Semi-Annual Report17

for theth Fiscal Period

From August 1, 2018 to January 31, 2019For a Superior Level of Living Comfort

1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo
https://www.comforia-reit.co.jp/en/

I. Overview of the Investment Corporation
Greetings
We are pleased to inform you that Comforia Residential REIT, Inc (the “Investment
Corporation”) successfully closed all accounts for the 17th Fiscal Period (fromAugust 1, 2018 to January 31, 2019). We would like to thank all of our unitholders
and stakeholders for their continued support and cooperation.
We hereby report on the asset management overview and results for the 17th
Fiscal Period.
During the 17th Fiscal Period, we additionally acquired GRANCREER CENTERMINAMI through borrowings as the first home for the elderly to be acquired by
the Investment Corporation. Subsequently, we sold one property (COMFORIA
MINAMIAOYAMA DEUX) in November 2018 in an effort to improve the quality ofour portfolio through selling the small-scale asset.

For a Superior Level of Living Comfort
COMFORIA is the name we have given to the urban rental residences
produced by the Tokyu Land Corporation. The word COMFORIA is a compound that
we coined from “comfort,” and “ia,” a Latin suffix meaning “place.”
The idea that residences are not just containers has given birth to
our COMFORIA series of rental residences made specifically for people
who wish to live freely and affluently in urban communities.
We invest in and manage the urban exclusive rental residence COMFORIA series,
which Tokyu Land Corporation has produced, to maximize our unitholders’ value.

Comforia Residential REIT, Inc

Takehiro Izawa
Executive Director (center)

Yoshihiro Kataoka

As a result, our portfolio as of the end of the 17th Fiscal Period stood at 117 propSupervisory Director (left)erties, with a total acquisition price of ¥206.0 billion. The average occupancy rate
Koji Yamamoto
Supervisory Director (right)
for the 17th Fiscal Period remained high at 96.6%. The Investment Corporation
had ¥8,128 million in operating revenue, ¥3,702 million in operating profit, and¥3,172 million in profit, all of which exceeded our forecasts, resulting in a distribution per unit (DPU) of ¥5,180. Furthermore, after the end of the 17th Fiscal Period, we also acquired nine properties in Tokyo 23 wards in February 2019 througha public offering for the sixth consecutive year since listing, as well as borrowings. In addition, we acquired one rental
residence in March 2019 using borrowings. The result is an asset size of 127 properties with a total acquisition price of¥226.9 billion (as of April 5, 2019). We intend to continue to make selective investments in high-quality properties mainlyin the Tokyo 23 wards.
Under our basic policies of “investments in residential properties with stable earnings and high growth potential” and“utilization of the Tokyu Fudosan Holdings Group,” we are carrying out investment in and management of rental residences, mainly in the Tokyo metropolitan area, targeting singles and small families, based on the concept and know-how
of the urban rental residence Comforia series, which the Tokyu Land Corporation has produced. In the next fiscal period
onward, we will continue to aim to achieve stable earnings and ensure the steady growth of our managed assets basedon medium- and long-term perspectives to maximize unitholders’ value. Your continued support and cooperation arehighly appreciated.

Financial Highlights
Operating revenue¥ 8,128 million
Operating profit¥ 3,702 million
Profit¥ 3,172 million
Distribution per unit (DPU)¥ 5,180
51.8 %
Total loan to value (LTV)

Number of properties
Acquisition priceAppraisal value
Occupancy rate at the 17th
Fiscal Period-end
Average occupancy rate

117 properties¥ 206.0 billion¥ 244.9 billion
96.4 %
96.6 %

Contents
I. Overview of the Investment Corporation
Greetings/Financial Highlights ........................................................................................ 1
	Selective Investments through Diversified Property
Acquisition Channels ............................................................................................................. 2External Growth Strategy .................................................................................................... 4
Internal Growth Strategy ..................................................................................................... 8
Financial Strategy ................................................................................................................... 12
Sustainability Initiatives ...................................................................................................... 13
Portfolio Map ............................................................................................................................ 14
Basic Policies .............................................................................................................................. 16	Overview of the Investment Corporation andAsset Management Company ....................................................................................... 17

II. Asset Management Report ............................................................................ 19
III. Financial Section ................................................................................................ 46
Balance Sheets ......................................................................................................................... 46
Statements of Income ......................................................................................................... 48
Statements of Changes in Unitholders’ Equity .................................................... 49
Statements of Cash Distributions ................................................................................ 50
Statements of Cash Flows ................................................................................................ 51
Notes .............................................................................................................................................. 52
Supplementary Schedules ............................................................................................... 62
Independent Auditor’s Report ....................................................................................... 67

1

Selective Investments through Diversified Property Acquisition Channels
During the 17th Fiscal Period, the Investment Corporation acquired one property in September 2018 and sold one property in November 2018. After entering the 18th Fiscal Period, the Investment Corporation implemented public offering in
February 2019 and acquired nine properties with funds procured through the public offering as well as borrowings. Furthermore, it acquired one property in March 2019 with borrowings.
The Investment Corporation will keep promoting external growth by continuing to invest selectively in high-quality properties mainly in Tokyo 23 wards, focusing on the collaboration with our sponsor group, as well as original sourcing by TLC
REIT Management Inc., while seeking expansion of the asset size and stable distribution levels.

Selective Investments Mainly in Tokyo 23 Wards (As of April 5, 2019)
Historical asset size
(Billions of yen)

200

150

Over around 6 years since listing,achieved approximately
3.2-fold growth

Acquired
COMFORIA AZABU EAST
Acquiredand one other
COMFORIA
property,
KANDAJINBOCHO and11 other properties sold two properties
Acquired COMFORIA
KOMABA and one
other property
Acquired COMFORIAKUDAN and 24 otherproperties

Tokyo
23 wards

188.5

168.0

Tokyo
23 wards

Tokyo
23 wards

94.0%

93.6%

Tokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

90.4%

92.8%

94.3%

Tokyo
23 wards

90.4%

Tokyo
23 wards

Tokyo
23 wards

90.9%

90.9%

Tokyo
23 wards

90.6%

92.9%

71.2

Tokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

Listed“End of 6th
Fiscal Period”“End of 7th
Fiscal Period”“End of 8th
Fiscal Period”“End of 9th
Fiscal Period”“End of 10th
Fiscal Period”“End of 11th
Fiscal Period”“End of 12th
Fiscal Period”“End of 13th
Fiscal Period”“End of 14th
Fiscal Period”“End of 15th
Fiscal Period”“End of 16th
Fiscal Period”“End of 17th
Fiscal Period”(Ended Jul. 2013)(Ended Jan. 2014)(Ended Jul. 2014)(Ended Jan. 2015)(Ended Jul. 2015)(Ended Jan. 2016)(Ended Jul. 2016)(Ended Jan. 2017)(Ended Jul. 2017)(Ended Jan. 2018)(Ended Jul. 2018)(Ended Jan. 2019)(Feb. 6, 2013)

96.3%

93.3%

April 2019

FuturestrategyDistribution perunit (DPU) (Note 1)—¥4,051¥4,203¥4,268¥4,296¥4,403¥4,339¥4,487¥4,549¥4,681¥4,788¥4,985¥5,180

Aim to improve DPU(ongoing basis)

Occupancy rate
at end of period

—

95.9%

96.2%

94.8%

95.2%

95.5%

96.2%

96.3%

96.5%

96.1%

96.7%

96.6%

96.4%

Consistently stable
occupancy rate

(Note 1) Since a four-for-one split of investment units was carried out effective August 1, 2014, the figures for DPU prior to the split are divided by four and rounded off to the nearest whole number.

Diversified Property Acquisition Channels Centering on Sponsor Groups(Note 2) Ratio of Tokyo 23 wards denotes ratio among rental residences.

Property Development by Tokyu Land Corporation (As of March 15, 2019)

The Investment Corporation promotes steady growth of asset size centered on the acquisition of assets from sponsor
groups, in particular Tokyu Land Corporation. In addition, we strive to reinforce our property acquisition channels throughthe Asset Management Company’s original information routes.

There is a pipeline of 25 properties containing 2,567 units located primarily within Tokyo 23 wards.

Ratio of Acquired Assets by Seller
17th Fiscal Period

18th Fiscal Period (up to April 5, 2019)

Acquisition fromsponsor group

1 property
4,150 million

¥

2

206.0

71.2
96.3%

0

187.4

122.8

100

92.5%

226.9

146.7

146.5

Tokyo
23 wards

Acquired
COMFORIA
SHIBAURA

202.1

164.4

116.2

74.5

Acquired
Acquired
COMFORIACOMFORIA
SHINJUKU EASTSIDE ICHIGAYAYAKUOJI
TOWER and three
and two other
other properties
properties

Acquired
COMFORIA
AKIHABARA EAST
and eight otherproperties

Future Strategy
Acquired
COMFORIA SHIBUYA Aim for an asset size of
Acquired
WEST and 9 other¥300 billion while
COMFORIA
Acquiredproperties
maintaining a portfolio
SETAGAYAKAMIUMAGRANCREER
with properties mainly
and six other
CENTER-MINAMI andproperties, sold one sold one property
in the Tokyo 23 wards
property

Acquisition from sponsor group+

Acquisition throughoriginal route of theAsset Management
Company

9 properties
18,650 million¥(As of April 5, 2019)
Other

29.1%

70.9%

2,220 million¥

Kita-ku

Itabashi-ku

Arakawa-ku
Toshima-ku
Ikebukuro Bunkyo-ku
Sumida-ku
Nakano-ku
Ueno Taito-ku
Shinjuku-ku
Suginami-ku

Acquisition fromsponsor group

1 property

Sponsor

46.1%

Tokyo 23 wards and theTokyo metropolitan area

Shinjuku

Chiyoda-ku

Shibuya-ku

Setagaya-ku

Shin-osaka
新大阪

HigashiYodogawa-ku

Kyoto

Kita-kuNishi-kuChuo-kuTokyo

Shibuya Chuo-ku

Koto-ku

Minato-ku

ShinagawaMeguro-ku Shinagawa-ku
Ota-kuProperties developed by TLC

Kansai area

5 properties
548 units

Other
sponsor groups

24.8%

20 properties
2,019 units

Suita-shi

Rental residenceShin-kobe

Shin-osaka

Operational rental residence (no specific plans for acquisition by the Investment Corporation)3

External Growth Strategy
During the 17th Fiscal Period, the Investment Corporation acquired GRANCREER CENTER-MINAMI from the sponsor as thefirst home for the elderly to be acquired by the Investment Corporation, and sold one of the properties. During the 18th
Fiscal Period, the Investment Corporation acquired nine properties from the sponsor at the time of the public offering andacquired one property through original route of the Asset Management Company in March 2019.
End of 16th FP

End of 17th FP

April 5, 2019

117 properties¥202.1 billion

117 properties¥206.0 billion

127 properties / ¥226.9 billion

Property Acquired in 17th Fiscal Period

Sponsordeveloped

Sponsor-developed
properties

Original
Route

Acquisition through original routeof the Asset Management Company

Warehousing

Warehousing properties
by sponsors

126 COMFORIA HIGASHINIHONBASHI
Warehousing

128 COMFORIA OOMORIKASHIMA

Address

40-3 Chigasaki Chuo, Tsuzuki-ku,
Yokohama-shi, Kanagawa

OwnershipCompletion dateAugust 2009

Residential units/
124 rooms/10 units
Rentable units
Acquisition date

September 25, 2018

Acquisition price¥4,150 million

Appraisal NOI
yield

4.8% (as of August 1, 2018)

Rentable units

4-4-5 Aobadai, Meguro-ku, Tokyo

10-minute walk from Shibuya Station on the JR
Yamanote Line, Tokyu Toyoko Line, Den-enNearest station/
toshi Line, and four other lines
Distance (on foot)6-minute walk from Shinsen Station on the
Keio Inokashira Line

123 COMFORIA KINSHICHO DEUX
Sponsordeveloped

Sub-central Tokyo

2-10-20 Mori, Koto-ku, Tokyo
5-minute walk from Kinshicho Station
Nearest station/ on the Tokyo Metro Hanzomon Lineand JR Sobu Line
Distance
5-minute walk from Sumiyoshi(on foot)
Station on the Tokyo Metro Hanzomon Line and Toei Shinjuku Line
Ownership
Ownership
Address

Completion date May 2016
Rentable units
96 units
Acquisition date February 1, 2019
Acquisition price ¥2,213 million
Appraisal NOI
4.4% (as of October 31, 2018)
yield

4

Ownership

OwnershipCompletion date

October 2015

Rentable units

124 units

Acquisition dateFebruary 1, 2019

Acquisition price¥5,397 million

Appraisal NOI
yield

4.3% (as of October 31, 2018)

Sponsordeveloped

Address

Sub-central Tokyo

6-25-5 Kameido, Koto-ku, Tokyo

Nearest station/ 3-minute walk from Kameido
Distance
Station on the JR Chuo Sobu Local(on foot)Line and Tobu Kameido Line
Ownership

OwnershipCompletion date January 2018
Rentable units

57 units

Acquisition date February 1, 2019
Acquisition price ¥2,050 million
Appraisal NOI
yield

4.4% (as of October 31, 2018)

Address

Sub-central Tokyo

4-11-5 Ohmori-nishi, Ota-ku, Tokyo

Nearest station/
9-minute walk from Omorimachi
Distance
Station on the Keikyu Line(on foot)
OwnershipCompletion date February 2007

33 units

Rentable units

45 units

Acquisition date March 20, 2019

Acquisition date March 20, 2019

Acquisition price ¥864 million

Acquisition price ¥1,096 million

Appraisal NOI
yield

Appraisal NOI
yield

4.6% (as of October 31, 2018)

Sub-central Tokyo

5-7-22 Kamiikedai, Ota-ku, Tokyo
13-minute walk from Magome
Nearest station/
Station on the Toei Asakusa Line
Distance
13-minute walk from Nagahara(on foot)
Station on the Tokyu Ikegami Line
Ownership
Ownership
Address

132 COMFORIA TAMA-PLAZA
Address
Nearest station/
Distance(on foot)
Ownership

124 COMFORIA KAMEIDO SOUTH

Warehousing

Ownership

Acquired in the 18th Fiscal Period
Original
Route2-4-7 Komagata, Taito-ku, Tokyo
2-minute walk from Kuramae
Nearest station/ Station on the Toei Oedo Line/
Distance
Asakusa Line
5-minute walk from Asakusa Station(on foot)on the Tokyo Metro Ginza Line
Ownership
Ownership
Address

129 COMFORIA OOMORIMACHI

OwnershipCompletion date February 2006
Rentable units
43 units
Acquisition date March 20, 2019
Acquisition price ¥1,842 million
Appraisal NOI
4.8% (as of October 31, 2018)yield

Sub-central Tokyo

Address

6-20-10 Oi, Shinagawa-ku, Tokyo

130 COMFORIA KAMIIKEDAI

Properties Acquired in 18th Fiscal Period (Through public offering)Sponsordeveloped

Sub-central Tokyo

Sub-central Tokyo

Completion date August 2006
Rentable units
48 units
Acquisition date March 20, 2019
Acquisition price ¥1,254 million
Appraisal NOI
4.6% (as of October 31, 2018)yield

Completion date May 2007

Warehousing

125 COMFORIA SHIBUYA WEST

Address

Ownership

3-minute walk from Center-Minami Station on
Nearest station/
the Yokohama Municipal Subway Blue Line
Distance (on foot)and 1 other line
Ownership

Warehousing

Nearest station/
8-minute walk from Omori Station
Distance
on the JR Keihin-Tohoku Line(on foot)

Tokyo metropolitan area

Sponsordeveloped

3-6-4 Higashi-Nihonbashi, Chuo-ku,
Tokyo
4-minute walk from Higashi-nihonNearest station/ bashi Station on the Toei Asakusa Line
Distance
2-minute walk from Bakuroyokoyama Station on the Toei
(on foot)
Shinjuku Line
Ownership
Ownership
Address

127 COMFORIA ASAKUSAKOMAGATA

Completion date September 2006
Rentable units
45 units
Acquisition date March 20, 2019
Acquisition price ¥1,194 million
Appraisal NOI
4.5% (as of October 31, 2018)yield

Warehousing

122 GRANCREER CENTER-MINAMI

Central Tokyo

Tokyo metropolitan area
2-12-1 Utsukushigaoka, Aoba-ku,
Yokohama-shi, Kanagawa
7-minute walk from Tama-Plaza
Station on the Tokyu Den-en-toshi
Line
OwnershipCompletion date March 2005
Rentable units
73 units
Acquisition date March 20, 2019
Acquisition price ¥2,220 million
Appraisal NOI
4.5% (as of January 31, 2019)yield

131 CAMPUS VILLAGE SHIINAMACHI
Sponsordeveloped

Sub-central Tokyo
Tokyo Metropolitan area
Other major cities
Ratio of Tokyo 23 wards (Rental Residence)Sub-central Tokyo

3-2-19, Nagasaki, Toshima-ku, Tokyo
7-minute walk from Higashi-nagasaki
Nearest station/
Station on the Seibu Ikebukuro Line
Distance
9-minute walk from Shiinamachi(on foot)
Station on the Seibu Ikebukuro Line
Ownership
Ownership
Address

Completion date January 2018
Rentable units
167 units
Acquisition date April 5, 2019
Acquisition price ¥2,740 million
Appraisal NOI
4.5% (as of October 31, 2018)
yield

Property sold during the 17th FP
19 COMFORIA MINAMIAOYAMA DEUX

Central Tokyo

Address

4-2-1 Minamiaoyama, Minato-ku,
Tokyo

Sale price¥540 million

Book value¥255 million

Completion date February 2003
Rentable units

6 units

After Public Offering andAcquisition of New Properties

Investment Ratio by Area
Central Tokyo

4.6% (as of October 31, 2018)

End of 16th FP

End of 17th FP(April 2019)

42.9%
48.1%
1.6%
7.4%
90.9%

42.0%
47.2%
3.6%
7.3%
90.9%

38.6%
50.5%
4.3%
6.6%
90.6%
5

External Growth Strategy
The Investment Corporation will promote continuous external growth by utilizing various growth drivers while keeping
focusing on the sponsor pipeline.

Diversification of External Growth Opportunities through Investment in
Operational Rental Residences Utilizing the Sponsor Groups
Student Apartment

Senior Residence

In April 2019, the Investment Corporation acquired a student apartment operated by National Students Information
Center, a company under Tokyu Fudosan Holdings Group.

In September 2018, the Investment Corporation acquireda senior residence operated by Tokyu E-Life Design Inc., agroup company of Tokyu Fudosan Holdings Group.

Improving the Portfolio Quality through Promotion of Asset Replacement andSecuring Internal Reserves from Gain on Sale
Several assets were replaced in 16th FP (ended Jul. 2018) and 17th FP (ended Jan. 2019)

Acquired Assets

Intention to Sell/
Effect of Replacement

Sold Assets
Tokyo 23 wards
Relatively newproperty[Acquisition]

Avoiding a risk of decline in market
competitiveness
Increase in Tokyo 23 wards ratio

Mutualacquisitionand sale
National Students Information Center Co., Ltd.

TOKYU E-LIFE DESIGN Inc.

• Established: 1988
• Business: Student apartments, student support, and support for social contribution
activities• Operation: 964 facilities/43,271 units (as of October 2018)• Established: 2003
• Business: M anagement, Operation, Commissioned Management, Consulting, etc.
for housing for elderly and fee-based nursing home
• Operation: 18 facilities/1,488 rooms (as of April 2019)

CAMPUS VILLAGE SHIINAMACHICOMFORIA SHINJUKU[Sale]
Tokyo
metropolitan
area

Decline in the average building age
Gain on sale ¥218 million
Secure internal reserves

GRANCREER CENTER-MINAMI

Replacing assets with well-locatedand relatively new properties
through original route

COMFORIA YOKOHAMAKANNAI

Shinjuku-ku, Tokyo
0.0 years

Yokohama-shi, Kanagawa
8.7 years
Tokyo 23 wards
Relatively newproperty[Acquisition]

Avoiding risk of increase in repairs andmaintenance fees
Increase in Tokyo 23 wards ratio
Decline in the average building age

Replacement

Location
Nearest station
Appraisal NOI yield
Rentable units
Completion date
Expiration of the contract(planned)

Toshima-ku, Tokyo
7-minute walk from Higashi-nagasaki Station on
the Seibu Ikebukuro Line
4.5% (as of October 31, 2018)167 units
January 2018
March 2028 (Rent revision is not allowed until
December 2022)

Location
Nearest station
Appraisal NOI yield
Residential units/Rentable units
Completion date
Expiration of the contract(planned)

Tsuzuki-ku, Yokohama-shi, Kanagawa
3-minute walk from Center-minami Station on
the Yokohama Municipal Subway Blue Line
4.8% (as of August 1, 2018)
124 rooms/10 units
August 2009
September 2038 (Rent revision is not allowed
until September 2028)

Stable trend in the number of students

Increase in the senior generation (65 or older)

The number of students has remained stable due to an increase in thepercentage of students entering universities, graduate schools andjunior colleges and an increase in the number of foreign students.
Stable rental demand for student apartments is expected.

The number of senior generations (65 years old or older) is
expected to increase further in the future.
Therefore the demand for senior residence is expected to increase.

(Thousand people)

3,500
3,000
2,500
2,000
1,500
1,000
500
0

Number of students (universities, graduate schools,
and junior colleges) (Left axis)
Number of foreign students (Right axis)(Thousand people)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

350
300
250
200
150
100
50
0

(Source) For the number of students, compiled by the Asset Management Company
from “School Basic Survey” by the Ministry of Education, Culture, Sports,
Science and Technology. For the number of foreign students, compiled by
the Asset Management Company from “Survey on the Presence of Foreign
Students” by Japan Student Services Organization.

Number of senior generations (65 years old or older)(Total of Tokyo, Kanagawa, Chiba and Saitama)(Thousand people)

12,500Assumption

10,000

Setagaya-ku, Tokyo
3.2 years

7,500

Komae-shi, Tokyo
28.2 years

0

Improving portfolio quality
through sale of old propertyTokyo
metropolitan
area[Acquisition]

Sale of small asset
Earnings stabilization
Operational Efficiency

Replacement

GRANCREER CENTER-MINAMI
Yokohama-shi, Kanagawa
9.2 years

Gain on sale ¥259 million
Secure internal reserves[Sale]
Tokyo 23 wards

COMFORIA
MINAMIAOYAMA DEUX

Sold at a price 30%
above the appraisal value

Minato-ku, Tokyo
15.7 years

5,000
2,500

Secure internal reserves

COMFORIA KOMAE[Sale]
Tokyo
metropolitan
area

COMFORIA RYOGOKU TROIS
and 2 other properties(Note) The building ages of the above properties are at the time of acquisition or sale.

2000

2005

2010

2015 2020 2025 2030 2035 2040

(Source) For the number from 2000 to 2015, compiled by the Asset Management
Company from “Demographic Statistics” by the Ministry of Internal Affairs andCommunications. For the number after 2020, compiled by the Asset Management Company from “Projected population of Japan by Region (Estimated in2018)” by National Institute of Population and Social Security Research.

Promote Acquisition of “Operational Rental Residence” as a Driver for Further External Growth
Invest in “Operational Rental Residence” in areas with high demand other than Tokyo 23 wards

6

COLLEGE SQUAREHACHIMANYAMA

Gain on sale ¥156 million

Effect of Asset Replacement• ¥434 million of the total gain on sale of ¥634 million has been set aside as reserve for reduction entry• Internal reserves secured through well-planned asset replacement will be allocated to temporary increases in expenses
for future large-scale repair works, etc., thereby stabilizing distribution level

Total Gain on Sale through Asset Replacement

As of April 5, 2019

Asset Type

Investment Target

Investment Ratio(acquisition price base)

Number of Properties/Acquisition Price

Investment Ratio (acquisition price base)

Residential
Property

Rental Residence

80%~100%

123 properties/¥217.9 billion

96.0%

Operational Rental Residence

0%~20%

4 properties/¥9.0 billion

4.0%

¥

634 million

Internal Reserves through Asset Replacement¥

434 million
7Internal Growth Strategy

Portfolio Focusing on “Tokyo 23 Wards” and “Near Stations”
With “in Tokyo 23 wards” and “near stations” as the focus, the Investment Corporation continues to acquire rental properties developed by sponsors and to use its Asset Management Company’s original property acquisition channels to selectively invest in high-quality properties.

Tokyo 23 Wards

Near Stations

Investment Area (Rental Residence)

Average Minutes on Foot from Nearest Stations(Rental Residence) (As of the end of 17th FP)(As of the end of 17th FP)

Tokyo
Metropolitan Area
1.6%

Other Major Cities
7.5%

Over 10 min.
2.9%
Central Tokyo
43.3%

5 to10 min.
34.3%

Within 5 min.
62.8%

Tokyo 23 Wards

Average Minutes
on Foot

90.9%

4.8 min.

Continuous Inflow of Younger Generations and Limited Supply of Rental Residences in Tokyo 23 Wards
While the net migration of younger generations (age 15 to 39 years old) in Tokyo 23 wards is significantly larger than thatof other cities, the number of construction starts of rental residences remains at a low level compared to its peak.
Net Migration of Younger Generations (Age 15~39 years old)(People)

2014

2015

2016

2017

2018

Construction Starts of Rental Residences in Tokyo 23 Wards(Units)90,00090,00080,00080,00070,00070,00060,00060,00050,00050,00040,00040,00030,00030,00020,00020,00010,00010,0000Sub-central Tokyo
47.6%

2013

Tokyo
23 Wards

Osaka
City

NagoyaCity

Remains at a low levelcompared to its peak0

Fukuoka Sapporo
City
City

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018

Backed by strong rental demand mainly in Tokyo 23 wards, steady rent increases have been realized recently, while maintaining high occupancy rates.

(Source) Compiled by the Asset Management Company from “Basic Resident Register
Population Transfer Report” by the Statistics Bureau, Ministry of Internal Affairs
and Communications(Source) Compiled by Asset Management Company from “statistics on residence
starts” by the Ministry of Land, Infrastructure, Transport and Tourism

Enhancement of Corporate Welfare Programs and Increase in Corporate Contracts
Both the percentage of companies offering housing allowance of ¥60,000 or more per month and the amount of average
payment have increased. Also, an increase in the ratio of corporate lessee has been seen in rental residences owned by
the Investment Corporation.

Achieved top-class rent increase amongresidential J-REITs
Rent change on tenant turnover
the highest ever

+5.7% (17th FP)

Housing Allowance Paid to Single-Person Households

Average rent per tsubo
the highest-ever level+0.7% (17th FP)

2013

2016

¥60,000 or more

1.3%

9.0%

¥50,000~¥60,000

2.6%

1.5%

¥40,000~¥50,000

7.9%

10.4%

¥30,000~¥40,000

6.6%

10.5%

¥20,000~¥30,000

21.1%

16.4%

Approx.
7 times

Lessee Type of Rental Residences Owned by theInvestment Corporation
Corporate

30.0%

End of 11th FP(Ended Jan. 2016)

Top-class rent increase among residential J-REITs enabled by
the Investment Corporation’s location strategy
The Investment Corporation has realized recordhigh rent increase for six consecutive fiscal periods.
In Tokyo 23 wards, there is an inflow of many young
people every year while supply of rental residences
is limited, as shown in the next page. Against the
backdrop of this supply and demand environment,
occupancy rate remains stable at a high rate andrent has been strongly increasing in recent years.
The Investment Corporation has invested under the8

policy of “selective investments in high-quality
properties mainly in Tokyo 23 wards,” especially
focusing on highly convenient properties near stations. We believe that such location strategy of theInvestment Corporation enables top-class rent
increases among residential J-REITs under the favorable rental residence market, by building its portfolio centered on properties that are “in Tokyo 23
wards” and “near stations.”

Hiroyoshi Akiyama
Manager
Comforia Management Division
Asset Management Department
TLC REIT Management Inc.
Hobby: Field hockey¥10,000~¥20,000

35.6%

30.0%

25.0%

23.9%

Average¥18,271¥22,210

Individual
70.0%

Corporate

36.6%

End of 17th FP

28.4%

Less than ¥10,000

Lessee type

Corporate:(Ended Jan. 2019)

Lessee type

Corporate:+21.6%

36.6%

Individual

63.4%(Source) Compiled by the Asset Management Company based on "Rosei Jiho" (No. 3946 (Feb. 23, 2018) and No. 3883 (Feb. 27, 2015)), published by Roumugyousei Co., Ltd.

9

Internal Growth Strategy
Occupancy Rates

Internal Growth Driven by Location Strategies Focusing on “Tokyo 23 Wards”
and “Near Stations”

The average occupancy rate for the 17th Fiscal Period remained high at 96.6%.
Total portfolio

(%)

100
96.7%

97.5%

96.6%

96.1%

96.6%

96.2%

95.7%

96.6%

97.0%

Total portfolio (year-on-year)

96.7%

96.6%

96.4%

96.4%

The rate of rent change upon tenant turnover for the 17th Fiscal Period is on an upward trend mainly in properties inCentral Tokyo and those near stations.
Rent Change Upon Tenant Turnover by Type in 17th FP (Total Portfolio)➊ By location➋ By minutes on foot from the nearest stations➌ By building age

High upward trend mainly in Central Tokyo

High upward trend in properties near stations

Aged properties have also recorded rent increase

95
(%)

90

Central Tokyo100

Sub-central Tokyo

Tokyo metropolitan area

Other major cities

10.0

9.2%

7.0%

7.5

6.2%
5.0%

5.0

95

4.7%

4.6%

5.0%

4.4%

3.6%

2.5
90

15th FPJan.
2018

16th FP
Feb.

Mar.

Apr.

17th FP

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2019

(%)

Rates of Rent Change Upon Tenant Turnover (Total Portfolio)
(%)

+5.7%
+4.6%

-2.0

+3.7%

+3.4%

4.0

-1.3%

-0.4%

-0.5%

+1.5%

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP(Ended Jul. 2014)(Ended Jan. 2015)(Ended Jul. 2015)(Ended Jan. 2016)(Ended Jul. 2016)(Ended Jan. 2017)(Ended Jul. 2017)(Ended Jan. 2018)(Ended Jul. 2018)(Ended Jan. 2019)

75
50
25
0

10

Increase
27.0%
No change
13.8%
Decrease
59.3%

No change

Decrease

No change

76.2%

79.6%
50

9.8%
16.1%

8.9%
14.9%

8.2%
12.2%

6th FP

15th FP

16th FP

17th FP(Ended Jul. 2013)(Listing)(Ended Jan. 2018)(Ended Jul. 2018)(Ended Jan. 2019)18.2%

No change
98.5%

81.8%

Decrease
1.5%
6th FP

0.0%
15th FP

0.1%
16th FP

0.0%
17th FP(Ended Jan. 2018)(Ended Jul. 2018)(Ended Jan. 2019)

14.3%

85.6%

27.2%

72.8%

Sub-central Tokyo

Tokyo metropolitan area

Total Portfolio

Other major cities

3.0(Ended Jul. 2013)(Listing)

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP(Ended Jul. 2014)(Ended Jan. 2015)(Ended Jul. 2015)(Ended Jan. 2016)(Ended Jul. 2016)(Ended Jan. 2017)(Ended Jul. 2017)(Ended Jan. 2018)(Ended Jul. 2018)(Ended Jan. 2019)

Continuous Increase in Average Rent per Tsubo
The average rent per tsubo for properties continuously owned during 17th FP increased by 0.7% from the end of 16th FP¥13,291 per tsubo

13,300+0.7%

13,200¥13,203 per tsubo
13,150End of 16th FP(Ended Jul. 2018)

25
0

Over
12 yrs.

Decrease

Increase
0.0%

75
74.0%

8 yrs. ~12 yrs.

13,250
Increase(%)

100

4 yrs. ~8 yrs.

(Yen/tsubo)

Lease Renewals
Increase

Within4 yrs.

Average Rent per Tsubo (Properties continuously owned during 17th FP)

The rate of rent increase in the 17th Fiscal Period marked record high on both tenant turnover and lease renewals on
the back of high occupancy rates.
(%)

Central Tokyo-3.0

Impact of Rent Increases on Tenant Turnover/Lease Renewals

100Over 5 min.

0.0

-0.7%

Tenant Turnover

Within 5 min.

6.0

6.0

0.0

Sub-central Tokyo
Other
Tokyo Metropolitan Major Cities
Area

9.0

The rate of rent change upon tenant turnover for the 17th Fiscal Period marked a record high of + 5.7%.

+1.0%

CentralTokyo

Rent Change Upon Tenant Turnover by Location (Total Portfolio)

Rent Change Upon Tenant Turnover (Total Portfolio)

2.0

-0.1%

0.0

(Aug. 2018)(Sep. 2018)(Oct. 2018)(Nov. 2018)(Dec. 2018)

End of 17th FP(Ended Jan. 2019)

Increase in Average Rent per Tsubo for Properties Continuously Owned During Each FP
14th FP (ended Jul. 2017)15th FP (ended Jan. 2018)

16th FP (ended Jul. 2018)

17th FP (ended Jan. 2019)

+0.5%

+0.5%

+0.7%

+0.7%
11

Financial Strategy

Sustainability Initiatives

The Investment Corporation will carry out equity financing (additional issuance of investment units) and debt financing(borrowings of funds and issuance of investment corporation bonds) while paying attention to financial soundness andearnings stability. Furthermore, the Investment Corporation will control its balance sheets by maintaining an LTV (interestbearing debt) (%) level to secure funds.

Interest-Bearing Debt
End of 15th Fiscal Period End of 16th Fiscal Period End of 17th Fiscal Period(ended Jan. 31, 2018)(ended Jul. 31, 2018)(ended Jan. 31, 2019)

50.8%
85.2%
87.0%
4.2 years
0.64%

51.0%
82.0%
88.7%
4.4 years
0.64%

51.8%
86.2%
87.3%
4.3 years
0.62%

LTV (Note)
Long-term debt ratio
Fixed-interest debt ratio
Average maturity
Weighted avg. interest rate

Initiatives for Environment
Acquisition of “Green Star,” the highest rating in
the GRESB Real Estate Assessment

Initiatives to improve energy efficiencies ofowned properties

The Investment Corporation participated in the GRESBReal Estate Assessment for the first time in 2018 andacquired the highest “Green Star” rating for its initiatives onenvironmental consideration and sustainability,
being evaluated as excellent in “Management &Policy” and “Implementation and Measurement”

The Investment Corporation promotes initiatives to reduce
power consumption and environmental impact, including
using LEDs in common spaces and replacing air-conditioners in each unit

Implementation of LED lighting(Note) Interest-bearing debt balance/total assets

Initiatives for Governance Emphasizing Unitholders’ Value

Diversification of Repayment Dates

Securing objectivity in decision-making process

The expected repayments of debt and investment corporation bonds as of January 31, 2019 are as follows:(Millions of yen)

15,0005,000
0Existing loans

Borrowings in the 17th period

9,400

9,270 9,650

12,595

10,0007,925
3,450 3,700

8,800
6,000 6,560

5,500 3,000

1,000

2,500 7,720
1,000 5,860 3,000
1,000
6,900 5,520
6,270

Unsecured bonds

Commitment line▼

5,000 4,950 4,150 4,200
1,500

18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP

46th
FP

5,000

Loan Balances
0.5%
0.5%
0.5%
0.5%

30.1%

8.2%

15.8%
16.5%

17.0%

LenderCompliance Committee deliberation andresolution (Note 1)▼

Sponsor’s investment ratio

Approval by each Chief Division Officer▼▼

Prior approval by the investment
corporation’s board of directors (Note 1)

Report to investment
corporation▼

32,325

Sumitomo Mitsui Trust Bank, Limited

18,245

Mizuho Bank, Ltd.

17,710▼Development Bank of Japan Inc.

17,010

Report to the Board of Directors

Sumitomo Mitsui Banking Corporation

8,840

Mizuho Trust & Banking Co., Ltd.

3,000

The Norinchukin Bank

2,800

The Bank of Fukuoka, Ltd.

2,300

Shinkin Central Bank

1,300

Kiraboshi Bank, Ltd.

1,000

Resona Bank, Ltd.

1,000

The 77 Bank, Ltd.

500

The Daishi Bank, Ltd.

500

Taiyo Life Insurance Company

500

Total

500
107,530

Credit Rating (As of January 31, 2019)

At the public offering in February 2019, the underwriters
sold 5,384 units among the investment units the Investment Corporation newly issued to the sponsor as the party
designated as purchaser by the Investment Corporation.
In terms of capital relationship, the Investment Corporation
aims to make a strong relationship with the sponsors andto achieve mutual interests improvement by aligning theinterests of the unitholders to that of the sponsor

▼
▼
▼
▼

MUFG Bank, Ltd.

Nippon Life Insurance Company

12

▼

▼
Loan balance (millions of yen)

Aligning interests between unitholders and thesponsorApproval by compliance officer

Investment Committee deliberation and resolution (Note 2)

The Investment Corporation’s loan balances as of January 31, 2019 are as follows:

0.9%
0.9%
1.2%
2.1%
2.6%
2.8%

The Investment Corporation has appointed third-party realestate appraiser to its Investment Committee to secure objectivity in decision-making process for property acquisitions
Proposal by responsible department

1,000 2,000
3,150 2,200

4,925

Replacement of air conditioners

8.9% (after public offering)(Note 1) If asset acquisitions, etc. are transactions with an interested party, deliberations
and resolutions of the Compliance Committee and prior consent based on
approval by the Board of Directors of the Investment Corporation are required.
(Note 2) If anticipated acquisition properties are health care facilities, outside experts inhealth care facilities will provide advice. In addition to receiving reports preparedby outside experts pertaining to healthcare facilities, the Investment Committee
shall have such outside experts attend the Investment Committee as observers
and hear their opinions as necessary.

Initiatives for Society
Employee satisfaction survey

In-house training system

The Asset Management Company conducts an annual
employee satisfaction survey and promotes various measures to improve employees’ satisfaction

Regular in-house training sessions for employees and officers of the Asset Management Company with outside
instructors with abundant knowledge and experience

Qualification support system
Subsidizing participation in various seminars for acquiring and maintaining qualifications for employees and officers of
the Asset Management Company
Number of Asset Management Company’s Employees with Certificates (As of the end of January, 2019)

Rating agency

Rating category

RatingOutlookJapan Credit Rating
Agency, Ltd.

Long-term issuer rating

AA-

StableReal Estate Broker
ARES Certified Master
Real Estate Appraiser
Member of the Securities Analysts Association of Japan

75
43
7
2

First Class Architect
Tax Accountant
Certified Building Administrator

4
1
17

13

Portfolio Map (As of April 5, 2019)
The Investment Corporation manages assets with superb accessibility
located mainly in the Tokyo 23 wards.
Central Tokyo
1 COMFORIA NIHONBASHI NINGYOCHO 30 COMFORIA MITA NORTH

69 COMFORIA KITASANDO

86 COMFORIA AZABUJUBAN

31 COMFORIA SHIBAURA BOWHOUSE

70 COMFORIA YOYOGIUEHARA

92 COMFORIA SHINJUKUGYOENⅠ

3 COMFORIA SHIMOOCHIAI

48 COMFORIA SHIROKANETAKANAWA 71 COMFORIA SASAZUKA

93 COMFORIA KAGURAZAKA DEUX

4 COMFORIA HIGASHINAKANO

49 COMFORIA NIHONBASHI NINGYOCHO EAST 72 COMFORIA SHINJUKUGYOENⅡ

96 COMFORIA AZABU EAST

14 COMFORIA GINZA EAST

50 COMFORIA ATAGO

73 COMFORIA ICHIGAYAYANAGICHO 98 COMFORIA SHINJUKU EASTSIDE TOWER

15 COMFORIA AZABUDAI

56 COMFORIA KUDAN

74 COMFORIA KAGURAZAKA

57 COMFORIA NIHONBASHI NINGYOCHO NORTH 80 COMFORIA NIBANCHO

104 COMFORIA AKIHABARA EAST

17 COMFORIA NISHIAZABU

58 COMFORIA SHINKAWA

81 COMFORIA NISHISHINJUKU

105 COMFORIA MITA TROIS

18 COMFORIA MINAMIAOYAMA

59 COMFORIA AKASAKA

83 COMFORIA KANDAJINBOCHO

113 COMFORIA SHIBAURA

20 COMFORIA NISHIWASEDA

60 COMFORIA MITA EAST

84 COMFORIA NIHONBASHI

120 COMFORIA SHINJUKU

26 COMFORIA HARAJYUKU

61 COMFORIA SHIBAURA CANAL

85 COMFORIA TAMACHI

126 COMFORIA HIGASHINIHONBASHI

Sub-central Tokyo
38 COMFORIA MISYUKU

82 COMFORIA KOMABA
87 COMFORIA KINSHICHO

39 COMFORIA GAKUGEIDAIGAKU

40 COMFORIA HIGASHINAKANO DEUX 88 COMFORIA MINAMISUNAMACHI

8 COMFORIA NAKANO

41 COMFORIA HIGASHIIKEBUKURO WEST 89 COMFORIA HIGASHISHINAGAWA 128 COMFORIA OMORIKASHIMA
43 COMFORIA RYOGOKU DEUX

90 COMFORIA MEGUROYAKUMO

129 COMFORIA OMORIMACHI

44 COMFORIA OMORI DEUX

91 COMFORIA YOGA

130 COMFORIA KAMIIKEDAI

11 COMFORIA OYAMA

45 COMFORIA MACHIYA

94 COMFORIA ITABASHINAKAJUKU131 CAMPUS VILLAGE SHIINAMACHI

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 51 COMFORIA ASAKUSABASHI

97 COMFORIA SHINAGAWA EAST

13 COMFORIA KOMAZAWA

52 COMFORIA RYOGOKU SOUTH

99 COMFORIA OJIMA

21 COMFORIA KOISHIKAWA

53 COMFORIA TOYOSU

100 COMFORIA OMORI TROIS

22 COMFORIA SENGOKU

55 COMFORIA SUMIDA-TACHIBANA 106 COMFORIA BUNKYOHAKUSAN

114 COMFORIA UENOIRIYA
115 COMFORIA IKEJIRI

33 COMFORIA OSHIAGE

66 COMFORIA KIBAKOEN

116 COMFORIA SETAGAYAKAMIUMA

34 COMFORIA HONJOAZUMABASHI

67 COMFORIA MEGURO CHOJAMARU 118 COMFORIA AKABANEIWABUCHI

75 COMFORIA HIGASHIIKEBUKURO EAST 121 COLLEGE SQUARE HACHIMANYAMA

37 COMFORIA HIMONYA

76 COMFORIA HIGASHIIKEBUKURO

6 properties

46 COMFORIA ICHIKAWAMYODEN

112 COMFORIA GYOTOKU

47 COMFORIA YATSUKA

122 GRANCREER CENTER-MINAMI

77 COMFORIA SHINKOYASU

132 COMFORIA TAMA-PLAZA

109 COMFORIA SHINSAIBASHI EAST

78 COMFORIA SHINSAKAE

110 COMFORIA KYOMACHIBORI

79 COMFORIA KITAHORIE

111 COMFORIA AWAZA

95 COMFORIA KITASANJO

117 COMFORIA KITAHAMA

Katsushika-ku

64
41
Taito
Ikebukuro 76 75 22 106
114 -ku
Sumida-ku
Bunkyo-ku
3
Shinjuku
Ueno
55
21
6
5
8
33
4 20 -ku
624012729 34
63
74
2
98
32
87
81 120104 51 119
73 93
83
84
56
123 124
103
52
Shinjuku 72
126
43
Chiyoda 57 49
80
99
92
65 35
-ku
1
Tokyo
12
Shibuya-ku 69
36
58
88
71
59
26 18
14
66
9
Koto-ku70
50
15
Chuo-ku
Shibuya
17 86 96 16
125
53
82
23
30 60
48 105 61
115
38
113
MinatoMeguro67 -ku 85 31-ku
13 116 39
ShinagawaAcquired in the
18th Fiscal Period

131

Nakano-ku

Kichijoji
Suginami-ku

Tokyo

121
108

Setagaya-ku

97
89

Nishifunabashi
Edogawa-ku

112

46

123 COMFORIAKINSHICHO DEUX

Acquired in the
18th Fiscal Period

7

130
68

128

44
100
Ota-ku 129
10 107132

128 COMFORIAOMORIKASHIMA

126 COMFORIAHIGASHINIHONBASHI

Acquired in the
18th Fiscal Period

122

123 COMFORIA KINSHICHO DEUX
130 COMFORIA KAMIIKEDAI

129 COMFORIA OMORIMACHI

Acquired in the
18th Fiscal Period

Total

127

properties77

10 properties

54 COMFORIA SHIN-OSAKA

45

119 COMFORIA RYOGOKU TROIS

36 COMFORIA MONZENNAKACHOTokyo metropolitan area

Arakawa-ku

Toshima-ku 2795 10132 COMFORIA ASAKUSABASHI DEUX 65 COMFORIA MORISHITA

35 COMFORIA KIYOSUMISHIRAKAWA TROIS 68 COMFORIA NISHIMAGOME

94

Shinagawa-ku

108 COLLEGE COURT HACHIMANYAMA

64 COMFORIA HONKOMAGOME

1137

27 COMFORIA IKEBUKURO

14

Nerima-ku

Acquired in the
18th Fiscal Period

Kita-ku90

107 COMFORIA KAMATA

102 COMFORIA OGIMACHI

Itabashi-ku

91

23 COMFORIA DAIKANYAMAAOBADAI 62 COMFORIA UENOHIROKOJI
63 COMFORIA KASUGATOMISAKA

Adachi-ku

Akabane125 COMFORIA SHIBUYA WEST

9 COMFORIA SHIMOKITAZAWA

101 COMFORIA SAPPORO SHOKUBUTSUEN

118

127 COMFORIA ASAKUSAKOMAGATA

10 COMFORIA NISHIKAMATA

124 COMFORIA
KAMEIDO SOUTH

Acquired in the
18th Fiscal Period

Acquired in the
18th Fiscal Period

124 COMFORIA KAMEIDO SOUTH

6 COMFORIA ASAKUSAMATSUGAYA

Chiba

47

67 properties

7 COMFORIA NISHIOIOther major cities

127 COMFORIAASAKUSAKOMAGATA

103 COMFORIA ICHIGAYAYAKUOJI

16 COMFORIA SHIBAKOEN

29 COMFORIA RYOGOKUISHIWARA

Saitama

44 properties

2 COMFORIA WASEDA

5 COMFORIA BUNKYOKASUGAVILLAGE
131 CAMPUSSHIINAMACHI

125 COMFORIA SHIBUYA WEST

Yokohama

Acquired in the
18th Fiscal Period

132 COMFORIA TAMA-PLAZA

78
54 79 102 109 110 111 117

Acquired in the
18th Fiscal Period

Central Tokyo
Sub-central Tokyo
Tokyo metropolitan area

Kanagawa
Acquired in the
18th Fiscal Period

Other major cities
15Basic Policies

Overview of the Investment Corporation and Asset Management Company

We invest intensively in rental residences for singles and small families, mainly in the Tokyo metropolitan area, based on
our basic policies of “investments in residential properties with stable earnings and high growth potential” and “utilizationof the Tokyu Fudosan Holdings Group,” with the aim of ensuring stable earnings over the medium and long term andmaximizing our unitholders’ value.

COMFORIA Series

Overview of the Investment Corporation (As of January 31, 2019)
Name of the investment corporation Comforia Residential REIT, Inc
Representative
Takehiro Izawa, Executive Director
1-1 Minami-Aoyama 1-chome,
Address
Minato-ku, Tokyo 107-0062, Japan

June 8, 2010

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

June 30, 2010
February 6, 2013For a Superior Level of Living Comfort
COMFORIA is the name we have given to the urban rental residences produced by the Tokyu Land Corporation.
The word COMFORIA is a compound that we coined from “comfort,” and “ia,” a Latin suffix meaning “place.”
The idea that residences are not just containers has given birth to our “COMFORIA” series of rental residences madespecifically for people who wish to live freely and affluently in urban communities.
COMFORIA offers living comfort beyond expectation and surpasses the level of mere convenience in many ways.

Implementation of registration by the prime minister under Article 187 of the Act on Investment Trusts and Investment Corporations(registration number: Director of Kanto Finance Bureau No. 71)
Listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange

Structure
Sponsor

The Investment Corporation

TOKYU LAND CORPORATION
2

1

Comforia Residential REIT, Inc

TLC REIT Management Inc.

COMFORIA knows
what high quality
feels like.

COMFORIA knows
where peace of mind
comes from.

COMFORIA knows
how residents feel.

Value Chain of the Tokyu Fudosan Holdings GroupWe have concluded sponsor support agreements, support agreements and property management agreements for managed assets with the Asset Management Company and the Tokyu Fudosan Holdings Group companies to fully utilize thevalue chain and expertise of the Tokyu Fudosan Holdings Group. With the support of the Tokyu Fudosan Holdings Group
companies through such agreements, we aim to expand our asset size (external growth), and maintain and increase asset
value (internal growth).
Sponsor support
Sponsorsupportagreement

TOKYU LAND CORPORATION

General Administration (accounting, etc.)
Heiseikaikeisha Tax Corporation
General Administration (corporation bonds)

Supporting Companies

Board of Directors

TOKYU LIVABLE, INC.
TOKYU COMMUNITY CORP.
Tokyu Housing Lease Corporation
National Students Information Center Co., Ltd.
TOKYU E-LIFE DESIGN Inc.
EWEL, Inc.
TOKYU SPORTS OASIS, Inc.

Executive Director: Takehiro Izawa
Supervisory Director: Yoshihiro Kataoka
Supervisory Director: Koji Yamamoto

4

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
1 Asset management agreement
2 Asset custody agreement, Administrative service

agreement, Transfer agency agreement

AuditorErnst & Young ShinNihon LLC

3 Accounting service agreement
4 Fiscal, issuing and payment agency agreement
5 Sponsor support agreement
6 Support agreement

Overview of the Asset Management Company (As of January 31, 2019)
Trade name
TLC REIT Management Inc.
Representative Hiroyuki Tohmata, President & CEO
1-1 Minami-Aoyama 1-chome,
Address
Minato-ku, Tokyo 107-0062, Japan
Established
October 2009
Capital¥200 million

Shareholder

Tokyu Land Corporation 100%

Registrations/
LicensesFinancial 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 (2) No. 91139

Overview of Organization
Rental residence management

Property information

3

Unitholders’ Meeting

6

COMFORIA knows
how valuable time is.

Asset Custodian General Administration(operation of the administrative instrument)
Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation

5
Asset Management Company

Four Advantages COMFORIA Offers

Supportagreement/
PM contract

Shareholders’ Meeting
Corporate Auditor
Board of Directors

Tokyu Housing Lease Corporation

Compliance Committee

Investment Committee
TOKYU LIVABLE, INC.

TLC REIT Management Inc.

Services for residents
Supportagreement
Supportagreement

16

Fiscal period-end

History

We will invest in and manage rental residences, fully utilizing the concept and expertise of the urban rental residence
Comforia series, which Tokyu Land Corporation has produced.

Supportagreement

TLC REIT Management, Inc.
Tel: +81-3-3401-1090
January 31 and July 31 of each year

Inquiries

EWEL, Inc.

TOKYU SPORTS OASIS, Inc.

Supportagreement

President & CEO
TOKYU COMMUNITY CORP.

Management of operational rental residences

Acquisition Priority Review Meeting
Internal Audit Dept.

Compliance Dept.

Support agreement(condominiums
for students)
National Students Information Center Co., Ltd.
Support agreement(housing for theelderly)

TOKYU E-LIFE DESIGN Inc.

Corporate
Planning &Administration
Dept.

Finance &Accounting
Dept.

Asset
Investment
Dept.

Environmental
Engineering
Dept.

Activia Management Div.

Comforia Management Div.

Broadia Management Div.

Strategic Mgt.
Dept.

Strategic Mgt.
Dept.

Strategic Mgt.
Dept.

Asset Mgt.
Dept.

Asset Mgt.
Dept.

Asset Mgt.
Dept.

17

II. Asset Management Report
II. Asset Management Report

Overview of Asset Management

Asset Management Report for the 17th Fiscal Period(Semi-Annual Report)

Overview of Asset Management

1. Performance of the Investment Corporation
Fiscal period

13th
Fiscal Period

14th
Fiscal Period

15th
Fiscal Period

16th
Fiscal Period

17th
Fiscal PeriodBusiness period

FromAug. 1, 2016 toJan. 31, 2017

From
Feb. 1, 2017 toJul. 31, 2017

From
Aug. 1, 2017 toJan. 31, 2018

From
Feb. 1, 2018 toJul. 31, 2018

From
Aug. 1, 2018 toJan. 31, 2019

From August 1, 2018 to January 31, 2019

Comforia Residential REIT, Inc
1-1 Minami-Aoyama 1-chome, Minato-ku,
Tokyo 107-0062, Japan

Operating revenue(millions of yen)

6,674

7,276

7,357

8,147

8,128

[Rent revenue - real estate](millions of yen)

[6,674][7,276][7,357][7,771][7,869]Operating expenses(millions of yen)

3,885

4,178

4,188

4,444

4,425

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

[3,249][3,518][3,496][3,745][3,687]

Operating profit(millions of yen)

2,788

3,098

3,168

3,703

3,702

Ordinary profit(millions of yen)

2,341

2,613

2,680

3,204

3,178

Profit(millions of yen)

2,335

2,608

2,674

3,191

3,172

Total assets(millions of yen)

183,902205,121206,171219,210

223,829[Period-on-period change](%)

Net assets

II.
III.

Asset Management Report
Financial Section
Balance Sheets
Statements of Income
Statements of Changes in Unitholders’ Equity
Statements of Cash Distributions
Statements of Cash Flows
Notes
Supplementary Schedules
Independent Auditor’s Report(millions of yen)

[Period-on-period change](%)[11.5]

[0.5]

[6.3]

[2.1]

97,25897,294

103,043

103,289[0.0][14.2]

[0.0]

[5.9]

[0.2]

(millions of yen)

82,743

94,557

94,557

99,814

99,814

Number of investment units issued(units)513,504

563,694563,694586,994586,994

Net assets per unit

(yen)

165,863

172,537

172,601

175,544

175,964

Total distributions(millions of yen)

2,335

2,638

2,698

2,926

3,040

Distribution per unit

(yen)

4,549

4,681

4,788

4,985

5,180

[Earnings distribution per unit](yen)[4,549][4,681][4,788][4,985][5,180][Distribution in excess of earnings
per unit]

(yen)

[－]

[－]

[－]

[－]

[－]

Return on assets(Note 1)

(%)

1.3

1.3

1.3

1.5

1.4

Return on unitholders’ equity(Note 2)

(%)

2.7

2.9

2.7

3.2

3.1

Unitholders’ equity ratio(Note 3)

(%)

46.3

47.4

47.2

47.0

46.1

Unitholders’ capital[Period-on-period change]
Interest-bearing debt(%)[-1.0][1.1][-0.2][-0.2][-0.9](millions of yen)

94,970103,620

104,750

111,730

116,030

Interest-bearing debt ratio (LTV) (Note 4)

(%)

51.6

50.5

50.8

51.0

51.8

Payout ratio

(%)

100.0

101.1

100.9

91.6

95.8

Number of properties(properties)

101

110

111

117

117

Total leasable area

(m2)

278,745.27

303,025.09

304,126.02

318,999.87

336,786.72(Note 5)

Occupancy rate at end of period
Depreciation
Capital expenditure
NOI(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)18

[2.2]
85,171

(%)

96.5

96.1

96.7

96.6

96.4

(millions of yen)

1,049

1,137

1,152

1,200

1,223

(millions of yen)

112

386

274

281

279

(millions of yen)

4,474
4,896
5,013
5,227
5,405
Ordinary profit ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100
Profit ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100
Net assets at end of period ÷ Total assets at end of period × 100
Interest-bearing debt at end of period ÷ Total assets at end of period × 100
Total distributions ÷ Profit × 100
Payout ratio is rounded down to the first decimal place.
Income from real estate rental business+ Depreciation
The Investment Corporation applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (The Accounting Standards Board ofJapan Statement No. 28 issued on February 16, 2018) from the beginning of the 17th Fiscal Period, and the reclassified amount due to the change wasreflected to the total assets for the 16th Fiscal Period. Furthermore, the application poses no impact on the financial indicators.
(Note 6)

- 1 -

19

3. Capital Increases

2. Asset Management Status for the 17th Fiscal Period(1) History of the Investment Corporation
Comforia Residential REIT, Inc (the “Investment Corporation”) was established on June 8, 2010 as an investment corporationthat invests mainly in residential properties in accordance with the “Act on Investment Trusts and Investment Corporations”
of Japan (Act No. 198 of 1951, as revised; hereinafter referred to as the “Investment Trusts Act”), with registration by the prime
minister completed as of June 30, 2010 under Article 187 of the Investment Trusts Act (registration number: Director of Kanto
Finance Bureau No. 71). Investments by the Investment Corporation commenced in August 2010. The Investment Corporation
issued new investment units through a public offering on February 6, 2013 and was listed on the real estate investment trust
market of the Tokyo Stock Exchange, Inc. (securities code: 3282).
Managed assets of the Investment Corporation at the commencement of operations totaled 11 properties, acquired for a
total of ¥15,508 million. As a result of additional acquisition and sale of properties under the basic policy of asset management(to manage assets with the aim of achieving stable earnings and ensuring the steady growth of our managed assets based on
medium- to long-term perspectives to maximize our unitholders’ value) stipulated in the regulations of the Investment
Corporation, the portfolio (the “Acquired Assets”) owned as of the end of the 17th Fiscal Period includes 117 properties,
acquired for a total of ¥206,084 million.
(2) Investment performance(i) Investment environment
During the 17th Fiscal Period, the Japanese economy remained on a modest recovery trend amid improvements in theemployment and income environment. Under these circumstances, in the residential rental market, unit rent has shown an
upward trend centering on central Tokyo while occupancy rate remained high. In the real estate investment market, thelevel of transaction prices remains stable at a high price range amid an ongoing low interest rate environment resulting
from the fiscal policies of the government and monetary policies of the Bank of Japan (BOJ).
(ii) Acquisition and sale of assets
During the 17th Fiscal Period, the Investment Corporation acquired GRANCREER CENTER-MINAMI in September
2018, and subsequently sold COMFORIA MINAMIAOYAMA DEUX in November 2018. As a result, assets owned by
the Investment Corporation as of the end of the 17th Fiscal Period totaled 117 properties with a total acquisition price of¥206,084 million.
(iii) Operation management of assets owned by the Investment Corporation
The Investment Corporation consigns property management operations mainly to Tokyu Housing Lease Corporation,
which has an extensive track record in managing the Comforia series of properties. Under the Comforia series, theInvestment Corporation promotes unified management and strives to improve operational efficiency and shorten periodsof vacancy.
(3) Overview of funding
During the 17th Fiscal Period, the Investment Corporation undertook borrowing of funds (¥2,000 million) in August 2018 forthe repayment of existing borrowings (¥2,000 million) that matured in the fiscal period. It also borrowed funds (¥4,300 million)
in September 2018 for the acquisition of GRANCREER CENTER-MINAMI. Subsequently, the Investment Corporation
borrowed funds (¥5,500 million) in January 2019 to be appropriated for the repayment funds (¥5,500 million) for borrowings
made in February 2014. Consequently, as of the end of the 17th Fiscal Period (January 31, 2019), unitholders’ capital was¥99,814 million, interest-bearing debt was ¥116,030 million, the ratio of interest-bearing debt to total assets (LTV) was 51.8%,
the average maturity of interest-bearing debt was 4.3 years, the ratio of long-term debt was 86.2%, and the fixed rate ratio was
87.3%. Moreover, the Investment Corporation established a commitment line with a credit limit of ¥10.5 billion with Mizuho
Bank, Ltd., Sumitomo Mitsui Trust Bank, Ltd. and MUFG Bank, Ltd. in order to secure flexible and stable funding methods.
The Investment Corporation obtained the following rating as of the end of the 17th Fiscal Period.
Name of credit rating agency

RatingOutlookJapan Credit Rating Agency, Ltd. (JCR)

AA–

Stable(4) Overview of performance and distributions
As a result of investment during the 17th Fiscal Period, the Investment Corporation posted operating revenue of ¥8,128 million,
operating profit of ¥3,702 million, ordinary profit of ¥3,178 million, and profit of ¥3,172 million.
The Investment Corporation carries out distributions so that the Special Provisions for Taxation on Investment Corporations(Article 67-15 of the Act on Special Measures Concerning Taxation [Act No. 26 of 1957, as revised; hereinafter referred to as
the “Act on Special Measures Concerning Taxation”]) would be applied. For the 17th Fiscal Period, the Investment Corporation
retained part (¥149 million) of gain on sales by applying the Special Provisions on Taxation in the case of advance acquisitionof land and such in 2009 and 2010 (Article 66-2 of the Act on Special Measures Concerning Taxation), after adding the reversalof reserve for reduction entry (¥17 million) to unappropriated retained earnings. As a result, the distribution per unit (DPU)was ¥5,180 for the period.

20

- 2 -

Date

Number of investment units
issued (units)

Type

ChangeBalanceUnitholders’ capital(millions of yen)
ChangeRemarks

Balance

June 8, 2010

Establishment throughprivate placement

200

200

100

100

(Note 1)

August 30, 2010

Capital increase throughprivate placement

7,800

8,000

3,900

4,000

(Note 2)

March 18, 2011

Capital increase throughprivate placement

24,27032,27011,84015,840(Note 3)February 2, 2012

Capital increase throughprivate placement

16,40048,6708,200

24,040(Note 4)

February 5, 2013

Capital increase throughpublic offering

18,691

67,361

9,935

33,975(Note 5)February 3, 2014

Capital increase throughpublic offering

31,90099,261

21,96055,936(Note 6)

February 26, 2014

Capital increase throughthird-party allotment

1,401

100,662964

56,900(Note 7)

August 1, 2014

Investment unit split

301,986

402,648–

56,900(Note 8)February 2, 2015

Capital increase throughpublic offering

70,000472,648

18,02574,926(Note 9)February 27, 2015

Capital increase throughthird-party allotment

1,156

473,804297

February 1, 2016

Capital increase throughpublic offering

37,800511,604

7,159

February 26, 2016

Capital increase throughthird-party allotment

1,900

513,504359

82,743 (Note 12)

February 1, 2017

Capital increase throughpublic offering

47,800561,304

11,251

93,995 (Note 13)

February 22, 2017

Capital increase throughthird-party allotment

2,390

563,694562

94,557 (Note 14)

February 1, 2018

Capital increase throughpublic offering

22,190585,884

5,006

99,563 (Note 15)

February 15, 2018

Capital increase throughthird-party allotment

1,110

586,994250

99,814 (Note 16)75,224 (Note 10)
82,383(Note 11)

(Note 1)
(Note 2)
(Note 3)

Established at an issue price of ¥500,000 per investment unit.
Issued privately placed investment units at an issue price of ¥500,000 per investment unit to fund the acquisition of new properties.
Issued privately placed investment units at an issue price of ¥500,000 (subscription price of ¥487,852) per investment unit to fund the acquisition of
new properties and repay loans.
(Note 4) Issued privately placed investment units at an issue price of ¥500,000 per investment unit to fund the acquisition of new properties and repay loans.
(Note 5) Issued investment units at an issue price of ¥550,000 (subscription price of ¥531,575) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 6) Issued investment units at an issue price of ¥712,530 (subscription price of ¥688,413) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 7) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥688,413 per investment unit.
(Note 8) Carried out a four-for-one-split of investment units effective as of August 1, 2014, with July 31, 2014 as the record date.
(Note 9) Issued investment units at an issue price of ¥266,253 (subscription price of ¥257,514) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 10) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥257,514 per investment unit.
(Note 11) Issued investment units at an issue price of ¥195,828 (subscription price of ¥189,400) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 12) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥189,400 per investment unit.
(Note 13) Issued investment units at an issue price of ¥243,252 (subscription price of ¥235,393) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 14) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥235,393 per investment unit.
(Note 15) Issued investment units at an issue price of ¥233,132 (subscription price of ¥225,600) per investment unit to fund the acquisition of new properties
and to repay loans.
(Note 16) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥225,600 per investment unit.

[Fluctuation in market price of the investment securities]
The highest and lowest prices (closing price) in the real estate investment trust market of the Tokyo Stock Exchange, Inc., where theInvestment Corporation is listed, by fiscal period are as follows.
Fiscal period

13th Fiscal Period

14th Fiscal Period

15th Fiscal Period

16th Fiscal Period

17th Fiscal Period

Closing month/year

Jan. 2017

Jul. 2017

Jan. 2018

Jul. 2018

Jan. 2019

Highest¥262,500¥261,600¥250,500¥267,300¥298,000

Lowest¥231,600¥219,400¥228,100¥228,000¥258,000

- 3 -

21

4. Performance of Distributions
The Investment Corporation pays out distributions per unit (DPUs) with the intent of including the maximum amount of earnings
distributions in deductible expenses by applying special measures concerning taxation (Article 67-15 of the Act on Special Measures
Concerning Taxation). For the 17th Fiscal Period, the Investment Corporation retained part of gain on sales by applying the Special
Provisions on Taxation in the case of advance acquisition of land and such in 2009 and 2010 (Article 66-2 of the Act on Special
Measures Concerning Taxation), after adding the reversal of reserve for reduction entry (¥17 million) to unappropriated retained
earnings. Based on this policy, the Investment Corporation has decided to distribute the entire amount of unappropriated retained
earnings after deducting ¥149 million, which is within the scope where the provisions of Article 67-15 of the Act on Special
Measures Concerning Taxation are applied, as well as within the limit of reserve for reduction entry stipulated in Article 66-2 of the
Act on Special Measures Concerning Taxation, as provision of reserve for reduction entry. As a result, the DPU for the 17th Fiscal
Period was ¥5,180.
Fiscal period

13th Fiscal Period

14th Fiscal Period

15th Fiscal Period

16th Fiscal Period

17th Fiscal PeriodBusiness period

From Aug. 1, 2016
to Jan. 31, 2017

From Feb. 1, 2017
to Jul. 31, 2017

From Aug. 1, 2017
to Jan. 31, 2018

From Feb. 1, 2018
to Jul. 31, 2018

From Aug. 1, 2018
to Jan. 31, 2019

Unappropriated retained earnings¥2,674,584 thousand ¥3,191,695 thousand ¥3,172,709 thousand¥2,336,057 thousand¥2,608,344 thousand

Retained earnings¥127 thousand¥17 thousand

Total distributions¥2,335,929 thousand¥2,638,651 thousand[¥4,549][¥4,681]¥2,335,929 thousand¥2,638,651 thousand[¥4,549][¥4,681][¥4,788][¥4,985][¥5,180]¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Return on unitholders’ capitalper unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on
unitholders’ capital, the total
distribution payments from theallowance for temporary
difference adjustment¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Of the return on unitholders’capital per unit, the distribution
payment from the allowance fortemporary difference adjustment
per unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on
unitholders’ capital, the total
distribution payments frominvestments and other decreased
distribution under tax laws¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Of the total return on
unitholders’ capital per unit, thedistribution payments frominvestments and other decreased
distribution under tax laws]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

[Distribution per unit (DPU)]
Of which, total earnings
distributions[Earnings distribution per unit]
Of which, total return on
unitholders’ capital¥186 thousand¥285,330 thousand¥149,557 thousand¥2,698,966 thousand ¥2,926,165 thousand ¥3,040,628 thousand[¥4,788][¥4,985][¥5,180]¥2,698,966 thousand ¥2,926,165 thousand ¥3,040,628 thousand(Note) Figures above are rounded down to the nearest unit.

(2) Internal growth strategy
With the aim of maximizing portfolio value and cash flows from individual properties from a medium- to long-term perspective
and to make the most of the experience and comprehensive strength of the Tokyu Fudosan Holdings Group in property
management, we will consign property management operations mainly to Tokyu Fudosan Holdings Group companies, whichhave extensive experience in the management of J-REITs and the Comforia series. In addition, we will strive for efficientmanagement by examining the adequacy of building management specifications and costs.
Furthermore, we will actively utilize the expertise of Tokyu Fudosan Holdings Group in asset and fund management toachieve higher-quality overall management of the Investment Corporation.
In the 18th Fiscal Period and onwards, we will continue to aim to maintain and improve occupancy rates by closely
monitoring the property management situation, as we did in the 17th Fiscal Period.
(3) Financial strategy
In consideration of addressing future interest rate risk and refinance risk, we will carry out funding activities by paying attention
to financial soundness and earnings stability. With regard to debt, we will efficiently combine short-term funding that focuseson agility with long-term stable funding. Furthermore, we will consider the issuance of new investment units in accordancewith financing needs for property acquisition and the financial situation of the Investment Corporation, while paying attention
to the market development and distribution level, with the upper limit of the ratio of interest-bearing debt to total assets (LTV)
at around 60%.

6. Significant Subsequent Events
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meetings held on January 7, 2019 and January 16, 2019 concerning
the issuance of new investment units as described below. Based on the resolution, payments completed on February 1, 2019 forthe new investment units issued through public offering and on February 20, 2019 for the new investment units offered by way ofthird-party allotment, respectively. As a result, unitholders’ capital increased to ¥114,045,421,172, with the number of investment
units issued and outstanding at 640,834 units.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of investment units issued:
51,270 units
Issue price:¥273,146 per unit
Total issue amount:¥14,004,195,420
Paid-in amount (issue value):¥264,321 per unit
Total paid-in amount (issue value):¥13,551,737,670
Payment date:February 1, 2019
Issuance of New Investment Units Offered by Way of Third-Party Allotment
Number of investment units offered:
2,570 units
Paid-in amount (issue value):¥264,321 per unit
Total paid-in amount (issue value):¥679,304,970
Payment date:February 20, 2019
Allottee:Mizuho Securities Co., Ltd.
(Reference Information)
A. Property Acquisition
The Investment Corporation acquired the following property:
Property name

5. Future Investment Policy and Issues to Address

22Founded on our basic policies of investment management, the Investment Corporation acquired a property and sold a property
during the 17th Fiscal Period, and has carried out investment and management based on the concept and expertise incorporated into
the urban rental residence Comforia series, which Tokyu Land Corporation (hereinafter referred to as “Tokyu Land”) has been
producing. Going forward, we aim to achieve medium- to long-term growth by continuing to carry out investment and management
based on our basic policies.

COMFORIA KINSHICHO
DEUX(1) External growth strategy
The Investment Corporation aims to acquire higher quality assets and expand the asset size, fully utilizing the support of the
Tokyu Fudosan Holdings Group, primarily the sponsor support of Tokyu Land, and original information from TLC REITManagement Inc., its asset management company (hereinafter referred to as the “Asset Management Company”).
Specifically, we will acquire properties developed by our sponsor, Tokyu Land, using the sponsor support agreement theAsset Management Company entered into with Tokyu Land, and continually and steadily acquire quality residential properties
that are under stable operation. In addition, we intend to utilize real estate brokerage capabilities through the vast information
network of Tokyu Fudosan Holdings Group companies, who are not our sponsors, to acquire quality residential properties,
achieve stable operation and enhance profitability. Based on this perspective, the Asset Management Company has enteredinto a support agreement with each of the seven support companies of the Tokyu Fudosan Holdings Group companies (Tokyu
Livable, Inc., Tokyu Community Corp., Tokyu Housing Lease Corporation, National Students Information Center Co., Ltd.,
Tokyu E-Life Design Inc., Ewel Inc. and Tokyu SportsOasis, Inc.,) for managed assets of the Investment Corporation.

COMFORIA SHIBUYA WEST

- 4 -COMFORIA KAMEIDO
SOUTH

Type of specified
asset

Location

Acquisition price(thousands of yen)
(Note)

Property in trust

Koto-ku, Tokyo

2,213,000

Apartment building February 1, 2019

Property in trust

Koto-ku, Tokyo

2,050,000

Apartment building February 1, 2019

Property in trust

Meguro-ku, Tokyo

5,397,000

Apartment building February 1, 2019

Total

Main usage

Acquisition date

9,660,000(Note) The acquisition price does not include miscellaneous expenses required for the acquisition of each property, fixed
property tax, city planning tax, consumption tax and local consumption tax.

- 5 -

23

Overview of the Investment Corporation
Overview of the Investment Corporation
1. Unitholders’ Capital

The Investment Corporation plans to acquire the following properties:

Plannedacquisition price(thousands of yen)
(Note 1)Main usage

Planned acquisition
dateType of specified
asset

Location

Property in trust

Chuo-ku, Tokyo

1,194,000

Apartment building

March 20, 2019

Property in trust

Taito-ku, Tokyo

1,254,000

Apartment building

COMFORIAOMORIKASHIMA

Property in trust

Shinagawa-ku,
Tokyo

864,000

COMFORIA OMORIMACHI

Property in trust

Ota-ku, Tokyo

COMFORIA KAMIIKEDAI

Property in trust

COMFORIA TAMA-PLAZA(Note 2)

Property in trust

Property name
COMFORIAHIGASHINIHONBASHICOMFORIAASAKUSAKOMAGATACAMPUS VILLAGESHIINAMACHI

Property in trust

Sumitomo Mitsui Banking
Corporation

As ofJul. 31, 2017

As ofJan. 31, 2018

As ofJul. 31, 2018

As ofJan. 31, 2019

8,000,000

8,000,000

March 20, 2019

Total number of investment
units issued(units)513,504

563,694563,694586,994586,994

Apartment building

March 20, 2019

Unitholders’ capital(millions of yen)

82,743

94,557

94,557

99,814

99,814

Number of unitholders(people)

6,834

7,897

7,269

6,847

5,845

1,096,000

Apartment building

March 20, 2019

Ota-ku, Tokyo

1,842,000

Apartment building

March 20, 2019

Yokohama-shi,
Kanagawa

2,220,000

Apartment building

March 20, 2019

Toshima-ku, Tokyo

2,740,000

Repayment
date

Repayment
methodDormitory building

April 5, 2019

Use of funds

CollateralLess than one
year from thedrawdown dateLump-sum
repayment

acquisitions, repayment ofexisting borrowings,
redemption of investment
corporation bonds andpayment of related
expenses

2. Matters concerning Investment Units
Major unitholders as of January 31, 2019 are as follows.
Number of investment units
owned (units)Name158,731

27.04

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

83,356

14.20

Tokyu Land Corporation

51,664

8.80

Trust & Custody Services Bank, Ltd.
(securities trust investment account)

18,568

3.16

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

16,9062.88

Mitsubishi UFJ Trust and Banking Corporation(Standing proxy: The Master Trust Bank of Japan, Ltd.)

10,982

1.87

Trust & Custody Services Bank, Ltd.
(taxable trust money account)

10,315

1.75

The State Street Bank West Client—Treaty 505234(Standing proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)

8,789

1.49

Rakuten General Insurance Co., Ltd.

8,600

1.46

The Gunma Bank, Ltd.

7,880

1.34

375,79164.01(Note)

Unsecured
Unguaranteed

Ratio to the total number ofinvestment units issued (%) (Note)

Japan Trustee Services Bank, Ltd. (trust account)

Total

To fund new property

Mizuho Bank, Ltd.

9,000

As of
Jan. 31, 2017

8,000,000

2019, as described below, in case it needs to raise funds to purchase assets for future investments and other purposes.

MUFG Bank, Ltd.

17th Fiscal
Period8,000,000

B. Line of Credit Loan (Uncommitted Basis)
The Investment Corporation executed a Line of Credit Loan Master Agreement (on an uncommitted basis) as of February 7,

Sumitomo Mitsui Trust Bank
Limited16th Fiscal
Period8,000,000(Note 1) The planned acquisition price does not include miscellaneous expenses required for the acquisition of each property,
fixed property tax, city planning tax, consumption tax and local consumption tax.
(Note 2) Although the current property name is “RICHE TAMA-PLAZA”, the Investment Corporation plans to change thename to “COMFORIA TAMA-PLAZA” in about a month after acquiring it.

limit(millions of yen)

15th Fiscal
Period(units)

11,210,000

Amount of credit

14th Fiscal
PeriodTotal number of authorized
investment units

Total

Counter parties

13th Fiscal
PeriodThe ratio of investment units owned to the total number of investment units issued is rounded down to the second decimal place.

3. Matters concerning Directors, etc.
(1) Name of directors, etc.
The names of directors, etc. during the 17th Fiscal Period are as follows.
Position

Name of director,
etc.

Main concurrent posts

Total amount of remuneration
paid during the period(thousands of yen)

Executive
Director(Note 1)

Takehiro Izawa

Executive Director, Chief Division Officer ofComforia Management Division, TLC REITManagement Inc.

–

Supervisory
Director(Note 1)

Yoshihiro
KataokaHead of Kataoka & Kobayashi
Outside Audit & Supervisory Board Member,
The Higo Bank, Ltd.

1,800

Supervisory
Director(Note 1)

Koji Yamamoto

Partner, WAKABA PARTNERS Law andAccounting Office
Supervisory Officer, Toshi Saisei Fund Investment
Corporation

1,800

Independent
AuditorErnst & Young
ShinNihon LLC(Note 2)–

16,542(Note 1) None of the Executive Director or Supervisory Directors own investment units in the Investment Corporation, either in their own name or insomeone else’s name. Furthermore, although Supervisory Directors may be officers of a corporation other than those mentioned above,neither one has an interest in the Investment Corporation.
(Note 2) The amount includes the fees pertaining to the production of an “Auditor’s Comfort Letter to Lead Underwriting Firm” related to the issuanceof investment corporation bonds conducted in February 2019.

- 7 -

24

- 6 -

25

Status of Managed Assets of Investment Corporation
Status of Managed Assets of the Investment Corporation(2) Policy for decisions on dismissal or non-reappointment of Independent Auditor
The Board of Directors shall, with the consent of all its members, dismiss the Independent Auditor if it is deemed that it falls
under any of the grounds set forth in each item of Paragraph 1 of Article 105 of the Investment Trusts Act, and when it isdetermined that there is no hope for improvement.
In addition, when it is determined that an Independent Auditor is not fit for his or her role, upon comprehensive
examination of their execution of duties as the Independent Auditor and other various circumstances, the Board of Directors
shall dismiss or not reappoint said Independent Auditor with the consent of all of its members, and forward a proposal for theappointment of a new Independent Auditor to the unitholders’ meeting.

4. Asset Management Company, Asset Custodian and General Administration
The asset management company, asset custodian and general administration as of January 31, 2019 are as follows.
Consignment segment

Name

Asset management company

TLC REIT Management Inc.

Asset custodian

Mitsubishi UFJ Trust and Banking Corporation

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

General administration (accounting service)

Heiseikaikeisha Tax Corporation

General administration (administrative service)

Mitsubishi UFJ Trust and Banking Corporation

General administration (corporation bond service)

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

1. Composition of Assets of the Investment Corporation
Type ofasset

16th Fiscal Period(as of July 31, 2018)

Area

Total amount owned(millions of yen) (Note 1)

17th Fiscal Period(as of January 31, 2019)

Percentage of total
assets (%) (Note 2)

Total amount owned(millions of yen) (Note 1)

Percentage of total
assets (%) (Note 2)

Central Tokyo

1,136

0.5

1,134

0.5

Sub-central Tokyo

4,953

2.3

4,934

2.2

Other major cities

1,034

0.5

1,026

0.5

Central Tokyo

85,86339.2

85,21038.1

Properties Sub-central Tokyo
in trust Tokyo metropolitan area

92,24842.1

91,879

41.0

3,319

1.5

7,593

3.4

14,286

6.5

14,1936.3

202,84292.5

205,972

92.0

Real
estateOther major cities
Subtotal
Deposits and other assets

16,368

7.5

17,857

8.0

Total assets

219,211100.0

223,829100.0(Note 1)
(Note 2)

“Total amount owned” indicates the amount posted on the balance sheets as of the closing of accounts (the book value after depreciation for real estateand properties in trust).
The sum may not total 100.0% since figures are rounded to the first decimal place.

2. Major Assets Owned
The overview of major assets owned by the Investment Corporation (top 10 properties in terms of period-end book value) is asfollows.
Ratio to total
Occupancy rate
rental revenues Main usage(%)(%)

Book value(millions of yen)

Rentable area(m2)

Rented area
(m2)

COMFORIA SHINJUKUEASTSIDE TOWER

13,38348,267.60

46,061.83

95.4

19.2

Apartment
building

COMFORIA KAMATA

5,830

6,027.98

5,973.37

99.1

2.0

Apartment
building

COMFORIA KOMABA

5,172

5,342.38

5,265.73

98.6

1.7

Apartment
building

COMFORIA
MINAMISUNAMACHI

4,732

6,141.98

5,885.84

95.8

1.7

Apartment
building

COMFORIA AKIHABARA
EAST

4,499

4,582.07

4,496.19

98.1

1.5

Apartment
building

GRANCREER CENTERMINAMI

4,296

18,235.67

18,235.67

100.0

1.1

Homes forthe elderly

COMFORIA KITASANDO

4,218

4,966.87

4,657.36

93.8

1.7 Residence

COMFORIA
ITABASHINAKAJUKU

3,950

6,966.04

6,619.37

95.0

1.5

Apartment
building

COMFORIAHIGASHIIKEBUKURO WEST

3,731

6,436.14

6,128.82

95.2

2.1

Apartment
building

COMFORIA HARAJYUKU

3,567

4,528.51

4,286.42

94.7

1.6

Apartment
building

53,382

111,495.24

107,610.60

96.5

34.1

Property name

Total

- 9 -

26

- 8 -

27

3. Statement of Properties Incorporated in the Portfolio
The overview of assets under management of the Investment Corporation as of January 31, 2019 is as follows.
Area

Property name

Address

Ownership form

Area

COMFORIA WASEDA

147 Bentencho, Shinjuku-ku, Tokyo

COMFORIA SHIMOOCHIAI

2-7-10 Nakaochiai, Shinjuku-ku, Tokyo

COMFORIA HIGASHINAKANO

4-34-2 Kita-Shinjuku, Shinjuku-ku, Tokyo

COMFORIA GINZA EAST

1-3-1 Irifune, Chuo-ku, Tokyo

COMFORIA AZABUDAI

3-4-4 Azabudai, Minato-ku, Tokyo

COMFORIA SHIBAKOEN

2-2-15 Shibakoen, Minato-ku, Tokyo

COMFORIA NISHIAZABU

4-1-10 Nishiazabu, Minato-ku, Tokyo

COMFORIA MINAMIAOYAMA

4-1-12 Minami-Aoyama, Minato-ku, Tokyo

COMFORIA NISHIWASEDA

1-5-19 Takadanobaba, Shinjuku-ku, Tokyo

COMFORIA HARAJYUKU

3-61-3 Sendagaya, Shibuya-ku, Tokyo

COMFORIA MITA NORTH

2-7-16 Mita, Minato-ku, Tokyo

COMFORIA SHIBAURABOWHOUSE

3-13-12 Kaigan, Minato-ku, Tokyo

COMFORIASHIROKANETAKANAWA

5-1-21 Mita, Minato-ku, Tokyo

COMFORIA NIHONBASHININGYOCHO EAST

3-6-3 Nihonbashi Ningyocho, Chuo-ku, Tokyo

COMFORIA ATAGO

3-23-7 Toranomon, Minato-ku, Tokyo

COMFORIA KUDAN

2-6-12 Kudan Minami, Chiyoda-ku, Tokyo

COMFORIA NIHONBASHININGYOCHO NORTH

1-1-6 Nihonbashi Horidomecho, Chuo-ku, Tokyo

COMFORIA SHINKAWA

2-15-5 Shinkawa, Chuo-ku, Tokyo

COMFORIA AKASAKA

2-17-63 Akasaka, Minato-ku, Tokyo

COMFORIA MITA EAST

4-18-1 Shiba, Minato-ku, Tokyo

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

COMFORIA SHIBAURA CANAL

3-1-9 Kaigan, Minato-ku, Tokyo

2,210

1,526

COMFORIA KITASANDO

4-5-10 Sendagaya, Shibuya-ku, Tokyo

2,520

1,869

COMFORIA YOYOGIUEHARA

2-31-5 Uehara, Shibuya-ku, Tokyo

1,610

1,100

COMFORIA SASAZUKA

1-59-10 Sasazuka, Shibuya-ku, Tokyo

697

547

4,120

2,976

788

554

1,820

1,323

968

COMFORIA SHINJUKUGYOEN II 1-13-3 Shinjuku, Shinjuku-ku, Tokyo
COMFORIA
ICHIGAYAYANAGICHO

18-2 Ichigaya Yanagicho, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA

26-1 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA NIBANCHO

4-8 Nibancho, Chiyoda-ku, Tokyo

727

COMFORIA NISHISHINJUKU

1-20-12 Kita-Shinjuku, Shinjuku-ku, Tokyo

1,570

1,064

COMFORIA KANDAJINBOCHO

1-42-2 Kanda Jinbocho, Chiyoda-ku, Tokyo

2,180

1,599

COMFORIA NIHONBASHI

1-2-2 Nihonbashi Bakurocho, Chuo-ku, Tokyo

4,840

3,567

COMFORIA TAMACHI

4-5-13 Shibaura, Minato-ku, Tokyo

1,070

859

COMFORIA AZABUJUBAN

1-2-15 Mita, Minato-ku, Tokyo

3,420

2,553

COMFORIA SHINJUKUGYOEN I 1-10-4 Shinjuku, Shinjuku-ku, Tokyo

1,670

1,310

COMFORIA KAGURAZAKA
DEUX

7-3 Iwatocho, Shinjuku-ku, Tokyo

2,600

2,071

COMFORIA AZABU EAST

2-29-1 Higashi-Azabu, Minato-ku, Tokyo

984

843

1,560

1,264

COMFORIA SHINJUKUEASTSIDE TOWER(Tower Building)
6-27-29 Shinjuku, Shinjuku-ku, Tokyo(Annex Building)
6-27-28 Shinjuku, Shinjuku-ku, Tokyo(Gate Building)
6-27-14 Shinjuku, Shinjuku-ku, Tokyo

1,340

1,079

COMFORIA ICHIGAYAYAKUOJI

74-23 Ichigayayakuojimachi, Shinjuku-ku, Tokyo

2,170

1,798

COMFORIA AKIHABARA EAST

2-9-19 Higashikanda, Chiyoda-ku, Tokyo

2,650

1,920

COMFORIA MITA TROIS

3-43-6 Shiba, Minato-ku, Tokyo

3,820

3,100

COMFORIA SHIBAURA

2-3-33 Shibaura, Minato-ku, Tokyo

COMFORIA SHINJUKU

5-8-20 Shinjuku, Shinjuku-ku, Tokyo

Central Tokyo

Central Tokyo

3-5-10 Nihonbashi Ningyocho, Chuo-ku, Tokyo

Address

Subtotal28- 10 -

Ownership form

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)
(Note 1)

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)
(Note 1)COMFORIA NIHONBASHININGYOCHO

Property name- 11 -

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Beneficial
interest in realestate trust

1,870

1,568

4,890

4,218

1,850

1,594

2,250

1,762

2,140

1,769

1,950

1,593

876

721

1,960

1,640

1,800

1,702

1,680

1,486

2,240

1,960

3,760

3,382

1,630

1,473

1,530

1,412

1,440

1,251

2,960

1,920

15,90013,383

976

988

4,850

4,499

923

936

1,150

1,134

2,310

2,284

105,542

86,34429

Area

Property name

Address

Ownership form

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)Area

Property name

Address

Ownership form

(Note 1)COMFORIA BUNKYOKASUGA

1-15-12 Nishikata, Bunkyo-ku, Tokyo

COMFORIAASAKUSAMATSUGAYA

1-11-5 Matsugaya, Taito-ku, Tokyo

COMFORIA NISHIOI

6-6-1 Nishi-Oi, Shinagawa-ku, Tokyo

COMFORIA NAKANO

2-40-12 Kamitakada, Nakano-ku, Tokyo

COMFORIA SHIMOKITAZAWA

1-9-14 Hanegi, Setagaya-ku, Tokyo

COMFORIA NISHIKAMATA

6-37-3 Nishi-Kamata, Ota-ku, Tokyo

COMFORIA OYAMA

4-4 Oyamacho, Itabashi-ku, Tokyo

COMFORIA
KIYOSUMISHIRAKAWA SOUTH

3-2-13 Miyoshi, Koto-ku, Tokyo

COMFORIA KOMAZAWA

2-1-5 Komazawa, Setagaya-ku, Tokyo

COMFORIA KOISHIKAWA

2-17-27 Koishikawa, Bunkyo-ku, Tokyo

COMFORIA SENGOKU

4-3-20 Sengoku, Bunkyo-ku, Tokyo

COMFORIA
DAIKANYAMAAOBADAI

2-1-7 Aobadai, Meguro-ku, Tokyo

COMFORIA IKEBUKURO

2-57-1 Ikebukuro, Toshima-ku, Tokyo

COMFORIA
RYOGOKUISHIWARA

1-36-1 Ishiwara, Sumida-ku, Tokyo

COMFORIA ASAKUSABASHI
DEUX

5-24-10 Asakusabashi, Taito-ku, Tokyo

COMFORIA OSHIAGE

4-7-2 Narihira, Sumida-ku, Tokyo

COMFORIA
HONJOAZUMABASHI

2-11-12 Honjo, Sumida-ku, Tokyo

COMFORIA
KIYOSUMISHIRAKAWA TROIS

3-5-14 Shirakawa, Koto-ku, Tokyo

COMFORIA MONZENNAKACHO 16-8 Fuyuki, Koto-ku, Tokyo
COMFORIA HIMONYA

2-3-3 Himonya, Meguro-ku, Tokyo

COMFORIA MISYUKU

3-23-2 Ikejiri, Setagaya-ku, Tokyo

COMFORIA GAKUGEIDAIGAKU 6-46-6 Shimouma, Setagaya-ku, Tokyo
COMFORIA HIGASHINAKANO
DEUX

30

4-2-19 Higashi-Nakano, Nakano-ku, Tokyo- 12 -

2,000

1,378

COMFORIAHIGASHIIKEBUKURO WEST

1,230

833

COMFORIA RYOGOKU DEUX

1-2-10 Chitose, Sumida-ku, Tokyo

1,070

872

COMFORIA OMORI DEUX

3-4-2 Omorikita, Ota-ku, Tokyo

1,040

863

COMFORIA MACHIYA

5-51-7 Arakawa, Arakawa-ku, Tokyo

3,430

2,401

COMFORIA ASAKUSABASHI

2-20-10 Yanagibashi, Taito-ku, Tokyo

2,140

1,447

COMFORIA RYOGOKU SOUTH

2-14-8 Chitose, Sumida-ku, Tokyo

2,400

1,933

COMFORIA TOYOSU

1-4-12 Edagawa, Koto-ku, Tokyo

941

689

COMFORIA SUMIDATACHIBANA

5-18-5 Tachibana, Sumida-ku, Tokyo

1,700

1,224

COMFORIA UENOHIROKOJI

3-17-4 Ueno, Taito-ku, Tokyo

675

523

1,730

1,251

1,390

917

690

568

829

614

1,040

3-22-21 Higashi-Ikebukuro, Toshima-ku, Tokyo

COMFORIA KASUGATOMISAKA 1-11-18 Kasuga, Bunkyo-ku, Tokyo
COMFORIA HONKOMAGOME

2-29-24 Honkomagome, Bunkyo-ku, Tokyo

COMFORIA MORISHITA

3-6-8 Shin-Ohashi, Koto-ku, Tokyo

COMFORIA KIBAKOEN

2-17-7 Kiba, Koto-ku, Tokyo

COMFORIA MEGUROCHOJAMARU

2-6-25 Kami-Osaki, Shinagawa-ku, Tokyo

845

COMFORIA NISHIMAGOME

2-35-8 Nishi-Magome, Ota-ku, Tokyo

862

693

COMFORIAHIGASHIIKEBUKURO EAST

2-8-1 Higashi-Ikebukuro, Toshima-ku, Tokyo

918

740

COMFORIAHIGASHIIKEBUKURO

4-3-5 Higashi-Ikebukuro, Toshima-ku, Tokyo

1,030

834

COMFORIA KOMABA

4-8-25 Ikejiri, Setagaya-ku, Tokyo

3,100

2,528

COMFORIA KINSHICHO

3-8-6 Taihei, Sumida-ku, Tokyo

1,590

1,176

COMFORIA
MINAMISUNAMACHI

4-4-20 Minamisuna, Koto-ku, Tokyo

2,480

1,799

COMFORIAHIGASHISHINAGAWA

3-22-11 Higashi-Shinagawa,Shinagawa-ku, Tokyo

1,550

1,115

COMFORIA MEGUROYAKUMO

1-12-10 Yakumo, Meguro-ku, Tokyo

1,110

802

COMFORIA YOGA

3-24-3 Yoga, Setagaya-ku, Tokyo

COMFORIA
ITABASHINAKAJUKU

62-2 Nakajuku, Itabashi-ku, Tokyo

COMFORIA SHINAGAWA EAST

1-20-8 Kitashinagawa, Shinagawa-ku, Tokyo

COMFORIA OJIMA

4-8-10 Ojima, Koto-ku, Tokyo

Sub-central Tokyo

Sub-central Tokyo(Note 1)

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)

- 13 -

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate

5,330

3,731

1,310

1,009

1,420

1,178

889

591

3,460

2,571

1,620

1,192

3,670

2,971

1,000

939

1,270

1,081

3,590

2,844

1,660

1,306

1,750

1,476

1,120

925

2,430

1,968

1,070

972

2,420

1,665

1,380

1,142

5,510

5,172

1,250

1,048

4,990

4,732

1,720

1,539

903

851

1,120

1,068

4,310

3,950

1,590

1,506

2,250

2,240

31

Area

Property name

Address

Appraisal value
Book value
Ownership form at end of period (millions of yen)(millions of yen)
(Note 2)

(Note 1)

(Note 1)COMFORIA OMORI TROIS

3-36-7 Omorikita, Ota-ku, Tokyo

Sub-central Tokyo

COMFORIA BUNKYO HAKUSAN 1-3-2 Honkomagome, Bunkyo-ku, Tokyo
COMFORIA KAMATA

4-21-2 Kamata, Ota-ku, Tokyo

COLLEGE COURTHACHIMANYAMA

1-15-1 Kamitakaido, Suginami-ku, Tokyo

COMFORIA UENOIRIYA

2-6-8 Ryusen, Taito-ku, Tokyo

COMFORIA IKEJIRI

2-31-18 Ikejiri, Setagaya-ku, Tokyo

COMFORIA
SETAGAYAKAMIUMA

3-6-11 Kamiuma, Setagaya-ku, Tokyo

COMFORIA
AKABANEIWABUCHI

26-11 Iwabuchimachi, Kita-ku, Tokyo

COMFORIA RYOGOKU TROIS

1-5-15 Kamezawa, Sumida-ku, Tokyo

COLLEGE SQUAREHACHIMANYAMA

1-15-2 Kamitakaido, Suginami-ku, Tokyo
Subtotal

Tokyo metropolitan area

COMFORIA ICHIKAWAMYODEN 1-9-10 Shioyaki, Ichikawa-shi, Chiba
COMFORIA YATSUKA

3-38-3 Sezaki, Soka-shi, Saitama

COMFORIA SHINKOYASU

2-216-2 Koyasudori, Kanagawa-ku, Yokohamashi, Kanagawa

COMFORIA GYOTOKU

2-1-13 Gyotokuekimae, Ichikawa-shi, Chiba

GRANCREER CENTER-MINAMI

40-3 Chigasaki Chuo, Tsuzuki-ku, Yokohama-shi,
Kanagawa

COMFORIA SHIN-OSAKA

1-21-24 Higashi-Nakajima, Higashi-Yodogawaku, Osaka-shi, Osaka

COMFORIA SHINSAKAE

2-28-18 Shinsakae, Naka-ku, Nagoya-shi, Aichi

Other major cities

Subtotal

COMFORIA KITAHORIE

3-12-2 Kita-Horie, Nishi-ku, Osaka-shi, Osaka

COMFORIA KITASANJO

2-2-51 Kita-Sanjo Higashi, Chuo-ku, Sapporoshi, Hokkaido

COMFORIA SAPPOROSHOKUBUTSUEN

10-1-6 Kitanijo-Nishi, Chuo-ku, Sapporo-shi,
Hokkaido

COMFORIA OGIMACHI

3-7-15 Tenjinbashi, Kita-ku, Osaka-shi, Osaka

COMFORIA SHINSAIBASHI
EAST

2-6-8 Bakuromachi, Chuo-ku, Osaka-shi, Osaka

COMFORIA KYOMACHIBORI

1-16-14 Kyomachibori, Nishi-ku, Osaka-shi,
Osaka

COMFORIA AWAZA

1-5-5 Enokojima, Nishi-ku, Osaka-shi, Osaka

COMFORIA KITAHAMA

2-1-14 Imabashi, Chuo-ku, Osaka-shi, Osaka
Subtotal
Total

32- 14 -

Real estate
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

940

920

1,410

1,397

6,250

5,830

1,260

1,274

2,270

2,236

1,400

1,397

2,740

2,687

2,520

2,650

1,680

1,772

890

910

115,337

96,814

742

599

708

610

1,220

1,043

1,020

1,043

4,200

4,296

7,890

7,593

2,830

2,297

1,710

1,659

1,050

1,026

1,000

669

1,310

1,314

1,540

1,513

2,010

2,036

1,630

1,604

1,360

1,326

1,780

1,770

16,220244,989

15,219205,972(Note 2)

“Appraisal value at end of period” indicates the appraisal value by a real estate appraiser (based on real estate appraisal reports or research reports
prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sōgō Appraisal Co., Ltd., JLL Morii Valuation &Advisory K.K. and Japan Valuers Co., Ltd., with the account closing date as the date of value estimate), pursuant to the method of asset appraisal
stipulated in the Articles of Incorporation of the Investment Corporation as well as the “Ordinance on Accountings of Investment Corporations”(Cabinet Office Ordinance No. 47 of 2006).
“Book value” indicates the acquisition price (including miscellaneous expenses related to the acquisition) as of the end of the 17th Fiscal Period(January 31, 2019) minus accumulated depreciation.

- 15 -

33

The overview of the rental business by assets under management of the Investment Corporation is as follows.

Sub-central Tokyo

Central Tokyo

Area

34

Property name

COMFORIA NIHONBASHININGYOCHOCOMFORIA WASEDACOMFORIA SHIMOOCHIAICOMFORIA HIGASHINAKANOCOMFORIA GINZA EASTCOMFORIA AZABUDAICOMFORIA SHIBAKOENCOMFORIA NISHIAZABUCOMFORIA MINAMIAOYAMACOMFORIA MINAMIAOYAMADEUX (Note 3)
COMFORIA NISHIWASEDACOMFORIA HARAJYUKUCOMFORIA MITA NORTHCOMFORIA SHIBAURABOWHOUSECOMFORIASHIROKANETAKANAWACOMFORIA NIHONBASHININGYOCHO EASTCOMFORIA ATAGOCOMFORIA KUDANCOMFORIA NIHONBASHININGYOCHO NORTHCOMFORIA SHINKAWACOMFORIA AKASAKACOMFORIA MITA EASTCOMFORIA SHIBAURA CANALCOMFORIA KITASANDOCOMFORIA YOYOGIUEHARACOMFORIA SASAZUKACOMFORIA SHINJUKUGYOEN II
COMFORIA
ICHIGAYAYANAGICHOCOMFORIA KAGURAZAKACOMFORIA NIBANCHOCOMFORIA NISHISHINJUKUCOMFORIA KANDAJINBOCHOCOMFORIA NIHONBASHICOMFORIA TAMACHICOMFORIA AZABUJUBANCOMFORIA SHINJUKUGYOEN I
COMFORIA KAGURAZAKA DEUXCOMFORIA AZABU EASTCOMFORIA SHINJUKUEASTSIDE TOWER (Note 4)
COMFORIA ICHIGAYAYAKUOJI
COMFORIA AKIHABARA EASTCOMFORIA MITA TROISCOMFORIA SHIBAURACOMFORIA SHINJUKU
Subtotal
COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATA

16th Fiscal Period(from February 1, 2018 to July 31, 2018)

17th Fiscal Period(from August 1, 2018 to January 31, 2019)

Ratio toRatio toOccupancy
Total number
Total number Occupancy rate Rent revenue
total
total
Rental revenue
rate(at end of period)of tenantsof tenants
rental(at end of period) (during period)(during period) rental(%)(at end of period)(at end of period)(thousands of yen) revenues(thousands of yen) revenues(%)(Note 1)
(Note 1)
(Note 2)
(Note 2)
(%)
(%)

1

97.7

59,298

0.8

1

100.0

59,328

97.9
98.3
92.7
97.5
100.0
97.9
95.7
95.2

66,81048,59021,634
113,665
20,21350,67826,69442,856

0.9
0.6
0.3
1.5
0.3
0.7
0.3
0.6

1
1
1
1
1
1
1
1

95.3
100.0
97.6
98.9
94.3
96.7
95.8
100.0

66,18647,12922,084
117,252
21,95950,25927,36842,119

0.8
0.6
0.3
1.5
0.3
0.6
0.3
0.5

1

63.5

9,806

0.1

－

－

5,275

0.1

1
1

100.0
98.1
97.1

60,746
126,60730,125

0.8
1.6
0.4

1
1

100.0
94.7
96.6

62,958
126,733
29,398

0.8
1.6
0.4

96.3

97,586

1.3

91.0

96,136

1.2

1

97.5

45,013

0.6

1

94.7

45,285

0.6

1

98.0

67,962

0.9

1

96.8

68,068

0.9

1
1

97.5
94.3

28,64840,446

0.4
0.5

1
1

95.0
93.9

28,40240,903

0.4
0.5

1

100.0

35,615

0.5

1

97.2

36,669

0.5

1
1
1
1
1
1
1
1

98.3
97.5
97.2
97.9
96.2
100.0
97.4
92.3

59,26863,423
104,553
54,495
135,576
51,207
66,891
55,908

0.8
0.8
1.3
0.7
1.7
0.7
0.9
0.7

1
1
1
1
1
1
1
1

100.0
97.5
95.8
96.8
93.8
93.5
96.0
95.2

60,894
61,824
103,783
53,833
133,476
49,86566,89555,039

0.8
0.8
1.3
0.7
1.7
0.6
0.9
0.7

1

98.6

52,205

0.7

1

96.0

52,411

0.7

1
1

1
1
1
1
1
1
1
1
1
1

97.1
100.0
95.8
95.2
98.6
98.7
98.2
94.8
88.9
98.7

24,54051,82245,91844,183
61,425
100,385
44,88542,191
41,23474,789

0.3
0.7
0.6
0.6
0.8
1.3
0.6
0.5
0.5
1.0

1
1
1
1
1
1
1
1
1
1

1

96.4

1,513,295

19.5

1
1
1
1
1
2

96.0
97.2
100.0
90.8
91.6
96.8

26,451
125,829
24,86924,314
10,863
3,893,537

0.3
1.6
0.3
0.3
0.1
50.1

1

97.0

61,0931

100.0

45,494

1
1
1
1

100.0
95.0
97.1
97.2

32,35032,19994,922
67,524- 16 -

Property name

COMFORIA OYAMACOMFORIA
KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWACOMFORIA KOISHIKAWACOMFORIA SENGOKUCOMFORIA
DAIKANYAMAAOBADAICOMFORIA IKEBUKUROCOMFORIA
RYOGOKUISHIWARA
COMFORIA ASAKUSABASHI
DEUX
COMFORIA OSHIAGE
COMFORIA
HONJOAZUMABASHICOMFORIA
KIYOSUMISHIRAKAWA TROISCOMFORIAMONZENNAKACHOCOMFORIA HIMONYACOMFORIA MISYUKUCOMFORIAGAKUGEIDAIGAKUCOMFORIA HIGASHINAKANODEUXCOMFORIAHIGASHIIKEBUKURO WEST
COMFORIA RYOGOKU DEUXCOMFORIA OMORI DEUXCOMFORIA MACHIYACOMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH
COMFORIA TOYOSUCOMFORIA SUMIDATACHIBANACOMFORIA UENOHIROKOJI
COMFORIA
KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOENCOMFORIA MEGUROCHOJAMARUCOMFORIA NISHIMAGOMECOMFORIAHIGASHIIKEBUKURO EASTCOMFORIAHIGASHIIKEBUKUROCOMFORIA KOMABACOMFORIA KINSHICHOCOMFORIA
MINAMISUNAMACHICOMFORIAHIGASHISHINAGAWACOMFORIA MEGUROYAKUMOCOMFORIA YOGACOMFORIA
ITABASHINAKAJUKUCOMFORIA SHINAGAWA EASTCOMFORIA OJIMACOMFORIA OMORI TROIS

0.8

1
1
1
1
1
1
1
1

1
1

Area

Sub-central Tokyo

16th Fiscal Period(from February 1, 2018 to July 31, 2018)

97.0
90.4
98.5
100.0
94.1
95.9
96.4
98.2
100.0
95.7

23,81049,54047,10344,59764,482
101,900
43,88442,927
41,23074,546

0.3
0.6
0.6
0.6
0.8
1.3
0.6
0.5
0.5
0.9

1

95.4

1,513,540

19.2

1
1
1
1
1
1

100.0
98.1
97.1
97.7
98.6
96.1

25,129118,284
24,49725,81049,692
3,922,519

0.3
1.5
0.3
0.3
0.6
49.8

0.8

1

99.0

60,831

0.8

0.6

1

97.9

45,742

0.6

0.4
0.4
1.2
0.9

1
1
1
1

96.6
95.9
95.5
97.3

31,554
31,822
92,926
66,031

0.4
0.4
1.2
0.8

17th Fiscal Period(from August 1, 2018 to January 31, 2019)

Ratio toRatio toOccupancy
Occupancy
Total number
Total number
total
total
Rental revenue
Rent revenue
rate
rate
of tenantsof tenants
rentalrental(at end of period) (during period)(at end of period) (during period)(at end of period)(at end of period)(thousands of yen) revenues(thousands of yen) revenues(%)(%)(Note 1)
(Note 1)
(Note 2)
(Note 2)
(%)
(%)

1

95.2

78,675

1.0

1

95.8

78,848

1.0

1

95.6

28,794

0.4

1

100.0

27,816

0.4

1
1
1

91.9
95.0
95.1

42,415
21,26855,687

0.5
0.3
0.7

1
1
1

100.0
95.1
94.3

43,09821,85852,011

0.5
0.3
0.7

1

93.4

37,693

0.5

1

95.0

37,113

0.5

1

93.5

22,841

0.3

1

100.0

22,185

0.3

1

100.0

25,599

0.3

1

100.0

25,590

0.3

1

96.3

30,027

0.4

1

95.3

30,399

0.4

1

97.4

25,685

0.3

1

97.4

26,181

0.3

1

100.0

28,698

0.4

1

96.5

28,845

0.4

1

100.0

32,330

0.4

1

90.1

31,491

0.4

1

97.2

92,922

1.2

1

98.6

90,307

1.1

1
1

95.6
98.3

42,82068,226

0.6
0.9

1
1

90.1
96.5

41,693
68,404

0.5
0.9

1

92.4

39,750

0.5

1

97.2

39,834

0.5

1

98.1

30,739

0.4

1

98.1

30,856

0.4

1

96.0

163,345

2.1

1

95.2

162,710

2.1

1
1
1
1
1
1

100.0
94.6
90.9
98.5
97.4
97.1

35,21337,76725,586
103,463
48,640105,919

0.5
0.5
0.3
1.3
0.6
1.4

1
1
1
1
1
1

98.7
90.4
93.9
97.5
100.0
97.5

37,334
39,13826,353
101,431
48,728
101,920

0.5
0.5
0.3
1.3
0.6
1.3

1

93.9

32,109

0.4

1

95.4

32,387

0.4

1

94.7

35,238

0.5

1

91.2

34,752

0.4

1

98.0

90,363

1.2

1

96.6

91,978

1.2

1
1
1

97.3
100.0
95.0

46,44749,40633,998

0.6
0.6
0.4

1
1
1

94.4
97.6
100.0

46,823
49,10032,971

0.6
0.6
0.4

1

95.5

71,311

0.9

1

94.9

72,080

0.9

1

98.1

33,403

0.4

1

93.3

32,665

0.4

1

97.9

70,150

0.9

1

95.4

66,439

0.8

1

100.0

37,030

0.5

1

94.6

36,458

0.5

1
1

96.1
98.2

134,322
34,356

1.7
0.4

1
1

98.6
100.0

134,454
35,254

1.7
0.4

1

95.2

133,750

1.7

1

95.8

133,343

1.7

1

100.0

53,250

0.7

1

100.0

52,914

0.7

1
1

97.6
94.5

26,211
31,763

0.3
0.4

1
1

91.7
100.0

26,49832,849

0.3
0.4

1

98.0

124,618

1.6

1

95.0

121,160

1.5

1
1
1

95.4
99.0
98.0

73,324
61,624
26,159

0.9
0.8
0.3

1
1
1

96.4
94.0
92.6

74,24457,881
25,718

0.9
0.7
0.3

- 17 -

35

16th Fiscal Period(from February 1, 2018 to July 31, 2018)

Other major cities

Tokyo metropolitan area

Sub-central Tokyo

Area(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)36

Property name

Ratio toRatio toOccupancy
Total number
Total number Occupancy rate Rental revenue
total
total
Rental revenue
rate(at end of period)of tenantsoftenants(at end of period) (during period) rental(during period) rental(%)(at end of period)(at end of period)(thousands of yen) revenues(thousands of yen) revenues(%)(Note 1)
(Note 1)
(Note 2)
(Note 2)(%)(%)

COMFORIA BUNKYOHAKUSANCOMFORIA KAMATA
COLLEGE COURTHACHIMANYAMA
COMFORIA UENOIRIYACOMFORIA IKEJIRICOMFORIA
SETAGAYAKAMIUMACOMFORIA
AKABANEIWABUCHICOMFORIA RYOGOKU TROISCOLLEGE SQUAREHACHIMANYAMA
Subtotal

1

COMFORIA KOMAE (Note 5)
COMFORIA
YOKOHAMAKANNAI (Note 6)
COMFORIA ICHIKAWAMYODENCOMFORIA YATSUKACOMFORIA SHINKOYASUCOMFORIA GYOTOKUGRANCREER CENTER-MINAMI
Subtotal
COMFORIA SHIN-OSAKACOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA KITASANJOCOMFORIA SAPPOROSHOKUBUTSUENCOMFORIA OGIMACHICOMFORIA SHINSAIBASHIEASTCOMFORIA KYOMACHIBORICOMFORIA AWAZACOMFORIA KITAHAMA
Subtotal
Total

4. Statement of Renewable Energy Power Generation Facilities

17th Fiscal Period(from August 1, 2018 to January 31, 2019)

94.0

36,528

0.5

1

96.1

37,565

0.5

1

95.9

159,655

2.1

1

100.0

30,222

0.4

1

99.1

155,382

2.0

1

100.0

30,222

0.4

1

92.6

64,233

0.8

1

95.4

64,323

0.8

1

92.8

30,081

0.4

1

85.1

27,318

0.3

1

100.0

72,601

0.9

1

95.7

73,156

0.9

1

93.3

43,116

0.6

1

87.0

60,629

0.8

1

97.3

27,023

0.3

1

97.3

40,171

0.5

1

100.0

7,785

0.1

1

100.0

20,976

0.3

2

96.7

3,227,789

41.5

2

96.1

3,242,784

41.2

－

－

15,411

0.2

－

－

－

－

－

－

13,980

0.2

－

－

－

－

1

96.2

24,452

0.3

1

97.8

24,855

0.3

1

95.2

27,495

0.4

1

98.4

27,033

0.3

1

94.0

39,933

0.5

1

91.2

37,632

0.5

1

98.3

27,983

0.4

1

96.6

26,782

0.3

－

－

－

－

1

100.0

84,210

1.1

1

95.6

149,256

1.9

2

98.8

200,512

2.5

1

98.8

91,162

1.2

1

97.2

91,624

1.2

1

95.9

58,545

0.8

1

96.5

58,393

0.7

1

93.5

31,459

0.4

1

97.4

31,504

0.4

1

87.6

34,153

0.4

1

95.5

33,632

0.4

1

95.3

42,563

0.5

1

95.2

41,149

0.5

1

100.0

41,323

0.5

1

95.5

43,123

0.5

1

92.4

59,711

0.8

1

95.1

59,943

0.8

1

97.6

45,562

0.6

1

100.0

48,134

0.6

1

98.9

42,902

0.6

1

97.8

42,453

0.5

1

98.6

53,946

0.7

1

100.0

53,712

0.7

1

95.9

501,331

6.5

1

96.9

503,671

6.4

Not applicable

5. Statement of Operational License of Public Facilities
Not applicable

6. Statement of Securities Incorporated in the Portfolio
Not applicable

7. Details of Specified Transactions
The amount of specified derivative transactions entered into by the Investment Corporation and fair value as of January 31, 2019are as follows.
Segment
Over-the-countertransactions

Type

Contract amount (millions of yen)

Total
(Note 1)
(Note 2)

Over 1 year

(Note 1)

Receive floating, pay
fixed interest-rate swap
transactions

Fair value(millions of yen)
(Note 2)

43,57543,575–43,57543,575–The contract amount of the interest-rate swap transactions is based on the notional principal.
The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate. The fair value is omitted fortransactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

8. Other Assets
Trust beneficial interests in properties owned by the Investment Corporation are listed on the aforementioned “3. Statement of
Properties Incorporated in the Portfolio.” As of the end of the 17th Fiscal Period, there is no incorporation in particular of specified
assets as principal investment targets by the Investment Corporation, other than assets in the aforementioned “3. Statement of
Properties Incorporated in the Portfolio,” “4. Statement of Renewable Energy Power Generation Facilities,” “5. Statement of
Operational License of Public Facilities” and “6. Statement of Securities Incorporated in the Portfolio.”

9. Ownership of Assets by Country and Region
Not applicable for countries and regions other than Japan3
96.6
7,771,914
100.0
3
96.4
7,869,488
100.0“Total number of tenants” indicates the total number of tenants under a direct lease relationship with the Investment Corporation or the trustee (including
tenants planned to have lease relationships). Therefore, in cases where the Investment Corporation or trustee comprehensively leases all of the apartments
for rent from each managed property to the master lease company (hereinafter referred to as the “introduction of a master lease”), and said master lease
company subleases each room for rent to end tenants, the total number of tenants will be shown as “1,” and will not include the number of end tenants
related to the said sublease. Tokyu Housing Lease Corporation, MAINICHICOMNET Co., Ltd. and Tokyu Land Corporation are the three master lease
companies hired by the Investment Corporation for its assets under management; therefore, the sum of the total number of tenants in the 17th Fiscal
Period is set as “3.,” which is the total number of master lease companies. Even for managed assets where a master lease is introduced, end tenants who
do not accept the introduction of a master lease will be under a direct lease relationship with the Investment Corporation or trustee. However, the numberof said end tenants is not included in the total number of tenants.
“Occupancy rate” is the percentage of rented area vs. the rentable area of each managed asset.
This property was sold to a third party as of November 15, 2018.
The master lease company has been changed from Mitsubishi Real Estate Services Co., Ltd. to Tokyu Housing Lease Corporation as of August 1,
2018.
This property was sold to a third party as of June 20, 2018.
This property was sold to a third party as of March 30, 2018.

- 18 -- 19 -

37

Capital Expenditure for Properties Owned

Status of Expenses and Liabilities

Capital Expenditure for Properties Owned

Status of Expenses and Liabilities

1. Expected Capital Expenditure

1. Statement of Expenses Related to Investments

Major capital expenditure that accompanies repair work currently planned for assets already acquired (includes assets undermanagement that were acquired after the account closing date) is as follows. The following expected amount of construction work
includes portions that are separately accounted under expenses.
Expected amount of construction work
(thousands of yen)for
Total amount
Total amount Payment
the period
already paid

Item

(Thousands of yen)

16th Fiscal Period
From Feb. 1, 2018 to Jul. 31, 2018

Asset management fee (Note)

17th Fiscal Period
From Aug. 1, 2018 to Jan. 31, 2019

436,079

464,589

Asset custody fee

7,336

7,679

Administrative service fees

27,84325,969Property name(location)

PurposeScheduled period

COMFORIA
AKABANEIWABUCHI(Kita-ku, Tokyo)

Subdivision work

From Aug. 2018
to Jul. 2019

128,665－－

Other expenses

COMFORIA NIHONBASHI(Chuo-ku, Tokyo)

Large-scale repair work

From Aug. 2019
to Jan. 2020

74,800－－

COMFORIA SHIMOOCHIAI(Shinjuku-ku, Tokyo)

Large-scale repair work

From Aug. 2019
to Jan. 2020

(Note) In addition to the amount stated above, asset management fees came to ¥111,035 thousand and ¥20,750 thousand in the 16th Fiscal Period and 17th
Fiscal Period, respectively, related to the acquisition of property and ¥18,050 thousand and ¥5,400 thousand in the 16th Fiscal Period and 17th Fiscal
Period, respectively, related to the sale of property are incorporated in the book value of each property．

64,200－－2. Loan Status

COMFORIA SHIBAKOEN(Minato-ku, Tokyo)

Large-scale repair work

From Feb. 2019
to Jul. 201959,800－－

COMFORIA
ICHIGAYAYANAGICHO(Shinjuku-ku, Tokyo)

Large-scale repair work

Directors’ compensation
Total

From Aug. 2019
to Jan. 2020

Balance at theType

53,900－Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Large-scale repair work
Large-scale repair work
Replacement of security systems
Value enhancement work for exclusive areas
Replacement of air conditioners, etc.

Total

From Apr. 2018
to Dec. 2018
From Aug. 2018
to Dec. 2018
From Aug. 2018
to Dec. 2018
From Aug. 2018
to Jan. 2019
From Sep. 2018
to Nov. 2018
From Aug. 2018
to Jan. 2019

42,591
29,991
12,097
4,589
87,003279,391

From the cash flows during the fiscal period, the Investment Corporation sets aside reserves for repairs, which are to beappropriated for repairs in the medium to long term.
(Thousands of yen)

Balance of reserves at the
beginning of period
Amount of reserves
during period
Reversal of reserves
during period
Amount carried forward
to next period

13th Fiscal Period

14th Fiscal Period

15th Fiscal Period

16th Fiscal Period

17th Fiscal Period

From Aug. 1, 2016
to Jan. 31, 2017

From Feb. 1, 2017
to Jul. 31, 2017

From Aug. 1, 2017
to Jan. 31, 2018

From Feb. 1, 2018
to Jul. 31, 2018

From Aug. 1, 2018
to Jan. 31, 2019378,887

377,947

349,367

328,884

357,243

304,044

311,155

523,929508,774

477,118

304,984

339,736

544,411

480,415

437,436

377,947

349,367

328,884

357,243

396,925- 20 -

38

Development Bank of Japan Inc.

103,117

3. Funding Reserved for Long-Term Repair Plans

Fiscal period

MUFG Bank, Ltd.

Long-term loans (Note 1)

Other properties, etc.

Large-scale repair work698,560

738,214Drawdown beginning ofcurrent perioddate

Balance at theend of current
period(millions of yen) (millions of yen)

Construction cost(thousands of yen)

PeriodLender－

The overview of main construction work corresponding to capital expenditure that took place in the 17th Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 17th Fiscal Period was ¥279,391
thousand. Together with repair expenses of ¥306,207 thousand that were classified as expenses for the 17th Fiscal Period,
construction work totaling ¥585,599 thousand was carried out.
Purpose3,600
236,375

The status of loans as of January 31, 2019 is as follows.

2. Capital Expenditure during the Period

Property name(location)
COMFORIA MINAMISUNAMACHI(Koto-ku, Tokyo)
COMFORIA SHIBAURA CANAL(Minato-ku, Tokyo)
COMFORIA ATAGO(Minato-ku, Tokyo)
COMFORIA NIBANCHO(Chiyoda-ku, Tokyo)
COMFORIA SENGOKU(Bunkyo-ku, Tokyo)

3,600
223,700

MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation

Mar. 23,2011
Sep. 4,2013
Sep. 30,
2013
Feb. 4,2014

Feb. 4,2014

Jun. 30,
2014

Jun. 30,
2014

Feb. 3,2015

Feb. 3,2015

Feb. 3,
2015

3,570
3,570
3,570
1,785
2,000
1,350
2,000
1,000
1,000
1,000
500
2,000
1,000
1,000
1,000
500
1,340
670
670
670
350
1,820
910
910
910
450
1,200
600
600
600
300
1,240
620
620
620
310
1,240
620
620
620
310

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

Remarks(Note 2)

3,570
3,570
Mar. 23,
0.56196
2019
3,570
1,785
Aug. 31,- 0.79500
2018
Sep. 30,
1,350 0.90487
2019
Jan. 31,- 0.60700
2019
2,000
1,000
Jan. 31,1,000 0.88240
2021
1,000
500
1,340
670
Jun. 30,
670 0.60150
2020
670
350
1,820
910
Jun. 30,
910 0.90100
2022
910
450
1,200
600
Jan. 31,600 0.69250
2022
600
300
1,240
620
Jan. 31,620 0.79875
2023
620
310
1,240
620
Jan. 31,620 1.04200
2025
620
310

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed
Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed
Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed
Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed- 21 -

39

LenderDrawdown beginning ofcurrent perioddate

Balance at theend of current
period

720
360
360
360
200
840
420
420
420
230
980
490
490
490
220
1,570
1,570
1,000
785
2,000
2,000
1,000
1,160
580
580
580
290
1,800
900
900
900
450
2,000
1,500
1,000
500
500
1,160
580
580
580
290
1,820
910
910
910
450
1,140
570
570
570
300
1,140
570
570
570
300

720
360
360
360
200
840
420
420
420
230
980
490
490
490
220
1,570
1,570
1,000
785
2,000
2,000
1,000
1,160
580
580
580
290
1,800
900
900
900
450
2,000
1,500
1,000
500
500
1,160
580
580
580
290
1,820
910
910
910
450
1,140
570
570
570
300
1,140
570
570
570
300

100

100

Long-term loans (Note 1)(millions of yen) (millions of yen)

MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
MUFG Bank, Ltd.
Kiraboshi Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Mizuho Trust & Banking, Co., Ltd.
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The 77 Bank, Ltd.
The Daishi Bank, Ltd.
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

40

Feb. 2,
2016

Feb. 2,
2016

Feb. 2,
2016

Mar. 23,
2016
Mar. 23,
2016

Aug. 1,
2016

Aug. 1,
2016

Jan. 31,2017

Feb. 2,2017Feb. 2,2017

Sep. 29,2017

Sep. 29,2017
Feb. 2,2018- 22 -

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

Balance at the

Remarks

Type

Lender
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Shinkin Central Bank
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
Mizuho Trust & Banking, Co., Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Nippon Life Insurance Company
Taiyo Life Insurance Company

Mar. 31, Lump-sum
Unsecured(Note 3)0.584302023
repayment
Unguaranteed

0.62460

0.67745

Aug. 31, Lump-sum
Unsecured(Note 3)2023
repayment
Unguaranteed

Feb. 29,2024

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Mar. 31, Lump-sum
Unsecured(Note 3)0.27125
2021
repayment
Unguaranteed

0.61950

Mar. 31, Lump-sum
Unsecured(Note 3)2025
repayment
Unguaranteed

Jul. 31,0.466552024

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Jul. 31,0.65518
2026

Lump-sum
Unsecured(Note 3)
Unguaranteed
repayment

0.46691

Jan. 31,2022

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.62938

Jan. 31,2024

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.79571Jan. 30,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.49054

Sep. 30,2022

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.77571

Sep. 30,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.26196Feb. 28,
2019

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Drawdown beginning ofcurrent perioddate

Balance at theend of current
period

1,040
520
520
520
260
1,300
1,300
1,300
1,000
2,700
1,350
600
-

1,040
520
520
520
260
1,300
1,300
1,300
1,000
2,700
1,350
600
500
500

-

1,000

-

700
700
350
350
550
550
550
275
275
550
550
550
550
300
670
670
670
320

-

670

103,230

107,530(millions of yen) (millions of yen)

(Note 2)Long-term loans (Note 1)

Balance at theTypeMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

(Note 3)Mar. 30,
2018
Mar. 30,
2018
Aug. 31,2018
Aug. 31,2018

Resona Bank, Ltd.

(Note 1)
(Note 2)Feb. 2,
2018

Total

Sep. 25,
2018

Sep. 25,
2018

Jan. 31,2019

Jan. 31,2019
Jan. 31,
2019

Averageinterest Maturity
date
rate (%)(Note 2)

Repayment Use of
methodfunds

Remarks

0.65428

Jan. 31,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.45804

Mar. 31,2023

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.62188

Mar. 31,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.55126

Jan. 31,2024

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.73497

Aug. 31,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.26258

Oct. 31,2019

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.85667

Mar. 31,2027

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.43105

Jul. 31,2023

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.39950

Jan. 31,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.49994

Jan. 31,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Long-term loans include the current portion of long-term loans payable.
Average interest rates consist of the borrowing rates for each loan agreement rounded to the fifth decimal place. Furthermore, the stated rate for loans
for which interest-rate swap transactions were carried out to avoid interest rate risk takes into account the effect of the interest-rate swap.
The use of funds includes purchasing properties in trust and the repayment of existing borrowings.

- 23 -

41

Purchase and Sale during the Period
Purchase and Sale during the Period
3. Investment Corporation Bonds

1. Purchase and Sale of Properties and Asset Backed Securities

The status of investment corporation bonds as of January 31, 2019 is as follows.
Issue

Issue date

Balance at theBalance at the end
Coupon rate
beginning of currentof current period(%)
period (millions of yen) (millions of yen)

Maturity
date

Repayment
methodUse offunds

Security

Acquisition

Property name

Sale

Acquisitiondate

Acquisition price(millions of yen)
4,150

Sale priceBook value
Gain on sale(millions of yen) (millions of yen) (millions of yen)

Sale date

1st Unsecured Bond Jul. 30, 2014

3,000

3,000

0.64000

Jul. 30, 2021

Lump-sum
repayment(Note 2)

Unsecured

GRANCREER
CENTER-MINAMI

Sep. 25, 2018

2nd Unsecured Bond Jul. 18, 2017

1,000

1,000

0.23000

Jul. 15, 2022

Lump-sum
repayment(Note 2)

Unsecured－

Jul. 16, 2027

Lump-sum
repayment(Note 2)

Unsecured

COMFORIA
MINAMIAOYAMA
DEUX
Total

－

0.23000 Dec. 14, 2023

Lump-sum
repayment(Note 2)

Unsecured(Note) The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property tax, city
planning tax, consumption tax and local consumption tax.

0.95000

Lump-sum
repayment(Note 2)

Unsecured

2. Purchase and Sale of Other Assets(Note 1)
(Note 1)

3rd Unsecured Bond Jul. 18, 2017
(Note 1)

4th Unsecured Bond
(Note 1)

5th Unsecured Bond
(Note 1)

Jun. 14, 2018
Jun. 14, 2018

Total
(Note 1)
(Note 2)

2,000
1,000

2,000
1,000

1,500

1,500

8,500

8,500

0.52000

Jun. 14, 2033

The bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are appropriated to the acquisition of real estate in trust and the repayment of some of the existing borrowings.

－－ Nov. 15, 2018
4,150

－

－

－

－

540

255

259

540

255

259

Main assets other than the above properties and asset backed securities are bank deposits or bank deposits within trust assets.

3. Appraisals of Specified Assets(1) Real estate, etc.

4. Short-Term Investment Corporation Bonds
Not applicable

Acquisitionor sale5. Investment Unit Acquisition Rights
Not applicable

Acquisition
Sale

Type of asset
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Real estate appraisal
Acquisition priceor sale priceAppraisal value Appraisal
Date of(millions of yen)(millions ofcompany
valuation(Note 1)
(Note 3)yen) (Note 2)

Property nameAcquisition orsale date

GRANCREER CENTERMINAMI

Sep. 25, 2018

4,150

4,180

(1)

Aug. 1, 2018

COMFORIA
MINAMIAOYAMA DEUX

Nov. 15, 2018

540

411

(2)

Jul. 31, 2018

(Note 1) The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property
tax, city planning tax, consumption tax and local consumption tax.
(Note 2) Appraisal value indicates appraisal value or investigated value.
(Note 3) The real estate appraisers handling the real estate appraisal or research reports of each property are: (1) Japan Real Estate Institute and (2) The
Tanizawa Sōgō Appraisal Co., Ltd.

(2) Other
Of the transactions carried out by the Investment Corporation that were deemed to require a research on prices, etc. pursuant
to the provisions of Article 201 of the Investment Trusts Act, except for those shown in the aforementioned “(1) Real estate,etc.”, the research was entrusted to Tokyo Kyodo Accounting Office. Between August 1, 2018 and January 31, 2019, there wasa single interest rate swap transaction that was subject to the research. The Investment Corporation received a research report
regarding the counterparty’s name, currency type, agreed-upon interest rate, transaction period and other details of the relevant
swap transaction.

- 25 -

42- 24 -

43

Accounting Status
Accounting Status
4. Transactions with Related Parties

1. Assets, Liabilities, Principal and Profit/Loss(1) Information on transaction

Please referStatus
to “1. Balance Sheets,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statements
Accounting

Purchase and sales amount

Category

Purchase amount

Total amount of Cash Distributions,” “5. Statements of Cash Flows,” and “6. Notes.”

1. Assets, Liabilities, Principal and Profit/Loss
2. Changes in the Calculation Method of Depreciation

Sales amount¥4,150,000 thousand

Please refer to “1. Balance Sheets,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statements
Notapplicableof CashDistributions,” “5. Statements of Cash Flows,” and “6. Notes.”¥540,000 thousand  Breakdown of transactions between related parties
Tokyu Land Corporation
Total

3.
Changes inin thethe Appraisal
Methodofof
RealEstate, etc.
2. Changes
Calculation
MethodDepreciation¥4,150,000 thousand (100.0%)¥－ thousand (－%)

¥4,150,000 thousand (100.0%)¥－ thousand (－%)

(Note) The term “Related parties” refers to related parties defined in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment
Corporations as well as related parties of the Investment Corporation prescribed in 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. Descriptions are included
with regard to related parties that fall under any of these and that had transactions or paid commissions, etc. during the 17th Fiscal Period. (The same
shall apply in “(2) Amount of commission paid” and “(3) Major payments to other related parties” below.)(2) Amount of commission paid
Category

Total amount ofcommission paid(A)
(thousands of yen)

Tokyu Housing Lease Corporation

Amount of payment(B)(thousands of yen)

Percentage of total
amount (B/A)(%)

368,92061.8
4.7

Property management
entrustment costs

596,837 Community One Co., Ltd.

27,951Tokyu Community Corp.

4,522

0.8

Utilities expenses

115,084 Tokyu Community Corp.

56,59449.2

Marketing-related
expenses

146,504 Tokyu Livable, Inc.

1,327

0.9

Other expenses related
to rent business

10,572

6.6

159,246 Tokyu Redesign Corporation

2,100

1.3

1,979

1.2

Tokyu Sports Oasis, Inc.
Community One Co., Ltd.

3. Changes in the Appraisal Method of Real Estate, etc.

Other

Not applicable

Other

1. Beneficiary Certificates of Investment Trusts Established by the Investment Corporation
Not applicable
Other

2.
1. Notices
Beneficiary Certificates of Investment Trusts Established by the Investment Corporation

Breakdown of transaction with related parties
Payee

Not
Not applicableapplicable(3) Major payments to other related parties
Tokyu Livable, Inc.
¥16,260 thousand (brokerage fees)
Ewel Inc.
¥1,275 thousand (system usage, etc.)
Tokyu Community Corp.
¥1,821 thousand (repair work)

5. Transactions with Asset Management Company related to Concurrent Operations Carried Out by the AssetManagement Company
The Asset Management Company is not concurrently engaged in type I financial instruments business, type II financial instruments
business, realty business or specified real estate cooperative business.

(1) Not
Unitholders’Meeting
applicableNot applicable

2. Notices(2) Board of Directors of the Investment Corporation(1) TheUnitholders’Meetingof the major conclusion and change of contracts that were approved by the Board of Directors of the Investment
main overviews
Corporation
during current period are as follows.
Not applicable
Approval date
MatterOverview(2) Board of Directors of the Investment Corporation
Conclusionofanewinvestment
unit
A
new
investment
unit
underwriting
contractwith Mizuho
Securities
The main overviews of the major conclusion and change of contracts that were approved by the Boardof Directorsof the Investment
underwriting
contract
pertaining
to
Co.,
Ltd.
and
four
other
companies(Note)
fortheissuanceof new
Corporation during current period are as follows.
the issuance of new investment units investment units and the secondary offering of investment units that
Approval date and the secondary
Matter offering of were approved at the Board ofOverview
Directors' meetings held on January 7,
January 7, 2019
investment
andinvestment
the conclusion
January 16,
as well ascontract
a new investment
unitSecurities
purchase
Conclusion units,of a newunit 2019
A newandinvestment
unit2019,
underwriting
with Mizuho
of a new investment
purchase
contract
to thecompanies
Green Shoe
optionthe book of
runnerunderwriting
contract unit
pertaining
to Co.,
Ltd.pertaining
and four other(Note)
forwith
the issuancenewcontract
withof regard
to the Green(Mizuho Securities
Co.,
were concludedof January units
16, 2019,
theissuance
new investment
units investment
units and
theLtd.)secondaryoffering ofasinvestment
that
Shoe
and option
the secondary offering of respectively.
were approved at the Board of Directors' meetings held on January 7,
January 7, 2019
investment
units,
andtheandconclusion
2019Securities
and January
2019,areas co-leadwell as managers,
a new investment
unit purchase(Note) Other than Mizuho
Securities
Co.,
Ltd.
SMBC Nikko
Inc.,16,which
the companies
areof a new investment unit purchase contract pertaining to the Green Shoe option with the book runner
Daiwa Securities
Co.
Ltd.,
NomuraSecurities
Co.,
Ltd.
and
Mitsubishi
UFJ
MorganStanley
Securities
Co.,
Ltd.
contract with regard to the Green (Mizuho Securities Co., Ltd.) were concluded as of January 16, 2019,
Shoe option
respectively.

3. Disclosure on Overseas Property-Owning Corporations(Note) Other than Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc., which are co-lead managers, the companies are
Not applicable
Daiwa Securities Co. Ltd., Nomura Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

4.
on RealEstateOwned by Overseas
Property-Owning Corporations
3. Disclosure
Disclosure on
Overseas
Property-Owning
Corporations
Not
Not applicableapplicable

5.
4. OtherDisclosure on Real Estate Owned by Overseas Property-Owning Corporations

Figuresin this document are rounded down (values) and rounded to the nearest decimal place (percentages) unless
Not applicable
otherwise indicated.

5. Other
Figures in this document are rounded down (values) and rounded to the nearest decimal place (percentages) unlessotherwise indicated.

- 27 -

44- 26 -

45

III. Financial Section
III. Financial Section
1. Balance Sheets(Thousands of yen)
16th Fiscal Period(As of July 31, 2018)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets(Thousands of yen)

17th Fiscal Period(As of January 31, 2019)

6,673,896
6,814,124
6,296
389,506142
13,883,967

7,981,322
7,025,009
6,860
365,221–
15,378,413

2,546,503(139,824)
2,406,679
28,301(4,013)24,288
17,687(1,188)16,499
3,062
(623)
2,438
4,674,303
92,110,382(9,484,725)
82,625,656
1,183,712(285,120)
898,592
1,557,003(248,426)
1,308,576
291,661(88,080)
203,581
109,498,297–
201,658,914

2,547,500(168,808)
2,378,692
28,301(4,897)
23,404
17,687(1,462)
16,225
3,062
(889)
2,172
4,674,303
93,883,874(10,571,985)
83,311,888
1,196,527(315,059)
881,467
1,557,003(275,871)
1,281,132
340,254(112,950)
227,303111,993,547
7,277
204,797,414

1,183,441
11,7391,195,181

1,174,875
17,667
1,192,543

1,525,188
858,156
2,383,344
205,237,439

1,525,188854,894
2,380,082
208,370,041

39,42649,48088,907219,210,314

36,07745,311
81,388
223,829,843

16th Fiscal Period(As of July 31, 2018)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

17th Fiscal Period(As of January 31, 2019)657,356
20,095,000
63,919157,188
8,741
12,063
1,241,403
2,201
22,237,872

599,318
16,045,000
45,882
159,605
5,646
11,521
1,270,582–
18,137,557

8,500,000
83,135,000
32,7402,160,708
96,372
4,269
93,929,090
116,166,963

8,500,000
91,485,000
33,9002,282,280
96,972
4,237
102,402,390
120,539,947

99,814,378

99,814,378

37,27737,277

302,807
302,8073,191,695

3,172,709

3,228,972
103,043,351*1 103,043,351
219,210,314

3,475,517
103,289,895*1 103,289,895
223,829,843- 28 -

46

47- 29 -

2. Statements of Income

3. Statements of Changes in Unitholders’ Equity(Thousands of yen)
16th Fiscal Period(From February 1, 2018
to July 31, 2018)

Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Directors' compensations
Audit fee
Asset custody fee
Administrative service fees
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Amortization of investment unit issuance expenses
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)

16th Fiscal Period (From February 1, 2018 to July 31, 2018)

17th Fiscal Period(From August 1, 2018
to January 31, 2019)*1 7,417,674*1
354,240*2
375,576
8,147,490*1 7,594,821*1
274,666*2
259,090
8,128,578*1 3,745,525
436,079
3,600
13,842
7,336
27,843
209,858
4,444,086
3,703,404*1 3,687,607
464,589
3,600
13,842
7,679
25,969222,533
4,425,821
3,702,757

65
797
863

65
860
925

328,912
135,666
18,112

342,563
140,735
24,290

3,385

4,169

13,589499,666
3,204,601
3,204,601
8,751
4,341
13,092
3,191,509
186
3,191,695

13,589525,349
3,178,333
3,178,333
5,656
(32)
5,624
3,172,709–
3,172,709

Surplus
Unitholders'
capitalBalance at beginning ofcurrent period

94,557,898

Issuance of new
investment units

Reserveforreduction
entry

Total
voluntary
retainedearnings

61,846

61,846

Unappropriatedretainedearnings(undisposed
loss)

Total
unitholders'equityTotal net assets

Total surplus

2,674,584

2,736,430

97,294,329

97,294,329

5,256,480

5,256,480

5,256,480

Reversal of reserve for
reduction entry

24,568–––Dividends of surplus(2,698,966)(2,698,966)(2,698,966)(2,698,966)(24,568)

Profit3,191,509

3,191,509

3,191,509

3,191,509

Total changes of items
during period
Balance at end of current
period*1(24,568)

5,256,480(24,568)(24,568)

517,111492,542

5,749,022

5,749,022

99,814,378

37,27737,277

3,191,695

3,228,972

103,043,351

103,043,351

17th Fiscal Period (From August 1, 2018 to January 31, 2019)(Thousands of yen)

Unitholders' equity
Surplus
Unitholders'
capitalVoluntary retained
earnings

Unappropriatedretainedearnings(undisposed
loss)

Total net assets

Total surplus

Totalunitholders'equityReserveforreduction
entry

Total
voluntary
retainedearnings

37,27737,277

3,191,695

3,228,972

103,043,351

103,043,351

Reserve for reduction
entry

285,330

285,330(285,330)–––

Reversal of reserve for
reduction entry(19,800)(19,800)

19,800–––

Dividends of surplus(2,926,165)(2,926,165)(2,926,165)(2,926,165)

Profit3,172,709

3,172,709

3,172,709

3,172,709

Balance at beginning ofcurrent period

99,814,378

Changes of items during
periodBalance at end of current
period- 30 -

Voluntary retained
earnings

Changes of items during
periodTotal changes of items
during period

48(Thousands of yen)

Unitholders' equity*1–

265,530

265,530(18,986)

246,544

246,544

246,544

99,814,378

302,807

302,8073,172,709

3,475,517

103,289,895

103,289,895- 31 -

49

5. Statements of Cash Flows

4. Statements of Cash Distributions
Category

I. Unappropriated retained earnings
II. Reversal of Voluntary retained
earnings
Reversal of reserve for reduction
entryIII. Distributions

16th Fiscal Period(From February 1, 2018
to July 31, 2018)

17th Fiscal Period(From August 1, 2018
to January 31, 2019)¥3,191,695,429¥3,172,709,313¥19,800,000¥17,477,446¥2,926,165,090¥3,040,628,920[¥4,985][¥5,180]¥285,330,339¥149,557,839[Distribution per unit]
IV. Voluntary retained earnings
Provision of reserve for reduction
entry
V. Retained earnings carried forward
Method for calculating distributions

50¥0
The Investment Corporation will makecash distributions up to the amount ofaccounting profit based on the
distribution policy outlined in Article 351 of the Investment Corporation’s
Articles of Incorporation, in an amountthat exceeds 90% of the “amount of
distributable profit” of the Investment
Corporation as set forth in Article 67-15
of the Act on Special Measures
Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥2,926,165,090 as the total amount ofdividends for the period under review,which is equivalent to the entire amountof unappropriated retained earnings after
adding reversal of reserve for reduction
entry and deducting the provision ofreserve for reduction entry pursuant to
Article 66-2 of the Act on Special
Measures Concerning Taxation.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profit as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

- 32 -¥0
The Investment Corporation will makecash distributions up to the amount ofaccounting profit based on the
distribution policy outlined in Article 351 of the Investment Corporation’s
Articles of Incorporation, in an amountthat exceeds 90% of the “amount of
distributable profit” of the Investment
Corporation as set forth in Article 67-15
of the Act on Special Measures
Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥3,040,628,920 as the total amount ofdividends for the period under review,which is equivalent to the entire amountof unappropriated retained earnings after
adding reversal of reserve for reduction
entry and deducting the provision ofreserve for reduction entry pursuant to
Article 66-2 of the Act on Special
Measures Concerning Taxation.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profit as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

(Thousands of yen)
16th Fiscal Period(From February 1, 2018
to July 31, 2018)

Cash flows from operating activities
Profit before income taxes
Depreciation
Borrowing related expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Gain on forfeiture of unclaimed dividends
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Decrease due to sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Payments for investment corporation bond issuance costs
Proceeds from issuance of investment units
Dividends 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- 33 -*1

17th Fiscal Period(From August 1, 2018
to January 31, 2019)

3,204,601
1,203,424
135,666
3,385
13,589(65)(797)
347,025(712)(23,060)(9,341)
91,6262,318
6,582
64,194
4,598
1,347,161
(495)
6,389,702
65(344,862)(6,048)6,038,856

3,178,333
1,226,501
140,735
4,169
13,589(65)(860)
366,853(563)
24,094(541)(69,386)
2,114
5,077
29,1784,429
255,458(2,058)5,177,061
65(366,788)(8,751)4,801,588(1,774,048)(14,265,028)(358)(17,965)
10,621(2,311)
359,620(244,613)(15,934,084)(12,426)(4,606,483)(9,743)–
4,746(3,310)311,187(197,322)(4,513,351)(1,130,000)
15,153,173(9,690,000)
2,479,210–
5,233,574(2,698,430)(8,110)9,339,416(555,810)
14,043,831
13,488,021–
11,664,923(7,500,000)
–
(749)
–
(2,925,030)(9,069)1,230,074
1,518,310
13,488,021
15,006,331*1

51

6. Notes

6.

<Summary of Significant Accounting Policies>
1.

Method of depreciation andamortization of non-current
assets(1) Property, plant and equipment (including trust assets)
Property, plant and equipment are depreciated using the straight-line method over theestimated useful lives as follows:
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures

Other significant accounting
policies applied in the
preparation of financial
statements

2–70 years
2–69 years
10–34 years
2–15 years(2) Accounting method for consumption taxes
Revenues and expenses in the Statements of Income do not include consumption taxes.
Non-deductible consumption taxes applicable to the acquisition of non-current assets,etc. are included in the cost of acquisition for each asset.

(2) Intangible assets (including assets in trust)Intangible assets are amortized by the straight-line method.

2.

3.

4.

Accounting policies fordeferred assets

Accounting standards forrevenues and expenses

Method of hedge accounting(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line
method over the redemption periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized in averaged amount on a monthly
basis using the straight-line method over three years.
Accounting treatment of property tax, city planning tax, and depreciable asset tax
For property tax, city planning tax, and depreciable asset tax (“property tax”) for realestate properties held, the amounts to be paid for the fiscal periods are calculated out of
the tax amounts decided to be levied and are recorded as expenses related to rent
business.
Of the amounts paid for the acquisition of real estate property or beneficial interests inreal estate trust, the amounts equivalent to property tax settled with the seller of theproperty are capitalized as part of the acquisition cost of the relevant property rather
than being charged as expenses.
(1) Method of hedge accounting
The deferred hedge method is applied.
However, the special accounting treatment is applied for interest-rate swap
transactions that meet certain criteria.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest expenses on loans payable(1) Accounting method for beneficial interests in real estate trust and other assets
Regarding trust beneficiary interests in real estate, all assets and liability accounts of
entrusted properties as well as revenue and expense accounts generated by the property
in trust are recorded in relevant accounts on the Balance Sheets and Statements ofIncome.
Important line items included in accounting for financial assets and liabilities in
the Investment Corporation’s Balance Sheets are as follows:(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; construction in progress in trust; andleasehold rights in trust(iii) Tenant leasehold and security deposits in trust<Notes to Changes in the Presentation >From the beginning of the 17th fiscal period, the Investment Corporation applied the Partial Amendments to Accounting Standard forTax Effect Accounting (The Accounting Standards Board of Japan Statement No. 28 issued on February 16, 2018) and changed thepresentation method so that deferred tax assets are classified as investments and other assets and deferred tax liabilities are classified
as non-current liabilities. As a result, deferred tax assets amounting to ¥703 thousand which were presented under “Other” in“Current assets” on the balance sheet as of July 31, 2018 have been offset against deferred tax liabilities and included in “Other,”
which now amounts to ¥4,269 thousand, in “Non-current liabilities.”<Notes to the Balance Sheets>*1. Minimum net assets pursuant to Article 67-4 of the Act on Investment Trusts and Investment Corporations
16th Fiscal Period(As of July 31, 2018)
50,0002.

(Thousands of yen)

17th Fiscal Period(As of January 31, 2019)50,000Commitment line agreement
The Investment Corporation has commitment line contracts with three of the banks (as of July 31, 2018) and three of the banks(as of January 31, 2019), respectively.
(Thousands of yen)

Credit limit
Outstanding debt
Unused commitment line

16th Fiscal Period(As of July 31, 2018)
10,000,000–
10,000,000

17th Fiscal Period(As of January 31, 2019)10,500,000–
10,500,000(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its
investment management guidelines with the objective of hedging interest rate
fluctuation risks and other risks pertaining to borrowings, etc.

5.

52

Scope of funds (cash andcash equivalents) on theStatements of Cash Flows(4) Method of evaluating the effectiveness of hedging
As for the method of assessing the effectiveness of the hedge, the cumulative changes
in cash flow of the hedged items and hedging instruments are compared and a judgment
is made by verifying the ratio of the changed amount. However, an assessment of theeffectiveness of hedging activities is omitted in the case of interest-rate swap
transactions that meet the requirements for the special treatment.
The funds (cash and cash equivalents) on the Statements of Cash Flows consist of cash on
hand and cash in trust, deposits and deposits in trust that are readily available, and shortterm investments with maturities of three months or less from the date of purchase which
are readily convertible to cash and with insignificant risk of market value fluctuation.

- 34 -- 35 -

53

<Notes to the Statements of Income>*1. Breakdown of real estate rental revenues and expenses<Notes to the Statements of Changes in Unitholders’ Equity>(Thousands of yen)

A. Real estate rental revenue
Lease business revenue(Rental revenues and common service charges)(Parking revenues)
Other lease business revenue(Key money and contract renewal fees)(Other revenues)
Total real estate rental revenues
B. Real estate rental expenses
Expenses related to rent business(Property management fees and facility
management fees)(Repairs and maintenance)(Land rent)(Tax and public dues)(Insurance)(Utilities)(Marketing-related expenses)(Trust fees)(Depreciation)(Other expenses related to rent business)
Total real estate rental expenses
C. Income from real estate rental business(A - B)

16th Fiscal Period(From February 1, 2018
to July 31, 2018)

17th Fiscal Period(From August 1, 2018
to January 31, 2019)

7,262,560
155,1137,444,426
150,394

205,098
149,141

7,417,674
354,240
7,771,914

145,265
129,401

684,012596,837

277,912703,795
355,794
5,885
109,740
196,72146,052
1,200,838
164,772

306,207706,671
380,884
6,155
115,084
146,504
45,612
1,223,402
160,246

3,745,525
4,026,388

7,594,821
274,666
7,869,488(1) COMFORIA KOMAE
Revenue from sales of real estate properties
Cost of sales of real estate properties
Other sales expenses
Gain on sales of real estate properties

3,687,607(Thousands of yen)

419,886
28,427(2) COMFORIA YOKOHAMAKANNAI
Revenue from sales of real estate properties
Cost of sales of real estate properties
Other sales expenses
Gain on sales of real estate properties

927,275
53,833448,314
156,685
1,200,000
981,108
218,891(Thousands of yen)
255,458
25,451

Due within 1 year
Due after 1 year
Total

8,000,000 units

586,994 units

586,994 units

16th Fiscal Period(From February 1, 2018
to July 31, 2018)
6,673,896
6,814,124
13,488,021

540,000
280,909
259,09016th Fiscal Period(As of July 31, 2018)
1,381,584
80,684,505
82,066,089

2. Operating lease transactions (Lessor)
Future minimum lease payments receivable under non-cancelable operating lease transactions

605,000

17th Fiscal Period (From August 1, 2018 to January 31, 2019)(1) COMFORIA MINAMIAOYAMA DEUX
Revenue from sales of real estate properties
Cost of sales of real estate properties
Other sales expenses
Gain on sales of real estate properties

8,000,000 units<Notes to lease transactions>
1. Operating lease transactions (Lessee)
Future minimum lease payments under non-cancelable operating lease transactions

4,181,881

17th Fiscal Period(From August 1, 2018
to January 31, 2019)<Notes to the Statements of Cash Flows>*1. Reconciliation of balance sheets items to cash and cash equivalents at end of period in the Statements of Cash Flows(Thousands of yen)

Cash and deposits
Cash and deposits in trust
Cash and cash equivalents*2. Breakdown of gain on sales of real estate properties
16th Fiscal Period (From February 1, 2018 to July 31, 2018)*1. Total number of authorized investment
units and total number of investment
units issued and outstanding
Total number of authorized investment units
Total number of investment units issued andoutstanding

16th Fiscal Period(From February 1, 2018
to July 31, 2018)

Due within 1 year
Due after 1 year
Total

16th Fiscal Period(As of July 31, 2018)

275,991
475,927
751,91917th Fiscal Period(From August 1, 2018
to January 31, 2019)
7,981,322
7,025,009
15,006,331(Thousands of yen)
17th Fiscal Period(As of January 31, 2019)
1,381,584
79,993,713
81,375,297(Thousands of yen)
17th Fiscal Period(As of January 31, 2019)
603,046
5,904,575
6,507,622<Notes to financial instruments>
1. Status of financial instruments(1) Policies for financial instruments
With a focus on stability, flexibility and efficiency as the basis of its financial policy, the Investment Corporation procures
funds through borrowings as well as the issuance of investment corporation bonds (including short-term investment corporation
bonds; the same shall apply hereinafter) and investment units among other means with the aim of growing its investment assets
through their acquisition.
The Investment Corporation may enter into derivatives transactions, which shall be executed solely for the purpose ofhedging against interest-rate fluctuations and other risks pertaining to borrowings, etc.
(2) Characteristics and risk profile of each financial instrument and risk management system
The funds for borrowings and investment corporation bonds are mainly appropriated for the acquisition of investment assets
and repayment of borrowings, etc. With regard to liquidity and interest rate fluctuation risks associated with these financing
activities, the Investment Corporation endeavors to manage and limit them by considering and implementing multifaceted
funding methods including the utilization of surplus funds and raising funds, etc. from capital markets through issuance ofinvestment units, etc. while diversifying funding sources. Although loans with floating interest rates are exposed to a risk offluctuation in interest payable, the Investment Corporation employs derivative transactions (interest-rate swap transactions) as
hedging instruments in order to avoid interest rate fluctuation risks and fix payment of interest expenses. For more detailed
information on the method of hedge accounting, hedging instruments, hedged items, hedging policy and the evaluation method
for hedge effectiveness, please refer to the previous section “6. Notes: Summary of significant accounting policies, 4. Methodof hedge accounting.”(3) Supplementary note regarding fair value of financial instruments
The fair values of financial instruments presented in this report is based on their market value, and in cases where market value
is not available, reasonably estimated values are presented. Since the estimation of fair value is based on certain assumptions,fair value could differ depending on the assumptions used.

54- 36 -- 37 -

55

2.

Fair value of financial instruments
The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of July 31,
2018 are as follows.
(Thousands of yen)
Carrying value

Fair value(Note 1)

6,673,896

6,673,896―(2) Cash and deposits in trust

6,814,124

6,814,124―(3) Current portion of long-term loans payable(20,095,000)（20,105,449)

10,449(4) Investment corporation bonds(8,500,000)(8,539,553)

39,553(5) Long-term loans payable(83,135,000)(83,578,428)

443,428―――

The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of January
31, 2019 are as follows.
(Thousands of yen)
Carrying value

Fair value(Note 1)

(1) Cash and deposits(Note 1)

7,981,322(2) Cash and deposits in trust

Difference

7,981,322―(3) Current portion of long-term loans payable(16,045,000)(16,050,104)5,104(4) Investment corporation bonds(8,500,000)(8,618,518)

118,518(5) Long-term loans payable(91,485,000)(92,393,251)

908,251―――(Note 3)Figures in parentheses indicate liabilities.
Methods to determine the fair value of financial instruments:(1) Cash and deposits and (2) Cash and deposits in trust
Due to their short tenors, the carrying values of these assets are reasonable approximations of their present value and hence are used as theirfair value.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short term and theircarrying values are good approximations of their fair value, the carrying values are presented as their fair value. However, the fair value offloating-rate long-term loans payable and current portion of long-term loans payable hedged by interest-rate swap transactions subject tospecial accounting treatment (refer to the following section entitled “Notes to derivative transactions”) are calculated by discounting theaggregated principal and interest on such loans, after taking into account the effect of said interest-rate swap transactions, using reasonableestimates of the rates that would be applicable in a similar borrowing.
(4) Investment corporation bonds
The fair value of investment corporation bonds is measured based upon the present value obtained by discounting the total amount ofprincipal and interest at a rate that takes into account the term to maturity and credit risk.
(6) Derivative transactions
Please refer to the following section entitled “Notes to derivative transactions.”
Carrying value of financial instruments whose fair value cannot be reliably measured(Thousands of yen)
16th Fiscal Period(As of July 31, 2018)(1) Tenant leasehold and security deposits(2) Tenant leasehold and security deposits in trust

17th Fiscal Period(As of January 31, 2019)(32,740)(33,900)(2,160,708)(2,282,280)(1)(2) Fair values of tenant leasehold and security deposits and leasehold and security deposits in trust are not subject to disclosure of fair value,as these items have no market value and their future cash flows are difficult to reasonably estimate given the fact that although a predetermined
period for each lease contract exists, the actual deposit period cannot be calculated due to possible contract termination, renewal or extension.
(3) Figures in parentheses indicate liabilities.

56- 38 -

Deposits

6,673,896

Deposits in trust

6,814,124

Total

13,488,021

17th Fiscal Period (As of January 31, 2019)
Due within
1 year or less

(Note 5)

Deposits

7,981,322

Deposits in trust

7,025,009

Total

15,006,331

Repayment and redemption schedule for loans payable and investment corporation bonds (Thousands of yen)―

7,025,009(Note 1)
(Note 2)

Due within
1 year or less16th Fiscal Period (As of July 31, 2018)

7,025,009(6) Derivative transactions

Redemption schedule for monetary claims (Thousands of yen)
16th Fiscal Period (As of July 31, 2018)

Difference(Note 1)

(1) Cash and deposits(6) Derivative transactions(Note 4)Current portion of
long-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total

Due within
1 year or lessDue after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

20,095,000

―

―

―

―

―

―

5,050,000

10,425,000

13,800,000

13,460,000

40,400,000――

3,000,000

1,000,000―

4,500,000

20,095,000

5,050,000

13,425,000

14,800,000

13,460,000

44,900,000

Due within
1 year or lessDue after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

16,045,000

―

―

―

―

―

―

9,200,000

13,725,000

11,560,000

15,920,000

41,080,000――

3,000,000

1,000,000

1,000,000

3,500,000

16,045,000

9,200,000

16,725,000

12,560,000

16,920,000

44,580,000

17th Fiscal Period (As of January 31, 2019)

Current portion of
long-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total<Notes to investment securities>
16th Fiscal Period (As of July 31, 2018)
Not applicable
17th Fiscal Period (As of January 31, 2019)
Not applicable<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
16th Fiscal Period (As of July 31, 2018)
Not applicable
17th Fiscal Period (As of January 31, 2019)
Not applicable- 39 -

57

2.

Transactions subject to hedge accounting

2.

16th Fiscal Period (As of July 31, 2018)(Thousands of yen)

Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable(*1)

48,745,000

41,245,000

48,745,000

41,245,000

17th Fiscal Period (As of January 31, 2019)
Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable

Total

(*1)

(*2)

―

(Thousands of yen)Calculation
Contract amountmethod for
Fair value
applicable fair
Maturing after 1 yearvalue
43,575,000

43,575,000

43,575,000

43,575,000

(*2)

―
―

―

*1 Long-term loans payable include the current portion of long-term loans payable.
*2 Interest-rate swap transactions for which the special treatment is applied are accounted for together with long-term loans payable and the underlying
hedged items. As a result, their fair value is included in the fair value of items listed under “(3) Current portion of long-term loans payable” and “(5)Long-term loans payable” in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”<Notes to retirement benefits>
16th Fiscal Period (As of July 31, 2018)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
17th Fiscal Period (As of January 31, 2019)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
<Notes to deferred tax accounting>
1. Components of deferred tax assets and liabilities

Statutory tax rate
(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry
Other
Effective tax rate――

Deferred tax assets
Nondeductible enterprise tax payable
Amortization of leasehold rights
Asset retirement obligations
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Property, plant and equipment
corresponding to asset retirement
obligations
Total deferred tax liabilities
Deferred tax assets (liabilities), net- 40 -

424
17,781
33,55251,759(51,334)424(4,973)(4,662)(4,973)(4,269)(4,662)(4,237)

34.81

34.60

(31.79)(3.10)
0.48
0.41(33.10)(1.63)
0.31
0.18<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other16th Fiscal Period (As of July 31, 2018)
Not applicable
17th Fiscal Period (As of January 31, 2019)
Not applicable2.

Affiliated companies and other16th Fiscal Period (As of July 31, 2018)
Not applicable
17th Fiscal Period (As of January 31, 2019)
Not applicable3.

Fellow subsidiary companies and other16th Fiscal Period (As of July 31, 2018)
Not applicable
17th Fiscal Period (As of January 31, 2019)
Not applicable4.

Directors, major individual unitholders and other16th Fiscal Period (As of July 31, 2018)
Not applicable
17th Fiscal Period (As of January 31, 2019)
Not applicable

17th Fiscal Period(As of January 31, 2019)703
14,81833,344
48,866(48,163)
703

17th Fiscal Period(As of January 31, 2019)<Notes to equity in net earnings (losses) of affiliated companies>
16th Fiscal Period (As of July 31, 2018)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
17th Fiscal Period (As of January 31, 2019)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.

(Thousands of yen)
16th Fiscal Period(As of July 31, 2018)(%)

16th Fiscal Period(As of July 31, 2018)

Calculation
method for
Fair value
applicable fair
Maturing after 1 year
value

Contract amount

Total

58

Significant differences between the statutory tax rate and the effective tax rate

<Notes to asset retirement obligations>
1. Overview of asset retirement obligations
The Investment Corporation has concluded fixed-term lease contracts with certain landlords, and recognizes asset retirement
obligations concerning the duty of restoration upon the expiry of the lease period with regard to some of these assets.
2.

Calculation of the amount of asset retirement obligations
Asset retirement obligations are calculated based on the remaining period of the fixed-term lease (52 years) as the expected periodof use and 1.2% as the discount rate.

- 41 -

59

3.

Changes in the total amount of asset retirement obligations(Thousands of yen)
16th Fiscal Period(From February 1, 2018
to July 31, 2018)
Balance at beginning of period
Increase due to purchase of property, plant andequipment
Adjustment due to passage of time
Balance at end of period

17th Fiscal Period(From August 1, 2018
to January 31, 2019)95,77596,372

―

―

596

600

96,372

96,97217th Fiscal Period (From August 1, 2018 to January 31, 2019)
1. Information about each product and service
Disclosure is omitted because net sales to external customers of a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues
on the Statement of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of
the amount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales account for 10% or more of operating
revenues on the Statements of Income.

<Notes to investment and rental properties>
The Investment Corporation owns real estate for rental purposes (including land) in the Tokyo metropolitan area and other regional
areas. The book value, changes during the period and fair value regarding the above real estate for rental purposes are as follows.
(Thousands of yen)

<Notes to per unit information>

16th Fiscal Period(From February 1, 2018
to July 31, 2018)

Net assets per unit

17th Fiscal Period(From August 1, 2018
to January 31, 2019)

Book value
Balance at beginning of period

189,323,487

202,842,355

Changes during period

13,518,868

3,129,935

Balance at end of period

202,842,355

205,972,290

Fair value at end of period

236,899,000

244,989,000(Note 1)
(Note 2)

(Note 3)The book value excludes accumulated depreciation from acquisition cost. The book value does not include construction in progress andconstruction in progress in trust.
Among changes in the book value of real estate for rental purposes that occurred during the 16th Fiscal Period, the principal increase consisted of
the acquisition of eight properties including COMFORIA UENOIRIYA and seven other properties during the 16th Fiscal Period totaling¥15,785,113 thousand, while the principal decrease consisted of the disposition of two properties including COMFORIA YOKOHAMAKANNAIand one other property during the 16th Fiscal Period totaling ¥1,347,161 thousand and depreciation of ¥1,200,242 thousand. During the 17th
Fiscal Period, the principal increase consisted of the acquisition of a property (GRANCREER CENTER-MINAMI.; ¥4,313,592 thousand) during
the 17th Fiscal Period, while the principal decrease consisted of the disposition of a property (COMFORIA MINAMIAOYAMA DEUX: ¥255,458
thousand) during the 17th Fiscal Period and depreciation of ¥1,222,802 thousand.
The fair value at end of period is the appraisal value or the survey value determined by outside appraisers.

Income and loss related to real estate for rental purposes, etc. for the 16th Fiscal Period (From February 1, 2018 to July 31, 2018)
and 17th Fiscal Period (From August 1, 2018 to January 31, 2019) are listed in “Notes to the Statements of Income.”<Notes to segment information>(Segment information)
Disclosure is omitted because the property leasing business is the Investment Corporation’s sole business, with no reportablesegment subject to disclosure.
(Related information)
16th Fiscal Period (From February 1, 2018 to July 31, 2018)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues
on the Statements of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of
the amount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales account for 10% or more of operating
revenues on the Statements of Income.

60- 42 -

16th Fiscal Period(From February 1, 2018
to July 31, 2018)¥175,544

17th Fiscal Period(From August 1, 2018
to January 31, 2019)¥175,964¥5,437¥5,405

Profit per unit
(Note 1)

Profit per unit was calculated by dividing profit for the period by the daily weighted average number of investment units issued and outstanding.
Profit per unit after adjusting for diluted units is not included because there were no diluted investment units.

(Note 2)The basis for calculating profit per unit is as follows:

Profit (thousands of yen)Amount not attributable to common
unitholders (thousands of yen)
Profit attributable to common
investment units (thousands of yen)
Average number of investment units
for the period (units)

16th Fiscal Period(From February 1, 2018
to July 31, 2018)
3,191,509

17th Fiscal Period(From August 1, 2018
to January 31, 2019)
3,172,709――

3,191,509

3,172,709

586,908

586,994<Note to significant subsequent events>
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meetings held on January 7, 2019 and January 16, 2019
concerning the issuance of new investment units as described below. Based on the resolution, payment completed on February 1,
2019 for the new investment units issued through public offering and on February 20, 2019 for the new investment units offeredby way of third-party allotment, respectively. As a result, unitholders’ capital increased to ¥114,045,421,172, with the number ofinvestment units issued and outstanding at 640,834 units.
Issuance of New Investment Units through Public Offering (Primary Offering)1) Number of investment units issued:
51,270 units
2) Issue price:¥273,146 per unit
3) Total issue amount:¥14,004,195,420
4) Paid-in amount (issue value):¥264,321 per unit
5) Total paid-in amount (issue value):¥13,551,737,670
6) Payment date:February 1, 2019
Issuance of New Investment Units Offered by Way of Third-Party Allotment
1) Number of investment units offered:
2,570 units
2) Paid-in amount (issue value):¥264,321 per unit
3) Total paid-in amount (issue value):¥679,304,970
4) Payment date:February 20, 20195) Allottee:
Mizuho Securities Co., Ltd.

- 43 -

61

7. Supplementary schedules(Thousands of yen)(i) Supplementary schedule of investment securities
Not applicable

Property name(ii) Information on contract amount and fair value of derivative transactions and forward exchange contracts
Information on derivative transactions and forward exchange contracts entered into by the Investment Corporation as ofJanuary 31, 2019 is as follows.
(Thousands of yen)Classification

Type

Over-the-counter transactions

Receive floating, pay fixedinterest-rate swap transactions

Contract amount (Note 1)
Maturing after 1
year

Total
(Note 1)
(Note 2)

Fair value(Note 2)

43,575,000―

43,575,000

43,575,000―

The contract amount of interest-rate swap transactions is based on the notional principal.
Fair value is evaluated based on the value calculated by the counterparty of the contract using market interest rate, etc. Disclosure of fair value
is omitted for the transactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

(Thousands of yen)
Accumulated depreciation

Asset type

Intangible
assetsProperty, plant and equipment

Buildings
Structures
Machineryand equipment
Tools,
furniture andfixtures
Land
Buildings in
trust
Structures intrust
Machineryand equipmentin trust
Tools,
furniture andfixtures intrust
Land in trust
Constructionin progress in
trust
Total
Leaseholdrights in trust
Other
Total

Balance at
beginning ofcurrent period

IncreaseduringperiodDecreaseduringperiodorBalance at end
Depreciation Net balance ataccumulatedof current
end of current Remarksoramortization
periodperiodamortization
at end ofduringcurrent
periodperiod2,546,503

997―

2,547,500

168,808

28,983

2,378,692

28,301――

28,301

4,897

884

23,404

17,687――

17,6871,462

274

16,225

3,062

―

―

3,062

889

265

2,172

4,674,303――

4,674,303

92,110,382

1,842,594

69,102

93,883,874

10,571,985

1,100,220

83,311,888（Note）

1,183,712

13,108293

1,196,527

315,059

30,116

881,467(Note)

1,557,003――

1,557,003

275,871

27,444

1,281,132(Note)

340,254

112,950

26,048227,303

Bond name
The Investment
Corporation
1st unsecured
bonds

2,691,810

196,560

111,993,547――

111,993,547

―

7,277

―

7,277

―

―

7,277

211,910,916

4,608,195

269,772

216,249,339

11,451,924

1,214,236

204,797,414

1,226,269――

1,226,269

51,393

8,565

1,174,875

32,580

9,026

6,109

35,496

17,828

3,098

17,667

1,258,849

9,026

6,109

1,261,765

69,221

11,663

1,192,543(Thousands of yen)Issuance
date

Balance at
beginningof current
periodIncreaseduringperiodDecreaseduringperiodBalanceat end ofcurrent
periodJuly 30,2014

3,000,000――

3,000,000

0.64000

July 30,
2021

July 18,2017

1,000,000――

1,000,000

0.23000

July 18,2017

2,000,000――

2,000,000

0.52000

June 14,2018

1,000,000――

1,000,000

0.23000

June 14,2018

1,500,000――

1,500,000

0.95000 June 14, 2033 repayment

8,500,000――

8,500,000

Couponrate (%)

Use
of
funds

Security

Lump-sum
repayment(Note 2)

Unsecured

July 15,2022

Lump-sum
repayment(Note 2)

Unsecured

July 16,2027

Lump-sum
repayment(Note 2)

Unsecured(Note 2)

Unsecured(Note 2)

Unsecured

Redemption Redemption
methoddate(Note 1)The Investment
Corporation
2nd unsecured
bonds(Note 1)The Investment
Corporation
3rd unsecured
bonds(Note 1)

December 14, Lump-sum
2023

repayment

Lump-sum(Note 1)

(Note)

Total(Note 1)
(Note 2)
(Note 3)The bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are appropriated to acquire of real estate in trust and repayment of certain existing borrowings.
The total amount of redemption of investment corporation bonds for each year during the five years following the balance sheet date is as shown
below.
(Thousands of yen)
Due within 1 year
or less―

109,498,297

255,458(iv) Supplementary schedule of other specified assets
Not applicable

The Investment
Corporation
5th unsecured
bonds

―

3,816

―

―

(Note 1)―

52,4084,313,592

COMFORIA MINAMIAOYAMA DEUXThe Investment
Corporation
4th unsecured
bonds

4,674,303

291,661

GRANCREER CENTER-MINAMI

Decrease during period(iv) Supplementary schedule of investment corporation bonds

43,575,000(iii) Condensed supplementary schedule of real estate properties

Increase during period

Due after 1 year
to 2 years―

Due after 2 years
to 3 years
3,000,000

Due after 3 years
to 4 years
1,000,000

Due after 4 years
to 5 years
1,000,000

Due after 5 years
3,500,000(Note)(Note) Increases and decreases during the 17th Fiscal Period are due primarily to the acquisition and sale of real estate properties. The details are as
follows.

- 45 -

62- 44 -

63

(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of January 31, 2019 is as follows:
Classification
LenderMizuho Bank, Ltd.

―

―

―

―

3,570,000

MUFG Bank, Ltd.

3,570,000――

3,570,000

Sumitomo Mitsui Banking
Corporation

1,785,000――

1,785,000

2,000,000―

2,000,000

Lump-sum
repayment

Lump-sum
repayment

1,350,000

MUFG Bank, Ltd.

2,000,000―

2,000,000―

Development Bank of Japan Inc.

1,000,000―

1,000,000―

Mizuho Bank, Ltd.

1,000,000―

1,000,000―

Sumitomo Mitsui Trust Bank,
Limited1,000,000―

1,000,000―

Sumitomo Mitsui Banking
Corporation

500,000―

500,000―

MUFG Bank, Ltd.

2,000,000――

2,000,000

Development Bank of Japan Inc.

1,000,000――

1,000,000

Mizuho Bank, Ltd.

1,000,000――

1,000,000

Sumitomo Mitsui Trust Bank,
Limited1,000,000――

1,000,000

Sumitomo Mitsui Banking
Corporation

500,000――

500,000

1,340,000――

1,340,000

Development Bank of Japan Inc.

670,000――

670,000

Mizuho Bank, Ltd.

670,000――

670,000

Sumitomo Mitsui Trust Bank,
Limited

670,000――

670,000

Sumitomo Mitsui Banking
Corporation

350,000――

350,000

1,820,000――

1,820,000

Development Bank of Japan Inc.

910,000――

910,000

Mizuho Bank, Ltd.

910,000――

910,000

Sumitomo Mitsui Trust Bank,
Limited

910,000――

910,000

Sumitomo Mitsui Banking
Corporation

450,000――

450,000

1,200,000――

1,200,000

Development Bank of Japan Inc.

600,000――

600,000

Mizuho Bank, Ltd.

600,000――

600,000

Sumitomo Mitsui Trust Bank,
Limited

600,000――

600,000

Sumitomo Mitsui Banking
Corporation

300,000――

300,000

1,240,000――

1,240,000

Development Bank of Japan Inc.

620,000――

620,000

Mizuho Bank, Ltd.

620,000――

620,000

Sumitomo Mitsui Trust Bank,
Limited

620,000――

620,000

Sumitomo Mitsui Banking
Corporation

310,000――

310,000

1,240,000――

1,240,000

Development Bank of Japan Inc.

620,000――

620,000

Mizuho Bank, Ltd.

620,000――

620,000

Sumitomo Mitsui Trust Bank,
Limited

620,000――

620,000

Sumitomo Mitsui Banking
Corporation

310,000――

310,000

MUFG Bank, Ltd.

720,000――

720,000

Development Bank of Japan Inc.

360,000――

360,000

Mizuho Bank, Ltd.

360,000――

360,000

Sumitomo Mitsui Trust Bank,
Limited360,000――

360,000

Sumitomo Mitsui Banking
Corporation

200,000――

200,000- 46 -March 23,2019

September
0.9048730, 2019―

MUFG Bank, Ltd.

0.56196――

MUFG Bank, Ltd.

Repayment
methodLump-sum
repayment

1,350,000

MUFG Bank, Ltd.

MaturitydateAugust 31,
0.795002018

Development Bank of Japan Inc.

MUFG Bank, Ltd.

Averageinterest rate(%)
(Note 2)

LenderUse offunds

Remarks

3,570,000

3,570,000

MUFG Bank, Ltd.

64

3,570,000

Sumitomo Mitsui Trust Bank,
Limited

MUFG Bank, Ltd.

Long-term
loans
payable(Note 1)

Balance atBalance at
Decrease
Increase
beginning of
end of current
during period during period
periodcurrent period(thousands(thousands(thousands(thousandsof yen)of yen)of yen)of yen)Classification

0.60700

0.882400.60150

0.90100

0.69250January 31, Lump-sum
2019
repayment

January 31, Lump-sum
2021
repayment

June 30,
2020

June 30,2022

Lump-sum
repayment

Lump-sum
repayment

January 31, Lump-sum
2022
repayment(Note 3)

Unsecured
Unguaranteed(Note 3)

Unsecured
Unguaranteed(Note 3)

Unsecured
Unguaranteed(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

MUFG Bank, Ltd.

840,000――

840,000

Development Bank of Japan Inc.

420,000――

420,000

Mizuho Bank, Ltd.

420,000――

420,000

Sumitomo Mitsui Trust Bank,
Limited

420,000――

420,000

Sumitomo Mitsui Banking
Corporation

230,000――

230,000

MUFG Bank, Ltd.

980,000――

980,000

Development Bank of Japan Inc.

490,000――

490,000

Mizuho Bank, Ltd.

490,000――

490,000

Sumitomo Mitsui Trust Bank,
Limited

490,000――

490,000

Sumitomo Mitsui Banking
Corporation

220,000――

220,000

Development Bank of Japan Inc.

1,570,000――

1,570,000

MUFG Bank, Ltd.

1,570,000――

1,570,000

Kiraboshi Bank, Ltd.

1,000,000――

1,000,000

Sumitomo Mitsui Trust Bank,
Limited

785,000――

785,000

Development Bank of Japan Inc.

2,000,000――

2,000,000

MUFG Bank, Ltd.

2,000,000――

2,000,000

Sumitomo Mitsui Trust Bank,
Limited1,000,000――

1,000,000

MUFG Bank, Ltd.

1,160,000――

1,160,000

Development Bank of Japan Inc.

580,000――

580,000

Mizuho Bank, Ltd.

580,000――

580,000

Sumitomo Mitsui Trust Bank,
Limited

580,000――

580,000

Sumitomo Mitsui Banking
Corporation
Long-term MUFG Bank, Ltd.
loans
Development Bank of Japan Inc.
payable(Note 1) Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation

1.04200

0.58430January 31, Lump-sum
2023
repayment

January 31, Lump-sum
2025
repayment

March 31,2023

Lump-sum
repayment(Note 3)(Note 3)(Note 3)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

290,000――

290,000

1,800,000――

1,800,000

900,000――

900,000

900,000――

900,000

900,000――

900,000

450,000――

450,000

Mizuho Trust & Banking Co., Ltd.

2,000,000――

2,000,000

The Norinchukin Bank

1,500,000――

1,500,000

The Bank of Fukuoka, Ltd.

1,000,000――

1,000,000

The 77 Bank, Ltd.

500,000――

500,000

The Daishi Bank, Ltd.

500,000――

500,000

1,160,000――

1,160,000

Development Bank of Japan Inc.

580,000――

580,000

Mizuho Bank, Ltd.

580,000――

580,000

Sumitomo Mitsui Trust Bank,
Limited

580,000――

580,000

MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
0.79875

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
current period
period(thousands(thousands(thousands(thousandsof yen)of yen)of yen)of yen)290,000――

290,000

1,820,000――

1,820,000

Development Bank of Japan Inc.

910,000――

910,000

Mizuho Bank, Ltd.

910,000――

910,000

Sumitomo Mitsui Trust Bank,
Limited

910,000――

910,000

Sumitomo Mitsui Banking
Corporation

450,000――

450,000

MUFG Bank, Ltd.

MUFG Bank, Ltd.

1,140,000――

1,140,000

Development Bank of Japan Inc.

570,000――

570,000

Mizuho Bank, Ltd.

570,000――

570,000

Sumitomo Mitsui Trust Bank,
Limited

570,000――

570,000

Sumitomo Mitsui Banking
Corporation

300,000――

300,000

Averageinterest rate(%)
(Note 2)

Maturity
date

Repayment
methodUse offunds

Remarks

0.62460

August 31,
2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.67745

February29, 2024

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.27125

March 31,2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.61950

March 31,2025

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.46655

July 31,2024

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.65518

July 31,2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.46691

January 31, Lump-sum
2022
repayment(Note 3)

Unsecured
Unguaranteed

0.62938January 31, Lump-sum
2024
repayment(Note 3)

Unsecured
Unguaranteed

0.79571

January 30, Lump-sum
2026
repayment(Note 3)

Unsecured
Unguaranteed

0.49054

September
30, 2022(Note 3)

Unsecured
Unguaranteed

Lump-sum
repayment

Unsecured
Unguaranteed- 47 -

65

Classification

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
current period
period(thousands(thousands(thousands(thousandsof yen)of yen)of yen)of yen)Lender
MUFG Bank, Ltd.

1,140,000――

1,140,000

Development Bank of Japan Inc.

570,000――

570,000

Mizuho Bank, Ltd.

570,000――

570,000

Sumitomo Mitsui Trust Bank,
Limited

570,000――

570,000

Sumitomo Mitsui Banking
Corporation

300,000――

300,000

Sumitomo Mitsui Trust Bank,
Limited

100,000――

100,000

MUFG Bank, Ltd.

1,040,000――

1,040,000

Development Bank of Japan Inc.

520,000――

520,000

Mizuho Bank, Ltd.

520,000――

520,000

Sumitomo Mitsui Trust Bank,
Limited

520,000――

520,000

Sumitomo Mitsui Banking
Corporation

260,000――

260,000

Shinkin Central Bank

1,300,000――

1,300,000

The Norinchukin Bank

1,300,000――

1,300,000

The Bank of Fukuoka, Ltd.

1,300,000――

1,300,000

Mizuho Trust & Banking Co., Ltd.

1,000,000――

1,000,000

MUFG Bank, Ltd.

2,700,000――

2,700,000

Mizuho Bank, Ltd.

1,350,000――

1,350,000

Sumitomo Mitsui Banking
Corporation

600,000――

600,000

Nippon Life Insurance Company―

500,000―

500,000

Taiyo Life Insurance Company―

500,000―

500,000

Long-term Resona Bank, Limited
loans
Mizuho Bank, Ltd.
payable(Note 1) Sumitomo Mitsui Trust Bank,
Limited―1,000,000―

1,000,000―

700,000―

700,000―

700,000―

700,000

MUFG Bank, Ltd.

―

350,000―

350,000

Sumitomo Mitsui Banking
Corporation―

350,000―

350,000

Mizuho Bank, Ltd.

―

550,000―

550,000

Sumitomo Mitsui Trust Bank,
Limited

―550.000―

550,000

Development Bank of Japan Inc.

―

550,000―

550,000

MUFG Bank, Ltd.

―

275,000―

275,000

Sumitomo Mitsui Banking
Corporation―

275,000―

275,000

MUFG Bank, Ltd.

―

550,000―

550,000

Mizuho Bank, Ltd.

―

550,000―

550,000

Sumitomo Mitsui Trust Bank,
Limited

―550,000―

550,000

Development Bank of Japan Inc.

―

550,000―

550,000

Sumitomo Mitsui Banking
Corporation―

300,000―

300,000

MUFG Bank, Ltd.

―

670,000―

670,000

Mizuho Bank, Ltd.

―

670,000―

670,000

Sumitomo Mitsui Trust Bank,
Limited

―670,000―

670,000

Sumitomo Mitsui Banking
Corporation―

320,000―

320,000

Development Bank of Japan Inc.

―

670,000―

670,000

103,230,000

11,800,000

7,500,000

107,530,000

103,230,000

11,800,000

7,500,000

107,530,000

Subtotal
Total(Note 1)
(Note 2)
(Note 3)(Note 4)

Averageinterest rate(%)
(Note 2)

Maturity
date

Repayment
methodUse offunds

Remarks

0.77571

September
30, 2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.26196

February28, 2019

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.65428January 31, Lump-sum
2025
repayment(Note 3)

Unsecured
Unguaranteed

0.45804

March 31,2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.62188

March 31,2025

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.55126

January 31, Lump-sum
2024
repayment(Note 3)

Unsecured
Unguaranteed

0.73497

August 31,
2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.26258

October 31, Lump-sum
2019
repayment(Note 3)

Unsecured
Unguaranteed

0.85667

March 31,2027

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.43105

July 31,2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.39950January 31, Lump-sum
2025
repayment(Note 3)

Unsecured
Unguaranteed

0.49994

January 31, Lump-sum
2025
repayment(Note 3)

Unsecured
Unguaranteed

―

―

―

―

―

Long-term loans payable include the current portion of long-term loans payable.
The average interest rate is the interest rate for each loan contract rounded to the fifth decimal place. As for the borrowings hedged by interestrate swap transactions in order to avoid interest rate fluctuation risk, the interest rates reflect the effect of interest-rate swap transactions.
The use of funds is mainly for the acquisition of real estate in trust and repayment of existing borrowings, etc.
The total amount of repayment of long-term loans payable for each year during the five years following the balance sheet date is as shown below.
(Thousands of yen)
Due within 1
year or less
16,045,00066

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

9,200,000

13,725,000

11,560,000

15,920,000

41,080,000- 48 -

67