18th
Fiscal Period ReportFebruary 1, 2019 - July 31, 2019

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

14th FP

15th FP

16th FP

17th FP

18th FP

Fiscal Period

units

From: Feb. 1, 2017
To: Jul. 31, 2017

From: Aug. 1, 2017
To: Jan. 31, 2018

From: Feb. 1, 2018
To: Jul. 31, 2018

From: Aug. 1, 2018
To: Jan. 31, 2019

From: Feb. 1, 2019
To: Jul. 31, 2019

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 at end of period
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

15,91815,918
–
7,949
6,275
–
–
7,968
6,642
6,642
450,479
223,374
220,754
127,690
6,978
105.1
1,350,000
163,521
4,920
5,169
5,169
0
3.9
5.3
3.2
6,869
13,853
19.4
1.5
3.0
49.0
3.0
6.1
49.6
9.5
10,367
1,093
12,274
5.6
2,631
260
20,842
781,760.64
96.9
269,400

15,903
15,903
‒
7,883
6,176
‒
‒
8,019
6,798
6,798
448,421
221,418
220,574
127,690
7,134
105.0
1,350,000
163,388
5,035
5,285
5,285
0
3.7
5.4
3.1
6,999
13,885
20.2
1.5
3.0
49.2
3.1
6.1
49.4
10.2
10,472
1,023
12,377
5.5
2,651
261
20,888783,781.16
97.2
280,000

16,302
16,167
135
8,030
6,345
–
–
8,272
7,088
7,087
452,846
225,918
220,524
127,6907,423
104.7
1,350,000
163,351
5,250
5,499
5,499
0
3.8
5.6
3.2
7,136
14,392
20.2
1.6
3.2
48.7
3.2
6.5
49.9
10.9
10,755985
12,504
5.7
2,682
263
21,246789,430.47
96.9
290,900

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

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 181 days for the 14th FP, 184 days for the 15th FP, 181 days for the 16th FP, 184 days for the 17th FP, and 181 days for the 18thFP.
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 18th Fiscal Period (FP).
1. Internal Growth
During the current FP, ADR achieved an all-time high average period occupancy rate of 97.1% owing in part that the period
included the peak leasing period (Note 1), and a substantially higher rate of gain in rent level increase upon tenant replacement.
2. External Growth
By utilizing the asset management company’s extensive sourcing network ADR managed to acquire, while maintaining
acquisition discipline, a property that is expected to generate consistent profit, at a price of approximately 600 million yen,which is equivalent to 92.3% of the appraisal value, amid a very challenging acquisition environment.
3. FinanceDuring the current FP, including the issuance of a green bond which was a first for a residential J-REIT (Note 2), ADR procured
11.1 billion yen in interest-bearing liabilities at an average initial duration of 6.9 years and an average interest rate of 0.28%.
Notes 1. In Japan, the months of February to April is a busy season for leasing, during which time a relatively high number of lease contracts are normally concluded. In this report we call theFPs that include the busy season the peak leasing periods and other FPs as off-season periods. Therefore, at ADR the FPs ending January 31 are off-season periods and FPs ending
July 31 are peak leasing periods.
2. We define residential J-REITs as investment corporations that are listed on the real estate investment trust section of the Tokyo Stock Exchange (“J-REIT”) which have more than
50% of its portfolio in residential properties. The same applies hereafter.

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

Item

Previous FP
Results

Initial Forecast Note 3

18th FP Results(July 2019)(million yen)

Difference from the Previous FP Difference from the Initial Forecast

Operating revenues

16,196

16,237

16,465+269+228

Operating income

8,117

8,019

8,202

+84

+183

Ordinary income

6,984

6,926

7,094

+110

+168

Net income

6,983

6,925

7,094

+110

+168

Earnings Per Unit Note 4

5,173 yen

5,130 yen

5,254 yen

+81 yen+124 yen

Dividend Per Unit

5,422 yen

5,379 yen

5,504 yen

+82 yen+125 yen

Notes 3. The initial forecast refers to the earnings forecasts for the 18th FP disclosed in the “Brief Summary of Kessan Tanshin” for the 17th FP, dated March 12, 2019. The same applies
hereafter.
4. Calculated by dividing net income by the total number of units issued, 1,350,000 units. Decimals are omitted from the EPU figures. The same applies hereafter.

ADR achieved record-high earnings per unit (EPU) of 5,254 yen, which was 81 yen higher than in the previous FP and 124 yenhigher than the initial forecast. This was mostly due to improvements in rent income, which saw occupancy rates remain at
all-time highs and rent increases accelerate.
Dividend per unit (DPU), including the 249 yen per unit drawdown in reserve for temporary difference adjustment (RTA),
amounted to 5,504 yen, which is 82 yen higher than in the previous FP and 125 yen higher than the initial forecast. Whereas
we had originally expected to reach the dividend target of 5,500 yen mostly through external growth by FP July 2020 at theearliest, we have reached the target mainly on the strength of internal growth and ahead of schedule.
1. Internal Growth– Record-high Occupancy Rate and Accelerated Rent Increase –For the current FP, the average period occupancy rate reached an all-time high of 97.1%. We think the main factor for thehigh occupancy is that, in most of the regions where ADR invests, we continue to see an inflow of population while thesupply of rental housing remains limited, resulting in a very tight rental apartment market.
Against the backdrop of this high occupancy rate, we have actively increased rents upon both tenant replacement and at
the time of contract renewal in central Tokyo, where we are seeing especially strong performance, and in other regions,and have consequently managed to achieve higher rent hike rates compared to the previous FP. Particularly, the Kansai

2

I. Fiscal Period Report
region, which saw rebound rents, greatly contributed to the acceleration in the rate of rent increase. As a result, therates of rent increase upon replacement and renewal both reached all-time highs of +5.0% and +0.8%, respectively andthe overall portfolio rent level (Note 5) increasing for the 10th consecutive FP, having gained by 0.7% over rent levels of theend of the previous FP.
– 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 freshenup their appearance. In addition, ADR carries out value enhancement works, which entail equipment upgrades, andfloor plan changes of individual units are implemented at the time when tenants are being replaced. These works are
implemented especially on units of properties that have recently been subjected to large-scale repairs, to maintain andenhance competitiveness in the leasing market.
During the FP, we executed large-scale repairs on 9 properties and value enhancement works on 30 residential units. Of
the residential units that underwent the value enhancement works, new rental contracts had been signed for 20 units asof July 31, 2019. Those units saw robust increases in rent of approximately 23% on average in comparison with rents underprevious contracts. Going forward, ADR will endeavor to further enhance the competitive strengths of its properties
through such measures.
– Sustainability Measures –ADR works together with the asset management company on contributing 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.
• ADR’s initiatives on “environment” have involved installing LED lighting (78 properties as of July 31, 2019, constituting
29.4% of ADR’s portfolio), placing green lease clauses in contracts (concluded for 44.2% of residential units out of
the total number of rental units as of January 31, 2019), and acquiring DBJ Green Building Certification on elevenproperties (constituting 22.0% of ADR’s portfolio on the basis of floor area, as of July 31, 2019).
• ADR’s initiatives on “society” have involved conducting satisfaction surveys regarding tenant services, administered
to tenants of ADR’s properties once every three years. In addition, in order to raise disaster-prevention awareness, wehave completed posting emergency maps at all 265 properties owned as of July 31, 2019.
• ADR’s initiatives related to governance have involved arranging ongoing training programs on a scheduled basis
for employees of the asset management company, setting up a sustainability committee to systematically promotesustainability measures, introducing asset management fees linked to NOI and net income and becoming the first
J-REIT asset management company to adopt an employee investment unit ownership program that invest in theinvestment units of the fund (ADR).
ADR has received recognitions from international sustainability assessment institutions for its ESG initiatives as follows:• Since 2014, ADR has been continually participating in the Global Real Estate Sustainability Benchmark (GRESB) which
was developed mainly by European pension funds to evaluate the ESG performance of real estate companies andfunds. For the last three years, GRESB has awarded ADR, the “Green Star” rating and in 2018 selected ADR as a GRESB
Sector Leader having the top rating among the Asia listed company residential sector.
• Mitsubishi UFJ Research and Consulting Co., Ltd. (MURC) awarded ADR the highest rating of “S Rank” in its rating,the “MUFG ESG Rating Certificate for J-REIT supported by Japan Credit Rating Agency (JCR)”. ADR utilized the ratingin the ESG assessment loan for J-REIT which it used for part of its financing. Japan Credit Rating Agency, Ltd. (JCR)
awarded ADR its highest rating of “Green1 (F),” with respect to ADR’s eligibility under the Green Finance Framework
established upon issuance of the green bond, which was a first for a residential J-REIT.
Notes 5. Change in average per-unit rent between the start and end of the FP, for all properties held for the entire FP. The same applies hereafter.

2. External Growth– Steadily Acquiring Prime Properties –During the current FP, ADR has continued to adhere to its policy of taking a disciplined approach to acquiring quality
properties that promise consistent revenues while avoiding excessive competition amid an acquisition environment thatremains very challenging.
Amid this environment, we managed to acquire RESIDIA Shin-Osaka II, situated five minutes on foot from Shin-Osaka
Station, for approximately 600 million yen (92.3% of appraisal value) by leveraging the extensive sourcing network of theasset management company (ADIM). We expect that the property will generate consistent revenues, in part because3its location in the vicinity of Shin-Osaka Station means that it is likely to generate strong rental demand from those who
commute to Umeda and other key business districts via Shin-Osaka Station. We especially expect strong demands from
corporate employees that are single and were transferred to the Osaka oﬃce given the 1K and 1LDK floor plans of theproperty’s units.
3. Finance– Reducing the Average Interest Rate and Maintaining Remaining Duration –ADR’s principal finance policy is to extend remaining duration, to fix interest rates and to diversify maturities of interestbearing liabilities. Under this policy, ADR procured in total 11.1 billion yen (average initial duration of 6.9 years and averageinterest rate of 0.28% (Note 6) during this FP, including the issuance of a green bond, which was a first for a residential J-REIT.
With the average remaining duration of debt at 4.82 years and the average interest rate at 0.75% as of the end of thecurrent FP, we have managed to further strengthen our financial foundations by maintaining the remaining average
duration and lowering the average interest rate.
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 6. 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 current FP (July 31,2019). 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 areused in calculating the average.

3 Management Policies and Challenges Going Forward
By diligently implementing the strategies outlined below, ADR aims to achieve solid EPU growth.
a) Internal Growth
While comprehensively taking into account property characteristics, terms of individual contracts and occupancy rates,
ADR will continue working to raise rents at the time of tenant replacements, as well as at the time of contract renewals.
Furthermore, we will aim to generate greater profitability from each property by improving leasing income throughactively securing key money and controlling expenditures.
In addition, we will continue to enhance the competitive advantages of our properties by systematically conducting
timely large-scale renovations, as well as implementing value enhancement work appropriate to the property’s
characteristic.
b) External Growth
Even though market conditions will continue to be diﬃcult for acquiring properties, we will strive to minimize competitionby acquiring properties from our sponsor or through third parties in negotiated deals utilizing market information
supplied to ADR and acquire properties that will contribute in improving the quality and profitability of ADR’s portfolio.
Meanwhile, we will continue to seek opportunities arising from the buoyant property market to replace properties inorder to improve the quality and profitability of ADR’s portfolio.
Seizing on positive opportunities posed by strong markets for investment units and rental housing, ADR resolved tolaunch a follow-on offering on September 10, 2019. In conjunction to the offering, ADR announced that the proceedsfrom the offering will be used to acquire nine properties, mainly located within the 23 wards of Tokyo, together with theproceeds from a property disposition.
Moreover, given that the follow-on offering will lower loan-to value (LTV), ADR’s acquisition capacity within the limitof LTV, 53% on total assets basis and 50% appraisal basis, will increase substantially from the approximately 29.8 billion
yen as of the end of the current FP.

4

I. Fiscal Period Reportc) Finance Policy
Going forward, we will continue to focus on fixed rate long-term debt and diversifying maturities, while keeping aclose eye on interest-rate trends. In so doing, we will endeavor to establish financial foundations that can weather thechanging business environment.
d) Dividend Payout Policy
ADR will continue to draw down the reserves for temporary difference adjustments (RTA), in accordance with partial
amendments of the “Regulations Concerning Accounting of Investment Corporations” and the Investment Trusts
Association of Japan’s “Regulations Concerning Real Estate Investment Trusts and Real Estate Investment Corporations.”
This means that ADR will fully draw down the RTA in equal amounts or more every FP (Note 7), within 50 years, startingfrom the FP ended January 2017.
It has been ADR’s policy in principle to maintain a dividend of at least 4,500 yen by additionally drawing down thereserve if the total amount of EPU and the fixed drawdown of RTA for the given FP do not reach 4,500 yen. Goingforward, however, ADR will raise the level to 5,000 yen, to which the dividend level will in principle be maintained (Note 8).
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. However, 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.

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

127,690

2

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.

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

5FP

14th FP

15th FP

16th FP

17th FP

18th FP

Period-end

July 2017

January 2018

July 2018

January 2019

July 2019High

307,500 yen

285,800 yen

291,500 yen

327,500 yen

349,500 yen

Low

261,600 yen

262,800 yen

264,700 yen

281,100 yen

304,000 yen

Overview of the Investment Corporation
1 Major Unit-holders
The following are the major unit-holders as of July 31, 2019.
Name

Address

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

Japan Trustee Services Bank, Ltd. (Trust Account)

1-8-11 Harumi, Chuo-ku, Tokyo

302,596

22.41

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

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

220,453

16.32

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

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

56,030

4.15

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)Oﬃce Tower Z, Harumi Island Triton
Square, 1-8-12 Harumi, Chuo-ku, Tokyo

39,017

2.89

ITOCHU Corporation

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

34,8002.57

Mizuho Securities Co., Ltd.

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

19,171

1.42

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

2-5-2, Marunouchi, Chiyoda-ku, Tokyo

17,605

1.30

State Street Bank West Clients Treaty

1776 Heritage Drive, North Quincy, MA
02171 U.S.A

16,174

1.19

Trust & Custody Services Bank, Ltd.
(Money Trust Taxation Account)Oﬃce Tower Z, Harumi Island Triton
Square, 1-8-12 Harumi, Chuo-ku, Tokyo

14,214

1.05

State Street Bank and Trust Company

PO Box 351, Boston, Massachusetts,
02101 U.S.A

13,776

1.02

733,836

54.35

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.

6I. Fiscal Period Report
2 Directors and Independent Auditor
1. The executive director, supervisory directors, and independent auditor as of July 31, 2019, are as follows.
Primary concurrent positions

Total amount of compensation
during the FP (thousand yen)

Kenji Kousaka Note 2

President, AD Investment Management Co., Ltd.

–

Note 4

Takeshi Takano Note 3

President, AD Investment Management Co., Ltd.

–

Note 4

Supervisory
Director

Yoshiki Oshima

President, Akasaka Law Oﬃce L.P.C.

1,800

Supervisory
Director

Yoshitsugu Oba

Audit & Supervisory Board Member, Mitsubishi
Motors Corporation

1,800

Independent
Auditor

Deloitte Touche Tohmatsu LLC

Title
Executive
Director Note 1

Name

19,000 Note 3

Notes 1. On June 14, 2019, Kenji Kousaka resigned as executive director and Takeshi Takano has assumed that position.
2. Kenji Kousaka had concurrently served as president of ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM) and executive director of ADR.
However, he resigned from the position of President on June 14, 2019.
3. On June 14, 2019, Takeshi Takano assumed the position of president of ADIM. As of July 31, 2019, he concurrently serves as President of ADIM and as executive director of ADR.
4. The executive director does not receive compensation from ADR.
5. 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.

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 July 31, 2019.
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, institutional operations

Sumitomo Mitsui Trust Bank Limited

Administrative agent

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Administration of investment corporation
bonds

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

7

Real Estate Portfolio
The following lists real estates held by ADR as of July 31, 2019.

Propertyno.

Name of real estate

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
Appraisal Total number
Total numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
ownership
periodof period (thousandof period (thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,310

3,530

1

98.7 91,307

0.6

194.5 91,937

0.6

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,375

2,270

1

100.0 47,2560.3

1100.0 47,283

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,154

1,330

1

95.5 36,998

0.2

185.5 35,588

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,137

1,500

1

100.0 38,798

0.2

190.7 38,051

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,050

2,750

1

97.3 74,038

0.5

196.8 75,231

0.5

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,052

1,310

1

95.4 31,6130.2

1100.0 32,039

0.2

RESIDIA Sakurajosui

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,046

1,360

1

94.6 33,497

0.2

198.2 33,561

0.2

P-14 RESIDIA Kita-Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,492

3,170

1

100.0 75,453

0.5

1100.0 75,9780.5

Shibuya-ku, Tokyo

Beneficiary interests
in trust

699

763

1

91.2 20,259

0.1

1100.0 20,171

0.1

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

708

972

1

100.0 26,481

0.2

197.5 26,359

0.2

P-19 Leopalace Udagawacho Mansion Shibuya-ku, Tokyo

Beneficiary interests
in trust

557

778

1

100.0 17,944

0.1

1100.0 17,959

0.1

P-21

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,382

1,890

1

96.4 46,943

0.3

1100.0 48,967

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

917

1,260

1

91.7 31,6050.2

1100.0 31,799

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,376

2,220

1

98.1 58,4200.4

1100.0 59,305

0.4

Minato-ku, Tokyo

Beneficiary interests
in trust

887

1,160

1

92.6 28,065

0.2

191.7 29,065

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

568

756

1

92.3 19,275

0.1

191.7 19,225

0.1

P-26 RESIDIA Meguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

730

777

1

92.1 20,754

0.1

195.2 19,810

0.1P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,498

2,300

1

100.0 54,487

0.3

193.9 55,017

0.3

Minato-ku, Tokyo

Beneficiary interests
in trust

1,770

2,350

1

96.8 63,399

0.4

197.3 65,476

0.4

Setagaya-ku, Tokyo

Beneficiary interests
in trust

305

402

1

100.0 10,626

0.1

1100.0 11,121

0.1

Shibuya-ku, Tokyo

Beneficiary interests
in trust

305

409

1

87.3 10,846

0.1

1100.0 10,686

0.1

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

340

452

1

91.3 10,1000.1

1100.0 11,987

0.1

P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

Beneficiary interests
in trust

262

348

1

93.8

9,933

0.1

1

91.5

9,450

0.1

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

854

1,200

1

93.8 33,053

0.2

198.0 33,154

0.2

P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,209

2,990

1

97.4 73,431

0.5

198.9 72,868

0.4P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,079

1,550

1

92.9 41,912

0.3

198.8 44,649

0.3

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,891

2,560

1

95.9 69,034

0.4

196.6 70,750

0.4P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,134

1,460

1

97.1 37,528

0.2

197.7 38,187

0.2

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,225

1,770

1

98.4 42,1880.3

198.4 43,368

0.3

P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,086

1,630

1

98.4 41,509

0.3

1100.0 42,110

0.3

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

855

1,150

1

100.0 30,837

0.2

198.2 31,303

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

979

1,370

1

97.5 36,1210.2

1100.0 35,666

0.2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,015

1,370

1

94.2 33,696

0.2

197.3 35,626

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,118

2,930

1

100.0 78,797

0.5

193.0 78,415

0.5

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

P-15

RESIDIA Yoyoginomori

P-16 RESIDIA Shinjuku-East III

RESIDIA Shinjuku-East II

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

P-30 Pianetta Shiodome
P-31

RESIDIA Komazawadaigaku

P-32 RESIDIA Yoyogi
P-33 RESIDIA Nishi-Shinjuku

8I. Fiscal Period Report

Propertyno.

Name of real estate

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

P-49 RESIDIA Akasaka

Real estate

3,518

4,380

1

96.8 106,167

0.7

194.2 109,630

0.7Minato-ku, Tokyo

Real estate

1,130

1,550

1

90.5 39,626

0.2

194.7 41,637

0.3

Minato-ku, Tokyo

Beneficiary interests
in trust

6,493

8,750

1

94.6 216,806

1.3

197.2 215,131

1.3

Shibuya-ku, Tokyo

Beneficiary interests
in trust

2,021

2,300

1

95.7 58,496

0.4

194.3 55,964

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,399

3,320

1

96.5 78,631

0.5

194.3 81,292

0.5Minato-ku, Tokyo

Beneficiary interests
in trust

3,581

5,120

1

97.2 128,109

0.8

197.2 131,756

0.8

Shinagawa-ku, Tokyo

Real estate

14,708 19,500

1100.0 454,657

2.8

1100.0 454,890

2.8

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,485

3,640

1

97.3 89,844

0.6

198.2 90,904

0.6P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,531

2,280

1

96.2 59,888

0.4

193.5 57,124

0.3

P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,350

1,600

1

100.0 42,283

0.3

190.7 41,222

0.3

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,922

2,350

1

97.6 56,202

0.3

197.3 59,664

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

6,108

7,910

1

94.2 200,665

1.2

195.9 201,912

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,201

1,690

1

95.7 40,627

0.3

194.8 43,155

0.3

P-64 RESIDIA Nakanobu

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,739

2,520

1

94.2 64,687

0.4

196.8 65,831

0.4P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,534

1,980

1

97.5 49,112

0.3

197.4 51,247

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,662

2,080

1

91.7 50,581

0.3

191.7 53,444

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,080

1,570

1

96.8 40,4010.2

198.0 41,068

0.2

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,207

1,590

1

100.0 41,895

0.3

196.9 40,459

0.2

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,688

2,270

1

97.0 59,701

0.4

190.4 58,244

0.4P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

863

1,140

1

100.0 28,439

0.2

192.5 28,173

0.2

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

969

1,210

1

100.0 28,755

0.2

1100.0 34,321

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,347

6,260

1

93.0 170,407

1.1

195.4 173,582

1.1

P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

873

1,040

1

93.9 27,6440.2

1100.0 29,761

0.2

P-75 RESIDIA Yutenji

Meguro-ku, Tokyo

Beneficiary interests
in trust

5,008

6,420

1

97.5 157,368

1.0

194.6 155,955

0.9Minato-ku, Tokyo

Beneficiary interests
in trust

8,813 12,200

198.0 325,452

2.0

194.4 322,557

2.0P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

840

1,140

1

87.9 29,594

0.2

194.6 32,622

0.2

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,355

1,720

1

92.3 45,929

0.3

1100.0 46,843

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

814

1,290

1

100.0 28,095

0.2

1100.0 28,095

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

2,293

3,220

1

95.1 81,952

0.5

193.7 86,050

0.5P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,960

2,750

1

97.4 66,153

0.4

195.7 67,288

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,528

1,970

1

94.4 50,199

0.3

1100.0 50,469

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,289

4,900

1

92.9 118,309

0.7

195.7 119,030

0.7

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,656

4,890

1

97.0 120,943

0.7

197.5 123,307

0.7

Meguro-ku, Tokyo

Beneficiary interests
in trust

947

1,450

1

100.0 34,1550.2

196.7 33,965

0.2

P-92 RESIDIA Jiyugaoka II

Setagaya-ku, Tokyo

Beneficiary interests
in trust

774

1,030

1

100.0 26,1230.2

1100.0 25,570

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,216

1,840

1

98.4 43,980

0.3

198.4 44,508

0.3

P-94 RESIDIA Omori II

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,583

2,310

1

99.0 56,1380.3

1100.0 58,000

0.4P-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

Park Tower Shibaura Bayward
P-76
Urban Wing

P-85 RESIDIA Komazawa
P-86 RESIDIA Shibaura KAIGAN

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

9

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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

1,455

2,130

1

94.6 50,297

0.3

198.6 52,120

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

3,758

4,580

1

91.4 115,669

0.7

196.4 117,990

0.7

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,108

1,570

1

89.9 36,044

0.2

196.0 36,716

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

1,722

1,960

1

97.0 55,903

0.3

191.3 55,232

0.3

P-99 RESIDIA Yotsuya Sanchome

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,064

2,890

1

99.2 84,014

0.5

199.2 83,430

0.5

RESIDIA
P-100
Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

938

1,160

1

97.9 29,262

0.2

197.9 29,943

0.2

P-101 RESIDIA Ebisu III

Shibuya-ku, Tokyo

Real estate

648

858

1

94.0 19,905

0.1

195.9 21,443

0.1

P-102 RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

717

998

1

97.5 25,7460.2

1100.0 26,601

0.2

P-103 RESIDIA Minami Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,190

1,530

1

95.7 36,175

0.2

195.5 37,468

0.2

P-104 Chester Court Ochanomizu

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,160

3,950

1

97.6 105,870

0.7

197.2 107,338

0.7

RESIDIA
Kanda-Iwamotocho II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,293

1,710

1

100.0 44,668

0.3

195.7 44,124

0.3

P-106 RESIDIA Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

991

1,310

1

89.5 32,0280.2

1100.0 31,814

0.2

P-107 RESIDIA Yoyogi II

Shibuya-ku, Tokyo

893

1,010

1

100.0 24,567

0.2

197.4 24,489

0.1

P-108 RESIDIA Nakanobu II

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

934

1,140

1

98.0 26,6940.2

1100.0 28,441

0.2

P-109 RESIDIA Ochanomizu II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

838

1,040

1

96.8 25,0970.2

1100.0 26,419

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,182

1,390

1

86.6 36,570

0.2

1100.0 34,028

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,523

2,760

1

95.9 68,105

0.4

1

96.1 70,762

0.4

Ota-ku, Tokyo

Beneficiary interests
in trust

2,038

3,760

1

98.4 99,616

0.6

196.3 109,421

0.7

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,372

1,850

1

98.6 50,243

0.3

197.2 52,064

0.3

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,535

2,370

1

97.0 58,755

0.4

196.5 57,720

0.4

Taito-ku, Tokyo

Beneficiary interests
in trust

917

1,520

1

96.1 39,942

0.2

197.5 41,197

0.3

Nerima-ku, Tokyo

Beneficiary interests
in trust

893

1,140

1

96.8 36,400

0.2

195.8 36,382

0.2

2,800

3,980

1

99.3 103,596

0.6

196.7 104,693

0.6

P-95 RESIDIA Shirokane-Takanawa
P-96 RESIDIA Nakaochiai
P-97 RESIDIA Nakameguro II
P-98 Artis Court Minamiaoyama

P-105

P-110 RESIDIA Mishuku
C-1
C-2
C-3
C-4
C-5
C-6

RESIDIA Mitsukoshimae
RESIDIA Kamata
RESIDIA Ikebukuro
RESIDIA Bunkyo-Hongo
RESIDIA Asakusabashi
Maison Eclairee Ekoda

Real estate

C-7

RESIDIA Ueno-Okachimachi

Taito-ku, Tokyo

Beneficiary interests
in trust

C-8

RESIDIA Bunkyo-Hongo II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,512

2,110

1

100.0 52,305

0.3

198.9 52,559

0.3

Sumida-ku, Tokyo

Beneficiary interests
in trust

833

1,310

1

98.5 33,8960.2

1100.0 34,311

0.2

C-9

RESIDIA Ryogoku

Chuo-ku, Tokyo

Beneficiary interests
in trust

4,980

5,740

1

97.9 152,790

0.9

193.4 150,296

0.9

C-12

RESIDIA
Nihonbashi-Ningyocho II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,913

4,180

1

98.7 100,319

0.6

199.4 110,263

0.7

C-13

RESIDIA Omori-Higashi

Ota-ku, Tokyo

Beneficiary interests
in trust

1,799

2,190

1

95.8 56,1290.3

1100.0 58,079

0.4

Sumida-ku, Tokyo

Beneficiary interests
in trust

3,951

4,840

1

98.6 121,706

0.8

195.4 122,571

0.7

Taito-ku, Tokyo

Beneficiary interests
in trust

797

1,030

1

96.3 28,2270.2

196.5 28,239

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,792

2,570

1

93.6 63,991

0.4

195.8 67,017

0.4

Toshima-ku, Tokyo

Beneficiary interests
in trust

529

741

1

93.8 21,746

0.1

193.4 21,905

0.1

Nakano-ku, Tokyo

Beneficiary interests
in trust

344

537

1

93.4 15,3880.1

1100.0 15,881

0.1

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

949

1,260

1

98.5 34,3120.2

194.0 35,114

0.2

C-22 RESIDIA Tsukiji

Chuo-ku, Tokyo

Real estate

1,296

2,020

1

98.2 51,475

0.3

190.8 51,503

0.3

C-23 RESIDIA Sasazuka

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,776

2,270

1

95.8 62,095

0.4

195.0 64,381

0.4

C-24 RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,097

1,560

1

100.0 38,8470.2

1100.0 38,847

0.2

C-10 RESIDIA Higashi-Ginza

C-15

RESIDIA Kinshicho

C-16 RESIDIA Negishi
C-17

RESIDIA Shinkawa

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

RESIDIA Bunkyo-Yushima II

10

I. Fiscal Period Report

Propertyno.

Name of real estateOta-ku, Tokyo

Beneficiary interests
in trust

1,149

1,730

1

99.0 48,517

0.3

198.0 47,712

0.3

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

537

797

1

100.0 21,605

0.1

193.9 21,209

0.1

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,867

2,770

1

92.6 65,704

0.4

198.3 69,522

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

771

1,060

1

100.0 33,7170.2

1100.0 33,713

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

961

1,290

1

91.0 34,327

0.2

193.3 36,366

0.2

C-31

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,000

1,360

1

100.0 37,060

0.2

197.8 38,949

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,262

1,760

1

94.1 44,469

0.3

196.5 48,158

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,304

3,160

1

93.7 81,342

0.5

194.7 83,372

0.5

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,210

2,790

1

98.5 76,710

0.5

197.0 77,368

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

3,064

4,400

1

99.4 120,985

0.7

196.3 120,506

0.7

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

655

960

1

90.9 25,612

0.2

194.2 26,064

0.2

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

990

1,450

1

98.1 37,614

0.2

195.3 38,856

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

353

438

1

100.0 13,621

0.1

175.1 12,592

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

513

850

1

89.1 19,800

0.1

193.3 22,223

0.1

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,331

1,840

1

90.8 45,755

0.3

192.0 44,358

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

857

1,220

1

98.3 37,072

0.2

1100.0 38,293

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,237

1,670

1

97.9 44,528

0.3

197.9 43,357

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,742

2,230

1

98.8 59,405

0.4

1

92.1 58,715

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,189

1,490

1

96.8 41,472

0.3

195.2 42,467

0.3

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,256

1,730

1

96.9 42,988

0.3

192.5 44,521

0.3

Toshima-ku, Tokyo

Beneficiary interests
in trust

6,009

8,290

1

97.6 235,777

1.5

197.0 234,096

1.4

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

646

811

1

89.5 26,6440.2

1100.0 27,816

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

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

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

Real estate

5,021

7,630

1

97.4 195,1191.2

199.5 202,387

1.2

Suginami-ku, Tokyo

Beneficiary interests
in trust

3,546

5,740

1

96.1 147,302

0.9

198.8 155,085

0.9

Itabashi-ku, Tokyo

Beneficiary interests
in trust

833

1,270

1

100.0 29,739

0.2

1100.0 29,739

0.2

Koto-ku, Tokyo

Beneficiary interests
in trust

1,853

3,260

1

99.4 79,490

0.5

1100.0 82,314

0.5

C-52 RESIDIA Bunkyo-Yushima III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,075

1,650

1

100.0 38,945

0.2

1100.0 44,190

0.3

RESIDIA
C-53
Bunkyo- Honkomagome

Bunkyo-ku, Tokyo

Real estate

2,244

3,220

1

97.9 83,183

0.5

197.1 83,014

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,427

3,880

1

98.1 92,095

0.6

192.2 91,673

0.6

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

Beneficiary interests
in trust

2,332

3,750

1

98.0 165,559

1.0

196.9 164,711

1.0

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

Real estate

1,783

2,450

1

97.0 62,0420.4

198.0 65,215

0.4

Koto-ku, Tokyo

Beneficiary interests
in trust

948

1,430

1

100.0 36,694

0.2

1

97.1 38,763

0.2

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,001

3,080

1

96.5 77,282

0.5

193.3 77,865

0.5

Ota-ku, Tokyo

Beneficiary interests
in trust

1,105

1,570

1

98.7 42,432

0.3

197.3 42,971

0.3

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,021

1,460

1

98.7 38,303

0.2

197.2 38,893

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,728

2,630

1

100.0 65,382

0.4

1

98.1 66,919

0.4

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,253

3,260

1

97.8 82,3210.5

199.3 83,981

0.5

C-49 RESIDIA Suginami-Honancho
C-50 RESIDIA Shin-Itabashi
C-51

RESIDIA Kiba

C-57 RESIDIA Monzennakacho
C-58 RESIDIA Ochanomizu
C-59 RESIDIA Omori
C-60 RESIDIA Nakamurabashi
C-61 RESIDIA Kachidoki
C-62 RESIDIA Bunkyo-Otowa II

11

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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

C-63 RESIDIA Kinshicho III
C-64 RESIDIA Kamata III

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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

Koto-ku, Tokyo

Beneficiary interests
in trust

637

892

1

100.0 25,4140.2

1100.0 25,478

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

920

1,320

1

95.2 33,5660.2

1100.0 35,041

0.2

7,686 12,200

197.3 737,714

4.6

197.9 746,046

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

516

641

1

100.0 16,1940.1

1100.0 16,192

0.1

Itabashi-ku, Tokyo

Real estate

602

738

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

1,119

1,450

1

100.0 35,3750.2

1100.0 35,646

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

428

523

1

100.0 13,6080.1

1100.0 13,608

0.1

C-70 RESIDIA Ikebukuro West

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,097

1,430

1

95.3 42,295

0.3

193.7 44,166

0.3

C-71

Koto-ku, Tokyo

Beneficiary interests
in trust

1,259

1,690

1

96.6 42,6510.3

1100.0 44,757

0.3

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,172

1,420

1

97.6 43,541

0.3

1100.0 43,209

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

1,811

2,170

1

98.8 56,1960.3

198.8 54,917

0.3

Nerima-ku, Tokyo

Beneficiary interests
in trust

509

679

1

100.0 18,060

0.1

1100.0 18,060

0.1

C-75 RESIDIA Higashi-Nihonbashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

394

521

1

100.0 14,803

0.1

1100.0 15,352

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

688

832

1

95.0 21,8470.1

1100.0 22,022

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, TokyoRESIDIA Ojima

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

Real estate

484

577

1

100.0 13,620

0.1

1100.0 13,620

0.1

Ota-ku, Tokyo

Beneficiary interests
in trust

1,345

1,570

1

98.8 42,593

0.3

197.9 44,650

0.3

C-79 RESIDIA Akihabara

Taito-ku, Tokyo

Beneficiary interests
in trust

986

1,290

1

100.0 34,060

0.2

197.6 34,682

0.2

C-80 RESIDIA Asakusa-Azumabashi

Sumida-ku, Tokyo

Beneficiary interests
in trust

882

1,200

1

100.0 32,591

0.2

198.3 33,254

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

1,408

1,770

1

93.5 40,954

0.3

198.7 44,445

0.3

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

Beneficiary interests
in trust

2,000

2,640

1

97.3 61,2770.4

1100.0 63,675

0.4

RESIDIA Nihonbashi-Bakurocho
C-83
III

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,846

2,440

1

98.5 60,339

0.4

196.6 62,975

0.4

C-84 RESIDIA Bunkyo-Hongo III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,682

2,050

1

96.0 50,664

0.3

196.9 49,601

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

4,729

5,780

1

99.1 143,5660.9

1100.0 147,149

0.9

Koto-ku, Tokyo

Beneficiary interests
in trust

3,056

3,520

1

98.5 84,3310.5

199.2 86,465

0.5

C-87 RESIDIA Koenji

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,414

1,650

1

95.5 40,630

0.3

1

97.1 42,767

0.3

C-88 RESIDIA Kamata V

Ota-ku, Tokyo

Real estate

2,365

2,660

1

95.0 64,5120.4

197.5 68,231

0.4

C-89 RESIDIA Kamata IV

Ota-ku, Tokyo

Real estate

3,367

3,770

1

99.4 91,814

0.6

199.4 93,238

0.6

S-2

Kawaguchi-shi,
Saitama

Beneficiary interests
in trust

687

756

1

97.4 29,043

0.2

1100.0 28,831

0.2

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

994

1,260

1

100.0 42,968

0.3

195.4 43,303

0.3

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,732

2,120

1

100.0 61,2980.4

1100.0 61,366

0.4

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,051

1,230

1

97.3 34,798

0.2

196.4 35,292

0.2

651

743

1

100.0 26,182

0.2

1100.0 26,182

0.2

C-78 RESIDIA Minamiyukigaya

C-81 RESIDIA Omori III

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

S-4
S-5
S-7

Chester House Kawaguchi

RESIDIA Chofu

S-11

Tokyo Student-House WAKO

Wako-shi, Saitama

Beneficiary interests
in trust

S-12

RESIDIA Kokubunji

Kokubunji-shi, Tokyo

Beneficiary interests
in trust

491

678

1

97.0 18,700

0.1

1100.0 20,987

0.1

RESIDIA Yokohama-Kannai

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

Beneficiary interests
in trust

1,483

1,910

1

92.5 55,158

0.3

1

94.1 55,115

0.3

Beneficiary interests
in trust

702

964

1

100.0 26,6760.2

1100.0 27,717

0.2Real estate

1,468

2,040

1

98.0 57,544

0.4

198.8 58,460

0.4

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,496

3,420

1

100.0 93,388

0.6

197.9 103,368

0.6

S-14
S-15

RESIDIA Okurayama

S-16 RESIDIA Musashikosugi
S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

12

I. Fiscal Period Report

Propertyno.

Name of real estateMusashino-shi,Tokyo

Beneficiary interests
in trust

1,429

1,830

1

91.9 48,899

0.3

195.9 49,718

0.3

Pacific Royal Court Minatomirai
Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

11,250 15,700

1100.0 572,327

3.5

1100.0 572,720

3.5

S-22 Life & Senior House Kohoku II

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

Real estate

1,649

2,330

1

100.0 70,969

0.4

1100.0 70,894

0.4

Beneficiary interests
in trust

747

1,160

1

100.0 32,7600.2

1100.0 32,760

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

2,030

3,050

1

97.7 84,672

0.5

197.2 87,055

0.5

Ichikawa-shi, Chiba

Beneficiary interests
in trust

800

1,110

1

98.8 34,1200.2

198.8 36,188

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

781

1,090

1

100.0 33,035

0.2

197.3 33,193

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

738

1,020

1

93.3 32,7560.2

1100.0 37,073

0.2

S-28 RESIDIA Kawasaki

Beneficiary interests
in trust

1,586

2,330

1

98.1 62,955

0.4

197.0 64,065

0.4

Beneficiary interests
in trust

969

1,170

1

100.0 45,0000.3

1100.0 45,000

0.3

Beneficiary interests
in trust

1,032

1,320

1

100.0 43,2110.3

1100.0 43,127

0.3

Beneficiary interests
in trust

767

1,020

1

100.0 31,055

0.2

1100.0 35,610

0.2

S-32 RESIDIA Hon-Atsugi

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

Real estate

630

744

1

90.6 23,320

0.1

1

98.1 24,166

0.1

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

660

737

1

100.0 23,2770.1

1100.0 20,332

0.1

Funabashi-shi, Chiba

Beneficiary interests
in trust

606

612

1

93.0 17,391

0.1

195.3 18,114

0.1

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,504

1,730

1

100.0 60,646

0.4

1100.0 60,737

0.4

Nagoya-shi, Aichi

Beneficiary interests
in trust

986

1,460

1

90.3 42,994

0.3

193.1 44,468

0.3

Kameyama-shi, Mie

Beneficiary interests
in trust

1,491

1,180

1

98.3 58,701

0.4

198.3 58,686

0.4

Toyonaka-shi, Osaka

Beneficiary interests
in trust

866

957

1

100.0 31,9850.2

188.0 30,599

0.2

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,342

4,310

1

100.0 125,3250.8

1100.0 125,321

0.8Real estate

1,235

1,540

1

97.5 51,435

0.3

198.7 53,509

0.3

821

1,190

1

98.4 35,557

0.2

189.8 35,583

0.2

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-5
R-6
R-8

RESIDIA Imadegawa
RESIDIA Higashizakura
RESIDIA Kameyama
RESIDIA Ryokuchikoen
RESIDIA Kobe Port Island

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,902

2,970

1

99.0 90,612

0.6

196.3 89,576

0.5

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

847

984

1

98.1 36,622

0.2

1

98.1 38,086

0.2

R-14 RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

1,021

1,610

1

98.0 47,675

0.3

198.8 48,740

0.3

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,740

2,660

1

95.6 77,347

0.5

198.7 80,746

0.5

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,104

3,350

1

91.4 94,846

0.6

195.9 97,525

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,100

1,530

1

97.6 67,011

0.4

197.6 66,423

0.4

R-19 RESIDIA Tenjin-Minami

Beneficiary interests
in trust

901

1,190

1

94.6 39,248

0.2

196.4 39,519

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

307

422

1

97.4 15,857

0.1

197.4 16,121

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

588

825

1

97.4 26,7840.2

184.8 26,701

0.2

R-24 RESIDIA Minami-Ichijo

Real estate

1,426

2,030

1

99.7 74,809

0.5

196.7 74,818

0.5Real estate

1,172

1,440

1

97.2 57,792

0.4

198.6 58,451

0.4

R-26 RESIDIA Kita-Sanjo

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

Real estate

975

1,460

1

98.0 49,013

0.3

196.4 49,071

0.3

R-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

737

958

1

91.8 32,058

0.2

193.7 31,915

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

724

785

1

98.1 32,2480.2

1100.0 33,417

0.2

R-11

R-25 RESIDIA Odori-Nishi

13

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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 2R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,248

4,510

1

97.5 148,284

0.9

193.7 147,321

0.9

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

929

1,270

1

92.9 44,244

0.3

192.5 44,513

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

705

915

1

96.3 30,070

0.2

192.6 28,964

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,809

2,610

1

96.0 92,814

0.6

196.3 94,099

0.6

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,068

1,690

1

91.1 44,985

0.3

195.8 46,952

0.3

Nagoya-shi, Aichi

Beneficiary interests
in trust

623

985

1

88.7 27,006

0.2

196.3 28,396

0.2

Sendai-shi, Miyagi

Beneficiary interests
in trust

495

784

1

100.0 24,046

0.1

1100.0 26,306

0.2

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

462

695

1

100.0 21,8470.1

1100.0 21,839

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,367

1,900

1

96.9 57,889

0.4

195.5 58,884

0.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

982

1,420

1

94.5 41,6250.3

195.0 43,022

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

997

1,300

1

98.7 38,5270.2

1100.0 39,012

0.2

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,205

3,300

1

98.7 106,202

0.7

198.4 106,878

0.6

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,130

1,720

1

92.2 52,897

0.3

193.0 54,263

0.3

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,548

3,880

1

95.5 113,1460.7

196.4 116,811

0.7

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

853

1,130

1

91.6 41,634

0.3

196.5 42,636

0.3

R-46 RESIDIA Shinsaibashi West

Osaka-shi, Osaka

Beneficiary interests
in trust

1,853

2,580

1

93.8 70,539

0.4

193.6 73,023

0.4

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

930

1,240

1

84.9 38,4850.2

197.8 38,379

0.2

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,397

2,220

1

95.5 74,719

0.5

193.7 73,886

0.4

R-49 RESIDIA Gosho-Higashi

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,183

1,650

1

95.5 47,3900.3

190.5 47,301

0.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

846

1,090

1

98.7 34,521

0.2

197.5 36,254

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,180

5,130

1

99.5 155,410

1.0

194.5 155,164

0.9

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,707

2,030

1

91.8 66,577

0.4

194.9 70,952

0.4

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,915

3,710

1

92.1 111,559

0.7

192.9 118,111

0.7

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,720

2,460

1

98.9 82,915

0.5

195.9 82,966

0.5

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,022

1,380

1

96.6 43,487

0.3

196.6 44,055

0.3

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,077

1,670

1

95.8 52,881

0.3

198.3 54,375

0.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

563

878

1

97.2 29,648

0.2

193.7 30,523

0.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,025

1,410

1

89.5 46,385

0.3

191.7 48,142

0.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,725

3,760

1

99.1 105,791

0.7

197.3 107,412

0.7

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

823

1,040

1

100.0 35,0940.2

1100.0 35,129

0.2

R-61 RESIDIA Kyoto Okazaki

Kyoto-shi, Kyoto

Beneficiary interests
in trust

232

318

1

100.0

9,629

0.1

1

100.0

9,631

0.1

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,075

1,350

1

100.0 42,6240.3

1100.0 42,324

0.3

R-63 RESIDIA Kita-Nijyo-East II

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

Beneficiary interests
in trust

539

741

1

91.6 26,405

0.2

195.4 25,848

0.2

Beneficiary interests
in trust

491

587

1

100.0 19,846

0.1

1100.0 19,761

0.1

Beneficiary interests
in trust

382

538

1

96.7 20,730

0.1

198.3 20,968

0.1

Beneficiary interests
in trust

1,122

1,320

1

97.7 40,487

0.2

198.9 42,090

0.3

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

R-64 RESIDIA Takamiya
R-65 RESIDIA Soen
R-66 RESIDIA Tenjin

14

I. Fiscal Period Report

Propertyno.

Name of real estate

Location17th (Aug. 1, 2018 ~ Jan. 31, 2019)18th (Feb. 1, 2019 ~ Jul. 31, 2019)
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

Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,127

1,340

1

98.9 42,638

0.3

197.8 42,470

0.3

Beneficiary interests
in trust

1,357

1,630

1

97.4 50,505

0.3

196.2 51,397

0.3

Beneficiary interests
in trust

831

1,170

1

94.3 34,254

0.2

1100.0 37,476

0.2

R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

934

1,110

1

88.6 33,573

0.2

196.4 33,939

0.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

927

965

1

89.6 27,672

0.2

194.8 28,770

0.2

Suita-shi, Osaka

Beneficiary interests
in trust

1,523

1,720

1

100.0 46,1040.3

1100.0 45,929

0.3

R-73 RESIDIA Senri-Banpakukoen

Suita-shi, Osaka

Beneficiary interests
in trust

2,229

2,420

1

100.0 64,529

0.4

1100.0 64,145

0.4

R-74 RESIDIA Sapporo-eki North

Sapporo, Hokkaido

Real estate

742

706

1

91.3 23,1610.1

197.6 24,013

0.1

R-75 RESIDIA Hijiyama-Koen

Hiroshima-shi,
Hiroshima

Beneficiary interests
in trust

690

737

1

94.2 24,872

0.2

197.7 25,789

0.2

R-76 RESIDIA Kita-Nijyo-East III

Sapporo, Hokkaido

Beneficiary interests
in trust

447

439

1

94.9 14,685

0.1

197.5 15,055

0.1

R-77 RESIDIA Shin-Osaka II

Osaka-shi, Osaka

Real estate

696

701

–

–

–

1

100.0

6,929

0.0

423,943 577,054

264

97.0 16,196,049

100.0

265

97.0 16,465,789

100.0

R-67 RESIDIA Yakuin-Oodori
R-68 RESIDIA Hakata II
R-69 RESIDIA Kego

R-72 RESIDIA Senri-Fujishirodai

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 July 31, 2019.
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 July 31, 2019are 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 12 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.
Assets scheduled to be acquired related to forward commitments (Note 5)

Property no.

Name of real estate

Location

Type of ownership

As of May 1, 2019
Real estate appraisal value(million yen)

P-111

RESIDIA Ichigaya II (Note 6)

Shinjuku-ku, Tokyo

Beneficiary interests in trust

2,120

P-112

RESIDIA Ichigaya-Sadohara (Note 7)

Shinjuku-ku, Tokyo

Beneficiary interests in trust

4,880

5. This is a forward-dated sales contract in which settlement and delivery of property will be made at least one month after the date of contract or other similar contracts.
6. ADR concluded a transfer of beneficial interest agreement to acquire RESIDIA Ichigaya II on July 11, 2019. The acquisition price is 1,915 million yen and the scheduled date ofacquisition is September 26, 2019, or otherwise a date agreed separately with the seller (however, this should be by September 30, 2019).
7. ADR concluded a transfer of beneficial interest agreement to acquire RESIDIA Ichigaya-Sadohara on July 11, 2019. The acquisition price is 4,085 million yen and the scheduled
date of acquisition is September 26, 2019, or otherwise a date agreed separately with the seller (however, this should be by September 30, 2019).

15

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)

Payment for
Cumulative
the current
amount paid
periodPurposeEstimated duration

RESIDIA Kyobashi(Chuo-ku, Tokyo)

Major repair work

From: Feb. 2019
To: Jan. 2020

32

–

–

RESIDIA Ikegami(Ota-ku, Tokyo)

Major repair work

From: Aug. 2018
To: Sept. 2019

22

14

14

RESIDIA Nihonbashi-Ningyocho(Chuo-ku, Tokyo)

Major repair work

From: Aug. 2018
To: Sept. 2019

27

19

19

RESIDIA TOWER Kami-Ikebukuro(Tower Building)
Major repair work
(Toshima-ku, Tokyo)

From: Aug. 2018
To: Jan. 2020

384

68

68

RESIDIA Sapporo-eki North(Sapporo-shi, Hokkaido)

From: Dec. 2018
To: Dec. 2019

67

1

1

Major repair work

Totalamounts

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 996 million yen for the entire portfolio and, when combined with repairs and maintenancecost of 652 million yen, the cost of construction work totals 1,649 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

RESIDIA Tenjin-Minami(Fukuoka-shi, Fukuoka)

Major repair work

From: Oct. 2018
To: Mar. 201987

RESIDIA Uzumasa(Kyoto-shi, Kyoto)

Major repair work

From: Nov. 2018
To: Mar. 201981

Life & Senior House Kohoku II(Yokohama-shi, Kanagawa)

Major repair work

From: Sept. 2018
To: Feb. 201980

Other real estate

Major repair work

337

Other real estate

Renovations

409

Total

996

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.

16I. Fiscal Period Report
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

14th FP
15th FP
16th FP
17th FP
18th FP
From: Feb. 1, 2017 From: Aug. 1, 2017 From: Feb. 1, 2018 From: Aug. 1, 2018 From: Feb. 1, 2019
To: Jul. 31, 2017
To: Jan. 31, 2018
To: Jul. 31, 2018
To: Jan. 31, 2019
To: Jul. 31, 2019
2,144
2,040
1,921
1,990
1,705
696
738
814
906
939
801
857
744
1,192
821
2,040
1,921
1,990
1,705
1,822

Acquisitions and Disposals in the 18th FP
1 Acquisitions and Disposals of Real Estate and Asset-Backed Securities
Propertyno.
R-77

Name of real estate
RESIDIA Shin-Osaka II

Acquisition
Acquisition
Acquisition
Price Note
date(million yen)
May 31, 2019
647
647

Total

Disposition
date–

Disposition
Disposition
Book valuePrice(million yen)(million yen)
–
–

–

–

Gain (Loss)on sales(million yen)–––

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
Not applicable2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 18th FP.

Classification
Property management fees
Other rental expenses
Advertising expenses
Other fees

Total amount ofcommission fees (A)(thousand yen)
1,416,799
110,816
21,687
134,140

Breakdown of transaction with interested parties
Amount paid (B)Payee(thousand yen)
ITOCHU Urban Community Ltd.
884,065
ITOCHU Urban Community Ltd.
70,447
ITOCHU Urban Community Ltd.
3,609
ITOCHU Urban Community Ltd.
16,313
ITOCHU Human Resources &95
General Affairs Services Inc.

Share
(B)/(A)(%)
62.4
63.6
16.6
12.2
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 Affairs 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 18th FP.

17

18

II. Financial Statements
Balance Sheets(Thousands of yen)
As of January 31, 2019

AssetsCurrent assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
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

19

As of July 31, 2019

14,553,947
9,765,681
188,117345,318
10,599(6,455)24,857,208

14,777,247
9,747,503
196,656435,609
11,059(7,949)25,160,126

76,197,893(13,841,708)
62,356,184
23,973(7,904)
16,06892,420(23,640)
68,779339,929(159,743)
180,185
74,407,327
85,671
155,149,771(27,245,480)
127,904,290
194,208(107,736)
86,471
185,984(112,638)
73,346884,895(557,469)
327,426
157,508,159
170,322423,184,234

76,686,348(14,692,904)
61,993,443
26,061(8,711)
17,350101,343(27,866)
73,476
382,910(180,351)
202,558
74,918,371
1,863
155,741,696(29,012,507)
126,729,188
195,683(112,350)
83,332
197,242(119,749)
77,493920,684(598,044)
322,639
157,508,159
109,521422,037,398

1,940,516
15
1,940,532

1,906,079
5,127
1,911,207

(Thousands of yen)
As of January 31, 2019
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 July 31, 2019786,705
556,653
1,038,903
1,168
2,383,430
427,508,197

721,020562,774
1,038,903
1,180
2,323,878
426,272,484

1,619
120,548
122,168
452,487,574

231
156,725
156,956
451,589,567

378,449
1,000,000

253,4192,000,000

4,000,000

4,000,000

17,700,000

20,870,000

1,389,839
109,203
10,934
69,77818,794
24,676,999

1,392,961
78,237
26,631
69,792
18,79528,709,838

25,000,000
178,218,000
1,239,315
3,265,660
18,187
207,741,163
232,418,162

33,000,000
165,448,000
1,275,575
3,294,022
25,100203,042,697
231,752,536

127,690,098

127,690,098

53,220,279

53,220,279

32,193,397
32,193,397
6,983,823
92,397,500
220,087,598

31,857,520
31,857,520
7,094,233
92,172,033
219,862,132(18,187)(18,187)
220,069,411
452,487,574(25,100)(25,100)
219,837,031
451,589,567

20

II. Financial Statements
Statements of Income

Operating revenue (Note 18)
Rental revenue – real estate (Notes 5 and 9)
Total operating revenue
Operating expenses
Expenses related to rent business (Notes 5 and 9)
Asset management fees (Note 14)
Asset custody fees
Administrative service fees
Directors’ compensation
Taxes and dues
Provision of allowance for doubtful accounts
Bad debt expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Compensation income
Reversal of distribution payable
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
Other offering costs associated with issuance ofinvestment units
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)
Unappropriated retained earnings (undisposed loss)

21(Thousands of yen)
For the six months ended
January 31, 2019

For the six months ended
July 31, 201916,196,049
16,196,049

16,465,789
16,465,789

6,333,386
1,196,544
9,780
58,4243,600
275,837345
115
200,114
8,078,149
8,117,899

6,519,835
1,195,611
9,774
57,9293,600
285,035
1,493–
190,164
8,263,445
8,202,344

6,769
1,984
1,089
1,334
11,178

6,825
98
1,284
226
8,434

808,186
127,294
1,388

771,790
124,750
1,388

10,548

11,214–

1,562

194,009
3,222
1,144,649
6,984,428
6,984,428
605
605
6,983,823
6,983,823

183,377
21,856
1,115,940
7,094,838
7,094,838
605
605
7,094,233
7,094,233

Statements of Changes in Net Assets
For the six months ended January 31, 2019

(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
beginning of period 127,690,098 53,220,279 32,529,450 32,529,450

7,087,597 92,837,327 220,527,425

DeferredTotalgain or loss valuation andon hedging translation
instruments adjustments(3,423)

Total net
assets(3,423) 220,524,002

Changes in items
during the period
Reversal ofreserve fortemporarydifference
adjustments(336,052)(336,052)

336,052–––

Dividends fromsurplus(7,423,650) (7,423,650) (7,423,650)(7,423,650)

Net income

6,983,823

6,983,823

6,983,823

6,983,823

Net changes in
items other thanunitholders’ equity
in the fiscal year
Total changes in
items during theperiodBalance at the endof period––(336,052)(336,052)(14,763)(14,763)(14,763)(439,826)(14,763)(14,763)(454,590)

6,983,823 92,397,500 220,087,598(18,187)(18,187) 220,069,411(103,774)

127,690,098 53,220,279 32,193,397 32,193,397(439,826)

For the six months ended July 31, 2019

(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
beginning of period 127,690,098 53,220,279 32,193,397 32,193,397

6,983,823 92,397,500 220,087,598

DeferredTotalgain or loss valuation andon hedging translation
instruments adjustments(18,187)

Total net
assets(18,187) 220,069,411

Changes in items
during the period
Reversal ofreserve fortemporarydifference
adjustments(335,876)(335,876)

335,876–––

Dividends fromsurplus(7,319,700) (7,319,700) (7,319,700)(7,319,700)

Net income

7,094,233

7,094,233

7,094,233

7,094,233

Net changes in
items other thanunitholders’ equity
in the fiscal year
Total changes in
items during theperiodBalance at the endof period––(335,876)(335,876)

127,690,098 53,220,279 31,857,520 31,857,520(6,913)(6,913)(6,913)(225,466)(6,913)(6,913)(232,379)

7,094,233 92,172,033 219,862,132(25,100)(25,100) 219,837,031

110,410(225,466)22

II. Financial Statements
Statements of Cash Distributions
For the six months ended
January 31, 2019
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

23

For the six months ended
July 31, 2019

6,983,823,086 yen

7,094,233,633 yen

335,876,914 yen

336,166,367 yen

7,319,700,000 yen(5,422 yen)

7,430,400,000 yen(5,504 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 7,319,700,000 yen,which is the sum of the reversal of
the reserve for temporary difference
adjustments (RTA) of 335,876,914 yen
and unappropriated retained earningsof 6,983,823,086 yen for the fiscal
period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

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 7,430,400,000 yen,which is the sum of the reversal of
the reserve for temporary difference
adjustments (RTA) of 336,166,367 yen
and unappropriated retained earningsof 7,094,233,633 yen for the fiscal
period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

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
Other offering costs associated with issuance of investment
units
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 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 (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 intrust, 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 for investment corporation bond issuance costs
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period (Note 8)(Thousands of yen)
For the six months ended
January 31, 2019

For the six months ended
July 31, 2019

6,984,428
2,705,686
1,388
10,548

7,094,838
2,730,888
1,388
11,214

–

1,562

(769)
(6,769)808,186
127,294
21,812
138,386(36,466)
71,683
11,312
29,2053,303
40,179508
10,909,919
437(943,342)(614)
9,966,399

1,493(6,825)
771,790
124,750(8,539)(90,291)
15,697(75,389)
1,559(30,347)
13
65,685(1,781)
10,607,709
854(897,159)(668)
9,710,735(7,000,000)
5,000,000(311,311)(1,295,173)
12,040(7,000,000)
8,000,000(1,006,095)(598,272)
36,25936,97228,361(3,557,472)(539,746)

2,000,000(2,000,000)
9,760,000(9,760,000)
2,000,000(2,000,000)(13,830)(7,422,752)(7,436,583)(1,027,656)
17,347,285
16,319,628

1,000,000–
2,100,000(11,700,000)
8,000,000–(47,391)(7,318,475)(7,965,867)
1,205,121
16,319,628
17,524,750

24

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 (31.8 billion yen as of the end of this fiscal
period) due to the profit from negative goodwill, and allowed ADR to demonstrate one of its strengths of delivering stabledividends 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 the 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 Japan. Moreover,the notes to the financial statements include certain information which might not be required under Japanese GAAP but ispresented 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.

25

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 1,057 thousand yen in theprevious period and 1,454 thousand yen in the current 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 of 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.

26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 January 31, 2019

As of July 31, 201950,00050,000(2) Commitment line agreements
ADR has executed commitment line agreements with banks.
(Thousands of yen)
As of January 31, 2019
Total commitment line of credit

20,000,000

20,000,000––

20,000,000

20,000,000

Amount used
Unused balance

As of July 31, 2019(3) Provision and reversal of the reserve for temporary difference adjustments
For the six months ended January 31, 2019

Initial amountReserve fordividends (Note)(Thousands of yen)

Balance as of July
31, 2018

Funds drawn down
during 17th FP

Balance as ofJanuary 31, 2019

32,529,450

336,052

32,193,397

33,552,162

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 July 31, 2019

Initial amountReserve fordividends (Note)

33,552,162(Thousands of yen)

Balance as ofJanuary 31, 2019

Funds drawn down
during 18th FP

Balance as of July
31, 2019

32,193,397

335,876

31,857,520

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).

27

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

For the six months ended
January 31, 2019

For the six months ended
July 31, 2019

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

14,373,693

14,458,933

Facility charges

799,508

812,679

Parking fees

436,471

15,609,674

438,764

15,710,377

Other revenue related to property leasing
Income from leasing rights

82,032

Other504,342

Total revenue from property leasing activities

90,133586,374

665,278

16,196,049

755,411
16,465,789

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

871,119880,277

1,107,235

1,180,620

Utilities

261,826

256,973

Repairs and maintenance585,228

652,724

Property-casual insurance

25,95025,540Trust fees

69,56469,575

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

706,795
2,705,666

723,524
6,333,386

2,730,600

6,519,835

6,333,386

6,519,835

9,862,662

9,945,954

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

As of January 31, 2019

(Units)

As of July 31, 2019

Total number of units authorized

6,000,000

6,000,000

Total number of units issued and outstanding

1,350,000

1,350,000

28

III. Notes to Financial Statements
7 Statements of Cash Distributions(1) Reserve for temporary difference adjustments
For the six months ended January 31, 2019
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 theperiod in which the transfer to the reserve was made. As such, ADR has drawn down 335,876,914 yen of the reserve
during the fiscal period ended January 31, 2019 (17th FP).
For the six months ended July 31, 2019
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 theperiod in which the transfer to the reserve was made. As such, ADR has drawn down 336,166,367 yen of the reserve
during the fiscal period ended July 31, 2019 (18th 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 January 31, 201929

As of July 31, 2019

Cash and deposits

14,553,947

14,777,247

Cash and deposits in trust

9,765,681

9,747,503

Time deposits held over three months(8,000,000)(7,000,000)

Cash and cash equivalents

16,319,628

17,524,750

9 Leases(1) Operating leases (as a lessee)
Future lease payments are as follows:(Thousands of yen)

As of January 31, 2019

As of July 31, 2019

Due within one year

739,236

740,244

Due after one year

12,038,557

11,683,954

Total

12,777,793

12,424,198

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 January 31, 2019

As of July 31, 2019

Due within one year

3,446,011

2,920,428

Due after one year

5,172,798

5,294,995

Total

8,618,809

8,215,42430

III. Notes to Financial Statements
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 through loans and investment corporation bonds are used primarily to finance the acquisition of real estate
properties, repay existing loans, or redeem existing investment corporation bonds. ADR is exposed to liquidity
risk in that it may not be able to raise funds through alternative financing sources by the repayment date or at theredemption. 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.
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 January 31, 2019
(Thousands of yen)Book value

Unrealized gain (loss)

1) Cash and deposits

14,553,947

14,553,947–

2) Cash and deposits in trust

9,765,681

9,765,681–

3) Short-term loans payable

1,000,000

1,000,244(244)4) Current portion of investment corporation bonds

4,000,000

4,026,800(26,800)

5) Current portion of long-term loans payable

17,700,000

17,757,339(57,339)

6) Investment corporation bonds

25,000,000

25,626,293(626,293)

7) Long-term loans payable

178,218,000

181,398,510(3,180,510)–(1,535,808)(1,535,808)

18,18718,187–8) Derivative transactions(Special treatment for interest rate swaps)
9) Derivative transactions(Basic treatment for interest rate swaps)

31

Fair valueAs of July 31, 2019

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

14,777,247

14,777,247–

2) Cash and deposits in trust

9,747,503

9,747,503–

3) Short-term loans payable

2,000,000

1,999,368

631

4) Current portion of investment corporation bonds

4,000,000

4,004,800(4,800)5) Current portion of long-term loans payable

20,870,000

20,913,294(43,294)

6) Investment corporation bonds

33,000,000

33,796,929(796,929)

7) Long-term loans payable

165,448,000

168,798,366(3,350,366)–(1,424,498)(1,424,498)

25,10025,100–8) Derivative transactions(Special treatment for interest rate swaps)
9) Derivative transactions(Basic treatment for interest rate swaps)*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.

*2. Redemption schedules of monetary claims and securities after balance sheet date.
As of January 31, 2019

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

14,553,947

–

–

–

–

–

Cash and deposits in trust

9,765,681

–

–

–

–

–

24,319,628

–

–

–

–

–

Total

As of July 31, 2019

(Thousands of yen)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

14,777,247

–

–

–

–

–

Cash and deposits in trust

9,747,503

–

–

–

–

–

24,524,750

–

–

–

–

–

Total

32

III. Notes to Financial Statements*3 Repayment schedules of investment corporation bonds, loans payable, and other interest-bearing loans after balance
sheet date.
As of January 31, 2019
(Thousands of yen)Due in one
year or less
Short-term loans payable
Current portion of
investment corporation
bonds
Current portion of long-termloans payable
Investment corporationbonds
Long-term loans payable
Total

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

1,000,000

–

–

–

–

–

4,000,000

–

–

–

–

–

17,700,000

–

–

–

–

–

–

1,500,000–

2,000,000

3,000,000

18,500,000–

25,070,000

27,778,000

21,710,000

15,760,000

87,900,000

22,700,000

26,570,000

27,778,000

23,710,000

18,760,000

106,400,000

As of July 31, 2019

(Thousands of yen)Due in one
year or less

Short-term loans payable
Current portion of
investment corporation
bonds
Current portion of long-termloans payable
Investment corporationbonds
Long-term loans payable
Total

11 Securities
As of January 31, 2019
Not applicable.
As of July 31, 2019
Not applicable.

33

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

–

–

–

–

–

4,000,000

–

–

–

–

–

20,870,000

–

–

–

–

–

–

1,500,000–

5,000,000

7,500,000

19,000,000–

25,218,000

26,020,000

15,310,000

13,300,000

85,600,000

26,870,000

26,718,000

26,020,000

20,310,000

20,800,000

104,600,000

12 Derivative Transactions(1) Derivative transactions to which hedge accounting is not applied
As of January 31, 2019
Not applicable.
As of July 31, 2019
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 January 31, 2019 and July 31, 2019 are as follows:
As of January 31, 2019
(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
payable98,858,000

82,058,000(1,535,808)(*3)

Long-term loans
payable2,000,000

2,000,000(18,187)

As of July 31, 2019

(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
payable87,158,000

72,188,000(1,424,498)(*3)

Long-term loans
payable2,000,000

2,000,000(25,100)*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” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore, interest rate swaps are not stated at fair value in the balance sheets.

34III. Notes to Financial Statements
13 Proﬁts or Losses from Investments Accounted for Using the Equity Method
For the six months ended January 31, 2019
Not applicable as ADR does not have any aﬃliated companies.
For the six months ended July 31, 2019
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 January 31, 2019
Not applicable.
As of and for the six months ended July 31, 2019
Not applicable.
(2) Aﬃliated companies
As of and for the six months ended January 31, 2019
Not applicable.
As of and for the six months ended July 31, 2019
Not applicable.
(3) Fellow subsidiaries
As of and for the six months ended January 31, 2019
Not applicable.
As of and for the six months ended July 31, 2019
Not applicable.
(4) Directors and major individual unitholders
As of and for the six months ended January 31, 2019

Type ofrelated party

Name ofrelatedparty

Capital stockor amount
invested
Locationin capital(Thousandsof yen)Business
description or
occupation

Percentage Relationshipsof voting with relatedpartiesrights held

Nature of transactions

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

Payment Managementfee 2of asset
Asset
management managementcompany fees to ADIM Management
(*1)
fee 3
Acquisition
fee

�

35

Account
name

Period-end
balance(Thousandsof yen)Accounts
456,568
payable –
(*2)
other

493,093(*3)

Accounts
377,049
payable –
(*2)
other

407,213(*3)

Accounts
362,926
payable –
(*2)
other

391,960(*3)

Transaction
amount(Thousandsof yen)

4,536
(*3)
(*4)

–

–

As of and for the six months ended July 31, 2019

Type ofrelated party

Name ofrelatedparty

Capital stockor amount
invested
Locationin capital(Thousandsof yen)Business
description or
occupation

Percentage Relationshipsof voting with relatedpartiesrights held

Nature of transactions

Management
fee 1
Directors
and their
immediatefamilymembers

TakeshiTakano––Executive
Director of
ADR and thePresident of
ADIM–

Payment Managementof asset
Asset
fee 2
management managementcompany fees to ADIMManagement
(*5)
fee 3
Acquisition
fee

Account
name

Period-end
balance(Thousandsof yen)Accounts
448,768
payable –
(*2)
other

484,669(*3)

Accounts
380,296
payable –
(*2)
other

410,720(*3)

Accounts
366,546
payable –
(*2)
other

395,870(*3)

Transaction
amount(Thousandsof yen)

6,988
(*3)
(*4)

–

–

Terms and conditions of transactions and policy on determining the terms and conditions*1. ADR Executive Director Kenji Kousaka executed the transactions acting as a representative of a third party (ADIM) and respective amounts of remuneration in the form of asset
management fees are determined in accordance with the terms set forth in ADR’s Articles of Incorporation.
*2. The transaction amount does not include consumption taxes.
*3. The transaction amount includes consumption taxes.
*4. The transaction amount is included in the acquisition cost of the relevant real estate properties.
*5. ADR Executive Director Takeshi Takano executed the transactions acting as a representative of a third party (ADIM) and respective amounts of remuneration in the form of asset
management fees are determined in accordance with the terms set forth in ADR’s Articles of Incorporation. On June 14, 2019, Takeshi Takano replaced Kenji Kousaka as the Executive
Director of ADR.

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

As of January 31, 2019

As of July 31, 2019

Deferred tax assets
Excess provision of allowance for doubtful accounts

2,039

2,500

Valuation difference on assets acquired through merger

9,749,656

9,627,754

Tax loss carryforwards*

1,371,552

127,693

131,274

141,567

11,254,522

9,899,517(1,371,552)(127,693)(9,882,969)(9,771,823)(11,254,522)(9,899,517)

–

–

–

–

Other
Deferred tax assets, subtotal
Less valuation allowance associated with tax loss
carryforwards
Less valuation allowance associated with total of
deductible temporary differences, etc.
Less valuation allowance, subtotal
Total deferred tax assets
Net deferred tax asset

36

III. Notes to Financial Statements* Amounts stated on the basis of maximum carryforward periods of tax loss carryforwards and deferred tax assets.
As of January 31, 2019
(Thousands of yen)
One year
Two years Three years Four years
One year or
through two
throughthrough four through five
less
years
three years
years
years

After five
years

Total

Tax loss carryforwards (a)1,243,330

128,222

–

–

–

–

1,371,552

Less valuation allowance(1,243,330)(128,222)

–

–

–

–

(1,371,552)

–

–

–

–

–

–

–

Deferred tax assets(a) The tax loss carryforward is calculated based on the statutory effective tax rate.

As of July 31, 2019

(Thousands of yen)
One year
Two years Three years Four years
One year or
through two
throughthrough four through five
less
years
three years
years
years

After five
years

Total

Tax loss carryforwards (a)127,693

–

–

–

–

–

127,693

Less valuation allowance(127,693)

–

–

–

–

–

(127,693)

–

–

–

–

–

–

–

Deferred tax assets(a) The tax loss carryforward is calculated based on the statutory effective tax rate.

(2) Reconciliation between the statutory tax rates and the effective tax rates after the application of tax effect accounting(Unit: %)As of January 31, 2019
Statutory tax rate

As of July 31, 2019

31.51

31.51

Increase (decrease) in valuation allowance(1.03)(1.57)

Increase (decrease) from tax rate changes

–

0.56

(Adjustments)

Deductible dividends(30.48)(30.51)

Other

0.01

0.01

Effective tax rate after the application of tax effect accounting

0.01

0.01

16 Retirement Beneﬁts
As of and for the six months ended January 31, 2019
Not applicable because ADR does not have retirement benefit plans.
As of and for the six months ended July 31, 2019
Not applicable because ADR does not have retirement benefit plans.

37

17 Asset Retirement Obligations
As of and for the six months ended January 31, 2019
Not applicable.
As of and for the six months ended July 31, 2019
Not applicable.

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 January 31, 20191) 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 July 31, 20191) 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.

38

III. Notes to Financial Statements
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 January 31, 2019

As of July 31, 2019

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)

426,263,604

425,124,751(1,138,853)(1,181,273)

425,124,751

423,943,477

561,561,000

577,054,000*1. The book value is the cost of acquisition less accumulated depreciation.
*2. Of the changes in the value of rental properties during the period, the main element of increase in the previous period was the acquisition of real estate beneficiary interests in trust
for one property (453,545 thousand yen), and the decrease is mainly a result of posting depreciation. The main element of increase in the current period was the acquisition of one realestate property (697,363 thousand yen) and the decrease is mainly a result of posting depreciation.
*3. The fair value at the end of the current period is the appraisal or assessment value provided by an external real estate appraiser. The fair value with respect to RESIDIA Higashi-Ginza is
the scheduled disposition price.

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
January 31, 2019

As of and for the six months ended
July 31, 2019

Net assets per unit

163,014

162,842

Net income per unit

5,173

5,254

*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
January 31, 2019
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)39

For the six months ended
July 31, 2019

6,983,823

7,094,233––

6,983,823

7,094,233

1,350,000

1,350,000

21 Signiﬁcant Subsequent Event
For the six months ended July 31, 2019
1. Acquisition of assets and agreements concluded on the acquisition of assets
Following the basic policies prescribed in its Articles of Incorporation, ADR acquired the following assets.
(1) RESIDIA Ichigaya II
Type of asset:
Acquisition price:
Acquisition date:
Location:
Area:
Structure:
Construction completion date:

Real estate beneficiary interests in trust
1,915 million yen
September 26, 2019
2-5 Ichigaya-sadohara, Shinjuku-ku, Tokyo
600.09 m2 in land and 2,358.12 m2 in buildings
Reinforced concrete structure with flat roof and 14 floors
September 2007

(2) RESIDIA Ichigaya-Sadohara
Type of asset:
Acquisition price:
Acquisition date:
Location:
Area:
Structure:
Construction completion date:

Real estate beneficiary interests in trust
4,085 million yen
September 26, 20193-19 Ichigaya-sadohara, Shinjuku-ku, Tokyo
1,457.21m2 in land and 7,303.76m2 in buildings
Reinforced concrete structure with flat roof and 5 floors/1 basement floor
February 2008

Note: The acquisition price does not include the settlement amount equivalent to the liable amount of property taxes,
urban planning taxes and depreciable asset taxes or consumption taxes and local consumption taxes.
Following the basic policies prescribed in its Articles of Incorporation, ADR concluded agreements on the acquisition of thefollowing assets:(1) RESIDIA Nishikoyama
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,671 million yen
Date of conclusion of agreement: September 10, 2019
Scheduled date of acquisition:
November 1, 2019
Location:
1-22-3 Haramachi, Meguro-ku, Tokyo
Area:
1,013.48 m2 in land (Note 3) and 2,514.87 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 4 floors
Construction completion date:
January 2018
(2) RESIDIA Minami Shinagawa II
Type of asset:
Real estate
Acquisition price:
2,120 million yen
Date of conclusion of agreement: September 10, 2019
Scheduled date of acquisition:
March 23, 2020 or another day as is agreed upon with the seller (however, before
April 22, 2020.)
Location:
2-15-10 Minami-shinagawa, Shinagawa-ku, Tokyo
Area:
743.91 m2 in land (Note 4) and 2,549.22 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 8 floors
Construction completion date:
October 2015
(3) RESIDIA Kagurazaka II
Type of asset:
Real estate
Acquisition price:
1,110 million yen
Date of conclusion of agreement: September 10, 2019
Scheduled date of acquisition:
March 23, 2020 or another day as is agreed upon with the seller (however, before
April 22, 2020.)
Location:
8-9 Shinogawamachi, Shinjyuku-ku, Tokyo
Area:
396.69 m2 in land (Note 5) and 1,091.12 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 5 floors
Construction completion date:August 201640

III. Notes to Financial Statements(4) RESIDIA Ikegami II
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,074 million yen
Date of conclusion of agreement: September 10, 2019
Scheduled date of acquisition:
November 11, 2019
Location:
5-4-2 Ikegami, Ota-ku, TokyoArea:
436.36 m2 in land and 1,534.90 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 9 floors
Construction completion date:
September 2016
(5) RESIDIA Sasazuka III
Type of asset:
Real estate
Acquisition price:
1,361 million yen
Date of conclusion of agreement: September 10, 2019
Scheduled date of acquisition:
March 23, 2020 or another day as is agreed upon with the seller (however, before
April 22, 2020)
Location:
1-1-6 Honan, Suginami-ku, Tokyo
Area:
280.59 m2 in land and 1,670.21 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 13 floors
Construction completion date:February 2019(6) RESIDIA Tsutsujigaoka-koenType of asset:
Real estate beneficiary interests in trust
Acquisition price:
740 million yen
Date of conclusion of agreement: August 29, 2019
Scheduled date of acquisition:
December 19, 2019 or another day as is agreed upon with the seller (however,before December 27, 2019)
Location:
144 Minaminome, Harano-machi, Sendai-shi, Miyagi
Area:
610.96 m2 in land and 2,302.34 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 10 floors
Construction completion date:February 2006
(7) RESIDIA Sendai-Kamisugi
Type of asset:
Real estate
Acquisition price:
1,409 million yen
Date of conclusion of agreement: September 10, 2019
Scheduled date of acquisition:
March 23, 2020 or another day as is agreed upon with the seller (however, before
April 22, 2020)
Location:
3-3-28 Kamisugi, Aoba-ku, Sendai-shi, Miyagi
Area:
638.13 m2 in land and 2,597.53 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 14 floors
Construction completion date:
March 2019
Notes: 1. The acquisition price does not include the settlement amount equivalent to the liable amount of property
taxes, urban planning taxes and depreciable asset taxes or consumption taxes and local consumption taxes.
2. In the event that a transaction agreement for such property is canceled for reasons attributable to ADR (asthe buyer) then ADR must make payment to the seller of a cancellation penalty amounting to 20% of thetransaction price.
3. The area does not include the area corresponding to co-ownership interests in the private road portion.
The area includes a portion of private road burden amounting to approximately 17.39 m2.
4. The area includes a setback portion of approximately 14.31m2 and a sidewalk area of approximately 42.68 m2.
5. The area does not include the area corresponding to co-ownership interests in the private road portion.
2. Disposition of asset
Following the basic policies prescribed in its Articles of Incorporation, ADR disposed the following asset.
RESIDIA Higashi-Ginza
Type of asset:
Disposition price:
Disposition date:

Real estate beneficiary interests in trust
5,740 million yen
September 26, 2019

Note: The disposition price does not include the amount required to settle property taxes, urban planning taxes anddepreciable asset taxes or consumption taxes and local consumption taxes.

41

3. Issuance of new investment units
At its meeting held on September 10, 2019, the Board of Directors resolved to issue new investment units for the purposeof acquiring real estate (specified assets) and repaying loans. With regard to the public offering for the issuance of new
investment units, the payment completed on September 26, 2019 and the payment for issuance of new investment units
by third-party allotment ended on October 21, 2019.
Accordingly, the total unitholders’ capital is 139,034,823,304 yen and the total number of investment units issued is1,385,000.
[Issuance of new investment units by public offering]Number of new investment units issued: 33,000
Issuance price:
334,425 yen per unit
Total value of issue:
11,036,025,000 yen
Issuance price (underwriting price):
324,135 yen per unit
Total value of issue:
10,696,455,000 yen
Payment date:
September 26, 2019
[Issuance of new investment units by third-party allotment]
Number of new investment units issued: 2,000 units
Issuance price:
324,135 yen per unit
Total value of issue:
648,270,000 yen
Application period (application date):
October 18, 2019
Payment date:
October 21, 2019
Allottees:
Mizuho Securities Co., Ltd.

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
89,158,000

74,188,000(1,449,598)

89,158,000

74,188,000(1,449,598)*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 1,424,498 thousand yen, special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for
Financial Instruments” (issued by the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore, interest rate swaps are not stated at fairvalue in the balance sheets.

42III. Notes to Financial Statements
24 Summary of Real Estate

Property, plant and equipment

As of and for the six months ended July 31, 2019

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

76,197,893

488,455–

76,686,348

14,692,904

851,196

61,993,443*1Structures

23,973

2,088–

26,061

8,711

807

17,350–Machinery and equipment

92,4208,922–

101,343

27,866

4,225

73,476–

Tools, furniture and fixtures

339,929

42,980–382,910

180,351

20,607

202,558–

74,407,327

511,043–

74,918,371––

74,918,371*1

85,671

1,863

85,671

1,863

–

–

1,863

–

Buildings in trust

155,149,771

591,924–

155,741,696

29,012,507

1,767,027

126,729,188–

Structures in trust

194,208

1,475–

195,683

112,350

4,614

83,332–

Machinery and equipmentin trust

185,984

11,257–

197,242

119,749

7,110

77,493–Tools, furniture and fixturesin trust

884,895

35,788–920,684

598,044

40,574

322,639–

157,508,159––

157,508,159––

157,508,159–

170,322

109,521

170,322

109,521––

109,521–465,240,557

1,805,321

255,993

466,789,885

44,752,486

2,696,163

422,037,398

2,356,072––

2,356,072

449,993

34,437

1,906,079–

19,506

5,400–

24,906

19,779

287

5,127

–

Subtotal

2,375,579

5,400

–

2,380,979

469,772

34,725

1,911,207

Total

467,616,137

1,810,721

255,993

469,170,864

45,222,258

2,730,888

423,948,605

LandConstruction 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 July 31, 2019, primarily represents the acquisition of the property listed below.
RESIDIA Shin-Osaka II

25 Schedule of Other Speciﬁed Assets
Not applicable.

43

26 Schedule of Investment Corporation Bonds
As of and for the six months ended July 31, 2019

(Thousands of yen)

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

Issue date

ADR Bond #18 (Unsecured)Sep. 12, 2012

4,000,000–

4,000,000

1.230

Sep. 12, 2019 (*3) Unsecured

ADR Bond #19 (Unsecured)

Apr. 25, 2013

3,000,000–

3,000,000

1.320

Apr. 25, 2023 (*2) Unsecured

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

0.326

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

0.220

Jul. 24, 2024 (*2) Unsecured

ADR Bond #32 (Unsecured)

Jul. 25, 2019––

3,000,000 0.3485

Jul. 25, 2029 (*2) Unsecured

Total

–

29,000,000–

37,000,000–*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
Investment
corporation bond

4,000,000

Due after one year Due after two years
through two years through three years
1,500,000–

Use(*2) Unsecured(*2) Unsecured––

Collateral–(Thousands of yen)

Due after three
Due after four years
years
through five years
through four years
5,000,000

7,500,000

44III. Notes to Financial Statements
27 Schedule of Loans
As of and for the six months ended July 31, 2019

Classification

Short-termloans payable

Lenders
Sumitomo Mitsui Trust Bank Limited
MUFG Bank, Ltd.

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

1,000,000––

1,000,000

0.17%

Sep. 30,
2019

(*5)

0.17%

Jan. 31,
2020

(*5)

–

Jun. 28,
2019

(*5)

Notes

Unsecured
Unguaranteed

1,000,000–

1,000,000

1,000,000

1,000,000–

2,000,000

1,200,000–

1,200,000–

Sumitomo Mitsui Trust Bank Limited

800,000–

800,000–

Aozora Bank, Ltd.

700,000–

700,000–

MUFG Bank, Ltd.

450,000––

450,000

1.16%

Sep. 30,
2019

(*6)

Sumitomo Mitsui Trust Bank Limited

450,000––

450,000

1.16%

Sep. 30,
2019

(*6)

MUFG Bank, Ltd.

1,000,000––

1,000,000

1.03%
(*2)

Nov. 29,
2019

(*6)

Sumitomo Mitsui Banking Corporation

1,200,000––

1,200,000

1,200,000––

1,200,000

0.95%
(*2)

Nov. 29,
2019

(*6)

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

4,502,000–

4,502,000–

Sumitomo Mitsui Trust Bank Limited

3,595,000–

3,595,000––

Jul. 25,
2019

(*5)

Aozora Bank, Ltd.

903,000–

903,000–

MUFG Bank, Ltd.

–

1,200,000–

1,200,000

0.81%

Mar. 24,
2020

(*3)

Sumitomo Mitsui Trust Bank Limited–

1,200,000–

1,200,000

0.82%

Mar. 24,2020(*3) Unguaranteed

MUFG Bank, Ltd.

–1,300,000–

1,300,000

0.81%

Mar. 24,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited–

1,300,000–

1,300,000

0.82%

Mar. 24,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited–

920,000–

920,000

Aozora Bank, Ltd.

–

1,830,000–

1,830,000

0.88%
(*2)

Mar. 24,
2020

(*5)

Resona Bank, Limited–

1,370,000–

1,370,000

500,000––

500,000

0.92%
(*2)

Sep. 30,
2019

(*3)

The Yamaguchi Bank, Ltd.

–

500,000–

500,000

0.93%
(*2)

Jun. 18,
2020

(*3)

The Yamaguchi Bank, Ltd.

500,000––

500,000

0.85%
(*2)

Dec. 18,
2019

(*3)

Mizuho Bank, Ltd.

–2,900,000–

2,900,000–

2,350,000–

2,350,000

Feb. 14,
2020

(*5)

Mizuho Trust & Banking Co., Ltd.

0.74%
(*2)

Aozora Bank, Ltd.

700,000––

700,000

0.42%
(*2)

Oct. 31,
2019

(*5)

Total

17,700,000

14,870,000

11,700,000

20,870,000

MUFG Bank, Ltd.

Current portion of long-term loans payable

Balance at the
beginning of
period–Total

The Nishi-Nippon City Bank, Ltd.

45

(Thousands of yen)UnsecuredClassification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDevelopment Bank of Japan Inc.

2,200,000––

2,200,000

1.23%

Nov. 29,
2020

(*5)

Development Bank of Japan Inc.

2,200,000––

2,200,000

1.40%

Nov. 29,
2021

(*5)

MUFG Bank, Ltd.

1,200,000–

1,200,000––

Mar. 24,
2020

(*3)

Sumitomo Mitsui Trust Bank Limited

1,200,000–

1,200,000––

Mar. 24,
2020

(*3)

MUFG Bank, Ltd.

1,300,000–

1,300,000––

Mar. 24,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited

1,300,000–

1,300,000––

Mar. 24,
2020

(*5)

Development Bank of Japan Inc.

1,150,000––

1,150,000

1.08%

Mar. 24,
2021

(*4)

–

Mar. 24,
2020

(*5)

1.25%
(*2)

Oct. 29,
2021

(*5)

1.63%
(*2)

Dec. 22,
2021

(*5)

1.54%
(*2)

Jun. 25,
2021

(*5)

1.07%
(*2)

Sep. 30,
2020

(*3)

Lenders

Sumitomo Mitsui Trust Bank Limited

920,000–

920,000–

Aozora Bank, Ltd.

1,830,000–

1,830,000–

Resona Bank, Limited

1,370,000–

1,370,000–

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

Aozora Bank, Ltd.

1,379,000––

1,379,000

919,000––

919,000

Resona Bank, Limited

Long-term loans payable

Interest
Repayment
rate
Use
date
(*1)

Mizuho Trust & Banking Co., Ltd.

1,000,000––

1,000,000

The Norinchukin Bank

1,000,000––

1,000,000

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)

Nov. 26,
2021

(*3)

Aozora Bank, Ltd.

1,800,000––

1,800,000

1.16%
(*2)

Shinsei Bank, Limited

1,000,000––

1,000,000

1.32%
(*2)

Jun. 17,
2022

(*3)

Shinsei Bank, Limited

700,000––

700,000

1.10%
(*2)

Jun. 18,
2021

(*3)

The Yamaguchi Bank, Ltd.

500,000–

500,000––

Jun. 18,
2020

(*3)

MUFG Bank, Ltd.

500,000––

500,000

1.59%
(*2)

Feb. 14,
2025

(*5)

1.44%
(*2)

Feb. 16,
2024

(*5)

1.28%
(*2)

Feb. 16,
2023

(*5)

1.08%
(*2)

Feb. 16,
2022

(*5)

0.89%
(*2)

Feb. 16,
2021

(*5)

–

Feb. 14,
2020

(*5)

0.58%
(*2)

Jan. 29,
2021

(*3)

MUFG Bank, Ltd.

500,000––

500,000

Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

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

Mizuho Trust & Banking Co., Ltd.

500,000––

500,000

Mizuho Bank, Ltd.

2,900,000––

2,900,000

Mizuho Trust & Banking Co., Ltd.

1,500,000––

1,500,000

MUFG Bank, Ltd.

270,000––

270,000

Mizuho Bank, Ltd.

2,900,000–

2,900,000–

Mizuho Trust & Banking Co., Ltd.

2,350,000–

2,350,000–

Aozora Bank, Ltd.

900,000––

900,000

The Nishi-Nippon City Bank, Ltd.

400,000––

400,000

Notes

Unsecured
Unguaranteed46

III. Notes to Financial Statements
Classification
Lenders

Long-term loans payable

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodMUFG 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--

Development Bank of Japan Inc.

1,850,000-

Aozora Bank, Ltd.

1,000,000

Aozora Bank, Ltd.

700,000

Interest
Repayment
rate
Use
date
(*1)
0.82%
(*2)

Jul. 29,
2022

(*3)

1,500,000

1.02%
(*2)

Sep. 29,
2023

(*5)

-

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

-

-

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

-

-

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

0.57%
(*2)

Jan. 29,
2021

(*5)

0.63%
(*2)

Jun. 30,
2021

(*5)

0.89%
(*2)

Jan. 31,
2023

(*5)

Resona Bank, Limited

500,000--

500,000

The Bank of Fukuoka, Ltd.

500,000--

500,000

MUFG Bank, Ltd.

600,000--

600,000

Resona Bank, Limited

500,000--

500,000

The Bank of Fukuoka, Ltd.

500,000--

500,000

Notes

MUFG 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--

1,200,000

1.05%
(*2)

Mar. 19,
2025

(*3)

500,000--

500,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Nippon Life Insurance Company

1,000,000--

1,000,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Mizuho Trust & Banking Co., Ltd.

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

Unsecured(*3) Unguaranteed

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.
Kiraboshi Bank, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

700,000--

700,000

The 77 Bank, Ltd.

500,000--

500,000

The Norinchukin Bank

1,000,000--

1,000,000

0.50%
(*2)

Apr. 14,
2021

(*3)

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

1,000,000--

1,000,000

The Nishi-Nippon City Bank, Ltd.

800,000--

800,000

0.73%
(*2)

Aug. 31,
2023

(*5)

MUFG Bank, Ltd.

400,000--

400,000

0.92%

Aug. 29,
2025

(*3)

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

1,000,000––

1,000,000

The Bank of Fukuoka, Ltd.

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)

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

47

Balance at the
beginning of
period990,000––

990,000

1,080,000––

1,080,000

Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodMUFG 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)

Mizuho Bank, Ltd.

900,000––

900,000

Mizuho Trust & Banking Co., Ltd.

750,000––

750,000

0.63%

Jan. 31,
2027

(*3)

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)

The Yamaguchi Bank, Ltd.

500,000––

500,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.26%

Jul. 29,
2025

(*5)

The Iyo Bank, Ltd.

300,000––

300,000

0.20%

Jul. 29,
2024

(*5)

The Chugoku Bank, Ltd.

500,000––

500,000

0.20%

Jul. 29,
2024

(*5)

Bank of Kyoto, Ltd.

500,000––

500,000

0.20%

Jul. 29,
2024

(*5)

The Norinchukin Bank

1,500,000––

1,500,000

0.45%

Nov. 28,
2025

(*5)

The Norinchukin Bank

1,000,000––

1,000,000

0.38%

Nov. 29,
2024

(*5)

Taiyo Life Insurance Company

1,500,000––

1,500,000

0.24%

Nov. 29,
2024

(*5)

Mitsui Sumitomo Insurance Co., Ltd.

1,000,000––

1,000,000

0.32%

Nov. 30,
2023

(*5)

MUFG Bank, Ltd.

1,250,000––

1,250,000

0.41%

Jan. 29,
2027

(*5)

MUFG Bank, Ltd.

1,000,000––

1,000,000

0.58%

Jan. 29,
2027

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000––

1,000,000

0.63%

Jan. 29,
2027

(*5)

0.61%

Jan. 29,
2027

(*5)

Lenders

Long-term loans payable

MUFG Bank, Ltd.

Interest
Repayment
rate
Use
date
(*1)

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%

Jan. 30,
2026

(*5)

MUFG Bank, Ltd.

1,200,000––

1,200,000

0.43%

Feb. 25,
2026

(*6)

Sumitomo Mitsui Trust Bank Limited

1,000,000––

1,000,000

0.67%

Apr. 25,
2028

(*6)

Development Bank of Japan Inc.

1,400,000––

1,400,000

0.56%

Apr. 23,
2027

(*6)

MUFG Bank, Ltd.

2,500,000––

2,500,000

0.52%

Feb. 26,
2027

(*5)

MUFG Bank, Ltd.

1,000,000––

1,000,000

0.47%

Aug. 31,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

2,000,000––

2,000,000

MUFG Bank, Ltd.

2,000,000––

2,000,000

0.60%

Apr. 30,
2027

(*5)

MUFG Bank, Ltd.

1,700,000––

1,700,000

0.54%

Oct. 30,
2026

(*5)

Notes

Unsecured
Unguaranteed48

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDevelopment Bank of Japan Inc.

1,000,000––

1,000,000

0.57%

May 31,
2027(*7)

Sumitomo Mitsui Banking Corporation

2,700,000––

2,700,000

0.25%

Dec. 25,
2020

(*5)

Sumitomo Mitsui Banking Corporation

2,800,000––

2,800,000

0.25%

Feb. 26,
2021

(*5)

500,000––

500,000
0.55%

Aug. 31,
2027

(*6)

0.42%

Feb. 27,
2026

(*6)

0.51%

Aug. 31,
2027

(*6)

0.55%

Aug. 31,
2027

(*6)

Lenders

The Nishi-Nippon City Bank, Ltd.
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

Long-term loans payable

Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

Japan Post Insurance Co., Ltd.

1,000,000––

1,000,000

Taiyo Life Insurance Company

1,500,000––

1,500,000

0.42%

Sep. 30,
2025

(*5)

MUFG Bank, Ltd.

2,850,000––

2,850,000

0.54%

Sep. 30,
2027

(*5)

The Bank of Fukuoka, Ltd.

500,000––

500,000

0.38%

Feb. 28,
2025

(*5)

The Bank of Fukuoka, Ltd.

500,000––

500,000

0.63%

Feb. 29,
2028

(*5)

MUFG Bank, Ltd.

500,000––

500,000

0.56%

Mar. 17,
2028

(*3)

0.61%

Mar. 17,
2028

(*3)

Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

1,000,000––

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%

Apr. 13,
2028

(*5)

MUFG Bank, Ltd.

1,500,000––

1,500,000

0.50%

Mar. 31,
2028

(*5)

Sumitomo Mitsui Trust Bank Limited

2,100,000––

2,100,000

0.38%

Apr. 30,
2025

(*5)

Sumitomo Mitsui Banking Corporation

800,000––

800,000

0.27%

Apr. 30,
2021

(*5)

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000––

1,000,000

0.20%

Nov. 30,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited

890,000––

890,000

0.70%

Jun. 29,
2029

(*5)

MUFG Bank, Ltd.

1,000,000––

1,000,000

0.49%

Mar. 31,
2028

(*5)

0.66%

Jul. 31,
2028

(*5)

Mizuho Bank, Ltd.

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%

Jul. 31,
2026

(*5)

Shinsei Bank, Limited

1,000,000––

1,000,000

0.47%
(*2)

Jul. 31,
2026

(*5)

650,000––

650,000

0.37%

Jan. 31,
2025

(*5)

1,000,000––

1,000,000

0.36%
(*2)

Jan. 31,
2025

(*5)

Sumitomo Mitsui Banking Corporation
Shinsei Bank, Limited

49

Interest
Repayment
rate
Use
date
(*1)

Notes

Unsecured
UnguaranteedClassification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
period500,000––

500,000

0.21%

Jan. 31,
2022

(*5)

Nippon Life Insurance Company

1,000,000––

1,000,000

0.67%

Sep. 11,
2028

(*6)

The Nishi-Nippon City Bank, Ltd.

500,000––

500,000

0.70%

Sep. 29,
2028

(*5)

The 77 Bank, Ltd.

500,000––

500,000

0.70%

Sep. 29,
2028

(*5)

Sumitomo Mitsui Trust Bank Limited

2,200,000––

2,200,000

0.64%

Nov. 30,
2028

(*5)

MUFG Bank, Ltd.

1,300,000––

1,300,000

0.60%

Nov. 30,
2028

(*5)

Mizuho Bank, Ltd.

1,000,000––

1,000,000

Mizuho Trust & Banking Co., Ltd.

1,000,000––

1,000,000

0.62%

Nov. 30,
2028

(*5)

Sumitomo Mitsui Banking Corporation

700,000––

700,000

0.30%

May 31,2024(*5)

Sumitomo Mitsui Banking Corporation

1,560,000––

1,560,000

0.25%

May 31,
2022(*5)

MUFG Bank, Ltd.

–1,300,000–

1,300,000

0.36%

Jun. 29,
2029

(*5)

Sumitomo Mitsui Trust Bank Limited–

800,000–

800,000

0.39%

Jun. 29,
2029

(*5)

178,218,000

2,100,000

14,870,000

165,448,000

Lenders

Long-term loans payable

Shinsei Bank, Limited

Total

Interest
Repayment
rate
Use
date
(*1)

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
payableDue in one year or
less

Due after one year
through two years

20,870,000

25,218,000

Due after two years Due after three years Due after four years
through three years through four years through five years
26,020,000

15,310,000

13,300,00050