¥15,986,135 thousand¥12,843,945 thousand

Cash and deposits in trust¥4,071,575 thousand¥3,764,154 thousand

Cash and cash equivalents¥20,057,710 thousand¥16,608,099 thousand- 26 -

Notes on Financial Instruments
1. Matters Regarding Financial Instruments(1) Policy for Financial Instruments
The Investment Corporation raises funds by borrowing, issuing investment corporation bonds, or issuinginvestment units for the purpose of acquiring real estate-related assets and repaying interest-bearing debt.
When raising funds, the Investment Corporation aims to sustain stable financing capability for a long time
at low cost by enhancing its capital adequacy and maintaining conservative interest-bearing debt, looking
for attributes such as extended borrowing periods for interest-bearing debt, fixed interest rates, anddiversified due dates to ensure financial stability and avoid the risk of interest-rate hikes.
We also invest temporary excess funds in deposits in general, taking safety and liquidity, etc. into accountand carefully considering the interest-rate environment and our cash management.
We may carry out derivatives transactions for the purpose of hedging the interest-rate risk of borrowings
and other risks, but do not engage in speculative transactions.
(2) Content and Risks of Financial Instruments and Risk Management System
As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit
risks such as the insolvency of the financial institutions in which the excess funds are deposited. However,
we deposit excess funds carefully by limiting the period of deposits to the short term, taking safety andliquidity, etc. into account and carefully considering the financial environment and our cash management.
Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate andrefinancing of existing borrowings. Leasehold and guarantee deposits received are deposits provided bytenants. Borrowings, investment corporation bonds, leasehold and guarantee deposits received are
exposed to liquidity risks at the time of repayment or redemption. However, these risks are managed
through management of liquidity in hand by preparing a monthly funding plan, efforts to reduce liquidity
risk on borrowings and investment corporation bonds by diversifying repayment periods, etc., and othermeans.
Floating-rate borrowings are also exposed to the risk of fluctuations in interest-rates. However, these risks
are managed through derivative transactions (interest rate swaps) as hedging instruments in certain
floating-rate borrowings.
(3) Supplemental Remarks on the Fair Value of Financial Instruments
As certain assumptions are made in calculating the fair value of financial instruments, if different
assumptions are used, these values could vary. Furthermore, the contract amounts related to derivativetransactions, etc. stated in “Derivative transactions” on page 28 should not be considered indicative of themarket risk associated with derivative transactions.
2. Matters Regarding Fair Values of Financial Instruments
Carrying amounts, fair values, and the differences between the two values as of November 30, 2021, are asshown below. Notes on “cash and deposits” and “cash and deposits in trust” are omitted, because they aresettled in cash and in a short time and therefore the fair value approximates the book value. A note on“leasehold and guarantee deposits received in trust” is omitted because it is immaterial.
(Unit: Thousands of yen)
Carrying amount
Fair value
Difference(1) Current portion of investment
corporation bonds

1,000,000

1,004,1254,125(2) Current portion of long-termborrowings

26,100,000

26,193,790

93,790(3) Investment corporation bonds

25,700,000

26,082,115

382,115(4) Long-term borrowings

207,550,000

209,313,703

1,763,703

Total liabilities

260,350,000

262,593,735

2,243,735

(409)

(409)

–

Derivative transactions

Carrying amounts, fair values, and the differences between the two values as of May 31, 2022, are as shown- 27 -

below. Notes on “cash and deposits” and “cash and deposits in trust” are omitted, because they are settled in
cash and in a short time and therefore the fair value approximates the book value. A note on “leasehold andguarantee deposits received in trust” is omitted because it is immaterial.
Carrying amount

Fair value(Unit: Thousands of yen)
Difference(1) Current portion of investment
corporation bonds

1,000,000

1,000,995

995(2) Current portion of long-termborrowings

26,500,000

26,585,545

85,545(3) Investment corporation bonds

25,700,000

25,800,959

100,959(4) Long-term borrowings

207,150,000

207,586,014

436,014

Total liabilities

260,350,000

260,973,515

623,515

20,177

20,177–

Derivative transactions(Note 1) Measurement Methods for Fair Values of Financial Instruments
Liabilities(1) Current portion of investment corporation bonds, (3) Investment corporation bonds
These fair values are determined by discounting the total of principal and interest at a rate taking into
account the remaining period and credit risk of the said investment corporation bonds.
(2) Current portion of long-term borrowings, (4) Long-term borrowings
These fair values are determined by discounting the total of principal and interest at the rate assumed
when a new loan is made corresponding to the remaining period. The book value is used as the fairvalue of those borrowings with floating interest rate, given that the fair value is almost the same as thebook value, as their interest rates are reviewed on a short-term interval to reflect market interest rates(however, for long-term borrowings with floating interest rate to which special treatment for interest
rate swaps is applied, the fair value is the value calculated by discounting the sum of principal andinterest, which are treated in combination with the said interest rate swap, at a reasonable rateestimated for a similar new loan).
Derivative transactions
Please refer to “Notes on Derivative Transactions” on pages 29 and 30.

- 28 -

(Note 2) Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (November 30, 2021)
Within1 year

1–2 years

2–3 years–

5,000,000(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Investment corporation
bonds

1,000,000

Long-term borrowings

26,100,000 32,250,000 29,500,000 26,500,000 24,500,000 94,800,000

Total

2,000,000

2,000,000 16,700,000

27,100,000 32,250,000 34,500,000 28,500,000 26,500,000 111,500,000

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (May 31, 2022)
Within1 year

1–2 years

2–3 years–

7,000,000(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Investment corporation
bonds

1,000,000

Long-term borrowings

26,500,000 35,250,000 24,500,000 27,500,000 28,500,000 91,400,000

Total

2,000,000

1,000,000 15,700,000

27,500,000 35,250,000 31,500,000 29,500,000 29,500,000 107,100,000

Notes on Derivative Transactions
1. Derivative Transaction to Which Hedge Accounting Is Not Applied(As of November 30, 2021)
Not applicable.
(As of May 31, 2022)
Not applicable.
2. Derivative Transaction to Which Hedge Accounting Is Applied(As of November 30, 2021)
The following table shows contract amount or principal amount, etc. set forth in the contract as of theaccount closing date by method of hedge accounting.
(Unit: Thousands of yen)Hedge
accounting

Type ofderivativetransactions

Deferred hedge
accounting

Interest rate
swaps
Receive floating
Pay fixed

Interest rate
Special treatment
swaps
for interest rate
Receive floating
swaps
Pay fixed

Major
hedgeditems

Amount of contract
Fair value

Calculation
method forfair value

Long-term
12,000,000 12,000,000
borrowings(409)

Based onprices, etc.
indicated bypartnerfinancial
institutions

Long-term
18,140,000 18,140,000
borrowings*–- 29 -

Portion due
after 1 year

(As of May 31, 2022)
The following table shows contract amount or principal amount, etc. set forth in the contract as of theaccount closing date by method of hedge accounting.
(Unit: Thousands of yen)Hedge
accounting

Type ofderivativetransactions

Deferred hedge
accounting

Interest rate
swaps
Receive floating
Pay fixed

Major
hedgeditems

Amount of contract
Portion due
after 1 year

Long-term
12,000,000 12,000,000
borrowings

Fair value

Calculation
method forfair value

20,177

Based onprices, etc.
indicated bypartnerfinancial
institutions

Interest rate
Special treatment
Long-term
swaps
for interest rate
18,140,000 13,140,000*–
Receive floating borrowings
swaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral
part of long-term borrowings, a hedged item. Thus, their fair values are included in the fair value of
long-term borrowings. (Please refer to the preceding “Notes on Financial Instruments, 2. Matters
Regarding Fair Values of Financial Instruments, (Note 1) Liabilities (4)” on page 28.)
Notes on Tax Effect Accounting
1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of November 30, 2021

As of May 31, 2022

Deferred tax assets
Non-deductible amount for tax purposesof enterprise tax payable¥2,765 thousand¥– thousand¥141 thousand¥– thousand

Subtotal of deferred tax assets¥2,906 thousand¥– thousand

Valuation allowance¥(141) thousand¥– thousand

Total deferred tax assets¥2,765 thousand¥– thousand¥2,765 thousand¥– thousand

Deferred gains or losses on hedges

Net deferred tax assets

2. Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax
Rate after Application of Tax Effect Accounting
As of November 30, 2021
Effective statutory tax rate

As of May 31, 2022

34.59%

31.46%(34.23)%(31.43)%

0.01%

0.01%

0.37%

0.04%

Adjustments
Distributions paid included indeductibles
Other
Effective income tax rate after applicationof tax effect accounting- 30 -

Notes on Transactions with Related Parties
1. Parent Company and Major Corporate Unitholders
Previous fiscal period (From June 1, 2021 to November 30, 2021)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Transaction

Receipt ofleasehold andguarantee
deposits
21-1,
Major
Dogenzaka 1Tokyu Land
unit
chome,
Corporation-holder
Shibuya-ku,
Tokyo

57,551

Real estatebusiness

10.52%None

Major
Refund ofunitholder, leasehold andand rent
guarantee
anddeposits
manage- received
ment ofproperties
Rentalrevenues, etc.

Account
title

Balance at
end ofperiod(Thousandsof yen)11,581 Leasehold
andguarantee
deposits
received in
10,442 trust

2,461,043

Operatingaccounts
974,811 receivable

84,988Advances
received

60,619Transaction
amount(Thousandsof yen)(Note 1)Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period
includes consumption taxes.

(Note 2)The transaction terms are based on current market practices.

(Note 3)Due to the Investment Corporation’s issuance of new investment units through public offering that was conducted on
September 7, 2021, Tokyu Land Corporation no longer qualifies as a related party. Consequently, the percentage ofvoting rights owning (owned), transaction amount and the ending balance stated above, are for the percentage andamount.

Current fiscal period (From December 1, 2021 to May 31, 2022)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Transaction

Receipt ofleasehold andguarantee
deposits
21-1,
Major
Dogenzaka 1Tokyu Land
unit
chome,
Corporation-holder
Shibuya-ku,
Tokyo

57,551

Real estatebusiness

10.98%None

Major
Refund ofunitholder, leasehold andand rent
guarantee
anddeposits
manage- received
ment ofproperties
Rentalrevenues, etc.

Account
title

Balance at
end ofperiod(Thousandsof yen)375 Leasehold
andguarantee
deposits
received in
10,076 trust

2,339,896

Operatingaccounts
917,241 receivable

120,595

Advances
received

239,442

Transaction
amount(Thousandsof yen)(Note 1)Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period
includes consumption taxes.

(Note 2)The transaction terms are based on current market practices.

(Note 3)Tokyu Land Corporation became a major unitholder on March 3, 2022, as a result of the cancellation of treasury
investment units conducted by the Investment Corporation during the fiscal period under review and the acquisitionof the Investment Corporation’s investment units through market transactions conducted by Tokyu Land Corporation.
Consequently, the transaction amount stated above is for the amount from a point in time when that company becamea major unitholder.

2. Associates, etc.
Previous fiscal period (From June 1, 2021 to November 30, 2021)
Not applicable.
- 31 -

Current fiscal period (From December 1, 2021 to May 31, 2022)
Not applicable.
3. Sister companies, etc.
Previous fiscal period (From June 1, 2021 to November 30, 2021)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Transaction

Receipt ofleasehold andguarantee
deposits
Tokyu
Land SC
Subsidiary
Manageof majormentunitholder
Corporation

16-3,
Dogenzaka
1-chome,
Shibuya-ku,
Tokyo

100

Real estate
managementbusiness–

None

Rent andmanagement ofproperties

Refund ofleasehold andguarantee
deposits
received

Rentalrevenues, etc.

21-1,
Subsidiary TLC REIT Dogenzaka
of major Manage1-chome,unitholder ment Inc. Shibuya-ku,
Tokyo(Note 1)
(Note 2)
(Note 3)200

Investment
managementbusiness

–

None

Asset
Manager

Payment of
asset
management
fee

Account
title

Balance at
end ofperiod(Thousandsof yen)4,597 Leasehold
andguarantee
deposits
received in
36,633 trust

6,162,971

Operatingaccounts
receivable

290,903

Advances
received

8,234

Other
567,802 accrued
expenses

262,394

Transaction
amount(Thousandsof yen)2,051,470

Of the amounts above, the transaction amount does not include consumption taxes, and the ending balance includes
consumption taxes.
The transaction terms are based on current market practices.
Tokyu Land Corporation no longer qualifies as a related party due to the Investment Corporation’s issuance of new
investment units through public offering that was conducted on September 7, 2021. In conjunction with this, Tokyu
Land SC Management Corporation and TLC REIT Management Inc. are no longer related parties. Consequently, thepercentage of voting rights owning (owned), transaction amount and the ending balance stated above, are for thepercentage and amount as of the time immediately preceding when each company ceased to qualify as a related party.

- 32 -

Current fiscal period (From December 1, 2021 to May 31, 2022)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Transaction

Receipt ofleasehold andguarantee
deposits
Tokyu
Land SC
Subsidiary
Manageof majormentunitholder
Corporation

16-3,
Dogenzaka
1-chome,
Shibuya-ku,
Tokyo

100

Real estate
managementbusiness–

None

Rent andmanagement ofproperties

Refund ofleasehold andguarantee
deposits
received

Rentalrevenues, etc.

21-1,
Subsidiary TLC REIT Dogenzaka
of major Manage1-chome,unitholder ment Inc. Shibuya-ku,
Tokyo(Note 1)
(Note 2)
(Note 3)200

Investment
managementbusiness

–

None

Asset
Manager

Payment of
asset
management
fee

Account
title

Balance at
end ofperiod(Thousandsof yen)18,861 Leasehold
andguarantee
deposits
received in
137,307 trust

6,638,907

Operatingaccounts
receivable

240,859

Advances
received

9,242

Other
593,744 accrued
expenses529,768

Transaction
amount(Thousandsof yen)2,260,142

Of the amounts above, the transaction amount does not include consumption taxes, and the ending balance includes
consumption taxes.
The transaction terms are based on current market practices.
Tokyu Land Corporation became a major unitholder on March 3, 2022, as a result of the cancellation of treasury
investment units conducted by the Investment Corporation during the fiscal period under review and the acquisitionof the Investment Corporation’s investment units through market transactions conducted by Tokyu Land Corporation.
In conjunction with this, Tokyu Land SC Management Corporation and TLC REIT Management Inc. have fallen
under the category of related parties from the same date, the transaction amount stated above is for the amount from apoint in time when they became related parties.

- 33 -

Notes on Investment and Rental Properties
The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions
for rental revenue. The carrying amounts on the balance sheet, changes during the fiscal period, and fairvalues of investment and rental properties are as follows.
(Unit: Thousands of yen)
Current fiscal period
Previous fiscal period(From December 1, 2021
(From June 1, 2021
to May 31, 2022)
to November 30, 2021)

Use
Carrying amount on the balance sheet
Urban Retail
Properties

Balance at beginning of period

198,195,674

186,299,634

Changes during period(11,896,039)(145,585)

Balance at end of period

186,299,634

186,154,048

221,314,000

221,605,000

Balance at beginning of period

204,632,303

255,093,632

Changes during period

50,461,329(351,731)

Balance at end of period

255,093,632

254,741,901

298,380,000

302,880,000

102,196,027

102,044,900

Changes during period(151,126)(195,954)

Balance at end of period

102,044,900

101,848,946

123,690,000

125,360,000

Balance at beginning of period

505,024,005

543,438,167

Changes during period

38,414,162(693,271)

Balance at end of period

543,438,167

542,744,896

643,384,000

649,845,000

Fair value at end of period
Carrying amount on the balance sheet
Tokyo Office
Properties

Fair value at end of period
Carrying amount on the balance sheet
Activia
Account
Properties

Balance at beginning of period

Fair value at end of period
Carrying amount on the balance sheet
Total

Fair value at end of period(Note 1) The carrying amount on the balance sheet is the acquisition cost less accumulated depreciation.
(Note 2) The main reason for the decrease in the current fiscal period is the provision of depreciation worth¥1,367,301 thousand.
(Note 3) The fair value at end of period is the appraisal value provided by an outside real estate appraiser. In
addition, figures for A-FLAG KITA SHINSAIBASHI and Luogo Shiodome are based on thetransfer prices (¥5,100,000 thousand) as indicated in the sales agreement concluded on April 27,
2022, and the transfer price (¥9,110,000 thousand) as indicated in the sales agreement concluded on
May 27, 2022, respectively.
The profit/loss concerning investment and rental properties for the current fiscal period is indicated under“Notes to Statement of Income.”- 34 -

Notes on Revenue Recognition
1. Information on disaggregation of revenue from contracts with customers
Previous fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Revenue from contracts withcustomers *1
Sale of real estate properties

Revenues from external customers

11,800,000

Utilities income

250,323

879,402879,402–

14,516,614

12,679,402

15,646,339

OthersTotal*2*1 Leasing business revenue, etc. that is subject to ASBJ Statement No. 13 “Accounting Standard for Lease
Transactions” and transfer of real estate properties, etc. that is subject to Japanese Institute of Certified
Public Accountants Accounting Practice Committee Report No. 15 “Practical Guidelines on Accounting
by Transferors for Derecognition of Real Estate Securitized by means of Special Purpose Companies” arenot subject to the Accounting Standard for Revenue Recognition, and therefore are not included in theabove amount. Major revenue from contracts with customers is income from sale of real estate properties
and utilities income.
*2 Since income from sale of real estate properties is recorded as gain (loss) on sale of real estate properties
in the statement of income, the amount of income from sale of real estate properties less costs of sale ofreal estate properties and other costs of sale is shown.
Current fiscal period (From December 1, 2021 to May 31, 2022)(Unit: Thousands of yen)
Revenue from contracts withcustomers *Utilities income

820,609820,609–

14,692,045

820,60915,512,654

OthersTotal*

Revenues from external customers

Leasing business revenue, etc. that is subject to ASBJ Statement No. 13 “Accounting Standard for Lease
Transactions” and transfer of real estate properties, etc. that is subject to Japanese Institute of Certified
Public Accountants Accounting Practice Committee Report No. 15 “Practical Guidelines on Accounting
by Transferors for Derecognition of Real Estate Securitized by means of Special Purpose Companies” arenot subject to the Accounting Standard for Revenue Recognition, and therefore are not included in theabove amount. Major revenue from contracts with customers is income from sale of real estate properties
and utilities income.

2. Information for understanding the amount of revenue of the current fiscal period and the next fiscal
period and beyond
Previous fiscal period (From June 1, 2021 to November 30, 2021)
Not applicable.

- 35 -

Current fiscal period (From December 1, 2021 to May 31, 2022)
Transaction price allocated to the remaining performance obligations
As of May 31, 2022, the transaction price allocated to the remaining performance obligations
associated with the sale of real estate, etc. was ¥5,100,000 thousand pertaining to real estate, etc. forwhich a sales agreement was concluded on April 27, 2022, and ¥9,110,000 thousand pertaining to realestate, etc. for which a sales agreement was concluded on May 27, 2022. The Investment Corporation
expects to recognize revenue of ¥5,100,000 thousand out of the remaining performance obligations as
the transfer of the real estate, etc. was completed on June 30, 2022. Furthermore, the Investment
Corporation expects to recognize revenue of ¥1,822,000 thousand, ¥2,642,000 thousand, and¥4,646,000 thousand due to the transfer of real estate that is planned to be carried out on November
30, 2022, May 31, 2023, and June 1, 2023, respectively.

- 36 -

Per Unit Information
Previous fiscal period(From June 1, 2021
to November 30, 2021)
Net assets per unit
Basic earnings per unit

Current fiscal period(From December 1, 2021
to May 31, 2022)¥338,760¥338,149¥9,754¥9,453(Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number ofinvestment units for the period (previous fiscal period 794,871 units; current fiscal period 817,847
units). Diluted earnings per unit is not stated, as there is no potential investment unit.
(Note 2) The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From June 1, 2021
to November 30, 2021)

Current fiscal period(From December 1, 2021
to May 31, 2022)

7,753,375

7,731,512––

Profit attributable to common investment units(Thousands of yen)

7,753,375

7,731,512

Average number of investment units for theperiod (Units)794,871

817,847

Profit (Thousands of yen)Amount not attributable to common
unitholders (Thousands of yen)

Significant Subsequent Events
Not applicable.
Omission of Disclosure
As the need for disclosing notes on lease transactions, securities, retirement benefits, equity in earnings ofaffiliates, asset retirement obligations, and segment information in this financial report is not considered to be
substantial, the disclosure of these items is omitted.

- 37 -

(9) Changes in Total Number of Investment Units Issued and Outstanding
Changes in total investments and the number of investment units issued up to the current fiscal period are as
follows:

Date

Summary

Total investments, net(Thousands of yen)
ChangeBalance

Total number ofinvestment units
issued(Units)ChangeRemarks

Balance

September 7, 2011

Establishment
through private
placement

200,000

200,000400

400 (Note 1)

June 12, 2012

Capital increase
through public
offering

90,834,705

91,034,705

204,100

204,500 (Note 2)

July 10, 2012

Capital increase
through thirdparty allotment

339,128

91,373,833

762

205,262 (Note 3)

December 16,
2013

Capital increase
through public
offering

32,636,569 124,010,403

43,100248,362 (Note 4)

January 15, 2014

Capital increase
through thirdparty allotment

2,044,518 126,054,921

2,700

251,062 (Note 5)

December 17,
2014

Capital increase
through public
offering

22,800,626 148,855,547

24,050275,112 (Note 6)

January 8, 2015

Capital increase
through thirdparty allotment

1,915,063 150,770,610

2,020

277,132 (Note 7)

October 1, 2015

Investment unit
split

– 150,770,610

277,132554,264 (Note 8)

December 15,
2015

Capital increase
through public
offering

19,152,091 169,922,702

41,870596,134 (Note 9)

January 6, 2016

Capital increase
through thirdparty allotment

1,610,111 171,532,813

3,520

599,654 (Note 10)

December 1, 2016

Capital increase
through public
offering

28,583,994 200,116,808

61,040660,694 (Note 11)

December 15,
2016

Capital increase
through thirdparty allotment

2,116,639 202,233,447

4,520

665,214 (Note 12)

December 13,
2017

Capital increase
through public
offering

13,793,296 216,026,743

31,090696,304 (Note 13)

December 26,
2017

Capital increase
through thirdparty allotment

1,064,776 217,091,520

2,400

698,704 (Note 14)

December 19,
2018

Capital increase
through public
offering

29,036,462 246,127,982

67,320766,024 (Note 15)

January 7, 2019

Capital increase
through thirdparty allotment

2,242,864 248,370,846

5,200

771,224 (Note 16)- 38 -

Date

Summary

Total investments, net(Thousands of yen)
ChangeBalance

Total number ofinvestment units
issued(Units)ChangeRemarks

Balance

September 7, 2021

Capital increase
through public
offering

21,496,615 269,867,461

49,030820,254 (Note 17)

September 28,
2021

Capital increase
through thirdparty allotment

1,096,095 270,963,556

2,500

822,754 (Note 18)

May 13, 2022

Cancellation(3,999,657) 266,963,899(10,190)

812,564 (Note 19)(Note 1) The Investment Corporation was established with an offering price per unit of ¥500,000.
(Note 2) New investment units were issued by public offering with an offering price per unit of ¥460,000(paid-in amount of ¥445,050 per unit) in order to raise funds for the acquisition of new
properties, etc., and then investment operations were commenced.
(Note 3) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥445,050 per unit.
(Note 4) New investment units were issued by public offering with an offering price per unit of ¥782,925(paid-in amount of ¥757,229 per unit) in order to raise funds for the acquisition of new
properties, etc.
(Note 5) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥757,229 per unit.
(Note 6) New investment units were issued by public offering with an offering price per unit of ¥979,020(paid-in amount of ¥948,051 per unit) in order to raise funds for the acquisition of new
properties.
(Note 7) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥948,051 per unit.
(Note 8) A two-for-one split of the investment units has been implemented, with September 30, 2015 as
the record date and October 1, 2015 as the effective date.
(Note 9) New investment units were issued by public offering with an offering price per unit of ¥472,360(paid-in amount of ¥457,418 per unit) in order to raise funds for the acquisition of new
properties, etc.
(Note 10) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥457,418 per unit.
(Note 11) New investment units were issued by public offering with an offering price per unit of ¥483,326(paid-in amount of ¥468,283 per unit) in order to raise funds for the acquisition of new
properties.
(Note 12) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥468,283 per unit.
(Note 13) New investment units were issued by public offering with an offering price per unit of ¥458,150(paid-in amount of ¥443,657 per unit) in order to raise funds for the acquisition of new
properties.
(Note 14) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥443,657 per unit.
(Note 15) New investment units were issued by public offering with an offering price per unit of ¥445,410(paid-in amount of ¥431,320 per unit) in order to raise funds for the acquisition of new
properties.
(Note 16) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥431,320 per unit.

- 39 -

(Note 17) New investment units were issued by public offering with an offering price per unit of ¥452,760(paid-in amount of ¥438,438 per unit) in order to raise funds for the acquisition of new
properties.
(Note 18) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥438,438 per unit.
(Note 19) From February 18, 2022, to March 15, 2022, the Investment Corporation acquired its treasury
investment units through market purchases on the Tokyo Stock Exchange based on adiscretionary trading agreement with a securities company. All of the acquired treasury
investment units (10,190 units) were canceled on May 13, 2022, in accordance with a resolution
passed at a meeting of the Investment Corporation’s Board of Directors held on April 27, 2022.
(Note 20) The amount of unitholders’ capital less deduction from unitholders’ capital. Furthermore, theabove does not take into account the changes in unitholders’ capital arising from theimplementation of distributions in excess of net earnings from allowance for temporary
difference adjustments.

- 40 -

3. Reference Information(1) Composition of Invested Assets

Type ofassetsPrevious fiscal period

Current fiscal period(As of November 30, 2021)(As of May 31, 2022)

Total amount
held(Millions ofyen)(Note 1)

Percentage tototal assets

Total amount
held(Millions ofyen)(Note 1)

Percentage tototal assets

Urban Retail Properties

–

–

–

–

Tokyo Office Properties

–

–

–

–

Activia Account Properties

–

–

–

–

The five central wards ofTokyo (Note 3)

–

–

–

–

Wards of Tokyo other than
the five central wards

–

–

–

–

Three major metropolitan
areas (Note 4)

–

–

–

–

Other locations

–

–

–

–

Subtotal

–

–

–

–

Urban Retail Properties

186,29932.9

186,154

33.1

Tokyo Office Properties

255,09345.0

254,74145.3

Activia Account Properties

102,04418.0

101,848

18.1

The five central wards ofTokyo (Note 3)

346,305

61.2

346,071

61.5

Wards of Tokyo other than
the five central wards

49,095

8.7

48,993

8.7

Three major metropolitan
areas (Note 4)

137,05424.2

136,726

24.3

Other locations

10,982

1.9

10,953

1.9

Subtotal

543,43896.0

542,744

96.5

Total real estate assets

543,43896.0

542,744

96.5

Deposits and other assets

22,8184.0

19,527

3.5

Total assets (Note 5)566,257

100.0

562,272

100.0

Category(%)(Note 2)(%)
(Note 2)

By property type

By locationRealestateBy property type

By locationRealestate intrust- 41 -

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Total liabilities (Notes 5, 6)

287,54050.8

287,504

51.1

Total net assets (Note 5)

278,71649.2

274,768

48.9(Note 1) The total amount held is based on the carrying amounts on the balance sheet as of the end ofeach fiscal period (for real estate and real estate in trust, book value less depreciation expenses),in accordance with the asset valuation method set forth in the Articles of Incorporation of theInvestment Corporation.
(Note 2) Figures are rounded to the nearest tenth.
(Note 3) “The five central wards of Tokyo” refers to Chiyoda ward (Chiyoda-ku), Chuo ward (Chuo-ku),
Minato ward (Minato-ku), Shinjuku ward (Shinjuku-ku) and Shibuya ward (Shibuya-ku) inTokyo.
(Note 4) “Three major metropolitan areas” refers to the Tokyo area (Tokyo, Kanagawa Prefecture,
Saitama Prefecture and Chiba Prefecture), the Chukyo area (Aichi Prefecture) and the Kinki
area (Osaka Prefecture, Kyoto Prefecture and Hyogo Prefecture); the same shall apply
hereinafter.
(Note 5) Total assets, total liabilities and total net assets represent the amounts reported in the balance
sheet as of the end of each fiscal period.
(Note 6) Total liabilities include the obligation to refund leasehold and guarantee deposits.
(2) Investment Assetsi) Major investment securities
Not applicable.
ii) Investment properties
Properties in trust held by the Investment Corporation are included in the below section “iii) Other
investment assets.”- 42 -

iii) Other investment assets(A) Overview of real estate and beneficial interests in real estate trust
The following table shows property name, acquisition price, book value at the end of the fiscal period,
assessed value at the end of the fiscal period, return price and investment ratio related to the assets
held by the Investment Corporation as of the end of the 21st fiscal period. Figures shown in the table
are as of May 31, 2022 unless otherwise provided.
a. Overview of assets held (1)(As of May 31, 2022)

Urban Retail Properties

Category

Return price (Note 4)
Property
number(Note 1)

Property name

Direct capitalization
DCF method
methodBook value Assessed
Acquisition
Investment
at end ofvalue at Price based
price
ratio
on
directDirectPrice
based
Terminal
periodend ofDiscount
capitaliza- capitaliza- on DCF
capitalizaperiod
rate
tion
tion rate
methodtion rate
method(Millionsof yen)(Note 2)

(Millionsof yen)(Note 3)

(Millionsof yen)(Note 4)

(Millionsof yen)(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)UR-1

Tokyu Plaza Omotesando
Harajuku (Note 6)

45,00044,487

62,10063,1502.7

60,975

2.4

2.8

8.2

UR-3

Q plaza EBISU (Note 7)

8,430

8,134

11,70011,9003.2

11,6003.4/3.3

3.4

1.5

UR-5

Kyoto Karasuma Parking
Building

8,860

8,635

10,30010,300

4.6

10,300

4.6

4.8

1.6

UR-7

Kobe Kyu Kyoryuchi
25Bankan

21,33019,98326,80027,4003.8

26,100

3.6

4.0

3.9

UR-8

A-FLAG SAPPORO

4,410

4,673

7,470

7,460

5.4

7,480

5.2

5.6

0.8

UR-9

A-FLAG SHIBUYA

6,370

6,419

7,890

7,950

3.9

7,870

3.7

4.1

1.2

UR-10 Q plaza SHINSAIBASHI

13,35013,36014,40014,3003.6

14,400

3.4

3.8

2.4

UR-11 A-FLAG KOTTO DORI

4,370

4,380

4,850

4,980

3.2

4,800

3.0

3.4

0.8

A-FLAG BIJUTSUKAN
UR-12
DORI

4,700

4,695

4,890

4,980

3.5

4,790

3.3

3.7

0.9

UR-13

A-FLAG DAIKANYAMA
WEST

2,280

2,434

2,300

2,320

3.9

2,280

3.7

4.1

0.4

A-FLAG KITA
UR-14
SHINSAIBASHI

4,725

4,831

4,670

4,730

3.9

4,600

3.6

4.0

0.9

DECKS Tokyo Beach
UR-15(Note 6)

12,74012,922

12,005

12,642

4.0

11,711

3.8

4.2

2.3

Tokyu Plaza Ginza (Land)
UR-16(Notes 6, 8)

37,50037,89539,00038,7002.6

39,000

2.5

–

6.8

13,20013,30012,80012,9603.0

12,540

2.7

3.1

2.4

187,265

186,154

221,175

223,772–

218,446

–

–

34.2

UR-17

Q plaza HARAJUKU(Note 6)
Subtotal- 43 -

Tokyo Office Properties

Category

Return price (Note 4)
Property
number(Note 1)

Direct capitalization
methodProperty name(Millionsof yen)(Note 2)

(Millionsof yen)(Note 3)

(Millionsof yen)(Note 4)

(Millionsof yen)(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)

TO-1

TLC Ebisu Building

7,400

7,163

12,20012,700

3.5

12,000

3.6

3.7

1.4

TO-2

A-PLACE Ebisu Minami

9,640

9,562

16,30015,7003.4

16,500

3.5

3.6

1.8

TO-3

A-PLACE Yoyogi

4,070

3,829

5,060

5,120

3.7

4,990

3.5

3.9

0.7

TO-4

A-PLACE Aoyama

8,790

8,493

11,00010,9003.8

11,000

3.6

4.0

1.6

TO-5

Luogo Shiodome

4,540

4,421

6,400

6,500

3.4

6,350

3.2

3.6

0.8

TO-6

TAMACHI SQUARE(Land)

2,338

2,362

2,940

3,070

3.3

2,880

3.7

3.5

0.4

TO-7

A-PLACE Ikebukuro

3,990

3,641

5,830

5,880

3.7

5,770

3.5

3.8

0.7

TO-8

A-PLACE Shinbashi

5,650

5,734

7,420

7,470

3.5

7,370

3.2

3.5

1.0

TO-9

A-PLACE Gotanda

5,730

5,350

7,790

7,910

3.6

7,670

3.4

3.8

1.0

TO-10 A-PLACE Shinagawa

3,800

3,762

6,640

6,740

3.2

6,540

3.0

3.3

0.7

TO-11 OSAKI WIZTOWER

10,69010,37514,80014,9003.2

14,700

2.9

3.3

2.0

Shiodome Building(Note 6)

71,60070,27076,65080,8503.3

74,900

3.1

3.5

13.1

TO-13 A-PLACE Ebisu Higashi

7,072

6,969

7,790

7,910

3.5

7,670

3.3

3.7

1.3

4,810

4,896

5,860

5,840

3.4

5,870

3.1

3.5

0.9

7,280

7,593

7,870

7,870

3.6

7,860

3.3

3.7

1.3

18,80018,73521,70022,0003.8

21,300

3.6

4.0

3.4

30,70030,974

31,40032,1303.4

30,702

3.2

3.6

5.6

TO-12

A-PLACE Shibuya
KonnohA-PLACE Gotanda
TO-15
EkimaeA-PLACE Shinagawa
TO-16
HigashiEbisu Prime Square (Note
TO-18
6)
TO-14

TO-19 A-PLACE Tamachi East

6,800

6,847

7,230

7,380

3.3

7,070

3.1

3.5

1.2

TO-20 Meguro Tokyu Building

16,30016,37816,80016,8003.1

16,800

2.8

3.1

3.0

TO-21 Q plaza Shinjuku-3chome

18,40018,51819,20019,5003.5

18,900

3.3

3.7

3.4

A-PLACE Shibuya
TO-22
Nampeidai

8,800

8,858

9,290

9,350

3.2

9,220

2.9

3.3

1.6

Subtotal

Activia Account Properties

DCF method
Book value Assessed
Acquisition
Investment
at end ofvalue at Price based
price
ratio
Direct Price based
Terminal
on direct
periodend ofDiscount
capitalizaon
DCF
capitalizacapitalizaperiod
ratetion rate
methodtion ratetion
method257,200

254,741

300,170

306,520–

296,062

–

–

46.9

AA-1

Amagasaki Q’s MALL
(Land)

12,00012,113

14,20014,4004.2

14,000

3.9

4.4

2.2

AA-2

icot Nakamozu (Note 9)

8,500

8,101

10,60010,9004.8

10,500

4.8
/4.9

5.0

1.6

AA-4

icot Mizonokuchi

2,710

2,579

3,250

3,320

5.4

3,170

5.2

5.8

0.5

AA-5

icot Tama Center

2,840

2,528

3,970

3,980

4.9

3,960

4.5

5.1

0.5

AA-6

A-PLACE Kanayama

6,980

6,077

8,760

8,840

4.9

8,680

4.7

5.1

1.3

AA-7

Osaka Nakanoshima
Building

11,10011,00018,10018,3003.6

17,900

3.4

3.7

2.0

AA-8

icot Omori

5,790

5,654

7,050

7,130

4.2

6,960

4.0

4.4

1.1

AA-9

Market Square Sagamihara

4,820

4,544

5,010

5,030

5.3

4,990

5.1

5.5

0.9

AA-10 Umeda Gate Tower

19,00018,986

21,60021,9003.5

21,400

3.3

3.7

3.5

AA-11 A-PLACE Bashamichi

3,930

4,010

5,100

5,210

4.8

4,980

4.5

5.0

0.7

AA-12 Commercial Mall Hakata

6,100

6,279

5,720

5,720

4.8

5,720

4.5

4.9

1.1

AA-13 EDGE Shinsaibashi

19,80019,971

22,00022,3003.6

21,600

3.4

3.8

3.6

Subtotal

103,570

101,848

125,360

127,030–

123,860

–

–

18.9

Total

548,035

542,744646,705

657,322–638,368

–

–

100.0

(Note 1)

(Note 2)

(Note 3)(Note 4)

A property number is assigned to each of assets held by the Investment Corporation, which are divided into the three
categories: UR (meaning Urban Retail Properties), TO (meaning Tokyo Office Properties) and AA (meaning Activia
Account Properties).
Acquisition price represents trading value of beneficial interests in trust stipulated in each beneficiary interest in trust
sales agreement in relation to the assets held (excluding consumption tax and local consumption tax, and expenses
such as trading commissions, rounding down to the nearest million yen).
Book value at end of period represents book value for each property less depreciation expenses as of May 31, 2022,
rounding down to the nearest million yen.
The appraisal of properties is commissioned to Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd.,- 44 -

(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)The Tanizawa Sōgō Appraisal Co., Ltd., Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K. Assessedvalue at end of period and return price show value described in each real estate appraisal report with the date of value
estimate of May 31, 2022.
Investment ratio is calculated by dividing the acquisition price for each property by the total acquisition price(excluding consumption tax and other acquisition-related expenses). Figures are rounded to the nearest tenth.
As for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU,
Shiodome Building, and Ebisu Prime Square, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 49%, 30%, 60%, 35% and 51%, respectively).
The discount rates of Q plaza EBISU represent 3.4% in the first year and 3.3% in and after the second year.
The price based on direct capitalization method stated for Tokyu Plaza Ginza (Land) has been calculated by means of
the fixed term capitalization method.
The discount rates of icot Nakamozu represent 4.8% from the first year to the fifth year and 4.9% in and after thesixth year.

- 45 -

b. Overview of assets held (2)Category(As of May 31, 2022)
Property
number

Property nameLocation

Date ofconstruction(Note 1)

(Note 2)

(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)

UR-1

Tokyu Plaza
Omotesando
Shibuya, Tokyo
Harajuku (Note 8)

March 14, 2012

26

1,816

1,397

4,918.43

4,578.33

93.1

UR-3

Q plaza EBISU

Shibuya, Tokyo

August 20, 2008

4

485

475

4,024.88

4,024.88

100.0

UR-5

Kyoto Karasuma
Parking Building

Kyoto, Kyoto

July 24, 2006

2

(Note 9)(Note 9)21,616.04

21,616.04

100.0

Kobe, Hyogo

January 31, 2010

6

1,235

1,407

19,653.90

19,265.71

98.0

Kobe Kyu
UR-7 Kyoryuchi
25Bankan

Urban Retail Properties

Number Contractedof
rent
tenants(Annual)Leaseholdandguarantee
deposit

UR-8

A-FLAGSAPPORO

Sapporo,Hokkaido

May 23, 1980

13

691

100

21,229.16

20,392.03

96.1

UR-9

A-FLAGSHIBUYA

Shibuya, Tokyo

June 29, 1988

2

420

179

3,403.07

3,403.07

100.0

UR-10

Q plaza
SHINSAIBASHI

Osaka, Osaka

November 16,
2007

6

673

433

2,820.23

2,820.23

100.0

UR-11

A-FLAG KOTTO
DORI

Minato, Tokyo

January 22, 1992

7

200

161

2,656.53

2,362.46

88.9

A-FLAG
UR-12 BIJUTSUKAN
DORI

Minato, Tokyo

December 1, 1998

4

239

241

1,994.65

1,994.65

100.0

A-FLAG
UR-13 DAIKANYAMA
WEST

Shibuya, Tokyo

April 21, 1992

1

(Note 9)(Note 9)2,579.08

2,579.08

100.0

UR-14

A-FLAG KITASHINSAIBASHI

Osaka, Osaka

March 25, 2008

7

188

146

2,540.93

2,540.93

100.0

UR-15

DECKS Tokyo
Beach (Note 8)

Minato, Tokyo

June 20, 1996

77

542

421

16,119.47

15,642.84

97.0

UR-16

Tokyu Plaza Ginza
Chuo, Tokyo(Land) (Note 8)

1

1,162

572

1,130.04

1,130.04

100.0

15

300

236

3,378.49

3,278.26

97.0

171

–

–

108,064.90

105,628.55

97.7

Q plaza
UR-17 HARAJUKU (Note Shibuya, Tokyo
8)
Subtotal–March 5, 2015–

- 46 -

CategoryTokyo Office Properties

Property
number

Property nameLocation

Number Contractedof
rent
tenants(Annual)(Note 1)

(Note 2)

Leaseholdandguarantee
deposit(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)

TO-1

TLC Ebisu
Building

Shibuya, Tokyo

March 5, 1993

11

512

429

7,342.60

6,054.73

82.5

TO-2

A-PLACE Ebisu
MinamiShibuya, Tokyo

January 31, 1995

9

828

779

7,950.49

7,950.49

100.0

TO-3

A-PLACE Yoyogi Shibuya, Tokyo

February 22, 2007

5

261

241

3,106.17

3,106.17

100.0

TO-4

A-PLACE Aoyama Minato, Tokyo

September 6,
1966

8

609

583

7,303.69

7,303.69

100.0

TO-5

Luogo Shiodome

Minato, Tokyo

July 30, 2004

8

312

294

4,476.35

4,108.26

91.8

TO-6

TAMACHISQUARE (Land)

Minato, Tokyo

–

1

125

0

1,287.96

1,287.96

100.0

TO-7

A-PLACE
Ikebukuro

Toshima, Tokyo

October 13, 20111

(Note 9)(Note 9)3,409.73

3,409.73

100.0

TO-8

A-PLACE
Shinbashi

Minato, Tokyo

March 4, 1999

11

261

222

5,054.19

3,994.42

79.0

TO-9

A-PLACE Gotanda

Shinagawa,Tokyo

February 27, 2012

12

388

358

4,028.69

4,028.69

100.0

TO-10

A-PLACE
ShinagawaMinato, Tokyo

September 20,
1991

7

236

226

2,986.36

2,580.94

86.4

TO-11

OSAKI
WIZTOWER

Shinagawa,Tokyo

January 10, 2014

6

686

686

7,193.28

7,193.28

100.0

TO-12

Shiodome Building
Minato, Tokyo(Note 8)December 14,
2007

38

3,163

2,744

28,136.05

27,508.15

97.8

TO-13

A-PLACE Ebisu
Higashi

Shibuya, Tokyo

January 10, 1992

7

359

269

4,010.69

4,010.69

100.0

TO-14

A-PLACE Shibuya
Shibuya, Tokyo
KonnohMarch 18, 1992

4

285

225

3,010.53

3,010.53

100.0

TO-15

A-PLACE Gotanda Shinagawa,EkimaeTokyo

November 30,
1993

10

400

340

4,333.64

4,333.64

100.0

TO-16

A-PLACE
Minato, Tokyo
Shinagawa Higashi

August 31, 1985
(main building)
September 13,
1999 (annex)

7

1,092

996

14,658.98

13,956.02

95.2

TO-18

Ebisu Prime Square
Shibuya, Tokyo(Note 8)January 31, 1997

112

1,486

1,174

18,063.03

17,620.67

97.6

A-PLACE Tamachi
TO-19
Minato, Tokyo
East

April 9, 2003

24

330

314

4,288.88

4,288.88

100.0

Meguro Tokyu
TO-20
Building

Shinagawa,Tokyo

December 24,
2002

9

609

598

6,993.70

6,993.70

100.0

Q plaza ShinjukuTO-21
3chomeSeptember 24,
Shinjuku, Tokyo
1992

4

827

570

4,528.01

4,528.01

100.0

12

378

343

4,373.54

4,373.54

100.0

–

306

–

–

146,536.56

141,642.19

96.7

–

1

714

341

27,465.44

27,465.44

100.0

A-PLACE Shibuya
TO-22
Shibuya, Tokyo
Nampeidai
Subtotal

Activia Account Properties

Date ofconstruction

July 31, 1989

AA-1

Amagasaki Q’s
MALL (Land)

Amagasaki,
Hyogo

AA-2

icot Nakamozu

Sakai, Osaka

June 27, 2007

2

620

430

28,098.02

28,098.02

100.0

AA-4

icot Mizonokuchi

Kawasaki,Kanagawa

July 15, 1998

1

(Note 9)100

14,032.05

14,032.05

100.0

AA-5

icot Tama Center

Tama, Tokyo

March 7, 2006

10

237

233

5,181.58

5,181.58

100.0

AA-6

A-PLACE
Kanayama

Nagoya, Aichi

February 10, 2009

21

541

446

9,314.90

9,314.90

100.0

AA-7

Osaka
Nakanoshima
Building

Osaka, Osaka

March 5, 1984

39

1,010

714

20,125.63

20,125.63

100.0

Ota, Tokyo

March 6, 2007

8

388

357

6,209.78(Note 10)

6,209.78(Note 10)

100.0

Sagamihara,
Kanagawa

June 13, 2014

3

(Note 9)(Note 9)15,152.42

15,152.42

100.0January 15, 2010

19

930

715

13,509.41

12,634.87

93.5

AA-8 icot Omori
AA-9

Market Square
Sagamihara

AA-10 Umeda Gate Tower Osaka, Osaka
A-PLACE
Bashamichi

Yokohama,
Kanagawa

May 31, 1975

37

355

261

9,710.91

9,710.91

100.0

Commercial Mall
AA-12
HakataFukuoka,
Fukuoka

November 3, 2005

18

308

154

9,612.88

8,683.91

90.3

18

1,046

856

15,897.10

15,421.89

97.0

177

–

–

174,310.12

172,031.40

98.7

AA-11

AA-13 EDGE Shinsaibashi Osaka, Osaka
Subtotal

April 22, 1986–

- 47 -

Category

Property
number

Property name

Total

Location

Date ofconstruction

Number Contractedof
rent
tenants(Annual)(Note 1)

(Note 2)–654

- 48 -

Leaseholdandguarantee
deposit(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)
–

–

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)428,911.58

419,302.14

97.8

(Note 1)

Date of construction of the main building, as described in the property registry. For properties with several mainbuildings, the construction date of the oldest building is listed. The construction date is omitted in case of acquisitionof land only (Land represents the part of site on which the building is established under a land lease right; the same
shall apply hereinafter). However, for A-PLACE Shinbashi and A-FLAG SHIBUYA, the date of inspection
confirming completion of construction written on the certificate of inspection is provided.
(Note 2) At each property, the number of tenants is equal to the aggregate number of tenants as of May 31, 2022 described in
the lease agreements in relation to buildings, except that for properties with master lease agreements, the total numberof end-tenants is listed. For properties for which we acquire only land, the total number of tenants of the land is listed.
(Note 3) The contracted rent (annual) for each property other than properties for which we acquire only land is calculated bymultiplying the aggregate anticipated monthly rent (limited to rent for rooms which were occupied by tenants as May
31, 2022), including common service fee and excluding usage fee for warehouses, signboards and parking lots, andalso excluding revenue-based rents, regardless of free rents, rent holidays and temporary reductions of rent as of May
31, 2022, as indicated in the lease agreements in relation to buildings as of May 31, 2022 by 12 (for where multiple
lease agreements are concluded in relation to buildings, the aggregate anticipated monthly rent for all leaseagreements) (excluding consumption tax) and rounding to the nearest million yen. For properties for which we
acquire only land, it is calculated as the annual contracted rent (excluding consumption tax) as indicated in the leaseagreement for such land as of May 31, 2022, rounding to the nearest million yen. For properties with master leaseagreements, the annual contracted rent is calculated by multiplying the aggregate anticipated monthly rent (limited torent for rooms; including common service fees and excluding usage fees for warehouses, signboards and parking lots,
and also excluding revenue-based rents, regardless of free rents, rent holidays and temporary reductions of rent as of
May 31, 2022), as indicated in the relevant sublease agreement with end-tenants by 12.
(Note 4) The leasehold and guarantee deposit is calculated as the total amount on the lease agreement for each property as of
May 31, 2022 (limited to leasehold and guarantee deposit based on the lease agreement for leased property that was
occupied by the tenant as of May 31, 2022), rounding to the nearest million yen. For properties with master leaseagreements, the leasehold and guarantee deposit is calculated as the total amount required based on the subleaseagreements with end-tenants, rounding to the nearest million yen.
(Note 5) The total leasable area represents the total of gross floor area considered to be leasable based on the lease agreements
for building or floor plans as of May 31, 2022 of each property other than properties of which we acquire only land,
and gross land area considered to be leasable based on the lease agreement for land or land plans as of May 31, 2022
of each property of which we acquire only land.
(Note 6) The total leased area is equal to the total of leased area presented in each lease agreement for properties held as of
May 31, 2022. For properties with master lease agreements, counted is the total of the area of properties for which
sublease agreements are concluded with end-tenants and that are actually subleased.
(Note 7) The occupancy rate is calculated by dividing total leased area for each property by the total leasable area as of May
31, 2022, rounding to the nearest tenth. The subtotal and total are calculated by dividing aggregate leased area by
aggregate leasable area, rounding to the nearest tenth.
(Note 8) As for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU,
Shiodome Building, and Ebisu Prime Square, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 49%, 30%, 60%, 35% and 51%, respectively).
However, the numbers of tenants provided are the numbers for each whole building.
(Note 9) Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
(Note 10) The calculation of total leasable area and total leased area for icot Omori includes part of an external bicycle parking
lot (approximately 21 m2) and part of a common area on the second floor (approximately 28 m2).
(Note 11) For lease agreements with end-tenants that have been asked to be terminated or cancelled, or for which the rent has
not been paid, number of tenants, contracted rent (annual), leasehold and guarantee deposit, total leased area andoccupancy rate are shown in the above table if these agreements continued as of May 31, 2022, assuming that thelease agreements with the end-tenants remained effective; the same shall apply hereinafter.

- 49 -

(B) Capital expenditure for assets under managementa. Scheduled capital expenditure
The following table shows major estimated capital expenditure for renovation work, etc. that theInvestment Corporation plans to conduct for assets held in the 21st fiscal period as of May 31, 2022.
The estimated construction cost below includes the portion expensed for accounting purposes.
Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid

Replacement of
A-FLAG SAPPORO
substation equipment(Sapporo, Hokkaido)(First period)

From March 2022
to November 2022

572

12

12

Replacement of
A-FLAG SAPPORO
substation equipment(Sapporo, Hokkaido)(Second period)

From November 2022
to May 2023

480

10

10

Osaka Nakanoshima Renovation of air
Building
conditioning (Third(Osaka, Osaka)period)From June 2024
to November 2024

461

–

–

(Main building/new
A-FLAG SAPPORO building) repair ofFrom March 2023
(Sapporo, Hokkaido) external wall and guest to November 2023
room window

444

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (Second(Osaka, Osaka)period)From December 2023
to May 2024

401

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (First(Osaka, Osaka)period)From June 2023
to November 2023

357

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (Fourth(Osaka, Osaka)period)From December 2024
to May 2025

267

–

–

Renewal of air
Meguro Tokyu
conditioning/LED
Building(Shinagawa, Tokyo) lighting Phase I

From December 2023
to May 2024

250

–

–

icot Mizonokuchi(Kawasaki,
Kanagawa)

Large-scale repair
work

From January 2023
to July 2023

220

–

–

A-PLACE Tamachi
Replacement of air
East
conditioning(Minato, Tokyo)

From October 2022
to November 2023

175

–

–

TLC Ebisu Building Large-scale repair(Shibuya, Tokyo)
work

From December 2022
to May 2023

165

–

–

Commercial Mall
Large-scale renovation From January 2024
Hakataof external wall
to May 2024
(Fukuoka, Fukuoka)

150

–

–

Osaka Nakanoshima
Replacement of two
Building
emergency elevators(Osaka, Osaka)

From July 2021
to November 2022

140

–

–

Osaka Nakanoshima Replacement ofemergency power
Building
generators(Osaka, Osaka)

From December 2023
to May 2024

132

–

–

83

–

–

Q plaza EBISU(Shibuya, Tokyo)

Renovation of external From May 2024
wall
to May 2024
- 50 -

Estimated construction cost
(Millions of yen)

Name of real
property(Location)

PurposeScheduled period

A-PLACE Shibuya
Nampeidai(Shibuya, Tokyo)

Renewal of air
conditioning units innorth building(proposed expansion)

From December 2023
to May 2024

icot Nakamozu(Sakai, Osaka)

Replacement of
substation equipment(SC Building)

A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Replacement ofvertical pipes for
supply/pumped cleanwater and for blackwater

A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Payment
for theperiodTotalamount
paid

76

–

–

From May 2023
to May 2023

74

–

–

From June 2021
to November 2022

72

–

–

Renovation of lavatory From October 2023
on each floor
to November 2023

65

–

–

Total
amountReplacement of air
Ebisu Prime Squareconditioning(Shibuya, Tokyo)
equipment (2 floors)

From June 2023
to November 2023

64
(Note)––

Replacement of air
Ebisu Prime Squareconditioning(Shibuya, Tokyo)
equipment (2 floors)

From December 2023
to May 2024

64
(Note)––A-FLAG
BIJUTSUKAN
DORI(Minato, Tokyo)

Large-scale repair
work

From December 2022
to May 2023

62

–

–

icot Tama Center(Tama, Tokyo)

Replacement of
From March 2023
elevator and escalator to May 2023

61

–

–

58

–

–

50
(Note)––TLC Ebisu Building Merchandising work in From May 2023
(Shibuya, Tokyo)
common areas
to May 2023

50

–

–

A-PLACE Shibuya
Konnoh(Shibuya, Tokyo)

From June 2023
to November 2023

50

–

–

From June 2022
to November 2022

49

–

–

42

–

–

28
(Note)––

Osaka Nakanoshima Repair of lavatory
Building
plumbing for 2nd to(Osaka, Osaka)
5th floors

From December 2022
to May 2023

Tokyu Plaza
Omotesando
Harajuku(Shibuya, Tokyo)

From March 2023
to March 2023

Renewal of 4th floor

Beautification oflavatory

A-PLACE Aoyama Installation of LED(Minato, Tokyo)
lighting
Kobe Kyu
Kyoryuchi
25Bankan(Kobe, Hyogo)

Compartmentalization(Construction A) for From September 2022
compartment B on the to November 2022
1st and 2nd floor

Shiodome Building(Minato, Tokyo)

Installation of LED
lighting (Fourth
period)From April 2022
to August 2022

- 51 -Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

Payment
for theperiodTotalamount
paid

19

–

–

19
(Note)––

From July 2022
to November 2022

18

–

–

Repair of light wall
From March 2022
lamp in north building to November 2022

16

–

–

Kobe Kyu
Kyoryuchi
25Bankan(Kobe, Hyogo)

Renewal of multistory
From June 2022
parking space (renewal
to November 2022
of lift chains)

Shiodome Building(Minato, Tokyo)

Restoration work on
21st floor

Osaka Nakanoshima
Renewal of T-1
Building
receiving water tank
(Osaka, Osaka)
Q plaza
SHINSAIBASHI(Osaka, Osaka)

From September 2022
to November 2022

Total
amountInstallation of LED
Meguro Tokyu
lightning in private
Building(Shinagawa, Tokyo) rooms

From March 2023
to May 2023

16

–

–

Installation of LED
A-PLACE Gotanda
lightning in private(Shinagawa, Tokyo)
areas

From July 2022
to November 2022

15

–

–

14
(Note)

–

–

10

–

–

Tokyu Plaza
Omotesando
Harajuku(Shibuya, Tokyo)

Renovation of barrierFrom July 2022
free access in
Compartment A on the to July 2022
1st floor

Repair of air
conditioning outdoor
Umeda Gate Tower
units on 7th, 13th,(Osaka, Osaka)
14th, 18th and 20th
floors(Note)

From June 2022
to November 2022

The shown estimated construction cost with regard to Ebisu Prime Square, Tokyu Plaza Omotesando
Harajuku and Shiodome Building is the amount equivalent to the ratio of the Investment Corporation’s coownership beneficial interests in real estate trust (51%, 75% and 35%, respectively).

- 52 -

b. Capital expenditure during the fiscal period
For assets held by the Investment Corporation in the 21st fiscal period, construction work conductedby the Investment Corporation during the fiscal period ended May 31, 2022 that falls into capital
expenditure is as follows. The capital expenditure for the fiscal period ended May 31, 2022
amounted to ¥645 million, and repair and maintenance expenses that were accounted for as expensein the fiscal period ended May 31, 2022 came to ¥346 million. On aggregate, construction work of¥992 million was carried out during the fiscal period.
Name of real property(Location)

PurposeA-FLAG SHIBUYA(Shibuya, Tokyo)

Renewal of escalator control
work and equipment
refurbishment

From March 2022
to March 2022

70

A-PLACE Kanayama(Nagoya, Aichi)

Installation of LED lightningin private areas

From January 2022
to May 2022

49

TLC Ebisu Building(Shibuya, Tokyo)

Installation of set-up office

From March 2022
to April 2022

44

TLC Ebisu Building(Shibuya, Tokyo)

Renovation work formechanical parking facility

From April 2022
to May 2022

44

DECKS Tokyo Beach(Minato, Tokyo)

Replacement of automatedfire alarm system

From September 2021
to March 2022

33
(Note)

Shiodome Building(Minato, Tokyo)

Installation of LED lighting(Third period)

From October 2021
to February 2022

27
(Note)

Commercial Mall
Hakata(Fukuoka, Fukuoka)

Replacement of air
conditioning units

From December 2022
to January 2022

22

A-PLACE Ikebukuro(Toshima, Tokyo)

Installation of LED lighting

From January 2022
to May 2022

22

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair work of substationequipment according tofacility planning

From February 2022
to March 2022

19

EDGE Shinsaibashi(Osaka, Osaka)

Replacement of mechanicalsecurity and entry/exit
monitoring system

From November 2021
to December 2021

18

Luogo Shiodome(Minato, Tokyo)

Replacement of security
systemFrom December 2021
to May 2022

18

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of compression
machine of centrifugal
chillers

From November 2021
to February 2022

16

Replacement of total heat
A-PLACE Bashamichi
exchangers and ventilation(Yokohama, Kanagawa)fans for 3rd to 9th floors

From April 2022
to May 2022

16

A-PLACE Shinbashi(Minato, Tokyo)

Installation of LED lighting

From February 2022
to April 2022

12

Umeda Gate Tower(Osaka, Osaka)Compartmentalization

From April 2022
to May 2022

11

From February 2022
to May 2022

10

A-PLACE Bashamichi Replacement of automated(Yokohama, Kanagawa) fire alarm system
Other

Construction cost
(Millions of yen)

204
Total

(Note)

Period645

The shown construction cost with regard to DECKS Tokyo Beach and Shiodome Building is the amountequivalent to the ratio of the Investment Corporation’s co-ownership beneficial interests in real estate trust(49% and 35%, respectively).
- 53 -

(C) Information concerning major tenants
a. Summary of major tenants
For assets held in the 21st fiscal period, the table below shows tenants whose leased area accounts
for 10% or more of the total leased area in the entire portfolio (major tenants) based on the data asof May 31, 2022. The forms of agreements with the tenants in the table are ordinary leaseagreements.
As for certain assets held, the Investment Corporation has entered into lease agreements (master
lease agreements) with Tokyu Community Corp. and Tokyu Land SC Management Corporation
with the objective of allowing them to be master lease companies and sublease the leased assets to
end-tenants. The table below shows information on the major tenants with master lease agreements
based on the data as of May 31, 2022. Rents received by the Investment Corporation from themaster lease companies are equal to the rents received by these companies from sublessees (endtenants) (pass-through master lease), and such rents are not guaranteed.

TenantTokyu Community
Corp.

Business

Property nameLeased area (m2)(Note 1)

Contracted rent
(Annual)(Millions ofyen)(Note 2)

Leasehold andguarantee
deposit(Millions ofyen)(Note 3)

Expiration date
(Note 4)

A-FLAG KOTTO DORI

2,362.46

200

161

December 31, 2026

TLC Ebisu Building

6,054.73

512

429

May 31, 2025

A-PLACE Ebisu Minami

7,950.49

828

779

May 31, 2025

A-PLACE Yoyogi

3,106.17261

241

May 31, 2025

A-PLACE Aoyama

7,303.69

609

583

May 31, 2025

Luogo Shiodome

4,108.26

312

294

May 31, 2025

A-PLACE Ikebukuro

3,409.73(Note 5)(Note 5)

May 31, 2025

A-PLACE Shinbashi

3,994.42

261

222

May 31, 2025

A-PLACE Gotanda

4,028.69

388

358

May 31, 2025

A-PLACE Shinagawa

2,580.94

236

226

May 31, 2025

OSAKI WIZTOWER

7,193.28

686

686

May 31, 2025

A-PLACE Ebisu Higashi

Real EstateManagement A-PLACE Shibuya Konnoh

4,010.69

359

269

May 31, 2025

3,010.53285

225

September 30, 2025

A-PLACE Gotanda Ekimae

4,333.64

400

340

June 30, 2026

A-PLACE Shinagawa
Higashi

13,956.02

1,092

996

March 31, 2027

Ebisu Prime Square (Note 6)

14,271.04

1,294

1,146

January 31, 2030

A-PLACE Tamachi East

4,288.88330

314

October 31, 2031

A-PLACE Shibuya
Nampeidai

4,373.54

378

343

September 30, 2031

A-PLACE Kanayama

9,314.90

541

446

May 31, 2025

Osaka Nakanoshima Building

20,125.63

1,010

714

November 30, 2024

Umeda Gate Tower

12,634.87

930

715

April 30, 2028

A-PLACE Bashamichi

9,710.91355

261

October 31, 2026

Commercial Mall Hakata

8,683.91

308

154

March 31, 2027

160,807.42

–

–

–

Total

- 54 -

Tenant

Tokyu Land SC
Management
Corporation(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)

Business

Property nameLeased area (m2)(Note 1)

Contracted rent
(Annual)(Millions ofyen)(Note 2)

Leasehold andguarantee
deposit(Millions ofyen)(Note 3)

Expiration date
(Note 4)

June 30, 2022

Q plaza EBISU

4,024.88

485

475

Kyoto Karasuma Parking
Building

21,616.04(Note 5)(Note 5)

November 30, 2024

Kobe Kyu Kyoryuchi
25Bankan

19,265.71

1,235

1,407

August 31, 2023

A-FLAG SAPPORO

20,392.03

691

100

December 31, 2023

A-FLAG SHIBUYA

3,403.07

420

179

December 31, 2023

Q plaza SHINSAIBASHI

2,820.23

673

433

December 31, 2025

A-FLAG BIJUTSUKAN
DORI

1,994.65

239

241

December 31, 2026

A-FLAG DAIKANYAMA
WEST

2,579.08(Note 5)(Note 5)

December 31, 2026

2,540.93

188

146

June 30, 2027

15,642.84

542

421

January 31, 2028

Q plaza HARAJUKU(Note 6)

3,278.26300

236January 31, 2029

Q plaza Shinjuku-3chome

4,528.01827

570

September 30, 2031

icot Nakamozu

28,098.02

620

430

June 30, 2022

icot Mizonokuchi

14,032.05(Note 5)100

June 30, 2022

icot Tama Center

5,181.58

237

233

November 30, 2024

icot Omori

6,209.78

388

357

December 31, 2023

Market Square Sagamihara

15,152.42(Note 5)(Note 5)January 31, 2025

Total

170,759.58––

Real Estate A-FLAG KITAManagement SHINSAIBASHIDECKS Tokyo Beach(Note 6)–The leased area is the leased area to end-tenants in respect to the leased area provided in the master lease agreement
as of May 31, 2022 where the tenant is the master lease company and sublessor, rounding to the nearest hundredth.
Under master lease contracts concluded with tenants, for properties of which the master lease rent payable by thetenant equals to the rent payable by the end-tenant to the tenant, the contracted rent (annual) for each property is
calculated by multiplying the monthly rent (limited to rooms which were occupied by tenants as of May 31, 2022),
including common service fee and excluding usage fee for warehouses, signboards and parking lots, and also
excluding revenue-based rents, regardless of free rents, rent holidays and temporary reductions of rent as of May 31,
2022, as indicated in the sublease agreement concluded with the end-tenant as of May 31, 2022 by 12, rounding to thenearest million yen.
The leasehold and guarantee deposit is calculated as the total amount on the sublease agreement with the end-tenant
as of May 31, 2022 (limited to leasehold and guarantee deposit based on the lease agreement for leased property thatwas occupied by the tenant as of May 31, 2022), rounding to the nearest million yen, where the tenant is the master
lease company and sublessor.
The expiration date is the date provided in the lease agreement where the tenant is the lessee, including where thetenant is a sublessor and master lease company under a sublease agreement. Concerning the method of renewing themaster lease agreement entered into with the above-mentioned major tenant who is the master lease company,
assuming that the lessor or lessee has not expressed in writing their intention to refuse renewal at a time that is at least
three full months before the expiry of the lease agreement, the agreement shall be renewed for a further two years
under the same conditions, and the same will apply thereafter.
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
As for Ebisu Prime Square, DECKS Tokyo Beach and Q plaza HARAJUKU, the figures are in proportion to the pro
rata share of our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (51%, 49% and 60%, respectively).

- 55 -

b. End-tenants in the top 10 in terms of total leased area
For assets held by the Investment Corporation, the following table shows end-tenants ranked in the
top 10 in terms of total leased area in the entire portfolio as of May 31, 2022.
End-tenants

Property name

Total leased area (m2)(Note 1)

Lease expiration date

Form of agreement(Note 2)
General fixed-termleasehold land agreement
Ordinary leasehold land
agreement
Fixed-term business-use
lease agreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement

Sumitomo Mitsui Trust
Bank, Limited (Note 3)

Tokyu Plaza Ginza (Land)
TAMACHI SQUARE (Land)
Amagasaki Q’s MALL (Land)

29,883.44(Note 4)January 9, 2089
May 31, 2074
January 31, 2042

Kohnan Shoji Co., Ltd.

icot Nakamozu

26,529.03

July 11, 2027

Times24 Co., Ltd.

Kyoto Karasuma Parking Building

21,224.14–

Tokyu Hotels Co., Ltd.

A-FLAG SAPPORO

18,891.39

March 31, 2027

Plan Do See Inc.

Kobe Kyu Kyoryuchi 25Bankan

14,195.42

February 28, 2051

Room’s-Taishodo

icot Mizonokuchi

14,032.05

July 24, 2023

K’S HOLDINGSCORPORATION

Market Square Sagamihara

11,863.92

June 30, 2034

NTT Communications
Corporation

Shiodome Building

10,336.62

June 30, 2022
(Note 5)

Fixed-term building leaseagreement

Swing Corporation

A-PLACE Shinagawa Higashi

6,488.78

August 15, 2022
(Note 6)

Ordinary building leaseagreement

MUFG Bank, Ltd.

icot Nakamozu
icot Tama Center
A-PLACE Kanayama

5,609.11––(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

The total leased area is equal to the total leased area in each property under the lease agreement with the end-tenant asof May 31, 2022. As for Tokyu Plaza Ginza (Land) and Shiodome Building, the figure is based on the amount inproportion to the pro rata share of our trust beneficiary co-ownership interests (jun kyōyū-mochibun) as of May 31,
2022 (30% and 35%, respectively).
The form of agreement is equal to the form of agreement described in the lease agreement with the end-tenants as of
May 31, 2022.
Tenant is the trustee of the building on the land; SPADE HOUSE Limited Liability Company is the trust beneficiaryunder such trust of Tokyu Plaza Ginza (Land); Tokyu Land Corporation is the trust beneficiary under such trust of
TAMACHI SQUARE (Land) and Amagasaki Q’s MALL (Land).
Total leased area for Tokyu Plaza Ginza (Land), TAMACHI SQUARE (Land) and Amagasaki Q’s MALL (Land) isin respect of the land.
NTT Communications Corporation vacated upon expiration of contract on June 30, 2022.
Swing Corporation will terminate the agreement and vacate the property on August 15, 2022.
Since we have not obtained permission from the tenant of the properties to release the information, the information
missing from this table is not disclosed.

- 56 -

(D) Overview of lease and profit and loss
21st fiscal period (From December 1, 2021 to May 31, 2022)
Property number

UR-1

UR-3

UR-5

Property name

Tokyu Plaza
Omotesando
Harajuku(Note 1)

Q plaza EBISU

Kyoto Karasuma
Parking Building

182

182

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues(Unit: Thousands of yen)
UR-8

UR-7

182

Kobe Kyu Kyoryuchi
A-FLAG SAPPORO
25Bankan
182

182

946,201

271,253(Note 2)

722,432

450,474

897,211242,944(Note 2)

666,472

399,868

Other leasing business revenue

48,98928,309(Note 2)

55,96050,606b. Expenses related to leasing business

242,449

61,35644,265

189,886

221,063

Leasing business revenue

Management operation expenses

85,637

16,344

3,608

79,971

100,762

Utilities expenses

25,19925,014–49,03676,356

Tax and public dues

68,941

8,928

38,89348,07324,702

253

101

211

892

852

10,692

452

543

6,010

13,027

Insurance
Repair and maintenance expenses
Other expenses related to leasing
business

51,725

10,515

1,008

5,901

5,362

c. NOI (a – b)703,751

209,896(Note 2)532,546

229,410d. Depreciation, etc. (Note 3)

52,446

18,43916,032

124,086

78,044

Profit (loss) from leasing business(c – d)651,304

191,457(Note 2)

408,459

151,366

Property number

UR-9

UR-10

UR-11

UR-12

(Unit: Thousands of yen)
UR-13

Property name

A-FLAG SHIBUYA

Q plaza
SHINSAIBASHI

A-FLAG KOTTO
DORI

A-FLAG
BIJUTSUKAN
DORI

A-FLAGDAIKANYAMA
WEST

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues
Leasing business revenue

182

182

182

182

182

218,669

349,017

105,140

122,349(Note 2)

209,911336,227

100,299

116,214(Note 2)Other leasing business revenue

8,757

12,789

4,841

6,134

(Note 2)b. Expenses related to leasing business

41,32545,12733,01932,691

28,215

Management operation expenses

12,312

9,857

8,259

3,846

7,810

Utilities expenses

7,919

10,668

5,572

5,897

402

Tax and public dues

11,425

16,837

13,946

2,120

14,424

Insurance

70

89

99

49

82

Repair and maintenance expenses

7,598

3,085

3,300

410

3,233

Other expenses related to leasing
business

1,999

4,590

1,840

20,3672,262

c. NOI (a – b)

177,344

303,890

72,12089,658(Note 2)d. Depreciation, etc. (Note 3)

11,812

14,614

4,359

7,207

5,369

Profit (loss) from leasing business(c – d)165,532

289,275

67,76182,450(Note 2)

- 57 -

Property number

UR-14

UR-15

UR-16

UR-17

Property name

A-FLAG KITASHINSAIBASHIDECKS Tokyo
Beach(Note 1)Tokyu Plaza Ginza(Land)(Note 1)

Q plaza
HARAJUKU(Note 1)

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues

182

182

182

182

(Unit: Thousands of yen)
TO-1
TLC Ebisu Building
182

90,792472,065

581,063

200,455

271,613

Leasing business revenue

78,313367,799

581,063

186,996

260,217

Other leasing business revenue

12,478104,266–

13,458

11,396b. Expenses related to leasing business

26,646331,223

105,51172,850105,970

Management operation expenses

8,162

108,678–

19,741

33,579

Utilities expenses

7,494

86,898–12,376

13,091

Tax and public dues

6,656

56,345105,203

36,891

17,616

59

614

–

105

264

Repair and maintenance expenses

1,973

29,903–453

28,306

Other expenses related to leasing
business

2,300

48,782307

3,282

13,112c. NOI (a – b)64,146140,841475,552

127,604

165,643

d. Depreciation, etc. (Note 3)

5,958

30,0530

6,791

45,172

Profit (loss) from leasing business(c – d)58,188110,788475,552

120,812120,471

Insurance

Property number

TO-2

TO-3

TO-4

TO-5

Property name

A-PLACE Ebisu
MinamiA-PLACE
YoyogiA-PLACE
AoyamaLuogo Shiodome

182

182

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues

182(Unit: Thousands of yen)
TO-6
TAMACHISQUARE (Land)

182

182

430,804

137,872

330,376

122,916

62,502

Leasing business revenue

411,558

132,345

313,860

115,294

62,502Other leasing business revenue

19,246

5,526

16,516

7,621–

b. Expenses related to leasing business

108,854

30,673

68,34549,395

9,383

Management operation expenses

36,83810,504

19,35818,171–

Utilities expenses

23,047

7,174

19,328

7,848–

Tax and public dues

33,411

10,70023,585

20,388

9,130

337

114

248

213

–

Repair and maintenance expenses

7,847

1,305

1,800

766

–

Other expenses related to leasing
business

7,372

873

4,023

2,008

252

c. NOI (a – b)321,949

107,199

262,03173,52053,118d. Depreciation, etc. (Note 3)

36,893

16,074

23,58833,4040Profit (loss) from leasing business(c – d)285,056

91,124

238,443

40,116

53,118Property number

TO-7

TO-8

TO-9

TO-10

(Unit: Thousands of yen)
TO-11

Property name

A-PLACE Ikebukuro

A-PLACE
Shinbashi

A-PLACE
GotandaA-PLACE
Shinagawa

OSAKI
WIZTOWER

182

182

182

182

Insurance

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues

182(Note 2)

185,315

193,141

141,876

351,133

Leasing business revenue(Note 2)

174,957

172,201

135,125

339,933
11,199Other leasing business revenue(Note 2)

10,35820,9406,751

b. Expenses related to leasing business

33,95474,995

48,143

31,663

93,123

Management operation expenses

10,535

19,932

18,295

10,03358,078

Utilities expenses

9,738

10,258

9,083

5,908

9,286

Tax and public dues

10,76915,653

14,114

11,672

23,516

Insurance

112

189

152

104

445

Repair and maintenance expenses

1,854

23,280

2,441

1,371

–

Other expenses related to leasing
business

944

5,681

4,055

2,573

1,795

c. NOI (a – b)(Note 2)

110,319

144,998

110,213

258,010d. Depreciation, etc. (Note 3)

21,014

23,41726,755

9,312

48,246

Profit (loss) from leasing business(c – d)(Note 2)

86,902

118,243

100,900

209,763- 58 -

(Unit: Thousands of yen)
TO-16

Property number

TO-12

TO-13

TO-14

TO-15

Property nameShiodome Building(Note 1)

A-PLACE Ebisu
HigashiA-PLACE Shibuya
KonnohA-PLACE Gotanda
EkimaeNumber of business days in the 21stfiscal period
a. Real estate leasing business revenues
Leasing business revenue

182

182

182

182

A-PLACE
Shinagawa Higashi
182

1,535,391

190,112150,245

210,051

589,885

1,466,847

181,532

145,368

201,514558,233

Other leasing business revenue

68,543

8,579

4,876

8,537

31,651b. Expenses related to leasing business

384,375

42,18935,42954,376

144,024

Management operation expenses

103,400

12,53912,597

15,11546,838

Utilities expenses

63,470

7,923

5,646

10,52228,589Tax and public dues

124,934

14,033

9,688

18,30049,426

895

138

106

158

627

Repair and maintenance expenses

22,346

5,223

3,587

4,611

3,097

Other expenses related to leasing
business

69,328

2,330

3,802

5,667

15,445

Insurancec. NOI (a – b)

1,151,015

147,922

114,816

155,675

445,861

d. Depreciation, etc. (Note 3)

155,534

23,461

13,09914,87931,355

Profit (loss) from leasing business(c – d)995,480

124,461

101,716

140,796414,506

Property number

TO-18

TO-19

TO-20

TO-21

Property name

Ebisu Prime Square(Note 1)

A-PLACE Tamachi
East

Meguro Tokyu
Building

Q plaza Shinjuku3chome

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues
Leasing business revenue

182

182

182

(Unit: Thousands of yen)
TO-22

182

A-PLACE Shibuya
Nampeidai
182

797,170

175,555

320,245441,669

205,375

708,415

166,824

301,325

331,874

195,605

Other leasing business revenue

88,754

8,731

18,920109,794

9,769

b. Expenses related to leasing business

281,053

27,52247,89034,16041,711

Management operation expenses

65,815

13,424

24,391

11,54814,921

Utilities expenses

102,879

8,568

16,007

19,817

9,822

Tax and public dues

72,368

177

–

131

105

856

190

256

187

191

Repair and maintenance expenses

26,414

2,934

4,380

–

12,585

Other expenses related to leasing
business

12,719

2,227

2,855

2,476

4,085

c. NOI (a – b)

516,116

148,033

272,354

407,508

163,663

d. Depreciation, etc. (Note 3)

44,4288,091

15,006

5,950

3,987

Profit (loss) from leasing business(c – d)471,688

139,941

257,348

401,557

159,676

Property number

AA-1

AA-2

AA-4

AA-5

Property name

Amagasaki Q’s
MALL (Land)

icot Nakamozu

icot Mizonokuchi

icot Tama Center

182

182

Insurance

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues

182(Unit: Thousands of yen)
AA-6
A-PLACE Kanayama

182

182

356,784

311,031(Note 2)

141,835

303,793356,784

311,001(Note 2)

131,490

283,001–30(Note 2)

10,344

20,792b. Expenses related to leasing business

56,41739,56913,54253,287

99,725

Management operation expenses

–

5,603

2,261

17,42725,160Utilities expenses

–

30

–

11,313

20,972
27,510

Leasing business revenue
Other leasing business revenue

56,15930,121

9,949

11,706

Insurance

Tax and public dues

–

306

133

216

341

Repair and maintenance expenses

–

2,502

–

10,977

23,168Other expenses related to leasing
business

257

1,005

1,198

1,646

2,571

300,367

271,461(Note 2)88,547204,068–

37,032

8,426

19,04452,738300,367

234,429(Note 2)

69,503

151,330c. NOI (a – b)d. Depreciation, etc. (Note 3)
Profit (loss) from leasing business(c – d)- 59 -

(Unit: Thousands of yen)
AA-11

Property number

AA-7

AA-8

AA-9

AA-10

Property name

Osaka Nakanoshima
Building

icot Omori

Market Square
Sagamihara

Umeda Gate Tower

182

182

Number of business days in the 21stfiscal period
a. Real estate leasing business revenues
Leasing business revenue

182

182

A-PLACE
Bashamichi
182

554,073

229,171(Note 2)466,699

200,777

530,536

202,800(Note 2)436,705

185,061

Other leasing business revenue

23,536

26,371(Note 2)

29,994

15,715b. Expenses related to leasing business

166,473

50,671

38,440139,383

67,847

Management operation expenses

54,6998,855

16,06036,646

19,586

Utilities expenses

42,196

26,725

5,470

29,79121,018Tax and public dues

54,11912,393

13,52835,157

17,075

Insurance

1,018

143

179

501

400

Repair and maintenance expenses

8,515

1,413

577

31,336

4,720

Other expenses related to leasing
business

5,923

1,139

2,623

5,948

5,045

c. NOI (a – b)

387,599

178,500(Note 2)

327,316

132,930

d. Depreciation, etc. (Note 3)

92,85918,51823,52867,972

32,135

Profit (loss) from leasing business(c – d)294,739

159,981(Note 2)

259,344

100,794(Unit: Thousands of yen)
AA-13

Property number

AA-12

Property nameCommercial Mall
HakataNumber of business days in the 21stfiscal period
a. Real estate leasing business revenues

182

EDGE Shinsaibashi
182

186,352

562,981

Leasing business revenue

156,888527,741

Other leasing business revenue

29,46435,240b. Expenses related to leasing business

75,445

165,937

Management operation expenses

23,25338,874

Utilities expenses

22,95436,974

Tax and public dues

12,296

60,610Insurance

165

614

Repair and maintenance expenses

7,855

20,269Other expenses related to leasing
business

8,920

8,593

c. NOI (a – b)110,907397,043

d. Depreciation, etc. (Note 3)

17,39923,850

Profit (loss) from leasing business(c – d)93,507373,192(Note 1)

(Note 2)
(Note 3)

As for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU,
Shiodome Building and Ebisu Prime Square, the figures are in proportion to the pro rata share of our trust beneficiaryco-ownership interests (jun kyōyū-mochibun) (75%, 49%, 30%, 60%, 35% and 51%, respectively).
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
“Depreciation, etc.” includes loss on retirement of non-current assets.

- 60 -