Semi-Annual Reportfor the14th Fiscal Period

From February 1, 2017 to July 31, 2017

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

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.

During the 14th Fiscal Period, the Investment Corporation newly acquired eightproperties centering on sponsor-developed properties (five properties in theTokyo 23 wards, three properties in other major cities) through a fourth public
offering conducted in February 2017 for the fourth consecutive year since listing, in addition to borrowings, and additionally acquired COMFORIA GYOTOKU
in June 2017 through borrowings. Consequently, our asset size as of the endof the 14th Fiscal Period totaled 110 properties with a total acquisition price of¥187.4 billion. The average occupancy rate remained high at 96.2%. The Investment Corporation achieved ¥7,276 million in operating revenue, ¥3,098 million
in operating profit, and ¥2,608 million in profit, all of which exceeded our forecasts, resulting in a distribution per unit of ¥4,681.

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 14th Fiscal Period, we acquired an additional property, COMFORIA SHIBAURA, in August
2017 through borrowings. As a result, our portfolio as of September 30, 2017 stood at 111 properties, with a total acquisition price of ¥188.5 billion. 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 unitholder value. Your continued support andcooperation are highly appreciated.

Financial Highlights
Operating revenue
Operating profit
ProfitDistribution per unit
Total loan to value (LTV)

7,276 million¥ 3,098 million¥ 2,608 million¥ 4,68150.5 %¥

Number of properties
Acquisition priceAppraisal value
Occupancy rate at the
14th Fiscal Period-end
Average occupancy rate

110 properties¥ 187.4 billion¥ 218.8 billion
96.1 %
96.2 %

Contents
Ⅰ. Overview of the Investment Corporation

Ⅱ. Asset Management Report

1
Greetings/Financial Highlights
2
Top Interview
Selective Investments through Diversified Property Acquisition Channels 68Internal Growth Strategy
9
Financial Strategy
10
Portfolio Map
12
Portfolio List
17
Basic Policies
	Overview of the Investment Corporation andAsset Management Company
18

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
46
48
49
50
51
52
61
67

1

TOP INTERVIEW roperties Acquired in 14th Fiscal PeriodP(Through public offering)

We aim to maximize unitholder value bymaking selective investments in high-quality
properties mainly in the Tokyo 23 wards andutilizing the Tokyu Fudosan Holdings Group.

104 COMFORIA AKIHABARA EAST
Sponsordeveloped

Takehiro Izawa
Executive Director, Comforia Residential REIT, Inc

About Executive Director
In line with the reorganization of the Asset Management
Company carried out on April 1, 2017, I was appointed Executive Director of Comforia Residential REIT, Inc (hereinafter referred to as the “Investment Corporation”). As I am
determined to exert every possible effort on the management of the Investment Corporation, as my predecessor
Hiroyuki Tomata has, I would appreciate your continued
support and guidance.

tive investments in high-quality properties with better
convenience located in high-demand areas will lead to
long-term stability and growth of earnings.
On the asset management front, we aim for stable occupancy through improved resident satisfaction by offering
not only convenience but also utilizing various services of
Tokyu Fudosan Holdings Group, under the brand concept
of “For a Superior Level of Living Comfort.”

In order to foster sophisticated asset management operations and expand opportunities for acquiring properties
with an aim to enhance unitholder value, TLC REIT Management Inc. (“the Asset Management Company”), towhich the Investment Corporation entrusts its asset management operations, conducted, on April 1, 2017, an absorption-type merger with TLC Comforia Investment Management INC. as the surviving company and TLC Activia
Investment Management Inc. as the absorbed company.
TLC REIT Management Inc. also conducted an absorptiontype split with Tokyu Land Capital Management Inc. as theabsorption-split company and TLC Comforia Investment
Management INC. as the absorption-type split succeedingcompany (hereinafter referred to as the “Reorganization”),
and changed the trade name of TLC Comforia Investment
Management INC. to TLC REIT Management, Inc. Hiroyuki
Tomata has remained as President & CEO of the AssetManagement Company after the reorganization.

About Investment Policy
We have made selective investments in high-quality
properties mainly in the Tokyo 23 wards based on our basic policies of “investments in residential properties withstable earnings and high growth potential” and “utilization of the Tokyu Fudosan Holdings Group.” Since stabledemand for rental residences is expected to continue dueto the inflow of the younger demographic and increase insingles and small families, we believe that making selec2

Address

Ownership

1-3-2 Honkomagome,
Bunkyo-ku, Tokyo

Warehousing

Rentable units

Rentable units

Appraisal NOI
yield

Sponsordeveloped

Ownership

Overview of Public Offering

January 5
February 1
February 2¥ 11, 814 million

50, 190 units

Note: Total issue value and Number of investment units issued include
those of third-party allotment conducted on February 22, 2017
(payment date).

Sponsordeveloped

Sub-central Tokyo

4-21-2 Kamata, Ota-ku, Tokyo
3-minute walk from Keikyu
Kamata Station on the Keikyu
Nearest station/ Main Line
Distance (on foot) 6-minute walk from Kamata
Station on the JR Keihin-Tohoku
Line
Ownership
OwnershipCompletion date Aug. 2015
203 units
Rentable units(including 2 retail sections)
Acquisition date Feb. 2, 2017
Acquisition price ¥5,721,000 thousand
4.5% (as of Oct. 31, 2016)

Address

Other major cities

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

5-minute walk from Shinsaibashi
Nearest station/ Station on the Osaka Municipal
Distance (on foot) Subway Midosuji Line and 1 otherline

Ownership

Ownership

OwnershipCompletion date Jan. 2016

73 units

Rentable units

112 units

Acquisition date Feb. 2, 2017

Acquisition date Feb. 2, 2017

Acquisition price ¥1,245,000 thousand

Acquisition price ¥1,980,000 thousand

Appraisal NOI
yield

Appraisal NOI
yield

4.6% (as of Oct. 31, 2016)

110 COMFORIA KYOMACHIBORI
Sponsordeveloped

4.5% (as of Oct. 31, 2016)

109 COMFORIA SHINSAIBASHI EAST

Completion date Mar. 2015
Rentable units

32 units

Address

Appraisal NOI
yield

4.5% (as of Oct. 31, 2016)

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

Ownership

107 COMFORIA KAMATA

5-minute walk from
Nearest station/
Hachimanyama Station on the
Distance (on foot)Keio Line

With eight of the nine properties acquired during the
14th Fiscal Period being from the sponsor, we have realized growth through full utilization of the sponsor group’s
support.

We conducted a public offering with January 19 and 20,
2017 as subscription period and February 1, 2017 as payment date. In addition, we acquired COMFORIA AKIHABARA EAST and seven other properties on February 2, 2017.

Address

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

Acquisition price ¥890,000 thousand

Acquisition price ¥1,330,000 thousand

Warehousing

Central Tokyo

Acquisition date Feb. 2, 201756 units

Sub-central Tokyo

Warehousing properties
by sponsors

Completion date Feb. 2007

Ownership

108 COLLEGE COURT HACHIMANYAMA

Address

Ownership

Acquisition date Feb. 2, 2017

Appraisal NOI
yield

Warehousing

7-minute walk from Mita Station
Nearest station/on the Toei Mita Line and 1 other
Distance (on foot)lineCompletion date Aug. 2006

With an aim to expand our asset size and to further improve stability of earnings from the portfolio, we acquired
eight properties centering on sponsor-developed properties (five properties in the Tokyo 23 wards, three properties in other major cities) using funds of ¥11.8 billion procured through a public offering conducted for the fourthconsecutive year since listing and borrowings in February
2017. Furthermore, we additionally acquired COMFORIA
GYOTOKU in June 2017 through borrowings, expanding
the asset size to ¥187.4 billion.

Issuance resolution date
Payment date
Delivery date
Total issue value
Number of investment
units issued

Sub-central Tokyo

Sponsor-developed
properties

105 COMFORIA MITA TROIS

Nearest station/ 3-minute walk from Hakusan
Distance (on foot) Station on the Toei Mita Line

About Public Offering
About Reorganization of theAsset Management Company

2-9-19 Higashikanda,
Chiyoda-ku, Tokyo
10-minute walk from Akihabara
Station on the JR Yamanote Line
Nearest station/ and 4 other lines
Distance (on foot) 6-minute walk from Asakusabashi
Station on the JR Chuo Sobu Local
Line and 1 other line
Ownership
OwnershipCompletion date Feb. 2016131 units
Rentable units
Acquisition date Feb. 2, 2017
Acquisition price ¥4,425,000 thousand
Appraisal NOI
4.4% (as of Oct. 31, 2016)
yield
Address

106 COMFORIA BUNKYOHAKUSAN
Warehousing

Central Tokyo

Sponsordeveloped

Other major cities

1-16-14 Kyomachibori, Nishi-ku,
Osaka-shi, Osaka
7-minute walk from Higobashi
Station on the Osaka Municipal
Subway Yotsubashi Line
Nearest station/
9-minute walk from Hommachi
Distance (on foot)Station on the Osaka Municipal
Subway Midosuji Line and 2 otherlines
Ownership
OwnershipCompletion date Jul. 2015
84 units
Rentable units
Acquisition date Feb. 2, 2017
Acquisition price ¥1,567,000 thousand
Appraisal NOI
4.8% (as of Oct. 31, 2016)
yield
Address

4.8% (as of Oct. 31, 2016)

111 COMFORIA AWAZA
Sponsordeveloped

Address

Other major cities
1-5-5 Enokojima, Nishi-ku,
Osaka-shi, Osaka

2-minute walk from Awaza Station
Nearest station/on the Osaka Municipal Subway
Distance (on foot)Chuo Line and 1 other line
Ownership

OwnershipCompletion date Jan. 2016
Rentable units

84 units

Acquisition date Feb. 2, 2017
Acquisition price ¥1,289,000 thousand
Appraisal NOI
yield

4.9% (as of Oct. 31, 2016)

3

TOP INTERVIEW
Property Acquired in 14th Fiscal Period

Portfolio Summary (After acquisition of assets in the 15th Fiscal Period)

112 COMFORIA GYOTOKUTokyo metropolitan area

Riv

er

Investment Area

oga

wa

Municipal Dainana
Junior High School

oza

i Lin
e

Kyu
-ed

Lawson112

2-minute walk from Gyotoku Station on the Tokyo Metro
Tozai Line

Ownership

OwnershipCompletion dateMar. 2007

n
tio
Sta
oto

The Bank ofTokyo-Mitsubishi UFJ

Gyotoku Ekimae San
Post OfficeRentable units

56 units

Acquisition dateJun. 1, 2017

Niihama Elementary School

Gyotoku Ekimae Park

Acquisition price¥978,000 thousand

Minami Fire Station

Appraisal NOI yield

4.9% (as of Apr. 30, 2017)

Minutes to Nearest Station (on foot)Other major cities

Over 10 mins

7.0％

3.1％

Tokyo Metropolitan area

2.5％

Minamine Park

ku

Katori
Nursery School

Gy

Seven Eleven

Nearest station/
Distance (on foot)

Me
tr
kyo
To

Seiyu Gyotoku Store

Ando Hospital

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

COMFORIA GYOTOKU

AddressTokyo
23 Wards

Sub-central Tokyo

90.5%

Central Tokyo

44.9％

5 to 10 mins

36.0％

Average
Distance

4.9 minutes

Under 5 mins

60.9％

45.6％

Property Acquired in 15th Fiscal Period
113 COMFORIA SHIBAURAnStatioMita

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

atio

a St

Mit

Unit TypeCentral Tokyo

ine

te L

ano

Yam

i
ach
am n
JR T Statio

Tokyo Port Bowl
Minato-ku
Sports Center
COMFORIA SHIBAURA
Kyu-K

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

Nearest station/
Distance (on foot)8-minute walk from Shibaura Futo Station on the
Yurikamome Line
10-minute walk from Tamachi Station on the JR Yamanote
and Keihin Tohoku Lines

Ownership

OwnershipCompletion dateNov. 2008

Rentable units

39 units

Acquisition dateAug. 1, 2017

Acquisition price¥1,065,680 thousand

Appraisal NOI yield

4.5% (as of Jun. 30, 2017)

treet

ori S

an-d

Peacock Store
Shibaura Island Store

Kaig

113

Seven Eleven

t

Stree

Shibaura Instituteof Technology

-dori

Yo

aigan

Line
Tokyo Monorail

ka
kosu

Address

Futo Park

Large 0.3％

Building Age

Stores 0.4％

Under 3 years

11.2％

Family 10.4％

3 to 5 years
Single/Compact

Compact

39.8％

88.8%

Single49.1％

Over 10 years

48.0％

Average
Building age

2.2％

9.3 years
5 to 10 years

38.5％

Future Growth Strategy
We will work to further enhance COMFORIA’s brandpower as well as steadily expand the portfolio towards our
mid-term goal of achieving an asset size of ¥200 billion,
while seeking stable distribution in collaboration with thesponsor to improve unitholder value.
We will continue to invest selectively in high-quality properties utilizing the sponsor’s information development
capabilities, along with the original sourcing by the AssetManagement Company.

Furthermore, we will prove various “superior levels” by
pursuing services for the residents.
We will continue to strive to secure stable earnings fromthe portfolio and to maintain and enhance asset value
based on our basic asset management policies of “selective investments in high-quality properties mainly in theTokyo 23 wards” and “utilization of the Tokyu Fudosan
Holdings Group” going forward.

ProﬁleTakehiro Izawa, Executive Director
Comforia Residential REIT, Inc
Joined Tokyu Land Corporation in April 1991. After engaging in housing business, led the listing of an affiliate
subsidiary, and acquisition/management of properties for
REITs/funds. In September 2013, appointed General Manager of Investment Operation Department of TLC Comforia

4

Investment Management INC. (currently TLC REIT Management, Inc.). In April 2017, assumed the offices of Executive
Director, Chief Division Officer of Comforia Management
Division of TLC REIT Management Inc. and Executive Director of Comforia Residential REIT, Inc.

5

Selective Investments through Diversified Property Acquisition Channels
During the 14th Fiscal Period, the Investment Corporation acquired five sponsor-developed properties and three warehousing properties held by sponsors with funds procured through a public offering conducted in February 2017 forthe fourth consecutive year since listing as well as borrowings. Furthermore, the Investment Corporation additionallyacquired COMFORIA GYOTOKU using borrowings in June 2017.
With an aim of achieving an asset size of ¥200 billion, 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 stable distribution levels.

■■ Selective Investments Mainly in Tokyo 23 Wards with Aim to Achieve Asset Size of ¥200 Billion(Billions of yen)

200

Historical Asset Size
Over the150

Acquired COMFORIA
KOMABA andone other property

Acquired COMFORIAKUDAN and24 other properties

Acquired COMFORIA
ICHIGAYAYAKUOJI and
two other properties

Replacement ofassetsAcquired COMFORIA
KANDAJINBOCHO and11 other properties

146.5

100

0

74.5

71.2

Tokyo
23 wards
96.3％

Tokyo
23 wards
96.3％

Listed(Feb. 6, 2013)

168.0

Tokyo
23 wards
93.3％

146.7
Tokyo
23 wards
More than

122.8

116.2

71.2

188.5

187.4
164.4

achieved approximately

Aim to expand
asset size while
maintaining a ratio ofassets in the Tokyo
23 wards above 90%

Acquired COMFORIASHINJUKU EASTSIDE TOWER
and three other properties

4. 5 years since listing,

2. 6-fold growth

Acquired COMFORIA
AKIHABARA EAST andeight other properties

Acquired COMFORIASHIBAURATokyo
23 wards

Tokyo
23 wards
92.9％

Tokyo
23 wards
92.5％

94.0％

“End of 7th“End of 8th“End of 9th“End of 10th
6th
Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period”
Ended Jul. 2013 Ended Jan. 2014 Ended Jul. 2014 Ended Jan. 2015 Ended Jul. 2015
“End ofTokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

92.8％

94.3％

Tokyo
23 wards

Tokyo
23 wards

90.5％

90.5％

90.0％

93.6％

11th “End of 12th “End of 13th “End of 14th
Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period”
Ended Jan. 2016 Ended Jul. 2016 Ended Jan. 2017 Ended Jul. 2017“End of

Aug. 2017

Future strategy

Distribution per unit
(DPU)

̶

¥4,051¥4,203¥4,268¥4,296¥4,403¥4,339¥4,487¥4,549¥4,681

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%

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 fourand rounded off to the nearest whole number.

■■ Diversified Property Acquisition Channels Centering on Sponsor Groups■■ Property Development by Tokyu Land Corporation (As of September 19, 2017)

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 16 sponsor pipeline projects (1,864 units) in Tokyo 23 Wards and Osaka.

Ratio of Acquired Assets by Seller(As of August 1, 2017)

14th Fiscal Period
Acquisition fromsponsor group8 properties¥18,447 million

Acquisition throughoriginal route of theAsset Management
Company

1 property¥ 978 million

15th Fiscal Period

+

Other

Sponsor

30.1％

39.2％

Acquisition throughoriginal route of theAsset Management
Company

1 property¥ 1,065 million

Acquisition fromsponsor group

69.9％
Other
sponsors

30.7％
6

Suita-shiTokyo
23 wards

Osaka area

Kita-ku

Itabashi-ku

Toshima-ku
Nakano-ku

HigashiYodogawa-ku

Arakawa-ku

Ikebukuro Bunkyo-ku Ueno

Sumida-ku
Taito-ku

Shin-osaka

Shinjuku-ku
Suginami-ku

12 properties
1, 356 units

Chiyoda-ku

Shinjuku
Shibuya-kuTokyoChuo-ku

Koto-ku

Shibuya
Setagaya-ku

Minato-ku

Shinagawa4 properties
508 units

Osaka

Kita-ku

Umeda

Shinagawa-ku
Meguro-ku

Nishi-ku
Ota-kuProperty development by Tokyu Land Corporation

Rental residenceChuo-ku

Shinsaibashi

Operational rental residence（No specific plan has been made by the Investment Corporation to acquire any of the above properties.）

7

Internal Growth Strategy

Financial Strategy■■ Occupancy Rate（%）

Total portfolio

100

Total portfolio (year-on-year)

96.3% 95.6% 96.2% 96.3% 96.6% 96.5% 96.5% 96.9% 97.0% 96.0% 95.5% 95.7% 96.1%
95

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.

■■ Issuance of Investment Corporation Bonds

90
Central Tokyo100

Sub-central Tokyo

Tokyo metropolitan area

Other major cities

95

90

Jul.
2016

13th FP
Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2017

Feb.

Mar.

¥ 1. 0 billion¥ 2. 0 billion

Maturity

5 years

10 years

0. 23% annual

0. 52% annual

Apr.

May

Jun.

Jul.

FitOn

5,000

FitOn, a facility usage service for residents, was introduced
to selected properties in the Comforia series. This service
offers residents free use of facilities at Tokyu Sports Oasis,
Inc. for a specified number of times per month.

EWEL, Inc.

TOKYU SPORTS OASIS, Inc.

Tokyu Fudosan Holdings acquired all shares of National Students Information Center Group (currently National Students
Information Center) in November 2016 with an aim to expand rental housing management businesses.
Through utilization of such operational know-how, the Investment Corporation also intends to invest in “Operational
Rental Residence” such as student apartments (dormitories) which are likely to attract demand going forward.

Historical Advancement Rate and Number of Students and Foreign Students
The number of students in universities, graduate school and junior college [left axis]
Number of foreign students [right axis]
University advancement rate
(Thousands)
210

56.2% 56.8% 56.7% 56.2%

55.1%

FY
2009

FY
2010

Average maturity
Weighted avg. interest

FY
2011

FY
2012

1st unsecured bonds

2nd, 3rd unsecured bonds

12,4953,000

7,500
6,300 6,900
3,700

8,800
1,000

5,500

3,190 5,860
3,410

3,410

2,000

5,000 5,000 4,950

2,000
2,330
0
15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th
FP

FP

FP

FP

5,000

4,925

1,350
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 July 31, 2017 are as follows:■■ Utilization of Operational Know-How of Student Apartments and Dormitories

FY
2008

Fixed-interest debt ratio

Borrowing in the 14th period

Existing loans(Millions of yen)
15,00010,000

COMFORIA WELBOX offers tenant-only internet services developed with the support of EWEL, one of thegroup companies. About 4,000 services are provided
in total, including discount services at Tokyu Hands,
another group company, as well as discounts for car
rentals, cinema and accommodation.

FY
2007

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

Long-term debt ratio■■ Diversification of Repayment Dates

Free Use of Fitness ClubWELBOX

8

AmountＬＴＶ (Note)

The expected repayments of debt and investment corporation bonds as of July 31, 2017 are as follows:

Development of Dedicated Tenant Services

FY
2006

Jul. 18, 2017

Note: Interest-bearing debt balance/total assets

We will improve the profitability of our portfolio through increasing tenant satisfaction and raising occupancy rates bydeveloping dedicated tenant services.

3,000
55.3%
2,500
53.7%
2,000 52.3%
1,500
1,000
500
0

Jul. 18, 2017

End of 14th Fiscal Period(ended Jul. 31, 2017)

14th FP■■ Provision of Added Value to Tenants (Examples)(Thousands)
3,500

3rd
unsecured bonds

Issue date

Interest Rate
12th FP

2nd
unsecured bonds■■ Interest-Bearing Debt

FY
2013

56.7% 56.5% 56.8%
180

FY
2014

FY
2015

FY
2016

150
120
90
60
30
0

National Students
Information CenterHas developed its corebusiness of student apartments and dormitories inmajor cities in the metropolitan area and owns
88,000 residential units(including properties
managed by owners) asof the end of April 2016.

0.8％
1.3％
1.8％
2.0％
2.3％
8.0%

Loan balance(millions of yen)

Lender0.5％
0.5％

17,670
16,105
15,67015,67015,670
7,785
2,250
2,000
1,750
1,300
750
500
500

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

18.1％

Development Bank of Japan Inc.
Sumitomo Mitsui Banking Corporation
The Norinchukin Bank

16.1%

16.5％

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

16.1％

Shinkin Central Bank

16.1％

The 77 Bank, Ltd.
The Daishi Bank, Ltd.

97,620Total■■ Credit Rating (As of July 31, 2017)
Rating Agency

Rating category

RatingOutlookJapan Credit Rating Agency, Ltd.

Long-term issuer rating

AA-

Stable9

Portfolio Map

The Investment Corporation manages assets with superb
accessibility located mainly in the Tokyo 23 wards.
Central Tokyo

106 COMFORIA
BUNKYOHAKUSAN

104 COMFORIA
AKIHABARA EAST

47

43 properties

1 COMFORIA NIHONBASHI NINGYOCHO 26 COMFORIA HARAJYUKU

61 COMFORIA SHIBAURA CANAL

85 COMFORIA TAMACHI

2 COMFORIA WASEDA

69 COMFORIA KITASANDO

86 COMFORIA AZABUJUBAN

30 COMFORIA MITA NORTH

3 COMFORIA SHIMOOCHIAI

31 COMFORIA SHIBAURA BOWHOUSE 70 COMFORIA YOYOGIUEHARA

92 COMFORIA SHINJUKUGYOENⅠ

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

60 COMFORIA MITA EAST

Sub-central Tokyo

53 properties

5 COMFORIA BUNKYOKASUGA

38 COMFORIA MISYUKU

82 COMFORIA KOMABA

28 COMFORIA KOMAE

6 COMFORIA ASAKUSAMATSUGAYA

39 COMFORIA GAKUGEIDAIGAKU

87 COMFORIA KINSHICHO

42 COMFORIA YOKOHAMAKANNAI

7 COMFORIA NISHIOI

40 COMFORIA HIGASHINAKANO DEUX 88 COMFORIA MINAMISUNAMACHI

8 COMFORIA NAKANO

41 COMFORIA HIGASHIIKEBUKURO WEST 89 COMFORIA HIGASHISHINAGAWA 47 COMFORIA YATSUKA

9 COMFORIA SHIMOKITAZAWA

43 COMFORIA RYOGOKU DEUX

10 COMFORIA NISHIKAMATA
11 COMFORIA OYAMA

77 COMFORIA SHINKOYASU

44 COMFORIA OMORI DEUX

91 COMFORIA YOGA

112 COMFORIA GYOTOKU

45 COMFORIA MACHIYA

94 COMFORIA ITABASHINAKAJUKU
97 COMFORIA SHINAGAWA EAST

13 COMFORIA KOMAZAWA

52 COMFORIA RYOGOKU SOUTH

99 COMFORIA OJIMA

21 COMFORIA KOISHIKAWA

53 COMFORIA TOYOSU

100 COMFORIA OMORI TROIS

22 COMFORIA SENGOKU

55 COMFORIA SUMIDA-TACHIBANA 106 COMFORIA BUNKYOHAKUSAN

AkabaneAcquired in the
14th Fiscal Period

Itabashi-ku

Toshima 27
-ku

Tokyo

Ikebukuro

Kichijoji
Suginami-ku

108

Setagaya-ku

28

23 COMFORIA DAIKANYAMAAOBADAI 62 COMFORIA UENOHIROKOJI

107 COMFORIA KAMATA

27 COMFORIA IKEBUKURO

63 COMFORIA KASUGATOMISAKA

108 COLLEGE COURT HACHIMANYAMA

29 COMFORIA RYOGOKUISHIWARA

64 COMFORIA HONKOMAGOME

91

3Arakawa-ku

45
64
41
75 22 10676

Shinjuku
20 -ku37

Shinagawa-ku

66 COMFORIA KIBAKOEN

34 COMFORIA HONJOAZUMABASHI

67 COMFORIA MEGURO CHOJAMARU

68
Ota-ku35 COMFORIA KIYOSUMISHIRAKAWA TROIS 68 COMFORIA NISHIMAGOME
36 COMFORIA MONZENNAKACHO

75 COMFORIA HIGASHIIKEBUKURO EAST

37 COMFORIA HIMONYA

76 COMFORIA HIGASHIIKEBUKURO

10 107

Acquired in the
14th Fiscal Period

Taito-ku Sumida-ku

Nishifunabashi
Edogawa-ku

112

46

113 COMFORIASHIBAURA

97
89
105

44
100

105 COMFORIA

Acquired in the
15th Fiscal Period

MITA TROIS

107 COMFORIA

KAMATA

Other major cities

Acquired in the
14th Fiscal Period

9 properties

54 COMFORIA SHIN-OSAKA

95 COMFORIA KITASANJO

78 COMFORIA SHINSAKAE

101 COMFORIA SAPPORO SHOKUBUTSUEN 110 COMFORIA KYOMACHIBORI

79 COMFORIA KITAHORIE

102 COMFORIA OGIMACHI

Total

Bunkyo-ku

Katsushika-ku

7

108 COLLEGE COURTHACHIMANYAMA

32 COMFORIA ASAKUSABASHI DEUX 65 COMFORIA MORISHITA
33 COMFORIA OSHIAGE

Acquired in the
14th Fiscal Period55
6
21 5 Ueno
8
33
62
34
40 4
63
2 74
32
98
29
87
81
104 51
73 93
83
72
84
56
103
52
Shinjuku
43
92
Chiyoda 57 49
80
69
99
65 35
-ku
1
Tokyo
12 88
Shibuya-ku
36
58
71
59
26 18
14
66
9
19
Koto-ku70
15 50
Chuo-ku
Shibuya
17 86 96 165382
23
30 60 61
48 105 113
38
Minato67 -ku 85 31
13
39 Meguro-ku Shinagawa
90

95 101Adachi-ku

Kita-ku

94
11

Nerima-ku

46 COMFORIA ICHIKAWAMYODEN

90 COMFORIA MEGUROYAKUMO

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 51 COMFORIA ASAKUSABASHI

GYOTOKU

Nakano-ku

6 properties

Chiba
112 COMFORIA

103 COMFORIA ICHIGAYAYAKUOJI

Tokyo
metropolitan area

Saitama

109 COMFORIA SHINSAIBASHI EAST

Acquired in the
14th Fiscal Period

111 COMFORIA AWAZA

Acquired in the
14th Fiscal Period

Kanagawa

111 properties

77

109 COMFORIASHINSAIBASHI EASTCOMFORIA
110 KYOMACHIBORI

111 COMFORIA AWAZA

Acquired in the
14th Fiscal Period

Acquired in the
14th Fiscal Period

Acquired in the
14th Fiscal Period(As of August 1, 2017)

Yokohama

Central Tokyo

Tokyo metropolitan area

Sub-central Tokyo

Other major cities78
54 79 102
109 110 111

10

42

11

Portfolio List
■ Central Tokyo ■ Sub-central Tokyo ■ Tokyo metropolitan area ■ Other major cities
No.

Property nameLocation

Portfolio properties at the 14th Fiscal Period-end
1 COMFORIA NIHONBASHI NINGYOCHO Nihonbashi Ningyocho, Chuo-ku, Tokyo
Bentencho, Shinjuku-ku, Tokyo
2 COMFORIA WASEDA
Nakaochiai, Shinjuku-ku, Tokyo
3 COMFORIA SHIMOOCHIAI
Kitashinjuku, Shinjuku-ku, Tokyo
4 COMFORIA HIGASHINAKANO
Nishikata, Bunkyo-ku, Tokyo
5 COMFORIA BUNKYOKASUGA
6 COMFORIA ASAKUSAMATSUGAYA Matsugaya, Taito-ku, Tokyo
Nishioi, Shinagawa-ku, Tokyo
7 COMFORIA NISHIOI
Kamitakada, Nakano-ku, Tokyo
8 COMFORIA NAKANO
Hanegi, Setagaya-ku, Tokyo
9 COMFORIA SHIMOKITAZAWA
Nishikamata, Ota-ku, Tokyo
10 COMFORIA NISHIKAMATA
Oyamacho, Itabashi-ku, Tokyo
11 COMFORIA OYAMA
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH Miyoshi, Koto-ku, Tokyo
Komazawa, Setagaya-ku, Tokyo
13 COMFORIA KOMAZAWA
Irifune, Chuo-ku, Tokyo
14 COMFORIA GINZA EAST
Azabudai, Minato-ku, Tokyo
15 COMFORIA AZABUDAI
Shibakoen, Minato-ku, Tokyo
16 COMFORIA SHIBAKOEN
Nishiazabu, Minato-ku, Tokyo
17 COMFORIA NISHIAZABUMinamiaoyama, Minato-ku, Tokyo
18 COMFORIA MINAMIAOYAMA
19 COMFORIA MINAMIAOYAMA DEUX Minamiaoyama, Minato-ku, Tokyo
Takadanobaba, Shinjuku-ku, Tokyo
20 COMFORIA NISHIWASEDA
Koishikawa, Bunkyo-ku, Tokyo
21 COMFORIA KOISHIKAWA
Sengoku, Bunkyo-ku, Tokyo
22 COMFORIA SENGOKU
23 COMFORIA DAIKANYAMAAOBADAI Aobadai, Meguro-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
26 COMFORIA HARAJYUKU
Ikebukuro, Toshima-ku, Tokyo
27 COMFORIA IKEBUKURO
Iwadokita, Komae-shi, Tokyo
28 COMFORIA KOMAE
Ishiwara, Sumida-ku, Tokyo
29 COMFORIA RYOGOKUISHIWARA
Mita, Minato-ku, Tokyo
30 COMFORIA MITA NORTH
31 COMFORIA SHIBAURA BOWHOUSE Kaigan, Minato-ku, Tokyo
Asakusabashi, Taito-ku, Tokyo
32 COMFORIA ASAKUSABASHI DEUX
Narihira, Sumida-ku, Tokyo
33 COMFORIA OSHIAGE
Honjo, Sumida-ku, Tokyo
34 COMFORIA HONJOAZUMABASHI
35 COMFORIA KIYOSUMISHIRAKAWA TROIS Shirakawa, Koto-ku, Tokyo
Fuyuki, Koto-ku, Tokyo
36 COMFORIA MONZENNAKACHO
Himonya, Meguro-ku, Tokyo
37 COMFORIA HIMONYA
Ikejiri, Setagaya-ku, Tokyo
38 COMFORIA MISYUKU
Shimouma, Setagaya-ku, Tokyo
39 COMFORIA GAKUGEIDAIGAKU
40 COMFORIA HIGASHINAKANO DEUX Higashinakano, Nakano-ku, Tokyo
41 COMFORIA HIGASHIIKEBUKURO WEST Higashiikebukuro, Toshima-ku, Tokyo
Okinacho, Naka-ku, Yokohama-shi, Kanagawa
42 COMFORIA YOKOHAMAKANNAI
Chitose, Sumida-ku, Tokyo
43 COMFORIA RYOGOKU DEUX
Omorikita, Ota-ku, Tokyo
44 COMFORIA OMORI DEUX
Arakawa, Arakawa-ku, Tokyo
45 COMFORIA MACHIYA
Shioyaki, Ichikawa-shi, Chiba
46 COMFORIA ICHIKAWAMYODEN
Sezaki, Soka-shi, Saitama
47 COMFORIA YATSUKA
48 COMFORIA SHIROKANETAKANAWA Mita, Minato-ku, Tokyo
49 COMFORIA NIHONBASHI NINGYOCHO EAST Nihonbashi Ningyocho, Chuo-ku, Tokyo
Toranomon, Minato-ku, Tokyo
50 COMFORIA ATAGO
Yanagibashi, Taito-ku, Tokyo
51 COMFORIA ASAKUSABASHI
Chitose, Sumida-ku, Tokyo
52 COMFORIA RYOGOKU SOUTH
Edagawa, Koto-ku, Tokyo
53 COMFORIA TOYOSU
Higashinakajima, Higashiyodogawa-ku, Osaka-shi, Osaka
54 COMFORIA SHIN-OSAKA
Tachibana, Sumida-ku, Tokyo
55 COMFORIA SUMIDA-TACHIBANA
Kudanminami, Chiyoda-ku, Tokyo
56 COMFORIA KUDAN
57 COMFORIA NIHONBASHI NINGYOCHO NORTH Nihonbashi Horidomecho, Chuo-ku, Tokyo
Shinkawa, Chuo-ku, Tokyo
58 COMFORIA SHINKAWA
Akasaka, Minato-ku, Tokyo
59 COMFORIA AKASAKA
Shiba, Minato-ku, Tokyo
60 COMFORIA MITA EAST
Kaigan, Minato-ku, Tokyo
61 COMFORIA SHIBAURA CANAL
Ueno, Taito-ku, Tokyo
62 COMFORIA UENOHIROKOJI
12

Gross floor area(m2)

3,021.53
3,080.28
2,726.15
1,058.75
3,198.54
2,264.84
1,542.53
1,935.39
5,287.18
3,358.99
4,793.28
1,317.22
1,695.46
5,773.48
1,028.94
1,914.13
1,069.77
1,763.88
487.97
2,971.10
1,015.71
3,514.75
1,533.95
6,314.63
1,171.21
1,468.30
1,151.47
1,257.94
4,862.18
1,596.33
1,369.26
1,434.29
1,553.45
4,916.04
2,302.53
2,842.56
1,919.59
1,419.08
8,296.57
2,377.62
2,010.27
2,180.52
1,361.92
1,533.11
1,710.09
1,932.57
2,912.38
1,147.20
5,273.67
2,404.23
4,513.10
6,530.63
1,888.25
1,787.89
1,717.58
2,866.08
2,956.70
4,973.31
2,703.41
1,935.60

Rentable Acquisition price Investment
units(thousands of yen) ratio (%)

45
79
44
37
80
62
59
35
116
103
97
45
39
133
24
54
22
24
6
60
37
44
26
99
28
24
47
30
75
46
47
48
50
144
28
59
38
40
155
60
66
64
30
48
62
37
82
38
141
61
161
133
56
36
36
59
40
111
95
37

1,586,837
1,900,000
1,181,000
552,707
1,470,000
910,000
902,370
881,8632,587,000
1,550,000
1,987,000
740,000
1,290,000
3,059,000
574,000
1,398,000
755,000
1,041,000
248,000
1,685,000
552,000
1,219,000
926,000
3,629,000
602,000
399,000
651,000
850,000
2,650,000
874,000
714,000
762,000
873,000
2,658,000
1,189,000
1,874,000
1,138,000
833,000
3,911,000
972,000
1,014,730
1,188,000
594,000
606,000
626,000
1,300,000
2,139,300
826,000
2,680,000
1,240,000
3,096,650
2,400,000
938,000
1,280,500
1,108,000
1,840,800
1,945,000
3,190,550
1,570,000
1,050,000

0.8
1.0
0.6
0.3
0.8
0.5
0.5
0.5
1.4
0.8
1.1
0.4
0.7
1.6
0.3
0.7
0.4
0.6
0.1
0.9
0.3
0.6
0.5
1.9
0.3
0.2
0.3
0.5
1.4
0.5
0.4
0.4
0.5
1.4
0.6
1.0
0.6
0.4
2.1
0.5
0.5
0.6
0.3
0.3
0.3
0.7
1.1
0.4
1.4
0.7
1.6
1.3
0.5
0.7
0.6
1.0
1.0
1.7
0.8
0.6

No.

Property nameLocation

63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97

COMFORIA KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOENCOMFORIA MEGURO CHOJAMARUCOMFORIA NISHIMAGOMECOMFORIA KITASANDOCOMFORIA YOYOGIUEHARACOMFORIA SASAZUKACOMFORIA SHINJUKUGYOEN ⅡCOMFORIA ICHIGAYAYANAGICHOCOMFORIA KAGURAZAKACOMFORIA HIGASHIIKEBUKURO EASTCOMFORIA HIGASHIIKEBUKUROCOMFORIA SHINKOYASUCOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA NIBANCHOCOMFORIA NISHISHINJUKUCOMFORIA KOMABACOMFORIA KANDAJINBOCHOCOMFORIA NIHONBASHICOMFORIA TAMACHICOMFORIA AZABUJUBANCOMFORIA KINSHICHOCOMFORIA MINAMISUNAMACHICOMFORIA HIGASHISHINAGAWACOMFORIA MEGUROYAKUMOCOMFORIA YOGACOMFORIA SHINJUKUGYOEN Ⅰ
COMFORIA KAGURAZAKA DEUXCOMFORIA ITABASHINAKAJUKUCOMFORIA KITASANJOCOMFORIA AZABU EASTCOMFORIA SHINAGAWA EAST

Gross floor area(m2)

4,479.23
2,623.37
2,159.39
1,753.85
3,720.52
1,797.93
7,667.04
2,344.24
3,440.91
2,312.79
2,416.85
1,161.31
3,156.84
1,798.18
2,622.19
4,098.97
1,910.01
2,165.01
1,947.14
7,450.62
1,823.86
2,950.59
5,494.78
1,632.38
1,917.15
8,124.20
3,298.65
1,333.57
1,798.36
1,832.93
1,637.00
7,732.25
3,949.79
3,505.12
3,701.07(Tower Building) 69,308.35(Annex Building) 2,305.29
98 COMFORIA SHINJUKU EASTSIDE TOWER Shinjuku, Shinjuku-ku, Tokyo(Gate Building)
203.15
Ojima, Koto-ku, Tokyo
2,828.47
99 COMFORIA OJIMA
Omorikita, Ota-ku, Tokyo
1,232.52
100 COMFORIA OMORI TROIS
4,062.44
101 COMFORIA SAPPORO SHOKUBUTSUEN Kitanijonishi, Chuo-ku, Sapporo-shi, Hokkaido
Tenjinbashi, Kita-ku, Osaka-shi, Osaka
2,374.77
102 COMFORIA OGIMACHI
Ichigayayakuojimachi, Shinjuku-ku, Tokyo
1,392.29
103 COMFORIA ICHIGAYAYAKUOJI
Higashikanda, Chiyoda-ku, Tokyo
5,192.38
104 COMFORIA AKIHABARA EAST
Shiba, Minato-ku, Tokyo
1,096.43
105 COMFORIA MITA TROIS
Honkomagome, Bunkyo-ku, Tokyo
1,971.16
106 COMFORIA BUNKYOHAKUSAN
Kamata, Ota-ku, Tokyo
7,900.68
107 COMFORIA KAMATA
1,923.34
108 COLLEGE COURT HACHIMANYAMA Kamitakaido, Suginami-ku, Tokyo
Bakuromachi, Chuo-ku, Osaka-shi, Osaka
3,407.91
109 COMFORIA SHINSAIBASHI EAST
Kyomachibori, Nishi-ku, Osaka-shi, Osaka
2,625.18
110 COMFORIA KYOMACHIBORI
Enokojima, Nishi-ku, Osaka-shi, Osaka
2,844.34
111 COMFORIA AWAZA
Gyotokuekimae, Ichikawa-shi, Chiba
1,347.25
112 COMFORIA GYOTOKU

106
36
75
60
71
52
144
51
89
65
69
29
90
48
36
144
73
42
56
136
43
63
77
55
46
211
86
36
39
52
46
104
60
69
97

2,912,150
1,344,000
1,530,000
956,000
1,972,000
990,000
4,268,000
1,560,000
1,789,000
1,806,000
1,623,000
736,000
1,712,000
1,132,000
1,077,000
1,653,400
1,010,000
1,621,000
1,625,000
5,000,000
1,434,000
1,956,000
3,272,000
1,471,000
1,042,000
4,681,000
1,510,000
813,000
1,041,000
1,406,000
1,245,000
3,794,280
660,000
1,900,000
1,430,000

1.5
0.7
0.8
0.5
1.0
0.5
2.3
0.8
0.9
1.0
0.9
0.4
0.9
0.6
0.6
0.9
0.5
0.9
0.9
2.7
0.8
1.0
1.7
0.8
0.6
2.5
0.8
0.4
0.6
0.7
0.7
2.0
0.4
1.0
0.8

765

13,264,000

7.0

99
45
42
88
21
131
32
56
203
73
112
84
84
56

2,110,000
866,000
1,250,000
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

1.1
0.5
0.7
0.8
0.5
2.3
0.5
0.7
3.0
0.7
1.1
0.8
0.7
0.5

380,719.42

8,129

187,471,137

99.4

1,213.34

39

1,065,680

0.6

Kasuga, Bunkyo-ku, Tokyo
Honkomagome, Bunkyo-ku, Tokyo
Shinohashi, Koto-ku, Tokyo
Kiba, Koto-ku, Tokyo
Kamiosaki, Shinagawa-ku, Tokyo
Nishimagome, Ota-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
Uehara, Shibuya-ku, Tokyo
Sasazuka, Shibuya-ku, Tokyo
Shinjuku, Shinjuku-ku, Tokyo
Ichigayayanagicho, Shinjuku-ku, Tokyo
Iwatocho, Shinjuku-ku, Tokyo
Higashiikebukuro, Toshima-ku, Tokyo
Higashiikebukuro, Toshima-ku, Tokyo
Koyasudori, Kanagawa-ku, Yokohama-shi, Kanagawa
Shinsakae, Naka-ku, Nagoya-shi, Aichi
Kitahorie, Nishi-ku, Osaka-shi, Osaka
Nibancho, Chiyoda-ku, Tokyo
Kitashinjuku, Shinjuku-ku, Tokyo
Ikejiri, Setagaya-ku, Tokyo
Kandajinbocho, Chiyoda-ku, Tokyo
Nihonbashibakurocho, Chuo-ku, Tokyo
Shibaura, Minato-ku, Tokyo
Mita, Minato-ku, Tokyo
Taihei, Sumida-ku, Tokyo
Minamisuna, Koto-ku, Tokyo
Higashishinagawa, Shinagawa-ku, Tokyo
Yakumo, Meguro-ku, Tokyo
Yoga, Setagaya-ku, Tokyo
Shinjuku, Shinjuku-ku, Tokyo
Iwatocho, Shinjuku-ku, Tokyo
Nakajuku, Itabashi-ku, Tokyo
Kitasanjohigashi, Chuo-ku, Sapporo-shi, Hokkaido
Higashiazabu, Minato-ku, Tokyo
Kitashinagawa, Shinagawa-ku, Tokyo

Sub-total

Assets acquired in the 15th Fiscal Period
Shibaura, Minato-ku, Tokyo
113 COMFORIA SHIBAURA

Rentable Acquisition price Investment
units(thousands of yen) ratio (%)

Sub-total

1,213.34

39

1,065,680

0.6

Total

381,932.76

8,168

188,536,817

100.0

13

Portfolio List
Central Tokyo

98 COMFORIA SHINJUKU EASTSIDE TOWER

96 COMFORIA AZABU EAST

71 COMFORIA SASAZUKA

93 COMFORIA KAGURAZAKA DEUX

72 COMFORIA SHINJUKUGYOEN Ⅱ

69 COMFORIA KITASANDO

86 COMFORIA AZABUJUBAN

70 COMFORIA YOYOGIUEHARA

60 COMFORIA MITA EAST

85 COMFORIA TAMACHI

Sub-central Tokyo
84 COMFORIA NIHONBASHI

14

83 COMFORIA KANDAJINBOCHO

80 COMFORIA NIBANCHO

97 COMFORIA SHINAGAWA EAST

91 COMFORIA YOGA

15

Portfolio List

Basic Policies

51 COMFORIA ASAKUSABASHI

89 COMFORIA HIGASHISHINAGAWA

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

■■ “COMFORIA” Series
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.
Four Advantages COMFORIA Offers

88 COMFORIA MINAMISUNAMACHI

87 COMFORIA KINSHICHO

82 COMFORIA KOMABACOMFORIA knows
how valuable time is.

COMFORIA knows
what high quality
feels like.

COMFORIA knows
where peace of mind
comes from.

COMFORIA knows
how residents feel.

■■ Value Chain of the Tokyu Fudosan Holdings GroupWe have concluded sponsor support agreements, support agreements and property management agreements for managed assets with the Asset Management Company and the Tokyu Fudosan Holdings Group companies to fully utilize
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 LAND CORPORATION
Comprehensive real estate developer

Tokyo metropolitan area

Sponsor support agreement

Other major cities● Information on the sale of properties

Tokyu Housing Lease Corporation
Property management/Tenant leasing

42 COMFORIA YOKOHAMAKANNAI

47 COMFORIA YATSUKA

54 COMFORIA SHIN-OSAKA

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

Support agreement● Considering becoming tenants● Market information● Information on the sale of properties● Market information

Property management agreement

TOKYU COMMUNITY CORP.
Management of condominiums and buildings

TLC REIT Management Inc.

EWEL, Inc.
Welfare service agency businessSupport agreement

Support agreement● Information on the sale of properties● Information on the● Considering becoming tenants● Market information

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

16

TOKYU SPORTS OASIS, Inc.
Management, planning and operation of
a comprehensive fitness club based on
private membershipwelfare services forresidential tenants

Support agreement● Providing information and making proposals

concerning services, etc. for tenants ofrental residences.

17

Overview of the Investment Corporation andAsset Management Company■■ Overview of the Investment Corporation
Name of the investment
Comforia Residential REIT, Inc
corporation
Representative

Takehiro Izawa, Executive Director

Address

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

Inquiries

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

Fiscal period-end

January 31 and July 31 ofeach year

History
June 8, 2010

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

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

Sponsor

2

TOKYU LAND CORPORATION

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

5
Asset Management Company

1

Comforia Residential REIT, Inc

TLC REIT Management Inc.

6

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

General Administration (accounting, etc.)
Heiseikaikeisha Tax Corporation

Board of Directors

Supporting Company

3

Unitholders’ Meeting

4

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

General Administration (corporation bond)
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

4

Fiscal, issuing andpayment agency agreement

5 Sponsor support agreement
6 Support agreement■■ Overview of the Asset Management Company
Trade name

TLC REIT Management, Inc.

Shareholder

Hiroyuki Tomata,Representative
President & CEO
Address

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

Established

October 2009

Capita¥200 million

Tokyu Land Corporation 100%

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

Overview of Organization
Shareholders’ Meeting
Corporate Auditor
Board of Directors
Compliance Committee

Investment Committee
President & CEO

Acquisition Priority Review Meeting
Compliance Dept.

Internal Audit Dept.

Activia
Management Div.
Corporate Planning &Administration Dept.

18

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.

Ⅰ
Ⅰ. Asset Management Report
II. Asset Management Report

Overview of Asset Management

Overview of Asset Management

Asset Management Report for the 14th Fiscal Period(Semi-Annual Report)

1. Performance of the Investment Corporation

From February 1, 2017 to July 31, 2017

Fiscal period

10th
Fiscal Period

11th
Fiscal Period

12th
Fiscal Period

13th
Fiscal Period

14th
Fiscal PeriodBusiness period

FromFeb. 1, 2015 toJul. 31, 2015

From
Aug. 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

6,674

7,276

[4,942][4,957][6,531][6,674][7,276]

3,885

4,178

[1,919][1,902][3,196][3,249][3,518]

2,788

3,098

2,087

2,148

2,312

2,341

2,613

Operating revenue(millions of yen)

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

Operating expenses(millions of yen)

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

Operating profit(millions of yen)

Ordinary profit(millions of yen)

Profit(millions of yen)

Total assets(millions of yen)

[Period-on-period change](%)

Net assets(millions of yen)

[Period-on-period change](%)

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(millions of yen)

2,416
2,535
2,086

5,050
2,446
2,603
2,147

[2.2]

85,139[11.5]

85,171

97,258[0.0]

75,22475,22482,743[14.2]

82,743

94,557

513,504

563,694

165,863

172,537

2,335

2,638

[31.9]

473,804

[0.2]
[0.1]

473,804

Distribution per unit

(yen)

[Earnings distribution per unit](yen)[4,403][4,339][Distribution in excess of earnings
per unit]

(yen)

[–]

Return on assets(Note 1)(%)

1.4

Return on unitholders’ equity(Note 2)(%)

Unitholders’ equity ratio(Note 3)(%)(Note 4)(%)

Payout ratio(Note 5)(%)

Number of properties(properties)

Total leasable area(m2)

Depreciation
Capital expenditure
NOI(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(%)(millions of yen)(millions of yen)

(Note 6)(millions of yen)

2,608
205,12177,369[19.6](millions of yen)Interest-bearing debt ratio

2,335

77,310Total distributions

(%)

2,304

183,902(yen)(millions of yen)

2,746

179,944(units)Interest-bearing debt

3,785

159,245

Net assets per unit

[Period-on-period change]

6,531

158,962

Number of investment units issued

Occupancy rate at end of period

20

4,952

163,169

2,086
4,403

3.1

48.6

[4.5]

163,295

2,055
4,339

[13.0][10.0]

513,504
165,801

2,304
4,487

4,549

4,681

[4,487][4,549][4,681]

[–]

[–]

[– ]

[– ]

1.4

1.4

1.3

1.3

2.8

48.6

2.7

2.9

47.3

46.3

47.4

78,99079,27091,060[–1.0][1.1]

94,970103,620

51.6

50.5

99.9

95.7

99.9

100.0

101.1

49.7

94

[–0.0]

2.8

49.8

94

[–1.3]

50.6

98

101

110

214,620.36

217,652.64

272,172.73

278,745.27

303,025.09

96.5

96.1

816

821

1,017

1,049

1,137

112

386

3,875

4,352

4,474

4,896

95.5

52

3,839

96.2

52

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

96.3
131

21

Overview of Asset Management
2. Asset Management Status for the 14th 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 14th Fiscal Period includes 110 properties,
acquired for a total of ¥187,471 million.
(2) Investment performance(i) Investment environment
During the 14th 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 14th Fiscal Period, the Investment Corporation acquired a total 9 properties of COMFORIA AKIHABARA
EAST and other 7 properties in February 2017 and COMFORIA GYOTOKU in June 2017. As a result, assets owned by
the Investment Corporation as of the end of the 14th Fiscal Period totaled 110 properties, acquired for a total of ¥187,471
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 14th Fiscal Period, the Investment Corporation conducted additional issuance of investment units (50,190 units)
and borrowed funds (¥10,190 million) to be appropriated for the acquisition of COMFORIA AKIHABARA EAST and sevenother properties in February 2017 as well as for the repayment of borrowings (¥2,540 million) undertaken in September 2016
and December 2016. Subsequently, additional borrowings of funds were undertaken to acquire COMFORIA GYOTOKU(¥1,000 million). Furthermore, the Investment Corporation issued investment corporation bonds (¥3,000 million) in July 2017
to be appropriated for the partial repayment of borrowings (¥3,000 million) undertaken in February 2017 and June 2017. As aresult, unitholders’ capital as of the end of the 14th Fiscal Period (July 31, 2017) was ¥94,557 million, interest-bearing debt
was ¥103,620 million, the ratio of interest-bearing debt to total assets (LTV) was 50.5%, the average maturity of interestbearing debt was 4.3 years, the ratio of long-term debt was 87.3%, and the fixed rate ratio was 87.9%. 
The Investment Corporation obtained the following rating as of the end of the 14th 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 14th Fiscal Period, the Investment Corporation posted operating revenue of ¥7,276 million,
operating profit of ¥3,098 million, ordinary profit of ¥2,613 million, and profit of ¥2,608 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 14th Fiscal Period, the Investment Corporation
reversed part (¥30 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 ¥4,681
for the period.

22

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

75,224(Note 10)February 1, 2016

Capital increase throughpublic offering

37,800511,604

7,159

82,383(Note 11)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)

(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

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

Closing month/year

Jul. 2015

Jan. 2016

Jul. 2016

Jan. 2017

Highest¥266,300¥242,500¥250,900

Lowest¥232,600¥189,600¥206,900¥262,500¥231,600

14th Fiscal Period
Jul. 2017¥261,600¥219,40023

Overview of Asset Management
4. Performance of Distributions
DPU for the 14th Fiscal Period was ¥4,681. 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

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

14th Fiscal PeriodBusiness period

From Feb. 1, 2015
to Jul. 31, 2015

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

¥255 thousand¥92,251 thousand¥193 thousand[¥4,403][¥4,339][¥4,487]

Unappropriated retained earnings
Retained earnings
Total distributions[Distribution per unit]
Of which, total earnings
distributions[Earnings distribution per unit]
Of which, total return on
unitholders’ capital¥2,086,414 thousand ¥2,148,086 thousand ¥2,304,285 thousand¥2,336,057 thousand¥2,608,344 thousand¥2,086,159 thousand ¥2,055,835 thousand ¥2,304,092 thousand¥2,335,929 thousand¥2,638,651 thousand[¥4,549][¥4,681]¥2,086,159 thousand ¥2,055,835 thousand ¥2,304,092 thousand¥2,335,929 thousand¥2,638,651 thousand¥127 thousand¥17 thousand[¥4,403][¥4,339][¥4,487][¥4,549][¥4,681]¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Return on unitholders’ capital per
unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on unitholders’capital, the total distribution
payments from the allowance fortemporary 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 from investments andother decreased distribution undertax laws¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Of the total return on unitholders’capital per unit, the distribution
payments from investments andother decreased distribution undertax laws]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

(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 15th 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 14th 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
Not applicable(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 nine assets during the 14th 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, utilizing the support of the Tokyu
Fudosan Holdings Group, primarily the sponsor support of Tokyu Land, and original information from TLC REIT Management
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.
(Note) The Asset Management Company conducted, on April 1, 2017, an absorption-type merger with The Asset Management Company as the surviving
company and TLC Activa Investment Management Inc. as an absorbed company (hereinafter referred to as the “Merger”), and succeeded partof business with Tokyu Land Capital Management Inc. through an absorption-type split (hereinafter referred to as the “Corporation Split” andaltogether with the Merger, the “Reorganization”). Furthermore, on April 1, 2017, the Asset Management Company changed its trade namefrom TLC Comforia Investment Management Inc. to TLC REIT Management Inc. in line with the Reorganization.

24

25

Overview of the Investment Corporation
Overview of the Investment Corporation
3. Matters concerning Directors, etc.

1. Unitholders’ Capital

Total number of authorized
investment units

10th Fiscal
Period11th Fiscal
Period12th Fiscal
Period13th Fiscal
Period14th Fiscal
PeriodAs ofJul. 31, 2015

As ofJan. 31, 2016

As ofJul. 31, 2016

As ofJan. 31, 2017

As ofJul. 31, 2017

8,000,000

8,000,000

8,000,000

8,000,000

8,000,000(units)Total number of investment
units issued(units)473,804

473,804

513,504

513,504

563,694

Unitholders’ capital(millions of yen)

75,22475,22482,74382,743

94,557

Number of unitholders(people)

8,148

7,530

7,749

6,834

7,897

2. Matters concerning Investment Units
Major unitholders as of July 31, 2017 are as follows.
Name

Number of investment units
owned (units)

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

Japan Trustee Services Bank, Ltd. (trust account)

187,940

33.34

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

52,784

9.36

Tokyu Land Corporation

51,664

9.16

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

31,219

5.53

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

22,803

4.04

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

10,748

1.90

The Asahi Fire And Marine Insurance Company Limited

8,600

1.52

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

8,259

1.46

DFA INTERNATIONAL REAL ESTATE SECURITIESPORTFOLIO(Standing proxy: CITI BANK, N. A.) Tokyo Branch

5,632

0.99

STATE STREET BANK AND TRUST COMPANY 505012(Standing proxy: The Hongkong and Shanghai Banking
Corporation, Tokyo Branch)

5,251

0.93

Total

384,900

68.28(Note)The ratio of investment units owned to the total number of investment units issued is rounded down to the second decimal place.

(1) Name of directors, etc.
The names of directors, etc. during the 14th Fiscal Period are as follows.
Position

Name of director, etc.

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

Main concurrent posts

Hiroyuki Tomata(Note 3)President & CEO, TLC Comforia Investment
Management INC.

–

Takehiro Izawa(Note 3)

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

–

Supervisory
Director(Note 1)

Yoshihiro Kataoka

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

1,800

Supervisory
Director(Note 1)

Koji Yamamoto

Partner, Shiki-Sogo Law and Accounting Office
Supervisory Officer, Toshi Saisei Fund Investment
Corporation

1,800

Independent
AuditorErnst & Young
ShinNihon LLC(Note 2)–

18,828

Executive
Director(Note 1)

(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 2017 and the issuance of investment corporation bonds in July 2017.
(Note 3) Hiroyuki Tomata resigned as Executive Director of the Investment Corporation on March 31, 2017, and Substitute Executive Director Takehiro
Izawa was appointed as a new Executive Director on April 1, 2017.

(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 July 31, 2017 are as follows.
Consignment segment

26

Name

Asset management company

TLC REIT Management Inc.

Asset custodian

Mitsubishi UFJ Trust and Banking Corporation

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

General administration (accounting service)

Heiseikaikeisha Tax Corporation

General administration (administrative service)

Mitsubishi UFJ Trust and Banking Corporation

General administration (corporation bond service)

Sumitomo Mitsui Trust Bank, Limited

27

Status of Managed Assets of the Investment Corporation
Status of Managed Assets of the Investment Corporation
1. Composition of Assets of the Investment Corporation
Type ofasset

3. Statement of Properties Incorporated in the Portfolio

13th Fiscal Period(as of January 31, 2017)

Area

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

The overview of assets under management of the Investment Corporation as of July 31, 2017 is as follows.

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

Percentage of total
assets (%) (Note 2)

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

Percentage of total
assets (%) (Note 2)

Sub-central Tokyo

3,215

1.7

3,201

1.6

Other major cities

1,058

0.6

1,050

0.5

Central Tokyo

79,14543.0

84,312

41.1

Properties Sub-central Tokyo
in trust
Tokyo metropolitan area

74,758

40.7

83,107

40.5

3,686

2.0

4,713

2.3

7,682

4.2

12,675

6.2

Subtotal

169,54692.2

189,060

92.2

Deposits and other assets

14,355

7.8

16,061

7.8

Total assets

183,902100.0

205,121

100.0

Real
estateOther major cities(Note 1)
(Note 2)Area

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.
Rentable area(m2)

Rented area(m2)

13,884

48,267.60

45,916.97

Ratio to total
Occupancy rate
rental revenues Main usage
(%)
(%)
95.1

19.7

Apartment
building

COMFORIA KAMATA

5,895

6,027.98

5,933.31

98.4

Apartment
2.1
building

COMFORIA KOMABA

5,219

5,342.38

5,032.94

94.2

1.8

Apartment
building

COMFORIA
MINAMISUNAMACHI

4,719

6,141.98

5,918.53

96.4

1.8

Apartment
building

COMFORIA AKIHABARA
EAST

4,545

4,582.07

4,405.56

96.1

1.6

Apartment
building

COMFORIA KITASANDO

4,275

4,968.40

4,699.28

94.6

1.9 Residence

COMFORIA
ITABASHINAKAJUKU

4,014

6,966.04

6,633.16

95.2

Apartment
1.7
building

COMFORIAHIGASHIIKEBUKURO WEST

3,793

6,436.14

6,274.31

97.5

2.2

Apartment
building

COMFORIA HARAJYUKU

3,540

4,528.51

4,452.53

98.3

1.7

Apartment
building

COMFORIA TAMACHI

3,420

4,251.63

4,067.43

95.7

1.3

Apartment
building

53,30897,512.73

93,334.02

95.7

35.8

Total

28

Central Tokyo

COMFORIA SHINJUKUEASTSIDE TOWER

Book value(millions of yen)

Address

Ownership form

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

“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.

Property name

Property name
COMFORIA NIHONBASHININGYOCHO

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

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

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

1,555

2,470

1,894

1,520

1,123

669

556

3,940

3,030

755

561

1,690

1,345

927

736

1,490

1,064

382

247

2,040

1,624

4,590

3,540

1,070

865

3,240

2,596

1,580

1,322

2,550

2,102

940

823

1,500

1,277

1,310

1,096

2,150

1,827

2,470

1,944

3,660

3,154

29

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)

(Note 1)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

Central Tokyo

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

18-2 Ichigaya Yanagicho, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA

26-1 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA NIBANCHO

4-8 Nibancho, Chiyoda-ku, Tokyo

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

COMFORIA ICHIGAYAYAKUOJI

74-23 Ichigayayakuojimachi, Shinjuku-ku, Tokyo

COMFORIA AKIHABARA EAST

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

COMFORIA MITA TROIS

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

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

1,880

1,554

COMFORIA BUNKYOKASUGA

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

4,990

4,275

COMFORIAASAKUSAMATSUGAYA

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

1,810

1,556

COMFORIA NISHIOI

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

2,200

1,789

COMFORIA NAKANO

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

2,150

1,795

COMFORIA SHIMOKITAZAWA

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

1,880

1,619

COMFORIA NISHIKAMATA

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

843

731

COMFORIA OYAMA

4-4 Oyamacho, Itabashi-ku, Tokyo

1,840

1,638

COMFORIA
KIYOSUMISHIRAKAWA SOUTH

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

1,710

1,648

COMFORIA KOMAZAWA

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

1,580

1,500

COMFORIA KOISHIKAWA

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

2,150

1,989

COMFORIA SENGOKU

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

3,600

3,420

COMFORIA
DAIKANYAMAAOBADAI

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

1,620

1,492

COMFORIA IKEBUKURO

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

1,500

1,427

COMFORIA
RYOGOKUISHIWARA

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

1,370

1,267

COMFORIA ASAKUSABASHI
DEUX

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

2,770

1,939

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

14,90013,884Sub-central Tokyo

COMFORIA SHIBAURA CANAL

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

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

970

998

4,590

4,545

COMFORIA HIMONYA

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

894

945

COMFORIA MISYUKU

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

98,29084,312

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

30

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)4-2-19 Higashi-Nakano, Nakano-ku, Tokyo

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

2,000

1,403

1,230

854

1,030

889

993

876

3,260

2,448

2,100

1,475

2,320

1,967

915

705

1,640

1,243

665

532

1,690

1,206

1,330

931

671

580

779

627

1,010

864

820

708

877

755

995

849

2,960

2,579

1,560

1,194

2,430

1,828

1,460

1,129

1,070

814

31

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

COMFORIAHIGASHISHINAGAWACOMFORIA
MEGUROYAKUMO

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

Beneficial interestin real estate trust

COMFORIA YOGA

3-24-3 Yoga, Setagaya-ku, Tokyo(Note 1)

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

COMFORIA OMORI DEUX

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

COMFORIA MACHIYA

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

COMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH

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

COMFORIA TOYOSU

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

COMFORIA SUMIDATACHIBANA

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

COMFORIA UENOHIROKOJI
Sub-central Tokyo

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

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

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

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

COMFORIA MORISHITA

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

COMFORIA KIBAKOEN

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

COMFORIA MEGUROCHOJAMARU

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

COMFORIA NISHIMAGOME

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

COMFORIAHIGASHIIKEBUKURO EAST

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

COMFORIAHIGASHIIKEBUKURO

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

COMFORIA KOMABA

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

COMFORIA KINSHICHO

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

COMFORIA
MINAMISUNAMACHI

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

3,793

1,230

1,026

1,380

1,201

842

603

3,430
1,590

2,625

Sub-central Tokyo

COMFORIA RYOGOKU DEUX

5,190

1,216

3,700

3,029

1,040

958

COMFORIA
ITABASHINAKAJUKUCOMFORIA SHINAGAWAEASTCOMFORIA OJIMACOMFORIA OMORI TROISCOMFORIA BUNKYO
HAKUSAN

1,230

1,047

3,420

2,891

1,640

1,330

1,100

1,090

62-2 Nakajuku, Itabashi-ku, Tokyo

4,120

4,014

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

Beneficial interestin real estate trust

1,540

1,559

2,170

2,269

4-8-10 Ojima, Koto-ku, Tokyo
3-36-7 Omorikita, Ota-ku, Tokyo
1-3-2 Honkomagome, Bunkyo-ku, Tokyo
4-21-2 Kamata, Ota-ku, Tokyo
1-15-1 Kamitakaido, Suginami-ku, Tokyo

COMFORIA KOMAE

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

COMFORIA
YOKOHAMAKANNAICOMFORIA
ICHIKAWAMYODEN

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

1,750

1,509

1,100

944

2,420

1,992

1,120

988

2,300

1,702

1,330

1,123

5,310

5,219

1,160

1,065

4,880

4,719

COMFORIA GYOTOKUCOMFORIA SHIN-OSAKACOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA KITASANJOCOMFORIA SAPPOROSHOKUBUTSUENReal estate
Real estate
Beneficial interestin real estate trust
Beneficial interestin real estate trust
Beneficial interestin real estate trust
Beneficial interestin real estate trust
Beneficial interestin real estate trust

Beneficial interestin real estate trust
Beneficial interest
3-38-3 Sezaki, Soka-shi, Saitama
in real estate trust
2-216-2 Koyasudori, Kanagawa-ku, Yokohama-shi, Beneficial interestin real estate trust
Kanagawa
Beneficial interest
2-1-13 Gyotokuekimae, Ichikawa-shi, Chibain real estate trust
Subtotal
1-21-24 Higashi-Nakajima, Higashi-Yodogawa-ku, Beneficial interestin real estate trust
Osaka-shi, Osaka
Beneficial interest
2-28-18 Shinsakae, Naka-ku, Nagoya-shi, Aichi
in real estate trust
Real estate
3-12-2 Kita-Horie, Nishi-ku, Osaka-shi, Osaka
2-2-51 Kita-Sanjo Higashi, Chuo-ku, Sapporo-shi, Beneficial interestin real estate trust
Hokkaido
1-9-10 Shioyaki, Ichikawa-shi, Chiba

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

Beneficial interestin real estate trust
Beneficial interest
COMFORIA OGIMACHI
3-7-15 Tenjinbashi, Kita-ku, Osaka-shi, Osakain real estate trust
COMFORIA SHINSAIBASHI
Beneficial interest
2-6-8 Bakuromachi, Chuo-ku, Osaka-shi, Osakain real estate trust
EAST
Beneficial interest
COMFORIA KYOMACHIBORI 1-16-14 Kyomachibori, Nishi-ku, Osaka-shi, Osaka in real estate trust
Beneficial interest
COMFORIA AWAZA
1-5-5 Enokojima, Nishi-ku, Osaka-shi, Osakain real estate trust
Subtotal
Total(Note 1)

(Note 2)32832

COLLEGE COURTHACHIMANYAMA

COMFORIA SHINKOYASU

1,554

863

COMFORIA KAMATACOMFORIA YATSUKA

1,660

Beneficial interestin real estate trust
Beneficial interestin real estate trust
Beneficial interestin real estate trust

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

Subtotal

Tokyo metropolitan area

3-22-21 Higashi-Ikebukuro, Toshima-ku, Tokyo(Note 1)Other major cities

COMFORIAHIGASHIIKEBUKURO WEST

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)

905

932

1,380

1,409

5,880

5,895

1,250

1,291

100,735

86,309

559

422

1,270

935

726

612

688

626

1,240

1,066

992

1,049

5,475

4,713

2,810

2,355

1,810

1,697

1,080

1,050

940

686

1,270

1,349

1,530

1,537

2,010

2,068

1,600

1,629

1,330

1,351

14,38013,725

218,880
189,060“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 14th Fiscal Period(July 31, 2017) minus accumulated depreciation, and does not include construction in progress or construction in progress in trust.

33

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.

Area

Property name

Central Tokyo

COMFORIA NIHONBASHININGYOCHOCOMFORIA WASEDACOMFORIA SHIMOOCHIAICOMFORIA HIGASHINAKANOCOMFORIA GINZA EASTCOMFORIA AZABUDAICOMFORIA SHIBAKOENCOMFORIA NISHIAZABUCOMFORIA MINAMIAOYAMACOMFORIA MINAMIAOYAMADEUXCOMFORIA NISHIWASEDA

34

COMFORIA 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 TROIS
Subtotal

13th Fiscal Period(from August 1, 2016 to January 31, 2017)

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

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

95.5

58,027

0.9

1

94.0

56,667

0.8

1

99.0

67,345

1.0

1

90.1

67,077

0.9

1

95.9

47,498

0.7

1

98.2

48,067

0.7

1

91.3

21,205

0.3

1

94.5

20,792

0.3

1

97.9

115,722

1.7

1

98.3

113,928

1.6

1

100.0

22,108

0.3

1

90.1

22,145

0.3

1

98.4

49,720

0.7

1

94.5

50,536

0.7

1

91.3

26,129

0.4

1

91.6

24,882

0.3

1

76.3

34,101

0.5

1

100.0

33,140

0.5

1

100.0

11,3880.2

100.0

12,044

0.2

1

98.2

62,249

0.9

1

94.7

59,941

0.8

1

96.5

124,199

1.9

1

98.3

127,156

1.7

1

96.2

29,943

0.4

1

100.0

29,9370.4

98.7

98,067

1.3

89.8

43,738

0.6

1
1

98.7

97,386

1.5

97.5

44,041

0.7

1

1
1

1

95.3

64,934

1.0

1

98.2

67,292

0.9

1
1

97.5

28,7980.4

28,656

0.4

39,678

0.6

1
1

97.5

93.9

97.2

40,168

0.6

1

97.2

36,520

0.5

1

100.0

37,147

0.5

1

100.0

60,226

0.9

1

96.7

59,393

0.8

1

92.5

60,889

0.9

1

95.1

63,703

0.9

1

97.6

97,562

1.5

1

97.0

98,441

1.4

1

97.9

53,200

0.8

1

96.8

53,207

0.7

1

96.3

135,908

2.0

1

94.6

135,856

1.9

1

98.2

50,340

0.8

1

98.4

49,264

0.7

1

100.0

67,354

1.0

1

96.8

66,960

0.9

1

96.8

56,745

0.9

1

100.0

57,330

0.8

1

97.8

46,649

0.7

1

96.2

50,044

0.7

1

97.1

23,012

0.3

1

97.0

23,959

0.3

1

100.0

50,700

0.8

1

93.3

49,802

0.7

1

91.7

45,605

0.7

1

94.8

47,453

0.7

1

100.0

42,677

0.6

1

88.9

43,567

0.6

1

95.7

61,781

0.9

1

98.6

62,277

0.9

1

98.7

97,959

1.5

1

95.7

98,190

1.3

1

98.2

41,177

0.6

1

96.4

42,294

0.6

1

94.8

42,467

0.6

1

89.6

41,628

0.6

1

100.0

39,726

0.6

1

100.0

40,511

0.6

1

96.6

70,881

1.1

1

95.5

73,991

1.0

1

95.2

1,425,036

21.4

1

95.1

1,434,472

19.7

1

84.0

6,102

0.1

1

100.0

23,998

0.3

-

-

-

-

1

96.1

115,481

1.6

-

-

-

-

1

91.1

22,533

0.3

2

96.1

3,557,008

53.3

2

95.8

3,735,750

51.3

Area

Property nameSub-central Tokyo

13th Fiscal Period(from August 1, 2016 to January 31, 2017)

COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATACOMFORIA 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 MEGUROYAKUMO

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

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
1

98.3
94.3

60,01544,652

0.9
0.7

1
1

98.1
97.9

60,24444,920

0.8
0.6

1
1
1
1
1

98.3
98.2
96.3
95.0
97.1

31,63730,506
91,23066,11079,025

0.5
0.5
1.4
1.0
1.2

1
1
1
1
1

98.3
91.5
95.5
95.9
95.3

31,582
32,984
95,66265,08377,786

0.4
0.5
1.3
0.9
1.1

1

97.8

27,833

0.4

1

93.3

28,652

0.4

1
1
1

97.6
100.0
95.4

42,98621,081
51,653

0.6
0.3
0.8

1
1
1

94.0
100.0
97.5

42,563
21,55353,608

0.6
0.3
0.7

1

97.4

36,342

0.5

1

100.0

35,235

0.5

1

100.0

22,281

0.3

1

96.5

22,024

0.3

1

100.0

25,590

0.4

1

100.0

28,739

0.4

1

98.1

30,497

0.5

1

100.0

30,531

0.4

1

100.0

25,853

0.4

1

100.0

26,498

0.4

1

100.0

27,604

0.4

1

98.2

28,227

0.4

1

100.0

31,208

0.5

1

98.0

31,523

0.4

1

97.9

90,973

1.4

1

99.3

90,774

1.2

1
1

100.0
100.0

41,54865,741

0.6
1.0

1
1

94.0
93.4

42,83664,867

0.6
0.9

1

95.4

40,696

0.6

1

92.2

40,017

0.5

1

97.9

30,291

0.5

1

90.1

30,522

0.4

1

97.6

157,968

2.4

1

97.5

159,543

2.2

1
1
1
1
1
1

98.7
91.3
100.0
97.9
94.5
97.6

36,961
39,16525,721
101,868
47,071
97,291

0.6
0.6
0.4
1.5
0.7
1.5

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

92.3

31,265

0.5

1

100.0

32,125

0.4

1

96.5

32,982

0.5

1

97.6

34,041

0.5

1

100.0

90,915

1.4

1

95.7

90,431

1.2

1
1
1

100.0
100.0
96.7

47,03849,45832,225

0.7
0.7
0.5

1
1
1

100.0
97.3
98.3

44,59749,531
33,553

0.6
0.7
0.5

1

90.4

70,853

1.1

1

98.6

69,316

1.0

1

93.8

30,889

0.5

1

98.1

31,687

0.4

1

95.4

67,852

1.0

1

95.7

66,998

0.9

1

100.0

38,003

0.6

1

98.0

37,179

0.5

1
1

99.0
98.2

133,955
34,401

2.0
0.5

1
1

94.2
98.1

131,338
34,067

1.8
0.5

1

93.9

130,707

2.0

1

96.4

131,837

1.8

1

100.0

51,568

0.8

1

98.2

51,393

0.7

1

94.1

26,876

0.4

1

92.0

26,1380.4

35

Status of Managed Assets of the Investment Corporation
13th Fiscal Period(from August 1, 2016 to January 31, 2017)

Other major cities

Tokyo metropolitanarea

Sub-central Tokyo

Area(Note 1)

(Note 2)36

Property name

COMFORIA YOGACOMFORIA
ITABASHINAKAJUKUCOMFORIA SHINAGAWA EASTCOMFORIA OJIMACOMFORIA OMORI TROISCOMFORIA 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

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

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

97.8

30,376

0.5

1

90.5

31,314

0.4

1

97.0

120,725

1.8

1

95.2

120,332

1.7

1

97.2

70,095

1.1

1

100.0

78,351

1.1

1

97.0

55,421

0.8

1

95.0

60,146

0.8

1

96.0

22,598

0.3

1

96.0

24,980

0.3

-

-

-

-

1

97.0

37,316

0.5

-

-

-

-

1

98.4

151,874

2.1

-

-

-

-

1

100.0

30,046

0.4

1

97.2

2,689,625

40.3

2

96.7

2,936,272

40.4

1

94.8

18,667

0.3

1

97.1

19,489

0.3

1

100.0

41,631

0.6

1

96.7

42,262

0.6

1

94.0

24,649

0.4

1

94.0

24,960

0.3

1

90.3

27,659

0.4

1

96.8

26,874

0.4

1

97.1

35,711

0.5

1

100.0

38,034

0.5

-

-

-

-

1

96.6

9,126

0.1

1

95.6

148,319

2.2

1

97.1

160,747

2.2

1

97.7

89,120

1.3

1

92.0

88,106

1.2

1

91.1

56,695

0.8

1

90.1

56,284

0.8

1

94.8

31,163

0.5

1

98.7

33,091

0.5

1

96.7

35,546

0.5

1

98.9

36,003

0.5

1

92.9

38,850

0.6

1

97.7

39,752

0.5

1

94.8

27,950

0.4

1

94.5

40,989

0.6

-

-

-

-

1

94.1

60,578

0.8

-

-

-

-

1

97.6

47,125

0.6

-

-

-

-

1

96.5

42,073

0.6

1

95.0

279,326

4.2

1

94.9

444,005

6.1

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 July 31, 2017 are
as follows.
Segment
Over-the-countertransactions

Type
Receive floating, pay
fixed interest-rate swap
transactions
Total(Note 1)
(Note 2)Contract amount (millions of yen)Over 1 year

(Note 1)

Fair value(millions of yen)
(Note 2)55,64548,745–55,64548,745–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 14th 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 Japan2
96.5
6,674,280
100.0
3
96.1
7,276,775
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.

37

Capital Expenditure for Properties Owned

Status of Expenses and Liabilities

Capital Expenditure for Properties Owned

Status of Expenses and Liabilities

1. Expected Capital Expenditure

1. Statement of Expenses Related to Investments

Major capital expenditure that accompanies repair 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)

PurposeScheduled period

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

Item

(Thousands of yen)

13th Fiscal Period
From Aug. 1, 2016 to Jan. 31, 2017

Asset management fee (Note)

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

381,274

394,196

Asset custody fee

6,560

6,682

Administrative service fees

25,24525,980

Directors’ compensation

3,600

3,600

219,744229,701

636,425

660,160

COMFORIA HARAJYUKU(Shibuya-ku, Tokyo)

Large-scale repair work

From Aug. 2017
to Dec. 2017

73,900－－

Other expenses

COMFORIA SENGOKU(Bunkyo-ku, Tokyo)

Large-scale repair work

From Sept. 2017
to Dec. 201759,300－－(Note) In addition to the amount stated above, asset management fees amounting to ¥36,260 thousand and ¥ 108,945 thousand in the 13th Fiscal Period and14th Fiscal Period, respectively, related to the acquisition of property are incorporated in the book value of each property．

Large-scale repair work

From Sept. 2017
to Dec. 2017

56,500－－2. Loan Status

Renovation of guest rooms

From Nov. 2017
to Nov. 2017

8,200

COMFORIA
YOYOGIUEHARA(Shibuya-ku, Tokyo)
COMFORIA SHINJUKUEASTSIDE TOWER(Shinjuku-ku, Tokyo)
COMFORIA SHINJUKUEASTSIDE TOWER(Shinjuku-ku, Tokyo)

Replacement of MB aerator

Total

The status of loans as of July 31, 2017 is as follows.
－－

Balance at theType

From Nov. 2017
to Nov. 2017

5,700

－

－

The overview of main construction works corresponding to capital expenditure that took place in the 14th Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 14th Fiscal Period was ¥386,536
thousand. Together with repair expenses of ¥282,191 thousand that were classified as expenses for the 14th Fiscal Period,
construction works totaling ¥668,727 thousand were carried out.

Total

Construction cost(thousands of yen)

PeriodFrom Mar. 2017
to Jul. 2017
From Feb. 2017
Large-scale repair work
to Jul. 2017
From Mar. 2017
Conversion of a shop section into an office
to Apr. 2017
From Apr. 2017
Electric water heater replacement work
to Jul. 2017
From May 2017
Entrance improvement work
to Jul. 2017
From Feb. 2017
Painting of iron section in common area, etc.
to Jul. 2017
Large-scale repair work

144,355
89,46927,075
13,5929,182
102,860
386,536

3. Funding Reserved for Long-Term Repair Plans
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)
Fiscal period
Balance of reserves at the
beginning of period
Amount of reserves
during period
Reversal of reserves
during period
Amount carried forward
to next period

38

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

14th Fiscal Period

From Feb. 1, 2015
to Jul. 31, 2015

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, 2017248,938

313,837

327,081

378,887

377,947

188,329

188,418

232,577

304,044

311,155

123,430

175,173

180,771304,984

339,736

313,837

327,081

378,887

377,947

349,367

Long-term loans (Note 1)

Other properties, etc.

PurposeDrawdown beginning ofcurrent perioddate

Balance at theend of current
period

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

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

(millions of yen) (millions of yen)

2. Capital Expenditure during the Period

Property name(location)
COMFORIA ITABASHINAKAJUKU(Itabashi-ku, Tokyo)
COMFORIA GINZA EAST
(Chuo-ku, Tokyo)
COMFORIA MINAMIAOYAMA(Minato-ku, Tokyo)
COMFORIA HIGASHISHINAGAWA(Shinagawa-ku, Tokyo)
COMFORIA ICHIGAYAYANAGICHO(Shinjuku-ku, Tokyo)

LenderMizuho 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

Mar. 23,2011

Feb. 3,2012

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

Feb. 4,2014

Feb. 4,2014

Jun. 30,
2014

1,090

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

Remarks(Note 2)0.53000
0.53000 Mar. 23, Lump-sum
repayment
0.53000 2019
0.53000
1.41200
1.41200
1.41200
1.41200 Sep. 29, Lump-sum
2017
repayment
1,090 1.41200

550
300

550 1.41200
300 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

(Note 4)

Unsecured
Unguaranteed(Note 4)

Unsecured
Unguaranteed

Aug. 31, Lump-sum
2018
repayment(Note 4)

Unsecured
Unguaranteed

Mar. 30, Lump-sum
2018
repayment(Note 4)

Unsecured
Unguaranteed

Sep. 30,
2019

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

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

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

500
670
670
670
670

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

1,000
500
670
670
670
670

0.60700
0.882400.882400.88240
Jan. 31,0.88240 2021
1,000 0.88240

670

0.882400.601500.601500.60150
Jun. 30,0.60150 2020
670 0.60150

350

350 0.60150

39

Status of Expenses and Liabilities

Long-term loans (Note 1)

40

LenderDevelopment 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

Drawdown beginning ofcurrent perioddate

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

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)(Note 2)

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

Feb. 2,
2016

310
360
360
360
360

310
360
360
360
360

360

360

Feb. 2,
2016

200
420
420
420
420

200
420
420
420
420

420

420

Feb. 2,
2016

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
2021
repayment
0.27125
0.27125

Feb. 3,2015

Feb. 3,2015

Feb. 3,2015

Feb. 3,2015

Mar. 23,2016

0.90100
0.90100
0.90100
Jun. 30,
0.90100 2022
0.90100

Lump-sum
repayment

0.90100
0.30820
Mar. 30, Lump-sum
0.308202018
repayment
0.308200.69250
0.69250
0.69250
Jan. 31, Lump-sum
0.69250 2022
repayment
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
repayment

Lump-sum
repayment

1.04200
0.58430
0.58430
0.58430
Mar. 31, Lump-sum
0.58430 2023
repayment
0.58430
0.58430
0.62460
0.62460
0.62460
Aug. 31, Lump-sum
0.62460 2023
repayment
0.62460
0.62460
0.677450.677450.67745
Feb. 29,0.67745 2024
0.67745

Balance at theType

LenderLump-sum
repayment(Note 4)

Unsecured
Unguaranteed(Note 4)

Unsecured
Unguaranteed(Note 4)(Note 4)

Unsecured
Unguaranteed

Unsecured
Unguaranteed(Note 4)

Unsecured
Unguaranteed(Note 4)

Unsecured
Unguaranteed(Note 4)(Note 4)(Note 4)

Unsecured
Unguaranteed

Unsecured
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

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

0.655184504500.65518(millions of yen) (millions of yen)

910
910
910
910

Jun. 30,
2014

Remarks

Long-term loans (Note 1)

Balance at theType

Mar. 23,
2016

Aug. 1,
2016

Aug. 1,
2016

Remarks(Note 2)Mar. 31, Lump-sum
2025
repayment(Note 4)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 4)

Unsecured
Unguaranteed

Mizuho Trust & Banking, Co., Ltd.

Sep. 30,
2016

1,550

-

0.20909

Sep. 30,
Lump-sum2017
repayment(Note 3)(Note 4)

Unsecured
Unguaranteed

Mitsubishi UFJ Trust and Banking
Corporation

Dec. 13,
2016

990

-

0.23000

Dec. 29,
Lump-sum2017
repayment(Note 3)(Note 4)

Unsecured
Unguaranteed

2,000
1,500
1,000
500
500
-

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

(Note 4)

Unsecured
Unguaranteed(Note 4)

Unsecured
Unguaranteed-

580

0.62938

-

290
910
910
910
910

0.62938
0.79571
0.79571
0.79571Jan. 30,
0.79571 2026

(Note 4)

Unsecured
Unguaranteed-

910

0.79571

91,970450
97,6200.79571

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
Total(Note 1)
(Note 2)

(Note 3)(Note 4)Jan. 31,2017

Feb. 2,2017Feb. 2,
2017

0.46691
0.46691
Jan. 31, Lump-sum
0.466912022
repayment
0.46691
0.466910.62938
0.62938
0.62938
Jan. 31, Lump-sum
0.62938 2024
repayment

Lump-sum
repayment

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 full amount was repaid before maturity on February 2, 2017.
The usage of funds includes purchasing properties in trust and the repayment of existing loans.

Unsecured
Unguaranteed

41

Status of Expenses and Liabilities

Purchase and Sale during the Period
Purchase and Sale during the Period
1. Purchase and Sale of Properties and Asset Backed Securities

3. Investment Corporation Bonds
The status of investment corporation bonds as of July 31, 2017 is as follows.
Issue

Issue
date

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

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

3,000

－

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

3rd Unsecured Bonds Jul. 18,(Note 1)
2017
Total
(Note 1)
(Note 2)

Maturity Repayment Use ofdatemethod funds

Security－Jul. 30, Lump-sum
3,000 0.64000
2021
repayment(Note 2)

Unsecured

1,000

－

1,000 0.23000

Jul. 15, Lump-sum
2022
repayment(Note 2)

Unsecured

－

2,000

－

2,000 0.52000

Jul. 16, Lump-sum
2027
repayment(Note 2)

Unsecured

3,000

3,000

－

6,000

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
Not applicable

5. Investment Unit Acquisition Rights
Not applicable

Property nameAcquisition

Sale

Acquisition price
Acquisition date(millions of yen)

Sale date

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

COMFORIA
AKIHABARA EAST

Feb. 2, 2017

4,425

–

–

–

–

COMFORIA MITA
TROIS

Feb. 2, 2017

890

–

–

–

–

COMFORIA
BUNKYOHAKUSAN

Feb. 2, 2017

1,330

–

–

–

–

COMFORIA KAMATA

Feb. 2, 2017

5,721

–

–

–

–

COLLEGE COURTHACHIMANYAMA

Feb. 2, 2017

1,245

–

–

–

–

COMFORIASHINSAIBASHI EAST

Feb. 2, 2017

1,980

–

–

–

–

COMFORIA
KYOMACHIBORI

Feb. 2, 2017

1,567

–

–

–

–

COMFORIA AWAZA

Feb. 2, 2017

1,289

–

–

–

–

COMFORIA
GYOTOKU

Jun. 1, 2017

978

–

–

–

–

–

19,425

–

–

–

–

Total

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

Property nameAcquisition orsale date

Acquisition Property in trust

COMFORIA
AKIHABARA EAST

Feb. 2, 2017

4,425

4,460

(1)

Oct. 31, 2016

Acquisition Property in trust

COMFORIA MITA
TROIS

Feb. 2, 2017

890

894

(2)

Oct. 31, 2016

Acquisition Property in trust

COMFORIA
BUNKYOHAKUSAN

Feb. 2, 2017

1,330

1,350

(3)

Oct. 31, 2016

Acquisition Property in trust

COMFORIA
KAMATA

Feb. 2, 2017

5,721

5,750

(1)

Oct. 31, 2016

Acquisition Property in trust

COLLEGE COURTHACHIMANYAMA

Feb. 2, 2017

1,245

1,250

(4)

Oct. 31, 2016

Feb. 2, 2017

1,980

2,000

(1)

Oct. 31, 2016

Feb. 2, 2017

1,567

1,580

(1)

Oct. 31, 2016

Acquisition Property in trust COMFORIA AWAZA

Feb. 2, 2017

1,289

1,310

(1)

Oct. 31, 2016

COMFORIA
Acquisition Property in trust
GYOTOKU

Jun. 1, 2017

978

989

(1)

Apr. 30, 2017

Type of asset

COMFORIA

Acquisition Property in trust SHINSAIBASHI

EAST

Acquisition Property in trust

COMFORIA
KYOMACHIBORI(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 appraisal companies handling the real estate appraisal of each property are (1) Japan Real Estate Institute, (2) Morii Appraisal & Investment
Consulting Inc., (3) The Tanizawa Sogo Appraisal Co., Ltd. and (4) Daiwa Real Estate Appraisal Co., Ltd.

(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.

42

43

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

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.”
Purchase and sales amount

Category
Total amount

2. Changes in the Calculation Method of Depreciation

Purchase amount

Sales amount¥19,425,000 thousand¥－ thousand

Not applicable

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

Breakdown of transactions between related parties
Tokyu Land Corporation¥13,596,000 thousand(70.0%)¥－ thousand(－ %)GK Gemini¥3,465,000 thousand(17.8%)¥－ thousand

(－ %)

Total

¥17,061,000 thousand(87.8%)¥－ thousand(－ %)(Note) The term “Related parties” refers to related parties defined in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment
Corporations as well as related parties of the Investment Corporation prescribed in Article 26, Paragraph 1, Item 27 of the Regulations Concerning
Investment Reports of Investment Trusts and Investment Corporations issued by the Investment Trusts Association, Japan. Descriptions are included
with regard to related parties that fall under any of these and that had transactions or paid commissions, etc. during the 14h Fiscal Period. (The same
shall apply in “(2) Amount of commission paid” and “(3) Major payments to other related parties” below.

(2) Amount of commission paid
Category

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

Breakdown of transaction with related parties
Payee
Tokyu Housing Lease Corporation

Amount of payment(B)(thousands of yen)

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

Property management
entrustment costs

351,106

56.9

617,302 TS Community Co., Ltd.

24,6374.0

Tokyu Community Corp.

3,370

0.5

Marketing-related
expenses

174,509 Tokyu Livable, Inc.

3,228

1.8

Other expenses related
to rent businessTokyu Sports Oasis, Inc.

9,122

5.7

159,307 Tokyu Community Corp.

980

0.6

TS Community Co., Ltd.

804

0.5

Warehousing expenses

83,944 GK Gemini

83,944100.0(3) Major payments to other related parties
Tokyu Homes Corporation¥195,768 thousand (repair work, etc.)
Ewel Inc.
¥3,315 thousand (system usage, etc.)
TS Community Co., Ltd.
¥719 thousand (repair work)

5. Transactions with Asset Management Company related to Concurrent Operations Carried Out by the AssetManagement Company

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

May 30, 2017

MatterOverview

Comprehensive resolution for the issuance of investment corporation
bonds with aggregate maximum amount of issuance of 25 billion yen
Comprehensive
resolution
for and a period of issuance from June 1, 2017 to May 31, 2018 was made.
issuance of investment corporation As to entrustment of administrative duties concerning offering ofbonds and entrustment of general investment corporation bonds and general administrative duties,
administrative duties
including issuing, financial and paying agent, a candidate company
was approved and other necessary matters to be decided were left tothe discretion of Executive Director.

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.

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.

44

45

Ⅲ. Financial Section

III. Financial Section
1. Balance Sheets(Thousands of yen)(Thousands of yen)
13th Fiscal Period(As of January 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

46

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

5,634,348
6,012,085
13,160134,716－431
11,794,742

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

1,895,400(65,971)
1,829,429
21,514(1,685)19,828
17,687(365)
17,322
1,628
(71)
1,557
2,405,775
81,019,743(6,439,898)
74,579,844
1,085,525(200,657)
884,868
1,471,940(171,110)
1,300,829
125,460(39,147)
86,312
87,211,899
168,337,668

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

1,209,138
18,421
1,227,559

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

1,508,094
981,6712,489,765
172,054,993

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

40,875
12,13553,011
183,902,747

47,00533,57780,583205,121,723

13th Fiscal Period(As of January 31, 2017)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bondLong-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

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

470,1818,840,000
55,657
122,638
5,721
12,057
1,074,184
2,567
10,583,007

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

3,000,000
83,130,000
21,121
1,901,107
94,592
1,165
88,147,987
98,730,995

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

82,743,523

94,557,898

92,17092,17092,17092,1702,336,057

2,608,344

2,428,227
85,171,751*1 85,171,751
183,902,747

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

47

3. Statements of Changes in Unitholders’ Equity

2. Statements of Income(Thousands of yen)
13th Fiscal Period(From August 1, 2016 toJanuary 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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Interest expenses on investment corporation bondAmortization of investment corporation bondissuance costs
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

13th Fiscal Period (From August 1, 2016 to January 31, 2017)

14th Fiscal Period(From February 1, 2017 to July
31, 2017)(Thousands of yen)
Unitholders' equity
Surplus*1 6,433,203*1 6,996,758

6,674,280

7,276,775*1 3,249,401*1 3,518,418*1 241,076

381,274
3,600
13,194
6,560
25,245
206,550
3,885,826
2,788,453

Unappropriatedretainedearnings(undisposed
loss)

Total
unitholders'equityTotal net assets

Total surplus

2,304,285

2,396,455

85,139,979

85,139,979

Dividends of surplus(2,304,092)(2,304,092)(2,304,092)(2,304,092)

Profit2,335,864

2,335,864

2,335,864

2,335,864*1 280,016

Unitholders'
capital394,196
3,600
13,842
6,682
25,980215,859
4,178,578
3,098,197

Balance at beginning ofcurrent period

57
1,033
440
1,532

54
964
1,019

Balance at end of current
period310,754
107,430
9,600

338,375
118,553
10,047

1,373

1,634

19,445
448,605
2,341,380
2,341,380
5,729
(214)
5,515
2,335,864
193
2,336,057

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

82,743,523

Reserveforreduction
entry

Total
voluntary
retainedearnings

92,17092,170Changes of items during
periodTotal changes of items
during period－*182,743,523－－

31,772

31,772

31,772

31,772

92,17092,1702,336,057

2,428,227

85,171,751

85,171,751

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

Unitholders' equity
Surplus
Unitholders'
capitalBalance at beginning ofcurrent period

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
ProfitTotal changes of items
during period
Balance at end of current
period48

Voluntary retained
earnings

11,814,374*1

94,557,898(2,335,929)
2,608,216(2,335,929)
2,608,216(2,335,929)
2,608,216(2,335,929)
2,608,216－－

272,287

272,287

12,086,661

12,086,661

92,17092,1702,608,344

2,700,515

97,258,413

97,258,413

49

5. Statements of Cash Flows

4. Statements of Cash Distributions
13th Fiscal Period(From August 1, 2016
to January 31, 2017)

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

I. Unappropriated retained earnings
II. Reversal of Voluntary retained
earnings
Reversal of reserve for reduction entry¥2,336,057,575¥2,608,344,833-¥30,323,941

III. Distributions¥2,335,929,696¥2,638,651,614

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

50[¥4,549]¥127,879
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¥2,335,929,696 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings.
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.

[¥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.

(Thousands of yen)

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 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 bondProceeds 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

13th Fiscal Period(From August 1, 2016 toJanuary 31, 2017)

14th Fiscal Period(From February 1, 2017 toJuly 31, 2017)

2,341,380
1,052,308
107,430
1,373
19,445(57)(1,033)
320,355(6,586)
22,591
89,406
12,05724,4473,274
2,048
36,212620
4,025,274
57(323,472)(7,493)
3,694,366

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(24,039)(4,108,752)(3,520)(900)
5,241(1,646)200,729(196,450)(4,129,337)(1,655)(20,456,767)
(720)
900
(29)
3,343
(2,164)
386,952(227,481)(20,297,622)

15,924,929(12,270,000)(2,303,716)(6,901)
1,344,311
909,339
10,737,094*1 11,646,434

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

51

6. Notes

6.

<Summary of Significant Accounting Policies>
1.

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

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 bonds issuance costs
Investment corporation bonds issuance costs are amortized using the straight-line
method over the redemption periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method overthree 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.

52

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

Other significant accounting
policies utilized in the
preparation of financial
statements(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
13th Fiscal Period(As of January 31, 2017)(Thousands of yen)

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

50,000<Notes to the Statements of Income>*1. Breakdown of real estate rental revenues and expenses

A. Real estate rental revenue
Lease business revenue(Rental revenues, 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 andfacility 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)

50,000(Thousands of yen)
13th Fiscal Period(From August 1, 2016
to January 31, 2017)

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

6,284,324

6,843,578

148,878

6,433,203

125,096
115,980

153,179

6,996,758

160,652
241,076
6,674,280

119,364554,646617,302

225,624
697,599
262,703
6,371
96,190153,140
42,073
1,049,477

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

161,573

160,233

280,016
7,276,775

3,249,401

3,518,418

3,424,878

3,758,357

53

<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.
13th Fiscal Period(From August 1, 2016
to January 31, 2017)

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

Carrying value
8,000,000 units

8,000,000 units

513,504 units

563,694 units<Notes to lease transactions>
1. Operating lease transactions (Lessee)
Future minimum lease payments under non-cancelable operating lease transactions
13th Fiscal Period(As of January 31, 2017)
1,363,440
81,670,056
83,033,496

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

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)
13th Fiscal Period
14th Fiscal Period(From August 1, 2016
(From February 1, 2017
to January 31, 2017)
to July 31, 2017)
Cash and deposits
5,634,348
6,696,439
Cash and deposits in trust
6,012,085
6,483,562
Cash and cash equivalents
11,646,434
13,180,002

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

13th Fiscal Period(As of January 31, 2017)
222,782
497,547
720,330(1) Cash and deposits

5,634,348

5,634,348–(2) Cash and deposits in trust

6,012,085

6,012,085–(3) Current portion of long-term loans payable(8,840,000)(8,884,403)

44,403(4) Investment corporation bonds(3,000,000)(3,050,232)

50,232(5) Long-term loans payable(83,130,000)(83,597,013)

467,013–––(6) Derivative transactions

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)
Carrying value

Fair value(Note 1)(Thousands of yen)
14th Fiscal Period(As of July 31, 2017)
1,364,328
81,041,083
82,405,411(Thousands of yen)
14th Fiscal Period(As of July 31, 2017)(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.”

Difference(Note 1)

(1) Cash and deposits

6,696,439

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

6,483,562

6,483,562－(3) Current portion of long-term loans payable(13,200,000)(13,225,382)

25,382(4) Investment corporation bonds(6,000,000)(6,055,925)

55,925(5) Long-term loans payable(84,420,000)(84,981,705)

561,705－－－(6) Derivative transactions(Note 1)
(Note 2)249,570
500,451
750,022<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.

Difference(Note 1)

(Note 3)Figures in parentheses indicate liabilities.
Methods to determine the fair value of financial instruments:(1) Cash and deposits and (2) Cash and deposits in trust
Due to their short tenors, the carrying values of these assets are reasonable approximations of their present value and hence are used as theirfair value.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short term and theircarrying values are good approximations of their fair value, the carrying values are presented as their fair value. However, the fair value offloating-rate long-term loans payable and current portion of long-term loans payable hedged by interest-rate swap transactions subject tospecial accounting treatment (refer to the following section entitled “Notes to derivative transactions”) are calculated by discounting theaggregated principal and interest on such loans, after taking into account the effect of said interest-rate swap transactions, using reasonableestimates of the rates that would be applicable in a similar borrowing.
(4) Investment corporation bonds
The fair value of investment corporation bonds is measured based upon the present value obtained by discounting the total amount ofprincipal and interest at a rate that takes into account the term to maturity and credit risk.
(6) Derivative transactions
Please refer to the following section entitled “Notes to derivative transactions.”
Carrying value of financial instruments whose fair value cannot be reliably measured (Thousands of yen)
13th Fiscal Period(As of January 31, 2017)(1) Tenant leasehold and security deposits(2) Tenant leasehold and security deposits in trust

14th Fiscal Period(As of July 31, 2017)(21,121)(22,314)(1,901,107)(2,049,904)(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.

(3) Supplementary note regarding fair value of financial instruments
The fair values of financial instruments presented in this report is based on their market value, and in cases where market value
is not available, reasonably estimated values are presented. Since the estimation of fair value is based on certain assumptions,fair value could differ depending on the assumptions used.

54

55

(Note 4)2.

Redemption schedule for monetary claims (Thousands of yen)
13th Fiscal Period (As of January 31, 2017)

Transactions subject to hedge accounting
13th Fiscal Period (As of January 31, 2017)(Thousands of yen)Due in 1 year or less
Deposits

5,634,348

Deposits in trust

6,012,085

Total

11,646,434

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

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

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

Contract amount

(*1)

Total

55,645,000

55,645,000

55,645,000

55,645,000

–

(*2)

–

–

Due in 1 year or less

(Note 5)

Deposits

6,696,439

Deposits in trust

6,483,562

Total

13,180,002

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

Redemption schedule for loans payable and investment corporation bonds (Thousands of yen)
13th Fiscal Period (As of January 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

8,840,000

–

–

–

–

–

–

14,400,000

13,845,000

9,200,000

13,725,000

31,960,000

–

–

–

–

3,000,000–

8,840,000

14,400,000

13,845,000

9,200,000

16,725,000

31,960,000

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

13,200,000

－

－

－

－

－

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

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

－

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<Notes to investment securities>
13th Fiscal Period (As of January 31, 2017)
Not applicable
14th Fiscal Period (As of July 31, 2017)
Not applicable<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
13th Fiscal Period (As of January 31, 2017)
Not applicable
14th Fiscal Period (As of July 31, 2017)
Not applicable

56

Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable

Total

(*1)

(Thousands of yen)Calculation
Contract amountmethod for
Fair value
applicable fair
Maturing after 1 yearvalue
55,645,000

48,745,000

55,645,000

48,745,000

–

(*2)

–

–

*1 Long-term loans payable include the current portion of long-term loans payable.
*2 Interest-rate swap transactions for which the special treatment is applied are accounted for together with long-term loans payable and the underlying
hedged items. As a result, their fair value is included in the fair value of items listed under “(3) Current portion of long-term loans payable” and “(5)Long-term loans payable” in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”<Notes to retirement benefits>
13th Fiscal Period (As of January 31, 2017)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
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.
<Notes to deferred tax accounting>
1. Components of deferred tax assets and liabilities(Thousands of yen)
13th Fiscal Period(As of January 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 liabilities, net

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

431
5,927
32,72939,087(38,656)
431

446
8,890
32,93342,270(41,824)446(1,165)(777)(1,165)
(734)

(777)
(330)

57

2.

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

13th Fiscal Period(As of January 31, 2017)
Statutory tax rate
(Adjustments)
Deductible cash distributions
Other
Effective tax rate

34.81

34.81

(34.73)0.15
0.24(35.14)0.54
0.21

Balance at beginning of period

Fellow subsidiary companies and other

Attribution

Company’s
name orperson’s
name

Location

Capital andinvestment(millions ofyen)Line ofbusinessor jobtitle

Major
unitholder’ssubsidiary

Tokyu
Housing
Lease
Corporation

Shinjukuku, Tokyo

100

Real
estatebusiness

–

－

－

585

589

94,592

95,182(Thousands of yen)
14th Fiscal Period(From February 1, 2017
to July 31, 2017)

166,535,573

169,546,806

Changes during period

3,011,232

19,513,651

Balance at end of period

169,546,806

189,060,457

Fair value at end of period

196,314,000

218,880,000(Note 1)
(Note 2)
Relationship
Concurrent
positions
held by
officers

Businessrelationship

No

Major
unitholder’ssubsidiary

Details oftransactions

Transaction
amount(thousandsof yen)Account

Period-end
balance(thousandsof yen)Property
management
contract

291,076

Operatingaccounts
payable58,341

The ratio of voting interest is rounded down to the second decimal place.
In the above amounts, transaction amount does not include consumption taxes, while the period-end balance does include consumption taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.

Directors, major individual unitholders and other13th Fiscal Period (From August 1, 2016 to January 31, 2017)
Not applicable
14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable<Notes to asset retirement obligations>1.

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

2.

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

58

Adjustment due to passage of time

94,592

Book value

14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable
4.

Increase due to purchase of property, plant andequipment

94,00613th Fiscal Period(From August 1, 2016
to January 31, 2017)13th Fiscal Period (From August 1, 2016 to January 31, 2017)(Note 1)
(Note 2)
(Note 3)

Balance at beginning of period<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.

Affiliated companies and other13th Fiscal Period (From August 1, 2016 to January 31, 2017)
Not applicable
14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable

Ratio ofvotinginterest(held)(%)(Note 1)(Thousands of yen)
14th Fiscal Period(From February 1, 2017
to July 31, 2017)13th Fiscal Period(From August 1, 2016
to January 31, 2017)

Balance at end of period<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other13th Fiscal Period (From August 1, 2016 to January 31, 2017)
Not applicable
14th Fiscal Period (From February 1, 2017 to July 31, 2017)
Not applicable

3.

Changes in the total amount of asset retirement obligations

14th Fiscal Period(As of July 31, 2017)<Notes to equity in net earnings (losses) of affiliated companies>
13th Fiscal Period (From August 1, 2016 to January 31, 2017)
The disclosure of relevant information is omitted since the Investment Corporation does not have 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.

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 13th Fiscal Period, the principal increase consisted of
the acquisition of three properties including COMFORIA SAPPORO SHOKUBUTSUEN and two other properties during the 13th Fiscal Period
totaling ¥3,926,530 thousand, while the principal decrease consisted of depreciation of ¥1,048,892 thousand. During the 14th Fiscal Period, theprincipal 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.
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 13th Fiscal Period (From August 1, 2016 to January 31,2017) and 14th Fiscal Period (From February 1, 2017 to July 31, 2017) 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)
13th Fiscal Period (From August 1, 2016 to January 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.
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 for a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area

59

3.

(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.

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 ofJuly 31, 2017 is as follows.
(Thousands of yen)Classification

Type

Over-the-counter transactions

Receive floating, pay fixedinterest-rate swap transactions<Notes to per unit information>

Net assets per unit
Profit per unit

13th Fiscal Period(From August 1, 2016
to January 31, 2017)¥165,863

14th Fiscal Period(From February 1, 2017
to July 31, 2017)¥172,537¥4,548¥4,629(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)

13th Fiscal Period(From August 1, 2016
to January 31, 2017)
2,335,864

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

2,335,864

2,608,216

513,504

563,416

Contract amount (Note 1)
Maturing after 1
year

Total
(Note 1)
(Note 2)

Fair value(Note 2)55,645,000

48,745,000–

55,645,000

48,745,000–

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.

(iii) Condensed supplementary schedule of real estate properties(Thousands of yen)
Accumulated depreciation

Intangible
assetsProperty, plant and equipment<Notes to significant subsequent events>
Not applicable

Asset type

Buildings

1,895,400

503-

1,895,903

87,59821,627

1,808,305

21,514--

21,514

2,367

682

19,146

17,687--

17,687639

274

17,048

1,628

-

-

1,628

217

145

1,411

2,405,775--

2,405,775--

2,405,775

81,019,743

7,448,418-

88,468,161

7,476,802

1,036,903

80,991,359

1,085,525

44,734-

1,130,260

229,11328,456

901,146

1,471,940

85,569-1,557,509

198,577

27,467

1,358,931

125,460

59,409-184,869

52,433

13,285

132,435

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

Decreaseduringperiod87,211,899

13,012,424-

100,224,324--

100,224,324

Total
Leaseholdrights in trust
Other

175,256,576

20,651,059-

195,907,635

8,047,750

1,128,842

187,859,884

1,226,269--

1,226,269

25,6968,565

1,200,572

30,423720-

31,144

15,116

3,114

16,027

Total

1,256,692

720-

1,257,413

40,813

11,6791,216,600(Note)(Note)(Note) Increases during the 14th Fiscal Period are due primarily to the acquisition of real estate for rental purposes. The details are as follows.

60

61

(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of July 31, 2017 is as follows:(Thousands of yen)
Property name

Increase during period

Classification

4,561,572

COMFORIA AKIHABARA EAST

Lender948,100

COMFORIA BUNKYOHAKUSAN

1,414,865

COMFORIA KAMATA

5,917,707

COLLEGE COURT HACHIMANYAMA

1,297,361

COMFORIA SHINSAIBASHI EAST

2,079,658

COMFORIA KYOMACHIBORI

1,638,285

COMFORIA AWAZA

1,359,634

COMFORIA GYOTOKU

1,051,044

Short-termloanspayable(iv) Supplementary schedule of other specified assets
Not applicable(v) Supplementary schedule of investment corporation bonds

Bond name

Issuance
date

Balance at
beginningof current
periodIncreaseduring period

3,000,000-(Thousands of yen)

DecreaseduringperiodBalance at
end ofcurrent
periodCouponrate (%)

3,000,000

0.64000

The Investment
Corporation 1st
unsecured
bonds

July 30,
2014

The Investment
Corporation
2nd unsecured
bonds

July 18,2017-

1,000,000-

1,000,000

The Investment
Corporation
3rd unsecured
bonds

July 18,2017-

2,000,000-

2,000,000

3,000,000

3,000,000-

6,000,000-

Redempt
ion date

July 30,
2021

Use offunds

Security

Long-term loans payable (Note 1)

COMFORIA MITA TROIS

Mizuho Trust & Banking Co., Ltd.

-

1,000,000

1,000,000-

0.23000

Subtotal-

1,000,000

1,000,000--

Mizuho Bank, Ltd.

3,570,000--

3,570,000

0.53000

Sumitomo Mitsui Trust Bank, Limited

3,570,000--

3,570,000

0.53000

The Bank of Tokyo-Mitsubishi UFJ,Ltd.

3,570,000--

3,570,000

0.53000

Sumitomo Mitsui Banking Corporation

1,785,000--

1,785,000

0.53000

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
1.41200

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

1,090,000--

1,090,000

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.
(Note 2)

Unsecured(Note 1)The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

0.23000

July 15,2022(Note 2)

Unsecured

0.52000

July 16,2027(Note 2)

Unsecured

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)

Development Bank of Japan Inc.

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

Maturity
date

Repayment
methodUse offunds

Remarks

May 31,
2018(Note 4)Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

-

-

-

-

March 23,
2019

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

September
29, 2017

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

August 31,
2018

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

March 30,
2018

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

September
30, 2019

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed(Note 1)

(Note 1)

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

Due after 1 year
to 2 years-

62

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

63

Classification
LenderRepayment
methodUse offunds

Classification
Remarks

LenderBalance atBalance at end
Increase
Average
Decrease
beginning ofof current
during period during periodinterest rate
Repayment
Maturity datecurrent period
period(thousands of (thousands of(%)
method(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

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

670,000--

670,000

0.60150January 31,
2019

January 31,
2021

June 30,
2020

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment(Note 5)(Note 5)(Note 5)

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

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.
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

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

910,000--

910,000

0.90100

Development Bank of Japan Inc.

Sumitomo Mitsui Banking Corporation

450,000--

450,000

0.90100

Mitsubishi UFJ Trust and Banking
Corporation

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

0.30820Development Bank of Japan Inc.

600,000--

600,000

Mizuho Bank, Ltd.

600,000--

Sumitomo Mitsui Trust Bank, Limited

600,000-

600,000

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

0.271252,000,000--

2,000,000

0.61950

2,000,000--

2,000,000

0.61950

1,000,000--

1,000,000

0.61950Development Bank of Japan Inc.

580,000--

580,000

0.46655

Mizuho Bank, Ltd.

580,000--

580,000

0.46655

0.69250

Sumitomo Mitsui Trust Bank, Limited

580,000--

580,000

0.46655

600,000

0.69250

580,000--

580,000

0.46655-

600,000

0.69250

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation--

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

Sumitomo Mitsui Trust Bank, Limited

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

June 30,2022

March 30,
2018

Lump-sum
repayment

Lump-sum
repayment(Note 5)(Note 5)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

580,000--

580,000

0.46655

Sumitomo Mitsui Banking Corporation

290,000--

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

0.65518620,000--

620,000

0.79875

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

900,000--

900,000

0.65518620,000--

620,000

0.79875

450,000--

450,000

0.65518620,000--

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

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

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

64

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)

January 31,
2022

Lump-sum
repayment(Note 5)January 31,
2023

Lump-sum
repayment(Note 5)January 31,
2025

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Sumitomo Mitsui Banking Corporation

Use offunds

Remarks

March 31,2023

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

August 31,
2023

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

February 29, Lump-sum
2024
repayment(Note 5)

Unsecured
Unguaranteed

March 31,2021

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

March 31,2025

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

July 31,2024

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

July 31,2026

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Unsecured
Unguaranteed65

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

Long-term loans payable (Note 1)

LenderMizuho Trust & Banking Co., Ltd.

1,550,000-

1,550,000-

0.20909

Mitsubishi UFJ Trust and Banking
Corporation

990,000-

990,000-

0.23000

Mizuho 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

Mizuho Bank, Ltd.

-

440,000

440,000-

0.22967

Sumitomo Mitsui Trust Bank, Limited-

440,000

440,000-

0.22967-

440,000

440,000-

0.22967

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation-

440,000

440,000-

0.22967

Sumitomo Mitsui Banking Corporation-

240,000

240,000-

0.22967

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-

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

0.79571-910,000-

910,000

0.79571-910,000-

910,000

0.79571-

450,000-

450,000

0.79571

91,970,000

10,190,000

4,540,000

97,620,000-

91,970,000

11,190,000

5,540,000

97,620,000

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Subtotal
Total(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Maturity
date

Repayment
methodUse offunds

Remarks

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

February 28,
Lump-sum2018
repayment(Note 4)(Note 5)

Unsecured
Unguaranteed

January 31,
2024

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

January 30,
2026

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

-

-

-

-

September
30, 2017(Note 3)
December29, 2017(Note 3)January 31,
2022

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 amount was repaid in full ahead of schedule on February 2, 2017.
The amount was repaid in full ahead of schedule on July 18, 2017.
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)66

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

67