Semi-Annual Report

19th

for the Period ended May 31, 2021
(19th Period)
From December 1, 2020 to May 31, 2021

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

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

Activia Properties Inc. aims at proactive management
through selecting assets that appeal to retailcustomers and office tenants as urban centersand hubs for business activity, in order to maximize unitholder
value over the medium- to long-term. API also takes initiatives
to improve its asset management.

Basic Policy of Activia Properties Inc.

investment in Urban Retail
1 Focused
Properties and Tokyo Office Properties
Utilization of the comprehensive support
and capabilities of the Tokyu Fudosan
Holdings Group’s value chain

2

governance structure aimed at
3 Strong
maximizing unitholder value

Contents
4

Message

5

TOPICS

15

API’s Strengths

16

Portfolio Map

19

Portfolio List

20

I.

Asset Management Report

50

II.

Balance Sheets

52

III.

Statements of Operations

53

IV. Statements of Changes in Unitholders’ Equity

55

V.

56

VI. Statements of Cash Flows

57

VII. Notes to Financial Statements

Statements of Cash Distributions

74

VIII. Schedule of Financial Statements

84

Independent Auditor’s Report87

Overview of API

88

Overview of the Asset Manager

89

Information on Unitholders

Cash Distributions (Actual)

Financial Highlights

The Period ended May 2021 (the 19th Period)
Cash distributions per unit

¥

9,401

Cash Distributions (Forecasts)
The Period ending November 2021 (the 20th Period)
Cash distributions per unit

¥

9,350

The Period ending May 2022 (the 21st Period)
Cash distributions per unit

¥

9,100

Period ended November 30, 2020 (18th Period)

Period ended May 31, 2021 (19th Period)

14,715 million

Operating revenue¥15,073 million

Operating profit¥8,228 million¥

8,101 million

Ordinary profit¥7,363 million¥

7,250 million

Profit¥7,363 million¥

7,249 million¥

Total assets¥525,378 million¥

525,379 million

Net assets¥255,705 million¥

255,581 million

Unitholders’ equity to total assets (%)

48.7%

Net assets per unit (yen)(Note)¥331,558(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

48.6%
¥

331,397

E

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We Intend to Improve Unitholder Value through

1

M E

S

S

A G

Initiatives that Prepare Us for a Post-COVID-19

O

P

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Performance by Key Indicators for the 19th Period Ended May 2021
 olid Performance with Improvement in Key Indicators Even Though DPUs Have Decreased from theS
Previous Period

Environment

Financial Results (FP19 ended May 2021)

Kazushi Sato
Executive Director
Activia Properties Inc.

Thank you very much for your continued support for
Activia Properties Inc (API).
Before explaining the financial results, we pray

looking ahead to the post-COVID-19 environment.

We owe this achievement to your understanding and

The overall occupancy rate of our portfolio at the¥14,715 million, ¥8,101 million and ¥7,249 million,

In the Japanese economy in the fiscal period

respectively, for the period ended May 2021.

under review, there was increasing weakness mainly

Distributions per investment unit were ¥9,401.
API has included ESG (environment, social,service industry despite the continuing trends for agovernance) perspectives into the long-term

recovery in some areas amid the lingering difficult

management strategy to realize a sustainable society.

contribute to the environment and local communities.
In the period under review, we have continued tooverall of every security.

flexibly respond to requests such as temporary
by COVID-19. Also, we published our inauguralin Tokyo Office properties backed by the strong

sustainability report.
the target set for each element of our materiality

paid to market trends.

to enhance trustworthy relationships with all our
stakeholders, including unitholders.

been continuously affected by this pandemic, while

For the 20th period ending November 2021

some retailers with daily goods are performing well,and onwards, we will strive to return to a growthhaving grasped consumers new behavior.

trajectory by various measures, including developing

replacement to be conducted during the period
ending November 2021, as one of measures forexternal growth in preparation for market risk and a

9,401

NAV per unit
vs. Previous period

-¥146

¥

455,748

vs. Previous period-¥7,197

Properties under Management

Debt Financing(FP19 ended May 2021)(End of May 2021)(End of May 2021)

Ratio of area with increased rent

Number of properties

Interest-bearing debt

50 %

44

vs. Previous period+6 pt

vs. End of Nov. 2020—

244.4 billion -¥0.2

vs. End of Nov. 2020¥

billionIncreased amount¥

97million

AUM

vs. Previous period+¥ 6million¥

509.2 billion
79.7%

vs. Previous period

-9pt

46.5%

vs. End of Nov. 2020—

Core asset ratio (UR + TO)

Increase rate

13%

LTV (book value)
vs. End of Nov. 2020

-0pt

Avg. remaining years to maturity

4.2 years

vs. End of Nov. 2020—

vs. End of Nov. 2020

+0.2 years

We will continue to promote engagement withproceeding, even though close attention has to be

In May 2021, we announced an asset-¥0.1 billion

Internal Growth (Offices)

reductions from tenants significantly affected

achieved rent increases for lease contract renewals

Urban Retail properties, on the other hand, has

vs. Previous periodbillionWe have so far promoted a wide range of

upward trend based on the solid financial results

rent gap, and tenant replacement has been steadily¥

initiatives to reduce our environmental impact and to

pandemic, the J-REIT market is maintaining an

Under these circumstances, API has continually¥

As a result of the above-mentioned management,
operating revenue, operating profit, and profit were

Despite remaining concerns regarding COVID-19-¥0.4 billion

have successfully maintained a high rate.

deep appreciation.

environment caused by the impact of COVID-19.

7.2

vs. Previous periodbillionDPU (Note 1)

end of the period under review was 98.1%, and wecontinuous support for which we wish to extend ourin personal consumption expenditures related to the

14.7

and quality that our assets have will not decrease,by COVID-19 and extend our deepest respect to the19th period from December 1, 2020 to May 31, 2021.

¥

We believe that the superiority of the location
and we will make a continuous effort in our operation

Recently we have closed all accounts for the4

recovery phase.

for the earliest possible recovery of those affected
medical professionals involved in the treatment.

ProfitOperating revenue

a strategy for a future upside, while prioritizing

Average rent
¥

22.1k

Appraisal value

vs. Previous period+¥ 0.3k

600.9 billion -¥6.0

0.54%

vs. End of Nov. 2020¥

billionRent gap-6%

Avg. interest rate

Unrealized gain

vs. Previous period

+2pt

¥

95.9 billion-0.02pt

Commitment line

vs. End of Nov. 2020-¥ 5.4billion

vs. End of Nov. 2020¥

21.0 billion

vs. End of Nov. 2020—

maximization of our unitholder.
We would be most grateful for your continued
support and encouragement. Thank you.

(Note 1) F igures for “Internal Growth in Office” are calculated based on all offices of Tokyo Office and Activia Account properties.
Increased amount refers to the amount of the total difference before and after rent revision (at contract renewal or tenant replacement) adjusted to the period covered.
(Note 2) UR and TO refer to our asset category name Urban Retail properties and Tokyo Office properties

5

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3

Market and Outlook, etc.
 PU for FP19 ended May 2021 was higher than the previous forecast despite the state of emergencyDdeclarations that happened twice during the periodInternal growth strategy continues with our location & quality advantage and management expertise inpreparation for market recovery phase for FP20 and FP21
 im at external growth that contributes to unitholder value enhancement, and we plan to expand theArevenue base p ¥121 from the previous forecast due to minimization of the adverse impact from rent reductions,U
which was more than enough to absorb our revenue drop from facility closures during the state of
emergency declarations that happened twice during the period+¥121(¥/unit)10,000

9,401
9,350

+¥121

 PU for FP19 ended May 2021 was ¥9,401, down ¥146 from FP18 due to the impact of COVID-19,
D
including downtime, as well as a decrease in sales-linked rent at hotels and rent relief provided to tenants
during the period when our facilities were closed

vs. initial forecast

Post-pandemic
market recovery

Vs. Forecast

DPU Summary (FP19 Ended May 2021)¥9,547One-off
rent cut
+370

9,500

Downtime, etc.
-279

9,000

9,280

Further internal growth leveraging
API’s advantage of assets and managerial expertise0

External growth aiming forrevenue base expansion

Rent
revision+31

ReducedCancellation expenses
penalty income+89+52¥9,401

Sales-linked
rent
Facility closures
-241
-168

FP18 ended
Nov. 2020
Result

FP19 ended
May 2021
ResultBreakdown of Requests (retail tenants)¥9,547 State of Emergency declaration created rent concession requests, but the number of new overnmentGrequests is falling
Reduced
¥9,401(¥/unit)

9,100

expenses+89

Cancellation
9,500
O ver 50% of tenants that were negotiating agreed to additional lease conditions
which should later giveRent
penalty income
One-off
revision
us internal growth opportunities and / or help us rent
mitigate
underlying
risks
+52
cut
+31
+370

1. Trend in numberof rent
Downtime,
etc. concession requests
-279
30
9,000

From Dec. 2020 to
May 2021

Opportunity for internal growth

Sales-linked 75 requests
rent(excl. 20 cases which were-241 under negotiation
Facilityat the20

beginning of FP19)

closures
-168

10

0

6

FP20
ended
Nov. 2021
Forecast

FP21
ended
May 2022
Forecast

Post
COVID-19

concessions

21.1

21.2

21.3

21.4

21.5

# of
tenants

Temporary rent reduction

71

Reduction agreed

53

Lease cancellation18

No reduction

7

Payment deferral

6

Under negotiation

11

Temporary rent reduction:
Respond individually considering tenant industry and circumstances
Lease cancellation: Impact is not material as cancelled tenants were relatively small businesses

5 tenants

· L ost revenue due to reduced rent might beretrieved in some cases

breakpoint change

FP18 ended
20.9 20.10 20.11 20.12
Nov. 2020
Result# ofrequests

FP19
ended
May 2021
Actual

1 Rent increase after the rentOver 50% of
tenants with rent
reduction agreed toadditional leaseconditions

2 Sales-linked rent newly applied /0

Negotiation results from Dec. 2020 to May 2021

FP19
ended
May 2021
Previous
Forecast

2. Additional lease conditions

28 tenants

· Introducing a sales-linked rent approachenables us to grasp true sales conditions oftenants, which will give us a substantial
advantage in future rent negotiations%
FP1952ended
May 2021
ResultMitigation of underlying risks
3 Extension of non-cancellable
period25 tenants

· E xtended notice period to secure longer
period for leasing activities

4 Lease renewal

20 tenants

· Some agreements switched to fixed-termlease

All tenantswith reduced
rents
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Asset Replacement

1. Outline of the replacement

Combined strategy of Fund-recycling Model and Asset-recycling Model for external growth

Property to be acquired
TO-19

 iming to grow externally to contribute to unitholder value enhancement, with clear assessment ofAmarket situation and identification of the nature of incoming assets

Property to be disposed

Tamachi East Building

UR-2

Tokyu Plaza Akasaka (50% co-ownership interest)

Reshuffle

May 21, 2021

Date of contract

May 21, 2021

Anticipated date of acquisition

Oct. 29, 2021

Anticipated date of disposition

Oct. 29, 2021

Anticipated acquisition price(Appraisal NOI yield (Note 1))¥6,800 million

Anticipated disposition price (Note 4) ¥11,800 million(3.9%)

Assumed book value (Note 4) (Note 5) ¥11,537 million

NOI after depreciation (Note 2)¥244 million

NOI after depreciation (Note 2) (Note 4)¥193 million

3.6%

NOI yield after depreciation (Note 3)

1.7%

Improving NOI & NOI yield after depreciation

Fund-recycling Model

Assetacquisition

Date of contract

NOI yield after depreciation(Note 3)External Growth Strategy

Future utilization of excess cash

(Note 1) Calculated by dividing the net operating income (¥263 million) based on direct capitalization method stated in the appraisal report as of March 31, 2021 by the acquisition price.
(Note 2) F or Tamachi East Building, NOI is the estimated annual net operating income based on the present assumption. For Tokyu Plaza Akasaka, NOI is the total amount of theassumed net operating incomes for the fiscal period ending May 2022 and for the fiscal period ending November 2022 based on the assumption that API continues to holdthe property.
(Note 3) F or Tamachi East Building, NOI yield is calculated by dividing the estimated annual net operating income on the present assumption by the acquisition price of the property(¥6,800 million). For Tokyu Plaza Akasaka, NOI yield is calculated by dividing the amount equivalent to the total of the assumed net operating incomes for the period ending
May 2022 and the period ending November 2022 based on the assumption that API continues to hold the property by the acquisition price of the property (¥11,450 million).
(Note 4) In proportion to the 50% co-ownership interest.
(Note 5) Estimated amount as of October 29, 2021.

Substituting
asset

Fund

1. Assets held by Sponsor (office and retail) ponsor Group owns a number of retail and officeSproperties over 1,600 thousand square meters
primary in major four wards of Tokyo

RetailOffice846k m²

772k m²

1

Portfolio reinforcement

2

Executed the Assetrecycling Model

Asset-recycling Model was executed in an agile way due to oursponsor's support.

3

Future external growth
opportunity

Sponsor plans reconstruction of Tokyu Plaza Akasaka and API obtained apreferential negotiation right for the property after reconstruction.

2. Major development projects by Sponsor
 arge-scale redevelopment projects areLongoing mainly in the greater Shibuya area

Tokyo Port City Takeshiba

Kudan Minami 1-chome
Project (tentative name)
Other
12%

Four central wards of Tokyo

88%(Note) Four central wards of Tokyo: Shibuya-ku, Minato-ku, Chiyoda-ku and Chuo-ku

8

Asset
disposition

In Minato-ku
Completion: May 2020
Office, Retail, residential
GFA: 201k m2

2. Resulting effects
Disposal of a commercial facility mainly comprising a hotel heavily
impacted by COVID-19 crisis and acquiring a Tokyo office property which
is highly stable, located in API’s focus investment area

Asset-recycling Model

In Chiyoda-ku
Completion: July 2022 (plan)
Office, retail
GFA: 68k m2

Shibuya Station Sakuragaoka
Exit District Redevelopment
Project
In Shibuya-ku
Completion: FY2023 (plan)
Office, Retail, residential
GFA: 255k m2
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7Office Status

1. Rent revision status

1. Sales trend in UR properties (vs. two years ago)

Consistently achieved solid rent growth at contract renewals backed by trusting relationships withtenants even amid COVID-19 crisis

(%)
150

 osted record-high for rent increased amount per period at tenant replacements, as we fully utilized thePrent gap

2. T rends in new lease contracts and cancellations(applications & notifications)
New lease contracted(tsubo)1,500

Cancellation notified

Net

Recovery in demand
from tenants seeking
a better location

1,000

3. R
 ent increase at rent
revision and tenant
replacement(FP19 ended May 2021)

Stable demand &supplyRate of increase12.0%

DECKS Tokyo Beach¥28.3mn

Rate of increase15.8%
Increased rent amount

0

100

50

0

3. Sales trend in AA retail properties (vs. two years ago)(%)
150

Market Square Sagamihara

Increased rent amount-1,000Rate of increase22.6%

20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 21.1 21.2 21.3 21.4 21.5

4. Examples of upward rent revision
TO-9

A-PLACE Gotanda¥12.8mnRent
increase+13%

Shiodome Building(2 blocks)

months0AA-10

 his tenant has been here since 2010,T
highly appreciating the location and qualityof the property

Area

1,325 tsubo(3.5 floors)

Umeda Gate Tower he new tenant selected our property toTconsolidate its offices due to the good
location and specific features of thebuilding

 ue to a consistently strong relationshipDwith this tenant, the fifth lease renewal
finalized with a large rent increase backed
by actual-to-market rent gap

Area
69 tsubo

20.6 20.7 20.8 20.9 20.10 20.11 20.12 21.1 21.2 21.3 21.4 21.5

5. Leasing contracts with retail tenants
 sizable area where the prevailing contracts are toA
expire in FP20 ending Nov. 2021 has been takencare of, with new tenants; the rest of the leasematurities are very well diversified

6. Hotel room occupancy
(%)
50

Area

355 tsubo(2 blocks)

2021.11(FP20)

Avg. of FP19
ended May 2021: 22%
33%

25

19%

23%

29% 30%

30%

25%

23%

21%

13%
17%
12%
0
Jun.

GLA (retail)Jul.

Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

18th Period ended Nov. 2020

May

19th Period ended May 2021

7. RevPAR (comp. two years ago)(%)
50

39% 38%

6,290
Tsubo

2022.5(FP21)

31%
25

3,983
Tsubo
1,021
Tsubo

Rent
increase+38.9%

icot Omori

 commercial facility next to residentialA
areas and office areas, located a 3-minute
walk from Omori Station
New lease for a food company making
frozen meals, which are in high demandduring COVID-19 pandemic
Vending machine for frozen meals installedfor visitors to the building0 arge rent growth achieved at tenantLreplacement by bridging rent gap

Rent
increase+14.8%

4. Tenant replacement for an
AA retail property

68,510 tsubo
Avg. DT

A-PLACE Ebisu Minami

12month tenant sales
117% vs.
two years ago

17,668Tsubo

Area

196 tsubo fter the departure of American Eagle
A
Outfitters, the location will be leased by a
new tenant without downtime
The new tenant, a major retailer, agreed to along- and fixed-term leasing contract, which
will provide us with stability
Long- and fixed-term leases will beconcluded for the other street level spaces
as well ealized long-term stable operation by fixingRlease terms in many cases

 n area of 1,325 tsubo to be vacated dueAto tenants’ consolidation of officesucceeded in replacement without
downtime
763 tsubo were filled by an existing tenant,which highly appreciates this property
for its office area extension

 tep-up rent introduced to secure theSopportunity for future internal growthTO-2

Increased rent amount

5. Examples of tenant replacement with higher rentTO-12

 ease renewals with rent increaseLconcluded backed by a robust office spacedemand by start-ups in Gotanda area econd round of lease renewals for bothS
tenants¥6.1mnTenant replacement in AA

Cancellations forcost reduction rose
quickly

100

50Rate of increase4.1%

Tokyu Plaza
Omotesando Harajuku

AA-8¥50.3mn

Rent revision in AA
-500

2. T
 enant replacement for a
UR property
UR-1

Tenant replacement in TO

500

10

Tokyu Plaza Omotesando Harajuku

20.6 20.7 20.8 20.9 20.10 20.11 20.12 21.1 21.2 21.3 21.4 21.5

Rent revision in TO

Increased rent amount-1,500Status of Retail TenantsContract already concluded

6I

2022.11(FP22)

29%

27% 25%

22%

18%

13%

2,399
Tsubo

2023.5(FP23)

18%

Avg. of FP19
ended May 2021: 21%

972
Tsubo
2023.11(FP24)

2024.5(FP25)

1,858
Tsubo

2024.11(FP26)

16%

469
Tsubo
2025.5(FP27)

13%

0
Jun.

Jul.

Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

18th Period ended Nov. 2020

May

19th Period ended May 2021

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Status of Financial Management

List of lenders

API’s inaugural sustainability report was published in June; and website disclosure related to our ESG
initiatives improved with much more enriched contents

Diversified loan amounts and lenders

9%

18 %

18 lenders¥244.4 billion

9%

Initiatives for ESG ~ Sustainability Disclosure ~

24%

9%

Sumitomo Mitsui Trust BankMUFG Bank

Mizuho Bank

Sumitomo Mitsui Banking Corporation

Development Bank of Japan

Mizuho Trust & Banking

Resona Bank

The Norinchukin Bank

The Bank of Fukuoka

Shinkin Central Bank

The 77 BankThe Gunma Bank

Nippon Life Insurance Company

Sumitomo Mitsui Insurance Company

Taiyo Life Insurance Company

THE NISHI-NIPPON CITY BANKTokyo Marine & Nichido Fire Insurance

The Bank of Kyoto

 e aim to further promote our initiatives for ESG along with appropriate disclosures and dialogues withW
stakeholders

1. Publication of sustainability report ortifying information disseminationF
related to sustainability, with clear
messages about API’s views on E(the environment), S (social issues),
and G (governance)

Investment Corporation Bonds

18%

Trends in average period remaining to maturity and average interest rate
 owered average interest rate while maintaining average remaining period to maturity. We will continue toLwork on debt cost reduction(years)6.0

5.0

Average years remaining to maturity (left axis)

0.67

0.65

0.66

0.63

0.59

Average interest rate (right axis)

0.57

0.55

0.56

(%)
1.00

Averageinterest
rate

Fixed
interest
rate ratio

0.75

0.54%

93%

Averageremaining period
to maturity

Long-term
borrowing
ratio

4.4

4.4

4.6

4.5

4.5

4.7

4.4

4.1

years

years

years

years

years

years

years

years

4.2
years

0.25

4.2

years
3.0

2017.5
FP11

2017.11
FP12

2018.5
FP13

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11
FP18

API’s various initiatives are clearly presented in each perspective for the environment, social issues, and governance

0.54
0.50

4.0

2. Improving disclosure on website

2021.5
FP19

0.00

100%

* As of May 31, 2021

Trend in LTV
LTV at the end of the FP19 ended May 2021 was 46.5% (appraisal LTV was 39.3%), being controlled within
the guidance range of 40% to 50%
(%)
50.0

LTV

46.0

Appraisal LTV

46.0
44.7

40.1
40.0

44.8

39.6
38.3

45.6

38.7
37.7

45.5

38.2

46.5

39.1

46.5

39.0

LTV

Appraisal
LTV

46.5%

39.3%

Acquisition
capacity

Rating
(JCR)

46.5

39.3

¥ 37.1billion*at LTV 50%

2017.5
FP11

12

2017.11
FP12

2018.5
FP13

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11FP18

2021.5FP19

3. For local communities
 he “Forest of Omohara” at the rooftop terrace of Tokyu Plaza Omotesando Harajuku, a nature-friendly environment has beenTcreated with tall trees and birdhouses, where biodiversity is featured
 ontributes to the local community by offering unique experiences to neighborhood kindergarten children such as installingC
birdhouses they made as well as organizing vegetable-harvesting eventsAA(Stable)*Purchased by
Bank of Japan* As of May 31, 2021

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API’s Strengths

S

1. Portfolio composition policy

Initiatives for ESG ~ Sustainability Disclosure ~W e intend to maintain a competitive portfolio in the medium to long term by investing primarily in Urban
Retail Properties and Tokyo Office Properties upon careful consideration of location as the most importantfactor, followed by other factors such as size, quality, specifications and suitability of tenants.

4. Green certification (As of the end of May 2021)
Green-certified assets

GRESB Real Estate Assessment
Global rating

Disclosure

5 stars forthree consecutive years

Highest A rank forthree consecutive years

Greencertified
Assets28 properties
66 %

GFA

DBJ Green Building Certification

CASBEE Certification

BELS Assessment

1 property

Urban Retail Properties

Tokyo Office Properties

Activia Account Properties

Urban retail properties that areeasily recognized and locatedeither near major train stations or
popular areas in Tokyo,
government-designated major
cities within Japan’s three major
metropolitan areas and other major
cities in Japan

Office properties within the 23
wards of Tokyo in areas with a highconcentration of offices andlocated near major train stations

To enhance the stability and profitabilityof our portfolio, we rigorously selectcommercial facilities other than Urban
Retail Properties and office building
other than Tokyo Office Properties,
assessing the attributes andcompetitiveness of each property

Target investment ratio(based on acquisition price)

Low-Carbon Small & MediumSized Model Building
S(
A(

)
)

11 properties
13 properties

4 properties
2 properties

A1
1 property

5 properties

70

Target investment ratio% or more(based on acquisition price)

Investment ratio (by category)Tokyo Office Properties(TO)

Investment ratio (by area)

Urban Retail
Properties
(UR)

40.6%

39.0%

1 property

OfficeRetail

52.6%

47.4%

Other major cities
of Japan2%

Report to the Board of Directorsof the Asset Manager*This approval may be madebefore or after Investment
Committee resolution

69%

27%
Other wardsof Tokyo

Activia Account
Properties (AA)

2%

20.3%
Core asset ratio

ReporttoAPI

Prior approval by
the Investment
Corporation’s
Board of Directors*If the case is arelated-party transaction

Approval by each relevant
Chief Division Officer*Compliance Officer may order suspensionof deliberations

Deliberation and resolution by
Investment Committee

Deliberation andresolution byCompliance Committee*If the case is arelated-party transaction

Approval by Compliance
Officer

Proposal by responsible
department

Resolved only with two-thirds majority vote including the votes of the Compliance Officer and all the outside experts

6 central wardsof TokyoThree metropolitan
areas

5. Effective decision-making process roperty acquisition transaction with related-parties requires a resolution by the Compliance Committee toPavoid conflicts of interest, etc. This structure should protect interests of unitholders

30% or less

79.7% (UR + TO)

Asset size ¥509.2 billion

2. Utilizing sponsor’s value chainW e utilize the support and capabilities of Tokyu Fudosan Holdings Group companies’ value chain during
the various phases of managing our assets, including at acquisition of competitive assets (external growth)and by maximizing the profitability of our assets under management (internal growth).
Listed on the 1st section of Tokyo Stock Exchange with security code 3289,
Operating revenue: ¥963.2bn, Operating profit: ¥78.3bn (Result FY2020)

Residence

Hotel

Wellness

OfficeCommercial
properties

Logistics
properties

RenewableenergyOverseabusiness

Building
management

Brokerage

RetailResolved in unanimous vote of all members present including an outside expert

14

15

Portfolio Map
UR-1

Tokyu Plaza
Omotesando Harajuku

UR-2

Tokyu Plaza
Akasaka (Note 1)

UR-3

Q plaza EBISU

UR-9

A-FLAGSHIBUYA

UR-11

A-FLAG
KOTTO DORI

UR-12

A-FLAG
BIJUTSUKAN DORI

UR-13

A-FLAGDAIKANYAMA WEST

UR-15

DECKS Tokyo
Beach

UR-16

Tokyu Plaza
Ginza (Land)

UR-17

Q plaza
Harajuku

TO-1

TLC Ebisu
Building

TO-2

A-PLACE
Ebisu Minami

TO-3

A-PLACE Yoyogi

TO-4

A-PLACE
AoyamaTO-5

Luogo Shiodome

TO-6

TAMACHISQUARE (Land)

TO-7

A-PLACE
Ikebukuro

TO-8

A-PLACE
Shinbashi

TO-9

A-PLACE
GotandaTO-10

A-PLACE
Shinagawa

TO-11

OSAKI
WIZTOWER

TO-12

Shiodome
Building

TO-13

A-PLACE
Ebisu Higashi

TO-14

A-PLACE
Shibuya Konnoh

TO-15

A-PLACE
Gotanda Ekimae

TO-16

A-PLACE
Shinagawa Higashi

TO-18

Ebisu Prime Square

TO-19

Tamachi East Building(Scheduled) (Note 2)

Kita Ward

Arakawa Ward

Toshima Ward

Ikebukuro

Nippori

7

Taito Ward
Bunkyo Ward

Takadanobaba

NakanoWard

Shinjuku Ward

Ueno

Asakusa

Akihabara

Chiyoda Ward

SumidaWard

Shinjuku

Yotsuya3

2

Harajuku
Shibuya
Ward

17

4

1

11 12

16
8

5

Chuo
Ward

Shinbashi

Minato Ward

14

13

Akasaka
MitsukeGaienmae
Omotesando

9

Shibuya

Tokyo

Tokyo Tower

13 18
3 1
2 Ebisu

TamachiMeguroWard

12Hamamatsucho

6
19

Takanawa Gateway

Meguro

10 16

9

15

GotandaOsaki

Shinagawa

15

11

Shinagawa
Ward

Oimachi

URBAN RETAILTOKYO OFFICE

16(Note 1)	Tokyu Plaza Akasaka (50% co-ownership interest) is scheduled
to be disposed of on October 29, 2021.
(Note 2)	Tamachi East Building is scheduled to be acquired on October
29, 2021.

17

Portfolio List

Portfolio Map

AA-4

icot Mizonokuchi

AA-5

icot Tama Center

AA-8

Greater Tokyo Area

icot Omori

5
9Shin-Yokohama

AA-9Market Square
Sagamihara

AA-11

CategoryTokyo

4(As of May 31, 2021)

8

11

A-PLACE
Bashamichi

8
UR-8

A-FLAG SAPPORO

Property
number

Property name
Tokyu Plaza Omotesando Harajuku

Location

AA-12

Commercial Mall
HakataACTIVIAACCOUNT

SapporoAA-6

HakataA-PLACE
Kanayama

6
12

5
Kyoto

NagoyaShin-Kobe

1
10 Shin-Osaka
7
10
14
13
2

7

Kyoto Karasuma
Parking Building

UR-7

Kobe Kyu Kyoryuchi
25Bankan

UR-10

Q plaza
SHINSAIBASHI

UR-14

A-FLAG KITASHINSAIBASHI

Hyogo/Osaka/Kyoto

AA-1

Amagasaki Q's
MALL (Land)

AA-2

icot Nakamozu

AA-7

Osaka Nakanoshima
Building

AA-10

Umeda Gate
Tower

AA-13

EDGE
Shinsaibashi

Occupancy
rate(Note 2)

Jingumae, Shibuya-ku, Tokyo

45,0008.8%

4,918.43

Mar. 2012

UR-2

Tokyu Plaza Akasaka (Note 2)

Nagatacho, Chiyoda-ku, Tokyo

11,4502.2%

16,609.75

Sep. 1969

96.8%

UR-3

Q plaza EBISU

Ebisu, Shibuya-ku, Tokyo

8,430

1.7%

4,024.88

Aug. 2008

100.0%

UR-5

Kyoto Karasuma Parking Building

Motohonenjicho, Nakagyo-ku, Kyoto

8,860

1.7%

21,616.04

Jul. 2006

100.0%

UR-7

Kobe Kyu Kyoryuchi 25Bankan

Kyomachi, Chuo-ku, Kobe City, Hyogo

21,3304.2%

19,653.90

Jan. 2010

100.0%UR-8

A-FLAG SAPPOROMinami-Yonjo-Nishi, Chuo-ku, Sapporo
City, Hokkaido

4,410

0.9%

21,229.16

May 1980

96.0%

UR-9

A-FLAG SHIBUYA

Udagawacho, Shibuya-ku, Tokyo

6,370

1.3%

3,403.07

Jun. 1988

100.0%

UR-10 Q plaza SHINSAIBASHI

Shinsaibashi-suji, Chuo-ku, Osaka City,
Osaka

13,3502.6%

2,820.23

Nov. 2007

100.0%

UR-11 A-FLAG KOTTO DORI

Minami-Aoyama, Minato-ku, Tokyo

4,370

0.9%

2,656.53

Jan. 1992

88.9%

UR-12 A-FLAG BIJUTSUKAN DORI

Minami-Aoyama, Minato-ku, Tokyo

4,700

0.9%

1,994.65

Dec. 1998

100.0%

UR-13 A-FLAG DAIKANYAMA WEST

Sarugakucho, Shibuya-ku, Tokyo

2,280

0.4%

2,579.08

Apr. 1992

100.0%

UR-14 A-FLAG KITA SHINSAIBASHI

Minami-Senba, Chuo-ku, Osaka City,
Osaka

4,725

0.9%

2,538.13

Mar. 2008

100.0%

UR-15 DECKS Tokyo Beach (Note 2)

Daiba, Minato-ku, Tokyo

12,7402.5%

16,119.47

Jun. 1996
Nov. 2000(Extension)

94.9%

UR-16 Tokyu Plaza Ginza (Land) (Note 2)

Ginza, Chuo-ku, Tokyo

37,5007.4%

1,130.04—

100.0%

UR-17 Q plaza HARAJUKU (Note 2)

Jingumae, Shibuya-ku, Tokyo

13,2002.6%

3,378.49

Mar. 2015

95.2%

198,715

39.0%

124,671.85

—

97.8%

99.4%

TO-1

TLC Ebisu Building

Ebisu, Shibuya-ku, Tokyo

7,400

1.5%

7,342.60

Mar. 1993

88.7%

TO-2

A-PLACE Ebisu Minami

Ebisu-Minami, Shibuya-ku, Tokyo

9,640

1.9%

7,950.49

Jan. 1995

100.0%TO-3

A-PLACE Yoyogi

Sendagaya, Shibuya-ku, Tokyo

4,070

0.8%

3,106.17

Feb. 2007

100.0%TO-4

A-PLACE Aoyama

Kita-Aoyama, Minato-ku, Tokyo

8,790

1.7%

7,303.69

Sep. 1966

100.0%

TO-5

Luogo Shiodome

Higashi-Shinbashi, Minato-ku, Tokyo

4,540

0.9%

4,476.35

Jul. 2004

87.3%

TO-6

TAMACHI SQUARE (Land) (Note 3)

Shiba, Minato-ku, Tokyo

2,338

0.5%

1,287.96—

100.0%TO-7

A-PLACE Ikebukuro

Minami-Ikebukuro,
Toshima-ku, Tokyo

3,990

0.8%

3,409.73

Oct. 2011

100.0%TO-8

A-PLACE Shinbashi

Shinbashi, Minato-ku, Tokyo

5,650

1.1%

5,054.19

Mar. 1999

100.0%TO-9

A-PLACE Gotanda

Nishi-Gotanda, Shinagawa-ku, Tokyo

5,730

1.1%

4,028.69

Feb. 2012

100.0%

TO-10 A-PLACE Shinagawa

Konan, Minato-ku, Tokyo

3,800

0.7%

2,986.36

Sep. 1991

100.0%

TO-11 OSAKI WIZTOWER

Osaki, Shinagawa-ku, Tokyo

10,6902.1%

7,193.28

Jan. 2014

100.0%

TO-12 Shiodome Building (Note 2)

Kaigan, Minato-ku, Tokyo

71,60014.1%

28,136.05

Dec. 2007

99.5%

TO-13 A-PLACE Ebisu Higashi

Higashi, Shibuya-ku, Tokyo

7,072

1.4%

4,010.69

Jan. 1992

100.0%

TO-14 A-PLACE Shibuya Konnoh

Shibuya, Shibuya-ku, Tokyo

4,810

0.9%

3,010.53

Mar. 1992

100.0%

TO-15 A-PLACE Gotanda Ekimae

Nishi-Gotanda, Shinagawa-ku, Tokyo

7,280

1.4%

4,333.64

Nov. 1993

100.0%

3.7%

Aug. 1985(Main building)
14,658.98
Sep. 1999(Annex)

95.2%

TO-16 A-PLACE Shinagawa Higashi

Konan, Minato-ku, Tokyo

TO-18 Ebisu Prime Square (Note 2)

Hiroo, Shibuya-ku, Tokyo

Tokyo Office properties

UR-5

Completion(Note 1)

UR-1

Urban Retail properties

URBAN RETAIL

Acquisition price Investment Total leasable(In millions of yen)ratio
area (m2)

18,80030,7006.0%

18,063.03

Jan. 1997

89.6%

206,900

40.6%

126,352.43

—

96.7%

AA-1 Amagasaki Q’s MALL (Land)

Shioe, Amagasaki City, Hyogo

12,0002.4%

27,465.44—

100.0%

AA-2 icot Nakamozu

Nakamozucho, Kita-ku,
Sakai City, Osaka

8,500

1.7%

28,098.02

Jun. 2007

100.0%

AA-4 icot Mizonokuchi

Mizonokuchi, Takatsu-ku, Kawasaki
City, Kanagawa

2,710

0.5%

14,032.05

Jul. 1998

100.0%

AA-5 icot Tama Center

Ochiai, Tama City, Tokyo

2,840

0.6%

5,181.58

Mar. 2006

100.0%

AA-6 A-PLACE Kanayama

Kanayama, Naka-ku,
Nagoya City, Aichi

6,980

1.4%

9,314.90

Feb. 2009100.0%

AA-7 Osaka Nakanoshima Building

Nakanoshima, Kita-ku,
Osaka City, Osaka

11,1002.2%

20,226.77

Mar. 1984

99.5%

AA-8 icot Omori

Omorikita, Ota-ku, Tokyo

5,790

1.1%

6,209.78

Mar. 2007

100.0%

AA-9 Market Square Sagamihara

Shimokuzawa, Chuo-ku,
Sagamihara City, Kanagawa

4,820

0.9%

15,152.42

Jun. 2014

100.0%

AA-10 Umeda Gate Tower

Tsurunocho, Kita-ku, Osaka City, Osaka

19,0003.7%

13,566.95

Jan. 2010

100.0%

AA-11 A-PLACE Bashamichi

Honcho, Naka-ku, Yokohama City,
Kanagawa

3,930

0.8%

9,710.91

May 1975

100.0%

AA-12 Commercial Mall Hakata

Tokojimachi, Hakata-ku, Fukuoka City,
Fukuoka

6,100

1.2%

9,612.88

Nov. 2005

87.0%

AA-13 EDGE Shinsaibashi

Nishi-Shinsaibashi, Chuo-ku, Osaka
City, Osaka

19,8003.9%

15,897.10

Apr. 1986

100.0%

Activia Account properties

103,570

20.3%

174,468.80

—

99.2%

Total

509,185

100.0%

425,493.08

—

98.1%

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

18

19

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

Asset Management Report for the 19th Fiscal Period(Semi-Annual Report)

Fiscal periodBusiness period

From December 1, 2020 to May 31, 2021

III.

Statements of Operations

IV.

Statements of Changes in Unitholders’ Equity

14,843

15,542

15,073

15,073

14,715[13,472][14,063][14,009][14,009][13,765]

Operating expenses(millions of yen)

6,243

6,862

6,778

6,845

6,614

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

[4,973][5,464][5,470][5,588]

5,369

Operating profit(millions of yen)

8,599

8,680

8,228

8,228

8,101

Ordinary profit(millions of yen)

7,726

7,818

7,363

7,363

7,250

Profit(millions of yen)

7,725

7,817

7,363

7,363

7,249

Net assets(millions of yen)

256,085

256,198

255,700

255,705

255,581

V.

Statements of Cash Distributions

VI.

Statements of Cash Flows

VII.
VIII.

Notes to Financial Statements
Schedule of Financial Statements
Independent Auditor’s Report21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo(%)[14.4][0.0][－0.2][0.0][－0.0](millions of yen)

514,359

515,480

525,686

525,378

525,379(%)[15.5]

[0.2]

[2.0]

[－0.1][0.0](millions of yen)

248,370

248,370

248,370

248,370

248,370

Number of units issued and outstanding(units)771,224

771,224

771,224

771,224

771,224

Net assets per unit

(yen)

332,050

332,196

331,558

331,558

331,397

Total distributions(millions of yen)

7,725

7,817

7,362

7,362

7,250

(yen)

10,118

10,136

9,547

9,547

9,400

Cash distributions per unit

(yen)

10,017

10,137

9,508

9,547

9,401

[Earnings distributions per unit][Distributions per unit in excess ofearnings](yen)[10,003][10,137][9,504][9,514][9,386]

(yen)

[14]

[―]

[4]

[33]

[15]

Basic earnings per unit

Activia Properties Inc.

19th period(millions of yen)

Unitholders’ capital

Balance Sheets

18th period(millions of yen)

[Change from the previous period]II.

17th period[Lease business revenue]

Total assets

Asset Management Report

16th period

Operating revenue[Change from the previous period]I.

15th period

From December 1, 2018 From June 1, 2019 From December 1, 2019 From June 1, 2020 From December 1, 2020
to May 31, 2019
to November 30, 2019
to May 31, 2020
to November 30, 2020
to May 31, 2021

(Note4)(Note1)

Ordinary profit to total assets(Note2)

(%)

1.6

1.5

1.4

1.4

1.4

Return on unitholders’ equity(Note2)

(%)

3.2

3.1

2.9

2.9

2.8

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

49.8

49.7

48.7

48.7

48.6

(Note2)(%)[－0.4][－0.1]

[0.1]

[0.1]

[－0.1]

Payout ratio(Note2)

(%)

99.8

100.0

99.7

99.7

99.8

(properties)[Other reference]
Number of properties

45

44

44

44

44

2

(m )

415,167.22

414,008.41

425,490.09

425,490.09

425,493.08

(%)

99.5

99.8

98.9

98.9

98.1

Depreciation(millions of yen)

1,294

1,298

1,335

1,335

1,352

Capital expenditure(millions of yen)

413

640

650

650

678

(millions of yen)

10,827

11,034

10,803

10,803

10,705

Total leasable area

(Note3)

Occupancy rate at end of period

NOI(Note2)(Note1) Basic earnings per unit is calculated by dividing profit by the daily weighted average number of investment units issued and outstanding (763,508 units,771,224 units,771,224 units,771,224units and 771,224units for the 15th, 16th, 17th 18th and 19th fiscal periods, respectively).
(Note2) The indicators are calculated as follows:
Ordinary profit to total assets: Ordinary profit ÷ Average total assets × 100; Average total assets = (Total assets at beginning of period + Total assets at end of period) ÷ 2
Return on unitholders’ equity: Profit ÷ Average net assets × 100; Average net assets = (Net assets at beginning of period + Net assets at end of period) ÷ 2
Unitholders’ equity to total assets: Net assets at end of period ÷ Total assets at end of period × 100
Payout ratio: Total distribution amount (excluding distributions in excess of earnings) ÷ Profit × 100 (rounded down to the first decimal place)
NOI: Rental operating income (Lease business revenue + Other lease business revenue – Expenses related to rental business) + Depreciation + Loss on retirement of noncurrent assets(Note3) The total leasable area is equal to the gross floor area of leasable space in each property excluding properties for which we acquire land only, based on the leaseagreements for building or floor plans as of the end of each fiscal period. Total leasable area for properties for which only land is acquired is based on the lease agreement
for land or land plans as of the end of each fiscal period. As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Shiodome Building, Q
plaza HARAJUKU, Tokyu Plaza Ginza (Land) and Ebisu Prime Square, the figures are in proportion to a pro rata share of co-ownership interests of each property (75%,50%, 49%, 35%, 60%, 30% and 51% respectively).
(Note4) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not considered.

2
20

21

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

2) Investment Environment and Investment Performance
In the Japanese economy in the fiscal period under review, there was increasing weakness mainly in personal consumption
expenditures related to the service industry despite the continuing trends of recovery in some areas amid the lingering difficult
environment caused by the impact of COVID-19.
With respect to the environment surrounding retail properties, although we had seen signs of recovery in consumer sentiment,
due to a state of emergency having been declared twice, there has been a decline recently in travel, leisure and other service
consumption as well as in expenditures for clothing, cosmetics and other items related to going out.
In the rental office market, both occupancy rates and rents have held to high levels particularly in the five central wards ofTokyo (Chiyoda-ku, Minato-ku, Chuo-ku, Shibuya-ku and Shinjuku-ku). Nevertheless, there is a continuing trend of officeconsolidations and relocations to smaller offices due to the stagnant economic activity caused by COVID-19. Meanwhile, theaverage vacancy rate in the five central wards of Tokyo as of May 31, 2021, according to data published by Miki Shoji Co.,
Ltd., was 5.90% an increase of 1.57 percentage points from the period ended November 30, 2020. Rent levels have dropped forten consecutive months starting in August 2020. The average rent per tsubo (about 3.3 square meters) in the five central wardsof Tokyo as of May 31, 2021, was ¥21,249. Even in major cities outside Tokyo, vacancy rates are trending upward and rent
levels have fallen moderately or remain unchanged.
Despite remaining concerns regarding the COVID-19 pandemic, the J-REIT market is maintaining an upward trend based on
the solid financial results overall of each security.
The Investment Corporation has continued to maintain and improve its portfolio in accordance with the basic asset management
policy set forth in the Articles of Incorporation. Consequently, total assets held by the Investment Corporation at the end of the
fiscal period under review were 44 properties (with the total acquisition price of ¥509,185 million) with the total leasable areaof 425,493.08 m2 (128,709 tsubo).

3) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” with the aim of maximizing
medium- and long-term unitholder value, the Investment Corporation has been promoting various initiatives with its sights set
on lowering environmental loads and contributing to our nearby surroundings and local communities, thereby extending beyond
considerations such as location, use, size and qualities. In July 2019, as material issues that the Investment Corporation needs toaddress, we released quantitative targets encompassing a wider range of performance benchmarks from an environmental
standpoint, and also clearly stated practical management policy to such ends. In addition, we are striving daily to achieve ourbasic objective of cutting unit energy consumption, etc. by an annual average of 1% over the medium to long term. Initiatives
carried out in the fiscal period under review include the creation of an environmental management system operation manual in
December 2020 for the asset management company TLC REIT Management Inc. and efforts of the Investment Corporation tocontinually lower environmental loads by establishing environmental targets (Plan), understanding the results (Do), analyzing
the differences between the actual and expected results (Check) and implementing measures and improvements (Act). In
addition, the lighting was upgraded to LED lighting at common areas of Luogo Shiodome and A-PLACE Ebisu Higashi, somecommon areas of DECKS Tokyo Beach, A-PLACE Shinagawa and Ebisu Prime Square, and some private areas of A-PLACE
Ebisu Minami, A-PLACE Shinagawa Higashi, Ebisu Prime Square, A-PLACE Bashamichi and EDGE Shinsaibashi.
Furthermore, the elevator at A-FLAG SHIBUYA was replaced with an elevator that uses the latest control system and highly

efficient motors using permanent magnets, and the energy-saving performance was improved by upgrading to LED ceilinglighting.
Moreover, we continue to engage in annual initiatives geared to acquiring green building certifications, and during the fiscal
period under review, we have acquired the BELS certifications for Q plaza EBISU (two stars). As such, a total of 28 of ourproperties have acquired green building certification, which amounted to 65.8% of our holdings calculated on the basis of grossfloor area (as of May 31, 2021).
In addition, electric bicycle sharing was newly introduced at Q plaza SHINSAIBASHI while a “Social Art Museum” exhibit ofart drawn by residents of a welfare facility in the city was held at Commercial Mall Hakata utilizing a temporarily enclosed area
after a tenant had moved out. The Investment Corporation will contribute to achieving a sustainable society by engaging in suchinitiatives geared to the environment and society.

4) Overview of Financing
In the fiscal period under review, with the aims of diversifying repayment dates on debt, extending the average maturity, anddiversifying means of financing, the Investment Corporation issued unsecured investment corporation bonds of ¥1,300 million
on February 9, 2021, and used the funds to cover repayment of short-term borrowings. The Investment Corporation alsoborrowed ¥12,200 million largely in order to cover repayment of borrowings that had come due, and worked to otherwise
maintain a stable financial base through ongoing moves that have included diversifying repayment dates. As a result, as of theend of the fiscal period under review, the balance of interest-bearing debt was ¥244,150 million (borrowings of ¥221,350
million and investment corporation bonds of ¥22,800 million). The ratio of interest-bearing debt to total assets (LTV = Balanceof interest-bearing debt / Total assets x 100) was 46.5% as of the end of the fiscal period under review. The long-term debt ratio
and the ratio of fixed-interest debt to total interest-bearing debt were 100.0% and 92.6%, respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review is as follows. This
investment unit does not have a credit rating provided or made available for inspection by a credit rating agency or one
scheduled to be provided or made available for inspection by a credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

Rating

Forecast

Japan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable5) Overview of Financial Results and Distributions
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥14,715 million,¥8,101 million, and ¥7,250 million, respectively, for the fiscal period under review, and profit was ¥7,249 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles of Incorporation),
the decision was made with respect to paying distributions of profits of ¥7,238,708,464, which is the entire amount of the net
profit defined in Article 136, Paragraph 1 of the Investment Trust Act, with such amount excluding a fraction of less than ¥1 of
distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included in tax
deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including
subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). In addition, distributions in excess ofearnings shall be made in an amount decided by the Investment Corporation and equivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item 30 (b) of the Regulations on Accountings of Investment Corporations), taking into
account effects of the deduction in net assets on distribution amounts. During the fiscal period under review, the Investment
Corporation has accordingly decided to distribute ¥11,568,360 as distributions related to allowance for temporary difference
adjustments, calculated as the amount equivalent to ¥11,111,618, which is calculated by deducting ¥28,535,288 of temporary
difference adjustments (refers to stipulations of Article 2, Paragraph 2, Item 30 of the Regulations on Accountings ofInvestment Corporations) from deferred losses on hedges of ¥39,646,906. Consequently, distributions per investment unit
resulted in ¥9,401.

4
22

23

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

Summary

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

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

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

Fluctuation in Market Price of the Investment Securities

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

Number of total
investment units issued

Total unitholders’ capital(millions of yen)

Increase

Increase

Total

Remarks

Total

Fiscal periodBusiness period

15th period

16th period

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

(yen)

17th period

18th period

19th period

From December 1, 2019
to May 31, 2020

From June 1, 2020
to November 30, 2020

From December 1, 2020
to May 31, 2021

400

400

200

200

(Note 1)Highest492,500

589,000

582,000

426,000

515,000

204,100

204,500

90,83491,034(Note 2)Lowest432,000

461,000

227,400

335,000

390,500

762

205,262

339

91,373(Note 3)

(4) Distributions, etc.

43,100248,362

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

251,0622,044

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

277,132

1,915

150,770(Note 7)277,132554,264—

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

19,152

169,922(Note 9)3,520

599,654

1,610

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

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

665,2142,116

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

13,793

216,026(Note 13)2,400

698,704

1,064

217,091(Note 14)

67,320766,024

29,036

246,127(Note 15)5,200

771,2242,242

248,370(Note 16)

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

As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥14,715 million,¥8,101 million, and ¥7,250 million, respectively, for the fiscal period under review, and profit was ¥7,249 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles of Incorporation),
the decision was made with respect to paying distributions of profits of ¥7,238,708,464, which is the entire amount of the net
profit defined in Article 136, Paragraph 1 of the Investment Trust Act, with such amount excluding a fraction of less than ¥1 of
distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included in tax
deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including
subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). In addition, distributions in excess ofearnings shall be made in an amount decided by the Investment Corporation and equivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item 30 (b) of the Regulations on Accountings of Investment Corporations), taking into
account effects of the deduction in net assets on distribution amounts. During the fiscal period under review, the Investment
Corporation has accordingly decided to distribute ¥11,568,360 as distributions related to allowance for temporary difference
adjustments, calculated as the amount equivalent to ¥11,111,618, which is calculated by deducting ¥28,535,288 of temporary
difference adjustments (refers to stipulations of Article 2, Paragraph 2, Item 30 of the Regulations on Accountings ofInvestment Corporations) from deferred losses on hedges of ¥39,646,906. Consequently, distributions per investment unit
resulted in ¥9,401.
Fiscal periodBusiness period

Unappropriated retained earnings

15th period

16th period

17th period

18th period

19th period

From December 1, 2018 From June 1, 2019 From December 1, 2019 From June 1, 2020 From December 1, 2020
to May 31, 2019
to November 30, 2019
to May 31, 2020
to November 30, 2020
to May 31, 2021
¥7,726,143 thousand¥7,829,267 thousand¥7,333,243 thousand¥7,366,549 thousand¥7,278,928 thousand

Retained earnings¥11,589 thousand¥572 thousand¥3,530 thousand¥29,124 thousand¥40,219 thousand

Total distributions¥7,725,350 thousand¥7,817,897 thousand¥7,332,797 thousand¥7,362,875 thousand¥7,250,276 thousand[¥10,017][¥10,137][¥9,508][¥9,547][¥9,401]¥7,714,553 thousand¥7,817,897 thousand¥7,329,712 thousand¥7,337,425 thousand¥7,238,708 thousand[¥10,003][¥10,137][¥9,504][¥9,514][¥9,386]¥10,797 thousand¥－thousand¥3,084 thousand¥25,450 thousand¥11,568 thousand

[¥14]

[¥－]

[¥4]

[¥33]

[¥15]

¥10,797 thousand¥－thousand¥3,084 thousand¥25,450 thousand¥11,568 thousand

[¥14]

[¥－]

[¥4]

[¥33]

[¥15]

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

[¥－]

[¥－]

[¥－]

[¥－]

[¥－]

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

6
24

25

(5) Future Investment Policy and Issues to Address
Although the level of economic activity is expected to recover as the impact of COVID-19 gradually eases, there is great
uncertainty regarding the outlook as it may change depending on the increase or decrease of the number of new infection cases
and its impact on the economies in Japan and overseas.
With respect to the environment surrounding retail properties, despite the continuing difficult conditions due to the recent
requests to reduce operating hours, the decrease in numbers of overseas visitor arrivals to Japan, etc., a modest recovery trend is
expected due to increased vaccinations, etc. In the rental office market, despite concerns that vacancy rates will continue to rise
and rent levels will continue to fall, there has been a drop in the supply of new office properties in 2021. Therefore, we believethat property in prime locations will continue to be resilient. Despite lingering uncertainty concerning the outlook for the
economy and conditions in the real estate leasing market, we expect long-term inflow of funds into the J-REIT market due to its
relatively stable earnings, high financial soundness and attractive 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 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.

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

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

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

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

(6) Significant Matters after Book Closing
1. Issuance of New Investment Units and Secondary Offering of Investment Units
API decided the issuance of new investment units and secondary offering of investment units at the board of directors meeting
held on August 24, 2021. The offer price per unit,etc. shall be determined at API’s board of directors meeting to be held on a day(the "Pricing Date") between September 1, 2021 and September 6, 2021.
(1) Issuance of new investment units through a public offering in domestic and international markets
Number of new investment units to be issued
49,030units(Note1)
Offering price

To be determined

Total offering price

To be determined

Paid-in amountTo be determined (Note2)

Total paid-in amountTo be determined

Payment date

To be determined (Note3)(Note1) This is the total number of the Domestic Primary Offering and the International Offering mainly in the United States, Europe and
Asia.
(Note2) Paid-in amount shall be determined on the Pricing Date.
(Note3) It shall be four business days after the Pricing Date.

(2) Issuance of new investment units by way of third-party allotment(Note1)
Number of new investment units to be issued
2,500units
Paid-in amountTo be determined (Note2)

Total paid-in amountTo be determined

Payment date

September 28, 2021

Allottee

Nomura Securities Co., Ltd.

(Note1) This issuance shall be carried out in order to ensure that Nomura Securities Co., Ltd. will acquire the investment units necessary
for returning the Borrowed Units in connection with secondary offering through over-allotment. If no application for subscription ismade for all or part of number of new investment units issued, it may result in a decrease in the number of investment units issued
through a third-party allocation due to the forfeiture of subscription rights or issuance of new investment units may not take place atall.
(Note2) Paid-in amount shall be the same price as Paid-in amount for the Domestic Primary Offering.

2. Acquisition of Properties
On August 24, 2021, API decided to acquire the real estate trust beneficiary interest for the following three properties (hereinafterreferred to as "asset to be acquired") and entered into agreements with the acquisition date of September 10, 2021.The planned
acquisition price (the purchase price stated in the Sales and Purchase Contract of Beneficiary Rights of Real Estate in Trust) does
not include other acquisition related costs such as direct expenses for acquisition, property-related taxes and consumption
taxes.Figures are rounded down to the nearest million yen.
(TO-20) Meguro Tokyu Building
Type of assets

Trust beneficiary interest

Acquisition price¥16,300 million

Scheduled acquisition date

September 10, 2021

Location

13-17, Kami-osaki 2-chome, Shinagawa-ku, Tokyo

Use

Offices, retailLand area

1,776.41 m2

Gross floor area

8,813.74 m2

Structure

Steel framed / 7 floors above groundMonth and year of completion

December 2002

Ownership

Land:
Owned
Building: Owned(TO-21) Q plaza Shinjuku-3chome
Type of assets

Trust beneficiary interest

Acquisition price¥18,400 million

8
26

27

Scheduled acquisition date

September 10, 2021

Location

5-6 Shinjuku 3-chome, Shinjuku-ku, Tokyo

Use

RetailLand area

748.59 m2(UR-2) Tokyu Plaza Akasaka
Type of assets

Beneficial interests in trust

Scheduled transfer price¥11,800 million
Scheduled delivery date (Note)

Gross floor area

6,316.65 m2

Structure

SRC, Steel framed / 8 floors above and 2 floors undergroundMonth and year of completion

September 1992

Location

14-3, Nagata-cho 2-chome, Chiyoda-ku, Tokyo

Land:
Owned
Building: Owned

Use

Hotel, office, retail and parking lots

Land area

5,103.57 m2

Gross floor area

51,491.66 m2

Structure

SRC/ 14 floors above and 3 floors undergroundOwnership(TO-22) A-PLACE Shibuya Nampeidai(Note)
Type of assets

Trust beneficiary interest

Acquisition price¥8,800 million

Scheduled acquisition date

September 10, 2021

Location

2-17 Nanpeidai-machi, Shibuya-ku, Tokyo

Use

Offices, bank

Land area

901.79 m2

Gross floor area

6,133.08 m2

Structure

SRC / 8 floors above and 1 floor undergroundMonth and year of completion

July 1989 (additional construction February 1992)

October 29, 2021

Month and year of completion
September 1969
OwnershipLand:
Building:

Owned (50% co-ownership interest)
Owned (50% co-ownership interest)(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).

Ownership

Land:
Owned
Building: Owned(Note) The name of this property is currently “Nikko Shibuya Nanpeidai Building,” but is scheduled to be renamed to thestated name after acquisition.

< Reference Information >a. Acquisition of Properties
The Investment Corporation plans to use the funds from the property transfer in “b. Transfer of Properties” to acquire
property listed below in accordance with the basic asset management policy set forth in the Articles of Incorporation.
(TO-19) A-PLACE Tamachi East (Note 2)
Type of assets
Beneficial interests in trust
Acquisition price¥6,800 million

Scheduled acquisition date (Note 1)
October 29, 2021
Location

2-16, Shibaura 3-chome, Minato-ku, Tokyo

Use

Office, residence, parking

Land area

970.13 m2

Gross floor area

6,065.08 m2

Structure

Steel frame, steel-framed reinforced concrete / 10 floors above and 1 floor undergroundMonth and year of completion
April 2003
OwnershipLand:
Building:

Owned
Owned

(Note 1) 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 monthafter the conclusion of the contract, or any other contract similar thereto).
(Note 2) The name of this property is currently “Tamachi East Building,” but is scheduled to be renamed to the stated name after
acquisition.

b.

Transfer of Properties
The Investment Corporation plans to transfer property listed below in accordance with the basic asset management policy set
forth in the Articles of Incorporation.

10
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29

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

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

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

15th period
As of May31, 2019(Note)

Number of unitholders

16th period
As of November
30, 2019

17th period
As of May31, 2020

18th period
As of November
30, 2020

19th period
As of May31, 2021

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

771,224

771,224

771,224

771,224

771,224¥248,370(persons)

7,680¥248,370¥248,370

6,914

7,758

¥248,370
7,542¥248,370
7,160(Note) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not(2) Matters Relating to Investment Units

The top 10 unitholders as of the end of the fiscal period under review are as follows:
Number of units
owned

Percentage of total units issued (%)(Note)

Custody Bank of Japan, Ltd. (Trust accounts)

172,464

22.36

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

132,020

17.11

Tokyu Land Corporation

81,137

10.52

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

31,432

4.07

Custody Bank of Japan, Ltd. (Securities investment trust
accounts)

21,293

2.76

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

19,613

2.54

SMBC Nikko Securities Inc.

11,795

1.52

JAPAN SECURITIES FINANCE CO., LTD.

10,635

1.37

STATE STREET BANK WEST CLIENT - TREATY 505234(Standing proxy:Mizuho Bank, Ltd.)

9,101

Executive
Director(Note 1)Supervisory
Directors(Note 1)

Independent
Auditorconsidered.

Name

Title

1.18

Mizuho Securities Japan Co., Ltd.

8,267

1.07

Total

497,757

64.54

Name of officer, etc.

Major concurrent post, etc.

Kazushi Sato

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

Yonosuke Yamada

Yamada, Goya and Suzuki Law Office
Managing Partner

Yoshinori Ariga

Ariga Yoshinori Accounting Office
Managing Partner

Ernst & Young ShinNihon
LLC－

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

－

3,300

13,700(Note 2)

(Note 1) Executive director or supervisory directors do not hold any investment units of the Investment Corporation under their or another person’s name.
Supervisory directors may serve as directors of companies other than those mentioned above, but there are no mutual business interests whatsoever
between such companies and the Investment Corporation.
(Note 2) Compensation for the independent auditor includes fees for preparing comfort letters related to the issuance of new investment corporation bonds in
February 2021 .

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

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

Name
TLC REIT Management Inc.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (unitholder registry administration, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting service, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administrative service)

Sumitomo Mitsui Trust Bank, Limited

General administrator (investment corporation bond service)

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

12
30

31

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

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

Type of assets

Category

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)

Urban Retail Properties

―

―

―

―

Tokyo Office Properties

―

―

―

―

Activia Account Properties

―

―

―

―

Subtotal

―

―

―

―

Urban Retail Properties

198,46537.8

198,195

37.7

Tokyo Office Properties

204,67339.0

204,632

38.9

Activia Account Properties

102,437

19.5

102,196

19.5(Note 1)

Real estate

Real estate in trust

19th period
As of May 31, 2021

Subtotal(Note 1)

505,57796.2

505,024

96.1

Total real estate, etc.

505,57796.2

505,024

96.1

Deposits and other assets

19,801

3.8

20,355

3.9

525,378100.0

525,379100.0(505,577)(96.2)(505,024)(96.1)

Total assets (Note 2)

Urban Retail Properties

18th period
As of November 30, 2020

Leasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)

Occupancy
rate (%)(Note 3)

Ratio of rental
revenue tototal rental
revenues (%)

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

Kyoto Karasuma Parking
Building
Kobe Kyu Kyoryuchi
25Bankan

678 Motohonenjicho, Nakagyo-ku, Kyoto
City, Kyoto

28,136.05

27,993.23

99.5

10.2

Office44,573

4,918.43

4,891.23

99.4

6.4

RetailTokyu Plaza Ginza (Land) (Note 4)

37,8951,130.04

1,130.04

100.0

3.9

RetailEbisu Prime Square

31,04418,063.03

16,176.70

89.6

5.5

OfficeKobe Kyu Kyoryuchi 25Bankan

20,20919,653.90

19,653.90

100.0

4.7

RetailEDGE Shinsaibashi

19,991

15,897.10

15,897.10

100.0

3.9

OfficeUmeda Gate Tower

19,107

13,566.95

13,566.95

100.0

3.1

OfficeA-PLACE Shinagawa Higashi

18,79014,658.98

13,956.02

95.2

3.8

OfficeQ plaza SHINSAIBASHI

13,3802,820.23

2,820.23

100.0

2.3

RetailQ plaza HARAJUKU (Note 4)

13,313

3,378.49

3,216.91

95.2

1.6

Retail288,808

122,223.20

119,302.31

97.6

45.5

25 Kyomachi, Chuo-ku, Kobe City, Hyogo

A-FLAG SAPPORO

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

A-FLAG SHIBUYA

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

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

1-10 Shinsaibashi-suji 1-chome, Chuo-ku,
Osaka City, Osaka
4-40, Minami-Aoyama 5-chome, Minatoku, Tokyo
3-16, Minami-Aoyama 6-chome, Minatoku, Tokyo
11-6, Sarugakucho, Shibuya-ku, Tokyo
10-11, Minami Senba 3-chome, Chuo-ku,
Osaka city, Osaka

DECKS Tokyo Beach (Note 4)

6-1, Daiba 1-chome, Minato-ku, Tokyo

Tokyu Plaza Ginza (Land)(Note 4)2-1, Ginza 5-chome, Chuo-ku, Tokyo

A-PLACE Ebisu Minami

A-PLACE Aoyama
Luogo Shiodome

Major use

70,502(Note 3)Q plaza EBISU

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

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

Subtotal

Tokyo Office Properties

Book value at endof period(millions of yen)

Tokyu Plaza Omotesando
Harajuku (Note 4)(Note 4)

Tokyu Plaza Akasaka (Note 4)

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

A-PLACE Yoyogi

Shiodome Building (Note 4)(Note 2)30-3 Jingu-mae 4-chome, Shibuya-ku, Tokyo

TLC Ebisu Building

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

Total

Tokyu Plaza Omotesando
Harajuku (Note 4)

Q plaza HARAJUKU (Note 4)(2) Major Assets Owned(Note 1)

Location

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

Property name

Property name18-18 Ebisu 1-chome, Shibuya-ku, Tokyo
15-1 Ebisu-minami 1-chome, Shibuya-ku,
Tokyo
23-15 Sendagaya 5-chome, Shibuya-ku,
Tokyo
11-3 Kita-Aoyama 2-chome, Minato-ku,Tokyo
3-3 Higashi-Shinbashi 2-chome, Minato-ku,
Tokyo

TAMACHI SQUARE (Land)

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

A-PLACE Ikebukuro

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

A-PLACE Shinbashi

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

A-PLACE Gotanda

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

A-PLACE Shinagawa

8-40, Konan 1-chome, Minato-ku, TokyoOSAKI WIZTOWER

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

Shiodome Building (Note 4)
A-PLACE Ebisu Higashi(Note 5)
A-PLACE Shibuya Konnoh(Note 5)

2-20 Kaigan 1-chome, Minato-ku, Tokyo
13-11 Higashi 3-chome, Shibuya-ku, Tokyo
3-1 Shibuya 3-chome, Shibuya-ku, Tokyo

A-PLACE Gotanda Ekimae

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

A-PLACE Shinagawa Higashi

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

Ebisu Prime Square (Note 4)

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

Subtotal

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

Total leasable area(m2)
(Note 1)

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

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

4,918.43

61,27544,573

16,609.75

10,80011,5704,024.88

11,7008,160

21,616.04

10,4008,660

19,653.90

26,80020,20921,229.16

7,670

4,780

3,403.07

7,910

6,358

2,820.23

14,30013,3802,656.53

4,850

4,388

1,994.65

4,860

4,708

2,579.08

2,300

2,433

2,538.13

4,670

4,830

16,119.47

12,642

12,932

1,130.04

39,00037,895

3,378.49

12,80013,313

124,671.85

231,977

198,195

7,342.60

11,9007,160

7,950.49

15,9009,449

3,106.17

4,880

3,832

7,303.69

10,7008,535

4,476.35

6,390

4,349

1,287.96

2,840

2,362

3,409.73

5,470

3,654

5,054.19

7,330

5,751

4,028.69

8,180

5,401

2,986.36

6,250

3,773

7,193.28

14,60010,471

28,136.05

78,05070,5024,010.69

7,670

7,013

3,010.53

5,700

4,921

4,333.64

7,810

7,617

14,658.98

21,60018,79018,063.03

31,30031,044

126,352.43

246,570

204,632

Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements forbuilding or floor plans as of May 31, 2021 and leasable space for properties for which we acquire only land, based on lease agreements for land or landplans as of May 31, 2021.
Leased area refers to the leased area of each property based on lease agreements as of May 31, 2021. For properties with master lease agreements,
leased area refers to leased areas of each property and is actually leased based on sublease agreements with end-tenants.
Occupancy rate refers to the percentage of total leased area for each property to total leasable area for each property as of May 31, 2021, rounding down
to the first decimal place.
As for Shiodome Building, Tokyu Plaza Omotesando Harajuku,Tokyu Plaza Ginza (Land), Ebisu Prime Square and Q plaza HARAJUKU, the figures
are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (35%, 75%, 30%, 51% and 60%, respectively).

14
32

33

Amagasaki Q’s MALL (Land)
icot Nakamozu

Activia Account Properties

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

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

Market Square Sagamihara

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

Asset type

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

Total leasable area(m2)
(Note 1)

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

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

27,465.44

14,20012,11328,098.02

10,6007,977

14,032.05

3,240

2,587

5,181.58

3,950

2,558

9,314.90

8,600

20,226.77
6,209.78(Note 5)

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

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Tokyu Plaza
Omotesando Harajuku(Note 4)

33

98.6

1,129

7.5

32

99.34

934

6.4

6,132

Tokyu Plaza Akasaka(Note 4)

90

97.1

576

3.8

90

96.8

509

3.5

16,700

11,133Q plaza EBISU

4

100.0

217

1.4

4

100.0

270

1.8

6,860

5,676

Kyoto Karasuma
Parking Building

2

100.0

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

Kobe Kyu Kyoryuchi
25Bankan

7

100.0

637

4.2

7

100.0

691

4.7

A-FLAG SAPPORO

15

98.3

525

3.5

12

96.0

396

2.7

A-FLAG SHIBUYA

2

100.0

197

1.3

2

100.0

215

1.5

Q plaza
SHINSAIBASHI

6

100.0

320

2.1

6

100.0

345

2.3

A-FLAG KOTTO
DORI

8

100.0

119

0.8

7

88.9

116

0.8

A-FLAG
BIJUTSUKAN DORI

4

100.0

111

0.7

4

100.0

124

0.8

A-FLAGDAIKANYAMA
WEST

1

100.0

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

A-FLAG KITASHINSAIBASHI

5

100.0

91

0.6

5

100.0

94

0.6

DECKS Tokyo Beach(Note 4)

77

96.8

488

3.2

77

94.9

440

3.0

Tokyu Plaza Ginza(Land) (Note 4)

1

100.0

581

3.9

1

100.0

581

3.9

Q plaza HARAJUKU(Note 4)

16

100.0

215

1.4

14

95.2

229

1.6

Subtotal

271

98.9

－

－

264

97.8

－

－

TLC Ebisu Building

11

93.2

330

2.2

11

88.7

319

2.2

A-PLACE Ebisu
Minami

9

92.3

385

2.6

10

100.0

361

2.5

A-PLACE Yoyogi

3

100.0

138

0.9

4

100.0

127

0.9

A-PLACE Aoyama

8

100.0

316

2.1

8

100.0

299

2.0

Luogo Shiodome

7

100.0

189

1.3

6

87.3

172

1.2

TAMACHI SQUARE(Land)

1

100.0

62

0.4

1

100.0

62

0.4

A-PLACE Ikebukuro

1

100.0

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

A-PLACE Shinbashi

10

100.0

207

1.4

10

100.0

207

1.4

A-PLACE Gotanda

11

100.0

201

1.3

11

100.0

201

1.4

A-PLACE Shinagawa

8

100.0

138

0.9

8

100.0

142

1.0

OSAKI WIZTOWER

5

100.0

351

2.3

6

100.0

372

2.5

Shiodome Building(Note 4)

38

99.7

1,546

10.3

36

99.5

1,506

10.2

A-PLACE Ebisu
Higashi

7

100.0

187

1.2

7

100.0

188

1.3

A-PLACE Shibuya
Konnoh

4

100.0

131

0.9

4

100.0

134

0.9

A-PLACE Gotanda
Ekimae

11

88.6

197

1.3

11

100.0

170

1.2

A-PLACE Shinagawa
Higashi

8

100.0

562

3.7

7

95.2

563

3.8

Ebisu Prime
Square(Note 4)

102

94.2

824

5.5

103

89.6

804

5.5

Subtotal

244

97.8

－

－

244

96.7

－

－

5,010

4,591

21,40019,1079,710.91

4,760

4,036

9,612.88

5,960

6,289

15,897.10

21,10019,991

Subtotal

174,468.80

122,380

102,196

Total

425,493.08

600,927

505,024

Commercial Mall Hakata
EDGE Shinsaibashi

19th period(From December 1, 2020 to May 31, 2021)

Occupancy
rate(%)(Note 2)

13,566.95

A-PLACE Bashamichi

18th period(From June 1, 2020 to November 30, 2020)

Numberoftenants(Note 1)

15,152.42

Umeda Gate Tower

Changes in key figures in the rental business (figures by property owned and under management by the Investment Corporation)

Property nameUrban Retail Properties

Property nameTokyo Office Properties(Note 1) Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of May 31, 2021 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of May 31, 2021.
(Note 2) The appraisal of each property is commissioned to the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd.,
Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K.. Assessed value at end of period stands for the appraised value described in each real estateappraisal report, with May 31, 2021 taken as the point of evaluation.
(Note 3) Book value at end of period stands for the book value minus depreciation as of May 31, 2021, rounded down to the nearest ¥ million.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU, Shiodome Building andEbisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (75%, 50%, 49%, 30%, 60%,
35%, and 51%, respectively).
(Note 5) The calculation of total leasable area for icot Omori includes part of an external bicycle parking lot (approximately 21 m2) and part of a common area on the second
floor (approximately 28 m2).

16
34

35

18th period(From June 1, 2020 to November 30, 2020)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Amagasaki Q’s
MALL (Land)

1

100.0

356

2.4

icot Nakamozu

2

100.0

310

2.1

icot Mizonokuchi

1

100.0

(Note 5)

icot Tama Center

10

100.0

139

A-PLACE Kanayama

21

100.0

Osaka Nakanoshima
Building

39

icot Omori

8

Activia Account Properties

Property name

4. Capital Expenditure for Assets under Management

19th period(From December 1, 2020 to May 31, 2021)
Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues
(%)

1

100.0

356

2.4

2

100.0

310

2.1

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

0.9

10

100.0

142

1.0

303

2.0

21

100.0

288

2.0

100.0

551

3.7

38

99.5

548

3.7

100.0

208

1.4

8

100.0

220

1.5

Market Square
Sagamihara

3

100.0

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

Umeda Gate Tower

17

100.0

469

3.1

17

100.0

460

3.1

A-PLACE Bashamichi

36

100.0

199

1.3

36

100.0

196

1.3

Commercial Mall
Hakata

18

92.7

209

1.4

17

87.0

192

1.3

EDGE Shinsaibashi

22

100.0

507

3.4

21

100.0

578

3.9

Subtotal

178

99.6

－

－

175

99.2

－

－

Total

711

98.9

98.9

100.0

683

98.1

14,715100.0(Note 1) The number of tenants refers to the total number of tenants for each property at the end of each fiscal period, based on each lease agreement. In the casewhere a master lease agreement is in place, the number of end tenants is counted. In the case of a property for which only land is acquired, the total numberof tenants on the land is counted.
(Note 2) Occupancy rate refers to the percentage of leased area to leasable area for each property as of the end of each fiscal period, rounding down to the firstdecimal place.
(Note 3) Rental revenue includes other rental revenue.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, A-FLAG Akasaka, DECKS Tokyo Beach, Tokyu plaza Ginza (Land), Q plaza
HARAJUKU, Shiodome Building and Ebisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownershipinterest of each property (75%, 50%, 50%, 49%, 30%, 60%, 35% and 51%, respectively).
(Note 5) Rental revenue and the ratio of rental revenue to total rental revenues are not disclosed, as consent from tenants has not been obtained.

(4) Details of Specified Transaction
The outstanding contract amount and fair value of specified transactions as of the end of the fiscal period under review
are as follows:(Thousands of yen)Classification

Over-the-counter

Transaction
Interest rate swaps(Receive floating pay fixed)
Total

Notional contract amount (Note 1)
Over 1 year

Fair value(1) Scheduled Capital Expenditure

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

30,140,000(39,646)

30,140,000

30,140,000(39,646)(Note 1) The contract amount of interest rate swaps is presented based on its notional principal.
(Note 2) The statement of the fair value is omitted for those transactions that satisfy requirements for special treatment based on accounting standards forfinancial instruments.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

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

Not applicable for countries and regions other than Japan.

Scheduled period

TotalamountPayment forthe period

Totalamountpaid

Replacement of substationequipment (First period)

From March 2022
to November 2022

560

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of substationequipment (Second period)

From November 2022
to May 2023

470

–

–

281

112

112

(Shibuya, Tokyo)

Large-scale repair work
(First period and Second
period)icot Nakamozu(Sakai, Osaka)

Large-scale repair work (SC From May 2021
Building)
to October 2021

189

–

–

Replacement of air
conditioning units (Second
period)

140

–

–

140

–

–

74

–

–

59

–

–

27

–

–

–

–

24

–

–

20

–

–

–

–

11

–

–

10

–

–

A-PLACE Ebisu Minami

Luogo Shiodome(Minato, Tokyo)
Osaka Nakanoshima
Building(Osaka, Osaka)
A-FLAG SHIBUYA(Shibuya, Tokyo)
TLC Ebisu Building(Shibuya, Tokyo)

From December 2020
to November 2021

From December 2020
to November 2021

Replacement of two

From July 2021

emergency elevators

to November 2022

Renewal of escalators

From January 2022
to March 2022

Renovation work for

From May 2022

mechanical parking facility

to May 2022

Maintenance of mechanical
EDGE Shinsaibashi(Osaka, Osaka)

parking equipment (vertical From February 2021
rotary equipment)

to November 2021

Replacement of main chains
Shiodome Building(Minato, Tokyo)

Installation of LED lighting From April 2021
(Second period)to August 2021

Replacement of horizontal
A-PLACE Ebisu Minami drainage piping of air(Shibuya, Tokyo)
conditioning units (Second
period)A-PLACE Yoyogi(Shibuya, Tokyo)
Tokyu Plaza Akasaka(Chiyoda, Tokyo)
Kobe Kyu Kyoryuchi
25Bankan(6) Ownership of Assets by Country and Region

PurposeA-FLAG SAPPORO(Sapporo, Hokkaido)(Note 2) (Note 3)

30,140,000

Estimated construction cost (Millions ofyen)(Kobe, Hyogo)
A-FLAG KITASHINSAIBASHI(Osaka, Osaka)

Installation of LED lighting
Corrective actions based onmatters pointed out during
legally required inspections
Renovation of multilevelcar park system (drive
section)Replacement of substationequipment

From April 2021
to November 2021
From June 2021
to August 2021
From October 2021
to October 2021
From November 2021
to November 2021

From November 2021
to November 2021

26
(Note)

17(Note)(Note)The shown estimated construction cost with regard to Shiodome Building and Tokyu Plaza Akasaka is the amount equivalent
to the ratio of the Investment Corporation’s co-ownership beneficial interests in real estate trust (35% and 50%, respectively).

18
36

37

5. Expenses and Liabilities(2) Capital Expenditure during the Period
For assets held by the Investment Corporation in the 18th fiscal period, construction work conducted by the Investment Corporation during the
fiscal period ended May 31, 2021 that falls into capital expenditure is as follows. The capital expenditure for the fiscal period ended May31,
2021 amounted to ¥678 million, and repair and maintenance expenses that were accounted for as expense in the fiscal period ended May 31,
2021 came to ¥384 million. On aggregate, construction work of ¥1,062 million was carried out during the fiscal period.
Name of real property(Location)
Luogo Shiodome(Minato, Tokyo)
A-PLACE Bashamichi(Yokohama, Kanagawa)
A-PLACE Gotanda Ekimae(Shinagawa, Tokyo)
DECKS Tokyo Beach(Minato, Tokyo)
Shiodome Building(Minato, Tokyo)
Luogo Shiodome(Minato, Tokyo)
A-FLAG SAPPORO(Sapporo, Hokkaido)
Osaka Nakanoshima Building(Osaka, Osaka)
Ebisu Prime Square(Shibuya, Tokyo)
Tokyu Plaza Omotesando
Harajuku(Shibuya, Tokyo)
A-FLAG SHIBUYA(Shibuya, Tokyo)

PurposeReplacement of air conditioning units

PeriodFrom December 2020
to May 2021

(First period)
Large-scale repair work

Large-scale repair work

Renovation of 3rd floor Seaside Deck
Installation of LED lighting (First

From June 2020
to January 2021
From July 2020
to February 2021
From January 2021
to May 2021
From October 2020
to March 2021

period)Installation of LED lighting in private
areas
Repair of mechanical parking
equipment No. 3
Repair work of substation equipment
according to facility planning
Replacement of residential tower’s

Renovation work for roof deck

103

From February 2021

(Second period)to March 2021

Renewal of elevator controls

From January 2021
to January 2021

Other

(Thousands of yen)
19th period(From December 1, 2020
to May 31, 2021)

1,120,034

1,104,682(b) Asset custody fees

14,905

14,884(c) Administrative service fees

37,28037,015(d) Directors’ compensation

3,300

3,300

(e) Other operating expenses

81,227

84,835

1,256,747

1,244,717

Total

49
(Note)
26(Note)

20

From October 2020

18th period(From June 1, 2020
to November 30, 2020)82

From March 2021
to April 2021

to March 2021

calorimeter

124

21

to March 2021

Item(a) Asset management fees

Construction cost
(Millions of yen)

From February 2021
to May 2021

From October 2020

(1) Details of Expenses Related to Asset Management, etc.

1612(Note)

10(Note)

10
200

Total

678

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

20
38

39

(2) Borrowings

The status of borrowings from financial institutions as of May 31, 2021 is as follows:
Category
LenderSumitomo Mitsui
Trust Bank, Limited
Short- Mizuho Bank, Ltd.
MUFG Bank, Ltd.
term
loans
Sumitomo Mitsui
payable Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Total
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Draw
down
date
January 10,
2020
November30, 2020

December19, 2013

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Nippon Life
Insurance Company
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

January
10, 2014

BeginningbalanceEndingbalanceMaturitydate

Use offunds

Remarks0.18079%

January 12,2021(Note 3)

Unsecured,
non-guaranteed

2,000,000—

2,000,000
1,000,000——

506,000—

506,000
506,000
6,518,000———

1,060,000—

1.07980%

1,060,000—

1.07980%

1,060,000—

1.07980%

0.20464%

1,060,000—

1.07980%

530,000—

1.07980%

530,000—

1.07980%

1,340,000—

1.07856%

1,340,000—

1.07856%

1,340,000—

1.07856%

1,340,000—

1.07856%

670,000—

1.07856%

670,000—

1.07856%

500,000—

0.25000%

3,920,000

3,920,000

January
10, 2019

3,920,000
1,970,000

3,920,000
1,970,000

1,970,000

1,970,000

January 5,
2018

January 9,
2015

January
10, 2020

January
10, 2020

1,970,000

1,970,000

320,000

320,000

640,000
320,000

640,000
320,000

160,000

160,000

160,000

160,000

840,000

840,000

0.22246%

0.36607%

July 12,2021

0.41931%0.73690%840,000

840,000

0.73690%840,000

0.73690%840,000

840,000

0.73690%420,000

420,000

0.73690%0.73690%420,000

420,000
1,420,000

1,420,000
720,000

1,420,000
720,000

720,000

720,000

720,000

720,000

December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
January
10, 2021
January
10, 2021
January
10, 2021
January
10, 2021
January
10, 2021
January
10, 2021
March 31,
2021
July 12,2021

840,000

1,420,000

November30, 2021

December28, 2021

January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,2022(Note 4)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 4)

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

Unsecured,
non-guaranteed(Note 3)

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

Unsecured,
non-guaranteed

Maturitydate

Use offunds

Remarks

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

2,000,000

2,000,000

500,000

500,000

400,000

400,000

400,000

400,000

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui
Trust Bank, Limited

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.
(Note 6)200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui
Banking Corporation

100,000

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

1,560,000

1,560,000

1,560,000

1,560,000

1,560,000

1,560,000

0.44835%(Note 4)160,000

160,000

June 15,2022

Unsecured,
non-guaranteed

160,000

160,000

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

March 31,2015

March 31,2017

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

Longtermloanspayable(Note 2)

(Unit: Thousands of yen)

Averageinterest
rate(Note 1)EndingbalanceMizuho Trust &Banking Co.,LTD.

Unsecured,
non-guaranteed

Draw
down
date

Beginningbalance

Lender(Unit: Thousands of yen)

Averageinterest
rate(Note 1)March 31,2017

January
10, 2019

Category

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

June 15,2015

December16, 2015

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

June 13,2018

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

0.21746%

January11,2022(Note 4)

Unsecured,
non-guaranteed

0.31571%

January11,2022(Note 4)

Unsecured,
non-guaranteed

22
40

41

Category
LenderSumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.

Draw
down
date

January 9,
2019

September
30, 2015

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.

March 30,
2018

October 6,
2016

June 15,2015

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Taiyo Life
Insurance Company
Mitsui Sumitomo
Insurance
Company, Limited
Resona Bank,
Limited.
The Gunma Bank,Ltd.

December16, 2015

June 13,2017

March 31,2017
March 31,2020
March 31,2020

BeginningbalanceEndingbalance

620,000

620,000

620,000
620,000

620,000
620,000

320,000

320,000

320,000

320,000

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

750,000

750,000

750,000
750,000

750,000
750,000

375,000

375,000

375,000

375,000

800,000

800,000

1,600,000
800,000

1,600,000
800,000

400,000

400,000

Averageinterest
rate(Note 1)

0.38236%(Unit: Thousands of yen)
Maturity
date

January10,2023

Use offunds(Note 4)

Category

Remarks

LenderUnsecured,
non-guaranteed

March 30,2023

0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)

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

0.44804%

0.38472%

March 30,
2023

April 6,2023

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

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

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

400,000

400,000

1,500,000

1,500,000

1.06316%

1,500,000

1,500,000

1.06316%

1,500,000

1,500,000

1.06316%

1,500,000

1,500,000

1.06316%

625,000

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

625,000

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

1,250,000

1,250,000

2,500,000
1,250,000

2,500,000
1,250,000

0.46400%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

500,000

500,000
0.35998%

September
29, 2023(Note 4)

Unsecured,
non-guaranteed

500,000

500,000

1,500,000

1,500,000

0.19371%

500,000

500,000

0.23371%

June 15,2023
June 15,2023
June 15,2023
June 15,2023

September
30, 2023
September
30, 2023(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)

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

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)Endingbalance

Averageinterest
rate(Note 1)1,400,000

1,400,000

0.78362%

MUFG Bank, Ltd.
(Note 6)

1,400,000

1,400,000

0.78362%

1,400,000

1,400,000

0.78362%

1,400,000

1,400,000

0.78362%

Sumitomo Mitsui
Banking
Corporation

700,000

700,000

0.78362%

Development Bankof Japan Inc.

700,000

700,000

0.78362%

MUFG Bank, Ltd.

Unsecured,
non-guaranteed

Beginningbalance

Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.

0.61330%(Note 5)

Draw
down
date

Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank,
Limited.
The Bank ofFukuoka, Ltd.
Shinkin Central
Bank
The Norinchukin
Bank
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Nippon Life
Insurance Company

January
12, 2016

January
10, 2020

March 31,2017

December16, 2015

June 13,
2016

June 13,2016

September
21, 2016

March 31,2021

1,420,000

1,420,000

1,420,000
720,000

1,420,000
720,000

720,000

720,000(Unit: Thousands of yen)
Maturity
date
January12,2024January12,2024January12,2024January12,2024January12,2024January
12,2024

Use offunds

Remarks(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

0.34459%

January12,2024(Note 3)

Unsecured,
non-guaranteed

0.41380%

March 29,2024

(Note 4)

Unsecured,
non-guaranteed

June 17,2024(Note 3)

Unsecured,
non-guaranteed

720,000

720,000

2,000,000

2,000,000

1,500,000

1,500,000

1,000,000

1,000,000

500,000

500,000

500,000

500,000

1,200,000

1,200,000

0.85377%

1,200,000

1,200,000

0.85377%

1,200,000

1,200,000

0.85377%

1,200,000

1,200,000

0.85377%

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

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

600,000

600,000

0.85377%

June 17,2024

600,000

600,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

0.33150%(Note 5)June 17,2024(Note 4)

Unsecured,
non-guaranteed

0.36900%(Note 5)

December13, 2024(Note 4)

Unsecured,
non-guaranteed

0.54094%

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

0.25000%

March 31,2025

(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000

3,000,000
1,500,000

3,000,000
1,500,000

1,500,000

1,500,000

3,000,000
1,500,000

3,000,000
1,500,000

1,200,000

1,200,000

2,400,000
1,200,000

2,400,000
1,200,000

600,000

600,000

600,000

600,000—

500,000(Note 3)

Unsecured,
non-guaranteed

24
42

43

Category
LenderSumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank,
Limited.
The Bank ofFukuoka, Ltd.
Shinkin Central
Bank
The Norinchukin
Bank
THE NISHINIPPON CITY
BANK, LTD.
The Bank of
Kyoto,Ltd.
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Long-term Development Bankof Japan Inc.
loans
payable Mizuho Trust &(Note 2) Banking Co.,LTD.
Shinkin Central
Bank
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Banking
Corporation
Mizuho Trust &Banking Co.,LTD.
Resona Bank,
Limited.
The Bank ofFukuoka, Ltd.
The Norinchukin
BankThe 77 Bank, Ltd.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co.,LTD.
The Norinchukin
Bank

Draw
down
date

March 16,2017

March 16,2018

March 30,
2018

August 29,
2019

September
21, 2016

December13, 2016

March 7,2019

June 13,2017

June 28,2019

BeginningbalanceEndingbalance1,800,000

1,800,000

3,600,000
1,800,000

3,600,000
1,800,000

900,000

Averageinterest
rate(Note 1)0.70169%

900,000

900,000

900,000

440,000

440,000

440,000

440,000

440,000

440,000

440,000

440,000

440,000

440,000

500,000

500,000

300,000

300,000

500,000

500,000

500,000
500,000

500,000
500,000

250,000

250,000

250,000

250,000

1,500,000

1,500,000

1,500,000

1,500,000

2,100,000

2,100,000

4,200,000
2,100,000

4,200,000
2,100,000

1,050,000

1,050,000

1,050,000

1,050,000

6,000,000

6,000,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

600,000

600,000

1,750,000

1,750,000

3,500,000
1,750,000

3,500,000
1,750,000

1,200,000

1,200,000

1,200,000

1,200,000

0.46453%

0.58630%

0.09313%0.61942%0.69796%0.35765%0.71015%0.23004%(Unit: Thousands of yen)
Maturity
date

September
16, 2025

September
16, 2025

September
16, 2025

February27,
2026

March 19,2026

June 12,2026

September
7,2026

December
14, 2026

December28, 2026

Use offunds(Note 3)(Note 4)(Note 4)(Note 4)(Note 3)(Note 4)(Note 4)(Note 4)(Note 4)

Remarks

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Category
LenderSumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo MitsuiLong-term
Bankingloans
Corporation
payable(Note 2) Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
The Bank ofFukuoka, Ltd.
The Norinchukin
Bank
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.

Draw
down
date

January 9,
2018

January
10, 2020

June 13,2018

January 5,
2018

April 19,2019

April 19,2019
March 31,2020

January
10, 2019

January
10, 2019

May 31,2019

BeginningbalanceEndingbalance

780,000

780,000

1,560,000
780,000

1,560,000
780,000

390,000

390,000

390,000

390,000

950,000

950,000

950,000
950,000

950,000
950,000

475,000

475,000

475,000

475,000

2,200,000

2,200,000

2,200,000
2,200,000

2,200,000
2,200,000

200,000

200,000

200,000

200,000

320,000

320,000

640,000
320,000

640,000
320,000

160,000

160,000

160,000

160,000

1,000,000

1,000,000

1,000,000
1,000,000

1,000,000
1,000,000

500,000

500,000

500,000

500,000

1,000,000

1,000,000

500,000

500,000

3,210,000

3,210,000

3,210,000
1,610,000

3,210,000
1,610,000

1,610,000

1,610,000

1,610,000

1,610,000

1,165,000

1,165,000

1,165,000
590,000

1,165,000
590,000

590,000

590,000

590,000

590,000(Unit: Thousands of yen)

Averageinterest
rate(Note 1)Maturitydate

Use offunds

Remarks

0.70698%

January 9,2027(Note 4)

Unsecured,
non-guaranteed

0.43349%

January12,2027(Note 4)

Unsecured,
non-guaranteed

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

0.54375%(Note 5)

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

0.55800%(Note 5)January11,2028(Note 3)

Unsecured,
non-guaranteed

0.65264%January11,2028(Note 3)

Unsecured,
non-guaranteed

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

26
44

45

(Unit: Thousands of yen)
Category
LenderSumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Mizuho Trust &Banking Co.,LTD.
The Bank ofFukuoka, Ltd.
The 77 Bank, Ltd.
THE NISHINIPPON CITY
BANK, LTD.
LongDevelopment Bank
termof Japan Inc.
loans
Sumitomo Mitsui
payableTrust Bank,(Note 2)
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking
Corporation
Development Bankof Japan Inc.
Total

Draw
down
date

July 9,2019

January
12, 2021

June 13,2019

December
21,2020

January
12, 2021

BeginningbalanceEndingbalance

420,000

420,000

420,000
420,000

420,000
420,000

220,000

220,000

220,000

220,000—

1,500,000—

1,500,000—

1,000,000—

1,000,000

6,000,000

6,000,000—

1,320,000——

1,320,000
1,320,000—

670,000—

670,000—

1,670,000——

1,670,000
1,670,000—

845,000—

845,000

216,350,000

221,350,000

Averageinterest
rate(Note 1)Maturity
date

0.49281%

July 10,2028

0.27935%

0.56511%0.45403%

July 12,2028

December
13,2028

December
21,2029

Use offunds

Remarks(Note 4)

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

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Investment Corporation Bonds
Name of bonds

Issuance date

Balance as ofNovember30, 2020(millions ofyen)

January
12, 2030(Note 4)

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

Interestrate(%)

The 3rd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

2,000

The 4th Unsecured Investment
Corporation Bond

February 3, 2016

2,000

The 6th Unsecured Investment
Corporation Bond

February 2, 2017

The 7th Unsecured Investment
Corporation Bond

Maturity date

Repayment
method0.726

April 21,2025

Lump sum(Note)

2,000

0.770

February 3,
2026

Lump sum(Note)

1,000

1,000

0.480

February 2,
2027

Lump sum(Note)

February 2, 2017

1,000

1,000

0.810

February 2,
2032

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

February 13,
2018

1,000

1,000

0.160

August 12,
2022

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

February 13,
2018

1,000

1,000

1.050

February 12,
2038

Lump sum(Note)

The 10th Unsecured Investment
Corporation Bond (Green Bond)

July 9, 2019

5,000

5,000

0.220 July 9, 2024

Lump sum(Note)

The 11th Unsecured Investment
Corporation Bond (Green Bond)

November 18,
2019

4,000

4,000

0.530

November16, 2029

Lump sum(Note)

The 12th Unsecured Investment
October 21, 2020
Corporation Bond (Green Bond)

4,500

4,500

0.510

October 21,
2030

Lump sum(Note)

—

1,300

0.750

February 8,
2036

Lump sum(Note)

21,50022,800

The 13th Unsecured Investment
Corporation Bond
0.45882%

Balance as ofMay
31, 2021(millions of
yen)

Total

February 9, 2021

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

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

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

28
46

47

6. Buying and Selling during the Period

7. Accounting Status(1) Buying and Selling, etc., of Real Estate and Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets(1) Assets, Liabilities, Principal, and Profit and Loss

Not applicable

Please refer to “II. Balance Sheets,” “III. Statements of Operations,” “IV. Statements of Changes in Unitholders’ Equity,” “V.
Statements of Cash Distributions” and “VII. Notes to Financial Statements.”(2) Buying and Selling, etc. of Other Assets
Not applicable. In addition, the Investment Corporation’s assets other than the above-mentioned real estate and assetbacked securities are mostly comprised of direct bank deposits and bank deposits in trust.

(3) Survey of Prices, etc. of Specified Assets(2) Changes in the Calculation Method of Depreciation Expenses
Not applicable

1) Real Estate
Not applicable(3) Changes in the Evaluation Method of Real Estate, etc. and Infrastructure Assets, etc.

2) Others

Not applicableNot applicable

8. Other(4) Transactions between Interested Parties
Not applicable(1) Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company

Commissions Paid
Category

Not applicable
Total amount (A)(thousands of yen)

Property management fee

472,365

Building management fee

781,226

Construction management fee

11,693

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

Amount (B)(thousands of yen)
235,576(B) / (A)(%)49.9(2) Announcements
Not applicable

119,336

25.3

64,9292,980
656,857
65,322

13.7
0.6
84.1
45.5

(3) Status of Companies Owing Real Estate Overseas

3,001

25.7

(4) Status of Real Estate Owned by Companies Owning Real Estate Overseas

1,470

12.6

Other management operation
expenses

60,671Tokyu Community Corp.

8,226

13.6

Other lease business expenses

282,797

Tokyu Community Corp.
Tokyu Land Corporation
Tokyu Archiects & Engineers INC.
HANDS LAB INC.

58,480
3,585
,814
790

20.7
1.3
0.3
0.3

Not applicableNot applicable(5) Other
For the purpose of this report, the numbers for amounts below unit and percentages are rounded to units, unless otherwise
mentioned specifically.

(Note 1) The term “Interested parties” refers to interested parties of Asset Management Companies as stipulated by Article 201, Paragraph 1 of theInvestment Trust Act, Article 123 of the Enforcement Ordinances of the Act on Investment Trust and Investment Corporation of Japanand Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment
Corporations, issued by The Investment Trusts Association, Japan.
(Note 2) Other than commission paid as referred to above, construction works ordered to interested parties are as follows:
Tokyu Community Corp.
¥125,953 thousand
Tokyu Re・design Corporation¥79,467 thousand
Tokyu Land SC Management Corporation¥2,657 thousand
Ishikatsu Exterior Inc¥1,702 thousand(5) Transactions between the Asset Manager in Other Businesses of the Asset Manager
No relevant matter exists under this subject as the asset manager (TLC REIT Management Inc.) does not engage in any
other business such as the first- or second-type financial instruments businesses under the Financial Instruments andExchange Act, the building lots and buildings transaction business, or the real estate joint enterprise.

30
48

49

Financial Statements
II. Balance Sheets(Unit: Thousands of yen)
As of November 30, 2020
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings 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
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(Unit: Thousands of yen)

As of May 31, 2021

14,125,013
3,426,066
645,887
349,034
5,694
18,551,695

14,227,970
3,653,881
601,413569,141
6,566
19,058,973

85,235,526(15,209,363)
70,026,162
741,007(233,660)
507,346
1,397,285(425,855)
971,430
282,268(161,686)
120,582
424,862,322
34,458496,522,302

85,760,008(16,450,302)
69,309,705
805,357(252,555)
552,8021,422,969(462,948)
960,021302,469(181,133)
121,335
424,862,322
163,000
495,969,188

9,055,086
932
9,056,018

9,055,086
678
9,055,764

1,102,057
16
38,322
1,140,397
506,718,718

1,144,625
2
38,322
1,182,950
506,207,903

108,108
108,108525,378,522

112,210112,210525,379,087

As of November 30, 2020
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received intrust
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference
adjustments
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

1
50

*3

*2

As of May 31, 2021

1,033,314
6,518,000
26,250,000
86,271
945,284941
318,300
538,488575
35,691,175

1,078,246—
27,850,000
13,719918,728637
263,790695,615753
30,821,491

21,500,000
190,100,000

22,800,000
193,500,000

22,353,035

22,636,356

28,584
233,981,620
269,672,796

39,646238,976,003
269,797,494

248,370,846

248,370,846(3,084)*3(28,535)(3,084)
248,367,761(28,535)
248,342,311

7,366,549

7,278,928

7,366,549
255,734,310

7,278,928
255,621,239(28,584)(28,584)
255,705,726
525,378,522(39,646)(39,646)
255,581,592
525,379,087

*2

2
51

III. Statements of Operations

Ⅳ. Statements of Changes in Unitholders’ Equity
Previous fiscal period (From June 1, 2020 to November 30, 2020)(Unit: Thousands of yen)Previous fiscal period

Current fiscal period(From June 1, 2020

(From December 1, 2020

to November 30, 2020)

to May 31, 2021)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Operating revenue
Leasing business revenue*1, *3 14,009,287

Other leasing business revenue*1, *3Gain on sales of real estate properties*2

Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fee
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
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Borrowing related expenses
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)

1,037,494
26,732*1, *3 13,765,352*1, *3*2

15,073,515*1

5,588,521
1,120,034
14,90537,2803,300
81,227
6,845,268
8,228,246

Unitholders’capital

950,325—
14,715,678*1

Balance at beginning of
period5,369,825

85
1,188
—
1,273

634,346
46,159598,377
57,807

7,684

8,841

184,162500
872,851
7,363,965
7,363,965
953
(5)
947
7,363,018
3,530
7,366,549

186,412500
851,939
7,250,469
7,250,469
650
14
665
7,249,804
29,124
7,278,928–

Unappropriatedretainedearnings(undisposed
loss)

Total surplus

Totalunitholders’equity248,370,846

7,333,243

7,333,243

255,704,090(7,329,712)(7,329,712)(7,329,712)

Dividends of surplus
Distributions in excessof earnings fromallowance for temporary
difference adjustments(3,084)(3,084)(3,084)

ProfitNet changes in items
other than unitholders’equityTotal changes during
periodBalance at end of period(3,084)
7,363,018

7,363,018

7,363,018–(3,084)(3,084)(3,084)33,30533,30530,220248,370,846(3,084)(3,084)

248,367,761

7,366,549

7,366,549

255,734,310(Unit: Thousands of yen)

Balance at beginning of
periodValuation and translation
adjustments
DeferredTotal
gains orvaluation andtranslation
losses onhedgesadjustments(3,443)(3,443)

Total net
assets255,700,646

Changes during period
Dividends of surplus(7,329,712)

Distributions in excessof earnings fromallowance for temporary
difference adjustments(3,084)

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

3
52

–

Unitholders’capital, net

Changes during period

1,104,682
14,88437,0153,300
84,835
6,614,543
8,101,135

78
1,158
7,334
8,570

248,370,846

Surplus

Deduction from unitholders’capitalAllowance
Total
for
deduction
temporaryfromdifference
unitholders’adjustments
capital7,363,018(25,141)(25,141)(25,141)(25,141)(25,141)

5,079(28,584)(28,584)

255,705,726

453

V. Statements of Cash Distributions

Current fiscal period (From December 1, 2020 to May 31, 2021)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Unitholders’capitalBalance at beginning of
period248,370,846

Deduction from unitholders’capitalAllowance
Total
for
deduction
temporaryfromdifference
unitholders’adjustments
capital(3,084)(3,084)

Surplus

Unitholders’capital, net

248,367,761

Unappropriatedretainedearnings(undisposed
loss)

Total surplus

7,366,549

7,366,549

Total
unitholders’equity255,734,310(7,337,425)

Distributions in excessof earnings fromallowance for temporary
difference adjustments(25,450)(25,450)(7,337,425)(25,450)

Profit(7,337,425)(25,450)

7,249,804

7,249,804

7,249,804–(25,450)(25,450)(25,450)(87,620)(87,620)(113,071)

248,370,846(28,535)(3,084)

248,342,311

7,278,928

7,278,928

255,621,239(Unit: Thousands of yen)

(28,584)(28,584)

Total net
assets255,705,726

Changes during period
Dividends of surplus(7,337,425)

Distributions in excessof earnings fromallowance for temporary
difference adjustments(25,450)

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

7,249,804(11,062)(11,062)(11,062)(11,062)(11,062)(124,133)(39,646)(39,646)

255,581,592

554[Cash distributions per unit][Of which, distributions of earnings perunit]
Of which, allowance for temporary
difference adjustments[Of which, cash distributions in excess ofearnings per unit
(Related to allowance for temporary
difference adjustments)]
IV Earnings carried forward

Valuation and translation
adjustments
DeferredTotal
gains orvaluation andtranslation
losses onhedgesadjustments

Balance at beginning of
periodIII Distributions

Of which, distributions of earnings

Dividends of surplus

Balance at end of period

II Additional amount of cash distributions inexcess of earnings
Of which, allowance for temporary
difference adjustments

Changes during period

Net changes in items
other than unitholders’equityTotal changes during
periodI Unappropriated retained earnings

Calculation method for distributions

Previous fiscal period(From June 1, 2020
to November 30, 2020)

Current fiscal period(From December 1, 2020
to May 31, 2021)

AmountAmount¥7,366,549,137¥7,278,928,158¥25,450,392¥11,568,360¥25,450,392¥11,568,360¥7,362,875,528¥7,250,276,824[¥9,547][¥9,401]¥7,337,425,136¥7,238,708,464[¥9,514][¥9,386]¥25,450,392¥11,568,360

[¥33]

[¥15]

¥29,124,001¥40,219,694

Based on the distribution policy set forth in
Article 35, Paragraph 1 of the Articles ofIncorporation of the Investment Corporation,
distributions shall be limited to the amount of
net profit in excess of an amount equivalent toninety hundredths (90/100) of distributableprofits, as stipulated in Article 67-15,
Paragraph 1 of the Act on Special Measures
Concerning Taxation. In consideration of thispolicy, we will pay distributions of profits of¥7,337,425,136, which is the amount of the
net profit defined in Article 136, Paragraph 1of the Act on Investment Trusts andInvestment Corporations, except a fraction ofless than ¥1 of distributions per investment
unit.
Based on the policy on distribution of cash
exceeding net profit set forth in Article 35,
Paragraph 2 of the Articles of Incorporation of
the Investment Corporation, distributions inexcess of earnings shall be made in an amountdecided by the Investment Corporation andequivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item
30 (b) of the Regulations on Accountings ofInvestment Corporations), taking into accounteffects of the deduction in net assets on
distribution amounts. During the fiscal period
under review, the Investment Corporation has
accordingly decided to distribute ¥25,450,392
as distributions related to allowance fortemporary difference adjustments, calculated
to exclude a fraction of less than ¥1 of
distributions in excess of earnings perinvestment unit from the amount equivalent to¥25,499,775, which is calculated by deducting¥3,084,896 of temporary difference
adjustments (refers to stipulations of Article 2,
Paragraph 2, Item 30 of the Regulations on
Accountings of Investment Corporations)from deferred losses on hedges of¥28,584,671, in the current fiscal period. As aresult, distributions are to amount to¥7,362,875,528 for the fiscal period underreview.

Based on the distribution policy set forth in
Article 35, Paragraph 1 of the Articles ofIncorporation of the Investment Corporation,
distributions shall be limited to the amount of
net profit in excess of an amount equivalent toninety hundredths (90/100) of distributableprofits, as stipulated in Article 67-15, Paragraph
1 of the Act on Special Measures Concerning
Taxation. In consideration of this policy, we will
pay distributions of profits of ¥7,238,708,464,
which is the amount of the net profit defined in
Article 136, Paragraph 1 of the Act on
Investment Trusts and Investment Corporations,
except a fraction of less than ¥1 of distributions
per investment unit.
Based on the policy on distribution of cash
exceeding net profit set forth in Article 35,
Paragraph 2 of the Articles of Incorporation of
the Investment Corporation, distributions inexcess of earnings shall be made in an amountdecided by the Investment Corporation andequivalent to a deduction in net assets (refers to
stipulations of Article 2, Paragraph 2, Item 30(b) of the Regulations on Accountings ofInvestment Corporations), taking into accounteffects of the deduction in net assets on
distribution amounts. During the fiscal period
under review, the Investment Corporation has
accordingly decided to distribute ¥11,568,360 as
distributions related to allowance for temporary
difference adjustments, calculated as the amountequivalent to ¥11,111,618, which is calculated
by deducting ¥28,535,288 of temporary
difference adjustments (refers to stipulations ofArticle 2, Paragraph 2, Item 30 of theRegulations on Accountings of Investment
Corporations) from deferred losses on hedges of¥39,646,906. As a result, distributions are toamount to ¥7,250,276,824 for the fiscal period
under review.

655

VII. Notes to Financial Statements

VI. Statements of Cash Flows

Notes on Assumption of Going Concern(Unit: Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Amortization of investment corporation bondissuance costs
Interest income and interest on securities
Interest expenses
Borrowing related expenses
Decrease (increase) in operating accounts receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Increase (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
Refund of leasehold and guarantee deposits received
in trust
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
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

Previous fiscal period

Current fiscal period(From June 1, 2020

(From December 1, 2020

to November 30, 2020)

to May 31, 2021)*1

7,363,965
1,335,856
9,230

7,250,469
1,352,409
7,860

7,684

8,841

(78)
680,505
184,162
33,319(11,743)
206,899
68,498(852)(311,338)
16,948(27,019)9,556,036
78(680,318)(829)
8,874,966(85)
656,185
186,41244,474(54,509)(205,702)
18,685(19,264)
157,127
15,412(1,979)9,416,336
85(670,357)(954)
8,745,109(757,118)(850,086)(640,820)(1,191,268)

684,397

1,474,589(713,542)(566,765)

1,517,316(5,998,000)––—(6,518,000)
17,268,352(12,500,000)

4,474,498

1,286,500(7,328,580)(32,130)(7,366,894)
794,529
16,756,549
17,551,079(7,364,538)(19,887)(7,847,572)
330,772
17,551,079
17,881,851*1

Not applicable

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

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 (5years).
(3) Long-term prepaid expenses
The straight-line method is used.

2. Accounting method for (1) Investment unit issuance expenses
deferred assets
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.
3. Accounting for income Property-related taxes
and expenses
For property tax, city planning tax, depreciable asset tax for real properties held, the amount oftax levied corresponding to the calculation period is recorded 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 property tax”) is not recorded as expenses related toleasing business but included in the acquisition costs for the related properties. There is noamount equivalent to property tax included in acquisition cost for properties for the current
fiscal period.
4. Method of hedge
accounting

7
56

(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 totalchanges in the cash flows of the hedged items with those of the hedging instruments, and thenverifying the ratio of the changes in both amounts. However, hedge effectiveness is deemed tohave been ensured with respect to interest rate swaps that satisfy the requirements for special
treatment.

857

5. Scope of cash (cashand cash equivalents)
in the statements ofcash flows

Notes to Balance Sheets

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

1. Commitment Line Contracts
The Investment Corporation has the commitment line contracts with three of the banks with which it does business.

6. Other important(1) Accounting method for trust beneficiary interest with real estate, etc. as trust asset
matters related to theWith regard to trust beneficiary interest with real estate, etc. in holding as trust asset, all assets
preparation of financial
and liabilities as well as all revenue and expense items associated with all trust assets arestatements
accounted for under the respective account items of the balance sheets and statements ofoperations.
Of the trust assets accounted for under the respective account items, the following items withsignificance are separately indicated on the balance sheets.
i)
Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment in trust; tools, furnitureand fixtures in trust; land in trust; construction in progress in trust; and land leaseholdinterests in trustiii) Leasehold and guarantee deposits received in trust(2) Accounting method for consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for by the tax-exclusion method.
Consumption taxes unqualified for deduction for tax purposes for non-current assets, etc. are
included in acquisition cost for each asset.

As of November 30, 2020
Total amount specified in the commitment line
contracts

As of May 31, 2021

¥21,000,000 thousand

Loan balance
Net balance¥21,000,000 thousand––¥21,000,000 thousand¥21,000,000 thousand*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
As of November 30, 2020

As of May 31, 2021

¥50,000 thousand¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From June 1, 2020 to November 30, 2020)
1.Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision

Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From June 1, 2020 to November 30, 2020)
1.Reason for Provision, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

Reason for provision
Recognition of loss on valuation ofinterest rate swaps(Unit: Thousands of yen)
Allowance for temporary
difference adjustments
25,4502.Specific Method of Reversal
Deferred gains or losses on hedges

Related assets,
etc.

Reason forprovision

Deferred
gains or losses
on hedges

Recognition ofloss onvaluation ofinterest rate
swaps

Initialamount(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
beginning of provision for reversal forend ofreversal
periodperiodperiodperiod

3,084

–

3,084

–

3,084

–

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

The reversal is to accord with changes in fair value of derivative transactions that are the hedging instruments.
Current fiscal period (From December 1, 2020 to May 31, 2021)
1.Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision

Current fiscal period (From December 1, 2020 to May 31, 2021)
1.Reason for Provision, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

Reason for provision
Recognition of loss on valuation ofinterest rate swaps(Unit: Thousands of yen)
Allowance for temporary
difference adjustments
11,5682.Specific Method of Reversal
Deferred gains or losses on hedges

Related assets,
etc.

Reason forprovision

Deferred
gains or losses
on hedges

Recognition ofloss onvaluation ofinterest rate
swaps

Initialamount28,535(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
beginning of provision for reversal forend ofreversal
periodperiodperiodperiod3,084

25,450–28,535–2.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.

The reversal is to accord with changes in fair value of derivative transactions that are the hedging instruments.

9
58

10
59

Notes to Statements of Operations*3. Transactions with Major Unitholders*1. Breakdown of Profit (Loss) from Real Estate Leasing Business(Unit: Thousands of yen)Previous fiscal period(From June 1, 2020
to November 30, 2020)
A.

Current fiscal period(From December 1, 2020
to May 31, 2021)

Operating revenue

Leasing business revenueB.

12,889,168

12,674,111

Common service fees

739,267

712,876

Parking lot fees

285,349

281,003

Other rent revenue

95,50014,009,287

97,361

950,325

15,046,782

14,715,678

Total number of investment units issued

Expenses related to leasing business
1,325,956

892,089

722,712

Tax and public dues

1,268,968

1,281,248

12,985

13,031

Repair and maintenance expenses
Depreciation

C.

441,806

384,062

1,335,601

1,352,155

Loss on retirement of non-current
assets9,230

Other expenses related to leasing
business

349,775

282,7975,369,825
5,369,825

Profit (loss) from real estate leasing
business (A – B)

9,458,260

9,345,853(Unit: Thousands of yen)
29,000–2,267

Current fiscal period(From December 1, 2020
to May 31, 2021)

Cash and deposits¥14,125,013 thousand¥14,227,970 thousand

Cash and deposits in trust¥3,426,066 thousand¥3,653,881 thousand

Cash and cash equivalents¥17,551,079 thousand¥17,881,851 thousand

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

*2. Breakdown of Gain (Loss) on Sales of Real Estate Properties

Gain on sales of real estate properties

771,224 units

Previous fiscal period(From June 1, 2020
to November 30, 2020)

5,588,521

EDGE Shinsaibashi (structures)
Income from sales of real estate properties
Costs of sales of real estate properties
Other costs of sales

4,000,000 units

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

Total real estate leasing business
expenses

Previous fiscal period (From June 1, 2020 to November 30, 2020)

4,000,000 units

Notes to Statements of Cash Flows

7,860
5,588,521

Current fiscal period(From December 1, 2020
to May 31, 2021)*1. Total number of authorized investment units and total
number of investment units issued
Total number of authorized investment units

Real estate leasing business expenses

Insurance

Previous fiscal period(From June 1, 2020
to November 30, 2020)

13,765,352

1,037,494

1,278,062

1,863,166*1. Total number of authorized investment units and total number of investment units issued are as follows:

Total real estate leasing businessrevenues

Utilities expenses

2,124,905

Notes to Statements of Changes in Unitholders’ Equity

Other leasing business revenue

Management operation expenses

Current fiscal period(From December 1, 2020
to May 31, 2021)

Operating transactions

Real estate leasing business revenues

Rent(Unit: Thousands of yen)Previous fiscal period(From June 1, 2020
to November 30, 2020)

As of May 31, 2021

Due within one year

¥16,373,159 thousand¥15,597,084 thousand

Due after one year

¥111,128,182 thousand¥108,742,775 thousand

Total¥127,501,341 thousand¥124,339,859 thousand

26,732Current fiscal period (From December 1, 2020 to May 31, 2021)
Not applicable.

11
60

12
61

Notes on Financial Instruments

Carrying amounts, fair values, and the differences between the two values as of May 31, 2021, are as shown below. Financial
instruments whose fair value is considered to be extremely difficult to determine are not included in this table (please refer to(Note 2)).

1. Matters Regarding Financial Instruments(1)

Policy for Financial Instruments(Unit: Thousands of yen)

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

Carrying amount

Difference

14,227,970

14,227,970–(2) Cash and deposits in trust

3,653,881

3,653,881–

Total assets

17,881,851

17,881,851–

We also invest temporary excess funds in deposits in general, taking safety and liquidity, etc. into account and carefully
considering the interest-rate environment and our cash management.

(1) Short-term borrowings

—

—

–

27,850,000

27,891,765

41,765

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.

(3) Investment corporation bonds

22,800,000

22,975,707

175,707(4) Long-term borrowings

193,500,000

195,464,522

1,964,522

244,150,000

246,331,994

2,181,994(39,646)(39,646)–

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

(2)(2) Current portion of long-term borrowings

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 theinsolvency 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 and liquidity, etc. into account and carefully considering thefinancial environment and our cash management.
Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate and refinancing of existing
borrowings. Leasehold and guarantee deposits received are deposits provided by tenants. 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.

(3)

Total liabilities
Derivative transactions(Note 1)
Assets(1) Cash and deposits, (2) Cash and deposits in trust
The book value is used as the fair value of these assets, given that the fair value is almost the same as the book value, as
it is settled in a short time.

(1) Short-term borrowings

Supplemental Remarks on the Fair Value of Financial Instruments

The book value is used as the fair value of these liabilities, given that the fair value is almost the same as the book value,
as it is settled in a short time.

The fair value of financial instruments is based on market prices or reasonably calculated value if it has no market price. As
certain assumptions are made in calculating these values, if different assumptions, etc. are used, these values could vary.

(2) Current portion of long-term borrowings, (4) Long-term borrowings

2. Matters Regarding Fair Values of Financial Instruments

These fair values are determined by discounting the total of principal and interest at the rate assumed when a new loan ismade corresponding to the remaining period. The book value is used as the fair value of those borrowings with floatinginterest rate, given that the fair value is almost the same as the book value, as their interest rates are reviewed on a shortterm interval to reflect market interest rates (however, for long-term 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 and interest, which are treated in combination with the said interest rate swap, at a reasonable rate estimated fora similar new loan).

Carrying amounts, fair values, and the differences between the two values as of November 31, 2020, are as shown below.
Financial instruments whose fair value is considered to be extremely difficult to determine are not included in this table (pleaserefer to (Note 2)).
(Unit: Thousands of yen)
Carrying amount

Fair value

Difference(1) Cash and deposits

14,125,013

14,125,013–(2) Cash and deposits in trust

3,426,066

3,426,066–

Total assets

17,551,079

17,551,079–(1) Short-term borrowings

6,518,000

6,518,000–(2) Current portion of long-term borrowings

26,250,000

26,309,036

59,036(3) Investment corporation bonds

21,500,000

21,661,272

161,272(4) Long-term borrowings

190,100,000

192,679,568

2,579,568

244,368,000

247,167,878

2,799,878(28,584)(28,584)–

Total liabilities
Derivative transactions

Measurement Methods for Fair Values of Financial Instruments

Liabilities

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) Investment corporation bonds
These fair values are determined by discounting the total of principal and interest at a rate taking into account theremaining period and credit risk of the said investment corporation bonds.

Derivative transactions
Please refer to “Notes on Derivative Transactions” on pages 30 and 31.
(Note 2) Carrying Amounts of Financial Instruments Whose Fair Value Is Considered to Be Extremely Difficult to Determine(Unit: Thousands of yen)
Category
Leasehold and guarantee
deposits received in trust *
*

13
62

Fair value(1) Cash and deposits

As of November 30, 2020
22,353,035

As of May 31, 2021
22,636,356

As there are no market prices for leasehold and guarantee deposits received in trust from tenants for leasehold properties
and the actual period of deposit from move-in of the tenant to move-out is difficult to determine, it is extremely difficult
to reasonably estimate the cash flow. Therefore, the fair value for leasehold and guarantee deposits received in trust is not
subject to the disclosure of fair value.

1463

(Note 3)

Notes on Derivative Transactions

Expected Amounts of Redemption of Monetary Claims after the Account Closing Date
(November 30, 2020)(Unit: Thousands of yen)
Within1 year

1–2 years

2–3 years

3–4 yearsOver
5 years

4–5 years

Deposits

14,125,013

–

–

–

–

–

Deposits in trust

3,426,066

–

–

–

–

–

Total

17,551,079

–

–

–

–

–

2. Derivative Transaction to Which Hedge Accounting Is Applied(Unit: Thousands of yen)
1–2 years

2–3 years

3–4 yearsOver
5 years

4–5 years

Deposits

14,227,970

–

–

–

–

–

Deposits in trust

3,653,881

–

–

–

–

–

Total

17,881,851

–

–

–

–

–

(Note 4)

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the Account Closing Date
(November 30, 2020)(Unit: Thousands of yen)
Within1 yearShort-term borrowings

Total

2–3 years

3–4 yearsOver
5 years

4–5 years

6,518,000

–

–

–

–

–

–

1,000,000–

5,000,000

2,000,000

13,500,000

26,250,000

26,100,000

29,750,000

29,500,000

26,000,000

78,750,000

32,768,000

27,100,000

29,750,000

34,500,000

28,000,000

92,250,000

Investment corporation bonds
Long-term borrowings

1–2 years

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the Account Closing Date
(May 31, 2021)(Unit: Thousands of yen)
Within1 yearShort-term borrowings
Investment corporation bonds
Long-term borrowings
Total

1–2 years—

2–3 years–

3–4 years–Over
5 years

4–5 years–(As of November 30, 2020)
Not applicable.
(As of May 31, 2021)
Not applicable.

Expected Amounts of Redemption of Monetary Claims after the Account Closing Date
(May 31, 2021)
Within1 year

1. Derivative Transaction to Which Hedge Accounting Is Not Applied

–

–

–

1,000,000–

7,000,000

2,000,000

12,800,000

27,850,000

26,500,000

32,750,000

24,500,000

27,500,000

82,250,000

27,850,000

27,500,000

32,750,000

31,500,000

29,500,000

95,050,000(As of November 30, 2020)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the account closing dateby method of hedge accounting.
(Unit: Thousands of yen)Amount of contract

Hedge accounting

Type of derivativetransactions

Major hedged
items

Deferred hedge
accounting

Interest rate swaps
Receive floating
Pay fixed

Long-term
borrowings

12,000,000

Special treatment
for interest rate
swaps

Interest rate swaps
Receive floating
Pay fixed

Long-term
borrowings

18,140,000

Fair value

Calculation
method for fairvalue

12,000,000(28,584)

Based on prices,
etc. indicated bypartner financial
institutions

18,140,000*–

Portion due
after 1 year

(As of May 31, 2021)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the account closing dateby method of hedge accounting.
(Unit: Thousands of yen)
Hedge accounting

Type of derivativetransactions

Major hedged
items

Deferred hedge
accounting

Interest rate swaps
Receive floating
Pay fixed

Long-term
borrowings

Amount of contract
Portion due
after 1 year
12,000,000

12,000,000

Fair value

Calculation
method for fairvalue

(39,646)

Based on prices,
etc. indicated bypartner financial
institutions

Special treatment
Interest rate swaps
Long-term
18,140,000
18,140,000*–
for interest rate
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-termborrowings, a hedged item. Thus, their fair values are included in the fair value of long-term borrowings. (Please refer tothe preceding “Notes on Financial Instruments, 2. Matters Regarding Fair Values of Financial Instruments, (Note 1)
Liabilities (4)” on page 28.)

15
16
64

65

Notes on Transactions with Related Parties

Notes on Deferred Tax Accounting

1. Parent Company and Major Corporate Unitholders

1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of November 30, 2020

Previous fiscal period (From June 1, 2020 to November 30, 2020)

As of May 31, 2021

Deferred tax assets
Non-deductible amount for tax purposes ofenterprise tax payable
Deferred gains or losses on hedges¥16 thousand¥2 thousand¥8,992 thousand¥12,472 thousand

Subtotal of deferred tax assets¥9,009 thousand¥12,475 thousand

Valuation allowance¥(8,992) thousand¥(12,472) thousand¥16 thousand¥2 thousand¥16 thousand¥2 thousand

Total deferred tax assets
Net deferred tax assets

2. Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax Rate afterApplication of Deferred Tax Accounting
As of November 30, 2020
Effective statutory tax rate

31.46%

Other
Effective income tax rate after application of tax
effect accounting

Name

Address

Transaction

Receipt ofleasehold andguarantee
deposits

21-1
Tokyu
Major
DogenzakaLand
1-chome,unitCorporati
Shibuya-ku,
holder
on
Tokyo

Real
57,551 estatebusiness

As of May 31, 2021

Major
unithold Refund ofer, and leasehold andrent and guarantee
10.52% Nonemanage- deposits
ment of received
properties
Rentalrevenues, etc.

Transactio
Balance at end
n amountof period
Account title(Thousand(Thousands of
yen)s of yen)

9,635

Leasehold andguarantee
deposits
received in
67,322 trust(Note 1)(31.46)%(31.46)%

0.01%

0.01%

0.01%

0.01%

(Note 2)

2,384,566

Operatingaccounts
2,124,905 receivable

103,980

Advances
received

31.46%

Adjustments
Distributions paid included in deductibles

Attribute

Share
Relationship
Percenta
capital orBusiness ge ofinvestme
orvoting Interloc Business
nt in
k-ing
occupatio rights
relationcapitalnowning officers, ship
(Millionsetc.
(owned)of yen)61,221Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period
includes consumption taxes.
The transaction terms are based on current market practices.

Current fiscal period (From December 1, 2020 to May 31, 2021)

AttributeNameAddress

Share
Relationship
Percenta
capital orBusiness ge ofinvestme
orvoting Interloc Business
nt in
k-ing
occupatio rights
relationcapitalnowning officers, ship
(Millionsetc.
(owned)of yen)Transaction

Receipt ofleasehold andguarantee
deposits

21-1
Tokyu
Major
DogenzakaLand
1-chome,unitCorporati
Shibuya-ku,
holderon
Tokyo(Note 1)
(Note 2)

Real
57,551 estatebusiness

Major
unithold Refund ofer, and leasehold andrent and guarantee
10.52% Nonemanage- deposits
ment of received
properties
Rentalrevenues, etc.

Transactio
Balance at end
n amountof period
Account title(Thousands of(Thousandyen)
s of yen)

170,771

Leasehold andguarantee
deposits
received in
95,433 trust

2,459,904

Operatingaccounts
1,863,166 receivable

48,685

Advances
received

196,033

Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period
includes consumption taxes.
The transaction terms are based on current market practices.

2. Affiliates, etc.
Previous fiscal period (From June 1, 2020 to November 30, 2020)
Not applicable
Current fiscal period (From December 1, 2020 to May 31, 2021)
Not applicable

17
66

18
67

Current fiscal period (From December 1, 2020 to May 31, 2021)

3. Sister companies, etc.
Previous fiscal period (From June 1, 2020 to November 30, 2020)

Attribute

Name

Share
Relationship
Percenta
capital orTransactio
Business
ge ofinvestme
n amountorvoting Interloc BusinessTransaction
nt inAddressk-ing(Thousandoccupatio rights
relationcapital
officerss of yen)nowningship(Millions(owned) , etc.
of yen)

16-3,
Tokyu
Land SC Dogenzak
Subsidiary
Manage- aof major
1-chome,ment
unitholder
Corpora- Shibuyaku, Tokyo
tion

Real
estate
100 managementbusiness–

Receipt ofleasehold andguarantee
deposits

18,195

Refund ofleasehold andRent andguarantee
manageNone
deposits
ment ofreceived
properties

62,410Rental3,939,335
revenues, etc.
Receipt ofleasehold andguarantee
deposits

10-1,
Tokyu
Subsidiary
Yoga 4Commun
of majorchome,
ity
unitholder
SetagayaCorp.
ku, Tokyo

21-1
TLC
Dogenzak
SubsidiaryREITaof major
Manage 1-chome,unitholder
ment Inc. Shibuyaku, Tokyo(Note 1)
(Note 2)Real
estate1,653 managementbusiness

Investmen
t
200 managementbusiness––

358,920

Account title

Balance at
end ofperiod(Thousandsof yen)Leasehold andguarantee
deposits
received in trust

6,239,918

Operatingaccounts
receivable

261,364

Advances
received

45,557

Leasehold andguarantee
deposits
received in trust

9,224,589

Refund ofleasehold andguarantee
437,397
Rent and deposits
manage- received
Nonement of
Operatingproperties
accounts
Rental
6,064,036 receivable
revenues, etc.
Advances
received
Real estate
Operatingmanagement
866,295 accounts
feepayable
Asset
Asset
None
management
managerfee

Share
Relationship
Percenta
Balance at
capital orTransactio
Businessge of
end ofinvestme
n amountorvoting Interloc Business
Attribute
Name
Address
Transaction
Account title
periodnt in
k-ing(Thousandoccupatio rights
relation(Thousands
capitals of yen)nowning officers
ship(Millionsof yen),etc.
(owned)of yen)Receipt ofleasehold and16,924guarantee
Leasehold anddeposits
guarantee
6,195,007
Refund ofdeposits
16-3,
Tokyu
Real
leasehold andreceived
in
trust
Rent andLand SC Dogenzak
estateSubsidiaryguarantee
61,835manageManage- a
100 manageme–Noneof major
deposits
ment of1-chome,mentntunitholder
received
properties
Corpora- Shibuyabusiness
Operatingku, Tokyo
tionaccounts
186,630
Rentalreceivable
3,968,534
revenues, etc.
Advances
42,441
received

10-1,
Tokyu
Subsidiary
Yoga 4Commun
of majorchome,
ity
unitholder
SetagayaCorp.
ku, Tokyo

Realestate1,653 managementbusiness–

209,203

Receipt ofleasehold and1,066,671
guarantee
Leasehold anddeposits
guarantee
Refund ofdeposits
leasehold andreceived in trust
guarantee
845,808
Rent and deposits
manage- received
Nonement of
Operatingproperties
accounts
Rental
5,914,339 receivable
revenues, etc.
Advances
received

42,623
183,422

Accrued
1,120,034
expenses

507,238

Real estate
managementfee
21-1
Dogenzak
TLC
SubsidiaryaREITof major
Manage 1-chome,unitholder
ment Inc. Shibuyaku, Tokyo(Note 1)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.

(Note 2)

Investmen
t
200 managementbusiness

–

None

Asset
Asset
management
managerfee

9,445,453

204,877
38,366

Operating905,983 accounts
payable194,553

Accruedexpenses494,734

1,104,682

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.

4. Directors and Major Individual Unitholders
Previous fiscal period (From June 1, 2020 to November 30, 2020)
Not applicable
Current fiscal period (From December 1, 2020 to May 31, 2021)
Not applicable

19
68

20
69

Notes on Investment and Rental Properties

Segment Information

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 sheets, changes during the fiscal period, and fair values of investment and rental properties
are as follows.

Segment Information for the fiscal periods ended November 30, 2020 and May 31, 2021 is as follows:
1. Operating Segment Information
Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in the property rental
business.

(Unit: Thousands of yen)
Use

Previous fiscal period(From June 1, 2020
to November 30, 2020)

Current fiscal period(From December 1, 2020
to May 31, 2021)

198,791,882

198,465,968

2.

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

3.

Information about Major Customers
Previous fiscal period (From June 1, 2020 to November 30, 2020)

Carrying amount on the balance sheets
Balance at beginning of period
Urban Retail
Properties

Changes during period(325,913)(270,294)

Balance at end of period

198,465,968

198,195,674

238,636,000

232,977,000

Fair value at end of period
Carrying amount on the balance sheets
Balance at beginning of periodTokyo Office
Properties

204,916,612

204,673,488

Changes during period(243,123)(41,185)

Balance at end of period

204,673,488

204,632,303

Tokyu Community Corp.

6,064,036

Property rental business

245,780,000

246,570,000

Tokyu Land SC Management Corporation

3,939,335

Property rental businessTokyu Land Corporation

2,124,905

Property rental business

102,563,571

102,437,930

Changes during period(125,640)(241,903)

Balance at end of period

102,437,930

102,196,027

122,490,000

122,380,000

506,272,066

505,577,388

Changes during period(694,677)(553,383)

Balance at end of period

505,577,388

505,024,005

606,906,000

601,927,000

Fair value at end of period

Name of Customer

Carrying amount on the balance sheets
Balance at beginning of period
Activia Account
Properties

Fair value at end of period

Current fiscal period (From December 1, 2020 to May 31, 2021)
Name of Customer

Carrying amount on the balance sheets
Balance at beginning of period
Total

Fair value at end of period(Note 1)

The carrying amount on the balance sheets is the acquisition cost less accumulated depreciation.

(Note 2)The main reason for the decrease in the current fiscal period is the provision of depreciation worth ¥1,352,155
thousand.

(Note 3)

The fair value at end of period is the appraisal value provided by an outside real estate appraiser. Regarding Tokyu
Plaza Akasaka, it is based on the transfer price (11,800,000 thousand yen) in the sales contract dated May 21, 2021.

Revenues

Revenues(Unit: Thousands of yen)
Related Segment(Unit: Thousands of yen)
Related Segment

Tokyu Community Corp.

5,914,339

Property rental businessTokyu Land SC Management Corporation

3,968,534

Property rental businessTokyu Land Corporation

1,863,166

Property rental business

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

21
70

22
71

Per Unit Information
Previous fiscal period(From June 1, 2020
to November 30, 2020)
Net assets per unit

¥331,558¥331,397(TO-20) Meguro Tokyu Building¥9,547¥9,400Type of assets

Trust beneficiary interest

Acquisition price¥16,300 million

Scheduled acquisition date

September 10, 2021

Location

13-17, Kami-osaki 2-chome, Shinagawa-ku, Tokyo

Use

Offices, retailLand area

1,776.41 m2

Gross floor area

8,813.74 m2

Structure

Steel framed / 7 floors above groundMonth and year of completion

December 2002

Ownership

Land:
Owned
Building: Owned

Basic earnings per unit
(Note 1)

(Note 2)

referred to as "asset to be acquired") and entered into agreements with the acquisition date of September 10, 2021.The planned
acquisition price (the purchase price stated in the Sales and Purchase Contract of Beneficiary Rights of Real Estate in Trust) does
not include other acquisition related costs such as direct expenses for acquisition, property-related taxes and consumption
taxes.Figures are rounded down to the nearest million yen.

Current fiscal period(From December 1, 2020
to May 31, 2021)

Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (previous fiscal period 771,224 units; current fiscal period 771,224 units). Diluted earnings per unit is notstated, as there is no potential investment unit.
The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From June 1, 2020
to November 30, 2020)

Profit (Thousands of yen)

Current fiscal period(From December 1, 2020
to May 31, 2021)

7,363,018

7,249,804

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

Profit attributable to common investment units(Thousands of yen)

7,363,018

7,249,804

771,224

771,224(TO-21) Q plaza Shinjuku-3chome

Average number of investment units for the period(Units)Significant Subsequent Events

1. Issuance of New Investment Units and Secondary Offering of Investment Units
API decided the issuance of new investment units and secondary offering of investment units at the board of directors meeting
held on August 24, 2021. The offer price per unit,etc. shall be determined at API’s board of directors meeting to be held on a day(the "Pricing Date") between September 1, 2021 and September 6, 2021.
(1) Issuance of new investment units through a public offering in domestic and international markets
Number of new investment units to be issued
49,030units(Note1)
Offering price

To be determined

Total offering price

To be determined

Paid-in amountTo be determined (Note2)

Total paid-in amountTo be determined

Payment date

To be determined (Note3)

Trust beneficiary interest

Acquisition price¥18,400 million

Scheduled acquisition date

September 10, 2021

Location

5-6 Shinjuku 3-chome, Shinjuku-ku, Tokyo

Use

RetailLand area

748.59 m2

Gross floor area

6,316.65 m2

Structure

SRC, Steel framed / 8 floors above and 2 floors undergroundMonth and year of completion

September 1992

Ownership

Land:
Owned
Building: Owned(TO-22) A-PLACE Shibuya Nampeidai(Note)(Note1) This is the total number of the Domestic Primary Offering and the International Offering mainly in the United States,
Europe and Asia.
(Note2) Paid-in amount shall be determined on the Pricing Date.
(Note3) It shall be four business days after the Pricing Date.
(2) Issuance of new investment units by way of third-party allotment(Note1)
Number of new investment units to be issued
2,500units

Type of assets

Trust beneficiary interest

Acquisition price¥8,800 million

Scheduled acquisition date

September 10, 2021

Location

2-17 Nanpeidai-machi, Shibuya-ku, Tokyo

Use

Offices, bank901.79 m2

Paid-in amountTo be determined (Note2)

Land area

Total paid-in amountTo be determined

Gross floor area

6,133.08 m2

September 28, 2021

Structure

SRC / 8 floors above and 1 floor underground

Nomura Securities Co., Ltd.

Month and year of completion

July 1989 (additional construction February 1992)

Payment date
Allottee(Note1) This issuance shall be carried out in order to ensure that Nomura Securities Co., Ltd. will acquire the investment units
necessary for returning the Borrowed Units in connection with secondary offering through over-allotment. If noapplication for subscription is made for all or part of number of new investment units issued, it may result in a decrease in
the number of investment units issued through a third-party allocation due to the forfeiture of subscription rights orissuance of new investment units may not take place at all.
(Note2) Paid-in amount shall be the same price as Paid-in amount for the Domestic Primary Offering.
2. Acquisition of Properties
On August 24, 2021, API decided to acquire the real estate trust beneficiary interest for the following three properties (hereinafter

23
72

Type of assets

Ownership

Land:
Owned
Building: Owned(Note) The name of this property is currently “Nikko Shibuya Nanpeidai Building,” but is scheduled to be renamed to thestated name after acquisition.

Omission of Disclosure

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

2473

Other Specified Assets

VIII. Schedule of Financial Statements

Not applicable

Securities
1.

SharesNot applicable

Investment Corporation Bonds(Unit: Thousands of yen)

2.

Securities Other Than Shares
Not applicable

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

Fair value(Note 2) (Note 3)Classification

Type of derivative transactions

Over-the-counter

Interest rate swaps
Receive floating Pay fixed

30,140,000

30,140,000(39,646)

Total

30,140,000

30,140,000(39,646)

Portion due
after one year

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

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

Tangible
AssetsIntangible
AssetsIncrease

EndingBalance

Decrease

Accumulated
depreciation

Depreciation
for the period

Net property,
plant andequipment

Buildings in trust

85,235,526

568,123

43,64085,760,008

16,450,302

Structures in trust

741,00764,350-805,357

252,555

18,894552,802

Machinery andequipment in
trust

1,397,285

25,683-

1,422,969

462,948

37,092960,021

Tools, furnitureand fixtures intrust

282,268

20,201-

302,469

181,133

19,447

121,335

Land in trust

424,862,322--

424,862,322-- 424,862,322

Construction inprogress in trust

34,458

128,542-

163,000--

Subtotal

512,552,867

806,901

43,640513,316,128

17,346,939

Leasehold rights
in trust

9,055,086--

9,055,086--

9,055,086

Other (Note)

7,153

-

-

7,153

6,475

254

678

Subtotal

9,062,239--

9,062,239

6,475

254

9,055,764

521,615,107

806,901

43,640522,378,368

17,353,415

Total

1,276,719 69,309,705

163,000

1,352,155 495,969,188

1,352,409 505,024,953(Note) “Other” is software (non-real estate asset).

25
74

Issue

Issue Date

Beginningbalance

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

April 21,2015

2,000,000－

2,000,000

0.726%

April 21,2025

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

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

February 3,
2016

2,000,000－

2,000,000

0.770%

February 3,
2026

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

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

February 2,
2017

1,000,000－

1,000,000

0.480%

February 2,
2027

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

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

February 2,
2017

1,000,000－

1,000,000

0.810%

February 2,
2032

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

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

1,000,000－

1,000,000

0.160%

August 12,
2022

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

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

1,000,000－

1,000,000

1.050%

February 12,
2038

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

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

5,000,000－

5,000,000

0.220%

July 9,2024

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

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

4,000,000－

4,000,000

0.530%

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

12th unsecured bonds(with pari passu conditions among October 21,
2020
specified investment corporation
bonds)(Green Bonds)

4,500,000－

4,500,000

0.510%

October 21,
2030

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

1,300,000

0.750%

February 8,
2036

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

July 9,2019

13th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 9,
2021

Total

–

(Note)

21,500,000

Decrease

Endingbalance

Interest
Rate

RedemptionDate— 22,800,000

Use of funds

Remarks––

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

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

1–2 years
1,000,000

2–3 years

3–4 years—

7,000,000

4–5 years
2,000,00026
75

Loans Payable

Category

The following tables show the details of loans payable.
Category
LenderSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
Short-term
MUFG Bank, Ltd.
loans
Sumitomo Mitsui Trust
payableBank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Total
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Draw
down
date
January 10,
2020
November30, 2020

December19, 2013

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Nippon Life Insurance
Company
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

January 10,
2014

Beginningbalance

Increase

Endingbalance

Decrease

2,000,000—

2,000,000—

2,000,000
1,000,000——

2,000,000
1,000,000——

506,000—

506,000—

506,000
506,000
6,518,000———

506,000
506,000
6,518,000———

1,060,000—

1,060,000—

Averageinterest rate
(Note 1)Maturitydate

0.18079%

January 12,2021

0.20464%1.07980%

1,060,000—

1,060,000—

1.07980%

1,060,000—

1,060,000—

1.07980%

1,060,000—

1,060,000—

1.07980%

530,000—

530,000—

1.07980%

530,000—

530,000—

1.07980%

1,340,000—

1,340,000—

1.07856%

1,340,000—

1,340,000—

1.07856%

1,340,000—

1,340,000—

1.07856%

1,340,000—

1,340,000—

1.07856%

670,000—

670,000—

1.07856%

670,000—

670,000—

1.07856%

March 31,2017

500,000—

500,000—

0.25000%

3,920,000——

3,920,000

January 10,
20193,920,000
1,970,000

—
—

—
—

3,920,000
1,970,000

1,970,000——

1,970,000

1,970,000——

1,970,000

January 10,
2019

January 5,
2018

January 9,
2015

January 10,
2020
January 10,
2020

0.22246%

0.36607%—640,000
320,000————

640,000
320,000

160,000——

160,000

160,000——

160,000

840,000——

840,000

0.73690%840,000——

840,000

0.73690%840,000——

840,000

0.73690%840,000——

840,000

0.73690%420,000——

420,000

0.73690%0.73690%—

Use offunds

420,000——

420,000

1,420,000——

1,420,000

1,420,000
720,000————

1,420,000
720,000

720,000——

720,000

720,000——

720,000

0.41931%

November30, 2021
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
March 31,2021

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

July 12,2021(Note 3)

July 12,2021(Note 3)

Unsecured,
non-guaranteed

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

December28, 2021

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

Unsecured,
non-guaranteed

Endingbalance

Decrease(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed—

2,000,000

500,000——

500,000

400,000——

400,000

400,000——

400,000

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note6)

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui
Banking Corporation

100,000——

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000——

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560,000——

1,560,000

1,560,000——

1,560,000

1,560,000——

1,560,000

0.44835%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

160,000——

160,000

160,000——

160,000

The 77 Bank, Ltd.

March 31,2017

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.

June 15,2015

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Increase—

Tokio Marine & Nichido
Fire Insurance Co., Ltd.

Unsecured,
non-guaranteed

Beginningbalance2,000,000

March 31,2015

Shinkin Central Bank

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

December16, 2015

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

June 13,2018

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

0.21746%

January 11,2022(Note 4)

Unsecured,
non-guaranteed

0.31571%

January 11,2022(Note 4)

Unsecured,
non-guaranteed

27
76

Mizuho Trust & Banking
Co.,LTD.

Remarks

320,000

320,000

Lender(Unit: Thousands of yen)

Draw
down
date

28
77

Category
LenderSumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.

Draw
down
date

January 9,
2019

September
30, 2015

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.

March 30,
2018

October 6,
2016

June 15,2015

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Taiyo Life Insurance
Company
Mitsui Sumitomo
Insurance Company,
LimitedResona Bank, Limited.
The Gunma Bank, Ltd.

December16, 2015
June 13,2017

March 31,2017
March 31,2020
March 31,2020

Beginningbalance

Increase

Endingbalance

Decrease

620,000——

620,000

620,000
620,000————

620,000
620,000

320,000——

320,000

320,000——

320,000

1,250,000——

1,250,000

1,250,000——

1,250,000

1,250,000——

1,250,000

1,250,000——

1,250,000

750,000——

750,000

750,000
750,000————

750,000
750,000

375,000——

375,000

375,000——

375,000

Averageinterest rate
(Note 1)

0.38236%(Unit: Thousands of yen)
Maturity
date

January 10,
2023

Use offunds(Note 4)

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

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)0.44804%

800,000——

800,000

1,600,000
800,000————

1,600,000
800,000

400,000——

400,000

400,000——

400,000

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

625,000——

625,000

0.75387%

625,000——

625,000

0.75387%

1,250,000——

1,250,000

2,500,000
1,250,000

—
—

—
—

2,500,000
1,250,000

500,000——

500,000

500,000——

500,000

1,500,000——

1,500,000

0.19371%

500,000——

500,000

0.23371%

0.38472%

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

March 30,
2023

April 6,2023

June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023

0.46400%

June 15,2023

0.35998%

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

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

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed(Note 4)

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

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

29
78

Category

Remarks

Longtermloanspayable(Note 2)

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
Shinkin Central Bank
The Norinchukin Bank
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Nippon Life Insurance
Company

Draw
down
date

January 12,
2016

January 10,
2020

March 31,2017

December16, 2015

June 13,
2016
June 13,2016

September
21, 2016

March 31,2021

Beginningbalance

Increase

Decrease

Endingbalance

Averageinterest rate
(Note 1)1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%700,000——

700,000

0.78362%
0.78362%700,000——

700,000

1,420,000——

1,420,000

1,420,000
720,000————

1,420,000
720,000

720,000——

720,000

720,000——

720,000

2,000,000——

2,000,000

1,500,000——

1,500,000

1,000,000——

1,000,000

500,000
500,000————

500,000
500,000

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

600,000——

600,000

0.85377%

600,000——

600,000

0.85377%

1,500,000——

1,500,000

3,000,000
1,500,000

—
—

—
—

3,000,000
1,500,000

1,500,000——

1,500,000

3,000,000
1,500,000

—
—

—
—

3,000,000
1,500,000

1,200,000——

1,200,000

2,400,000
1,200,000

—
—

—
—

2,400,000
1,200,000

600,000——

600,000

600,000——

600,000—

500,000—

500,000(Unit: Thousands of yen)
Maturity
date
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024

Use offunds(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)

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

0.34459%

January 12,2024(Note 3)

Unsecured,
non-guaranteed

0.41380%

March 29,2024

(Note 4)

Unsecured,
non-guaranteed

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

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

0.33150%(Note 5)June 17,2024(Note 4)

Unsecured,
non-guaranteed

0.36900%(Note 5)

December13, 2024(Note 4)

Unsecured,
non-guaranteed

0.54094%

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

0.25000%

March 31,2025

(Note 4)

Unsecured,
non-guaranteed

30
79Category
LenderSumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
Shinkin Central Bank
The Norinchukin Bank
THE NISHI-NIPPONCITY BANK, LTD.
The Bank of
Kyoto,Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Long-term Development Bank ofJapan Inc.
loans
payable Mizuho Trust &(Note 2) Banking Co.,LTD.
Shinkin Central Bank
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
The 77 Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co.,LTD.
The Norinchukin Bank

Draw
down
date

March 16,2017

March 16,2018

March 30,
2018

August 29,
2019

September
21, 2016

December13, 2016

March 7,2019

June 13,2017
June 28,2019

Beginningbalance

Increase

Endingbalance

Decrease

1,800,000——

1,800,000

3,600,000
1,800,000

—
—

—
—

3,600,000
1,800,000

900,000——

900,000

900,000——

900,000

440,000——

440,000

440,000——

440,000

440,000——

440,000

440,000
440,000————

440,000
440,000

500,000——

500,000

300,000——

300,000

500,000——

500,000

500,000
500,000————

500,000
500,000

250,000——

250,000

250,000——

250,000

1,500,000——

1,500,000

1,500,000——

1,500,000

2,100,000——

2,100,000

4,200,000
2,100,000

—
—

—
—

4,200,000
2,100,000

1,050,000——

1,050,000

1,050,000——

1,050,000

6,000,000——

6,000,000

1,100,000——

1,100,000

1,100,000——

1,100,000

1,100,000——

1,100,000

1,100,000
600,000————

1,100,000
600,000

1,750,000——

1,750,000

3,500,000
1,750,000

—
—

—
—

3,500,000
1,750,000

1,200,000——

1,200,000

1,200,000——

1,200,000

Averageinterest rate
(Note 1)0.70169%

0.46453%

0.58630%

0.09313%(Unit: Thousands of yen)
Maturity
date

September
16, 2025

September
16, 2025

September
16, 2025

February 27,2026

Use offunds(Note 3)(Note 4)(Note 4)(Note 4)

Remarks

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

0.61942%

March 19,2026

(Note 3)

Unsecured,
non-guaranteed

0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

0.35765%

September
7,2026(Note 4)

Unsecured,
non-guaranteed

0.71015%

December
14, 2026(Note 4)

Unsecured,
non-guaranteed

0.23004%

December28, 2026(Note 4)

Unsecured,
non-guaranteed

31
80

Category
LenderSumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Long-term
Sumitomo Mitsui
loansBanking Corporation
payable(Note 2) Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

Draw
down
date

January 9,
2018

January 10,
2020

June 13,2018

January 5,
2018

April 19,2019
April 19,2019
March 31,2020

January 10,
2019
January 10,
2019

May 31,2019

Beginningbalance

Increase

Endingbalance

Decrease

780,000——

780,000

1,560,000
780,000————

1,560,000
780,000

390,000——

390,000

390,000——

390,000

950,000——

950,000

950,000
950,000————

950,000
950,000

475,000——

475,000

475,000——

475,000

2,200,000——

2,200,000

2,200,000
2,200,000

—
—

—
—

2,200,000
2,200,000

200,000——

200,000

200,000——

200,000

320,000——

320,000

640,000
320,000————

640,000
320,000

160,000——

160,000

160,000——

160,000

1,000,000——

1,000,000

1,000,000
1,000,000

—
—

—
—

1,000,000
1,000,000

500,000——

500,000

500,000——

500,000

1,000,000——

1,000,000

500,000——

500,000

3,210,000——

3,210,000

3,210,000
1,610,000

—
—

—
—

3,210,000
1,610,000

1,610,000——

1,610,000

1,610,000——

1,610,000

1,165,000——

1,165,000

1,165,000
590,000————

1,165,000
590,000

590,000——

590,000

590,000——

590,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.70698%

January 9,2027(Note 4)

Unsecured,
non-guaranteed

0.43349%

January 12,2027(Note 4)

Unsecured,
non-guaranteed

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

0.54375%(Note 5)

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed

0.65264%January 11,2028(Note 3)

Unsecured,
non-guaranteed

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

32
81Category
LenderSumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
The Bank of Fukuoka,
Ltd.
The 77 Bank, Ltd.
THE NISHI-NIPPON
Long- CITY BANK, LTD.
term Development Bank ofloans Japan Inc.
payable Sumitomo Mitsui(Note 2) Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Total

Draw
down
date

July 9,2019

January
12, 2021

June 13,2019

December
21,2020

January
12, 2021

Beginningbalance

Increase

Endingbalance

Decrease

420,000——

420,000

420,000
420,000————

420,000
420,000

220,000——

220,000

220,000——

220,000—

1,500,000—

1,500,000—

1,500,000—

1,500,000—

1,000,000—

1,000,000—

1,000,000—

1,000,000

6,000,000——

6,000,000—

1,320,000—

1,320,000——

1,320,000
1,320,000——

1,320,000
1,320,000—

670,000—

670,000—

670,000—

670,000—

1,670,000—

1,670,000——

1,670,000
1,670,000——

1,670,000
1,670,000—

845,000—

845,000—

845,000—

845,000

216,350,000

17,500,000

12,500,000

221,350,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.49281%

July 10,2028(Note 4)

Unsecured,
non-guaranteed

0.27935%

July 12,2028(Note 4)

Unsecured,
non-guaranteed

0.56511%

December
13,2028(Note 4)

Unsecured,
non-guaranteed

0.45403%

December
21,2029(Note 4)

Unsecured,
non-guaranteed

0.45882%January
12, 2030(Note 4)

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

27,850,000

1–2 years
26,500,000

2–3 years
32,750,000

3–4 years
24,500,000

4–5 years
27,500,000

33
82

83

Independent Auditor’s Report84

85

Overview of API
Structure
The REITThe Sponsor

2

6

3

Sumitomo Mitsui
Trust Bank, Limited

General Meetingof Unitholders

The Asset Manager

4

CustodianTransfer Agent
General Administratorof InstitutionallyManaged Assets

1

5

Board of Directors

General Administrator
for Investment
Corporation Bonds
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.

Executive Director:
Kazushi Sato
Supervisory Director:
Yonosuke Yamada

7Supervisory Director:
Yoshinori Ariga

Support Companies
Tokyu Livable Inc.
Tokyu Community Corp.
Tokyu Hands Inc.
Tokyu Sports Oasis, Inc.
Tokyu Resorts & Stays Co., Ltd.

Independent Auditor
Ernst & Young
ShinNihon LLC

1Asset management agreement

2

Asset custody agreement

3

Transfer agency agreement

4

General administration agreement

5

Fiscal agency agreement

6

Sponsor support agreement,
outsourcing agreement

7

Affiliate support agreements

ProfileName

Activia Properties Inc.

Executive Director

Kazushi Sato

Address

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

Contact

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

Closing dates

May 31 and November 30

History
Sep. 7, 2011

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

Sep. 20, 2011

Implementation of registration by the prime minister under Article 189 of the Act on
Investment Trusts and Investment Corporations (registration number: Director of Kanto
Local Finance Bureau No. 73)

Jun. 13, 2012

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

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

https://www.activia-reit.co.jp/en/
Accessible from smartphone as well.
86

87

Overview of the Asset Manager

Information on Unitholders

Overview of the Asset Manager

Trends in Unit Prices(¥)

Corporate
name

TLC REIT Management Inc.

Established

October 6, 2009

Registration &LicenseCapital¥200 million

Shareholder

President andTokyu Land Corporation 100%
CEO

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

600,000

API (left axis)

Market Cap. (right axis)

May 31, 2021
API: ¥498,500
TSE REIT index: 2,074pt
Market Cap.: ¥384.5bn(¥ 100 millions)

5,000
4,500

550,000

4,000
500,000

3,500

450,000

Masaoki Kanematsu

3,000
2,500

400,000

2,000

350,000

DNA of Tokyu Land Corporation

1,500

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

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

300,000

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

250,000

0Jun. 13, End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of End of
End of
End of
End of2012 Nov. 2012 May 2013 Nov. 2013 May 2014 Nov. 2014 May 2015 Nov. 2015 May 2016 Nov. 2016 May 2017 Nov. 2017 May 2018 Nov. 2018 May 2019 Nov. 2019 May 2020 Nov. 2020 May 2021
(Note 1) Performance of TSE REIT index is indexed to API unit price as of June 13, 2012 being 100.
(Note 2) As API implemented a 2-for-1 investment unit split effected as of October 1, 2015, the closing prices from the listing date to the end of May 2015 are indicated as half asadjusted for the unit split.

Distribution of Unitholders
Other domestic
companies

162 (2.3%)

181 (2.5%)

Number ofunitholders
by holder type

Corporate Auditor
Board of Directors
Investment Committee

Compliance Committee
President & CEO

Sustainability
Promotion Council

Acquisition Priority
Review Meeting

Internal Audit Dept.

Compliance Dept.

Activia
Management Div.

Asset
Investment
Dept.

Environmental
Engineering
Dept.

Strategy
Dept.

Securities
companies

Individuals,other

280 (3.9%)

31,233 (4.0%)

26,555 (3.4%)

Securities
companies

22 (0.3%)

Comforia
Management Div.

Broadia
Management Div.

Asset
Management
Dept.

Strategy
Dept.

Asset
Management
Dept.

Strategy
Dept.

Asset
Management
Dept.

Foreignunitholders

153,597(19.9%)

Number ofinvestment units
by holder type771,224

Individuals,
other

Other domestic
companies

Financial
institutions

6,515 (91.0%)

88,408 (11.5%)

471,431 (61.1%)(Note 1) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.
(Note 2) “Individuals, other” includes goverments and local public entities.

Unitholder Memo
Account closing dates

May 31 and November 30

Unitholders’ meeting

To be held at least once every two years

Record date forunitholders’ meeting
Dates for determining cash
distribution payments
Administrator ofunitholders’ registry
Place of business of administratorof unitholders’ registry

Corporate
Human
Finance & Sustainability
Planning Resources Accounting Department
Dept.
Dept.
Dept.

Foreignunitholders

7,160

Shareholders’ Meeting

Corporate
Management Div.

500

200,000

Financial
institutions

Organizational Chart

1,000

Stock exchange
Newspaper to provide public notice

A record date based on Article 15, Section 1 of the Articles of Incorporation
May 31 and November 30
Sumitomo Mitsui Trust Bank, Limited
4-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan
Stock Transfer Agency Business Planning Department of
Sumitomo Mitsui Trust Bank, Limited
Mailing address: 8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan
0120-782-031 (toll-free, available within Japan only)
URL: https://www.smtb.jp/personal/agency/index.html (Japanese page)
J-REIT section of the Tokyo Stock Exchange (securities code: 3279)
Nihon Keizai Shimbun(Note) Newly established in April 2021

88

89

■ Change of registered address, name or seal, etc., or designation or change ofaccount for receipt of dividends:

Withholding tax rate on dividends of listed investment corporations
Commencement
date of thedividend payment

Please contact the securities company.

From January 1, 2014 through December 31, 2037

From January 1, 2038

20.315%20%■ Dividends
You can receive dividends by presenting a dividend receipt to the nearest head office/branch/office ofJapan Post Bank (bank agency). If the period for receipt has already expired, please specify how you wish
to receive dividends on the back of the dividend receipt, and then mail it to the Stock Transfer Agency

Dividend tax rate oflisted investment
corporations

Breakdown

Breakdown

Residence tax 5%

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

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

office/branch of the bank.
In addition, with respect to future dividends, if you wish to receive dividends through transfer to a bankaccount, etc., please take the necessary procedures at your securities company.
Telephone inquiries

Income tax
15%

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

Stock Transfer Agency Business Planning Department of Sumitomo Mitsui Trust Bank, Limited

0120-782-031

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

(toll-free, available within Japan only)This reconstruction special income tax will be imposed together when income tax is withheld at the source on
dividends paid by listed investment corporations.
Additional issues to be aware of are as follows.

■ Matters to be noted regarding the withholding tax on dividends of listed

investment corporations• In the case of an individual unitholder who holds 3% or more of the outstanding investment, the income tax
rate is 20.42% (income tax 20% + reconstruction special income tax 0.42% (Note)).
However, with regard to residence tax, a separate procedure is required.
• If a corporate unitholder receives dividends, no residence tax will be imposed.
(Note) 20% × reconstruction special income tax rate 2.1% = 0.42%.

■ Matters to be noted regarding the Reconstruction Special Income Tax• In cases where income tax is non-taxable or exempt, or where the income tax rate is less than the rate
provided by domestic laws due to the application of a tax treaty, the reconstruction special income tax will
not be imposed.
• With regard to taxes in the case where you have selected the method of allocation in proportion to thenumber of shares held, please ask your securities company.
For more details, please ask the tax office with jurisdiction over the place of tax payment.

Annual Schedule
May

June

Closing month for the
fiscal period endingin May90

July

Announcementof financial
results

AugustCommencementof payment ofdividends

September

Release of theSemi-Annual
ReportOctoberNovember

DecemberClosing month for the
fiscal period ending inNovemberJanuary

Announcementof financial
results

February

Commencementof payment ofdividends

March

April

Release of theSemi-Annual
Report91

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