20th
Fiscal Period ReportFebruary 1, 2020 - July 31, 2020

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

16th FP

17th FP

18th FP

19th FP

20th FP

Fiscal Period

units

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

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

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

From: Aug. 1, 2019
To: Jan. 31, 2020

From: Feb. 1, 2020
To: Jul. 31, 2020

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

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

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

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

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 16th FP, 184 days for the 17th FP, 181 days for the 18th FP, 184 days for the 19th FP, and 182 days for the 20thFP.
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 20th Fiscal Period (FP).
1. Internal Growth
There has been a fall in the number of leasing applications due to the COVID-19 curfew restricting people’s movements.
In order to maintain occupancy rates in this environment, ADR eased leasing terms to boost up contract closing rates.
Nevertheless, ADR was able to achieve a record-high rate of rent level increase despite having eased leasing terms during
the FP.
2. External Growth
During the FP, ADR concluded the acquisitions of the remaining four properties among the nine that had been resolved tobe acquired during the previous FP. Furthermore, ADR conducted a property replacement with a third party, in addition todisposing of RESIDIA Kameyama, which had posed longstanding concerns with little prospect for eliminating unrealized
losses, and RESIDIA Ryokuchikoen, which had been a lower-yielding property. (In total, five properties acquired at a totalacquisition price of 7.5 billion yen, and three properties sold at a total acquisition price of 3.8 billion yen during the FP.)
3. FinanceBy taking advantage of the low interest rate environment, ADR was able to simultaneously maintain the average remaining
duration of interest-bearing liabilities while reducing its average interest rate.
By executing these initiatives, we were able to attain the following FP results.

Item

Previous FP
Results

Initial Forecast Note 1

20th FP Results(July 2020)(million yen)

Difference from the Previous FP Difference from the Initial Forecast

Operating revenues

17,175

16,85017,357+181+507

Operating income

8,964

8,261

8,294

–670

+33

Ordinary income

7,945

7,271

7,321

–624

+49

Net income

7,945

7,271

7,320

–624

+49

Earnings Per Unit

5,736 yen

5,250 yen

5,285 yen–451 yen Note 2+35 yen Note 2

Dividend Per Unit

5,620 yen

5,600 yen

5,635 yen

+15 yen+35 yenNotes 1. The initial forecast refers to the earnings forecasts for the 20th FP disclosed in the “Brief Summary of Kessan Tanshin” for the 19th Fiscal Period, dated March 11, 2020. The same
applies hereafter.
2. Decimals are omitted from the EPU figures.

Earnings per unit (EPU) amounted to 5,285 yen, which was 451 yen lower than in the previous FP. This was mostly a result of
ADR having incurred loss on sales and having recorded a lower gain on sales than in the previous FP. Compared with the initial
forecast, revenues, income and distributions were higher across the board. This was largely due to a gain in sales, a decreasein consumption tax loss from having sold properties and a decrease in interest expense and other funding costs.
With the drawdown in reserve for temporary difference adjustment (RTA) of 242 yen per unit and distribution from retained
earnings of 106 yen per unit, dividend per unit (DPU) amounted to 5,635 yen, which was 15 yen higher than in the previous
FP and 35 yen higher than the initial forecast. As such, for the second consecutive FP, DPU achieved a new record-high for an
ordinary six-month FP (the 1st FP was an 11-month period).
1. Internal Growth– Despite a Lower Number of New Applications Due to the COVID-19 Pandemic, Occupancy Rate Was Maintained by Partial
Easing of Leasing Terms –The COVID-19 pandemic had a minimal effect during the height of the peak leasing period from February to March in thefirst half of the FP. Even so, the subsequent declaration of a state of emergency, which restrained people’s movement,
led to a lower number of new lease applications, thereby making it impossible to make up for an increase in move-outs
in March. As a result, the average fiscal period occupancy rate was 96.7%, which was 0.1% lower than in the previous FP,
despite the FP being the peak leasing period(Note 3).

2

I. Fiscal Period Report
Although the number of move-outs remained largely unchanged YoY, with the exception of March, the number of new
applications sharply dropped, with a 41.9% YoY decrease in April and 31.1% in May. Subsequent to the government’s liftingof the state of emergency, the number of new applications showed signs of recovery. And with the easing of leasing
terms in order to increase the conversion rate, ADR was able to beat the forecast occupancy rate by +0.1%.
The rate of rent increase upon both tenant replacement and contract renewal reached all-time highs during the FP of+5.5% and +1.2%, respectively. This was made possible because we were able to aggressively raise rent at the height ofthe peak leasing period during which the effects of the COVID-19 pandemic were minimal. Meanwhile, for the whole
portfolio we achieved steady internal growth where the rent level(Note 4) increased for the 12th consecutive FP, having
gained by 0.64% over rent levels at the end of the previous FP.
Although there are some residential tenants making requests for rent reductions on the grounds of the COVID-19
pandemic, ADR denied all requests and have left rents unchanged. On the other hand, we have granted requests for
temporary rent reductions made by four tenants operating restaurants and other such establishments that have been
particularly hard hit by the COVID-19 pandemic largely due to requests from authorities for them to suspend business
operations. We have also granted requests for rent payment grace periods made by three tenants operating fitness
centers. However, the rent reductions will have a minimal effect on ADR’s financial results. This is because the reduction
only amounts to roughly 0.02% of the total portfolio rent income for the 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 to freshen
up their appearance. In addition, for individual units in properties that have recently had large-scale repairs, ADR carriesout value enhancement work to maintain and enhance competitiveness in the leasing market. These entail equipment
upgrades and floor plan changes and are implemented at the time when tenants are being replaced.
During the FP, we executed large-scale repairs on 9 properties and value enhancement works on 17 residential units.
We were only able to perform half the number of value enhancement works compared with the previous FP, and thedecrease was mainly attributable to delays in purchases of housing equipment and fixtures manufactured in China amid
the COVID-19 pandemic. Since we have been able to resume construction after May with the subsiding of the pandemicin China, we expect to perform value enhancement works according to plan next FP. Of the residential units that
underwent the value enhancement works, new rental contracts had been signed for 11 units as of July 31, 2020. Those
units saw increases in rent of approximately 18% on average in comparison with rents under previous contracts. Goingforward, ADR will endeavor to further enhance the competitive advantages of its properties through such measures.
Note 3. In Japan, the months of February to April constitute the busy season for leasing, during which time a relatively high number of lease contracts are normally concluded. We callthe FPs that include the busy season the peak leasing periods and the other FPs off -season periods. Therefore, at ADR the FPs ending January 31 are off -season periods and FPs
ending July 31 are peak leasing periods.
Note 4. 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– Sale of a Property with Longstanding Concern over Unrealized Loss –Even with the COVID-19 pandemic, there was no softening in the property market and acquiring properties remained
challenging during the FP. Therefore, ADR continued to avoid excessive competition and adhered to its policy of taking
a disciplined approach to acquiring quality properties that promise stable revenues.
Under such an environment, ADR concluded the acquisitions of four properties pending acquisition (total acquisition
price of 6.0 billion yen) from among the nine properties it had resolved to acquire in the previous FP (total acquisition
price of 15.4 billion yen). As for new acquisitions, ADR acquired year-old property RESIDIA Otemachi-Kita through aproperty replacement with a third party. Revenues are likely to increase and building age is significantly lowered giventhat the property it replaces, RESIDIA Kyobashi, is over 15 years old.
Moreover, ADR managed to sell RESIDIA Kameyama, which had posed longstanding concerns given a lack of prospectsof eliminating the large unrealized loss, and RESIDIA Ryokuchi-koen, which is a lower-yielding property (total acquisition
price of 2.5 billion yen). By mostly offsetting the loss on sales from the disposal of RESIDIA Kameyama with the gain on
sales of RESIDIA Kyobashi and RESIDIA Ryokuchi-koen, the net loss on sales was reduced to 5 million yen for the FP.

33. Finance– Lowering the Average Interest Rate and Extending Initial Duration –ADR’s principal finance policy is to lower the interest rates of interest-bearing liabilities, to extend remaining durations,
to fix interest rates and to diversify maturities of interest-bearing liabilities. Given that the COVID-19 pandemic had noeffect on the lending attitude of financial institutions to ADR during the FP, ADR accordingly managed to execute debt
financing amounting to 15.0 billion yen in total (average interest rate of 0.38%(Note 5) and average initial duration of 9.0
years). As a result, ADR lowered the average interest rate to 0.70% as of the end of the FP, from 0.73% in the previous FP,
and extended the remaining duration to 4.75 years from 4.64 years previously, thereby enabling it to further strengthen
its financial foundation.
ADR’s credit ratings as of the end of the fiscal period (July 31, 2020) are as follows.

Credit rating agency

Coverage

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating

AA(Outlook: Stable)

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

Issuer rating

AA(Outlook: Stable)

Note 5.

RatingThe “average interest rate” is the weighted-average interest rate on loans and bonds as of their respective borrowing or issuance date, as of the end of the FP (July 31, 2020). If
the interest rates on the debts have been converted to fixed interest rates using swap agreements in order to hedge the risk of interest rate volatility, the fixed rates are used in
calculating the average.

4. Sustainability– Sustainability Measures –ADR works together with the asset management company to realize a sustainable society and to increase its unit-holder
value. To that end, we engage in the following ESG (environmental, social and governance) initiatives.
• The environmental initiatives which ADR has carried out are installing LED lighting (89 properties constituting 32.8%
of ADR’s portfolio), placing green lease clauses in contracts (concluded for 54.8% of residential units out of the total
number of rental units), and acquiring DBJ Green Building Certification with respect to 17 properties (constituting
26.7% of ADR’s portfolio on the basis of total floor area), as of July 31, 2020.
• The social initiatives which ADR has carried out have involved addressing the COVID-19 pandemic by placing
disinfectant in common areas of its properties and posting information to raise awareness in regard to preventing
transmission of COVID-19. Moreover, ADR has addressed requests for rent reductions and payment grace periods
made by commercial and office tenants to support their operations, while also giving consideration to effects on
distributions brought about by the potential rent reductions and move-outs.
In order to raise disaster-prevention awareness, ADR has been posting maps of evacuation sites should an earthquake
strike. As we are more frequently experiencing disasters due to flooding caused by heavy rains in recent years, wehave also started posting emergency maps additionally indicating evacuation sites in the event of flooding.
This FP, ADR conducted a satisfaction survey with tenants of its properties. This survey is conducted roughly once
every three years. Going forward, we will devise measures that contribute to further improve tenant satisfaction
based on the findings of the survey.
Measures taken toward ensuring the health and safety of the asset management company’s employees amid the
COVID-19 pandemic included enabling employees to work from home and installing staggered work hours for thosecoming into the office.
• Initiatives related to better governance included instituting changes to the asset management fee structure as
approved at the General Unitholders’ Meeting held in October 2019. The changes to the asset management fees paid
by ADR to the asset management company eliminate fees linked to the amount of assets under management and give
greater weight to fees that are more directly linked to ADR’s performance and unitholder interests.

4

I. Fiscal Period Report
3 Management Policies and Challenges Going Forward
By diligently implementing the strategies outlined below, ADR aims to achieve solid EPU growth.
1. Internal Growth
In the rental housing market, we will strive to increase rents both upon tenant replacement and contract renewal, giventhat the market remains tight in general. Nevertheless, if the effects of the COVID-19 pandemic become worse, we willprioritize maintaining the occupancy in our rental management by quickly addressing the changing market needs.
Amid a resurgence of COVID-19 infections, we have curved the increase in asking rents upon tenant replacement tomaintain occupancy since June. We therefore expect the rent rises to be lower going forward. Moreover, we refrained
from negotiating rent increase upon contract renewal after the government declared the state of emergency. Therefore,
there will be no rent increases upon contract renewals for the periods between August to November 2020. As such, we
expect the rent rise upon contract renewal for the FP to be lower than the previous FP.
And for value-enhancement works, we strive to maintain and improve the competitive strengths of our properties byidentifying changing needs through tenant satisfaction surveys and other such means, and reflecting those results insuch work.
We have also been engaging in efforts that help safeguard lives of tenants by preparing for the risk of flooding giventhat natural disasters have become more frequent in recent years due to global warming. Based on the “Guidelines for
Measures against Flood Disasters at Electricity Facilities in Buildings” released in June 2020, we will work in conjunction
with experts in considering options for adopting countermeasures tailored to each property.
2. External Growth
Since the market conditions for acquiring properties will continue to remain difficult, ADR will continue to acquire
properties that will contribute to improving the quality and profitability of ADR’s portfolio, through minimizing
competition by acquiring sponsor properties or through utilizing market information supplied to ADR and executing
negotiated deals with third parties.
Should the property market enter into an adjustment phase going forward, ADR will acquire properties that contributeto improving quality and profitability of its portfolio by leveraging its acquisition capacity, which has been increased byexecuting a follow-on offering in the previous FP.
Since we are seeing many redevelopments actively taking place in central Tokyo, ADR is likely to receive proposals fromdevelopers for property replacements involving ADR’s properties located in proximity of those redevelopment site.
Amid the booming property market, we will positively consider selling such properties if the terms are favorable.
3. Finance Policy
ADR will procure funds mainly through long-term and fixed-rate debts while keeping a close eye on interest rate trends
and striving for lower funding costs and diversified maturities. In so doing, we will endeavor to establish financial
foundations that can weather future market volatility.
4. Dividend Payout Policy
During the previous FP, a portion of the gain of sales was retained rather than being distributed as dividends. The
retained amount of 348 million yen is scheduled to be partially drawn down to stabilize dividends for the fiscal period
ending January 31, 2021 (21st FP) and the fiscal period ending July 31, 2021 (22nd FP).
ADR will continue to draw down the reserves for temporary difference adjustments (RTA), in accordance withpartial 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 6), within 50
years, starting from the FP ended January 2017.
Moreover, in principle, ADR is to maintain a DPU of at least 5,000 yen by additionally drawing down the reserve if thetotal amount of DPU and the fixed drawdown amount of the RTA for the given FP do not reach 5,000 yen(Note 7).
Notes 6. 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.
		
7. This does not constitute a guarantee of actual amount of dividend payment. The actual amount of dividend payment will need to be decided ultimately by ADR’s Board of
Directors.

5

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

Paid-in Capital (million yen)

Date

Remarks

September 23, 2016

Follow-on offering

47,5001,347,500

12,115127,052

1

October 19, 2016

Third-party allotment

2,500

1,350,000

637

127,6902September 26, 2019

Follow-on offering

33,0001,383,000

10,696

138,3863

October 21, 2019

Third-party allotment

2,000

1,385,000

648

139,034

4

Increase

Balance

Increase

Balance

Notes

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

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

16th FP

17th FP

18th FP

19th FP

20th FP

Period-end

July 2018

January 2019

July 2019

January 2020

July 2020

High

291,500 yen

327,500 yen

349,500 yen

367,000 yen

350,500 yen

Low

264,700 yen

281,100 yen

304,000 yen

331,000 yen

209,000 yen

6I. Fiscal Period Report
Overview of the Investment Corporation
1 Major Unit-holders
The following are the major unit-holders as of July 31, 2020.
Name

Address

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

Custody Bank of Japan, Ltd. (Trust Account)

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

340,893

24.61

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

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

229,238

16.55

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

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

67,563

4.87

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

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

46,834

3.38

ITOCHU Corporation

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

34,8002.51

Mizuho Securities Co., Ltd.

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

21,429

1.54

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

19,7701.42

STATE STREET BANK WEST CLIENT-TREATY

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

17,116

1.23

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

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

14,1391.02

JAPAN SECURITIES FINANCE CO., LTD

1-2-10 Nihonbashi-Kayabacho, Chuo-ku,
Tokyo13,0390.94

804,821

58.10

Total

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

2 Directors and Independent Auditor
1. The executive director, supervisory directors, and independent auditor as of July 31, 2020, are as follows.
Title

Name

Primary concurrent positions

Total amount of compensation
during the FP (thousand yen)

Executive
Director

Wataru Higuchi

Senior partner, Ootemon Law and Accounting

2,700Supervisory
Director

Yoshitsugu Oba

–

1,800

Supervisory
Director

Satoru Kobayashi

Independent
Auditor

Deloitte Touche Tohmatsu LLC

President, Esperanza Law Office

1,800
16,5002. Policy for dismissal or refusal of reappointment of independent auditor
The board of directors of ADR shall consider the dismissal of independent auditors pursuant to the provisions of the Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951; as amended), and consider refusal of reappointment
by comprehensively taking into account the quality of the audit, audit compensation, and other factors.

7

3 Asset Management Company, Asset Custodian, and Administrative AgentsThe following is the list of the asset management company, asset custodian, and administrative agents as of July 31, 2020.
Delegation

Name

Asset management company

AD Investment Management Co., Ltd.

Asset custodian

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

Mizuho Trust & Banking Co., Ltd.

Management of special accounts

Mizuho Trust & Banking Co., Ltd.

Accounting, taxation

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

Administrative agent

Institutional operations

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

Administration of investment corporation
bonds

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

8

I. Fiscal Period Report
Real Estate Portfolio
The following lists real estates held by ADR as of July 31, 2020.

Propertyno.

Name of real estate

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,420

3,770

1

94.1 89,784

0.5

193.9 91,778

0.5

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,399

2,380

1

100.0 47,2560.3

1100.0 47,256

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,145

1,340

1

100.0 37,267

0.2

195.7 37,446

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,125

1,530

1

93.5 37,215

0.2

190.7 37,333

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,040

2,780

1

100.0 74,4180.5

1100.0 76,582

0.5

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,044

1,350

1

93.7 32,601

0.2

195.4 32,443

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,036

1,400

1

100.0 33,9770.2

1100.0 34,336

0.2

P-14 RESIDIA Kita-Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

2,463

3,090

1

100.0 76,079

0.5

1100.0 76,077

0.5

P-15

Shibuya-ku, Tokyo

Beneficiary interests
in trust

694

781

1

100.0 19,874

0.1

1

97.1 20,538

0.1

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

702

1,020

1

92.5 25,772

0.2

187.5 25,498

0.2

P-19 Leopalace Udagawacho Mansion Shibuya-ku, Tokyo

Beneficiary interests
in trust

554

781

1

100.0 17,944

0.1

1100.0 17,944

0.1

P-21

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,369

1,980

1

96.4 47,663

0.3

195.2 48,693

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

916

1,320

1

90.9 31,833

0.2

190.2 32,683

0.2

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,361

2,250

1

96.8 59,829

0.4

199.0 60,553

0.4Minato-ku, Tokyo

Beneficiary interests
in trust

882

1,170

1

89.2 28,987

0.2

1

92.1 29,034

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

558

779

1

88.6 19,967

0.1

189.7 21,305

0.1

P-26 RESIDIA Meguro

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

725

781

1

100.0 21,003

0.1

196.6 20,684

0.1

P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,480

2,300

1

91.8 55,559

0.3

196.5 56,687

0.3

Minato-ku, Tokyo

Beneficiary interests
in trust

1,752

2,430

1

97.3 65,112

0.4

193.3 62,866

0.4

Setagaya-ku, Tokyo

Beneficiary interests
in trust

321

414

1

93.6 11,372

0.1

195.1 11,211

0.1

Shibuya-ku, Tokyo

Beneficiary interests
in trust

304

410

1

100.0 10,244

0.1

1100.0 11,076

0.1

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

338

455

1

100.0 12,1690.1

1100.0 12,605

0.1P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

Beneficiary interests
in trust

263

354

1

91.6

9,767

0.1

1

93.8

9,427

0.1

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

846

1,220

1

98.0 34,1070.2

185.7 33,249

0.2

P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,197

3,040

1

97.7 73,687

0.5

192.8 71,033

0.4

P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,068

1,590

1

97.5 43,669

0.3

192.7 43,284

0.3

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,875

2,560

1

98.4 69,212

0.4

197.6 69,615

0.4

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,128

1,470

1

87.0 36,703

0.2

195.6 39,218

0.2

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,216

1,850

1

96.9 44,4980.3

1100.0 44,727

0.3

P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,078

1,700

1

100.0 41,944

0.3

198.5 41,916

0.2

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

847

1,190

1

100.0 31,816

0.2

196.3 31,931

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

971

1,400

1

100.0 36,545

0.2

189.8 36,020

0.2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,008

1,390

1

100.0 36,8770.2

1100.0 36,052

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,109

2,980

1

98.6 79,043

0.5

191.7 77,273

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

RESIDIA Sakurajosui

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

9

Location

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Propertyno.

Name of real estate

Location

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
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

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,499

4,690

1

90.7 106,070

0.6

190.4 106,951

0.6

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,123

1,610

1

95.2 41,439

0.3

193.8 42,448

0.3

Minato-ku, Tokyo

Beneficiary interests
in trust

6,448

9,190

1

98.6 225,049

1.4

194.4 217,809

1.3

Shibuya-ku, Tokyo

Beneficiary interests
in trust

2,010

2,390

1

97.1 57,967

0.4

188.6 59,479

0.4

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,376

3,460

1

98.1 82,506

0.5

199.3 80,643

0.5Minato-ku, Tokyo

Beneficiary interests
in trust

3,552

5,340

1

92.6 131,2040.8

191.7 135,059

0.8

Shinagawa-ku, Tokyo

Real estate

14,548 20,500

196.5 506,880

3.1

1

98.5 529,861

3.2

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,464

3,670

1

99.1 91,016

0.6

194.5 91,015

0.5P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,516

2,380

1

100.0 60,885

0.4

1

93.1 60,092

0.4

P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,337

1,680

1

100.0 42,718

0.3

197.1 43,217

0.3

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,912

2,430

1

94.2 59,783

0.4

192.3 61,064

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

6,087

8,560

1

92.2 206,734

1.3

192.2 204,464

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,196

1,760

1

100.0 43,556

0.3

193.5 43,172

0.3

P-64 RESIDIA Nakanobu

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,725

2,590

1

98.4 63,897

0.4

193.7 64,562

0.4P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,527

2,050

1

98.4 51,4740.3

195.0 51,690

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,654

2,150

1

97.9 51,2660.3

198.0 53,075

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,072

1,630

1

95.2 40,036

0.2

1

94.1 42,297

0.3

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,199

1,630

1

100.0 43,033

0.3

1

97.1 41,012

0.2

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,677

2,350

1

94.1 59,048

0.4

197.0 58,746

0.3P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

857

1,210

1

92.5 29,670

0.2

192.5 28,172

0.2

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

959

1,250

1

100.0 33,4680.2

195.0 32,696

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,314

6,660

1

94.7 175,561

1.1

196.9 180,605

1.1P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

870

1,090

1

100.0 31,3520.2

1100.0 30,479

0.2

Meguro-ku, Tokyo

Beneficiary interests
in trust

4,983

6,620

1

96.0 158,405

1.0

197.5 158,080

0.9Minato-ku, Tokyo

Beneficiary interests
in trust

9,072 13,300

1

96.1 322,674

2.0

197.3 325,726

1.9

P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

832

1,210

1

100.0 31,651

0.2

194.6 32,852

0.2

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,343

1,790

1

96.2 48,680

0.3

192.3 46,139

0.3

P-85 RESIDIA Komazawa

Setagaya-ku, Tokyo

Beneficiary interests
in trust

804

1,290

1

100.0 28,095

0.2

1100.0 28,095

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

2,269

3,270

1

98.9 84,303

0.5

197.4 89,243

0.5

P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,937

2,770

1

99.1 65,947

0.4

197.4 68,155

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,513

1,970

1

98.6 51,244

0.3

196.1 51,185

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,266

5,000

1

96.1 122,0560.7

193.0 126,726

0.8

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,621

4,980

1

98.1 123,010

0.8

198.6 123,574

0.7

Meguro-ku, Tokyo

Beneficiary interests
in trust

939

1,520

1

97.0 33,860

0.2

1100.0 35,453

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

770

1,060

1

100.0 26,805

0.2

197.9 26,445

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,205

1,960

1

97.5 45,175

0.3

191.9 45,685

0.3

P-94 RESIDIA Omori II

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,567

2,420

1

99.0 57,800

0.4

195.9 58,540

0.3

P-50 RESIDIA Nishi-Azabu
P-51

RESIDIA Daikanyama

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

P-72 RESIDIA Mejiro-Otomeyama

P-75 RESIDIA Yutenji
P-76

Park Tower Shibaura Bayward
Urban Wing

P-86 RESIDIA Shibaura KAIGAN

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

10

I. Fiscal Period Report

Propertyno.

Name of real estate

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

Minato-ku, Tokyo

Beneficiary interests
in trust

1,442

2,220

1

96.2 51,7720.3

1100.0 52,701

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

3,738

4,740

1

97.0 118,796

0.7

195.0 117,878

0.7

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,099

1,620

1

90.1 37,081

0.2

196.0 36,348

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

1,716

2,020

1

97.0 54,643

0.3

1100.0 56,855

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,046

2,970

1

93.6 82,166

0.5

195.4 82,878

0.5

RESIDIA
P-100
Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

934

1,230

1

97.8 29,257

0.2

1100.0 30,307

0.2

P-101 RESIDIA Ebisu III

Shibuya-ku, Tokyo

Real estate

649

833

1

87.7 21,060

0.1

191.9 20,801

0.1

P-102 RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

712

1,030

1

100.0 26,278

0.2

197.5 26,246

0.2

P-103 RESIDIA Minami Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,182

1,610

1

100.0 40,364

0.2

1100.0 39,146

0.2

P-104 Chester Court Ochanomizu

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,154

4,150

1

98.6 108,830

0.7

191.2 106,585

0.6

RESIDIA
Kanda-Iwamotocho II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,286

1,800

1

100.0 44,552

0.3

194.0 43,205

0.3

P-106 RESIDIA Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

985

1,380

1

96.6 33,3220.2

193.0 34,265

0.2

P-107 RESIDIA Yoyogi II

Shibuya-ku, Tokyo

891

1,030

1

100.0 25,975

0.2

1

93.1 25,094

0.1

P-108 RESIDIA Nakanobu II

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

928

1,180

1

100.0 28,2120.2

198.0 29,536

0.2

832

1,080

1

100.0 25,459

0.2

197.3 25,701

0.2

P-99 RESIDIA Yotsuya Sanchome

P-105

Real estate

P-109 RESIDIA Ochanomizu II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

P-110 RESIDIA Mishuku

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,174

1,430

1

97.9 33,381

0.2

191.5 32,699

0.2

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,995

2,220

1

92.6 36,4700.2

187.8 57,076

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

4,254

5,060

1

90.0 88,242

0.5

189.8 137,834

0.8

P-113 RESIDIA Nishi-Koyama

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,730

2,070

1

98.4 24,2250.1

197.0 50,987

0.3

P-114 RESIDIA Minami-Shinagawa II

Shinagawa-ku, Tokyo

Real estate

2,213

2,580

-

-

-

-

1

100.0 33,854

0.2

P-115 RESIDIA Kagurazaka II

Shinjuku-ku, Tokyo

Real estate

1,152

1,410

-

-

-

-

1

100.0 21,261

0.1

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,574

1,900

-

-

-

-

1

93.6 13,936

0.1

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,497

2,880

1

95.9 70,286

0.4

194.4 69,210

0.4

2,021

3,860

1

99.2 100,939

0.6

193.2 102,912

0.6

P-111 RESIDIA Ichigaya II
P-112 RESIDIA Ichigaya-Sadohara

P-116 RESIDIA Otemachi-Kita
C-1

RESIDIA Mitsukoshimae

C-2

RESIDIA Kamata

Ota-ku, Tokyo

Beneficiary interests
in trust

C-3

RESIDIA Ikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,419

1,960

1

97.4 50,237

0.3

194.0 52,165

0.3

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,521

2,440

1

98.6 60,357

0.4

194.0 60,072

0.4

Taito-ku, Tokyo

Beneficiary interests
in trust

905

1,570

1

97.8 42,1390.3

195.3 40,247

0.2

Nerima-ku, Tokyo

Beneficiary interests
in trust

885

1,140

1

95.8 36,877

0.2

194.7 35,274

0.2

Taito-ku, Tokyo

Beneficiary interests
in trust

2,767

4,180

1

96.3 103,881

0.6

195.3 107,350

0.6

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,496

2,190

1

100.0 52,809

0.3

195.6 54,189

0.3

824

1,340

1

100.0 33,4940.2

196.9 33,143

0.2

C-4
C-5
C-6
C-7
C-8

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

C-9

RESIDIA Ryogoku

Sumida-ku, Tokyo

Beneficiary interests
in trust

C-12

RESIDIA
Nihonbashi-Ningyocho II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,882

4,340

1

98.8 102,860

0.6

196.4 103,174

0.6

Ota-ku, Tokyo

Beneficiary interests
in trust

1,777

2,240

1

95.8 58,3600.4

195.8 58,857

0.4

Sumida-ku, Tokyo

Beneficiary interests
in trust

3,919

5,050

1

98.1 123,8810.8

193.0 123,767

0.7

Taito-ku, Tokyo

Beneficiary interests
in trust

786

1,030

1

100.0 28,165

0.2

196.6 29,320

0.2

RESIDIA Shinkawa

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,781

2,720

1

90.7 66,303

0.4

195.4 65,207

0.4

C-18 RESIDIA Kamiikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

523

759

1

95.5 21,971

0.1

190.3 22,355

0.1

C-13
C-15

RESIDIA Omori-Higashi
RESIDIA Kinshicho

C-16 RESIDIA Negishi
C-17

11

Location

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
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-19 RESIDIA Shin-nakano
C-21

RESIDIA Bunkyo-Yushima II

C-22 RESIDIA Tsukiji

Location

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
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

Nakano-ku, Tokyo

Beneficiary interests
in trust

342

561

1

100.0 15,721

0.1

1100.0 16,618

0.1

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

939

1,320

1

94.0 36,183

0.2

198.5 36,205

0.2

Real estate

1,280

2,090

1

100.0 50,783

0.3

1

90.1 51,179

0.3

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,769

2,220

1

95.6 59,687

0.4

197.6 64,676

0.4

Ota-ku, Tokyo

Beneficiary interests
in trust

1,133

1,770

1

96.0 46,895

0.3

198.0 48,457

0.3

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

530

823

1

100.0 22,493

0.1

193.3 21,916

0.1

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,863

2,900

1

89.0 66,361

0.4

192.6 69,109

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

760

1,090

1

100.0 33,7220.2

1100.0 33,706

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

956

1,320

1

98.3 37,205

0.2

194.3 36,975

0.2

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

989

1,410

1

100.0 37,974

0.2

192.6 37,235

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,250

1,840

1

91.3 48,002

0.3

197.7 48,239

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,283

3,220

1

98.7 84,1380.5

196.5 84,637

0.5

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,191

2,890

1

99.3 76,672

0.5

196.2 77,585

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

3,019

4,440

1

95.2 120,807

0.7

194.9 121,712

0.7

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

647

1,000

1

100.0 27,2260.2

1100.0 28,147

0.2

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

979

1,480

1

98.1 39,1320.2

195.0 39,939

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

358

466

1

100.0 12,449

0.1

1100.0 14,416

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

516

900

1

100.0 22,6540.1

181.6 22,298

0.1

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,321

1,900

1

98.0 48,250

0.3

190.0 46,175

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

844

1,260

1

100.0 38,1490.2

1100.0 38,656

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,233

1,750

1

97.9 44,6100.3

188.9 43,529

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,736

2,290

1

96.9 59,695

0.4

198.7 61,270

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,178

1,540

1

96.7 43,622

0.3

196.6 45,275

0.3

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,255

1,840

1

90.7 44,092

0.3

1

97.2 44,396

0.3

Toshima-ku, Tokyo

Beneficiary interests
in trust

5,940

8,520

1

97.0 235,722

1.4

196.2 238,266

1.4

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

635

829

1

93.4 27,067

0.2

1100.0 27,741

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

Real estate

4,972

7,910

1

99.4 203,778

1.2

197.2 202,787

1.2

C-49 RESIDIA Suginami-Honancho

Suginami-ku, Tokyo

Beneficiary interests
in trust

3,495

5,910

1

96.9 152,313

0.9

196.8 151,733

0.9

Itabashi-ku, Tokyo

Beneficiary interests
in trust

825

1,280

1

100.0 29,739

0.2

1100.0 29,739

0.2

Koto-ku, Tokyo

Beneficiary interests
in trust

1,826

3,290

1

99.4 82,3940.5

199.4 85,671

0.5

C-52 RESIDIA Bunkyo-Yushima III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,063

1,710

1

95.4 39,855

0.2

196.9 38,529

0.2

RESIDIA
C-53
Bunkyo- Honkomagome

Bunkyo-ku, Tokyo

Real estate

2,216

3,320

1

99.2 83,174

0.5

198.6 85,928

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,397

4,010

1

94.7 93,015

0.6

193.3 94,636

0.6

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

Beneficiary interests
in trust

2,273

3,930

1

96.7 166,107

1.0

197.0 168,682

1.0

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

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

C-31

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

C-45 RESIDIA Shinkawa II
C-46 RESIDIA Mejiro

C-50 RESIDIA Shin-Itabashi
C-51

RESIDIA Kiba

C-57 RESIDIA Monzennakacho
C-58 RESIDIA Ochanomizu

Chuo-ku, Tokyo

Real estate

1,766

2,530

1

96.8 63,4400.4

199.0 64,141

0.4

Koto-ku, Tokyo

Beneficiary interests
in trust

954

1,470

1

100.0 37,8760.2

189.7 36,779

0.2

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,978

3,210

1

91.4 78,205

0.5

196.7 78,733

0.5

12

I. Fiscal Period Report

Propertyno.

Name of real estate

C-59 RESIDIA Omori
C-60 RESIDIA Nakamurabashi
C-61 RESIDIA Kachidoki
C-62 RESIDIA Bunkyo-Otowa II
C-63 RESIDIA Kinshicho III
C-64 RESIDIA Kamata III

Location

Ota-ku, Tokyo

Beneficiary interests
in trust

1,092

1,630

1

94.7 41,651

0.3

197.4 42,888

0.3

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,007

1,500

1

100.0 38,283

0.2

198.7 40,069

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,711

2,750

1

100.0 65,712

0.4

196.7 67,879

0.4

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,237

3,390

1

97.1 83,881

0.5

196.3 85,105

0.5

Koto-ku, Tokyo

Beneficiary interests
in trust

629

915

1

100.0 25,4140.2

1100.0 27,389

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

910

1,370

1

100.0 34,650

0.2

195.7 35,316

0.2

7,804 12,800

198.4 747,711

4.6

1

98.4 751,264

4.5

C-65 RESIDIA TOWER Kamiikebukuro Toshima-ku, Tokyo

Beneficiary interests
in trust

C-66 RESIDIA Takashimadaira

Itabashi-ku, Tokyo

Real estate

512

656

1

100.0 16,193

0.1

1100.0 16,191

0.1

C-67 RESIDIA Shimura-Sakaue

Itabashi-ku, Tokyo

Real estate

598

755

1

100.0 18,084

0.1

1100.0 18,084

0.1

C-68 RESIDIA Shimura-Sakaue II

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,111

1,510

1

100.0 36,1130.2

1100.0 36,296

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

426

535

1

100.0 13,6080.1

1100.0 13,617

0.1

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,085

1,460

1

92.4 42,989

0.3

198.8 45,260

0.3

Koto-ku, Tokyo

Beneficiary interests
in trust

1,244

1,770

1

98.9 44,841

0.3

190.9 44,757

0.3

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,163

1,500

1

100.0 45,303

0.3

194.0 45,460

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

1,808

2,260

1

97.5 55,543

0.3

1100.0 58,803

0.4

Nerima-ku, Tokyo

Beneficiary interests
in trust

503

696

1

100.0 18,060

0.1

1100.0 18,225

0.1

C-75 RESIDIA Higashi-Nihonbashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

391

548

1

92.5 14,4800.1

1100.0 14,926

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

686

893

1

94.8 22,632

0.1

195.3 22,142

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, Tokyo

Real estate

480

591

1

100.0 13,620

0.1

1100.0 13,620

0.1

Ota-ku, Tokyo

Beneficiary interests
in trust

1,336

1,620

1

93.4 43,996

0.3

194.2 42,735

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

977

1,390

1

97.6 36,315

0.2

1100.0 36,676

0.2

Sumida-ku, Tokyo

Beneficiary interests
in trust

873

1,240

1

96.6 33,3620.2

1100.0 33,502

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

1,398

1,870

1

98.6 43,6070.3

191.0 43,402

0.3

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

Beneficiary interests
in trust

1,987

2,660

1

91.5 58,139

0.4

194.6 59,404

0.4

RESIDIA Nihonbashi-Bakurocho
C-83
III

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,836

2,540

1

100.0 63,472

0.4

195.8 64,904

0.4

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,671

2,130

1

98.4 49,413

0.3

189.5 48,737

0.3

Taito-ku, Tokyo

Beneficiary interests
in trust

4,694

6,000

1

96.5 141,519

0.9

197.2 141,730

0.8Koto-ku, Tokyo

Beneficiary interests
in trust

3,037

3,690

1

98.5 85,626

0.5

195.5 88,409

0.5

C-87 RESIDIA Koenji

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,404

1,720

1

100.0 41,444

0.3

197.6 40,648

0.2

C-88 RESIDIA Kamata V

Ota-ku, Tokyo

Real estate

2,350

2,730

1

98.3 66,476

0.4

192.4 66,761

0.4

C-89 RESIDIA Kamata IV

Ota-ku, Tokyo

Real estate

3,365

3,930

1

100.0 92,2020.6

199.4 102,166

0.6

C-90 RESIDIA Ikegami II

Ota-ku, Tokyo

Beneficiary interests
in trust

1,115

1,300

1

97.5 15,681

0.1

1100.0 32,019

0.2

C-91 RESIDIA Sasazuka III

Suginami-ku, Tokyo

-

-

1

91.4 26,911

0.2

C-70 RESIDIA Ikebukuro West
C-71

RESIDIA Ojima

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

C-78 RESIDIA Minamiyukigaya
C-79 RESIDIA Akihabara
C-80 RESIDIA Asakusa-Azumabashi
C-81 RESIDIA Omori III

C-84 RESIDIA Bunkyo-Hongo III
C-85 RESIDIA Shin-Okachimachi II
C-86 RESIDIA Kameido

Real estate

1,421

1,630

-

Beneficiary interests
in trust

-

681

749

1

94.9 28,2760.2

1100.0 28,730

0.2

S-2

Chester House Kawaguchi

Kawaguchi-shi,
Saitama

S-4

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

977

1,290

1

100.0 43,831

0.3

1100.0 43,568

0.3

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,710

2,190

1

98.5 66,422

0.4

199.2 68,660

0.4

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,039

1,280

1

95.2 35,004

0.2

196.6 35,060

0.2

S-5
S-7

13

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Chofu

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Propertyno.

Name of real estate

Location

S-11

Tokyo Student-House WAKO

Wako-shi, Saitama

Beneficiary interests
in trust

641

757

1

100.0 26,182

0.2

1100.0 26,182

0.2

RESIDIA Kokubunji

Beneficiary interests
Kokubunji-shi, Tokyo
in trust

S-12

482

694

1

100.0 19,025

0.1

1100.0 20,468

0.1

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

Beneficiary interests
in trust

1,462

1,920

1

97.5 53,254

0.3

198.2 54,267

0.3

Beneficiary interests
in trust

692

985

1

100.0 26,593

0.2

1100.0 26,593

0.2Real estate

1,455

2,090

1

97.0 58,393

0.4

198.0 59,106

0.4

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,469

3,490

1

99.5 100,982

0.6

1100.0 102,217

0.6

Musashino-shi,Tokyo

Beneficiary interests
in trust

1,415

1,850

1

100.0 51,421

0.3

195.9 51,104

0.3

Pacific Royal Court Minatomirai
Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

10,955 16,400

1100.0 571,516

3.5

1100.0 575,050

3.4

S-22 Life & Senior House Kohoku II

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

Real estate

1,631

2,330

1

100.0 70,767

0.4

1100.0 70,812

0.4

Beneficiary interests
in trust

735

1,180

1

100.0 32,7600.2

1100.0 32,760

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

2,003

3,080

1

88.1 80,488

0.5

1100.0 89,735

0.5

Ichikawa-shi, Chiba

Beneficiary interests
in trust

849

1,160

1

97.6 34,471

0.2

198.8 35,473

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

771

1,130

1

95.9 32,577

0.2

198.6 33,018

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

779

1,100

1

98.7 33,5940.2

1100.0 34,363

0.2

S-28 RESIDIA Kawasaki

Beneficiary interests
in trust

1,564

2,400

1

98.2 62,8740.4

199.0 65,374

0.4

Beneficiary interests
in trust

948

1,170

1

100.0 45,0000.3

1100.0 45,000

0.3

Beneficiary interests
in trust

1,026

1,340

1

100.0 43,1120.3

1100.0 43,112

0.3

Beneficiary interests
in trust

757

1,030

1

100.0 35,4120.2

1100.0 34,750

0.2

S-32 RESIDIA Hon-Atsugi

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

Real estate

622

758

1

94.3 23,844

0.1

198.1 25,395

0.2

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

659

754

1

100.0 20,128

0.1

1100.0 20,127

0.1

Funabashi-shi, Chiba

Beneficiary interests
in trust

603

626

1

100.0 18,256

0.1

197.7 18,455

0.1

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,476

1,730

1

100.0 60,860

0.4

1100.0 60,749

0.4

Nagoya-shi, Aichi

Beneficiary interests
in trust

958

1,450

1

97.0 44,358

0.3

191.5 46,053

0.3

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,289

4,550

1

100.0 125,3250.8

1100.0 125,615

0.7Real estate

1,217

1,580

1

96.9 53,028

0.3

198.8 53,562

0.3

805

1,220

1

93.4 34,478

0.2

197.2 36,387

0.2

S-14
S-15

RESIDIA Yokohama-Kannai
RESIDIA Okurayama

S-16 RESIDIA Musashikosugi
S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

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

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

RESIDIA Yokohama-Bashamichi

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

RESIDIA Imadegawa
RESIDIA Higashizakura
RESIDIA Kobe Port Island

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,966

3,130

1

98.0 87,003

0.5

196.4 88,005

0.5

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

835

1,020

1

94.9 37,084

0.2

195.2 37,478

0.2

R-14 RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

1,005

1,650

1

98.8 48,076

0.3

199.1 48,945

0.3

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,836

2,730

1

96.7 79,735

0.5

197.7 82,150

0.5

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,080

3,410

1

92.7 94,954

0.6

193.3 95,091

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,076

1,530

1

96.1 66,925

0.4

198.4 66,189

0.4

R-19 RESIDIA Tenjin-Minami

Beneficiary interests
in trust

887

1,210

1

96.4 38,300

0.2

187.5 39,018

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

302

432

1

97.4 15,866

0.1

192.3 15,783

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

579

841

1

86.6 23,425

0.1

195.6 26,622

0.2

R-11

14

I. Fiscal Period Report

Propertyno.

Name of real estate

R-26 RESIDIA Kita-Sanjo

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

Nagoya-shi, Aichi

Real estate

726

916

1

94.2 30,839

0.2

194.3 31,613

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

711

808

1

95.9 33,8760.2

195.9 32,975

0.2

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,199

4,520

1

97.4 146,698

0.9

188.4 142,034

0.8

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

919

1,300

1

90.9 43,8010.3

190.4 43,552

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

699

939

1

93.0 29,558

0.2

1100.0 30,019

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,793

2,650

1

94.9 91,112

0.6

189.7 91,100

0.5

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,054

1,670

1

97.2 46,690

0.3

196.0 46,922

0.3

R-36 RESIDIA Hisaya-Oodori

Nagoya-shi, Aichi

Beneficiary interests
in trust

615

989

1

95.5 28,576

0.2

1100.0 28,719

0.2

R-37 RESIDIA Sendai-Miyamachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

486

807

1

100.0 23,998

0.1

1100.0 25,703

0.2

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

454

709

1

100.0 21,8420.1

1100.0 21,909

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,346

1,960

1

95.5 57,871

0.4

196.2 59,426

0.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

968

1,460

1

96.5 42,724

0.3

195.2 42,782

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

987

1,320

1

96.5 37,975

0.2

195.3 38,212

0.2

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,165

3,270

1

97.3 106,695

0.7

194.3 106,344

0.6

R-43 RESIDIA Tsurumai

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,113

1,720

1

95.3 52,088

0.3

198.4 54,089

0.3

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,501

3,800

1

95.1 112,375

0.7

196.9 112,413

0.7

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

843

1,160

1

98.3 40,491

0.2

193.0 41,645

0.2

Osaka-shi, Osaka

Beneficiary interests
in trust

1,832

2,630

1

96.0 73,644

0.5

198.4 73,920

0.4

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

914

1,260

1

95.4 40,174

0.2

1

91.1 39,804

0.2

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,368

2,270

1

97.7 74,672

0.5

196.3 75,765

0.5

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,168

1,700

1

97.2 46,500

0.3

193.5 47,034

0.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

837

1,110

1

97.5 34,8670.2

1100.0 36,194

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,135

5,350

1

98.3 157,766

1.0

196.7 158,158

0.9

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,683

2,080

1

95.5 69,3360.4

185.8 70,212

0.4

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,873

3,730

1

95.8 118,698

0.7

193.2 120,276

0.7

R-54 RESIDIA Tsutsujigaoka

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,691

2,520

1

94.7 83,258

0.5

195.7 83,897

0.5

R-55 RESIDIA Kobe-Motomachi

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,014

1,410

1

90.6 41,920

0.3

196.9 41,898

0.2

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,058

1,680

1

96.6 52,974

0.3

191.2 52,997

0.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

549

890

1

97.2 30,077

0.2

195.2 30,114

0.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,005

1,460

1

96.1 46,804

0.3

198.8 49,084

0.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,696

3,900

1

93.2 104,2430.6

195.5 109,000

0.6

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

806

1,070

1

100.0 35,1180.2

1100.0 35,032

0.2

Kyoto-shi, Kyoto

Beneficiary interests
in trust

229

326

1

100.0

0.1

1

100.0

0.1

R-24 RESIDIA Minami-Ichijo
R-25 RESIDIA Odori-Nishi

R-46 RESIDIA Shinsaibashi West

R-49 RESIDIA Gosho-Higashi

R-52 RESIDIA TOWER Sendai
R-53 RESIDIA Higashizakura II

R-56 RESIDIA Sendai-Honcho

R-61 RESIDIA Kyoto Okazaki

15

Location

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
Appraisal Total number
Total numberBook value
Occupancy
RentalOccupancy
Rentalvalue at end of tenants
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end revenue of total rent at end of rate at end revenue of total rent
periodownershipof
period(thousandofperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2
Real estate

1,406

2,170

1

96.2 74,779

0.5

198.2 77,567

0.5Real estate

1,159

1,520

1

96.0 58,213

0.4

196.0 59,129

0.4Real estate

965

1,480

1

94.4 47,342

0.3

194.6 48,069

0.3

9,637

9,622

Propertyno.

Name of real estate

Location

19th (Aug. 1, 2019 ~ Jan. 31, 2020)
20th (Feb. 1, 2020 ~ Jul. 31, 2020)
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

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,061

1,390

1

100.0 42,0840.3

1100.0 42,738

0.3

R-63 RESIDIA Kita-Nijyo-East II

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

Beneficiary interests
in trust

531

750

1

100.0 26,895

0.2

194.5 26,476

0.2

Beneficiary interests
in trust

486

606

1

100.0 19,988

0.1

1100.0 19,962

0.1

Beneficiary interests
in trust

376

545

1

93.2 20,219

0.1

191.7 20,253

0.1

Beneficiary interests
in trust

1,109

1,360

1

100.0 41,845

0.3

197.7 42,145

0.3

Beneficiary interests
in trust

1,116

1,380

1

97.8 42,1340.3

198.9 42,793

0.3

Beneficiary interests
in trust

1,343

1,690

1

97.7 51,796

0.3

199.1 52,782

0.3

Beneficiary interests
in trust

817

1,210

1

95.7 35,8250.2

1100.0 37,795

0.2

R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

922

1,130

1

94.6 33,597

0.2

191.7 34,180

0.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

917

949

1

92.2 29,548

0.2

189.6 27,942

0.2

Suita-shi, Osaka

Beneficiary interests
in trust

1,519

1,750

1

100.0 45,9480.3

1100.0 45,927

0.3

R-73 RESIDIA Senri-Banpakukoen

Suita-shi, Osaka

Beneficiary interests
in trust

2,207

2,370

1

100.0 64,042

0.4

1100.0 63,803

0.4

R-74 RESIDIA Sapporo-eki North

Sapporo, Hokkaido

Real estate

803

706

1

82.4 22,465

0.1

190.9 22,863

0.1

R-75 RESIDIA Hijiyama-Koen

Hiroshima-shi,
Hiroshima

Beneficiary interests
in trust

685

762

1

90.7 23,761

0.1

198.8 26,754

0.2

R-76 RESIDIA Kita-Nijyo-East III

Sapporo, Hokkaido

Beneficiary interests
in trust

441

442

1

97.5 14,686

0.1

197.5 15,151

0.1

R-77 RESIDIA Shin-Osaka II

Osaka-shi, Osaka

Real estate

696

702

1

91.6 19,973

0.1

1

97.5 21,628

0.1

R-78 RESIDIA Tsutsujigaoka-Koen

Sendai-shi, Miyagi

Beneficiary interests
in trust

781

775

1

94.5

6,127

0.0

1

100.0 26,618

0.2

R-79 RESIDIA Sendai-Kamisugi

Sendai-shi, Miyagi

Real estate

1,506

1,550

-

-

-

-

1

99.0 33,162

0.2

430,190 607,022

266

97.0 16,361,863

100.0

271

96.3 16,797,677

100.0

R-64 RESIDIA Takamiya
R-65 RESIDIA Soen
R-66 RESIDIA Tenjin
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, 2020.
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, 2020are leased under a master lease agreement, the “Total” for the “Total number of tenants” column indicates the total number of master lease agreements, which were concluded
with 10 master lessees.
3. “Occupancy rate” is calculated using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Rental revenue” is the rental revenue of respective real estate for the FP under review.

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

17

Payment for
Cumulative
the current
amount paid
periodPurposeEstimated duration

RESIDIA Suidobashi(Chiyoda-ku, Tokyo)

Major repair work

From: Nov. 2019
To: Jan. 2021

94

2

2

RESIDIA Nakameguro(Meguro-ku, Tokyo)

Major repair work

From: Jan. 2020
To: Jan. 2021

189

5

5

RESIDIA Kamata(Ota-ku, Tokyo)

Major repair work

From: Nov. 2019
To: Jan. 2021

98

29

29

RESIDIA Tsukiji(Chuo-ku, Tokyo)

Major repair work

From: Jan. 2020
To: Dec. 2020

60

1

1

RESIDIA Shimura-Sakaue III(Itabashi-ku, Tokyo)

Major repair work

From: Jan. 2020
To: Dec. 2020

49

1

1

RESIDIA Sagamihara(Sagamihara-shi, Kanagawa)

Major repair work

From: Nov. 2019
To: Jan. 2021

85

2

2

RESIDIA Kita-Sanjo(Sapporo-shi, Hokkaido)

Major repair work

From: Jan. 2020
To: Jan. 2021

112

3

3

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

Major repair work

From: Jan. 2020
To: Jan. 2021

120

3

3

RESIDIA Monzennakacho(Koto-ku, Tokyo)

Major repair work

From: Aug. 2019
To: Jan. 2021

72

18

18

RESIDIA Yokohama-Kannai(Yokohama-shi, Kanagawa)

Major repair work

From: Nov. 2019
To: Jan. 2021

60

1

1

Total
amounts

2 Capital Expenditures for the Current Period
The following table lists the major capital expenditures for renovations ADR conducted in the current period. The total capital
expenditures during this FP were 1,348 million yen for the entire portfolio and, when combined with repairs and maintenancecost of 727 million yen, the cost of construction work totals 2,076 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

Park Tower Shibaura Bayward
Urban Wing
(Minato-ku, Tokyo)

Major repair work

From: Jul. 2019
To: Mar. 2020

297

RESIDIA Shimazuyama(Shinagawa-ku, Tokyo)

Major repair work

From: Sep. 2019
To: Feb. 2020

133

RESIDIA Kyoto-ekimae(Kyoto-shi, Kyoto)

Major repair work

From: Jan. 2020
To: Jun. 2020

119

Other real estate

Major repair work

339

Other real estate

Renovations

458

Total

1,348

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

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

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

16th FP
17th FP
18th FP
19th FP
20th FP
From: Feb. 1, 2018 From: Aug. 1, 2018 From: Feb. 1, 2019 From: Aug. 1, 2019 From: Feb. 1, 2020
To: Jul. 31, 2018
To: Jan. 31, 2019
To: Jul. 31, 2019
To: Jan. 31, 2020
To: Jul. 31, 2020
1,921
1,990
1,705
1,822
1,972
814
906
939
976
1,035
744
1,192
821
826
876
1,990
1,705
1,822
1,972
2,130

18

I. Fiscal Period Report
Acquisitions and Disposals in the 20th FP
1 Acquisitions and Disposals of Real Estate and Asset-Backed Securities
Property
no.
P-114
P-115
P-116
C-91
R-79
C-24
R-5
R-6

Acquisition
Disposition
Acquisition
Disposition
Name of real estate
Acquisition
Disposition
Book value
Price Note
Price
date
date
(million yen)(million yen)(million yen)
RESIDIA Minami-Shinagawa II Apr. 20, 2020
–
2,120
–
–
RESIDIA Kagurazaka II
Mar. 27, 2020
–
1,110
–
–
RESIDIA Otemachi-Kita
Jun. 1, 2020
–
1,520
–
–
RESIDIA Sasazuka III
Mar. 27, 2020
–
1,361
–
–
RESIDIA Sendai-Kamisugi
Mar. 27, 2020
–
1,409
–
–
RESIDIA Kyobashi––
Jun. 1, 2020
1,560
1,127
RESIDIA Kameyama––
Mar. 26, 2020
1,000
1,511
RESIDIA Ryokuchikoen––
Mar. 27, 2020
957
883
Total
–
7,520
3,517
3,522

Gain (Loss)on sales(million yen)
–
–
–
–
–
432
(511)
73
(5)

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

2 Transactions with Interested Parties
1) Transactions
The following table details the status of transactions with interested parties in the 20th FP.
Purchase/Sales amount
Purchase amount
Sales amount(thousand yen)(thousand yen)
7,520,000
3,517,000

Classification
Total amount (20th FP)
Breakdown of transaction withinterested parties
ITOCHU Corporation

6,000,000 (79.8%)– (–%)

2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 20th FP.

Classification
Property management fees
Other rental expenses
Advertising expenses
Other fees

Total amount ofcommission fees (A)(thousand yen)
1,470,710
116,7425,604
183,502

Breakdown of transaction with interested parties
Amount paid (B)Payee(thousand yen)
ITOCHU Urban Community Ltd.
930,997
ITOCHU Urban Community Ltd.
77,157
ITOCHU Urban Community Ltd.
2,829
ITOCHU Urban Community Ltd.
29,622
ITOCHU Human Resources &95
General Affairs Services Inc.

Share
(B)/(A)(%)

63.3
66.1
50.5
16.1
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 Corporation, 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 123of the Enforcement Order thereof, with which ADR engaged in transactions in the 20th FP.

19

20

21

22

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

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

23

As of July 31, 2020

17,327,999
9,967,400
223,992
336,054
7,255(7,042)
27,855,659

14,178,864
9,891,267
223,134
462,7396,764(8,405)24,754,366

76,891,771(15,549,630)
61,342,140
26,304(9,565)
16,738
114,527(32,558)
81,969420,949(203,597)
217,352
74,925,779
12,171
157,267,593(30,371,963)
126,895,629
196,339(116,798)
79,541
224,585(126,826)
97,758985,064(639,685)
345,379
161,245,386
268,130
425,527,978

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

1,871,641
4,944
1,876,586

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

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

As of July 31, 2020

844,428
568,896
1,038,903
1,180
2,453,407
429,857,972

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

5,709
143,861
149,570
457,863,202

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

280,745
1,000,000

325,991
2,000,000

1,500,000

1,500,000

25,070,000

25,218,000

1,445,117
87,568150,773
65,52918,52029,618,253

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

31,500,000
160,348,000
1,280,879
3,394,389
23,019196,546,289
226,164,543

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

139,034,823

139,034,823

53,220,279

53,220,279

31,521,354
31,521,354
7,945,222
92,686,856
231,721,679

31,185,832
31,185,832
7,817,868
92,223,980
231,258,804(23,019)(23,019)
231,698,659
457,863,202(32,855)(32,855)
231,225,948
457,568,755

24

II. Financial Statements
Statements of Income

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

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

For the six months ended
July 31, 2020

16,533,290
642,438
17,175,729

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

6,439,510–
1,246,655
9,825
58,786
5,075
259,384–
191,873
8,211,111
8,964,618

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

6,767
6,171
1,476
318
8,494
306
23,533

7,207
3,506
1,351
–
55
200
12,321

710,029
117,938
1,152

667,993
111,026
1,105

12,864

12,59319,027–

180,132
1,180
1,042,324
7,945,827
7,945,827
605
605
7,945,222–
7,945,222

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

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

(Thousands of yen)
Valuation and translation
adjustments

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

Capitalsurplus

Balance at the
127,690,098 53,220,279 31,857,520 31,857,520
beginning of period

7,094,233 92,172,033 219,862,132

DeferredTotalgain or loss valuation andon hedging translation
instruments adjustments(25,100)

Total net
assets(25,100) 219,837,031

Changes in items
during the period
Issuance of new
investment units

11,344,725

11,344,725

11,344,725––

Dividends fromsurplus(7,430,400) (7,430,400) (7,430,400)(7,430,400)

Net income

7,945,222

7,945,222

Reversal ofreserve fortemporarydifference
adjustments(336,166)(336,166)

336,166–

7,945,222

7,945,222

Net changes in
items other thanunitholders’ equity
in the fiscal year
Total changes in
items during theperiod11,344,725

Balance at the endof period

139,034,823 53,220,279 31,521,354 31,521,354–(336,166)(336,166)

2,080

2,080

514,822 11,859,547

2,080

2,080 11,861,627

7,945,222 92,686,856 231,721,679(23,019)(23,019) 231,698,659

850,988

For the six months ended July 31, 2020

2,080

(Thousands of yen)
Valuation and translation
adjustments

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

Capitalsurplus

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

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

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

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

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

335,521–––

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

Net income

7,320,824

7,320,824

7,320,824

7,320,824

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

139,034,823 53,220,279 31,185,832 31,185,832(9,835)(9,835)(9,835)(462,875)(9,835)(9,835)(472,710)

7,817,868 92,223,980 231,258,804(32,855)(32,855) 231,225,948(127,353)(462,875)26

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

IV. Retained earnings carried forward
Dividend Policy

27

For the six months ended
July 31, 2020

7,945,222,491 yen

7,817,868,851 yen

335,521,628 yen

335,521,628 yen

7,783,700,000 yen(5,620 yen)

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

497,044,119 yen

348,915,479 yen

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserve for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has
decided to distribute dividends of
7,783,700,000. The figure was derived
by retaining 497,044,119 yen from theunappropriated retained earnings of
7,945,222,491 yen for the fiscal period,
plus the drawdown of reserve fortemporary difference adjustments(RTA) of 335,521,628 yen. The
497,044,119 yen which is a portion of
the gain on sales that was generated
during the fiscal period, was retainedin an aim to achieve a more consistentdividend distribution. ADR does not
distribute dividends in excess of the
profits defined in Article 32, Item 2 of
its Articles of Incorporation.

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

Statements of Cash Flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance costs
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 in property, plant and equipment due to sale
Decrease in property, plant and equipment in trust by sales
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expense paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits, net
Proceeds from tenant leasehold and security deposits in trust,net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans
Repayments of long-term loans
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Payments for other offering costs associated with issuance ofinvestment units
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, 2020

For the six months ended
July 31, 2020

7,945,827
2,763,114
1,152
12,86419,027(906)(6,767)710,029
117,938(27,335)
99,555
124,141
24,54053,717
27,717(4,262)–
4,975,184(123,407)
2,628
16,714,757
566(846,353)(560)
15,868,409

7,321,429
2,798,046
1,105
12,593–
1,362(7,207)
667,993
111,026
857(126,685)(89,391)
67,02574,370(28,328)(11,422)
1,117,601
2,334,920(24,404)(546)
14,220,346
816(779,517)(643)
13,441,002(10,000,000)
6,000,000(285,923)(10,905,720)
5,304(6,000,000)
11,000,000(6,561,494)(2,500,805)
29,879100,367(21,925)(15,085,972)(4,054,346)

4,000,000(5,000,000)
5,100,000(6,000,000)(4,000,000)
11,344,725(6,630)1,000,000–
14,040,000(14,870,000)–––(20,589)–(7,429,293)(2,011,787)(1,229,350)
17,524,750
16,295,400(7,781,924)(7,611,924)
1,774,731
16,295,400
18,070,132

28

III. Notes to Financial Statements
Notes to Financial Statements
1 Organization
Advance residence investment corporation (ADR. Securities Code: 3269) is a listed Residential Japan Real Estate Investment
Trust (J-REIT) that mainly invests in residential properties. It was established through a consolidation-type merger between
the former Advance Residence Investment Corporation and Nippon Residential Investment Corporation on March 1, 2010,
and was listed on the Real Estate Investment Trust (REIT) Securities Section of the Tokyo Stock Exchange (TSE) on March 2,
2010.
The merger made ADR the largest residential J-REIT in terms of asset size, enabling it to upgrade its portfolio while ensuring
its financial stability. The merger also resulted in retained earnings of 43.2 billion yen (31.5 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.

29

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

1) Property, plant and equipment (including assets in trust)
Depreciated using the straight-line method.
Useful lives of major categories of property, plant and equipment are as follows:
Buildings: 3 to 46 years
Structures: 6 to 50 years
Machinery and equipment: 10 to 15 years
Tools, furniture and fixtures: 2 to 20 years
2) Intangible assets
Amortized using the straight-line method.
Useful lives of major categories of intangible assets are as follows:
Leasehold rights in trust: 23 to 65 years
3) Long-term prepaid expenses
Amortized using the straight-line method.
1) Investment unit issuance expenses
Amortized using the straight-line method (three years).
2) Investment corporation bond issuance costs
Amortized using the straight-line method over the period up to redemption of the investment
corporation bonds.
Allowance for doubtful accounts
Estimated uncollectible amounts are recorded for possible losses arising from default on receivables
based on the historical performance of general receivables and a case-by-case evaluation of thecollectability of certain receivables, such as receivables with default possibility.
Method of accounting for property taxes
For property taxes, urban planning taxes, and depreciable asset taxes on real estate properties held,
ADR records the amount of taxes imposed corresponding to the current fiscal period as an expense forthe property leasing activities.
Furthermore, for the pro rata portion of property taxes ADR paid to the transferor (seller) uponacquisition of real estate properties, ADR treats the amount as acquisition costs of real estate
properties, instead of recording it as an expense for the property leasing activities. The amount ofproperty taxes treated as acquisition costs of real estate properties was 7,092 thousand yen in theprevious period and 17,228 thousand yen in the current fiscal period.
1) Method of hedge accounting
In principal, deferred hedge accounting is applied. Note that special treatment is applied for interest
rate swaps that fulfill certain requirements.
2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Loans
3) Hedging policy
ADR conducts derivative transactions to hedge risks stipulated in ADR’s Articles of Incorporation inaccordance with its financial policy.
4) Method for assessing the hedge effectivenessThe effectiveness of hedges is assessed by comparing the cumulative change 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.

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

As of July 31, 2020

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

20,000,000

20,000,000––

20,000,000

20,000,000

Amount used
Unused balance

As of July 31, 2020

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

Initial amountReserve fordividends (Note)(Thousands of yen)

Balance as ofJanuary 31, 2020

Funds drawn down
during 19th FP

Balance as ofJanuary 31, 2020

31,857,520

336,166

31,521,354

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, 2020

Initial amountReserve fordividends (Note)

33,552,162(Thousands of yen)

Balance as ofJuly 31, 2020
31,521,354

Funds drawn down
during 20th FP
335,521

Balance as ofJuly 31, 2020
31,185,832

Reasons for setting aside anddrawing down funds
For dividends

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

31

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

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

For the six months ended
January 31, 2020

For the six months ended
July 31, 2020

14,629,047

14,838,488

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

831,273

Parking fees

441,916

848,122
15,902,237

438,368

16,124,979

Other revenue related to property leasing
Income from leasing rights

81,780Other549,272

Total revenue from property leasing activities

95,634
631,053

630,563

16,533,290

726,197
16,851,176

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

884,766

888,437

1,148,392

1,219,113

Utilities

237,422

227,110

Repairs and maintenance611,110

727,740

Property-casual insurance

25,53524,943

Trust fees

70,12977,285

Other rental expenses

699,546

745,192

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

2,762,607

6,439,510

2,797,528

6,707,351

6,439,510

6,707,351

10,093,780

10,143,824

32

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

Revenue from sales of real estate property

5,740,000

Cost of sales of real estate property

4,975,184

Other sales expenses

122,376

Gain on sales of real estate property

642,438

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

Revenue from sales of real estate property

957,000

Cost of sales of real estate property

857,423

Other sales expenses

25,906

Gain on sales of real estate property

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

Revenue from sales of real estate property

1,560,000

Cost of sales of real estate property

1,117,601

Other sales expenses
Gain on sales of real estate property

9,883
432,514(3) Breakdown of loss on sales of real estate properties
For the six months ended January 31, 2020
Not applicable.
For the six months ended July 31, 2020
(RESIDIA Kameyama)

33(Thousands of yen)

Revenue from sales of real estate property

1,000,000

Cost of sales of real estate property

1,477,171

Other sales expenses

34,750Loss on sales of real estate property

511,921

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, 2020

(Units)

As of July 31, 2020

Total number of units authorized

6,000,000

6,000,000

Total number of units issued and outstanding

1,385,000

1,385,000

7 Statements of Cash Distributions(1) Reserve for temporary difference adjustments
For the six months ended January 31, 2020
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within
50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP), which was the period following
the period in which the transfer to the reserve was made. As such, ADR has drawn down 335,521,628 yen of the reserve
during the fiscal period ended January 31, 2020 (19th FP).
For the six months ended July 31, 2020
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within
50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP), which was the period following
the period in which the transfer to the reserve was made. As such, ADR has drawn down 335,521,628 yen of the reserve
during the fiscal period ended July 31, 2020 (20th FP).

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, 2020
Cash and deposits
Cash and deposits in trust

17,327,999

As of July 31, 2020
14,178,864

9,967,400

9,891,267

Time deposits held over three months(11,000,000)(6,000,000)

Cash and cash equivalents

16,295,400

18,070,132

34

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

As of January 31, 2020

As of July 31, 2020

Due within one year

740,244740,664Due after one year

11,313,832

10,949,059

Total

12,054,076

11,689,723

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, 2020

As of July 31, 2020

Due within one year

2,512,200

3,054,604

Due after one year

4,795,971

5,262,480

Total

7,308,172

8,317,084

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.

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

Fair value

Unrealized gain (loss)

1) Cash and deposits

17,327,999

17,327,999–

2) Cash and deposits in trust

9,967,400

9,967,400–

3) Short-term loans payable

1,000,000

1,000,276(276)4) Current portion of investment corporation bonds

1,500,000

1,504,098(4,098)5) Current portion of long-term loans payable

25,070,000

25,117,257(47,257)

6) Investment corporation bonds

31,500,000

32,046,406(546,406)

7) Long-term loans payable

160,348,000

163,471,099(3,123,099)–(1,145,260)(1,145,260)

23,01923,019–8) Derivative transactions(Special treatment for interest rate swaps)
9) Derivative transactions(Basic treatment for interest rate swaps)

As of July 31, 2020

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

14,178,864

14,178,864–

2) Cash and deposits in trust

9,891,267

9,891,267–

3) Short-term loans payable

2,000,000

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

1,500,000

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

25,218,000

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

31,500,000

31,805,027(305,027)

7) Long-term loans payable

159,370,000

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

32,85532,855–8) Derivative transactions(Special treatment for interest rate swaps)
9) Derivative transactions(Basic treatment for interest rate swaps)*1. Methods of determining the fair value of financial instruments

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

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

Due in one
year or less(Thousands of yen)

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

Cash and deposits

17,327,999

–

–

–

–

–

Cash and deposits in trust

9,967,400

–

–

–

–

–

27,295,400

–

–

–

–

–

Total

As of July 31, 2020

(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

14,178,864

–

–

–

–

–

Cash and deposits in trust

9,891,267

–

–

–

–

–

24,070,132

–

–

–

–

–

Total

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

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

1,000,000

–

–

–

–

–

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

1,500,000

–

–

–

–

–

25,070,000

–

–

–

–

–

Investment corporation bonds––

2,000,000

3,000,000

7,500,000

19,000,000

Long-term loans payable–

28,978,000

21,710,000

15,760,000

11,550,000

82,350,000

27,570,000

28,978,000

23,710,000

18,760,000

19,050,000

101,350,000

Total

As of July 31, 2020

(Thousands of yen)Due in one
year or less

Short-term loans payable

2,000,000

–

–

–

–

–

1,500,000

–

–

–

–

–

25,218,000

–

–

–

–

–

Investment corporation bonds––

5,000,000

7,500,000

2,000,000

17,000,000

Long-term loans payable–

27,220,000

16,230,000

13,300,000

16,250,000

86,370,000

28,718,000

27,220,000

21,230,000

20,800,000

18,250,000

103,370,000

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

Total

37

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

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

12 Derivative Transactions(1) Derivative transactions to which hedge accounting is not applied
As of January 31, 2020
Not applicable.
As of July 31, 2020
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, 2020 and July 31, 2020 are as follows:
As of January 31, 2020
(Thousands of yen)Contract amount (*1)
Method of hedge
accounting

Type of derivativetransaction

Special accounting
treatment for interest rate
swaps

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

Basic accounting method

Main hedged
item

Contract
amount due
after one year

Fair value(*2)

Long-term loans
payable82,058,000

67,888,000(1,145,260)(*3)

Long-term loans
payable2,000,000

2,000,000(23,019)

As of July 31, 2020

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Special accounting
treatment for interest rate
swaps

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

Basic accounting method

Main hedged
item

Contract
amount due
after one year

Fair value(*2)

Long-term loans
payable72,188,000

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

Long-term loans
payable3,370,000

3,370,000(32,855)*1. The contract amount is based on the notional principal.
*2. Fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” and therefore, interest rate swaps are notstated at fair value in the balance sheets.

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

38

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

Type ofrelated party

Directors
and their
immediatefamilymembers

Name ofrelatedparty

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

Executive
Director of
ADR and thePresident of
ADIM

Percentage Relationshipsof voting with relatedpartiesrights held–

Account
name

Period-end
balance(Thousandsof yen)Management
fee 1

Accounts
207,854
payable –
(*2)
other

225,621(*3)

Management
fee 2

Accounts
174,865
payable –
(*2)
other

189,788(*3)

Accounts
185,193
payable –
(*2)
other

203,713(*3)

Nature of transactions

Paymentof asset
Asset
management
Management
management
fees to ADIM
fee 3company(*1)(*5)
Transfer fee
Acquisition
feeTransaction
amount(Thousandsof yen)28,700(*2)––

64,800
(*3)
(*4)

–

–

As of and for the six months ended July 31, 2020
Not applicable.
Terms and conditions of transactions and policy on determining the terms and conditions*1. 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.
*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. Takeshi Takano has resigned from his position as ADR’s executive director as of October 24, 2019. Accordingly, monetary amounts incurred up to his date of resignation have been stated as
amounts accured in the previous FP.

39

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

As of January 31, 2020

As of July 31, 2020

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

2,215

2,644

9,545,313

9,413,929

152,422

163,245

9,699,952

9,579,820(9,699,952)(9,579,820)(9,699,952)(9,579,820)

–
–

–
–

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

31.51

As of July 31, 2020
31.46

(Adjustments)
Increase (decrease) in valuation allowance(0.90)(1.64)

Deductible dividends(30.61)(29.82)

0.01
0.01

0.01
0.01

Other
Effective tax rate after the application of tax effect accounting

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

17 Asset Retirement Obligations
As of and for the six months ended January 31, 2020
Not applicable.
As of and for the six months ended July 31, 2020
Not applicable.

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

41

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

As of January 31, 2020

As of July 31, 2020

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)

423,943,477

427,399,620

3,456,142

2,790,627

427,399,620

430,190,248

598,229,000

607,022,000*1. The book value is the cost of acquisition less accumulated depreciation.
*2. Of the changes in the value of rental properties during the fiscal period, the main element of increase in the previous fiscal period was the acquisition of real estate beneficiary interests
in trust for five properties (9,930,772 thousand yen), and the decrease is mainly attributable to sale of real estate beneficiary interests in trust for one property (4,975,184 thousandyen). The main element of increase in the current fiscal period was acquisitions of four real estate properties (6,311,323 thousand yen) along with real estate beneficiary interests in trust
for one property (1,576,097 thousand yen), and the decrease is mainly attributable to sales of one real estate property (1,117,601 thousand yen) along with two real estate beneficiaryinterests in trust for two properties (2,334,594 thousand yen).
*3. The fair value at the end of the current fiscal period is the appraisal or assessment value provided by an external real estate appraiser.

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

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

As of and for the six months ended
July 31, 2020

Net assets per unit

167,291

166,950

Net income per unit

5,782

5,285

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

7,945,222

7,320,824––

7,945,222

7,320,824

1,374,076

1,385,000

42

III. Notes to Financial Statements
21 Signiﬁcant Subsequent Event
For the six months ended July 31, 2020
Acquisition of assets and agreements concluded on the acquisition of assets
Following the basic policies prescribed in its Articles of Incorporation, ADR concluded agreements on the acquisition of thefollowing assets:
RESIDIA Nakano-Fujimidai (Note 1)
Type of asset:
Real estate beneficiary interests in trust (Note 2)
Acquisition price:
1,684 million yen
Date of conclusion of agreement: September 29, 2020
Scheduled date of acquisition:
December 1, 2020 or another day as is agreed upon with the seller
Location:
4-6-13 Kamisaginomiya, Nakano-ku, Tokyo
Area:
999.62 m2 in land and 2,596.74 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 6 floors
Construction completion date:
March 2010
Notes: 1. The name of the property is scheduled to be changed after the acquisition is completed to the name listed. The
name of the property as of the date of this document is “Arendal Kamisaginomiya.”
2. 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.
3. In the event that a transaction agreement for such property is canceled for reasons attributable to ADR (as thebuyer) then ADR must make payment to the seller of a cancellation penalty amounting to 20% of the transaction
price.

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
75,558,000

60,990,000(980,250)

75,558,000

60,990,000(980,250)*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 947,395 thousand yen, special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for
Financial Instruments” and therefore, interest rate swaps are not stated at fair value in the balance sheets.

43

24 Summary of Real Estate

Property, plant and equipment

As of and for the six months ended July 31, 2020

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

76,891,771

2,356,986

707,60778,541,149

16,276,112

877,082

62,265,037*1*2

Structures

26,304

1,053

189

27,16910,392886

16,777–

Machinery and equipment

114,527

10,720-125,248

37,795

5,236

87,453–Tools, furniture and fixtures

420,949

37,446

3,423

454,973

225,885

25,042

229,088–

74,925,779

4,190,352

559,745

78,556,387--

78,556,387*1*2

12,171

16,604

12,171

16,604--

16,604–

Buildings in trust

157,267,593

1,312,933

1,812,916

156,767,610

31,714,517

1,796,567

125,053,092*1*2

Structures in trust

196,3395,500-

201,840

121,2134,414

80,626–

Machinery and equipmentin trust

224,585

7,952-

232,537

135,532

8,705

97,004–Tools, furniture and fixturesin trust

985,064

77,5388,037

1,054,565

678,338

45,155376,227–

161,245,386

1,235,571

974,483

161,506,474--

161,506,474*1*2

268,130

68,269268,130

68,269--68,269–472,578,604

9,320,929

4,346,705

477,552,829

49,199,785

2,763,091

428,353,043

2,356,072--

2,356,072

518,867

34,437

1,837,204–

25,230--25,23020,805

518

4,425

–

Subtotal

2,381,303--

2,381,303

539,672

34,955

1,841,630

Total

474,959,908

9,320,929

4,346,705

479,934,132

49,739,458

2,798,046

430,194,674

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, 2020, primarily represents the acquisition of the property listed below.
RESIDIA Minami-Shinagawa II
RESIDIA Kagurazaka II
RESIDIA Otemachi-Kita
RESIDIA Sasazuka III
RESIDIA Sendai-Kamisugi*2 The decrease in property, plant and equipment for the six months ended July 31, 2020, primarily represents the sale of the property listed below.
RESIDIA Kyobashi
RESIDIA Kameyama
RESIDIA Ryokuchikoen

25 Schedule of Other Speciﬁed Assets
Not applicable.

44III. Notes to Financial Statements
26 Schedule of Investment Corporation Bonds
As of and for the six months ended July 31, 2020

(Thousands of yen)

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

Issue date

ADR Bond #19 (Unsecured)

Apr. 25, 2013

3,000,000–

3,000,000

1.320

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

2,000,000–

2,000,000

1.410 Nov. 14, 2025 (*2) Unsecured

ADR Bond #21 (Unsecured)

Apr. 28, 2014

2,500,000–

2,500,000

1.040 Apr. 26, 2024 (*2) Unsecured

ADR Bond #22 (Unsecured)

Apr. 23, 2015

2,000,000–

2,000,000

0.726

Apr. 23, 2025 (*3) Unsecured

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

1,500,000–

1,500,000

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–

5,000,000

0.220

Jul. 24, 2024 (*2) Unsecured

ADR Bond #32 (Unsecured)

Jul. 25, 2019

3,000,000–

3,000,000 0.3485

Jul. 25, 2029 (*2) Unsecured

Total

–

33,000,000–

33,000,000–*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 bond45

1,500,000

Due after one year Due after two years
through two years through three years–

5,000,000

Use

Collateral

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

–

–

–

(Thousands of yen)

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

2,000,000

27 Schedule of Loans
As of and for the six months ended July 31, 2020

Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)

1,000,000––

1,000,000

0.16%

Sep. 11,2020

MUFG Bank, Ltd.

–

500,000–

500,000

Sumitomo Mitsui Trust Bank Limited

0.16%

(*5)

–

500,000–

500,000

Jan. 22,
2021

Total

1,000,000

1,000,000–

2,000,000

Development Bank of Japan Inc.

2,200,000––

2,200,000

1.23%

Nov. 29,
2020

(*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)

–

1,150,000–

1,150,000

1.08%

Mar. 24,
2021

(*4)

920,000–

920,000–

Aozora Bank, Ltd.

1,830,000–

1,830,000––

Mar. 24,
2020

(*5)

Resona Bank, Limited

1,370,000–

1,370,000–

Mizuho Trust & Banking Co., Ltd.

1,000,000––

1,000,000

The Norinchukin Bank––

1,000,000

Sep. 30,
2020

(*3)

1,000,000

1.07%
(*2)

500,000–

500,000––

Jun. 18,
2020

Mizuho Bank, Ltd.

–2,900,000–

2,900,000

Mizuho Trust & Banking Co., Ltd.

–1,500,000–

1,500,000

0.89%
(*2)

Feb. 16,
2021

(*5)

MUFG Bank, Ltd.

–

270,000–

270,000

Mizuho Bank, Ltd.

2,900,000–

2,900,000–

Mizuho Trust & Banking Co., Ltd.

––2,350,000–

Feb. 14,
2020

(*5)

2,350,000

Aozora Bank, Ltd.

900,000––

900,000

The Nishi-Nippon City Bank, Ltd.

––

400,000

0.58%
(*2)

Jan. 29,
2021

(*3)

400,000

Resona Bank, Limited

500,000––

500,000

The Bank of Fukuoka, Ltd.

––

500,000

0.57%
(*2)

Jan. 29,
2021

(*5)

500,000

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)

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000––

1,000,000

0.20%

Nov. 30,
2020

(*5)

The Norinchukin Bank–

1,000,000–

1,000,000

0.50%
(*2)

Apr. 14,
2021

(*3)

Sumitomo Mitsui Banking Corporation–

800,000–

800,000

0.27%

Apr. 30,
2021

(*5)

Short–term loans
payableLenders
Sumitomo Mitsui Trust Bank Limited

Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank Limited
Current portion of long–term loans payable(Thousands of yen)

The Yamaguchi Bank, Ltd.

Notes

(*6)
Unsecured
Unguaranteed

Unsecured(*3) Unguaranteed46

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAozora Bank, Ltd.

–1,379,000–

1,379,000

Resona Bank, Limited–

919,000–

919,000

Shinsei Bank, Limited–

700,000–

700,000

MUFG Bank, Ltd.

–

600,000–

600,000

Resona Bank, Limited–

500,000–

500,000

The Bank of Fukuoka, Ltd.

–

500,000–

500,000

Total

25,070,000

15,018,000

14,870,000

25,218,000

Development Bank of Japan Inc.

2,200,000--

Development Bank of Japan Inc.

1,150,000-

MUFG Bank, Ltd.

2,000,000

Sumitomo Mitsui Trust Bank Limited

Current portion of long-term loans
payableLenders

1.54%
(*2)

Jun. 25,
2021

(*5)

1.10%
(*2)

Jun. 18,
2021

(*3)

0.63%
(*2)

Jun. 30,
2021

(*5)

2,200,000

1.40%

Nov. 29,
2021

(*5)

1,150,000--

Mar. 24,
2021

(*4)

-

-

2,000,000

2,600,000--

2,600,000

Sumitomo Mitsui Banking
Corporation

1.25%
(*2)

Oct. 29,
2021

(*5)

1,500,000--

1,500,000

Mizuho Bank, Ltd.

2,160,000--

2,160,000

1.63%
(*2)

Dec. 22,
2021

(*5)

Aozora Bank, Ltd.

1,379,000-

1,379,000-

919,000-

919,000--

Jun. 25,
2021

(*5)

Sumitomo Mitsui Trust Bank Limited

2,600,000--

2,600,000

Nov. 15,
2023

(*5)

Sumitomo Mitsui Banking
Corporation

1.47%
(*2)

3,550,000--

3,550,000

1.37%
(*2)

Nov. 15,
2022

(*5)

Aozora Bank, Ltd.

1,800,000--

1,800,000

1.16%
(*2)

Nov. 26,
2021

(*3)

Shinsei Bank, Limited

1,000,000--

1,000,000

1.32%
(*2)

Jun. 17,
2022

(*3)

Shinsei Bank, Limited

700,000-

700,000--

Jun. 18,
2021

(*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)

-

Feb. 16,
2021

(*5)

0.82%
(*2)

Jul. 29,
2022

(*3)

Long-term loans payable

Resona Bank, Limited

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

500,000--

500,000

Mizuho Bank, Ltd.

2,900,000-

2,900,000-

Mizuho Trust & Banking Co., Ltd.

1,500,000-

1,500,000-

270,000-

270,000-

Mizuho Trust & Banking Co., Ltd.

MUFG Bank, Ltd.

47

Interest
Repayment
rate
Use
date
(*1)

MUFG Bank, Ltd.

707,000--

707,000

Sumitomo Mitsui Trust Bank Limited

393,000--

393,000

The Nishi-Nippon City Bank, Ltd.

400,000--

400,000

Notes

Unsecured
Unguaranteed

Unsecured
UnguaranteedClassification
Lenders

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

Development Bank of Japan Inc.

1,500,000--

1,500,000

1.02%
(*2)

Sep. 29,
2023

(*5)

Development Bank of Japan Inc.

1,850,000--

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

Aozora Bank, Ltd.

1,000,000--

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

Aozora Bank, Ltd.

700,000--

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

MUFG Bank, Ltd.

600,000-

600,000-

Resona Bank, Limited

500,000-

500,000

-

-

(*5)

The Bank of Fukuoka, Ltd.

Jun. 30,2021

500,000-

500,000

0.89%
(*2)

Jan. 31,
2023

(*5)

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)

0.75%
(*2)

Apr. 14,
2023

(*3)

The Yamaguchi Bank, Ltd.

Long-term loans payable

Balance at the
beginning of
periodMizuho Trust & Banking Co., Ltd.

1,200,000--

1,200,000

The Norinchukin Bank

1,500,000--

1,500,000

500,000--

500,000

0.73%
(*2)

Apr. 14,
2023

(*3)

1,200,000--

1,200,000

0.69%
(*2)

Oct. 14,
2022

(*3)

Kiraboshi Bank, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

700,000--

700,000

Apr. 14,
2022

(*3)

The 77 Bank, Ltd.

0.62%
(*2)

500,000--

500,000

The Norinchukin Bank

1,000,000-

1,000,000--

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)

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.84%
(*2)

Dec. 18,
2025

(*5)

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)

MUFG Bank, Ltd.

990,000--

990,000

0.55%

Feb. 28,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

990,000--

990,000

Mizuho Bank, Ltd.

1,080,000--

1,080,000

0.66%

Jan. 31,
2027

(*5)

MUFG Bank, Ltd.

2,500,000--

2,500,000

0.57%

Jan. 31,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.77%
(*2)

Mar. 24,
2028

(*3)

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.54%

Mar. 24,
2026

(*3)

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

Notes

Unsecured
Unguaranteed48

III. Notes to Financial Statements
Classification
Lenders

Long-term loans payable

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

Mizuho Bank, Ltd.

900,000--

900,000

Mizuho Trust & Banking Co., Ltd.

750,000--

750,000

Resona Bank, Limited

900,000--

1,150,000-

Sumitomo Mitsui Trust Bank Limited

500,000

MUFG Bank, Ltd.

Notes

0.63%

Jan. 31,
2027

(*3)

900,000

0.52%

Jan. 31,
2026

(*3)

-

1,150,000

0.45%

Jan. 31,
2025

(*3)

-

-

500,000

0.75%
(*2)

Mar. 24,
2028

(*3)

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) Unguaranteed

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)

Sumitomo Mitsui Trust Bank Limited

1,250,000--

1,250,000

Resona Bank, Limited

1,000,000--

1,000,000

0.61%

Jan. 29,
2027

(*5)

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)

0.60%

Apr. 30,
2027

(*5)

MUFG Bank, Ltd.

49

Balance at the
beginning of
periodUnsecured

Sumitomo Mitsui Trust Bank Limited

2,000,000--

2,000,000

MUFG Bank, Ltd.

2,000,000--

2,000,000

MUFG Bank, Ltd.

1,700,000--

1,700,000

0.54%

Oct. 30,
2026

(*5)

Development Bank of Japan Inc.

1,000,000--

1,000,000

0.57%

(*7)

Sumitomo Mitsui Banking
Corporation

May 31,2027

2,800,000-

2,800,000--

Feb. 26,
2021

(*5)

Classification
Lenders

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

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

The Bank of Fukuoka, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

500,000--

500,000

Bank of Kyoto, Ltd.

500,000--

500,000

Shinkin Central Bank

500,000--

500,000

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

The Bank of Fukuoka, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

500,000--

500,000

The Chugoku Bank, Ltd.

500,000--

500,000

Shinkin Central Bank

500,000--

500,000

MUFG Bank, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

Long-term loans payable

Balance at the
beginning of
period0.55%

Aug. 31,
2027

(*6)

0.42%

Feb. 27,
2026

(*6)

0.51%

Aug. 31,
2027

(*6)

0.55%

Aug. 31,
2027

(*6)

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%

(*5)

Sumitomo Mitsui Banking
Corporation

Apr. 30,2025

800,000-

800,000--

Apr. 30,
2021

(*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)

Development Bank of Japan Inc.

1,000,000--

1,000,000

The Nishi-Nippon City Bank, Ltd.

900,000--

900,000

0.66%

Jul. 31,
2028

(*5)

Mizuho Bank, Ltd.

500,000--

500,000

0.47%

Jul. 31,
2026

(*5)

1,000,000--

1,000,000

0.47%
(*2)

Jul. 31,
2026

(*5)

650,000--

650,000

0.37%

Jan. 31,
2025

(*5)

Shinsei Bank, Limited

1,000,000--

1,000,000

0.36%
(*2)

Jan. 31,
2025

(*5)

Shinsei Bank, Limited

500,000--

500,000

0.20%

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)

Mizuho Bank, Ltd.

Shinsei Bank, Limited
Sumitomo Mitsui Banking
Corporation

Notes

Unsecured
Unguaranteed50

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodLenders

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

Sumitomo Mitsui 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)

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)

The Nishi-Nippon City Bank, Ltd.

500,000--

500,000

0.31%

Sep. 28,
2029

(*5)

Sumitomo Life Insurance Company

700,000--

700,000

0.55%

Oct. 29,
2032

(*5)

Mizuho Bank, Ltd.

1,200,000--

1,200,000

0.39%

Nov. 30,
2029

(*5)

Shinsei Bank, Limited

1,000,000--

1,000,000

0.44%

Nov. 30,
2029

(*5)
(*5)

Sumitomo Mitsui Banking
Corporation

Long-term loans payable

Increaseduring theperiodSumitomo Mitsui Banking
Corporation

1,200,000--

1,200,000

0.20%

Aug. 31,
2021

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.32%

Dec. 18,
2029

(*5)

Mizuho Bank, Ltd.

-

1,000,000-

1,000,000

0.46%

Feb. 14,
2031

(*5)

Mizuho Bank, Ltd.

-

1,900,000-

1,900,000

0.39%

Feb. 14,
2030

(*5)

Mizuho Trust & Banking Co., Ltd.

-2,350,000-

2,350,000

0.39%

Feb. 14,
2030

(*5)

MUFG Bank, Ltd.

-2,000,000-

2,000,000

0.41%

Mar. 22,
2030

(*5)

Sumitomo Mitsui Trust Bank Limited-

2,000,000-

2,000,000

Shinkin Central Bank-

1,000,000-

1,000,000

0.44%Mar. 22,
2030

(*5)

Resona Bank, Limited-

1,370,000-

1,370,000

0.40%
(*2)

Mar. 22,
2030

(*5)

Sumitomo Mitsui Trust Bank Limited-

920,000-

920,000

0.21%

Mar. 24,
2023

(*5)

The 77 Bank, Ltd.

-

1,000,000-

1,000,000

0.40%

Mar. 27,
2030

(*3)

The Yamaguchi Bank, Ltd.

-

500,000-

500,000

0.39%

Jun. 18,
2030

(*5)

160,348,000

14,040,000

15,018,000

159,370,000

Total

Notes

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

Long-term loans
payable51

Due in one year or
less

Due after one year
through two years

25,218,000

27,220,000

Due after two years Due after three years Due after four years
through three years through four years through five years
16,230,000

13,300,000

16,250,000