Semi-Annual Reportfor the13th Fiscal Period

From August 1, 2016 to January 31, 2017

For a Superior Level of
Living Comfort

1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo

http://www.comforia-reit.co.jp/english/

Ⅰ. Overview of the Investment Corporation
Greetings
We are pleased to inform you that Comforia Residential REIT, Inc (the “Investment
Corporation”) successfully closed all accounts for the 13th Fiscal Period (fromAugust 1, 2016 to January 31, 2017). We would like to thank all of our unitholders and stakeholders for their continued support and cooperation.
We hereby report on the asset management overview and results for the 13th
Fiscal Period.
During the 13th Fiscal Period, the Investment Corporation newly acquired COMFORIA ICHIGAYAYAKUOJI, located in the Tokyo 23 wards, and two properties inother major cities with borrowings. Consequently, our asset size as of the end of
the 13th Fiscal Period totaled 101 properties, with ¥168.0 billion as the total acquisition price. The average occupancy rate remained high at 96.3% for the 13th
Fiscal Period. The Investment Corporation achieved ¥6,674 million in operating
revenue, ¥2,788 million in operating income, and ¥2,335 million in profit, all ofwhich exceeded our forecasts, resulting in a distribution per unit of ¥4,549.

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

Takehiro Izawa (right)

Executive Director, Comforia Residential REIT, Inc

Hiroyuki Tomata (left)

President & CEO, TLC REIT Management, Inc.

Furthermore, after the end of the 13th Fiscal Period, we acquired additional properties, five properties within the Tokyo 23
wards and three properties in other major cities in February 2017 through a public offering for the fourth consecutive year
since listing, in addition to borrowings. As a result, our portfolio as of February 2, 2017 stood at 109 properties, with a totalacquisition price of ¥186.4 billion. We intend to continue to make selective investments in high-quality properties mainlyin the Tokyo 23 wards.
We invest mainly in rental residences in the Tokyo metropolitan area, based on our basic policies of “investments inresidential properties with stable earnings and a high growth potential” and “utilization of the Tokyu Fudosan HoldingsGroup,” as well as the concept and expertise of the urban rental residence “Comforia” series, which Tokyu Land Corporation has produced for singles and small families. We will continue to aim to achieve stable earnings and ensure the steady
growth of our managed assets based on medium- and long-term perspectives to maximize our unitholders’ value. Your
continued support and cooperation are highly appreciated.

Financial Highlights
Operating revenue
Operating income
ProfitDistribution per unit
Total loan to value (LTV)

6,674 million¥ 2,788 million¥ 2,335 million¥ 4,549
51.6 %¥

Number of properties
Acquisition priceAppraisal value
Occupancy rate at the13th Fiscal Period-end
Average occupancy rate

101 properties¥ 168.0 billion¥ 196.3 billion
96.5 %
96.3 %

Contents
Ⅰ. Overview of the Investment Corporation

Ⅱ. Asset Management Report

1
Greetings/Financial Highlights
Selective Investments through Diversified Property Acquisition Channels 2
4External Growth Strategy
6Internal Growth Strategy
7
Financial Strategy
8
Portfolio Map
10
Portfolio List
17
Basic Policies
	Overview of the Investment Corporation andAsset Management Company
18

Ⅲ. Financial Section

21

Balance Sheets48

Statements of Income

50

Statements of Changes in Unitholders’ Equity

51

Statements of Cash Distributions

52

Statements of Cash Flows

53

Notes

54

Supplementary Schedules

64

Independent Auditor’s Report69

1Selective Investments through Diversified Property Acquisition Channels
During the 13th Fiscal Period, the Investment Corporation acquired of a total of three properties in August, September
and December 2016. Furthermore, the Investment Corporation acquired five sponsor-developed properties and threewarehousing properties held by sponsors with funds procured through a public offering in February 2017. With an aimof achieving an asset size of ¥200 billion, the Investment Corporation will continue to promote external growth by continuing to invest selectively in high-quality properties mainly in the Tokyo 23 wards focusing on the collaboration with
our sponsor group, as well as original sourcing by TLC REIT Management, Inc. (hereinafter referred to as the “Asset Management Company”), while seeking stable distribution levels.

Acquired COMFORIA
ICHIGAYAYAKUOJI and
Acquired COMFORIA
two other properties
SHINJUKU EASTSIDE TOWER
and three other properties
Acquired COMFORIA
KANDAJINBOCHO and11 other properties

Acquired COMFORIA
AKIHABARA EAST andseven other properties

Replacement ofassetsAim to expand
asset size while
maintaining a ratio ofassets in the Tokyo
23 wards above 90%■■ Selective investments mainly in the Tokyo 23 wards with an aim to achieve an asset size of ¥200 billion(Billions of yen)

Acquired COMFORIAKUDAN and24 other properties

200

Historical asset size
150

Over theAcquired COMFORIA
KOMABA andone other property

168.0

164.4

4 years since listing,

146.5

achieved approximately

2. 6-fold growth

116.2

92.8％

94.3％

9th
Fiscal Period”
Ended Jan. 2015

10th
Fiscal Period”
Ended Jul. 2015

11th
Fiscal Period”
Ended Jan. 2016

12th
Fiscal Period”
Ended Jul. 2016

13th After Public Offering(Feb. 2017)
Fiscal Period”
Ended Jan. 2017

¥4,268¥4,296¥4,403¥4,339¥4,487¥4,549

Aim to improve DPU(ongoing basis)

94.8%

95.2%

95.5%

96.2%

96.3%

96.5%

Consistently stable
occupancy rate

71.2

Tokyo
23 wards
96.3％

Tokyo
23 wards
96.3％

Tokyo
23 wards
93.3％

Listed(Feb. 6, 2013)

6th
Fiscal Period”
Ended Jul. 2013

7th
Fiscal Period”
Ended Jan. 2014

8th
Fiscal Period”
Ended Jul. 2014

Distribution per unit
(DPU)

̶

¥4,051¥4,203

Occupancy rate
at end of period

̶

95.9%

96.2%

“End ofTokyo
23 wards

90.0％

90.9％

93.6％

71.2

“End ofTokyo
23 wards
92.9％

Tokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards
More thanTokyo
23 wards

94.0％

Tokyo
23 wards
94.6％

74.5

146.7

122.8

100

0

186.4

“End of“End of“End of“End of“End of

Future strategy“End ofNote: Since a four-for-one split of investment units was carried out effective August 1, 2014, the figures for DPU prior to the split are divided by fourand rounded off to the nearest full number.

■■ Diversified Property Acquisition Channels Centering on Sponsor Groups■■ Property development by Tokyu Land Corporation (As of March 31, 2017)

The Investment Corporation promotes steady growth centered on the acquisition of assets from sponsor groups, mainly
from Tokyu Land Corporation. In addition, we strive to reinforce our property acquisition channels through the AssetManagement Company’s original information routes.

Tokyu Land Corporation has developed 15 properties with 1,752 units of rental residences as the “Comforia” series.

Upon public offering

13th Fiscal Period
Acquisition throughoriginal route of theAsset Management Company

3 properties¥3,626 million(Feb. 2017)+

Acquisition from sponsor group

Ratio of acquired assets by seller(As of March 31, 2017)
Other

Sponsor

29.3％

39.6％
Acquisition fromsponsor group8 properties¥18,447 million

70.7％
Other sponsors

31.1％
2

Tokyo area

Toshima-ku
Nakano-ku

HigashiYodogawa-ku

Arakawa-ku

Ikebukuro Bunkyo-ku Ueno

Sumida-ku

Shin-osaka

Taito-ku

Shinjuku-ku

11 properties
1, 244 units

Suginami-ku
Chiyoda-ku

Shinjuku
Shibuya-kuTokyoChuo-ku

Shibuya
Setagaya-ku

Suita-shi

Osaka area

Kita-ku

Itabashi-ku

Minato-ku

Shinagawa

Koto-ku

4 properties
508 units

Osaka

Kita-ku

Umeda

Shinagawa-ku
Meguro-ku

Nishi-kuChuo-ku

Shinsaibashi

Ota-kuProperty development by Tokyu Land Corporation（No specific plan has been made by the Investment Corporation to acquire any of the above
properties.）3

External Growth Strategy
During the 13th Fiscal Period, the Investment Corporation acquired a total of three properties, COMFORIA SAPPOROSHOKUBUTSUEN on August 1, 2016, COMFORIA OGIMACHI on September 30, 2016 and COMFORIA ICHIGAYAYAKUOJI
on December 13, 2016. Through the public offering in the 14th Fiscal Period, the Investment Corporation also acquired
eight properties, steadily expanding its asset size.

¥164.4 billion¥168.0 billion¥186.4 billion

End of12th Fiscal Period

End of13th Fiscal Period

Upon public offering(Feb. 2017)■■ Properties acquired through public offering(14th Fiscal Period)
104 COMFORIA AKIHABARA EAST
Sponsordeveloped

Central Tokyo

2-9-19 Higashikanda,
Chiyoda-ku, Tokyo
10-minute walk from Akihabara
Station on the JR Yamanote Line
Nearest station/ and other 4 lines
Distance (on foot) 6-minute walk from Asakusabashi
Station on the JR Chuo Sobu Local
Line and other 1 line
Address

Ownership

Sponsordeveloped

Appraisal NOI
yield

103 COMFORIA ICHIGAYAYAKUOJI

Central Tokyo

Warehousing

Ushigome
Post Office

Ushigome-yanagicho
StationTokyo Women’s
Medical University

Ushigome
Police Station

Seijo Junior and SeniorHigh School

Ushigome
Junior High School

103

My Basket
Ichigaya Yakuoji StoreTokyo Women’s
Medical University Hospital

COMFORIA ICHIGAYAYAKUOJI

Gaien
Higashi-doriMy Basket
Akebonobashi Ekimae

Akebonobashi
StationToei Shinjuku

Ministry of DefenseLine

Shinjuku Sumiyoshi
Post Office

Nearest station/
Distance (on foot)74-23 (lot number) Ichigayayakuojimachi,
Shinjuku-ku, Tokyo
5-minute walk from Ushigome-yanagicho Station on the
Toei Oedo Line

Ownership

OwnershipCompletion dateNov. 2006

Rentable units

21 units

Acquisition date

Dec. 13, 2016

Acquisition date Feb. 2, 2017

Acquisition price¥941,000 thousand

Acquisition price ¥1,330,000 thousand

Appraisal NOI yield

4.5% (as of Sep. 30, 2016)

Appraisal NOI
yield

Address

Toei Oedo Line

Yasukuni-dori

101 COMFORIA SAPPORO SHOKUBUTSUEN

Hakodat e M a i n L i ne

Daimaru
Sapporo StoreMy Basket Kita
5-jo Nishi 10-chome

Yamada Denki

FamilyMart
ai LineNishi 4-chome
StationRentable units

10-1-6 Kitanijonishi, Chuo-ku, Sapporo-shi, Hokkaido
6-minute walk from Nishi 11 Chōme Station on the Tozai
Line

Ownership

Ownership

5-minute walk from
Nearest station/
Hachimanyama Station on the
Distance (on foot)Keio Line

Completion date

Oct. 2006

Ownership

Rentable units

42 units

Completion date Mar. 2015

Acquisition dateAug. 1, 2016

Ogimachi
Park

Tenma
Junior High School

Tenjinbashisuji

Tenma
StationOgimachi
StationSta

Tozai Line102
Subway Sakaisuji Line

JR Kitashinchi
StationCOMFORIA OGIMACHI

R o u te 12 Moriguchi Linetion
Higashi Umeda
Station

Tenma
Police Station

HANKYUOASIS

ay Midosuji LineSubw

JR Osaka
Tenmangu
StationMinamimorimachi
StationOsaka
Tenmangu
ShrineWarehousing

Address

Rentable units

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

32 units

4.5% (as of Oct. 31, 2016)

107 COMFORIA KAMATA
Sponsordeveloped

Sub-central Tokyo

4-21-2 Kamata, Ota-ku, Tokyo
3-minute walk from Keikyu
Kamata Station on the KeikyuNearest station/ Main Line
Distance (on foot) 6-minute walk from Kamata
Station on the JR Keihin-Tohoku
Line and other 2 lines
Ownership
OwnershipCompletion date Aug. 2015
203 units
Rentable units(including 2 retail sections)
Acquisition date Feb. 2, 2017
Acquisition price ¥5,721,000 thousand
Address

Appraisal NOI
yield

4.5% (as of Oct. 31, 2016)

Nearest station/
Distance (on foot)4.5% (as of Oct. 31, 2016)

109 COMFORIA SHINSAIBASHI EAST
Sponsordeveloped

Address

Other major cities

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

5-minute walk from Shinsaibashi
Nearest station/ Station on the Osaka Municipal
Distance (on foot) Subway Midosuji Line and other 1
line

Ownership

Ownership

OwnershipCompletion date Jan. 2016

73 units

Rentable units

112 units

Acquisition date Feb. 2, 2017

Acquisition date Feb. 2, 2017

Acquisition price¥1,250,000 thousand

Acquisition price ¥1,245,000 thousand

Acquisition price ¥1,980,000 thousand

Appraisal NOI yield

5.6% (as of Aug. 1, 2016)

Appraisal NOI
yield

Appraisal NOI
yield

Address

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

Nearest station/
Distance (on foot)2-minute walk from Ogimachi Station on the Osaka
Municipal Subway Sakaisuji Line

Ownership

OwnershipCompletion date

Sep. 2014

Rentable units

88 units

Acquisition date

Sep. 30, 2016

Acquisition price¥1,435,000 thousand

Appraisal NOI yield

5.0% (as of Sep. 30, 2016)

S

i

ne

Tenjinbashi Shop Street

Kitano Hospital

Li
c hi
ma

Appraisal NOI
yield

56 units

Sub-central Tokyo

Ownership

Acquisition price ¥890,000 thousand

Ownership

108 COLLEGE COURT HACHIMANYAMA

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

Acquisition date Feb. 2, 2017

Nearest station/ 3-minute walk from Hakusan
Distance (on foot) Station on the Toei Mita Line

Rentable units

Central Tokyo

Completion date Feb. 2007

Completion date Aug. 2006

Other major cities

Nakazakicho
Station Osaka Loop L
ine

an
yT
wa
ub

JR Osaka
Station4

eet Car

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

Address

Akebonobashi
StationHankyu Umeda
Stationeda

Odori Park

Sapporo Str
Nishi 8-chome
Station

102 COMFORIA OGIMACHI

Um

Sapporo City
Governmenttion
Odori Sta

Subway Tozome
Nishi 11-chn
StatioChuo Kuyakushomae
Stationho LineSapporo Odori
High School

Sapporo Chuo
Police Stationenboku Lin
Subway Na

Hokkaido
Government

Botanic Garden
Hokkaido University

101

Sapporo Tokyu
Department
Store
SapporoStationSubway To

COMFORIA SAPPORO SHOKUBUTSUEN

SapporoStation

Address

Ownership

Other major cities
oro
JR Sapp
StationWarehousing

Address

Ownership

4.4% (as of Oct. 31, 2016)

Sub-central Tokyo

Warehousing properties
by sponsors

7-minute walk from Mita Station
Nearest station/on the Toei Mita Line and other 1
Distance (on foot)line

Ownership

106 COMFORIA BUNKYOHAKUSAN

Warehousing

105 COMFORIA MITA TROIS

Completion date Feb. 2016131 units
Rentable units
Acquisition date Feb. 2, 2017
Acquisition price ¥4,425,000 thousand■■ Properties acquired in the 13th Fiscal Period

Sponsor-developed
properties

4.6% (as of Oct. 31, 2016)

110 COMFORIA KYOMACHIBORI
Sponsordeveloped

Other major cities

1-16-14 Kyomachibori, Nishi-ku,
Osaka-shi, Osaka
7-minute walk from Higobashi
Station on the Osaka Municipal
Subway Yotsubashi Line
Nearest station/
9-minute walk from Hommachi
Distance (on foot)Station on the Osaka Municipal
Subway Midosuji Line and other 2
lines
Ownership
OwnershipCompletion date Jul. 2015
84 units
Rentable units
Acquisition date Feb. 2, 2017
Acquisition price ¥1,567,000 thousand
Address

Appraisal NOI
yield

4.8% (as of Oct. 31, 2016)

4.8% (as of Oct. 31, 2016)

111 COMFORIA AWAZA
Sponsordeveloped

Other major cities

1-5-5 Enokojima, Nishi-ku,
Osaka-shi, Osaka
2-minute walk from Awaza Station
Nearest station/on the Osaka Municipal Subway
Distance (on foot)Chuo Line and other 1 line
Address

Ownership

OwnershipCompletion date Jan. 2016
Rentable units

84 units

Acquisition date Feb. 2, 2017
Acquisition price ¥1,289,000 thousand
Appraisal NOI
yield

4.9% (as of Oct. 31, 2016)5

Internal Growth Strategy

Financial Strategy■■ Occupancy rate（%）

Total portfolio

100

96.2%

96.4%

96.5%
95.1%

95

94.9%

96.3%

95.2%

95.6%

96.2%

Total portfolio (year-on-year)

96.3%

96.6%

96.5%

96.5%

The Investment Corporation will carry out equity finance (additional issuance of investment units) and debt finance(borrowings of funds and issuance of investment corporation bonds) while paying attention to financial soundness andearnings stability. Furthermore, the Investment Corporation will appropriately control our balance sheet by maintaining
an LTV level to secure fund capacity.

■■ Interest-bearing debt
End of 11th Fiscal Period(ended Jan. 31, 2016)

End of 12th Fiscal Period(ended Jul. 31, 2016)

End of 13th Fiscal Period(ended Jan. 31, 2017)49. 8%
78. 0%
97. 5%
3. 4 years
0. 87%

50. 6%
86. 5%
78. 8%
3. 9 years
0. 66%

51. 6%
90. 7%
84. 2%
4. 3 years
0. 68%ＬＴＶ (Note)

90
Central Tokyo100

Sub-central Tokyo

Tokyo metropolitan area

Long-term debt ratio

Other major cities

Fixed-interest debt ratio
Average maturity
Weighted avg. interest

95

Note: Interest-bearing debt balance/total assets

90■■ Diversification of repayment dates
11th FPJan.

12th FP
Feb.

Mar.

Apr.

May

13th FP
Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

The expected repayments of debt and investment corporation bonds as of January 31, 2017 are as follows:
Dec.

Jan.

2017

2016

(Millions of yen)
15,00010,000■■ Provision of added value to tenants (examples)

Debt

8,840

7,925

6,900 7,500
3,700

5,000

1,350

Development of Dedicated Tenant Services

WELBOX

Free Use of Fitness Club

FitOn

0

Investment corporation bonds

12,4955,500 3,000
4,925

8,800
5,000

5,860
3,410

2,000 2,330

3,410

5,000

4,950

14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP

■■ Loan balances
The Investment Corporation’s loan balances as of January 31, 2017 are as follows:

COMFORIA WELBOX offers unique internet services
developed with the support of EWEL, one of the groupcompanies. About 4,000 services are provided in total,
including discount services at Tokyu Hands, anothergroup company, as well as discounts for car rentals,
cinema and accommodation. By providing such services, we will improve the profitability of our portfolio
through increased tenant satisfaction and raised occupancy rates.

FitOn, a facility usage service for residents, was introduced to selected properties in the Comforia series.
This service offers residents free use of facilities at Tokyu Sports Oasis, Inc. for a specified number of times
per month.
In addition, at COMFORIA SHINJUKU EASTSIDE TOWER,
the management and operation of the gym and pool
within the property are entrusted to Tokyu Sports Oasis, Inc.

0.8％
1.4％
1.9％
2.4％
3.9％

(2)	Discount service at Tokyu Hands(3)	D iscount service of car rentals, andothersThe Bank of Tokyo-Mitsubishi UFJ, Ltd.

18.7％

Development Bank of Japan Inc.

7.7%

Sumitomo Mitsui Banking Corporation
Mizuho Trust & Banking Co., Ltd.

15.9％

The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The Tokyo Tomin Bank, Limited
Shinkin Central Bank

15.4％

The 77 Bank, Ltd.

15.4％

The Daishi Bank, Ltd.

Tokyu Sports Oasis, Inc.
■■ Management, planning, and operation of members-only

comprehensive fitness clubs■■ Planning and operation of fitness-related business■■ Swimming school business

6

Sumitomo Mitsui Trust Bank, Limited

TOKYU SPORTS OASIS, Inc.

Main services available(1)	Discount service for accommodation

Mitsubishi UFJ Trust and Banking Corporation
Mizuho Bank, Ltd.

15.4%
EWEL, Inc

Loan balance(millions of yen)

Lender

0.5％
0.5％

Total

17, 170
14, 615
14, 180
14, 180
14, 180
7, 0453, 5502, 2501, 7501, 300750
500
500
91, 970■■ Credit rating (As of January 31, 2017)
Rating Agency

Rating category

RatingOutlookJapan Credit Rating Agency, Ltd.

Long-term issuer rating

AA-

Stable7

Portfolio Map

The Investment Corporation manages assets with superb
accessibility located mainly in the Tokyo 23 wards.
Central Tokyo

COMFORIA
103 ICHIGAYAYAKUOJI

106 COMFORIA
BUNKYOHAKUSAN

104 COMFORIA
AKIHABARA EAST

47

42 properties

1 COMFORIA NIHONBASHI NINGYOCHO 26 COMFORIA HARAJYUKU

61 COMFORIA SHIBAURA CANAL

85 COMFORIA TAMACHI

2 COMFORIA WASEDA

30 COMFORIA MITA NORTH

69 COMFORIA KITASANDO

86 COMFORIA AZABUJUBAN

3 COMFORIA SHIMOOCHIAI

31 COMFORIA SHIBAURA BOWHOUSE 70 COMFORIA YOYOGIUEHARA

92 COMFORIA SHINJUKUGYOENⅠ

4 COMFORIA HIGASHINAKANO

48 COMFORIA SHIROKANETAKANAWA 71 COMFORIA SASAZUKA

93 COMFORIA KAGURAZAKA DEUX

14 COMFORIA GINZA EAST

49 COMFORIA NIHONBASHI NINGYOCHO EAST 72 COMFORIA SHINJUKUGYOENⅡ

96 COMFORIA AZABU EAST

15 COMFORIA AZABUDAI

50 COMFORIA ATAGO

73 COMFORIA ICHIGAYAYANAGICHO 98 COMFORIA SHINJUKU EASTSIDE TOWER

16 COMFORIA SHIBAKOEN

56 COMFORIA KUDAN

74 COMFORIA KAGURAZAKA

17 COMFORIA NISHIAZABU

57 COMFORIA NIHONBASHI NINGYOCHO NORTH 80 COMFORIA NIBANCHO

104 COMFORIA AKIHABARA EAST

18 COMFORIA MINAMIAOYAMA

58 COMFORIA SHINKAWA

105 COMFORIA MITA TROIS

81 COMFORIA NISHISHINJUKU

19 COMFORIA MINAMIAOYAMA DEUX 59 COMFORIA AKASAKA

83 COMFORIA KANDAJINBOCHO

20 COMFORIA NISHIWASEDA

84 COMFORIA NIHONBASHI

60 COMFORIA MITA EAST

Sub-central Tokyo

53 properties

5 properties

38 COMFORIA MISYUKU

82 COMFORIA KOMABA

28 COMFORIA KOMAE

6 COMFORIA ASAKUSAMATSUGAYA

39 COMFORIA GAKUGEIDAIGAKU

87 COMFORIA KINSHICHO

42 COMFORIA YOKOHAMAKANNAI

7 COMFORIA NISHIOI

40 COMFORIA HIGASHINAKANO DEUX 88 COMFORIA MINAMISUNAMACHI

8 COMFORIA NAKANO

41 COMFORIA HIGASHIIKEBUKURO WEST 89 COMFORIA HIGASHISHINAGAWA 47 COMFORIA YATSUKA

9 COMFORIA SHIMOKITAZAWA

43 COMFORIA RYOGOKU DEUX

10 COMFORIA NISHIKAMATA

44 COMFORIA OMORI DEUX

91 COMFORIA YOGA

11 COMFORIA OYAMA

45 COMFORIA MACHIYA

94 COMFORIA ITABASHINAKAJUKU

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 51 COMFORIA ASAKUSABASHI

Itabashi-ku

52 COMFORIA RYOGOKU SOUTH

99 COMFORIA OJIMA

21 COMFORIA KOISHIKAWA

53 COMFORIA TOYOSU

100 COMFORIA OMORI TROIS

22 COMFORIA SENGOKU

Toshima 27
-ku

Tokyo

Ikebukuro

Kichijoji
Suginami-ku

46 COMFORIA ICHIKAWAMYODEN

108

77 COMFORIA SHINKOYASU

Setagaya-ku

55 COMFORIA SUMIDA-TACHIBANA 106 COMFORIA BUNKYOHAKUSAN

28

23 COMFORIA DAIKANYAMAAOBADAI 62 COMFORIA UENOHIROKOJI

107 COMFORIA KAMATA

27 COMFORIA IKEBUKURO

63 COMFORIA KASUGATOMISAKA

108 COLLEGE COURT HACHIMANYAMA

29 COMFORIA RYOGOKUISHIWARA

64 COMFORIA HONKOMAGOME

95 10191

366 COMFORIA KIBAKOEN

34 COMFORIA HONJOAZUMABASHI

45
64
41
75 22 10676

67 COMFORIA MEGURO CHOJAMARU

36 COMFORIA MONZENNAKACHO

75 COMFORIA HIGASHIIKEBUKURO EAST

37 COMFORIA HIMONYA

76 COMFORIA HIGASHIIKEBUKURO

Ota-ku54 COMFORIA SHIN-OSAKA

95 COMFORIA KITASANJO

78 COMFORIA SHINSAKAE

101 COMFORIA SAPPORO SHOKUBUTSUEN 110 COMFORIA KYOMACHIBORI

79 COMFORIA KITAHORIE

102 COMFORIA OGIMACHI

Nishifunabashi
Edogawa-ku

46

105 COMFORIA
MITA TROIS
105

44
100

10 107107 COMFORIA
KAMATA
Acquired in the
14th Fiscal Period

Acquired in the
14th Fiscal Period

9 properties

Chiba

Taito-ku Sumida-ku

7
68

Other major cities

Total

Bunkyo-ku

Katsushika-ku

55
6
21 5 Ueno
8
33
62
34
40 4
63
2 74
32
98
29
87
81
104 51
73 93
83
72
84
56
103
52
Shinjuku
43
92
Chiyoda 57 49
80
69
99
65 35
-ku
1
Tokyo
12 88
Shibuya-ku
36
58
71
59
26 18
14
66
9
19
Koto-ku70
15 50
Chuo-ku
Shibuya
17 86 96 16
53
82
23
30 60
48 105 61
38
31
Minato67 -ku 85
13
39 Meguro-ku
Shinagawa
37
97
90
Shinagawa-ku 89
Shinjuku
20 -ku108 COLLEGE COURTHACHIMANYAMA

35 COMFORIA KIYOSUMISHIRAKAWA TROIS 68 COMFORIA NISHIMAGOME

Acquired in the
14th Fiscal Period

Arakawa-ku

32 COMFORIA ASAKUSABASHI DEUX 65 COMFORIA MORISHITA
33 COMFORIA OSHIAGE

Adachi-ku

Kita-ku

94
11

Nerima-ku

97 COMFORIA SHINAGAWA EAST

13 COMFORIA KOMAZAWA

AkabaneAcquired in the
14th Fiscal PeriodNakano-ku

5 COMFORIA BUNKYOKASUGA

90 COMFORIA MEGUROYAKUMO

Acquired in the
13th Fiscal Period

103 COMFORIA ICHIGAYAYAKUOJI

Tokyo
metropolitan area

Saitama

109 COMFORIA SHINSAIBASHI EAST
111 COMFORIA AWAZA

Acquired in the
14th Fiscal Period

Kanagawa

109 properties

77

COMFORIA SAPPORO
101 SHOKUBUTSUENCOMFORIA
102 OGIMACHI

109 COMFORIASHINSAIBASHI EASTCOMFORIA
110 KYOMACHIBORI

111 COMFORIA AWAZA

Acquired in the
14th Fiscal Period

Acquired in the
14th Fiscal Period

Acquired in the
14th Fiscal Period(As of March 31, 2017)

Yokohama

Central Tokyo

Tokyo metropolitan area

Sub-central Tokyo

Other major cities78
54 79 102
109 110 111

842Acquired in the
13th Fiscal Period

Acquired in the
13th Fiscal Period

9Portfolio List
■ Central Tokyo ■ Sub-central Tokyo ■ Tokyo metropolitan area ■ Other major cities
No.

Property nameLocation

Portfolio properties at the 13th Fiscal Period-end
1 COMFORIA NIHONBASHI NINGYOCHO Nihonbashi Ningyocho, Chuo-ku, Tokyo
Bentencho, Shinjuku-ku, Tokyo
2 COMFORIA WASEDA
Nakaochiai, Shinjuku-ku, Tokyo
3 COMFORIA SHIMOOCHIAI
Kitashinjuku, Shinjuku-ku, Tokyo
4 COMFORIA HIGASHINAKANO
Nishikata, Bunkyo-ku, Tokyo
5 COMFORIA BUNKYOKASUGA
6 COMFORIA ASAKUSAMATSUGAYA Matsugaya, Taito-ku, Tokyo
Nishioi, Shinagawa-ku, Tokyo
7 COMFORIA NISHIOI
Kamitakada, Nakano-ku, Tokyo
8 COMFORIA NAKANO
Hanegi, Setagaya-ku, Tokyo
9 COMFORIA SHIMOKITAZAWA
Nishikamata, Ota-ku, Tokyo
10 COMFORIA NISHIKAMATA
Oyamacho, Itabashi-ku, Tokyo
11 COMFORIA OYAMA
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH Miyoshi, Koto-ku, Tokyo
Komazawa, Setagaya-ku, Tokyo
13 COMFORIA KOMAZAWA
Irifune, Chuo-ku, Tokyo
14 COMFORIA GINZA EAST
Azabudai, Minato-ku, Tokyo
15 COMFORIA AZABUDAI
Shibakoen, Minato-ku, Tokyo
16 COMFORIA SHIBAKOEN
Nishiazabu, Minato-ku, Tokyo
17 COMFORIA NISHIAZABUMinamiaoyama, Minato-ku, Tokyo
18 COMFORIA MINAMIAOYAMA
19 COMFORIA MINAMIAOYAMA DEUX Minamiaoyama, Minato-ku, Tokyo
Takadanobaba, Shinjuku-ku, Tokyo
20 COMFORIA NISHIWASEDA
Koishikawa, Bunkyo-ku, Tokyo
21 COMFORIA KOISHIKAWA
Sengoku, Bunkyo-ku, Tokyo
22 COMFORIA SENGOKU
23 COMFORIA DAIKANYAMAAOBADAI Aobadai, Meguro-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
26 COMFORIA HARAJYUKU
Ikebukuro, Toshima-ku, Tokyo
27 COMFORIA IKEBUKURO
Iwadokita, Komae-shi, Tokyo
28 COMFORIA KOMAE
Ishiwara, Sumida-ku, Tokyo
29 COMFORIA RYOGOKUISHIWARA
Mita, Minato-ku, Tokyo
30 COMFORIA MITA NORTH
31 COMFORIA SHIBAURA BOWHOUSE Kaigan, Minato-ku, Tokyo
Asakusabashi, Taito-ku, Tokyo
32 COMFORIA ASAKUSABASHI DEUX
Narihira, Sumida-ku, Tokyo
33 COMFORIA OSHIAGE
Honjo, Sumida-ku, Tokyo
34 COMFORIA HONJOAZUMABASHI
35 COMFORIA KIYOSUMISHIRAKAWA TROIS Shirakawa, Koto-ku, Tokyo
Fuyuki, Koto-ku, Tokyo
36 COMFORIA MONZENNAKACHO
Himonya, Meguro-ku, Tokyo
37 COMFORIA HIMONYA
Ikejiri, Setagaya-ku, Tokyo
38 COMFORIA MISYUKU
Shimouma, Setagaya-ku, Tokyo
39 COMFORIA GAKUGEIDAIGAKU
40 COMFORIA HIGASHINAKANO DEUX Higashinakano, Nakano-ku, Tokyo
41 COMFORIA HIGASHIIKEBUKURO WEST Higashiikebukuro, Toshima-ku, Tokyo
Okinacho, Naka-ku, Yokohama-shi, Kanagawa
42 COMFORIA YOKOHAMAKANNAI
Chitose, Sumida-ku, Tokyo
43 COMFORIA RYOGOKU DEUX
Omorikita, Ota-ku, Tokyo
44 COMFORIA OMORI DEUX
Arakawa, Arakawa-ku, Tokyo
45 COMFORIA MACHIYA
Shioyaki, Ichikawa-shi, Chiba
46 COMFORIA ICHIKAWAMYODEN
Sezaki, Soka-shi, Saitama
47 COMFORIA YATSUKA
48 COMFORIA SHIROKANETAKANAWA Mita, Minato-ku, Tokyo
49 COMFORIA NIHONBASHI NINGYOCHO EAST Nihonbashi Ningyocho, Chuo-ku, Tokyo
Toranomon, Minato-ku, Tokyo
50 COMFORIA ATAGO
Yanagibashi, Taito-ku, Tokyo
51 COMFORIA ASAKUSABASHI
Chitose, Sumida-ku, Tokyo
52 COMFORIA RYOGOKU SOUTH
Edagawa, Koto-ku, Tokyo
53 COMFORIA TOYOSU
Higashinakajima, Higashiyodogawa-ku, Osaka-shi, Osaka
54 COMFORIA SHIN-OSAKA
Tachibana, Sumida-ku, Tokyo
55 COMFORIA SUMIDA-TACHIBANA
Kudanminami, Chiyoda-ku, Tokyo
56 COMFORIA KUDAN
57 COMFORIA NIHONBASHI NINGYOCHO NORTH Nihonbashi Horidomecho, Chuo-ku, Tokyo
Shinkawa, Chuo-ku, Tokyo
58 COMFORIA SHINKAWA
Akasaka, Minato-ku, Tokyo
59 COMFORIA AKASAKA
Shiba, Minato-ku, Tokyo
60 COMFORIA MITA EAST
10Gross floor area(m2)

3,021.53
3,080.28
2,726.15
1,058.75
3,198.54
2,264.84
1,542.53
1,935.39
5,287.18
3,358.99
4,793.28
1,317.22
1,695.46
5,773.48
1,028.94
1,914.13
1,069.77
1,763.88
487.97
2,971.10
1,015.71
3,514.75
1,533.95
6,314.63
1,171.21
1,468.30
1,151.47
1,257.94
4,862.18
1,596.33
1,369.26
1,434.29
1,553.45
4,916.04
2,302.53
2,842.56
1,919.59
1,419.08
8,296.57
2,377.62
2,010.27
2,180.52
1,361.92
1,533.11
1,710.09
1,932.57
2,912.38
1,147.20
5,273.67
2,404.23
4,513.10
6,530.63
1,888.25
1,787.89
1,717.58
2,866.08
2,956.70
4,973.31

Rentable Acquisition price Investment
units(thousands of yen) ratio (%)

45
79
44
37
80
62
59
35
116
103
97
45
39
133
24
54
22
24
6
60
37
44
26
99
28
24
47
30
75
46
47
48
50
144
28
59
38
40
155
60
66
64
30
48
62
37
82
38
141
61
161
133
56
36
36
59
40
111

1,586,837
1,900,000
1,181,000
552,707
1,470,000
910,000
902,370
881,8632,587,000
1,550,000
1,987,000
740,000
1,290,000
3,059,000
574,000
1,398,000
755,000
1,041,000
248,000
1,685,000
552,000
1,219,000
926,000
3,629,000
602,000
399,000
651,000
850,000
2,650,000
874,000
714,000
762,000
873,000
2,658,000
1,189,000
1,874,000
1,138,000
833,000
3,911,000
972,000
1,014,730
1,188,000
594,000
606,000
626,000
1,300,000
2,139,300
826,000
2,680,000
1,240,000
3,096,650
2,400,000
938,000
1,280,500
1,108,000
1,840,800
1,945,000
3,190,550

0.9
1.0
0.6
0.3
0.8
0.5
0.5
0.5
1.4
0.8
1.1
0.4
0.7
1.6
0.3
0.7
0.4
0.6
0.1
0.9
0.3
0.7
0.5
1.9
0.3
0.2
0.3
0.5
1.4
0.5
0.4
0.4
0.5
1.4
0.6
1.0
0.6
0.4
2.1
0.5
0.5
0.6
0.3
0.3
0.3
0.7
1.1
0.4
1.4
0.7
1.7
1.3
0.5
0.7
0.6
1.0
1.0
1.7

No.

61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97

Property nameLocation

Gross floor area(m2)

2,703.41
1,935.60
COMFORIA KASUGATOMISAKA
Kasuga, Bunkyo-ku, Tokyo
4,479.23
COMFORIA HONKOMAGOME
Honkomagome, Bunkyo-ku, Tokyo
2,623.37
COMFORIA MORISHITA
Shinohashi, Koto-ku, Tokyo
2,159.39
COMFORIA KIBAKOEN
Kiba, Koto-ku, Tokyo
1,753.85
COMFORIA MEGURO CHOJAMARU
Kamiosaki, Shinagawa-ku, Tokyo
3,720.52
COMFORIA NISHIMAGOME
Nishimagome, Ota-ku, Tokyo
1,797.93
COMFORIA KITASANDO
Sendagaya, Shibuya-ku, Tokyo
7,667.04
COMFORIA YOYOGIUEHARA
Uehara, Shibuya-ku, Tokyo
2,344.24
COMFORIA SASAZUKA
Sasazuka, Shibuya-ku, Tokyo
3,440.91
COMFORIA SHINJUKUGYOEN Ⅱ
Shinjuku, Shinjuku-ku, Tokyo
2,312.79
COMFORIA ICHIGAYAYANAGICHO
Ichigayayanagicho, Shinjuku-ku, Tokyo
2,416.85
COMFORIA KAGURAZAKA
Iwatocho, Shinjuku-ku, Tokyo
1,161.31
COMFORIA HIGASHIIKEBUKURO EAST Higashiikebukuro, Toshima-ku, Tokyo
3,156.84
COMFORIA HIGASHIIKEBUKURO
Higashiikebukuro, Toshima-ku, Tokyo
1,798.18
COMFORIA SHINKOYASU
Koyasudori, Kanagawa-ku, Yokohama-shi, Kanagawa
2,622.19
COMFORIA SHINSAKAE
Shinsakae, Naka-ku, Nagoya-shi, Aichi
4,098.97
COMFORIA KITAHORIE
Kitahorie, Nishi-ku, Osaka-shi, Osaka
1,910.01
COMFORIA NIBANCHO
Nibancho, Chiyoda-ku, Tokyo
2,165.01
COMFORIA NISHISHINJUKU
Kitashinjuku, Shinjuku-ku, Tokyo
1,947.14
COMFORIA KOMABA
Ikejiri, Setagaya-ku, Tokyo
7,450.62
COMFORIA KANDAJINBOCHO
Kandajinbocho, Chiyoda-ku, Tokyo
1,823.86
COMFORIA NIHONBASHI
Nihonbashibakurocho, Chuo-ku, Tokyo
2,950.59
COMFORIA TAMACHI
Shibaura, Minato-ku, Tokyo
5,494.78
COMFORIA AZABUJUBAN
Mita, Minato-ku, Tokyo
1,632.38
COMFORIA KINSHICHO
Taihei, Sumida-ku, Tokyo
1,917.15
COMFORIA MINAMISUNAMACHI
Minamisuna, Koto-ku, Tokyo
8,124.20
COMFORIA HIGASHISHINAGAWA
Higashishinagawa, Shinagawa-ku, Tokyo
3,298.65
COMFORIA MEGUROYAKUMO
Yakumo, Meguro-ku, Tokyo
1,333.57
COMFORIA YOGA
Yoga, Setagaya-ku, Tokyo
1,798.36
COMFORIA SHINJUKUGYOEN Ⅰ
Shinjuku, Shinjuku-ku, Tokyo
1,832.93
COMFORIA KAGURAZAKA DEUX
Iwatocho, Shinjuku-ku, Tokyo
1,637.00
COMFORIA ITABASHINAKAJUKUNakajuku, Itabashi-ku, Tokyo
7,732.25
COMFORIA KITASANJO
Kitasanjohigashi, Chuo-ku, Sapporo-shi, Hokkaido
3,949.79
COMFORIA AZABU EAST
Higashiazabu, Minato-ku, Tokyo
3,505.12
COMFORIA SHINAGAWA EAST
Kitashinagawa, Shinagawa-ku, Tokyo
3,701.07(Tower Building) 69,308.35(Annex Building) 2,305.29
98 COMFORIA SHINJUKU EASTSIDE TOWER Shinjuku, Shinjuku-ku, Tokyo
203.15(Gate Building)Ojima, Koto-ku, Tokyo
2,828.47
99 COMFORIA OJIMA
Omorikita, Ota-ku, Tokyo
1,232.52
100 COMFORIA OMORI TROIS
4,062.44
101 COMFORIA SAPPORO SHOKUBUTSUEN Kitanijonishi, Chuo-ku, Sapporo-shi, Hokkaido
Tenjinbashi, Kita-ku, Osaka-shi, Osaka
2,374.77
102 COMFORIA OGIMACHI
Ichigayayakuojimachi, Shinjuku-ku, Tokyo
1,392.29
103 COMFORIA ICHIGAYAYAKUOJI

Rentable Acquisition price Investment
units(thousands of yen) ratio (%)

95
37
106
36
75
60
71
52
144
51
89
65
69
29
90
48
36
144
73
42
56
136
43
63
77
55
46
211
86
36
39
52
46
104
60
69
97

1,570,000
1,050,000
2,912,150
1,344,000
1,530,000
956,000
1,972,000
990,000
4,268,000
1,560,000
1,789,000
1,806,000
1,623,000
736,000
1,712,000
1,132,000
1,077,000
1,653,400
1,010,000
1,621,000
1,625,000
5,000,000
1,434,000
1,956,000
3,272,000
1,471,000
1,042,000
4,681,000
1,510,000
813,000
1,041,000
1,406,000
1,245,000
3,794,280
660,000
1,900,000
1,430,000

0.8
0.6
1.6
0.7
0.8
0.5
1.1
0.5
2.3
0.8
1.0
1.0
0.9
0.4
0.9
0.6
0.6
0.9
0.5
0.9
0.9
2.7
0.8
1.0
1.8
0.8
0.6
2.5
0.8
0.4
0.6
0.8
0.7
2.0
0.4
1.0
0.8

765

13,264,000

7.1

99
45
42
88
21

2,110,000
866,000
1,250,000
1,435,000
941,000

1.1
0.5
0.7
0.8
0.5

352,410.75

7,298

168,046,137

90.1

5,192.38
1,096.43
1,971.16
7,900.68
1,923.34
3,407.91
2,625.18
2,844.34

131
32
56
203
73
112
84
84

4,425,000
890,000
1,330,000
5,721,000
1,245,000
1,980,000
1,567,000
1,289,000

2.4
0.5
0.7
3.1
0.7
1.1
0.8
0.7

Sub-total

26,961.42

775

18,447,000

9.9

Total

379,372.17

8,073

186,493,137

100.0

COMFORIA SHIBAURA CANAL

Kaigan, Minato-ku, Tokyo

COMFORIA UENOHIROKOJI

Ueno, Taito-ku, Tokyo

Sub-total

Assets acquired in the 14th Fiscal Period
Higashikanda, Chiyoda-ku, Tokyo
104 COMFORIA AKIHABARA EAST
Shiba, Minato-ku, Tokyo
105 COMFORIA MITA TROIS
Honkomagome, Bunkyo-ku, Tokyo
106 COMFORIA BUNKYOHAKUSAN
Kamata, Ota-ku, Tokyo
107 COMFORIA KAMATA
108 COLLEGE COURT HACHIMANYAMA Takaido, Suginami-ku, Tokyo
Bakuromachi, Chuo-ku, Osaka-shi, Osaka
109 COMFORIA SHINSAIBASHI EAST
Kyomachibori, Nishi-ku, Osaka-shi, Osaka
110 COMFORIA KYOMACHIBORI
Enokojima, Nishi-ku, Osaka-shi, Osaka
111 COMFORIA AWAZA

11

Portfolio List
Central Tokyo

69 COMFORIA KITASANDO

98 COMFORIA SHINJUKU EASTSIDE TOWER

96 COMFORIA AZABU EAST

93 COMFORIA KAGURAZAKA DEUX

86 COMFORIA AZABUJUBAN

85 COMFORIA TAMACHI

84 COMFORIA NIHONBASHI

83 COMFORIA KANDAJINBOCHO

80 COMFORIA NIBANCHO

1272 COMFORIA SHINJUKUGYOEN Ⅱ

71 COMFORIA SASAZUKA

70 COMFORIA YOYOGIUEHARA

60 COMFORIA MITA EAST

50 COMFORIA ATAGO

49 COMFORIA NIHONBASHI NINGYOCHO EAST

48 COMFORIA SHIROKANETAKANAWA

13

Portfolio List
56 COMFORIA KUDAN

59 COMFORIA AKASAKA

26 COMFORIA HARAJYUKU

51 COMFORIA ASAKUSABASHI

89 COMFORIA HIGASHISHINAGAWA

58 COMFORIA SHINKAWA
88 COMFORIA MINAMISUNAMACHI

87 COMFORIA KINSHICHO

82 COMFORIA KOMABA

75 COMFORIA HIGASHIIKEBUKURO EAST

65 COMFORIA MORISHITA

63 COMFORIA KASUGATOMISAKA

Sub-central Tokyo
97 COMFORIA SHINAGAWA EAST

1491 COMFORIA YOGA

15

Portfolio List

Basic Policies

41 COMFORIA HIGASHIIKEBUKURO WEST

52 COMFORIA RYOGOKU SOUTH

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

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

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

38 COMFORIA MISYUKU6COMFORIA ASAKUSAMATSUGAYA

5

COMFORIA BUNKYOKASUGACOMFORIA knows
how valuable time is.

COMFORIA knows
what high quality
feels like.

COMFORIA knows
where peace of mind
comes from.

COMFORIA knows
how residents feel.

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

TOKYU LAND CORPORATION
Comprehensive real estate developer
Sponsor support agreement

Other major cities

Tokyo metropolitan area

● Information on the sale of properties

Tokyu Housing Lease Corporation
Property management/Tenant leasing

42 COMFORIA YOKOHAMAKANNAI

47 COMFORIA YATSUKA

54 COMFORIA SHIN-OSAKA

Support agreement● Warehousing● Advisory

TOKYU LIVABLE, INC.
Comprehensive real estate marketingintermediary and brokerage of land and buildings● Human resources/Expertise● Information on the sale of properties

Support agreement● Considering becoming tenants● Market information● Information on the sale of properties● Market information

Property management agreement

TOKYU COMMUNITY CORP.
Management of condominiums and buildings

TLC REIT Management Inc.

EWEL, Inc.
Welfare service agency businessSupport agreement

Support agreement● Information on the sale of properties● Information on the● Considering becoming tenants● Market information

TOKYU E-LIFE DESIGN Inc.
Management and operation ofsenior housing and nursing homes
Support agreement● Market information

16

TOKYU SPORTS OASIS, Inc.
Management, planning and operation of
a comprehensive fitness club based on
private membershipwelfare services forresidential tenants

Support agreement● Providing information and making proposals

concerning services, etc. for tenants ofrental residences.

17

Overview of the Investment Corporation andAsset Management Company■■ Overview of the Investment Corporation (As of April 1, 2017)
Name of the investment
Comforia Residential REIT, Inc
corporation
Representative
Takehiro Izawa, Executive Director
Address
1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo 107-0062, Japan

Inquiries

TLC REIT Management, Inc.
Tel: +81-3-3401-1090

Fiscal period-end

January 31 and July 31 of each year

History
June 8, 2010
June 30, 2010
February 6, 2013

Registration of incorporation, and foundation under Article 166 of the Act on Investment Trusts and Investment Corporations
Implementation of registration by the prime minister under Article 187 of the Act on Investment Trusts and Investment Corporations(registration number: Director of Kanto Finance Bureau No. 71)
Listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange

Structure
The Investment Corporation

Sponsor

2

TOKYU LAND CORPORATION

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

5
Asset Management Company

1

Comforia Residential REIT, Inc

TLC REIT Management Inc.

6

TOKYU LIVABLE, INC.
TOKYU COMMUNITY CORP.
Tokyu Housing Lease Corporation
TOKYU E-LIFE DESIGN Inc.
EWEL, Inc.
TOKYU SPORTS OASIS, Inc.

General Administration (accounting, etc.)
Heiseikaikeisha Tax Corporation

Board of Directors

Supporting Company

3

Unitholders’ Meeting

4

Executive Director: Takehiro Izawa
Supervisory Director: Yoshihiro Kataoka
Supervisory Director: Koji Yamamoto
Auditor

General Administration (corporation bond)
Sumitomo Mitsui Trust Bank, Limited

1 Asset management agreement
2 Asset custody agreement,

4

Administrative service agreement,
Transfer agency agreement
3 Accounting service agreement

Ernst & Young ShinNihon LLC

Fiscal, issuing andpayment agency agreement

5 Sponsor support agreement
6 Support agreement■■ Overview of the Asset Management Company (As of April 1, 2017)
In order to foster sophisticated asset management operations and expand opportunities for acquiring properties withan aim to enhance unitholder value, the Asset Management Company conducted, on April 1, 2017, an absorption-typemerger with TLC Comforia Investment Management INC. as the surviving company and TLC Activia Investment Management Inc. as the absorbed company. It also conducted an absorption-type split with Tokyu Land Capital Management
Inc. as the absorption-split company and TLC Comforia Investment Management INC. as the absorption-type split succeeding company, and changed the trade name of TLC Comforia Investment Management INC. to TLC REIT Management, Inc.
Trade name

TLC REIT Management, Inc.
Hiroyuki Tomata,Representative
President & CEO
1-1 Minami-Aoyama 1-chome,
Address
Minato-ku, Tokyo 107-0062, Japan
Established
October 2009
Capital¥200 million

Shareholder

Tokyu Land Corporation 100%

Financial Instruments Business Firm, granted by the Director of the Kanto
Regional Finance Bureau (Financial Instruments) Registration No. 2370
Registrations/ Discretionary Transaction Agent granted by the Minister of Land,
Licenses
Infrastructure, Transport and Tourism, Registration No. 65
Building Lots and Building Transactions Business License, granted by theGovernor of Tokyo (2) No. 91139

Overview of organization
Shareholders’ Meeting
Corporate Auditor
Board of Directors
Compliance Committee

Investment Committee
President & CEO

Acquisition Priority Review Meeting
Compliance Dept.

Internal Audit Dept.

Activia
Management Div.
Corporate Planning &Administration Dept.

18

Finance &Accounting Dept.

Asset Investment
Dept.

Strategic
Mgt. Dept.

Asset
Mgt. Dept.

Comforia
Management Div.
Strategic
Mgt. Dept.

Asset
Mgt. Dept.

Broadia
Management Div.
Strategic
Mgt. Dept.

Asset
Mgt. Dept.

19

Ⅰ
Ⅰ. Asset Management Report
I. Asset Management Report

Overview
Asset Management
Overviewof Assetof
Management
1. Performance of the Investment Corporation

Asset Management Report for the 13th Fiscal Period(Semi-Annual Report)

From August 1, 2016 to January 31, 2017

[4,942][4,957][6,531][6,674](millions of yen)

[1,519][1,919][1,902][3,196][3,249](millions of yen)

1,730

2,087

2,148

2,312

2,341

(millions of yen)

4,103
1,971
2,131
1,729

4,952

5,050

2,416

2,446

2,535

2,603

2,086

2,147

6,531
3,785
2,746
2,304

6,674
3,885
2,788
2,335

132,857

158,962

159,245

179,944

183,902

Net assets(millions of yen)

58,62977,31077,36985,13985,171

Unitholders’ capital(millions of yen)

56,90075,22475,22482,74382,743

Net assets per unit

(yen)

(%)

[Period-on-period change](%)

Number of investment units issued
Total distributions

Distribution per unit

[Earnings distribution per unit][Distribution in excess of earnings
per unit]
Return on assets(Note 1)Return on unitholders’ equity(Note 2)Unitholders’ equity ratio(Note 3)

[Period-on-period change]
Interest-bearing debt ratio
Payout ratio(Note 4)(Note 5)

Number of properties

Depreciation

Capital expenditure
NOI(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)[31.9][0.1][13.0][10.0]

[2.2]
[0.0]

473,804

513,504

513,504(millions of yen)

1,729

2,086

2,055

2,304

2,335

145,610

4,296

163,169

163,295

4,403

4,339

165,801

4,487

165,863

4,549

(yen)

[4,296][4,403][4,339][4,487][4,549]

(yen)

[–]

[–]

[–]

[–]

[– ]

(%)

1.3

1.4

1.4

1.4

1.3

(%)

44.1

48.6

48.6

47.3

46.3

(%)

3.0

[–2.5]

3.1

2.8

[4.5]

[–0.0]

2.8[–1.3]

2.7[–1.0](millions of yen)

71,97078,99079,27091,06094,970

(%)

99.9

99.9

95.7

99.9

100.0

(%)

(m2)
(%)

(millions of yen)(millions of yen)

(Note 6)[0.2]

473,804(properties)

Occupancy rate at end of period[0.0][19.6]

402,648(%)

Interest-bearing debt

[5.6]

(units)(yen)

Total leasable area

-1-

[4,099](millions of yen)

[Period-on-period change]

20(millions of yen)(millions of yen)

Total assets

Asset Management Report
Comforia Residential REIT, Inc
Financial Section
1-1
Minami-Aoyama
1-chome, Minato-ku,
Balance SheetsTokyo
107-0062, Japan
Statements of Income
Statements of Changes in Unitholders’ Equity
Statements of Cash Distributions
Statements of Cash Flows
Notes
Supplementary Schedules
Independent Auditor’s Report

From
Aug. 1, 2016 toJan. 31, 2017

(millions of yen)

Profit13th
Fiscal Period

FromFeb. 1, 2016 toJul. 31, 2016

Operating expenses

Ordinary income

12th
Fiscal Period

FromAug. 1, 2015 toJan. 31, 2016

(millions of yen)

Operating income

11th
Fiscal Period

FromFeb. 1, 2015 toJul. 31, 2015

Operating revenue[Expenses related to rent business]

10th
Fiscal Period

FromAug. 1, 2014 toJan. 31, 2015

Business period[Rent revenue - real estate]

II.
III.

9th
Fiscal Period

Fiscal period(millions of yen)

54.2
82

49.7

94

49.8

94

50.6

98

51.6
101

181,571.53

214,620.36

217,652.64

272,172.73

278,745.27

681

816

821

1,017

1,049

3,875

4,352

4,474

95.2

95

3,262

95.5

52

3,839

Ordinary income ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100
Profit ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100
Net assets at end of period ÷ Total assets at end of period × 100
Interest-bearing debt at end of period ÷ Total assets at end of period × 100
Total distributions ÷ Profit × 100
Payout ratio is rounded down to the first decimal place.
Real estate rental revenue and expenses + Depreciation

-2-

96.2

52

96.3
131

96.5
112

21

Overview of Asset Management
2. Asset Management Status for the 13th Fiscal Period

3. Capital Increases(1) History of the Investment Corporation
Comforia Residential REIT, Inc (the “Investment Corporation”) was established on June 8, 2010 as an investment
corporation that invests mainly in residential properties in accordance with the “Act on Investment Trusts and Investment
Corporations” of Japan (Act No. 198 of 1951, as revised; hereinafter referred to as the “Investment Trusts Act”), withregistration by the Prime Minister completed as of June 30, 2010 under Article 187 of the Investment Trusts Act (registration
number: Director of Kanto Finance Bureau No. 71). Investments by the Investment Corporation commenced in August 2010.
The Investment Corporation issued new investment units (18,691 units) through a public offering on February 6, 2013 andwas listed on the real estate investment trust market of the Tokyo Stock Exchange, Inc. (securities code: 3282).
Managed assets of the Investment Corporation at the commencement of operations totaled 11 properties, acquired for a
total of ¥15,508 million. As a result of additional acquisition and sale of properties under the basic policy of asset
management (to manage assets with the aim of achieving stable earnings and ensuring the steady growth of our managed
assets based on medium- and long-term perspectives to maximize our unitholders’ value) stipulated in the regulations of theInvestment Corporation, the portfolio owned as of the end of the 13th Fiscal Period includes 101 properties, acquired for a
total of ¥168,046 million.
(2) Investment performance(i) Investment environment
During the 13th Fiscal Period, the Japanese economy remained on a modest recovery trend amid improvements in theemployment and income environment. Under these circumstances, the residential rental market has maintained highoccupancy rates, with unit rent roughly unchanged across the board. In the real estate investment market, the level oftransaction prices remain stable at a high price range amid an ongoing low interest rate environment resulting from thefiscal policies of the government and monetary policies of the Bank of Japan (BOJ).
(ii) Acquisition of assets
During the 13th Fiscal Period, the Investment Corporation acquired a total of three properties, COMFORIA SAPPOROSHOKUBUTSUEN (acquired in August 2016), COMFORIA OGIMACHI (acquired in September 2016) and
COMFORIA ICHIGAYAYAKUOJI (acquired in December 2016). As a result, assets owned by the Investment
Corporation as of the end of the 13th Fiscal Period totaled 101 properties, acquired for a total of ¥168,046 million.
(iii) Operation management of assets owned by the Investment Corporation
The Investment Corporation consigns property management operations mainly to Tokyu Housing Lease Corporation,
which has an extensive track record in managing the “Comforia” series of properties. Under the “Comforia” series, theInvestment Corporation promotes unified management and strives to improve operational efficiency and shorten periodsof vacancy.
(3) Overview of funding
During the 13th Fiscal Period, the Investment Corporation borrowed funds (¥8,140 million) to be appropriated for theacquisition of COMFORIA SAPPORO SHOKUBUTSUEN in August 2016 and for the repayment of borrowings (¥6,770
million) undertaken in February 2016 and June 2016. Subsequently, additional borrowings of funds were undertaken toacquire COMFORIA OGIMACHI (¥1,550 million) and COMFORIA ICHIGAYAYAKUOJI (¥990 million) in September
2016 and December 2016, respectively. In addition, the Investment Corporation borrowed funds (¥5,500 million) in January
2017 to repay existing borrowings that had reached their due date (¥5,500 million). As a result, unitholders’ capital as of theend of the 13th Fiscal Period (January 31, 2017) was ¥82,743 million, interest-bearing debt was ¥94,970 million, the ratio ofinterest-bearing debt to total assets (LTV) was 51.6%, the average maturity of interest-bearing debt was 4.3 years, the ratio of
long-term debt was 90.7%, and the fixed rate ratio was 84.2%.
The Investment Corporation obtained the following rating as of the end of the 13th Fiscal Period.
Name of credit rating agency

Japan Credit Rating Agency, Ltd. (JCR)

RatingAA–

Outlook
Stable(4) Overview of performance and distributions
As a result of investment during the 13th Fiscal Period, the Investment Corporation posted operating revenue of ¥6,674
million, operating income of ¥2,788 million, ordinary income of ¥2,341 million, and profit of ¥2,335 million.
The Investment Corporation carried out distributions so that the Special Provisions for Taxation on Investment
Corporations (Article 67-15 of the Act on Special Measures Concerning Taxation [Act No. 26 of 1957, as revised; hereinafterreferred to as the “Act on Special Measures Concerning Taxation”]) would be applied by distributing almost all
unappropriated retained earnings. As a result, the distribution per unit (DPU) was ¥4,549 for the period.

22

-3-

Date
June 8, 2010
August 30, 2010
March 18, 2011
February 2, 2012
February 5, 2013
February 3, 2014
February 26, 2014
August 1, 2014
February 2, 2015
February 27, 2015
February 1, 2016
February 26, 2016
(Note 1)
(Note 2)
(Note 3)

Number of investment units
issued (units)Type
Establishment throughprivate placement

Change100100(Note 1)

7,800

8,000

3,900

4,000

(Note 2)

24,27032,27011,84015,840(Note 3)

16,40048,6708,200

24,040(Note 4)

18,691

67,361

9,935

33,975(Note 5)31,90099,261

21,96055,936(Note 6)

1,401

100,662964

56,900(Note 7)

301,986

402,648–

56,900(Note 8)70,000472,648

18,02574,926(Note 9)1,156

473,804297

75,224(Note 10)37,800511,604

7,159

82,383(Note 11)

1,900

513,504359

82,743(Note 12)

Capital increase throughprivate placement
Capital increase throughpublic offering
Capital increase throughpublic offering

Capital increase throughpublic offering

Remarks

Balance200

Capital increase throughprivate placement

Investment unit split

Change200

Capital increase throughprivate placement

Capital increase throughthird-party allotment

BalanceUnitholders’ capital(millions of yen)

Capital increase throughthird-party allotment

Capital increase throughpublic offering
Capital increase throughthird-party allotment

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

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

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

Highest¥283,700¥266,300¥242,500¥250,900¥262,500

Closing month/year
LowestJan. 2015¥186,900

Jul. 2015¥232,600

Jan. 2016¥189,600-4-

Jul. 2016¥206,900

Jan. 2017¥231,600

23

Overview of Asset Management
4. Performance of Distributions
DPU for the 13th Fiscal Period was ¥4,549. The Investment Corporation has decided to distribute almost all unappropriatedretained earnings with the intent of including the maximum amount of earnings distributions in deductible expenses by applying
special measures concerning taxation (Article 67-15 of the Act on Special Measures Concerning Taxation).
Fiscal periodBusiness period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

From Aug. 1, 2014
to Jan. 31, 2015

From Feb. 1, 2015
to Jul. 31, 2015

From Aug. 1, 2015
to Jan. 31, 2016

From Feb. 1, 2016
to Jul. 31, 2016¥160 thousand¥255 thousand¥92,251 thousand¥193 thousand[¥4,296][¥4,403][¥4,339][¥4,487]

13th Fiscal Period

From Aug. 1, 2016
to Jan. 31, 2017

Unappropriated retained earnings¥1,729,936 thousand ¥2,086,414 thousand ¥2,148,086 thousand ¥2,304,285 thousand¥2,336,057 thousand

Total distributions¥1,729,775 thousand ¥2,086,159 thousand ¥2,055,835 thousand ¥2,304,092 thousand¥2,335,929 thousand

Of which, total earnings
distributions¥1,729,775 thousand ¥2,086,159 thousand ¥2,055,835 thousand ¥2,304,092 thousand¥2,335,929 thousand

Retained earnings[Distribution per unit][Earnings distribution per unit]¥127 thousand[¥4,549][¥4,296][¥4,403][¥4,339][¥4,487][¥4,549]¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Return on unitholders’ capital per
unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

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

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of which, total return on
unitholders’ capital(2) Internal growth strategy
With the aim of maximizing portfolio value and cash flows from individual properties from a medium- to long-term
perspective and to make the most of the experience and comprehensive strength of the Tokyu Fudosan Holdings Group inproperty management, we will consign property management operations mainly to Tokyu Fudosan Holdings Group
companies, which have extensive experience in the management of J-REIT and the “Comforia” series. In addition, we will
strive for efficient management by examining the adequacy of building management specifications and costs.
Furthermore, we will actively utilize the expertise of Tokyu Fudosan Holdings Group in asset and fund management toachieve higher-quality overall management of the Investment Corporation.
In the 14th Fiscal Period and onwards, we will continue to aim to maintain and improve occupancy rates by closely
monitoring the property management situation, as we did in the 13th Fiscal Period.
(3) Financial strategy
In consideration of addressing future interest rate risk and refinance risk, we will carry out funding activities by paying
attention to financial soundness and earnings stability. With regard to debt, we will efficiently combine short-term fundingthat focuses on agility with long-term stable funding. Furthermore, we will consider the issuance of new investment units inaccordance with financing needs for property acquisition and the financial situation of the Investment Corporation, while
paying attention to the market development and distribution level, with the upper limit of the ratio of interest-bearing debt tototal assets (LTV) at around 60%.

6. Significant Scheduled Events
Issuance of new investment units
The Investment Corporation made a resolution concerning the issuance of new investment units at the Board of Directors’
meetings held on January 5, 2017 and January 18, 2017, with the payments from the issuance of new investment units by
public offering completed on February 1, 2017, and the payments from the issuance of new investment units throughthird-party allotment completed on February 22, 2017 as follows. As a result, unitholders’ capital totaled ¥94,557,898,532,
with 563,694 investment units issued as of February 22, 2017.
Issuance of new investment units through public offering

Of the total return on unitholders’capital, the total distribution
payments from investments andother decreased distribution under
the tax laws¥– thousand[Of the total return on unitholders’capital per unit, the distribution
payments from investments andother decreased distribution under
the tax laws][¥–]¥– thousand¥– thousand¥– thousand¥– thousand

Number of investment units offered
Issue price (offer price)

47,800 units¥243,252 per unit

Total paid-in amount (issue value)
Payment date

¥11,251,785,400
February 1, 2017

Total issue amount (offer price)
Paid-in amount (issue value)
[¥–]

[¥–]

[¥–]

[¥–]

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

¥11,627,445,600¥235,393 per unit

Issuance of new investment units through third-party allotment

5. Future Investment Policy and Issues to Address
Based on our basic policies of investment management, the Investment Corporation acquired three assets during the 13th Fiscal
Period, and has carried out investment and management based on the concept and expertise incorporated into the urban residential
rental “Comforia” series, which Tokyu Land Corporation (hereinafter referred to as “Tokyu Land”) has been producing. Goingforward, we aim to achieve medium- to long-term growth by continuing to carry out investment and management based on ourbasic policies.

Number of investment units offered
Paid-in amount (issue value)

2,390 units¥235,393 per unit

AllotteeMizuho Securities Co., Ltd.

Total paid-in amount (issue value)
Payment date

¥562,589,270
February 22, 2017

(1) External growth strategy
The Investment Corporation aims to acquire higher-quality assets and expand its asset size, utilizing the support of the Tokyu
Fudosan Holdings Group, primarily the sponsor support of Tokyu Land, and original information from TLC REITManagement Inc., its asset management company (hereinafter referred to as the “Asset Management Company” (Note)).
Specifically, we will acquire properties developed by our sponsor, Tokyu Land, using the sponsor support agreement theAsset Management Company entered into with Tokyu Land, and continuously and steadily acquire quality residential
properties that are under stable operation. In addition, we intend to utilize real estate brokerage capabilities through the vast
information network of Tokyu Fudosan Holdings Group companies, who are not our sponsors, to acquire quality residential
properties, achieve stable operation and enhance profitability. Based on this perspective, the Asset Management Company
has entered into a support agreement with each of the six support companies of the Tokyu Fudosan Holdings Group
companies (Tokyu Livable, Inc., Tokyu Community Corp., Tokyu Housing Lease Corporation, Tokyu E-Life Design Inc.,
Ewel, Inc., and Tokyu Sports Oasis, Inc.) for managed assets of the Investment Corporation.
(Note) The Asset Management Company concluded an absorption-type merger with TLC Activia Investment Management Inc. with the AssetManagement Company as the surviving company (hereinafter referred to as the “Merger”) on April 1, 2017 and succeeded part of Tokyu Land
Capital Management Inc. and its business through an absorption-type split (hereinafter referred to as the “Corporation Split” and altogether
with the Merger, the “Reorganization”). Furthermore, the Asset Management Company changed its trade name to TLC REIT Management Inc.
in line with the Reorganization on April 1, 2017.

24

-5-

-6-

25

Overview of Asset Management(ii) Uncommitted Line of Credit
The Investment Corporation has entered into an uncommitted line of credit on February 9, 2017, to prepare for cases
where funding becomes necessary such as when purchasing investment assets in the future.

   (Reference)(1) Acquisition of property

The Investment Corporation acquired the following properties on February 2, 2017.
Acquisition price

Property name

Type of asset

Location

COMFORIA AKIHABARA EAST

Property in trust

Chiyoda-ku, Tokyo

COMFORIA MITA TROIS

Property in trust

COMFORIA BUNKYOHAKUSANCOMFORIA KAMATA
COLLEGE COURTHACHIMANYAMA(thousands of yen)
(Note)

Main usage

4,425,000

Apartment building

Minato-ku, Tokyo

890,000

Apartment building

Property in trust

Bunkyo-ku, Tokyo

1,330,000

Apartment building

Property in trust

Ota-ku, Tokyo

5,721,000

Apartment building

Property in trust

Suginami-ku, Tokyo

1,245,000

Dormitory

1,980,000

Apartment building

1,567,000

Apartment building

1,289,000

Apartment building

COMFORIA SHINSAIBASHI EAST

Property in trust

COMFORIA KYOMACHIBORI

Property in trust

COMFORIA AWAZA

Property in trust

Chuo-ku, Osaka-shi,
Osaka
Nishi-ku, Osaka-shi,
Osaka
Nishi-ku, Osaka-shi,
Osaka(Note) “Acquisition price” does not include acquisition expenses, fixed property tax, city planning tax, consumption tax and local consumption tax.

LenderLoan amount(millions of yen)Interest

Drawdown date

Repayment dateFebruary 2, 2017

February 28, 2018

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Long-term The Bank of Tokyo-Mitsubishi UFJ, Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

Mitsubishi UFJ Trust and Banking
Corporation

2,000

Base rate (Note)+0.200%Less than one
year fromdrawdown dateassets, to repay existing

Bulletrepayment

borrowings andinvestment corporation

bonds, and cover relatedUnsecured,

Unguaranteed

expenses(3) Relocation of Headquarters of Investment Corporation
The Investment Corporation decided at its Board of Directors’ meeting held on March 10, 2017 and relocated its
headquarters as follows.
New Address of Headquarters of Investment Corporation(4) Change of Executive Director
On March 10, 2017, the Investment Corporation received from Executive Director Hiroyuki Tomata, notification of
resignation as of March 31, 2017, and it was decided that Substitute Executive Director Takehiro Izawa will be appointed
as the new Executive Director on April 1, 2017. The New Executive Director’s career summary is as follows.
Name(Date of Birth)

Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,190

0.62938%

February 2, 2017

January 31, 2024

Mitsubishi UFJ Trust and Banking
Corporation

Takehiro Izawa

Sumitomo Mitsui Banking Corporation(Apr. 1, 1968)

Development Bank of Japan Inc.
Mizuho Bank, Ltd.

loans

9,000

Sumitomo Mitsui Banking Corporation

Mizuho Bank, Ltd.

Long-term

CollateralTo purchase additional

Sumitomo Mitsui Trust Bank, Limited

Development Bank of Japan Inc.

loans

Usage

methodMizuho Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Long-term(millions of yen)

Repayment

Relocation date
April 1, 2017

The Investment Corporation obtained the following loans on February 2, 2017.

loans

borrowing limit Repayment date

1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo(2) Loans(i) Term Loans

Type

Amount ofCounterparties

Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,000

0.79571%

February 2, 2017

January 30, 2026

Mitsubishi UFJ Trust and Banking
Corporation

Career Summary
Apr. 1991

Tokyu Land Corporation

Apr. 2004

Manager of the Asset Utilization Business Division

Oct. 2008

Seconded to Tokyu Real Estate Investment Management Inc.

Mar. 2012

Deputy General Manager of Portfolio Management Div.Ⅰ

Apr. 2012

Seconded to Tokyu Land Capital Management Inc. General
Manager of Portfolio Management Department Ⅲ

Apr. 2013

Manager of Office Building Development Division, Tokyu Land
Corporation

Sep. 2013

Seconded to TLC Comforia Investment Management INC. (present
TLC REIT Management, Inc.), General Manager of Investment
Operation Department

Apr. 2016

Director, General Manager of Investment Operation Department

Apr. 2017

Executive Director, Chief Division Officer of Comforia
Management Division, TLC REIT Management Inc. (current
position)
Executive Director, Comforia Residential REIT, Inc. (current
position)

Sumitomo Mitsui Banking Corporation(Note) The base rate that is applied to interest paid on the interest payment date is the JBA 1-month JPY TIBOR as of two business days prior to theinterest payment date immediately before each interest payment date.

26

-7-

-8-

27

Overview of the Investment Corporation

Overview of the Investment Corporation
1. Unitholders’ Capital

9th Fiscal
PeriodUnitholders’ capital

Number of unitholders

11th Fiscal
Period12th Fiscal
Period13th Fiscal
PeriodAs ofJan. 31, 2015

As ofJul. 31, 2015

As ofJan. 31, 2016

As ofJul. 31, 2016

As ofJan. 31, 2017

(units)8,000,000

8,000,000

8,000,000

8,000,000

8,000,000(units)402,648

473,804

473,804

513,504

513,504(millions of yen)

56,90075,22475,22482,74382,743

Total number of authorized
investment units

Total number of investment
units issued

10th Fiscal
Period(people)

5,254

8,148

7,530

7,749

6,834

2. Matters concerning Investment Units
Major unitholders as of January 31, 2017 are as follows.
NameJapan Trustee Services Bank, Ltd. (trust account)

Number of investment units
owned (units)

174,905

Tokyu Land Corporation

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

34.06

51,664

Trust & Custody Services Bank, Ltd.
(securities trust investment account)

10.06

40,0687.80

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

36,664

7.13

Trust & Custody Services Bank, Ltd.
(taxable trust money account)

9,825

1.91

8,600

1.67

5,668

1.10

4,279

0.83

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

18,298The Asahi Fire And Marine Insurance Company Limited
Mitsubishi UFJ Trust and Banking Corporation(Standing proxy: The Master Trust Bank of Japan, Ltd.)
Nippon Tosho Fukyu Co., LTD.

STATE STREET BANK AND TRUST COMPANY 505012(Standing proxy: The Hongkong and Shanghai Banking
Corporation, Tokyo Branch)(Note)

Total

3.56

4,067

0.79

354,038

68.94

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

(2) Policy for decisions on dismissal or non-reappointment of Accounting Auditor
The Board of Directors shall, with the consent of all its members, dismiss the Accounting Auditor if it is deemed that it falls
under any of the grounds set forth in each item of Paragraph 1 of Article 105 of the Investment Trusts Act, and when it isdetermined that there is no hope for improvement.
In addition, when it is determined that the Accounting Auditor is not fit for its role, upon comprehensive examination of
its execution of duties as the Accounting Auditor and other various circumstances, the Board of Directors shall dismiss or not
reappoint said Accounting Auditor with the consent of all of its members, and forward a proposal for the appointment of a
new Accounting Auditor to the unitholders’ meeting.
(3) Disposition of suspension of services that the Accounting Auditor has been subject to in the past two years
Details of the disciplinary action announced by the Financial Services Agency on December 22, 2015:(i) Subject of the action
Ernst & Young ShinNihon LLC(ii) Description of the action– Three-month suspension from accepting new engagements(From January 1, 2016 to March 31, 2016)– Order to improve operations (improvement of the audit management system)
Note: In addition, an order for payment of a surcharge of approximately ¥2.1 billion was decided on January 22,2016.
(iii) Reason for the action– Seven certified accountants from Ernst & Young ShinNihon LLC (hereinafter referred to as the “Auditor”) had, in
negligence of due care, attested the financial statements of TOSHIBA CORPORATION for fiscal 2009, fiscal 2011
and fiscal 2012 (for years that ended March 31, 2010, 2012 and 2013) containing material misstatements as though
no material misstatements were present.
– The Auditor’s operations were deemed significantly inappropriate

4. Asset Management Company, Asset Custodian and General Administration
The asset management company, asset custodian and general administration as of January 31, 2017 are as follows.
Consignment segment

Name

Asset management company

TLC Comforia Investment Management INC.

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

Asset custodian

General administration (accounting service)

General administration (administrative service)

General administration (corporation bond service)

Mitsubishi UFJ Trust and Banking Corporation
Heiseikaikeisha Tax Corporation

Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

3. Matters concerning Directors, etc.
(1) Name of directors, etc.
The names of directors, etc. during the 13th Fiscal Period are as follows.
Position

Name of director, etc.

Executive
Director

Hiroyuki Tomata

Supervisory
Director

Yoshihiro Kataoka

Supervisory
Director

Koji Yamamoto

Accounting
AuditorErnst & Young
ShinNihon LLC(Note)

Main concurrent posts
President & CEO, TLC Comforia Investment
Management INC.
Operating Officer, Tokyu Land Corporation

Head of Kataoka & Kobayashi
Outside Audit & Supervisory Board Member,
The Higo Bank, Ltd.

Total amount of remuneration
paid during the period(thousands of yen)–
1,800

Partner, Shiki-Sogo Law and Accounting Office
Supervisory Officer, Toshi Saisei Fund Investment
Corporation

1,800

–

13,194

None of the Executive Director or Supervisory Directors own investment units in the Investment Corporation, either in their own name or insomeone else’s name. Furthermore, although Supervisory Directors may be officers of a corporation other than those mentioned above,neither one has an interest in the Investment Corporation.

-9-

28

- 10 -

29

Status of Managed Assets of the Investment Corporation

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

12th Fiscal Period(as of July 31, 2016)

Area

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

Sub-central TokyoReal
estate3,205

Other major cities

Properties Sub-central Tokyo
in trust
Tokyo metropolitan area
Other major cities

The overview of assets under management of the Investment Corporation as of January 31, 2017 is as follows.

13th Fiscal Period(as of January 31, 2017)

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

3,215

0.6

Percentage of total
assets (%) (Note 2)

1,058

40.7

COMFORIA WASEDA

147 Bentencho, Shinjuku-ku, Tokyo

4.2

COMFORIA SHIMOOCHIAI

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

7.8

COMFORIA HIGASHINAKANO

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

COMFORIA GINZA EAST

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

COMFORIA AZABUDAI

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

COMFORIA SHIBAKOEN

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

COMFORIA NISHIAZABU

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

COMFORIA MINAMIAOYAMA

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

COMFORIA MINAMIAOYAMA
DEUX

4-2-1 Minami-Aoyama, Minato-ku, Tokyo

COMFORIA NISHIWASEDA

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

COMFORIA HARAJYUKU

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

COMFORIA MITA NORTH

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

COMFORIA SHIBAURABOWHOUSE

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

COMFORIASHIROKANETAKANAWA

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

COMFORIA NIHONBASHININGYOCHO EAST

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

COMFORIA ATAGO

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

COMFORIA KUDAN

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

COMFORIA NIHONBASHININGYOCHO NORTH

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

COMFORIA SHINKAWA

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

COMFORIA AKASAKA

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

COMFORIA MITA EAST

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

3,708

2.1

3,686

2.0

7,682

166,535

92.5

169,546

92.2

179,944100.0

183,902100.0

13,4087.5

14,355“Total amount owned” shows the amount posted on the balance sheets as of the closing of accounts (the book value after depreciation for real estateand properties in trust).
The sum may not total 100.0% since figures are rounded to the first decimal place.

2. Major Assets Owned
The overview of major assets owned by the Investment Corporation (top 10 properties in terms of term-end book value)is as follows.

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

Book value(millions of yen)

Rentable area(m2)

Rented area
(m2)

COMFORIA SHINJUKUEASTSIDE TOWER

14,05848,267.60

45,974.24

95.2

21.4

COMFORIA KOMABA

5,235

5,342.38

5,290.33

99.0

2.0

COMFORIA
MINAMISUNAMACHI

4,749

6,141.98

5,769.02

93.9

2.0

4,293

4,970.25

4,785.09

96.3

2.0 Residence

3,892

6,966.04

6,754.00

97.0

COMFORIA KITASANDOCOMFORIA
ITABASHINAKAJUKUApartment
building
Apartment
building
Apartment
building

Apartment
1.8
building

COMFORIAHIGASHIIKEBUKURO WEST

3,815

COMFORIA HARAJYUKU

3,552

4,528.51

4,371.64

96.5

Apartment
1.9
building

COMFORIA TAMACHI

3,432

4,251.63

4,197.85

98.7

1.5

COMFORIA MITA EAST

3,173

3,639.93

3,551.09

97.6

1.5

COMFORIA TOYOSU

3,049

4,127.00

4,027.42

97.6

1.5

49,253

94,671.46

91,005.00

96.1

37.8

Total

6,436.14

6,284.32

97.6

Apartment
2.4
building
Apartment
building
Apartment
building
Apartment
building

Central Tokyo

Property name

Ownership form

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)
(Note 1)

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

43.0

2.7

Address

COMFORIA NIHONBASHININGYOCHO

79,14574,758Property name

0.6

43.7
41.8

Area

1.7

78,566

4,813

Total assets(Note 2)

1.8

75,175

Deposits and other assets(Note 1)

Percentage of total
assets (%) (Note 2)

1,065

Central Tokyo

Subtotal

3. Statement of Properties Incorporated in the Portfolio

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

2,080

1,565

2,430

1,903

1,490

1,128

667

558

3,910

2,955

742

563

1,660

1,352

898

738

1,440

1,039

374

247

2,010

1,633

4,440

3,552

1,030

869

3,160

2,609

1,580

1,328

2,480

2,112

918

826

1,500

1,282

1,280

1,103

2,120

1,838

2,380

1,951

3,660

3,173

- 11 -

30- 12 -

31

Status of Managed Assets of the Investment Corporation
Area

Property name

Address

Ownership form

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

Property name

Address

Ownership form

(Note 1)

(Note 1)3-1-9 Kaigan, Minato-ku, Tokyo

COMFORIA KITASANDO

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

COMFORIA YOYOGIUEHARA

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

COMFORIA SASAZUKA

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

Central Tokyo

COMFORIA SHINJUKUGYOEN II 1-13-3 Shinjuku, Shinjuku-ku, Tokyo
COMFORIA
ICHIGAYAYANAGICHO

18-2 Ichigaya Yanagicho, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA

26-1 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA NIBANCHO

4-8 Nibancho, Chiyoda-ku, Tokyo

COMFORIA NISHISHINJUKU

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

COMFORIA KANDAJINBOCHO

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

COMFORIA NIHONBASHI

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

COMFORIA TAMACHI

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

COMFORIA AZABUJUBAN

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

COMFORIA SHINJUKUGYOEN I 1-10-4 Shinjuku, Shinjuku-ku, Tokyo
COMFORIA KAGURAZAKA
DEUX

7-3 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA AZABU EAST

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

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

COMFORIA ICHIGAYAYAKUOJI

74-23 Ichigayayakuojimachi, Shinjuku-ku, Tokyo
Subtotal

1,830

1,564

COMFORIA BUNKYOKASUGA

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

4,860

4,293

COMFORIAASAKUSAMATSUGAYA

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

1,770

1,561

COMFORIA NISHIOI

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

2,190

1,797

COMFORIA NAKANO

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

2,080

1,803

COMFORIA SHIMOKITAZAWA

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

1,880

1,619

COMFORIA NISHIKAMATA

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

842

735

COMFORIA OYAMA

4-4 Oyamacho, Itabashi-ku, Tokyo

1,800

1,641

COMFORIA
KIYOSUMISHIRAKAWA SOUTH

3-2-13 Miyoshi, Koto-ku, Tokyo

1,680

1,653

COMFORIA KOMAZAWA

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

1,550

1,504

COMFORIA KOISHIKAWA

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

2,150

1,993

COMFORIA SENGOKU

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

3,580

3,432

COMFORIA
DAIKANYAMAAOBADAI

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

1,620

1,499

COMFORIA IKEBUKURO

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

1,500

1,432

COMFORIA
RYOGOKUISHIWARA

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

1,340

1,272

COMFORIA ASAKUSABASHI
DEUX

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

2,670

1,946

COMFORIA OSHIAGE

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

COMFORIA
HONJOAZUMABASHI

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

COMFORIA
KIYOSUMISHIRAKAWA TROIS

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

Beneficial
interest in realestate trust

14,60014,058Beneficial
interest in realestate trust

970

1,001

91,161

79,145Sub-central Tokyo

COMFORIA SHIBAURA CANAL

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

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

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

COMFORIA MISYUKU

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

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

32

- 13 -

Appraisal value
Book value
at end of period(millions of yen)(millions of yen)
(Note 2)4-2-19 Higashi-Nakano, Nakano-ku, Tokyo- 14 -

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

2,000

1,412

1,220

861

1,010

894

988

881

3,200

2,463

2,100

1,484

2,260

1,979

892

711

1,610

1,250

665

535

1,660

1,208

1,290

934

671

580

779

631

1,010

869

819

713

868

760

987

855

2,960

2,595

1,510

1,199

2,360

1,835

1,440

1,134

1,040

818

33

Status of Managed Assets of the Investment Corporation
Area

Property name

Address

Ownership form

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

Property name

Address

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Real estate(Note 1)

34

COMFORIA RYOGOKU DEUX

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

COMFORIA OMORI DEUX

3-4-2 Omori Kita, Ota-ku, Tokyo

COMFORIA MACHIYA

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

COMFORIA ASAKUSABASHI

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

COMFORIA RYOGOKU SOUTH

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

COMFORIA TOYOSU

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

COMFORIA
SUMIDA-TACHIBANA

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

COMFORIA UENOHIROKOJI

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

COMFORIA KASUGATOMISAKA 1-11-18 Kasuga, Bunkyo-ku, Tokyo
COMFORIA HONKOMAGOME

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

COMFORIA MORISHITA

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

COMFORIA KIBAKOEN

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

COMFORIA MEGUROCHOJAMARU

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

COMFORIA NISHIMAGOME

2-35-8 Nishi-Magome, Ota-ku, Tokyo

COMFORIAHIGASHIIKEBUKURO EAST

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

COMFORIAHIGASHIIKEBUKURO

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

COMFORIA KOMABA

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

COMFORIA KINSHICHO

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

COMFORIA
MINAMISUNAMACHI

4-4-20 Minamisuna, Koto-ku, Tokyo- 15 -

5,190

3,815

COMFORIAHIGASHISHINAGAWA

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

1,250

1,032

COMFORIA MEGUROYAKUMO

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

1,380

1,209

COMFORIA YOGA

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

850

604

COMFORIA
ITABASHINAKAJUKU

62-2 Nakajuku, Itabashi-ku, Tokyo

3,410

2,643

COMFORIA SHINAGAWA EAST

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

1,580

1,225

COMFORIA OJIMACOMFORIA OMORI TROIS

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

COMFORIA KOMAE

3-9-5 Iwato Kita, Komae-shi, Tokyo

COMFORIA
YOKOHAMAKANNAI

2-8-15 Okinacho, Naka-ku, Yokohama-shi,
Kanagawa

3,640

3,049

1,040

964

1,230

1,052

3,340

2,907

1,590

1,338

1,750

1,520

1,100

951

2,420

1,994

1,100

993

2,230

1,714

1,300

1,130

5,280

5,235

1,130

1,071

4,870

4,749

Sub-central Tokyo

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

Tokyo metropolitan area

COMFORIAHIGASHIIKEBUKURO WEST

COMFORIA ICHIKAWAMYODEN 1-9-10 Shioyaki, Ichikawa-shi, Chiba
COMFORIA YATSUKA

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

COMFORIA SHINKOYASU

2-216-2 Koyasudori, Kanagawa-ku,
Yokohama-shi, Kanagawa

COMFORIA SHIN-OSAKA

1-21-24 Higashi-Nakajima,
Higashi-Yodogawa-ku, Osaka-shi, Osaka

COMFORIA SHINSAKAE

2-28-18 Shinsakae, Naka-ku, Nagoya-shi, Aichi

COMFORIA KITAHORIE

3-12-2 Kita-Horie, Nishi-ku, Osaka-shi, Osaka

COMFORIA KITASANJO

2-2-51 Kita-Sanjo Higashi, Chuo-ku,
Sapporo-shi, Hokkaido

COMFORIA SAPPOROSHOKUBUTSUEN

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

COMFORIA OGIMACHI

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

Subtotal

Other major cities

Sub-central Tokyo(Note 1)

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

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

(Note 1)

(Note 2)

Subtotal
Total

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

1,630

1,547

843

829

1,100

1,093

4,100

3,892

1,510

1,577

2,150

2,278

91,251

77,974

551

422

1,250

941

752

616

729

632

1,220

1,073

4,502

3,686

2,760

2,373

1,850

1,709

1,080

1,058

920

692

1,270

1,360

1,520

1,544

9,400

8,740

899

936

196,314
169,546“Appraisal value at end of period” indicates the appraisal value by a real estate appraiser (based on real estate appraisal reports or research reports
prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sōgō Appraisal Co., Ltd., Morii Appraisal &Investment Consulting, Inc. and Japan Valuers Co., Ltd., with the account closing date as the date of value estimate), pursuant to the method ofasset appraisal stipulated in the Articles of Incorporation of the Investment Corporation as well as the “Ordinance on Accountings of Investment
Corporations” (Cabinet Office Ordinance No. 47 of 2006).
“Book value” indicates the acquisition price (including miscellaneous expenses related to the acquisition) as of the end of the 13th Fiscal Period(January 31, 2017) minus accumulated depreciation, and does not include construction in progress or construction in progress in trust.

- 16 -

35

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

Area

Property nameSub-central Tokyo

Central Tokyo

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

36

COMFORIA HARAJYUKUCOMFORIA MITA NORTHCOMFORIA SHIBAURABOWHOUSECOMFORIASHIROKANETAKANAWACOMFORIA NIHONBASHININGYOCHO EASTCOMFORIA ATAGOCOMFORIA KUDANCOMFORIA NIHONBASHININGYOCHO NORTHCOMFORIA SHINKAWACOMFORIA AKASAKACOMFORIA MITA EASTCOMFORIA SHIBAURA CANALCOMFORIA KITASANDOCOMFORIA YOYOGIUEHARACOMFORIA SASAZUKACOMFORIA SHINJUKUGYOEN II
COMFORIA
ICHIGAYAYANAGICHOCOMFORIA KAGURAZAKACOMFORIA NIBANCHOCOMFORIA NISHISHINJUKUCOMFORIA KANDAJINBOCHOCOMFORIA NIHONBASHICOMFORIA TAMACHICOMFORIA AZABUJUBANCOMFORIA SHINJUKUGYOEN I
COMFORIA KAGURAZAKA
DEUXCOMFORIA AZABU EASTCOMFORIA SHINJUKUEASTSIDE TOWERCOMFORIA ICHIGAYAYAKUOJI
Subtotal
COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATACOMFORIA OYAMA

12th Fiscal Period(from February 1, 2016 to July 31, 2016)

13th Fiscal Period(from August 1, 2016 to January 31, 2017)

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

1

97.8

58,017

0.9

1

95.5

58,027

0.9

1
1
1
1
1
1
1
1

96.9
95.5
96.9
98.7
100.0
97.9
100.0
100.0

67,19245,47021,850113,622
22,65949,45625,23943,084

1.0
0.7
0.3
1.7
0.3
0.8
0.4
0.7

1

99.0

67,345

1.0

1

91.3

21,205

0.3

1

100.0

11,595

0.2

1

100.0

11,388

0.2

1

96.7

59,535

0.9

1

98.2

62,249

0.9

1

96.2

29,943

0.4

1
1

94.5
97.1

122,420
30,795

1.9
0.5

1

96.3

100,046

1.5

1

94.7

43,147

0.7

1

93.0

66,468

1
1

97.5
100.0

1

1
1

95.9
97.9

115,72298.4

49,720

1

100.0

1

91.3

1
1

1

47,49876.3

22,10826,12934,101

0.7
1.7
0.3
0.7
0.4
0.5

96.5

124,199

98.7

97,386

1.5

1

97.5

44,041

0.7

1.0

1

95.3

64,934

1.0

29,52040,488

0.5
0.6

1
1

97.5

28,7980.4

94.4

36,014

0.6

1

97.2

36,520

0.5

1
1
1
1
1
1
1
1

100.0
97.5
96.5
98.9
96.1
98.1
98.9
97.4

58,77459,56096,66753,665
134,171
50,76065,815
56,115

0.9
0.9
1.5
0.8
2.1
0.8
1.0
0.9

1

100.0

60,226

0.9

1

97.6

97,562

1.5

1

93.6

50,621

0.8

1

97.8

46,649

0.7

1
1
1
1
1
1
1
1

100.0
98.0
93.6
90.4
98.6
100.0
96.4
98.3

23,75649,71445,41042,11762,453
95,541
44,233
43,206

0.4
0.8
0.7
0.6
1.0
1.5
0.7
0.7

1

97.1

23,0120.3

91.7

45,605

0.7

1

100.0

40,926

0.6

1

100.0

1

98.8

70,240

1.1

1

96.6

70,881

1.1

1

94.4

1,402,125

21.5

1

95.2

1,425,036

21.4

-

-

-

-

1

84.0

6,102

0.1

1

98.3

2
1

96.1
98.2

3,532,505
58,489

54.1
0.9

1

98.6

45,041

0.7

1
1
1
1
1

98.3
93.4
95.9
98.2
96.5

31,28729,98392,90367,731
77,088

0.5
0.5
1.4
1.0
1.2

- 17 -

1

1
1
1
1
1
1

93.9

92.5
97.9

100.0

67,354

98.2
96.8

1

100.0

1

98.7

1
1

2

53,200135,908100.0

160,88996.3

1
1

39,678

95.7
98.2
94.8

50,34056,74550,70042,67761,781
97,95941,17742,46739,726

1.9

0.6

0.9
0.8
2.0
0.8
1.0
0.9

0.8
0.6
0.9
1.5
0.6
0.6
0.6

96.1

3,557,008

53.3

1

94.3

44,652

0.7

1

98.3

31,637

0.5

1

96.3

91,230

1.4

1
1
1

98.2
95.0
97.1

60,01530,506
66,11079,025

Area

0.9

0.5
1.0

Tokyo metropolitan area

12th Fiscal Period(from February 1, 2016 to July 31, 2016)

Property name

COMFORIA
KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWACOMFORIA KOISHIKAWACOMFORIA SENGOKUCOMFORIA
DAIKANYAMAAOBADAICOMFORIA IKEBUKUROCOMFORIA
RYOGOKUISHIWARA
COMFORIA ASAKUSABASHI
DEUX
COMFORIA OSHIAGE
COMFORIA
HONJOAZUMABASHICOMFORIA
KIYOSUMISHIRAKAWA TROISCOMFORIAMONZENNAKACHOCOMFORIA HIMONYACOMFORIA MISYUKUCOMFORIAGAKUGEIDAIGAKUCOMFORIA HIGASHINAKANODEUXCOMFORIAHIGASHIIKEBUKURO WEST
COMFORIA RYOGOKU DEUXCOMFORIA OMORI DEUXCOMFORIA MACHIYACOMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH
COMFORIA TOYOSUCOMFORIA
SUMIDA-TACHIBANACOMFORIA UENOHIROKOJI
COMFORIA
KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOENCOMFORIA MEGUROCHOJAMARUCOMFORIA NISHIMAGOMECOMFORIAHIGASHIIKEBUKURO EASTCOMFORIAHIGASHIIKEBUKUROCOMFORIA KOMABACOMFORIA KINSHICHOCOMFORIA
MINAMISUNAMACHICOMFORIAHIGASHISHINAGAWACOMFORIA MEGUROYAKUMOCOMFORIA YOGACOMFORIA
ITABASHINAKAJUKUCOMFORIA SHINAGAWA EASTCOMFORIA OJIMACOMFORIA OMORI TROIS
Subtotal

13th Fiscal Period(from August 1, 2016 to January 31, 2017)

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

1

95.6

28,848

0.4

1

97.8

27,833

0.4

1
1
1

97.9
95.2
96.3

41,79421,08652,990

0.6
0.3
0.8

1
1
1

97.6
100.0
95.4

42,98621,081
51,653

0.6
0.3
0.8

1

100.0

37,662

0.6

1

97.4

36,342

0.5

1

92.8

22,760

0.3

1

100.0

22,281

0.3

1

100.0

25,599

0.4

1

100.0

25,590

0.4

1

100.0

30,966

0.5

1

98.1

30,497

0.5

1

98.0

25,923

0.4

1

100.0

25,853

0.4

1

100.0

28,414

0.4

1

100.0

27,604

0.4

1

95.9

32,454

0.5

1

100.0

31,208

0.5

1

97.3

91,577

1.4

1

97.9

90,973

1.4

1
1

85.7
96.6

42,36765,346

0.6
1.0

1
1

100.0
100.0

41,54865,741

0.6
1.0

1

100.0

38,749

0.6

1

95.4

40,696

0.6

1

96.1

28,807

0.4

1

97.9

30,291

0.5

1

95.5

158,265

2.4

1

97.6

157,968

2.4

1
1
1
1
1
1

98.7
98.5
97.0
97.9
98.7
92.1

36,804
39,157
25,689100,574
48,694
99,952

0.6
0.6
0.4
1.5
0.7
1.5

1
1
1
1
1
1

98.7
91.3
100.0
97.9
94.5
97.6

36,961
39,16525,721
101,868
47,071
97,291

0.6
0.6
0.4
1.5
0.7
1.5

1

95.4

31,607

0.5

1

92.3

31,265

0.5

1

94.1

34,824

0.5

1

96.5

32,982

0.5

1

97.9

92,476

1.4

1

100.0

90,915

1.4

1
1
1

100.0
94.5
100.0

43,86450,16834,353

0.7
0.8
0.5

1
1
1

100.0
100.0
96.7

47,03849,45832,225

0.7
0.7
0.5

1

96.1

72,861

1.1

1

90.4

70,853

1.1

1

96.3

32,222

0.5

1

93.8

30,889

0.5

1

98.9

69,571

1.1

1

95.4

67,852

1.0

1

100.0

35,742

0.5

1

100.0

38,003

0.6

1
1

99.0
100.0

132,245
36,843

2.0
0.6

1
1

99.0
98.2

133,955
34,401

2.0
0.5

1

97.1

130,131

2.0

1

93.9

130,707

2.0

1

98.2

51,154

0.8

1

100.0

51,568

0.8

1
1

97.2
93.0

25,54731,000

0.4
0.5

1
1

94.1
97.8

26,87630,376

0.4
0.5

1

95.2

120,458

1.8

1

97.0

120,725

1.8

1
1
1
1

99.0
96.9
88.8
96.8

70,5789,925
4,477
2,637,070

1.1
0.2
0.1
40.4

1
1
1
1

97.2
97.0
96.0
97.2

70,09555,421
22,5982,689,625

1.1
0.8
0.3
40.3

1.2

- 18 -

37

Status of Managed Assets of the Investment Corporation
12th Fiscal Period(from February 1, 2016 to July 31, 2016)

Other major citiesTokyo
metropolitan
area

Area

(Note 1)

(Note 2)

Property name

COMFORIA KOMAE
COMFORIA
YOKOHAMAKANNAICOMFORIA ICHIKAWAMYODENCOMFORIA YATSUKACOMFORIA SHINKOYASU
Subtotal
COMFORIA SHIN-OSAKACOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA KITASANJOCOMFORIA SAPPOROSHOKUBUTSUENCOMFORIA OGIMACHI
Subtotal
Total

4. Statement of Renewable Energy Power Generation Facilities

13th Fiscal Period(from August 1, 2016 to January 31, 2017)

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

1

100.0

19,428

0.3

1

94.8

18,667

0.3

1

90.5

41,129

0.6

1

100.0

41,631

0.6

1
1
1
1
1
1
1
1

100.0
100.0
86.0
94.1
95.0
97.2
93.2
97.7

24,71527,60736,307
149,188
89,15958,86629,32635,723

0.4
0.4
0.6
2.3
1.4
0.9
0.4
0.5

1

94.0

24,649

0.4

1

97.1

35,711

0.5

-

-

-

-

1

92.9

38,850

0.6

-

-

-

-

1

94.8

27,950

0.4

1
2

95.9
96.3

213,076
6,531,841

3.3
100.0

1
1
1
1
1
1

1

90.3

27,65995.6

148,319

91.1

56,695

97.7
94.8
96.7

95.0

89,12031,16335,546279,326

0.4
2.2
1.3
0.8

Not applicable

5. Statement of Operational License of Public Facilities
Not applicable

6. Statement of Securities Incorporated in the Portfolio
Not applicable

7. Details of Specified Transactions
The amount of specified derivative transactions entered into by the Investment Corporation and fair value as of January 31, 2017
are as follows.

0.5

Segment

0.5

4.2

2
96.5
6,674,280
100.0“Total number of tenants” indicates the total number of tenants under a direct lease relationship with the Investment Corporation or the trustee.
Therefore, in cases where the Investment Corporation or trustee comprehensively leases all of the rooms for rent from each managed property to themaster lease company (hereinafter referred to as the “introduction of a master lease”), and said master lease company subleases each room for rent to
end tenants, the total number of tenants will be shown as “1,” and will not include the number of end tenants related to the said sublease. Tokyu
Housing Lease Corporation and Mitsubishi Real Estate Services Co., Ltd. are the two master lease companies hired by the Investment Corporation;
therefore, the sum of the total number of tenants and subtotal of the total number of tenants in Central Tokyo is set as “2.” Even for managed assets
where a master lease is introduced, end tenants who do not accept the introduction of a master lease will be under a direct lease relationship with theInvestment Corporation or trustee. However, the number of said end tenants is not included in the total number of tenants.
“Occupancy rate” is the percentage of rented area vs. the rentable area of each managed asset.

Over-the-countertransactions(Note 1)
(Note 2)

Type

Contract amount (millions of yen)Over 1 year

(Note 1)

Receive floating, pay
fixed interest-rate swap
transactions

Total

Fair value(millions of yen)
(Note 2)55,64555,645–55,64555,645–The contract amount of the interest-rate swap transactions is based on the notional principal.
The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate. The fair value is omitted fortransactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

8. Other Assets
The trust beneficiary interests in properties owned by the Investment Corporation are listed on the aforementioned “3. Statementof Properties Incorporated in the Portfolio.” As of the end of the 13th Fiscal Period, there is no incorporation in particular of
specified assets as principal investment targets by the Investment Corporation, other than assets in the aforementioned “3.
Statement of Properties Incorporated in the Portfolio,” “4. Statement of Renewable Energy Power Generation Facilities,” “5.
Statement of Operational License of Public Facilities” and “6. Statement of Securities Incorporated in the Portfolio.”

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

38- 19 -- 20 -

39

Capital Expenditure for Properties Owned

Status of Expenses and Liabilities

Status of Expenses and Liabilities

Capital Expenditure for Properties Owned
1. Expected Capital Expenditure

1. Statement of Expenses Related to Investments

Major capital expenditure that accompanies repair works currently planned for assets already acquired (includes assets undermanagement that were acquired after the account closing date) is as follows. The following expected amount of construction work
includes portions that are separately accounted under expenses.
Property name(location)
COMFORIA
ITABASHINAKAJUKU(Itabashi-ku, Tokyo)
COMFORIA GINZA EAST
(Chuo-ku, Tokyo)
COMFORIA
MINAMIAOYAMA(Minato-ku, Tokyo)
COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)
COMFORIA
ICHIGAYAYANAGICHO(Shinjuku-ku, Tokyo)

PurposeScheduled period

Expected amount of construction work
(thousands of yen)for
Total amount
Total amount Payment
the period
already paid

Item
Asset management fee (Note)

25,245208,565

219,744

3,600

Directors’ compensation

3,600

118,000－－

Other expenses

Large-scale repair work

From Feb. 2017
to Jun. 2017

101,000－－

Conversion of a shop section
into an office

From Mar. 2017
to Apr. 2017

(Note) In addition to the amount stated above, asset management fees amounting to ¥103,230 thousand and ¥36,260 thousand in the 12th Fiscal Period and13th Fiscal Period, respectively, related to the acquisition of property are incorporated in the book value of each property．

26,640－－2. Loan Status

Electric water heater
replacement work

From Apr. 2017
to Jul. 201723,080－－

Entrance improvement work

From May 2017
to May 2017

7,000

Type

－

－

PeriodFrom Sep. 2016
to Jan. 2017
From Dec. 2016
Air conditioner replacement work
to Jan. 2017
From Dec. 2016
Painting of iron section in common area
to Jan. 2017
From Jan. 2017
Entrance improvement work
to Jan. 2017
From Oct. 2016
Painting of iron section in common area
to Dec. 2016
From Aug. 2016
Painting of iron section in common area, etc.
to Jan. 2017

Construction cost(thousands of yen)

Large-scale repair work

28,329
5,829
3,796
3,451
2,877
67,729112,014(Thousands of yen)

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

12th Fiscal Period

13th Fiscal Period

From Aug. 1, 2014
to Jan. 31, 2015

From Feb. 1, 2015
to Jul. 31, 2015

From Aug. 1, 2015
to Jan. 31, 2016

From Feb. 1, 2016
to Jul. 31, 2016

From Aug. 1, 2016
to Jan. 31, 2017

232,973

248,938

313,837

327,081

378,887

239,628

188,329

188,418

232,577

304,044

223,663

123,430

175,173

180,771304,984

248,938

313,837

327,081

378,887

377,947- 21 -

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
The Tokyo Tomin Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Long-term loans (Note 1)

PurposeTotal

588,471

636,425

The status of loans as of January 31, 2017 is as follows.

From the cash flows during the fiscal period, the Investment Corporation sets aside reserves for repairs, which are to beappropriated for repairs in the medium to long term.

40

6,560

25,313

From Mar. 2017
to Jun. 2017

3. Funding Reserved for Long-Term Repair Plans

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

381,274

Large-scale repair work

Property name(location)
COMFORIA MITA NORTH(Minato-ku, Tokyo)
COMFORIA SHIMOKITAZAWA(Setagaya-ku, Tokyo)
COMFORIA YATSUKA(Soka-shi, Saitama)
COMFORIA KITASANDO(Shibuya-ku, Tokyo)
COMFORIA SHIN-OSAKA(Higashi-Yodogawa-ku, Osaka-shi, Osaka)

Fiscal period

13th Fiscal Period
From Aug. 1, 2016 to Jan. 31, 2017

5,926

Administrative service fees

The overview of main construction works corresponding to capital expenditure that took place in the 13th Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 13th Fiscal Period was ¥112,014
thousand. Together with repair expenses of ¥225,624 thousand that were classified as expenses for the 13th Fiscal Period,
construction works totaling ¥337,639 thousand were carried out.

Total

345,066

Asset custody fee

2. Capital Expenditure during the Period

Other properties, etc.

(Thousands of yen)

12th Fiscal Period
From Feb. 1, 2016 to Jul. 31, 2016

Development Bank of Japan Inc.
Mizuho Trust & Banking, Co., Ltd.
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The 77 Bank, Ltd.
The Daishi Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Drawdown beginning ofcurrent perioddate

Balance at theBalance at theend of current
period

3,570
3,570
3,570
1,785
1,090
1,090
1,090
1,090

3,570
3,570
3,570
1,785
1,090
1,090
1,090
1,090

(millions of yen) (millions of yen)Mar. 23,2011

Feb. 3,2012

Sep. 4,2013
Sep. 30,
2013
Sep. 30,
2013

1,090

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

Remarks(Note 2)0.530620.53062 Mar. 23,
0.53062 2019
0.53062
1.41200
1.41200
1.41200
1.41200 Sep. 29,
2017
1,090 1.41200

550
300

550 1.41200
300 1.41200

2,000

2,000 0.79500

1,350
1,350

1,350 0.67075
1,350 0.67075

1,350

1,350 0.67075

600

600 0.67075

1,350

1,350 0.90487

2,000
1,500
1,000
500
500
1,000
1,000
1,000
1,000

1,000
1,000
1,000
1,000

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Aug. 31, Lump-sum
2018
repayment(Note 5)

Unsecured
Unguaranteed

Mar. 30,
2018

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Sep. 30,
2019

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

1,000

0.379900.37990Jan. 31,0.379902017
0.379900.379900.60700
0.60700
0.60700
Jan. 31,0.607002019
1,000 0.60700

Feb. 4,
2014

500
1,000
1,000
1,000
1,000

500
1,000
1,000
1,000
1,000

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Jun. 30,
2014

500
670
670
670
670

500
670
670
670
670

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Feb. 4,
2014

Feb. 4,
2014

1,000

0.60700
0.882400.882400.88240
Jan. 31,0.88240 2021
1,000 0.88240

670

0.882400.601500.601500.60150
Jun. 30,0.60150 2020
670 0.60150

350

350 0.60150- 22 -

41

Status of Expenses and Liabilities

Long-term loans (Note 1)

42

LenderDevelopment Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Shinkin Central Bank
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
The Tokyo Tomin Bank, Limited
Sumitomo Mitsui Trust Bank, Limited

Drawdown beginning ofcurrent perioddate

Balance at theBalance at theend of current
period

910
910
910
910

910
910
910
910

910

910

Feb. 3,
2015

450
750
750
750
600
600
600
600

450
750
750
750
600
600
600
600

600

600

Feb. 3,
2015

300
620
620
620
620

300
620
620
620
620

620

620

310
620
620
620
620

310
620
620
620
620

620

620

310
790
790
790

310
-

790

-

Feb. 2,
2016

390
360
360
360
360

360
360
360
360

360

360

Feb. 2,
2016

200
420
420
420
420

200
420
420
420
420

420

420

(millions of yen) (millions of yen)Jun. 30,
2014

Feb. 3,2015

Feb. 3,2015

Feb. 2,
2016

Feb. 2,
2016

Mar. 23,
2016

Averageinterest Maturity Repayment Use of
methodfunds
date
rate (%)(Note 2)0.90100
0.90100
0.90100
Jun. 30,
0.90100 2022
0.90100

Lump-sum
repayment

0.90100
0.30820
Mar. 30, Lump-sum
0.308202018
repayment
0.308200.69250
0.69250
0.69250
Jan. 31, Lump-sum
0.69250 2022
repayment
0.69250
0.69250
0.79875
0.79875
0.79875
Jan. 31,0.79875 2023
0.79875
0.79875
1.04200
1.04200
1.04200
Jan. 31,1.04200 2025
1.04200
1.04200
0.231820.23182
Feb. 28,0.23182 2017
(Note 3)0.23182

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment

0.23182
0.583400.583400.58340
Mar. 31, Lump-sum
0.58340 2023
repayment
0.583400.583400.62460
0.62460
0.62460
Aug. 31, Lump-sum
0.62460 2023
repayment
0.62460

230
490
490
490
490

230
490
490
490
490

490

490

220
1,570

220
1,570

0.677450.27125

1,570

1,570

1,000
785

1,000
785

0.27125 Mar. 31, Lump-sum
2021
repayment
0.27125
0.27125- 23 -

0.62460
0.677450.677450.67745
Feb. 29,0.67745 2024
0.67745(Note 5)(Note 5)(Note 5)(Note 5)(Note 5)(Note 5)(Note 5)

Remarks

Type

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Long-term loans (Note 1)

Type

Averageinterest Maturity Repayment Use ofdatemethodfunds
rate (%)

Drawdown beginning ofcurrent perioddate

Balance at theend of current
period

2,000

2,000

0.61950

2,000

2,000

0.61950

Aug. 1,
2016

1,000
1,290
1,290
640
-

1,000
580
580
580
580

-

580

0.619500.23182 Jun. 30,
Lump-sum0.23182 2017
repayment(Note 3)0.23182
0.46655
0.46655
0.46655
Jul. 31, Lump-sum
0.46655 2024
repayment

Aug. 1,
2016

-

290
900
900
900
900

-

900

(millions of yen) (millions of yen)

Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Mar. 23,
2016
Jun. 30,
2016

Remarks(Note 2)Mar. 31, Lump-sum
2025
repayment(Note 5)

Unsecured
Unguaranteed(Note 5)

Unsecured
Unguaranteed(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

0.46655

0.46655
0.655180.655180.65518
Jul. 31,0.65518 2026
0.65518-450

0.65518

Mizuho Trust & Banking, Co., Ltd.

Sep. 30,
2016

-

1,550

0.23000

Sep. 30,
Lump-sum2017
repayment(Note 4)(Note 5)

Unsecured
Unguaranteed

Mitsubishi UFJ Trust and Banking
Corporation

Dec. 13,
2016

-

990

0.22704

Dec. 29,
Lump-sum2017
repayment(Note 4)(Note 5)

Unsecured
Unguaranteed

88,060

2,000
1,500
1,000
500
500
91,9700.46691
0.46691
Jan. 31, Lump-sum
0.466912022
repayment
0.46691
0.46691(Note 5)

Unsecured
Unguaranteed

Mizuho Trust & Banking, Co., Ltd.
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The 77 Bank, Ltd.
The Daishi Bank, Ltd.
Total

(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)Jan. 31,2017

Long-term loans include the current portion of long-term loans payable.
Average interest rates consist of the borrowing rates for each loan agreement rounded to the fifth decimal place. Furthermore, the stated rate for loans
for which interest-rate swap transactions were carried out to avoid interest rate risk takes into account the effect of the interest-rate swap.
The full amount was repaid before maturity on August 1, 2016
The full amount was repaid before maturity on February 2, 2017.
The usage of funds includes purchasing properties in trust and the repayment of existing loans.

3. Investment Corporation Bonds
The status of investment corporation bonds as of January 31, 2017 is as follows.

(Note 5)

Unsecured
Unguaranteed

Issue(Note 5)

Unsecured
Unguaranteed

Issue
date

1st Unsecured Bond Jul. 30,(Note 1)
2014
(Note 1)
(Note 2)Lump-sum
repayment

Balance at theLenderTotal

Balance at theAmountAmountBalance at the
beginning ofincreased indecreased in
end of current
current period
current period
current period
period(millions of yen) (millions of yen) (millions of yen) (millions of yen)

CouponMaturity Repayment Use of
rate
date
method funds(%)

SecurityJul. 30, Lump-sum
2021
repayment

Unsecured

3,000

–

–

3,000 0.64000

3,000

–

–

3,000

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

4. Short-Term Investment Corporation Bonds
Not applicable

5. Investment Unit Acquisition Rights(Note 5)

Unsecured
Unguaranteed

Not applicable- 24 -

43

Purchase and Sale during the Period

Purchase and Sale during the Period

1. Purchase and Sale of Properties and Asset Backed Securities
Property name
COMFORIA SAPPOROSHOKUBUTSUENCOMFORIA
OGIMACHICOMFORIA
ICHIGAYAYAKUOJI

4. Transactions with Related Parties

Acquisition

Acquisition price
Acquisition date(millions of yen)Aug. 1, 2016

Sale

Sale date

1,250

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

–

–

–

1,435

–

–

–

–

Dec. 13, 2016

941

–

–

–

–

3,626

–

–

–

–

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

–

2. Purchase and Sale of Other Assets
Main assets other than the above properties and asset backed securities are bank deposits or bank deposits within trust assets.

3. Appraisals of Specified Assets(1) Real estate, etc.
Acquisitionor saleReal estate appraisal
Acquisition priceor sale priceAppraisal value Appraisal
Date of(millions of yen)(millions ofcompany(Note 1)valuation(Note 3)yen) (Note 2)

Property nameAcquisition orsale date

COMFORIA SAPPOROSHOKUBUTSUEN

Aug. 1, 2016

1,250

1,260

(1)

Aug. 1, 2016

Acquisition Property in trust COMFORIA OGIMACHI

Sep. 30, 2016

1,435

1,490

(2)

Sep. 30, 2016

Acquisition Property in trust

Dec. 13, 2016

941

969

(3)

Sep. 30, 2016

Type of asset

Acquisition Property in trust

COMFORIA
ICHIGAYAYAKUOJI(2) Amount of commission paid–

Sep. 30, 2016

Total(1) Information on transaction
Not applicable(Note 1) The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property
tax, city planning tax, consumption tax and local consumption tax.
(Note 2) Appraisal value indicates appraisal value or investigated value.
(Note 3) The appraisal companies handling the real estate appraisal of each property are (1) Japan Real Estate Institute, (2) Japan Valuers Co., Ltd. and(3) Daiwa Real Estate Appraisal Co., Ltd.

Category

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

Breakdown of transaction with related parties
Payee
Tokyu Housing Lease Corporation

Property management
entrustment costs

554,646 TS Community Co., Ltd.

Marketing-related
expenses

153,140 Tokyu Livable, Inc.

Other expenses related
to rent business

160,713 TS Community Co., Ltd.

Tokyu Community Corp.

Amount of payment(B)(thousands of yen)

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

291,076

52.5

3,370

0.6

24,637

4.4

966

0.6

Tokyu Sports Oasis, Inc.

8,397

5.2

Tokyu Homes Corporation

1,500

0.9

1,953

1.2

(3) Major payments to other related parties
Tokyu Homes Corporation¥8,243 thousand (repair work, etc.)
Ewel, Inc.
¥2,247 thousand (system usage, etc.)
TS Community Co., Ltd.
¥1,258 thousand (repair work)
Tokyu Community Corp.
¥135 thousand (repair work)

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

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

- 25 -

44- 26 -

45

Accounting Status

Accounting Status

1. Assets, Liabilities, Principal and Profit/Loss

Accounting
StatusPlease refer to “1. Balance Sheets,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statementsof Cash Distributions,” “5. Statements of Cash Flows,” and “6. Notes.”

1. Assets, Liabilities, Principal and Profit/Loss
2. Changes
Methodof Depreciation
Please referintothe“1.Calculation
Balance Sheets,”“2. Statementsof Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statementsof CashDistributions,” “5. Statements of Cash Flows,” and “6. Notes.”Notapplicable

2. Changes
Changes inin thethe Appraisal
Calculation
MethodDepreciation
3.
Methodofof
RealEstate, etc.
Not applicableapplicable
Not

3. Changes in the Appraisal Method of Real Estate, etc.

Other
Not applicable

Other

1. Beneficiary Certificates of Investment Trusts Established by the Investment Corporation

Other
Not applicable

1. Notices
Beneficiary Certificates of Investment Trusts Established by the Investment Corporation
2.
applicable(1) Not
Unitholders’Meeting
Not applicable

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

(2) Boardof Directors
Corporation
Approval
date of the InvestmentMatter
Overview
The main overviews of the major conclusion and change of contracts that were approved by the Board of Directors of the
A new investment unit underwriting contract with Mizuho Securities
Conclusionof a newinvestment
unit
Investment Corporation
during current
periodare as follows.
Co., Ltd. and four other companies (Note) for the issuance of newunderwriting contract pertaining toinvestment units and the sale Overview
of investment units that were approved
Approval date
Matterthe issuance of new investment unitsatthe Boardof Directors’
meetingscontract
held onwith
January
5, 2017andA
newinvestment
unit
underwriting
MizuhoSecurities
Jan. 5, 2017
andthe sale ofof ainvestment
units, unit
andConclusion
new investment(Note)
January
2017,
well ascompanies
a new investment
Co., Ltd.18,and
fouras otherforunitthe purchaseissuance contractof newtheconclusionofanewinvestment
underwriting contract pertaining to pertaining to the Green Shoe option with the book runner (Mizuho
unit
purchaseofcontract
with regard
to investment units and the sale of investment units that were approved
the issuance
new investment
units
Securities
Co.,of Ltd.)
weremeetings
concluded
January5, 18,
at the Board
Directors’
heldasonofJanuary
20172017,
and
the
Shoe
Jan. 5, 2017
andGreen
the saleof option
investment units, and respectively.
January 18, 2017, as well as a new investment unit purchase contract
theSecurities
conclusionof anda newinvestment(Note) Other than Mizuho
Co., Ltd.
SMBC
Nikko Securities
Inc., which
Daiwa with
Securities
Ltd.,
NomuraShoe option
the Co.
bookrunner(Mizuhopertaining
to aretheco-lead
Greenmanagers,
unit
withStanley
regardto
Securities Co., Ltd.
andpurchase
Mitsubishicontract
UFJ Morgan
Securities
Co., Ltd.
Securities Co., Ltd.) were concluded as of January 18, 2017,
the Green Shoe option
respectively.

(Note) Other thanSecurities
Co., Ltd.Owning
and SMBC Corporations
Nikko Securities Inc., which are co-lead managers, Daiwa Securities Co. Ltd., Nomura
3. Disclosure
onMizuhoOverseas
Property
Securities Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Not applicable

3. Disclosure
Disclosure on
on RealOverseas
Property
Corporations
4.
EstateOwnedOwningby Overseas
Property Owning Corporations
Not applicableapplicableNot

4. OtherDisclosure on Real Estate Owned by Overseas Property Owning Corporations
5.

Not applicable
Figuresin this document are rounded down (values) and rounded to the nearest decimal place (percentages) unlessotherwise indicated.

5. Other

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

- 27 -

46

47- 27 -



Ⅲ. Financial Section

III. Financial Section
1. Balance Sheets(Thousands of yen)(Thousands of yen)
12th Fiscal Period(As of July 31, 2016)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
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

48

-1-

13th Fiscal Period(As of January 31, 2017)

4,665,098
6,071,996
6,573
157,975
89,406605
10,991,655

5,634,348
6,012,085
13,160134,716－431
11,794,742

1,876,339(44,450)
1,831,888
21,514(1,003)
20,51017,687(91)
17,596－－－2,401,273
79,162,090(5,485,708)
73,676,381
1,061,875(172,188)
889,686
1,450,501(145,083)
1,305,418
95,377(30,055)
65,321
85,109,790
165,317,869

1,895,400(65,971)
1,829,429
21,514(1,685)19,828
17,687(365)
17,322
1,628
(71)
1,557
2,405,775
81,019,743(6,439,898)
74,579,844
1,085,525(200,657)
884,868
1,471,940(171,110)
1,300,829
125,460(39,147)
86,312
87,211,899
168,337,668

1,217,703
17,731
1,235,435

1,209,138
18,421
1,227,559

1,507,194
826,889
2,334,083
168,887,388

1,508,094
981,6712,489,765
172,054,993

51,646
13,50965,155
179,944,200

40,875
12,13553,011
183,902,747

12th Fiscal Period(As of July 31, 2016)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

13th Fiscal Period(As of January 31, 2017)476,247
12,270,000
90,015
123,705
7,484－
1,037,971
2,146
14,007,572

470,1818,840,000
55,657
122,638
5,721
12,057
1,074,184
2,567
10,583,007

3,000,000
75,790,000
17,792
1,893,294
94,006
1,554
80,796,648
94,804,220

3,000,000
83,130,000
21,121
1,901,107
94,592
1,165
88,147,987
98,730,995

82,743,523

82,743,523

92,17092,1702,304,285
2,396,455
85,139,979*1 85,139,979
179,944,200

92,17092,1702,336,057
2,428,227
85,171,751*1 85,171,751
183,902,747

49





2. Statements of Income

3. Statements of Changes in Unitholders’ Equity(Thousands of yen)
12th Fiscal Period(From February 1, 2016 toJuly 31, 2016)
Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Directors' compensations
Audit fee
Asset custody fee
Administrative service fees
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1 6,433,203

6,531,841

6,674,280*1 3,196,903

345,066
3,600
13,734
5,926
25,313
194,8313,785,374
2,746,467(Thousands of yen)

13th Fiscal Period(From August 1, 2016 toJanuary 31, 2017)*1 6,232,360*1 299,481

12th Fiscal Period (From February 1, 2016 to July 31, 2016)
Unitholders’ equity
Surplus*1 241,076*1 3,249,401

381,274
3,600
13,194
6,560
25,245
206,550
3,885,826
2,788,453

1,068
－
－
1,068

57
1,033
440
1,532

309,410
94,8959,599
1,373
19,445434,724
2,312,810
2,312,810
7,648
958
8,606
2,304,20480
2,304,285

310,754
107,430
9,600
1,373
19,445
448,605
2,341,380
2,341,380
5,729
(214)
5,515
2,335,864
193
2,336,057

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new
investment units

75,224,343–

UnapproTotal
priatedunitholders’retained
equityTotal surplus
earnings(undisposed
loss)
2,148,086–(2,055,835)
92,17092,170

ProfitNet changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end of current
period2,148,086

7,519,180

Provision of reserve for
reduction entry

7,519,180*1

82,743,523(2,055,835)

77,372,430

Totalvaluationandtranslation
adjustments

Deferred
gains orlosses onhedges(2,578)(2,578)

Total net
assets77,369,851

7,519,180

7,519,180(2,055,835)(2,055,835)(92,170)–––

2,304,204

2,304,204

2,304,204

2,304,204
2,578

2,578

2,578

92,17092,170156,198

248,369

7,767,549

2,578

2,578

7,770,127

92,17092,1702,304,285

2,396,455

85,139,979––

85,139,979

13th Fiscal Period (From August 1, 2016 to January 31, 2017)(Thousands of yen)
Unitholders' equity
Surplus
Voluntary retained
earnings

Total net assets

Total surplus

Totalunitholders'equity2,304,285

2,396,455

85,139,979

85,139,979

Dividends of surplus(2,304,092)(2,304,092)(2,304,092)(2,304,092)

Profit2,335,864

2,335,864

2,335,864

2,335,864

Unitholders'
capitalBalance at beginning ofcurrent period

82,743,523

Reserveforreduction
entry

Total
voluntary
retainedearnings

92,17092,170

Unappropriatedretainedearnings(undisposed
loss)

Changes of items during
periodBalance at end of current
period-3-

Voluntary retained
earnings
Unitholders’capitalTotal
Reserve forvoluntary
reduction
retainedentry
earnings

Dividends of surplus

Total changes of items
during period

50

Valuation and translation
adjustments－*1

82,743,523－－

31,772

31,772

31,772

31,772

92,17092,1702,336,057

2,428,227

85,171,751

85,171,751

-4-

51





4. Statements of Cash Distributions

5. Statements of Cash FlowsI.

Category

12th Fiscal Period(From February 1, 2016
to July 31, 2016)

13th Fiscal Period(From August 1, 2016
to January 31, 2017)

Unappropriated retained earnings¥2,304,285,459¥2,336,057,575[¥4,487][¥4,549]

II. Distributions[Distribution per unit]

III. Retained earnings carried forward
Method for calculating distributions

52¥2,304,092,448¥193,011
The Investment Corporation will makecash distributions using accounting profits
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation, in
an amount that exceeds 90% of the“amount of distributable profit” of theInvestment Corporation as set forth in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥2,304,092,448 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

-5-¥2,335,929,696¥127,879
The Investment Corporation will makecash distributions using accounting profits
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation, in
an amount that exceeds 90% of the“amount of distributable profit” of theInvestment Corporation as set forth in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥2,335,929,696 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

(Thousands of yen)
12th Fiscal Period(From February 1, 2016
to July 31, 2016)
Cash flows from operating activities
Profit before income taxes
Depreciation
Borrowing related expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Gain on forfeiture of unclaimed dividends
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Purchase of trust intangible assets
Payments for lease and guarantee deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-6-13th Fiscal Period(From August 1, 2016
to January 31, 2017)

2,312,810
1,020,188
94,895
1,373
19,445(1,068)319,009
1,061(141,423)(89,406)(45,292)
134,329811
15,388
280,584
1,912
3,924,621
1,068(319,502)(792)
3,605,394

2,341,380
1,052,308
107,430
1,373
19,445(57)(1,033)
320,355(6,586)
22,591
89,406
12,05724,4473,274
2,048
36,212620
4,025,274
57(323,472)(7,493)
3,694,366(3,211,892)(14,956,417)(3,768)(960,990)(1,497,065)
13,815(872)
753,276(243,243)(20,107,157)(24,039)(4,108,752)(3,520)(900)
5,241(1,646)200,729(196,450)(4,129,337)

23,382,463(11,905,000)
7,494,013(2,055,111)(9,583)
16,906,782
405,019
10,332,075*1 10,737,094

15,924,929(12,270,000)(2,303,716)(6,901)
1,344,311
909,339
10,737,094*1 11,646,434

53





6. Notes

6.

<Summary of Significant Accounting Policies>
1.

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

2–64 years
2–64 years
10–34 years
3–15 years(2) Intangible assets (including trust assets)
Intangible assets are amortized by the straight-line method.

2.

3.

4.

Accounting policies fordeferred assets

Accounting standards forrevenues and expenses

Method of hedge accounting(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line
method over the redemption periods.
(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method overthree years.
Accounting treatment of fixed property tax, etc.
For property tax, city planning tax, and depreciation asset tax for real estate properties
held, the amounts to be paid for the fiscal periods are calculated out of the tax
amounts decided to be levied and are recorded as expenses related to rent business.
Of the amounts paid for the acquisition of real estate property or beneficiary right ofreal estate in trust, the amounts equivalent to fixed property tax for the corresponding
year are capitalized as part of the acquisition cost of the relevant property rather thanbeing charged as expenses.

(1) Method of hedge accounting
The deferred hedge method is applied.
However, the special accounting treatment is applied for interest-rate swap
transactions that meet certain criteria.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest expenses on loans payable(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its
investment management guidelines with the objective of hedging interest rate
fluctuation risks and other risks pertaining to borrowings, etc.

5.

54

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

-7-

Other significant accounting
policies utilized in the
preparation of financial
statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities in addition to revenues and expenses of financial assets heldin the form of trust beneficiary interests in real estate and other assets are recorded infull in the Investment Corporation’s Balance Sheets and Statements of Income.
Important line items included in accounting for financial assets and liabilities in
the Investment Corporation’s Balance Sheets are as follows:(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; construction in progress in trust; andleasehold rights in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are excluded from transaction amounts. Non-deductible
consumption taxes applicable to the acquisition of non-current assets, etc. are includedin the cost of acquisition for each asset.

<Notes to the Balance Sheets>*1. Minimum net assets pursuant to Article 67-4 of the Act on Investment Trusts and Investment Corporations
12th Fiscal Period(As of July 31, 2016)

50,000<Notes to the Statements of Income>*1. Breakdown of real estate rental revenues and expenses

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

13th Fiscal Period(As of January 31, 2017)

50,000(Thousands of yen)
12th Fiscal Period(From February 1, 2016
to July 31, 2016)

6,088,598
143,761

6,284,324
6,232,360

158,642
140,838

13th Fiscal Period(From August 1, 2016
to January 31, 2017)

148,878
125,096

299,481
6,531,841

115,980

601,432

554,646

188,075
693,460
242,197
7,044
86,253
168,957
41,373
1,017,498

225,624
697,599
262,703
6,371
96,190153,140
42,073
1,049,477

150,609

161,573-8-6,433,203

241,076
6,674,280

3,196,903

3,249,401

3,334,938

3,424,878

55




<Notes to the Statements of Changes in Unitholders’ Equity>*1. Total number of authorized investment
units and total number of investment
units issued and outstanding
Total number of authorized investment units
Total number of investment units issued andoutstanding

12th Fiscal Period(From February 1, 2016
to July 31, 2016)

13th Fiscal Period(From August 1, 2016
to January 31, 2017)

8,000,000 units

8,000,000 units

513,504 units

513,504 units<Notes to lease transactions>
1. Operating lease transactions (Lessee)
Future minimum lease payments under non-cancelable operating lease transactions
12th Fiscal Period(As of July 31, 2016)
1,363,440
82,351,776
83,715,216

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

Due within 1 year
Due after 1 year
Total

Fair value of financial instruments
The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of July 31,
2016 are as follows.
(Thousands of yen)
Carrying value

Fair value(Note 1)

<Notes to the Statements of Cash Flows>*1. Reconciliation of balance sheets items to cash and cash equivalents at end of period in the Statements of Cash Flows(Thousands of yen)
12th Fiscal Period
13th Fiscal Period(From February 1, 2016
(From August 1, 2016
to July 31, 2016)
to January 31, 2017)
Cash and deposits
4,665,098
5,634,348
Cash and deposits in trust
6,071,996
6,012,085
Cash and cash equivalents
10,737,094
11,646,434

Due within 1 year
Due after 1 year
Total

2.

12th Fiscal Period(As of July 31, 2016)

162,606
495,713658,320(1) Cash and deposits

4,665,098

4,665,098–(2) Cash and deposits in trust

6,071,996

6,071,996–(3) Current portion of long-term loans payable(12,270,000)(12,273,860)

3,860(4) Investment corporation bonds(3,000,000)(3,085,554)

85,554(5) Long-term loans payable(75,790,000)(76,878,753)

1,088,753–––(6) Derivative transactions

The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of January
31, 2017 are as follows.
(Thousands of yen)
Carrying value

Fair value(Note 1)(Thousands of yen)
13th Fiscal Period(As of January 31, 2017)
1,363,440
81,670,056
83,033,496(Thousands of yen)

13th Fiscal Period(As of January 31, 2017)
222,782
497,547
720,330<Notes to financial instruments>
1. Status of financial instruments(1) Policies for financial instruments
With a focus on stability, flexibility and efficiency as the basis of its financial policy, the Investment Corporation procures
funds through borrowings as well as the issuance of investment corporation bonds (including short-term investment
corporation bonds; the same shall apply hereinafter) and investment units among other means with the aim of growing its
investment assets through their acquisition.
The Investment Corporation may enter into derivatives transactions, which shall be executed solely for the purpose ofhedging against interest-rate fluctuations and other risks pertaining to borrowings, etc.
(2) Characteristics and risk profile of each financial instrument and risk management system
The funds for borrowings and investment corporation bonds were mainly appropriated for the acquisition of investment
assets and repayment of borrowings, etc. With regard to liquidity and interest rate fluctuation risks associated with thesefinancing activities, the Investment Corporation endeavors to manage and limit them by considering and implementing
multifaceted funding methods including the utilization of surplus funds and raising funds, etc. from capital markets throughissuance of investment units, etc. while diversifying funding sources. Although loans with floating interest rates are exposed
to a risk of fluctuation in interest payable, the Investment Corporation employs derivative transactions (interest-rate swap
transactions) as hedging instruments in order to avoid interest rate fluctuation risks and fix loan interest payable. For moredetailed information on the method of hedge accounting, hedging instruments, hedged items, hedging policy and theevaluation method for hedge effectiveness, please refer to the previous section “6. Notes: Summary of significant accounting
policies, 4. Method of hedge accounting.”

Difference(Note 1)

Difference(Note 1)

(1) Cash and deposits

5,634,348

5,634,348–(2) Cash and deposits in trust

6,012,085

6,012,085–(3) Current portion of long-term loans payable(8,840,000)(8,884,403)

44,403(4) Investment corporation bonds(3,000,000)(3,050,232)

50,232(5) Long-term loans payable(83,130,000)(83,597,013)

467,013–––(6) Derivative transactions(Note 1)
(Note 2)

(Note 3)Figures in parentheses indicate liabilities.
Methods to determine the fair value of financial instruments:(1) Cash and deposits and (2) Cash and deposits in trust
Due to their short tenors, the carrying values of these assets are reasonable approximations of their present value and hence are used as theirfair value.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short term and theircarrying values are good approximations of their fair value, the carrying values are presented as their fair value. However, the fair value offloating-rate long-term loans payable and current portion of long-term loans payable hedged by interest-rate swap transactions subject tospecial accounting treatment (refer to the following section entitled “Notes to derivative transactions”) are calculated by discounting theaggregated principal and interest on such loans, after taking into account the effect of said interest-rate swap transactions, using reasonableestimates of the rates that would be applicable in a similar borrowing.
(4) Investment corporation bonds
The fair value of investment corporation bonds is measured based upon the present value obtained by discounting the total amount ofprincipal and interest at a rate that takes into account the term to maturity and credit risk.
(6) Derivative transactions
Please refer to the following section entitled “Notes to derivative transactions.”
Carrying value of financial instruments whose fair value cannot be reliably measured (Thousands of yen)
12th Fiscal Period(As of July 31, 2016)(1) Tenant leasehold and security deposits(2) Tenant leasehold and security deposits in trust

13th Fiscal Period(As of January 31, 2017)(17,792)(21,121)(1,893,294)(1,901,107)(1)(2) Fair value of tenant leasehold and security deposits and leasehold and security deposits in trust is not subject to disclosure of fair value, as
these items have no market value and their future cash flows are difficult to reasonably estimate given the fact that although a predetermined
period for each lease contract exists, the actual deposit period cannot be calculated due to possible contract termination, renewal or extension.
(3) Figures in parentheses indicate liabilities.

(3) Supplementary note regarding fair value of financial instruments
The fair value of financial instruments presented in this report is based on their market value, and in cases where market
value is not available, reasonably calculated values are presented. Since the calculation of fair value is based on certain
assumptions, fair value could differ depending on the assumptions used.

56

-9-

- 10 -

57

(Note 4)

2.

Redemption schedule for monetary claims (Thousands of yen)
12th Fiscal Period (As of July 31, 2016)

Transactions subject to hedge accounting
12th Fiscal Period (As of July 31, 2016)(Thousands of yen)Due in 1 year or less
Deposits

4,665,098

Deposits in trust

6,071,996

Total

10,737,094

13th Fiscal Period (As of January 31, 2017)

Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable

Total

Due in 1 year or less

(Note 5)

Deposits

5,634,348

Deposits in trust

6,012,085

Total

11,646,434

12th Fiscal Period (As of July 31, 2016)

Total

Due in 1 year
or less

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

12,270,000

–

–

–

–

–

–

13,200,000

19,995,000

5,050,000

10,425,000

27,120,000

–

–

–

–

3,000,000–

12,270,000

13,200,000

19,995,000

5,050,000

13,425,000

27,120,000

Due in 1 year
or less

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

Due after 5 years

8,840,000

–

–

–

–

–

–

14,400,000

13,845,000

9,200,000

13,725,000

31,960,000

–

–

–

–

3,000,000–

8,840,000

14,400,000

13,845,000

9,200,000

16,725,000

31,960,000

13th Fiscal Period (As of January 31, 2017)

Current portion of
long-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total

Hedge accounting
methodType of derivativetransactions

Hedged items

Special treatment
of interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

Long-termloans payable<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
12th Fiscal Period (As of July 31, 2016)
Not applicable
13th Fiscal Period (As of January 31, 2017)
Not applicable

(*1)

Total

55,645,000

61,145,000

55,645,000–––(Thousands of yen)Calculation
method for
Fair value
applicable fair
Maturing after 1 year
value

Contract amount

55,645,000

55,645,000

55,645,000

55,645,000

(*2)

–
–

–

<Notes to retirement benefits>
12th Fiscal Period (As of July 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
13th Fiscal Period (As of January 31, 2017)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
<Notes to tax-effect accounting>
1. Components of deferred tax assets and liabilities(Thousands of yen)
12th Fiscal Period(As of July 31, 2016)

Deferred tax liabilities
Property, plant and equipment
corresponding to asset retirement
obligations
Total deferred tax liabilities
Deferred tax liabilities, net- 11 -(*2)*1 Long-term loans payable include the current portion of long-term loans payable.
*2 Interest-rate swap transactions for which the special treatment is applied are accounted for together with long-term loans payable and the underlying
hedged items. As a result, their fair value is included in the fair value of items listed under “(3) Current portion of long-term loans payable” and “(5)Long-term loans payable” in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”

Deferred tax assets
Enterprise tax payable
Amortization of leasehold rights
Asset retirement obligations
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets<Notes to investment securities>
12th Fiscal Period (As of July 31, 2016)
Not applicable
13th Fiscal Period (As of January 31, 2017)
Not applicable58

61,145,000

13th Fiscal Period (As of January 31, 2017)

Redemption schedule for loans payable and investment corporation bonds (Thousands of yen)

Current portion of
long-term loans
payableLong-term loans
payableInvestment
corporation bonds(*1)

Calculation
method for
Fair value
applicable fair
Maturing after 1 year
value

Contract amount- 12 -

13th Fiscal Period(As of January 31, 2017)
605
2,963
32,52636,095(35,490)
605

431
5,927
32,72939,087(38,656)
431(1,554)(1,165)(1,554)(948)(1,165)
(734)

59




2.

Significant differences between the statutory tax rate and the effective tax rate(%)

12th Fiscal Period(As of July 31, 2016)
Statutory tax rate
(Adjustments)
Deductible cash distributions
Other
Effective tax rate

3.

13th Fiscal Period(As of January 31, 2017)
35.36

34.81

(35.23)0.24
0.37(34.73)0.15
0.24<Notes to share of profit or loss of investments accounted for under the equity method>
12th Fiscal Period (From February 1, 2016 to July 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
13th Fiscal Period (From August 1, 2016 to January 31, 2017)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.

Attribution

Major
unitholder(Note 1)
(Note 2)
(Note 3)

Location

Tokyu Land
Corporation

Shibuyaku, Tokyo

Capital andinvestment(millions ofyen)Type ofbusinessor jobtitle

Ratio ofvotinginterest(held)(%)(Note 1)

Concurrent
positions
held by
officers

Businessrelationship

57,551Real
estatebusiness

10.06

Yes

Major
unitholder

RelationshipAccount

Purchase of
beneficiaryrights of realestate in trust

14,694,000–

Period-end
balance(thousandsof yen)Affiliated companies and other12th Fiscal Period (From February 1, 2016 to July 31, 2016)
Not applicable
13th Fiscal Period (From August 1, 2016 to January 31, 2017)
Not applicable

Major
unitholder’ssubsidiary

Tokyu
Housing
Lease
Corporation

Attribution

Company’s
name orperson’s
name

Major
unitholder’ssubsidiary

Tokyu
Housing
Lease
Corporation(Note 1)
(Note 2)
(Note 3)

4.

–

The ratio of voting interest is rounded down to the second decimal place.
In the above amounts, transaction amount does not include consumption taxes, while the period-end balance does include consumption taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.

13th Fiscal Period (From August 1, 2016 to January 31, 2017)
Not applicable2.

Details oftransactions

Transaction
amount(thousandsof yen)Attribution

Company’s
name orperson’s
name

Location

Capital andinvestment(millions ofyen)Line ofbusinessor jobtitle

Ratio ofvotinginterest(held)(%)(Note 1)

Concurrent
positions
held by
officers

BusinessrelationshipShinjukuku, Tokyo

100

Real
estatebusiness

–

No

Major
unitholder’ssubsidiary

Relationship

Location

Capital andinvestment(millions ofyen)Line ofbusinessor jobtitle

Ratio ofvotinginterest(held)(%)(Note 1)

Concurrent
positions
held by
officers

BusinessrelationshipShinjukuku, Tokyo

100

Real
estatebusiness

–

No

Major
unitholder’ssubsidiary

Account

Period-end
balance(thousandsof yen)Property
management
contract

331,163

Operatingaccounts
payable62,253

Details oftransactions

Transaction
amount(thousandsof yen)Account

Period-end
balance(thousandsof yen)Property
management
contract

291,076

Operatingaccounts
payable58,341

RelationshipDirectors, major individual unitholders and other12th Fiscal Period (From February 1, 2016 to July 31, 2016)
Not applicable
13th Fiscal Period (From August 1, 2016 to January 31, 2017)
Not applicable<Notes to asset retirement obligations>
1. Overview of asset retirement obligations
The Investment Corporation has concluded fixed-term lease contracts with certain landlords, and recognizes asset retirement
obligations concerning the duty of restoration upon the expiry of the lease period with regard to some of these assets.
2.

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

3.

Changes in the total amount of asset retirement obligations(Thousands of yen)

12th Fiscal Period(From February 1, 2016
to July 31, 2016)

Increase due to purchase of property, plant andequipment

Adjustment due to passage of time
Balance at end of period- 13 -

Transaction
amount(thousandsof yen)The ratio of voting interest is rounded down to the second decimal place.
In the above amounts, transaction amount does not include consumption taxes, while the period-end balance does include consumption taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.

Balance at beginning of period

60

Details oftransactions

13th Fiscal Period (From August 1, 2016 to January 31, 2017)<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other12th Fiscal Period (From February 1, 2016 to July 31, 2016)
Company’s
name orperson’s
name

Fellow subsidiary companies and other12th Fiscal Period (From February 1, 2016 to July 31, 2016)- 14 -

13th Fiscal Period(From August 1, 2016
to January 31, 2017)－

94,00693,424

－

582

585

94,006

94,59261<Notes to investment and rental properties>
The Investment Corporation owns real estate for rental purposes (including land) in the Tokyo metropolitan area and otherregional areas. The book value, changes during the period and fair value regarding the above real estate for rental purposes are as
follows.

<Notes to per unit information>

Book value

12th Fiscal Period(From February 1, 2016
to July 31, 2016)(Thousands of yen)
13th Fiscal Period(From August 1, 2016
to January 31, 2017)

148,201,895

166,535,573

Changes during period

18,333,677

3,011,232

Balance at end of period

166,535,573

169,546,806

Fair value at end of period

189,828,000

196,314,000(Note 2)

(Note 3)

Profit per unit
(Note 1)
(Note 2)

Balance at beginning of period(Note 1)

Net assets per unit

The book value excludes accumulated depreciation from acquisition cost. The book value does not include construction in progress andconstruction in progress in trust.
Among changes in the book value of real estate for rental purposes that occurred during the 12th Fiscal Period, the principal increase consistedof the acquisition of four properties including COMFORIA SHINJUKU EASTSIDE TOWER and three other properties during the 12th Fiscal
Period totaling ¥19,218,757 thousand, while the principal decrease consisted of depreciation of ¥1,016,916 thousand. During the 13th Fiscal
Period, the principal increase consisted of the acquisition of three properties including COMFORIA SAPPORO SHOKUBUTSUEN and twoother properties during the 13th Fiscal Period totaling ¥3,926,530 thousand, while the principal decrease consisted of depreciation of¥1,048,892 thousand.
The fair value at end of period is the appraisal value or the survey value determined by outside appraisers.

Income and loss related to real estate for rental purposes, etc. for the 12th Fiscal Period (From February 1, 2016 to July 31, 2016)
and 13th Fiscal Period (From August 1, 2016 to January 31, 2017) are listed in “Notes to the Statements of Income.”<Notes to segment information>(Segment information)
Disclosure is omitted because the property leasing business is the Investment Corporation’s sole business, with no reportablesegment subject to disclosure.
(Related information)
12th Fiscal Period (From February 1, 2016 to July 31, 2016)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues
on the Statements of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of
the amount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.

12th Fiscal Period(From February 1, 2016
to July 31, 2016)¥165,801¥4,48913th Fiscal Period(From August 1, 2016
to January 31, 2017)¥165,863¥4,548

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

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

12th Fiscal Period(From February 1, 2016
to July 31, 2016)
2,304,204

13th Fiscal Period(From August 1, 2016
to January 31, 2017)
2,335,864–－

2,304,204

2,335,864

513,243

513,504<Notes to significant subsequent events>
Issuance of new investment units
The Investment Corporation made a resolution concerning the issuance of new investment units at the Board of Directors’
meetings held on January 5, 2017 and January 18, 2017, with the payments from the issuance of new investment units
through public offering completed on February 1, 2017, and the payments from the issuance of new investment units throughthird-party allotment completed on February 22, 2017 as follows. As a result, unitholders’ capital totaled ¥94,557,898,532,
with 563,694 investment units issued as of February 22, 2017.
Issuance of new investment units through public offering(1) Number of investment units to be offered:(2) Issue price (offer price):

47,800 units¥243,252 per unit

(5) Total paid-in amount (issue value):(6) Payment date:¥11,251,785,400
February 1, 2017(3) Total issue amount (offer price):(4) Paid-in amount (issue value):¥11,627,445,600¥235,393 per unit

Issuance of new investment units to be offered through third-party allotment(1) Number of investment units to be offered:(2) Paid-in amount (issue value)(3) Total paid-in amount (issue value):(4) Payment date:(5) Allottee:

2,390 units¥235,393 per unit

¥562,589,270
February 22, 2017

Mizuho Securities Co., Ltd.

13th Fiscal Period (From August 1, 2016 to January 31, 2017)
1. Information about each product and service
Disclosure is omitted because net sales to external customers of a single product/service category account for over 90% of
the operating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues
on the Statement of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of
the amount of property, plant and equipment on the Balance Sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.

62- 15 -- 16 -63

7. Supplementary schedules(iv) Supplementary schedule of other specified assets
Not applicable(i) Supplementary schedule of investment securities
Not applicable(v) Supplementary schedule of investment corporation bonds(ii) Information on contract amount and fair value of derivative transactions and forward exchange contracts
Information on derivative transactions and forward exchange contracts entered into by the Investment Corporation as ofJanuary 31, 2017 is as follows.
(Thousands of yen)Classification

Type

Over-the-counter transactions

Receive floating, pay fixedinterest-rate swap transactions(Note 1)
(Note 2)Contract amount (Note 1)
Maturing after 1
year

Total

Bond name

Issuance
date

Balance at
beginningof current
periodJuly 30,2014

3,000,000––

3,000,000

3,000,000––

3,000,000

55,645,000

55,645,000–

The Investment
Corporation 1st
unsecuredbonds

55,645,000

55,645,000

–

Total

Fair value(Note 2)The contract amount of interest-rate swap transactions is based on the notional principal.
Fair value is evaluated based on the value calculated by the counterparty of the contract using market interest rate, etc. Disclosure of fair value
is omitted for the transactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

(iii) Condensed supplementary schedule of real estate properties(Note 1)
(Note 2)
(Note 3)(Thousands of yen)

Buildings

1,876,339

19,061-

17,687--Structures
Machineryand equipment
Tools,
furniture andfixtures
Land
Buildings in
trust
Structures intrust
Machineryand equipmentin trust
Tools,
furniture andfixtures intrust
Land in trust
Total
Leaseholdrights in trust
Other
Total

21,514

IncreaseduringperiodDecreaseduringperiod--orBalance at end
Depreciation Net balance ataccumulatedof current
end of currentoramortization
periodperiodamortization
at end ofduringcurrent
periodperiod

1,895,400

65,971

21,5201,829,429

17,687365

274

17,322

21,514

1,685

682

1,628

-

1,628

71

71

1,557

2,401,273

4,502

-

2,405,775--

2,405,775

79,162,090

1,857,652-

81,019,743

6,439,898

954,189

74,579,844

1,061,875

23,650-1,085,525

200,657

28,468884,868

1,450,501

21,438-

1,471,940

171,11026,0271,300,829

95,37730,083-

125,460

39,147

9,092

86,312

85,109,790

2,102,108-

87,211,899--

87,211,899

171,196,451

4,060,124- 175,256,576

6,918,907

1,040,326 168,337,668

1,226,269--

1,226,269

17,1318,565

1,209,138

26,903

3,520-

30,423

12,002

2,830

18,421

1,253,172

3,520

-

1,256,692

29,133

11,396

1,227,559(Note) Increases during the 13th Fiscal Period are due primarily to the acquisition of real estate for rental purposes. The details are as follows.

(Thousands of yen)
Property name64

Increase during period

COMFORIA SAPPORO SHOKUBUTSUEN

1,372,709

COMFORIA OGIMACHI

1,551,176

COMFORIA ICHIGAYAYAKUOJI

1,002,645- 17 -

Due after 1 year
to 2 years-

Remarks

Classification
Lender(Note)

Use offunds

Security

0.64000

July 30,2021(Note 2)

UnsecuredDue after 2 years
to 3 years

Due after 3 years
to 4 years--

Due after 4 years
to 5 years-

Balance atBalance at end
Decrease
Increase
Average
beginning ofof current
during period during periodinterest ratecurrent period
period(thousands of (thousands of(%)(thousands of(thousands of
yen)
yen)
(Note 2)yen)
yen)Mizuho Bank, Ltd.

3,570,000--

3,570,000

Sumitomo Mitsui Trust Bank, Limited

3,570,000--

3,570,000

0.53062

The Bank of Tokyo-Mitsubishi UFJ,Ltd.

3,570,000--

3,570,000

0.53062

Sumitomo Mitsui Banking Corporation

1,785,000--

1,785,000

0.53062

Due after 5 years

3,000,000-

1,090,000--

1,090,000

1.41200

Mizuho Bank, Ltd.

1,090,000--

1,090,000

1.41200

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

1,090,000--

1,090,000

1.41200

1,090,000--

1,090,000

1.41200

1,090,000--

1,090,000

1.41200

Sumitomo Mitsui Banking Corporation

550,000--

550,000

1.41200

The Tokyo Tomin Bank, Limited

300,000--

300,000

1.41200

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000--

2,000,000

0.79500

Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

1,350,000--

1,350,000

0.67075

1,350,000--

1,350,000

0.67075

1,350,000--

1,350,000

0.67075

600,000--

600,000

0.67075

Development Bank of Japan Inc.

1,350,000--

1,350,000

0.90487

Mizuho Trust & Banking Co., Ltd.

2,000,000-

2,000,000-

0.37990

The Norinchukin Bank

1,500,000-

1,500,000-

0.37990

The Bank of Fukuoka, Ltd.

1,000,000-

1,000,000-

0.37990

The 77 Bank, Ltd.

500,000-

500,000-

0.37990

The Daishi Bank, Ltd.

500,000-

500,000-

0.37990- 18 -

Maturity
date

Repayment
methodUse offunds

Remarks

March 23,
2019

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

September
29, 2017

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

August 31,
2018

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

March 30,
2018

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

September
30, 2019

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

January 31,
2017

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

0.53062

Development Bank of Japan Inc.

Sumitomo Mitsui Trust Bank, Limited(Note)

Redemption
date(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of January 31, 2017 is as follows:

19,828-

Couponrate (%)

The bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are appropriated to acquire of real estate in trust and repayment of certain existing borrowings.
The total amount of redemption of investment corporation bonds for each year during the five years following the balance sheet date is as shown
below.
(Thousands of yen)Due in 1 year
or less

Long-term loans payable (Note 1)

Property, plant and equipment
Intangible
assetsBalance at
beginning ofcurrent period

Decreaseduringperiod(Note 1)

Accumulated depreciation

Asset type

Increaseduringperiod(Thousands of yen)

Balanceat end ofcurrent
period65Classification
LenderRepayment
methodUse offunds

Classification
Remarks

LenderBalance atBalance at end
Increase
Average
Decrease
beginning ofof current
Repayment
during period during periodinterest ratecurrent period
periodMaturity datemethod(thousands of (thousands of(%)(thousands of(thousands of(Note 2)
yen)
yen)
yen)
yen)

1,000,000--

1,000,000

0.60700

Mizuho Bank, Ltd.

790,000-

790,000-

0.23182

Mizuho Bank, Ltd.

1,000,000--

1,000,000

0.60700

Sumitomo Mitsui Trust Bank, Limited

790,000-

790,000-

0.23182

Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

0.60700

790,000-

790,000-

0.23182

1,000,000--

1,000,000

0.60700

790,000-

790,000-

0.23182

1,000,000--

1,000,000

0.60700

Sumitomo Mitsui Banking Corporation

390,000-

390,000-

0.23182

500,000--

500,000

0.60700

Development Bank of Japan Inc.

360,000--

360,000

0.58340

360,000--

360,000

0.58340

360,000--

360,000

0.58340

360,000--

360,000

0.58340

360,000--

360,000

0.58340

Sumitomo Mitsui Banking Corporation

January 31,
2019

Lump-sum
repayment(Note 5)The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

Unsecured
Unguaranteed

Development Bank of Japan Inc.

1,000,000--

1,000,000

0.88240

Mizuho Bank, Ltd.

Mizuho Bank, Ltd.

1,000,000--

1,000,000

0.88240

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

0.88240

1,000,000--

1,000,000

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

January 31,
2021
0.88240

Lump-sum
repayment(Note 5)The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

Unsecured
Unguaranteed

1,000,000--

1,000,000

0.88240

Sumitomo Mitsui Banking Corporation

200,000--

200,000

0.58340

Sumitomo Mitsui Banking Corporation

500,000--

500,000

0.88240Development Bank of Japan Inc.

420,000--

420,000

0.62460

Development Bank of Japan Inc.

670,000--

670,000

0.60150

Mizuho Bank, Ltd.

420,000--

420,000

0.62460Mizuho Bank, Ltd.

670,000--

670,000

0.60150

Sumitomo Mitsui Trust Bank, Limited

420,000--

420,000

0.62460

Sumitomo Mitsui Trust Bank, Limited

670,000--

670,000

0.60150

420,000--

420,000

0.62460

670,000--

670,000

0.60150

420,000--

420,000

0.62460

670,000--

670,000

0.60150

Sumitomo Mitsui Banking Corporation

230,000--

230,000

0.62460

0.60150Development Bank of Japan Inc.

490,000--

490,000

0.67745

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

350,000--

350,000

June 30,
2020

Lump-sum
repayment(Note 5)The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

Unsecured
Unguaranteed

910,000--

910,000

0.90100

Mizuho Bank, Ltd.

490,000--

490,000

0.67745

Mizuho Bank, Ltd.

910,000--

910,000

0.90100

Sumitomo Mitsui Trust Bank, Limited

490,000--

490,000

0.67745

Sumitomo Mitsui Trust Bank, Limited

910,000--

910,000

0.90100

490,000--

490,000

0.67745

910,000--

910,000

0.90100

490,000--

490,000

0.67745

910,000--

910,000

0.90100

220,000--

220,000

0.67745

450,000--

450,000

0.90100

Development Bank of Japan Inc.

1,570,000--

1,570,000

0.27125

Mitsubishi UFJ Trust and Banking
Corporation

1,570,000--

1,570,000

0.27125

The Tokyo Tomin Bank, Limited

1,000,000--

1,000,000

0.27125

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Shinkin Central Bank

750,000--

750,000

June 30,2022

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

0.30820
March 30,
2018

Lump-sum
repayment

Unsecured
Unguaranteed(Note 1)Development Bank of Japan Inc.

Long-term loans payable

Long-term loans payable (Note 1)

Maturity
date

Development Bank of Japan Inc.

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

The Norinchukin Bank

750,000--

750,000

0.30820

The Bank of Fukuoka, Ltd.

750,000--

750,000

0.30820

Sumitomo Mitsui Trust Bank, Limited

785,000--

785,000

0.27125

Development Bank of Japan Inc.

600,000--

600,000

0.69250Development Bank of Japan Inc.

2,000,000--

2,000,000

0.61950

Mizuho Bank, Ltd.

600,000--

600,000

0.69250

2,000,000--

2,000,000

0.61950

Sumitomo Mitsui Trust Bank, Limited

600,000--

600,000

0.69250

Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Limited

1,000,000--

1,000,000

0.61950

600,000--

600,000

0.69250

Mizuho Bank, Ltd.

1,290,000-

1,290,000-

0.23182

600,000--

600,000

0.69250

The Bank of Tokyo-Mitsubishi UFJ,Ltd.

1,290,000-

1,290,000-

0.23182

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

January 31,
2022

Lump-sum
repayment(Note 5)(Note 5)

Unsecured
Unguaranteed

Sumitomo Mitsui Banking Corporation

300,000--

300,000

0.69250

Sumitomo Mitsui Banking Corporation

640,000-

640,000-

0.23182

Development Bank of Japan Inc.

620,000--

620,000

0.79875

Development Bank of Japan Inc.

-

580,000-

580,000

0.46655

Mizuho Bank, Ltd.

620,000--

620,000

0.79875

Mizuho Bank, Ltd.

-580,000-

580,000

0.46655

Sumitomo Mitsui Trust Bank, Limited

620,000--

620,000

0.79875

Sumitomo Mitsui Trust Bank, Limited-

580,000-

580,000

0.46655-

580,000-

580,000

0.46655

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

620,000--

620,000

January 31,
2023
0.79875

Lump-sum
repayment

620,000--

620,000

0.79875-

580,000-

580,000

0.46655

310,000--

310,000

0.79875

Sumitomo Mitsui Banking Corporation-

290,000-

290,000

0.46655-

900,000-

900,000

0.65518(Note 5)

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

Development Bank of Japan Inc.

620,000--

620,000

1.04200

Development Bank of Japan Inc.

Mizuho Bank, Ltd.

620,000--

620,000

1.04200

Mizuho Bank, Ltd.

-

900,000-

900,000

0.65518

Sumitomo Mitsui Trust Bank, Limited

620,000--

620,000

1.04200

Sumitomo Mitsui Trust Bank, Limited-

900,000-

900,000

0.65518620,000--

620,000

1.04200-

900,000-

900,000

0.65518620,000--

620,000

1.04200-

900,000-

900,000

0.65518

310,000--

310,000

1.04200-

450,000-

450,000

0.65518

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

66

Balance atBalance at end
Increase
Average
Decrease
beginning ofof current
during period during periodinterest ratecurrent period
period(thousands of (thousands of(%)(thousands of(thousands of(Note 2)
yen)
yen)
yen)
yen)

- 19 -

January 31,
2025

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation- 20 -

Use offunds

Remarks

February 28,
Lump-sum2017
repayment(Note 3)(Note 5)

Unsecured
Unguaranteed

March 31,2023

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

August 31,
2023

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

February 29, Lump-sum
2024
repayment(Note 5)

Unsecured
Unguaranteed

March 31,2021

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

March 31,2025

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

June 30,
2017(Note 3)Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

July 31,2024

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

July 31,2026

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed67
Balance atBalance at end
Increase
Average
Decrease
beginning ofof current
during period during periodinterest ratecurrent period
period(thousands of (thousands of(%)(thousands of(thousands of(Note 2)
yen)
yen)
yen)
yen)

Classification

Long-term loans payable (Note 1)

LenderMizuho Trust & Banking Co., Ltd.

-

1,550,000-

1,550,000

0.23000

Mitsubishi UFJ Trust and Banking
Corporation-

990,000-

990,000

0.22704

Mizuho Trust & Banking Co., Ltd.

-2,000,000-

2,000,000

0.46691

The Norinchukin Bank-

1,500,000-

1,500,000

0.46691

The Bank of Fukuoka, Ltd.

-

1,000,000-

1,000,000

0.46691

The 77 Bank, Ltd.

-

500,000-

500,000

0.46691
0.46691

The Daishi Bank, Ltd.

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

68

Total

-

500,000-

500,000

88,060,000

16,180,000

12,270,000

91,970,000

Maturity
date
September
30, 2017(Note 4)
December29, 2017(Note 4)January 31,
2022

Repayment
methodUse offunds

Remarks

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Lump-sum
repayment(Note 5)

Unsecured
Unguaranteed

Long-term loans payable include the current portion of long-term loans payable.
The average interest rate is the interest rate for each loan contract rounded to the fifth decimal place. As for the borrowings hedged by interestrate swap transactions in order to avoid interest rate fluctuation risk, the interest rates reflect the effect of interest-rate swap transactions.
The amount was repaid in full ahead of schedule on August 1, 2016.
The amount was repaid in full ahead of schedule on February 2, 2017.
The use of funds is mainly for the acquisition of real estate in trust and repayment of existing borrowings, etc.
The total amount of repayment of long-term loans payable for each year during the five years following the balance sheet date is as shown
below.
Due in 1 year or
less

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4 years
to 5 years

8,840,000

14,400,000

13,845,000

9,200,000

13,725,000- 21 -

(Thousands of yen)
Due after 5 years
31,960,000

69