Semi-Annual Report

18th

for the Period ended November 30, 2020
(18th Period)
From June 1, 2020 to November 30, 2020

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

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

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

Basic Policy of Activia Properties Inc.

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

2

governance structure aimed at
3 Strong
maximizing unitholder value
Contents
4

Message5

API’s Strengths

6

TOPICS

14

GO TO Activia

Cash Distributions (Actual)

16

Portfolio Map

The Period ended November 2020 (18th Period)

19

Portfolio List

20

I.

Asset Management Report

48

II.

Balance Sheets

50

III.

Statements of Operations

51

IV. Statements of Changes in Unitholders’ Equity

53

V.

Statements of Cash Distributions

Cash distributions per unit

9,547

Financial Highlights
Period ended May 31, 2020 (17th Period)

Period ended November 30, 2020 (18th Period)

15,073mn

Operating revenue¥14,984mn

Operating profit¥ 8,206mn¥

Cash Distributions (Forecasts)

Ordinary profit¥7,333mn¥

The Period ending May 2021 (19th Period)

Profit¥7,332mn¥¥

Cash distributions per unit

9,280

54

VI. Statements of Cash Flows

55

VII. Notes to Financial Statements

70

VIII. Schedule of Financial Statements

80

Independent Auditor’s Report

The Period ending November 2021 (20th Period)

83

Overview of API

Cash distributions per unit

84

Overview of the Asset Manager

85

Information on Unitholders

¥

¥

9,300

¥

8,228mn
7,363mn
7,363mn

525,378mn

Total assets¥ 525,686mn¥

Net assets¥ 255,700mn¥

Unitholders’ equity to total assets (%)
Net assets per unit (yen)(Note)

255,705mn
48.7%

48.6%
¥331,551(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

331,558

¥

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API’s Strengths

E

1. Portfolio Composition Policy

We Aim to Return to a Growth Trajectory at anW e intend to maintain a competitive portfolio in the medium to long term by investing primarily in Urban
Retail Properties and Tokyo Office Properties upon careful consideration of location as the most importantfactor, followed by other factors such as size, quality, specifications and suitability of tenants.

Early Stage and to Enhance Unitholder Value
Kazushi Sato
Executive Director
Activia Properties Inc.

Thank you very much for your continued support forhave will not decrease, and we will make a continuous

Activia Properties Inc (“API”).

effort in our operations with the aim to further

Before explaining the financial results, we pray forthe earliest possible recovery of those affected by thenovel coronavirus (COVID-19) and extend our deepest

post-COVID-19 period.
The overall occupancy rate of our portfolio at therespect to the medical professionals involved in theend of the period under review was 98.9%, and wetreatment.

have successfully maintained a high rate.

Recently we have closed all accounts for the

As a result of the above-mentioned management,

18th period from June 1, 2020 to November 30, 2020.

operating revenue, operating profit, and profit were

We owe this achievement to your understanding and¥15,073 million, ¥8,228 million and ¥7,363 million,

continuous support for which we wish to extend ourrespectively, for the period ended November 2020.

deep appreciation.

Distributions per investment unit were ¥9,547.

The Japanese economy in the fiscal period

Recently, there is an increased demand forunder review showed trends of recovery in personal

corporations to include and actively promote ESG

consumption, exports and production despite the(environment, social, governance) perspectives

prevailing difficult environment caused by the sharp

into long-term management strategies to realize aeconomic decline due to COVID-19. The outlook issustainable society.

currently uncertain due to the record number of new
COVID-19 infections, among other factors.
The J-REIT market also remains firm, although

Tokyo Office Properties

Activia Account Properties

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

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

Target investment ratio(based on acquisition price)

39.0%

API has promoted a wide range of initiatives to

OfficeRetail

52.6%

47.4%

to our environment and local community. Amid therelief requests from tenants significantly affected by

20.3%

their solid financial results, concerns which were

the pandemic, such as temporary rent reductions.

excessively factored into the market environment

And we have actively and rapidly disseminated andstarted to be reduced.

disclosed information related to our operation, in orderto strengthen relationships with our unitholders.

achieved rent increases for lease contract renewals

We will continue to promote engagement within Tokyo Office Properties, backed by the strong rent

the target set for each materiality issue to enhancegap. Close attention will be given to market trends

trustworthy relationships with all our stakeholders

though, such as increased vacancy rates.

including unitholders.

2%onwards, we will strive to return to a growth trajectory

signs of a recovery since June 2020. How to respondat an early stage by various measures, including aquickly and appropriately to this unpreceded event

focus on future opportunities, while prioritizing ways tois now important for further operations, while paying

maximize our unitholders’ returns.

6 central wardsof TokyoThree metropolitan
areas

69%

27%
Other wardsof Tokyo

2%

Core asset ratio

79.7% (UR + TO)

Asset size ¥509.2 bn

2. Utilizing Sponsor value chainW e utilize the support and capabilities of Tokyu Fudosan Holdings Group companies’ value chain during
the various phases of managing our assets, including at acquisition of competitive assets (external growth)and by maximizing the profitability of our assets under management (internal growth).

For the 19th period ending May 2021 andare being affected by this pandemic while there are

30% or less

Other major cities
of Japanreduce the environmental impact and to contribute

pandemic. As the investment corporations disclosed

superiority of the location and quality that our assets(based on acquisition price)

Investment ratio (by area)

Urban Retail
Properties
(UR)

40.6%

Activia Account
Properties (AA)close attention to market trends. We believe that theTarget investment ratio% or more

Tokyo Office Properties(TO)

spread of COVID-19, we have flexibly responded to

The Urban Retail Properties, on the other hand,70

Investment ratio (by category)there is uncertainty in the economy due to theUnder these circumstances, API has continually4

capitalize on the upside, while looking ahead to the

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

Listed on the 1st section of Tokyo Stock Exchange with security code 3289,
Operating revenue: ¥963.2bn, Operating profit: ¥78.3bn (Result FY2020)

Residence

Hotel

Wellness

OfficeCommercial
properties

Logistics
properties

RenewableenergyOverseabusiness

Building
management

Brokerage

Retail

We would be most grateful for your continued
support and encouragement. Thank you.
5

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Performance by Key Indicators for the 18th Period Ended November 2020
 oth DPU and NAV per unit for FP18 ended November 2020 increased due to growth in revenue and profit,Beven under the impact of COVID-19
Continuously achieved robust internal growth driven mainly by rent increase for offices for as well as
lengthened average maturity and lowered interest rates for debt.

Financial Results (FP18 ended Nov. 2020)

¥

15.1

7.4

vs. Previous periodbn+¥0.1 bn¥

DPU Summary for the 18th Period Ended November 2020

DPU for FP18 ended November 2020 was ¥9,547 (+¥39 vs. previous period), the result of revenue increases insales-linked rent at hotels; rent growth from lease renewals; and the benefit from asset replacement absorbing
an increase in expenses due to property-related taxes for three properties acquired in 2019
Temporarybusinessclosure+602(¥/unit)10,000

ProfitOperating revenue

2¥ 9,508

vs. Previous period

Benefit from
disposition& acquisition+¥0.0 bn

bn

(Note 1)9,500

DPU (Note 1)

¥

9,547

NAV per unit
vs. Previous period

+¥39

¥

462,945+¥2,567

Debt Financing(End of Nov. 2020)(As of Jan 15, 2021)

Ratio of area with increased rent

Number of properties

Interest-bearing debt

44

Increased amount
¥

91mn

¥

21.8 k

509.2bn
79.7%

vs. Previous period+6.7ptAverage rent¥¥

vs. Previous period—

vs. Previous period—

244.4bn
46.5%

vs. Previous period+¥ 0.2k¥

606.9bn

vs. Previous period+¥ 0.0bn

vs. Previous period+¥ 1.3bn+205
Upward rent
revision+112

4.5 years

vs. Previous period+0pt

Increasein expenses,
Downtime, etc.
etc.
-114
-28

2020.5(FP17)(Actual)2020.11(FP18)(Actual)(Note 1) B enefit from disposition & acquisition refers to the amount equivalent to ¥125 per unit, calculated by deducting gain on sale and lost profit , etc. of A PLACE Shinbashi
Ekimae disposed of on March 19, 2020 from the operating profit of Ebisu Prime Square acquired on January 10, 2020.

Breakdown of Requests (retail tenants)

Initial Forecast DPU vs. Actual DPU

Agreed to temporary rent reductions (79 tenants)

 s an outcome of measures taken tailored to eachA
tenant, the impact of temporary rent reduction was
smaller than expected and DPU was up ¥507 fromthe initial forecast.

 pprox. 99% of occupancy rate was secured atA
end of Nov. 2020 by fulfilling social responsibility

vs. Previous period+0.2 years

Avg. interest rate

0.53%

Taxes &
public
dues
-277

9,000

(Note 2) B enefit from asset replacement refers to the amount equivalent to ¥205 per unit, calculated by deducting lost profit, etc. of A PLACE Shinbashi Ekimae disposed of as ofMarch 19, 2020 from the operating profit of Ebisu Prime Square acquired as of January 10, 2020.

Avg. remaining years to maturity

Appraisal value

Temporaryrent
reduction-501

0

LTV (book value)Core asset ratio (UR + TO)

Increase rate

22.0%

—
AUM

vs. Previous period-¥ 91mn

vs. Previous period

Sales linked
Benefitrent at hotels
from asset+162
replacement

vs. Previous period

Properties under Management-30 pt¥ 9,547(Note 2)

(FP18 ended Nov. 2020)

vs. Previous period

Expensed property-related
taxes for Tokyu Plaza Ginza(Land), Q plaza HARAJUKU
and EDGE Shinsaibashi, etc.

9,383

Internal Growth (Offices)

54 %vs. Previous period-0.02pt# ofrequests# oftenants(¥/unit)Temporary rent reduction

157

Reduction agreed

79

-400

Lease cancellation

39

No reduction

58

Payment deferral

14

Under negotiation

0

COVID-19
impact-800-1,20018(¥/unit)

Rent gap-8%

Unrealized gain

vs. Previous period+2.6pt¥101.3bn+¥ 2.0bn(Note) Requests received by the end of November 2020

Commitment line

vs. Previous period¥

21.0bnvs. Previous period—(Note)	Figures for “Internal Growth (Offices)” are calculated based on all offices of Tokyo Office properties and Activia Account properties.
Increased amount refers to the amount of the total difference before and after rent revision (at contract renewal or tenant replacement) adjusted to the period covered.

6

vs. initial
forecast+¥507

Temporary rent reduction:	Response tailored to each tenant considering
tenant profiles and circumstances
Lease cancellation: 	Impact is immaterial as they are primarily small
lease spaces

Approx.

Temporary ¥400 of
decrease
rent
reduction
Other(Reducedsales-linked
rent, etc.)¥9,5479,500¥9,040

DPU

9,000

8,500

2020.11 (FP18)
Initial forecast

2020.11 (FP18)
Actual7

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Impact of COVID-19

1. Rent revision status

Retail Properties
Number of relief requests(requests)

84

Total (up to 2020.11)

Peaked in
April 2020

 osted record-high rent increase rate for FP18 ended November 2020 due to lease renewals with majorP
tenants despite COVID-19 crisis

Alternative lease conditions

Incoming relief requests are settling down partly
due to government support

 aving agreed to 79 out of 157 tenants whoHrequested temporary rent reductions, 40% of
the negotiated tenants accepted the following
alternative lease conditions

210 requests

Opportunity for internal growth

Area (down)

Approx.40% of total 79 tenants
accepted alternative lease conditions

25
19

15

10

10

7

4

Reduce underlying risk

11

2020.2 2020.3 2020.4 2020.5 2020.6 2020.7 2020.8 2020.9 2020.10 2020.11

3
4

Extension of non-cancellable period

9 tenants

Lease renewal

12 tenants

Office Properties

Work-from-home
not related
71%

1,000

Cost reduction

Officeconsolidation

Lease cancelled area

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11
FP18

Increased amountper period
Increase ratio+¥23.0mn+¥47.1mn+¥99.5mn+¥109.5mn+¥52.8mn(+5.2%)(+9.1%)(+12.0%)(+17.1%)(+20.9%)-11 tsubo

80%
60%

34%

29%

1,494
tsubo

595
tsubo

Gross leasable area

2,835
tsubo

4,009
tsubo

254
tsubo
11%

-97 tsubo

20,786 tsubo

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11
FP18

Increased amountper period
Increase ratio+¥1.6mn+¥5.9mn+¥19.4mn+¥29.3mn+¥2.0mn(+3.9%)(+5.2%)(+9.7%)(+8.6%)(+11.6%)

2. Replacement examples

0
-500

TO-2

-1,0002020.42020.52020.62020.72020.82020.92020.102020.112020.12

Occupancy at end of period(%)

Occupancy (contract basis)

Occupancy (cash basis)

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11
FP18

TO-18

(Code: 4431, listed on TSE Mothers in Feb. 2019)

Avg. DT+1.1

months

97.5%

AA-10

 standard floor of 260 tsubo, which is rare in Umeda
AAfter the major tenant (Yammer) partial cancellationand subsequent successful leasing, tenant mix is now
more diversified
Aiming for rent growth at tenant replacement in two
blocks which will be vacated soon

2021.52021.11
FP19
FP20(Assumption) (Assumption)

Umeda Gate Tower

Rent
increase+33%

Avg. DT+1.0

months4 blocks
775

Ebisu Prime Square

Smaregi, Inc.

97.4%

92.6%
2018.5
FP13

Spacious building located at west side ofand at 4-min. walk from train station
All of newly contracted leases are fromwithin Ebisu area (relocation or area
expansion within same building)A ll blocks are scheduled
Rent
to be leased out
increase+26%

95

3. Examples of tenants recently arrived

A-PLACE Ebisu Minami

99.7%

100

90

8

2018.11FP14500-1,500 ccupancy on rent generatingObasis is expected to bottom
out at the end of FP19
ending May 2021 andrebound at the end of FP20
ending November 2021

2,089
tsubo

-17 tsubo

Ratio of area withincreased rent

1,500

Reason for
departure
Other

New lease contracted(tsubo)

5,261
tsubo

38,220 tsubo

Area (down) ease cancellations outnumbered new contracts at the time of COVID-19 expansion though new contractsL
have exceeded canceled contracts since October

3,878
tsubo

3,262
tsubo

6,342
tsubo

Gross leasable area

Area (up)Trend in new lease contracts and cancellations

Work-from-homerelated
29%

Ratio of area withincreased rent

70%
62%

61%

Area (up)Number of incoming
requests are limited

82%

78%

1 Rent increase after reduced rent payment 4 tenants
2 Sales-linked rent newly applied/breakpoint change 8 tenants

25

Status of Office Properties

5 blocks958
tsubo DX company offering a cloud POS systemAfor restaurants & bars and distributers
Relocated from within Ebisu area for area
expansion, tenant utilizes the space as a
sophisticated office equipped with ashowroom

AA-13

EDGE Shinsaibashi

Daikyo Incorporated
 major real estate developer known forA
Lions Mansion
Its Osaka branch decided to add one floor
within this building in August 2020. The
floor has been occupied by the branch over
10 years.

tsubo

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Status of Retail Properties

1. Sales trend (Tokyu Plaza Omotesando Harajuku ∙ DECKS Tokyo Beach)E xcept for overseas tourists, the traffic is returning. However,tenant turnover has not yet fully recovered as people’s traffic
between retail facilities is not recovered yet(%)
60

Tokyu Plaza Omotesando Harajuku

2. Cases of rent increases
AA-13

List of lenders

EDGE Shinsaibashi

9% his tenant highly appreciated this very visible & sizableTblock, which is located at the corner of Midosuji Street andis suitable for the showroom to improve brand awareness.
The background of this evaluation is derived fromreactivation of the Shinsaibashi area, thanks to Daimaru
reopening and many refurbished brand shops

DECKS Tokyo Beach

40

Rent increased +57% at tenant replacementin the street level store (246 tsubo 1 block)20

Appraisal value:2020.82020.92020.102020.11O ccupancy struggles with impact of COVID-19
Recovery in business demand and domestic tourists are expected
77%(End of Nov. 2020)

Shinsaibashi Sta.

Shinsaibashi
OPA

Avg. of FP18 ended
Nov. 2020: 24%

72%

Americamura

20%
6%
Dec.

Jan.

Feb.

Mar.

Apr.

13%

19%

23%

25%

Daimaru Shinsaibashi
Main Building
Daimaru
south building
Europe Street
PRADA

30%

EDGE
Shinsaibashi

May

Jun.

17th Period ended May 2020

Jul.

Aug.

Sep.

Oct.

Nov.

Opened in Feb. 2020

3.0

 ssets to be acquired will be carefully selected in terms of growth potential. We are targeting offices in southAof the JR Yamanote Line. In particular, those in the greater Shibuya area and Shinagawa·Gotanda area
are the principal candidates(3)
Competitiveness

Properties requiring a large amount ofcash in future for maintenance andcapital expenditures, etc.
Properties with a risk of significant rent
decrease, long-term vacancy, etc.

The Bank of Fukuoka

Shinkin Central Bank

The 77 BankThe Gunma Bank

Nippon Life Insurance Company

Sumitomo Mitsui Insurance Company

Taiyo Life Insurance Company

THE NISHI-NIPPON CITY BANKTokyo Marine & Nichido Fire Insurance

The Bank of Kyoto

Average years remaining to maturity (left axis)

Average interest rate (right axis)

(%)
1.00

Averageinterest
rate

Fixed
interest
rate ratio

0.67

0.67

0.65

0.66

0.63

0.59

0.57

0.75
0.55

0.56

0.53%

92%

0.50

Averageremaining period
to maturity

Long-term
borrowing
ratio

0.53

4.1

4.4

4.4

4.6

4.5

4.5

4.7

4.4

4.1

years

years

years

years

years

years

years

years

years

4.5
years

0.25

4.5

99%

years

 sset replacement is positioned as our principal policy for external growth. Assets to be disposed will beAselected by the following criteria: (1) profitability (2) building age (3) competitiveness(2)
Building age(years)6.0

4.0

Properties with relatively low yields
and limited upside potential

The Norinchukin Bank owered average interest rate while maintaining average remaining period to maturity. We will continue to workLon debt cost reduction

5.0

Asset Replacement Strategy(1)Profitability

Mizuho Trust & Banking

Resona Bank

Dotonbori Ebisu-bashi
BridgeDotonbori River

Disposition Policy

Development Bank of JapanLouis Vuitton
Maison Osaka
Midosuji

DOLCE &GABBANA

18th Period ended Nov. 2020

(Note) Average of 3 hotels

Sumitomo Mitsui Banking Corporation

Trend in average period remaining to maturity and average interest rate

4%
EMPOPIO
ARMANIMUFG Bank

Mizuho Bank

Opened in Nov. 2020

Shinsaibashi PARCO(Daimaru Shinsaibashi North)Renovated in Sep. 2019

Apple
Store

Sumitomo Mitsui Trust Bank

Investment Corporation Bonds

18 %Nagahori Street

Q plaza
Shinsaibashi

PUMA

33%

24%

9%
Sta.

3. Room occupancy at hotels

87%(End of May 2020)18 %18 lenders¥244.4 billion

9%2020.12

Shinsaibashisuji
shopping Arcade2020.7

Shinsaibashi Sta.

2020.6¥21.3 bn

Midosuji2020.5¥20.0 bn

Yotsubashi

06Status of Financial Management

Shinjuku Ward
Acquisition Policy
Nakano Ward rea in south ofA
the JR Yamanote
Line is close
proximity to
the residential
districts linking
major stations inTokyoShinjuku

Yotsuya3

Harajuku

4

ShibuyaWard

Chiyoda Ward

Akasaka
MitsukeGaienmae

Shibuya

14

8

6

Ebisu

MeguroWard

Meguro

(%)
50.0

LTV

2018.5
FP13

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11
FP18

2021
1.15

47.7
46.0
44.7

44.8

45.6

45.5

46.5

9

15

41.6

5

40.1
40.0

39.6
38.3

Tamachi

Osaki

10 16

Shinagawa* As of January 15, 2021

38.7
37.7

38.2

39.1

LTV

Appraisal
LTV

46.5%

39.0%

Acquisition
capacity

Rating(JCR)¥ 36.6billion(Stable)

46.5

39.0

Takanawa Gateway
Gotanda0.00

Appraisal LTV

TokyoTokyo Tower
Minato Ward Hamamatsucho

12

2017.11
FP12

 TV at the end of the FP18 ended Nov. 2020 was 46.5% (appraisal LTV was 39.0%), being controlled withinLthe guidance range of 40% to 50%

46.0

12

13 18

2017.5
FP11

Trend in LTV

Shinbashi

Omotesando

2016.11FP10*at LTV 50%

2016.11FP10

2017.5
FP11

2017.11
FP12

2018.5
FP13

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11
FP18

AA*Purchased by
Bank of Japan* As of November 30, 2020

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10

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Initiatives for ESG

1. Green certification (As of Nov. 30, 2020)

3. Tenant Satisfaction Survey
Green-certified assets

GRESB Real Estate Assessment
Global rating

Disclosure

5 stars for threeconsecutive years

Highest A rank for threeconsecutive years

66% preferable result with increase in “very satisfied” and decrease in “somewhat unsatisfied” after addressingA
the problems revealed in the previous survey results
Measures taken contributed to improvement in tenant satisfaction as well as reduction in environmental impact

GFA based

Satisfaction score
56%

Number ofgreen certified
assets28
properties

Somewhat
unsatisfied·unsatisfied

29%

3%

FY20202020.11(FP18)FY201766.9
FY2017

BELS Assessment

Verysatisfied76.8

26
properties

2020.5(FP17)CASBEE Certification

Answers

DBJ Green Building certification

18%

FY202016%

Physical aspect

Against COVID-19

Finish work and installation of water-saving urinals

Disinfection, anti-virus surface coating, etc. incommon areas

1 property

 onated to a fundraising program to support
D
medical staff in Hokkaido Pref. where A-FLAG
Sapporo is located with aim to strengthen
relationship with the local community

Distributed assembly kit made ofthinned wood in an owned property
 istributed a musical instrument assembly kit madeDof thinned wood in an owned property to propose
an opportunity to think about sustainability

Approval by Compliance
Officer

Utilization of Regional Revitalization
Support Tax System by Asset Manager

Proposal by responsible
department

2. For local communities

Report to the Board of Directors of theAsset Manager

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

Prior approval by theInvestment Corporation’s
Board of Directors

1 property

 roperty acquisition transaction with related parties requires resolution by the Compliance Committee includingP
one or more outside expert members to avoid conflicts of interest, etc., which helps to protect unitholder value

Report to API

A1
1 property

If acquisition is deemed to be a
related-party transaction

4 properties
2 properties
4 properties

Approval by each relevant
Chief Division Officer

11 properties
13 properties

4. Effective decision-making process

Deliberation and resolution of
Investment Committee

)
)

after

Deliberation andresolution of Compliance
CommitteeS(
A(

beforeIf acquisition is deemed to be a
related-party transaction

Low-Carbon Small andMedium-Sized Model Building

Water-saving
urinals -66%
toilet -47%

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

12

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GOTO
Activia owns attractive commercial facilities.
We present some of them here!

UR-7

Tokyu Plaza
Omotesando
Harajuku

UR-1

CHARLES & KEITH
CHARLES & KEITH is an affordable
footwear and accessories retailer
founded in 1996 by Charles Wong andKeith Wong. With a global footprint in 34
countries, the brand offers a reasonable
and trend conscious line-up to meet theneeds of fashion lovers around theworld. The brand also works to support
philanthropy and environmental issues.

Eatbills Omotesando

Cosmetics & Service

Awake
The store is the only concept shop directly
managed by Awake, a NY-born veganskincare brand. For a sustainable future, thebrand thoroughly selects materials andmanufacturing methods, and propose oil
beauty that focuses on the vitality of plants.

bills is an all-day dining place born in
Sydney, Australia. The restaurant has
terrace seats overlooking the Forest of
Omohara and even the Omotesando
Harajuku area. Visitors can enjoy plates
proposed by Bill Granger, a leader in of
global food trends.

14

ita

Om

Av

e.

LaForet Tokyu Plaza
Harajuku Omotesando
Harajuku
san
do
Stre
et

ote

Hotel/Restaurants

ORIENTAL HOTEL

hin

s
an

H

b

Ko

Kobe city hall

Kobe Kyu Kyoryuchi
Daimaru 25Bankan

FashionBARNEYS NEW YORK
The shop has high-quality men's andwomen's clothing, bags and shoes tobridal and baby gifts. There are
original and designer brands from allover the world, and about 70% of all
products are directly imported,
mainly from Italy.

The restaurants on the top floor
include an all-day dining place MAIN
DINING by THE HOUSE OF PACIFIC,a teppanyaki restaurant named Steakhouse Medium Rare, and a café-bar
THE BAR J.W.Hart. Visitors can enjoy
moments with gastronomic pleasure
in various scenes.

DECKS
Tokyo Beach

Restaurant

Odaiba Takoyaki Museum

Odaiba Takoyaki Museum offers delicious
takoyaki for friends, couples, families withchildren, visitors from overseas, andeveryone else. Five famous restaurants
loved by Osaka people are assembled here,
including the first takoyaki restaurant andone of the most popular that people line up
for. You can enjoy delicious takoyaki thatyou could not find in the rest of Japan.

Odaiba-kaihinkohen
Sta.

e
Lin
me
Tokyo
mo
Fuji Television Teleport Sta.

ve

sh

Me

Harajuku

Fashionke

In the Kyu Kyoryuchi (a former foreign settlement) area, there are
famous historical spots in the port city of Kobe at every turn. As a centerof tourism and commerce in western Japan, it enjoys a prominent
ability to attract tourists and customers. The property includes avenerable hotel which witnessed several historical events and acommercial facility where visitors can meet world-class luxury brands.

iji A

Sta.

Ta

Sannomiya Sta.
Kobe-sannomiya Sta.
e
Lin
ain
eM

.

The property is located on thecorner of Omotesando Street
and Meiji Street (Jingumae
Crossing), a center of fashion
and culture in Japan that isoften featured in media. Fashionoutlets open their flagshipstores and new concept stores,
expecting significant branding
effects from the location and thevisibility of the building. On therooftop of the building, API has
created the Forest of Omohara,
where visitors can relax andenjoy the changing seasons.

Kobe Kyu Kyoryuchi 25Bankan

a
urik

Y

UR-15

DECKS Tokyo Beach

DECKS Tokyo Beach is a commercial center on the Odaiba Kaihin Park side of
the Odaiba area, with a wooded deck on the third floor, which is the origin of
the property name. It is a two-minute walk from Odaiba Kaihin Koen Station on
the Yurikamome Line, and is connected in five minutes on foot from Tokyo
Teleport Station on the Rinkai Line. Included are the Legoland Discovery CenterTokyo, an indoor theme park centered on Tokyo Joypolis, a large amusement
center; Madame Tussauds Tokyo; Daiba 1-chome Shopping Street, a theme
product sales, eating and drinking area; and Odaiba Takoyaki Museum, among
others. The view of the Rainbow Bridge and the illuminations from this property
are also wonderful, making it a place visited by a wide range of people,
including tourists and school groups.
Restaurant

BISTRO
Ushisuke
A steak andwinerestaurantwith carefully
selectedhigh-quality
lean meat. The restaurant offers also side
menus and more than 60 kinds of sake. The
stylish open space is perfect for dates andanniversaries. Pets are also allowed to enjoy
this comfortable and delightful dining space.

Outdoor Equipment

WILD-1
Experienced staff propose a richoutdoor life with the theme of “humanbeings and nature.” Large items suchas tents and tarps are always on
display, and even beginners are free
to explore. This is a store for families
or individuals.

15

Portfolio Map
UR-1

Tokyu Plaza
Omotesando Harajuku

UR-2

Tokyu Plaza
Akasaka

UR-3

Q plaza EBISU

UR-9

A-FLAGSHIBUYA

UR-11

A-FLAG
KOTTO DORI

UR-12

A-FLAG
BIJUTSUKAN DORI

UR-13

A-FLAGDAIKANYAMA WEST

UR-15

DECKS Tokyo
Beach

UR-16

Tokyu Plaza
Ginza (Land)

UR-17

Q plaza
Harajuku

TO-1

TLC Ebisu
Building

TO-2

A-PLACE
Ebisu Minami

TO-3

A-PLACE Yoyogi

TO-4

A-PLACE
AoyamaTO-5

Luogo Shiodome

TO-6

TAMACHISQUARE (Land)

TO-7

A-PLACE
Ikebukuro

TO-8

A-PLACE
Shinbashi

TO-9

A-PLACE
GotandaTO-10

A-PLACE
Shinagawa

TO-11

OSAKI
WIZTOWER

TO-12

Shiodome
Building

TO-13

A-PLACE
Ebisu Higashi

TO-14

A-PLACE
Shibuya Konnoh

TO-15

A-PLACE
Gotanda Ekimae

TO-16

A-PLACE
Shinagawa Higashi

TO-18

Ebisu Prime Square

Kita Ward

Arakawa Ward

Toshima Ward

Ikebukuro

Nippori

7

Taito Ward

Takadanobaba

NakanoWard

Bunkyo Ward

Shinjuku Ward

Ueno

Asakusa

Akihabara

Chiyoda Ward

SumidaWard

Shinjuku

Yotsuya3

2

Harajuku
Shibuya
Ward

17

4

1

11 12

16
8

5

Chuo
Ward

Shinbashi

Minato Ward

14

13

Akasaka
MitsukeGaienmae
Omotesando

9

Shibuya

Tokyo

Tokyo Tower

13 18
3 1
2 Ebisu

12

Hamamatsucho

6

TamachiMeguroWard

Takanawa Gateway

Meguro

10 16

9

15

GotandaOsaki

Shinagawa

15

11

Shinagawa
Ward

Oimachi

URBAN RETAILTOKYO OFFICE

16

17

Portfolio List

Portfolio Map

AA-4

icot Mizonokuchi

AA-5

icot Tama Center

AA-8

Greater Tokyo Area

icot Omori

5
9Shin-Yokohama

AA-9Market Square
Sagamihara

AA-11

CategoryTokyo

4(As of November 30, 2020)

8

11

A-PLACE
Bashamichi

8
UR-8

A-FLAG SAPPORO

UR-1

Tokyu Plaza Omotesando
Harajuku (Note 2)

Jingumae, Shibuya-ku, Tokyo

45,0008.8%

4,918.43

Mar. 2012

UR-2

Tokyu Plaza Akasaka (Note 2)

Nagatacho, Chiyoda-ku, Tokyo

11,4502.2%

16,609.75

Sep. 1969

97.1%

UR-3

Q plaza EBISU

Ebisu, Shibuya-ku, Tokyo

8,430

1.7%

4,024.88

Aug. 2008

100.0%

UR-5

Kyoto Karasuma Parking Building Motohonenjicho, Nakagyo-ku, Kyoto

8,860

1.7%

21,616.04

Jul. 2006

100.0%

UR-7

Kobe Kyu Kyoryuchi 25Bankan

Kyomachi, Chuo-ku, Kobe City, Hyogo

21,3304.2%

19,653.90

Jan. 2010

100.0%UR-8

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

4,410

0.9%

21,229.16

May 1980

98.3%

UR-9

A-FLAG SHIBUYA

Udagawacho, Shibuya-ku, Tokyo

6,370

1.3%

3,403.07

Jun. 1988

100.0%

UR-10 Q plaza SHINSAIBASHI

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

13,3502.6%

2,820.23

Nov. 2007

100.0%URBAN RETAIL

Commercial Mall
HakataACTIVIAACCOUNT

SapporoAA-6

HakataA-PLACE
Kanayama

6
12

5
Kyoto

NagoyaShin-Kobe

1
10 Shin-Osaka
7
10
14
13
2

7

UR-11 A-FLAG KOTTO DORI

Minami-Aoyama, Minato-ku, Tokyo

4,370

0.9%

2,656.53

Jan. 1992

100.0%

Minami-Aoyama, Minato-ku, Tokyo

4,700

0.9%

1,994.65

Dec. 1998

100.0%

UR-13 A-FLAG DAIKANYAMA WEST

Sarugakucho, Shibuya-ku, Tokyo

2,280

0.4%

2,579.08

Apr. 1992

100.0%

UR-14 A-FLAG KITA SHINSAIBASHI

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

4,725

0.9%

2,538.13

Mar. 2008

100.0%

UR-15 DECKS Tokyo Beach (Note 2)

Daiba, Minato-ku, Tokyo

12,7402.5%

16,125.56

Jun. 1996
Nov. 2000(Extension)

96.8%

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

Ginza, Chuo-ku, Tokyo

37,5007.4%

1,130.04—

100.0%

UR-17 Q plaza HARAJUKU (Note 2)

Jingumae, Shibuya-ku, Tokyo

13,2002.6%

3,378.49

Mar. 2015

100.0%

Kyoto Karasuma
Parking Building

UR-7

Kobe Kyu Kyoryuchi
25Bankan

UR-10

Q plaza
SHINSAIBASHI

UR-14

A-FLAG KITASHINSAIBASHI

Hyogo/Osaka/Kyoto

AA-1

18

Amagasaki Q's
MALL (Land)

198,715

39.0%

124,677.94

—

98.9%

TO-1

TLC Ebisu Building

Ebisu, Shibuya-ku, Tokyo

7,400

1.5%

7,342.60

Mar. 1993

93.2%

TO-2

A-PLACE Ebisu Minami

Ebisu-Minami, Shibuya-ku, Tokyo

9,640

1.9%

7,950.49

Jan. 1995

92.3%

TO-3

A-PLACE Yoyogi

Sendagaya, Shibuya-ku, Tokyo

4,070

0.8%

3,106.17

Feb. 2007

100.0%TO-4

A-PLACE Aoyama

Kita-Aoyama, Minato-ku, Tokyo

8,790

1.7%

7,303.69

Sep. 1966

100.0%

TO-5

Luogo Shiodome

Higashi-Shinbashi, Minato-ku, Tokyo

4,540

0.9%

4,476.35

Jul. 2004

100.0%TO-6

TAMACHI SQUARE (Land) (Note 3)

Shiba, Minato-ku, Tokyo

2,338

0.5%

1,287.96—

100.0%TO-7

A-PLACE Ikebukuro

Minami-Ikebukuro,
Toshima-ku, Tokyo

3,990

0.8%

3,409.73

Oct. 2011

100.0%TO-8

A-PLACE Shinbashi

Shinbashi, Minato-ku, Tokyo

5,650

1.1%

5,054.19

Mar. 1999

100.0%TO-9

A-PLACE Gotanda

Nishi-Gotanda, Shinagawa-ku, Tokyo

5,730

1.1%

4,028.69

Feb. 2012

100.0%

TO-10 A-PLACE Shinagawa

Konan, Minato-ku, Tokyo

3,800

0.7%

2,986.36

Sep. 1991

100.0%

TO-11 OSAKI WIZTOWER

Osaki, Shinagawa-ku, Tokyo

10,6902.1%

7,193.28

Jan. 2014

100.0%

TO-12 Shiodome Building (Note 2)

Kaigan, Minato-ku, Tokyo

71,60014.1%

28,136.05

Dec. 2007

99.7%

TO-13 A-PLACE Ebisu Higashi

Higashi, Shibuya-ku, Tokyo

7,072

1.4%

4,010.69

Jan. 1992

100.0%

TO-14 A-PLACE Shibuya Konnoh

Shibuya, Shibuya-ku, Tokyo

4,810

0.9%

3,010.53

Mar. 1992

100.0%

TO-15 A-PLACE Gotanda Ekimae

Nishi-Gotanda, Shinagawa-ku, Tokyo

7,280

1.4%

4,328.32

Nov. 1993

88.6%

3.7%

Aug. 1985(Main building)
14,658.98
Sep. 1999(Annex)100.0%
94.2%

TO-16 A-PLACE Shinagawa Higashi

Konan, Minato-ku, Tokyo

TO-18 Ebisu Prime Square (Note 2)

Hiroo, Shibuya-ku, Tokyo

Tokyo Office properties

UR-5

AA-2

icot Nakamozu

AA-7

Osaka Nakanoshima
Building

AA-10

Umeda Gate
Tower

AA-13

EDGE
Shinsaibashi

98.6%

UR-12 A-FLAG BIJUTSUKAN DORI

Urban Retail properties

AA-12

Occupancyrate

Property nameLocation

Acquisition price Investment Total leasable(In millions of yen)ratio
area (m2)Completion(Note 1)

Property
number

18,80030,7006.0%

18,063.02

Jan. 1997

206,900

40.6%

126,347.10

—

97.8%

AA-1

Amagasaki Q’s MALL (Land)

Shioe, Amagasaki City, Hyogo

12,0002.4%

27,465.44—

100.0%

AA-2

icot Nakamozu

Nakamozucho, Kita-ku,
Sakai City, Osaka

8,500

1.7%

28,098.02

Jun. 2007

100.0%

AA-4 icot Mizonokuchi

Mizonokuchi, Takatsu-ku, Kawasaki
City, Kanagawa

2,710

0.5%

14,032.05

Jul. 1998

100.0%

AA-5 icot Tama Center

Ochiai, Tama City, Tokyo

2,840

0.6%

5,181.58

Mar. 2006

100.0%

AA-6 A-PLACE Kanayama

Kanayama, Naka-ku,
Nagoya City, Aichi

6,980

1.4%

9,314.90

Feb. 2009100.0%

AA-7 Osaka Nakanoshima Building

Nakanoshima, Kita-ku,
Osaka City, Osaka

11,1002.2%

20,226.77

Mar. 1984

100.0%

AA-8 icot Omori

Omorikita, Ota-ku, Tokyo

5,790

1.1%

6,209.79

Mar. 2007

100.0%

AA-9 Market Square Sagamihara

Shimokuzawa, Chuo-ku,
Sagamihara City, Kanagawa

4,820

0.9%

15,152.42

Jun. 2014

100.0%

AA-10 Umeda Gate Tower

Tsurunocho, Kita-ku, Osaka City,
Osaka

19,0003.7%

13,562.63

Jan. 2010

100.0%

AA-11 A-PLACE Bashamichi

Honcho, Naka-ku, Yokohama City,
Kanagawa

3,930

0.8%

9,710.91

May 1975

100.0%

AA-12 Commercial Mall Hakata

Tokojimachi, Hakata-ku, Fukuoka City,
Fukuoka

6,100

1.2%

9,612.88

Nov. 2005

92.7%

AA-13 EDGE Shinsaibashi

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

100.0%

19,8003.9%

15,897.66

Apr. 1986

Activia Account properties

103,570

20.3%

174,465.05

—

99.6%

Total

509,185

100.0%

425,490.09

—

98.9%

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

19

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

Asset Management Report for the 18th Fiscal Period(Semi-Annual Report)

Fiscal periodBusiness period

From June 1, 2020 to November 31, 2020

III.

Statements of Operations

IV.

Statements of Changes in Unitholders’ Equity

13,815

14,843

15,542

14,984

15,073[12,673][13,472][14,063][13,903][14,009]

Operating expenses(millions of yen)

6,268

6,243

6,862

6,778

6,845

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

[5,076][4,973][5,464][5,470][5,588]Operating profit(millions of yen)

7,546

8,599

8,680

8,206

8,228

Ordinary profit(millions of yen)

6,697

7,726

7,818

7,333

7,363

Profit(millions of yen)

6,696

7,725

7,817

7,332

7,363

Net assets(millions of yen)

223,842

256,085

256,198

255,700

255,705

V.

Statements of Cash Distributions

VI.

Statements of Cash Flows

VII.
VIII.

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

[0.0]

[14.4][0.0][－0.2][0.0]

445,464

514,359

515,480

525,686

525,378(%)[－0.1][15.5]

[0.2]

[2.0]

[－0.1](millions of yen)

217,091

248,370

248,370

248,370

248,370

Number of units issued and outstanding(units)698,704

771,224

771,224

771,224

771,224

Net assets per unit

(yen)

320,368

332,050

332,196

331,551

331,558

Total distributions(millions of yen)

6,696

7,725

7,817

7,332

7,362

(yen)

9,584

10,118

10,136

9,507

9,547

Cash distributions per unit

(yen)

9,584

10,017

10,137

9,508

9,547

[Earnings distributions per unit][Distributions per unit in excess ofearnings](yen)[9,584][10,003][10,137][9,504][9,514]

(yen)

[—]

[14]

[―]

[4]

[33]

Basic earnings per unit

Activia Properties Inc.

18th period(millions of yen)

Unitholders’ capital

Balance Sheets

17th period(millions of yen)

[Change from the previous period]II.

16th period[Lease business revenue]

Total assets

Asset Management Report

15th period

Operating revenue[Change from the previous period]I.

14th period

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

(Note4)(Note1)

Ordinary profit to total assets(Note2)

(%)

1.5

1.6

1.5

1.4

1.4

Return on unitholders’ equity(Note2)

(%)

3.0

3.2

3.1

2.9

2.9

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

50.2

49.8

49.7

48.6

48.7

(Note2)(%)[―][－0.4][－0.1][－1.1][0.1]

Payout ratio(Note2)

(%)

99.9

99.8

100.0

100.0

99.7

(properties)[Other reference]
Number of properties

42

45

44

44

44

2

(m )

395,967.44

415,167.22

414,008.41

425,551.96

425,490.09

(%)

99.9

99.5

99.8

99.8

98.9

Depreciation(millions of yen)

1,267

1,294

1,298

1,334

1,335

Capital expenditure(millions of yen)

352

413

640

702

650

(millions of yen)

10,006

10,827

11,034

10,704

10,803

Total leasable area

(Note3)

Occupancy rate at end of period

NOI(Note2)(Note1) Basic earnings per unit is calculated by dividing profit by the daily weighted average number of investment units issued and outstanding (698,704 units, 763,508
units,771,224 units, 771,224 units and 771,224units for the 14th,15th, 16th, 17th and 18th fiscal periods, respectively).
(Note2) The indicators are calculated as follows:
Ordinary profit to total assets: Ordinary profit ÷ Average total assets × 100; Average total assets = (Total assets at beginning of period + Total assets at end of period) ÷ 2
Return on unitholders’ equity: Profit ÷ Average net assets × 100; Average net assets = (Net assets at beginning of period + Net assets at end of period) ÷ 2
Unitholders’ equity to total assets: Net assets at end of period ÷ Total assets at end of period × 100
Payout ratio: Total distribution amount (excluding distributions in excess of earnings) ÷ Profit × 100 (rounded down to the first decimal place)
NOI: Rental operating income (Lease business revenue + Other lease business revenue – Expenses related to rental business) + Depreciation + Loss on retirement of noncurrent assets(Note3) The total leasable area is equal to the gross floor area of leasable space in each property excluding properties for which we acquire land only, based on the leaseagreements for building or floor plans as of the end of each fiscal period. Total leasable area for properties for which only land is acquired is based on the lease agreement
for land or land plans as of the end of each fiscal period. As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Shiodome Building, Q
plaza HARAJUKU, Tokyu Plaza Ginza (Land) and Ebisu Prime Square, the figures are in proportion to a pro rata share of co-ownership interests of each property (75%,50%, 49%, 35%, 60%, 30% and 51% respectively).
(Note4) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not considered.

2
20

21

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

2) Investment Environment and Investment Performance
The Japanese economy in the fiscal period under review showed trends of recovery in personal consumption, exports andproduction in spite of the prevailing difficult environment caused by the sharp economic decline due to COVID-19. However,
the outlook is currently uncertain due to the numbers of new infections of COVID-19 being at record levels, among otherfactors.
The environment surrounding retail properties has shown a continuing trend of recovery, in spite of ongoing difficulties
concerning consumer sentiment, according to the Monthly Consumer Confidence Survey released by the Economic and Social
Research Institute, Cabinet Office, Government of Japan. Moreover, measures taken by respective nations restricting travel andimmigration amid proliferation of COVID-19 have continued to affect demand related to inbound tourism. For instance, thenumber of overseas visitor arrivals to Japan decreased by 97.7% year on year in November 2020, according to the Japan
National Tourism Organization.
In the rental office market, both occupancy rates and rents have held to high levels particularly in the five central wards ofTokyo (Chiyoda-ku, Minato-ku, Chuo-ku, Shibuya-ku and Shinjuku-ku). Nevertheless, we now are seeing a trend of officeconsolidations and relocations to smaller offices due to the stagnant economic activity caused by COVID-19. Meanwhile, theaverage vacancy rate in the five central wards of Tokyo as of November 30, 2020, according to data published by Miki Shoji
Co., Ltd., was 4.33% an increase of 2.69 percentage points from the period ended May 31, 2020. Rent levels also weakened,
ending a run of 80 consecutive months of increasing average rent, which had been continuing since January 2014. The averagerent per tsubo (about 3.3 square meters) in the five central wards of Tokyo as of November 30, 2020, was ¥22,223. In addition,
occupancy rates and average rents in major cities outside Tokyo followed trends that were generally similar to the five central
wards of Tokyo.
Despite a prevailing uncertainty concerning the economic outlook due to the effect of COVID-19, the J-REIT market isproceeding with a firm base as actual financial results are steadily disclosed by REIT companies while uncertainties that had
been excessively taken into account in previous periods are receding.
The Investment Corporation has continued to maintain and improve its portfolio in accordance with the basic asset management
policy set forth in the Articles of Incorporation. Consequently, total assets held by the Investment Corporation at the end of the
fiscal period under review were 44 properties (with the total acquisition price of ¥509,185 million) with the total leasable areaof 425,490.09 m2 (128,708 tsubo).

3) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” with the aim of maximizing
medium- and long-term unitholder value, the Investment Corporation has been promoting various initiatives with its sights set
on lowering environmental loads and contributing to our nearby surroundings and local communities, thereby extending beyond
considerations such as location, use, size and qualities. Based on such initiatives, the Investment Corporation’s asset
management company TLC REIT Management Inc. established the “Sustainability Policy,” clearly stating our approach incontributing to sustainable development of society. In July 2019, as material issues that the Investment Corporation needs toaddress, we released quantitative targets encompassing a wider range of performance benchmarks from an environmental
standpoint, and also clearly stated practical management policy to such ends. This involves daily effort to achieve our basic
objective of cutting unit energy consumption, etc. by an annual average of 1% over the medium to long term. Initiatives carriedout in the fiscal period under review include upgrading to LED lighting at some common areas of Ebisu Prime Square, icot
Tama Center and Commercial Mall Hakata, and some private areas at A-FLAG KOTTO DORI, TLC Ebisu Building, A-PLACE
Shinagawa, A-PLACE Shibuya Konnoh, A-PLACE Shinagawa Higashi and Ebisu Prime Square. At A-PLACE Bashamichi, we
replaced a compressor for air conditioning, adopting parts with special energy-saving performance, and at Osaka Nakanoshima
Building, we continued to replace toilets with those that use water-saving equipment, which was an ongoing project from theprevious fiscal period.
Moreover, we continue to engage in annual initiatives geared to acquiring green building certifications. During the fiscal period
under review, we have acquired the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) for Real
Estate certification for Ebisu Prime Square (A class). We have also acquired the BELS certifications for Kyoto Karasuma
Parking Building (five stars). As such, a total of 28 of our properties have acquired green building certification, whichamounted to 65.8% of our holdings calculated on the basis of gross floor area (as of November 30, 2020).
Furthermore, at Tokyu Plaza Omotesando Harajuku and DECKS Tokyo Beach, we created opportunities for our customers to
become familiar with environmental conservation activities by distributing free musical instrument creation kits called “BirdCall” that use wood from forest trimmings. In addition, as a measure to stop the spread of COVID-19 at 15 office buildings, weensured that our tenants used the facilities safely by applying coatings that inactivate viruses to communal surfaces (chiefly
door knobs, handrails, doors, and elevator interiors).
The Investment Corporation will contribute to achieving a sustainable society by engaging in such initiatives geared to theenvironment and society.

4) Overview of Financing
In the fiscal period under review, the Investment Corporation diversified repayment dates on debt, extended the average
maturity, and diversified means of financing. Also, with the aims of further promoting its sustainability initiatives andexpanding its range of investors by fueling demand from new investors who are interested in ESG investment, the Investment
Corporation issued green bonds (unsecured investment corporation bonds) of ¥4,500 million on October 21, 2020, and used thefunds to cover repayment of short-term borrowings. The Investment Corporation also borrowed ¥1,518 million largely in order
to cover repayment of borrowings that had come due, and worked to otherwise maintain a stable financial base through ongoingmoves that have included diversifying repayment dates. As a result, as of the end of the fiscal period under review, the balanceof interest-bearing debt was ¥244,368 million (borrowings of ¥222,868 million and investment corporation bonds of ¥21,500
million). The ratio of interest-bearing debt to total assets (LTV = Balance of interest-bearing debt / Total assets x 100) was
46.5% as of the end of the fiscal period under review. The long-term debt ratio and the ratio of fixed-interest debt to totalinterest-bearing debt were 97.3% and 89.9%, respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review is as follows. This
investment unit does not have a credit rating provided or made available for inspection by a credit rating agency or one
scheduled to be provided or made available for inspection by a credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

Rating

Forecast

Japan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable5) Overview of Financial Results and Distributions
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥15,073 million,¥8,228 million, and ¥7,363 million, respectively, for the fiscal period under review, and profit was ¥7,363 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles of Incorporation),
the decision was made with respect to paying distributions of profits of ¥7,337,425,136, which is the entire amount of the net
profit defined in Article 136, Paragraph 1 of the Investment Trust Act, with such amount excluding a fraction of less than ¥1 of
distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included in tax
deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including
subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). In addition, distributions in excess ofearnings shall be made in an amount decided by the Investment Corporation and equivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item 30 (b) of the Regulations on Accountings of Investment Corporations), taking into
account effects of the deduction in net assets on distribution amounts. During the fiscal period under review, the Investment
Corporation has accordingly decided to distribute ¥25,450,392 as distributions related to allowance for temporary difference
adjustments, calculated to exclude a fraction of less than ¥1 of distributions in excess of earnings per investment unit from theamount equivalent to ¥25,499,775, which is calculated by deducting ¥3,084,896 of temporary difference adjustments (refers to
stipulations of Article 2, Paragraph 2, Item 30 of the Regulations on Accountings of Investment Corporations) from deferredlosses on hedges of ¥28,584,671, in the current fiscal period. Consequently, distributions per investment unit resulted in ¥9,547.

4
22

23

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

Summary

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

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

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

Fluctuation in Market Price of the Investment Securities

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

Number of total
investment units issued

Total unitholders’ capital(millions of yen)

Increase

Increase

Total

Remarks

Total

Fiscal periodBusiness period

14th period

15th period

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

(yen)

16th period

17th period

18th period

From June 1, 2019
to November 30, 2019

From December 1, 2019
to May 31, 2020

From June 1, 2020
to November 30, 2020

400

400

200

200

(Note 1)Highest518,000

492,500

589,000

582,000

426,000

204,100

204,500

90,83491,034(Note 2)Lowest466,000

432,000

461,000

227,400

335,000

762

205,262

339

91,373(Note 3)

(4) Distributions, etc.

43,100248,362

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

251,0622,044

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

277,132

1,915

150,770(Note 7)277,132554,264—

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

19,152

169,922(Note 9)3,520

599,654

1,610

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

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

665,2142,116

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

13,793

216,026(Note 13)2,400

698,704

1,064

217,091(Note 14)

67,320766,024

29,036

246,127(Note 15)5,200

771,2242,242

248,370(Note 16)

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

As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥15,073 million,¥8,228 million, and ¥7,363 million, respectively, for the fiscal period under review, and profit was ¥7,363 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the Articles of Incorporation),
the decision was made with respect to paying distributions of profits of ¥7,337,425,136, which is the entire amount of the net
profit defined in Article 136, Paragraph 1 of the Investment Trust Act, with such amount excluding a fraction of less than ¥1 of
distributions per investment unit, with the aim that as greatest as possible distributions of profits would be included in tax
deductible expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including
subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”). In addition, distributions in excess ofearnings shall be made in an amount decided by the Investment Corporation and equivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item 30 (b) of the Regulations on Accountings of Investment Corporations), taking into
account effects of the deduction in net assets on distribution amounts. During the fiscal period under review, the Investment
Corporation has accordingly decided to distribute ¥25,450,392 as distributions related to allowance for temporary difference
adjustments, calculated to exclude a fraction of less than ¥1 of distributions in excess of earnings per investment unit from theamount equivalent to ¥25,499,775, which is calculated by deducting ¥3,084,896 of temporary difference adjustments (refers to
stipulations of Article 2, Paragraph 2, Item 30 of the Regulations on Accountings of Investment Corporations) from deferredlosses on hedges of ¥28,584,671, in the current fiscal period. Consequently, distributions per investment unit resulted in ¥9,547.
Fiscal periodBusiness period

Unappropriated retained earnings

14th period

15th period

16th period

17th period

16th period

From June 1, 2018 From December 1, 2018 From June 1, 2019 From December 1, 2019 From June 1, 2020
to November 30, 2018
to May 31, 2019
to November 30, 2019
to May 31, 2020
to November 30, 2020
¥6,696,690 thousand¥7,726,143 thousand¥7,829,267 thousand¥7,333,243 thousand¥7,366,549 thousand

Retained earnings¥311 thousand¥11,589 thousand¥572 thousand¥3,530 thousand¥29,124 thousand

Total distributions¥6,696,379 thousand¥7,725,350 thousand¥7,817,897 thousand¥7,332,797 thousand¥7,362,875 thousand[¥9,584][¥10,017][¥10,137][¥9,508][¥9,547]¥6,696,379 thousand¥7,714,553 thousand¥7,817,897 thousand¥7,329,712 thousand¥7,337,425 thousand[¥9,584][¥10,003][¥10,137][¥9,504][¥9,514]¥－thousand¥10,797 thousand¥－thousand¥3,084 thousand¥25,450 thousand

[¥－]

[¥14]

[¥－]

[¥4]

[¥33]

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

[¥－]

[¥14]

[¥－]

[¥4]

[¥33]

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

[¥－]

[¥－]

[¥－]

[¥－]

[¥－]

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

6
24

25

(5) Future Investment Policy and Issues to Address
In the Japanese economy going forward, although we face prevailing difficulties from COVID-19, we believe that there will besteady improvement in regard to both the stemming of the spread of infection and economic activities. Nevertheless, it isimportant to continue watching the trends of infection in both Japan and abroad.
In the rental office market, we expect vacancy rates to rise and rent levels to fall to some extent within a certain area. However,
we believe that property in prime locations will continue to be resilient. With respect to the environment surrounding retailproperties, although we are seeing continuing signs of recovery in consumer sentiment, we expect the difficult conditions
caused by the decrease in numbers of overseas visitor arrivals to Japan among factors will continue. Although we expect the JREIT market will continue to be affected by COVID-19, looking overseas, if anti-virus measures, such as the beginning ofvaccinations, continue to make steady progress, we believe the J-REIT market will soon reflect new optimism for a resumptionin economic activities. Furthermore, amidst the adoption of accommodative monetary policies in Japan and abroad and thecontinuing state of low interest rates, we expect continued long-term inflow of funds into J-REIT due to its stable earnings andrelatively high returns, etc.
Amid this environment, the Investment Corporation will fulfill its social responsibility in preventing the spread of infections,etc. while minimizing the impact of the COVID-19 pandemic through its abundant management expertise, and pursue internal
growth utilizing the strength of its portfolio with rigorously selected investment assets, aiming to return to the path of
improving unitholder value.

2. Overview of the Investment Corporation(1) Unitholders’ Capital

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

Number of unitholders

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

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

15th period
As of May31, 2019

16th period
As of November
30, 2019

17th period
As of May31, 2020

18th period
As of November
30, 2020

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

698,704

771,224

771,224

771,224

771,224¥217,091¥248,370¥248,370¥248,370¥248,370

6,910

7,680

6,914

7,758

7,542

(persons)(Note) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are notconsidered.

(2) Matters Relating to Investment Units

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

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

14th period
As of November
30, 2018

Name

Number of units
owned

Percentage of total units issued (%)(Note)

Custody Bank of Japan, Ltd. (Trust accounts)

164,779

21.36

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

124,293

16.11

Tokyu Land Corporation

81,137

10.52

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

35,472

4.59

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

22,0302.85

Mizuho Securities Japan Co., Ltd.

17,901

2.32

State Street Bank & Trust Company(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited. Tokyo office)13,037

1.69

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

8,579

1.11

The bank of New York 133970(Standing proxy:Mizuho Bank, Ltd.)

8,311

1.07

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

8,304

1.07

Total

483,843

62.73(Note) The percentage of total units issued is calculated by rounding down to the second decimal place.

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

(6) Significant Matters after Book Closing
Not applicable.

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26

27

(3) Matters Relating to Officers, etc.

1) Executive Director, Supervisory Directors, and Independent Auditor during the Fiscal Period under Review
Title
Executive
Director(Note 1)Supervisory
Directors(Note 1)

Independent
AuditorName of officer, etc.

Kazushi Sato

Major concurrent post, etc.

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

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

Yonosuke Yamada

Yamada, Goya and Suzuki Law Office
Managing Partner

Yoshinori Ariga

Ariga Yoshinori Accounting Office
Managing Partner

Ernst & Young ShinNihon
LLC－

3. Assets of the Investment Corporation(1) Composition of Assets of the Investment Corporation
17th period
As of May 31, 2020

Type of assets

Category

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)

Total amount ofassets owned(millions of yen)

Ratio to total assets(%)

Urban Retail Properties

―

―

―

―

Tokyo Office Properties

―

―

―

―

Activia Account Properties

―

―

―

―

－

(Note 1)

3,300

Real estate

Subtotal

―

―

―

―

198,79137.8

198,465

37.8

Tokyo Office Properties

204,91639.0

204,673

39.0

Activia Account Properties

102,563

19.5

102,437

19.5

Subtotal

506,27296.3

505,577

96.2

Total real estate, etc.

506,27296.3

505,577

96.2

Deposits and other assets

19,414

3.7

19,801

3.8

525,686

100.0

525,378100.0(506,272)(96.3)(505,577)(96.2)(Note 2)

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

Real estate in trust

Total assets (Note 2)(4) Asset Manager, Custodian Company, and Administrative Agent
Consignment classification

Name

Asset manager

TLC REIT Management Inc.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (unitholder registry administration, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting service, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administrative service)

Sumitomo Mitsui Trust Bank, Limited

General administrator (investment corporation bond service)

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited(Note 1)

Urban Retail Properties

13,700(Note 1) Executive director or supervisory directors do not hold any investment units of the Investment Corporation under their or another person’s name.
Supervisory directors may serve as directors of companies other than those mentioned above, but there are no mutual business interests whatsoever
between such companies and the Investment Corporation.
(Note 2) Compensation for the independent auditor includes fees for preparing comfort letters related to the issuance of new investment corporation bonds in
October 2020 .

18th period
As of November 30, 2020

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

(2) Major Assets Owned
Major assets owned by the Investment Corporation (the 10 largest properties by book value) as of the end of the fiscal period
under review are as follows:
Occupancy
rate (%)(Note 3)

Ratio of rental
revenue tototal rental
revenues (%)

Major use

28,062.68

99.7

10.3

Office4,918.43

4,851.90

98.6

7.5

Retail

37,8951,130.04

1,130.04

100.0

3.9

RetailEbisu Prime Square

31,04418,063.02

17,013.63

94.2

5.5

OfficeKobe Kyu Kyoryuchi 25Bankan

20,327

19,653.90

19,653.90

100.0

4.2

RetailEDGE Shinsaibashi

20,00915,897.66

15,897.66

100.0

3.4

OfficeUmeda Gate Tower

19,175

13,562.63

13,562.63

100.0

3.1

OfficeA-PLACE Shinagawa Higashi

18,817

14,658.98

14,658.98

100.0

3.7

OfficeQ plaza SHINSAIBASHI

13,3952,820.23

2,820.23

100.0

2.1

RetailQ plaza HARAJUKU (Note 4)

13,317

3,378.49

3,378.49

100.0

1.4

Retail289,218

122,219.43

121,030.14

99.0

45.2

Book value at endof period(millions of yen)

Leasable area(m2)
(Note 1)

Shiodome Building (Note 4)

70,62028,136.05

Tokyu Plaza Omotesando
Harajuku (Note 4)

44,615

Tokyu Plaza Ginza (Land) (Note 4)

Property name

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

Leased area(m2)
(Note 2)

Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements forbuilding or floor plans as of November 30, 2020 and leasable space for properties for which we acquire only land, based on lease agreements for land or
land plans as of November 30, 2020.
Leased area refers to the leased area of each property based on lease agreements as of November 30, 2020. For properties with master lease agreements,
leased area refers to leased areas of each property and is actually leased based on sublease agreements with end-tenants.
Occupancy rate refers to the percentage of total leased area for each property to total leasable area for each property as of November 30, 2020, rounding
down to the first decimal place.
As for Shiodome Building, Tokyu Plaza Omotesando Harajuku,Tokyu Plaza Ginza (Land), Ebisu Prime Square and Q plaza HARAJUKU, the figures
are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (35%, 75%, 30%, 51% and 60%, respectively).

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

A summary of properties owned and under management by the Investment Corporation as of the end of the fiscal period
under review is as follows:
Location

Tokyu Plaza Omotesando
Harajuku (Note 4)30-3 Jingu-mae 4-chome, Shibuya-ku, Tokyo

Tokyu Plaza Akasaka (Note 4)

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

Q plaza EBISU

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

Kyoto Karasuma Parking
Building
Kobe Kyu Kyoryuchi
25Bankan

678 Motohonenjicho, Nakagyo-ku, Kyoto
City, Kyoto

Urban Retail Properties

A-FLAG SAPPORO
A-FLAG SHIBUYA
Q plaza SHINSAIBASHI
A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI
A-FLAG DAIKANYAMA
WEST
A-FLAG KITASHINSAIBASHI

25 Kyomachi, Chuo-ku, Kobe City, Hyogo
1, Minami-Yonjo-Nishi 5-chome, Chuo-ku,
Sapporo City, Hokkaido
32-13, Udagawa-cho, Shibuya-ku, Tokyo
1-10 Shinsaibashi-suji 1-chome, Chuo-ku,
Osaka City, Osaka
4-40, Minami-Aoyama 5-chome, Minatoku, Tokyo
3-16, Minami-Aoyama 6-chome, Minatoku, Tokyo
11-6, Sarugakucho, Shibuya-ku, Tokyo
10-11, Minami Senba 3-chome, Chuo-ku,
Osaka city, Osaka

DECKS Tokyo Beach (Note 4)

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

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

Q plaza HARAJUKU (Note 4)

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

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

Subtotal
TLC Ebisu Building
A-PLACE Ebisu Minami
A-PLACE Yoyogi
A-PLACE Aoyama

Tokyo Office Properties

Luogo Shiodome

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

TAMACHI SQUARE (Land)

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

A-PLACE Ikebukuro

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

A-PLACE Shinbashi

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

A-PLACE Gotanda

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

A-PLACE Shinagawa

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

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

Shiodome Building (Note 4)

2-20 Kaigan 1-chome, Minato-ku, Tokyo

A-PLACE Ebisu Higashi(Note 5)
A-PLACE Shibuya Konnoh(Note 5)

13-11 Higashi 3-chome, Shibuya-ku, Tokyo
3-1 Shibuya 3-chome, Shibuya-ku, Tokyo

A-PLACE Gotanda Ekimae

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

A-PLACE Shinagawa Higashi

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

Ebisu Prime Square (Note 4)

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

Subtotal

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

Total leasable area(m2)
(Note 1)

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

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

4,918.43

62,77544,615

icot Nakamozu

16,609.75

14,50011,608

icot Mizonokuchi

4,024.88

11,7008,178

icot Tama Center

21,616.04

10,6008,673

19,653.90

27,10020,327

21,229.16

7,670

4,834

Amagasaki Q’s MALL (Land)

Activia Account Properties

Property name

Property name

A-PLACE Kanayama
Osaka Nakanoshima Building
icot Omori

Location
3-1 Shioe 1-chome, Amagasaki City, Hyogo(main building)
2-3 Shioe 1-chome, Amagasaki City, Hyogo(sports club)428-2 Nakamozucho 3-cho, Kita-ku, Sakai
City, Osaka
11-1 Mizonokuchi 6-chome, Takatsu-ku,
Kawasaki City, Kanagawa
35 Ochiai 1-chome, Tama City, Tokyo
14-18 Kanayama 1-chome, Naka-ku,
Nagoya City, Aichi
2-2 Nakanoshima 2-chome, Kita-ku, Osaka
City, Osaka
8-2, Omorikita 1-chome, Ota-ku, Tokyo
777-2 Shimokuzawa, Chuo-ku, Sagamihara
City, Kanagawa
1-9, Tsurunocho, Kita-ku, Osaka City,Osaka
43 Honcho 4-chome, Naka-ku,Yokohama
City, Kanagawa
6-40, Tokojimachi 2-chome, Hakata-ku,
Fukuoka city, Fukuoka
2-3, Nishi Shinsaibashi 2-chome, Chuo-ku,
Osaka City, Osaka

Asset type

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

Total leasable area(m2)
(Note 1)

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

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

27,465.44

14,20012,11328,098.02

10,6008,008

14,032.05

3,240

2,596

5,181.58

3,960

2,577

9,314.90

8,780

6,183

20,226.77

16,300

11,205

6,209.79(Note 5)

6,870

5,693

15,152.42

5,010

4,614

13,562.63

21,40019,1759,710.91

4,740

3,961

3,403.07

7,880

6,343

2,820.23

14,60013,3952,656.53

4,840

4,393

A-PLACE Bashamichi

1,994.65

4,860

4,715

Commercial Mall Hakata

2,579.08

2,400

2,434

EDGE Shinsaibashi

2,538.13

4,720

4,835

Subtotal

174,465.05

122,490

102,437

Total

425,490.09

606,906

505,577

16,125.56

12,691

12,8971,130.04

39,00037,895

3,378.49

13,30013,317

124,677.94

238,636

198,465

7,342.60

12,1007,196

7,950.49

15,7009,320

3,106.17

4,930

3,846

7,303.69

10,3008,548

4,476.35

6,390

4,237

1,287.96

2,840

2,362

3,409.73

5,560

3,675

5,054.19

7,330

5,772

4,028.69

7,990

5,427

2,986.36

6,230

3,781

7,193.28

14,50010,51928,136.05

77,70070,6204,010.69

7,720

7,025

3,010.53

5,740

4,934

4,328.32

7,950

7,541

14,658.98

21,60018,81718,063.02

31,20031,044

126,347.10

245,780

204,673

Market Square Sagamihara
Umeda Gate Tower

9,612.88

6,090

6,298

15,897.66

21,30020,009(Note 1) Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of November 30, 2020 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of November
30, 2020.
(Note 2) The appraisal of each property is commissioned to the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd.,
Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K.. Assessed value at end of period stands for the appraised value described in each real estateappraisal report, with November 30, 2020 taken as the point of evaluation.
(Note 3) Book value at end of period stands for the book value minus depreciation as of November 30, 2020, rounded down to the nearest ¥ million.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU, Shiodome Building andEbisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownership interest of each property (75%, 50%, 49%, 30%, 60%,
35%, and 51%, respectively).
(Note 5) The calculation of total leasable area for icot Omori includes part of an external bicycle parking lot (approximately 21 m2) and part of a common area on the second
floor (approximately 28 m2).

12
30

31

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

Tokyo Office Properties

Urban Retail Properties

Property name

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

Revenues related torent business(millions of yen)
(Note 3)18th period(From June 1, 2020 to November 30, 2020)

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Property name

Ratio of rental
revenue to total
rental revenues(%)

Tokyu Plaza
Omotesando Harajuku(Note 4)

34

99.6

775

5.2

33

98.6

1,129

7.5

Tokyu Plaza Akasaka(Note 4)

93

99.2

575

3.9

90

97.1

576

3.8

Q plaza EBISU

4

100.0

268

1.8

4

100.0

217

1.4

Kyoto Karasuma
Parking Building

2

100.0

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

Kobe Kyu Kyoryuchi
25Bankan

7

A-FLAG SAPPORO

17

100.0

412

2.8

15

98.3

525

3.5

A-FLAG SHIBUYA

2

100.0

217

1.5

2

100.0

197

1.3

100.0

774

5.2

7

100.0

637

4.2

Q plaza
SHINSAIBASHI

6

100.0

351

2.4

6

100.0

320

2.1

A-FLAG KOTTO
DORI

8

100.0

125

0.8

8

100.0

119

0.8

A-FLAG
BIJUTSUKAN DORI

4

100.0

125

0.8

4

100.0

111

0.7

A-FLAGDAIKANYAMA
WEST

1

100.0

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

A-FLAG KITASHINSAIBASHI

5

100.0

99

0.7

5

100.0

91

0.6

DECKS Tokyo Beach(Note 4)

80

99.1

447

3.0

77

96.8

488

3.2

Tokyu Plaza Ginza(Land) (Note 4)

1

100.0

571

3.9

1

100.0

581

3.9

Q plaza HARAJUKU(Note 4)

16

100.0

241

1.6

16

100.0

215

1.4

Subtotal

280

99.8

－

－

271

98.9

－

－

TLC Ebisu Building

12

100.0

342

2.3

11

93.2

330

2.2

A-PLACE Ebisu
Minami

10

100.0

388

2.6

9

92.3

385

2.6

A-PLACE Yoyogi

3

100.0

136

0.9

3

100.0

138

0.9

A-PLACE Aoyama

8

100.0

309

2.1

8

100.0

316

2.1

Luogo Shiodome

7

100.0

183

1.2

7

100.0

189

1.3

TAMACHI SQUARE(Land)

1

100.0

62

0.4

1

100.0

62

0.4

A-PLACE Ikebukuro

1

100.0

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

A-PLACE Shinbashi

10

100.0

200

1.4

10

100.0

207

1.4

A-PLACE Gotanda

11

100.0

197

1.3

11

100.0

201

1.3

A-PLACE Shinagawa

8

100.0

136

0.9

8

100.0

138

0.9

OSAKI WIZTOWER

5

100.0

345

2.3

5

100.0

351

2.3

Shiodome Building(Note 4)

40

100.0

1,539

10.4

38

99.7

1,546

10.3

A-PLACE Ebisu
Higashi

7

100.0

185

1.2

7

100.0

187

1.2

A-PLACE Shibuya
Konnoh

4

100.0

144

1.0

4

100.0

131

0.9

A-PLACE Gotanda
Ekimae

12

100.0

187

1.3

11

88.6

197

1.3

A-PLACE Shinagawa
Higashi

8

100.0

540

3.6

8

100.0

562

3.7

A-PLACE Shinbashi
Ekimae

－

－

238

1.6

－

－

－

－

Ebisu Prime
Square(Note 4)

107

98.2

669

4.5

102

94.2

824

5.5

Subtotal

254

99.7

－

－

244

97.8

－

－

Activia Account Properties

17th period(From December 1, 2019 to May 31, 2020)

Numberoftenants(Note 1)

17th period(From December 1, 2019 to May 31, 2020)

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

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)
2.4

Amagasaki Q’s
MALL (Land)

1

100.0

356

2.4

1

100.0

356

icot Nakamozu

2

100.0

310

2.1

2

100.0

310

2.1

icot Mizonokuchi

1

100.0

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

icot Tama Center

10

100.0

143

1.0

10

100.0

139

0.9

A-PLACE Kanayama

21

100.0

295

2.0

21

100.0

303

2.0

Osaka Nakanoshima
Building

39

100.0

543

3.7

39

100.0

551

3.7

icot Omori

8

100.0

224

1.5

8

100.0

208

1.4

Market Square
Sagamihara

3

100.0

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

Umeda Gate Tower

15

100.0

471

3.2

17

100.0

469

3.1

A-PLACE Bashamichi

36

98.3

183

1.2

36

100.0

199

1.3

Commercial Mall
Hakata

19

100.0

162

1.1

18

92.7

209

1.4

EDGE Shinsaibashi

22

100.0

521

3.5

22

100.0

507

3.4

Subtotal

177

99.9

－

－

178

99.6

－

－

Total

711

99.8

14,840

100.0

693

98.9

15,046100.0(Note 1) The number of tenants refers to the total number of tenants for each property at the end of each fiscal period, based on each lease agreement. In the casewhere a master lease agreement is in place, the number of end tenants is counted. In the case of a property for which only land is acquired, the total numberof tenants on the land is counted.
(Note 2) Occupancy rate refers to the percentage of leased area to leasable area for each property as of the end of each fiscal period, rounding down to the firstdecimal place.
(Note 3) Rental revenue includes other rental revenue.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, A-FLAG Akasaka, DECKS Tokyo Beach, Tokyu plaza Ginza (Land), Q plaza
HARAJUKU, Shiodome Building and Ebisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownershipinterest of each property (75%, 50%, 50%, 49%, 30%, 60%, 35% and 51%, respectively). A-PLACE Shinbashi Ekimae was disposed March 19, 2020.
(Note 5) Rental revenue and the ratio of rental revenue to total rental revenues are not disclosed, as consent from tenants has not been obtained.

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

Over-the-counter

Transaction
Interest rate swaps(Receive floating pay fixed)
Total

Notional contract amount (Note 1)
Over 1 year

Fair value(Note 2) (Note 3)

30,140,000

30,140,000(28,584)

30,140,000

30,140,000(28,584)(Note 1) The contract amount of interest rate swaps is presented based on its notional principal.
(Note 2) The statement of the fair value is omitted for those transactions that satisfy requirements for special treatment based on accounting standards forfinancial instruments.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

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

(6) Ownership of Assets by Country and Region
Not applicable for countries and regions other than Japan.

14
32

33

4. Capital Expenditure for Assets under Management(1) Scheduled Capital Expenditure

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

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment forthe period

Totalamountpaid

A-FLAG SAPPORO(Sapporo, Hokkaido)

Repair of substation equipment From March 2022
(First period)to November 2022

560

1

4

A-FLAG SAPPORO(Sapporo, Hokkaido)

Repair of substation equipment From November 2022
(Second period)to May 2023

470

1

4

A-PLACE Ebisu Minami(Shibuya, Tokyo)

Large-scale repair work (First
period and Second period)

From January 2021
to November 2021

320

–

–

icot Nakamozu(Sakai, Osaka)

Large-scale repair work (SCBuilding)

From March 2021
to November 2021

300

–

–

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units (First
period)From December 2020
to May 2021

150

–

–

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units (Second
period)From December 2020
to November 2021

148

–

–

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of two
emergency elevators

From April 2022
to November 2022

142

–

–

A-PLACE Bashamichi(Yokohama, Kanagawa)

Large-scale repair work

From June 2020
to February 2021

96

–

–

A-PLACE Gotanda Ekimae(Shinagawa, Tokyo)

Large-scale repair work

From July 2020
to March 2021

79

–

–

DECKS Tokyo Beach(Minato, Tokyo)

Renovation of 3rd floor
Seaside Deck

From January 2021
to May 2021

71
(Note)––A-PLACE Aoyama(Minato, Tokyo)

Installation of LED lighting

From July 2022
to November 2022

66

–

–

A-FLAG SHIBUYA(Shibuya, Tokyo)

Renewal of escalators

From December 2021
to January 2022

64

–

–

TLC Ebisu Building(Shibuya, Tokyo)

Renovation work formechanical parking facility

From February 2022
to May 2022

62

–

–

Shiodome Building(Minato, Tokyo)

Installation of LED lighting(First period)

From October 2020
to February 2021

26
(Note)––A-PLACE Ebisu Minami(Shibuya, Tokyo)

Replacement of horizontal
drainage piping of air
From January 2021
conditioning units (First period to May 2021
and Second period)

24

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Overhaul of mechanicalparking facility system No. 3

From March 2021
to April 2021

23

–

–

Osaka Nakanoshima Building(Osaka, Osaka)

Repair work of substation
From October 2020
equipment according to facility
to February 2021
planning

16––

Ebisu Prime Square(Shibuya, Tokyo)

Replacement of residential
tower’s calorimeter

From November 2020
to March 2021

15
(Note)––A-FLAG SHIBUYA(Shibuya, Tokyo)

Renewal of elevator controls

From January 2021
to January 2021

13

–

–

A-FLAG SHIBUYA(Shibuya, Tokyo)

Replacement of drainage
piping of air conditioning
equipment

From May 2021
to May 2021

13

–

–

A-PLACE Ebisu Higashi(Shibuya, Tokyo)

Installation of LED lighting

From March 2021
to April 2021

12

–

–

Name of real property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

A-PLACE Gotanda Ekimae(Shinagawa, Tokyo)

Replacement of toilet andFrom February 2021
plumbing equipment for
to May 2021
restrooms on 4th and 8th floors

Tokyu Plaza Omotesando
Harajuku(Shibuya, Tokyo)

Renovation work for roof deck From March 2021
(Second period)to March 2021

A-PLACE Aoyama(Minato, Tokyo)

Replacement of substationequipment and vacuum circuit
breaker

From February 2021
to February 2021

Total
amountPayment forthe period

Totalamount
paid

12

–

–

11
(Note)

–

–

10

–

–

(Note) The shown estimated construction cost with regard to Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Shiodome Building
and Ebisu Prime Square is the amount equivalent to the ratio of the Investment Corporation’s co-ownership interests of real estate trust
beneficiary (75%, 49%, 35% and 51%, respectively).

16
34

35

(2) Capital Expenditure during the Period
For assets held by the Investment Corporation in the 18th fiscal period, construction work conducted by the Investment Corporation during the
fiscal period ended November 30, 2020 that falls into capital expenditure is as follows. The capital expenditure for the fiscal period ended
November 30, 2020 amounted to ¥650 million, and repair and maintenance expenses that were accounted for as expense in the fiscal period
ended November 30, 2020 came to ¥441 million. On aggregate, construction work of ¥1,091 million was carried out during the fiscal period.
Name of real property(Location)

Purpose

PeriodConstruction cost
(Millions of yen)

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of elevators(elevators No. 1 and 2)

From June 2020
to August 2020

86

Luogo Shiodome(Minato, Tokyo)

Large-scale repair work

From December 2019
to July 2020

80

TLC Ebisu Building(Shibuya, Tokyo)

Installation of LED lighting

From August 2020
to November 2020

43

A-PLACE Shinagawa Higashi(Minato, Tokyo)

Installation of LED lighting (First
period)From October 2020
to November 2020

28

EDGE Shinsaibashi(Osaka, Osaka)

Maintenance of mechanicalparking equipment (vertical rotaryequipment)
Replacement, etc. of chain guide
rails

From December 2019
to June 2020

28

TLC Ebisu Building(Shibuya, Tokyo)

Renewal of automatic security
systemFrom October 2020
to November 2020

26

Osaka Nakanoshima Building(Osaka, Osaka)

Repair of lavatory plumbing for
6th and 7th floors

From June 2020
to October 2020

18

Osaka Nakanoshima Building(Osaka, Osaka)

Repair of lavatory plumbing for
8th and 9th floors

From June 2020
to October 2020

18

A-FLAG SHIBUYA(Shibuya, Tokyo)

Replacement of sprinkler pumpand fire extinguishing pump panel

From November 2020
to November 2020

13

A-FLAG DAIKANYAMA WEST
(Shibuya, Tokyo)

Work to change to electronic locks
in the building

From November 2020
to November 2020

12

Osaka Nakanoshima Building(Osaka, Osaka)

Replacement of disasterprevention pump

From August 2020
to November 2020

12

A-PLACE Shinagawa Higashi(Minato, Tokyo)

Replacement of halon fire
extinguishing system

From June 2020
to September 2020

11

A-FLAG DAIKANYAMA WEST
(Shibuya, Tokyo)

Replacement of halon container
valvesFrom October 2020
to November 2020

10

A-PLACE Bashamichi (Yokohama,
Kanagawa)

Replacement of compressor for air
conditioning (common areas on
6th, 8th and 9th floors)

From June 2020
to June 2020

10

5. Expenses and Liabilities(1) Details of Expenses Related to Asset Management, etc.
Item(a) Asset management fees (Note)

Other

246

Total

650

17th period(From December 1, 2019
to May 31, 2020)(Thousands of yen)
18th period(From June 1, 2020
to November 30, 2020)

1,104,664

1,120,034(b) Asset custody fees

15,02914,905(c) Administrative service fees

36,85237,280(d) Directors’ compensation

3,300

3,300

(e) Other operating expenses

147,558

81,2271,307,404

1,256,747

Total(Note) Asset management fees contain acquisition fees that were included in the book value of acquired properties (17th fiscal period: ¥153,500 thousand).

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

18
36

37

(2) Borrowings

The status of borrowings from financial institutions as of November 30, 2020 is as follows:
Category
LenderSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
Short-term
MUFG Bank, Ltd.
loans
Sumitomo Mitsui Trust
payableBank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Total
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Draw
down
date
January 30,
2020
April 17,2020
January 10,
2020
November30, 2020

December19, 2013

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

Longtermloanspayable(Note 2)

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

January 10,
2014

March 31,2017
January 10,
2019
January 10,
2019

January 5,
2018

January 9,
2015

Beginningbalance

Averageinterest rate
(Note 1)Endingbalance1,600,000—

1,600,000
800,000——

666,000—

666,000
666,000——

2,000,000

2,000,000

2,000,000
1,000,000

2,000,000
1,000,000

—

506

—
—
10,998,000

506
506
6,518,000

1,060,000

1,060,000

1.07980%

1,060,000

1,060,000

1.07980%

1,060,000

1,060,000

1.07980%

1,060,000

1,060,000

1.07980%

530,000

530,000

1.07980%

530,000

530,000

1.07980%

1,340,000

1,340,000

1.07856%

1,340,000

1,340,000

1.07856%

1,340,000

1,340,000

1.07856%

1,340,000

1,340,000

1.07856%

670,000

670,000

1.07856%

670,000

670,000

1.07856%

500,000

500,000

0.25000%

3,920,000

3,920,000

3,920,000
1,970,000

3,920,000
1,970,000

1,970,000

1,970,000

1,970,000

1,970,000

320,000

320,000

640,000
320,000

640,000
320,000

160,000

160,000

160,000

160,000

840,000

840,000

0.73690%840,000

840,000

0.73690%840,000

840,000

0.73690%0.18573%

Maturity
date
November30, 2020(Unit: Thousands of yen)
Use offunds(Note 7)

Unsecured,
non-guaranteed

0.33128%(Note 7)

Unsecured,
non-guaranteed

0.18629%January 12,2021(Note 3)

Unsecured,
non-guaranteed

November30, 2021(Note 4)

Maturitydate

Use offunds

Remarks

0.19629%January 11,2022(Note 4)

Unsecured,
non-guaranteed

0.31571%

January 11,2022(Note 4)

Unsecured,
non-guaranteed

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note6)

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui
Banking Corporation

100,000

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560,000

1,560,000

Mizuho Bank, Ltd.

1,560,000

1,560,000

MUFG Bank, Ltd.

1,560,000

1,560,000

0.44835%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

160,000

160,000

160,000

160,000

Sumitomo Mitsui Trust
Bank, Limited

1,420,000

1,420,000

Mizuho Bank, Ltd.

1,420,000

1,420,000

720,000

720,000

720,000

720,000

720,000

720,000

2,000,000

2,000,000

500,000

500,000

400,000

400,000

400,000

400,000

1,500,000

MUFG Bank, Ltd.

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

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

0.20129%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

0.36607%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

0.41931%

December
28,
2021

840,000

840,000

0.73690%420,000

420,000

0.73690%420,000

420,000

0.73690%

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

Unsecured,
non-guaranteed

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

January 10,
2020

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust & Banking
Co.,LTD.

January 10,
2020
March 31,2015

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

Unsecured,
non-guaranteed

March 31,2017

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
Longtermloanspayable(Note 2)

(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Endingbalance

The 77 Bank, Ltd.
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
March 31,
2021

Draw
down
date

Beginningbalance

LenderRemarks

November30, 2020

0.18818%

Category

June 15,2015

MUFG Bank, Ltd.

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

December16, 2015

June 13,
2018

20
38

39

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

Longtermloanspayable(Note 2)

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

Draw
down
date

January 9,
2019

September
30, 2015

March 30,
2018

October 6,
2016

June 15,2015

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

December16, 2015
June 13,2017

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

BeginningbalanceEndingbalance

620,000

620,000

620,000
620,000

620,000
620,000

320,000

320,000

320,000

320,000

1,250,000

1,250,000

Averageinterest rate
(Note 1)

0.38236%

1,250,000

1,250,000
1,250,000

1,250,000

1,250,000

750,000

750,000

750,000
750,000

750,000
750,000

375,000

375,000

375,000

375,000

800,000

800,000

1,600,000
800,000

1,600,000
800,000

400,000

400,000

400,000

400,000

1,500,000

1,500,000

1.06316%

1,500,000

1,500,000

1.06316%

1,500,000

1,500,000

1.06316%

1,500,000

1,500,000

1.06316%

625,000

625,000

0.75387%
0.75387%

625,000

625,000
1,250,000

2,500,000
1,250,000

2,500,000
1,250,000

500,000

500,000

January 10,
2023

Use offunds(Note 4)

Category

Remarks

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

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

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

1,250,000

1,250,000(Unit: Thousands of yen)
Maturitydate

0.44804%

0.38472%

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

March 30,
2023

April 6,2023

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

0.46400%

June 15,2023

0.35998%

September
29, 2023

500,000

500,000

1,500,000

1,500,000

0.17254%500,000

500,000

0.21254%

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

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

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed(Note 4)

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

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)

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

Draw
down
date

January 12,
2016

January 10,
2020

March 31,2017

December16, 2015

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
June 13,
MUFG Bank, Ltd.
2016
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
June 13, 2016
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
September
21, 2016
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

BeginningbalanceEndingbalance

Averageinterest rate
(Note 1)1,400,000

1,400,000

0.78362%

1,400,000

1,400,000

0.78362%

1,400,000

1,400,000

0.78362%

1,400,000

1,400,000

0.78362%700,000

700,000

0.78362%
0.78362%700,000

700,000

1,420,000

1,420,000

1,420,000
720,000

1,420,000
720,000

720,000

720,000

720,000

720,000

2,000,000

2,000,000
Unsecured,
non-guaranteed

1,200,000

0.85377%

1,200,000

1,200,000

0.85377%

1,200,000

1,200,000

0.85377%

1,200,000

1,200,000

0.85377%

600,000

600,000

0.85377%
0.85377%

1,500,000

3,000,000
1,500,000

3,000,000
1,500,000

1,200,000

1,200,000

2,400,000
1,200,000

2,400,000
1,200,000

600,000

600,000

600,000

600,000(Note 4)(Note 4)1,200,000

1,500,000(Note 4)

March 29,2024

500,000
500,000

3,000,000
1,500,000(Note 4)0.41380%

500,000
500,000

3,000,000
1,500,000(Note 4)

Unsecured,
non-guaranteed

1,500,000

600,000(Note 4)(Note 3)1,000,000

1,500,000(Note 4)

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

January 12,2024

1,000,000

600,000

January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024

Use offunds

0.34459%

1,500,000

1,500,000(Unit: Thousands of yen)
MaturitydateJune 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

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

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

Unsecured,
non-guaranteed

0.36900%(Note 5)

December
13,
2024(Note 4)

Unsecured,
non-guaranteed

0.54094%

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

22
40

41

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

Draw
down
date

March 16,2017

March 16,2018

March 30,
2018

August 29,
2019

September
21, 2016

December13, 2016

March 7,2019

June 13,2017
June 28,2019

BeginningbalanceEndingbalance1,800,000

1,800,000

3,600,000
1,800,000

3,600,000
1,800,000

900,000

900,000

900,000

900,000

440,000

440,000

440,000

440,000

440,000

440,000

440,000
440,000

440,000
440,000

500,000

500,000

300,000

300,000

500,000

500,000

500,000
500,000

500,000
500,000

250,000

250,000

250,000

250,000

1,500,000

1,500,000

1,500,000

1,500,000

2,100,000

2,100,000

4,200,000
2,100,000

4,200,000
2,100,000

1,050,000

1,050,000

1,050,000

1,050,000

6,000,000

6,000,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000
600,000

1,100,000
600,000

1,750,000

1,750,000

3,500,000
1,750,000

3,500,000
1,750,000

1,200,000

1,200,000

1,200,000

1,200,000

Averageinterest rate
(Note 1)0.70169%

0.46453%

0.58630%

0.09313%0.61942%(Unit: Thousands of yen)
Maturity
date

September
16,
2025

September
16,
2025

September
16,
2025

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

February 27,
2026(Note 4)

March 19,2026

(Note 3)

Remarks

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

0.35765%

September
7,2026(Note 4)

Unsecured,
non-guaranteed

0.71015%0.23004%

December
14, 2026
December28, 2026(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

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

Draw
down
date

January 9,
2018

January 10,
2020

June 13,2018

January 5,
2018

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

January 10,
2019
January 10,
2019

May 31,2019

BeginningbalanceEndingbalance

780,000

780,000

1,560,000
780,000

1,560,000
780,000

390,000

390,000

390,000

390,000

950,000

950,000

950,000
950,000

950,000
950,000

475,000

475,000

475,000

475,000

2,200,000

2,200,000

2,200,000
2,200,000

2,200,000
2,200,000

200,000

200,000

200,000

200,000

320,000

320,000

640,000
320,000

640,000
320,000

160,000

160,000

160,000

160,000

1,000,000

1,000,000

1,000,000
1,000,000

1,000,000
1,000,000

500,000

500,000

500,000

500,000

1,000,000

1,000,000

500,000

500,000

3,210,000

3,210,000

3,210,000
1,610,000

3,210,000
1,610,000

1,610,000

1,610,000

1,610,000

1,610,000

1,165,000

1,165,000

1,165,000
590,000

1,165,000
590,000

590,000

590,000

590,000

590,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.70698%

January 9,2027(Note 4)

Unsecured,
non-guaranteed

0.43349%

January 12,2027(Note 4)

Unsecured,
non-guaranteed

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

0.54375%(Note 5)

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed

0.65264%January 11,2028(Note 3)

Unsecured,
non-guaranteed

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

24
42

43

Category
Lender

Draw
down
date

BeginningbalanceEndingbalance

Averageinterest rate
(Note 1)

(Unit: Thousands of yen)
Maturitydate

Use offunds

Investment Corporation Bonds
Name of bonds

Issuance date

Balance as ofNovember30, 2019(millions ofyen)

Balance as ofMay
31, 2020(millions ofyen)Interestrate(%)

The 3rd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

2,000

The 4th Unsecured Investment
Corporation Bond

February 3, 2016

2,000

The 6th Unsecured Investment
Corporation Bond

February 2, 2017

The 7th Unsecured Investment
Corporation Bond

Remarks

Sumitomo Mitsui
420,000
420,000
Trust Bank, Limited
Mizuho Bank, Ltd.
420,000
420,000
LongMUFG Bank, Ltd.
July 9,420,000
420,000
July 10,
Unsecured,
0.49281%(Note 4)
term
2019
2028
non-guaranteed
Sumitomo Mitsui
loans
220,000
220,000
Banking Corporation
payable(Note 2) Development Bank of
220,000
220,000
Japan Inc.
Development Bank ofJune 13,
December
Unsecured,
6,000,000
6,000,000
0.56511%(Note 4)
Japan Inc.
2019
13,2028
non-guaranteed
Total
206,350,000 216,350,000(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of this hedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.
(Note 7) Use of the borrowings is appropriated to repayment of investment corporation bonds.

Maturity date

Repayment
method0.726

April 21,2025

Lump sum(Note)

2,000

0.770

February 3,
2026

Lump sum(Note)

1,000

1,000

0.480

February 2,
2027

Lump sum(Note)

February 2, 2017

1,000

1,000

0.810

February 2,
2032

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

February 13,
2018

1,000

1,000

0.160

August 12,
2022

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

February 13,
2018

1,000

1,000

1.050

February 12,
2038

Lump sum(Note)

The 10th Unsecured Investment
Corporation Bond (Green Bond)

July 9, 2019

5,000

5,000

0.220 July 9, 2024

Lump sum(Note)

The 11th Unsecured Investment
Corporation Bond (Green Bond)

November 18,
2019

4,000

4,000

0.530

November16, 2029

Lump sum(Note)

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

—

4,500

0.510

October 21,
2030

Lump sum(Note)

17,00021,500Total

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

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

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

26
44

45

6. Buying and Selling during the Period

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

Not applicable

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

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

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

2) Others

Not applicableNot applicable

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

Commissions Paid
Category

Property management fee

Not applicable
Total amount (A)(thousands of yen)419,228

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

Amount (B)(thousands of yen)
191,440(B) / (A)(%)
45.7

122,976

29.3

63,6673,331
658,221
8,969

15.2
0.8
84.0
58.6

4,009

26.2

Building management fee

783,414

Construction management fee

15,311Other management operation
expenses

1,081

7.1

60,108Tokyu Community Corp.

7,664

12.8

84,782

24.2

7,084

2.0

349,775

Tokyu Community Corp.
Tokyu Land SC Management
Corporation
TOKYU LIVABLE STAFF, INC.
Tokyu Land Corporation
Tokyu Re・design Corporation
HANDS LAB INC.

2,141
1,469
881
760

0.6
0.4
0.3
0.2

Other lease business expenses(Note 1) The term “Interested parties” refers to interested parties of Asset Management Companies as stipulated by Article 201, Paragraph 1 of theInvestment Trust Act, Article 123 of the Enforcement Ordinances of the Act on Investment Trust and Investment Corporation of Japanand Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment
Corporations, issued by The Investment Trusts Association, Japan.
(Note 2) Other than commission paid as referred to above, construction works ordered to interested parties are as follows:
Tokyu Community Corp.
¥145,509 thousand
Tokyu Re・design Corporation¥18,118 thousand
Tokyu Land SC Management Corporation¥3,086 thousand(2) Announcements
Here is an outline of major agreement that the Board of Directors of the Investment Corporation approved to conclude andmodify for the fiscal period under review.
Date of approval

September 25,
2020

Item

Summary

Comprehensive approval ofissuance of investment
corporation bonds andappointment ofadministrators

The Board of Directors of the Investment Corporation made a comprehensive resolution
regarding the issuance of investment corporation bonds (total amount: ¥50 billion or less;issuance period: October 4, 2020 to October 3, 2021); approved the appointment ofcandidate companies for the entrustment of affairs and administrative works, such as
issuing agent, financial agent, and paying agent regarding the placing of investment
corporation bonds; and entrusted the decision of other necessary matters to the Executive
Director.

(3) Status of Companies Owing Real Estate Overseas
Not applicable(4) Status of Real Estate Owned by Companies Owning Real Estate Overseas
Not applicable(5) Other
For the purpose of this report, the numbers for amounts below unit and percentages are rounded to units, unless otherwise
mentioned specifically.

(5) Transactions between the Asset Manager in Other Businesses of the Asset Manager
No relevant matter exists under this subject as the asset manager (TLC REIT Management Inc.) does not engage in any
other business such as the first- or second-type financial instruments businesses under the Financial Instruments andExchange Act (or the securities business under the former Securities and Exchange Act), the building lots and buildings
transaction business, or the real estate joint enterprise.

28
46

47

Financial Statements
II. Balance Sheets(Unit: Thousands of yen)
As of May 31, 2020
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Land leasehold interests in trust
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets(Unit: Thousands of yen)

As of November 30, 2020

13,486,961
3,269,588
679,207
571,533
16,50818,023,799

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

84,702,637(13,975,701)
70,726,935
734,704(215,485)
519,218
1,367,743(387,964)
979,779
263,247(143,002)
120,245424,862,322
8,478
497,216,979

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

9,055,086
1,186
9,056,272

9,055,086
932
9,056,018

1,261,641
10
38,322
1,299,975
507,573,227

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

89,44789,447525,686,474

108,108
108,108525,378,522

As of May 31, 2020
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received intrust
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference
adjustments
Total deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

1
48

*3

*2

As of November 30, 2020

1,005,767
10,998,000
12,500,000
149,224
952,182817
330,044849,827
4,156
32,904
26,822,925

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

17,000,000
203,850,000

21,500,000
190,100,000

22,309,458

22,353,035

3,443
243,162,902
269,985,827

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

248,370,846

248,370,846–*3(3,084)–
248,370,846(3,084)
248,367,761

7,333,243

7,366,549

7,333,243
255,704,090

7,366,549
255,734,310(3,443)(3,443)
255,700,646
525,686,474(28,584)(28,584)
255,705,726
525,378,522

*2

2
49

III. Statements of Operations

Ⅳ. Statements of Changes in Unitholders’ Equity
Previous fiscal period (From December 1, 2019 to May 31, 2020)(Unit: Thousands of yen)Previous fiscal period(Unit: Thousands of yen)

Current fiscal period(From December 1, 2019

(From June 1, 2020

to May 31, 2020)

to November 30, 2020)

Unitholders’ equity
Unitholders’ capital

Operating revenue
Leasing business revenue*1

13,903,877

Other leasing business revenue*1936,713*1, *3Gain on sales of real estate properties*2

143,798*2

Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fee
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Reversal of distributions payable
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Borrowing related expenses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1, *3 14,009,287

14,984,389*1

5,470,679

Unitholders’capital1,037,494
26,732
Balance at beginning of
period15,073,515*1

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

72
698
9,535
381
10,687

78
1,158
7,334
–
8,570

642,50745,976634,346
46,159

9,205

7,684

185,307500
883,497
7,333,494
7,333,494
828
(5)
823
7,332,671
572
7,333,243

184,162500
872,851
7,363,965
7,363,965
953
(5)
947
7,363,018
3,530
7,366,549(10,797)

Unappropriatedretained earnings(undisposed loss)

Total surplus

Totalunitholders’equity248,360,049

7,829,267

7,829,267

256,189,316(7,817,897)(7,817,897)(7,817,897)(10,797)(10,797)–

7,332,671

7,332,671

7,332,671

Dividends of surplus
Reversal of allowance fortemporary difference
adjustments

10,797

10,797

10,797

ProfitNet changes in items otherthan unitholders’ equity
Total changes during
periodBalance at end of period

Balance at beginning of
period–10,797

10,797

10,797(496,023)(496,023)(485,226)*1
248,370,846––

248,370,846

7,333,243

7,333,243

255,704,090(Unit: Thousands of yen)
Valuation and translation
adjustments
Total net
DeferredTotal
assetsgains orvaluation andlosses ontranslation
hedgesadjustments
8,954

8,954

256,198,271

Changes during period
Dividends of surplus(7,817,897)

Reversal of allowancefor temporary difference
adjustments–

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

350(10,797)

Unitholders’capital, net

Changes during period

5,588,521

1,104,664
15,02936,852
3,300
147,558
6,778,084
8,206,304

248,370,846

Surplus

Deduction from unitholders’capitalAllowance
Total deduction
for temporaryfromdifference
unitholders’adjustments
capital7,332,671(12,398)(12,398)(12,398)(12,398)(12,398)(497,625)(3,443)(3,443)

255,700,646

451

V. Statements of Cash Distributions

Current fiscal period (From June 1, 2020 to November 30, 2020)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Unitholders’capitalBalance at beginning of
period248,370,846

Surplus

Deduction from unitholders’capitalAllowance
Total
for
deduction
temporaryfromdifference
unitholders’adjustments
capital––Unitholders’capital, net

248,370,846

Unappropriatedretainedearnings(undisposed
loss)

Total surplus

7,333,243

7,333,243

Total
unitholders’equity255,704,090(7,329,712)

Distributions in excessof earnings fromallowance for temporary
difference adjustments(3,084)(3,084)(7,329,712)(3,084)

Profit(7,329,712)(3,084)

7,363,018

7,363,018

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

248,367,761

7,366,549

7,366,549

255,734,310(Unit: Thousands of yen)
Valuation and translation
adjustments
DeferredTotal
gains orvaluation andtranslation
losses onhedgesadjustments

Balance at beginning of
period(3,443)(3,443)

Total net
assets255,700,646

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

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

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

7,363,018(25,141)(25,141)(25,141)(25,141)(25,141)

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

255,705,726

552

III Distributions[Cash distributions per unit]

Dividends of surplus

Balance at end of period

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

Changes during period

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

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

Previous fiscal period(From December 1, 2019
to May 31, 2020)

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

AmountAmount¥7,333,243,684¥7,366,549,137¥3,084,896¥25,450,392¥3,084,896¥25,450,392¥7,332,797,792¥7,362,875,528[¥9,508][¥9,547]¥7,329,712,896¥7,337,425,136[¥9,504][¥9,514]¥3,084,896¥25,450,392

[¥4]

[¥33]

¥3,530,788¥29,124,001

Based on the distribution policy set forth in
Article 35, Paragraph 1 of the Articles ofIncorporation of the Investment Corporation,
distributions shall be limited to the amount of
net profit in excess of an amount equivalent toninety hundredths (90/100) of distributableprofits, as stipulated in Article 67-15,
Paragraph 1 of the Act on Special Measures
Concerning Taxation. In consideration of thispolicy, we will pay distributions of profits of¥7,329,712,896, which is the amount of the
net profit defined in Article 136, Paragraph 1of the Act on Investment Trusts andInvestment Corporations, except a fraction ofless than ¥1 of distributions per investment
unit.
Based on the policy on distribution of cash
exceeding net profit set forth in Article 35,
Paragraph 2 of the Articles of Incorporation of
the Investment Corporation, distributions inexcess of earnings shall be made in an amountdecided by the Investment Corporation andequivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item
30 (b) of the Regulations on Accountings ofInvestment Corporations), taking into accounteffects of the deduction in net assets on
distribution amounts. During the fiscal period
under review, the Investment Corporation has
accordingly decided to distribute ¥3,084,896
as distributions related to allowance fortemporary difference adjustments (refers to
stipulations of Article 2, Paragraph 2, Item 30of the Regulations on Accountings ofInvestment Corporations), calculated to
exclude a fraction of less than ¥1 of
distributions in excess of earnings perinvestment unit from the amount equivalent todeferred losses on hedges of ¥3,443,618. As aresult, distributions are to amount to¥7,332,797,792 for the fiscal period underreview.

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

653

VII. Notes to Financial Statements

VI. Statements of Cash Flows

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

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Amortization of investment corporation bondissuance costs
Interest income and interest on securities
Interest expenses
Borrowing related expenses
Decrease (increase) in operating accounts receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease in property, plant and equipment in trust
due to sale
Increase (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Refund of leasehold and guarantee deposits received
in trust
Proceeds from leasehold and guarantee deposits
received in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation
bonds
Redemption of investment corporation bonds
Distributions paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Not applicable

Current fiscal period

Notes on Important Accounting Policies(From December 1, 2019

(From June 1, 2020

to May 31, 2020)

to November 30, 2020)*1

7,333,494
1,334,606–

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

9,205

7,684

(72)
688,484
185,307125,267(49,018)(209,406)(78)
680,505
184,162
33,319(11,743)
206,899

20,787,757–(156,233)(11,313)268,249
8,590
25,21230,340,13072(691,442)(616)
29,648,143

68,498(852)(311,338)
16,948(27,019)9,556,036
78(680,318)(829)
8,874,966(31,917,697)(757,118)(1,012,287)(640,820)

1,778,321

684,397(31,151,663)(713,542)

31,992,459(26,000,000)
17,219,286(7,300,000)

1,517,316(5,998,000)–––

4,474,498(6,000,000)(7,813,803)(23,326)
2,074,615
571,095
16,185,454
16,756,549–(7,328,580)(32,130)(7,366,894)
794,529
16,756,549
17,551,079*1

1. Method of depreciation (1)of non-current assets

Property, plant and equipment (including trust assets)
The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 70 years
Structures
2 to 66 years
Machinery and equipment
2 to 33 years
Tools, furniture and fixtures
2 to 15 years(2) Intangible assets
Internal use software is amortized by the straight-line method over the expected useful life (5years).
(3) Long-term prepaid expenses
The straight-line method is used.

2. Accounting method for (1) Investment unit issuance expenses
deferred assets
The full amount is recorded as expenses when incurred.
(2) Investment corporation bond issuance costs
Amortized by the straight-line method over the period until maturity.
3. Accounting for income Property-related taxes
and expenses
For property tax, city planning tax, depreciable asset tax for real properties held, the amount oftax levied corresponding to the calculation period is recorded as expenses related to leasing
business.
The settlement money for property tax that is paid to the disposing entity for acquisition of real
properties (so-called “amount equivalent to property tax”) is not recorded as expenses related toleasing business but included in the acquisition costs for the related properties. There is noamount equivalent to property tax included in acquisition cost for properties for the current
fiscal period.
4. Method of hedge
accounting

7
54

(1)

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

855

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

Notes to Balance Sheets

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

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

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

As of May 31, 2020

As of November 30, 2020

Total amount specified in the commitment line
contracts¥21,000,000 thousand¥21,000,000 thousand

Loan balance¥1,998,000 thousand–¥19,002,000 thousand¥21,000,000 thousand

Net balance*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations
As of May 31, 2020

As of November 30, 2020

¥50,000 thousand¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2019 to May 31, 2020)
1.Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision

Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2019 to May 31, 2020)
1.Reason for Provision, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

Reason for provision
Recognition of loss on valuation ofinterest rate swaps(Unit: Thousands of yen)
Allowance for temporary
difference adjustments
3,084

Related assets,
etc.

Reason forprovision

Deferred
gains or losses
on hedges–

Initialamount(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
beginning of provision for reversal forend ofreversal
periodperiodperiodperiodChanges infair value of–
10,797–
10,797–
derivativetransactions

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

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

Current fiscal period (From June 1, 2020 to November 30, 2020)
1.Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision

Current fiscal period (From June 1, 2020 to November 30, 2020)
1.Reason for Provision, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

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

Reason forprovision

Deferred
gains or losses
on hedges

Recognition ofloss onvaluation ofinterest rate
swaps

Initialamount

3,084(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
beginning of provision for reversal forend ofreversal
periodperiodperiodperiod
–

3,084

–

3,084

–

2.Specific Method of Reversal
Deferred gains or losses on hedges

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

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

956

Related assets,
etc.

10
57

Notes to Statements of Operations*3. Transactions with Major Unitholders*1. Breakdown of Profit (Loss) from Real Estate Leasing Business(Unit: Thousands of yen)Previous fiscal period(From December 1, 2019
to May 31, 2020)
A.

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

Operating revenue

Leasing business revenueB.

12,772,803

12,889,168

Common service fees

739,471

739,267

Parking lot fees

290,588285,349

Other rent revenue

101,013

13,903,877

95,5001,037,494

14,840,590

15,046,782

Total number of investment units issued

Expenses related to leasing business
1,278,062

841,809

892,089

Tax and public dues

1,110,349

1,268,968

12,914

12,985

Repair and maintenance expenses
Depreciation

C.

312,576

441,806

1,334,352

1,335,601

Loss on retirement of non-current
assets–Other expenses related to leasing
business571,767

349,775

5,588,521
5,588,521

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

9,369,910

9,458,260(Unit: Thousands of yen)
21,000,000
20,787,757
68,443EDGE Shinsaibashi (structures)
Income from sales of real estate properties
Costs of sales of real estate properties
Other costs of sales
Gain on sales of real estate properties¥13,486,961 thousand¥14,125,013 thousand

Cash and deposits in trust¥3,269,588 thousand¥3,426,066 thousand

Cash and cash equivalents¥16,756,549 thousand¥17,551,079 thousand

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

Due within one year

¥16,962,650 thousand¥16,373,159 thousand

Due after one year

¥117,205,771 thousand¥111,128,182 thousand

Total¥134,168,421 thousand¥127,501,341 thousand

143,798(Unit: Thousands of yen)
29,000–2,267
26,732

11
58

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

Cash and deposits

As of May 31, 2020

Gain on sales of real estate properties
Current fiscal period (From June 1, 2020 to November 30, 2020)

771,224 units

Previous fiscal period(From December 1, 2019
to May 31, 2020)

5,470,679

A-PLACE Shinbashi Ekimae
Income from sales of real estate properties
Costs of sales of real estate properties
Other costs of sales

4,000,000 units

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

Total real estate leasing business
expenses*2. Breakdown of Gain (Loss) on Sales of Real Estate Properties
Previous fiscal period (From December 1, 2019 to May 31, 2020)

4,000,000 units

Notes to Statements of Cash Flows

9,230
5,470,679

Current fiscal period(From June 1, 2020
to November 30, 2020)*1. Total number of authorized investment units and total
number of investment units issued
Total number of authorized investment units

Real estate leasing business expenses

Insurance

Previous fiscal period(From December 1, 2019
to May 31, 2020)

14,009,287

936,713

1,286,910

2,124,905*1. Total number of authorized investment units and total number of investment units issued are as follows:

Total real estate leasing businessrevenues

Utilities expenses–

Notes to Statements of Changes in Unitholders’ Equity

Other leasing business revenue

Management operation expenses

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

Operating transactions

Real estate leasing business revenues

Rent(Unit: Thousands of yen)Previous fiscal period(From December 1, 2019
to May 31, 2020)

1259Notes on Financial Instruments

Carrying amounts, fair values, and the differences between the two values as of November 30, 2020, are as shown below.
Financial instruments whose fair value is considered to be extremely difficult to determine are not included in this table (pleaserefer to (Note 2)).

1. Matters Regarding Financial Instruments(1)

Policy for Financial Instruments(Unit: Thousands of yen)

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

Carrying amount

Difference

14,125,013

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

3,426,066

3,426,066–

Total assets

17,551,079

17,551,079–

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

(1) Short-term borrowings

6,518,000

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

26,250,000

26,309,036

59,036

We may carry out derivatives transactions for the purpose of hedging the interest-rate risk of borrowings and other risks, but
do not engage in speculative transactions.

(3) Investment corporation bonds

21,500,000

21,661,272

161,272(4) Long-term borrowings

190,100,000

192,679,568

2,579,568

244,368,000

247,167,878

2,799,878(28,584)(28,584)–

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

(2)

Content and Risks of Financial Instruments and Risk Management System

As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit risks such as theinsolvency of the financial institutions in which the excess funds are deposited. However, we deposit excess funds carefully
by limiting the period of deposits to the short term, taking safety and liquidity, etc. into account and carefully considering thefinancial environment and our cash management.
Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate and refinancing of existing
borrowings. Leasehold and guarantee deposits received are deposits provided by tenants. Borrowings, investment corporation
bonds, leasehold and guarantee deposits received are exposed to liquidity risks at the time of repayment or redemption.
However, these risks are managed through management of liquidity in hand by preparing a monthly funding plan, efforts to
reduce liquidity risk on borrowings and investment corporation bonds by diversifying repayment periods, etc., and othermeans.

(3)

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

(1) Short-term borrowings

Supplemental Remarks on the Fair Value of Financial Instruments

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

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

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

2. Matters Regarding Fair Values of Financial Instruments

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

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

Fair value

Difference(1) Cash and deposits

13,486,961

13,486,961–(2) Cash and deposits in trust

3,269,588

3,269,588–

Total assets

16,756,549

16,756,549–(1) Short-term borrowings

10,998,000

10,998,000–(2) Current portion of long-term borrowings

12,500,000

12,600,325

100,325(3) Investment corporation bonds

17,000,000

17,278,254

278,254(4) Long-term borrowings

203,850,000

206,045,048

2,195,048

244,348,000

246,921,627

2,573,627(3,443)(3,443)–

Total liabilities
Derivative transactions

Measurement Methods for Fair Values of Financial Instruments

Liabilities

Floating-rate borrowings are also exposed to the risk of fluctuations in interest-rates. However, these risks are managed
through derivative transactions (interest rate swaps) as hedging instruments in certain floating-rate borrowings.

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

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

13
60

Fair value(1) Cash and deposits

As of May 31, 2020

As of November 30, 2020

22,309,458

22,353,035

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

14
61

(Note 3)

Notes on Derivative Transactions

Expected Amounts of Redemption of Monetary Claims after the Account Closing Date
(May 31, 2020)(Unit: Thousands of yen)
Within1 year

1–2 years

2–3 years

3–4 yearsOver
5 years

4–5 years

Deposits

13,486,961

–

–

–

–

–

Deposits in trust

3,269,588

–

–

–

–

–

Total

16,756,549

–

–

–

–

–

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

2–3 years

3–4 yearsOver
5 years

4–5 years

Deposits

14,125,013

–

–

–

–

–

Deposits in trust

3,426,066

–

–

–

–

–

Total

17,551,079

–

–

–

–

–

(Note 4)

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the Account Closing Date
(May 31, 2020)(Unit: Thousands of yen)
Within1 yearShort-term borrowings

Total

2–3 years

3–4 yearsOver
5 years

4–5 years

10,998,000

–

–

–

–

–

–

–

1,000,000–

7,000,000

9,000,000

12,500,000

27,850,000

26,500,000

32,750,000

24,000,000

92,750,000

23,498,000

27,850,000

27,500,000

32,750,000

31,000,000

101,750,000

Investment corporation bonds
Long-term borrowings

1–2 years

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

1–2 years

6,518,000

2–3 years–

3–4 years–Over
5 years

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

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

1. Derivative Transaction to Which Hedge Accounting Is Not Applied

–

–

–

1,000,000–

5,000,000

2,000,000

13,500,000

26,250,000

26,100,000

29,750,000

29,500,000

26,000,000

78,750,000

32,768,000

27,100,000

29,750,000

34,500,000

28,000,000

92,250,000(As of May 31, 2020)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the account closing dateby method of hedge accounting.
(Unit: Thousands of yen)Amount of contract

Hedge accounting

Type of derivativetransactions

Major hedged
items

Deferred hedge
accounting

Interest rate swaps
Receive floating
Pay fixed

Long-term
borrowings

12,000,000

Special treatment
for interest rate
swaps

Interest rate swaps
Receive floating
Pay fixed

Long-term
borrowings

18,140,000

Fair value

Calculation
method for fairvalue

12,000,000(3,443)

Based on prices,
etc. indicated bypartner financial
institutions

18,140,000*–

Portion due
after 1 year

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

Type of derivativetransactions

Major hedged
items

Deferred hedge
accounting

Interest rate swaps
Receive floating
Pay fixed

Long-term
borrowings

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

12,000,000

Fair value

Calculation
method for fairvalue

(28,584)

Based on prices,
etc. indicated bypartner financial
institutions

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

15
16
62

63

Notes on Transactions with Related Parties

Notes on Deferred Tax Accounting

1. Parent Company and Major Corporate Unitholders

1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of May 31, 2020

Previous fiscal period (From December 1, 2019 to May 31, 2020)

As of November 30, 2020

Not applicable.

Deferred tax assets
Non-deductible amount for tax purposes ofenterprise tax payable¥10 thousand¥16 thousand–¥8,992 thousand

Deferred gains or losses on hedges
Subtotal of deferred tax assets¥10 thousand¥9,009 thousand–¥(8,992) thousand¥10 thousand¥16 thousand¥10 thousand¥16 thousand

Valuation allowance
Total deferred tax assets
Net deferred tax assets

2. Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax Rate afterApplication of Deferred Tax Accounting
As of May 31, 2020
Effective statutory tax rate

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

Attribu
te

Name

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

As of November 30, 2020

Other
Effective income tax rate after application of tax
effect accounting

Transaction

Receipt ofleasehold andguarantee
deposits

31.46%

31.46%(31.46)%(31.46)%

0.01%

0.01%

(Note 1)

0.01%

0.01%

(Note 2)Adjustments
Distributions paid included in deductibles

Address

Share
Relationship
Percenta
capital orBusiness ge ofinvestme
orvoting Interloc Business
nt in
k-ing
occupatio rights
relationcapitalnowning officers, ship
(Millionsetc.
(owned)of yen)Real
57,551 estatebusiness

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

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

9,635

Leasehold andguarantee
deposits
received in
67,322 trust

2,384,566

Operatingaccounts
2,124,905 receivable

103,980

Advances
received

61,221Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period
includes consumption taxes.
The transaction terms are based on current market practices.

2. Affiliates, etc.
Previous fiscal period (From December 1, 2019 to May 31, 2020)
Not applicable
Current fiscal period (From June 1, 2020 to November 30, 2020)
Not applicable

17
64

18
65

3. Sister companies, etc.

Notes on Investment and Rental Properties

Previous fiscal period (From December 1, 2019 to May 31, 2020)

The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions for rental revenue.
The carrying amounts on the balance sheets, changes during the fiscal period, and fair values of investment and rental properties
are as follows.

Not applicable(Unit: Thousands of yen)

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

Attribute

Name

Share
Relationship
Percenta
capital orTransactio
Business
ge ofinvestme
n amountorvoting Interloc BusinessTransaction
nt inAddressk-ing(Thousandoccupatio rights
relationcapitals of yen)nowning officers
ship(Millions(owned) , etc.
of yen)

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

Real
estate
100 managementbusiness–

Receipt ofleasehold andguarantee
deposits

18,195

Refund ofleasehold andRent andguarantee
manageNone
deposits
ment ofreceived
properties

62,41010-1,
Tokyu
Subsidiary
Yoga 4Commun
of majorchome,
ity
unitholder
SetagayaCorp.
ku, Tokyo(Note 1)
(Note 2)Real
estate1,653 managementbusiness–

Use

Balance at beginning of period
Urban Retail
Properties

Leasehold andguarantee
deposits
received in trust

358,920

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

198,881,821

198,791,882

Carrying amount on the balance sheets

Changes during period(89,939)(325,913)

Balance at end of period

198,791,882

198,465,968

239,866,000

238,636,000

195,101,532

204,916,612

Fair value at end of period

6,239,918

Carrying amount on the balance sheets
Balance at beginning of period

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

Account title

Balance at
end ofperiod(Thousandsof yen)Previous fiscal period(From December 1, 2019
to May 31, 2020)

Operatingaccounts
receivable

261,364

Advances
received

45,557

Tokyo Office
Properties

Changes during period

9,815,079(243,123)

Balance at end of period

204,916,612

204,673,488

244,140,000

245,780,000

102,648,428

102,563,571

Changes during period(84,857)(125,640)

Balance at end of period

102,563,571

102,437,930

121,620,000

122,490,000

496,631,782

506,272,066

Changes during period

9,640,283(694,677)

Balance at end of period

506,272,066

505,577,388

605,626,000

606,906,000

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

Leasehold andguarantee
deposits
received in trust

9,224,589

Refund ofleasehold andguarantee
437,397
Rent and deposits
manage- received
Nonement of
Operatingproperties
accounts
Rental
6,064,036 receivable
revenues, etc.
Advances
received
Real estate
Operatingmanagement
866,295 accounts
feepayableActivia Account
Properties

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

209,203

Total
42,623

Fair value at end of period

183,422Of the amounts above, the transaction amount does not include consumption taxes, and the ending balance includes
consumption taxes.
The transaction terms are based on current market practices.

(Note 1)

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

(Note 2)The main reason for the decrease in the current fiscal period is the provision of depreciation worth ¥1,335,601
thousand.

(Note 3)

The fair value at end of period is the appraisal value provided by an outside real estate appraiser.

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

19
66

20
67

Segment Information

Per Unit Information

Segment Information for the fiscal periods ended May 31, 2020 and November 30, 2020 is as follows:
1. Operating Segment Information
Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in the property rental
business.
2.

3.

Enterprise-wide Disclosures(1) Information about Products and Services
Disclosure is not required as revenues from external customers for the single segment is in excess of 90% of total revenues.
(2) Information about Geographic Areas
Revenues from Overseas Customers:
Disclosure is not required as revenues from external customers attributed to Japan are in excess of 90% of total revenues.
Property, plant and equipment:
Disclosure is not required as Property, plant and equipment located in Japan are in excess of 90% of total Property, plant andequipment.
Information about Major Customers
Previous fiscal period (From December 1, 2019 to May 31, 2020)
Name of Customer

Revenues

Related Segment

Tokyu Community Corp.

6,061,386

Property rental businessTokyu Land SC Management Corporation

4,102,214

Property rental businessTokyu Land Corporation

1,769,752

Property rental businessCurrent fiscal period (From June 1, 2020 to November 30, 2020)
Name of Customer

Revenues

Property rental businessTokyu Land SC Management Corporation

3,939,335

Property rental businessTokyu Land Corporation

2,124,905

Property rental business¥331,558¥9,507¥9,547(Note 1)

Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (previous fiscal period 771,224 units; current fiscal period 771,224 units). Diluted earnings per unit is notstated, as there is no potential investment unit.

(Note 2)The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From December 1, 2019
to May 31, 2020)

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

7,332,671

7,363,018

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

Profit attributable to common investment units(Thousands of yen)

7,332,671

7,363,018

771,224

771,224

Significant Subsequent Events
Not applicable.

Related Segment

6,064,036¥331,551

Basic earnings per unit

Average number of investment units for the period(Units)(Unit: Thousands of yen)

Tokyu Community Corp.

Net assets per unit

Profit (Thousands of yen)

(Unit: Thousands of yen)

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

Previous fiscal period(From December 1, 2019
to May 31, 2020)

Omission of Disclosure

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

21
68

69

VIII. Schedule of Financial Statements

Other Specified Assets

Securities
1.

Not applicable

SharesNot applicable2.

Investment Corporation Bonds(Unit: Thousands of yen)

Securities Other Than Shares
Not applicable

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

Fair value(Note 2) (Note 3)Classification

Type of derivative transactions

Over-the-counter

Interest rate swaps
Receive floating Pay fixed

30,140,000

30,140,000(28,584)

Total

30,140,000

30,140,000(28,584)

Portion due
after one year

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

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

Tangible
AssetsIntangible
AssetsIncrease

Decrease

EndingBalanceAccumulated
depreciation

Depreciation
for the period

Net property,
plant andequipment

Buildings in trust

84,702,637

569,30936,42085,235,526

15,209,363

1,260,852

70,026,162

Structures in trust

734,704

6,302－

741,007

233,660

18,174507,346

Machinery andequipment in
trust

1,367,743

29,541－

1,397,285

425,855

37,890971,430

Tools, furnitureand fixtures intrust

263,247

19,021－

282,268

161,686

18,683

120,582

Land in trust

424,862,322－－

424,862,322－－

424,862,322

Construction inprogress in trust

8,478

25,980－34,458－－34,458Subtotal

511,939,133

650,155

36,420512,552,867

16,030,565

1,335,601

496,522,302

Leasehold rights
in trust

9,055,086－－

9,055,086－－

9,055,086

Other (Note)

7,153

－

－

7,153

6,221

254

932

Subtotal

9,062,239－－

9,062,239

6,221

254

9,056,018

521,001,373

650,155

36,420521,615,107

16,036,786

1,335,856

505,578,321

Total

Issue

Issue Date

Beginningbalance

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

April 21,2015

2,000,000－

2,000,000

0.726%

April 21,2025

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

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

February 3,
2016

2,000,000－

2,000,000

0.770%

February 3,
2026

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

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

February 2,
2017

1,000,000－

1,000,000

0.480%

February 2,
2027

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

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

February 2,
2017

1,000,000－

1,000,000

0.810%

February 2,
2032

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

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

1,000,000－

1,000,000

0.160%

August 12,
2022

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

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

1,000,000－

1,000,000

1.050%

February 12,
2038

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

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

5,000,000－

5,000,000

0.220%

July 9,2024

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

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

4,000,000－

4,000,000

0.530%

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

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

4,500,000

0.510%

October 21,
2030

–

–

Total
(Note)

July 9,2019–

17,000,000

Decrease

Endingbalance

Interest
Rate

RedemptionDate— 21,500,000

Use of funds

Remarks

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

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

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

1–2 years
1,000,000

2–3 years

3–4 years—

5,000,000

4–5 years
2,000,000(Note) “Other” is software (non-real estate asset).

23
70

24
71

Loans Payable
Category

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

Draw
down
date
January 30,
2020
April 17,2020
January 10,
2020
November30, 2020

December19, 2013

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

Longtermloanspayable(Note 2)

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

January 10,
2014

March 31,2017
January 10,
2019
January 10,
2019

January 5,
2018

January 9,
2015

Beginningbalance

Increase

Endingbalance

Decrease

1,600,000—

1,600,000—

1,600,000
800,000——

1,600,000
800,000——

Averageinterest rate
(Note 1)Maturity
date

0.18573%

November30, 2020

666,000———

666,000
666,000——

2,000,000——

2,000,000

2,000,000
1,000,000

—
—

—
—

2,000,000
1,000,000—

506,000—

506,000——
10,998,000

506,000
506,000
1,518,000——
5,998,000

506,000
506,000
6,518,000

1,060,000——

1,060,000

1.07980%

1,060,000——

1,060,000

1.07980%

1,060,000——

1,060,000

1.07980%

666,000—

666,000
666,000

0.33128%0.18629%0.18818%

1,060,000——

1,060,000

1.07980%

530,000——

530,000

1.07980%

530,000——

530,000

1.07980%

1,340,000——

1,340,000

1.07856%

1,340,000——

1,340,000

1.07856%

1,340,000——

1,340,000

1.07856%

1,340,000——

1,340,000

1.07856%

670,000——

670,000

1.07856%

670,000——

670,000

1.07856%0.25000%

500,000——

500,000

3,920,000——

3,920,000

3,920,000
1,970,000

—
—

—
—

3,920,000
1,970,000

1,970,000——

1,970,000

1,970,000——

1,970,000

320,000——

320,000

November30, 2020
January 12,2021
November30, 2021
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
December19, 2020
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
January 10,
2021
March 31,
2021

Use offunds

Remarks(Note 7)

Unsecured,
non-guaranteed(Note 7)(Note 3)(Note 4)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 4)

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

Unsecured,
non-guaranteed

0.36607%

July 12,2021(Note 3)

Unsecured,
non-guaranteed——

640,000
320,000

160,000——

160,000

160,000——

160,000

840,000——

840,000

0.73690%840,000——

840,000

0.73690%840,000——

840,000

0.73690%0.41931%840,000——

840,000

0.73690%420,000——

420,000

0.73690%420,000——

420,000

0.73690%

December
28,
2021

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

Unsecured,
non-guaranteed

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

25
72

Maturitydate

Use offunds

Remarks

0.19629%January 11,2022(Note 4)

Unsecured,
non-guaranteed

0.31571%

January 11,2022(Note 4)

Unsecured,
non-guaranteed

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

1,420,000

1,420,000——

1,420,000

720,000——

720,000

720,000——

720,000

720,000——

720,000

2,000,000——

2,000,000

500,000——

500,000

400,000——

400,000

400,000——

400,000

Sumitomo Mitsui Trust
Bank, Limited

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note6)

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500,000——

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note6)

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000——

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui
Banking Corporation

100,000——

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000——

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560,000——

1,560,000

Mizuho Bank, Ltd.

1,560,000——

1,560,000

MUFG Bank, Ltd.

1,560,000——

1,560,000

0.44835%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

160,000——

160,000

160,000——

160,000

Mizuho Trust & Banking
Co.,LTD.

January 10,
2020

January 10,
2020
March 31,2015

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

Mizuho Bank, Ltd.
Longtermloanspayable(Note 2)

Decrease(Unit: Thousands of yen)

Averageinterest rate
(Note 1)—Development Bank ofJapan Inc.

Unsecured,
non-guaranteed

Increase

Endingbalance—

Sumitomo Mitsui
Banking Corporation

Unsecured,
non-guaranteed

Beginningbalance
1,420,000

MUFG Bank, Ltd.

Unsecured,
non-guaranteed

July 12,2021——

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

0.20129%

640,000
320,000

Lender(Unit: Thousands of yen)

Draw
down
date

March 31,2017

June 15,2015

MUFG Bank, Ltd.

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

December16, 2015

June 13,
2018

26
73

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

Longtermloanspayable(Note 2)

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

Draw
down
date

January 9,
2019

September
30, 2015

March 30,
2018

October 6,
2016

June 15,
2015

Resona Bank, Limited.
The Gunma Bank, Ltd.

December16, 2015
June 13,2017

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

Increase

Endingbalance

Decrease

620,000——

620,000

620,000
620,000————

620,000
620,000

320,000——

320,000

320,000——

320,000

1,250,000——

1,250,000

1,250,000——

1,250,000

1,250,000——

1,250,000

1,250,000——

1,250,000

750,000——

750,000

750,000
750,000————

750,000
750,000

375,000——

375,000

375,000——

375,000

800,000——

800,000

1,600,000
800,000————

1,600,000
800,000

400,000——

400,000

400,000——

400,000

1,500,000

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Taiyo Life Insurance
Company
Mitsui Sumitomo
Insurance Company,
LimitedBeginningbalance——

1,500,000

Averageinterest rate
(Note 1)

0.38236%(Unit: Thousands of yen)
Maturity
date

January 10,
2023

Use offunds(Note 4)

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

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

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

0.38472%

1.06316%

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

625,000——

625,000

0.75387%
0.75387%

625,000——

625,000

1,250,000——

1,250,000

2,500,000
1,250,000

—
—

—
—

2,500,000
1,250,000

500,000——

500,000

500,000——

500,000

1,500,000——

1,500,000

0.17254%500,000——

500,000

0.21254%

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

March 30,
2023

April 6,2023

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

0.46400%

June 15,2023

0.35998%

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

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

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed(Note 4)

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

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

27
74

Category

Remarks

Longtermloanspayable(Note 2)

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

Draw
down
date

January 12,
2016

January 10,
2020

March 31,2017

December16, 2015

June 13,
2016

June 13, 2016

September
21, 2016

Beginningbalance

Increase

Decrease

Endingbalance

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

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%700,000——

700,000

0.78362%700,000——

700,000

0.78362%

1,420,000——

1,420,000

1,420,000
720,000————

1,420,000
720,000

720,000——

720,000

720,000——

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

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

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

0.34459%

January 12,2024(Note 3)

Unsecured,
non-guaranteed

0.41380%

March 29,2024

(Note 4)

Unsecured,
non-guaranteed

2,000,000——

2,000,000

1,500,000——

1,500,000

1,000,000——

1,000,000

500,000
500,000————

500,000
500,000

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

600,000——

600,000

0.85377%

600,000——

600,000

0.85377%

1,500,000——

1,500,000

3,000,000
1,500,000

—
—

—
—

3,000,000
1,500,000

1,500,000——

1,500,000

3,000,000
1,500,000

—
—

—
—

3,000,000
1,500,000

1,200,000——

1,200,000

2,400,000
1,200,000

—
—

—
—

2,400,000
1,200,000

600,000——

600,000

600,000——

600,000

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

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

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

Unsecured,
non-guaranteed

0.36900%(Note 5)

December
13,
2024(Note 4)

Unsecured,
non-guaranteed

0.54094%

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

28
75

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

Draw
down
date

March 16,2017

March 16,2018

March 30,
2018

Beginningbalance

September
21, 2016

December13, 2016

March 7,2019

June 13,2017
June 28,
2019

Endingbalance

Decrease

1,800,000——

1,800,000

3,600,000
1,800,000

—
—

—
—

3,600,000
1,800,000

900,000——

900,000

900,000——

900,000

440,000——

440,000

440,000——

440,000

440,000——

440,000

440,000
440,000————

440,000
440,000

500,000——

500,000

300,000——

300,000

500,000——

500,000

500,000
500,000————

500,000
500,000

250,000——

250,000

250,000
August 29,
2019

Increase——(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

0.70169%

September
16,
2025

0.46453%

0.58630%

September
16,
2025

September
16,
2025

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

Remarks

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

250,000

1,500,000——

1,500,000

1,500,000——

1,500,000

2,100,000——

2,100,000

4,200,000
2,100,000

—
—

—
—

4,200,000
2,100,000

1,050,000——

1,050,000

1,050,000——

1,050,000

6,000,000——

6,000,000

1,100,000——

1,100,000

1,100,000——

1,100,000

1,100,000——

1,100,000

1,100,000
600,000————

1,100,000
600,000

1,750,000——

1,750,000

3,500,000
1,750,000

—
—

—
—

3,500,000
1,750,000

1,200,000——

1,200,000

1,200,000——

1,200,000

0.09313%0.61942%

February 27,
2026

March 19,2026

(Note 4)(Note 3)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

0.35765%

September
7,2026(Note 4)

Unsecured,
non-guaranteed

0.71015%0.23004%

December
14, 2026
December28, 2026(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

29
76

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

Draw
down
date

January 9,
2018

January 10,
2020

June 13,2018

January 5,
2018

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

January 10,
2019
January 10,
2019

May 31,2019

Beginningbalance

Increase

Endingbalance

Decrease

780,000——

780,000

1,560,000
780,000————

1,560,000
780,000

390,000——

390,000

390,000——

390,000

950,000——

950,000

950,000
950,000————

950,000
950,000

475,000——

475,000

475,000——

475,000

2,200,000——

2,200,000

2,200,000
2,200,000

—
—

—
—

2,200,000
2,200,000

200,000——

200,000

200,000——

200,000

320,000——

320,000

640,000
320,000————

640,000
320,000

160,000——

160,000

160,000——

160,000

1,000,000——

1,000,000

1,000,000
1,000,000

—
—

—
—

1,000,000
1,000,000

500,000——

500,000

500,000——

500,000

1,000,000——

1,000,000

500,000——

500,000

3,210,000——

3,210,000

3,210,000
1,610,000

—
—

—
—

3,210,000
1,610,000

1,610,000——

1,610,000

1,610,000——

1,610,000

1,165,000——

1,165,000

1,165,000
590,000————

1,165,000
590,000

590,000——

590,000

590,000——

590,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.70698%

January 9,2027(Note 4)

Unsecured,
non-guaranteed

0.43349%

January 12,2027(Note 4)

Unsecured,
non-guaranteed

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

0.54375%(Note 5)

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

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

Unsecured,
non-guaranteed

0.65264%January 11,2028(Note 3)

Unsecured,
non-guaranteed

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed

30
77Category
LenderSumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
LongMUFG Bank, Ltd.
term
Sumitomo Mitsui
loansBanking Corporation
payable(Note 2) Development Bank ofJapan Inc.
Development Bank ofJapan Inc.
Total

Draw
down
date

July 9,2019

June 13,2019

Beginningbalance

Increase

Endingbalance

Decrease

420,000——

420,000

420,000
420,000————

420,000
420,000

220,000——

220,000

220,000——

220,000

6,000,000——

6,000,000

216,350,000－—

216,350,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.49281%

July 10,2028(Note 4)

Unsecured,
non-guaranteed

0.56511%

December
13,2028(Note 4)

Unsecured,
non-guaranteed(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of thishedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.
(Note 7) Use of the borrowings is appropriated to repayment of investment corporation bonds.
(Unit: Thousands of yen)
Within 1 year
Long-term loans payable

26,250,000

1–2 years
26,100,000

2–3 years
29,750,000

3–4 years
29,500,000

4–5 years
26,000,000

31
78

79

Independent Auditor’s Report80

81Overview of API
Structure
The REITThe Sponsor

2

6

3

Sumitomo Mitsui
Trust Bank, Limited

General Meetingof Unitholders

The Asset Manager

4

CustodianTransfer Agent
General Administratorof InstitutionallyManaged Assets

1

5

Board of Directors

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

Executive Director:
Kazushi Sato
Supervisory Director:
Yonosuke Yamada

7Supervisory Director:
Yoshinori Ariga

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

Independent Auditor
Ernst & Young
ShinNihon LLC

1Asset management agreement

2

Asset custody agreement

3

Transfer agency agreement

4

General administration agreement

5

Fiscal agency agreement

6

Sponsor support agreement,
outsourcing agreement

7

Afﬁliate support agreements

ProfileName

Activia Properties Inc.

Executive Director

Kazushi Sato

Address

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

Contact

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

Closing dates

May 31 and November 30

History
Sep. 7, 2011

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

Sep. 20, 2011

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

Jun. 13, 2012

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

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

https://www.activia-reit.co.jp/en/
Accessible from smartphone as well.
82

83
53

Overview of the Asset Manager

Information on Unitholders

Overview of the Asset Manager

Trends in Unit Prices(¥)

Corporate
name

TLC REIT Management Inc.

Established

October 6, 2009

CapitalRegistration &License¥200 million

Shareholder

President andTokyu Land Corporation 100%
CEO

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

TSE REIT index (left axis)

600,000

API (left axis)

4,500
4,000

500,000

3,500

450,000

3,000

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

300,000
250,0000(Note 1) Performance of TSE REIT index is indexed to API unit price as of June 13, 2012 being 100.
(Note 2) As API implemented a 2-for-1 investment unit split effected as of October 1, 2015, the closing prices from the listing date to the end of May 2015 are indicated as half asadjusted for the unit split.

Distribution of Unitholders
Other domestic
companies

168 (2.2%)
Number ofunitholders
by holder type

Corporate Auditor

Foreignunitholders

Securities
companies

Individuals,other273 (3.6%)

39,447(5.1%)

30,349 (3.9%)

Securities
companies

21 (0.3%)

Investment Committee

Compliance Committee
President & CEO
Acquisition Priority
Review Meeting
Compliance Dept.

Internal Audit Dept.

Asset
Environmental
Investment Engineering
Dept.
Dept.

Strategy
Dept.

Asset
Management
Dept.

Foreignunitholders

160,534(20.8%)

Number ofinvestment units
by holder type771,224

Individuals,
other

Other domestic
companies

Financial
institutions

6,904 (91.5%)

88,744 (11.5%)

452,150 (58.6%)(Note 1) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.
(Note 2) “Individuals, other” includes goverments and local public entities.

Board of Directors

84

500

Jun. 13, End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of2012 Nov. 2012 May 2013 Nov. 2013 May 2014 Nov. 2014 May 2015 Nov. 2015 May 2016 Nov. 2016 May 2017 Nov. 2017 May 2018 Nov. 2018 May 2019 Nov. 2019 May 2020 Nov. 2020

Shareholders’ Meeting

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

1,000

7,542

Activia
Management Div.

1,500

200,000

176 (2.3%)

Corporate
Management Div.

2,000

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

Financial
institutions

Organizational Chart

2,500

November 30, 2020
API: ¥390,000
TSE REIT index: 1,688pt
Market Cap.: ¥300.8bn

350,000

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

5,000

550,000

400,000

DNA of Tokyu Land Corporation(¥ 100 millions)Market Cap. (right axis)

Comforia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

Broadia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

Unitholder Memo
Account closing dates

May 31 and November 30

Unitholders’ meeting

To be held at least once every two years

Record date forunitholders’ meeting
Dates for determining cash
distribution payments
Administrator ofunitholders’ registry
Place of business of administratorof unitholders’ registry
Stock exchange
Newspaper to provide public notice

A record date based on Article 15, Section 1 of the Articles of Incorporation
May 31 and November 30
Sumitomo Mitsui Trust Bank, Limited
4-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan
Stock Transfer Agency Business Planning Department of
Sumitomo Mitsui Trust Bank, Limited
Mailing address: 8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan
0120-782-031 (toll-free, available within Japan only)
URL: https://www.smtb.jp/personal/agency/index.html (Japanese page)
J-REIT section of the Tokyo Stock Exchange (securities code: 3279)
Nihon Keizai Shimbun
85

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

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

Please contact the securities company.

From January 1, 2014 through December 31, 2037

From January 1, 2038

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

Dividend tax rate oflisted investment
corporations

Breakdown

Breakdown

Residence tax 5%

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

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

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

Income tax
15%

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

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

0120-782-031

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

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

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

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

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

Annual Schedule
May

June

Closing month for the
fiscal period endingin May86

July

Announcementof financial
results

AugustCommencementof payment ofdividends

September

Release of theSemi-Annual
ReportOctoberNovember

DecemberClosing month for the
fiscal period ending inNovemberJanuary

Announcementof financial
results

February

Commencementof payment ofdividends

March

April

Release of theSemi-Annual
Report87

API 3279

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