21st
Fiscal Period ReportAugust 1, 2020 - January 31, 2021

1-105 Kanda-Jinbocho, Chiyoda-ku, TokyoI. Fiscal Period ReportManagement’s Discussion and Analysis
1 Summary of Selected Financial Data
Operatingresults

Balancesheet figures

Per unit
figures

Financial
indicators

Reference
information

17th FP

18th FP

19th FP

20th FP

21st FP

Fiscal Period

units

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

Operating revenues(Rental revenue)a(Gain on real estate sales)b
Total operating expenses(Rental business expenses)c(Loss on real estate sales)d(Impairment loss)e
Operating income
Ordinary incomef
Net incomegTotal assetshInterest-bearing liabilitiesi
Net assetsjPaid-in Capitalk
Total dividendslPayout ratiol/g
Total number of units issued and outstandingm
Net assets per unit
j/m
Note 2
Net income per unit
Dividend per unit
l/m
Dividend from earnings per unit
Dividend in excess of earnings per unit
Note 3
Annualized dividend yield
Return on investment (Paid-in Capital)(g+q)/(k+i) Note 3
Return on investment (market capitalization) (g+q)/(m×r+i) Note 3(g-b+d+e+q)/m
FFO per unit
Note 3
Annualizedn
FFO per unit
r/nNote 4
Ratio of ordinary income to total assets
f/hNote 3
Annualized
Equity ratioj/hNote 5Return on equity
g/jNote 3
Annualized
Ratio of interest-bearing liabilities to total assets
i/h
DSCR
o/p
Net income before interest and depreciationoInterest expensespNote 6NOI
a-c+q
Note 3, 7
Annualized NOI yield
Note 8Depreciation and amortizationq
Number of properties under management
Number of leasable units
Note 9
Leasable floor area at end of period
Note 10
Occupancy rate at end of period
Unit price at end of periodrmillion yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
%
Units
yen
yen
yen
yen
yen
%
%
%
yen
yen
times
%
%
%
%
%
%
times
million yen
million yen
million yen%
million yen
–
Units
m2
%
yen

16,196
16,196
–
8,078
6,333
–
–
8,117
6,984
6,983
452,487
225,918
220,069
127,6907,319
104.8
1,350,000
163,014
5,173
5,422
5,422
0
3.3
5.4
2.9
7,177
14,237
22.6
1.5
3.1
48.6
3.2
6.3
49.9
11.4
10,624935
12,568
5.6
2,705
264
21,286790,646.47
97.0
322,000

16,465
16,465
–
8,263
6,519
–
–
8,202
7,094
7,094
451,589
225,318
219,837
127,6907,430
104.7
1,350,000
162,842
5,254
5,504
5,504
0
3.3
5.6
2.9
7,277
14,676
23.0
1.6
3.2
48.7
3.2
6.5
49.9
12.0
10,721896
12,676
5.7
2,730
265
21,322
791,672.97
97.0
337,500

17,175
16,533
642
8,211
6,439
–
–
8,964
7,945
7,945
457,863
219,418
231,698
139,034
7,783
98.0
1,385,000
167,291
5,782
5,620
5,620
0
3.3
5.9
3.1
7,267
14,417
23.7
1.7
3.5
50.6
3.5
7.0
47.9
13.9
11,536827
12,856
5.7
2,763
269
21,399798,959.22
97.0
341,500

17,357
16,851
506
9,062
6,707
511
–
8,294
7,321
7,320
457,568
219,588
231,225
139,034
7,804
106.6
1,385,000
166,950
5,285
5,635
5,635
0
3.3
5.7
2.9
7,310
14,700
23.2
1.6
3.2
50.5
3.2
6.4
48.0
14.0
10,897779
12,941
5.7
2,798
271
21,402
797,152.25
96.3
341,000

17,014
16,718
295
8,500
6,630
–
–
8,513
7,549
7,548
458,579
220,788
230,966
139,034
7,756
102.7
1,385,000
166,763
5,450
5,600
5,600
0
3.6
5.7
3.2
7,261
14,403
21.5
1.6
3.3
50.4
3.3
6.5
48.1
14.4
11,125773
12,891
5.6
2,802
271
21,552
800,789.34
96.0
310,000

Notes 1. Figures for Operating results do not include consumption tax. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal place.
The same applies hereafter.
2. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
3. The annualized figures are calculated using periods of 184 days for the 17th FP, 181 days for the 18th FP, 184 days for the 19th FP, 182 days for the 20th, 184 days for the 21st FP.
4. Ratio of ordinary income to total assets = Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
5. Return on equity = Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
6. In the calculation of NOI, the depreciation and amortization is limited to what is included in rental business expenses.
7. Annualized NOI yield = Total annualized NOI ÷ Total property acquisition price(The annualized NOI yield is calculated by taking into account the actual number of days of operation for each property.)
8. Depreciation and amortization include amortization of intangible assets in addition to depreciation of property, plant and equipment.
9. “Leasable floor area at end of period” refers to the leasable floor area for each building as stated on the lease agreement or indicated on its official floor plan. The leasable floorarea of land such as parking lots is not included.
10. “Occupancy rate at end of period” is calculated by using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.

1

2 Investment Environment and Operating PerformanceWith the aim of realizing a stable distribution of earnings over the long term, we carried out the following initiatives during
the 21st Fiscal Period (FP).
1. Internal Growth
Given that the COVID-19 pandemic prompted an increase in move-outs particularly when it comes to small residential units
located in urban centers, ADR took steps to curb the decline in occupancy rates by easing leasing terms such as those
involving rents particularly with respect to such residential units.
2. External Growth
ADR conducted property replacements that involved acquiring two higher yielding properties from third parties (totalacquisition price of 2.9 billion yen) and disposed of two compact lower yielding properties (total acquisition price of 1.0
billion yen). Furthermore, ADR achieved gain on sales amounting to around 0.29 billion yen due to such disposals.
3. Finance
ADR simultaneously extended its average remaining duration of interest-bearing liabilities while reducing its averageinterest rate amid the low interest rate environment. Furthermore, ADR endeavored to strengthen its financial foundation
by increasing its fixed interest ratio.
4. Sustainability
ADR has been selected by the GRESB Real Estate Assessment as a Sector Leader in recognition of it having received top
rankings in the Asian residential sector category. ADR was accordingly rated highly for factors that include improvement it
has achieved regarding its percentage of electricity consumption data coverage encompassing tenant-occupied areas, aswell as progress it has achieved in concluding lease agreements containing green lease clause(Note 1).
Note 1.

Green lease clauses are provisions established in lease agreements concluded with tenants regarding matters such as reducing environmental loads through energy-saving realestate, etc.

By executing these initiatives, we were able to attain the following FP results.

Item

Previous FP
Results

Initial Forecast Note 2

21st FP Results(January 2021)(million yen)

Difference from the Previous FP Difference from the Initial Forecast

Operating revenues

17,357

16,702

17,014–343+311

Operating income

8,294

8,152

8,513

+218

+360

Ordinary income

7,321

7,175

7,549

+228

+374

Net income

7,320

7,174

7,548

+228

+374

Earnings Per Unit

5,285 yen

5,180 yen

5,450 yen

+165 yen Note3+270 yen Note3

Dividend Per Unit

5,635 yen

5,540 yen

5,600 yen

–35 yen+60 yenNotes 2. The initial forecast refers to the earnings forecasts for the 21st FP disclosed in the “Brief Summary of Kessan Tanshin” for the 20th Fiscal Period, dated September 16, 2020. The
same applies hereafter.
3. Decimals are omitted from the EPU figures.

Earnings per unit (EPU) amounted to 5,450 yen, which was 165 yen higher than in the previous FP. The increase was due to asituation where ADR incurred both a decrease in rental income due to lower occupancy rates and a decrease in gain on sales,
yet achieved lower loss on sales exceeding those decreases. Compared with the initial forecast, revenues and income werehigher largely due to gain on sales, along with decreases in tenant solicitation costs and funding costs.
Dividend per unit (DPU) amounted to 5,600 yen, which was 35 yen lower than in the previous FP and 60 yen higher than theinitial forecast, with ADR having retained 210 yen per unit from some gains on sales generated during the FP, in addition to
drawdown in reserve for temporary difference adjustment (RTA) of 242 yen per unit and distribution from retained earningsof 117 yen per unit.

2

I. Fiscal Period Report
1. Internal Growth– Curbing Downturn in Occupancy Rates by Easing up on Leasing Terms –During the FP, ADR encountered an increase in move-outs particularly with respect to small residential units located inurban centers due to the COVID-19 pandemic. As such, it accordingly took steps to curb the decline in occupancy rates
by easing leasing terms such as those involving rents particularly with respect to such residential units. As a result, ADR
managed to hold the average fiscal period occupancy rate to 95.9% (0.8 of a percentage point lower than in the previous
FP), albeit slightly below the initial forecast of 96.0%.
The rate of change in rents upon tenant replacement dropped sharply to a 1.2% rate of increase this FP, from a recordhigh 5.5% rate of increase in the previous FP. As previously noted, this is largely attributable to ADR having reduced rentsof such residential units in order to stimulate demand for small properties located in urban centers. Likewise, the rate ofchange in rents upon contract renewal decreased to a 0.4% rate of increase from a 1.2% rate of increase in the previous
FP, which was due to ADR having stopped seeking rent hikes for the four-month period from August through November
amid the COVID-19 pandemic.
However, despite that environment ADR has been able to increase rents given that it has continued to encounter strong
demand with respect to sufficiently large residential units, including residential units in Tokyo excluding the seven wardsof central Tokyo.
– Strengthening Competitiveness of Our Properties by Carrying out Value Enhancement Works –ADR conducts large-scale repairs of its properties on a scheduled basis in order to maintain functionality and to freshen
up their appearance. In addition, for individual units in properties that have recently had large-scale repairs, ADR carriesout value enhancement work to maintain and enhance competitiveness in the leasing market. These entail equipment
upgrades and floor plan changes and are implemented at the time when tenants are being replaced.
We conducted large-scale repairs on 10 properties during the FP at a cost of 899 million yen, excluding tax. Moreover,
we performed value enhancement work on 21 properties at a cost of 76 million yen, excluding tax, upon having resolved
delays in purchases of housing equipment and fixtures from China during the previous FP.
Of the residential units subject to value enhancement works, new rental contracts had been signed for 9 units as ofJanuary 31, 2021. Those units saw increases in rent of approximately 26.6% on average in comparison with rents underprevious contracts. As such, despite the COVID-19 pandemic our value enhancement works effectively contributed tointernal growth as has been the case during previous fiscal periods. Going forward, ADR will endeavor to further enhance
the competitive advantages of its properties through such measures.
2. External Growth– Improving Profitability through Property Replacement and Achieving More Stable Distributions –During this FP, we carried out property replacement which involved selling the two properties RESIDIA Yoyoginomori
and RESIDIA Kyodo (total acquisition price of 1.0 billion yen), and acquiring from third parties the two properties RESIDIA
Nakano-Fujimidai and RESIDIA Shirokitakoen-dori at a total acquisition price of 2.9 billion yen.
As a result, we realized gain on sales of around 0.29 billion yen and anticipates a 97 million yen increase in NOI(Note 4). We
have allocated most of the gain on sales to retained earnings with the aim of achieving more stable distributions going
forward.
Note 4. This amount has been calculated as the 44 million yen total amount of average actual NOI of assets disposed from FP 2018/1 through FP 2020/7, subtracted from the 141 million
yen total amount annualized NOI under the direct capitalization method and as listed in the acquisition appraisal report for assets acquired during the current FP.

3. Finance– Lowering the Average Interest Rate, Extending Initial Duration, and Increasing the Fixed Interest Ratio –ADR’s principal finance policy is to lower the interest rates of interest-bearing liabilities, to extend remaining durations,
to fix interest rates and to diversify maturities. Given that the COVID-19 pandemic had no effect on the lending attitudeof financial institutions to ADR during the FP, ADR accordingly managed to execute debt financing (including investment
corporation bonds) amounting to 14.9 billion yen in total (average interest rate of 0.36%(Note 5) and average initial durationof 8.7 years). As a result, ADR lowered the average interest rate to 0.69% as of the end of the FP, from 0.70% in theprevious FP. It also extended the remaining duration to 4.81 years from 4.75 years previously and increased its fixedinterest ratio(Note 6) to 98.4% from 97.4% previously. These initiatives in conjunction with achieving a lower average interest
rate have enabled ADR to further strengthen its financial foundation.

3

In addition, ADR has been continuing its efforts to strengthen its financial foundations, which has involved inviting The
Chiba Bank, Ltd. to become one of its lenders during the FP with the aim of achieving a lower average interest rate.
ADR’s credit ratings as of the end of the fiscal period (January 31, 2021) are as follows.

Credit rating agency

Coverage

RatingJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating

AA(Outlook: Stable)

Rating and Investment Information, Inc. (R&I)

Issuer rating

AA(Outlook: Stable)

Notes 5. The “average interest rate” is the weighted-average interest rate on loans and bonds as of their respective borrowing or issuance date, as of the end of the FP (July 31, 2020). If
the interest rates on the debts have been converted to fixed interest rates using swap agreements in order to hedge the risk of interest rate volatility, the fixed rates are used in
calculating the average.
6. The “fixed interest ratio” is the value obtained by calculating the balance of interest-bearing liabilities borrowed at fixed rates of interest (including interest-bearing liabilities
whose rate has been fixed by means of interest rate swap), and dividing it by the total balance of interest-bearing liabilities.

4. Sustainability– Sustainability Measures –ADR works together with the asset management company to realize a sustainable society and to increase its unit-holder
value. To that end, we engage in the following ESG (environmental, social and governance) initiatives.
• Environmental initiatives
Water-related disasters have been striking frequently and with increasing intensity due to climate change caused by
global warming. As such, ADR has identified risk of flooding and other such threats with respect to its properties,
and has furthermore set policies for taking action tailored to properties exposed to substantial risk of flooding in
partnership with specialists.
Under its energy efficiency measures, ADR has been converting common areas of its properties to LED lighting, andduring this FP, it has newly converted 7 properties to LED. As a result, ADR has completed LED conversion of 95
properties (constituting 35.1% of its portfolio) so far as of the end of the FP. In addition, ADR has been striving toinclude green lease clauses in its lease agreements, and as of the end of the FP has accordingly placed such clauses inlease agreements pertaining to 56.8% of its residential units out of the total number of rental units.
ADR has also acquired DBJ Green Building Certification with respect to 23 properties, constituting 30.1% of its portfolio
on the basis of total floor area, as of the end of the FP.
• Social initiatives
In response to the COVID-19 pandemic, we have been striving to ensure the health and safety of employees associatedwith the asset management company, and have accordingly been adopting work-from-home and staggered work hourarrangements since the previous FP. In addition, ADR held a walking event during the FP with the goal of maintaining
employee health and addressing their lack of physical exercise given that they have been increasingly working fromhome.
ADR has also launched a women’s empowerment project aiming to ensure that its workplace environments strike abalance between career and family life.
• Governance initiatives
ADR’s governance initiatives during the FP have involved drawing up its “Basic Policy on Political Contributions andElection Campaigns” in October 2020, with the aim of ensuring that its legal and regulatory compliance has a bearing
on fair and transparent government.
Since 2014, ADR has been consistently awarded the “Green Star” rating under the GRESB Real Estate Assessment,
which was developed mainly by European pension funds to evaluate the ESG performance of real estate companies
and funds. As mentioned previously, ADR was also selected as a Sector Leader this FP in recognition of it having
received top rankings in the Asian residential sector category, having been rated highly for factors that include
improvement in its percentage of data coverage with respect to electricity consumption and its efforts to embracegreen lease clauses.

4I. Fiscal Period Report
3 Management Policies and Challenges Going Forward
By diligently implementing the strategies outlined below, ADR aims to achieve solid EPU growth.
1. Internal Growth
In the rental housing market, we have been operating in a manner that places priority on maintaining occupancy rates
by easing leasing terms, given that we have been encountering an increasing number of move-outs relative to the samemonths of the previous year as a result of an excessive number of transfers out of Tokyo due to COVID-19. Meanwhile,
we will keep raising rents associated with residential units that hold promise in that regard.
And for value-enhancement works, we strive to maintain and improve the competitive strengths of our properties byidentifying changing needs through tenant satisfaction surveys and other such means, and reflecting those results insuch work.
2. External Growth
ADR aims to acquire properties that will contribute to improving the quality and profitability of its portfolio. This
will involve acquiring sponsor properties and utilizing information gained through sourcing initiatives of the asset
management company. In addition, ADR will keep tenant and geographic diversification in mind in undertaking
investment, and accordingly will not be susceptible to temporary market trends.
Since we are seeing many redevelopments actively taking place in central Tokyo, ADR is likely to receive proposals fromdevelopers for property replacements involving ADR’s properties located in proximity of those redevelopment site.
Amid the booming property market, we will positively consider selling such properties if the terms are favorable.
3. Finance Policy
With respect to its finance policy, ADR will continue procuring funds mainly through long-term and fixed-rate debts
while keeping a close eye on interest rate trends and striving for lower funding costs and diversified maturities. In sodoing, we will endeavor to establish financial foundations that can weather future market volatility.
4. Sustainability
When it comes to sustainability, ADR will continue to adopt measures to ensure energy efficiency of its properties andmeasures to reduce greenhouse gas emissions. In addition, ADR has expressed its support for the recommendations
issued by the Task Force on Climate-related Financial Disclosures (TCFD) on March 11, 2020, and will accordingly takesteps to achieve those recommended objectives.
5. Dividend Payout Policy
In accordance with its basic policy of realizing a stable distribution of earnings over the long term, ADR will fundamentally
pay out distributions of nearly the entire amount of earnings for the current FP. Meanwhile, ADR will continue to draw
down the reserves for temporary difference adjustments (RTA), which is based on retained earnings derived fromprofit from negative goodwill. It will draw down the RTA in equal amounts or more every FP within 50 years(Note 7), in
accordance with partial amendments of the “Regulations Concerning Accounting of Investment Corporations” andthe Investment Trusts Association of Japan’s “Regulations Concerning Real Estate Investment Trusts and Real Estate
Investment Corporations.”
Moreover, in principle, ADR is to maintain a DPU of at least 5,000 yen. To such ends, ADR is to additionally draw down
the reserve if the total amount of DPU and the fixed drawdown amount of the RTA for the given FP do not reach 5,000
yen(Note 8).
Furthermore, when temporary gains or losses arise due to gains or losses on sales of properties, ADR will stabilize
distributions by additionally drawing down the RTA while also retaining or drawing down gain on sales.
Notes 7. The RTA drawdown amount per FP is calculated by dividing by 100, the outstanding amount of the RTA that has been transferred from the reserve for dividends as of the endof the FP ended January 31, 2017 (50 year × 2 FPs = 100 periods). As of the date of this document, the RTA drawdown amount per FP is approximately 335 million yen. However,ADR may increase the amount of the drawdown indicated above in order to stabilize dividend levels.
		
8. This does not constitute a guarantee of actual amount of dividend payment. The actual amount of dividend payment will need to be decided ultimately by ADR’s Board of
Directors.

5

4 Equity Finances
The following are changes in paid-in capital and total number of units issued and outstanding over the last 5 years.
Total number of units issued and outstanding

Paid-in Capital (million yen)

Date

Remarks

September 23, 2016

Follow-on offering

47,5001,347,500

12,115127,052

1

October 19, 2016

Third-party allotment

2,500

1,350,000

637

127,6902September 26, 2019

Follow-on offering

33,0001,383,000

10,696

138,3863

October 21, 2019

Third-party allotment

2,000

1,385,000

648

139,034

4

Increase

Balance

Increase

Balance

Notes

Notes 1. ADR issued new units through public offering at an offer price of 263,445 yen (paid-in amount: 255,068 yen) per unit to procure funds for new property acquisitions and for otherpurposes.
2. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 255,068 yen per unit to procure funds for new property
acquisitions and for other purposes.
3. ADR issued new units through public offering at an offer price of 334,425 yen (paid-in amount: 324,135 yen) per unit to procure funds for new property acquisitions and for otherpurposes.
4. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 324,135 yen per unit to procure funds for new property
acquisitions and for other purposes.

Market Price of Units
The following are the highs and lows of ADR’s unit closing prices on the Tokyo Stock Exchange.
FP

17th FP

18th FP

19th FP

20th FP

21st FP

Period-end

January 2019

July 2019

January 2020

July 2020

January 2021

High327,500 yen

349,500 yen

367,000 yen

350,500 yen

342,000 yen

Low

281,100 yen

304,000 yen

331,000 yen

209,000 yen

290,000 yen

6I. Fiscal Period Report
Overview of the Investment Corporation
1 Major Unit-holders
The following are the major unit-holders as of January 31, 2021.
Name

Address

Number of units Percentage ofheld (units)
issued units (%)

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12 Harumi, Chuo-ku, Tokyo

330,372

23.85

The Master Trust Bank of Japan, Ltd (Trust
Account)

2-11-3 Hamamatsucho, Minato-ku, Tokyo

206,322

14.89

The Nomura Trust & Banking Co., Ltd. (Investment
Trust Account)

2-2-2 Otemachi, Chiyoda-ku, Tokyo

62,385

4.50

Custody Bank of Japan, Ltd. (Securities
Investment Trust Account)

1-8-12 Harumi, Chuo-ku, Tokyo

42,2563.05

ITOCHU Corporation

2-5-1 Kita-Aoyama, Minato-ku, Tokyo

34,8002.51

STICHTING PGGM DEPOSITARY PGGM LISTEDREAL ESTATE PF FUNDNOORDWEG NOORD 150,3704 JG ZEIST;NETHERLANDS

29,8892.15

Mizuho Securities Co., Ltd.

1-5-1, Otemachi, Chiyoda-ku, Tokyo

20,544

1.48

STATE STREET BANK WEST CLIENT-TREATY

1776 HERITAGE DRIVE, NORTH QUINCY,
MA 02171, U.S.A.

17,772

1.28

Custody Bank of Japan, Ltd. (Money Trust
Taxation Account)

1-8-12 Harumi, Chuo-ku, Tokyo

14,5001.04

JAPAN SECURITIES FINANCE CO., LTD

1-2-10 Nihonbashi-Kayabacho, Chuo-ku,
Tokyo13,627

0.98

772,467

55.77

Total

Note “Percentage of issued units” (number of units held as a percentage of total number of units issued and outstanding) is rounded down to two decimal places.

2 Directors and Independent Auditor
1. The executive director, supervisory directors, and independent auditor as of January 31, 2021, are as follows.
Title

Name

Primary concurrent positions

Total amount of compensation
during the FP (thousand yen)

Executive
Director

Wataru Higuchi

Senior partner, Ootemon Law and Accounting

2,700Supervisory
Director

Yoshitsugu Oba

–

1,800

Supervisory
Director

Satoru Kobayashi

Independent
Auditor

Deloitte Touche Tohmatsu LLC

President, Esperanza Law Office

1,800
19,000 (Note)

Note: The compensation paid to the independent auditor includes compensation (2,500 thousand yen) for services other than those prescribed in Article 2, Paragraph 1 of the Certified
Public Accountants Act.

2. Policy for dismissal or refusal of reappointment of independent auditor
The board of directors of ADR shall consider the dismissal of independent auditors pursuant to the provisions of the Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951; as amended), and consider refusal of reappointment
by comprehensively taking into account the quality of the audit, audit compensation, and other factors.

7

3 Asset Management Company, Asset Custodian, and Administrative AgentsThe following is the list of the asset management company, asset custodian, and administrative agents as of January 31, 2021.
Delegation

Name

Asset management company

AD Investment Management Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank Limited
Management of register of unit-holders

Mizuho Trust & Banking Co., Ltd.

Management of special accounts

Mizuho Trust & Banking Co., Ltd.

Accounting, taxation

Sumitomo Mitsui Trust Bank Limited
AD Investment Management Co., Ltd.

Administrative agent

Institutional operations

AD Investment Management Co., Ltd.
MUFG Bank, Ltd.

Administration of investment corporation
bonds

Sumitomo Mitsui Trust Bank Limited
Mizuho Bank, Ltd.
DBJ Securities Co., Ltd.

8

I. Fiscal Period Report
Real Estate Portfolio
The following lists real estates held by ADR as of January 31, 2021.

Propertyno.

Name of real estate

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,409

3,870

1

93.9 91,778

0.5

193.6 92,264

0.6

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,391

2,440

1

100.0 47,2560.3

1100.0 47,256

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,140

1,360

1

95.7 37,4460.2

196.8 37,469

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,119

1,570

1

90.7 37,3330.2

187.8 37,923

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,026

2,860

1

100.0 76,582

0.5

195.4 77,328

0.5

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,039

1,370

1

95.4 32,443

0.2

1

98.1 32,810

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,032

1,440

1

100.0 34,336

0.2

1

94.1 34,394

0.2

P-14 RESIDIA Kita-Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

2,449

3,090

1

100.0 76,077

0.5

1100.0 76,079

0.5

P-16 RESIDIA Shinjuku-East III

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

699

1,040

1

87.5 25,4980.2

1100.0 25,638

0.2

P-19 Leopalace Udagawacho Mansion Shibuya-ku, Tokyo

Beneficiary interests
in trust

557

801

1

100.0 17,944

0.1

1100.0 17,944

0.1

P-21

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,363

2,030

1

95.2 48,693

0.3

1

92.1 46,388

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

917

1,300

1

90.2 32,683

0.2

1

92.1 32,011

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,354

2,270

1

99.0 60,553

0.4

195.9 61,156

0.4

Minato-ku, Tokyo

Beneficiary interests
in trust

878

1,180

1

92.1 29,034

0.2

1

92.1 29,940

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

552

778

1

89.7 21,305

0.1

192.0 20,958

0.1

P-26 RESIDIA Meguro

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

721

785

1

96.6 20,684

0.1

1100.0 20,751

0.1P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,472

2,320

1

96.5 56,687

0.3

191.7 55,881

0.3P-30 Pianetta Shiodome

Minato-ku, Tokyo

Beneficiary interests
in trust

1,745

2,420

1

93.3 62,8660.4

194.7 62,467

0.4

Setagaya-ku, Tokyo

Beneficiary interests
in trust

320

413

1

95.1 11,2110.1

195.1 11,119

0.1

Shibuya-ku, Tokyo

Beneficiary interests
in trust

304

401

1

100.0 11,076

0.1

192.7 10,872

0.1P-33 RESIDIA Nishi-Shinjuku

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

337

446

1

100.0 12,605

0.1

1100.0 12,570

0.1P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

841

1,220

1

85.7 33,249

0.2

194.0 33,073

0.2

P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,191

3,040

1

92.8 71,033

0.4

196.2 71,735

0.4

P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,062

1,600

1

92.7 43,284

0.3

191.4 41,601

0.2

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,867

2,580

1

97.6 69,615

0.4

195.9 68,104

0.4

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,125

1,470

1

95.6 39,218

0.2

192.6 36,957

0.2

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,212

1,910

1

100.0 44,727

0.3

1100.0 43,608

0.3P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,074

1,710

1

98.5 41,916

0.2

195.4 40,820

0.2P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

844

1,230

1

96.3 31,931

0.2

192.7 30,773

0.2P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

967

1,440

1

89.8 36,020

0.2

1

97.1 35,444

0.2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,002

1,430

1

100.0 36,052

0.2

1

97.1 36,059

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,195

3,170

1

91.7 77,273

0.5

198.6 79,636

0.5

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,498

4,830

1

90.4 106,951

0.6

1

96.1 104,975

0.6

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,120

1,650

1

93.8 42,4480.3

186.5 40,444

0.2

P-2
P-3
P-4
P-7
P-9

RESIDIA Shimazuyama
RESIDIA Nakameguro
RESIDIA Setagaya-Tsurumaki
RESIDIA Ikejiriohashi
RESIDIA Kudanshita

P-10 RESIDIA Hatagaya
P-13

RESIDIA Sakurajosui

RESIDIA Shinjuku-East II

P-22 RESIDIA Shinjuku-East
P-23 RESIDIA Kanda-Iwamotocho
P-24 RESIDIA Azabujuban II

P-31

RESIDIA Komazawadaigaku

P-32 RESIDIA Yoyogi

9Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Propertyno.

Name of real estate

Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Minato-ku, Tokyo

Beneficiary interests
in trust

6,425

9,460

1

94.4 217,809

1.3

195.8 221,082

1.3

Shibuya-ku, Tokyo

Beneficiary interests
in trust

2,000

2,510

1

88.6 59,479

0.4

197.2 59,582

0.4

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,368

3,560

1

99.3 80,643

0.5

193.3 79,469

0.5Minato-ku, Tokyo

Beneficiary interests
in trust

3,537

5,350

1

91.7 135,059

0.8

193.3 131,705

0.8

Shinagawa-ku, Tokyo

Real estate

14,477 20,500

198.5 529,861

3.2

197.0 537,355

3.2

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,516

3,660

1

94.5 91,015

0.5

188.5 87,257

0.5

P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,510

2,390

1

93.1 60,092

0.4

1

97.1 61,128

0.4

P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,332

1,730

1

97.1 43,2170.3

193.6 43,410

0.3P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,909

2,430

1

92.3 61,064

0.4

195.5 57,887

0.3

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

6,060

8,830

1

92.2 204,464

1.2

193.0 206,293

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,197

1,790

1

93.5 43,172

0.3

197.4 40,795

0.2P-64 RESIDIA Nakanobu

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,718

2,690

1

93.7 64,562

0.4

193.9 66,004

0.4

P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,524

2,050

1

95.0 51,690

0.3

193.6 49,566

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,649

2,220

1

98.0 53,075

0.3

193.7 52,097

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,069

1,630

1

94.1 42,297

0.3

195.9 40,664

0.2

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,195

1,660

1

97.1 41,012

0.2

196.9 42,362

0.3

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,669

2,410

1

97.0 58,746

0.4

185.1 57,204

0.3

P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

854

1,220

1

92.5 28,172

0.2

192.5 27,486

0.2

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

955

1,290

1

95.0 32,6960.2

190.0 32,855

0.2P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,285

6,880

1

96.9 180,605

1.1

198.1 184,095

1.1

P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

868

1,100

1

100.0 30,479

0.2

195.0 30,579

0.2

Meguro-ku, Tokyo

Beneficiary interests
in trust

4,972

6,640

1

97.5 158,080

0.9

195.0 157,322

0.9

Minato-ku, Tokyo

Beneficiary interests
in trust

9,044 13,400

197.3 325,726

1.9

196.2 329,810

2.0P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

825

1,250

1

94.6 32,852

0.2

179.5 31,572

0.2

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,338

1,850

1

92.3 46,1390.3

192.3 45,735

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

799

1,330

1

100.0 28,095

0.2

1100.0 28,095

0.2

P-86 RESIDIA Shibaura KAIGAN

Minato-ku, Tokyo

Beneficiary interests
in trust

2,258

3,300

1

97.4 89,243

0.5

198.6 88,356

0.5P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,925

2,840

1

97.4 68,1550.4

196.4 64,895

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,506

2,020

1

96.1 51,1850.3

197.5 51,476

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,452

5,270

1

93.0 126,726

0.8

190.5 114,341

0.7

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,604

5,110

1

98.6 123,574

0.7

1

97.1 123,792

0.7

Meguro-ku, Tokyo

Beneficiary interests
in trust

936

1,560

1

100.0 35,453

0.2

196.7 34,726

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

767

1,060

1

97.9 26,445

0.2

1100.0 26,924

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,199

2,010

1

91.9 45,685

0.3

198.4 44,994

0.3

P-94 RESIDIA Omori II

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,559

2,490

1

95.9 58,540

0.3

199.0 56,557

0.3

1,436

2,290

1

100.0 52,701

0.3

182.2 51,440

0.3

3,730

4,880

1

95.0 117,878

0.7

1

94.1 117,022

0.7P-50 RESIDIA Nishi-Azabu
P-51

RESIDIA Daikanyama

P-52 RESIDIA Ichigaya
RESIDIA
P-53
Roppongi-Hinokichokoen
RESIDIA TOWER
P-55
Meguro-Fudomae

P-72 RESIDIA Mejiro-Otomeyama

P-75 RESIDIA Yutenji
P-76

Park Tower Shibaura Bayward
Urban Wing

P-85 RESIDIA Komazawa

P-90 RESIDIA Sasazuka II
P-91 RESIDIA Meguro III
P-92 RESIDIA Jiyugaoka II

P-95 RESIDIA Shirokane-Takanawa

Minato-ku, Tokyo

Beneficiary interests
in trust

P-96 RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

10

I. Fiscal Period Report

Propertyno.

Name of real estate

P-97 RESIDIA Nakameguro II
P-98 Artis Court Minamiaoyama

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,095

1,670

1

96.0 36,348

0.2

191.9 35,634

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

1,712

2,080

1

100.0 56,855

0.3

191.7 56,683

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,037

2,960

1

95.4 82,878

0.5

199.2 83,220

0.5

RESIDIA
P-100
Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

931

1,260

1

100.0 30,307

0.2

195.8 30,717

0.2

P-101 RESIDIA Ebisu III

Shibuya-ku, Tokyo

Real estate

647

857

1

91.9 20,801

0.1

1100.0 20,375

0.1

P-102 RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

710

1,060

1

97.5 26,246

0.2

192.5 25,360

0.2

P-103 RESIDIA Minami Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,177

1,660

1

100.0 39,1460.2

195.7 38,379

0.2

P-104 Chester Court Ochanomizu

P-99 RESIDIA Yotsuya Sanchome

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,153

4,250

1

91.2 106,585

0.6

192.3 104,965

0.6

RESIDIA
P-105
Kanda-Iwamotocho II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,284

1,850

1

94.0 43,2050.3

194.0 42,903

0.3

P-106 RESIDIA Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

981

1,410

1

93.0 34,2650.2

191.5 32,966

0.2

P-107 RESIDIA Yoyogi II

Shibuya-ku, Tokyo

Real estate

889

1,050

1

93.1 25,0940.1

185.9 23,045

0.1

P-108 RESIDIA Nakanobu II

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

925

1,210

1

98.0 29,536

0.2

197.8 27,334

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

830

1,110

1

97.3 25,701

0.2

196.8 25,608

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,170

1,470

1

91.5 32,699

0.2

1100.0 34,038

0.2

P-111 RESIDIA Ichigaya II

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,990

2,290

1

87.8 57,076

0.3

190.9 54,418

0.3

P-112 RESIDIA Ichigaya-Sadohara

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

4,247

5,060

1

89.8 137,834

0.8

196.3 134,540

0.8

P-113 RESIDIA Nishi-Koyama

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,724

2,180

1

97.0 50,987

0.3

197.3 49,499

0.3

P-114 RESIDIA Minami-Shinagawa II

Shinagawa-ku, Tokyo

Real estate

2,219

2,650

1

100.0 33,854

0.2

197.1 59,537

0.4

P-115 RESIDIA Kagurazaka II

Shinjuku-ku, Tokyo

Real estate

1,156

1,450

1

100.0 21,261

0.1

197.1 30,972

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,571

1,900

1

93.6 13,936

0.1

181.5 38,976

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,492

2,960

1

94.4 69,210

0.4

192.9 67,618

0.4

Ota-ku, Tokyo

Beneficiary interests
in trust

2,074

4,020

1

93.2 102,912

0.6

198.9 99,836

0.6

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,413

2,020

1

94.0 52,165

0.3

198.6 52,802

0.3

1,514

2,520

1

94.0 60,072

0.4

198.8 58,660

0.4

P-109 RESIDIA Ochanomizu II
P-110 RESIDIA Mishuku

P-116 RESIDIA Otemachi-Kita
C-1
C-2
C-3

RESIDIA Mitsukoshimae
RESIDIA Kamata
RESIDIA Ikebukuro

C-4

RESIDIA Bunkyo-Hongo

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

C-5

RESIDIA Asakusabashi

Taito-ku, Tokyo

Beneficiary interests
in trust

898

1,620

1

95.3 40,247

0.2

195.8 40,947

0.2

Nerima-ku, Tokyo

Beneficiary interests
in trust

881

1,140

1

94.7 35,2740.2

195.8 34,977

0.2

Taito-ku, Tokyo

Beneficiary interests
in trust

2,749

4,250

1

95.3 107,350

0.6

199.3 102,866

0.6

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,488

2,210

1

95.6 54,1890.3

196.7 50,508

0.3

C-6
C-7
C-8

Maison Eclairee Ekoda
RESIDIA Ueno-Okachimachi
RESIDIA Bunkyo-Hongo II

C-9

RESIDIA Ryogoku

Sumida-ku, Tokyo

Beneficiary interests
in trust

820

1,380

1

96.9 33,1430.2

193.3 34,555

0.2

C-12

RESIDIA
Nihonbashi-Ningyocho II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,866

4,460

1

96.4 103,174

0.6

197.6 101,901

0.6

C-13

RESIDIA Omori-Higashi

Ota-ku, Tokyo

Beneficiary interests
in trust

1,765

2,290

1

95.8 58,857

0.4

191.6 57,159

0.3

Sumida-ku, Tokyo

Beneficiary interests
in trust

3,902

5,200

1

93.0 123,767

0.7

198.1 122,001

0.7

Taito-ku, Tokyo

Beneficiary interests
in trust

781

1,050

1

96.6 29,3200.2

196.3 28,323

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,775

2,790

1

95.4 65,2070.4

194.0 67,590

0.4

Toshima-ku, Tokyo

Beneficiary interests
in trust

518

774

1

90.3 22,355

0.1

1100.0 22,025

0.1

Nakano-ku, Tokyo

Beneficiary interests
in trust

339

562

1

100.0 16,618

0.1

196.7 16,036

0.1

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

933

1,350

1

98.5 36,2050.2

1100.0 37,362

0.2

C-15

RESIDIA Kinshicho

C-16 RESIDIA Negishi
C-17

RESIDIA Shinkawa

C-18 RESIDIA Kamiikebukuro
C-19 RESIDIA Shin-nakano
C-21

11

Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Bunkyo-Yushima II

Propertyno.

Name of real estate

C-22 RESIDIA Tsukiji

Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2
Real estate

1,333

2,180

1

90.1 51,1790.3

195.8 50,640

0.3

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,756

2,240

1

97.6 64,676

0.4

195.4 63,703

0.4

Ota-ku, Tokyo

Beneficiary interests
in trust

1,125

1,830

1

98.0 48,457

0.3

1100.0 48,553

0.3

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

527

823

1

93.3 21,916

0.1

197.2 21,324

0.1

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,856

2,980

1

92.6 69,1090.4

188.4 69,531

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

755

1,090

1

100.0 33,7060.2

1100.0 33,726

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

951

1,320

1

94.3 36,975

0.2

194.7 35,663

0.2

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

985

1,410

1

92.6 37,2350.2

1100.0 38,039

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,245

1,890

1

97.7 48,239

0.3

195.0 46,922

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,272

3,220

1

96.5 84,637

0.5

1

93.1 84,594

0.5

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,182

2,960

1

96.2 77,585

0.5

196.3 76,733

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,999

4,550

1

94.9 121,712

0.7

198.7 120,837

0.7

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

641

1,030

1

100.0 28,147

0.2

197.1 27,329

0.2

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

971

1,520

1

95.0 39,939

0.2

1

98.1 38,984

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

356

479

1

100.0 14,416

0.1

196.7 13,750

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

512

919

1

81.6 22,2980.1

185.6 17,788

0.1

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,317

1,950

1

90.0 46,175

0.3

193.4 47,757

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

837

1,230

1

100.0 38,656

0.2

192.5 38,993

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,229

1,750

1

88.9 43,529

0.3

1100.0 44,918

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,731

2,340

1

98.7 61,270

0.4

193.6 60,586

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,172

1,570

1

96.6 45,2750.3

196.7 44,155

0.3

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,249

1,900

1

97.2 44,396

0.3

1

92.1 48,013

0.3

Toshima-ku, Tokyo

Beneficiary interests
in trust

5,920

8,780

1

96.2 238,266

1.4

196.3 240,646

1.4

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

629

830

1

100.0 27,741

0.2

1100.0 27,183

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

C-23 RESIDIA Sasazuka
C-25 RESIDIA Tamagawa
C-26 RESIDIA Korakuen
C-27 RESIDIA Ginza-Higashi

C-31

C-35 RESIDIA Bunkyo-Otowa
C-36 RESIDIA Bunkyo-Sengoku
C-37 RESIDIA Bunkyo-Yushima
C-38 RESIDIA Ikegami

C-45 RESIDIA Shinkawa II
C-46 RESIDIA Mejiro

Chuo-ku, Tokyo

Real estate

4,947

7,960

1

97.2 202,787

1.2

194.7 200,731

1.2

Suginami-ku, Tokyo

Beneficiary interests
in trust

3,471

6,050

1

96.8 151,733

0.9

192.4 150,618

0.9C-50 RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

Beneficiary interests
in trust

819

1,310

1

100.0 29,739

0.2

1100.0 29,739

0.2

RESIDIA Kiba

Koto-ku, Tokyo

Beneficiary interests
in trust

1,812

3,380

1

99.4 85,671

0.5

1

96.1 81,594

0.5

C-52 RESIDIA Bunkyo-Yushima III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,057

1,710

1

96.9 38,529

0.2

1100.0 39,902

0.2

RESIDIA
C-53
Bunkyo- Honkomagome

Bunkyo-ku, Tokyo

Real estate

2,204

3,320

1

98.6 85,928

0.5

196.8 84,120

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,383

4,120

1

93.3 94,636

0.6

190.7 91,417

0.5

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

Beneficiary interests
in trust

2,244

4,050

1

97.0 168,682

1.0

196.2 171,246

1.0C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

C-49 RESIDIA Suginami-Honancho

C-51

C-57 RESIDIA Monzennakacho
C-58 RESIDIA Ochanomizu
C-59 RESIDIA Omori
C-60 RESIDIA Nakamurabashi

Real estate

1,757

2,600

1

99.0 64,1410.4

194.4 62,926

0.4

Koto-ku, Tokyo

Beneficiary interests
in trust

1,004

1,540

1

89.7 36,779

0.2

1

91.1 35,918

0.2

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,966

3,300

1

96.7 78,733

0.5

195.4 79,427

0.5

Ota-ku, Tokyo

Beneficiary interests
in trust

1,086

1,670

1

97.4 42,888

0.3

198.7 42,656

0.3

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,000

1,530

1

98.7 40,069

0.2

1

94.6 39,585

0.2

12

I. Fiscal Period Report

Propertyno.

Name of real estate

C-61 RESIDIA Kachidoki
C-62 RESIDIA Bunkyo-Otowa II
C-63 RESIDIA Kinshicho III
C-64 RESIDIA Kamata III

Location

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,702

2,820

1

96.7 67,879

0.4

195.2 65,451

0.4

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,228

3,480

1

96.3 85,1050.5

196.3 83,509

0.5

Koto-ku, Tokyo

Beneficiary interests
in trust

624

938

1

100.0 27,389

0.2

1100.0 25,414

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

906

1,400

1

95.7 35,3160.2

195.0 34,207

0.2

7,705 13,100

198.4 751,264

4.5

196.9 750,894

4.5

C-65 RESIDIA TOWER Kamiikebukuro Toshima-ku, Tokyo
C-66 RESIDIA Takashimadaira

Itabashi-ku, Tokyo

C-67 RESIDIA Shimura-Sakaue

Beneficiary interests
in trust
Real estate

509

656

1

100.0 16,191

0.1

1100.0 16,193

0.1

Itabashi-ku, Tokyo

Real estate

596

755

1

100.0 18,084

0.1

1100.0 18,084

0.1

C-68 RESIDIA Shimura-Sakaue II

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,107

1,500

1

100.0 36,296

0.2

1100.0 36,298

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

476

551

1

100.0 13,617

0.1

1100.0 13,608

0.1

C-70 RESIDIA Ikebukuro West

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,079

1,480

1

98.8 45,260

0.3

196.8 43,790

0.3

Koto-ku, Tokyo

Beneficiary interests
in trust

1,237

1,770

1

90.9 44,757

0.3

193.2 41,446

0.2

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,159

1,540

1

94.0 45,460

0.3

197.1 46,373

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

1,802

2,340

1

100.0 58,803

0.4

192.2 57,059

0.3

Nerima-ku, Tokyo

Beneficiary interests
in trust

500

714

1

100.0 18,2250.1

1100.0 18,060

0.1

C-75 RESIDIA Higashi-Nihonbashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

389

562

1

100.0 14,926

0.1

192.7 15,500

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

685

918

1

95.3 22,1420.1

192.4 23,712

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, Tokyo

C-71

RESIDIA Ojima

C-72 RESIDIA Machiya
C-73 RESIDIA Ueno-Ikenohata
C-74 RESIDIA Nerima

Real estate

478

607

1

100.0 13,620

0.1

1100.0 13,620

0.1

1,333

1,670

1

94.2 42,735

0.3

196.5 44,897

0.3

C-78 RESIDIA Minamiyukigaya

Ota-ku, Tokyo

Beneficiary interests
in trust

C-79 RESIDIA Akihabara

Taito-ku, Tokyo

Beneficiary interests
in trust

973

1,420

1

100.0 36,676

0.2

197.0 35,730

0.2

Sumida-ku, Tokyo

Beneficiary interests
in trust

869

1,280

1

100.0 33,502

0.2

198.4 32,750

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

1,393

1,910

1

91.0 43,402

0.3

198.6 42,513

0.3

C-82 RESIDIA Nihonbashi-Bakurocho II Chuo-ku, Tokyo

Beneficiary interests
in trust

1,982

2,750

1

94.6 59,404

0.4

195.2 59,396

0.4

RESIDIA Nihonbashi-Bakurocho
C-83
III

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,832

2,610

1

95.8 64,904

0.4

193.6 62,968

0.4

C-84 RESIDIA Bunkyo-Hongo III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,666

2,170

1

89.5 48,737

0.3

197.5 50,457

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

4,677

6,020

1

97.2 141,730

0.8

195.4 139,038

0.8

Koto-ku, Tokyo

Beneficiary interests
in trust

3,027

3,800

1

95.5 88,409

0.5

194.9 85,702

0.5C-87 RESIDIA Koenji

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,399

1,780

1

97.6 40,648

0.2

198.5 41,576

0.2

C-88 RESIDIA Kamata V

Ota-ku, Tokyo

Real estate

2,342

2,800

1

92.4 66,761

0.4

1

90.1 65,344

0.4

C-89 RESIDIA Kamata IV

Ota-ku, Tokyo

Real estate

3,354

4,030

1

99.4 102,166

0.6

189.4 87,550

0.5

C-90 RESIDIA Ikegami II

Ota-ku, Tokyo

Beneficiary interests
in trust

1,111

1,330

1

100.0 32,019

0.2

1100.0 34,834

0.2

C-91 RESIDIA Sasazuka III

Suginami-ku, Tokyo

Real estate

1,426

1,670

1

91.4 26,9110.2

188.9 37,605

0.2

Nakano-ku, Tokyo

Beneficiary interests
in trust

1,795

1,840

-

-

-

1

80.9 12,691

0.1

Kawaguchi-shi,
Saitama

Beneficiary interests
in trust

676

756

1

100.0 28,730

0.2

194.9 29,455

0.2

969

1,320

1

100.0 43,5680.3

1100.0 43,461

0.3C-80 RESIDIA Asakusa-Azumabashi
C-81 RESIDIA Omori III

C-85 RESIDIA Shin-Okachimachi II
C-86 RESIDIA Kameido

C-92 RESIDIA Nakano-Fujimidai
S-2

Chester House Kawaguchi-

S-4

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

S-5

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,704

2,240

1

99.2 68,660

0.4

196.9 66,550

0.4

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,033

1,320

1

96.6 35,060

0.2

1

95.1 35,003

0.2

Wako-shi, Saitama

Beneficiary interests
in trust

636

770

1

100.0 26,182

0.2

1100.0 26,182

0.2

S-7
S-11

13

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Chofu
Tokyo Student-House WAKO

Propertyno.

Name of real estate

Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Kokubunji

Kokubunji-shi, Tokyo

Beneficiary interests
in trust

477

694

1

100.0 20,468

0.1

1100.0 19,764

0.1

RESIDIA Yokohama-Kannai

Yokohama-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Kawasaki-shi,
Kanagawa

Beneficiary interests
in trust

1,512

1,960

1

98.2 54,267

0.3

191.6 52,382

0.3

Beneficiary interests
in trust

687

930

1

100.0 26,593

0.2

1100.0 27,669

0.2Real estate

1,449

2,100

1

98.0 59,1060.4

197.0 58,326

0.3

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,456

3,510

1

100.0 102,2170.6

198.9 100,999

0.6

Musashino-shi,Tokyo

Beneficiary interests
in trust

1,407

1,900

1

95.9 51,1040.3

198.0 51,110

0.3

Pacific Royal Court Minatomirai
Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

10,806 16,500

1100.0 575,050

3.4

1100.0 566,209

3.4

S-22 Life & Senior House Kohoku II

Yokohama-shi,
Kanagawa
Nishi-Tokyo-shi,
Tokyo

Real estate

1,627

2,330

1

100.0 70,812

0.4

1100.0 71,047

0.4

Beneficiary interests
in trust

730

1,200

1

100.0 32,7600.2

1100.0 32,760

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

1,989

3,160

1

100.0 89,735

0.5

192.0 81,160

0.5

Ichikawa-shi, Chiba

Beneficiary interests
in trust

849

1,190

1

98.8 35,473

0.2

195.3 35,448

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

765

1,160

1

98.6 33,018

0.2

197.3 33,417

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

773

1,120

1

100.0 34,363

0.2

198.7 33,644

0.2

S-28 RESIDIA Kawasaki

Beneficiary interests
in trust

1,553

2,460

1

99.0 65,374

0.4

192.7 63,368

0.4

Beneficiary interests
in trust

937

1,170

1

100.0 45,0000.3

1100.0 45,000

0.3

Beneficiary interests
in trust

1,103

1,410

1

100.0 43,1120.3

1100.0 43,112

0.3

Beneficiary interests
in trust

751

1,020

1

100.0 34,750

0.2

1100.0 34,948

0.2

S-32 RESIDIA Hon-Atsugi

Kawasaki-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Sagamihara-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Atsugi-shi,
Kanagawa

Real estate

618

774

1

98.1 25,395

0.2

192.5 23,592

0.1

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

657

742

1

100.0 20,1270.1

1100.0 23,277

0.1

Funabashi-shi, Chiba

Beneficiary interests
in trust

600

626

1

97.7 18,455

0.1

195.3 18,230

0.1

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,462

1,760

1

100.0 60,749

0.4

1100.0 60,761

0.4

Nagoya-shi, Aichi

Beneficiary interests
in trust

945

1,450

1

91.5 46,053

0.3

195.7 43,575

0.3

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,267

4,640

1

100.0 125,615

0.7

1100.0 125,679

0.8Real estate

1,206

1,600

1

98.8 53,562

0.3

195.7 52,595

0.3

S-12
S-14
S-15

RESIDIA Okurayama

S-16 RESIDIA Musashikosugi
S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

S-23 College Court Tanashi
S-24 RESIDIA Urayasu
S-25 RESIDIA Minami-Gyotoku
S-26 RESIDIA Urayasu II

S-29 Cocofump Hiyoshi
S-30 RESIDIA Sagamihara
S-31

RESIDIA Yokohama-Bashamichi

S-34 RESIDIA Funabashi IV
R-2
R-4
R-8

RESIDIA Imadegawa
RESIDIA Higashizakura
RESIDIA Kobe Port Island

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

799

1,220

1

97.2 36,387

0.2

193.2 35,144

0.2

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,946

3,210

1

96.4 88,005

0.5

196.0 89,717

0.5

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

829

1,020

1

95.2 37,478

0.2

194.2 35,555

0.2

R-14 RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

999

1,700

1

99.1 48,945

0.3

191.7 46,351

0.3

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,823

2,750

1

97.7 82,1500.5

196.9 79,214

0.5

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,068

3,480

1

93.3 95,091

0.6

194.8 93,352

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,067

1,540

1

98.4 66,1890.4

197.5 66,660

0.4

R-19 RESIDIA Tenjin-Minami

Beneficiary interests
in trust

880

1,210

1

87.5 39,018

0.2

196.4 39,192

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

299

432

1

92.3 15,783

0.1

197.4 16,044

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

576

840

1

95.6 26,622

0.2

197.4 27,803

0.2

R-24 RESIDIA Minami-Ichijo

Sapporo-shi,
Hokkaido

Real estate

1,396

2,130

1

98.2 77,567

0.5

194.3 74,452

0.4

R-11

14

I. Fiscal Period Report

Propertyno.

Name of real estate

R-26 RESIDIA Kita-Sanjo

Sapporo-shi,
Hokkaido
Sapporo-shi,
HokkaidoR-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

723

917

1

94.3 31,6130.2

1100.0 32,907

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

704

808

1

95.9 32,9750.2

1100.0 33,964

0.2

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,180

4,520

1

88.4 142,0340.8

197.0 145,605

0.9

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

914

1,300

1

90.4 43,552

0.3

192.9 43,346

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

697

939

1

100.0 30,019

0.2

1100.0 29,477

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,780

2,710

1

89.7 91,1000.5

195.1 89,613

0.5

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,046

1,700

1

96.0 46,922

0.3

194.7 45,559

0.3

Nagoya-shi, Aichi

Beneficiary interests
in trust

612

954

1

100.0 28,719

0.2

195.2 28,309

0.2

Sendai-shi, Miyagi

Beneficiary interests
in trust

482

778

1

100.0 25,703

0.2

1100.0 23,152

0.1

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

452

696

1

100.0 21,909

0.1

1100.0 21,947

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,337

2,000

1

96.2 59,426

0.4

198.4 58,069

0.3

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

962

1,490

1

95.2 42,782

0.3

193.3 43,261

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

979

1,330

1

95.3 38,2120.2

197.5 37,861

0.2

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,146

3,290

1

94.3 106,344

0.6

193.4 103,777

0.6

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,103

1,720

1

98.4 54,089

0.3

193.8 54,571

0.3

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,477

3,850

1

96.9 112,413

0.7

196.4 111,618

0.7

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

965

1,200

1

93.0 41,645

0.2

190.0 40,913

0.2

R-46 RESIDIA Shinsaibashi West

Osaka-shi, Osaka

Beneficiary interests
in trust

1,821

2,630

1

98.4 73,920

0.4

199.0 72,857

0.4

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

908

1,260

1

91.1 39,804

0.2

197.8 39,321

0.2

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,353

2,270

1

96.3 75,765

0.5

1

95.1 73,290

0.4

R-49 RESIDIA Gosho-Higashi

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,160

1,740

1

93.5 47,034

0.3

1

93.1 46,267

0.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

833

1,140

1

100.0 36,1940.2

198.7 34,910

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,121

5,490

1

96.7 158,158

0.9

1

97.1 158,135

0.9

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,671

2,110

1

85.8 70,212

0.4

1

92.1 65,053

0.4

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,854

3,700

1

93.2 120,276

0.7

193.4 115,882

0.7

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,676

2,550

1

95.7 83,897

0.5

198.5 82,757

0.5

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,008

1,410

1

96.9 41,898

0.2

196.6 43,070

0.3

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,051

1,690

1

91.2 52,997

0.3

198.3 52,416

0.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

542

900

1

95.2 30,114

0.2

194.4 29,061

0.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

996

1,430

1

98.8 49,084

0.3

194.7 48,755

0.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,681

3,930

1

95.5 109,0000.7

196.7 105,674

0.6

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

797

1,090

1

100.0 35,0320.2

1100.0 35,093

0.2

R-61 RESIDIA Kyoto Okazaki

Kyoto-shi, Kyoto

Beneficiary interests
in trust

230

334

1

100.0

9,622

0.1

1

100.0

9,616

0.1

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,053

1,390

1

100.0 42,7380.3

1100.0 43,095

0.3

R-25 RESIDIA Odori-Nishi

R-36 RESIDIA Hisaya-Oodori
R-37 RESIDIA Sendai-Miyamachi

R-43 RESIDIA Tsurumai

R-52 RESIDIA TOWER Sendai
R-53 RESIDIA Higashizakura II
R-54 RESIDIA Tsutsujigaoka
R-55 RESIDIA Kobe-Motomachi
R-56 RESIDIA Sendai-Honcho

15

Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2
Real estate

1,150

1,520

1

96.0 59,1290.4

192.8 57,789

0.3Real estate

1,074

1,480

1

94.6 48,069

0.3

195.2 47,036

0.3

Propertyno.

Name of real estate

Location

20th (Feb. 1, 2020 ~ Jul. 31, 2020)
21st (Aug. 1, 2020 ~ Jan. 31, 2021)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2
Beneficiary interests
in trust

525

750

1

94.5 26,476

0.2

190.7 25,194

0.2

Beneficiary interests
in trust

483

608

1

100.0 19,962

0.1

1100.0 19,633

0.1

Beneficiary interests
in trust

372

545

1

91.7 20,253

0.1

194.9 20,541

0.1

Beneficiary interests
in trust

1,103

1,380

1

97.7 42,1450.3

196.6 41,837

0.3

Beneficiary interests
in trust

1,111

1,410

1

98.9 42,793

0.3

198.9 42,680

0.3

Beneficiary interests
in trust

1,335

1,740

1

99.1 52,782

0.3

197.7 51,208

0.3

R-69 RESIDIA Kego

Sapporo-shi,
Hokkaido
Fukuoka-shi,
Fukuoka
Sapporo-shi,
Hokkaido
Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

810

1,220

1

100.0 37,795

0.2

195.2 35,638

0.2

R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

915

1,160

1

91.7 34,1800.2

196.3 33,325

0.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

912

949

1

89.6 27,942

0.2

192.2 27,382

0.2

Suita-shi, Osaka

Beneficiary interests
in trust

1,512

1,750

1

100.0 45,927

0.3

1100.0 45,939

0.3

R-73 RESIDIA Senri-Banpakukoen

Suita-shi, Osaka

Beneficiary interests
in trust

2,198

2,370

1

100.0 63,803

0.4

1100.0 62,054

0.4

R-74 RESIDIA Sapporo-eki North

Sapporo, Hokkaido

Real estate

798

708

1

90.9 22,863

0.1

188.5 22,860

0.1

R-75 RESIDIA Hijiyama-Koen

Hiroshima-shi,
Hiroshima

Beneficiary interests
in trust

683

778

1

98.8 26,754

0.2

195.4 25,962

0.2

R-76 RESIDIA Kita-Nijyo-East III

Sapporo, Hokkaido

Beneficiary interests
in trust

438

441

1

97.5 15,151

0.1

190.1 13,910

0.1

R-77 RESIDIA Shin-Osaka II

Osaka-shi, Osaka

Real estate

694

719

1

97.5 21,628

0.1

192.6 19,939

0.1

R-78 RESIDIA Tsutsujigaoka-Koen

Sendai-shi, Miyagi

Beneficiary interests
in trust

775

775

1

100.0 26,618

0.2

1100.0 27,102

0.2

R-79 RESIDIA Sendai-Kamisugi

Sendai-shi, Miyagi

Real estate

1,510

1,590

1

99.0 33,1620.2

195.0 44,731

0.3

Osaka-shi, Osaka

Beneficiary interests
in trust

1,319

1,350

-

-

-

1

98.6 13,104

0.1

431,092 619,542

269

96.3 16,767,710

100.0

271

96.0 16,692,630

100.0

R-63 RESIDIA Kita-Nijyo-East II
R-64 RESIDIA Takamiya
R-65 RESIDIA Soen
R-66 RESIDIA Tenjin
R-67 RESIDIA Yakuin-Oodori
R-68 RESIDIA Hakata II

R-72 RESIDIA Senri-Fujishirodai

R-80 RESIDIA Shirokitakoen-dori

Total

-

Notes 1

“Appraisal value at end of period” is the appraisal value or survey-based value, pursuant to ADR’s Articles of Incorporation and the “Regulations Concerning Accounting ofInvestment Corporations” issued by the Cabinet Office, provided by a real estate appraiser as of January 31, 2021.
2. “Total number of tenants,” is counted as “1” if the property is leased under a master lease agreement to a master lessee. Because all properties held by ADR as of January 31, 2021
are leased under a master lease agreement, the “Total” for the “Total number of tenants” column indicates the total number of master lease agreements, which were concluded
with 10 master lessees.
3. “Occupancy rate” is calculated using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Rental revenue” is the rental revenue of respective real estate for the FP under review.
5. Disposition of RESIDIA Yoyoginomori and RESIDIA Kyodo take effect as of January 28, 2021, and December 25, 2020, respectively.

16

I. Fiscal Period Report
Capital Expenditures
1 Planned Capital Expenditures
The following table lists the major capital expenditures for renovations currently planned for the real estate and the underlying
real estate of the beneficiary interests in trust ADR owns. The estimated amount includes portions that are to be recorded as
expenses for accounting purposes.
(million yen)
Estimated amounts
Name of real estate(Location)

17

PurposeEstimated duration

Total
amounts

Payment for
Cumulative
the current
amount paid
periodRESIDIA Sangenjaya(Setagaya-ku, Tokyo)

Major repair work

From: Nov. 2019
To: Feb. 2021

99

65

68

Leopalace Udagawacho Mansion(Shibuya-ku, Tokyo)

Major repair work

From: Nov. 2020
To: Jul. 2021

35

–

–

RESIDIA Korakuen(Bunkyo-ku, Tokyo)

Major repair work

From: Nov. 2020
To: Jul. 2021

28

–

–

RESIDIA Ebisu II(Shibuya-ku, Tokyo)

Major repair work

From: Dec. 2020
To: Sep. 2021

74

–

–

RESIDIA Kamiochiai(Shinjuku-ku, Tokyo)

Major repair work

From: Dec. 2020
To: Oct. 2021

50

–

–

RESIDIA Toranomon(Minato-ku, Tokyo)

Major repair work

From: Jan. 2021
To: Oct. 2021

44

–

–

RESIDIA Nakameguro(Meguro-ku, Tokyo)

Major repair work

From: Jan. 2021
To: Oct. 2021

38

–

–

RESIDIA Mitsukoshimae(Chuo-ku, Tokyo)

Major repair work

From: Jan. 2021
To: Oct. 2021

59

–

–

RESIDIA Bunkyo-Hongo II(Bunkyo-ku, Tokyo)

Major repair work

From: Dec. 2020
To: Sep. 2021

62

–

–

RESIDIA Bunkyo-Sengoku II(Bunkyo-ku, Tokyo)

Major repair work

From: Dec. 2020
To: Sep. 2021

63

–

–

RESIDIA Omori(Ota-ku, Tokyo)

Major repair work

From: Dec. 2020
To: Sep. 2021

48

–

–

RESIDIA Urayasu(Urayasu-shi, Chiba)

Major repair work

From: Dec. 2020
To: Sep. 2021

49

–

–

RESIDIA Minami-Ichijo(Sapporo-shi, Hokkaido)

Major repair work

From: Dec. 2020
To: Nov. 2021

137

–

–

RESIDIA Odori-Nishi(Sapporo-shi, Hokkaido)

Major repair work

From: Dec. 2020
To: Nov. 2021

119

–

–

2 Capital Expenditures for the Current Period
The following table lists the major capital expenditures for renovations ADR conducted in the current period. The total capital
expenditures during this FP were 1,508 million yen for the entire portfolio and, when combined with repairs and maintenancecost of 716 million yen, the cost of construction work totals 2,224 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

RESIDIA TOWER Nakameguro(Meguro-ku, Tokyo)

Major repair work

From: Jul. 2020
To: Jan. 2021

201

RESIDIA Kita-Nijyo-East(Sapporo-shi, Hokkaido)

Major repair work

From: Aug. 2020
To: Nov. 2020

130

RESIDIA Kita-Sanjo(Sapporo-shi, Hokkaido)

Major repair work

From: Jul. 2020
To: Nov. 2020

120

Other real estate

Major repair work

548

Other real estate

Renovations

507

Total

1,508

Note Figures have been rounded down to the nearest million yen. Accordingly, the sum totals of the figures presented do not necessarily add up to the “Total” amount indicated in theprevious table.

3 Cash Reserves for Value Enhancement Works and Renovations
Based on medium- to long-term renovation plans for each property, ADR sets aside the following cash reserves, derived
mostly from cash flows of depreciation and amortization (including earnings that are retained), to fund large-scale repair
work and value enhancement works.
(million yen)
FP

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

17th FP
18th FP
19th FP
20th FP
21st FP
From: Aug. 1, 2018 From: Feb. 1, 2019 From: Aug. 1, 2019 From: Feb. 1, 2020 From: Aug. 1, 2020
To: Jan. 31, 2019
To: Jul. 31, 2019
To: Jan. 31, 2020
To: Jul. 31, 2020
To: Jan. 31, 2021
1,990
1,705
1,822
1,972
2,130
906
939
976
1,035
1,369
1,192
821
826
876
1,267
1,705
1,822
1,972
2,130
2,233

18

I. Fiscal Period Report
Acquisitions and Disposals in the 21st FP
1 Acquisitions and Disposals of Real Estate and Asset-Backed Securities
Property
no.
P-116
R-79
C-24
R-5

Name of real estate
RESIDIA Nakano-Fujimidai
RESIDIA Shirokitakoen-dori
RESIDIA Yoyoginomori
RESIDIA Kyodo
Total

Acquisition
Disposition
Acquisition
Disposition
Acquisition
Disposition
Book value
Price Note
Price
date
date
(million yen)(million yen)(million yen)Dec. 1, 2020
–
1,684
–
–
Nov. 26, 2020
–
1,220
–
–
–
–
Jan. 28, 2021
919
716
–
–
Dec. 25, 2020
357
264
–
2,904
1,276
980

Gain (Loss)on sales(million yen)
–
–
202
92
295

Note “Acquisition price” or “disposition price” is the purchase or sale price entered in the transaction agreements, and does not include various expenses, such as broker commission, andtaxes and duties, required in the acquisition or in the disposition of the concerned real estate.

2 Transactions with Interested Parties
1) Transactions
The following table details the status of transactions with interested parties in the 21st FP.
Not applicable.
2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 21st FP.

Classification
Property management fees
Other rental expenses
Advertising expenses
Other fees

Total amount ofcommission fees (A)(thousand yen)
1,415,295
115,826
7,396
154,466

Breakdown of transaction with interested parties
Amount paid (B)Payee(thousand yen)
ITOCHU Urban Community Ltd.
922,947
ITOCHU Urban Community Ltd.
78,848ITOCHU Urban Community Ltd.
1,167
ITOCHU Urban Community Ltd.
24,985
ITOCHU Human Resources &95
General Affairs Services Inc.

Share
(B)/(A)(%)

65.2
68.1
15.8
16.2
0.1

Notes 1. Transactions are not listed here if the nominal counter party is an interested party but the actual counter party is clearly a third party.
2. ITOCHU Urban Community Ltd. and ITOCHU Human Resources & General Aff airs Services Inc. are interested parties of the asset management company that have signed an asset
management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts and Investment Corporations and Article 123 of the Enforcement Order
thereof, with which ADR engaged in transactions in the 21st FP.

19

20

21

22

II. Financial Statements
Balance Sheets(Thousands of yen)
As of July 31, 2020

AssetsCurrent assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment (Notes 14, 18, 19, 21, and 24)
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
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets (Note 24)
Leasehold rights in trust (Note 19)
Other
Total intangible assets

23

As of January 31, 2021

14,178,864
9,891,267
223,134
462,739–6,764(8,405)24,754,366

14,385,801
9,948,242
191,555
337,740
8,572
6,254(8,310)24,869,856

78,541,149(16,276,112)
62,265,037
27,169(10,392)
16,777125,248(37,795)
87,453454,973(225,885)
229,088
78,556,387
16,604
156,767,610(31,714,517)
125,053,092
201,840(121,213)
80,626
232,537(135,532)
97,004
1,054,565(678,338)
376,227
161,506,474
68,269428,353,043

79,223,736(17,158,108)
62,065,628
27,169(11,284)
15,884
139,536(43,615)
95,921
504,661(253,480)
251,180
78,569,071
68,420157,875,729(33,410,141)
124,465,587
207,045(124,603)
82,442
247,752(143,727)
104,024
1,142,124(722,450)
419,674
163,145,192
7,007
429,290,034

1,837,204
4,425
1,841,630

1,802,767
3,907
1,806,674

(Thousands of yen)
As of July 31, 2020
Investments and other assets
Long-term prepaid expenses
Guarantee deposits
Guarantee deposits in trust
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
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 10 and 27)
Current portion of investment corporation bonds(Notes 10 and 26)
Current portion of long-term loans payable (Notes 10,
12, 23 and 27)
Accounts payable – other (Note 14)
Accrued expenses
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 10 and 26)
Long-term loans payable (Notes 10, 12, 23 and 27)
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities (Notes 10, 12 and 23)
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity (Notes 6 and 21)
Paid-in capital
SurplusCapital surplus
Voluntary retained earnings
Reserve for temporary difference adjustment
Total voluntary retained earnings
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets (Notes 4 and 20)
Total liabilities and net assets

As of January 31, 2021

868,832
575,017
1,038,903
1,090
2,483,843
432,678,517

849,608
581,138
1,038,903
1,090
2,470,740
433,567,449

4,604
131,267
135,871457,568,755

3,499
138,540
142,040
458,579,346

325,991
2,000,000

475,585
500,000

1,500,000–

25,218,000

28,978,000

1,519,594
58,741
61,381
54,106
18,91130,756,727

1,475,825
95,276–
73,103
18,81531,616,607

31,500,000
159,370,000
1,310,759
3,372,464
32,855
195,586,078
226,342,806

34,000,000
157,310,000
1,308,502
3,340,940
36,457
195,995,900
227,612,507

139,034,823

139,034,823

53,220,279

53,220,279

31,185,832
31,185,832
7,817,868
92,223,980
231,258,804

30,850,311
30,850,311
7,897,882
91,968,473
231,003,296(32,855)(32,855)
231,225,948
457,568,755(36,457)(36,457)
230,966,838
458,579,346

24

II. Financial Statements
Statements of Income

Operating revenue (Note 18)
Rental revenue – real estate (Notes 5 and 9)
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to rent business (Notes 5 and 9)
Loss on sales of real estate properties
Asset management fees (Note 14)
Asset custody fees
Administrative service fees
Directors’ compensation
Taxes and dues
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Compensation income
Reversal of distribution payable
Reversal of allowance for doubtful accounts
Penalty income
Other
Total non-operating income
Non-operating expenses
Interest expense (Notes 10, 12 and 23)
Interest expense on investment corporation bonds
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance
costs
Borrowing -related expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current (Note 15)
Total income taxes
Net income (Note 20)
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

25(Thousands of yen)
For the six months ended
July 31, 2020

For the six months ended
January 31, 2021

16,851,176
506,184
17,357,361

16,718,837
295,187
17,014,025

6,707,351
511,921
1,248,184
9,855
54,1096,300
301,808
1,362
221,849
9,062,743
8,294,617

6,630,053–
1,241,028
9,854
53,2636,300
365,115–
195,1028,500,718
8,513,307

7,207
3,506
1,351
–
55
200
12,321

5,996
–
1,202
94
–
–
7,294

667,993
111,026
1,105

660,501
112,724
1,105

12,593

12,224

192,593196
985,508
7,321,429
7,321,429
605
605
7,320,824
497,0447,817,868

181,859
2,613
971,0297,549,572
7,549,572
605
605
7,548,967
348,915
7,897,882

Statements of Changes in Net Assets
For the six months ended July 31, 2020

(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus
Paid-in
capitalVoluntary retained earnings UnappropriatedTotal
retained
unitholders’
Reserve for
Total
Total surplus
earnings
equitytemporaryvoluntary(undisposed
difference
retainedloss)
adjustments
earnings

Capitalsurplus

Balance at the
139,034,823 53,220,279 31,521,354 31,521,354
beginning of period

7,945,222 92,686,856 231,721,679

DeferredTotalgain or loss valuation andon hedging translation
instruments adjustments(23,019)

Total net
assets(23,019) 231,698,659

Changes in items
during the period
Reversal ofreserve fortemporarydifference
adjustments(335,521)(335,521)

335,521–––

Dividends fromsurplus(7,783,700) (7,783,700) (7,783,700)(7,783,700)

Net income

7,320,824

7,320,824

7,320,824

7,320,824

Net changes in
items other thanunitholders’ equity
in the fiscal year
Total changes in
items during theperiodBalance at the endof period––(335,521)(335,521)(9,835)(9,835)(9,835)(462,875)(9,835)(9,835)(472,710)

7,817,868 92,223,980 231,258,804(32,855)(32,855) 231,225,948(127,353)

139,034,823 53,220,279 31,185,832 31,185,832(462,875)

For the six months ended January 31, 2021

(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus
Paid-in
capitalVoluntary retained earnings UnappropriatedTotal
retained
unitholders’
Reserve for
Total
earnings
Total surplus
equitytemporaryvoluntary(undisposed
difference
retainedloss)
adjustments
earnings

Capitalsurplus

Balance at the
139,034,823 53,220,279 31,185,832 31,185,832
beginning of period

7,817,868 92,223,980 231,258,804

DeferredTotalgain or loss valuation andon hedging translation
instruments adjustments(32,855)

Total net
assets(32,855) 231,225,948

Changes in items
during the period
Reversal ofreserve fortemporarydifference
adjustments(335,521)(335,521)

335,521–––

Dividends fromsurplus(7,804,475) (7,804,475) (7,804,475)(7,804,475)

Net income

7,548,967

7,548,967

7,548,967

7,548,967

Net changes in
items other thanunitholders’ equity
in the fiscal year
Total changes in
items during theperiodBalance at the endof period––(335,521)(335,521)

139,034,823 53,220,279 30,850,311 30,850,311(3,602)(3,602)(3,602)(255,507)(3,602)(3,602)(259,109)

7,897,882 91,968,473 231,003,296(36,457)(36,457) 230,966,838

80,013(255,507)

26

II. Financial Statements
Statements of Cash Distributions
For the six months ended
July 31, 2020
I. Unappropriated retained earnings
II. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments
III. Dividends(Dividend per investment unit)

IV. Retained earnings carried forward
Dividend Policy

27

For the six months ended
January 31, 2021

7,817,868,851 yen

7,897,882,834 yen

335,521,628 yen

335,521,628 yen

7,804,475,000 yen(5,635 yen)

7,756,000,000 yen(5,600 yen)

348,915,479 yen

477,404,462 yen

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserve for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has
decided to distribute dividends of
7,804,475,000 yen. The figure wasderived by retaining 348,915,479 yen
from the unappropriated retained
earnings of 7,817,868,851 yen for
the fiscal period, plus the drawdownof reserve for temporary difference
adjustments (RTA) of 335,521,628
yen. 348,915,479 yen was retained in
an aim to achieve a more consistentdividend distribution, and is incontrast to 497,044,119 retained in theprevious fiscal period. ADR does not
distribute dividends in excess of the
profits as defined in Article 32, Item 2of its Articles of Incorporation.

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserve for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has
decided to distribute dividends of
7,756,000,000 yen. The figure wasderived by retaining 477,404,462 yenfrom the unappropriated retained
earnings of 7,897,882,834 yen for
the fiscal period, plus the drawdownof reserve for temporary difference
adjustments (RTA) of 335,521,628
yen. 477,404,462 yen was retained in
an aim to achieve a more consistentdividend distribution. ADR does not
distribute dividends in excess of the
profits as defined in Article 32, Item 2of its Articles of Incorporation.

Statements of Cash Flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance costs
Increase (decrease) in allowance for doubtful accounts
Interest income
Interest expense
Interest expense on investment corporation bonds
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease in property, plant and equipment due to sale
Decrease in property, plant and equipment in trust by sales
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expense paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits, net
Proceeds from tenant leasehold and security deposits in trust,net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Payments of investment corporation bond issuance costs
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents Cashand cash equivalents at the beginning of period Cash andcash equivalents at the end of period (Note 8)(Thousands of yen)
For the six months ended
July 31, 2020

For the six months ended
January 31, 2021

7,321,429
2,798,046
1,105
12,593
1,362(7,207)
667,993
111,026
857–(126,685)(89,391)
67,02574,370(28,328)(11,422)
1,117,601
2,334,920(24,404)(546)
14,220,346
816(779,517)(643)
13,441,002

7,549,572
2,802,867
1,105
12,224(94)(5,996)
660,501
112,724
31,578(8,572)
124,999(61,381)
159,997(43,662)
28,28818,997–
953,840
19,224(1,188)12,355,026
499(764,979)(556)
11,589,989(6,000,000)
11,000,000(6,561,494)(2,500,805)
29,879–5,000,000(831,693)(3,837,674)(2,257)(21,925)(31,523)(4,054,346)

296,851

1,000,000–
14,040,000(14,870,000)–––(7,781,924)(7,611,924)
1,774,731
16,295,400
18,070,132

500,000(2,000,000)
11,900,000(10,200,000)
2,500,000(1,500,000)(19,497)(7,803,431)(6,622,929)
5,263,911
18,070,132
23,334,043

28

III. Notes to Financial Statements
Notes to Financial Statements
1 Organization
Advance Residence Investment Corporation (ADR. Securities Code: 3269) is a listed Residential Japan Real Estate Investment
Trust (J-REIT) that mainly invests in residential properties. It was established through a consolidation-type merger between
the former Advance Residence Investment Corporation and Nippon Residential Investment Corporation on March 1, 2010,
and was listed on the Real Estate Investment Trust (REIT) Securities Section of the Tokyo Stock Exchange (TSE) on March 2,
2010.
The merger made ADR the largest residential J-REIT in terms of asset size, enabling it to upgrade its portfolio while ensuring
its financial stability. The merger also resulted in retained earnings of 43.2 billion yen (30.8 billion yen as of the end of thisfiscal period) due to the profit from negative goodwill, and allowed ADR to demonstrate one of its strengths of delivering
stable dividends over the long term.
ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM), is wholly owned by the Itochu Group andthe group’s key entity, Itochu Corporation, a leading Japanese trading house, is its main sponsor.

2 Basis of Presentation of Financial Statements
The accompanying financial statements are an English translation of the audited financial statements of ADR filed with theappropriate local finance bureau of the Ministry of Finance, prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related accounting regulations and in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application anddisclosure requirements from International Financial Reporting Standards.
In preparing these financial statements, certain reclassifications and rearrangements have been made to the financial
statements issued domestically in order to present them in a form which is more familiar to readers outside of Japan.
Moreover, the notes to the financial statements include certain information which might not be required under Japanese
GAAP but is presented herein as supplementary information.
ADR does not prepare consolidated financial statements as it has no subsidiaries. Unless otherwise specified, amounts havebeen rounded down to the nearest thousand yen. As a result, the totals shown in the financial statements do not necessarily
agree with the sum of the individual amounts.
ADR’s six-month fiscal periods end at either the end of January or July.

29

3 Significant Accounting Policies(1) Depreciation andamortization
methods of noncurrent assets(2) Accounting fordeferred assets(3) Basis of recording
allowances(4) Basis of recording
revenue andexpenses(5) Hedge accounting(6) Scope of funds in thestatements of cashflows(7) Other significant
matters that serve
as a basis for the
preparation of thefinancial statements

1) Property, plant and equipment (including assets in trust)
Depreciated using the straight-line method.
Useful lives of major categories of property, plant and equipment are as follows:
Buildings: 3 to 46 years
Structures: 6 to 50 years
Machinery and equipment: 10 to 15 years
Tools, furniture and fixtures: 2 to 20 years
2) Intangible assets
Amortized using the straight-line method.
Useful lives of major categories of intangible assets are as follows:
Leasehold rights in trust: 23 to 65 years
3) Long-term prepaid expenses
Amortized using the straight-line method.
1) Investment unit issuance expenses
Amortized using the straight-line method (three years).
2) Investment corporation bond issuance costs
Amortized using the straight-line method over the period up to redemption of the investment
corporation bonds.
Allowance for doubtful accounts
Estimated uncollectible amounts are recorded for possible losses arising from default on receivables
based on the historical performance of general receivables and a case-by-case evaluation of thecollectability of certain receivables, such as receivables with default possibility.
Method of accounting for property taxes
For property taxes, urban planning taxes, and depreciable asset taxes on real estate properties held,
ADR records the amount of taxes imposed corresponding to the current fiscal period as an expense forthe property leasing activities.
Furthermore, for the pro rata portion of property taxes ADR paid to the transferor (seller) uponacquisition of real estate properties, ADR treats the amount as acquisition costs of real estate
properties, instead of recording it as an expense for the property leasing activities. The amount ofproperty taxes treated as acquisition costs of real estate properties was 978 thousand yen in theprevious period and 17,228 thousand yen in the current fiscal period.
1) Method of hedge accounting
In principal, deferred hedge accounting is applied. Note that special treatment is applied for interest
rate swaps that fulfill certain requirements.
2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Loans
3) Hedging policy
ADR conducts derivative transactions to hedge risks stipulated in ADR’s Articles of Incorporation inaccordance with its financial policy.
4) Method for assessing the hedge effectivenessThe effectiveness of hedges is assessed by comparing the cumulative change in cash flows of both
hedging instruments and corresponding hedged items, and then verifying the ratio of change for both.
However, evaluation of effectiveness is omitted for interest rate swaps that satisfy the requirements
for special accounting treatment.
The funds (cash and cash equivalents) in the statements of cash flows consist of cash on hand and cash intrust; demand deposits and deposits in trust; and short-term investments that are readily convertible into
cash, carry minimal risk of change in value, and are due for redemption in three months or less from theacquisition date.
1) Accounting for trust beneficiary interests in trust assets such as real estate properties
For trust beneficiary interests in real estate properties, all assets and liabilities of the trust assets, aswell as revenue and income earned from, and expenses incurred for the trust assets are recorded under
the respective account in the balance sheets and statements of income.
Of the accounts used to record the above trust assets, the following accounts are significant anddisclosed separately on the face of the balance sheets.
A. Cash and deposits in trust
B. Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture and fixtures intrust; land in trust; construction in progress in trust; and leasehold rights in trust
C. Guarantee deposits in trust
D. Tenant leasehold and security deposits in trust2) Accounting for consumption taxes
Consumption taxes and local consumption taxes are excluded from business transaction amounts.
However, accounting for non-current assets and deferred assets is inclusive of consumption taxes andlocal consumption taxes.

30III. Notes to Financial Statements
4 Balance Sheets(1) Minimum net assets as stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of yen)
As of July 31, 2020

As of January 31, 2021
50,00050,000(2) Commitment line agreements
ADR has executed commitment line agreements with banks.
(Thousands of yen)
As of July 31, 2020
Total commitment line of credit

20,000,000

20,000,000––

20,000,000

20,000,000

Amount used
Unused balance

As of January 31, 2021

(3) Provision and reversal of the reserve for temporary difference adjustments
For the six months ended July 31, 2020

Initial amountReserve fordividends (Note)

Balance as ofJuly 31, 2020

33,552,162

31,521,354

Funds drawn down
during 20th FP
335,521(Thousands of yen)
Balance as ofJuly 31, 2020
31,185,832

Reasons for setting aside anddrawing down funds
For dividends

Note that the reserve for dividends is the remaining amounts of gains on negative goodwill which were recorded in past fiscal periods. The outstanding amount is scheduled to be fully
drawn down in equal amounts or more every fiscal period within 50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP).

For the six months ended January 31, 2021

Initial amountReserve fordividends (Note)

33,552,162(Thousands of yen)

Balance as ofJanuary 31, 2021

Funds drawn down
during 21st FP

Balance as ofJanuary 31, 2021

31,185,832

335,52130,850,311

Reasons for setting aside anddrawing down funds
For dividends

Note that the reserve for dividends is the remaining amounts of gains on negative goodwill which were recorded in past fiscal periods. The outstanding amount is scheduled to be fully
drawn down in equal amounts or more every fiscal period within 50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP).

31

(4) Contingent liabilities
For the six months ended July 31, 2020
Not applicable.
For the six months ended January 31, 2021
Not applicable.

5 Statements of Income(1) Breakdown of operating income (loss) from property leasing activities(Thousands of yen)

For the six months ended
July 31, 2020

For the six months ended
January 31, 2021

14,838,488

14,806,016

A. Revenue from property leasing activities
Rental revenue – real estate
Rent income
Facility charges

848,122

Parking fees

438,368

851,683
16,124,979

428,689

16,086,390

Other revenue related to property leasing
Income from leasing rights

95,634

Other

630,563

Total revenue from property leasing activities

86,803
726,197545,643

16,851,176

632,447
16,718,837

B. Expenses from property leasing activities
Expenses related to the rent business
Property taxes
Property management fees

888,437

894,870

1,219,113

1,181,136

Utilities

227,110

205,986

Repairs and maintenance

727,740

716,149

Property-casual insurance

24,94325,266

Trust fees

77,285

77,115

Other rental expenses

745,192

727,179

Depreciation and amortization
Total expenses from property leasing activities
C. Operating income (loss) from property leasing activities(A−B)

2,797,528

6,707,351

2,802,349

6,630,053

6,707,351

6,630,053

10,143,824

10,088,784

32

III. Notes to Financial Statements(2) Breakdown of gain on sales of real estate property
For the six months ended July 31, 2020
(RESIDIA Ryokuchikoen)(Thousands of yen)

Revenue from sales of real estate property

957,000

Cost of sales of real estate property

857,423

Other sales expenses

25,906

Gain on sales of real estate property

73,670(RESIDIA Kyobashi)(Thousands of yen)

Revenue from sales of real estate property

1,560,000

Cost of sales of real estate property

1,117,601

Other sales expenses
Gain on sales of real estate property

9,883
432,514

For the six months ended January 31, 2021
(RESIDIA Yoyoginomori)(Thousands of yen)

Revenue from sales of real estate property

919,000

Cost of sales of real estate property

691,590

Other sales expenses

24,871Gain on sales of real estate property

202,538(RESIDIA Kyodo)(Thousands of yen)

Revenue from sales of real estate property

357,000

Cost of sales of real estate property

262,249

Other sales expenses

2,100

Gain on sales of real estate property

92,649(3) Breakdown of loss on sales of real estate properties
For the six months ended July 31, 2020
(RESIDIA Kameyama)
Revenue from sales of real estate property

1,000,000

Cost of sales of real estate property

1,477,171

Other sales expenses

34,750Loss on sales of real estate property

511,921

For the six months ended January 31, 2021
Not applicable.

33(Thousands of yen)

6 Statements of Changes in Net Assets(1) Total number of units authorized and total number of units issued and outstanding

As of July 31, 2020

(Units)

As of January 31, 2021

Total number of units authorized

6,000,000

6,000,000

Total number of units issued and outstanding

1,385,000

1,385,000

7 Statements of Cash Distributions(1) Reserve for temporary difference adjustments
For the six months ended July 31, 2020
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within
50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP), which was the period following
the period in which the transfer to the reserve was made. As such, ADR has drawn down 335,521,628 yen of the reserve
during the fiscal period ended July 31, 2020 (20th FP).
For the six months ended January 31, 2021
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within
50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP), which was the period following
the period in which the transfer to the reserve was made. As such, ADR has drawn down 335,521,628 yen of the reserve
during the fiscal period ended January 31, 2021 (21st FP).

8 Statements of Cash Flows
Relationship between the cash and cash equivalents at the end of period in the statements of cash flows and the accounts
reported in the balance sheets(Thousands of yen)

As of July 31, 2020
Cash and deposits

14,178,864

As of January 31, 2021
14,385,801

Cash and deposits in trust

9,891,267

9,948,242

Time deposits held over three months(6,000,000)(1,000,000)

Cash and cash equivalents

18,070,132

23,334,043

34

III. Notes to Financial Statements
9 Leases(1) Operating leases (as a lessee)
Future lease payments are as follows:(Thousands of yen)

As of July 31, 2020

As of January 31, 2021

Due within one year

740,664

740,664Due after one year

10,949,059

10,578,727

Total

11,689,723

11,319,391

Note that the above information includes estimated amounts for lease payments not finalized as of the end of the reporting period.

(2) Operating leases (as a lessor)
Future lease receivables are as follows:(Thousands of yen)

As of July 31, 2020

As of January 31, 2021

Due within one year

3,054,604

2,984,242

Due after one year

5,262,480

4,511,358

Total

8,317,084

7,495,601

10 Financial Instruments(1) General information on financial instruments
1) Policy on financial instruments
In order to secure stable earnings and steady growth of assets under management, ADR procures funds throughloans, issuance of investment corporation bonds (including short-term investment corporation bonds; the same
applies below), issuance of units, and other means of financing for the purpose of purchasing real estate properties
and repaying its debts.
ADR conducts derivative transactions solely for the purpose of hedging against the risk of interest rate fluctuations
and other risks arising from liabilities.
In addition, ADR, in general, manages surplus funds by investing only in bank deposits, savings, negotiable certificatesof deposit, and government bonds for emphasizing sound and stable portfolio management.
2) Description and risks of financial instruments and risk management
Funds obtained through loans and investment corporation bonds are used primarily to finance the acquisition ofreal estate properties, repay existing loans, or redeem existing investment corporation bonds. ADR is exposed toliquidity risk in that it may not be able to raise funds through alternative financing sources by the repayment date orat the redemption. ADR controls the risk exposures through the preparation of a funding plan on a monthly basis andseeking and procuring funds through various sources, such as securing the level of funds in hand, spreading out theloan repayment and bond redemption dates, diversifying borrowing financial institutions, entering into commitmentline agreements, and issuing investment units.
In addition, ADR is exposed to the risk arising from fluctuations in interest rates on its loans and investment corporation
bonds with floating interest rates. ADR controls and limits such risk by utilizing derivative transactions (interest rate
swap transactions).
ADR is also exposed to the credit risk that the financial institutions with which it has bank deposits, may default.
However, ADR limits the effects of such risk by setting certain limits on the term of deposits and the minimum
credit rating for the financial institutions in which deposits are placed, and by placing deposits with various financial
institutions.

353) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on quoted market prices. If a quoted market price is not available, areasonable estimate of fair value is used. Certain assumptions are applied in the fair value measurements and therefore,
could result in a different fair value if different assumptions are applied. Furthermore, the contractual amounts ofderivative transactions presented in “Derivative Transactions” below do not represent the market risk exposure ofthose derivative transactions.
(2) Fair values of financial instruments
The book values in the balance sheets, fair values of financial instruments, and unrealized gain (loss) are presented
below.
As of July 31, 2020
(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

14,178,864

14,178,864–

2) Cash and deposits in trust

9,891,267

9,891,267–

3) Short-term loans payable

2,000,000

2,000,069(69)4) Current portion of investment corporation bonds

1,500,000

1,501,100(1,100)5) Current portion of long-term loans payable

25,218,000

25,269,916(51,916)6) Investment corporation bonds

31,500,000

31,805,027(305,027)

7) Long-term loans payable

159,370,000

162,129,885(2,759,885)–(947,395)(947,395)

32,85532,855–8) Derivative transactions(Special treatment for interest rate swaps)
9) Derivative transactions(Basic treatment for interest rate swaps)

As of January 31, 2021

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

14,385,801

14,385,801–

2) Cash and deposits in trust

9,948,242

9,948,242–

3) Short-term loans payable

500,000

500,046

(46)

–

–

–

5) Current portion of long-term loans payable

28,978,000

29,053,549(75,549)

6) Investment corporation bonds

34,000,000

34,317,758(317,758)

7) Long-term loans payable8) Derivative transactions(Special treatment for interest rate swaps)
9) Derivative transactions(Basic treatment for interest rate swaps)

157,310,000

159,839,914(2,529,914)–(776,081)(776,081)

36,45736,457–4) Current portion of investment corporation bonds*1. Methods of determining the fair value of financial instruments
1) Cash and deposits and 2) Cash and deposits in trust
These instruments are stated at book values because their book values approximate fair values due to their short maturities.
4) Current portion of investment corporation bonds and 6) Investment corporation bonds
The fair values of these instruments are determined using the reference value announced by the Japan Securities Dealers Association. However, if a reference value is not available, thefair value is deemed to be the present value of future cash flows of principal and interest, discounted at the assumed interest rate for similar borrowings.
3) Short-term loans payable, 5) Current portion of long-term loans payable and 7) Long-term loans payable
The fair values of these financial instruments were determined as the present value of future cash flows of principal and interest, discounted at the assumed interest rate for similarborrowings.
8) Derivative transactions (Special treatment for interest rate swaps) and 9) Derivative transactions (Basic treatment for interest rate swaps)
Please refer to “Derivative Transactions” below for details.

36III. Notes to Financial Statements*2. Redemption schedules of monetary claims and securities after balance sheet date.
As of July 31, 2020

Due in one
year or less(Thousands of yen)

Due after one Due after two Due after three Due after four
Due after five
year through years through years through years throughyears
two years
three years
four years
five years

Cash and deposits

14,178,864

–

–

–

–

–

Cash and deposits in trust

9,891,267

–

–

–

–

–

24,070,132

–

–

–

–

–

Total

As of January 31, 2021
Due in one
year or lessDue after one Due after two Due after three Due after four
Due after five
year through years through years through years throughyears
two years
three years
four years
five years

Cash and deposits

14,385,801

–

–

–

–

–

Cash and deposits in trust

9,948,242

–

–

–

–

–

24,334,043

–

–

–

–

–

Total

*3 Repayment schedules of investment corporation bonds, loans payable, and other interest-bearing loans after balance
sheet date.
As of July 31, 2020
(Thousands of yen)Due in one
year or less
Short-term loans payable

Due after one Due after two Due after three Due after four
Due after five
year through years through years through years throughyears
two years
three years
four years
five years

2,000,000

–

–

–

–

–

Current portion of investment
corporation bonds
Current portion of long-termloans payable

1,500,000

–

–

–

–

–

25,218,000

–

–

–

–

–

Investment corporation bonds––

5,000,000

7,500,000

2,000,000

17,000,000

Long-term loans payable–

27,220,000

16,230,000

13,300,000

16,250,000

86,370,000

28,718,000

27,220,000

21,230,000

20,800,000

18,250,000

103,370,000

Total

As of January 31, 2021

(Thousands of yen)Due in one
year or less

Short-term loans payable

500,000

–

–

–

–

–

–

–

–

–

–

–

28,978,000

–

–

–

–

–

Investment corporation bonds–

2,000,000

3,000,000

7,500,000

5,500,000

16,000,000

Long-term loans payable–

21,710,000

19,880,000

11,550,000

18,300,000

85,870,000

29,478,000

23,710,000

22,880,000

19,050,000

23,800,000

101,870,000

Current portion of investment
corporation bonds
Current portion of long-termloans payable

Total

37

Due after one Due after two Due after three Due after four
Due after five
year through years through years through years throughyears
two years
three years
four years
five years

11 Securities
As of July 31, 2020
Not applicable.
As of January 31, 2021
Not applicable.

12 Derivative Transactions(1) Derivative transactions to which hedge accounting is not applied
As of July 31, 2020
Not applicable.
As of January 31, 2021
Not applicable.
(2) Derivative transactions to which hedge accounting is applied
The contract amounts or equivalent notional principal amounts defined in the contract by the method of hedge
accounting as of July 31, 2020 and January 31, 2021 are as follows:
As of July 31, 2020
(Thousands of yen)Contract amount (*1)
Method of hedge
accounting

Type of derivativetransaction

Special accounting
treatment for interest rate
swaps

Interest rate swaps(fixed rate payment,
floating rate receipt)
Interest rate swaps(fixed rate payment,
floating rate receipt)

Basic accounting method

Main hedged
item

Contract
amount due
after one year

Fair value(*2)

Long-term loans
payable72,188,000

57,620,000(947,395)(*3)

Long-term loans
payable3,370,000

3,370,000(32,855)

As of January 31, 2021

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Special accounting
treatment for interest rate
swaps

Interest rate swaps(fixed rate payment,
floating rate receipt)
Interest rate swaps(fixed rate payment,
floating rate receipt)

Basic accounting method

Main hedged
item

Contract
amount due
after one year

Fair value(*2)

Long-term loans
payable67,888,000

47,560,000(776,081)(*3)

Long-term loans
payable3,870,000

3,870,000(36,457)*1. The contract amount is based on the notional principal.
*2. Fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” and therefore, interest rate swaps are notstated at fair value in the balance sheets.

38III. Notes to Financial Statements
13 Profits or Losses from Investments Accounted for Using the Equity Method
For the six months ended July 31, 2020
Not applicable as ADR does not have any affiliated companies.
For the six months ended January 31, 2021
Not applicable as ADR does not have any affiliated companies.

14 Transactions with Related Parties(1) Parent company and major corporate unitholders
As of and for the six months ended July 31, 2020
Not applicable.
As of and for the six months ended January 31, 2021
Not applicable.
(2) Affiliated companies
As of and for the six months ended July 31, 2020
Not applicable.
As of and for the six months ended January 31, 2021
Not applicable.
(3) Fellow subsidiaries
As of and for the six months ended July 31, 2020
Not applicable.
As of and for the six months ended January 31, 2021
Not applicable.
(4) Directors and major individual unitholders
As of and for the six months ended July 31, 2020
Not applicable.
As of and for the six months ended January 31, 2021
Not applicable.

39

15 Tax Eﬀect Accounting(1) The breakdown of deferred tax assets and liabilities by major item are as follows:(Thousands of yen)

As of July 31, 2020

As of January 31, 2021

Deferred tax assets
Excess provision of allowance for doubtful accounts
Valuation difference on assets acquired through merger
Other
Deferred tax assets, subtotal
Less valuation allowance associated with total of
deductible temporary differences, etc.
Less valuation allowance, subtotal

2,644

2,614

9,413,929

9,313,462

163,245

174,073

9,579,820

9,490,150(9,579,820)(9,490,150)(9,579,820)(9,490,150)

–
–

–
–

Total deferred tax assets
Net deferred tax assets(2) Reconciliation between the statutory tax rates and the effective tax rates after the application of tax effect accounting(Unit: %)As of July 31, 2020
Statutory tax rate

As of January 31, 2021

31.46

31.46

(Adjustments)
Increase (decrease) in valuation allowance(1.64)(1.19)

Deductible dividends(29.82)(30.27)

0.01
0.01

0.01
0.01

Other
Effective tax rate after the application of tax effect accounting

16 Retirement Benefits
As of and for the six months ended July 31, 2020
Not applicable because ADR does not have retirement benefit plans.
As of and for the six months ended January 31, 2021
Not applicable because ADR does not have retirement benefit plans.

17 Asset Retirement Obligations
As of and for the six months ended July 31, 2020
Not applicable because ADR does not have retirement benefit plans.
As of and for the six months ended January 31, 2021
Not applicable.

40III. Notes to Financial Statements
18 Segment Information(1) Segment information
Disclosure is omitted because ADR’s business comprises a single reportable segment engaged in the property leasing
business.
(2) Related information
As of and for the six months ended July 31, 2020
1) Information about products and services
Disclosure is omitted because operating revenues attributable to external customers for products and services of thesingle segment exceed 90% of the total operating revenue reported in the statements of income.
2) Information about geographic areas
A. Operating revenues
Disclosure is omitted because operating revenues attributable to external customers in Japan exceed 90% of thetotal operating revenue reported in the statements of income.
B. Property, plant and equipment
Disclosure is omitted because property, plant and equipment located in Japan exceeds 90% of the total property,
plant and equipment reported in the balance sheets.
3) Information about major customers
Disclosure is omitted because operating revenues attributable to a single external customer account for less than 10%of the total operating revenue reported in the statements of income.
As of and for the six months ended January 31, 2021
1) Information about products and services
Disclosure is omitted because operating revenues attributable to external customers for products and services of thesingle segment exceed 90% of the total operating revenue reported in the statements of income.
2) Information about geographic areas
A. Operating revenues
Disclosure is omitted because operating revenues attributable to external customers in Japan exceed 90% of thetotal operating revenue reported in the statements of income.
B. Property, plant and equipment
Disclosure is omitted because property, plant and equipment located in Japan exceeds 90% of the total property,
plant and equipment reported in the balance sheets.
3) Information about major customers
Disclosure is omitted because operating revenues attributable to a single external customer account for less than 10%of the total operating revenue reported in the statements of income.

41

19 Value of Rental Properties
ADR owns rental residential properties in Tokyo and other prefectures. The following are the book value, changes during theperiod, and fair value of these properties:(Thousands of yen)

As of July 31, 2020

As of January 31, 2021

Book value(*1)

Balance at the beginning of
periodChanges during the period(*2)
Balance at the end of period

Fair value at the end of period (*3)

427,399,620

430,190,248

2,790,627

902,553

430,190,248

431,092,802

607,022,000

619,542,000*1. The book value is the cost of acquisition less accumulated depreciation.
*2. Of the changes in the value of rental properties during the fiscal period, the main element of increase in the previous fiscal period was acquisitions of four real estate properties(6,311,323 thousand yen) along with real estate beneficiary interests in trust for one property (1,576,097 thousand yen), and the decrease is mainly attributable to sales of one real estate
property (1,117,601 thousand yen) along with two real estate beneficiary interests in trust for two properties (2,334,594 thousand yen). The main element of increase in the current
fiscal period was the acquisition of real estate beneficiary interests in trust for two properties (3,119,684 thousand yen), and the decrease is mainly attributable to sale of real estate
beneficiary interests in trust for two properties (953,840 thousand yen).
*3. The fair value at the end of the current fiscal period is the appraisal or assessment value provided by an external real estate appraiser.

Please refer to the Note 5 “Statements of Income” for details on operating income from rental property.

20 Per Unit Information(Yen)
As of and for the six months ended
July 31, 2020

As of and for the six months ended
January 31, 2021

Net assets per unit

166,950

166,763

Net income per unit

5,285

5,450

*1. Net income per unit is computed by dividing net income by the day-weighted average number of units issued and outstanding for the period. Diluted net income per unit is not disclosed
as there are no diluted investment units.
*2. The basis for the computation of net income per unit is as follows:

For the six months ended
July 31, 2020
Net income (thousands of yen)Amount not attributable to common
unitholders (thousands of yen)
Net income attributable to common unit
(thousands of yen)
Average number of units during the period(units)For the six months ended
January 31, 2021

7,320,824

7,548,967––

7,320,824

7,548,967

1,385,000

1,385,000

42

III. Notes to Financial Statements
21 Significant Subsequent Event
For the six months ended January 31, 2021
Not applicable.

22 Schedule of Securities
Not applicable.

23 Table of Summary of Contract Amounts and Fair Values of Derivative Transactions andForward Foreign Exchange Contracts(Thousands of yen)

Category

Type

Transactions other thanmarket transactions

Interest rate swaps(fixed rate payment,
floating rate receipt)
Total

Contract amount (*1)
Contract amount due Fair value (*2 and *3)
after one year
71,758,000

51,430,000(812,539)

71,758,000

51,430,000(812,539)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. For the fair value amount of negative 776,081 thousand yen, special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for
Financial Instruments” and therefore, interest rate swaps are not stated at fair value in the balance sheets.

43

24 Summary of Real Estate

Property, plant and equipment

As of and for the six months ended January 31, 2021

Balanceat thebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAccumulated depreciation
Book value
orDepreciation at the end of Notes
accumulated
for theperiodamortization
periodBuildings

78,541,149

682,586-

79,223,736

17,158,108

881,996

62,065,628–

Structures

27,169--27,16911,284892

15,884–

Machinery and equipment

125,248

14,288-

139,536

43,615

5,820

95,921–Tools, furniture and fixtures

454,973

49,688-504,661

253,480

27,595

251,180–

78,556,387

12,684-78,569,071--

78,569,071–

16,60468,42016,60468,420--68,420–

Buildings in trust

156,767,610

1,502,474

394,355

157,875,729

33,410,141

1,793,638

124,465,587*1*2

Structures in trust

201,840

5,205-

207,045

124,603

3,390

82,442–

Machinery and equipmentin trust

232,537

15,215-

247,752

143,727

8,195

104,024–

Tools, furniture and fixturesin trust

1,054,565

92,066

4,506

1,142,124

722,450

46,382

419,674–

161,506,474

2,294,095

655,377

163,145,192--

163,145,192*1*2

68,269

7,007

68,269

7,007

-

-

7,007

–

477,552,829

4,743,731

1,139,113

481,157,447

51,867,412

2,767,912

429,290,034

2,356,072--

2,356,072

553,304

34,4371,802,767–

25,230--25,23021,323

518

3,907

–

Subtotal

2,381,303--

2,381,303

574,628

34,955

1,806,674

Total

479,934,132

4,743,731

1,139,113

483,538,750

52,442,040

2,802,867

431,096,709

Land
Construction in progress

Land in trust
Construction in progressin trust
Subtotal
Intangible
assets(Thousands of yen)

Leasehold rights in trust
Other*1. The increase in property, plant and equipment for the six months ended January 31, 2021, primarily represents the acquisition of the property listed below.
RESIDIA Nakano-Fujimidai
RESIDIA Shirokitakoen-dori*2 The decrease in property, plant and equipment for the six months ended January 31, 2021, primarily represents the sale of the property listed below.
RESIDIA Yoyoginomori
RESIDIA Kyodo

25 Schedule of Other Specified Assets
Not applicable.

44III. Notes to Financial Statements
26 Schedule of Investment Corporation Bonds
As of and for the six months ended January 31, 2021

(Thousands of yen)

Balance
Decreaseat theduring the
beginning of
periodperiodBalance atInterest Redemption
the end of
rate (%)
date
periodSeries (*1)

Issue date

ADR Bond #19 (Unsecured)

Apr. 25, 2013

3,000,000–

3,000,000

1.320

ADR Bond #20 (Unsecured)Nov. 14, 2013

2,000,000–

2,000,000

1.410 Nov. 14, 2025 (*2) Unsecured

ADR Bond #21 (Unsecured)

Apr. 28, 2014

2,500,000–

2,500,000

1.040 Apr. 26, 2024 (*2) Unsecured

ADR Bond #22 (Unsecured)

Apr. 23, 2015

2,000,000–

2,000,000

0.726

Apr. 23, 2025 (*3) Unsecured

ADR Bond #23 (Unsecured)Oct. 21, 2015

1,500,000

1,500,000––

Oct. 21, 2020 (*2) Unsecured

ADR Bond #24 (Unsecured)Oct. 21, 2015

1,500,000–

1,500,000

0.846

Oct. 21, 2025

ADR Bond #25 (Unsecured)

Jun. 21, 2016

3,000,000–

3,000,000

0.900

Jun. 20, 2031 (*2) Unsecured

ADR Bond #26 (Unsecured)Feb. 17, 2017

2,000,000–

2,000,000

0.180

Aug. 17, 2022 (*2) Unsecured

ADR Bond #27 (Unsecured)

Jul. 18, 2017

3,000,000–

3,000,000

0.500

Jul. 16, 2027

ADR Bond #28 (Unsecured)Nov. 24, 2017

1,000,000–

1,000,000 0.5663 Nov. 24, 2027 (*2) Unsecured

ADR Bond #29 (Unsecured)

Apr. 24, 2018

1,500,000–

1,500,000

0.690 Apr. 24, 2030 (*2) Unsecured

ADR Bond #30 (Unsecured)Oct. 19, 2018

2,000,000–

2,000,000

0.704

Oct. 19, 2028 (*2) Unsecured

ADR Bond #31 (Unsecured)

Jul. 24, 2019

5,000,000–

5,000,000

0.220

Jul. 24, 2024 (*2) Unsecured

ADR Bond #32 (Unsecured)

Jul. 25, 2019

3,000,000–

3,000,000 0.3485

Jul. 25, 2029 (*2) Unsecured

ADR Bond #33 (Unsecured)Dec. 24, 2020––

2,500,000

Total

–

33,000,000

1,500,000

34,000,000

Investment
corporation bond45–

Due after one year Due after two years
through two years through three years
2,000,000

3,000,000

Collateral

Apr. 25, 2023 (*2) Unsecured(*2) Unsecured(*2) Unsecured

0.730 Dec. 24, 2035 (*2) Unsecured–*1. The bonds have a pari passu clause among specified investment corporation bonds.
*2. The funds are used for repayments of existing loans.
*3. The funds are used for redemption of existing investment corporation bonds.
*4. Redemption schedules of investment corporation bonds after the balance sheet date for the next five years are as follows:

Due in one year or
less

Use

–

–

–

(Thousands of yen)

Due after three
Due after four years
years
through five years
through four years
7,500,000

5,500,000

27 Schedule of Loans
As of and for the six months ended January 31, 2021

Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
period1,000,000–

1,000,000–

MUFG Bank, Ltd.

500,000–

500,000–

Sumitomo Mitsui Trust Bank Limited

500,000–

500,000–

Sumitomo Mitsui Trust Bank Limited-

500,000-

500,000

Total

2,000,000

500,000

2,000,000

500,000

Development Bank of Japan Inc.

2,200,000-

2,200,000

Development Bank of Japan Inc.

1,150,000-

Mizuho Trust & Banking Co., Ltd.

1,000,000

The Norinchukin Bank

Short–term loans payable

Lenders

Current portion of long–term loans payable(Thousands of yen)Interest
Repayment
rate
Use
date
(*1)
–

Sep. 11,
2020

(*6)

–

Jan. 22,
2021

(*5)

0.18%

Sep. 10,
2021

(*5)

-

-

Nov. 29,
2020

(*5)

-

1,150,000

1.08%

Mar. 24,
2021

(*4)

-

1,000,000--

1,000,000-

Sep. 30,
2020

(*3)

1,000,000

Mizuho Bank, Ltd.

2,900,000--

2,900,000

Mizuho Trust & Banking Co., Ltd.

1,500,000--

1,500,000

0.89%
(*2)

Feb. 16,
2021

(*5)

MUFG Bank, Ltd.

270,000--

270,000

Aozora Bank, Ltd.

900,000-

900,000-

The Nishi-Nippon City Bank, Ltd.

-

(*3)

400,000-

400,000-

Jan. 29,2021

Resona Bank, Limited

500,000-

500,000-

The Bank of Fukuoka, Ltd.

-

500,000-

Jan. 29,
2021

(*5)

500,000
2,700,000-

2,700,000--

Dec. 25,
2020

(*5)
(*5)

Sumitomo Mitsui Trust Bank Limited

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation

2,800,000--

2,800,000

0.25%

Feb. 26,2021

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000-

1,000,000--

Nov. 30,
2020

(*5)

The Norinchukin Bank

1,000,000--

1,000,000

0.50%
(*2)

Apr. 14,
2021

(*3)

800,000--

800,000

0.27%

Apr. 30,
2021

(*5)

1,379,000--

1,379,000

Resona Bank, Limited--

919,000

1.54%
(*2)

Jun. 25,
2021

(*5)

919,000

Shinsei Bank, Limited

700,000--

700,000

1.10%
(*2)

Jun. 18,
2021

(*3)

MUFG Bank, Ltd.

600,000--

600,000

Resona Bank, Limited

500,000--

500,000

0.63%
(*2)

Jun. 30,
2021

(*5)

The Bank of Fukuoka, Ltd.

500,000--

500,000-

1,200,000-

1,200,000

0.22%

Aug. 31,
2021

(*5)

Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Notes

Unsecured
Unguaranteed

Unsecured
Unguaranteed46

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodIncreaseduring theperiodMUFG Bank, Ltd.

-2,000,000-

2,000,000

Sumitomo Mitsui Trust Bank Limited-

2,600,000-

2,600,000

Sumitomo Mitsui Banking
Corporation-

1,500,000-

1,500,000

Development Bank of Japan Inc.

-

2,200,000-

Aozora Bank, Ltd.

-

1,800,000

Mizuho Bank, Ltd.

-

Shinsei Bank, Limited

Long-term loans payable

Current portion of long-term loans payable

Lenders47

Decreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)

1.25%
(*2)

Oct. 29,
2021

(*5)

2,200,000

1.40%

Nov. 29,
2021

(*5)

-

1,800,000

1.16%
(*2)

Nov. 26,
2021

(*3)

2,160,000-

2,160,000

1.63%
(*2)

Dec. 22,
2021

(*5)

-

500,000-

500,000

0.22%

Jan. 31,
2022

(*5)

Total

25,218,000

13,960,000

10,200,000

28,978,000

Development Bank of Japan Inc.

2,200,000-

2,200,000--

Nov. 29,
2021

(*5)

-

Oct. 29,
2021

(*5)

MUFG Bank, Ltd.

2,000,000-

2,000,000-

Sumitomo Mitsui Trust Bank Limited

2,600,000-

2,600,000-

Sumitomo Mitsui Banking
Corporation

1,500,000-

1,500,000-

Mizuho Bank, Ltd.

2,160,000-

2,160,000--

Dec. 22,
2021

(*5)

Sumitomo Mitsui Trust Bank Limited

2,600,000--

2,600,000

1.47%
(*2)

Nov. 15,
2023

(*5)

Sumitomo Mitsui Banking
Corporation

3,550,000--

3,550,000

1.37%
(*2)

Nov. 15,
2022

(*5)

Aozora Bank, Ltd.

1,800,000-

1,800,000--

Nov. 26,
2021

(*3)

Shinsei Bank, Limited

1,000,000--

1,000,000

1.32%
(*2)

Jun. 17,
2022

(*3)

MUFG Bank, Ltd.

500,000--

500,000

1.59%
(*2)

Feb. 14,
2025

(*5)

MUFG Bank, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

1.44%
(*2)

Feb. 16,
2024

(*5)

MUFG Bank, Ltd.

455,000--

455,000

Sumitomo Mitsui Trust Bank Limited

455,000--

455,000

Sumitomo Mitsui Banking
Corporation

1,120,000--

1,120,000

Mizuho Bank, Ltd.

1,630,000--

1,630,000

MUFG Bank, Ltd.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank Limited

2,100,000--

2,100,000

Mizuho Bank, Ltd.

2,000,000--

2,000,000

Notes

Unsecured
Unguaranteed

Unsecured
Unguaranteed
1.28%
(*2)

Feb. 16,
2023

(*5)

1.08%
(*2)

Feb. 16,
2022

(*5)

0.82%
(*2)

Jul. 29,
2022

(*3)

Mizuho Trust & Banking Co., Ltd.

500,000--

500,000

MUFG Bank, Ltd.

707,000--

707,000

Sumitomo Mitsui Trust Bank Limited

393,000--

393,000

The Nishi-Nippon City Bank, Ltd.

400,000--

400,000

Development Bank of Japan Inc.

1,500,000--

1,500,000

1.02%
(*2)

Sep. 29,
2023

(*5)

Development Bank of Japan Inc.

1,850,000--

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

Aozora Bank, Ltd.

1,000,000--

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

Aozora Bank, Ltd.

700,000--

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

Classification
Lenders

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodMUFG Bank, Ltd.

1,000,000--

1,000,000

Aozora Bank, Ltd.

700,000--

700,000

Resona Bank, Limited

1,000,000--

1,000,000

Mizuho Trust & Banking Co., Ltd.

1,200,000--

500,000-

Nippon Life Insurance Company

1,000,000

Mizuho Trust & Banking Co., Ltd.

Interest
Repayment
rate
Use
date
(*1)
0.89%
(*2)

Jan. 31,
2023

(*5)

1,200,000

1.05%
(*2)

Mar. 19,
2025

(*3)

-

500,000

1.00%
(*2)

Apr. 14,
2025

(*3)

-

-

1,000,000

1.00%
(*2)

Apr. 14,
2025

(*3)

1,400,000--

1,400,000

0.88%
(*2)

Apr. 12,
2024

(*3)

Mizuho Trust & Banking Co., Ltd.

1,200,000--

1,200,000

The Norinchukin Bank

1,500,000--

1,500,000

0.75%
(*2)

Apr. 14,
2023

(*3)

500,000--

500,000

0.73%
(*2)

Apr. 14,
2023

(*3)

1,200,000--

1,200,000

0.69%
(*2)

Oct. 14,
2022

(*3)

0.62%
(*2)

Apr. 14,
2022

(*3)

The Yamaguchi Bank, Ltd.

The Yamaguchi Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

Long-term loans payable

Balance at the
beginning of
periodKiraboshi Bank, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

700,000--

700,000

The 77 Bank, Ltd.

500,000--

500,000

The Gunma Bank, Ltd.

1,000,000--

1,000,000

0.63%
(*2)

May 27,2022(*5)

Development Bank of Japan Inc.

2,300,000--

2,300,000

1.04%
(*2)

Jun. 25,
2025

(*5)

Resona Bank, Limited(*5)

1,000,000--

1,000,000

The Nishi-Nippon City Bank, Ltd.

800,000--

800,000

0.73%
(*2)

Aug. 31,2023

MUFG Bank, Ltd.

400,000--

400,000

0.92%

Aug. 29,2025

Sumitomo Mitsui Trust Bank Limited

400,000--

400,000

0.85%
(*2)

Aug. 29,
2025

(*3)

1,000,000--

1,000,000

0.84%
(*2)

Dec. 18,
2025

(*5)

MUFG Bank, Ltd.
The Norinchukin Bank

The Bank of Fukuoka, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank Limited

Unsecured(*3) Unguaranteed

1,000,000--

1,000,000

1,000,000--

1,000,000

0.61%
(*2)

Dec. 18,
2023

(*5)

990,000--

990,000

0.55%

Feb. 28,
2026

(*5)

0.66%

Jan. 31,
2027

(*5)

990,000--

990,000

Mizuho Bank, Ltd.

1,080,000--

1,080,000

MUFG Bank, Ltd.

2,500,000--

2,500,000

0.57%

Jan. 31,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.77%
(*2)

Mar. 24,
2028

(*3)

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.54%

Mar. 24,
2026

(*3)

0.63%

Jan. 31,
2027

(*3)

Mizuho Bank, Ltd.

900,000--

900,000

Mizuho Trust & Banking Co., Ltd.

750,000--

750,000

Resona Bank, Limited

900,000--

900,000

0.52%

Jan. 31,
2026

(*3)

1,150,000--

1,150,000

0.45%

Jan. 31,
2025

(*3)

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

0.75%
(*2)

Mar. 24,
2028

(*3)

MUFG Bank, Ltd.

500,000--

500,000

0.51%

Mar. 24,
2026

(*3)

Mizuho Bank, Ltd.

400,000--

400,000

0.63%

Jan. 31,
2027

(*3)

MUFG Bank, Ltd.

Notes

48

III. Notes to Financial Statements
Classification

Long-term loans payable

Lenders

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.36%

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.36%

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.26%

The Iyo Bank, Ltd.

300,000--

300,000

0.20%

The Chugoku Bank, Ltd.

500,000--

500,000

0.20%

Bank of Kyoto, Ltd.

500,000--

500,000

0.20%

The Norinchukin Bank

1,500,000--

1,500,000

0.45%

The Norinchukin Bank

1,000,000--

1,000,000

0.38%

Taiyo Life Insurance Company

1,500,000--

1,500,000

0.24%

Mitsui Sumitomo Insurance Co., Ltd.

1,000,000--

1,000,000

0.32%

MUFG Bank, Ltd.

1,250,000--

1,250,000

0.41%

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.58%

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.63%

Sumitomo Mitsui Trust Bank Limited

1,250,000--

1,250,000

Resona Bank, Limited

1,000,000--

1,000,000

Resona Bank, Limited

1,000,000--

1,000,000

0.50%

MUFG Bank, Ltd.

1,200,000--

1,200,000

0.43%

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.67%

Development Bank of Japan Inc.

1,400,000--

1,400,000

0.56%

MUFG Bank, Ltd.

2,500,000--

2,500,000

0.52%

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.47%

Sumitomo Mitsui Trust Bank Limited

0.61%

2,000,000--

2,000,000

MUFG Bank, Ltd.

2,000,000--

2,000,000

MUFG Bank, Ltd.

1,700,000--

1,700,000

0.54%

Development Bank of Japan Inc.

1,000,000--

1,000,000

0.57%

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

The Bank of Fukuoka, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

500,000--

500,000

Bank of Kyoto, Ltd.

500,000--

500,000

Shinkin Central Bank

500,000--

500,000

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

The Bank of Fukuoka, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

500,000--

500,000

The Chugoku Bank, Ltd.

500,000--

500,000

Shinkin Central Bank

500,000--

500,000

MUFG Bank, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

1,000,000--

1,000,000

Japan Post Insurance Co., Ltd.

49

Balance at the
beginning of
period0.60%

Jul. 29,2026
Jul. 29,2026
Jul. 29,2025
Jul. 29,2024
Jul. 29,2024
Jul. 29,2024
Nov. 28,2025
Nov. 29,2024
Nov. 29,2024
Nov. 30,2023
Jan. 29,2027
Jan. 29,2027
Jan. 29,2027
Jan. 29,2027
Jan. 30,2026
Feb. 25,
2026
Apr. 25,
2028
Apr. 23,2027
Feb. 26,
2027
Aug. 31,2026
Apr. 30,2027
Oct. 30,2026
May 31,
2027

Notes

(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*6)
(*6)
(*6)
(*5)
(*5)
(*5)
(*5)
(*7)

0.55%

Aug. 31,
2027

(*6)

0.42%

Feb. 27,
2026

(*6)

0.51%

Aug. 31,
2027

(*6)

0.55%

Aug. 31,
2027

(*6)

Unsecured
UnguaranteedClassification
Lenders

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)

Taiyo Life Insurance Company

1,500,000--

1,500,000

0.42%

MUFG Bank, Ltd.

2,850,000--

2,850,000

0.54%

The Bank of Fukuoka, Ltd.

500,000--

500,000

0.38%

The Bank of Fukuoka, Ltd.

500,000--

500,000

0.63%

MUFG Bank, Ltd.

500,000--

500,000

0.56%

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

Mizuho Bank, Ltd.

Long-term loans payable

Balance at the
beginning of
period1,000,000--

1,000,000

The Yamaguchi Bank, Ltd.

500,000--

500,000

Shinkin Central Bank

500,000--

500,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

0.60%

MUFG Bank, Ltd.

1,500,000--

1,500,000

0.50%

Sumitomo Mitsui Trust Bank Limited

2,100,000--

2,100,000

0.38%

Sumitomo Mitsui Trust Bank Limited

890,000--

890,000

0.70%

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.49%

Development Bank of Japan Inc.

1,000,000--

1,000,000

The Nishi-Nippon City Bank, Ltd.

900,000--

900,000

Mizuho Bank, Ltd.

500,000--

500,000

0.47%

1,000,000--

1,000,000

0.47%
(*2)

650,000--

650,000

0.37%

Shinsei Bank, Limited

1,000,000--

1,000,000

0.36%
(*2)

Shinsei Bank, Limited

500,000-

500,000--

Nippon Life Insurance Company

1,000,000--

1,000,000

0.67%

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

0.70%

The 77 Bank, Ltd.

500,000--

500,000

0.70%

Sumitomo Mitsui Trust Bank Limited

2,200,000--

2,200,000

0.64%

MUFG Bank, Ltd.

1,300,000--

1,300,000

0.60%Mizuho Bank, Ltd.

1,000,000--

1,000,000

Mizuho Trust & Banking Co., Ltd.

1,000,000--

1,000,000

700,000--

1,560,000--

Shinsei Bank, Limited
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

0.61%

0.66%

Sep. 30,
2025
Sep. 30,2027
Feb. 28,2025
Feb. 29,2028
Mar. 17,
2028

(*5)

Mar. 17,
2028

(*3)

Apr. 13,2028
Mar. 31,2028
Apr. 30,2025
Jun. 29,2029
Mar. 31,2028
Jul. 31,2028
Jul. 31,2026
Jul. 31,2026
Jan. 31,2025
Jan. 31,2025
Jan. 31,2022
Sep. 11,2028
Sep. 29,
2028
Sep. 29,
2028
Nov. 30,
2028
Nov. 30,
2028

(*5)
(*5)

(*5)
(*3)

(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)
(*5)

(*5)
(*6)
(*5)
(*5)
(*5)
(*5)

Nov. 30,
2028

(*5)

700,000

0.30%

May 31,2024(*5)

1,560,000

0.25%

May 31,2022(*5)

1,300,000--

1,300,000

0.36%

Sumitomo Mitsui Trust Bank Limited

800,000--

800,000

0.39%

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

0.31%

Sumitomo Life Insurance Company

700,000--

700,000

0.55%

Mizuho Bank, Ltd.

1,200,000--

1,200,000

0.39%

Shinsei Bank, Limited

1,000,000--

1,000,000

0.44%

Nov. 30,
2029

Unsecured
Unguaranteed

(*5)

0.62%

Jun. 29,2029
Jun. 29,
2029
Sep. 28,2029
Oct. 29,
2032
Nov. 30,
2029

Notes

(*5)
(*5)
(*5)
(*5)
(*5)
(*5)

50

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodLenders

Decreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)

Sumitomo Mitsui Banking
Corporation

1,200,000-

1,200,000--

Aug. 31,
2021

(*5)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.32%

Dec. 18,
2029

(*5)

Mizuho Bank, Ltd.

1,000,000--

1,000,000

0.46%

Feb. 14,
2031

(*5)

Mizuho Bank, Ltd.

1,900,000--

1,900,000

0.39%

Feb. 14,
2030

(*5)

Mizuho Trust & Banking Co., Ltd.

2,350,000--

2,350,000

0.39%

Feb. 14,
2030

(*5)

0.41%

Mar. 22,
2030

(*5)

0.44%

Mar. 22,
2030

(*5)

MUFG Bank, Ltd.

2,000,000--

2,000,000

Sumitomo Mitsui Trust Bank Limited

2,000,000--

2,000,000

Shinkin Central Bank

1,000,000--

1,000,000

Resona Bank, Limited

1,370,000--

1,370,000

0.40%
(*2)

Mar. 22,
2030

(*5)

920,000--

920,000

0.22%

Mar. 24,
2023

(*5)

1,000,000--

1,000,000

0.40%

Mar. 27,
2030

(*3)

500,000--

500,000

0.39%

Jun. 18,
2030

(*5)
(*5)

Sumitomo Mitsui Trust Bank Limited
Long-term loans payable

Increaseduring theperiodThe 77 Bank, Ltd.
The Yamaguchi Bank, Ltd.
Sumitomo Mitsui Trust Bank Limited-

500,000-

500,000

0.22%

Sep. 11,2023

Mizuho Trust & Banking Co., Ltd.

-

1,000,000-

1,000,000

0.38%

Sep. 30,
2030

(*5)

The Norinchukin Bank-

1,000,000-

1,000,000

0.23%

Sep. 29,
2028

(*5)

Mizuho Bank, Ltd.

-1,500,000-

1,500,000

0.39%

Oct. 18,
2030

(*6)

Development Bank of Japan Inc.

-

2,200,000-

2,200,000

0.39%

Nov. 29,
2030

(*5)

The Chiba Bank, Ltd.

-

1,000,000-

1,000,000

0.18%

(*5)

Sumitomo Mitsui Banking
Corporation

Nov. 30,2027-

1,500,000-

1,500,000

0.14%

(*3)

Sumitomo Mitsui Banking
Corporation

Dec. 1,2023-

1,200,000-

1,200,000

0.14%

Dec. 25,
2023

(*5)

MUFG Bank, Ltd.

-

600,000-

600,000

0.32%

(*5)

The Bank of Fukuoka, Ltd.

Jan. 31,2031-

500,000-

500,000

The Nishi-Nippon City Bank, Ltd.

-

400,000-

400,000

0.40%

Jan. 31,
2031

(*5)

Resona Bank, Limited-

500,000-

500,000

0.36%
(*2)

Jan. 31,
2031

(*5)

159,370,000

11,900,000

13,960,000

157,310,000

Total

Notes

Unsecured
Unguaranteed*1. “Interest rate” represents the borrowing interest rate (the weighted average of the balance at the end of the fiscal period) for each loan agreement, rounded to the second decimal
place.
*2. For loans where an interest rate swap transaction is used to manage exposures to fluctuations in interest rate, the interest rate presented in the above table is fixed, reflecting theeffects of interest rate swap transactions.
*3. The funds are used for acquisition of specified assets.
*4. The funds are used for acquisition of specified assets and repayment of the existing loans.
*5. The funds are used for repayment of the existing loans.
*6. The funds are used for redemption of the existing investment corporation bonds.
*7. The funds are used for repayment of the existing loans and redemption of the existing investment corporation bonds.
*8. The balances are rounded down to the nearest one thousand yen. Accordingly, the “Total” amounts are not necessarily equal to the sum of individual amounts.
*9. Total amount of scheduled yearly repayments for the long-term loans for five years after the balance sheet date is as follows:(Thousands of yen)

Long-term loans
payable51

Due in one year or
less

Due after one year
through two years

28,978,000

21,710,000

Due after two years Due after three years Due after four years
through three years through four years through five years
19,880,000

11,550,000

18,300,000