S emi-Annual R epor t for the

21 st Fiscal Per iod
From August 1, 2020 to January 31, 2021

CRR 3282

For a Superior Level of
Living Comfort

21-1 Dogenzaka 1-chome, Shibuya-ku, Tokyo https://www.comforia-reit.co.jp/en/

I. Overview of the Investment Corporation
Greetings
We would like to express our deepest sympathies to those affected by COVID-19
infections, as well as our sincere hope for their earliest possible recovery.
We are pleased to inform you that Comforia Residential REIT, Inc (the “Investment
Corporation”) successfully closed all accounts for the 21st Fiscal Period (from August
1, 2020 to January 31, 2021). We would like to thank all of our unitholders and stakeholders for their continued support and cooperation.
We hereby report on the asset management overview and results for the 21st Fiscal
Period.
During the 21st Fiscal Period, we acquired COMFORIA TOYOCHO and three otherproperties, all located in the Tokyo 23 wards, through borrowings. Furthermore, wesold COMFORIA NISHIMAGOME and one other property in December 2020 in an effort to improve the quality of our portfolio.

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

Comforia Residential REIT, Inc

As a result, our portfolio as of the end of the 21st Fiscal Period stood at 137 properties, with a total acquisition price of ¥ 252. 1 billion. The average occupancy rate forthe 21st Fiscal Period remained generally stable at 95. 1%. The Investment Corporation had ¥ 9, 565 million in operating revenue, ¥ 4, 484 million in operating profit, and¥ 3, 889 million in profit, all of which exceeded our forecasts, resulting in a distribution per unit (DPU) of ¥ 5, 410.

Takehiro Izawa
Executive Director (center)

Koji Yamamoto
Supervisory Director (left)

Masamichi Ohshima
Supervisory Director (right)

Furthermore, after the end of the 21st Fiscal Period, we also acquired COMFORIA TAITONEGISHI and two other properties in
February 2021 through a public offering, conducted for the eighth consecutive year since listing, as well as cash on hand. Furthermore, we acquired COMFORIA OMIYA through cash on hand and sold COMFORIA SHIN-OSAKA in March 2021, resulting inan asset size of 140 properties with a total acquisition price of ¥ 261. 5 billion (as of March 31, 2021). We intend to continue tomake selective investments in high-quality properties mainly in the Tokyo 23 wards.
Under our basic policies of “investments in residential properties with stable earnings and high growth potential” and “utilizationof the Tokyu Fudosan Holdings Group,” we are carrying out investment in and management of rental residences, mainly in theTokyo metropolitan area, targeting singles and small families, based on the concept and know-how of the urban rental residence Comforia series, which Tokyu Land Corporation has produced. In the next fiscal period onward, we will continue to aim
to achieve stable earnings and ensure the steady growth of our managed assets based on medium- and long-term perspectives to maximize unitholders’ value. Your continued support and cooperation are highly appreciated.

Financial Highlights
Operating revenue¥ 9, 565 million

Number of properties

Operating profit¥ 4, 484 million

Acquisition priceProfit¥ 3, 889 million

Distribution per unit (DPU)¥ 5,410

Appraisal value
Occupancy rate at the 21st
Fiscal Period-end

Total loan to value (LTV)

51.4 %

Average occupancy rate

137 properties¥ 252. 1 billion¥ 312. 7 billion
95.9 %
95.1 %

Contents
I. Overview of the Investment Corporation
Greetings/Financial Highlights ....................................................................................... 1
Sustainable Growth in Asset Size and DPU ........................................................... 2External Growth Results ...................................................................................................... 4
Selective Investment with Portfolio Quality in Mind ........................................ 6
Internal Growth Strategy .................................................................................................... 8
Feature: Post COVID- 19 Rental Residence Market Forecast........................ 10
Financial Strategy .................................................................................................................. 12
Sustainability Initiatives ..................................................................................................... 14
Portfolio Map ........................................................................................................................... 16
Basic Policies ............................................................................................................................ 18
	
Overview of the Investment Corporation andAsset Management Company ...................................................................................... 19

II. Asset Management Report ......................................................................................... 21
III. Financial Section ................................................................................................................. 52
Balance Sheets ........................................................................................................................ 52
Statements of Income ....................................................................................................... 54
Statements of Changes in Unitholders’ Equity ................................................... 55
Statements of Cash Distributions ............................................................................... 56
Statements of Cash Flows ............................................................................................... 57
Notes ............................................................................................................................................. 58
Supplementary Schedules .............................................................................................. 68
Independent Auditor’s Report ...................................................................................... 75

1

Sustainable Growth in Asset Size and DPU
During the 21st Fiscal Period, the Investment Corporation acquired four properties in September 2020 and sold two
properties in December 2020. Furthermore, after entering the 22nd Fiscal Period, a public offering was implemented in
February 2021 and three properties were acquired with funds procured through the public offering as well as cash on
hand. In addition, it acquired one property through cash on hand and sold one property in March 2021.
The Investment Corporation will keep promoting external growth by continuing to invest selectively in high-quality
properties mainly in Tokyo 23 wards, focusing on the collaboration with our sponsor group, as well as original sourcing
by TLC REIT Management Inc., while seeking expansion of the asset size and stable distribution levels.

22nd Fiscal Period

Acquired COMFORIA
TOYOCHO and threeother properties andsold two properties

Historical Asset Size
Tokyo 23 wards

250

Over around
200

245.9
225.9

8 years since listing,
3.7-fold growth

187.4

146.5

150

116.2
100

74.5

71.2

71.2

Tokyo
23 wards
96.3％

Tokyo
23 wards
96.3％

Tokyo
23 wards
93.3％

Listed“End of 6th
Fiscal Period”“End of 7th
Fiscal Period”

Tokyo
23 wards

168.0

122.8

Tokyo
23 wards

92.9％

Tokyo
23 wards

Tokyo
23 wards

94.0％

93.6％

94.3％

Tokyo
23 wards

92.8％

Tokyo
23 wards

Tokyo
23 wards

90.4％

90.4％

Tokyo
23 wardTokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

91.0％

91.8％

Tokyo
23 wards

91.8％

Tokyo
23 wards

92.2％

Tokyo
23 wards

91.7％

90.9％

90.9％

92.5％

“End of 8th
Fiscal Period”“End of 9th
Fiscal Period”“End of 10th “End of 11th “End of 12th “End of 13th “End of 14th
Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period”(Ended Jul. 2013) (Ended Jan. 2014) (Ended Jul. 2014) (Ended Jan. 2015) (Ended Jul. 2015) (Ended Jan. 2016) (Ended Jul. 2016) (Ended Jan. 2017) (Ended Jul. 2017)

A+ (Stable)

Credit Rating

226.6

188.5

146.7

Tokyo
23 wards

252.1

206.0

202.1

achieved approximately(Feb. 6, 2013)

261.5

Tokyo metropolitan area/ Other major cities

164.4

0

Acquired COMFORIA
TAITONEGISHI andthree other properties
and sold one property

21st Fiscal Period

Selective Investments Mainly in Tokyo 23 Wards (As of March 31, 2021)(Billions of yen)

Future Strategy
Aim for an asset sizeof ¥300 billion
while maintaining aportfolio withproperties mainlyin the Tokyo
23 wards“End of 15th “End of 16th “End of 17th “End of 18th End of 19th “End of 20th End of 21st
Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period” Fiscal Period Fiscal Period” Fiscal Period(Ended Jan. 2018) (Ended Jul. 2018) (Ended Jan. 2019) (Ended Jul. 2019) (Ended Jan. 2020) (Ended Jul. 2020) (Ended Jan. 2021)

A+ (Positive)

As ofMarch 31,2021

Futurestrategy

AA– (Stable)
June 2018 FTSE EPRA/NAREIT
Global Real Estate
Index Series - Asia

Inclusion in
Indices

May 2019 MSCI Japan ESG Select Leaders Index
June 2020 Tokyo Stock Exchange REIT Core Index

Distribution per
Unit (DPU) (Note 1)¥4,051 ¥4,203 ¥4,268 ¥4,296 ¥4,403 ¥4,339 ¥4,487 ¥4,549 ¥4,681

Occupancy Rate
at End of Period

95.9%

96.2%

94.8%

95.2%

95.5%

96.2%

96.3%

96.5%

96.1%

¥4,788 ¥4,985 ¥5,180 ¥5,180 ¥5,295 ¥5,309 ¥5,410

96.7%

96.6%

96.4%

97.0%

96.7%

95.0%

95.9%

Aim to improve stabilized DPU
Consistently stable occupancy rate

(Note 1) Since a four-for-one split of investment units was carried out effective August 1, 2014, the figures for DPU prior to the split are divided by four and rounded off to the nearest whole number.
(Note 2) Ratio of Tokyo 23 wards denotes ratio among rental residences.

23External Growth Results
During the 21st Fiscal Period, the Investment Corporation acquired COMFORIA TOYOCHO and three other properties, alllocated in the Tokyo 23 wards, in September 2020 and sold two properties in December 2020. During the 22nd Fiscal
Period, the Investment Corporation acquired three properties at the time of the public offering, and acquired one property and sold one property in March.
Along with these efforts, the Investment Corporation aimed to improve the quality of its portfolio such as making it
younger through acquisition of sponsor-developed properties.

End of 21st FP

As of March 31, 2021

135 properties¥245.9 billion

137 properties¥252.1 billion

140 properties/¥261.5 billion

143 COMFORIA SHIN-OKACHIMACHI
Sponsordeveloped

Address

Sub-central Tokyo

Sponsordeveloped

Original
Route

Address

3-18-15 Negishi,
Taito-ku, Tokyo

Address

Ownership

Ownership

1-3-5 Shin-Ohashi,
Koto-ku, Tokyo

90 units

Acquisition date February 1, 2021
Acquisition price ¥3,031 million

148 COMFORIA MONZENNAKACHO SOUTH
Sponsordeveloped

Address

Sub-central Tokyo

149 COMFORIA MAGOME
Sponsordeveloped

1-13-6 Botan,
Koto-ku, Tokyo

Rentable units

Rentable units

Ownership

46 units

1-1-4 Nishimagome,
Ota-ku, Tokyo

Nearest station/ 6-minute walk from Magome
Station on the Toei Asakusa
Distance (on foot) Line

Tokyo Metro Tozai Line, etc.

Completion date December 2017

Sub-central Tokyo

Address

Nearest station/ 3-minute walk from Monzennakacho Station on the
Distance (on foot)OwnershipCompletion date August 201927 units

OwnershipCompletion date October 2019

Sub-central Tokyo

Nearest station/ 3-minute walk from Morishita
Station on the Toei-Shinjuku
Distance (on foot) Line, etc.

Ownership

Ownership

OwnershipCompletion date July 2019

OwnershipCompletion date July 2016

Acquisition date September 29, 2020

Acquisition date September 29, 2020

Rentable units

Acquisition price ¥1,237 million

Acquisition price ¥1,222 million

Acquisition date February 1, 2021

Acquisition date February 1, 2021

Acquisition price ¥1,428 million

Acquisition price ¥2,905 million

145 COMFORIA TOYOCHO
Sponsordeveloped

Sponsordeveloped

Acquisition through original routeof the Asset Management Company

144 COMFORIA MORISHITA WEST

Nearest station/ 4-minute walk from
Shin-Okachimachi Station
Distance (on foot) on the Toei-Oedo Line, etc.
Ownership

Sub-central Tokyo

Rentable units
Sponsor-developed
properties

Sponsordeveloped

2-18-8 Misuji,
Taito-ku, Tokyo

147 COMFORIA TAITONEGISHI

Nearest station/ 6-minute walk from Iriya
Station on the Tokyo Metro
Distance (on foot) Hibiya LineEnd of 20th FP

Properties Acquired in 21st Fiscal Period‌Properties Acquired in 22nd Fiscal Period (Through public offering)

Address

Sub-central Tokyo

2-26-11 Minamisuna,
Koto-ku, Tokyo

146 COMFORIA FUDOMAE
Sponsordeveloped

Address

Nearest station/ 13-minute walk from Minami
Sunamachi station on the
Distance (on foot) Tokyo Metro Tozai Line
Ownership

Ownership

5-1-12 Nishigotanda,
Shinagawa-ku, Tokyo

OwnershipCompletion date February 2020

Completion date February 2020

Rentable units

Rentable units

140 units

111 units

Sub-central Tokyo

Nearest station/ 2-minute walk from
Fudomae Station on the
Distance (on foot) Tokyu Meguro Line

Ownership

Rentable units

47 units

46 units

Acquisition date September 29, 2020

Acquisition date September 29, 2020

Acquisition price ¥3,674 million

Acquisition price ¥1,622 million

Property Acquired in 22nd Fiscal Period
150 COMFORIA OMIYA
Original
Route

54 COMFORIA SHIN-OSAKA Other major cities

Tokyo metropolitan area

Address

3-36-1 Nakacho, Omiya-ku,
Saitama-shi, Saitama

Nearest station/ 7-minute walk from Omiya
Station on the JR
Distance (on foot) Keihin-Tohoku Line, etc.

Ownership

Asset
replacement

Address

1-21-24 Higashinakajima,
Higashiyodogawa-ku, Osaka-shi, Osaka

Sale price¥3,600 million

Appraisal value ¥3,030 million

OwnershipCompletion date February 2010
Rentable units

103 units

Acquisition date March 18, 2021

Asset replacement

Property Sold in 22nd Fiscal Period

Gain on sale(note)¥1,383 million

Rentable units

133 units

Completion date October 2006

Acquisition price ¥4,420 million(Note) Difference between sale price and book value (as of the end of
21st FP) is indicated.

‌Investment Ratio by Area

‌Properties Sold in 21st Fiscal Period
46 COMFORIA ICHIKAWAMYODEN
Address
Sale price

68 COMFORIA NISHIMAGOME

1-9-10 Shioyaki, Ichikawa-shi, Chiba

Address

2-35-8 Nishimagome, Ota-ku, Tokyo¥805 million

Sale price¥1,261 million

Appraisal value ¥766 million

Appraisal value ¥1,110 million

Gain on sale¥208 million

Gain on sale¥293 million

Rentable units

48 units

Rentable units

52 units

Completion date April 2007

4

Tokyo metropolitan area

Completion date August 2005

End of 20th FP

End of 21st FP

After asset replacement in
22nd FP

Central Tokyo

39. 9 %

38. 9 %

37. 5 %

Sub-central Tokyo(March 2021)

Sub-central Tokyo

50. 5 %

51. 9 %

52. 9 %

Tokyo metropolitan area

3. 9 %

3. 6 %

5. 2 %

Other major cities

5. 7 %

5. 6 %

4. 4 %

Ratio of Tokyo 23 wards(Rental Residence)

91. 8 %

92. 2 %

91. 7 %

5

Selective Investment with Portfolio Quality in Mind‌
Improving
the Portfolio Stability and Increasing Internal Reserves throughStrategic Asset Replacement

Property Development by Tokyu Land Corporation (As of March 12, 2021)

Through strategic asset replacement, the Investment Corporation is enhancing stability of its portfolio while striving to
improve the quality.
Part of the capital gains of the property sales resulting from the asset replacement will be internally reserved as reserve
for reduction entry for a stable cash distribution level, and is planned to be allocated to temporary increase in expenses(large-scale repair works, etc.) expected to occur in the future.

Change in Portfolio due to Public Offering + Asset Replacement
Acquisitions in
16th FP(Ended Jul. 2018)
and after

111

19

14

7

137

26

188, 536

40, 986

28, 506

5, 878252, 150

63, 613

90. 4%

91. 1%

90. 5%

21. 1%

92. 2%

1. 8%

4. 9 min.

4. 9 min.

5. 6 min.

5. 9 min.

4. 9 min.

–Itabashi-ku(no specific plans for acquisition by the Investment Corporation)

Differential(2) - (1)Nakano-ku

Arakawa-ku

Bunkyo-ku

Suginami-ku

Shibuya-ku

ChuokuMeguro-ku

Expansion of Internal Reserve

Taito Sumida-ku-kuAcquisitions
without PO

Minato-ku

B

Kanagawa
Prefecture

AccumulatedInternal Reserve

1,507million¥

COMFORIACOMFORIACOMFORIA
TOYOCHOICHIKAWAMYODENNISHIMAGOME
Koto-ku, Tokyo
Ichikawa-shi, Chiba
Ota-ku, Tokyo
140 units
48 units
52 units
Acquired in Sep. 2020 Disposed in Dec. 2020 Disposed in Dec. 2020

B

Tokyo 23 wards

947million

Tokyo metropolitan area¥

Other major cities
Total(Completed)

LTV Control with Stability of Financial Base in Mind

Trends in asset size and total LTV

164.4

51.6%

168.0



Feb. 2018
5th PO

50.5%

50.8%

51.0%

187.4

188.5

202.1

Feb. 2019
6th PO

Feb. 2020
7th PO

51.8%

206.0

50.1%

50.0%

50.4%

225.9

226.6

245.9



Feb. 2021
8th PO

51.4%
50.1%
252.1

261.5

           

                                

6

Number of properties

Number of units

16
1
5
22
9

1,864
113
830
2,807
973

‌Diversified Property Acquisition Channels Centering on Sponsor Group

Promote external growth with total LTV of around 50% in mind while focusing on stability of financial base.

50.6%

Ota-kuKansai areaA

Feb. 2017
4th PO




Unitholder Return

A



Dispositions

Total Capital
Gains Resulting
from Asset
Replacement

COMFORIAHIGASHISHINJUKUSTATION FRONT
Shinjuku-ku, Tokyo
104 units
Acquired in Feb. 2020


Koto-ku

Shinagawa-ku
PO Properties

Chiyoda-ku

Setagaya-ku

Representative Acquisition/
Disposition Cases● Rental residence ● Operational rental residence

Kita-kuToshima-ku

5th - 7th
Public Offering

Asset Size(millions of yen)
Tokyo 23 Wards Ratio(Rental Residence)
Avg. Walking Distance(Rental Residence)

Properties developed by TLCTokyo 23 wards

Nerima-ku

Dispositions in
21st FP end
16th FP(Ended Jan. 2021)(Ended Jul. 2018)(2)
and after

15th FP end(Ended Jan. 2018)(1)
No. of Properties

There is a pipeline of 22 properties containing 2, 807 units located mainly in Tokyo 23 wards.

The Investment Corporation promotes steady growth of asset size centered on the acquisition of assets from sponsor
group, in particular Tokyu Land Corporation. In addition, we strive to reinforce our property acquisition channels throughthe Asset Management Company’s original information routes.
21st Fiscal Period

22nd Fiscal Period (up to March 31, 2021)

Acquisition fromsponsor

Acquisition fromsponsor

Acquisition fromothers4 properties

2 properties

2 properties¥7,755 million¥4,459 million¥7,325 million 




27.9

50.2




72.1




21.9

7

Internal Growth Strategy
With the portfolio strategy focused on Tokyo 23 wards, rent increases have been continuously realized recently, while
maintaining generally stable occupancy rates.

‌Portfolio Focusing on "Tokyo 23 Wards" and "Near Stations"‌Rent Change Upon Tenant Turnover
The rate of rent change upon tenant turnover for the 21st Fiscal Period has continuously increased albeit on a slowing
trend.
 ­   With "in Tokyo 23 wards" and "near stations" as the focus, the Investment Corporation continues to acquire rental
residences developed by sponsors and to use its Asset Management Company's original property acquisition channels
to selectively invest in high-quality properties.
Asset Size (Acquisition price basis)

（）




137properties / ¥ 252.1billion            
  

1.0%





4.7



 

92.2%



 40.4

4.9

34.7

60.6



（）


 

20th FP

Mar.

90.1%

Apr.

Jun.

May

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

92.7%

 





    

Jan.
2021

 

­
0.0%

27.6%

 
98.5%

72.4%

 

20.4%

18.6%

79.6%

81.4%





7.3%


59.3%



21st FP

4.1%
5.8%



    

4.8%
2.5%

 

    

30.2%

    
1.5%

0.0%

0.0%

0.0%



 



    

            

Total portfolio

（）


96.7%

97.0%

97.1%

Rent Trends
95.9%

95.2%

94.9%

95.0%

94.6%

94.5%

94.8%

95.2%

95.6%

95.9%

Increase in rents in the overall portfolio is continuing due to rent increase on tenant turnover, etc.
        





       

13,181

13,163

13,175    13,192

13,205    

13,226

13,230     



8

  （）62.5% 
13.8%



The average occupancy rate for the 21st Fiscal Period was generally stable at 95. 1%.



­
27.0%‌Occupancy Rates



The percentage of cases achieving higher contracted rents remains higher than the cases of lower contracted rents
although the rate of rent increase upon tenant replacement was on a slowing trend in the 21st Fiscal Period.

  



‌Impact of Rent Increases on Tenant Turnover/Lease Renewals

51.9





3.0%

1.5%

                                           ­ 

Feb.



4.6%

  

5.8

2.0

Jan.
2020

3.7%




 
    

3.4%

6.8%

5.7%

8.3%

7.9%

     

9Feature

Q2 Future Outlook

Post COVID-19
Rental Residence Market Forecast

Further deterioration is limited although uncertainty exits.

Recently, news articles such as "population flowing out from central Tokyo" and "accelerating suburbanization" appear
in the media. The population of the Tokyo 23 wards is in fact declining since July 2020, and it is believed that this is dueto the change in human activities caused by the COVID-19 pandemic. Under these circumstances, how is the rental
residence market changing? We interviewed people in charge of operation of the Investment Corporation’s properties
about the current operation status, future outlook and strategy.

■ Ryota Matsuura■ Ryosuke Yajima

TLC REIT Management Inc.
Assistant Manager, Asset Management Department,
Comforia Management Division
Engaged in housing business throughout his career
since joining Tokyu Land Corporation. Currently incharge of planning tenant solicitation measures.
<Hobby: Watching anime>

Tokyu Housing Lease Corporation
Manager, Comforia Group, Operation Department,
PM Business Division
Veteran property manager operating Comforia
properties for more than ten years.
Also has experience in asset management for theInvestment Corporation.
<Hobby: Watching baseball>

Q1 Current Operation It is said that the rental residence market in the Tokyo 23 wards has been
Statusrelatively weakening. Could you explain the situation more specifically?

Occupancy status in 2020 showed moves different from before due to the issuance of thedeclaration of a state of emergency, etc.
Matsuura: In 2020, we saw a decrease in occupancy
rate as tenant solicitation activities were restricted alongwith limited personal mobility due to the issuance ofthe declaration of a state of emergency, etc. from April
to June. Even after the declaration was lifted, moves toterminate contracts were seen with the progress in workfrom home in the background because of the COVID-19
pandemic. As a result, as shown in the graph below, theoccupancy status in 2020 showed moves different fromordinary status.
One of the characteristics due to the pandemic is thatthe number of terminations for "the space being too
small" is on a slight increasing trend compared to thepast. This trend is often seen among double-income

Then, what kind of rental residence market do you think is expected in the future?

households that cannot secure a workspace in theirrooms.
Yajima: It is true that some IT companies are shifting toworking from home company-wide, and the cases ofrelocating in order to secure a workspace can be said
to be a characteristic due to the pandemic. In addition,companies whose profit environment has deteriorated
due to COVID-19 are showing activities to review theircompany housing system, and it seems to me that thedemand from companies is relatively weakening. In fact,
I think that this trend is apparent for rental residences
along the railway lines, where the ratio of aviationrelated workers is high.

Yajima: I have concerns about the trend of corporate
demand. In addition to the decline in demand forcompany housing being expected due to a decreasein new hires, etc., I hear that some companies are
considering the expansion of the interval between
redeployments of workers or changing of the timingof redeployment of workers due to the pandemic, so I
believe it is necessary to keep an eye on this trend.
On the other hand, the new supply of rental housing
is expected to remain limited at about the same level
as the previous year, so the possibility of a sudden
deterioration in supply and demand balance might beunlikely to occur.
Matsuura: I believe that the progress of working fromhome due to COVID-19 is being established to someextent as nearly a year passes. In addition, the impact
of suburbanization is limited, and there is a tendency
for people to prefer areas which have a certain level of
excellent access to central Tokyo. Even for the properties
owned by the Investment Corporation, there is notmuch tendency for tenants to flow out from central
Tokyo or sub-central Tokyo to the Tokyo metropolitan

Q3 Future Strategy

area, and the progress of working from home seems
not to be having an impact as significant as peoplechanging the area they live in. In addition, consideringthat we will return to normal economic activities in
the future, I believe that the demand to rent housing
in the Tokyo 23 wards, which is highly convenient, willcontinue to be strong.

Please tell us what kind of strategy you have in aiming for stable operations in the future.

Secure stable profitability through flexible leasing strategies, etc., rather than increasing
rents.
Matsuura: Before the pandemic, we achieved continuous
rent increase against the backdrop of a very favorable
supply and demand environment, but in the future
the supply and demand environment is expected
to slightly weaken, so securing stable profitability is
believed to be important. Based on these points, since
October last year, we have taken measures to maintainstable occupancy by flexibly setting leasing conditions
according to the characteristics of properties suchas area and floor plan. We will continue to consider
optimal measures from the perspective of maximizing
unitholders' value.

Yajima: I believe that Comforia's high quality is thereason for it being selected by tenants. In order for it
to be selected continuously, we always try to provide
products and services that have tenant needs inmind. The figures below show a case that achieved
rent growth by implementing work to create a newworkspace when the tenant moved out, based on theneeds of tenants amidst the pandemic. Going forward,
we would like to achieve stable operations continuously
through launching measures that can appeal to tenants
while taking market trends into consideration.

■ Occupancy Rate Comparison of Total Portfolio

（%）
100

95

90

Feb. 2020 ~ Jan. 2021

97.0%

97.1%

96.4%

96.6%

95.9%
95.6%

95.2%

95.6%

95.9%

95.2%

94.9%

95.0%

95.7%
94.6%

Average occupancy since listing

96.0%

96.0%

94.5%

94.8%

96.1%

96.0%

96.2%

95.2%

95.6%

95.9%

BeforeAfter

2020
Feb.

Mar.

Apr.

May



 

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

(Note) “Average occupancy since listing” is a simple average of the occupancy rates at the end of each month since the listing of the Investment Corporation (Feb. 2013).

10■ Value Enhancement Work (work to change floor plan) COMFORIA MINAMIAOYAMA

2021
Jan.

    

11

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

‌Interest-Bearing Debt
End of 19th Fiscal Period

End of 20th Fiscal Period(ended January 31, 2020)

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

End of 21st Fiscal Period(ended July 31, 2020)

50.0%
92.9%
93.6%
4.2 years
0.60%(ended January 31, 2021)

50.4%
82.6%
90.4%
4.0 years
0.58%

51.4%
81.4%
91.2%
4.2 years
0.58%(Note) Interest-bearing debt balance/total assets‌‌Diversification of Repayment Dates
The expected repayment of debts and investment corporation bonds as of January 31, 2021 are as follows:
Existing loans(Millions of yen)

15,000

Amount of credit limit in commitment line: ¥13.5 billion

3,000
10,0001,000

12,8005,000 10,545

0

1st ~ 8th unsecured bonds

Borrowings in the 21st period

1,000 1,000

7,800 6,560

9,400

6,520 5,860

9,270 9,650 8,500

7,050

9,250

2,000

1,350 3,000 3,700
2,200 3,395

6,800

1,500 5,500 1,500

1,500

22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 46th 47th 48th
FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

FP

‌Loan Balances
The Investment Corporation’s loan balances as of January 31, 2021 are as follows:

0.8%
0.8%
1.8%
2.5%
2.9%
3.1%

0.7%

7.7%

0.4%
0.4%
0.4%

27.0%

15.4%
17.9%

18.2%

LenderLoan balance(millions of yen)

■ MUFG Bank, Ltd.
■ Sumitomo Mitsui Trust Bank, Limited■ Mizuho Bank, Ltd.
■ Development Bank of Japan Inc.
■ Sumitomo Mitsui Banking Corporation■ Mizuho Trust & Banking Co., Ltd.
■ The Norinchukin Bank
■ The Bank of Fukuoka, Ltd.
■ Shinkin Central Bank
■ Kiraboshi Bank, Ltd.
■ Resona Bank, Ltd.
■ The 77 Bank, Ltd.
■ Daishi Hokuetsu Bank, Ltd■ Taiyo Life Insurance Company■ Nippon Life Insurance Company

34,92023,51523,08019,83010,005
3,985
3,785
3,285
2,285
1,000
1,000
960
500
500
500
129,150

Total‌‌Credit Rating (As of January 31, 2021)

12

Rating agency

Rating category

RatingOutlookJapan Credit Rating Agency, Ltd.

Long-term issuer rating

AA-

StableSustainability Initiatives‌Continuously Adopted in MSCI Japan ESG Select Leaders Index
The Index is designed to target companies with high Environment,
Social and Governance performance selected from the MSCI Japan
Investable Market Index (IMI) Top 700 Index.

E

Environment

Relevant SDG Goals

Selected by the Government Pension Investment Fund (GPIF)
as one of their indices for their passive investment.

and Clean
7 Affordable
EnergyResponsible

12 Consumption
and Production

Establishment of the Environment Management System (EMS)

Environmental Certification

The Asset Management Company has established its own
environment management system (EMS) in order to set
environmental target, perceive its results, control budgets
and make improvements concerning energy consumption,
CO2 emissions, water consumption and waste generation. We
will promote the reduction of the environmental load with
implementing of the PDCA cycle.

■ Participation in GRESB Real Estate Assessment
The Investment Corporation has participated in the GRESB Real Estate
Assessment since 2018.
	We will continue to promote sustainability
initiatives through the participation, andaim to further improve its rating in theassessment.

     ●     ●
● 
●Act 

Check 
PlanDo

●   ●     


●■	Switching to LED Lights in Common
Areas/Replacing Air Conditioners in
Exclusive Areas
	The Investment Corporation ismaking progress in reduction of
power consumption andenvironmental impact.

■ Open Space
Used as a walkway for neighboring residents and commuters.

Initiatives to Improve Tenant Satisfaction■ Conduct Tenant Satisfaction Survey
	Every year we carry out a questionnaire survey of the residents of the
Comforia series, on the residents’ satisfaction and requests. Based on
the opinions and requests of residents, we take action with the aim ofproviding better services.

GovernanceRelevant SDG Goals

Responsible

Strong16 andInstitutions

Change in Asset Management Fee System
Before change

Implementation of LED lighting

NewlyestablishedManagement feeⅠ
(fee linked to total assets)

Total assets at the end of previous fiscal period
× 0.3% (annual rate)

Current
Total assets at the end of previous fiscal period
× 0.2% (annual rate)

Management feeⅡ
(fee linked to profit)

Ordinary CF × 3. 0%

Ordinary CF × 5.4%

Management fee Ⅲ(acquisition and disposition fee)

Property acquisition/disposition price× 1. 0%( 0. 5% in the case of transactions
with related parties)

Management feeⅤ
(incentive)–

Property acquisition/disposition price× 1. 0%( 0. 5% in the case of transactions withrelated parties (excluding warehousing))
Ordinary CF × growth rate of ordinary CF per unit × 10%
However, no fee will occur when the value is negative

COMFORIA HIGASHISHINJUKUSTATION FRONTAligning Interests Between Unitholders and the Sponsor
In the public offering held in Feb. 2021,
the sponsor acquired 2,137 units, which
was 10% of the number of issuing units.

▼▼▼

Even in terms of capital relationship,
the Investment Corporation aims to
make a strong relationship with thesponsor and to achieve the improvementof mutual interests by aligning theinterests of the unitholders to that of thesponsor.

▼Sponsor’s investment ratio▼

Approval by compliance officer
In case of related-party transactions and other necessary cases▼▼

Investment Committee deliberation and resolution (Note 2)▼

Approval by each Chief Division Officer

Initiatives in Improving Waste Management

In case of related-party transactions and other necessary cases▼

Prior approval by the Investment
Corporation’s board of directors (Note 1)

The Investment Corporation reduces environmental impact at
properties through separate disposal of waste in cooperation
with the management company. It is also making every effort
to improve resident satisfaction by taking measures to reduce
odor at garbage collection points.

▼

Report to the Board of Directors

COMFORIA KAMATA

Strengthening incentives
for growth of AUM anddistributions

Decision-Making Flow in Acquisition of Assets

Compliance Committee deliberation and resolution (Note 1)

The Investment Corporation utilizes renewable energy fromsolar power (introduced in COMFORIA NAKAOCHIAI).

Enhancing the linkage between
the interests of unitholders andasset management fees throughrebalancing

The asset management company of the Investment Corporation has built agovernance framework that gives priority to compliance and is pouring its efforts inprevention of conflict of interest, risk management and legal compliance.
Proposal by responsible department

COMFORIA SHIBUYA WEST

Peace, Justice

12 Consumption
and Production

Introduce incentives for further improvement of unitholders' value and enhance linkage with the interests of unitholders.

Initiatives for Renewable Energy

14■ Security of the Local Community	There is a police box
contributing to the security of
the local community.

Status/Initiatives

COMFORIA SHINJUKUEASTSIDE TOWERCOMFORIA TOYOCHO

Responsible

12 Consumption
and Production■ Disaster Provision Warehouse andManhole Toilets
	Established a disaster provision
warehouse and manhole toilets
for neighboring residents andworkers in preparation for adisaster.

■ Installation of Donation-Type Vending
Machines	We have installed disaster response
vending machines at some of theproperties owned by the Investment
Corporation. These machines can provide
drinks to victims of large-scale disasters.

Properties with exceptionally highenvironmental & social awareness■ Green-lease Provisions
	From the perspective of environmental friendliness, to reduce
environmental load in collaboration with residents, we insert
green-lease provisions in lease agreements, which are related toenergy use and appropriate disposal of waste.
■ Green Procurement Standards
The Investment Corporation will promote the reduction of theenvironmental load in cooperation with suppliers, etc. by establishing
the Green Procurement Standards which are related to the
procurement of environment-friendly materials, etc.

Sustainable

and11 Cities
Communities

Status/Initiatives

G

Properties with the best classenvironmental &social awarenessInitiatives for Improving Energy Efficiency
In conformity to the Act on the Rational Use of Energy(Energy Conservation Law), we set an annual average cutting
target of 1% in energy use intensity for the entire portfolio
and also for each property in the medium- to long-term.

Relevant SDG Goals■ DBJ Green Building Certification●●

SocialInitiatives in Local Communities

Status/Initiatives●    

S

Report to Investment
Corporation▼

9.0%(as of March 12, 2021)(Note 1) Deliberation and resolution by the Compliance Committee as well as prior approval by the Investment Corporation’s board of directors will be required for acquiring assets,etc. in case of related-party transactions and other necessary cases.
(Note 2) If the candidate acquisition asset is a healthcare facility, advisory from external experts related to healthcare facilities shall be sought. Furthermore, discussions shall be held
upon receiving a report on the content of reports, etc. created by external experts related to healthcare facilities and, if necessary, the Investment Committee shall be attended by the concerned external experts as observers and their opinions shall be heard.

15

Portfolio Map (As of March 31, 2021)
The Investment Corporation manages assets with superb accessibility
located mainly in the Tokyo 23 wards.

Saitama

47

Central Tokyo 48 properties
1 COMFORIA NIHONBASHI NINGYOCHO

31 COMFORIA SHIBAURA BOWHOUSE

71 COMFORIA SASAZUKA

96 COMFORIA AZABU EAST

2 COMFORIA WASEDA

48 COMFORIA SHIROKANETAKANAWA

72 COMFORIA SHINJUKUGYOENⅡ

98 COMFORIA SHINJUKU EASTSIDE TOWER

3 COMFORIA SHIMOOCHIAI

49 COMFORIA NIHONBASHI NINGYOCHO EAST

73 COMFORIA ICHIGAYAYANAGICHO 103 COMFORIA ICHIGAYAYAKUOJI

4 COMFORIA HIGASHINAKANO

50 COMFORIA ATAGO

74 COMFORIA KAGURAZAKA

104 COMFORIA AKIHABARA EAST

14 COMFORIA GINZA EAST

56 COMFORIA KUDAN

80 COMFORIA NIBANCHO

105 COMFORIA MITA TROIS

15 COMFORIA AZABUDAI

57 COMFORIA NIHONBASHI NINGYOCHO NORTH

81 COMFORIA NISHISHINJUKU

113 COMFORIA SHIBAURA

16 COMFORIA SHIBAKOEN

58 COMFORIA SHINKAWA

83 COMFORIA KANDAJINBOCHO

120 COMFORIA SHINJUKU

17 COMFORIA NISHIAZABU

59 COMFORIA AKASAKA

84 COMFORIA NIHONBASHI

126 COMFORIA HIGASHINIHONBASHI

18 COMFORIA MINAMIAOYAMA

60 COMFORIA MITA EAST

85 COMFORIA TAMACHI

133 COMFORIA GINZA EAST NIBANKAN

20 COMFORIA NISHIWASEDA

61 COMFORIA SHIBAURA CANAL

86 COMFORIA AZABUJUBAN

135 COMFORIA HIGASHISHINJUKU STATION FRONT

26 COMFORIA HARAJYUKU

69 COMFORIA KITASANDO

92 COMFORIA SHINJUKUGYOENⅠ

138 COMFORIA NAKAOCHIAI

30 COMFORIA MITA NORTH

70 COMFORIA YOYOGIUEHARA

93 COMFORIA KAGURAZAKA DEUX

139 COMFORIA WASEDA DEUX

118
142
Itabashi-ku

Kichijoji

Tokyo

5 COMFORIA BUNKYOKASUGA

39 COMFORIA GAKUGEIDAIGAKU

40 COMFORIA HIGASHINAKANO DEUX 90 COMFORIA MEGUROYAKUMO

89 COMFORIA HIGASHISHINAGAWA 129 COMFORIA OMORIMACHI

7 COMFORIA NISHIOI

41 COMFORIA HIGASHIIKEBUKURO WEST 91 COMFORIA YOGA

131 CAMPUS VILLAGE SHIINAMACHI

8 COMFORIA NAKANO

43 COMFORIA RYOGOKU DEUX

134 COMFORIA TAKINOGAWA

94 COMFORIA ITABASHINAKAJUKU130 COMFORIA KAMIIKEDAI

9 COMFORIA SHIMOKITAZAWA

44 COMFORIA OMORI DEUX

97 COMFORIA SHINAGAWA EAST

137 COMFORIA KIBASHINSUIKOEN

10 COMFORIA NISHIKAMATA

45 COMFORIA MACHIYA

99 COMFORIA OJIMA

140 COMFORIA NISHIMAGOME HILLSIDE

11 COMFORIA OYAMA

51 COMFORIA ASAKUSABASHI

100 COMFORIA OMORI TROIS

141 COMFORIA IKEBUKURO DEUX

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 52 COMFORIA RYOGOKU SOUTH

106 COMFORIA BUNKYOHAKUSAN

142 COMFORIA NARIMASU

13 COMFORIA KOMAZAWA

53 COMFORIA TOYOSU

107 COMFORIA KAMATA

143 COMFORIA SHIN-OKACHIMACHI

21 COMFORIA KOISHIKAWA

55 COMFORIA SUMIDA-TACHIBANA 108 COLLEGE COURT HACHIMANYAMA 144 COMFORIA MORISHITA WEST

22 COMFORIA SENGOKU

62 COMFORIA UENOHIROKOJI

23 COMFORIA DAIKANYAMAAOBADAI 63 COMFORIA KASUGATOMISAKA

114 COMFORIA UENOIRIYA

145 COMFORIA TOYOCHO

115 COMFORIA IKEJIRI

146 COMFORIA FUDOMAE

27 COMFORIA IKEBUKURO

64 COMFORIA HONKOMAGOME

116 COMFORIA SETAGAYAKAMIUMA 147 COMFORIA TAITONEGISHI

29 COMFORIA RYOGOKUISHIWARA

65 COMFORIA MORISHITA

118 COMFORIA AKABANEIWABUCHI

148 COMFORIA MONZENNAKACHO SOUTH

119 COMFORIA RYOGOKU TROIS

149 COMFORIA MAGOME

32 COMFORIA ASAKUSABASHI DEUX 66 COMFORIA KIBAKOEN
33 COMFORIA OSHIAGE

67 COMFORIA MEGURO CHOJAMARU 121 COLLEGE SQUARE HACHIMANYAMA

34 COMFORIA HONJOAZUMABASHI

75 COMFORIA HIGASHIIKEBUKURO EAST 123 COMFORIA KINSHICHO DEUX

35 COMFORIA KIYOSUMISHIRAKAWA TROIS 76 COMFORIA HIGASHIIKEBUKURO
82 COMFORIA KOMABA

125 COMFORIA SHIBUYA WEST

37 COMFORIA HIMONYA

87 COMFORIA KINSHICHO

127 COMFORIA ASAKUSAKOMAGATA

38 COMFORIA MISYUKU

88 COMFORIA MINAMISUNAMACHI 128 COMFORIA OMORIKASHIMA

Katsushika-ku

Arakawa-ku

134

45
Toshima 27
Chiba
131 -ku
64
41
IkebukuroTaito
75 22 106
141 76
138
Sumida-ku
Nakano-ku
147 114 -ku
Bunkyo-ku
3
Ueno
21
6
20
55
8
139
5
4
62 143 127
40
135
2
63
34 33
32
29
Shinjuku 74
Edogawa-ku
51 119 87
Nishifunabashi
98 -ku 73
93 56 83 57104 43
81
124
84
120 72 103
52
Suginami-ku
123
Shinjuku
112
69 92
80 Chiyoda-ku 49 126 14465 35
99
1
Tokyo
Shibuya-ku
12
88
121
Minato
36
145
108
14 58
71
137
26 18 -ku 59
133
9
70
15 50
148 66 Koto-ku
Chuo-ku
Shibuya
125
17 96
16
53
30
82
60
Setagaya-ku
86
115 23
105
61
48
38
113
116
67
85 31
13
91
39
Acquired in the 21st Fiscal Period
Shinagawa
146
37
COMFORIACOMFORIA
97
143 SHIN-OKACHIMACHI 144 MORISHITA WEST
Meguro-ku
89
Shinagawa-ku
90
7
130

149
140

128
44

Ota-ku

132

100

129

10

107

95 101

124 COMFORIA KAMEIDO SOUTH

36 COMFORIA MONZENNAKACHO

Kita-ku

94
11

Nerima-ku

Sub-central Tokyo 78 properties

6 COMFORIA ASAKUSAMATSUGAYA

Adachi-ku

AkabaneCOMFORIA

122

145 TOYOCHOCOMFORIA

146 FUDOMAE

Kanagawa

Total

Tokyo metropolitan area 6 properties
47 COMFORIA YATSUKA

122 GRANCREER CENTER-MINAMI

77 COMFORIA SHINKOYASU

132 COMFORIA TAMA-PLAZA

112 COMFORIA GYOTOKU

150 COMFORIA OMIYA

140

properties

Other major cities 8 properties
95 COMFORIA KITASANJO

Acquired in the 22nd Fiscal Period

77

150

COMFORIA
147 TAITONEGISHICOMFORIA

148 MONZENNAKACHO SOUTH

COMFORIA

149 MAGOMECOMFORIA

150 OMIYA

Yokohama

110 COMFORIA KYOMACHIBORI

101 COMFORIA SAPPORO SHOKUBUTSUEN 111 COMFORIA AWAZA

16

102 COMFORIA OGIMACHI

117 COMFORIA KITAHAMA

109 COMFORIA SHINSAIBASHI EAST

136 COMFORIA ESAKAHIROSHIBACHO

102 109 110 111 117 136

Central Tokyo

Tokyo metropolitan area

Sub-central Tokyo

Other major cities

17Basic Policies

Overview of the Investment Corporation and Asset Management Company

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

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

Overview of the Investment Corporation (As of January 31, 2021)
Name of the investment corporation Comforia Residential REIT, Inc
Representative

Takehiro Izawa, Executive Director

Address

21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo 150-0043, Japan

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

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

June 30, 2010

Implementation of registration by the prime minister under Article 187 of the Act on Investment Trusts and Investment
Corporations (registration number: Director of Kanto Finance Bureau No. 71)

Structure
Sponsor

The Investment Corporation

TOKYU LAND CORPORATION

2

1

Comforia Residential REIT, Inc

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

TOKYU LAND CORPORATION

3

General Administration (accounting, etc.)
Reiwakaikeisha Tax Corporation

Unitholders’ Meeting

6

COMFORIA knows
how residents feel.

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

5

TLC REIT Management Inc.

Sponsorsupportagreement

January 31 and July 31 of each year

June 8, 2010

Asset Management Company

COMFORIA knows
where peace of mind
comes from.

Fiscal period-end

History

Four Advantages COMFORIA Offers

COMFORIA knows
what high quality
feels like.

TLC REIT Management, Inc.
Tel: +81-3-6455-3388

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

For a Superior Level of Living Comfort

COMFORIA knows
how valuable time is.

Inquiries

General Administration (corporation bonds)

Supporting Companies

Board of Directors

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

Executive Director: Takehiro Izawa
Supervisory Director: Koji Yamamoto
Supervisory Director: Masamichi Ohshima

4

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

agreement, Transfer agency agreement

AuditorErnst & Young ShinNihon LLC

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

Overview of the Asset Management Company (As of January 31, 2021)
Shareholder

Trade name

TLC REIT Management Inc.

Representative

Hiroyuki Tohmata, President & CEO

Address

21-1 Dogenzaka, 1-chome Shibuya-ku,
Tokyo 150-0043, Japan

Established

October 2009

Capital¥200 million

Registrations/
Licenses

TOKYU LAND CORPORATION 100%
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, grantedby the Governor of Tokyo (3) No. 91139

Overview of Organization
Rental residence management
Property information
Supportagreement

Supportagreement/
PM contract

Corporate Auditor
Board of Directors

Tokyu Housing Lease Corporation

Compliance Committee

Investment Committee
TOKYU LIVABLE, INC.

TLC REIT Management Inc.

Services for residents
Supportagreement
Supportagreement

18

Shareholders’ Meeting

EWEL, Inc.

TOKYU SPORTS OASIS, Inc.

Supportagreement

President & CEO

TOKYU COMMUNITY CORP.

Acquisition Priority Review Meeting
Internal Audit Dept.

Management of operational rental residences
Support agreement(condominiums
for students)
National Students Information Center Co., Ltd.
Support agreement(housing for theelderly)

TOKYU E-LIFE DESIGN Inc.

Compliance Dept.



Corporate
Planning
Dept.

Human
Resources
Dept.

Finance &Accounting
Dept.



Asset
Investment
Dept.

Environmental
Engineering
Dept.

Strategy
Dept.

Asset Mgt.
Dept.

 



Strategy
Dept.

Strategy
Dept.

Asset Mgt.
Dept.

Asset Mgt.
Dept.

19

II. Asset Management Report
II. Asset Management Report

Overview of Asset Management
1. Performance of the Investment Corporation

Asset Management Report for the 21st Fiscal Period(Semi-Annual Report)
From August 1, 2020 to January 31, 2021

Comforia Residential REIT, Inc
21-1 Dogenzaka 1-chome, Shibuya-ku,
Tokyo 150-0043, Japan

Fiscal period

17th
Fiscal Period

18th
Fiscal Period

19th
Fiscal Period

20thFiscal Period

21stFiscal PeriodBusiness period

FromAug. 1, 2018 toJan. 31, 2019

From
Feb. 1, 2019 toJul. 31, 2019

From
Aug. 1, 2019 toJan. 31, 2020

From
Feb. 1, 2020 toJul. 31, 2020

From
Aug. 1, 2020 toJan. 31, 2021

Operating revenue(millions of yen)

8,128

8,652

8,790

9,028

9,565

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

[7,869][8,484][8,579][9,028][9,064]

Operating expenses(millions of yen)

4,425

4,673

4,683

4,947

5,080

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

[3,687][3,928][3,862][4,092][4,176]

Operating profit(millions of yen)

3,702

3,978

4,106

4,081

4,484

Ordinary profit(millions of yen)

3,178

3,453

3,568

3,529

3,895

Profit(millions of yen)

3,172

3,448

3,562

3,523

3,889

Total assets(millions of yen)

223,829

246,498

246,861

268,935

275,495[Period-on-period change](%)

Net assets(millions of yen)

[0.1]

[8.9]

[2.4]

118,172

128,204

128,528[0.2][14.2]

[0.2]

[8.5]

[0.3]

99,814

114,045

114,045

123,947

123,947

Number of investment units issued(units)586,994

640,834

640,834

671,624

671,624

Net assets per unit

(yen)

175,964

184,023

184,403

190,886

191,369

Total distributions(millions of yen)

3,040

3,319

3,393

3,565

3,633

Distribution per unit

(yen)

5,180

5,180

5,295

5,309

5,410

[Earnings distribution per unit](yen)[5,180][5,180][5,295][5,309][5,410][Distribution in excess of earnings
per unit]

(yen)

[－]

[－]

[－]

[－]

[－]

Return on assets(Note 1)

(%)

1.4

1.5

1.4

1.4

1.4

Return on unitholders’ equity(Note 2)

(%)

3.1

3.1

3.0

2.9

3.0

Unitholders’ equity ratio(Note 3)

(%)

46.1

47.8

47.9

47.7

46.7

(%)

Unitholders’ capital

Asset Management Report
Financial Section
Balance Sheets
Statements of Income
Statements of Changes in Unitholders’ Equity
Statements of Cash Distributions
Statements of Cash Flows
Notes
Supplementary Schedules
Independent Auditor’s Report[10.1]
117,928(millions of yen)

[Period-on-period change]

II.
III.

[2.1]
103,289[Period-on-period change](%)

Interest-bearing debt

(millions of yen)[-0.9]

[1.7]

[0.0]

[-0.2][-1.0]

116,030

123,530

123,530

135,420

141,650

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

(%)

51.8

50.1

50.0

50.4

51.4

Payout ratio

(%)

95.8

96.2

95.2

101.1

93.4

Number of properties(properties)

117

126

126

135

137

Total leasable area

(m2)

336,786.72

358,677.21

357,279.84

377,108.20

381,721.10(Note 5)

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

(%)

96.4

97.0

96.7

95.0

95.9

(millions of yen)

1,223

1,288

1,296

1,341

1,374

(millions of yen)

279

509

417

310

137

(millions of yen)

5,843
6,012
6,277
6,262
5,405
Ordinary profit ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100
Profit ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100
Net assets at end of period ÷ Total assets at end of period × 100
Interest-bearing debt at end of period ÷ Total assets at end of period × 100
Total distributions ÷ Profit × 100
Payout ratio is rounded down to the first decimal place.
Income from real estate rental business+ Depreciation
The Investment Corporation applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (The Accounting Standards Board ofJapan Statement No. 28 issued on February 16, 2018) from the beginning of the 17th Fiscal Period. Furthermore, the application poses no impact on
the financial indicators.
(Note 6)

－ 1 －
20

21

2. Asset Management Status for the 21st Fiscal Period

3. Capital Increases(1) History of the Investment Corporation
Comforia Residential REIT, Inc (the “Investment Corporation”) was established on June 8, 2010 as an investment corporationthat invests mainly in residential properties in accordance with the “Act on Investment Trusts and Investment Corporations”
of Japan (Act No. 198 of 1951, as revised; hereinafter referred to as the “Investment Trusts Act”), with registration by thePrime Minister completed as of June 30, 2010 under Article 187 of the Investment Trusts Act (registration number: Director of
Kanto Finance Bureau No. 71). Investments by the Investment Corporation commenced in August 2010. The Investment
Corporation issued new investment units through a public offering on February 6, 2013 and was listed on the real estate
investment trust market of the Tokyo Stock Exchange, Inc. (securities code: 3282).
Managed assets of the Investment Corporation at the commencement of operations totaled 11 properties, acquired for a totalof ¥15,508 million. As a result of additional acquisition and sale of properties under the basic policy of asset management (tomanage assets with the aim of achieving stable earnings and ensuring the steady growth of our managed assets based on
medium- to long-term perspectives to maximize our unitholders’ value) stipulated in the Articles of Incorporation of theInvestment Corporation, the portfolio (the “Acquired Assets”) owned as of the end of the 21st Fiscal Period includes 137
properties, acquired for a total of ¥252,150 million.
(2) Investment performance(i) Investment environment
During the 21st Fiscal Period, the Japanese economy still remained in a harsh situation under the influence of the novel
coronavirus infection (COVID-19), but has started to show signs of a pickup. Under such circumstances, the residential
rental market saw the occupancy rate temporarily drift on a somewhat weak note, but the figure is showing a recovery
trend for the moment. In the real estate investment market, on the other hand, the level of transaction prices continues tostay at a high price range amid an ongoing low interest rate environment resulting from the fiscal policies of thegovernment and monetary policies of the Bank of Japan (BOJ).
(ii) Acquisition and sale of assets
During the 21st Fiscal Period, the Investment Corporation acquired COMFORIA TOYOCHO and three other properties
in September 2020, followed by the sale of COMFORIA ICHIKAWAMYODEN and another property in December 2020.
As a result, assets owned by the Investment Corporation as of the end of the 21st Fiscal Period totaled 137 properties witha total acquisition price of ¥252,150 million.
(iii) Operation management of assets owned by the Investment Corporation
The Investment Corporation consigns property management operations mainly to Tokyu Housing Lease Corporation,
which has an extensive track record in managing the Comforia series of properties. Under the Comforia series, theInvestment Corporation promotes unified management and strives to improve operational efficiency and shorten periodsof vacancy.
(3) Overview of funding
During the 21st Fiscal Period, the Investment Corporation borrowed funds (¥10,800 million) for the acquisition of COMFORIA
TOYOCHO and three other properties in September 2020 and to be appropriated for the repayment funds (¥2,800 million) for
borrowings made in March 2019. Subsequently, the Investment Corporation borrowed funds (¥5,500 million) in January 2021
to be appropriated for the repayment funds (¥5,500 million) for borrowings made in February 2014.
Consequently, as of the end of the 21st Fiscal Period (January 31, 2021), unitholders’ capital was ¥123,947 million, interestbearing debt was ¥141,650 million, the ratio of interest-bearing debt to total assets (LTV) was 51.4%, the average maturity ofinterest-bearing debt was 4.2 years, the ratio of long-term debt was 81.4%, and the fixed rate ratio was 91.2%. The Investment
Corporation also established a commitment line with a credit limit of ¥13.5 billion with Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited and MUFG Bank, Ltd. on September 25, 2020, in order to secure flexible and stable funding methods.
Moreover, the Investment Corporation executed a Line of Credit Loan Master Agreement (on an uncommitted basis) as ofFebruary 5, 2021, in case the need for funding arises to purchase assets for future investments or other purposes.
The Investment Corporation obtained the following rating as of the end of the 21st Fiscal Period.
Name of credit rating agency

RatingOutlookJapan Credit Rating Agency, Ltd. (JCR)

AA–

Stable(4) Overview of performance and distributions
As a result of investment during the 21st Fiscal Period, the Investment Corporation posted operating revenue of ¥9,565 million,
operating profit of ¥4,484 million, ordinary profit of ¥3,895 million, and profit of ¥3,889 million.
The Investment Corporation carries out distributions so that the Special Provisions for Taxation on Investment Corporations(Article 67-15 of the Act on Special Measures Concerning Taxation [Act No. 26 of 1957, as revised; hereinafter referred to as
the “Act on Special Measures Concerning Taxation”]) would be applied. For the 21st Fiscal Period, the Investment Corporation
retained part (¥256 million) of gain on sales by applying the Special Provisions on Taxation in the case of advance acquisitionof land and such in 2009 and 2010 (Article 66-2 of the Act on Special Measures Concerning Taxation). As a result, thedistribution per unit (DPU) was ¥5,410 for the period.

22－ 2 －

Date

Type

Number of investment units
issued (units)
ChangeBalanceUnitholders’ capital(millions of yen)
ChangeRemarks

Balance

June 8, 2010

Establishment throughprivate placement

200

200

100

100

(Note 1)

August 30, 2010

Capital increase throughprivate placement

7,800

8,000

3,900

4,000

(Note 2)

March 18, 2011

Capital increase throughprivate placement

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

Capital increase throughprivate placement

16,40048,6708,200

24,040(Note 4)

February 5, 2013

Capital increase throughpublic offering

18,691

67,361

9,935

33,975(Note 5)February 3, 2014

Capital increase throughpublic offering

31,90099,261

21,96055,936(Note 6)

February 26, 2014

Capital increase throughthird-party allotment

1,401

100,662964

56,900(Note 7)

August 1, 2014

Investment unit split

301,986

402,648–

56,900(Note 8)February 2, 2015

Capital increase throughpublic offering

70,000472,648

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

Capital increase throughthird-party allotment

1,156

473,804297

February 1, 2016

Capital increase throughpublic offering

37,800511,604

7,159

February 26, 2016

Capital increase throughthird-party allotment

1,900

513,504359

82,743 (Note 12)

February 1, 2017

Capital increase throughpublic offering

47,800561,304

11,251

93,995 (Note 13)

February 22, 2017

Capital increase throughthird-party allotment

2,390

563,694562

94,557 (Note 14)

February 1, 2018

Capital increase throughpublic offering

22,190585,884

5,006

99,563 (Note 15)

February 15, 2018

Capital increase throughthird-party allotment

1,110

586,994250

99,814 (Note 16)

February 1, 2019

Capital increase throughpublic offering

51,270638,264

13,551

113,366 (Note 17)

February 20, 2019

Capital increase throughthird-party allotment

2,570

640,834

679

114,045 (Note 18)

February 3, 2020

Capital increase throughpublic offering

29,330670,164

9,432

123,477(Note 19)

February 19, 2020

Capital increase throughthird-party allotment

1,460

671,624469

123,947(Note 20)

75,224 (Note 10)
82,383(Note 11)

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

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

－ 3 －

23

(Note 17) Issued investment units at an issue price of ¥273,146 (subscription price of ¥264,321) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 18) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥264,321 per investment unit.
(Note 19) Issued investment units at an issue price of ¥332,328 (subscription price of ¥321,591) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 20) Issued investment units with Mizuho Securities Co., Ltd. as alottee at an issue value of ¥321,591 per investment unit.

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

17th Fiscal Period

18th Fiscal Period

19th Fiscal Period

20th Fiscal Period

21st Fiscal Period

Closing month/year

Jan. 2019

Jul. 2019

Jan. 2020

Jul. 2020

Jan. 2021

Highest¥298,000¥332,500¥360,500¥355,500¥341,000

Lowest¥258,000¥280,100¥322,500¥198,100¥278,400

4. Performance of Distributions
The Investment Corporation pays out distributions per unit (DPUs) with the intent of including the maximum amount of earnings
distributions in deductible expenses by applying special measures concerning taxation (Article 67-15 of the Act on Special Measures
Concerning Taxation). For the 21st Fiscal Period, the Investment Corporation retained part of gain on sales by applying the Special
Provisions on Taxation in the case of advance acquisition of land and such in 2009 and 2010 (Article 66-2 of the Act on Special
Measures Concerning Taxation). Based on this policy, the Investment Corporation decided to distribute the entire amount of
unappropriated retained earnings after deducting ¥256 million, which is within the scope where the provisions of Article 67-15 of
the Act on Special Measures Concerning Taxation are applied, as well as within the limit of reserve for reduction entry stipulated
in Article 66-2 of the Act on Special Measures Concerning Taxation, as provision of reserve for reduction entry. As a result, theDPU for the 21st Fiscal Period was ¥5,410.
Fiscal period

17th Fiscal Period

18th Fiscal Period

19th Fiscal Period

20th Fiscal Period

21st Fiscal PeriodBusiness period

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

From Feb. 1, 2019
to Jul. 31, 2019

From Aug. 1, 2019
to Jan. 31, 2020

From Feb. 1, 2020
to Jul. 31, 2020

From Aug. 1, 2020
to Jan. 31, 2021

Unappropriated retained earnings
Retained earnings
Total distributions[Distribution per unit (DPU)]
Of which, total earnings
distributions[Earnings distribution per unit]¥3,172,709 thousand ¥3,448,336 thousand ¥3,562,889 thousand ¥3,523,532 thousand ¥3,889,688 thousand¥149,557 thousand¥149,456 thousand¥– thousand¥256,202 thousand[¥5,180][¥5,180][¥5,295][¥5,309][¥5,410]¥3,040,628 thousand ¥3,319,520 thousand ¥3,393,216 thousand ¥3,565,651 thousand ¥3,633,485 thousand[¥5,180][¥5,180][¥5,295][¥5,309][¥5,410]¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Return on unitholders’ capitalper unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

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

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

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

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

[¥–]

[¥–]

(Note) Figures above are rounded down to the nearest unit.

24¥172,904 thousand¥3,040,628 thousand ¥3,319,520 thousand ¥3,393,216 thousand ¥3,565,651 thousand ¥3,633,485 thousand－ 4 －

[¥–]

[¥–]

[¥–]

5. Future Investment Policy and Issues to Address
Founded on our basic policies of investment management, the Investment Corporation acquired 4 properties and sold 2 properties
during the 21st Fiscal Period, and has carried out investment and management based on the concept and expertise incorporated into
the urban rental residence Comforia series, which Tokyu Land Corporation (hereinafter referred to as “Tokyu Land”) has been
producing. Going forward, we aim to achieve medium- to long-term growth by continuing to carry out investment and management
based on our basic policies.
(1) External growth strategy
The Investment Corporation aims to acquire higher quality assets and expand the asset size, fully utilizing the support of the
Tokyu Fudosan Holdings Group, primarily the sponsor support of Tokyu Land, and original information from TLC REITManagement Inc., its asset management company (hereinafter referred to as the “Asset Management Company”).
Specifically, we will acquire properties developed by our sponsor, Tokyu Land, using the sponsor support agreement the AssetManagement Company entered into with Tokyu Land, and continually and steadily acquire quality residential properties thatare under stable operation. In addition, we intend to utilize real estate brokerage capabilities through the vast information
network of Tokyu Fudosan Holdings Group companies other than the sponsor, to acquire quality residential properties, achieve
stable operation and enhance profitability. Based on this perspective, the Asset Management Company has entered into a
support agreement with each of the seven support companies of the Tokyu Fudosan Holdings Group companies (Tokyu Livable,
Inc., Tokyu Community Corp., Tokyu Housing Lease Corporation, National Students Information Center Co., Ltd., Tokyu ELife Design Inc., Ewel Inc. and Tokyu SportsOasis, Inc.,) for managed assets of the Investment Corporation.
(2) Internal growth strategy
With the aim of maximizing portfolio value and cash flows from individual properties from a medium- to long-term perspective
and to make the most of the experience and comprehensive strength of the Tokyu Fudosan Holdings Group in property
management, we will consign property management operations mainly to Tokyu Fudosan Holdings Group companies, whichhave extensive experience in the management of J-REITs and the Comforia series. In addition, we will strive for efficientmanagement by examining the adequacy of building management specifications and costs.
Furthermore, we will actively utilize the expertise of Tokyu Fudosan Holdings Group in asset and fund management to achieve
higher-quality overall management of the Investment Corporation. Moreover, as we believe that endeavors on the issues ofenvironmental and social considerations and reinforced governance, among other matters, should contribute to the progress ofa sustainable society, we will aim to achieve growth over a medium to long term by conducting asset management based onsuch thinking.
In the 22nd Fiscal Period and onwards, we will continue to aim to maintain and improve occupancy rates by closely monitoring
the property management situation, as we did in the 21st Fiscal Period.
(3) Financial strategy
In consideration of addressing future interest rate risk and refinance risk, we will carry out funding activities by paying attention
to financial soundness and earnings stability. With regard to debt, we will efficiently combine short-term funding that focuseson agility with long-term stable funding. Furthermore, we will consider the issuance of new investment units in accordancewith financing needs for property acquisition and the financial situation of the Investment Corporation, while paying attention
to the market development and distribution level, with the upper limit of the ratio of interest-bearing debt to total assets (LTV)
at around 60%.

6. Significant Subsequent Events
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meetings held on January 5, 2021 and January 13, 2021 concerning
the issuances of new investment units as described below. Based on the resolution, capital contributions have been completed on
February 1, 2021 for the new investment units issued through public offering and on February 17, 2021 for the new investment
units offered by way of third-party allotment, respectively. As a result, unitholders’ capital increased to ¥129,791,732,102, with
the number of investment units issued and outstanding being 692,994 units.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of investment units issued:
20,360 units
Issue price:¥282,623 per unit
Total issue amount:¥5,754,204,280
Paid-in amount (issue value):¥273,492 per unit
Total paid-in amount (issue value):¥5,568,297,120
Payment date:February 1, 2021
Issuance of New Investment Units Offered by Way of Third-Party Allotment
Number of investment units offered:
1,010 units
Paid-in amount (issue value):¥273,492 per unit
Total paid-in amount (issue value):¥276,226,920
Payment date:February 17, 2021
Allottee:Mizuho Securities Co., Ltd.

－ 5 －

25

Overview of the Investment Corporation(Reference Information)
Property Acquisition and Sale
The Investment Corporation acquired the following properties:

1. Unitholders’ Capital

Property name

Type of specified
asset

Location

Acquisition price(thousands of yen)
(Note)

COMFORIA TAITONEGISHI

Property in trust

Taito-ku, Tokyo

COMFORIAMONZENNAKACHO SOUTH

Property in trust

COMFORIA MAGOME

Property in trust

Acquisition date

17th Fiscal
Period18th Fiscal
Period19th Fiscal
Period20th Fiscal
Period21st Fiscal
Period

3,031,000

Apartment building February 1, 2021

As ofJan. 31, 2019

As ofJul. 31, 2019

As ofJan. 31, 2020

As ofJul. 31, 2020

As ofJan. 31, 2021

Koto-ku, Tokyo

1,428,000

Apartment building February 1, 2021

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

8,000,000

8,000,000

8,000,000

8,000,000

Ota-ku, Tokyo

2,905,000

Apartment building February 1, 2021

Total number of investment
units issued(units)586,994

640,834

640,834

671,624

671,624

Unitholders’ capital(millions of yen)

99,814

114,045

114,045

123,947

123,947

Number of unitholders(people)

5,845

5,674

5,096

5,352

5,650

Total

Main usage

7,364,000(Note) The acquisition price does not include miscellaneous expenses required for the acquisition of each property, fixed
property tax, city planning tax, consumption tax and local consumption tax.
The Investment Corporation plans to acquire the following property:
Property name
COMFORIA OMIYA (Note 2)(Note 1)
(Note 2)Type of specified
asset

Location

Property in trust Saitama-shi, Saitama

Major unitholders as of January 31, 2021 are as follows.
Plannedacquisition price(thousands of yen)
(Note)

Main usage

4,420,300

Apartment building

Planned acquisition
date
March 18, 2021

The planned acquisition price does not include miscellaneous expenses required for the acquisition of the property, fixed
property tax, city planning tax, consumption tax and local consumption tax.
Although the current property name is “SAION OMIYA”, the Investment Corporation plans to change the name to“COMFORIA OMIYA” in about a month after acquiring it.

The Investment Corporation plans to sell the following property:
Property name
COMFORIA SHIN-OSAKA

Type of specified
asset

Location

Property in trust

Osaka-shi, Osaka

2. Matters concerning Investment Units

Planned sale price(thousands of yen)
(Note)

Main usage3,600,000

Apartment building

Number of investment units
owned (units)

Name

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

Custody Bank of Japan, Ltd. (trust account)

119,315

17.76

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

92,829

13.82

Tokyu Land Corporation

60,127

8.95

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

25,703

3.82

STICHTING PGGM DEPOSITARY PGGM LISTED REALESTATE PF FUND
(Standing proxy: Citibank, N.A., Tokyo Branch)

19,251

2.86

Custody Bank of Japan, Ltd. (securities trust investment
account)

19,102

2.84

Custody Bank of Japan, Ltd. (taxable trust money account)

13,523

2.01

Planned sale dateMizuho Securities Co., Ltd.

12,847

1.91

March 30, 2021

Mitsubishi UFJ Trust and Banking Corporation(Standing proxy: The Master Trust Bank of Japan, Ltd.)11,457

1.70

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

9,740

1.45

Total

383,89457.15(Note) The planned sale price does not include miscellaneous expenses (transaction brokerage fees, tax and public dues, etc.)
required for the sale of the property.

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

3. Matters concerning Directors, etc.
(1) Name of directors, etc.
The names of directors, etc. during the 21st Fiscal Period are as follows.
Position

Name of director, etc.

Main concurrent posts

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

Takehiro Izawa

Executive Director, Chief Division Officerof Comforia Management Division, TLC
REIT Management Inc.

–

Supervisory Director
Koji Yamamoto(Note 1)

Partner, WAKABA PARTNERS Law andAccounting Office

1,800Supervisory Director
Masamichi Ohshima(Note 1)

Kataoka & Kobayashi

1,800

–

17,190Executive Director(Note 1)

Independent Auditor

Ernst & Young
ShinNihon LLC(Note 2)

(Note 1) None of the Executive Director or Supervisory Directors own investment units in the Investment Corporation, either in their own name or insomeone else’s name. Furthermore, although Supervisory Directors may be officers of a corporation other than those mentioned above, neither
one has an interest in the Investment Corporation.
(Note 2) The amount includes the fees pertaining to the production of an “Auditor’s Comfort Letter to Lead Underwriting Firm” related to the issuanceof new investment units conducted in February 2021.

26－ 6 －

－ 7 －

27

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

4. Asset Management Company, Asset Custodian and General Administration
The asset management company, asset custodian and general administration as of January 31, 2021 are as follows.
Consignment segment

Name

Asset management company

TLC REIT Management Inc.

Asset custodian

Mitsubishi UFJ Trust and Banking Corporation

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

General administration (accounting service)Reiwakaikeisha Tax Corporation

General administration (administrative service)

Mitsubishi UFJ Trust and Banking Corporation

General administration (corporation bond service)

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

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

20th Fiscal Period(as of July 31, 2020)

Area

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

21st Fiscal Period(as of January 31, 2021)

Percentage of total
assets (%) (Note 2)

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

Percentage of total
assets (%) (Note 2)

Central Tokyo

1,127

0.4

1,125

Sub-central Tokyo

7,999

3.0

7,970

2.9

Central Tokyo

96,22535.8

95,71834.7

Properties Sub-central Tokyo
in trust Tokyo metropolitan area

115,79443.1

122,274

44.4

9,901

3.7

9,297

3.4

14,073

5.2

13,983

5.1

245,12291.1

250,370

90.9

Real
estateOther major cities
Subtotal

0.4

Deposits and other assets

23,812

8.9

25,125

9.1

Total assets

268,935

100.0

275,495

100.0(Note 1)
(Note 2)

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

2. Major Assets Owned
The overview of major assets owned by the Investment Corporation (top 10 properties in terms of period-end book value) is asfollows.
Rentable area(m2)

Rented area
(m2)

COMFORIA SHINJUKUEASTSIDE TOWER

12,721

48,267.61

45,541.23

94.4

16.6

Apartment
building

COMFORIA KAMATA

5,742

6,027.98

5,403.56

89.6

1.7

Apartment
building

COMFORIAHIGASHISHINJUKUSTATION FRONT

5,681

4,080.10

3,916.63

96.0

1.5

Apartment
building

COMFORIA SHIBUYA WEST

5,469

4,278.52

4,153.35

97.1

1.4

Apartment
building

COMFORIA KOMABA

5,111

5,342.38

5,184.07

97.0

1.5

Apartment
building

COMFORIA
MINAMISUNAMACHI

4,607

6,141.98

5,896.41

96.0

1.5

Apartment
building

COMFORIA AKIHABARA
EAST

4,437

4,582.07

4,339.30

94.7

1.4

Apartment
building

GRANCREER CENTERMINAMI

4,211

18,235.67

18,235.67

100.0

1.3

Homes forthe elderly

COMFORIA KITASANDO

4,143

4,962.65

4,674.64

94.2

1.4 Residence

COMFORIA
ITABASHINAKAJUKU

3,869

6,965.57

6,629.63

95.2

1.4

55,995

108,884.53

103,974.49

95.5

29.8

Total

28

－ 8 －

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

Book value(millions of yen)

Property name－ 9 －

Apartment
building

29

3. Statement of Properties Incorporated in the Portfolio
Area

The overview of assets under management of the Investment Corporation as of January 31, 2021 is as follows.
Area

Property name

Address

Property name

Address

COMFORIA WASEDA

147 Bentencho, Shinjuku-ku, Tokyo

COMFORIA SHIMOOCHIAI

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

COMFORIA HIGASHINAKANO

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

COMFORIA GINZA EAST

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

COMFORIA AZABUDAI

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

COMFORIA SHIBAKOEN

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

COMFORIA NISHIAZABU

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

COMFORIA MINAMIAOYAMA

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

COMFORIA NISHIWASEDA

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

COMFORIA HARAJYUKU

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

COMFORIA MITA NORTH

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

COMFORIA SHIBAURABOWHOUSE

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

COMFORIASHIROKANETAKANAWA

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

COMFORIA NIHONBASHININGYOCHO EAST

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

COMFORIA ATAGO

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

COMFORIA KUDAN

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

COMFORIA NIHONBASHININGYOCHO NORTH

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

COMFORIA SHINKAWA

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

COMFORIA AKASAKA

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

COMFORIA MITA EAST

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

COMFORIA SHIBAURA CANAL

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

COMFORIA KITASANDO

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

Beneficial
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Beneficial
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COMFORIA YOYOGIUEHARA

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

2,370

1,486

COMFORIA SASAZUKA

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

2,650

1,832

COMFORIA SHINJUKUGYOEN
II

1-13-3 Shinjuku, Shinjuku-ku, Tokyo

1,750

1,121

COMFORIA
ICHIGAYAYANAGICHO

18-2 Ichigaya Yanagicho, Shinjuku-ku, Tokyo

751

534

COMFORIA KAGURAZAKA

26-1 Iwatocho, Shinjuku-ku, Tokyo

4,600

2,903

COMFORIA NIBANCHO

4-8 Nibancho, Chiyoda-ku, Tokyo

893

544

COMFORIA NISHISHINJUKU

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

COMFORIA KANDAJINBOCHO

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

2,000

1,351
COMFORIA NIHONBASHI

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

1,100

715
COMFORIA TAMACHI

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

1,740

1,089
COMFORIA AZABUJUBAN

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

2,380

1,562
COMFORIA SHINJUKUGYOEN I 1-10-4 Shinjuku, Shinjuku-ku, Tokyo

5,620

3,513

1,160

846

3,750

2,505

1,880

1,283

2,770

2,029

1,070

829

1,710

1,295

1,440

1,050

2,370

Central Tokyo

Central Tokyo30

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

COMFORIA KAGURAZAKA
DEUX

7-3 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA AZABU EAST

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

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

COMFORIA ICHIGAYAYAKUOJI 74-23 Ichigayayakuojimachi, Shinjuku-ku, Tokyo
COMFORIA AKIHABARA EAST

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

COMFORIA MITA TROIS

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

COMFORIA SHIBAURA

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

COMFORIA SHINJUKU

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

1,759

COMFORIAHIGASHINIHONBASHI

3-6-4 Higashi-Nihonbashi, Chuo-ku, Tokyo

2,970

1,889

COMFORIA GINZA EASTNIBANKAN

2-1-8 Minato, Chuo-ku, Tokyo

4,250

3,026

COMFORIA HIGASHISHINJUKU 7-27-12 Shinjuku, Shinjuku-ku, Tokyo
STATION FRONT

2,000

1,529

COMFORIA NAKAOCHIAI

2-16-29 Nakaochiai, Shinjuku-ku, Tokyo

5,350

4,143

COMFORIA WASEDA DEUX

173 Bentencho, Shinjuku-ku, Tokyo

Subtotal－ 10 －Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)
(Note 1)

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

Ownership form－ 11 －Beneficial
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Beneficial
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Beneficial
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Real estate
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2,010

1,579

2,390

1,724

2,300

1,733

2,100

1,596

965

705

2,200

1,624

1,920

1,671

1,860

1,469

2,350

1,998

4,110

3,335

1,680

1,448

1,560

1,392

1,510

1,230

3,430

1,894

17,20012,721

997

974

5,300

4,437

979

924

1,190

1,125

2,370

2,261

1,340

1,255

2,570

2,523

5,700

5,681

1,510

1,574

1,110

1,113

127,225

96,84331

Area

Property name

Address

Ownership form

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

Property name

Address

Ownership form

(Note 1)

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

COMFORIAASAKUSAMATSUGAYA

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

COMFORIA NISHIOI

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

COMFORIA NAKANO

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

COMFORIA SHIMOKITAZAWA

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

COMFORIA NISHIKAMATA

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

COMFORIA OYAMA

4-4 Oyamacho, Itabashi-ku, Tokyo

Sub-central Tokyo

COMFORIA
3-2-13 Miyoshi, Koto-ku, Tokyo
KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWA

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

COMFORIA KOISHIKAWA

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

COMFORIA SENGOKU

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

COMFORIA
DAIKANYAMAAOBADAI

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

COMFORIA IKEBUKURO

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

COMFORIA
RYOGOKUISHIWARA

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

COMFORIA ASAKUSABASHI
DEUX

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

COMFORIA OSHIAGE

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

COMFORIA
HONJOAZUMABASHI

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

COMFORIA
KIYOSUMISHIRAKAWA TROIS

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

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

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

COMFORIA MISYUKU

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

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

32

COMFORIA HIGASHINAKANO
DEUX

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

COMFORIAHIGASHIIKEBUKURO WEST

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

COMFORIA RYOGOKU DEUX

1-2-10 Chitose, Sumida-ku, Tokyo－ 12 －

2,120

1,344

1,260

(Note 1)COMFORIA OMORI DEUX

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

807

COMFORIA MACHIYA

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

1,120

850

COMFORIA ASAKUSABASHI

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

1,160

880

COMFORIA RYOGOKU SOUTH

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

3,650

2,336

COMFORIA TOYOSU

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

2,210

1,409

COMFORIA SUMIDATACHIBANA

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

2,430

1,896

COMFORIA UENOHIROKOJI

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

1,040

666

COMFORIA
KASUGATOMISAKA

1-11-18 Kasuga, Bunkyo-ku, Tokyo

1,880

1,245

COMFORIA HONKOMAGOME

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

712

541

COMFORIA MORISHITA

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

1,860

1,237

COMFORIA KIBAKOEN

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

1,510

903

COMFORIA MEGUROCHOJAMARU

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

724

549

COMFORIAHIGASHIIKEBUKURO EAST

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

888

597

COMFORIAHIGASHIIKEBUKURO

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

1,130

819

COMFORIA KOMABA

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

922

672

COMFORIA KINSHICHO

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

1,050

721

COMFORIA
MINAMISUNAMACHI

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

1,140

813

COMFORIAHIGASHISHINAGAWA

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

3,430

2,461

COMFORIA MEGUROYAKUMO

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

1,680

1,152

COMFORIA YOGA

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

2,590

1,762

COMFORIA
ITABASHINAKAJUKU

62-2 Nakajuku, Itabashi-ku, Tokyo

1,740

1,096

COMFORIA SHINAGAWA EAST

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

1,220

784

COMFORIA OJIMACOMFORIA OMORI TROIS

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

5,580

3,647

COMFORIA BUNKYO
HAKUSAN

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

1,470

985

COMFORIA KAMATA

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

Sub-central Tokyo

COMFORIA BUNKYOKASUGA

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

－ 13 －Beneficial
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interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Real estate
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

1,530

1,191

982

612

3,660

2,499

1,700

1,161

3,980

2,893

1,040

913

1,370

1,060

3,930

2,781

1,860

1,331

1,860

1,432

1,230

898

2,580

1,936

2,660

1,617

1,550

1,113

5,990

5,111

1,320

1,024

4,980

4,607

1,900

1,516

970

839

1,150

1,072

4,560

3,869

1,660

1,434

2,320
1,030

2,202
902

1,480

1,424

7,040

5,742

33

Area

Property name

Address

Ownership form

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

Property name

Address

Ownership form

Sub-central Tokyo

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

COMFORIA UENOIRIYA

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

COMFORIA IKEJIRI

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

COMFORIA
SETAGAYAKAMIUMA

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

COMFORIA
AKABANEIWABUCHI

26-11 Iwabuchimachi, Kita-ku, Tokyo

COMFORIA RYOGOKU TROIS

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

COLLEGE SQUAREHACHIMANYAMA

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

COMFORIA KINSHICHO DEUX

2-10-20 Mori, Koto-ku, Tokyo

COMFORIA KAMEIDO SOUTH

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

COMFORIA SHIBUYA WEST

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

COMFORIAASAKUSAKOMAGATA

2-4-7 Komagata, Taito-ku, Tokyo

COMFORIA OMORIKASHIMA

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

COMFORIA OMORIMACHI

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

COMFORIA KAMIIKEDAI

5-7-22 Kamiikedai, Ota-ku, Tokyo

CAMPUS VILLAGESHIINAMACHI

3-2-19 Nagasaki, Toshima-ku, Tokyo

COMFORIA TAKINOGAWA

7-48-2 Takinogawa, Kita-ku, Tokyo

COMFORIA KIBASHINSUIKOEN 3-11-13 Kiba, Koto-ku, Tokyo
COMFORIA NISHIMAGOMEHILLSIDE

1-30-8 Nishimagome, Ota-ku, Tokyo

COMFORIA IKEBUKURO DEUX 2-19-14 Minami-Ikebukuro, Toshima-ku, Tokyo
COMFORIA NARIMASU

3-18-13 Asahi-cho, Nerima-ku, Tokyo

COMFORIA SHINOKACHIMACHI

2-18-8 Misuji, Taito-ku, Tokyo

COMFORIA MORISHITA WEST

1-3-5 Shin-Ohashi, Koto-ku, Tokyo

COMFORIA TOYOCHO

2-26-11 Minamisuna, Koto-ku, Tokyo

COMFORIA FUDOMAE

5-1-12 Nishigotanda, Shinagawa-ku, TokyoTokyo
metropolitan area

Subtotal

34

COMFORIA YATSUKA

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

COMFORIA SHINKOYASU

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

COMFORIA GYOTOKU

2-1-13 Gyotokuekimae, Ichikawa-shi, Chiba－ 14 －Real estate
Beneficial
interest in realestate trust
Real estate
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

1,270

1,251

2,380

2,196

1,480

1,385

2,870

2,649

2,720

2,749

1,730

1,753

930

897

2,330

2,254

2,230

2,091

6,250

5,469

1,380

1,315

895

909

1,210

1,182

2,060

1,981

2,920

2,783

3,690

3,534

1,370

1,377

1,440

1,438

1,980

1,970

1,550

1,673

1,330

1,277

1,310

1,263

3,850

3,796

1,780

1,664

159,803130,245

753

634

1,320

1,007

1,110

1,023

GRANCREER CENTER-MINAMI 40-3 Chigasaki Chuo, Tsuzuki-ku, Yokohama-shi,
Kanagawa
COMFORIA TAMA-PLAZA

2-12-1 Utsukushigaoka, Aoba-ku, Yokohama-shi,
Kanagawa
Subtotal

Other major cities

COLLEGE COURTHACHIMANYAMA(Note 1)Tokyo
metropolitan area

(Note 1)

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

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

COMFORIA SHIN-OSAKA

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

COMFORIA KITASANJO

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

COMFORIA SAPPOROSHOKUBUTSUEN

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

COMFORIA OGIMACHI

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

COMFORIA SHINSAIBASHI
EAST

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

COMFORIA KYOMACHIBORI

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

COMFORIA AWAZA

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

COMFORIA KITAHAMA

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

COMFORIA
ESAKAHIROSHIBACHO

19-13 Hiroshibacho, Suita-shi, Osaka(Note 1)

(Note 2)

Subtotal
Total

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

4,210

4,211

2,260

2,420

9,653

9,297

3,030

2,216

1,020

643

1,400

1,271

1,570

1,482

2,100

1,992

1,820

1,571

1,450

1,293

1,920

1,738

1,730

1,773

16,040312,721

13,983250,370“Appraisal value at end of period” indicates the appraisal value by a real estate appraiser (based on real estate appraisal reports or research reports
prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sōgō Appraisal Co., Ltd., JLL Morii Valuation &Advisory K.K. and Japan Valuers Co., Ltd., with the account closing date as the date of value estimate), pursuant to the method of asset appraisal
stipulated in the Articles of Incorporation of the Investment Corporation as well as the “Ordinance on Accountings of Investment Corporations”(Cabinet Office Ordinance No. 47 of 2006).
“Book value” indicates the acquisition price (including miscellaneous expenses related to the acquisition) as of the end of the 21st Fiscal Period(January 31, 2021) minus accumulated depreciation.

－ 15 －35

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

Area

Property name

Total number Occupancy rate Rental revenue(at end of period)of tenants(during period)(%)(at end of period)(thousands of yen)
(Note 1)

Central Tokyo

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

36

COMFORIA HARAJYUKUCOMFORIA MITA NORTHCOMFORIA SHIBAURABOWHOUSECOMFORIASHIROKANETAKANAWACOMFORIA NIHONBASHININGYOCHO EASTCOMFORIA ATAGOCOMFORIA KUDANCOMFORIA NIHONBASHININGYOCHO NORTHCOMFORIA SHINKAWACOMFORIA AKASAKACOMFORIA MITA EASTCOMFORIA SHIBAURA CANALCOMFORIA KITASANDOCOMFORIA YOYOGIUEHARACOMFORIA SASAZUKACOMFORIA SHINJUKUGYOEN II
COMFORIA
ICHIGAYAYANAGICHOCOMFORIA KAGURAZAKACOMFORIA NIBANCHOCOMFORIA NISHISHINJUKUCOMFORIA KANDAJINBOCHOCOMFORIA NIHONBASHICOMFORIA TAMACHICOMFORIA AZABUJUBANCOMFORIA SHINJUKUGYOEN I
COMFORIA KAGURAZAKA DEUXCOMFORIA AZABU EASTCOMFORIA SHINJUKUEASTSIDE TOWERCOMFORIA ICHIGAYAYAKUOJI
COMFORIA AKIHABARA EASTCOMFORIA MITA TROISCOMFORIA SHIBAURACOMFORIA SHINJUKUCOMFORIAHIGASHINIHONBASHICOMFORIA GINZA EASTNIBANKAN
COMFORIA HIGASHISHINJUKUSTATION FRONTCOMFORIA NAKAOCHIAICOMFORIA WASEDA DEUX
Subtotal(Note 2)20th Fiscal Period(From February 1, 2020 to July 31, 2020)

21st Fiscal Period(From August 1, 2020 to January 31, 2021)

Ratio toRatio toTotal number Occupancy rate Rental revenue
total
total
(at end of period)oftenants
rental(during period) rental(%)(at end of period)(thousandsofyen)revenues
revenues(Note 1)
(Note 2)
(%)
(%)

1

100.0

60,534

0.7

1

93.4

60,726

0.7

1
1
1
1
1
1
1
1
1

97.9
95.5
94.5
96.7
100.0
98.3
100.0
93.8
87.9

68,09147,53021,700119,982
22,77851,27627,152
44,93262,270

0.8
0.5
0.2
1.3
0.3
0.6
0.3
0.5
0.7

1
1
1
1
1
1
1
1
1

96.9
98.3
94.5
97.1
97.1
98.4
80.3
90.7
94.9

64,472
48,593
21,380118,552
22,48951,14025,881
39,212
56,619

0.7
0.5
0.2
1.3
0.2
0.6
0.3
0.4
0.6

1
1

87.4
93.4

124,561
29,543

1.4
0.3

1
1

98.1
90.0

122,542
28,359

1.4
0.3

1

92.0

100,639

1.1

1

96.0

100,542

1.1

1

97.4

48,415

0.5

1

95.0

46,283

0.5

1

93.8

68,727

0.8

1

96.4

67,812

0.7

1
1

95.0
96.7

30,10941,679

0.3
0.5

1
1

92.5
97.2

28,80343,703

0.3
0.5

1

97.2

38,993

0.4

1

97.2

36,940

0.4

1
1
1
1
1
1
1
1

93.3
97.5
94.1
98.9
92.8
90.4
99.0
93.7

61,196
68,315
104,435
56,475136,027
49,771
68,16858,679

0.7
0.8
1.2
0.6
1.5
0.6
0.8
0.6

1
1
1
1
1
1
1
1

98.3
89.9
92.6
93.7
94.2
97.2
97.0
95.8

58,36968,474
99,38654,402
130,674
50,05566,41153,759

0.6
0.8
1.1
0.6
1.4
0.6
0.7
0.6

1

92.5

51,967

0.6

1

93.0

50,760

0.6

1
1
1
1
1
1
1
1
1
1

91.4
91.2
94.4
97.7
97.0
93.1
90.9
91.5
94.0
100.0

23,53951,39645,651
44,721
65,42999,80345,732
46,184
41,296
77,766

0.3
0.6
0.5
0.5
0.7
1.1
0.5
0.5
0.5
0.9

1
1
1
1
1
1
1
1
1
1

100.0
100.0
98.5
97.6
93.1
95.8
94.5
94.8
97.0
95.9

25,27749,36948,21944,60971,85099,89444,71941,07440,72977,465

0.3
0.5
0.5
0.5
0.8
1.1
0.5
0.5
0.4
0.9

1

92.2

1,551,528

17.2

1

94.4

1,508,507

16.6

1
1
1
1
1

100.0
95.6
96.9
93.1
90.2

27,139129,605
24,94827,26559,449

0.3
1.4
0.3
0.3
0.7

1
1
1
1
1

96.2
94.7
94.0
83.9
97.2

25,208125,301
24,56027,62948,441

0.3
1.4
0.3
0.3
0.5

1

94.1

35,624

0.4

1

98.2

35,354

0.4

1

91.2

50,796

0.6

1

94.2

49,829

0.5

1

98.7

130,765

1.4

1

96.0

134,150

1.5

1
1
1

87.3
94.5
93.8

30,18021,205
4,293,989

0.3
0.2
47.6

1
1
1

97.0
96.4
95.1

34,77324,8294,198,147

0.4
0.3
46.3

－ 16 －Area

Property name

Total number Occupancy rate Rental revenue(at end of period)of tenants(during period)(%)(at end of period)(thousands of yen)
(Note 1)Sub-central Tokyo

20th Fiscal Period(From February 1, 2020 to July 31, 2020)

COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATACOMFORIA OYAMACOMFORIA
KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWACOMFORIA KOISHIKAWACOMFORIA SENGOKUCOMFORIA
DAIKANYAMAAOBADAICOMFORIA IKEBUKUROCOMFORIA
RYOGOKUISHIWARA
COMFORIA ASAKUSABASHI
DEUX
COMFORIA OSHIAGE
COMFORIA
HONJOAZUMABASHICOMFORIA
KIYOSUMISHIRAKAWA TROISCOMFORIA MONZENNAKACHOCOMFORIA HIMONYACOMFORIA MISYUKUCOMFORIA GAKUGEIDAIGAKUCOMFORIA HIGASHINAKANODEUXCOMFORIAHIGASHIIKEBUKURO WEST
COMFORIA RYOGOKU DEUXCOMFORIA OMORI DEUXCOMFORIA MACHIYACOMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH
COMFORIA TOYOSUCOMFORIA SUMIDATACHIBANACOMFORIA UENOHIROKOJI
COMFORIA KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOENCOMFORIA MEGUROCHOJAMARUCOMFORIA NISHIMAGOME(Note 3)
COMFORIAHIGASHIIKEBUKURO EASTCOMFORIAHIGASHIIKEBUKUROCOMFORIA KOMABACOMFORIA KINSHICHOCOMFORIA
MINAMISUNAMACHICOMFORIAHIGASHISHINAGAWACOMFORIA MEGUROYAKUMOCOMFORIA YOGACOMFORIA
ITABASHINAKAJUKU(Note 2)

21st Fiscal Period(From August 1, 2020 to January 31, 2021)

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

1

94.5

64,030

0.7

1

90.3

60,774

0.7

1

95.0

46,629

0.5

1

95.7

46,2520.5

132,76032,307
95,05968,576
79,789

0.4
0.4
1.1
0.8
0.9

1

1
1
1

98.3
92.3
97.4
99.1
94.6

1
1
1

94.9
100.0
96.1
93.9
97.5

31,65830,09895,666
66,93979,112

0.3
0.3
1.1
0.7
0.9

1

97.8

28,421

0.3

1

100.0

28,732

0.3

1
1
1

97.6
97.4
100.0

43,88822,81257,356

0.5
0.3
0.6

1
1
1

96.0
95.0
100.0

43,81021,801
56,849

0.5
0.2
0.6

1

96.0

37,947

0.4

1

95.4

38,436

0.4

1

1

1

89.2

22,826

0.3

1

96.2

21,279

0.2

1

100.0

25,597

0.3

1

100.0

25,590

0.3

1

91.1

30,087

0.3

1

95.3

31,135

0.3

1

94.3

27,314

0.3

1

97.4

25,095

0.3

1

98.2

28,493

0.3

1

94.7

29,375

0.3

1

100.0

32,557

0.4

1

94.1

31,752

0.4

1
1
1
1

97.2
95.6
98.4
90.9

95,39042,764
67,66741,708

1.1
0.5
0.7
0.5

1
1
1
1

97.9
97.3
98.3
92.7

89,87044,001
69,67739,793

1.0
0.5
0.8
0.4

1

87.9

29,796

0.3

1

94.1

30,444

0.3

1

92.7

170,487

1.9

1

95.0

160,171

1.8

1
1
1
1
1
1

94.0
100.0
87.8
94.8
95.7
96.9

38,56742,391
26,430103,752
49,750105,491

0.4
0.5
0.3
1.1
0.6
1.2

1
1
1
1
1
1

96.1
95.4
97.0
94.5
100.0
91.9

38,00539,657
26,992102,915
48,744
100,745

0.4
0.4
0.3
1.1
0.5
1.1

1

93.9

32,025

0.4

1

100.0

32,297

0.4

1
1
1
1
1

88.3
99.4
100.0
98.7
96.7

34,69596,524
46,52150,72734,268

0.4
1.1
0.5
0.6
0.4

1
1
1
1
1

94.8
97.6
94.5
93.8
96.7

33,031
93,67248,031
48,58031,751

0.4
1.0
0.5
0.5
0.4

1

93.7

71,380

0.8

1

93.6

69,819

0.8

1

100.0

34,225

0.4－－

26,136

0.3

1

95.5

70,510

0.8

1

94.4

70,199

0.8

1

95.3

37,870

0.4

1

97.8

37,458

0.4

1
1

90.8
96.3

132,374
36,583

1.5
0.4

1
1

97.0
98.2

134,489
33,693

1.5
0.4

1

96.5

137,388

1.5

1

96.0

137,067

1.5

1

98.2

52,286

0.6

1

98.2

54,116

0.6

1
1

94.7
97.8

26,25432,613

0.3
0.4

1
1

94.9
95.6

27,08531,961

0.3
0.4

1

94.4

126,555

1.4

1

95.2

123,997

1.4－ 17 －37

20th Fiscal Period(From February 1, 2020 to July 31, 2020)
Area

Property name

Total number Occupancy rate Rental revenue(at end of period)of tenants(during period)(%)(at end of period)(thousands of yen)

Other major cities

Tokyo metropolitanarea

Sub-central Tokyo(Note 1)

38

COMFORIA SHINAGAWA EASTCOMFORIA OJIMACOMFORIA OMORI TROISCOMFORIA BUNKYOHAKUSANCOMFORIA KAMATA
COLLEGE COURTHACHIMANYAMA
COMFORIA UENOIRIYACOMFORIA IKEJIRICOMFORIA
SETAGAYAKAMIUMACOMFORIA
AKABANEIWABUCHICOMFORIA RYOGOKU TROISCOLLEGE SQUAREHACHIMANYAMA
COMFORIA KINSHICHO DEUXCOMFORIA KAMEIDO SOUTH
COMFORIA SHIBUYA WEST
COMFORIAASAKUSAKOMAGATACOMFORIA OMORIKASHIMACOMFORIA OMORIMACHICOMFORIA KAMIIKEDAICAMPUS VILLAGESHIINAMACHICOMFORIA TAKINOGAWACOMFORIA KIBASHINSUIKOENCOMFORIA NISHIMAGOMEHILLSIDE
COMFORIA IKEBUKURO DEUXCOMFORIA NARIMASUCOMFORIA SHINOKACHIMACHICOMFORIA MORISHITA WEST
COMFORIA TOYOCHOCOMFORIA FUDOMAE
Subtotal
COMFORIA ICHIKAWAMYODEN(Note 3)
COMFORIA YATSUKACOMFORIA SHINKOYASUCOMFORIA GYOTOKUGRANCREER CENTER-MINAMICOMFORIA TAMA-PLAZA
Subtotal
COMFORIA SHIN-OSAKACOMFORIA KITASANJOCOMFORIA SAPPOROSHOKUBUTSUENCOMFORIA OGIMACHICOMFORIA SHINSAIBASHIEASTCOMFORIA KYOMACHIBORICOMFORIA AWAZACOMFORIA KITAHAMACOMFORIA
ESAKAHIROSHIBACHO
Subtotal
Total(Note 2)

(Note 1)

21st Fiscal Period(From August 1, 2020 to January 31, 2021)

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

1
1
1
1
1

90.7
96.0
92.1
87.7
95.8

75,91160,613
26,582
38,119163,073

0.8
0.7
0.3
0.4
1.8

1
1
1
1
1

90.1
95.0
94.0
94.3
89.6

70,141
56,866
26,86338,886
152,683

0.8
0.6
0.3
0.4
1.7

1

100.0

30,222

0.3

1

100.0

30,222

0.3

1
1

93.0
95.7

64,38935,175

0.7
0.4

1
1

98.2
95.5

64,61833,314

0.7
0.4

1

98.9

74,253

0.8

1

96.8

71,412

0.8

1

96.3

71,867

0.8

1

93.8

72,011

0.8

1

91.6

40,087

0.4

1

97.3

40,644

0.4

1

100.0

20,976

0.2

1

100.0

20,976

0.2

1
1
1

91.8
100.0
92.1

59,772
58,168
138,674

0.7
0.6
1.5

1
1
1

96.9
100.0
97.1

59,36363,756130,630

0.7
0.7
1.4

1

94.9

37,724

0.4

1

93.0

36,169

0.4

1
1
1

91.2
92.0
95.1

26,061
30,52855,094

0.3
0.3
0.6

1
1
1

91.1
98.4
93.1

25,06731,42554,736

0.3
0.3
0.6

1

100.0

66,178

0.7

1

100.0

66,170

0.7

1
1

98.1
96.3

88,81925,620

1.0
0.3

1
1

99.4
94.4

98,16830,555

1.1
0.3

1

94.1

21,308

0.2

1

86.4

28,755

0.3

1
1

96.0
82.0

9,703
6,221

0.1
0.1

1
1

96.9
98.4

49,82133,066

0.5
0.4

－

－

－

－

1

96.4

19,413

0.2

－

－

－

－

－

－

－

－

93.5
98.4
96.1
95.8

19,49360,55427,803
4,102,364

0.2
0.7
0.3
45.3

－

－

－

－

3

95.3

3,968,614

44.0

1
1
1
3

1

97.8

24,042

0.3－－

19,378

0.2

1
1
1
1
1
2
1
1

96.8
100.0
96.6
100.0
95.6
99.1
98.3
92.3

28,01041,322
29,410120,300
54,655
297,742
92,01936,901

0.3
0.5
0.3
1.3
0.6
3.3
1.0
0.4

1
1
1
1
1
2
1
1

98.4
97.1
93.0
100.0
97.4
99.0
96.9
96.7

27,68140,734
27,694
120,300
56,914
292,70291,45736,753

0.3
0.4
0.3
1.3
0.6
3.2
1.0
0.4

1

92.9

42,694

0.5

1

100.0

44,283

0.5

1

95.0

43,121

0.5

1

98.9

43,331

0.5

1

96.6

61,442

0.7

1

96.6

60,004

0.7

1
1
1

92.8
95.1
91.1

47,39042,71552,558

0.5
0.5
0.6

1
1
1

97.6
96.3
100.0

48,601
42,61854,828

0.5
0.5
0.6

1

98.3

49,489

0.5

1

94.2

49,251

0.5

1
4

95.1
95.0

468,333
9,028,680

5.2
100.0

1
4

97.4
95.9

471,1319,064,345

5.2
100.0

－ 18 －(Note 2)
(Note 3)

“Total number of tenants” indicates the total number of tenants under a direct lease relationship with the Investment Corporation or the trustee (including
tenants planned to have lease relationships). Therefore, in cases where the Investment Corporation or trustee comprehensively leases all of the apartments
for rent from each managed property to the master lease company (hereinafter referred to as the “introduction of a master lease”), and said master lease
company subleases each room for rent to end tenants, the total number of tenants will be shown as “1,” and will not include the number of end tenants
related to the said sublease. Tokyu Housing Lease Corporation, MAINICHICOMNET Co., Ltd., Tokyu Land Corporation and Sigma Japan are the four
master lease companies hired by the Investment Corporation for its assets under management; therefore, the sum of the total number of tenants is set as“4,” which is the total number of master lease companies. Even for managed assets where a master lease is introduced, end tenants who do not accept
the introduction of a master lease will be under a direct lease relationship with the Investment Corporation or trustee. However, the number of said end
tenants is not included in the total number of tenants.
“Occupancy rate” is the percentage of rented area vs. the rentable area of each managed asset.
This property was sold to a third party as of December 22, 2020.

4. Statement of Renewable Energy Power Generation Facilities
Not applicable

5. Statement of Operational License of Public Facilities
Not applicable

6. Statement of Securities Incorporated in the Portfolio
Not applicable

7. Details of Specified Transactions
The amount of specified derivative transactions entered into by the Investment Corporation and fair value as of January 31, 2021
are as follows.
Segment
Over-the-countertransactions

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

Over 1 year

(Note 1)

Fair value(millions of yen)
(Note 2)45,47037,245–45,47037,245–The contract amount of the interest-rate swap transactions is based on the notional principal.
The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate. The fair value is omitted fortransactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

8. Other Assets
Trust beneficial interests in properties owned by the Investment Corporation are listed on the aforementioned “3. Statement of
Properties Incorporated in the Portfolio.” As of the end of the 21st Fiscal Period, there is no incorporation in particular of specified
assets as principal investment targets by the Investment Corporation, other than assets in the aforementioned “3. Statement of
Properties Incorporated in the Portfolio,” “4. Statement of Renewable Energy Power Generation Facilities,” “5. Statement of
Operational License of Public Facilities” and “6. Statement of Securities Incorporated in the Portfolio.”

9. Ownership of Assets by Country and Region
Not applicable for countries and regions other than Japan－ 19 －39

Capital Expenditure for Properties Owned

3. Funding Reserved for Long-Term Repair Plans

1. Expected Capital Expenditure
Major capital expenditure that accompanies repair work currently planned for assets already acquired (includes assets undermanagement that were acquired after the account closing date) is as follows. The following expected amount of construction work
includes portions that are separately accounted under expenses.
Property name(location)
COMFORIA SHIBAURABOWHOUSE(Minato-ku, Tokyo)
COMFORIA
AKABANEIWABUCHI(Kita-ku, Tokyo)

PurposeLarge-scale repair work
Large-scale repair work

COMFORIA NISHIWASEDA(Shinjuku-ku, Tokyo)

Large-scale repair work

COMFORIA MISYUKU(Setagaya-ku, Tokyo)

Large-scale repair work

COMFORIA
KANDAJINBOCHO(Chiyoda-ku, Tokyo)

Large-scale repair work

Scheduled period
From Aug. 2020
to Mar. 2021
From Aug. 2020
to Mar. 2021
From Aug. 2021
to Jan. 2022
From Aug. 2021
to Jan. 2022
From Aug. 2020
to Mar. 2021

Expected amount of construction work
(thousands of yen)for
Total amount
Total amount Payment
the period
already paid
74,800－－68,000－－62,900－－53,600－－53,300－－From the cash flows during the fiscal period, the Investment Corporation sets aside reserves for repairs, which are to be appropriatedfor repairs in the medium to long term.
(Thousands of yen)
Fiscal period
Balance of reserves at the
beginning of period
Amount of reserves
during period
Reversal of reserves
during period
Amount carried forward
to next period(Note)

17th Fiscal Period

18th Fiscal Period

19th Fiscal Period

20th Fiscal Period

21st Fiscal Period

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

From Feb. 1, 2019 From Aug. 1, 2019 From Feb. 1, 2020
to Jul. 31, 2019
to Jan. 31, 2020
to Jul. 31, 2020

From Aug. 1, 2020
to Jan. 31, 2021

357,243

396,925

398,483

386,748

639,150

477,118

624,729559,814921,967

330,220

437,436

623,170

571,549

669,566

587,519

396,925

398,483

386,748

639,150

381,851

For certain managed assets with sectional ownership, the Investment Corporation pays reserves for repairs to the management associations each month,
but such amounts are not included in the table above.

2. Capital Expenditure during the Period
The overview of main construction work corresponding to capital expenditure that took place in the 21st Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 21st Fiscal Period was ¥137,605
thousand. Together with repair expenses of ¥326,772 thousand that were classified as expenses for the 21st Fiscal Period,
construction work totaling ¥464,377 thousand was carried out.
Property name(location)

PurposeConstruction cost(thousands of yen)

COMFORIA TAMA-PLAZA(Yokohama-shi, Kanagawa)

Renovation of waterproofing

From Sep. 2020
to Dec. 2020

29,375

COMFORIA SHINJUKU EASTSIDETOWER(Shinjuku-ku, Tokyo)

Replacement of furniture and fixtures for From Dec. 2020
common facilities
to Dec. 2020

5,232

COMFORIA WASEDA DEUX
(Shinjuku-ku, Tokyo)

Renovation of exclusive areas

From Jan. 2021
to Jan. 2021

2,246

Other properties, etc.

Replacement of air conditioners, etc.

Total

40

Period－ 20 －From Aug. 2020
to Jan. 2021

100,750
137,605－ 21 －41

Status of Expenses and Liabilities
Type

1. Statement of Expenses Related to Investments
Item(Thousands of yen)

20th Fiscal Period
From Feb. 1, 2020 to Jul. 31, 2020

Asset management fee (Note)

21st Fiscal Period
From Aug. 1, 2020 to Jan. 31, 2021

Lender
MUFG Bank, Ltd.

720

720

Development Bank of Japan Inc.

360

360

360

360

Mizuho Bank, Ltd.

525,333

559,788

Asset custody fee

8,405

8,984

Administrative service fees

27,584

28,660

Directors’ compensation

3,600

3,600

290,016

303,139

Mizuho Bank, Ltd.

904,174

Sumitomo Mitsui Trust Bank, Limited

Other expenses
Total

854,939

Sumitomo Mitsui Trust Bank, Limited(Note) In addition to the amount stated above, asset management fees came to ¥111,005 thousand and ¥38,775 thousand in the 20th Fiscal Period and 21st
Fiscal Period, respectively, related to the acquisition of properties that were incorporated in the book value of each property and asset management fees
came to ¥20,660 thousand in the 21st Fiscal Period related to the sale of property.

2. Loan Status

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

Feb. 4,2014

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

360

200

200

MUFG Bank, Ltd.

840

840

Development Bank of Japan Inc.

420

420

420

420

420

420

Sumitomo Mitsui Banking Corporation

230

230

MUFG Bank, Ltd.

980

980

Development Bank of Japan Inc.

490

490

490

490

490

490

Jun. 30,
2014

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

Feb. 3,2015

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

Feb. 3,2015

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

Feb. 3,
2015

2,000

-

1,000

-

1,000

-

1,000

-

500

-

1,820

1,820

910

910

910

910

910

910

450

450

1,200

1,200

600

600

600

600

600

600

300

300

1,240

1,240

620

620

620

620

620

620

310

310

1,240

1,240

620

620

620

620

620

620

310

310

0.90100

Maturity
date

Repayment
methodUse offunds

Remarks

MUFG Bank, Ltd.
Kiraboshi Bank, Ltd.

Mar. 23,
2016

Sumitomo Mitsui Trust Bank, Limited
Jan. 31,2021

Jun. 30,2022

MUFG Bank, Ltd.

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Sumitomo Mitsui Trust Bank, Limited

Jan. 31,2022

UnsecuredLump-sum(Note 3)
Unguaranteed
repayment

Mar. 23,2016

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

Aug. 1,
2016

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

0.69250

Feb. 2,
2016

Development Bank of Japan Inc.

Development Bank of Japan Inc.
0.88240

Feb. 2,
2016

Sumitomo Mitsui Banking Corporation

Long-term loans (Note 1)

Type

360

Sumitomo Mitsui Trust Bank, Limited

Balance at the Balance at the
Average
beginning of end of current
Drawdowninterest
current period
perioddate
rate (%)(millions of(millions of(Note 2)yen)
yen)

Feb. 2,
2016

Sumitomo Mitsui Banking Corporation

Mizuho Bank, Ltd.

The status of loans as of January 31, 2021 is as follows.

Balance at the Balance at the
beginning of end of current Average
Drawdown current
interest
periodperioddate
rate (%)(millions of(millions of (Note
2)
yen)
yen)

Aug. 1,
2016

Sumitomo Mitsui Banking Corporation
Mizuho Trust & Banking Co., Ltd.
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The 77 Bank, Ltd.

Jan. 31,2017

Daishi Hokuetsu Bank, Ltd. (Note 5)
0.79875

Jan. 31,2023

UnsecuredLump-sum(Note 3)
Unguaranteed
repayment

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

Feb. 2,
2017

Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
1.04200

Jan. 31,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

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

Feb. 2,
2017

Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation42－ 22 －Sep. 29,
2017

220

220

1,570

1,570

1,570

1,570

1,000

1,000

785

785

2,000

2,000

2,000

2,000

1,000

1,000

1,160

1,160

580

580

580

580

580

580

290

290

1,800

1,800

900

900

900

900

900

900

450

450

2,000

2,000

1,500

1,500

1,000

1,000

500

500

500

500

1,160

1,160

580

580

580

580

580

580

290

290

1,820

1,820

910

910

910

910

910

910

450

450

1,140

1,140

570

570

570

570

570

570

300

300

－ 23 －Maturity
date

Repayment
methodUse offunds

0.58430

Mar. 31,2023

Lump-sum (Note 3) Unsecured
repayment
Unguaranteed

0.62460

Aug. 31,2023

Lump-sum
Unsecured
repayment (Note 3) Unguaranteed

0.67745

Feb. 29,2024

Lump-sum
Unsecured
repayment (Note 3) Unguaranteed

0.27125

Mar. 31,2021

Lump-sum (Note 3) Unsecured
Unguaranteed
repayment

0.61950

Mar. 31,2025

Lump-sum (Note 3) Unsecured
Unguaranteed
repayment

0.46655

Jul. 31,2024

Lump-sum
Unsecured
repayment (Note 3) Unguaranteed

0.65518

Jul. 31,2026

Lump-sum (Note 3) Unsecured
repayment
Unguaranteed

0.46691

Jan. 31,2022

Lump-sum (Note 3) Unsecured
Unguaranteed
repayment

0.62938

Jan. 31,2024

Lump-sum (Note 3) Unsecured
repayment
Unguaranteed

0.79571Jan. 30,2026

Lump-sum (Note 3) Unsecured
repayment
Unguaranteed

0.49054

Sep. 30,2022

Lump-sum
Unsecured
repayment (Note 3) Unguaranteed

Remarks

43

Lender
MUFG Bank, Ltd.

1,140

1,140

570

570

570

570

570

570

300

300

1,040

1,040

520

520

520

520

520

520

260

260

1,300

1,300

1,300

1,300

1,300

1,300

Mizuho Trust & Banking Co., Ltd.

1,000

1,000

MUFG Bank, Ltd.

2,700

2,700

1,350

1,350

600

600

500

500

500

500

1,000

1,000

Development Bank of Japan Inc.

550

550

Mizuho Bank, Ltd.

550

550

550

550

275

275

Sumitomo Mitsui Banking Corporation

275

275

Development Bank of Japan Inc.

550

550

Mizuho Bank, Ltd.

550

550

550

550

550

550

Sumitomo Mitsui Banking Corporation

300

300

Mizuho Bank, Ltd.

670

670

670

670

670

670

320

320

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

Sep. 29,2017

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

Feb. 2,
2018

Sumitomo Mitsui Banking Corporation
Shinkin Central Bank
The Norinchukin Bank
The Bank of Fukuoka, Ltd.

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Nippon Life Insurance Company
Taiyo Life Insurance Company

Long-term loans (Note 1)

Resona Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Mar. 30,
2018

Mar. 30,
2018
Aug. 31,2018
Aug. 31,2018

Sep. 25,
2018

Jan. 31,2019

Jan. 31,2019

Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.

Jan. 31,
2019

Repayment
methodUse offunds

Remarks

Type

Lender

0.775710.65428

Sep. 30,2026

Jan. 31,
2025

1,000

1,000

1,000

1,000

1,000

1,000

Sumitomo Mitsui Banking Corporation

500

500

Mizuho Bank, Ltd.

970

970

Sumitomo Mitsui Trust Bank, Limited

970

970

970

970

Sumitomo Mitsui Banking Corporation

485

485

Shinkin Central Bank

525

525

The Norinchukin Bank

525

525

525

525

525

525

1,350

1,350

Mizuho Bank, Ltd.

590-

Sumitomo Mitsui Trust Bank, Limited

590

-

295

-

Sumitomo Mitsui Trust Bank, Limited

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

MUFG Bank, Ltd.

MUFG Bank, Ltd.

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

The Bank of Fukuoka, Ltd.
0.45804

Mar. 31,2023

Development Bank of Japan Inc.

Sumitomo Mitsui Banking Corporation

295-

0.55126

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Mizuho Bank, Ltd.

210

210

Aug. 31,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

210

210

0.73497

MUFG Bank, Ltd.

100

100

Sumitomo Mitsui Banking Corporation

100

100

Development Bank of Japan Inc.

750

750

Mizuho Bank, Ltd.

750

750

750

750

375

375

0.85667

0.43105

Mar. 31,2027

Jul. 31,2023

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

375

1,400

1,400

The 77 Bank, Ltd.

460

460

Shinkin Central Bank

460

460

460

460

MUFG Bank, Ltd.

The Bank of Fukuoka, Ltd.
0.39950

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

460

460

460

Mizuho Bank, Ltd.

660

660

660

660

330

330

780

780

780

780

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

350

350

350

350

Sumitomo Mitsui Trust Bank, Limited

MUFG Bank, Ltd.

Mar. 25,
2019

800

-

800

-

800

-

Sumitomo Mitsui Banking Corporation

400-

Mizuho Bank, Ltd.

800

800

800

800

800

800

400

400

Sumitomo Mitsui Trust Bank, Limited

MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Mar. 25,2019－ 24 －0.578260.18361

Sep. 30,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Sep. 30,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Sep. 30,
2020

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

MUFG Bank, Ltd.

MUFG Bank, Ltd.

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Jun. 26,
2020

390

390

820

820

Mizuho Bank, Ltd.

820

820

820

820

820

820

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Jun. 30,
2020

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

Mar. 31,2022

Jun. 26,2020

Development Bank of Japan Inc.

Mizuho Bank, Ltd.

0.24367

Mar. 31,
2020

460

700

0.54500

Mar. 30,
2020

Mizuho Trust & Banking Co., Ltd.

700

Mizuho Bank, Ltd.

0.49994

Jan. 31,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Mar. 2,
2020

375

The Norinchukin Bank
Jan. 31,2025

Mar. 2,
2020

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank, Limited

700

Feb. 3,2020

Jan. 31,2024

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

700

Sep. 30,
2019

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

700

Development Bank of Japan Inc.

Mar. 20,2019Mar. 31,2025

670

Apr. 5,
2019Mar. 25,2019

0.62188

700

Sumitomo Mitsui Banking Corporation

Mar. 25,
2019

Mizuho Trust & Banking Co., Ltd.

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

670

Apr. 5,2019

Balance at the Balance at the
Average
beginning of end of current
interest
Drawdown
periodcurrent period
rate (%)
date(millions of(millions of(Note 2)yen)
yen)Mizuho Bank, Ltd.

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

44

MaturitydateLong-term loans (Note 1)

Type

Balance at the Balance at the
Average
beginning of end of current
Drawdowninterest
current period
perioddate
rate (%)(millions of(millions of(Note 2)yen)
yen)

MUFG Bank, Ltd.

Sep. 29,
2020

420

420

-

1,600

-

1,600

-

800

－ 25 －Maturity
date

Repayment
methodUse offunds

0.45215

Sep. 30,2025

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.60810

Sep. 30,2027

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.42850

Mar. 31,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.54693

Mar. 31,2028

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.24727

Feb. 26,
2021(Note 4)Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.26367

Mar. 31,2021

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.47366

Aug. 31,2028

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.26367

Mar. 31,2021

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.46156

Sep. 30,2026

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.26367

Jul. 31,2021

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.26367

Jul. 31,2021

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.67532

Jun. 30,2029

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

0.27124

Oct. 31,2021

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Remarks45

Type

LenderBalance at the Balance at the
beginning of end of current
Drawdown
current period
perioddate(millions of(millions of
yen)
yen)

Development Bank of Japan Inc.

-

1,000

-

1,000

-

1,000

-

500

Sumitomo Mitsui Banking Corporation-

500

Mizuho Bank, Ltd.

-

800

-

800

-

800

Sumitomo Mitsui Banking Corporation-

400

Development Bank of Japan Inc.

-

1,220

Mizuho Bank, Ltd.

-

1,220

-

1,220

-

1,220

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited

Long-term loans (Note 1)

MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Total(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

Sep. 29,
2020

Sep. 30,
2020

Jan. 29,
2021

-

620

122,920

129,150

3. Investment Corporation Bonds

Averageinterest
rate (%)(Note 2)

Maturitydate

0.56815

Sep. 29,
2029

Repayment
methodUse offunds

Remarks

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

The status of investment corporation bonds as of January 31, 2021 is as follows.
Issue

Issue date

1st Unsecured Bond

Jul. 30, 2014

(Note 1)

Sep. 30,2029

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Lump-sum
Unsecured(Note 3)
repayment
Unguaranteed

Long-term loans include the current portion of long-term loans payable.
Average interest rates consist of the borrowing rates for each loan agreement rounded to the fifth decimal place. Furthermore, the stated rate for loans
for which interest-rate swap transactions were carried out to avoid interest rate risk takes into account the effect of the interest-rate swap.
The use of funds includes purchasing properties in trust and the repayment of existing borrowings.
The Investment Corporation made early repayment of the entire amount on August 7, 2020.
The Daishi Bank, Ltd. merged with The Hokuetsu Bank, Ltd. as of January 1, 2021 and changed its name to Daishi Hokuetsu Bank, Ltd.

0.64000

Use offunds

SecurityJul. 30, 2021

Lump-sum
repayment(Note 2)

Unsecured(Note 2)

Unsecured

1,000

1,000

0.23000

Jul. 15, 2022

3rd Unsecured Bond

Jul. 18, 2017

2,000

2,000

0.52000

Jul. 16, 2027

Lump-sum
repayment(Note 2)

Unsecured

4th Unsecured Bond

Jun. 14, 2018

1,000

1,000

0.23000 Dec. 14, 2023

Lump-sum
repayment(Note 2)

Unsecured(Note 2)

Unsecured(Note 1)

5th Unsecured Bond

Jun. 14, 2018

1,500

1,500

0.95000

Jun. 14, 2033

Lump-sum
repayment

6th Unsecured Bond

Jul. 18, 2019

1,000

1,000

0.23000

Jul. 18, 2024

Lump-sum
repayment(Note 2)

Unsecured

7th Unsecured Bond

Jul. 18, 2019

1,500

1,500

0.90000

Jul. 18, 2034

Lump-sum
repayment(Note 2)

Unsecured

8th Unsecured Bond
(Green Bonds)

Jul. 30, 2020

1,500

1,500

0.55000

Jul. 30, 2030

Lump-sum
repayment(Note 2)

Unsecured

12,50012,500(Note 1)

Jan. 29,
2031

3,000

Repayment
methodLump-sum
repayment(Note 1)0.68068

3,000

Maturitydate

2nd Unsecured Bond Jul. 18, 2017
(Note 1)
(Note 1)0.57308

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

(Note 1)

(Note 1)

Total
(Note 1)
(Note 2)The bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are primarily appropriated to the acquisition of real estate in trust and the repayment of some of the existing borrowings.

4. Short-Term Investment Corporation Bonds
Not applicable

5. Investment Unit Acquisition Rights
Not applicable46－ 26 －－ 27 －47

Purchase and Sale during the Period

4. Transactions with Related Parties(1) Information on transaction

1. Purchase and Sale of Properties and Asset Backed Securities
Property nameAcquisition

Sale

Acquisitiondate

Acquisition price(millions of yen)

COMFORIA SHINOKACHIMACHI

Sep. 29, 2020

1,237

－

－

－

－

COMFORIA MORISHITA
WEST

Sep. 29, 2020

1,222

－

－

－

－

COMFORIA TOYOCHO

Sep. 29, 2020

3,674

－

－

－

－

COMFORIA FUDOMAE

Sep. 29, 2020

1,622

－

－

－

－

COMFORIA
ICHIKAWAMYODEN－－ Dec. 22, 2020

805

586

208

COMFORIANISHIMAGOME－－ Dec. 22, 2020

1,261

952

293

Total

－

2,066

1,539

501

7,755

Sale date－

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

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

Total amount(1) Real estate, etc.

Acquisition
Acquisition
Acquisition
Acquisition
Sale
Sale

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

Property nameAcquisition orsale date

Real estate appraisal

Acquisition
price or saleprice (millionsof yen) (Note 1)

Appraisal value(millions ofyen) (Note 2)

Appraisalcompany

Date ofvaluation(Note 3)

COMFORIA SHINOKACHIMACHI

Sep. 29, 2020

1,237

1,290

(1)

Jul. 31, 2020

COMFORIA MORISHITA
WEST

Sep. 29, 2020

1,222

1,270

(1)

Jul. 31, 2020

COMFORIA TOYOCHO

Sep. 29, 2020

3,674

3,760

(2)

Jul. 31, 2020

COMFORIA FUDOMAE

Sep. 29, 2020

1,622

1,700

(2)

Jul. 31, 2020

COMFORIA
ICHIKAWAMYODEN

Dec. 22, 2020

805

766

(2)

Jul. 31, 2020

COMFORIANISHIMAGOME

Dec. 22, 2020

1,261

1,110

(2)

Jul. 31, 2020

Sales amount¥7,755,000 thousand¥2,066,000 thousand

Tokyu Land Corporation¥7,755,000 thousand (100.0%)¥－ thousand (－%)

Total

¥7,755,000 thousand (100.0%)¥－ thousand (－%)

(Note)The term “Related parties” refers to related parties defined in Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations as well as related parties of the Asset Management Company prescribed in Article 26, Paragraph 1, Item 27 of theRegulations Concerning Investment Reports of Investment Trusts and Investment Corporations issued by the Investment Trusts Association, Japan.
Descriptions are included with regard to a related party that falls under any of these and that had transactions or paid commissions, etc. during the
21st Fiscal Period. (The same shall apply in “(2) Amount of commission paid” and “(3) Major payments to other related parties” below.)(2) Amount of commission paid

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

3. Appraisals of Specified Assets

Purchase amount

Breakdown of transactions between related parties

Category

2. Purchase and Sale of Other Assets

Acquisitionor salePurchase and sales amount

Category

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

Breakdown of transaction with related parties
Payee
Tokyu Housing Lease Corporation

Amount of payment(B)(thousands of yen)

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

Property management
entrustment costs

458,479

63.7

719,975 Community One Co., Ltd.

36,324

5.0

Tokyu Community Corp.

3,808

0.5

Utilities expenses

110,495 Tokyu Community Corp.

57,765

52.3

Marketing-related
expenses

253,334 Tokyu Livable, Inc.

1,638

0.6

Other expenses related
to rent business

170,727

Tokyu Sports Oasis, Inc.

10,444

6.1

Community One Co., Ltd.

1,247

0.7

(3) Major payments to other related parties
Ewel Inc.
¥4,393 thousand (system usage, etc.)
Community One Co., Ltd.
¥3,506 thousand (repair work, etc.)
Tokyu Re・design Corporation¥841 thousand (repair work, etc.)

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

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

(2) Other
Of the transactions carried out by the Investment Corporation, there were no other transactions than those shown in the
aforementioned “(1) Real estate, etc.” that were deemed to require an appraisal pursuant to the provisions of Article 201 of theInvestment Trusts Act.

48

－ 28 －－ 29 －49

Accounting Status
1. Assets, Liabilities, Principal and Profit/Loss
Please refer to “1. Balance Sheets,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statementsof Cash Distributions,” “5. Statements of Cash Flows,” and “6. Notes.”

2. Changes in the Calculation Method of Depreciation
Not applicable

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

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

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

MatterOverview

Conclusion of a new investment unit A new investment unit underwriting contract with Mizuho Securities
underwriting contract pertaining toCo., Ltd. and four other companies (Note) for the issuance of new
the issuance of new investment units investment units and the secondary offering of investment units thatwere approved at the Board of Directors' meetings held on January 5,
and the secondary offering ofJanuary 5, 2021
investment units, and the conclusion 2021 and January 13, 2021, as well as a new investment unit purchase
contract pertaining to the Green Shoe option with the book runnerof a new investment unit purchase(Mizuho Securities Co., Ltd.) were concluded as of January 13, 2021,
contract with regard to the Green
Shoe option
respectively.
(Note) Other than Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc., which are co-lead managers, the companies
are Daiwa Securities Co. Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Nomura Securities Co., Ltd.

3. Disclosure on Overseas Property-Owning Corporations
Not applicable

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

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

50－ 30 －51

III. Financial Section

III. Financial Section
1. Balance Sheets(Thousands of yen)(Thousands of yen)
20th Fiscal Period(As of July 31, 2020)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets

21st Fiscal Period(As of January 31, 2021)

12,443,042
8,371,2029,128
428,911
63,6807,194
21,323,159

13,900,956
8,145,618
7,037
421,595–
1,195
22,476,404

2,742,924(152,660)
2,590,263
65,937(5,783)60,153
17,687(2,284)
15,403
3,179(1,658)1,520
6,459,597
103,786,264(13,978,934)
89,807,329
1,306,663(407,671)
898,992
1,677,915(351,832)
1,326,083
466,331(208,229)
258,102
142,556,041
243,973,486

2,743,141(182,377)
2,560,764
65,937(7,308)58,628
17,687(2,558)15,1283,519(1,935)
1,584
6,459,597
105,651,975(15,086,260)
90,565,714
1,315,310(431,797)
883,513
1,653,856(374,300)
1,279,556
515,393(241,490)
273,902
147,131,485
249,229,876

1,149,179
8,153
1,157,333

1,140,613
8,929
1,149,543

1,525,188
840,2392,392
2,367,819
247,498,639

1,525,246
1,008,892
4,812
2,538,951
252,918,370

47,456
66,236113,692
268,935,492

40,80660,080100,887
275,495,662

20th Fiscal Period(As of July 31, 2020)
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

21st Fiscal Period(As of January 31, 2021)

812,357
3,000,000
20,615,000
55,353
191,785
5,925–
1,422,850
1,387
26,104,660

519,5113,000,000
23,345,000
48,404340,904
5,926
46,916
1,466,325
53
28,773,043

9,500,000
102,305,000
40,4052,679,231
98,796
3,279
114,626,713
140,731,373

9,500,000
105,805,000
42,8432,744,240
99,412
2,968
118,194,464
146,967,508

123,947,208

123,947,208

733,377
733,377

691,258
691,258

3,523,532

3,889,688

4,256,910
128,204,118*1 128,204,118
268,935,492

4,580,946
128,528,154*1 128,528,154
275,495,662- 28 52- 29 -

53

3. Statements of Changes in Unitholders’ Equity

2. Statements of Income(Thousands of yen)
20th Fiscal Period(From February 1, 2020
to July 31, 2020)
Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Directors' compensations
Audit fee
Asset custody fee
Administrative service fees
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Amortization of investment unit issuance expenses
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 8,637,606*1
391,073–
9,028,680*1 8,737,566*1
326,778*2
501,418
9,565,763*1*1

4,092,317
525,333
3,600
14,4908,405
27,584
275,526
4,947,257
4,081,423

20th Fiscal Period (From February 1, 2020 to July 31, 2020)

4,176,676
559,7883,600
14,4908,984
28,660288,649
5,080,850
4,484,913

81
184
133
399

92
861
395
1,349

349,571
150,192
32,123

373,551
159,678
36,325

5,540

6,155

15,234
552,6633,529,159
3,529,159
5,937
(310)
5,627
3,523,532–
3,523,532

15,234590,9443,895,317
3,895,317
5,940
(311)
5,629
3,889,688–
3,889,688

Unitholders' equity
Surplus
Voluntary retained
earnings

Unitholders'
capitalBalance at beginningof current period

114,045,421

Issuance of new
investment units

Total
voluntary
retainedearnings

563,704

563,704

3,562,889

Total net assets

Total surplus

Totalunitholders'equity4,126,593

118,172,015

118,172,015

9,901,786

9,901,786

9,901,786

Reserve for
reduction entry

172,904

172,904(172,904)–––

Reversal of reserve
for reduction entry(3,231)(3,231)

3,231

–

–

–

Dividends of surplus(3,393,216)(3,393,216)(3,393,216)(3,393,216)

Profit3,523,532

3,523,532

3,523,532

3,523,532

Total changes of items
during period
Balance at end ofcurrent period*19,901,786

169,673

169,673(39,357)

130,316

10,032,103

10,032,103

123,947,208

733,377

733,377

3,523,532

4,256,910

128,204,118

128,204,118

21st Fiscal Period (From August 1, 2020 to January 31, 2021)(Thousands of yen)
Unitholders' equity
Surplus

Voluntary retained
earnings

Total net assets

Total surplus

Totalunitholders'equity3,523,532

4,256,910

128,204,118

128,204,118

42,119–––Dividends of surplus(3,565,651)(3,565,651)(3,565,651)(3,565,651)

Profit3,889,688

3,889,688

3,889,688

3,889,688

Unitholders'
capitalBalance at beginningof current period

123,947,208

Unappropriatedretainedearnings(undisposed
loss)

733,377(42,119)

Reserveforreduction
entry

Total
voluntary
retainedearnings

733,377(42,119)

Changes of items
during period

Total changes of items
during period
Balance at end ofcurrent period- 30 -

Reserveforreduction
entry

Unappropriatedretainedearnings(undisposed
loss)

Changes of items
during period

Reversal of reserve
for reduction entry

54(Thousands of yen)

21st Fiscal Period(From August 1, 2020
to January 31, 2021)*1–(42,119)(42,119)

366,155

324,036

324,036

324,036

123,947,208

691,258

691,258

3,889,688

4,580,946

128,528,154

128,528,154- 31 -

55

4. Statements of Cash Distributions
Category

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

5. Statements of Cash Flows
20th Fiscal Period(From February 1, 2020
to July 31, 2020)

21st Fiscal Period(From August 1, 2020
to January 31, 2021)¥3,523,532,301¥ 3,889,688,083¥42,119,515¥–¥3,565,651,816¥3,633,485,840[¥5,309][¥5,410]¥–¥256,202,243[Distribution per unit]
IV. Voluntary retained earnings
Provision of reserve for reduction
entry
V. Retained earnings carried forward
Method for calculating distributions

56¥0
The Investment Corporation will makecash distributions up to the amount ofaccounting profit based on the
distribution policy outlined in Article 351 of the Investment Corporation’s
Articles of Incorporation, in an amountthat exceeds 90% of the “amount of
distributable profit” of the Investment
Corporation as set forth in Article 67-15
of the Act on Special Measures
Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥3,565,651,816 as the total amount ofdividends for the period under review,which is equivalent to the entire amountof unappropriated retained earnings after
adding reversal of reserve for reduction
entry.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profit as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

- 32 -¥0
The Investment Corporation will makecash distributions up to the amount ofaccounting profit based on the
distribution policy outlined in Article 351 of the Investment Corporation’s
Articles of Incorporation, in an amountthat exceeds 90% of the “amount of
distributable profit” of the Investment
Corporation as set forth in Article 67-15
of the Act on Special Measures
Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥3,633,485,840 as the total amount ofdividends for the period under review,which is equivalent to the entire amountof unappropriated retained earnings after
deducting the provision of reserve for
reduction entry pursuant to Article 66-2of the Act on Special Measures
Concerning Taxation.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profit as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

(Thousands of yen)
20th Fiscal Period(From February 1, 2020
to July 31, 2020)

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

21st Fiscal Period(From August 1, 2020
to January 31, 2021)

3,529,159
1,343,923
150,192
5,540
15,234(81)(184)
381,695(1,300)(31,604)(63,680)(93,021)120,152(2,136)
7,488
46,015
6,205–(8,240)5,405,360
81(381,696)(5,936)
5,017,808

3,895,317
1,376,513
159,678
6,155
15,234(92)(861)
409,876
2,090
30,601
63,68046,916(92,838)
13,285
146,174
43,475
6,639
1,539,124
4,664
7,665,637
92(405,708)(5,939)7,254,081(3,108,043)(17,516,262)
15,344(3,280)367,449(234,674)(1,989)(20,481,455)(10,902)(8,374,206)
8,160(6,448)308,927(247,958)(2,478)(8,324,907)

16,206,289(6,000,000)
1,489,954
9,874,925(3,393,031)(11,025)
18,167,111
2,703,464
18,110,780*1 20,814,244

15,950,440(10,070,000)––(3,565,184)(12,100)
2,303,155
1,232,330
20,814,244*1 22,046,575

57

6. Notes

6.

<Summary of Significant Accounting Policies>
1.

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

Other significant accounting
policies applied in the
preparation of financial
statements

2–70 years
2–69 years
10–38 years
2–15 years(2) Accounting method for consumption taxes
Revenues and expenses in the Statements of Income do not include consumption taxes.
Non-deductible consumption taxes applicable to the acquisition of non-current assets,etc. are included in the cost of acquisition for each asset.

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

2.

3.

4.

Accounting policies fordeferred assets

Accounting standards forrevenues and expenses

Method of hedge accounting(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized by the straight-line method
over the redemption periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized by the straight-line method overthree years.
Accounting treatment of property tax, city planning tax, and depreciable asset tax
For property tax, city planning tax, and depreciable asset tax (“property tax”) for realestate properties held, the amounts to be paid for the current fiscal period are expensed
as expenses related to rent business out of the tax amounts decided to be levied.
Of the amounts paid for the acquisition of real estate property or beneficial interests inreal estate trust, the amounts equivalent to property tax settled with the seller of theproperty are capitalized as part of the acquisition cost of the relevant property rather
than being charged as expenses.
(1) Method of hedge accounting
The deferred hedge method is applied.
However, the special accounting treatment is applied for interest-rate swap
transactions that meet certain criteria.

(1) Accounting method for beneficial interests in real estate trust and other assets
Regarding trust beneficiary interests in real estate, all assets and liability accounts of
entrusted properties as well as revenue and expense accounts generated by the property
in trust are recorded in relevant accounts on the Balance Sheets and Statements ofIncome.
Important line items included in accounting for financial assets and liabilities in theInvestment Corporation’s Balance Sheets are as follows:(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; construction in progress in trust; andleasehold rights in trust(iii) Tenant leasehold and security deposits in trust<Notes to the Balance Sheets>*1. Minimum net assets pursuant to Article 67-4 of the Act on Investment Trusts and Investment Corporations
20th Fiscal Period(As of July 31, 2020)
50,0002.

(Thousands of yen)

21st Fiscal Period(As of January 31, 2021)
50,000Commitment line agreement
The Investment Corporation has commitment line contracts with three of the banks (as of July 31, 2020) and three of the banks(as of January 31, 2021), respectively.
(Thousands of yen)

Credit limit
Outstanding debt
Unused commitment line

20th Fiscal Period(As of July 31, 2020)
10,500,000–
10,500,000

21st Fiscal Period(As of January 31, 2021)
13,500,000–
13,500,000(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest expenses on loans payable(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its
investment management guidelines with the objective of hedging interest rate
fluctuation risks and other risks pertaining to borrowings, etc.

5.

58

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

- 34 -- 35 -

59

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

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

20th Fiscal Period(From February 1, 2020
to July 31, 2020)

21st Fiscal Period(From August 1, 2020
to January 31, 2021)

8,485,088
152,517

8,587,082
150,483

251,961
139,1128,637,606
391,073
9,028,680

184,281
142,497

722,535

719,975

385,794
707,285
436,009
6,821
110,118
169,330
49,708
1,341,509
163,205

326,772
707,331454,121
7,082
110,495
253,334
51,0281,374,621
171,911

4,092,317
4,936,362

8,737,566
326,778
9,064,345*1. Total number of authorized investment
units and total number of investment
units issued and outstanding
Total number of authorized investment units
Total number of investment units issued andoutstanding

4,176,676

8,000,000 units

671,624 units

671,624 units

20th Fiscal Period(From February 1, 2020
to July 31, 2020)
12,443,042
8,371,202
20,814,244

Due within 1 year
Due after 1 year
Total

20th Fiscal Period(As of July 31, 2020)
1,382,904
77,995,785
79,378,689

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

20th Fiscal Period (From February 1, 2020 to July 31, 2020)
Not applicable.
21st Fiscal Period (From August 1, 2020 to January 31, 2021)(Thousands of yen)
586,495
10,210(2) COMFORIA NISHIMAGOME
Revenue from sales of real estate properties
Cost of sales of real estate properties
Other sales expenses
Gain on sales of real estate properties

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

4,887,669

952,629
15,246805,000
596,705
208,294
1,261,000
967,876
293,123

21st Fiscal Period(From August 1, 2020
to January 31, 2021)<Notes to the Statements of Cash Flows>*1. Reconciliation of balance sheets items to cash and cash equivalents at end of period in the Statements of Cash Flows(Thousands of yen)

Cash and deposits
Cash and deposits in trust
Cash and cash equivalents*2. Breakdown of gain on sales of real estate properties(1) COMFORIA ICHIKAWAMYODEN
Revenue from sales of real estate properties
Cost of sales of real estate properties
Other sales expenses
Gain on sales of real estate properties

20th Fiscal Period(From February 1, 2020
to July 31, 2020)

Due within 1 year
Due after 1 year
Total

20th Fiscal Period(As of July 31, 2020)

825,936
5,617,704
6,443,641

21st Fiscal Period(From August 1, 2020
to January 31, 2021)
13,900,956
8,145,618
22,046,575(Thousands of yen)
21st Fiscal Period(As of January 31, 2021)
1,382,904
77,304,333
78,687,237(Thousands of yen)
21st Fiscal Period(As of January 31, 2021)
798,889
5,307,792
6,106,681<Notes to financial instruments>
1. Status of financial instruments(1) Policies for financial instruments
With a focus on stability, flexibility and efficiency as the basis of its financial policy, the Investment Corporation procures
funds through borrowings as well as the issuance of investment corporation bonds (including short-term investment corporation
bonds; the same shall apply hereinafter) and investment units among other means with the aim of growing its investment assets
through their acquisition.
The Investment Corporation may enter into derivatives transactions, which shall be executed solely for the purpose ofhedging against interest-rate fluctuations and other risks pertaining to borrowings, etc.
(2) Characteristics and risk profile of each financial instrument and risk management system
The funds from borrowings and investment corporation bonds are mainly appropriated for the acquisition of investment assets
and repayment of borrowings, etc. With regard to liquidity and interest rate fluctuation risks associated with these financing
activities, the Investment Corporation endeavors to manage and limit them by considering and implementing multifaceted
funding methods including the utilization of surplus funds and raising funds, etc. from capital markets through issuance ofinvestment units, etc. while diversifying funding sources. Although loans with floating interest rates are exposed to a risk offluctuation in interest rate, the Investment Corporation employs derivative transactions (interest-rate swap transactions) as
hedging instruments in order to avoid interest rate fluctuation risks and fix payment of interest expenses. For more detailed
information on the method of hedge accounting, hedging instruments, hedged items, hedging policy and the evaluation method
for hedge effectiveness, please refer to the previous section “6. Notes: Summary of significant accounting policies, 4. Methodof hedge accounting.”(3) Supplementary note regarding fair value of financial instruments
The fair values of financial instruments presented in this report is based on their market value, and in cases where market value
is not available, reasonably estimated values are presented. Since the estimation of fair value is based on certain assumptions,fair value could differ depending on the assumptions used.

60- 36 -- 37 -

61

2.

Fair value of financial instruments
The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of July 31,2020 are as follows.
(Thousands of yen)
Carrying value

Fair value(Note 1)

12,443,042―(2) Cash and deposits in trust

8,371,202

8,371,202―(3) Current portion of investment corporationbonds(3,000,000)(3,017,824)

17,824(4) Current portion of long-term loans payable(20,615,000)(20,636,383)

21,383(5) Investment corporation bonds(9,500,000)(9,684,812)

184,812(102,305,000)(103,457,314)

1,152,314――

Fair value(Note 1)

(1) Cash and deposits

13,900,956

13,900,956―(2) Cash and deposits in trust

8,145,618

8,145,618―(3) Current portion of investment corporationbonds(3,000,000)(3,009,559)

9,559(4) Current portion of long-term loans payable(23,345,000)(23,373,968)

28,968(5) Investment corporation bonds(9,500,000)(9,659,656)

159,656(105,805,000)(107,000,217)

1,195,217―――(6) Long-term loans payable(7) Derivative transactions(Note 1)
(Note 2)

(Note 3)Figures in parentheses indicate liabilities.
Methods to determine the fair value of financial instruments:(1) Cash and deposits and (2) Cash and deposits in trust
Due to their short tenors, the carrying values of these assets are reasonable approximations of their present value and hence are used as theirfair value.
(3) Current portion of Investment corporation bonds and (5) Investment corporation bonds
The fair value of investment corporation bonds is measured based upon the present value obtained by discounting the total amount ofprincipal and interest at a rate that takes into account the term to maturity and credit risk.
(4) Current portion of long-term loans payable and (6) Long-term loans payable
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short term and theircarrying values are good approximations of their fair value, the carrying values are presented as their fair value. However, the fair value offloating-rate long-term loans payable and current portion of long-term loans payable hedged by interest-rate swap transactions subject tospecial accounting treatment (refer to the following section entitled “Notes to derivative transactions”) are calculated by discounting theaggregated principal and interest on such loans, after taking into account the effect of said interest-rate swap transactions, using reasonableestimates of the rates that would be applicable in a similar borrowing.
(7) Derivative transactions
Please refer to the following section entitled “Notes to derivative transactions.”
Carrying value of financial instruments whose fair value cannot be reliably measured(Thousands of yen)
20th Fiscal Period(As of July 31, 2020)(1) Tenant leasehold and security deposits(2) Tenant leasehold and security deposits in trust

21st Fiscal Period(As of January 31, 2021)(40,405)(42,843)(2,679,231)(2,744,240)(1)(2) Fair values of tenant leasehold and security deposits and leasehold and security deposits in trust are not subject to disclosure of fair value,as these items have no market value and their future cash flows are difficult to reasonably estimate given the fact that although a predetermined
period for each lease contract exists, the actual deposit period cannot be calculated due to possible contract termination, renewal or extension.
(3) Figures in parentheses indicate liabilities.

62- 38 -

Deposits in trust

8,371,202

Total

20,814,244

Due within
1 year or less
Deposits(Note 5)

13,900,956

Deposits in trust

8,145,618

Total

22,046,575

Repayment and redemption schedule for loans payable and investment corporation bonds (Thousands of yen)
20th Fiscal Period (As of July 31, 2020)

Difference(Note 1)

12,443,042

21st Fiscal Period (As of January 31, 2021)―

The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of January
31, 2021 are as follows.
(Thousands of yen)
Carrying value

Due within
1 year or less
Deposits

12,443,042(7) Derivative transactions

Redemption schedule for monetary claims (Thousands of yen)
20th Fiscal Period (As of July 31, 2020)

Difference(Note 1)

(1) Cash and deposits(6) Long-term loans payable(Note 4)Current portion of
long-term loans
payableLong-term loans
payableCurrent portion of
investment
corporation bonds
Investment
corporation bonds
Total

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

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

20,615,000

―

―

―

―

―

―

16,600,000

15,960,000

12,380,000

18,920,000

38,445,000

3,000,000

―

―

―

―

―

―

1,000,000―

2,000,000―

6,500,000

23,615,000

17,600,000

15,960,000

14,380,000

18,920,000

44,945,000

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

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

23,345,000

―

―

―

―

―

―

14,360,000

15,920,000

15,130,000

18,150,000

42,245,000

3,000,000

―

―

―

―

―

―

1,000,000

1,000,000

1,000,000―

6,500,000

26,345,000

15,360,000

16,920,000

16,130,000

18,150,000

48,745,000

21st Fiscal Period (As of January 31, 2021)

Current portion of
long-term loans
payableLong-term loans
payableCurrent portion of
investment
corporation bonds
Investment
corporation bonds
Total<Notes to investment securities>
20th Fiscal Period (As of July 31, 2020)
Not applicable
21st Fiscal Period (As of January 31, 2021)
Not applicable<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
20th Fiscal Period (As of July 31, 2020)
Not applicable
21st Fiscal Period (As of January 31, 2021)
Not applicable- 39 -

63

2.

Transactions subject to hedge accounting

2.

20th Fiscal Period (As of July 31, 2020)

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

(Thousands of yen)Calculation
method for
Fair value
applicable fair
Maturing after 1 year
value

Contract amount

Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable
(*1)

Total

50,970,000

40,545,000

50,970,000

40,545,000

21st Fiscal Period (As of January 31, 2021)――(Thousands of yen)Calculation
method for
Fair value
applicable fair
Maturing after 1 year
value

Contract amount

Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable

Total

(*1)

45,470,000

37,245,000

45,470,000

37,245,000

―

(*2)

―

―

*1 Long-term loans payable include the current portion of long-term loans payable.
*2 Interest-rate swap transactions for which the special treatment is applied are accounted for together with long-term loans payable and the underlying
hedged items. As a result, their fair value is included in the fair value of items listed under “(4) Current portion of long-term loans payable” and “(6)Long-term loans payable” in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”<Notes to retirement benefits>
20th Fiscal Period (As of July 31, 2020)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
21st Fiscal Period (As of January 31, 2021)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
<Notes to deferred tax accounting>
1. Components of deferred tax assets and liabilities

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

2.

Affiliated companies and other20th Fiscal Period (As of July 31, 2020)
Not applicable
21st Fiscal Period (As of January 31, 2021)
Not applicable3.

Fellow subsidiary companies and other20th Fiscal Period (As of July 31, 2020)
Not applicable
21st Fiscal Period (As of January 31, 2021)
Not applicable4.

Directors, major individual unitholders and other20th Fiscal Period (As of July 31, 2020)
Not applicable
21st Fiscal Period (As of January 31, 2021)
Not applicable

21st Fiscal Period(As of January 31, 2021)(34.96)
－
0.52
0.16

(32.27)(2.28)
0.09
0.14

450
26,672
34,18361,306(60,856)450

450
29,63634,39664,483(64,033)
450<Notes to asset retirement obligations>
1. Overview of asset retirement obligations
The Investment Corporation has concluded fixed-term lease contracts with certain landlords, and recognizes asset retirement
obligations concerning the duty of restoration upon the expiry of the lease period with regard to some of these assets.
2.

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

(3,729)(3,418)

3.

Changes in the total amount of asset retirement obligations(3,729)(3,279)(3,418)(2,968)(Thousands of yen)
20th Fiscal Period(From February 1, 2020
to July 31, 2020)
Increase due to purchase of property, plant andequipment
Adjustment due to passage of time
Balance at end of period－ 40 －

34.60<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other20th Fiscal Period (As of July 31, 2020)
Not applicable
21st Fiscal Period (As of January 31, 2021)
Not applicable

Balance at beginning of period

64

34.60

<Notes to equity in net earnings (losses) of affiliated companies>
20th Fiscal Period (As of July 31, 2020)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
21st Fiscal Period (As of January 31, 2021)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.

(Thousands of yen)
20th Fiscal Period(As of July 31, 2020)

21st Fiscal Period(As of January 31, 2021)

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

―

(*2)

(%)

20th Fiscal Period(As of July 31, 2020)－ 41 －

21st Fiscal Period(From August 1, 2021
to January 31, 2021)

98,184

98,796

―

―

611

615

98,796

99,41265

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

<Notes to per unit information>

20th Fiscal Period(From February 1, 2020
to July 31, 2020)

Net assets per unit

21st Fiscal Period(From August 1, 2020
to January 31, 2021)

Book value
Balance at beginning of period

225,911,402

245,122,666

Changes during period

19,211,263

5,247,824

Balance at end of period

245,122,666

250,370,490

Fair value at end of period

301,101,000

312,721,000(Note 1)
(Note 2)

(Note 3)The book value excludes accumulated depreciation from acquisition cost. The book value does not include construction in progress andconstruction in progress in trust.
Among changes in the book value of real estate for rental purposes that occurred during the 20th Fiscal Period, the principal increase consisted of
the acquisition of 9 properties (COMFORIA HIGASHISHINJUKU STATION FRONT and other 8 properties; ¥20,241,476 thousand), while theprincipal decrease consisted of depreciation of ¥1,340,897 thousand. During the 21st Fiscal Period, the principal increase consisted of theacquisition of 4 properties (COMFORIA TOYOCHO and other 3 properties; ¥8,023,350 thousand), while the principal decrease consisted of thedisposition of 2 properties (COMFORIA NISHIMAGOME and another property: ¥1,539,124 thousand) and depreciation of ¥1,374,006 thousand.
The fair value at end of period is the appraisal value or the survey value determined by outside appraisers.

Income and loss related to real estate for rental purposes, etc. for the 20th Fiscal Period (From February 1, 2020 to July 31, 2020)
and 21st Fiscal Period (From August 1, 2020 to January 31, 2021) are listed in “Notes to the Statements of Income.”<Notes to segment information>(Segment information)
Disclosure is omitted because the property leasing business is the Investment Corporation’s sole business, with no reportablesegment subject to disclosure.
(Related information)
20th Fiscal Period (From February 1, 2020 to July 31, 2020)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues
on the Statements of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of
the amount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales account for 10% or more of operating
revenues on the Statements of Income.

20th Fiscal Period(From February 1, 2020
to July 31, 2020)¥190,886

21st Fiscal Period(From August 1, 2020
to January 31, 2021)¥191,369¥5,249¥5,791

Profit per unit
(Note 1)

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

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

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

20th Fiscal Period(From February 1, 2020
to July 31, 2020)
3,523,532

21st Fiscal Period(From August 1, 2020
to January 31, 2021)
3,889,688――

3,523,532

3,889,688

671,157

671,624<Note to significant subsequent events>
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meetings held on January 5, 2021 and January 13, 2021 concerning
the issuances of new investment units as described below. Based on the resolution, capital contributions have been completed on
February 1, 2021 for the new investment units issued through public offering and on February 17, 2021 for the new investment
units offered by way of third-party allotment, respectively. As a result, unitholders’ capital increased to ¥129,791,732,102, with
the number of investment units issued and outstanding being 692,994 units.
Issuance of New Investment Units through Public Offering (Primary Offering)Number of investment units issued:
20,360 units
Issue price:¥282,623 per unit
Total issue amount:¥5,754,204,280
Paid-in amount (issue value):¥273,492 per unit
Total paid-in amount (issue value):¥5,568,297,120
Payment date:February 1, 2021
Issuance of New Investment Units Offered by Way of Third-Party Allotment
Number of investment units offered:
1,010 units
Paid-in amount (issue value):¥273,492 per unit
Total paid-in amount (issue value):¥276,226,920
Payment date:February 17, 2021
Allottee:Mizuho Securities Co., Ltd.

21st Fiscal Period (From August 1, 2020 to January 31, 2021)
1. Information about each product and service
Disclosure is omitted because net sales to external customers of a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues
on the Statement of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of
the amount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales account for 10% or more of operating
revenues on the Statements of Income.

66－ 42 －－ 43 －

67

7. Supplementary Schedules(Thousands of yen)(i) Supplementary schedule of investment securities
Not applicable(ii) Information on contract amount and fair value of derivative transactions and forward exchange contracts
Information on derivative transactions and forward exchange contracts entered into by the Investment Corporation as ofJanuary 31, 2021 is as follows.
(Thousands of yen)Classification

Type

Over-the-counter transactions

Receive floating, pay fixedinterest-rate swap transactions

Contract amount (Note 1)
Maturing after 1
year

Total
(Note 1)
(Note 2)

Fair value(Note 2)45,470,000

37,245,000―

45,470,000

37,245,000―

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

(Thousands of yen)
Accumulated depreciation

Intangible
assetsProperty, plant and equipment

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

Balance at
beginning ofcurrent period

2,742,924

Increaseduringperiod217

orBalance at end
Depreciation Net balance ataccumulatedof current
end of currentoramortization
periodperiodamortization
at end ofduringcurrent
periodperiodDecreaseduringperiod0

Increase during period

Decrease during period

COMFORIA SHIN-OKACHIMACHI

1,281,165―

COMFORIA MORISHITA WEST

1,267,022―

COMFORIA TOYOCHO

3,807,670―

COMFORIA FUDOMAE

1,667,491―

COMFORIA ICHIKAWAMYODEN―

586,495

COMFORIA NISHIMAGOME―

952,629(iv) Supplementary schedule of other specified assets
Not applicable(v) Supplementary schedule of investment corporation bonds
Bond name(iii) Condensed supplementary schedule of real estate properties

Asset type

Property name2,743,141

182,377

29,716――65,937

7,308

1,524

58,628

17,687――

17,6872,558

274

15,128The Investment
Corporation
July 30, 2014
1st unsecured bonds

Remarks(Thousands of yen)

Decrease Balance at end
Couponduringof current
rate (%)
periodperiodRedemption
date

Use offunds

Security(Note 3)0.64000 July 30, 2021

(Note 2)

Unsecured

3,000,000

3,000,000――

The Investment
Corporation
July 18, 2017
2nd unsecured bonds

1,000,000――

1,000,000

0.23000 July 15, 2022

(Note 2)

Unsecured

2,000,000――

2,000,000

0.52000 July 16, 2027

(Note 2)

Unsecured

1,000,000――

1,000,000

0.23000

December 14,
2023(Note 2)

Unsecured1,500,000――

1,500,000

0.95000 June 14, 2033

(Note 2)

Unsecured

1,000,000――

1,000,000

0.23000 July 18, 2024

(Note 2)

Unsecured1,500,000――

1,500,000

0.90000 July 18, 2034

(Note 2)

Unsecured1,500,000――

1,500,000

0.55000 July 30, 2030

(Note 2)

Unsecured

12,500,000――

12,500,000(Note 1)The Investment
Corporation
July 18, 2017
3rd unsecured bonds(Note 1)The Investment
Corporation
June 14, 2018
4th unsecured bonds(Note 1)

3,179

340

―

3,519

1,935

276

1,584

6,459,597―

0

6,459,597――

6,459,597

103,786,264

2,543,067

677,356

105,651,975

15,086,260

1,232,483

90,565,714(Note)

1,306,663

35,782

27,1351,315,310

431,797

33,691

883,513(Note)

1,677,915―

24,0581,653,856

374,300

29,391

1,279,556(Note)The Investment
Corporation
June 14, 2018
5th unsecured bonds(Note 1)The Investment
Corporation
July 18, 2019
6th unsecured bonds(Note 1)The Investment
Corporation
July 18, 2019
7th unsecured bonds(Note 1)

466,33154,933

5,871

515,393

241,490

38,082273,902

142,556,041

5,526,613

951,169

147,131,485――

147,131,485

Total
Leaseholdrights in trust
Other

259,082,541

8,160,955

1,685,592

265,557,904

16,328,028

1,365,440

249,229,876

1,226,269――

1,226,269

85,6558,565

1,140,613

35,496

2,667

17,024

21,13912,209

1,891

8,929

Total

1,261,765

2,667

17,024

1,247,408

97,864

10,457

1,149,543(Note)The Investment
Corporation
8th unsecured bonds July 30, 2020
(Green Bonds)(Note 1)

(Note)(Note) Increases and decreases during the 21st Fiscal Period are due primarily to the acquisition and sale of rental residences. The details are as follows.

Total(Note 1)
(Note 2)
(Note 3)(Note 4)The bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are appropriated to the acquisition of real estate in trust and the repayment of some of the existing borrowings.
The bonds are shown as current portion of investment corporation bonds in the balance sheets.
The total amount of redemption of investment corporation bonds for each year during the five years following the balance sheet date is as shown
below.
(Thousands of yen)
Due within 1 year
or less
3,000,000

68

Increaseduringperiod(Note 1)2,560,764

65,937

Balance at
Issuance date beginning ofcurrent period

Due after 1 year
to 2 years
1,000,000

Due after 2 years
to 3 years
1,000,000－ 45 －－ 44 －

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

Due after 4 years
to 5 years―

Due after 5 years
6,500,000

69

(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of January 31, 2021 is as follows:
Classification
LenderAverageinterest rate(%)
(Note 2)

Maturity
date

Repayment
methodUse offunds

LenderRemarks

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
periodcurrent period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Development Bank of Japan Inc.

1,570,000--

1,570,000

1,570,000--

1,570,000

1,000,000--

1,000,000

MUFG Bank, Ltd.

2,000,000-

2,000,000-

MUFG Bank, Ltd.

Development Bank of Japan Inc.

1,000,000-

1,000,000-

Kiraboshi Bank, Ltd.

Mizuho Bank, Ltd.

1,000,000-

1,000,000-

785,000--

785,000

Sumitomo Mitsui Trust Bank, Limited

1,000,000-

1,000,000-

Development Bank of Japan Inc.

2,000,000--

2,000,000

Sumitomo Mitsui Banking Corporation

500,000-

500,000-

MUFG Bank, Ltd.

2,000,000--

2,000,000

1,820,000--

1,820,000

Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

Development Bank of Japan Inc.

910,000--

910,000

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

910,000--

910,000

Sumitomo Mitsui Trust Bank, Limited

910,000--

MUFG Bank, Ltd.

Sumitomo Mitsui Banking Corporation

0.88240January 31, Lump-sum
2021
repayment(Note 3)

Unsecured
Unguaranteed

Sumitomo Mitsui Trust Bank, Limited

1,160,000--

1,160,000

Development Bank of Japan Inc.

580,000--

580,000

910,000

Mizuho Bank, Ltd.

580,000--

580,000

0.90100 June 30, 2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

450,000--

450,000

Sumitomo Mitsui Trust Bank, Limited

580,000--

580,000

1,200,000--

1,200,000

Sumitomo Mitsui Banking Corporation

290,000--

290,000

Development Bank of Japan Inc.

600,000--

600,000

Mizuho Bank, Ltd.

600,000--

600,000

Sumitomo Mitsui Trust Bank, Limited

600,000--

600,000

Sumitomo Mitsui Banking Corporation

300,000--

300,000

1,240,000--

1,240,000

Development Bank of Japan Inc.

620,000--

620,000

Mizuho Bank, Ltd.

620,000--

620,000

Sumitomo Mitsui Trust Bank, Limited

620,000--

620,000

MUFG Bank, Ltd.

MUFG Bank, Ltd.

Long-term
Sumitomo Mitsui Banking Corporationloans
payableMUFG Bank, Ltd.
(Note 1)

310,000--

310,000

1,240,000--

1,240,000

Development Bank of Japan Inc.

620,000--

620,000

Mizuho Bank, Ltd.

620,000--

620,000

Sumitomo Mitsui Trust Bank, Limited

620,000--

0.69250

0.79875

January 31, Lump-sum
2022
repayment

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

MUFG Bank, Ltd.

1,800,000--

1,800,000

Development Bank of Japan Inc.

900,000--

900,000

Mizuho Bank, Ltd.

900,000--

900,000

Sumitomo Mitsui Trust Bank, Limited

900,000--

900,000

Sumitomo Mitsui Banking Corporation

450,000--

450,000

Mizuho Trust & Banking Co., Ltd.

2,000,000--

2,000,000

The Norinchukin Bank

1,500,000--

1,500,000

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

Long-term
The 77 Bank, Ltd.
loans
payableDaishi Hokuetsu Bank, Ltd. (Note 5)(Note 1)
1.04200

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

Unsecured
Unguaranteed

620,000

MUFG Bank, Ltd.

1,160,000--

1,160,000

Development Bank of Japan Inc.

580,000--

580,000

Mizuho Bank, Ltd.

580,000--

580,000

Sumitomo Mitsui Banking Corporation

310,000--

310,000

MUFG Bank, Ltd.

720,000--

720,000

Sumitomo Mitsui Trust Bank, Limited

580,000--

580,000

360,000

Sumitomo Mitsui Banking Corporation

290,000--

290,000

Development Bank of Japan Inc.

360,000--

March 31,2023

Lump-sum
repayment

Unsecured
Unguaranteed

Mizuho Bank, Ltd.

360,000--

360,000

1,820,000--

1,820,000

Sumitomo Mitsui Trust Bank, Limited

360,000--

360,000

Development Bank of Japan Inc.

910,000--

910,000

Sumitomo Mitsui Banking Corporation

200,000--

200,000

Mizuho Bank, Ltd.

910,000--

910,000

MUFG Bank, Ltd.

840,000--

840,000

Sumitomo Mitsui Trust Bank, Limited

910,000--

910,000

420,000

Sumitomo Mitsui Banking Corporation

450,000--

450,000

Development Bank of Japan Inc.

70

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Classification

420,000--

0.58430

August 31,
2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

420,000--

420,000

1,140,000--

1,140,000

Sumitomo Mitsui Trust Bank, Limited

420,000--

420,000

Development Bank of Japan Inc.

570,000--

570,000

Sumitomo Mitsui Banking Corporation

230,000--

230,000

Mizuho Bank, Ltd.

570,000--

570,000

MUFG Bank, Ltd.

980,000--

980,000

Sumitomo Mitsui Trust Bank, Limited

570,000--

570,000

Development Bank of Japan Inc.

490,000--

490,000

Sumitomo Mitsui Banking Corporation

300,000--

300,000

Mizuho Bank, Ltd.

490,000--

490,000

1,140,000--

1,140,000

Sumitomo Mitsui Trust Bank, Limited

490,000--

490,000

Development Bank of Japan Inc.

570,000--

570,000

Sumitomo Mitsui Banking Corporation

220,000--

220,000

Mizuho Bank, Ltd.

570,000--

570,000

Sumitomo Mitsui Trust Bank, Limited

570,000--

570,000

Sumitomo Mitsui Banking Corporation

300,000--

300,000－ 46 －

0.62460

0.67745

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

Unsecured
Unguaranteed

MUFG Bank, Ltd.

MUFG Bank, Ltd.

－ 47 －

Averageinterest rate(%)
(Note 2)

Maturity
date

Repayment
methodUse offunds

Remarks

0.27125

March 31,2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.61950

March 31,2025

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.46655

July 312024

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.65518

July 31,2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.46691

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

Unsecured
Unguaranteed

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

Unsecured
Unguaranteed

0.79571

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

Unsecured
Unguaranteed

0.49054

September 30, Lump-sum
2022
repayment(Note 3)

Unsecured
Unguaranteed

0.77571

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

Unsecured
Unguaranteed71Classification
Lender
MUFG Bank, Ltd.

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Averageinterest rate(%)
(Note 2)

Repayment
methodUse offunds

Classification
Remarks

Lender

1,040,000--

1,040,000

Development Bank of Japan Inc.

520,000--

520,000

Mizuho Bank, Ltd.

520,000--

520,000

Sumitomo Mitsui Trust Bank, Limited

520,000--

520,000

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation

260,000--

260,000

Mizuho Bank, Ltd.

Shinkin Central Bank

1,300,000--

1,300,000

Sumitomo Mitsui Trust Bank, Limited

The Norinchukin Bank

1,300,000--

1,300,000

MUFG Bank, Ltd.

The Bank of Fukuoka, Ltd.

1,300,000--

1,300,000

Mizuho Trust & Banking Co., Ltd.

1,000,000--

MUFG Bank, Ltd.

2,700,000--

Mizuho Bank, Ltd.

1,350,000--

1,350,000

Sumitomo Mitsui Banking Corporation

600,000--

Nippon Life Insurance Company

500,000--

Taiyo Life Insurance Company

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
periodcurrent period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Mizuho Bank, Ltd.

800,000--

800,000

Sumitomo Mitsui Trust Bank, Limited

800,000--

800,000

MUFG Bank, Ltd.

800,000--

800,000

400,000--

400,000

1,000,000--

1,000,000

1,000,000--

1,000,000

1,000,000--

1,000,000

Sumitomo Mitsui Banking Corporation

500,000--

500,000

1,000,000

Mizuho Bank, Ltd.

970,000--

970,000

2,700,000

Sumitomo Mitsui Trust Bank, Limited

970,000--

970,000

MUFG Bank, Ltd.

970,000--

970,000

600,000

Sumitomo Mitsui Banking Corporation

485,000--

485,000

500,000

525,000--

525,000

500,000--

500,000

1,000,000--

1,000,000

Development Bank of Japan Inc.

550,000--

550,000

Mizuho Bank, Ltd.

550,000--

550,000

Resona Bank, Ltd.

0.654280.45804

0.62188

January 31, Lump-sum
2025
repayment

March 31,2023

March 31,2025

Lump-sum
repayment

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

0.55126

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

Unsecured
Unguaranteed

Shinkin Central Bank
The Norinchukin Bank

525,000--

525,000

0.73497

August 31,
2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

The Bank of Fukuoka, Ltd.

525,000--

525,000

Mizuho Trust & Banking Co., Ltd.

525,000--

525,000

Development Bank of Japan Inc.

1,350,000--

1,350,000

March 31,2027

Lump-sum
repayment

Mizuho Bank, Ltd.

590,000-

590,000-

550,000--

550,000

MUFG Bank, Ltd.

275,000--

275,000

Sumitomo Mitsui Trust Bank, Limited

590,000-

590,000-

Sumitomo Mitsui Banking Corporation

275,000--

275,000

MUFG Bank, Ltd.

295,000-

295,000-

550,000--

550,000

295,000-

295,000-

550,000--

550,000

210,000--

210,000

Sumitomo Mitsui Trust Bank, Limited

550,000--

550,000

210,000--

210,000

MUFG Bank, Ltd.

550,000--

550,000

MUFG Bank, Ltd.

100,000--

100,000

Sumitomo Mitsui Banking Corporation

300,000--

300,000

Sumitomo Mitsui Banking Corporation

100,000--

100,000

Mizuho Bank, Ltd.

670,000--

670,000

Development Bank of Japan Inc.

750,000--

750,000

Sumitomo Mitsui Trust Bank, Limited

670,000--

670,000

Mizuho Bank, Ltd.

750,000--

750,000

MUFG Bank, Ltd.

670,000--

670,000

Sumitomo Mitsui Trust Bank, Limited

750,000--

750,000

Sumitomo Mitsui Banking Corporation

320,000--

320,000

MUFG Bank, Ltd.

375,000--

375,000

Development Bank of Japan Inc.

670,000--

670,000

Sumitomo Mitsui Banking Corporation

375,000--

375,000

MUFG Bank, Ltd.

1,400,000--

1,400,000

The 77 Bank, Ltd.

460,000--

460,000

Shinkin Central Bank

460,000--

460,000

The Norinchukin Bank

460,000--

460,000

The Bank of Fukuoka, Ltd.

460,000--

460,000

Mizuho Trust & Banking Co., Ltd.

460,000--

460,000

Mizuho Bank, Ltd.

660,000--

660,000

Sumitomo Mitsui Trust Bank, Limited

660,000--

660,000

MUFG Bank, Ltd.

330,000--

330,000

Mizuho Bank, Ltd.

780,000--

780,000

Sumitomo Mitsui Trust Bank, Limited

780,000--

780,000

MUFG Bank, Ltd.

390,000--

390,000

Mizuho Bank, Ltd.

700,000--

700,000

Sumitomo Mitsui Trust Bank, Limited

700,000--

700,000

0.85667

0.43105

350,000--

350,000

Sumitomo Mitsui Banking Corporation

350,000--

350,000

Development Bank of Japan Inc.

700,000--

700,000

Mizuho Bank, Ltd.

800,000-

800,000-

Sumitomo Mitsui Trust Bank, Limited

800,000-

800,000-

MUFG Bank, Ltd.

800,000-

800,000-

400,000-

400,000－ 48 －-(Note 3)

Unsecured
Unguaranteed

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

Unsecured
Unguaranteed

0.49994

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

Unsecured
Unguaranteed

September 30, Lump-sum
2026
repayment

September 30, Lump-sum
0.57826
2026
repayment

0.18361

Sumitomo Mitsui Banking Corporation

Lump-sum
repayment

0.39950

0.54500
MUFG Bank, Ltd.

July 31,2023(Note 3)

Unsecured
Unguaranteed

Sumitomo Mitsui Trust Bank, Limited

Long-term
loans
Development Bank of Japan Inc.
payable(Note 1) Mizuho Bank, Ltd.

72

Maturity
date

September 30, Lump-sum
2020
repayment(Note 3)(Note 3)(Note 3)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Long-term
Sumitomo Mitsui Banking Corporationloans
payable Mizuho Bank, Ltd.
(Note 1)
Sumitomo Mitsui Trust Bank, Limited- 49 -

Averageinterest rate(%)
(Note 2)

Maturity
date

Repayment
methodUse offunds

Remarks0.24367

March. 31,
2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.45215

September 30, Lump-sum
2025
repayment(Note 3)

Unsecured
Unguaranteed

0.60810

September 30, Lump-sum
2027
repayment(Note 3)

Unsecured
Unguaranteed

0.42850

March 31,2026

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.54693

March 31,2028

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.24727

February 26,
Lump-sum2021
repayment(Note 4)(Note 3)

Unsecured
Unguaranteed

0.26367

March 31,2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.47366

August 31,
2028

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.26367

March 31,2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

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

Unsecured
Unguaranteed

0.26367 July 31, 2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.26367 July 31, 2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.4615673

Balance atBalance atIncrease
Decrease
beginning of
end of current
during period during period
periodcurrent period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Classification
LenderDevelopment Bank of Japan Inc.

820,000--

820,000

Mizuho Bank, Ltd.

820,000--

820,000

Sumitomo Mitsui Trust Bank, Limited

820,000--

820,000

MUFG Bank, Ltd.

820,000--

820,000

Sumitomo Mitsui Banking Corporation

420,000--

420,000

Mizuho Bank, Ltd.

-

1,600,000-

1,600,000

Sumitomo Mitsui Trust Bank, Limited-

1,600,000-

1,600,000

MUFG Bank, Ltd.

-

800,000-

800,000

Development Bank of Japan Inc.

-

1,000,000-

1,000,000

Mizuho Bank, Ltd.

-

1,000,000-

1,000,000-

1,000,000-

1,000,000-

500,000-

500,000-

500,000-

500,000

Mizuho Bank, Ltd.

-

800,000-

800,000

Sumitomo Mitsui Trust Bank, Limited-

800,000-

800,000

MUFG Bank, Ltd.

-

800,000-

800,000

Sumitomo Mitsui Banking Corporation-

400,000-

400,000

Development Bank of Japan Inc.

-

1,220,000-

1,220,000

Mizuho Bank, Ltd.

-

1,220,000-

1,220,000

Sumitomo Mitsui Trust Bank, Limited-

1,220,000-

1,220,000

MUFG Bank, Ltd.

-

1,220,000-

1,220,000

Sumitomo Mitsui Banking Corporation-

620,000-

620,000

122,920,000

16,300,000

10,070,000

129,150,000

122,920,000

16,300,000

10,070,000

129,150,000

Long-term Sumitomo Mitsui Trust Bank, Limitedloans
payable MUFG Bank, Ltd.
(Note 1)
Sumitomo Mitsui Banking Corporation

Subtotal
Total(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Averageinterest rate(%)
(Note 2)

Repayment
methodUse offunds

Remarks

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

0.27124

October 31, Lump-sum
2021
repayment(Note 3)

Unsecured
Unguaranteed

0.56815

September 29, Lump-sum
2029
repayment(Note 3)

Unsecured
Unguaranteed

0.57308

September 30, Lump-sum
2029
repayment(Note 3)

Unsecured
Unguaranteed

0.68068

January 29, Lump-sum
2031
repayment(Note 3)

Unsecured
Unguaranteed

Maturity
date

0.67532 June 30, 2029

Long-term loans payable include the current portion of long-term loans payable.
The average interest rate is the interest rate for each loan contract rounded to the fifth decimal place. As for the borrowings hedged by interestrate swap transactions in order to avoid interest rate fluctuation risk, the interest rates reflect the effect of interest-rate swap transactions.
The use of funds is mainly for the acquisition of real estate in trust and repayment of existing borrowings, etc.
The Investment Corporation made early repayments of the entire amount on August 7, 2020.
The Daishi Bank, Ltd. merged with The Hokuetsu Bank, Ltd. as of January 1, 2021 and changed its name to Daishi Hokuetsu Bank, Ltd.
The total amount of repayment of long-term loans payable for each year during the five years following the balance sheet date is as shown below.
(Thousands of yen)
Due within 1
year or less
23,345,00074

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

14,360,000

15,920,000

15,130,000

18,150,000

42,245,000- 50 -

75

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77