Semi-Annual Report15

for theth
Fiscal Period
From August 1, 2017 to January 31, 2018

For a Superior Level of Living Comfort

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

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 15th Fiscal Period (from August 1,
2017 to January 31, 2018). 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 15th Fiscal
Period.
During the 15th Fiscal Period, the Investment Corporation newly acquired COMFORIASHIBAURA, located in the Tokyo 23 wards with borrowings. Consequently, our asset sizeas of the end of the 15th Fiscal Period totaled 111 properties, with a total acquisition
price of ¥ 1 8 8. 5 billion. The average occupancy rate remained high at 9 6. 7% for the
15th Fiscal Period. The Investment Corporation achieved ¥ 7, 357 million in operating
revenue, ¥ 3, 168 million in operating profit, and ¥ 2, 674 million in profit, all of which
exceeded our forecasts, resulting in a distribution per unit of ¥ 4, 788.

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 toour “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
Supervisory Director (left)

Koji Yamamoto

Supervisory Director (right)

Furthermore, after the end of the 15th Fiscal Period, we additionally acquired three properties within the Tokyo 23 wards
and one property in other major cities in February 2018 through a public offering for the fifth consecutive year since listing, as well as borrowings. Furthermore, we acquired three properties within the Tokyo 23 wards and sold one property
in Tokyo metropolitan area in March 2018 with borrowings. As a result, our portfolio as of March 31, 2018 stood at 117
properties, with a total acquisition price of ¥ 201. 7 billion. We intend to continue to make selective investments in highquality properties mainly in 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 knowhow 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
based on medium- and long-term perspectives to maximize unitholders’ value. Your continued support and cooperation are highly appreciated.

Financial Highlights
Operating revenue¥ 7,357 million

Number of properties

Operating profit¥ 3,168 million

Acquisition priceProfit¥ 2,674 million

Appraisal value¥ 4,788

Occupancy rate at the
15th Fiscal Period-end

Distribution per unit
Total loan to value (LTV)

50.8 %

Average occupancy rate

111 properties¥ 188.5 billion¥ 220.7 billion
96.7 %
96.7 %

Contents
Ⅰ. Overview of the Investment Corporation

Ⅱ. Asset Management Report

1
Greetings/Financial Highlights
Selective Investments through Diversified Property Acquisition Channels 2
4External Growth Strategy
6Internal Growth Strategy
8
Financial Strategy
10
Portfolio Map
12
Portfolio List
18
Basic Policies
	Overview of the Investment Corporation andAsset Management Company
19

Ⅲ. 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

21
48
50
51
52
53
54
63
69

1

Selective Investments through Diversified Property Acquisition Channels
During the 15th Fiscal Period, the Investment Corporation acquired one property in August 2017. Furthermore, the Investment Corporation acquired four properties with funds procured through a public offering conducted in February
2018 and borrowings, which was followed by acquisition of three properties with borrowings and sale of one property
in March 2018.
The Investment Corporation will continue to promote external growth by continuing to invest selectively in high-quality
properties mainly in the 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 March 31, 2018)
Acquired
COMFORIA KOMABA andone other property(Billions of yen)

200

Historical Asset Size

Over around years since listing,achieved approximately

146.5

100

0

Tokyo
23 wards
92.9％

Tokyo
23 wards
92.5％

74.5

187.4

188.5

Tokyo
23 wards
90.5％

Tokyo
23 wards

146.7

122.8

116.2

Tokyo
23 wards
94.0％

Tokyo
23 wards
93.6％

Tokyo
23 wards
94.3％

Tokyo
23 wards
92.8％

Tokyo
23 wards

90.8％

90.5％

71.2

71.2

Tokyo
23 wards
96.3％

Tokyo
23 wards
96.3％

Tokyo
23 wards
93.3％

Listed(Feb. 6, 2013)“End of

6th
Fiscal Period”
Ended Jul. 2013“End of

7th
Fiscal Period”
Ended Jan. 2014“End of

8th
Fiscal Period”
Ended Jul. 2014

9th
Fiscal Period”
Ended Jan. 2015

10th
Fiscal Period”
Ended Jul. 2015

11th
Fiscal Period”
Ended Jan. 2016

12th
Fiscal Period”
Ended Jul. 2016

13th
Fiscal Period”
Ended Jan. 2017

14th
Fiscal Period”
Ended Jul. 2017

15th
Fiscal Period”
Ended Jan. 2018

1

“End of“End ofAim for an asset
size of ¥ 300 billion
while maintaining
a portfolio withproperties mainlyin the Tokyo 23
wards

168.0

164.4

2. 8-fold growth

Future Strategy

201.7

Acquired
COMFORIA KUDAN and
24 other properties

5150

Acquired
COMFORIA
KANDAJINBOCHO and11 other properties

Acquired
COMFORIA SHINJUKUEASTSIDE TOWER andthree other properties

Acquired
COMFORIA AZABUEAST andone other property,
sold two properties

Acquired
COMFORIA
ICHIGAYAYAKUOJI and
two other properties

Acquired
COMFORIA
AKIHABARA EAST andeight other properties

Acquired
COMFORIA
SETAGAYAKAMIUMA
and six other properties,
Acquiredsold one property
COMFORIA SHIBAURA“End of“End of“End of“End of“End ofMar. 2018

Future strategy

Distribution
per unit (DPU)̶¥ 4,051¥ 4,203¥ 4,268¥ 4,296¥ 4,403¥ 4,339¥ 4,487¥ 4,549¥ 4,681¥ 4,788

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％

Consistently stable
occupancy rate

Note: 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 thenearest whole number.

■■ Diversified Property Acquisition Channels Centering on Sponsor Groups■■ Property Development by Tokyu Land Corporation (As of March 15, 2018)

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
through the Asset Management Company’s original information routes.

There are 15 sponsor pipeline projects ( 1, 801 units) in Tokyo 23 Wards and the Kansai area.

16th Fiscal Period

15th Fiscal Period
Acquisition throughoriginal route of theAsset Management
Company

1 property¥ 1, 065 million(up to March 31, 2018)+

Acquisition fromsponsor group

4 properties¥ 7, 827 million

Toshima-ku
Nakano-ku

Arakawa-ku

Ikebukuro Bunkyo-ku Ueno

Acquisition fromsponsor group

68.8％

Tokyo

Shibuya
Setagaya-ku

Minato-ku

HigashiYodogawa-ku

Kyoto

Kita-kuNishi-kuChuo-ku

Koto-kuKansai area

ShinagawaShinagawa-ku
Meguro-ku

Ota-ku28.2％

11 properties
1, 257 units

Shin-osaka

Chiyoda-ku

Chuo-ku¥ 6, 310 million

Taito-ku

Shinjuku-ku

Shibuya-ku

3 properties

Sumida-ku

Suita-shi

Suginami-ku

Shinjuku

Othersponsors

2

40.5％

31.2％

Kita-ku

Itabashi-ku

Sponsor
Other

Acquisition throughoriginal route of theAsset Management
Company

Tokyo 23 ward

Ratio of Acquired Assets by Seller(As of March 31, 2018)

4 properties
544 units

Shin-osaka
Shin-kobe

Property development by Tokyu Land Corporation
Rental residence
Operational rental residence（No specific plan has been made by the Investment Corporation to acquire any of the above properties.）3

External Growth Strategy
During the 15th Fiscal Period, the Investment Corporation acquired COMFORIA SHIBAURA in August 2017. In the 16th
Fiscal Period, the Investment Corporation acquired four properties at the time of the public offering, and also acquired
three properties and sold one property in March 2018, achieving the asset size of ¥ 200 billion.

■■ Properties Acquired in 16th Fiscal Period
118 COMFORIA AKABANEIWABUCHI

Sub-central Tokyo

119 COMFORIA RYOGOKU TROIS

26 - 11 Iwabuchimachi,
Kita-ku, Tokyo
Nearest station/ 4-minute walk from AkabaneDistanceiwabuchi Station on the Tokyo(on foot)
Metro Namboku Line
Ownership
Ownership(sectional ownership interest 100%)
Address¥187. 4 billion¥

188. 5 billion

End of 14th FP¥

201. 7 billion

End of 15th FP

March 31, 2018■■ Property Acquired in 15th Fiscal Period
113 COMFORIA SHIBAURA
StationCentral Tokyo

Mita

MinatoMaruetsu Petit
Shibaura Yon Shiba 4-chome Store
Post Officeaybw
i Su Linen Toe akusa
atio
As
a St

Mit

ine

te L

ano

Yam

Tokyo Port Bowl
Minato-ku
Sports Center

i
ach
am n
JR T Statio

COMFORIA SHIBAURA
Kyu-K

e

113

treet

ori S

Peacock Store
Shibaura Island Store

an-d

t

Stree

Seven Eleven

Kaig

-dori

Tokyo Monorail

Shibaura Instituteof Technology

aigan

a Lin

osuk

Yok

Futo Park

114 COMFORIA UENOIRIYA
Sponsordeveloped

Address

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

Sponsordeveloped

Completion dateNov. 2008

Rentable units

39 units

Acquisition dateAug. 1, 2017

Acquisition price¥ 1, 065 million

Appraisal NOI yield

4. 5% (as of Jun. 30, 2017)

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

End of 15th FP

Sub-central Tokyo

OwnershipCompletion date Jan. 2016

Completion date Mar. 2008

Rentable units

Rentable units

88 units

Tokyo Metropolitan area

36 units

Other major cities

Acquisition date Feb. 2, 2018

Acquisition date Feb. 2, 2018

Acquisition price ¥ 2, 173 million

Acquisition price ¥ 1, 313 million

Appraisal
NOI yield

Appraisal
NOI yield

4. 6% (as of Oct. 31, 2017)

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

Ownership

OwnershipCompletion date Feb. 2017
Rentable units

68 units

Acquisition date Feb. 2, 2018
Acquisition price ¥ 2, 622 million
Appraisal
NOI yield

4. 5% (as of Oct. 31, 2017)

117 COMFORIA KITAHAMA
Sponsordeveloped

4. 5% (as of Oct. 31, 2017)

Other major cities

2 - 1- 14 Imabashi, Chuo-ku,
Osaka-shi, Osaka
6-minute walk from Yodoyabashi
Station on the Osaka Municipal
Nearest station/ Subway Midosuji Line and 1 other
Distanceline(on foot)
2-minute walk from Kitahama Station on the Osaka Municipal Subway
Sakaisuji Line and 1 other line
Ownership
OwnershipCompletion date Feb. 2016
Rentable units
84 units
Acquisition date Feb. 2, 2018
Acquisition price ¥ 1, 719 million
Appraisal
4. 8% (as of Oct. 31, 2017)
NOI yield

42

COMFORIA
YOKOHAMAKANNAITokyo metropolitan area

Address

2- 8- 15 Okinacho 2-chome, Naka-ku,
Yokohama-shi, Kanagawa

Sale price¥ 1, 200 million

Book value¥ 929 million (as of Jan. 31, 2018)

Completion date Jul. 2009
Rentable units

60 units■■ Investment Ratio by Area

Central Tokyo

Nearest station/ 4-minute walk from KomazawaDistancedaigaku Station on the Tokyu(on foot)
Den-en-toshi Line

4

Address

Sub-central Tokyo

OwnershipCompletion date Mar. 2018
Rentable units
65 units
Acquisition date Mar. 30, 2018
Acquisition price ¥ 2, 150 million
Appraisal
4. 4% (as of Feb. 28, 2018)
NOI yield

Ownership

Ownership

Central Tokyo

5- 8- 20 Shinjuku,
Shinjuku-ku, Tokyo
5-minute walk from ShinjukuNearest station/ sanchome Station on the
Distance
Tokyo Metro Marunouchi Line(on foot)
and Fukutoshin Line, and Toei
Shinjuku Line
Ownership

4. 5% (as of Feb. 28, 2018)

Property soldAddress

Ownership

Address

Appraisal
NOI yield

4. 7% (as of Feb. 28, 2018)

120 COMFORIA SHINJUKUNearest station/ 2-minute walk from Ikejiri-ohashi
Distance
Station on the Tokyu Den-en-toshi(on foot)Line

Sub-central Tokyo

Acquisition price ¥ 1, 660 million

Appraisal
NOI yield

Ownership

115 COMFORIA IKEJIRI

57 units

Acquisition price ¥ 2, 500 million

Ownership

Warehousing

84 units

Acquisition date Mar. 30, 2018

Property acquired

Nearest station/
6-minute walk from Iriya Station
Distance
on the Tokyo Metro Hibiya Line(on foot)

116 COMFORIA SETAGAYAKAMIUMA

Rentable units

Nearest station/
Distance (on foot)Warehousing properties
by sponsors

Ownership

Acquisition date Mar. 30, 2018■■ Asset Replacement

Warehousing

Ownership

Rentable units

8-minute walk from Shibaura-futo Station on the
Yurikamome Line
10-minute walk from Tamachi Station on the JR Yamanote
Line and Keihin Tohoku Line

Sponsor-developed
properties

Nearest station/
2-minute walk from Ryogoku
Distance
Station on the Toei Oedo Line(on foot)
Completion date Jul. 2013

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

Sponsordeveloped

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

Completion date Mar. 2003

Address■■ Properties Acquired in 16th Fiscal Period (Through public offering)

Address

Sub-central Tokyo(Ratio of Tokyo 23 wards)

44. 9%
45. 6%
2. 5%
7. 0%
90. 5%

After public offering(February 2018)

After acquisition of
new properties(March 2018)43. 1%
46. 9%
2. 4%
7. 6%
90. 0%

43. 0%
47. 7%
1. 8%
7. 4%
90. 8%

We will continue to acquire high-quality properties mainly in the Tokyo 2 3 wards
while steadily developing information routes, even after achieving the asset size of¥ 200 billion.

AddressThe Investment Corporation has made selective
acquisitions of high-quality properties mainly in
the Tokyo 2 3 wards while utilizing the sponsor
group’s pipeline as well as drawing on the original
information routes. During the 15th Fiscal Period,
we acquired one property in the Tokyo 2 3 wards,
and during the 16th Fiscal Period, four properties in
the Tokyo 2 3 wards in addition to three properties
developed by the sponsor which were acquired

through public offering. As a result, we were able tosurpass the asset size target of ¥ 200 billion we had
aimed for. Although competition over the acquisition of high-quality properties in the Tokyo 23 wards
has become more severe in the recent real estatemarket, we will invest in high-quality properties byfully utilizing network of the sponsor as well as of its
own and continuing to steadily develop informationroutes going forward.

TLC REIT Management, Inc.
Manager,
Asset Investment Department

Shin Kurihara
Hobby: Soccer

5Internal Growth Strategy
With our portfolio strategy of investing in properties mainly in the Tokyo 23 wards, steady rent increase has been realized recently while maintaining high occupancy rates.

■■  Continuous Inflow of Younger Generation and Limited Supply of Rental Residences in theTokyo 23 Wards
While net migration of younger generation (ages 15 to under 39) to the Tokyo 23 wards is far larger than that of other
cities, the number of construction starts of rental residences remains at around 50% of the peak time.
Net-Migration by Age 15 to 39
2012(Thousand people)

100

2013

Rental Residence Starts in Tokyo 23 Wards
2014

2015

2016

2017

■■ Rates of Rent Fluctuation upon Tenant Turnover (Total Portfolio)
The rate of rent fluctuation upon tenant turnover for the 15th Fiscal Period marked a record-high of + 3. 7%.
Rates of Rent Fluctuation upon Tenant Turnover (Total Portfolio)

(%)
4.0

+3.7%

+3.4%

2.0

+1.0%

+1.5%

(Units)

50,00080

40,00060

30,00040

20,0000Remains at around 50%of the peak year

-2.0

-0.4%

-1.3%

8th FP

9th FP

-0.5%

-0.7%

10th FP

11th FP

12th FP

13th FP

14th FP

15th 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)
10,00020(Source) S tatistics Bureau, Ministry of Internal Affairs and Communications,"Report on Internal Migration in Japan"

2017

2016

2014

2012

2010

2008

2006

Sapporo-shi

2004

Fukuoka-shi

2002

Osaka-shi

1998

Tokyo 23 wards Nagoya-shi

2000

0

0

(Source) Ministry of Land, Infrastructure, Transportation and Tourism, Policy Bureau“Construction Statistics: Housing Starts”■■ Rent Rates and Occupancy Rates of Flagship Property “COMFORIA SHINJUKU EASTSIDE TOWER”
The occupancy rate remains at a high level and rent rate continues to rise.

■■ Occupancy Rate

Rent Rates and Occupancy Rates

The occupancy rate constantly remained at an over- 96% level during the 15th Fiscal Period, resulting in marking thehighest period-average occupancy rate of 96. 7% since listing.

16,500Occupancy rate (right axis) (%)
100

16,00090

15,500

80

（%）

100
95

Total portfolio(Yen/tsubo)

Total portfolio (year-on-year)

96.5% 96.9% 97.0% 96.0%
96.4% 97.1% 96.9% 96.7% 96.4% 96.7%
95.5% 95.7% 96.1%
COMFORIA SHINJUKUEASTSIDE TOWER

90
Central Tokyo100

Sub-central Tokyo

Rent rate (yen/tsubo) (left axis)

Tokyo metropolitan area

Other major cities

15,000Dec. Jan. Feb.
2016 2017

Mar.

95
90

13th FPJan.
2017

14th FP
Feb.

Mar.

Apr.

May

Rent rate (per tsubo)

15th FP
Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2018

Occupancy rate

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2018

February 2016
(Upon Acquisition)

End of 15th FP(January 2018)¥ 15, 780

¥ 16, 267

94. 6%

70

95. 4%■■ Realization of Upward Rent Revision upon Tenant Turnover/Lease Renewal
The ratio of cases with upward rent revision in the 15th Fiscal Period has marked a record-high for both tenant turnoverand lease renewal.
Tenant Turnover
(%)
100

75
50
25

Lease Renewal
Increase

Increase
27.0%
No change
13.8%
Decrease
59.3%

0

62.9%

No change

9.7%
14.6%

74.0%

9.8%
16.1%

6th FP
13th FP
14th FP
15th FP(Ended Jul. 2013) (Ended Jan. 2017) (Ended Jul. 2017) (Ended Jan. 2018)(Listing)

6

(%)
100

75

75.7%

11.0%
26.2%

Decrease50
250Increase

Increase
0.0%

6.4%

No change
98.5%

93.4%

Decrease
1.5%

0.2%

No change

Decrease

14.7%

18.2%

85.3%

81.8%

0.0%

0.0%

6th FP
13th FP
14th FP
15th FP(Ended Jul. 2013) (Ended Jan. 2017) (Ended Jul. 2017) (Ended Jan. 2018)(Listing)

We will continue to seek improved profitability amid favorable leasing market
conditions by making “selective investments in high-quality properties mainlyin the Tokyo 23 wards.”
Under the concept of “selective investments in highquality properties mainly in the Tokyo 23 wards,” theInvestment Corporation has built a portfolio insisting on properties’ proximity to stations. The leasing
market conditions in the Tokyo 2 3 wards, whichhave been strong for some time due to continuous population inflow of younger generation andlimited supply of rental residences, have become extremely favorable recently affected by the economic
expansion and other factors. Backed by such circum-

stances, we have been able to implement upward
rent revision upon tenant turnover for roughly three
sections out of four. Properties in central Tokyo areparticularly doing well as shown in the case of ourflagship property “COMFORIA SHINJUKU EASTSIDETOWER” which has achieved around 3. 1% increase
in rent rate in two years after acquisition. Going forward, we would like to continue to seek improved
profitability amid such favorable leasing market conditions.

TLC REIT Management, Inc.
Assistant Manager,
Asset Management Department,
Comforia Management Division

Yuki Handa
Hobby: Golf

7

Financial Strategy
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 appropriately control its balance sheet by maintaining
an LTV level to secure fund capacity.

■■ Interest-Bearing Debt
End of 13th Fiscal Period(ended Jan. 31, 2017)

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

End of 14th Fiscal Period(ended Jul. 31, 2017)51. 6%
90. 7%
84. 2%
4. 3 years
0. 68%End of 15th Fiscal Period(ended Jan. 31, 2018)

50. 8%
85. 2%
87. 0%
4. 2 years
0. 64%

50. 5%
87. 3%
87. 9%
4. 3 years
0. 68%

Note: Interest-bearing debt balance/total assets■■ Diversification of Repayment Dates
The expected repayments of debt and investment corporation bonds as of Jan. 31, 2018 are as follows:
Existing loans(Millions of yen)
15,00010,00012,4958,030 7,500
3,700

5,000

Commitment line

7,925 8,800 6,000
1,000 6,560
5,500 3,000
4,925

1,350
0

Investment corporation bonds

5,000

5,520 5,860
3,410

2,000

5,000 5,000 4,950

3,150

2,000

15th 16th 17th 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
FP
FP
FP

■■ Loan Balances
The Investment Corporation’s loan balances as of Jan. 31, 2018 are as follows:

0.8％
1.0％
1.8％
2.0％
2.3％
8.1%

0.5％
0.5％

Loan balance(millions of yen)

Lender17, 970
16, 405
15, 970
15, 970
15, 720
7, 9652, 2502, 0001, 7501, 000750
500
500
98, 750

Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.

18.2％

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Norinchukin Bank

15.9%

16.6％

Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
The Tokyo Tomin Bank, Limited

16.2％

16.2％

Shinkin Central Bank
The 77 Bank, Ltd.
The Daishi Bank, Ltd.
Total■■ Credit Rating (As of January 31, 2018)8

Rating agency

Rating category

RatingOutlookJapan Credit Rating Agency, Ltd.

Long-term issuer rating

AA-

StablePortfolio Map (As of March 31, 2018)
The Investment Corporation manages assets with superb accessibility locatedmainly in the Tokyo 23 wards.
Central Tokyo

120 COMFORIA

118 COMFORIA
AKABANEIWABUCHISHINJUKU

Saitama
114 COMFORIA
UENOIRIYA

44 properties

1 COMFORIA NIHONBASHI NINGYOCHO 26 COMFORIA HARAJYUKU

61 COMFORIA SHIBAURA CANAL

85 COMFORIA TAMACHI

2 COMFORIA WASEDA

30 COMFORIA MITA NORTH

69 COMFORIA KITASANDO

86 COMFORIA AZABUJUBAN

70 COMFORIA YOYOGIUEHARA

92 COMFORIA SHINJUKUGYOENⅠ

3 COMFORIA SHIMOOCHIAI

31 COMFORIA SHIBAURA BOWHOUSE

4 COMFORIA HIGASHINAKANO

48 COMFORIA SHIROKANETAKANAWA 71 COMFORIA SASAZUKA

93 COMFORIA KAGURAZAKA DEUX

14 COMFORIA GINZA EAST

49 COMFORIA NIHONBASHI NINGYOCHO EAST 72 COMFORIA SHINJUKUGYOENⅡ

96 COMFORIA AZABU EAST

15 COMFORIA AZABUDAI

50 COMFORIA ATAGO

73 COMFORIA ICHIGAYAYANAGICHO 98 COMFORIA SHINJUKU EASTSIDE TOWER

16 COMFORIA SHIBAKOEN

56 COMFORIA KUDAN

74 COMFORIA KAGURAZAKA

17 COMFORIA NISHIAZABU

57 COMFORIA NIHONBASHI NINGYOCHO NORTH 80 COMFORIA NIBANCHO

104 COMFORIA AKIHABARA EAST

18 COMFORIA MINAMIAOYAMA

58 COMFORIA SHINKAWA

81 COMFORIA NISHISHINJUKU

105 COMFORIA MITA TROIS

19 COMFORIA MINAMIAOYAMA DEUX 59 COMFORIA AKASAKA

83 COMFORIA KANDAJINBOCHO

113 COMFORIA SHIBAURA

20 COMFORIA NISHIWASEDA

84 COMFORIA NIHONBASHI

120 COMFORIA SHINJUKU

60 COMFORIA MITA EAST

58 properties

5 COMFORIA BUNKYOKASUGA

33 COMFORIA OSHIAGE

55 COMFORIA SUMIDA-TACHIBANA 91 COMFORIA YOGA

6 COMFORIA ASAKUSAMATSUGAYA

34 COMFORIA HONJOAZUMABASHI

62 COMFORIA UENOHIROKOJI

35 COMFORIA KIYOSUMISHIRAKAWA TROIS 63 COMFORIA KASUGATOMISAKA

97 COMFORIA SHINAGAWA EAST

36 COMFORIA MONZENNAKACHO

99 COMFORIA OJIMA

9 COMFORIA SHIMOKITAZAWA

37 COMFORIA HIMONYA

65 COMFORIA MORISHITA

100 COMFORIA OMORI TROIS

10 COMFORIA NISHIKAMATA

38 COMFORIA MISYUKU

66 COMFORIA KIBAKOEN

106 COMFORIA BUNKYOHAKUSAN

11 COMFORIA OYAMA

39 COMFORIA GAKUGEIDAIGAKU

67 COMFORIA MEGURO CHOJAMARU 107 COMFORIA KAMATA

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 40 COMFORIA HIGASHINAKANO DEUX 68 COMFORIA NISHIMAGOME

108 COLLEGE COURT HACHIMANYAMA

13 COMFORIA KOMAZAWA

41 COMFORIA HIGASHIIKEBUKURO WEST 75 COMFORIA HIGASHIIKEBUKURO EAST 114 COMFORIA UENOIRIYA

21 COMFORIA KOISHIKAWA

43 COMFORIA RYOGOKU DEUX

76 COMFORIA HIGASHIIKEBUKURO

115 COMFORIA IKEJIRI

22 COMFORIA SENGOKU

44 COMFORIA OMORI DEUX

82 COMFORIA KOMABA

116 COMFORIA SETAGAYAKAMIUMA

23 COMFORIA DAIKANYAMAAOBADAI 45 COMFORIA MACHIYA

87 COMFORIA KINSHICHO

118 COMFORIA AKABANEIWABUCHI

27 COMFORIA IKEBUKURO

51 COMFORIA ASAKUSABASHI

88 COMFORIA MINAMISUNAMACHI

119 COMFORIA RYOGOKU TROIS

29 COMFORIA RYOGOKUISHIWARA

52 COMFORIA RYOGOKU SOUTH

89 COMFORIA HIGASHISHINAGAWA

32 COMFORIA ASAKUSABASHI DEUX 53 COMFORIA TOYOSU

90 COMFORIA MEGUROYAKUMO

Itabashi-ku
Nerima-ku

Adachi-ku

94

Toshima27-ku

Ikebukuro

Nakano-ku

Kichijoji

Tokyo

108

Setagaya-ku

28

91

3

Acquired in the
16th Fiscal Period

Kita-ku11

94 COMFORIA ITABASHINAKAJUKU

8 COMFORIA NAKANO

Acquired in the
16th Fiscal Period

AkabaneSuginami-ku

7 COMFORIA NISHIOI

64 COMFORIA HONKOMAGOME

118

Acquired in the
16th Fiscal Period

103 COMFORIA ICHIGAYAYAKUOJI

Sub-central Tokyo

Arakawa-ku

45
64
41
75 22
106
76

Bunkyo-ku

Katsushika-ku

114

5 properties Other major cities

Taito

Sumida-ku

55
21 5 Ueno
6 -ku
8
33
4
62
34
40
63
74
2
29
98
32
87
81 120104 51 119
73 93
83
84
56
103
52
Shinjuku 72
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
19
Koto-ku70
15 50
Chuo-ku
Shibuya
17 86 96 16
53
82
23
30 60
48 105 61
115
38
113
MinatoMeguro67 -ku 85 31-ku
13 116 39
ShinagawaShinjuku
20 -ku37

90
Shinagawa
-ku

97
89

Nishifunabashi
Edogawa-ku

112

46

119 COMFORIA
RYOGOKU TROIS

113 COMFORIASHIBAURA

7

68

95 101

Ota-kuAcquired in the
16th Fiscal Period

44
100
115 COMFORIA IKEJIRI

10 107Tokyo
metropolitan area

Chiba

47

10 properties

28 COMFORIA KOMAE

54 COMFORIA SHIN-OSAKA

102 COMFORIA OGIMACHI

46 COMFORIA ICHIKAWAMYODEN

78 COMFORIA SHINSAKAE

109 COMFORIA SHINSAIBASHI EAST

47 COMFORIA YATSUKA

79 COMFORIA KITAHORIE

110 COMFORIA KYOMACHIBORI

77 COMFORIA SHINKOYASU

95 COMFORIA KITASANJO

111 COMFORIA AWAZA

112 COMFORIA GYOTOKU

101 COMFORIA SAPPORO SHOKUBUTSUEN 117 COMFORIA KITAHAMA

Acquired in the
15th Fiscal Period
COMFORIA

116 SETAGAYAKAMIUMA

Acquired in the
16th Fiscal Period
COMFORIA

117 KITAHAMA

Total

117 properties

Central Tokyo

Tokyo metropolitan area

Sub-central Tokyo

Other major cities

77

Acquired in the
16th Fiscal Period

Yokohama

78

Kanagawa
54 79 102 109 110 111 117

10

Acquired in the
16th Fiscal Period

11Portfolio List (As of March 31, 2018)■ Central Tokyo ■ Sub-central Tokyo ■ Tokyo metropolitan area ■ Other major cities

Properties acquired in or before 15th fiscal period
No.

Property nameLocation

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

COMFORIA NIHONBASHI NINGYOCHOCOMFORIA WASEDACOMFORIA SHIMOOCHIAICOMFORIA HIGASHINAKANOCOMFORIA BUNKYOKASUGACOMFORIA ASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATACOMFORIA OYAMACOMFORIA KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWACOMFORIA GINZA EASTCOMFORIA AZABUDAICOMFORIA SHIBAKOENCOMFORIA NISHIAZABUCOMFORIA MINAMIAOYAMACOMFORIA MINAMIAOYAMA DEUXCOMFORIA NISHIWASEDACOMFORIA KOISHIKAWACOMFORIA SENGOKUCOMFORIA DAIKANYAMAAOBADAICOMFORIA HARAJYUKUCOMFORIA IKEBUKUROCOMFORIA KOMAE
COMFORIA RYOGOKUISHIWARA
COMFORIA MITA NORTHCOMFORIA SHIBAURA BOWHOUSE
COMFORIA ASAKUSABASHI DEUXCOMFORIA OSHIAGE
COMFORIA HONJOAZUMABASHICOMFORIA KIYOSUMISHIRAKAWA TROISCOMFORIA MONZENNAKACHOCOMFORIA HIMONYACOMFORIA MISYUKUCOMFORIA GAKUGEIDAIGAKUCOMFORIA HIGASHINAKANO DEUXCOMFORIA HIGASHIIKEBUKURO WEST
COMFORIA RYOGOKU DEUXCOMFORIA OMORI DEUXCOMFORIA MACHIYACOMFORIA ICHIKAWAMYODENCOMFORIA YATSUKACOMFORIA SHIROKANETAKANAWACOMFORIA NIHONBASHI NINGYOCHO EASTCOMFORIA ATAGOCOMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH
COMFORIA TOYOSUCOMFORIA SHIN-OSAKACOMFORIA SUMIDA-TACHIBANACOMFORIA KUDANCOMFORIA NIHONBASHI NINGYOCHO NORTHCOMFORIA SHINKAWACOMFORIA AKASAKACOMFORIA MITA EASTCOMFORIA SHIBAURA CANALCOMFORIA UENOHIROKOJI
COMFORIA KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOEN

Nihonbashi Ningyocho, Chuo-ku, Tokyo
Bentencho, Shinjuku-ku, Tokyo
Nakaochiai, Shinjuku-ku, Tokyo
Kitashinjuku, Shinjuku-ku, Tokyo
Nishikata, Bunkyo-ku, Tokyo
Matsugaya, Taito-ku, Tokyo
Nishioi, Shinagawa-ku, Tokyo
Kamitakada, Nakano-ku, Tokyo
Hanegi, Setagaya-ku, Tokyo
Nishikamata, Ota-ku, Tokyo
Oyamacho, Itabashi-ku, Tokyo
Miyoshi, Koto-ku, Tokyo
Komazawa, Setagaya-ku, Tokyo
Irifune, Chuo-ku, Tokyo
Azabudai, Minato-ku, Tokyo
Shibakoen, Minato-ku, Tokyo
Nishiazabu, Minato-ku, Tokyo
Minamiaoyama, Minato-ku, Tokyo
Minamiaoyama, Minato-ku, Tokyo
Takadanobaba, Shinjuku-ku, Tokyo
Koishikawa, Bunkyo-ku, Tokyo
Sengoku, Bunkyo-ku, Tokyo
Aobadai, Meguro-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
Ikebukuro, Toshima-ku, Tokyo
Iwadokita, Komae-shi, Tokyo
Ishiwara, Sumida-ku, Tokyo
Mita, Minato-ku, Tokyo
Kaigan, Minato-ku, Tokyo
Asakusabashi, Taito-ku, Tokyo
Narihira, Sumida-ku, Tokyo
Honjo, Sumida-ku, Tokyo
Shirakawa, Koto-ku, Tokyo
Fuyuki, Koto-ku, Tokyo
Himonya, Meguro-ku, Tokyo
Ikejiri, Setagaya-ku, Tokyo
Shimouma, Setagaya-ku, Tokyo
Higashinakano, Nakano-ku, Tokyo
Higashiikebukuro, Toshima-ku, Tokyo
Chitose, Sumida-ku, Tokyo
Omorikita, Ota-ku, Tokyo
Arakawa, Arakawa-ku, Tokyo
Shioyaki, Ichikawa-shi, Chiba
Sezaki, Soka-shi, Saitama
Mita, Minato-ku, Tokyo
Nihonbashi Ningyocho, Chuo-ku, Tokyo
Toranomon, Minato-ku, Tokyo
Yanagibashi, Taito-ku, Tokyo
Chitose, Sumida-ku, Tokyo
Edagawa, Koto-ku, Tokyo
Higashinakajima, Higashiyodogawa-ku, Osaka-shi, Osaka
Tachibana, Sumida-ku, Tokyo
Kudanminami, Chiyoda-ku, Tokyo
Nihonbashi Horidomecho, Chuo-ku, Tokyo
Shinkawa, Chuo-ku, Tokyo
Akasaka, Minato-ku, Tokyo
Shiba, Minato-ku, Tokyo
Kaigan, Minato-ku, Tokyo
Ueno, Taito-ku, Tokyo
Kasuga, Bunkyo-ku, Tokyo
Honkomagome, Bunkyo-ku, Tokyo
Shinohashi, Koto-ku, Tokyo
Kiba, Koto-ku, Tokyo

12

Gross floor area
Rentable Acquisition price Investment
ratio (%)
units
(thousands of yen)(m 2)
3, 021. 53
45
1, 586, 837
0. 83, 080. 28
79
1, 900, 000
0. 9
2, 726. 15
44
1, 181, 000
0. 6
1, 058. 75
37552, 707
0. 3
3, 198. 54
80
1, 470, 000
0. 7
2, 264. 84
62910, 000
0. 5
1, 542. 53
59902, 370
0. 4
1, 935. 39
35881, 863
0. 4
5, 287. 18
116
2, 587, 000
1. 3
3, 358. 99
103
1, 550, 000
0. 8
4, 793. 28
97
1, 987, 000
1. 0
1, 317. 22
45740, 000
0. 4
1, 695. 46
39
1, 290, 000
0. 6
5, 773. 48
133
3, 059, 000
1. 5
1, 028. 94
24574, 000
0. 3
1, 914. 13
54
1, 398, 000
0. 7
1, 069. 77
22755, 000
0. 4
1, 763. 88
24
1, 041, 000
0. 5487. 976
248, 000
0. 1
2, 971. 10
60
1, 685, 000
0. 8
1, 015. 71
37552, 000
0. 3
3, 514. 75
44
1, 219, 000
0. 6
1, 533. 95
26926, 000
0. 5
6, 314. 63
99
3, 629, 000
1. 8
1, 171. 21
28602, 000
0. 3
1, 468. 30
24399, 000
0. 2
1, 151. 47
47651, 000
0. 3
1, 257. 94
30850, 000
0. 4
4, 862. 1875
2, 650, 000
1. 3
1, 596. 33
46874, 000
0. 4
1, 369. 26
47714, 000
0. 4
1, 434. 29
48762, 000
0. 4
1, 553. 45
50873, 000
0. 4
4, 916. 04
144
2, 658, 000
1. 3
2, 302. 53
28
1, 189, 000
0. 6
2, 842. 56
59
1, 874, 000
0. 9
1, 919. 59
38
1, 138, 000
0. 6
1, 419. 08
40833, 000
0. 4
8, 296. 57
155
3, 911, 000
1. 9
2, 010. 27
66
1, 014, 730
0. 52, 180. 52
64
1, 188, 000
0. 6
1, 361. 92
30594, 000
0. 3
1, 533. 11
48606, 000
0. 3
1, 710. 09
62626, 000
0. 3
1, 932. 57
37
1, 300, 000
0. 6
2, 912. 38
82
2, 139, 300
1. 1
1, 147. 20
38826, 000
0. 4
5, 273. 67
141
2, 680, 000
1. 3
2, 404. 23
61
1, 240, 000
0. 6
4, 513. 10
161
3, 096, 650
1. 5
6, 530. 63
133
2, 400, 000
1. 2
1, 888. 25
56938, 000
0. 5
1, 787. 89
36
1, 280, 500
0. 6
1, 717. 58
36
1, 108, 000
0. 5
2, 866. 08
59
1, 840, 800
0. 92, 956. 70
40
1, 945, 000
1. 0
4, 973. 31
111
3, 190, 550
1. 6
2, 703. 41
95
1, 570, 000
0. 8
1, 935. 60
37
1, 050, 000
0. 5
4, 479. 23
106
2, 912, 150
1. 4
2, 623. 37
36
1, 344, 000
0. 7
2, 159. 39
75
1, 530, 000
0. 8
1, 753. 85
60956, 000
0. 5

Gross floor area
Rentable Acquisition price Investment
ratio (%)
units
(thousands of yen)(m 2)
Kamiosaki, Shinagawa-ku, Tokyo
67 COMFORIA MEGURO CHOJAMARU
3, 720. 52
71
1, 972, 000
1. 0
Nishimagome, Ota-ku, Tokyo
68 COMFORIA NISHIMAGOME
1, 797. 93
52990, 000
0. 5
Sendagaya, Shibuya-ku, Tokyo
69 COMFORIA KITASANDO
7, 667. 04
144
4, 268, 000
2. 1
Uehara, Shibuya-ku, Tokyo
70 COMFORIA YOYOGIUEHARA
2, 344. 24
51
1, 560, 000
0. 8Sasazuka, Shibuya-ku, Tokyo
71 COMFORIA SASAZUKA
3, 440. 91
89
1, 789, 000
0. 9
Shinjuku, Shinjuku-ku, Tokyo
72 COMFORIA SHINJUKUGYOEN Ⅱ
2, 312. 79
65
1, 806, 000
0. 9
Ichigayayanagicho, Shinjuku-ku, Tokyo
73 COMFORIA ICHIGAYAYANAGICHO
2, 416. 85
69
1, 623, 000
0. 8
Iwatocho, Shinjuku-ku, Tokyo
74 COMFORIA KAGURAZAKA
1, 161. 31
29736, 000
0. 4
75 COMFORIA HIGASHIIKEBUKURO EAST Higashiikebukuro, Toshima-ku, Tokyo
3, 156. 84
90
1, 712, 000
0. 8
Higashiikebukuro, Toshima-ku, Tokyo
76 COMFORIA HIGASHIIKEBUKURO
1, 798. 18
48
1, 132, 000
0. 6
Koyasudori, Kanagawa-ku, Yokohama-shi, Kanagawa
77 COMFORIA SHINKOYASU
2, 622. 19
36
1, 077, 000
0. 5
Shinsakae, Naka-ku, Nagoya-shi, Aichi
78 COMFORIA SHINSAKAE
4, 098. 97
144
1, 653, 400
0. 8Kitahorie, Nishi-ku, Osaka-shi, Osaka
79 COMFORIA KITAHORIE
1, 910. 01
73
1, 010, 000
0. 5
Nibancho, Chiyoda-ku, Tokyo
80 COMFORIA NIBANCHO
2, 165. 01
42
1, 621, 000
0. 8
Kitashinjuku, Shinjuku-ku, Tokyo
81 COMFORIA NISHISHINJUKU
1, 947. 14
56
1, 625, 000
0. 8
Ikejiri, Setagaya-ku, Tokyo
82 COMFORIA KOMABA
7, 450. 62
136
5, 000, 000
2. 5
Kandajinbocho, Chiyoda-ku, Tokyo
83 COMFORIA KANDAJINBOCHO
1, 823. 86
43
1, 434, 000
0. 7
Nihonbashibakurocho, Chuo-ku, Tokyo
84 COMFORIA NIHONBASHI
2, 950. 59
63
1, 956, 000
1. 0
Shibaura, Minato-ku, Tokyo
85 COMFORIA TAMACHI
5, 494. 78
77
3, 272, 000
1. 6
Mita, Minato-ku, Tokyo
86 COMFORIA AZABUJUBAN
1, 632. 38
55
1, 471, 000
0. 7
Taihei, Sumida-ku, Tokyo
87 COMFORIA KINSHICHO
1, 917. 15
46
1, 042, 000
0. 5
Minamisuna, Koto-ku, Tokyo
88 COMFORIA MINAMISUNAMACHI
8, 124. 20
211
4, 681, 000
2. 3
Higashishinagawa, Shinagawa-ku, Tokyo
89 COMFORIA HIGASHISHINAGAWA
3, 298. 65
86
1, 510, 000
0. 7
Yakumo, Meguro-ku, Tokyo
90 COMFORIA MEGUROYAKUMO
1, 333. 57
36813, 000
0. 4
Yoga, Setagaya-ku, Tokyo
91 COMFORIA YOGA
1, 798. 36
39
1, 041, 000
0. 5
Shinjuku, Shinjuku-ku, Tokyo
92 COMFORIA SHINJUKUGYOEN Ⅰ
1, 832. 93
52
1, 406, 000
0. 7
Iwatocho, Shinjuku-ku, Tokyo
93 COMFORIA KAGURAZAKA DEUX
1, 637. 00
46
1, 245, 000
0. 6
Nakajuku, Itabashi-ku, Tokyo
94 COMFORIA ITABASHINAKAJUKU
7, 732. 25
104
3, 794, 280
1. 9
Kitasanjohigashi, Chuo-ku, Sapporo-shi, Hokkaido
95 COMFORIA KITASANJO
3, 949. 79
60660, 000
0. 3
Higashiazabu, Minato-ku, Tokyo
96 COMFORIA AZABU EAST
3, 505. 12
69
1, 900, 000
0. 9
Kitashinagawa, Shinagawa-ku, Tokyo
97 COMFORIA SHINAGAWA EAST
3, 701. 07
97
1, 430, 000
0. 7(Tower Building) 69, 308. 35
98 COMFORIA SHINJUKU EASTSIDE TOWER Shinjuku, Shinjuku-ku, Tokyo(Annex Building) 2, 305. 29
765
13, 264, 000
6. 6(Gate Building)203. 15
Ojima, Koto-ku, Tokyo
2, 828. 47
992, 110, 000
1. 0
99 COMFORIA OJIMA
Omorikita, Ota-ku, Tokyo
100 COMFORIA OMORI TROIS
1, 232. 52
45866, 000
0. 4No.

Property nameLocation

101 COMFORIA SAPPORO SHOKUBUTSUEN

Kitanijonishi, Chuo-ku, Sapporo-shi, Hokkaido
Tenjinbashi, Kita-ku, Osaka-shi, Osaka
Ichigayayakuojimachi, Shinjuku-ku, Tokyo
Higashikanda, Chiyoda-ku, Tokyo
Shiba, Minato-ku, Tokyo
Honkomagome, Bunkyo-ku, Tokyo
Kamata, Ota-ku, Tokyo
Kamitakaido, Suginami-ku, Tokyo
Bakuromachi, Chuo-ku, Osaka-shi, Osaka
Kyomachibori, Nishi-ku, Osaka-shi, Osaka
Enokojima, Nishi-ku, Osaka-shi, Osaka
Gyotokuekimae, Ichikawa-shi, Chiba
Shibaura, Minato-ku, Tokyo

4, 062. 44

42

1, 250, 000

0. 6

2, 374. 77
1, 392. 29
5, 192. 38
1, 096. 43
1, 971. 16
7, 900. 68
1, 923. 34
3, 407. 91
2, 625. 18
2, 844. 34
1, 347. 25
1, 213. 34

88
21
131
32
56
203
73
112
84
84
56
39

1, 435, 000
941, 000
4, 425, 000
890, 000
1, 330, 000
5, 721, 000
1, 245, 000
1, 980, 000
1, 567, 000
1, 289, 000
978, 000
1, 065, 680

0. 7
0. 5
2. 2
0. 4
0. 7
2. 8
0. 6
1. 0
0. 8
0. 6
0. 5
0. 5

379, 555. 14

8, 108187, 564, 817

92. 93, 527. 42
1, 700. 50
2, 644. 99
3, 178. 86
5, 528. 18
2, 459. 62
2, 244. 68

88
36
68
84
84
57
65

2, 173, 000
1, 313, 000
2, 622, 000
1, 719, 000
2, 500, 000
1, 660, 000
2, 150, 000

1. 1
0. 7
1. 3
0. 9
1. 2
0. 8
1. 1

Sub-total

21, 284. 25

482

14, 137, 000

7. 1

Total

400, 839. 39

8, 590201, 701, 817

100.0

102 COMFORIA OGIMACHI
103 COMFORIA ICHIGAYAYAKUOJI
104 COMFORIA AKIHABARA EAST
105 COMFORIA MITA TROIS
106 COMFORIA BUNKYOHAKUSAN
107 COMFORIA KAMATA
108 COLLEGE COURT HACHIMANYAMA
109 COMFORIA SHINSAIBASHI EAST
110 COMFORIA KYOMACHIBORI
111 COMFORIA AWAZA
112 COMFORIA GYOTOKU
113 COMFORIA SHIBAURA

Sub-total

Assets acquired in the 16th Fiscal Period
114 COMFORIA UENOIRIYA
115 COMFORIA IKEJIRI
116 COMFORIA SETAGAYAKAMIUMA
117 COMFORIA KITAHAMA
118 COMFORIA AKABANEIWABUCHI
119 COMFORIA RYOGOKU TROIS
120 COMFORIA SHINJUKURyusen, Taito-ku, Tokyo
Ikejiri, Setagaya-ku, Tokyo
Kamiuma, Setagaya-ku, Tokyo
Imabashi, Chuo-ku, Osaka-shi, Osaka
Iwabuchimachi, Kita-ku, Tokyo
Kamezawa, Sumida-ku, Tokyo
Shinjuku, Shinjuku-ku, Tokyo

13

Portfolio List
Central Tokyo
98 COMFORIA SHINJUKU EASTSIDE TOWER

104 COMFORIA AKIHABARA EAST

96 COMFORIA AZABU EAST

93 COMFORIA KAGURAZAKA DEUX

86 COMFORIA AZABUJUBAN

85 COMFORIA TAMACHI

84 COMFORIA NIHONBASHI

83 COMFORIA KANDAJINBOCHO

1480 COMFORIA NIBANCHO

72 COMFORIA SHINJUKUGYOEN Ⅱ

70 COMFORIA YOYOGIUEHARA

69 COMFORIA KITASANDO

60 COMFORIA MITA EAST

59 COMFORIA AKASAKA

71 COMFORIA SASAZUKA

15

Portfolio List
58 COMFORIA SHINKAWA

50 COMFORIA ATAGONIHONBASHI
49 COMFORIANINGYOCHO EAST

Sub-central Tokyo
107 COMFORIA KAMATA

16

COMFORIACOMFORIA

56 COMFORIA KUDAN

116 SETAGAYAKAMIUMA

89 HIGASHISHINAGAWA

26 COMFORIA HARAJYUKU

87 COMFORIA KINSHICHO

51 COMFORIA ASAKUSABASHITokyo metropolitan area
97 COMFORIA SHINAGAWA EAST

112 COMFORIA GYOTOKU

47 COMFORIA YATSUKACOMFORIA

88 MINAMISUNAMACHI

Other major cities
117 COMFORIA KITAHAMA

17

Overview of the Investment Corporation andAsset Management Company

Basic Policies
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.

■■ Overview of the Investment Corporation

Representative

Takehiro Izawa, Executive Director■■ “COMFORIA” Series

Address

1- 1 Minami-Aoyama 1-chome, Minato-ku, Tokyo 107- 0062, Japan

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.

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 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.

Name of the investment
Comforia Residential REIT, Inc
corporation

June 30, 2010

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)

February 6, 2013 Listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange

Structure
The Investment Corporation

SponsorCOMFORIA knows
how residents feel.

TOKYU LAND CORPORATION
Comprehensive real estate developer
Sponsor support agreement● Information on the sale of properties

Support agreement● Warehousing● Advisory

TOKYU LIVABLE, INC.
Comprehensive real estate marketingintermediary and brokerage of land and buildings● Human resources/Expertise● Information on the sale of properties

1

Comforia Residential REIT, Inc

6● Market information

General Administration (accounting, etc.)
Heiseikaikeisha Tax Corporation

Board of Directors

TOKYU LIVABLE, INC.
TOKYU COMMUNITY CORP.
Tokyu Housing Lease Corporation
TOKYU E-LIFE DESIGN Inc.
EWEL, Inc.
TOKYU SPORTS OASIS, Inc.

3

Unitholders’ Meeting

4

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

General Administration (corporation bonds)
Sumitomo Mitsui Trust Bank, Limited

1 Asset management agreement
2 Asset custody agreement,

Administrative service agreement,
Transfer agency agreement
3 Accounting service agreement

Ernst & Young ShinNihon LLC

Shareholder

Representative

Hiroyuki Tomata,President & CEO

Address

1- 1 Minami-Aoyama 1-chome,
Minato-ku, Tokyo 107- 0062, Japan

Established

October 2009

Capita¥ 200 million

Financial Instruments Business Firm, granted by the Director of the
Kanto Regional Finance Bureau (Financial Instruments) Registration No.
2370
Registrations/
Discretionary Transaction Agent granted by the Minister of Land,
Licenses
Infrastructure, Transport and Tourism, Registration No. 65
Building Lots and Building Transactions Business License, granted by
the Governor of Tokyo ( 2) No. 91139

Tokyu Land Corporation 100%Overview of Organization
Shareholders’ Meeting
Corporate Auditor● Market information

TLC REIT Management Inc.

Board of Directors
Compliance Committee● Considering becoming tenants

TOKYU E-LIFE DESIGN Inc.
Management and operation ofsenior housing and nursing homes
Support agreement● Market information

18

Acquisition Priority Review Meeting

Support agreement● Information on the sale of properties● Market information

President & CEO

EWEL, Inc.
Welfare service agency businessSupport agreement

5 Sponsor support agreement
6 Support agreement

TLC REIT Management, Inc.

Investment Committee
TOKYU COMMUNITY CORP.
Management of condominiums and buildings

Fiscal, issuing andpayment agency agreement

Trade name● Information on the sale of properties

Property management agreement

4■■ Overview of the Asset Management Company (As of January 31, 2018)

Support agreement● Considering becoming tenants

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

Supporting Company

We 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
the value chain and expertise of the Tokyu Fudosan Holdings Group. With the support of the Tokyu Fudosan HoldingsGroup companies through such agreements, we will aim to expand our asset size (external growth), and maintain andincrease asset value (internal growth).

Tokyu Housing Lease Corporation
Property management/Tenant leasing

2

TOKYU LAND CORPORATIONTLC REIT Management Inc.

■■ Value Chain of the Tokyu Fudosan Holdings Group

January 31 and July 31 ofeach year

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

5

COMFORIA knows
where peace of mind
comes from.

Fiscal period-end

June 8, 2010

Asset Management Company

COMFORIA knows
what high quality
feels like.

TLC REIT Management, Inc.
Tel: + 81- 3- 3401- 1090

History

Four Advantages COMFORIA Offers

COMFORIA knows
how valuable time is.

Inquiries● Information on thewelfare services for
TOKYU SPORTS OASIS, Inc.
residential tenants
Management, planning and operation of
a comprehensive fitness club based on
private membership

Support agreement● Providing information and making proposals

concerning services, etc. for tenants ofrental residences.

Compliance Dept.

Internal Audit Dept.

Activia
Management Div.
Corporate Planning &Administration Dept.

Finance &Accounting Dept.

Asset Investment
Dept.

Strategic
Mgt. Dept.

Asset
Mgt. Dept.

Comforia
Management Div.
Strategic
Mgt. Dept.

Asset
Mgt. Dept.

Broadia
Management Div.
Strategic
Mgt. Dept.

Asset
Mgt. Dept.

19

Ⅰ
Ⅰ. Asset Management Report
II. Asset Management Report

Overview of Asset Management

Overview of Asset Management

1. Performance of the Investment Corporation

Asset Management Report for the 15th Fiscal Period(Semi-Annual Report)

From August 1, 2017 to January 31, 2018

Fiscal period

11th
Fiscal Period

12th
Fiscal Period

13th
Fiscal Period

14th
Fiscal Period

15th
Fiscal PeriodBusiness period

FromAug. 1, 2015 toJan. 31, 2016

From
Feb. 1, 2016 toJul. 31, 2016

From
Aug. 1, 2016 toJan. 31, 2017

From
Feb. 1, 2017 toJul. 31, 2017

From
Aug. 1, 2017 toJan. 31, 2018

Operating revenue(millions of yen)

5,050

6,531

6,674

7,276

7,357

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

(4,957)(6,531)(6,674)(7,276)(7,357)

Operating expenses(millions of yen)

2,446

3,785

3,885

4,178

4,188

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

(1,902)(3,196)(3,249)(3,518)(3,496)

Operating profit(millions of yen)

2,603

2,746

2,788

3,098

3,168

Ordinary profit(millions of yen)

2,148

2,312

2,341

2,613

2,680

Profit(millions of yen)

2,147

2,304

2,335

2,608

2,674

Total assets(millions of yen)

159,245

179,944

183,902205,121206,171

(%)

(0.2)

(13.0)(2.2)(11.5)(0.5)(millions of yen)

77,36985,13985,171

97,25897,294[Period-on-period change]
Net assets[Period-on-period change]

(%)

(0.1)

(10.0)(0.0)(14.2)(0.0)(millions of yen)

75,22482,74382,743

94,557

94,557

Number of investment units issued(units)473,804

513,504

513,504

563,694563,694

Net assets per unit

(yen)

163,295

165,801

165,863

172,537

172,601

Total distributions(millions of yen)

2,055

2,304

2,335

2,638

2,698

Distribution per unit

(yen)

4,339

4,487

4,549

4,681

4,788

[Earnings distribution per unit](yen)(4,339)(4,487)(4,549)(4,681)(4,788)[Distribution in excess of earnings
per unit]

(yen)

(－)

(－)

(－)

(－)

(－)

Return on assets(Note 1)

(%)

1.4

1.4

1.3

1.3

1.3

Return on unitholders’ equity(Note 2)

(%)

2.8

2.8

2.7

2.9

2.7

Unitholders’ equity ratio(Note 3)

(%)

48.6

47.3

46.3

47.4

47.2

Unitholders’ capital

II.
III.

Asset Management Report
Comforia Residential REIT, Inc
Financial Section
1-1
Minami-Aoyama
1-chome, Minato-ku,
Balance SheetsTokyo
107-0062, Japan
Statements of Income
Statements of Changes in Unitholders’ Equity
Statements of Cash Distributions
Statements of Cash Flows
Notes
Supplementary Schedules
Independent Auditor’s Report[Period-on-period change]
Interest-bearing debt

(%)

[0.0]

[1.3]

[1.0]

[1.1]

[0.2]

(millions of yen)

79,27091,06094,970103,620

104,750

Interest-bearing debt ratio(Note 4)

(%)

49.8

50.6

51.6

50.5

50.8

Payout ratio(Note 5)

(%)

95.7

99.9

100.0

101.1

100.9

Number of properties(properties)

94

98

101

110

111

Total leasable area(m2)

217,652.64

272,172.73

278,745.27

303,025.09

304,126.02

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

(%)

96.2

96.3

96.5

96.1

96.7

(millions of yen)

821

1,017

1,049

1,137

1,152

(millions of yen)

52

131

(millions of yen)

3,875
4,352
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(Note 6)

112

386

274

4,474

4,896

5,013

- 1 -

20

21

Overview of Asset Management
2. Asset Management Status for the 15th Fiscal Period

3. Capital Increases(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 thePrime 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 (18,691 units) through a public offering on February 6, 2013 and was listed on thereal 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 15th Fiscal Period includes 111 properties,
acquired for a total of ¥188,536 million.
(2) Investment performance(i) Investment environment
During the 15th 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 of assets
During the 15th Fiscal Period, the Investment Corporation acquired COMFORIA SHIBAURA in August 2017. As a result,assets owned by the Investment Corporation as of the end of the 15th Fiscal Period totaled 111 properties with a totalacquisition price of ¥188,536 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 15th Fiscal Period, the Investment Corporation undertook borrowing of funds (¥1,130 million) for the acquisitionof COMFORIA SHIBAURA in August 2017. It also borrowed funds (¥6,300 million) in September 2017 for the repayment ofexisting borrowings (¥6,300 million) that matured in the fiscal period. Consequently, as of the end of the 15th Fiscal Period(January 31, 2018), unitholders’ capital was ¥94,557 million, interest-bearing debt was ¥104,750 million, the ratio of interestbearing debt to total assets (LTV) was 50.8%, the average maturity of interest-bearing debt was 4.2 years, the ratio of longterm debt was 85.2%, and the fixed rate ratio was 87.0%. Moreover, the Investment Corporation established a commitmentline with a credit limit of ¥10 billion with Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Ltd., The Bank of TokyoMitsubishi UFJ, Ltd. and Mitsubishi UFJ Trust and Banking Corporation in order to secure flexible and stable funding methods.
The Investment Corporation obtained the following rating as of the end of the 15th 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 15th Fiscal Period, the Investment Corporation posted operating revenue of ¥7,357 million,
operating profit of ¥3,168 million, ordinary profit of ¥2,680 million, and profit of ¥2,674 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 15th Fiscal Period, the Investment Corporation
reversed part (¥24 million) of reserve for reduction entry provided in accordance with Special Provisions on Taxation in thecase of advance acquisition of land and such in 2009 and 2010 (Article 66-2 of the Act on Special Measures Concerning
Taxation), after distributing almost all unappropriated retained earnings. As a result, the distribution per unit (DPU) was ¥4,788
for the period.

22

- 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)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.

[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

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

14th Fiscal Period

15th Fiscal Period

Closing month/year

Jan. 2016

Jul. 2016

Jan. 2017

Jul. 2017

Jan. 2018

Highest¥242,500¥250,900¥262,500¥261,600¥250,500

Lowest¥189,600¥206,900¥231,600¥219,400¥228,100

- 3 -

23

Overview of Asset Management
4. Performance of Distributions
DPU for the 15th Fiscal Period was ¥4,788. The Investment Corporation has decided to distribute almost all unappropriated retained
earnings after adding reversal of reserve for reduction entry, 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).
Fiscal period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

14th Fiscal Period

15th Fiscal PeriodBusiness period

From Aug. 1, 2015
to Jan. 31, 2016

From Feb. 1, 2016
to Jul. 31, 2016

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

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

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

¥2,148,086 thousand ¥2,304,285 thousand¥2,336,057 thousand¥2,608,344 thousand ¥2,674,584 thousand

Unappropriated retained earnings
Retained earnings
Total distributions[Distribution per unit]
Of which, total earnings
distributions[Earnings distribution per unit]¥92,251 thousand¥193 thousand¥127 thousand¥2,055,835 thousand ¥2,304,092 thousand¥2,335,929 thousand[¥4,487][¥4,549]¥2,055,835 thousand ¥2,304,092 thousand¥2,335,929 thousand[¥4,339]¥17 thousand¥186 thousand¥2,638,651 thousand ¥2,698,966 thousand[¥4,681][¥4,788]¥2,638,651 thousand ¥2,698,966 thousand[¥4,339][¥4,487][¥4,549][¥4,681][¥4,788]¥– 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

Of which, total return on
unitholders’ capital[Of the total return on
unitholders’ capital per unit, thedistribution payments frominvestments and other decreased
distribution under tax laws][¥–]¥– thousand[¥–]¥– thousand[¥–]¥– thousand[¥–]¥– thousand[¥–](Note) Figures above are rounded down to the nearest unit.

5. Future Investment Policy and Issues to Address
Based on our basic policies of investment management, the Investment Corporation acquired a property during the 15th 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. Goingforward, we aim to achieve medium- to long-term growth by continuing to carry out investment and management based on ourbasic policies.
(1) External growth strategy
The Investment Corporation aims to acquire higher-quality assets and expand its 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 continuously 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 hasentered into a support agreement with each of the six support companies of the Tokyu Fudosan Holdings Group companies(Tokyu Livable, Inc., Tokyu Community Corp., Tokyu Housing Lease Corporation, Tokyu E-Life Design Inc., Ewel Inc., andTokyu Sports Oasis, Inc.) for managed assets of the Investment Corporation.

(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 16th 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 15th 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 Scheduled Events
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meetings held on January 5, 2018 and January 17, 2018
concerning the issuance of new investment units as described below. Payment completed on February 1, 2018 for the newinvestment units issued through public offering and on February 15, 2018 for the new investment units offered by way of thirdparty allotment, respectively. As a result, unitholders’ capital increased to ¥99,814,378,532, with the number of investment units
issued and outstanding at 586,994 units.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of investment units issued:
22,190 units
Issue price:
Total issue amount:¥233,132 per unit
¥5,173,199,080

Paid-in amount (issue value):
Total paid-in amount (issue value):¥225,600 per unit
¥5,006,064,000

Payment date:February 1, 2018

Issuance of New Investment Units Offered by Way of Third-Party Allotment
Number of investment units offered:
1,110 units
Paid-in amount (issue value):
Total paid-in amount (issue value):¥225,600 per unit
¥250,416,000

Payment date:
Allottee:February 15, 2018
Mizuho Securities Co., Ltd.

(Reference Information)
A. Property Acquisition
The Investment Corporation acquired the following properties as of February 2, 2018.
Acquisition priceType of specified(thousand yen)
Property nameLocation
asset(Note)

Main usage

COMFORIA UENOIRIYA

Property in trust

Taito-ku, Tokyo

2,173,000

Apartment building

COMFORIA IKEJIRI

Property in trust

Setagaya-ku, Tokyo

1,313,000

Apartment building

Property in trust

Setagaya-ku, Tokyo

2,622,000

Apartment building

COMFORIA
SETAGAYAKAMIUMACOMFORIA KITAHAMA

Chuo-ku, Osaka-shi,

1,719,000
Apartment building
Osaka(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.

24

- 4 -

Property in trust

- 5 -

25

Overview of Asset Management

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

B. Borrowing of Funds(1) Term loans
The Investment Corporation undertook the following borrowing of funds as of February 2, 2018
Type

Loan amount(millions ofyen)

LenderLong-term

Sumitomo Mitsui Trust Bank,

loans

Limited100

Applicableinterest rate
Base rate (Note)+0.200%Drawdown datePrincipal repayment
date

February 2, 2018

February 28, 2019

Development Bank of Japan Inc.
Mizuho Bank, Ltd.

The Bank of Tokyo-Mitsubishi
UFJ, Ltd.

2,860

0.65428%

February 2, 2018

(2) Line of Credit Loan (Uncommitted Basis)
The Investment Corporation executed a Line of Credit Loan Master Agreement (on an uncommitted basis) as of February
9, 2018, as described below, in case it needs to raise funds to purchase assets for future investments and other purposes.
Repayment date

Repayment
methodUse of funds

Collateral

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi
UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

To fund new property
acquisitions, repayment of
9,000

14th Fiscal
Period15th Fiscal
PeriodAs ofJan. 31, 2016

As ofJul. 31, 2016

As ofJan. 31, 2017

As ofJul. 31, 2017

As ofJan. 31, 2018

Total number of authorized
investment units(units)8,000,000

8,000,000

8,000,000

8,000,000

8,000,000

Total number of investment
units issued(units)473,804

513,504

513,504

563,694563,694

Unitholders’ capital(millions of yen)

75,22482,74382,743

94,557

94,557

Number of unitholders(people)

7,530

7,749

6,834

7,897

7,269

January 31, 2025

Sumitomo Mitsui Trust Bank,
Limited(Note) The base rate applicable to the interest to be paid on interest payment dates is the JBA (Japanese
Bankers Association) 1-month Yen TIBOR on the day two business days before the interest payment
date immediately preceding each interest payment date.

Amount ofcredit limit(millions ofyen)

13th Fiscal
PeriodMajor unitholders as of January 31, 2018 are as follows.

Mitsubishi UFJ Trust and Banking
Corporation

Counter parties

12th Fiscal
Period

2. Matters concerning Investment Units

Sumitomo Mitsui Trust Bank,
LimitedLong-termloans

11th Fiscal
PeriodLess than one
year from thedrawdown date

Sumitomo Mitsui Trust Bank,
LimitedLump-sum
repayment

existing borrowings,
redemption of investment
corporation bonds andpayment of related
expenses

Unsecured

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

Japan Trustee Services Bank, Ltd. (trust account)

182,277

32.33

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

71,05912.60

Tokyu Land Corporation

51,664

9.16

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

21,291

3.77

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

16,936

3.00

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

10,297

1.82

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

9,948

1.76

The Asahi Fire And Marine Insurance Company Limited

8,600

1.52

The Gunma Bank, Ltd.

5,982

1.06

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

5,149

0.91

Total

383,203

67.98(Note)

Unguaranteed

Number of investment units
owned (units)Name

The 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 15th 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 new investment units in February 2018.

- 7 -

26

- 6 -

27

Overview of the Investment Corporation

Status of Managed Assets of the 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 the Independent Auditor is not fit for its role, upon comprehensive examination of
its 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 the appointment of a
new Independent Auditor to the unitholders’ meeting.
(3) Disposition of suspension of services that the Independent Auditor has been subject to in the past two years
Details of the disciplinary action announced by the Financial Services Agency on December 22, 2015:(i) Subject of the action
Ernst & Young ShinNihon LLC(ii) Description of the action– Three-month suspension from accepting new engagements(From January 1, 2016 to March 31, 2016)– Order to improve operations (improvement of the audit management system)
Note: In addition, an order for payment of a surcharge of approximately ¥2.1 billion was decided on January 22,2016.
(iii) Reason for the action– Seven certified accountants from Ernst & Young ShinNihon LLC (hereinafter referred to as the “Auditor”) had, in
negligence of due care, attested the financial statements of TOSHIBA CORPORATION for fiscal 2009, fiscal 2011
and fiscal 2012 (for years that ended March 31, 2010, 2012 and 2013) containing material misstatements as though
no material misstatements were present.
– The Auditor’s operations were deemed significantly inappropriate

4. Asset Management Company, Asset Custodian and General Administration
The asset management company, asset custodian and general administration as of January 31, 2018 are as follows.
Consignment segment

Name

1. Composition of Assets of the Investment Corporation
Type ofasset

14th Fiscal Period(as of July 31, 2017)

Area

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

Central Tokyo

15th Fiscal Period(as of January 31, 2018)

Percentage of total
assets (%) (Note 2)

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

Percentage of total
assets (%) (Note 2)

－

－

1,139

0.6

Sub-central Tokyo

3,201

1.6

3,188

1.5

Other major cities

1,050

0.5

1,042

0.5

Central Tokyo

84,312

41.1

83,977

40.7

Properties Sub-central Tokyo
in trust Tokyo metropolitan area

83,10740.5

82,700

40.1

4,713

2.3

4,685

2.3

12,675

6.2

12,5906.1

189,060

92.2

189,323

91.8

Real
estateOther major cities
Subtotal
Deposits and other assets

16,061

7.8

16,847

8.2

Total assets

205,121100.0

206,171

100.0(Note 1)
(Note 2)

“Total amount owned” shows 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 as follows.
Property nameBook value(millions of yen)

Rentable area(m2)

Rented area(m2)

Ratio to total
Occupancy rate
rental revenues Main usage(%)(%)

Asset management company

TLC REIT Management Inc.

Asset custodian

Mitsubishi UFJ Trust and Banking Corporation

COMFORIA SHINJUKUEASTSIDE TOWER

13,72348,267.60

46,071.01

95.4

19.8

Apartment
building

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

General administration (accounting service)

Heiseikaikeisha Tax Corporation

COMFORIA KAMATA

5,873

6,027.98

5,889.34

97.7

2.2

Apartment
building

General administration (administrative service)

Mitsubishi UFJ Trust and Banking Corporation

COMFORIA KOMABA

5,203

5,342.38

5,091.79

95.3

1.8

General administration (corporation bond service)

Sumitomo Mitsui Trust Bank, Limited

Apartment
building

COMFORIA
MINAMISUNAMACHI

4,690

6,141.98

5,885.41

95.8

1.8

Apartment
building

COMFORIA AKIHABARA
EAST

4,530

4,582.07

4,437.45

96.8

1.6

Apartment
building

COMFORIA KITASANDO

4,255

4,967.87

4,819.08

97.0

1.8 Residence

COMFORIA
ITABASHINAKAJUKU

3,992

6,966.04

6,894.76

99.0

1.7

Apartment
building

COMFORIAHIGASHIIKEBUKURO WEST

3,771

6,436.14

6,201.54

96.4

2.2

Apartment
building

COMFORIA HARAJYUKU

3,593

4,528.51

4,174.61

92.2

1.7

Apartment
building

COMFORIA TAMACHI

3,407

4,251.63

4,060.36

95.5

1.3

Apartment
building

53,043

97,512.20

93,525.35

95.9

35.9

Total

- 9 -

28

- 8 -

29

Status of Managed Assets of the Investment Corporation
3. Statement of Properties Incorporated in the Portfolio
Area

The overview of assets under management of the Investment Corporation as of January 31, 2018 is as follows.
Area

Property name

Address

Property name

Address

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 MINAMIAOYAMA
DEUX

4-2-1 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- 10 -

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

2,100

1,546

2,470

1,884

1,530

1,115

669

553

COMFORIA SHIBAURA CANAL

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

COMFORIA KITASANDO

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

COMFORIA YOYOGIUEHARA

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

COMFORIA SASAZUKA

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

3,940

3,012

755

559

1,740

1,338

927

732

1,510

1,062

403

256

2,080

1,616

4,600

3,593

1,100

866

3,250

2,580

1,560

1,321

2,470

2,091

941

819

1,530

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

Central Tokyo

Central Tokyo30

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

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
Ownership form
(millions of yen)(millions of yen)
(Note 2)
(Note 1)COMFORIA NIHONBASHININGYOCHO

Ownership form

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

COMFORIA NISHISHINJUKU

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

COMFORIA KANDAJINBOCHO

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

COMFORIA NIHONBASHI

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

COMFORIA TAMACHI

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

COMFORIA AZABUJUBAN

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

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

7-3 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA AZABU EAST

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

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

1,272

COMFORIA ICHIGAYAYAKUOJI

74-23 Ichigayayakuojimachi, Shinjuku-ku, Tokyo

1,310

1,089

COMFORIA AKIHABARA EAST

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

2,150

1,817

COMFORIA MITA TROIS

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

2,470

1,936

COMFORIA SHIBAURA

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

3,750

3,136

- 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

1,880

1,545

5,000

4,255

1,810

1,605

2,200

1,780

2,190

1,787

1,910

1,610

862

727

1,850

1,634

1,710

1,644

1,600

1,495

2,150

1,980

3,600

3,407

1,620

1,486

1,500

1,422

1,370

1,261

2,800

1,933

15,00013,723

970

995

4,590

4,530

900

942

1,150

1,139

99,917

85,11631

Status of Managed Assets of the Investment Corporation

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

32

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

2,000

1,395

COMFORIAHIGASHIIKEBUKURO WEST

1,230

847

COMFORIA RYOGOKU DEUX

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

1,030

883

COMFORIA OMORI DEUX

3-4-2 Omori Kita, Ota-ku, Tokyo

993

872

COMFORIA MACHIYA

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

3,260

2,433

COMFORIA ASAKUSABASHI

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

2,100

1,465

COMFORIA RYOGOKU SOUTH

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

2,320

1,956

COMFORIA TOYOSU

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

915

700

COMFORIA SUMIDATACHIBANA

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

1,640

1,236

COMFORIA UENOHIROKOJI

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

665

529

1,690

1,252

1,370

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)

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

926

COMFORIA MORISHITA

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

671

576

COMFORIA KIBAKOEN

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

796

623

COMFORIA MEGUROCHOJAMARU

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

1,010

857

COMFORIA NISHIMAGOME

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

825

703

COMFORIAHIGASHIIKEBUKURO EAST

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

879

751

COMFORIAHIGASHIIKEBUKURO

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

995

844

COMFORIA KOMABA

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

2,960

2,562

COMFORIA KINSHICHO

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

1,580

1,188

COMFORIA
MINAMISUNAMACHI

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

2,480

1,819

1,470

1,124

1,070

810

- 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

5,190

3,771

1,240

1,020

1,380

1,193

843

599

3,380

2,607

1,560

1,208

3,610

3,010

1,040

951

1,250

1,042

3,430

2,876

1,650

1,322

1,760

1,498

1,110

937

2,420

1,984

1,120

983

2,300

1,690

1,330

1,119

5,310

5,203

1,170

1,059

4,880

4,690

33

Status of Managed Assets of the Investment Corporation

Area

Property name

Address

Ownership form

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

(Note 1)Sub-central Tokyo(Note 1)COMFORIAHIGASHISHINAGAWA

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

COMFORIA MEGUROYAKUMO

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

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 OJIMACOMFORIA OMORI TROIS

4-8-10 Ojima, Koto-ku, Tokyo
3-36-7 Omorikita, Ota-ku, 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

Tokyo metropolitan area

Subtotal
COMFORIA KOMAE

3-9-5 Iwato Kita, Komae-shi, Tokyo

COMFORIA
YOKOHAMAKANNAI

2-8-15 Okinacho, Naka-ku, Yokohama-shi,
Kanagawa

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

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
Subtotal
Total

34- 14 -

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
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
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

1,680

1,549

863

830

1,100

1,083

4,140

3,992

1,550

1,541

2,200

2,259

905

928

1,380

1,407

5,880

5,873

1,250

1,285

100,870

85,889

559

422

1,270

929

725

608

688

621

1,240

1,058

992

1,045

5,474

4,685

2,870

2,336

1,810

1,684

1,080

1,042

958

679

1,270

1,338

1,540

1,529

2,010

2,057

1,600

1,621

1,330

1,343

14,468

13,632

220,729

189,323(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., Morii Appraisal &Investment Consulting, Inc. 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 15th Fiscal Period(January 31, 2018) minus accumulated depreciation, and does not include construction in progress or construction in progress in trust.

- 15 -

35

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

Sub-central Tokyo

Central Tokyo

Area

36

Property name

COMFORIA NIHONBASHININGYOCHOCOMFORIA WASEDACOMFORIA SHIMOOCHIAICOMFORIA HIGASHINAKANOCOMFORIA GINZA EASTCOMFORIA AZABUDAICOMFORIA SHIBAKOENCOMFORIA NISHIAZABUCOMFORIA MINAMIAOYAMACOMFORIA MINAMIAOYAMADEUXCOMFORIA 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 TOWERCOMFORIA ICHIGAYAYAKUOJI
COMFORIA AKIHABARA EASTCOMFORIA MITA TROISCOMFORIA SHIBAURA
Subtotal
COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATA

14th Fiscal Period(from February 1, 2017 to July 31, 2017)15th Fiscal Period(from August 1, 2017 to January 31, 2018)

Ratio toRatio toOccupancy
Total number
Total number Occupancy rate Rent revenue
total
total
Rental revenue
rate(at end of period)of tenantsoftenants
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

94.0

56,667

0.8

1

97.5

58,142

0.8

1
1
1
1
1
1
1
1
1

90.1
98.2
94.5
98.3
90.1
94.5
91.6
100.0

67,07748,067
20,792
113,928
22,14550,53624,88233,140

0.9
0.7
0.3
1.6
0.3
0.7
0.3
0.5

97.2
100.0
97.6
98.7
90.3
100.0
100.0
100.0

64,771
46,585
20,255
116,308
21,57549,00026,01639,723

0.9
0.6
0.3
1.6
0.3
0.7
0.4
0.5

100.0

12,044

0.2

1
1
1
1
1
1
1
1
1

84.1

7,952

0.1

1
1

94.7

59,941

0.8

57,7690.8

127,156

1.7

1
1

96.4

98.3

92.2

124,943

1.7

1
1

100.0

29,9370.4

96.2

29,6800.4

98.7

98,067

1.3

1
1

97.5

98,174

1.3

1

89.8

43,738

0.6

1

100.0

45,662

0.6

1

98.2

67,292

0.9

1

99.0

68,695

0.9

1
1

97.5
97.2

28,65640,168

0.4
0.6

1
1

100.0
97.2

28,83942,167

0.4
0.6

1

100.0

37,147

0.5

1

100.0

36,6160.5

1
1
1

59,39363,70398,44153,207
135,856
49,264
66,96057,330

0.8
0.9
1.4
0.7
1.9
0.7
0.9
0.8

1
1
1

1
1
1
1
1

96.7
95.1
97.0
96.8
94.6
98.4
96.8
100.0

1
1
1
1
1

98.3
100.0
94.6
94.7
97.0
100.0
98.5
97.4

58,65765,667
101,257
54,010134,414
48,371
67,192
56,118

0.8
0.9
1.4
0.7
1.8
0.7
0.9
0.8

1

96.2

50,044

0.7

1

100.0

51,293

0.7

1
1
1
1
1
1
1
1

97.0
93.3
94.8
88.9
98.6
95.7
96.4
89.6

23,95949,80247,453
43,56762,277
98,19042,294
41,628

0.3
0.7
0.7
0.6
0.9
1.3
0.6
0.6

1
1
1
1
1
1
1
1

87.0
95.2
97.8
98.4
97.1
95.5
94.6
93.1

23,38550,00145,41342,863
63,95997,13242,96842,391

0.3
0.7
0.6
0.6
0.9
1.3
0.6
0.6

1

100.0

40,511

0.6

1

92.1

42,185

0.6

1

95.5

73,991

1.0

1

99.0

74,104

1.0

1

95.1

1,434,472

19.7

1

95.4

1,454,491

19.8

1
1
1
2
1

100.0
96.1
91.1
95.8
98.1

23,998
115,481
22,533
3,735,750
60,244

0.3
1.6
0.3
51.3
0.8

1
1
1
1
2
1

94.3
96.8
100.0
92.8
96.4
99.0

24,438
117,662
23,52021,2903,785,673
60,059

0.3
1.6
0.3
0.3
51.5
0.8

1

97.9

44,920

0.6

1

97.2

44,631

0.6

1
1
1
1

98.3
91.5
95.5
95.9

31,582
32,984
95,66265,083

0.4
0.5
1.3
0.9

1
1
1
1

100.0
93.9
94.2
97.5

32,72031,862
94,76564,533

0.4
0.4
1.3
0.9

- 16 -

Area

Property nameSub-central Tokyo

14th Fiscal Period(from February 1, 2017 to July 31, 2017)

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

15th Fiscal Period(from August 1, 2017 to January 31, 2018)

Ratio toRatio toOccupancy
Occupancy
Total number
Total number
total
total
Rental revenue
Rent revenue
rate
rate
of tenantsoftenants
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

95.3

77,786

1.1

1

97.0

79,052

1.1

1

93.3

28,652

0.4

1

95.6

27,298

0.4

1
1
1

94.0
100.0
97.5

42,563
21,55353,608

0.6
0.3
0.7

1
1
1

94.6
97.5
97.8

42,80821,86054,107

0.6
0.3
0.7

1

100.0

35,235

0.5

1

100.0

38,433

0.5

1

96.5

22,024

0.3

1

92.8

21,352

0.3

1

100.0

28,739

0.4

1

100.0

25,590

0.3

1

100.0

30,531

0.4

1

100.0

30,846

0.4

1

100.0

26,498

0.4

1

95.3

25,440

0.3

1

98.2

28,227

0.4

1

100.0

28,095

0.4

1

98.0

31,523

0.4

1

100.0

31,434

0.4

1

99.3

90,774

1.2

1

97.9

91,811

1.2

1
1

94.0
93.4

42,83664,867

0.6
0.9

1
1

91.6
96.5

42,83963,222

0.6
0.9

1

92.2

40,017

0.5

1

98.0

39,489

0.5

1

90.1

30,522

0.4

1

89.9

29,380

0.4

1

97.5

159,543

2.2

1

96.4

158,737

2.2

1
1
1
1
1
1

98.7
92.8
97.0
96.9
98.7
97.7

36,93639,007
26,349100,949
47,653
100,791

0.5
0.5
0.4
1.4
0.7
1.4

1
1
1
1
1
1

92.8
97.1
97.0
98.8
96.0
98.3

36,26239,60726,018102,564
48,196
103,700

0.5
0.5
0.4
1.4
0.7
1.4

1

100.0

32,125

0.4

1

100.0

32,386

0.4

1

97.6

34,041

0.5

1

100.0

35,597

0.5

1

95.7

90,431

1.2

1

99.4

91,406

1.2

1
1
1

100.0
97.3
98.3

44,59749,531
33,553

0.6
0.7
0.5

1
1
1

94.5
98.7
98.3

44,91950,27532,250

0.6
0.7
0.4

1

98.6

69,316

1.0

1

98.9

72,077

1.0

1

98.1

31,687

0.4

1

100.0

34,293

0.5

1

95.7

66,998

0.9

1

95.4

66,305

0.9

1

98.0

37,179

0.5

1

100.0

37,600

0.5

1
1

94.2
98.1

131,338
34,067

1.8
0.5

1
1

95.3
98.1

136,023
33,595

1.8
0.5

1

96.4

131,837

1.8

1

95.8

130,124

1.8

1

98.2

51,393

0.7

1

98.2

52,644

0.7

1
1

92.0
90.5

26,13831,314

0.4
0.4

1
1

97.3
95.6

24,51331,292

0.3
0.4

1

95.2

120,332

1.7

1

99.0

122,141

1.7

1
1
1

100.0
95.0
96.0

78,35160,14624,980

1.1
0.8
0.3

1
1
1

99.0
98.0
96.0

73,97059,414
24,573

1.0
0.8
0.3

- 17 -

37

Status of Managed Assets of the Investment Corporation
14th Fiscal Period(from February 1, 2017 to July 31, 2017)

Other major cities

Tokyo metropolitan
area

Subcentral
Tokyo

Area

(Note 1)

(Note 2)38

Property name

COMFORIA BUNKYOHAKUSANCOMFORIA KAMATA
COLLEGE COURTHACHIMANYAMA
Subtotal
COMFORIA KOMAE
COMFORIA
YOKOHAMAKANNAICOMFORIA ICHIKAWAMYODENCOMFORIA YATSUKACOMFORIA SHINKOYASUCOMFORIA GYOTOKU
Subtotal
COMFORIA SHIN-OSAKACOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA KITASANJOCOMFORIA SAPPOROSHOKUBUTSUENCOMFORIA OGIMACHICOMFORIA SHINSAIBASHIEASTCOMFORIA KYOMACHIBORICOMFORIA AWAZA
Subtotal
Total

4. Statement of Renewable Energy Power Generation Facilities

15th Fiscal Period(from August 1, 2017 to January 31, 2018)

Ratio toRatio toOccupancy
Total number
Total number Occupancy rate Rent revenue
total
total
Rental revenue
rate(at end of period)of tenantsoftenants
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

97.0

37,316

0.5

1

95.8

36,992

0.5

1

98.4

151,874

2.1

1

100.0

30,046

0.4

1

97.7

162,406

2.2

1

100.0

30,222

0.4

2

96.7

2,936,272

40.4

2

97.2

2,951,752

40.1

1

97.1

19,489

0.3

1

95.3

18,852

0.3

1
1

96.7

42,262

0.6

1

96.4

41,6540.6

94.0

24,960

0.3

1

91.6

23,708

0.3

1

96.8

26,874

0.4

1

95.2

27,402

0.4

1

100.0

38,034

0.5

1

100.0

37,737

0.5

1

96.6

9,126

0.1

1

91.4

26,049

0.4

1

97.1

160,747

2.2

1

95.6

175,404

2.4

1

92.0

88,106

1.2

1

98.3

88,783

1.2

1

90.1

56,284

0.8

1

95.1

56,568

0.8

1

98.7

33,091

0.5

1

93.5

32,023

0.4

1

98.9

36,003

0.5

1

98.9

35,347

0.5

1

97.7

39,752

0.5

1

97.6

42,513

0.6

1

94.5

40,989

0.6

1

94.5

40,158

0.5

1

94.1

60,578

0.8

1

91.6

60,002

0.8

1

97.6

47,125

0.6

1

91.6

46,951

0.6

1

96.5

42,073

0.6

1

95.4

42,549

0.6

1

94.9

444,005

6.1

1

95.7

444,897

6.0

3
96.1
7,276,775
100.0
3
96.7
7,357,728
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 relationship). Therefore, in cases where the Investment Corporation or trustee comprehensively leases all of the rooms forrent 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, Mitsubishi Real Estate Services Co., Ltd. and MAINICHICOMNET Co., Ltd. are thethree master lease companies hired by the Investment Corporation for its assets under management; therefore, the sum of the total number of tenants
and subtotal of the total number of tenants in Central Tokyo is set as “3.” 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.

- 18 -

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, 2018
are 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)55,64541,245–55,64541,245–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 15th 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 Japan- 19 -

39

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 works 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.
Property name(location)
COMFORIA
MINAMISUNAMACHI(Koto-ku, Tokyo)
COMFORIA SHIBAURACANAL(Minato-ku, Tokyo)
COMFORIANISHISHINJUKU(Shinjuku-ku, Tokyo)

PurposeScheduled period

Expected amount of construction work
(thousands of yen)for
Total amount
Total amount Payment
the period
already paid

Large-scale repair work

From Apr. 2018
to Nov. 2018

Large-scale repair work

From Aug. 2018
to Dec. 2018

62,000Large-scale repair work

From Feb. 2018
to Jun. 2018

COMFORIA UENOHIROKOJI
Large-scale repair work
(Taito-ku, Tokyo)

From Feb. 2018
to Jun. 2018

Large-scale repair work

Asset management fee (Note)

7,309

Administrative service fees

25,98026,275

Directors’ compensation

56,500－－46,300－－2. Loan Status

41,000－The status of loans as of January 31, 2018 is as follows.
Balance at the

Type

－

PurposeConstruction cost(thousands of yen)

PeriodFrom Aug. 2017
to Jan. 2018
From Aug. 2017
to Dec. 2017
From Aug. 2017
to Dec. 2017

Large-scale repair work
Large-scale repair work

64,92755,56750,657

From Jan. 2018
to Jan. 2018

Interior fittings of guest rooms

10,107

From Aug. 2017
Replacement of air conditioning units
to Nov. 2017
From Aug. 2017
Painting of iron section in common area, etc.
to Jan. 2018

5,512
87,280274,053

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

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

14th Fiscal Period

15th Fiscal Period

From Aug. 1, 2015
to Jan. 31, 2016

From Feb. 1, 2016
to Jul. 31, 2016

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

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

From Aug. 1, 2017
to Jan. 31, 2018313,837

327,081

378,887

377,947

349,367

188,418

232,577

304,044

311,155

523,929

175,173

180,771304,984

339,736

544,411

327,081

378,887

377,947

349,367

328,884- 20 -

40

692,392－

3. Funding Reserved for Long-Term Repair Plans

Fiscal period

660,160－

Long-term loans (Note 1)

Total

3,600
221,735(Note) In addition to the amount stated above, asset management fees amounting to ¥108,945 thousand and ¥ 10,656 thousand in the 14th Fiscal Period and15th Fiscal Period, respectively, related to the acquisition of property are incorporated in the book value of each property．

The overview of main construction works corresponding to capital expenditure that took place in the 15th Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 15th Fiscal Period was ¥274,053
thousand. Together with repair expenses of ¥261,422 thousand that were classified as expenses for the 15th Fiscal Period,
construction works totaling ¥535,475 thousand were carried out.

Other properties, etc.

3,600
229,701

Other expenses

LenderBalance at theend of current
periodDrawdown beginning ofcurrent period
date(millions of yen) (millions of yen)

Large-scale repair work

433,472

6,682

－

－

2. Capital Expenditure during the Period

Property name(location)
COMFORIA HARAJYUKU(Shibuya-ku, Tokyo)
COMFORIA YOYOGIUEHARA(Shibuya-ku, Tokyo)
COMFORIA SENGOKU(Bunkyo-ku, Tokyo)
COMFORIA SHINJUKU EASTSIDETOWER(Shinjuku-ku, Tokyo)
COMFORIA SHIROKANETAKANAWA(Minato-ku, Tokyo)

394,196

Total

From Feb. 2018
to Jun. 2018

15th Fiscal Period
From Aug. 1, 2017 to Jan. 31, 2018

Asset custody fee

Short-termloans

COMFORIAHIGASHIIKEBUKURO(Toshima-ku, Tokyo)

110,000

Item(Thousands of yen)

14th Fiscal Period
From Feb. 1, 2017 to Jul. 31, 2017

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
The Tokyo Tomin Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Aug. 1,
2017

Mar. 23,2011

Feb. 3,2012

Sep. 4,2013
Sep. 30,
2013
Sep. 30,
2013

Feb. 4,2014

Feb. 4,2014

Jun. 30,
2014

3,570
3,570
3,570
1,785
1,090
1,090
1,090
1,090
1,090

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

250 0.23794
250 0.23794
250 0.23794 Jul. 31,
2018
250 0.23794

0.23794
0.53809
0.53809 Mar. 23, Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed
0.53809 2019
0.53809
1.41200
1.41200
1.41200
1.41200 Sep. 29, Lump-sum
Unsecured(Note 3)2017
repayment
Unguaranteed- 1.41200- 1.41200- 1.41200

2,000

2,000 0.79500

1,350
1,350

1,350 0.67075
1,350 0.67075

1,350

1,350 0.67075

600

600 0.67075

1,350

1,350 0.90487

1,000
1,000
1,000
1,000

1,000
1,000
1,000
1,000

Aug. 31, Lump-sum
Unsecured(Note 3)2018
repayment
Unguaranteed
Mar. 30, Lump-sum
Unsecured(Note 3)2018
repayment
Unguaranteed
Sep. 30,
2019

1,000

0.60700
0.60700
0.60700
Jan. 31,0.607002019
1,000 0.60700

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

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

500
670
670
670
670

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

130
3,570
3,570
3,570
1,785
-

550
300

1,000

Remarks(Note 2)0.60700
0.882400.882400.88240
Jan. 31,0.882402021
1,000 0.88240
500
670
670
670
670

670

0.882400.601500.601500.60150
Jun. 30,0.60150 2020
670 0.60150

350

350 0.60150

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 -

41

Status of Expenses and Liabilities

LenderDrawdown beginning ofcurrent perioddate

Balance at theend of current
periodLong-term loans (Note 1)(millions of yen) (millions of yen)

42

Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Shinkin Central Bank
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
The Tokyo Tomin Bank, Limited
Sumitomo Mitsui Trust Bank, Limited

Jun. 30,
2014

Feb. 3,2015

Feb. 3,2015

Feb. 3,2015

Feb. 3,2015

Feb. 2,
2016

Feb. 2,
2016

Feb. 2,
2016

Mar. 23,
2016

Averageinterest Maturity Repayment Use of
methodfunds
date
rate (%)

Remarks

Lender(Note 2)

910
910
910
910

910
910
910
910

910

910

450
750
750
750
600
600
600
600

450
750
750
750
600
600
600
600

600

600

300
620
620
620
620

300
620
620
620
620

620

620

310
620
620
620
620

310
620
620
620
620

620

620

310
360
360
360
360

310
360
360
360
360

360

360

200
420
420
420
420

200
420
420
420
420

420

420

230
490
490
490
490

230
490
490
490
490

490

490

220
1,570

220
1,570

0.677450.27125

1,570

1,570

1,000
785

1,000
785

0.27125 Mar. 31, Lump-sum
Unsecured(Note 3)2021
repayment
Unguaranteed
0.27125
0.27125- 22 -

Balance at theType

0.90100
0.90100
0.90100
Jun. 30,
0.90100 2022
0.90100

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.90100
0.30820
Mar. 30, Lump-sum
Unsecured(Note 3)0.308202018
repayment
Unguaranteed
0.308200.69250
0.69250
0.69250
Jan. 31, Lump-sum
Unsecured(Note 3)0.69250 2022
repayment
Unguaranteed
0.69250
0.69250
0.79875
0.79875
0.79875
Jan. 31,0.79875 2023
0.79875
0.79875
1.04200
1.04200
1.04200
Jan. 31,1.04200 2025
1.04200

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

1.04200
0.58430
0.58430
0.58430
Mar. 31, Lump-sum
Unsecured(Note 3)0.58430 2023
repayment
Unguaranteed
0.58430
0.58430
0.62460
0.62460
0.62460
Aug. 31, Lump-sum
Unsecured(Note 3)0.62460 2023
repayment
Unguaranteed
0.62460
0.62460
0.677450.677450.67745
Feb. 29,0.67745 2024
0.67745

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
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.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Total(Note 1)
(Note 2)

(Note 3)

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

Drawdown beginning ofcurrent perioddate

Balance at theend of current
period

2,000

2,000

0.61950

2,000

2,000

0.61950

1,000
580
580
580
580

1,000
580
580
580
580

0.61950
0.46655
0.46655
0.46655
Jul. 31,0.46655 2024

580

580

0.46655

290
900
900
900
900

290
900
900
900
900

0.46655
0.655180.655180.65518
Jul. 31,0.65518 2026

900

900

0.65518

450
2,000
1,500
1,000
500
500
580
580
580
580

450
2,000
1,500
1,000
500
500
580
580
580
580

580

580

0.62938

290
910
910
910
910

290
910
910
910
910

0.62938
0.79571
0.79571
0.79571Jan. 30,
0.79571 2026

910

910

0.79571450
97,620

450
570
570
570
570
570
300
570
570
570
570
570
300
98,750(millions of yen) (millions of yen)

Long-term loans (Note 1)

Balance at theType

Mar. 23,
2016

Aug. 1,
2016

Aug. 1,
2016

Jan. 31,2017

Feb. 2,2017Feb. 2,2017

Sep. 29,2017

Sep. 29,2017

Remarks(Note 2)Mar. 31, Lump-sum
Unsecured(Note 3)2025
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.65518
0.46691
0.46691
Jan. 31, Lump-sum
Unsecured(Note 3)0.466912022
repayment
Unguaranteed
0.46691
0.466910.62938
0.62938
0.62938
Jan. 31, Lump-sum
Unsecured(Note 3)0.62938 2024
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.795710.490540.490540.49054 Sep. 30, Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed
0.49054 2022
0.490540.490540.77571
0.77571
0.77571 Sep. 30, Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed
0.77571 2026
0.77571
0.77571

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 usage of funds includes purchasing properties in trust and the repayment of existing loans.

- 23 -

43

Status of Expenses and Liabilities

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, 2018 is as follows.
Issue

Issue
date

Balance at theAmountAmountBalance at the
beginning ofincreased indecreased in
end of current
current period
current period
current period
period(millions of yen) (millions of yen) (millions of yen) (millions of yen)

CouponMaturity Repayment Use of
rate
date
method funds(%)

Security

1st Unsecured Bond Jul. 30,(Note 1)
2014

3,000

－

－

Jul. 30, Lump-sum (Note 2)
3,000 0.64000
Unsecured2021
repayment

2nd Unsecured Bond Jul. 18,(Note 1)
2017

1,000

－

－

1,000 0.23000

Jul. 15, Lump-sum (Note 2)
Unsecured2022
repayment

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

2,000

－

－

2,000 0.52000

Jul. 16, Lump-sum (Note 2)
Unsecured2027
repayment

Total

6,000

－

－

6,000

(Note 1)
(Note 2)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.

4. Short-Term Investment Corporation Bonds
5. Investment Unit Acquisition Rights

Sale

Acquisitiondate

Acquisition price(millions of yen)

COMFORIA SHIBAURA

Aug. 1, 2017

1,065

–

–

–

–

Total

–

1,065

–

–

–

–

Sale date

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

(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.

2. Purchase and Sale of Other Assets
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.
Acquisitionor saleNot applicable

Acquisition

Property name

Type of asset

Property nameAcquisition orsale date

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

COMFORIA SHIBAURA
Aug. 1, 2017
1,065
1,100
(1)
Jun. 30, 2017
Acquisition
Real estate(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 appraiser handling the real estate appraisal of each property is Japan Valuers Co., Ltd.

Not applicable(2) Other
Of the transactions carried out by the Investment Corporation, there were no other transactions than those shown in the
aforementioned “(1) Real estate, etc.” that were deemed to require an appraisal pursuant to the provisions of Article 201 of theInvestment Trust Act.

- 25 -

44- 24 -

45

Purchase and Sale during the Period

Accounting Status
Accounting Status

4. Transactions with Related Parties

1. Assets, Liabilities, Principal and Profit/Loss(1) Information on transaction
Not applicable

Please refer to “1. Balance Sheets,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statementsof Cash Distributions,” “5. Statements of Cash Flows,” and “6. Notes.”(2) Amount of commission paid
Category

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

2. Changes in the Calculation Method of Depreciation

Breakdown of transaction with related parties
Payee

Property management
entrustment costs

324,387

55.0

589,753 TS Community Co., Ltd.

24,637

4.2

Tokyu Community Corp.

3,370

0.6

Marketing-related
expenses

148,556 Tokyu Livable, Inc.

845

0.6

Tokyu Sports Oasis, Inc.

9,107

5.7

158,645 TS Community Co., Ltd.

2,975

1.9

Other expenses related
to rent businessTokyu Housing Lease Corporation

Amount of payment(B)(thousands of yen)

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

2,830
1.8
Tokyu Redesign Corporation(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.
(3) Major payments to other related parties
Tokyu Redesign Corporation¥17,591 thousand (repair work, etc.)
Ewel Inc.
¥2,219 thousand (system usage, etc.)
Tokyu Community Corp.
¥574 thousand (repair work)
TS Community Co., Ltd.
¥540 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.

Not applicable

3. Changes in the Appraisal Method of Real Estate, etc.
Not applicable

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

2. Notices(1) Unitholders’ Meeting
Not applicable(2) Board of Directors of the Investment Corporation
The main overviews of the major conclusion and change of contracts that were approved by the Board of Directors of the Investment
Corporation during current period are as follows.
Approval date

MatterOverview

A new investment unit underwriting contract with Mizuho Securities
Conclusion of a new investment unit
Co., Ltd. and four other companies (Note) for the issuance of newunderwriting contract pertaining toinvestment units and the sale of investment units that were approved
the issuance of new investment units
at the Board of Directors' meetings held on January 5, 2018 andJanuary 5, 2018
and the sale of investment units, andJanuary 17, 2018, as well as a new investment unit purchase contract
the conclusion of a new investment
pertaining to the Green Shoe option with the book runner (Mizuho
unit purchase contract with regard to
Securities Co., Ltd.) were concluded as of January 17, 2018,
the Green Shoe option
respectively.
(Note) Other than Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc., which are co-lead managers, Daiwa Securities
Co. Ltd., Nomura Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

3. Disclosure on Overseas Property-Owning Corporations
Not applicable

4. Disclosure on Real Estate Owned by Overseas Property-Owning Corporations
Not applicable

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

- 27 -

46- 26 -47

Ⅰ
Ⅰ
Ⅰ. Financial Section
III. Financial Section
1. Balance Sheets(Thousands of yen)(Thousands of yen)
14th Fiscal Period(As of July 31, 2017)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
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
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

15th Fiscal Period(As of January 31, 2018)

6,696,439
6,483,562
7,669
382,164
17,604446
13,587,887

7,558,727
6,485,103
5,583
362,231460
14,412,107

1,895,903(87,598)
1,808,305
21,514(2,367)
19,146
17,687(639)
17,048
1,628
(217)
1,411
2,405,775
88,468,161(7,476,802)
80,991,359
1,130,260(229,113)
901,146
1,557,509(198,577)
1,358,931
184,869(52,433)
132,435
100,224,324
187,859,884

2,102,140(111,718)
1,990,421
23,641(3,146)
20,495
17,687(913)
16,773
2,505
(381)
2,123
3,340,008
88,659,442(8,520,430)
80,139,011
1,147,865(257,757)
890,107
1,557,509(226,048)
1,331,461
247,203(70,450)
176,752
100,224,324
188,131,480

1,200,572
16,027
1,216,600

1,192,006
13,2491,205,256

1,507,223
869,545
2,376,768
191,453,253

1,507,223
844,322
2,351,545
191,688,282

47,00533,57780,583205,121,723

39,59431,32770,922
206,171,312

14th Fiscal Period(As of July 31, 2017)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans 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

15th Fiscal Period(As of January 31, 2018)

721,526
13,200,000
37,987135,273
5,888
1,162,151
12,302
15,275,131

574,283
1,130,000
14,400,000
28,185
145,374
6,038
21,405
1,177,208
1,983
17,484,478

6,000,000
84,420,000
22,3142,049,904
95,182
777
92,588,178
107,863,309

6,000,000
83,220,000
24,6592,051,681
95,775388
91,392,504
108,876,983

94,557,898

94,557,898

92,17092,17061,846
61,8462,608,344

2,674,584

2,700,515
97,258,413*1 97,258,413
205,121,723

2,736,430
97,294,329*1 97,294,329
206,171,312

- 1 -

48

- 2 -

49

2. Statements of Income

3. Statements of Changes in Unitholders’ Equity(Thousands of yen)
14th Fiscal Period(From February 1, 2017
to July 31, 2017)

Operating revenue
Lease business revenue
Other lease business revenue
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
Reimbursement of property tax
Other
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
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1 6,996,758*1 7,103,412

7,276,775

7,357,728*1 3,518,418*1 3,496,351*1 280,016

394,196
3,600
13,842
6,682
25,980215,859
4,178,578
3,098,197

14th Fiscal Period (From February 1, 2017 to July 31, 2017)15th Fiscal Period(From August 1, 2017
to January 31, 2018)

Surplus
Unitholders'
capital*1 254,315

433,472
3,600
13,842
7,309
26,275
207,893
4,188,744
3,168,984

54
964
1,019

60
1,292
678
62
2,094

338,375
118,553
10,047

326,980
128,011
15,958

1,634

3,002

16,894
485,506
2,613,710
2,613,710
5,896
(403)
5,493
2,608,216
127
2,608,344

16,89419
490,8672,680,212
2,680,212
6,047
(402)
5,645
2,674,567
17
2,674,584

Balance at beginning ofcurrent period- 3 -82,743,523

Voluntary retained
earnings
Reserveforreduction
entry

Total
voluntary
retainedearnings

92,17092,170

Unappropriatedretainedearnings(undisposed
loss)
2,336,057

Total net assets

Total surplus

Totalunitholders'equity2,428,227

85,171,751

85,171,751

11,814,374

11,814,374

Changes of items during
periodIssuance of new
investment units

11,814,374

Dividends of surplus
Profit(2,335,929)
2,608,216(2,335,929)
2,608,216(2,335,929)
2,608,216(2,335,929)
2,608,216

Total changes of items
during period

11,814,374－－

272,287

272,287

12,086,661

12,086,661

Balance at end of current
period*1 94,557,898

92,17092,1702,608,344

2,700,515

97,258,413

97,258,413

15th Fiscal Period (From August 1, 2017 to January 31, 2018)(Thousands of yen)

Unitholders' equity
Surplus
Voluntary retained
earnings

Total net assets

Total surplus

Totalunitholders'equity2,608,344

2,700,515

97,258,413

97,258,413

30,323－－－

Dividends of surplus(2,638,651)(2,638,651)(2,638,651)(2,638,651)

Profit

2,674,567

2,674,567

2,674,567

2,674,567

Unitholders'
capitalBalance at beginning ofcurrent period

94,557,898

Unappropriatedretainedearnings(undisposed
loss)

92,170(30,323)

Reserveforreduction
entry

Total
voluntary
retainedearnings

92,170(30,323)

Changes of items during
periodReversal of reserve for
reduction entry

Total changes of items
during period
Balance at end of current
period50(Thousands of yen)

Unitholders' equity－(30,323)(30,323)

66,23935,91535,91535,915*1 94,557,898

61,846

61,846

2,674,584

2,736,430

97,294,329

97,294,329

- 4 -

51

4. Statements of Cash Distributions

5. Statements of Cash Flows
14th Fiscal Period(From February 1, 2017
to July 31, 2017)15th Fiscal Period(From August 1, 2017
to January 31, 2018)

I. Unappropriated retained earnings
II. Reversal of Voluntary retained
earnings
Reversal of reserve for reduction entry¥2,608,344,833¥2,674,584,344¥30,323,941¥24,568,879

III. Distributions¥2,638,651,614¥2,698,966,872

Category[Distribution per unit]
IV. Retained earnings carried forward
Method for calculating distributions

52[¥4,681]¥17,160
The Investment Corporation will makecash distributions using accounting
profits up to the amount of total surplus
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation,in an amount that exceeds 90% of the“amount of distributable profit” of theInvestment 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¥2,638,651,614 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings after adding reversal of reserve
for reduction entry.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

- 5 -[¥4,788]¥186,351
The Investment Corporation will makecash distributions using accounting
profits up to the amount of total surplus
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation,in an amount that exceeds 90% of the“amount of distributable profit” of theInvestment 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¥2,698,966,872 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings after adding reversal of reserve
for reduction entry.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

(Thousands of yen)
14th Fiscal Period(From February 1, 2017
to July 31, 2017)

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
Decrease (increase) in consumption taxes refund receivable
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
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
Proceeds from collection of lease and guarantee deposits
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
Increase in short-term loans payable
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- 6 -15th Fiscal Period(From August 1, 2017
to January 31, 2018)

2,613,710
1,141,111
118,553
1,634
16,894(54)(964)
348,423
5,490(25,396)(17,604)(12,057)
37,208399
12,25887,967(56,990)
9,999
4,280,585
54(348,046)(5,729)3,926,864

2,680,212
1,155,394
128,011
3,002
16,894(60)(1,292)342,938
2,085
25,686
17,604
21,405(54,526)(5,542)
3,243
15,057
6,167(10,154)
4,346,12760(342,930)(5,897)
3,997,359(1,655)(20,456,767)
(720)
900
(29)
3,343
(2,164)
386,952(227,481)(20,297,622)(1,142,038)(358,268)
(360)
3,890
(1,782)
203,508(219,531)(1,514,583)

1,000,000(1,000,000)
10,027,282(4,540,000)
2,979,381
11,782,674(2,336,119)(8,893)
17,904,325
1,533,567
11,646,434*1 13,180,002

1,130,000
6,200,192(6,300,000)(3,210)(2,637,568)(8,359)(1,618,947)
863,829
13,180,002*1 14,043,831

53

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 utilized in the
preparation of financial
statements

2–70 years
2–64 years
10–34 years
3–15 years(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(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.

54

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.

- 7 -(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(2) Accounting method for consumption tax
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.

<Notes to the Balance Sheets>*1. Minimum net assets pursuant to Article 67-4 of the Act on Investment Trusts and Investment Corporations
14th Fiscal Period(As of July 31, 2017)15th Fiscal Period(As of January 31, 2018)

50,0002.

(Thousands of yen)

50,000Commitment line agreement
The Investment Corporation has the commitment line contracts with four banks.

(Thousands of yen)

14th Fiscal Period(As of July 31, 2017)15th Fiscal Period(As of January 31, 2018)

Credit limit
Outstanding debt-

10,000,000-

Unused commitment line-

10,000,000<Notes to the Statements of Income>*1. Breakdown of real estate rental revenues and expenses(Thousands of yen)
14th Fiscal Period(From February 1, 2017
to July 31, 2017)

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)

6,843,578
153,179
160,652
119,364

6,996,758
280,016
7,276,775

15th Fiscal Period(From August 1, 2017 toJanuary 31, 2018)

6,952,089
151,323
144,703
109,612617,302589,753

282,191
697,599
297,151
6,608
100,251
174,50944,572
1,137,997
160,233

261,422698,339
326,580
5,739
109,217
148,556
44,8801,152,256
159,605

3,518,418
3,758,357- 8 -7,103,412
254,315
7,357,728

3,496,351
3,861,377

55

<Notes to the Statements of Changes in Unitholders’ Equity>*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

2.
14th Fiscal Period(From February 1, 2017
to July 31, 2017)15th Fiscal Period(From August 1, 2017
to January 31, 2018)

Carrying value
8,000,000 units

8,000,000 units

563,694 units

563,694 units<Notes to lease transactions>
1. Operating lease transactions (Lessee)
Future minimum lease payments under non-cancelable operating lease transactions
14th Fiscal Period(As of July 31, 2017)
1,364,328
81,041,083
82,405,411

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

Due within 1 year
Due after 1 year
Total

14th Fiscal Period(As of July 31, 2017)249,570
500,451
750,022

6,696,439

6,696,439－(2) Cash and deposits in trust

6,483,562

6,483,562－(4) Current portion of long-term loans payable(13,200,000)(13,225,382)

25,382(5) Investment corporation bonds(6,000,000)(6,055,925)

55,925(6) Long-term loans payable(84,420,000)(84,981,705)

561,705－－－(7) Derivative transactions

The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of January
31, 2018 are as follows.
(Thousands of yen)
Carrying value(Thousands of yen)
15th Fiscal Period(As of January 31, 2018)242,650
430,617673,268(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.

- 9 -Fair value(Note 1)(Thousands of yen)
15th Fiscal Period(As of January 31, 2018)
1,364,328
80,358,919
81,723,247

Difference(Note 1)

(1) Cash and deposits

Difference(Note 1)

(1) Cash and deposits

7,558,727

7,558,727－(2) Cash and deposits in trust

6,485,103

6,485,103－(3) Short-term loans payable(1,130,000)(1,130,000)－(4) Current portion of long-term loans payable(14,400,000)(14,425,683)

25,683(5) Investment corporation bonds(6,000,000)(6,049,591)

49,591(6) Long-term loans payable(83,220,000)(83,694,376)

474,376–––(7) Derivative transactions(Note 1)
(Note 2)

<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.

56

Fair value(Note 1)

<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)
14th Fiscal Period
15th Fiscal Period(From February 1, 2017
(From August 1, 2017
to July 31, 2017)
to January 31, 2018)
Cash and deposits
6,696,439
7,558,727
Cash and deposits in trust
6,483,562
6,485,103
Cash and cash equivalents
13,180,002
14,043,831

Due within 1 year
Due after 1 year
Total

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 31,2017 are as follows.
(Thousands of yen)

(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) Short-term loans payable
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.
(4) Current portion of long-term loans payable and (6) 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.
(5) 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.
(7) 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)
14th Fiscal Period(As of July 31, 2017)(1) Tenant leasehold and security deposits(2) Tenant leasehold and security deposits in trust

15th Fiscal Period(As of January 31, 2018)(22,314)(24,659)(2,049,904)(2,051,681)(1)(2) Fair value of tenant leasehold and security deposits and leasehold and security deposits in trust is 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.

- 10 -

57

(Note 4)2.

Redemption schedule for monetary claims (Thousands of yen)
14th Fiscal Period (As of July 31, 2017)

Transactions subject to hedge accounting
14th Fiscal Period (As of July 31, 2017)(Thousands of yen)Due in 1 year or less
Deposits

6,696,439

Deposits in trust

6,483,562

Total

13,180,002

15th Fiscal Period (As of January 31, 2018)

Fair value

Calculation
method for
applicable fair
value

(*2)

–

Contract amount

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)

Total

Maturing after 1 year
55,645,000

48,745,000

55,645,000

48,745,000––

Due in 1 year or less

(Note 5)

Deposits

7,558,727

Deposits in trust

6,485,103

Total

14,043,831

15th Fiscal Period (As of January 31, 2018)

Repayment and redemption schedule for loans payable and investment corporation bonds (Thousands of yen)
14th Fiscal Period (As of July 31, 2017)

Current portion of
long-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total

Due in 1 year
or less

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

13,200,000

－

－

－

－

－

－

19,995,000

5,050,000

10,425,000

13,800,000

35,150,000

－

－

－

3,000,000

1,000,000

2,000,000

13,200,000

19,995,000

5,050,000

13,425,000

14,800,000

37,150,000

Due in 1 year
or less

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

1,130,000

－

－

－

－

－

14,400,000

－

－

－

－

－

－

13,845,000

9,200,000

13,725,000

11,560,000

34,890,000

－

－

－

3,000,000

1,000,000

2,000,000

15,530,000

13,845,000

9,200,000

16,725,000

12,560,000

36,890,000

15th Fiscal Period (As of January 31, 2018)

Short-term loans
payableCurrent portion of
long-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total<Notes to investment securities>
14th Fiscal Period (As of July 31, 2017)
Not applicable
15th Fiscal Period (As of January 31, 2018)
Not applicable

Type of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable

Total

(*1)

55,645,000

41,245,000

55,645,000

41,245,000- 11 -

–

(*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 “(4) Current portion of long-term loans payable” and “(6)Long-term loans payable” in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”<Notes to retirement benefits>
14th Fiscal Period (As of July 31, 2017)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
15th Fiscal Period (As of January 31, 2018)
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(Thousands of yen)
14th Fiscal Period(As of July 31, 2017)

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<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
14th Fiscal Period (As of July 31, 2017)
Not applicable
15th Fiscal Period (As of January 31, 2018)
Not applicable

58

Hedge accounting
method(Thousands of yen)Calculation
Contract amountmethod for
Fair value
applicable fair
Maturing after 1 yearvalue

- 12 -

15th Fiscal Period(As of January 31, 2018)
446
8,890
32,93342,270(41,824)446

460
11,85433,13845,453(44,992)
460

(777)

(388)

(777)
(330)

(388)
71

59

2.

Significant differences between the statutory tax rate and the effective tax rate(%)

14th Fiscal Period(As of July 31, 2017)
Statutory tax rate
(Adjustments)
Deductible cash distributions
Other
Effective tax rate

34.81

34.81

(35.14)0.54
0.21(35.05)0.45
0.21<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable
15th Fiscal Period (From August 1, 2017 to January 31, 2018)
Not applicable3.

Affiliated companies and other14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable
15th Fiscal Period (From August 1, 2017 to January 31, 2018)
Not applicable(Thousands of yen)
14th Fiscal Period(From February 1, 2017
to July 31, 2017)
Balance at beginning of period
Increase due to purchase of property, plant andequipment
Adjustment due to passage of time
Balance at end of period

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.

－

－

589

593

95,182

95,77515th Fiscal Period(From August 1, 2017
to January 31, 2018)

Balance at beginning of period

169,546,806

189,060,457

Changes during period

19,513,651

263,030

Balance at end of period

189,060,457

189,323,487

Fair value at end of period

218,880,000

220,729,000(Note 2)

1.

95,182

Book value

14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable<Notes to asset retirement obligations>

94,59214th Fiscal Period(From February 1, 2017
to July 31, 2017)

Fellow subsidiary companies and other

Directors, major individual unitholders and other14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable
15th Fiscal Period (From August 1, 2017 to January 31, 2018)
Not applicable

15th Fiscal Period(From August 1, 2017
to January 31, 2018)<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)

(Note 1)

15th Fiscal Period (From August 1, 2017 to January 31, 2018)
Not applicable
4.

Changes in the total amount of asset retirement obligations

15th Fiscal Period(As of January 31, 2018)<Notes to equity in net earnings (losses) of affiliated companies>
14th Fiscal Period (From February 1, 2017 to July 31, 2017)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
15th Fiscal Period (From August 1, 2017 to January 31, 2018)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.

2.

3.

(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 14th Fiscal Period, the principal increase consisted of
the acquisition of nine properties including COMFORIA AKIHABARA EAST and eight other properties during the 14th Fiscal Period totaling¥20,268,232 thousand, while the principal decrease consisted of depreciation of ¥1,137,408 thousand. During the 15th Fiscal Period, theprincipal increase consisted of the acquisition of a property (COMFORIA SHIBAURA, ¥1,140,640 thousand) during the 15th Fiscal Period, while
the principal decrease consisted of depreciation of ¥1,151,663 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 14th Fiscal Period (From February 1, 2017 to July 31, 2017)
and 15th Fiscal Period (From August 1, 2017 to January 31, 2018) 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)
14th Fiscal Period (From February 1, 2017 to July 31, 2017)
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 accounts for 10% or more of operating
revenues on the Statements of Income.
15th Fiscal Period (From August 1, 2017 to January 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.

60- 13 -- 14 -

61

2.

3.

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.
Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.

<Notes to per unit information>

Net assets per unit

14th Fiscal Period(From February 1, 2017
to July 31, 2017)¥172,537

15th Fiscal Period(From August 1, 2017
to January 31, 2018)¥172,601¥4,629¥4,744

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)

14th Fiscal Period(From February 1, 2017
to July 31, 2017)
2,608,216

15th Fiscal Period(From August 1, 2017
to January 31, 2018)
2,674,567－－

2,608,216

2,674,567

563,416

563,694

7. Supplementary schedules(i) Supplementary schedule of investment securities
Not applicable(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, 2018 is as follows.
(Thousands of yen)Classification

Type

Over-the-counter transactions

Receive floating, pay fixedinterest-rate swap transactions

Total(Note 1)
(Note 2)Issuance of New Investment Units through Public Offering (Primary Offering)Number of investment units issued:
Issue price:

22,190 units¥233,132 per unit

Total issue amount:
Paid-in amount (issue value):¥5,173,199,080¥225,600 per unit

Total paid-in amount (issue value):
Payment date:¥5,006,064,000
February 1, 2018

Issuance of New Investment Units Offered by Way of Third-Party Allotment
Number of investment units offered:
Paid-in amount (issue value):

1,110 units¥225,600 per unit

Total paid-in amount (issue value):
Payment date:¥250,416,000
February 15, 2018

Allottee:Mizuho Securities Co., Ltd.

Property, plant and equipment

party allotment, respectively. As a result, unitholders’ capital increased to ¥99,814,378,532, with the number of investment units
issued and outstanding at 586,994 units.

41,245,000–

55,645,000

41,245,000–(Thousands of yen)

Asset type

Buildings

1,895,903

206,236-

2,102,140

111,718

24,1201,990,421

21,514

2,127-

23,641

3,146

779

20,495

17,687--

17,687913

274

16,773

1,628

876

-

2,505

381

164

2,123

2,405,775

934,232-

3,340,008--

3,340,008

88,468,161

191,280-

88,659,442

8,520,430

1,043,627

80,139,011

1,130,260

17,605-

1,147,865

257,757

28,643890,107

1,557,509--

1,557,509

226,048

27,4701,331,461

184,869

62,334-247,20370,45018,017

176,752

Structures
Machineryand equipment
Tools,
furniture andfixtures
Land
Buildings in
trust
Structures intrust
Machineryand equipmentin trust
Tools,
furniture andfixtures intrust
Land in trust

IncreaseduringperiodorBalance at end
Depreciation Net balance ataccumulatedof current
end of current Remarksoramortization
periodperiodamortization
at end ofduringcurrent
periodperiodBalance at
beginning ofcurrent period

Decreaseduringperiod100,224,324--

100,224,324--

100,224,324

Total
Leaseholdrights in trust
Other

195,907,635

1,414,693-

197,322,328

9,190,848

1,143,097

188,131,480

1,226,269--

1,226,269

34,262

8,565

1,192,006

31,144360-

31,504

18,254

3,138

13,249Total

1,257,413

360-

1,257,773

52,517

11,703

1,205,256(Note)(Note)(Note) Increases during the 15th Fiscal Period are due primarily to the acquisition of real estate for rental purposes. The details are as follows.

(Thousands of yen)

COMFORIA SHIBAURA- 15 -

55,645,000

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.

Property name62

(Note 2)

Accumulated depreciation

Intangible
assetsconcerning the issuance of new investment units as described below. Payment completed on February 1, 2018 for the newinvestment units issued through public offering and on February 15, 2018 for the new investment units offered by way of third-

Fair value(iii) Condensed supplementary schedule of real estate properties<Notes to significant subsequent events>
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meetings held on January 5, 2018 and January 17, 2018

Contract amount (Note 1)
Maturing after 1
year

Increase during period
1,140,640- 16 -

63

(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of January 31, 2018 is as follows:(iv) Supplementary schedule of other specified assets
Not applicable

Classification(v) Supplementary schedule of investment corporation bonds

The Investment
Corporation
1st unsecured
bonds

Issuancedate

July 30,
2014

Increaseduring period

3,000,000

Balance at
end ofcurrent
periodDecreaseduringperiod--3,000,000

Couponrate (%)

0.64000

Redempt
ion date

July 30,
2021

Use offunds(Note 2)

Security

Unsecured(Note 1)The Investment
Corporation
2nd unsecured
bonds

July 18,
2017

The Investment
Corporation
3rd unsecured
bonds

July 18,2017

1,000,000--

1,000,000

0.23000

July 15,2022(Note 2)

LenderShort-term loans payable

Bond name

Balance at
beginningof current
period(Thousands of yen)Unsecured(Note 1)--2,000,000

0.52000

July 16,2027(Note 2)

Unsecured(Note 1)

Total
(Note 1)
(Note 2)
(Note 3)6,000,000--

6,000,000

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 in 1 year
or less

Due after 1 year
to 2 years-

Due after 2 years
to 3 years-

Due after 3 years
to 4 years-

3,000,000

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

Due after 5 years
2,000,000

Long-term loans payable (Note 1)

2,000,000

Mizuho Trust & Banking Co., Ltd.

-

250,000-

250,000

0.23794

Sumitomo Mitsui Trust Bank, Limited-

250,000-

250,000

0.23794-

250,000-

250,000

0.23794-

250,000-

250,000

0.23794
0.23794

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation-

130,000-

130,000

Subtotal-

1,130,000-

1,130,000-

Mizuho Bank, Ltd.

3,570,000--

3,570,000

0.53809

Sumitomo Mitsui Trust Bank, Limited

3,570,000--

3,570,000

0.53809

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)

3,570,000--

3,570,000

0.53809

Sumitomo Mitsui Banking Corporation

1,785,000--

1,785,000

0.53809

Development Bank of Japan Inc.

1,090,000-

1,090,000-

1.41200

Mizuho Bank, Ltd.

1,090,000-

1,090,000-

1.41200

Sumitomo Mitsui Trust Bank, Limited

1,090,000-

1,090,000-

1.41200

1,090,000-

1,090,000-

1.41200

1,090,000-

1,090,000-

1.41200

Sumitomo Mitsui Banking Corporation

550,000-

550,000-

1.41200

The Tokyo Tomin Bank, Limited

300,000-

300,000-

1.41200

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000--

2,000,000

0.79500

Mizuho Bank, Ltd.

1,350,000--

1,350,000

0.67075

1,350,000--

1,350,000

0.67075

1,350,000--

1,350,000

0.67075

600,000--

600,000

0.67075

1,350,000--

1,350,000

0.90487

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

64

- 17 -

Balance atBalance at end
Increase
Average
Decrease
beginning ofof current
during period during periodinterest ratecurrent period
period(%)(thousands of (thousands of(thousands of(thousands of(Note 2)
yen)
yen)
yen)
yen)

- 18 -

Maturity
date

Repayment
methodUse offunds

Remarks

July 31,2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

-

-

-

-

March 23,
2019

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

September
29, 2017

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

August 31,
2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

March 30,
2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

September
30, 2019

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed65

Classification
LenderRepayment
methodUse offunds

Classification
Remarks

LenderBalance atBalance at end
Increase
Average
Decrease
beginning ofof current
Repayment
during period during periodinterest ratecurrent period
periodMaturity datemethod(thousands of (thousands of(%)(thousands of(thousands of(Note 2)
yen)
yen)
yen)
yen)

1,000,000--

1,000,000

0.60700

Development Bank of Japan Inc.

360,000--

360,000

0.58430Mizuho Bank, Ltd.

1,000,000--

1,000,000

0.60700

Mizuho Bank, Ltd.

360,000--

360,000

0.58430

Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

0.60700

Sumitomo Mitsui Trust Bank, Limited

360,000--

360,000

0.58430

1,000,000--

1,000,000

0.60700

360,000--

360,000

0.58430

1,000,000--

1,000,000

0.60700

360,000--

360,000

0.58430

500,000--

500,000

0.60700

Sumitomo Mitsui Banking Corporation

200,000--

200,000

0.58430Development Bank of Japan Inc.

1,000,000--

1,000,000

0.88240Development Bank of Japan Inc.

420,000--

420,000

0.62460Mizuho Bank, Ltd.

1,000,000--

1,000,000

0.88240

Mizuho Bank, Ltd.

420,000--

420,000

0.62460

Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

0.88240

Sumitomo Mitsui Trust Bank, Limited

420,000--

420,000

0.62460

1,000,000--

1,000,000

0.88240

420,000--

420,000

0.62460

1,000,000--

1,000,000

0.88240

420,000--

420,000

0.62460

Sumitomo Mitsui Banking Corporation

500,000--

500,000

0.88240

Sumitomo Mitsui Banking Corporation

230,000--

230,000

0.62460

Development Bank of Japan Inc.

670,000--

670,000

0.60150Development Bank of Japan Inc.

490,000--

490,000

0.67745

Mizuho Bank, Ltd.

670,000--

670,000

0.60150

Mizuho Bank, Ltd.

490,000--

490,000

0.67745

Sumitomo Mitsui Trust Bank, Limited

670,000--

670,000

0.60150

Sumitomo Mitsui Trust Bank, Limited

490,000--

490,000

0.67745490,000--

490,000

0.67745490,000--

490,000

0.67745

220,000--

220,000

0.67745Development Bank of Japan Inc.

1,570,000--

1,570,000

0.27125

Mitsubishi UFJ Trust and Banking
Corporation

1,570,000--

1,570,000

0.27125

The Tokyo Tomin Bank, Limited

1,000,000--

1,000,000

0.27125

785,000--

785,000

0.27125

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

670,000--

670,000

0.60150

670,000--

670,000

0.60150

Sumitomo Mitsui Banking Corporation

350,000--

350,000

0.60150Development Bank of Japan Inc.

910,000--

910,000

0.90100

Mizuho Bank, Ltd.

910,000--

910,000

0.90100

Sumitomo Mitsui Trust Bank, Limited

910,000--

910,000

0.90100

910,000--

910,000

0.90100

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

January 31,
2019

January 31,
2021

June 30,
2020

June 30,2022

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment

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

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Long-term loans payable (Note 1)

Sumitomo Mitsui Banking Corporation

Long-term loans payable (Note 1)

Maturity
date

Development Bank of Japan Inc.

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

910,000--

910,000

0.90100

Development Bank of Japan Inc.

2,000,000--

2,000,000

0.61950

Sumitomo Mitsui Banking Corporation

450,000--

450,000

0.90100

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000--

2,000,000

0.61950

Shinkin Central Bank

750,000--

750,000

0.30820

Sumitomo Mitsui Trust Bank, Limited

The Norinchukin Bank

750,000--

750,000

0.30820

The Bank of Fukuoka, Ltd.

750,000--

750,000

Development Bank of Japan Inc.

600,000--

600,000

Mizuho Bank, Ltd.

600,000--

600,000

0.69250

Sumitomo Mitsui Trust Bank, Limited

600,000--

600,000

0.69250

600,000--

600,000

0.69250

600,000--

600,000

Sumitomo Mitsui Banking Corporation

300,000--

Development Bank of Japan Inc.

620,000-

Mizuho Bank, Ltd.

620,000-

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

0.61950Development Bank of Japan Inc.

580,000--

580,000

0.46655

0.30820

Mizuho Bank, Ltd.

580,000--

580,000

0.46655

0.69250

Sumitomo Mitsui Trust Bank, Limited

580,000--

580,000

0.46655

580,000--

580,000

0.46655

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation--

580,000

0.46655--

290,000

0.46655

0.69250Development Bank of Japan Inc.

900,000--

900,000

0.65518

300,000

0.69250

Mizuho Bank, Ltd.

900,000--

900,000

0.65518-620,000

0.79875

Sumitomo Mitsui Trust Bank, Limited

900,000--

900,000

0.65518-620,000

0.79875

900,000--

900,000

0.65518

900,000--

900,000

0.65518

450,000--

450,000

0.65518--620,000

0.79875-

620,000

0.79875

620,000--

620,000

0.79875

Sumitomo Mitsui Banking Corporation

310,000--

310,000

0.79875

Development Bank of Japan Inc.

620,000--

620,000

1.04200

Mizuho Bank, Ltd.

620,000--

620,000

1.04200

Sumitomo Mitsui Trust Bank, Limited

620,000--

620,000

1.04200

620,000--

620,000

1.04200

620,000--

620,000

1.04200

310,000--

310,000

1.04200- 19 -(Note 3)290,000-

Sumitomo Mitsui Banking Corporation

Lump-sum
repayment

580,000

620,000

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

March 30,
2018

Sumitomo Mitsui Banking Corporation

620,000

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

66

Balance atBalance at end
Increase
Average
Decrease
beginning ofof current
during period during periodinterest rate
periodcurrent period(thousands of (thousands of(%)(thousands of(thousands of(Note 2)
yen)
yen)
yen)
yen)

January 31,
2022

Lump-sum
repayment(Note 3)January 31,
2023

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

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Use offunds

Remarks

March 31,2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

August 31,
2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

February 29, Lump-sum
2024
repayment(Note 3)

Unsecured
Unguaranteed

March 31,2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

March 31,2025

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

July 31,2024

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

July 31,2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Unsecured
Unguaranteed- 20 -

67

Balance atBalance at end
Increase
Decrease
Average
beginning ofof current
during period during periodinterest ratecurrent period
period(thousands of (thousands of(%)(thousands of(thousands ofyen)(Note 2)
yen)
yen)
yen)

Classification
LenderMizuho Trust & Banking Co., Ltd.

2,000,000--

2,000,000

0.46691

The Norinchukin Bank

1,500,000--

1,500,000

0.46691

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.46691

The 77 Bank, Ltd.

500,000--

500,000

0.46691

The Daishi Bank, Ltd.

500,000--

500,000

0.46691

Development Bank of Japan Inc.

580,000--

580,000

0.62938

Mizuho Bank, Ltd.

580,000--

580,000

0.62938

Sumitomo Mitsui Trust Bank, Limited

580,000--

580,000

0.62938

580,000--

580,000

0.62938

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

580,000--

580,000

0.62938

Sumitomo Mitsui Banking Corporation

290,000--

290,000

0.62938

Development Bank of Japan Inc.

910,000--

910,000

0.79571

Mizuho Bank, Ltd.

910,000--

910,000

0.79571

Sumitomo Mitsui Trust Bank, Limited

910,000--

910,000

0.79571910,000--

910,000

0.79571

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

910,000--

910,000

0.79571

450,000--

450,000

0.79571

Development Bank of Japan Inc.

-

570,000-

570,000

0.49054

Mizuho Bank, Ltd.

-570,000-

570,000

0.49054

Sumitomo Mitsui Trust Bank, Limited-

570,000-

570,000

0.49054-570,000-

570,000

0.49054-570,000-

570,000

0.49054

Sumitomo Mitsui Banking Corporation-

300,000-

300,000

0.49054

Development Bank of Japan Inc.

-

570,000-

570,000

0.77571

Mizuho Bank, Ltd.

-570,000-

570,000

0.77571

Sumitomo Mitsui Trust Bank, Limited-

570,000-

570,000

0.77571-570,000-

570,000

0.77571-570,000-

570,000

0.77571-

300,000-

300,000

0.77571

97,620,000

6,300,000

6,300,000

97,620,000

97,620,000

7,430,000

6,300,000

98,750,000

Sumitomo Mitsui Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,
Ltd. (Note 5)
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Subtotal
Total(Note 1)
(Note 2)
(Note 3)(Note 4)

Maturity
date

Repayment
methodUse offunds

Remarks

January 31,
2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

January 31,
2024

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

January 30,
2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

September
30, 2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

September
30, 2026

Lump-sum
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)

(Note 5)68

Due in 1 year or
less

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

14,400,000

13,845,000

9,200,000

13,725,000

11,560,000

34,890,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd. changed its name to MUFG Bank, Ltd., as of April 1, 2018.

- 21 -

69