English
Translationof JapaneseAuditedReportEnglishTranslationof JapaneseAuditedReport4 th Fiscal Period(Ended July 2012)

Dividend per unit

4,724

yen

Period-on-period+224 yen

4th

4th Fiscal Period ReportFebruary 1, 2012

July 31, 2012

Advance Residence Investment Corporation
3-26 Kanda-nishikicho, Chiyoda-ku, Tokyo
www.adr-reit.com

Financial Highlights
4th Fiscal Period Dividend
Dividend per unit		4,724 yen (+224 yen period-on-period)

The 4th Fiscal Period had 182 days of operation from February 1, 2012 to July 31, 2012.

5th/6th Fiscal Period Dividend Forecast

4,500 yen per unit

The 5th Fiscal Period will have 184 days of operation from August 1, 2012 to January 31, 2013.
The 6th Fiscal Period will have 181 days of operation from February 1, 2013 to July 31, 2013.

Profit Enhancing Equity Financed Property Acquisitions

17

properties 			

Average NOI yield

26,088
4.5

Total acquisition price

5.9%

million yen

Average building age

years

Stronger Financial Base
Average interest rate

1.46%

(down 0.18 percentage points period-on-period)

Average maturity of interest-bearing debts

2.9

years

(up 0.3 years period-on-period)

units
80,000yen
200,000
Advance Residence Investment Corporation unit price
Trading volume
Tokyo Stock Exchange REIT Residential Index
Tokyo Stock Exchange REIT Index

70,000Great East Japan
Earthquake
Mar. 11, 2011

First trading day of new units
in the 2nd public oﬀering
Feb. 2, 2012

ADR added to the FTSE EPRA/NAREIT Global Real Estate
Index Series
Jun. 18, 2012

4th Fiscal Period End
Jul. 31, 2012

190,000
180,000
170,000

60,000Eﬀective dateof merger
Mar. 1, 2010

50,000First trading day of
new units in the
1st public oﬀering
June 29, 2010

160,000
150,000
140,000

40,000130,000
120,000

30,000110,000
20,000100,000
90,00010,00080,00070,000
2
201
31,
Aug
2
201
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Jul
2
201
29,
Jun
012
1, 2
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Ma
12
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r 27
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Jan
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v3
No
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t 31
Oc
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Sep 11
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Aug
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Jul
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(Note) The Tokyo Stock Exchange REIT Index and the Tokyo Stock Exchange REIT Residential Index are re-indexed using ADR’s March 2, 2010 unit closing
price of 112,500 yen as the base.

2

To Our Unitholders
We would like to report on the management results
and performance of Advance Residence Investment
Corporation (ADR) for its 4th Fiscal Period, or the six
months ended July 31, 2012.
During the fiscal period, we pursued the strategy for
expanding our investment assets with an aim tofurther enhance the profitability of the portfolio. The
strategy was newly employed based on the results
ADR achieved in reshaping the portfolio throughasset replacements conducted and completed in theprevious fiscal period.
Specifically, ADR newly acquired 17 properties withraised funds by issuing additional investment units
through public offering, its second such equity
financing operation since the merger. We were able
to purchase these properties at cap rates higher thanthat of the existing portfolio. We also reinforced the
profitability of assets under management andreduced financing costs. These endeavors enabled
ADR to post net income per unit of 4,192 yen for the
fiscal period under review, an increase of 113 yen overthe 4,079 yen achieved for the 3rd Fiscal Period.
This was also 224 yen more than the 3,968 yen in net
income per unit disclosed in the per for mance
forecast made at the beginning of the period.

Accordingly, based on the new dividend payout
policy we announced at the end of the previous fiscal
period, we decided to increase the dividend per unit
for the 4th Fiscal Period to 4,724 yen from the
beginning-of-period forecast of 4,500 yen.
As for the performance of ADR’s investment units,
the price recovered to 152,900 yen per unit as of theend of the 4th Fiscal Period from the 137,500 yen at
the end of the previous
fiscal period. The
increase was partly due
to a positive financial
market environment
during the fiscal period,
such as the additionalmonetary easing
announced by the Bankof Japan.

Kenji Kousaka
Executive Director, Advance Residence Investment Corporation
President, AD Investment Management Co., Ltd.

Basic Management Policy
The basic management policy for ADR is “realization of stable distribution of earnings
over the long term.”
For the medium term, we aim to build a revenue structure that allows ADR to secure
dividend per unit of 4,500 yen within the net income and without resorting to the reservefor dividends generated from the gain on negative goodwill.

During the fiscal period under review, ADR carried out the following measures to achieve the above aim.
1) External growth: Acquired 17 properties and secured preferential negotiation rights concerning acquisitions
2) Internal growth: Maintained high occupancy rate and improved rental income of respective properties
3) Financial strategy: Increased capital through public offering and strengthened financial base
These measures allowed ADR to achieve the following operating results for the 4th Fiscal Period, which
outperformed both the previous period’s results and the beginning-of-period forecast in revenue, income anddividend.
			Operating revenue:
			Operating income:			Ordinary income:			Net income:			
Net income per unit:			Dividend per unit:

12,219 million yen
6,559 million yen
4,612 million yen
4,611 million yen
4,192 yen
4,724 yen3

Results of Operations

1. External Growth
Portfolio Profitability Enhanced through New Acquisitions of 17 Properties
ADR newly acquired 17 properties in the 4th Fiscal
Period.
We made a positive impact on the profitability of
ADR’s portfolio by acquiring properties whichmainly consist of single-type units that are highly
competitive and expected to achieve stableperformance at high yields.

Item

Description

Primary area

Mostly in the Tokyo 23 wards
and major regional cities

Primary type

Mostly single typeNo. of properties
acquired

17 properties

Total acquisition price

26,088 million yen

Appraisal NOI (Note 1) yield
upon acquisition

5.9 %Average building age
upon acquisition

4.5 years(Note 1) NOI represents the rental income obtained by deducting expenses related torent business (excluding depreciation) form revenue from property leasing.

Properties Acquired during the 4th Fiscal Period

P-90 RESIDIA Sasazuka II

C-60 RESIDIA Nakamurabashi

4C-57 RESIDIA Monzennakacho

C-61 RESIDIA Kachidoki

C-58 RESIDIA Ochanomizu

C-62 RESIDIA Bunkyo-Otowa II

S-25 RESIDIA Minami-Gyotoku

S-26 RESIDIA Urayasu II

R-41 RESIDIA Esaka

R-42 RESIDIA Nishijin

C-59 RESIDIA Omori

C-63 RESIDIA Kinshicho III

S-27 RESIDIA Gyotoku

R-43 RESIDIA Tsurumai

C-64 RESIDIA Kamata III

S-28 RESIDIA Kawasaki

R-44 RESIDIA Kobe-Isogami

ADR’s 4th Fiscal Period Portfolio(as of July 31, 2012)

No. of properties
190 properties
Total assets (based on acquisition price)

Number of leasable units
16,127 units
Total leasable floor area

NOI yield*
5.4%
Average amount invested per property

367.9 billion yen

590,672m2

1.93 billion yen

Building Age

Investment Regions(Based on acquisition price)(Based on acquisition price)

Under 1 yr
0％
Major Regional
Cities13%
Tokyo
Metropolitan
Tokyo Central
11%
7 Wards
46%
Tokyo

Over 1 yr
to 5 yrs
18%Over 10 yrs
16％

Average
7.8 yrs

NOI Yield (%)

23 Wards
29%

Over 5 yrs to 10 yrs
65%(By investment region)

23 Tokyo Wards Total 76%
5.0 4.7

5.2

5.6

5.6

6.3

6.0

Under 10 yrs 84%

6.6

Tenant Category

Walking Minutes to Train Station(Based on no. of units)(Based on acquisition price)
Over 15 min
1%Tokyo Central
7 Wards

10 to 15 min
6%

5 to 10 min
37%

Tokyo
23 Wards

Appraisal cap rate

Tokyo
Major Regional
Metropolitan
CitiesStudent
13%

NOI yield to book value

Under 5 min
56%

Corporate
48%

Under 10 minutes 94%

Student 13%

Monthly Rent

Unit Type(Based on no. of units)(Based on no. of units)
Tokyo Central
7 WardsTokyo
23 WardsTokyo
Metropolitan

Single15.1% (2,428 units)
2.5% (404 units)

Large

7.5% (1,215 units)

Dormitory

0.8% (121 units)

Oﬃce/retail
0

2,250

Single type 52.7%
4,500

6,750

Compact
Dormitory

Under 100K yen

21.5% (3,468 units)

FamilySingleLarge

Major Regional
Cities

52.7% (8,491 units)Compact

Individual
39%

9,000
units

FamilyOffice/retail51.4% (8,290 units)

Under 150K yen

21.8% (3,517 units)

Under 250K yen

21.1% (3,401 units)

Under 300K yen

3.0% (482 units)

Under 500K yen

1.8% (296 units)

Over 500K yen

0.9% (141 units)
0

2,250

Units under 250K yen 94.3%
4,500

6,750

9,000
units

*NOI yield is calculated as follows: Annualized NOI ÷ book value at end of period. The annualized NOI is the sum of each property’s actual NOI annualizedin accordance with the number of days of operation.

5

2. Internal Growth
Stable Occupancy Rates
The rental housing market in Japan remainedsolid throughout the 4th Fiscal Period. ADR
achieved a post-merger record high occupancy
rate of 97.0% in March 2012. Its period-averageoccupancy rate also remained at a high 96.2% for
the period.
Major Regional
Cities100%

Tokyo 23 Wards

Since the merger, ADR’s portfolio has maintained
a high occupanc y. Going for ward, we w ill
continue to place priority in our leasing activities
on maintaining the high occupancy rate, so that
we may further improve the profitability of ourportfolio.
Period End Occupancy of Portfolio

Tokyo Metropolitan Area

95.9%

98%

95%
93%

Record high occupancy since merger

97.0%

Tokyo Central 7 Wards

90%
4th Fiscal Period
Average Occupancy

88%

96.2%

85%
11 011 011 011 011 011 012 012 012 012 012 012 12011 011 011 011 011
010 010 010 010 10 010 010 010 010 010 011
r. 2 pr. 2 ay 2 un. 2 Jul. 20 ug. 2 ep. 2 ct. 2 ov. 2 ec. 2 Jan. 2 Feb. 2 ar. 2 pr. 2 ay 2 Jun. 2 Jul. 20 ug. 2 ep. 2 Oct. 2 ov. 2 ec. 2 Jan. 2 eb. 2 ar. 2 pr. 2 ay 2 un. 2 Jul. 20
A
M
S
J
D
A
M
F
A
J
M
O
N
A
M
S
M
D
A
Ma
N

Rents Bottomed Out
Rents of our properties continued to decrease asa whole but, when excluding the impact of
renewals of major rent-guarantee type contracts,
the rate of decrease has greatly decelerated.

In particular, rents upon tenant replacement havestarted to turn upwards for properties located in
the Tokyo metropolitan area and major regional
cities. This suggests that rents have mostly
bottomed out.

Decrease in Leasing-Related Expenses
Advertising Expenses
ReducedAdvertisingexpensesmonths
1.20

1.10

1.00

1.14

Key Money Income
Increased

1.16

1.17

1st FP 2nd FP 3rd FP

1.11

4th FP－

months
0.75

Key
money

0.50

0.62

0.25
0

0.30

0.35

0.37

1st FP 2nd FP 3rd FP

Even though rents may have bottomed out, there
are no signs that an upward trend has begun.
Under such a situation, the high occupancy rate
helped ADR fur ther reduce leasing-related
expenses (increase the key money income andreduce advertisements and other expenses) of its
properties.

6

Leasing-Related Expenses Decreased
Signiﬁcantly in 4th Period

4th FP

Leasingrelated expenses

months
0.9

＝

0.6

0.84

0.81

0.80
0.48

0.3
0

1st FP 2nd FP 3rd FP

4th FPIn the 4th Fiscal Period, the average number ofmonths of key money income increased 0.3
months period-on-period to 0.6 months, whileleasing-related expenses were reduced with theaver age number of months of adver tisingexpenses decreasing to 1.1 months.

Cost Reductions Achieved by Leveraging Economies of Scale
For other property operating expenses, ADR has
been pursuing further cost efficiency since themerger by leveraging the economies of scale withan aim to enhance profitability. During the 4th

Fiscal Per iod, we achieved annualized cost
reductions totaling 38 million yen, bringing theaccumulated annualized reductions since themerger to 235 million yen.
(unit: million yen/ year)

1st FP

Cost reductions

2nd FP- 104

3rd FP- 35

4th FP
- 57

Total
- 38

- 235

Upgrades and Renovations
Competitiveness of proper ties is generally
believed to decrease in accordance with thebuilding age. At ADR, however, we work tomaint ain and enhance competitiveness bysystematically conducting upgrades andrenovations on top of daily maintenance andmanagement of buildings. The photos below are

examples of such work implemented in the fiscal
period.
We will continue our efforts to maintain andexpand earnings by conducting such construction
work in a systematic way in each fiscal period.

Value-Enhancement of Individual Units at S-19 RESIDIA Kichijoji

BeforeReplacement ofwashstand facilities

Remodeling ofJapanese-style rooms
into Western-style
rooms

After

7

3. FinancePublic Offering Carried Out
ADR issued additional investment units throughpublic offering in the 4th Fiscal Period, its second
such equity financing since the merger.
The funds raised through the public offering
reduced ADR’s interest-bear ing debt ratio,
securing additional capacity for debt financing toacquire properties, and ADR successfully acquired
17 high yielding proper ties that should help
enhance the profitability of the portfolio.
As a result, net income per unit for the 4th Fiscal
Period surpassed the previous period’s results aswell as the beginning-of-period performance
forecast.
The table to the right shows the overview of the
public offering.

Item
Date of announcement on
public offering

January 12, 2012

Number of investment
units offered (Note 2)

120,000 units in total

Issue price

133,770 yen per unit

Paid-in amount

129,379 yen per unit

Payment deadline

February 2012

Total paid-in amount

15,525 million yen

Use of procured funds

Fund new property
acquisitions(Note 2) ‌The figure includes the investment units issued by way ofthird-party allotment. The total number of investment units
issued and outstanding after the public offering is 1,100,000
units.

R-44 RESIDIA Kobe-Isogami

8

Description

Financial Costs Reduced and Financial Stability Enhanced
Changes
Changesin in
Average
AverageBorrowing
Borrowing
Interest
Interest
Rate
Rate

Changes
Changesin in
Average
Average
Remaining
Remaining
Term
Term
toto
Maturity
Maturity

Reduction
Reductionin borrowing
in borrowinginterest
interest
raterateachievedachieved

LongerLongerremainingremaining
term
term
of interest-bearing
of interest-bearing
debts
debts
achievedachieved

2.0％
2.0％

4.04.0yrsyrs

1.75
1.75

1.74
1.74
1.66
1.66

2.85
2.85
2.52
2.52

1.63
1.63
1.46
1.46

1.5％
1.5％

1.83
2.02.0yrsyrs 1.83

1.71
1.71
1.39
1.39

1.0％
1.0％

Up to
Upand
to andat merger
at merger
1st FP
1st FP

2nd2ndFP FP

3rd 3rd
FP FP

0.00.0yr yr

4th 4th
FP FP

Up to
Upand
to andat merger
at merger
1st FP
1st FP

2nd2ndFP FP

3rd 3rdFP FP

4th 4thFP FP(Note) ‌Calculations are made on the assumption that the entirebalance of the borrowings are repaid in lump sums on the final
repayment dates, including the amortized loans.

Since the merger, ADR has worked to reduce
financial costs and enhance financial stability.
In the 4th Fiscal Period, ADR again achieved alonger remaining term of interest-bearing debts
as well as reduced financial costs. Moreover, we
worked to establish a stable position for fundprocurement through such measures asincreasing fixed interest rate debts, establishingcommitment lines with consideration given to
diversification of debt maturities, continuously
issuing investment cor poration bonds, andexpanding lending financial institutions.

Changes in Loan-to-Value (LTV)(Ratio of Interest-Bearing Liabilities to Total Assets)
Stably remained within guideline
range since 1st Fiscal Period end

65.0％

61.0
60.0％
Guideline range of LTV at 50-55%

55.0％

52.4

50.0％

45.0％

Up to and at merger 1st FP

54.6

53.5

2nd FP

53.7

3rd FP

4th FP

Diversification of Maturities of Interest-Bearing Liabilities
Reﬁnance in 5th period(agreement concluded in 4th period)
Loans (borrowed in 4th period)
Bonds (issued in 4th period)

Repayment amount diversiﬁed to below credit limit for each periodbillion yen

Existing loans

40

Existing bonds

9.0
30

21.7

Credit limit:

9.4

20.0

billion yen
Commitment line

20

1.5
19.5

10

12.0
0

4th FP
Jul. 2012

16.4

2.5

9.4
5th FP
Jan. 2013

6th FP
Jul. 2013

4.3

3.0

7th FP
Jan. 2014

14.5
8th FP
Jul. 2014

11.6
9th FP
Jan. 2015

6.0

3.0

4.0
2.3

9.0

10th FPJul. 2015

11th FPJan. 2016

11.9
12th FPJul. 2016

11.0
8.0
13th FPJan. 2017

4.0
11.9
14th FPJul. 2017

9.2
6.0
0.9

6.4

6.5
2.0

15th FPJan. 2018

16th FPJul. 2018

17th FPJan. 2019

9.0
2.7
18th FPJul. 2019*The above table shows diversiﬁcation of maturity as of July 31, 2012.
*Calculations are made on the assumption that the entire balance of the borrowings are repaid in lump sums on the ﬁnal repayment dates, including the amortized loans.

9Outlook for the 5th Fiscal Period

1. Management Environment Outlook
Financial Market
The financial market remains unstable due to suchfactors as the European sovereign debt crisis. But
for the Tokyo Stock Exchange REIT Index, it hasgone up from the end of the previous fiscal
period, partly due to the impact of the purchaseof J-REIT units by the Bank of Japan. Furthermore,
the financing environment for J-REITs remains
favorable with the continuing low interest rates
due to the lax monetary policy and low capitaldemand from other businesses.

Real Estate Transaction Market

Rental Housing Market

A lthough there are new residential rent alproperties being developed, it is not yet strong
enough to alleviate the shortage of properties
available in the transaction market. Meanwhile,the number of transaction participants is on an
upward trend. Therefore, the competition for
acquiring blue-chip properties remains tight.

People continue to flow into central Tokyo, theTokyo Metropolitan Area and some of the major
regional cities. With a relatively limited supply of
new properties, leasing demand for properties
owned by J-REITs remains strong.

S-20 Pacific Royal Court Minato Mirai Ocean Tower

102. Management Policies and Challenges
To realize our goal of distributing stable earnings in the long-term, under the aforementioned management
environment, we will implement the following measures.

External GrowthInternal Growth

Although conditions for acquiring properties
remain difficult, we aim to achieve external
growth without missing opportunities to acquire
high yielding properties by utilizing diverse meansof sourcing. These include the supply of
properties from sponsors, direct sourcing fromthe open market based on receiving ample
transaction information, and arrangement ofbridge funds (Note 3).

We will continue to place priority in our leasing
activities on maintaining occupancy rates. For
properties with stable rent and high occupancy,
we will seek to increase earnings by demanding
more key money and reducing advertising andother leasing-related expenses. As for high-rent
properties targeting “Expats,” flexible rent terms
will be applied to stabilize earnings.

(Note 3) A bridge fund generally refers to a real estate fund that
temporarily invests in properties which ADR hopes to acquirein the future. By obtaining rights of first refusal for theproperties, ADR would be able to acquire the properties at amore convenient timing.

We will also continue to implement upgrades,renovations and other measures at properties inaccordance with their building age, in an effort tomaintain and enhance their competitiveness.

Financial Strategy

Payout Policy

Given the cur rent favorable financing
environment, we will continue our efforts to
reduce financial costs, increase fixed interest ratedebts, and lengthen and diversify debt maturities,
to achieve our goal of realizing stable distributionof earnings over the long term.

Under the new payout policy we announced in
Januar y 2012, we will continue to stabilize
dividends by using the reserve for dividends, andincrease dividends if we judge the performanceof the fiscal period exceeded expectations.

In the 5th Fiscal Period, a relatively large amountof loans and investment corporation bonds withrelatively high interest rates will mature. We
expect our net non-operating income to further
improve and our financial base to be further
reinforced through the refinancing of thesedebts.

Specifically, we will consider the possibility ofincreasing the dividend when the earnings perunit is better than the initial guideline forecast
published in the previous fiscal period’s “kessan
tanshin” (a Japanese preliminary financial report),by comprehensively considering such factors as
rent trends and the occupancy rate of the entire
portfolio, amount of cash reserves, level of LTV,
financing costs and outstanding amount ofreserve for dividends.

11

I. Asset Management ReportManagement’s Discussion and Analysis
1. Summary of Selected Financial Data
Fiscal period
units

Operating period

Operating Total revenues
results(Rental revenue)(Gain on real estate sales)
Total operating expenses(Rental business expenses)(Loss on real estate sales)(Impairment loss)
Operating income
Ordinary income
Net income
Balance
Total assets
sheetInterest‐bearing liabilities
figures
Net assets
Paid‐in Capital
Per unit
Total dividends
figures
Payout ratio
Total number of units issued and outstanding
Net assets per unit
Net income per unit
Dividend per unit
Dividend from earnings per unit
Dividend in excess of earnings per unit
Annualized dividend yield
Financial Return on investment
indicators
Return on investment (market capitalization)
FFO per unit
Annualized
FFO multiple
Ratio of ordinary income to total assets
Annualized
Ratio of net assets to total assets
Ratio of net income to equity
Annualized
Ratio of interest‐bearing liabilities to total assets
DSCR
Net income before interest and depreciation
Interest expenses
NOI from property leasing
Annualized NOI yield
Depreciation and amortization
Unit price at end of period

1st Fiscal
Period

2nd Fiscal
Period

3rd Fiscal
Period

4th Fiscal
PeriodMarch 1, 2010
February 1, 2011
August 1, 2011 February 1, 2012
to January 31, 2011 to July 31, 2011 to January 31, 2012 to July 31, 2012

million yen

20,906

11,345

11,25912,219amillion yen

20,881

11,345

11,252

12,193bmillion yen

24

-

-

-

million yen

13,491

7,892

5,275

5,660
4,551

c

million yen

7,641

4,199

4,202

d

million yen

2,940

2,000

7

-

e

million yen

567

739

-

-

million yen

7,414

3,453

5,984

6,559

million yen

3,414

1,465

3,998

4,612

million yen

46,738

1,404

3,997

4,611

h

million yen

355,990

349,158

356,891

384,091i

million yen

186,390

186,639

195,002206,359jmillion yen

164,458

157,827

157,428

173,155k

million yen

64,56164,56164,56180,087lmillion yen

8,085

4,410

4,410

5,196

l/g

%

17.3

313.9

110.3

112.7

m

units

980,000

980,000

980,000

1,100,000

j/m

yen

167,814161,048

160,640

157,413yen

52,673

1,433

4,079

4,198

yen

8,250

4,500

4,500

4,724

yen

8,250

4,500

4,500

4,724

yen

-

-

-

-

(Note 4)

%

5.2

5.6

6.5

6.2
4.7

f
g

(Note 2)

(Note 2, 3)

l/m(g+q)/(k+i)(Note 4)

%

21.7

2.6

4.5

(g+q)/(m×r+i)(Note 4)

%

15.3

1.9

3.5

3.6

(g-b+d+e+q)/m(Note 2)yen

54,879

6,161

6,025

6,075

n

(Note 2, 4)

yen

59,43812,425

11,953

12,184

times

2.9

13.1

11.5

12.5

(Note 5)

%

1.0

0.4

1.1

1.2

(Note 4)

%

1.0

0.8

2.2

2.5

%

46.2

45.2

44.1

45.1

(Note 6)

%

36.8

0.9

2.5

2.8

(Note 4)

%

39.8

1.8

5.0

5.6

%

52.4

53.5

54.6

53.7

r/n
f/h

j/h
g/j

i/h
o/p

times

17.1

3.0

4.6

5.3

o

million yen

53,425

4,912

7,525

8,241

million yen

3,126

1,614

1,627

1,558

(Note 7)

million yen

16,799

9,038

8,949

9,711

(Note 4, 8)

%

5.3

5.3

5.2

5.4

(Note 9)million yen

3,559

1,893

1,900

2,071

yen

172,300

162,200

137,500

152,900

p
a-c+q

q
r

Notes 1.‌Total revenues do not include consumption taxes. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the firstdecimal place. The same applies for the rest of this report unless otherwise specified.
2. The net income for the 1st Fiscal Period operating period includes 43,281 million yen in one-time recording of gain on negative goodwill as extraordinary
income.
3. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
4. In annualizing, the annualized figures are calculated based on 1 year being 365 days, with accounting calculation periods of 337 days for the 1st Fiscal Period,
181 days for the 2nd Fiscal Period, 184 days for the 3rd Fiscal Period and 182 days for the 4th Fiscal Period.
5. Ratio of ordinary income to total assets = Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
6. Ratio of net income to equity = Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
7. In the calculation of NOI from property leasing, the added depreciation and amortization is limited to what is included in rental business expenses.
8. Annualized NOI yield = Annualized NOI ÷ Property acquisition prices.
(The annualized NOI is the sum of per property NOI annualized by taking into account the actual number of days of operation for each property.)
9. Depreciation and amortization includes depreciation and amortization of intangible assets in addition to depreciation of property, plant and equipment.

12

2. Investment Environment and Operating Performance
During the fiscal period under review, ADR carried out the following measures under its basic management policy of“realization of stable distribution of earnings over the long term.”
1) External growth: acquired 17 properties and secured preferential negotiation rights for acquisitions
2) Internal growth: maintained high occupancy rate and improved rental income at respective properties
3) Financial strategy: increased capital through public offering and strengthened financial base
These measures allowed ADR to achieve the following operating results for the 4th Fiscal Period, which
outperformed the previous period’s results and the beginning-of-period forecast (Note 1) in revenue, income anddividend.
Operating revenue			
Operating income				Ordinary income				Net income				Net income/unit (Note 2)			
Dividend per unit 				12,219 million yen
6,559 million yen
4,612 million yen
4,611 million yen
4,192 yen
4,724 yen

As net income per unit surpassed the beginning-of-period forecast of 3,968 yen by 224 yen, ADR decided to increase
the dividend per unit for the period to 4,724 yen, up 224 yen from the initial forecast, based on the new dividend
payout policy.
Notes 1. ‌The beginning-of-period forecast refers to the earning forecasts for the 4th Fiscal Period disclosed in the “Brief Summary of Kessan Tanshin” for the Third
Fiscal Period dated March 16, 2012.
2. Net income per unit is calculated by dividing net income by the number of units issued and outstanding as of the end of the fiscal period.

3. Future Management Policies and Challenges
We will continue efforts to realize external growth and internal growth as well as implement our financial strategy inline with the policies described below for “realization of stable distribution of earnings over the long term,” our basic
management principle.
1) External growth
Although the environment for property acquisitions remains difficult, we aim to achieve external growth without
missing any opportunity to acquire high-yielding properties. This will be accomplished through diverse means ofsourcing, including direct sourcing from the open market based on garnered trading information and utilizing bridgefunds, on top of acquiring properties from sponsors.
2) Internal growth
We will continue to place priority in our leasing activities on maintaining occupancy rates. For properties with stablerents and high occupancy, efforts will be made to improve rent levels and key money income as well as reduce
advertising and other expenses in recruiting tenants, to maintain and expand property revenues. For high-rent
properties mainly targeting “Expats,” our focus is to stabilize revenues through flexible rent setting.
We will also keep working to maintain and enhance the competitiveness\ of our properties through continuous
implementation of upgrades and large-scale renovations, etc. in accordance with their age.
3) Financial strategy
Given the favorable financing environment, we will continue efforts to reduce financial costs, increase fixed interest
rates debts, and extend and diversify debt maturities, as we did during the 4th Fiscal Period, to achieve our goal of
realizing stable distribution of earnings over the long term.
In the 5th Fiscal Period, a relatively large amount of loans and investment corporation bonds with relatively highinterest rates will mature. We expect our net non-operating income to further improve and our financial base to befurther reinforced through the refinancing of these debts.
13

I. Asset Management Report

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

Description

Number of units issued andoutstanding (units)

Paid‐in capital (million yen)

Increase

Increase

Balance

Notes

Balance

March 1, 2010

Consolidation‐type merger

722,306

722,306

36,26236,262(Note 1)

June 28, 2010

Public offering

240,000

962,306

26,35562,618(Note 2)

July 30, 2010

Third‐party allotment

17,694980,000

1,943

64,561(Note 3)February 1, 2012

Public offering

110,000

1,090,000

14,23178,793(Note 4)

February 29, 2012

Third‐party allotment

10,0001,100,000

1,293

80,087(Note 5)

Notes 1. ‌ADR was established through the consolidation‐type merger between former Advance Residence Investment Corporation (the “former ADR”) and Nippon
Residential Investment Corporation (NRI) on March 1, 2010. Upon its establishment, ADR allotted and delivered 3 ADR units per 1 former ADR unit andallotted and delivered 2 ADR units per 1 NRI unit.
2. ‌ADR issued new units through public offering at an issue price of 113,684 yen (issue amount: 109,816 yen) per unit to procure funds for new property
acquisitions as well as partly funding repayment of loans and redemption of investment corporation bonds.
3. ‌ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at an issue amount of 109,816 yen per unit to procure
funds for new property acquisitions as well as partly funding repayment of loans and redemption of investment corporation bonds.
4. ‌ADR issued new units through public offering at an issue price of 133,770 yen (issue amount: 129,379 yen) per unit to procure funds for new property
acquisitions and for other purposes.
5. ‌ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at an issue amount of 129,379 yen per unit to procure
funds for new property acquisitions and for other purposes.

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

1st Fiscal Period

2nd Fiscal Period

3rd Fiscal Period

4th Fiscal Period

Fiscal period end

Fiscal period ended
January 2011

Fiscal period ended
July 2011

Fiscal period ended
January 2012

Fiscal period ended
July 2012

High

185,300 yen

173,500 yen

162,500 yen

159,400 yen

Low

111,500 yen

139,900 yen

134,000 yen

135,800 yen

5. Distribution to Unitholders
In accordance with the distribution policy provided in Article 32, Item 1 of ADR’s Articles of Incorporation, we shalldeliver dividends in excess of an amount equivalent to 90% of the amount of ADR’s earnings available for dividends as
stipulated in Article 67-15 of the Act on Special Measures Concerning Taxation. In addition, ADR may use the reservefor dividends in order to provide stable dividend payouts going forward, and shall investigate an increase in dividends
in accordance with the performance when it has achieved good operating results.
Based on the policy above, ADR decided that the unappropriated retained earnings of 4,611,435 thousand yen plus
reversal of reserve for dividends of 584,965 thousand yen to arrive at 5,196,400 thousand yen will be distributed as
dividends of earnings, and declared a dividend per unit of 4,724 yen.
(thousand yen)

Fiscal period

1st Fiscal Period

2nd Fiscal Period

3rd Fiscal Period

4th Fiscal Period

Operating period

From: Mar. 1, 2010
To: Jan. 31, 2011

From: Feb. 1, 2011
To: July 31, 2011

From: Aug. 1, 2011
To: Jan. 31, 2012

From: Feb. 1, 2012
To: July 31, 2012

Total amount of unappropriatedretained earnings
Accumulated amount of earnings

14

46,738,646

1,404,952

3,997,454

4,611,435

38,653,653

35,648,605

35,236,060

34,651,095

Total amount of dividends of cash

8,085,000

4,410,000

4,410,000

5,196,400(Dividend per unit)
Of which, total amount of dividendsof earnings(Dividend of earnings per unit)
Of which, total amount of capital
reimbursement(Capital reimbursement per unit)(8,250 yen)

(4,500 yen)

(4,500 yen)

(4,724 yen)

8,085,000

4,410,000

4,410,000

5,196,400(8,250 yen)

(4,500 yen)

(4,500 yen)

(4,724 yen)

-

-

-

-

( - yen)( - yen)( - yen)( - yen)6. Significant Subsequent Events
Issuance of Investment Corporation Bonds
Based on the “General Resolution on Bond Issuance” resolved by the Board of Directors’ Meeting held on April 26,
2012, ADR issued investment corporation bonds on September 12, 2012 under the following terms and conditions.
1) ADR Unsecured Bond #17 (with Pari Passu clause among specified investment corporation bonds)
Total amount of bonds : 8 billion yen
Issue price: 100 yen par value of 100 yen for each bondCoupon rate

: 0.87%

Collateral/Guarantee: No collateral or guarantee

Redemption date: ‌ADR will redeem the entire amount on September 12, 2017. The bonds may bepurchased and cancelled at any time on and after the date following the issue dateunless otherwise stipulated by the depository.

Coupon payment dates: March 12 and September 12 every year
Use of proceeds: ‌The proceeds will be used to redeem the Nippon Residential Investment Corporation’s
10th Series Unsecured Investment Corporation Bond that is due on September 13, 2012
(4,800 million yen) and the Nippon Residential Investment Corporation’s 3rd Series
Unsecured Investment Corporation Bond that is due on September 24, 2012 (9,700
million yen).

2) ADR Unsecured Bond #18 (with Pari Passu clause among specified investment corporation bonds)
Total amount of bonds : 4 billion yen
Issue price: 100 yen par value of 100 yen for each bondCoupon rate

: 1.23%Collateral/Guarantee: No collateral or guarantee

Redemption date: ‌ADR will redeem the entire amount on September 12, 2019. The bonds may bepurchased and cancelled at any time on and after the date following the issue dateunless otherwise stipulated by the depository.

Coupon payment dates: March 12 and September 12 every year
Use of proceeds: ‌The proceeds will be used to redeem the Nippon Residential Investment Corporation’s
10th Series Unsecured Investment Corporation Bond that is due on September 13, 2012
(4,800 million yen) and the Nippon Residential Investment Corporation’s 3rd Series
Unsecured Investment Corporation Bond that is due on September 24, 2012 (9,700
million yen).

C-57 RESIDIA Monzennakacho

15

I. Asset Management Report

Overview of the Investment Corporation
1. Paid-in Capital
The following are the total number of units authorized, total number of units issued and outstanding, paid-in capitaland number of unitholders as of July 31, 2012 as well as at the end of preceding fiscal periods.
Fiscal period

1st Fiscal Period

2nd Fiscal Period

3rd Fiscal Period

4th Fiscal Period

Fiscal period end

Fiscal period ended
January 2011

Fiscal period ended
July 2011

Fiscal period ended
January 2012

Fiscal period ended
July 2012

Total number of units authorized

6,000,000 units

6,000,000 units

6,000,000 units

6,000,000 units

Total number of units issued andoutstanding

980,000 units

980,000 units

980,000 units

1,100,000 units

64,561 million yen

64,561 million yen

64,561 million yen

80,087 million yen

22,882 persons

21,293 persons

21,570 persons

23,147 persons

Paid‐in capital (Note)
Number of unitholders(Note) The paid-in capital on the balance sheets as of July 31, 2012 includes capital surplus of 53,220 million yen.

2. Major Unitholders
The following are the major unitholders as of July 31, 2012.

Name

Address

Unitholding(units)% share of issued
and outstanding (%)(Note)

Japan Trustee Services Bank, Ltd.
(Trust Account)

1‐8‐11 Harumi, Chuo‐ku, Tokyo

197,292

17.93

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

2‐2‐2 Otemachi, Chiyoda‐ku, Tokyo

69,088

6.28

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

Harumi Island Triton Square Office Tower Z,
1‐8‐12 Harumi, Chuo‐ku, Tokyo

63,108

5.73

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

2‐11‐3 Hamamatsu‐cho, Minato‐ku, Tokyo

49,837

4.53

Nomura Bank (Luxembourg) S.A.

BATIMENT A, 33, RUE DEGASPERICH, L-5826, LUXEMBOURG

39,9203.62

ITOCHU Corporation

2‐5‐1 Kita‐Aoyama, Minato‐ku, Tokyo

34,800

3.16

JPMorgan Chase Bank 385174

125 LONDON WALL, LONDON, EC2Y 5AJ,
UNITED KINGDOM

16,356

1.48

Mizuho Trust & Banking Co., Ltd.

1‐2‐1 Yaesu, Chuo‐ku, Tokyo

13,826

1.25

State Street Bank and Trust Company

P.O. BOX 351 BOSTON MASSACHUSETTS
02101 U.S.A.

12,893

1.17

Trust & Custody Services Bank, Ltd.
(Money Trust Tax Account)

Harumi Island Triton Square Office Tower Z,
1‐8‐12 Harumi, Chuo‐ku, Tokyo

12,694

1.15

509,814

46.34

Total

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

16

3. Directors and Independent Auditor(1) The executive director, supervisory directors and independent auditor as of July 31, 2012 are as follows.

Title

Name

Total amount ofcompensation for each
title during applicable
operating period(thousand yen)Primary concurrent positions

Executive director

Kenji Kousaka (Note 1)

President, AD Investment Management Co., Ltd.

Supervisory director

Hidejiro Matsuda

Supervisory director

Yoshiki Oshima

Independent auditor

Deloitte Touche Tohmatsu LLC- (Note 2)

President, Hidejiro Matsuda CPA Office

1,200

Auditor, TYO Inc.
President Akasaka, Law Office L.P.C.

1,200
21,870 (Note 3)

Notes 1. ‌Kenji Kousaka concurrently serves as president of ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM), and executive directorof ADR. The Commissioner of the Financial Services Agency was notified of the concurrent holding of positions on March 5, 2008 pursuant to the provisionsof Article 31-4, Paragraph 4 of the Financial Instruments and Exchange Act (Article 31-4, Paragraph 1 of the said Act as of the date of this document) prior to
its revision made by the provisions of Article 1 of the Act for Partial Revision of the Financial Instruments and Exchange Act, Etc. (Act No. 65 of 2008).
2. The executive director does not receive compensation from ADR.
3. ‌The compensation paid to the independent auditor includes compensation for services other than those prescribed in Article 2, Paragraph 1 of the Certified
Public Accountants Act (2,870 thousand yen).

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

4. A
 sset Management Company, Asset Custodian and Administrative AgentsThe following is the list of the asset management company, asset custodian and administrative agents as of July 31,
2012.
Delegation

Name

Asset management company

AD Investment Management Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank Limited (Note 1)

Administrative agent(management of register ofunitholders, etc.)

Administrative agent(management of special accounts)

Administrative agent(accounting, taxation, institutional
operations, etc.)

Mizuho Trust & Banking Co., Ltd.
Mizuho Trust & Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Trust Bank, Limited (Note 1)
The Bank of Tokyo‐Mitsubishi UFJ, Ltd.
Mizuho Corporate Bank, Ltd.

Administrative agent(administration for investment
corporation bonds)

Mizuho Securities Co., Ltd.
JPMorgan Securities Japan Co., Ltd.
Daiwa Securities Co., Ltd. (Note 2)
Sumitomo Mitsui Trust Bank Limited (Note 1)

Notes 1. ‌The Sumitomo Trust & Banking Co., Ltd. changed its trade name to Sumitomo Mitsui Trust Bank, Limited upon its merger with The Chuo Mitsui Trust andBanking Company, Limited and Chuo Mitsui Asset Trust and Banking Company, Limited on April 1, 2012.
2. Daiwa Securities Capital Markets Co., Ltd. merged with Daiwa Securities Co., Ltd. on April 1, 2012 with the latter serving as the surviving company.

17

I. Asset Management Report

Assets Under Management
1. Composition of the Investment Corporation’s Assets
Type of asset

3rd Fiscal Period(as of January 31, 2012)

Investment regions

Total amount held As a percentage Total amount held As a percentage(million yen)of total assets (%)(million yen)of total assets (%)(Note 6)

Real estate intrust (Note 1)

4th Fiscal Period(as of July 31, 2012)(Note 7)(Note 6)(Note 7)

Tokyo Central 7 Wards(Note 2)

91,02925.5

94,563

24.6

Tokyo 23 Wards(Note 3)71,30420.0

82,354

21.4

Tokyo Metropolitan Area

(Note 4)

19,722

5.5

23,931

6.2

Major Regional Cities(Note 5)

16,208

4.5

23,736

6.2

198,26455.6

224,585

58.5

Subtotal
Tokyo Central 7 Wards(Note 2)73,883

20.7

73,551

19.1

Tokyo 23 Wards(Note 3)23,945

6.7

23,831

6.2

Tokyo Metropolitan Area

(Note 4)

16,6374.7

16,470

4.3

Major Regional Cities(Note 5)24,985

7.0

24,816

6.5

139,45139.1

138,669

36.1

290

0.1

441

0.1

Deposits and other assets

18,885

5.3

20,394

5.3

Sum total of total amount of assets

356,891100.0

384,091

100.0

Real estate (Note 1)

Subtotal
Silent partnership equity interests(Note 8)Notes 1. The real estate in trust and real estate are used primarily for apartments.
2. “Tokyo Central 7 Wards” represents the Minato, Chiyoda, Shibuya, Shinjuku, Meguro, Setagaya and Shinagawa Wards of Tokyo.
3. “Tokyo 23 Wards” represents the Tokyo 23 wards other than the Tokyo Central 7 Wards.
4. “Tokyo Metropolitan Area” represents Tokyo (excluding the 23 wards of Tokyo) and Kanagawa, Saitama and Chiba prefectures.
5. “Major Regional Cities” represents cabinet order designated cities and similar cities excluding those in the Tokyo Metropolitan Area.
6. ‌“Total amount held” is based on the amount recorded on the balance sheet (total amount of book value after depreciation in the case of real estate, etc.)
as of the date of closing of accounts, and is rounded down to the nearest million yen.
7. ‌“As a percentage of total assets” is the balance sheet amount of the applicable real estate, etc. expressed as a percentage of the total amount of assets,rounded to one decimal place.
‌
partnership equity interests” owned in the 3rd Fiscal Period is the silent partnership equity interests pertaining to the silent partnership with Godo
8. “Silent
Kaisha RBFA as the operator and the silent partnership with Godo Kaisha RBFA2 as the operator. “Silent partnership equity interests” owned in the 4th
Fiscal Period is the silent partnership equity interests pertaining to the silent partnership with Godo Kaisha RBFA2 as the operator and the silent
partnership with Godo Kaisha RBFA3 as the operator.
9. ‌Amounts less than the specified unit are rounded down and percentages are rounded off. Due to this, the sum total of respective figures does notnecessarily add up to the sum total indicated in the table above. The same applies below unless otherwise specified.

2. Principal Assets Held
The following summarizes the principal assets held by ADR as of July 31, 2012 (the top 10 properties with the highest
book value at the end of the fiscal period).
Name of real estate, etc.

RESIDIA TOWER Meguro‐Fudomae
Pacific Royal Court Minato Mirai Ocean Tower
Park Tower Shibaura Bayward Urban Wing
Motoazabu PlaceRESIDIA Daikanyama-Sarugakucho /Daikanyama Parkside Village
RESIDIA TOWER Roppongi
RESIDIA Nishi-Azabu
RESIDIA TOWER Azabujuban
RESIDIA Mejiro
RESIDIA Nihonbashi-Bakurocho
Total

As a
Occupancy percentage of
rate
total revenue Primary use(%)
from property
leasing (Note)
100.0
3.8 Apartment

Book value(million yen)

Leasable
floor area(m2)

Leasedfloor area(m2)

16,04721,019.77

21,019.77

13,28726,082.53

25,760.33

98.8

4.7 Apartment

9,371

13,490.67

13,031.87

96.6

2.5 Apartment

8,349

7,382.62

6,010.20

81.4

1.6 Apartment

7,306

5,977.18

5,418.40

90.7

1.5 Apartment

6,918

5,978.20

5,513.04

92.2

1.4 Apartment

6,657

7,078.64

6,691.92

94.5

1.7 Apartment

6,121

7,207.18

6,482.57

89.9

1.4 Apartment

6,102

13,069.70

12,737.07

97.5

1.9 Apartment

5,380

8,502.12

8,502.12

100.0

85,543

115,788.61

111,167.29-

1.3 Apartment
21.8-(Note) ‌“As a percentage of total revenue from property leasing” is the percentage arrived at by dividing the revenue from property leasing of respective properties
by the total revenue from property leasing of the entire portfolio.

18

3. Real Estate Portfolio
The following are the itemized assets held by ADR as of July 31, 2012.
Location

Property Name of real estate, (indication ofno.
etc.
residential

address)

Type ofownership

3rd Fiscal Period
4th Fiscal Period
Book Estimated(Aug. 1, 2011 ~ Jan. 31, 2012)(Feb. 1, 2012 ~ Jul. 31, 2012)value
atvalue at
As a
As a
Total
Revenue percentage
Revenue percentage
Total
end ofend ofof Occupancy
from
from
number of Occupancy
period number
of
total
of
total
period (million tenants at rate at end property revenue tenants at rate at end property revenue
end of of periodleasingleasingend of of period
from
from
(million
yen)
(%)
(%)
period(thousand property(thousand property
period(tenants) (Note 3)
yen)
yen)
yen)
(Note 1)
leasing (tenants) (Note 3)
leasing(Note 2)

P-2
P-3

RESIDIA Shimazuyama
RESIDIA Nakameguro

Shinagawa-ku,
Tokyo
Meguro-ku,
Tokyo

P-4

RESIDIA SetagayaTsurumaki

Setagaya-ku,
Tokyo

RESIDIA Azabujuban

Minato-ku,
Tokyo
Setagaya-ku,
Tokyo
Chiyoda-ku,
TokyoShibuya-ku,
Tokyo
Setagaya-ku,
Tokyo
Shinagawa-ku,
TokyoShibuya-ku,
Tokyo

P-5
P-7
P-9
P-10
P-13
P-14
P-15

RESIDIA Ikejiriohashi
RESIDIA Kudanshita
RESIDIA Hatagaya
RESIDIA Sakurajosui

P-16

RESIDIA KitaShinagawa
RESIDIA
Yoyoginomori
RESIDIA ShinjukuEast III

P-19

Leopalace
Udagawacho Mansion

Shibuya-ku,
Tokyo

P-21
P-22

RESIDIA Shinjuku-East II
RESIDIA Shinjuku-East

Shinjuku-ku,
TokyoShinjuku-ku,
Tokyo

P-23

RESIDIA KandaIwamotocho

Chiyoda-ku,
Tokyo

P-24
P-25
P-26
P-29
P-30

RESIDIA Azabujuban II

Pianetta Shiodome

Minato-ku,
TokyoShibuya-ku,
Tokyo
Shinagawa-ku,
TokyoShibuya-ku,
Tokyo
Minato-ku,
Tokyo

P-31

RESIDIAKomazawadaigaku

Setagaya-ku,
Tokyo

P-32
P-33
P-34
P-35
P-36
P-37

RESIDIA Yoyogi

RESIDIA Kamiochiai

Shibuya-ku,
TokyoShinjuku-ku,
Tokyo
Setagaya-ku,
Tokyo
Shinagawa-ku,
TokyoShibuya-ku,
TokyoShinjuku-ku,
Tokyo

P-38

RESIDIA HigashiShinagawa

P-39
P-40
P-41
P-42
P-43
P-45
P-47
P-48
P-49
P-50
P-51
P-52

RESIDIA Meguro II

RESIDIA Ebisu
RESIDIA Meguro
RESIDIA Hiroo II

RESIDIA NishiShinjuku
RESIDIA Kyodo

Shinjuku-ku,
Tokyo(Note 4)(%)(Note 4)92.2

86,876

0.8

1

(%)

91.5

86,1901

100.0

47,256

0.4

0.7

1

100.0

47,256

1,158

1

96.4

35,056

0.4

0.3

1

91.9

35,040

0.3

1,949

1,804

1

96.9

1,177

1,190

1

97.8

52,013

0.5

1

93.0

50,6980.4

35,366

0.3

1

100.0

36,279

2,167

2,217

1

0.3

97.7

68,824

0.6

1

93.7

72,591

1,108

1,040

1

0.6

100.0

31,760

0.3

1

92.8

30,866

0.3

1,109

1,080

2,685

2,570

1

96.3

32,258

0.3

1

96.2

33,944

0.3

1

100.0

75,888

0.7

1

100.0

75,888

733

0.6

586

1

97.0

20,099

0.2

1

96.9

19,429

0.2

762

749

1

100.0

25,778

0.2

1

12.5

17,513

0.1

580

613

1

100.0

17,944

0.2

1

100.0

17,944

0.1

1,352

1,450

1

93.9

45,256

0.4

1

90.2

44,762

0.4

922

913

1

93.9

30,608

0.3

1

90.2

29,522

0.2

1,482

1,600

1

99.0

54,720

0.5

1

100.0

56,997

0.5

857

863

1

95.0

28,049

0.2

1

100.0

28,286

0.2

539

554

1

100.0

18,648

0.2

1

97.0

18,8760.2

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

2,563

2,800

1

1,553

1,730

1,184

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust(Note 2)

714

636

1

92.1

20,011

0.2

1

96.6

20,087

0.2

Real estate

1,620

1,660

1

91.7

51,946

0.5

1

98.9

53,6050.4

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

1,903

1,860

1

93.4

60,180

0.5

1

92.8

62,145

0.5

326

339

1

90.3

10,819

0.1

1

77.1

10,744

0.1

321

321

1

100.0

10,839

0.1

1

100.0

10,444

0.1

357

356

1

100.0

11,355

0.1

1

90.0

11,573

0.1

280

280

1

93.8

10,121

0.1

1

100.0

9,474

0.1

Real estate

923

937

1

87.3

33,391

0.3

1

95.7

33,015

0.3

Real estate

2,255

2,330

1

95.3

71,629

0.6

1

98.7

70,8590.6

Real estate

1,154

1,200

1

95.1

40,993

0.4

1

100.0

40,498

0.3

Shinagawa-ku,
TokyoReal estate

2,003

2,100

1

94.2

68,256

0.6

1

95.9

68,997

0.6

Real estate

1,176

1,190

1

92.4

37,054

0.3

1

93.3

36,995

0.3

Real estate

1,296

1,310

1

96.8

38,565

0.3

1

92.0

39,414

0.3

Real estate

1,143

1,140

1

90.8

37,309

0.3

1

95.4

37,1400.3

RESIDIA TOWER
Nogizaka

Meguro-ku,
Tokyo
Minato-ku,
TokyoChiyoda-ku,
TokyoShinjuku-ku,
Tokyo
Shinagawa-ku,
Tokyo
Meguro-ku,
TokyoChiyoda-ku,
Tokyo
Minato-ku,
Tokyo

RESIDIA Akasaka

Minato-ku, TokyoRESIDIA Nishi-Azabu

Minato-ku, TokyoRESIDIA Daikanyama

Shibuya-ku, TokyoRESIDIA Ichigaya

Shinjuku-ku, Tokyo

P-53

RESIDIA RoppongiHinokichokoen

Minato-ku, Tokyo

P-55

RESIDIA TOWER
Meguro-Fudomae

P-56
P-58
P-59
P-60
P-61

RESIDIA Sangenjaya

RESIDIA Ebisu-Minami

P-62

RESIDIA TOWER
Azabujuban

RESIDIA Oimachi
RESIDIA Ebisu II

RESIDIA Toranomon
RESIDIA ShinOchanomizu
RESIDIA Kagurazaka
RESIDIA Oimachi II
RESIDIA Jiyugaoka
RESIDIA Suidobashi

RESIDIA MinamiAoyama
RESIDIA KandaHigashi
RESIDIA HigashiAzabu

Real estate

901

910

1

100.0

30,586

0.3

1

96.3

30,411

0.2

Real estate

1,032

1,090

1

90.6

34,627

0.3

1

100.0

33,9590.3

Beneficiaryinterests in trust

1,027

1,050

1

90.3

34,584

0.3

1

89.4

34,045

0.3

Real estate

2,264

2,320

1

98.6

75,729

0.7

1

94.2

75,0590.6

Real estate

3,590

3,230

1

91.1

96,291

0.9

1

95.5

90,944

0.7

Real estate

1,158

1,150

1

97.7

38,652

0.3

1

95.5

39,2370.3

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

6,657

6,510

1

96.1 210,461

1.9

194.5 206,030

1.7

2,096

1,930

1

90.8

57,949

0.5

1

83.3

58,682

0.5

2,447

2,480

1

98.7

74,713

0.7

1

90.2

75,340

0.6

3,512

3,540

1

92.2 107,540

1.0

195.8 108,312

0.9

Shinagawa-ku,
TokyoReal estate

16,047

16,2001

100.0 480,800

4.3

1100.0 466,873

3.8

Setagaya-ku,
TokyoReal estate

2,691

2,720

1

93.6

84,241

0.7

1

92.6

84,317

0.7

Minato-ku, Tokyo

Real estate

737

498

1

78.5

14,651

0.1

1

88.4

14,742

0.1

Chiyoda-ku, Tokyo

Real estate

1,584

1,610

1

98.4

54,954

0.5

1

96.4

55,9770.5

Minato-ku, Tokyo

Real estate

1,404

1,280

1

88.1

38,195

0.3

1

90.4

39,677

0.3

Shibuya-ku, Tokyo

Real estate

2,000

1,880

1

100.0

53,496

0.5

1

98.3

55,0670.5

Minato-ku, Tokyo

Real estate

6,121

5,400

1

86.8 171,743

1.5

189.9 173,980

1.4

19

I. Asset Management Report

Location

Property Name of real estate, (indication ofno.
etc.
residential

address)

Type ofownership

3rd Fiscal Period
4th Fiscal Period
Book Estimated(Aug. 1, 2011 ~ Jan. 31, 2012)(Feb. 1, 2012 ~ Jul. 31, 2012)value
atvalue at
As a
As a
Total
Revenue percentage
Revenue percentage
Total
end ofend ofof Occupancy
from
from
of Occupancy
of total numberof total
period number
rate
at
end
rate
at
end
tenants
atproperty
propertytenantsatperiod (million
revenuerevenueend of of periodleasingleasingend of of period
from
from
(million(%)(%)
period(thousand property(thousand property
periodyen)(tenants) (Note 3)
yen)
yen)
yen)
leasing (tenants) (Note 3)
leasing(Note 1)
(Note 2)(%)

(Note 2)

(Note 4)

(%)

P-63
P-64
P-65
P-66
P-67
P-68
P-69
P-70

RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,237

1,280

1

98.0

40,511

0.4

1

96.0

39,628

0.3

RESIDIA Nakanobu

Shinagawa-ku,
Tokyo

1,843

1,940

1

96.9

61,165

0.5

1

85.9

60,2890.5

RESIDIA Azabudai

Minato-ku, Tokyo

1,589

1,540

1

93.4

43,985

0.4

1

91.3

44,6000.4

RESIDIA Shibadaimon
II

Minato-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

1,714

1,600

1

97.9

49,956

0.4

1

95.9

48,784

0.4

RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,125

1,130

1

93.6

37,708

0.3

1

92.2

36,904

0.3

RESIDIA Sangenjaya II

Setagaya-ku,
TokyoReal estate

1,261

1,290

1

100.0

41,276

0.4

1

88.6

39,605

0.3

RESIDIA NishiShinjuku II

Shinjuku-ku, Tokyo

Real estate

1,795

1,870

1

88.9

57,092

0.5

1

94.5

58,3000.5

RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

907

895

1

92.5

25,708

0.2

1

96.2

27,4800.2

P-72

RESIDIA MejiroOtomeyama

Shinjuku-ku, Tokyo

954

1,010

1

100.0

33,992

0.3

1

89.5

34,263

0.3

P-73
P-74
P-75

RESIDIA Shibaura

Minato-ku, Tokyo

4,563

4,850

1

93.0 163,398

1.5

193.1 165,289

1.4

RESIDIA Gotenyama

Shinagawa-ku,
Tokyo

RESIDIA Yutenji

Meguro-ku, Tokyo

P-76

Park Tower Shibaura
Bayward Urban Wing

Minato-ku, Tokyo

P-77
P-78
P-79
P-80

Motoazabu Place

Minato-ku, TokyoRESIDIA TOWER
Roppongi

Minato-ku, TokyoRESIDIA Kamimeguro

Meguro-ku, TokyoRESIDIA Yoyogikoen

Shibuya-ku, Tokyo

P-81

Windsor House Hiroo

Shibuya-ku, Tokyo

P-83

RESIDIA DaikanyamaSarugakucho /Daikanyama Shibuya-ku, Tokyo
Parkside Village

Beneficiaryinterests in trust
Beneficiaryinterests in trust

915

801

1

86.7

27,029

0.2

1

100.0

26,9750.2

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

5,192

5,170

1

92.9 150,394

1.3

196.8 153,081

1.3

9,371

9,470

1

94.8 293,779

2.6

196.6 305,261

2.5

8,349

7,090

1

84.7 203,101

1.8

181.4 189,755

1.6Real estate

6,918

5,740

1

88.6 163,787

1.5

192.2 166,902

1.4

863

864

1

92.2

24,775

0.2

1

87.9

26,445

0.2

1,080

749

1

100.0

22,089

0.2

1

100.0

28,662

0.2

1,715

1,410

1

100.0

53,016

0.5

1

91.5

53,2020.4

Beneficiaryinterests in trust

7,306

6,100

1

93.7 179,727

1.6

190.7 184,315

1.5

1,437

Real estate

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Real estate andleasehold rights
to real estate

P-84
P-85
P-86
P-87
P-88

RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,460

1

96.2

39,946

0.4

1

92.3

43,5690.4

RESIDIA Komazawa

Setagaya-ku,
Tokyo

886

1,020

1

100.0

28,095

0.2

1

100.0

28,095

0.2

2,466

2,710

1

95.7

89,190

0.8

1

91.7

93,087

0.8

2,123

2,300

1

100.0

61,234

0.5

1

100.0

61,352

0.5

RESIDIA Yoga

Setagaya-ku,
Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Real estate

1,633

1,620

1

93.7

49,339

0.4

1

91.1

50,2500.4

P-89

RESIDIA TOWER
Nakameguro

Meguro-ku, Tokyo

Real estate

3,493

3,590

1

93.8

90,6880.8

193.6 110,894

0.9

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

3,882

3,830

-

-

-

-

1

91.5

99,368

0.8

1,735

2,020

1

92.8

64,557

0.6

1

85.6

63,000

0.5

2,384

3,040

1

98.1

98,770

0.9

1

97.0

99,161

0.8

1,466

1,560

1

100.0

46,833

0.4

1

100.0

46,846

0.4

1,626

1,770

1

100.0

50,271

0.4

1

100.0

50,255

0.4

1,005

1,160

1

95.6

39,097

0.3

1

93.3

37,152

0.3

955

938

1

96.8

35,670

0.3

1

92.5

35,376

0.3

3,039

3,160

1

97.5

97,4060.9

196.0 102,590

0.8

1,620

1,570

1

97.8

49,766

0.4

1

95.6

48,853

0.4

895

939

1

100.0

30,272

0.3

1

92.6

32,104

0.3

5,213

4,780

1

100.0 136,751

1.2

1100.0 136,763

1.1

3,131

3,180

1

95.6

94,140

0.8

1

95.0

96,397

0.8

1,957

1,740

1

96.8

58,412

0.5

1

96.8

57,926

0.5

4,191

3,810

1

92.1 117,330

1.0

196.3 118,728

1.0

869

770

1

96.5

0.2

1

96.3

0.2

1,841

1,880

1

100.0

56,490

0.5

1

100.0

56,287

0.5

540

565

1

97.9

21,281

0.2

1

97.9

22,539

0.2

342

402

1

96.7

13,566

0.1

1

96.7

15,113

0.1

988

1,030

1

100.0

30,080

0.3

1

100.0

30,0800.2

RESIDIA Shibaura
KAIGANRESIDIA IchigayaYakuoji

Minato-ku, Tokyo
Shinjuku-ku, Tokyo

P-90
C-1
C-2
C-3
C-4
C-5
C-6

RESIDIA Sasazuka II

Shibuya-ku, TokyoRESIDIA
Mitsukoshimae

Chuo-ku, TokyoRESIDIA Kamata

Ota-ku, TokyoRESIDIA Ikebukuro

Toshima-ku,
Tokyo

RESIDIA BunkyoHongo

Bunkyo-ku, TokyoRESIDIA Asakusabashi

Taito-ku, Tokyo

Maison Eclairee Ekoda

Nerima-ku, Tokyo

C-7

RESIDIA UenoOkachimachi
RESIDIA BunkyoHongo II

C-8
C-9
C-10
C-12
C-13
C-15
C-16
C-17
C-18
C-19

20

(Note 4)

Taito-ku, Tokyo
Bunkyo-ku, TokyoRESIDIA Ryogoku

Sumida-ku, TokyoRESIDIA Higashi-Ginza

Chuo-ku, TokyoRESIDIA NihonbashiNingyocho II
RESIDIA OmoriHigashi

Chuo-ku, Tokyo
Ota-ku, TokyoRESIDIA Kinshicho

Sumida-ku, TokyoRESIDIA Negishi

Taito-ku, TokyoRESIDIA Shinkawa

Chuo-ku, TokyoRESIDIA
Kamiikebukuro

Toshima-ku, TokyoRESIDIA Shin-nakano

Nakano-ku, Tokyo

C-21

RESIDIA BunkyoYushima II

Bunkyo-ku, Tokyo

C-22
C-23
C-24
C-25
C-26
C-27
C-28

RESIDIA Tsukiji

Chuo-ku, Tokyo

Real estate

1,419

1,530

1

93.3

48,475

0.4

1

87.9

49,852

0.4

RESIDIA Sasazuka

Suginami-ku,
Tokyo

Beneficiaryinterests in trust

1,760

1,790

1

95.3

62,152

0.6

1

94.9

64,968

0.5

RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,188

1,240

1

100.0

40,002

0.4

1

100.0

40,002

0.3

RESIDIA Tamagawa

Ota-ku, Tokyo

1,260

1,300

1

100.0

40,381

0.4

1

100.0

40,381

0.3

RESIDIA Korakuen

Bunkyo-ku, Tokyo

586

618

1

100.0

20,382

0.2

1

100.0

20,4590.2

RESIDIA Ginza-Higashi

Chuo-ku, Tokyo

1,946

1,950

1

100.0

58,389

0.5

1

100.0

58,3300.5

RESIDIA Oji

Kita-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

838

893

1

100.0

34,492

0.3

1

100.0

34,584

0.3

24,965

26,869

Location

Property Name of real estate, (indication ofno.
etc.
residential

address)

Type ofownership

3rd Fiscal Period
4th Fiscal Period
Book Estimated(Aug. 1, 2011 ~ Jan. 31, 2012)(Feb. 1, 2012 ~ Jul. 31, 2012)value
atvalue at
As a
As a
Total
Revenue percentage
Revenue percentage
Total
end ofend ofof Occupancy
from
from
of Occupancy
of total numberof total
period number
rate
at
end
rate
at
end
tenants
atproperty
propertytenantsatperiod (million
revenuerevenueend of of periodleasingleasingend of of period
from
from
(million(%)(%)
period(thousand property(thousand property
periodyen)(tenants) (Note 3)
yen)
yen)
yen)
leasing (tenants) (Note 3)
leasing(Note 1)
(Note 2)

(Note 4)(%)(Note 2)

(Note 4)

(%)

C-29
C-31
C-32
C-33
C-34
C-35
C-36
C-37
C-38

RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

1,027

1,030

1

95.4

35,538

0.3

1

88.6

33,972

0.3

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,075

1,120

1

100.0

36,889

0.3

1

90.6

37,5300.3

RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,334

1,400

1

91.8

46,255

0.4

1

97.7

46,398

0.4

RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiaryinterests in trust

2,395

2,530

1

95.1

80,501

0.7

1

90.7

79,238

0.6

RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,337

2,370

1

89.8

77,089

0.7

1

93.3

73,193

0.6

3,268

3,570

1

100.0 109,197

1.0

1100.0 108,536

0.9

684

766

1

97.2

0.2

1

94.1

0.2

1,019

1,120

1

94.4

37,166

0.3

1

98.1

37,3190.3

RESIDIA Ikegami

Ota-ku, Tokyo

367

377

1

83.8

12,220

0.1

1

93.7

14,721

0.1

C-39

RESIDIA NihonbashiNingyocho

Chuo-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

540

598

1

100.0

17,822

0.2

1

100.0

17,822

0.1

C-40

RESIDIA BunkyoSengoku II

Bunkyo-ku, Tokyo

Real estate

1,412

1,420

1

98.3

47,664

0.4

1

91.8

46,9890.4

C-41

RESIDIA Iriya

Taito-ku, Tokyo

Beneficiaryinterests in trust

955

1,000

1

87.6

35,179

0.3

1

96.0

36,252

0.3

C-42

RESIDIA NihonbashiHamacho
RESIDIA ShinOkachimachi

Chuo-ku, Tokyo

Real estate

1,292

1,320

1

95.7

42,582

0.4

1

93.4

40,8880.3

Taito-ku, Tokyo

Real estate

1,828

1,840

1

98.7

55,298

0.5

1

95.2

56,445

0.5

RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,266

1,300

1

88.6

45,541

0.4

1

91.6

43,772

0.4

RESIDIA Shinkawa II

Chuo-ku, Tokyo

1,281

1,360

1

94.3

41,806

0.4

1

87.9

43,6590.4

RESIDIA Mejiro

Toshima-ku, Tokyo

6,102

6,220

1

96.9 231,560

2.1

197.5 228,839

1.9

RESIDIA Kasai

Edogawa-ku,
Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

660

721

1

93.8

27,966

0.2

1

100.0

29,167

0.2

C-48

RESIDIA NihonbashiBakurocho

Chuo-ku, Tokyo

Real estate

5,380

5,750

1

100.0 159,420

1.4

1100.0 162,055

1.3

C-49

RESIDIA SuginamiHonancho

Suginami-ku,
Tokyo

3,890

4,570

1

100.0 136,707

1.2

1100.0 137,081

1.1

C-50
C-51

RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

906

1,020

1

100.0

29,739

0.3

1

100.0

29,7390.2

RESIDIA Kiba

Koto-ku, Tokyo

2,041

2,400

1

98.7

78,631

0.7

1

93.5

75,9990.6

C-52

RESIDIA BunkyoYushima III

Bunkyo-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

1,157

1,260

1

100.0

39,980

0.4

1

96.9

39,431

0.3

C-53

RESIDIA BunkyoHonkomagome

Bunkyo-ku, Tokyo

Real estate

2,434

2,550

1

96.7

82,951

0.7

1

96.7

83,120

0.7

C-54
C-55
C-56

RESIDIA Tsukishima III

Chuo-ku, Tokyo

2,642

2,920

1

97.4

76,176

0.7

1

88.8

92,712

0.8

RESIDIA Minamisenjyu

Arakawa-ku, Tokyo

2,766

3,100

1

97.4 131,538

1.2

198.1 173,031

1.4

RESIDIA Ogikubo

Suginami-ku,
Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Real estate

1,832

1,860

1

97.0

40,322

0.4

1

98.0

61,628

0.5

C-57

RESIDIA
Monzennakacho

Koto-ku, Tokyo

1,036

1,020

-

-

-

-

1

100.0

29,669

0.2

C-58
C-59
C-60
C-61
C-62
C-63
C-64

RESIDIA Ochanomizu

2,165

2,280

-

-

-

-

1

97.2

61,336

0.5

1,191

1,260

-

-

-

-

1

98.7

35,514

0.3

1,115

1,140

-

-

-

-

1

94.5

32,762

0.3

1,870

1,960

-

-

-

-

1

98.1

54,620

0.4

2,410

2,380

-

-

-

-

1

95.4

67,581

0.6

698

686

-

-

-

-

1

100.0

21,475

0.2

983

1,000

-

-

-

-

1

96.9

21,8150.2

S-1

Hiyoshidai Student
Heights
Chester House
Kawaguchi
RESIDIA HigashiMatsudo
RESIDIA ShinYokohama

3,146

3,640

1

100.0 174,072

1.5

1100.0 174,072

1.4

756

680

1

92.3

28,762

0.3

1

97.5

29,152

0.2

1,111

1,030

1

95.7

43,712

0.4

1

97.9

43,583

0.4

1,889

1,740

1

100.0

62,551

0.6

1

100.0

61,696

0.5

1,136

1,080

1

100.0

35,805

0.3

1

91.2

35,131

0.3

701

622

1

100.0

26,182

0.2

1

100.0

26,186

0.2

501

515

1

97.0

19,334

0.2

1

97.0

19,496

0.2

1,643

1,720

1

97.2

58,174

0.5

1

95.6

58,268

0.5

764

799

1

100.0

26,744

0.2

1

100.0

27,177

0.2

C-43
C-44
C-45
C-46
C-47

S-2
S-4
S-5
S-7
S-11
S-12

RESIDIA BunkyoOtowa
RESIDIA BunkyoSengoku
RESIDIA BunkyoYushima

RESIDIA Omori
RESIDIA
Nakamurabashi
RESIDIA Kachidoki
RESIDIA BunkyoOtowa II
RESIDIA Kinshicho III
RESIDIA Kamata III

RESIDIA Chofu
Wako Student Heights
RESIDIA Kokubunji

S-14

RESIDIA YokohamaKannai

S-15
S-16

RESIDIA Okurayama

S-17

RESIDIAMusashikosugi
RESIDIA Funabashi I
RESIDIA Funabashi II

S-19

RESIDIA Kichijoji

S-20

Pacific Royal Court
Minato Mirai Ocean
Tower

S-21

Maison Yachiyodai

Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo

Beneficiaryinterests in trust
Beneficiary
Bunkyo-ku, Tokyo
interests in trust
BeneficiaryOta-ku, Tokyo
interests in trust
Beneficiary
Nerima-ku, Tokyo
interests in trust
Beneficiary
Chuo-ku, Tokyo
interests in trust
Beneficiary
Bunkyo-ku, Tokyo
interests in trust
Beneficiary
Koto-ku, Tokyo
interests in trust
BeneficiaryOta-ku, Tokyo
interests in trust
Yokohama-shi,
Beneficiary
Kanagawa
interests in trust
Kawaguchi-shi,
Beneficiary
Saitamainterests in trust
Beneficiary
Matsudo-shi, Chibainterests in trust
Yokohama-shi,
Beneficiary
Kanagawa
interests in trust
Beneficiary
Chofu-shi, Tokyo
interests in trust
Beneficiary
Wako-shi, Saitama
interests in trust
Kokubunji-shi,
BeneficiaryTokyo
interests in trust
Yokohama-shi,
Beneficiary
Kanagawa
interests in trust
Yokohama-shi,
Beneficiary
Kanagawa
interests in trust

25,70526,245

Kawasaki-shi,
Kanagawa

Real estate

1,552

1,600

1

97.7

54,365

0.5

1

97.8

54,806

0.4

Funabashi-shi,
Chiba

Beneficiaryinterests in trust

2,666

2,760

1

100.0

94,558

0.8

1

100.0

94,5530.8

Musashino-shi,Tokyo

Beneficiaryinterests in trust 1,413
Real estate andleasehold rights 13,287
to real estate
Beneficiary853
interests in trust

1,400

1

93.5

47,136

0.4

1

93.5

46,6500.4

14,2001

98.8 596,526

5.3

198.8 571,637

4.7

862

1

91.6

0.4

1

91.6

0.3

Yokohama-shi,
Kanagawa
Yachiyo-shi, Chiba

42,84342,55221

I. Asset Management Report

Location

Property Name of real estate, (indication ofno.
etc.
residential

address)

Type ofownership

3rd Fiscal Period
4th Fiscal Period
Book Estimated(Aug. 1, 2011 ~ Jan. 31, 2012)(Feb. 1, 2012 ~ Jul. 31, 2012)value
atvalue at
As a
As a
Total
Revenue percentage
Revenue percentage
Total
end ofend ofof Occupancy
from
from
of Occupancy
of total numberof total
period number
rate
at
end
rate
at
end
tenants
atproperty
propertytenantsatperiod (million
revenuerevenueend of of periodleasingleasingend of of period
from
from
(million(%)(%)
period(thousand property(thousand property
periodyen)(tenants) (Note 3)
yen)
yen)
yen)
leasing (tenants) (Note 3)
leasing(Note 1)
(Note 2)

S-22
S-23
S-24
S-25
S-26
S-27
S-28
R-2
R-4
R-5

Life & Senior House
Kohoku II

R-6(Note 4)(%)(Note 2)

(Note 4)(%)

College Court Tanashi

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

RESIDIA Urayasu

Urayasu-shi, Chiba

RESIDIA MinamiGyotoku

Ichikawa-shi, Chiba

RESIDIA Urayasu II

Urayasu-shi, Chiba

RESIDIA Gyotoku

Ichikawa-shi, Chiba

RESIDIA Kawasaki

Kawasaki-shi,
Kanagawa

RESIDIA Imadegawa

Kyoto-shi, Kyoto

Higashi-Sakura

Nagoya-shi, Aichi

RESIDIA Kameyama

Kameyama-shi,
Mie

Zeus Ryokuchi
PREMIUM(Note 5)
RESIDIA Kobe Port
Island (South Bldg.;
Centre Bldg.)
RESIDIA Kobe Port
Island (North Bldg.)

Toyonaka-shi,
Osaka

Kobe-shi, Hyogo

Beneficiaryinterests in trust

3,709

3,500

R-10

RESIDIA Hakata

Fukuoka-shi,
Fukuoka

Real estate

1,198

1,180

1

98.0

51,907

0.5

1

96.3

51,194

0.4

R-11

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiaryinterests in trust

840

895

1

95.0

37,264

0.3

1

97.6

37,063

0.3

R-12

RESIDIA SannomiyaHigashi

Kobe-shi, Hyogo

Real estate

2,137

2,360

1

97.5

91,115

0.8

1

98.9

89,112

0.7

R-13
R-14
R-15
R-16
R-17

KC21 Building

Sendai-shi, Miyagi

Real estate

872

844

1

100.0

39,753

0.4

1

98.7

41,178

0.3

RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

1,133

1,230

1

100.0

48,334

0.4

1

97.8

49,277

0.4

RESIDIA Kyoto-ekimae Kyoto-shi, Kyoto

Beneficiaryinterests in trust

1,910

2,040

1

93.9

76,494

0.7

1

96.1

75,984

0.6

RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,273

2,610

1

100.0

89,206

0.8

1

100.0

89,692

0.7

RESIDIA Hibino

Nagoya-shi, Aichi

1,280

1,350

1

94.5

67,070

0.6

1

92.6

67,366

0.6

R-19

RESIDIA TenjinMinami

Fukuoka-shi,
Fukuoka

Beneficiaryinterests in trust
Beneficiaryinterests in trust

904

949

1

91.1

39,149

0.3

1

94.6

40,1490.3

R-20

RESIDIA HakataekiMinami

Fukuoka-shi,
Fukuoka

Beneficiaryinterests in trust

309

336

1

97.4

16,543

0.1

1

94.9

15,999

0.1

R-21

Mare

Nagoya-shi, Aichi

Real estate

660

685

1

100.0

28,357

0.3

1

97.4

27,538

0.2

RESIDIA Minami-Ichijo

Sapporo-shi,
Hokkaido

Real estate

1,584

1,710

1

98.3

73,627

0.7

1

96.5

74,124

0.6

RESIDIA Odori-Nishi

Sapporo-shi,
Hokkaido

Real estate

1,296

1,270

1

97.7

57,179

0.5

1

98.6

57,904

0.5

R-26

RESIDIA Kita-Sanjo

Sapporo-shi,
Hokkaido

Real estate

1,090

1,170

1

99.3

49,561

0.4

1

98.5

49,957

0.4

R-27

RESIDIA ShirakabeHigashi

Nagoya-shi, Aichi

Real estate

808

806

1

91.9

32,882

0.3

1

85.0

28,160

0.2

R-29
R-30

RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

689

708

1

96.1

35,093

0.3

1

95.6

37,442

0.3

RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,587

3,770

1

96.3 144,892

1.3

192.8 148,326

1.2

R-31

RESIDIA Maruyama
Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

1,019

1,060

1

100.0

46,100

0.4

1

98.4

46,156

0.4

R-32

RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

734

753

1

96.7

29,405

0.3

1

100.0

30,2100.2

R-34

RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,956

2,170

1

96.2

91,151

0.8

1

97.4

92,574

0.8

R-35
R-36

RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,190

1,300

1

97.0

47,281

0.4

1

100.0

48,977

0.4

RESIDIA Hisaya-Odori

Nagoya-shi, Aichi

677

767

1

94.1

29,827

0.3

1

96.7

30,477

0.2

R-37

RESIDIA SendaiMiyamachi

Sendai-shi, Miyagi

553

609

1

100.0

26,122

0.2

1

100.0

26,092

0.2

R-38
R-39
R-40
R-41

RESIDIA Hirosedori

Sendai-shi, Miyagi

518

557

1

100.0

21,880

0.2

1

100.0

21,8390.2

RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,502

1,660

1

96.9

52,283

0.5

1

98.5

61,946

0.5

RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

1,083

1,130

1

97.7

28,954

0.3

1

97.5

43,332

0.4

RESIDIA Esaka

Suita-shi, Osaka

1,033

1,070

-

-

-

-

1

97.7

34,211

0.3

R-42

RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

2,490

2,590

-

-

-

-

1

98.4

92,823

0.8

R-43
R-44

RESIDIA Tsurumai

Nagoya-shi, Aichi

1,263

1,310

-

-

-

-

1

99.2

47,1890.4

RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

-

-

-

1

99.6 103,713

0.9

96.4 11,242,406

99.9

190

95.9 12,193,737

100.0

R-8

R-24
R-25

Total

Real estate
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

1,630

1,630

1

100.0

70,704

0.6

1

100.0

70,704

0.6

826

961

1

100.0

32,760

0.3

1

100.0

32,760

0.3

2,219

2,480

1

95.5

88,588

0.8

1

79.5

93,537

0.8

882

903

-

-

-

-

1

97.6

31,173

0.3

859

881

-

-

-

-

1

91.9

25,981

0.2

816

835

-

-

-

-

1

96.0

29,028

0.2

1,741

1,780

-

-

-

-

1

94.9

39,388

0.3

1,607

1,570

1

100.0

66,078

0.6

1

100.0

66,078

0.5

1,183

1,160

1

91.0

45,917

0.4

1

96.9

48,338

0.4

1,629

1,150

1

100.0

68,980

0.6

1

100.0

64,159

0.5

957

877

1

100.0

31,250

0.3

1

87.9

30,8830.3

1100.0 125,425

1.1

1100.0 125,413

1.0

2,867

3,040

-

363,255

366,860

173

Note 1. “Estimated value at end of period” is the appraisal value or survey-based value provided by a real estate appraiser as of July 31, 2012, the valuation date,pursuant to ADR’s Articles of Incorporation and the “Regulations Concerning Accounting of Investment Corporations” issued by the Cabinet Office.
2. For “Total number of tenants,” tenants that have executed a master lease agreement with a master lessee are counted as 1.
The “Total” column for “Total number of tenants” indicates the sum total number of master lease agreements, concluded with 14 master lessees, as amaster lease agreement is executed for all assets held by ADR as of July 31, 2012.
3. “Occupancy rate” is calculated by using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Revenue from property leasing” is the rental revenue of respective real estate, etc. for the fiscal period under review.
5. The property name was changed to RESIDIA Ryokuchi Kouen as of August 1, 2012.

22

4. Securities Portfolio
The following are securities held by ADR as of July 31, 2012.
Assessed value invaluation (thousand yen)Book value(thousand yen)
Name

Equity interests in silent
partnership with Godo
Kaisha RBFA2 as operator(Note 2)Equity interests in silent
partnership with Godo
Kaisha RBFA3 as operator(Note 3)

Type of asset

Unit priceAmountUnit priceAmountGain (Loss)on valuation(thousandyen)(Note 1)

Quantity

Remarks

Silentpartnership
equityinterests--

278,087-

275,000-3,087-

Silentpartnership
equityinterests--

162,979-

161,000-1,979----441,066-

436,000-5,066-

Total

Notes 1. ‌The value found in valuation is the value quoted by the operator of the silent partnership pursuant to regulations provided by The Investment Trusts
Association, Japan.
2. The silent partnership owns the real estate beneficiary interests in trust for “Pacific Residence Goshohigashi,” “Pacific Residence Rakuhoku,” “Current
Marunouchi” and “Current Sapporo Estacion.”
3. The silent partnership owns the real estate beneficiary interests in trust for “Liet Court Shinsaibashi West,” “CR Residence Jiyugaoka” and “Park Homes
Sapporo East.”
4. Other than the above, ADR holds real estate beneficiary interests in trust that are securities as defined in Article 2, Paragraph 2, Item 1 of the Financial
Instruments and Exchange Act. For convenience of reference, however, the underlying real estate in trust of those beneficiary interests in trust areincluded in “3. Real Estate Portfolio.”

5. Specified Transactions
The following is the status of ADR’s specified transactions as of July 31, 2012.
(thousand yen)Contract amount (Note 1)

Fair value

Account

Type

Transaction other thanmarket transaction

Interest rate swap transaction
payable fixed; receivable floating

125,043,174

115,367,488-713,789

Total

125,043,174

115,367,488-713,789

Of which, exceed
1 year(Notes 2 and 3)

Notes 1. ‌The contract amount is based on notional principal.
2. The fair value is based on the calculation conducted by the counterparty to the relevant transaction on the basis of the going rate of interest.
3. ‌Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial Instruments” (issued by
the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly, the fair value is not reflected on the balance
sheets.

6. Other Assets
Real estate and real estate beneficiary interests in trust are all listed in “3. Real Estate Portfolio”. As of July 31, 2012,
there are no major specified assets in the portfolio that are key investment targets of ADR other than those listed inthat section and earlier in “4. Securities Portfolio”.

7. Assets Held by Country and Region
There are no applicable matters concerning countries and regions other than Japan.

23

I. Asset Management Report

Capital Expenditures
1. Planned Capital Expenditures
The following table lists the major capital expenditures for renovations currently planned for the real estate and realestate beneficiary interests in trust ADR owns. The estimated amount includes portions that are to be recorded as
expenses for accounting purposes.
(million yen)

Estimated amounts
Name of property (Location)

PurposeEstimated Duration

Total
amounts

Payment for
Cumulative
the current
amount paid
periodRESIDIA Imadegawa(Kyoto-Shi, Kyoto)

Replacement of parts formechanical parking lot

From: Oct. 2012
To: Jan. 2013

22

-

-

RESIDIA Kamimeguro(Meguro-ku, Tokyo)

Major repair work

From: Oct. 2012
To: Jan. 2013

21

-

-

RESIDIA Shibaura(Minato-ku, Tokyo)

Value-enhancement work on
individual units

From: Sep. 2012
To: Jan. 2013

15

-

-

RESIDIA Daikanyama-Sarugakucho/
Daikanyama Parkside Village(Shibuya-ku, Tokyo)

Value-enhancement work on
individual units

From: Sep. 2012
To: Jan. 2013

14

-

-

RESIDIA Kichijoji(Musashino-shi, Tokyo)

Value-enhancement work on
individual units

From: Sep. 2012
To: Jan. 2013

13

-

-

2. Capital Expenditures for the Current Period
The following table lists the major capital expenditures for renovations ADR conducted in the current period. The
total capital expenditures during this fiscal period were 146 million yen for the entire portfolio and, when combinedwith repairs and maintenance cost of 356 million yen, it totals 502 million yen.
(million yen)

Name of property (Location)

Purpose

Implementation period

RESIDIA Okurayama(Yokohama-shi, Kanagawa)

Major repair work

RESIDIA Shibaura(Minato-ku, Tokyo)

Intercom replacement work

RESIDIA Roppongi-Hinokichokoen(Minato-ku, Tokyo)

Painting and waterproofing workon steel sections

Other real estate

Renewal work, etc.

Amount paid

From: May 2012
To: July 201228

June 201215

From: May 2012
To: June 2012

4
97
146

Total
(Note) Amount paid is rounded down to the nearest million yen. Accordingly, the sum total of the entered figures does not necessarily add up to the “Total”
amount indicated in the foregoing table.

3. Cash Reserves for Upgrades and Renovations
Based on medium to long-term upgrades and renovation plans for each property, ADR sets aside the following cash
reserves, derived from cash flows of depreciation and amortization (including those accompanying retained
earnings), to fund large-scale repair work and upgrades.
(million yen)

Fiscal period

1st Fiscal Period

2nd Fiscal Period

3rd Fiscal Period

4th Fiscal Period

Operating period

From: Mar. 1, 2010
To: Jan. 31, 2011

From: Feb. 1, 2011
To: July 31, 2011

From: Aug. 1, 2011
To: Jan. 31, 2012

From: Feb. 1, 2012
To: July 31, 2012

1,899

1,899

1,843

1,748

Amount of reserves during period

-

460

245

261

Reversal of reserves during period

-

516

341

304

1,899

1,843

1,748

1,704

Balance of reserves at beginning of period

Amount carried forward to next period

24Expenses and Liabilities
1. Entrustment Expenses(thousand yen)Item

3rd Fiscal Period

4th Fiscal Period

739,700

765,489 (Note2)(b) Asset custody fee

11,860 		

12,443(c) Administrative service fees

66,729 		

65,507(d) Directors’ compensations

2,400 		 2,400(a) Asset management fee(Note 1)(e) Other
Total

244,557

262,594

1,065,248

1,108,436

Notes 1. Asset management fee is the sum total amount of the base fee and incentive fee.
2. Aside from the amounts indicated above, a total 262,396 thousand yen has been paid for asset management of the acquired properties and has been
included in their acquisition prices.

2. Loans
The following lists the balance of respective loans ADR borrowed from financial institutions as of July 31, 2012.
Account
Lenders

Shortterm
loans
payableCurrent
portionof
longtermloanspayableThe Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
SubtotalTaiyo Life Insurance Company
Development Bank of Japan Inc.
Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Development Bank of Japan Inc.
Resona Bank, Limited
Sumitomo Mitsui Trust Bank Limited (Note 7)
The Nishi-Nippon City Bank Ltd.
Resona Bank, LimitedAozora Bank, Ltd.
Mizuho Corporate Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation

Balance at Balance atof beginning of Interest
Drawdown beginning
4th Fiscal
4th Fiscal
rate Repayment Repayment Use
date
date
method(Note 1)
PeriodPeriod(million yen) (million yen)

Nov. 18, 2011

Mar. 1, 2012

320

-

320

-

200

-

200

-

-

450

-

450

-

300

-

300

1,040

1,500

-

Nov. 19, 2012

(Note 6)

Lump-sum
repayment
at maturity

Unsecured
Unguaranteed

1.13%

Feb. 28, 2013

(Note 3)

Sept. 19, 2007

903

903 1.79%

Sep. 19, 2012

(Note 3)

Nov. 30, 2007

1,806

1,806 1.74%

Nov. 30, 2012

(Note 3)

1,382

1,382
Jan. 25, 2013

(Note 4)

Jun. 25, 2012

(Note 5)Jan. 25, 2008

June 25, 2008

921
921

921 1.71%
921 (Note 2)

921

921

1,797

-

1,382

-

921

-

875

-

-

2,765
2.45%

June 25, 2008-

June 27, 2008

1,806

1,806 0.86%

2,711

-

535

-

-

June 30, 2009

Aug. 31, 2009

Oct. 22, 2009

1,382

-

(Note 2)

Jun. 25, 2013

Lump-sum
repayment
at maturity(Note 5)

921
Nov. 30, 2012

(Note 3)-

Jun. 29, 2012

(Note 5)

-

2,965

-

3,526 2.18%

Apr. 30, 2013

(Note 5)

-

2,110

1,815

-

1,815

-

Apr. 27, 2012

(Note 6)

1,815

-

-

Remarks

Development Bank of Japan Inc.

Oct. 22, 2009250

250 3.10%(Note 10)Installment (Note 6)

Development Bank of Japan Inc.

Nov. 25, 2009

824

799 1.92%(Note 11)

Installment (Note 5)

Unsecured
Unguaranteed25

I. Asset Management Report

Balance at Balance atof beginning of Interest
Drawdown beginning
4th Fiscal
4th Fiscal
rate Repayment Repayment Use
date
date
method(Note 1)
PeriodPeriod(million yen) (million yen)Account
Lenders

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank Limited (Note 9)
Aozora Bank, Ltd.
Current
portion The Bank of Tokyo-Mitsubishi UFJ, Ltd.
of
Sumitomo Mitsui Trust Bank Limited (Note 7)
longterm The Bank of Tokyo-Mitsubishi UFJ, Ltd.
loans
Sumitomo Mitsui Banking Corporation
payableSumitomo Mitsui Trust Bank Limited (Note 9)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Development Bank of Japan Inc.

Feb. 19, 2010

Mar. 31, 2010

May 31, 2010

Mizuho Corporate Bank, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Development Bank of Japan Inc.

1,806

3,612

3,612

907

907

-

1,384

-

1,384

1,806

-

1,806

-

2,800

-

13

-

June 25, 2008

1,382

-

June 25, 2008

Mar. 31, 2010

Nov. 25, 2010

1.59%

Mar. 29, 2013-

Apr. 27, 2012

(Note 5)Lump-sum
repayment (Note 5)
at maturity(Note 5)(Note 12)Installment (Note 6)-

Jun. 25, 2013

(Note 5)

921

-

2,304

2,304 2.70%

Jun. 25, 2015

2,965

-

Lump-sum
repayment (Note 5)
at maturity

3,526

-

Apr. 30, 2013

(Note 5)

-

2,110

-

3,804

3,679 3.10%

1,384

-

1,384

-

-

Mar. 29, 2013

(Note 5)

1,147

1,147 1.50%
573 (Note 2)

Sep. 21, 2013

(Note 6)

Nov. 15, 2013

(Note 5)

573
2,610

2,610

1,770

1,770 1.38%(Note 2)

1,530

1,530

(Note 10)Installment (Note 6)

956

956 1.90%

Nov. 24, 2017

Sumitomo Mitsui Banking Corporation

Nov. 30, 2010

1,806

1,806 1.38%(Note 2)

Nov. 15, 2013

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

Mizuho Corporate Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

Feb. 17, 2011

8,664

8,664 1.62%
4,332 (Note 2)

Feb. 17, 2014

(Note 6)

4,332
443

443

443
354

443 1.62%(Note 2)
354

265

265

238

232 1.86%

1,083

1,083

1.68%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

492

492

Sumitomo Mitsui Trust Bank Limited (Note 7)492

Sumitomo Mitsui Banking Corporation

Feb. 17, 2011

Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.

Feb. 17, 2011

Mizuho Corporate Bank, Ltd.

Mar. 1, 2011

Sumitomo Mitsui Banking Corporation

Mar. 1, 2011

(Note 2)492 1.68%(Note 2)

2,264

2,264

Shinsei Bank, Limited

295

295

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Shinsei Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation

500

500

500

500 1.69%(Note 2)Mar. 10, 2011

700

700

3,500

3,500

3,700

3,700 1.75%(Note 2)

2,000

2,000

May 31, 2011

2,500

Sumitomo Mitsui Banking Corporation

June 30, 2011

Sumitomo Mitsui Trust Bank Limited (Note 7)

June 30, 2011

Sumitomo Mitsui Trust Bank Limited
Mitsubishi UFJ Trust and Banking
Corporation

Apr. 28, 2011

(Note 8)

Unsecured
Unguaranteed

35,212

Oct. 22, 2009

Jan. 25, 2013

13 1.86%

2,765

Aug. 31, 2009

1.53%

Nov. 25, 2010

Longterm The Bank of Tokyo-Mitsubishi UFJ, Ltd.
loans Sumitomo Mitsui Trust Bank Limited (Note 7)
payable26

1,806

40,505

Sept. 22, 2010

Mizuho Trust & Banking Co., Ltd.

2,714

1,625
Feb. 17, 2011

SubtotalMizuho Corporate Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)

2,714

Remarks

Unsecured
Unguaranteed
Feb. 17, 2014

(Note 12)(Note 6)

Installment (Note 6)

Feb. 29, 2016

(Note 3)Feb. 29, 2016

(Note 3)Feb. 29, 2016

Lump-sum
repayment
at maturity(Note 3)Apr. 28, 2017

(Note 5)2,500 1.52%(Note 2)Feb. 29, 2016

(Note 3)2,700

2,700 1.59%(Note 2)

Jun. 30, 2017

(Note 5)890

890 1.76%(Note 2)

Jun. 29, 2018

(Note 5)

Account
Lenders

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
The Bank of Fukuoka, Ltd.
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Mitsubishi UFJ Trust and Banking Corporation
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Mitsubishi UFJ Trust and Banking
Corporation
Aozora Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Norinchukin Bank
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Note 7)Long- Sumitomo Mitsui Trust Bank Limited
term Sumitomo Mitsui Banking Corporationloans
payable Mizuho Corporate Bank, Ltd.
The Norinchukin Bank
Mitsui Sumitomo Insurance
Taiyo Life Insurance Company
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
Resona Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.
Shinsei Bank, Limited
Mizuho Trust & Banking Co., Ltd.
The Yamaguchi Bank, Ltd.
The Tokyo Tomin Bank, Ltd.
The Iyo Bank, Ltd.
Resona Bank, Limited

Balance at Balance atof beginning of Interest Repayment Repayment
Drawdown beginningUse
4th Fiscal
4th Fiscal
rate
date
methoddate(Note 1)
PeriodPeriod(million yen) (million yen)Aug. 31, 2011

1,600

1,600

2,000

2,000 1.01%
1,000 (Note 2)

Jan. 31, 2015

(Note 5)

Dec. 18, 2015

(Note 5)500 1.31%
500 (Note 2)

Jan. 31, 2017

(Note 5)1,000

2,000 1.16%
1,000 (Note 2)

Dec. 18, 2015

(Note 3)2,000

2,000 1.31%(Note 2)

Jan. 31, 2017

(Note 3)750
750

750 1.31%
750 (Note 2)

Jan. 31, 2017

(Note 3)

Sept. 29, 2011

1,000

1,000 1.62%(Note 2)

Sept. 28,2018

(Note 3)

Nov. 18, 2011

2,400

2,400 0.73%

Oct. 31, 2014

(Note 6)

1,300

1,300

1,300
1,000

1,300 1.57%
1,000 (Note 2)

Nov. 30,
2018(Note 5)

1,900

1,900

2,000

2,000 0.79%

Dec. 18, 2015

(Note 5)

1,000
700

700

500

500

500
Aug. 31, 2011

Aug. 31, 2011

Aug. 31, 2011

Aug. 31, 2011

Sept. 1, 2011

Nov. 30, 2011

Dec. 26, 2011

Dec. 26, 2011

Dec. 26, 2011

Jan. 25, 2012

Jan. 25, 2012

Feb. 8, 2012

Feb. 8, 2012

The Bank of Fukuoka, Ltd.

1,000

500
1,000 1.16%(Note 2)

1,000

1,000

1,000

1,000

500
500
2,000

300

300

300

300

450

450 1.17%
450 (Note 2)

450
2,500

2,500

1,000

1,000

1,500

1,500 1.21%

450

450

1,550

1,550

900

900

500

500

500

500

650

650

500

500 1.43%(Note 2)

900

900

1,000

1,000

1,500

1,500

-

1.11%
(Note 2)

1,000 0.75%

-

500

-

500 0.91%

-

300

-

1,000

-

2,000

-

500 1.11%(Note 2)The Tokyo Tomin Bank, Ltd.

-500

The Iyo Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited (Note 7)
Shinsei Bank, Limited

-

300

-

500

-

500 1.42%(Note 2)The Yamaguchi Bank, Ltd.

Feb. 8, 2012

Feb. 8, 2012-

Nov. 30,
2016

Lump-sum
repayment (Note 5)
at maturity

Nov. 30,
2016(Note 5)

Jul. 29, 2016

(Note 5)

Jul. 31, 2018

(Note 5)

Jul. 31, 2015

(Note 6)

Jul. 31, 2015

(Note 6)

Jul. 29, 2016

(Note 6)

Jul. 31, 2018

(Note 6)

Remarks

Unsecured
Unguaranteed

1,000

27

I. Asset Management Report

Account
Lenders

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

Balance at Balance atof beginning of Interest
Drawdown beginning
4th Fiscal
4th Fiscal
rate Repayment Repayment Use
date
date
method(Note 1)
PeriodPeriod(million yen) (million yen)Feb. 28, 2012-

2,850 1.23%

Feb. 28, 2018

(Note 3)Apr. 3, 2012-

2,700 0.67%

Mar. 31, 2015

(Note 3)

-

1,300

-

1,700

0.57%

Jan. 31, 2014

(Note 5)

-

800

-

800
2,800 1.10%(Note 2)

Aug. 31, 2017

(Note 5)

-

1,600

-

1,500

-

2,100 1.20%(Note 2)

Apr. 27, 2018

(Note 5)

Apr. 27, 2012

Apr. 27, 2012

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

Longterm
The Gunma Bank, Ltd.
loans
payable The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sumitomo Mitsui Trust Bank LimitedAozora Bank, Ltd.
The Nishi-Nippon City Bank Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank Limited
Resona Bank, Limited
The Nishi-Nippon City Bank Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank LimitedAozora Bank, Ltd.
Subtotal
Total

Apr. 27, 2012

May 31, 2012

June 25, 2012

June 25, 2012

June 29, 2012

800

-

1,000

-

657

-

343

-

800

-

700

-

700

-

(Note 2)0.58%

500 0.85%
1,000

-

800

-

1,200

-

0.84%

(Note 2)800 1.25%(Note 2)-

700

111,956

132,132

153,502

168,844

May 29, 2015

Lump-sum
repayment(Note 5)at maturity

Jun. 30, 2014

(Note 5)

Aug. 31, 2015

(Note 5)

Jun. 28, 2019

(Note 5)

Remarks

Unsecured
Unguaranteed

Notes 1. ‌“Interest rate” is the borrowing interest rate (weighted average of balance at the end of the fiscal period) for each loan agreement, rounded to the second
decimal place.
2. ‌For loans for which an interest rate swap transaction has been made for the purpose of hedging the risk of interest rate fluctuations, the entered interest
rate is the fixed one as a result of the interest rate swap.
3. The funds are used for acquiring specified assets.
4. The funds are used for acquiring specified assets and repaying existing loans.
5. The funds are used for repaying existing loans.
6. The funds are used for redeeming existing investment corporation bonds.
7. ‌The Sumitomo Trust & Banking Co., Ltd., The Chuo Mitsui Trust and Banking Company, Limited and Chuo Mitsui Asset Trust and Banking Company, Limited
merged on April 1, 2012 to become Sumitomo Mitsui Trust Bank, Limited. The entered figures for the balances at the beginning and the end of the 4th Fiscal
Period are those of the former Sumitomo Trust & Banking.
8. The entered figures for the balances at the beginning and the end of the 4th Fiscal Period are those of the former Chuo Mitsui Trust and Banking.
9. ‌The entered figures for the balances at the beginning and the end of the 4th Fiscal Period are those of the former Sumitomo Trust & Banking and theformer Chuo Mitsui Trust and Banking combined.
10. ‌The loan contract requires that the first repayment shall be on the last day of February 2010 and subsequent repayments shall be at the end of every
February, May, August and November thereafter each in the amount of 62,500 thousand yen of principal, until lump-sum repayment of the remaining
principal on September 30, 2014.
11. ‌The loan contract requires that the first repayment shall be on the last day of February 2010 and subsequent repayments shall be at the end of every
February, May, August and November thereafter each in the amount of 12,500 thousand yen of principal, until lump-sum repayment of the remaining
principal on November 30, 2012.
12. The‌loan contract requires that the first repayment shall be on the last day of April 2011 and subsequent repayments shall be at the end of every January,
April, July and November thereafter each in the amount of 3,375 thousand yen of principal, until lump-sum repayment of the remaining principal on
February 17, 2016.

28

3. Investment Corporation Bonds
The following lists the outstanding investment corporation bonds issued by ADR as of July 31, 2012.

Series (Note 1)

Balance at
at
beginning of Balanceend of 4th Coupon rate Redemption Redemption method
Issue date
4th Fiscal Fiscal
Period(%)
date
Period(million yen) (million yen)

Use

Remarks

ADR Bond #2(Unsecured)Nov. 21,
2007

5,000

5,000

2.03

Nov. 21,2012

Lump-sum
redemption at
maturity(Note 2)

Unsecured

NRI Bond #3(Unsecured)Sep. 26,
2005

9,700

9,700

1.28

Sep. 24,
2012

Lump-sum
redemption at
maturity(Note 3)

Unsecured

NRI Bond #7(Unsecured)Feb. 9,2007

12,000-1.84

Feb. 9,2012

Lump-sum
redemption at
maturity(Note 2)

Unsecured

NRI Bond #10(Unsecured) (Note 6)

Sep. 13,
2007

4,800

4,800

1.90

Sep. 13,
2012

Lump-sum
redemption at
maturity(Note 4)

Unsecured

ADR Bond #13(Unsecured)Sep. 12,
2011

8,000

8,000

1.27

Sep. 12,2016

Lump-sum
redemption at
maturity(Note 5)

Unsecured

ADR Bond #14(Unsecured)Sep. 12,
2011

2,000

2,000

1.68

Sep. 12,2018

Lump-sum
redemption at
maturity(Note 5)

Unsecured

ADR Bond #15(Unsecured)

Apr. 26,
2012

-

4,000

0.86

Apr. 24,
2015

Lump-sum
redemption at
maturity(Note 2)

Unsecured

ADR Bond #16(Unsecured)

Apr. 26,
2012

-

4,000

1.08

Apr. 26,
2017

Lump-sum
redemption at
maturity(Note 2)

Unsecured

41,50037,500Total

Notes ‌1. The bonds come with pari passu clause among specified investment corporation bonds.
2. The funds are used for repaying existing loans.
3. The funds are used for acquiring specified assets and repaying existing loans.
4. The funds are used for acquiring specified assets and repaying existing loans as well as for working capital.
5. The funds are used for redeeming existing investment corporation bonds.
6. NRI Bond #10 (Unsecured) was redeemed on September 13, 2012.

4. Short-Term Investment Corporation Bonds
Not applicable.

C-63 RESIDIA Kinshicho III

29

I. Asset Management Report

Acquisitions and Disposals in the 4th Fiscal Period
1.  Acquisitions and Disposals of Properties and Asset-Backed Securities
Acquisition
Propertyno.

Property nameAcquisition date

Disposition

Acquisition price(Note)(million yen)

Disposition
date

Disposition
price (Note)(million yen)

(Loss) on
Book value Gainsales(million yen) (million
yen)

P-90

RESIDIA Sasazuka II

Feb. 24, 2012

3,760

-

-

-

-

C-57

RESIDIA Monzennakacho

Feb. 28, 2012

970

-

-

-

-

C-60

RESIDIA Nakamurabashi

Feb. 28, 2012

1,075

-

-

-

-

C-61

RESIDIA Kachidoki

Feb. 28, 2012

1,805

-

-

-

-

C-63

RESIDIA Kinshicho III

Feb. 28, 2012

651

-

-

-

-

S-25

RESIDIA Minami-Gyotoku

Feb. 28, 2012

823

-

-

-

-

S-26

RESIDIA Urayasu II

Feb. 28, 2012

802

-

-

-

-

S-27

RESIDIA Gyotoku

Feb. 28, 2012

761

-

-

-

-

R-42

RESIDIA Nishijin

Feb. 28, 2012

2,380

-

-

-

-

R-43

RESIDIA Tsurumai

Feb. 28, 2012

1,206

-

-

-

-

R-44

RESIDIA Kobe-Isogami

Feb. 28, 2012

2,740

-

-

-

-

C-62

RESIDIA Bunkyo-Otowa II

Feb. 29, 2012

2,268

-

-

-

-

C-58

RESIDIA Ochanomizu

Mar. 1, 2012

2,090

-

-

-

-

C-59

RESIDIA Omori

Mar. 1, 2012

1,150

-

-

-

-

R-41

RESIDIA Esaka

Mar. 1, 2012

989

-

-

-

-

C-64

RESIDIA Kamata III

Apr. 3, 2012

948

-

-

-

-

S-28

RESIDIA Kawasaki

Apr. 3, 2012

1,670

-

-

-

-

-

Equity interests in silent
partnership with Godo
Kaisha RBFA3 as operator

July 27, 2012

161

-

-

-

-

26,249

-

-

-

-

Total

(Note) ‌“Acquisition price” or “Disposition price” is the purchase or sale price entered in the transaction agreement, etc., and does not include the various
expenses, such as broker commission, and taxes and public dues, required in the acquisition or disposition of the concerned real estate, etc.

2. Acquisitions and Disposals of Other Assets
Not applicable. Major assets other than the above mentioned properties and asset-backed securities are mostly bankdeposits or bank deposits within trust assets.

C-64 RESIDIA Kamata III

30

3. Appraisal Values of Specified Assets
1) Real Estate
Acquisition or Type of Property
disposition
asset
no.

AcquisitionRealestatein trust

Acquisition
price orAppraisal
disposition
value
price
(million yen)(million yen)Appraiser

Valuation
date

Property nameAcquisition date

P-90

RESIDIA Sasazuka II

Feb. 24, 2012

3,760

3,810

C-57

RESIDIA
Monzennakacho

Feb. 28, 2012

970

993

Morii Appraisal &Investment
Consulting Inc.

Oct. 17,
2011

C-60

RESIDIA
Nakamurabashi

Feb. 28, 2012

1,075

1,110

Morii Appraisal &Investment
Consulting Inc.

Oct. 31,
2011

C-61

RESIDIA Kachidoki

Feb. 28, 2012

1,805

1,950

Japan Real Estate Nov. 1, 2011
Institute

C-63

RESIDIA Kinshicho III

Feb. 28, 2012

651

665

Morii Appraisal &Investment
Consulting Inc.

Oct. 13,
2011

S-25

RESIDIA MinamiGyotoku

Feb. 28, 2012

823

872

Morii Appraisal &Investment
Consulting Inc.

Oct. 13,
2011

S-26

RESIDIA Urayasu II

Feb. 28, 2012

802

850

Morii Appraisal &Investment
Consulting Inc.

Oct. 17,
2011

S-27

RESIDIA Gyotoku

Feb. 28, 2012

761

807

Morii Appraisal &Investment
Consulting Inc.

Oct. 13,
2011

R-42

RESIDIA Nishijin

Feb. 28, 2012

2,380

2,560

Daiwa Real EstateAppraisal Co., Ltd. Nov. 1, 2011

R-43

RESIDIA Tsurumai

Feb. 28, 2012

1,206

1,250

Daiwa Real EstateAppraisal Co., Ltd. Nov. 1, 2011

R-44

RESIDIA Kobe-Isogami

Feb. 28, 2012

2,740

2,900

Morii Appraisal &Investment
Consulting Inc.

Oct. 31,
2011

C-62

RESIDIA BunkyoOtowa II

Feb. 29, 2012

2,268

2,330

Morii Appraisal &Investment
Consulting Inc.

Oct. 24,
2011

C-58

RESIDIA Ochanomizu

Mar. 1, 2012

2,090

2,230

Japan Real Estate Oct. 1, 2011
Institute

C-59

RESIDIA Omori

Mar. 1, 2012

1,150

1,220

Japan Real Estate Nov. 1, 2011
Institute

R-41

RESIDIA Esaka

Mar. 1, 2012

989

1,040

Japan Real Estate Nov. 1, 2011
Institute

C-64

RESIDIA Kamata III

Apr. 3, 2012

948

981

Morii Appraisal &Investment
Consulting Inc.

Nov. 14,
2011

S-28

RESIDIA Kawasaki

Apr. 3, 2012

1,670

1,740

Morii Appraisal &Investment
Consulting Inc.

Nov. 18,
2011

Japan Real Estate Nov. 1, 2011
Institute

Notes 1. ‌“Acquisition price” or “Disposition price” is the purchase or sale price entered in the transaction agreement and does not include the various expenses
such as broker commission, and taxes and public dues, required in the acquisition or disposition of the concerned real estate.
2. ‌The revision made to the Act on Investment Trusts and Investment Corporations as of November 24, 2011 eliminated the requirement for reassessing into
the value of specified assets (land, buildings, or related rights or assets, as designated by government ordinances) when investment corporations haveconducted real estate appraisals for such assets prior to their acquisition or disposal. Accordingly, ADR has not conducted any assessments into the valueof specified assets for the properties listed above.

31

I. Asset Management Report2) Silent Partnership Equity Interests
Acquisition or
disposition

Acquisition

Name

Equity interests in silent partnership with Godo
Kaisha RBFA3 as operator

Acquisition date

Acquisition price(million yen)

Investigated value of
specified assets(million yen)

July 27, 2012

161

161

Notes 1. ‌The assessment into the value of specified assets above was conducted at the time of acquisition or disposition of assets by Deloitte Touche Tohmatsu LLC
in accordance with The Japanese Institute of Certified Public Accountants’ Industry Audit Practice Committee Statement No. 23 “Assessment of the Valueof Specified Assets of Investment Trusts and Investment Corporations” and ADR has received the assessment report.
2. ‌“Acquisition price” is the investment amount in the concerned silent partnership, or the amount required in its equity interests, and excludes the various
expenses associated with the acquisition.

3) Others
For transactions conducted by ADR other than the transactions listed above in “1) Real Estate” and “2) Silent
Partnership Equity Interests” which require assessments pursuant to the provisions of Article 201 of the Act on
Investment Trusts and Investment Corporations, ADR entrusts Deloitte Touche Tohmatsu LLC with the assessment.

4. Transactions with Interested Parties and Major Shareholders
1) Transactions
The following are the transactions of specified assets conducted with interested parties and major shareholders in
the 4th Fiscal Period.
Account

Total amount(4th Fiscal Period)

Transaction amount
Purchase amountSale amount

26,088,625 thousand yen- thousand yen

Of which, purchase from interested parties andmajor shareholders

Of which, sale to interested parties and major
shareholders

7,989,625 thousand yen(30.6%)- thousand yen(-%)

Breakdown of transaction with interested parties and major shareholders
7,989,625 thousand yen(30.6%)

ITOCHU Corporation- thousand yen(-%)2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties and major shareholders in the 4th Fiscal Period.

Account

Property management fees

Total amount of Breakdown of transactions with interested parties and major shareholders
Amount paid
commission fees
(B)
(A)
Payee
(thousand yen)(thousand yen)

Share(B) ÷ (A)(%)

1,113,703

ITOCHU Urban Community Ltd.

612,493

55.0

Other rental expenses

114,337

ITOCHU Urban Community Ltd.

61,58953.9

Advertising expenses

3,340

ITOCHU Urban Community Ltd.

2,140

64.1

ITOCHU Urban Community Ltd.

29,560

25.7

90

0.1

Other fees

115,040

ITOCHU Human Resources & General Affairs
Services Inc.

Notes 1. Transactions are not disclosed for transactions in which the actual counterparty is clearly a third party but via interested parties by form or name.
2. ‌ITOCHU Corporation, ITOCHU Urban Community Ltd. and ITOCHU Human Resources & General Affairs Services Inc. are the interested parties of the asset
management company that have signed an asset management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts
and Investment Corporations and Article 123 of the Enforcement Order thereof and the major shareholders of the asset management company as definedin Article 29-4, Paragraph 2 of the Financial Instruments and Exchange Act, with which ADR engaged in transactions in the 4th Fiscal Period.

5. Transactions‌with the Asset Management Company Pertaining to Business
Operated by the Asset Management Company as Subsidiary Business

There are no such transactions, as the asset management company conducts no concurrent operations in the area oftype I financial instruments business, type II financial instruments business, building lots and buildings transaction
business or real estate specified joint enterprise.

32

Accounts
1. Assets, Liabilities, Principal, Income and Losses
Please refer to the accompanying “II. Balance Sheets,” “III. Statements of Income,” “IV. Statements of Changes inUnitholders’ Equity,” “V. Notes to Financial Statements” and “VI. Statements of Cash Distributions”.

2. Change in Depreciation Calculation Method
Not applicable.

3. Change in Method of Valuation of Properties
Not applicable.

4. Beneficiary Certificates of Self-Managed Investment Trust
Not applicable.

Other
1. Notice
Board of Directors meeting
Major issues related to the execution and modification of major agreements approved at ADR’s board of directors
meetings in the fiscal period under review are summarized below.
Approval date

Item

Overview

March 26, 2012

Entrustment of administration
associated with issuance ofinvestment corporation bonds

Agent selected concerning entrustment of administration
associated with issuance of ADR Bond #15 (Unsecured) and ADR
Bond #16 (Unsecured).

July 27, 2012

Entrustment of administration
associated with issuance ofinvestment corporation bonds

Agent selected concerning entrustment of administration
associated with issuance of ADR Bond #17 (Unsecured) and ADR
Bond #18 (Unsecured).

2. OtherUnless otherwise stated, monetary amounts are rounded down and percentage figures are rounded off to thenearest specified unit in this document.

S-26 RESIDIA Urayasu II

33

II. Balance Sheets(thousand yen)

3rd Fiscal Period(as of January 31, 2012)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Short-term investment securities
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Fixed 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
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets

34

4th Fiscal Period(as of July 31, 2012)

9,165,380
5,844,046
264,0252,000,000
308,157
12,767
12,652- 21,647
17,585,382

6,701,044
7,055,796
291,076
4,500,000
406,093
31,77923,797- 22,546
18,987,040

72,297,097- 2,830,161
69,466,935
6,340
- 523
5,817
1,785
- 40
1,744
68,121- 31,773
36,34868,868,819
93,934,944- 6,614,074
87,320,870
141,254- 46,116
95,137
111,616- 37,252
74,364
444,731- 262,091
182,640
110,457,838
336,510,515

72,304,597- 3,621,718
68,682,879
6,843
- 761
6,082
3,670
- 134
3,535
76,216- 39,531
36,684
68,868,819
109,635,673- 7,854,733
101,780,939
143,844- 50,920
92,923112,816- 40,890
71,926457,855- 279,938
177,917
122,331,287
362,052,996

1,071,902
133,788
2,051
1,207,743

1,071,902
130,929
16,264
1,219,096

290,042581,988644,641
1,654
1,518,327
339,236,586

441,066
656,647
628,756
1,654
1,728,124
365,000,218

15,28654,42569,711
356,891,681

21,39482,953
104,348
384,091,606

(thousand yen)

3rd Fiscal Period

4th Fiscal Period(as of January 31, 2012)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bondCurrent portion of long-term loans payable
Accounts payable – otherAccrued expenses
Advances received
Other
Total current liabilities
Long-term liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Long-term deposits received
Other
Total long-term liabilities
Total liabilities
Net assets
Unitholders’ equity
Paid-in capital
SurplusCapital surplus
Reserve for dividends
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets(as of July 31, 2012)

201,449

131,864

1,040,000

1,500,000

31,500,000

19,500,000

40,505,729

35,212,200

894,322958,733

390,446

266,931

42,43347,05355,23843,27574,629,618

57,660,058

10,000,000

18,000,000

111,956,450

132,132,311

1,242,884

1,234,796

1,604,341

1,876,498

29,692

23,344

536

9,525

124,833,905

153,276,476

199,463,523

210,936,534

64,561,818

80,087,298

53,220,279

53,220,279

35,648,605

35,236,060

3,997,454

4,611,435

92,866,339

93,067,774

157,428,157*1

157,428,157
356,891,681

173,155,072*1

173,155,072
384,091,606

S-27 RESIDIA Gyotoku

35

III. Statements of Income(thousand yen)

3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

Operating revenue
Rent revenue‐real estate*1

Dividends income
Total operating revenue

11,252,363*1

12,193,737

7,559

25,887

11,259,923

12,219,625

Total operating revenue
Expenses related to rent business*1

4,202,648

Loss on sales of real estate properties

*2

7,480

-

Asset management fee

739,700

765,489

Asset custody fee

11,86012,443Administrative service fees

66,72965,507

Directors’ compensations

2,400

2,400

Taxes and dues

66,57878,446

-

7,150

213

194

Other operating expenses

177,765

176,803

Total operating expenses

5,275,376

5,660,157

5,984,546

6,559,467

Interest income

8,619

8,181

Interest on securities

1,229

2,285

Reversal of distribution payable

6,428

11,984

Reversal of allowance for doubtful accounts

1,662

-

Other

2,160

4,757

Total non-operating income

20,10027,2091,263,473

1,311,406

364,055

246,749

Amortization of unit issuance expenses

5,732

8,100

Amortization of investment corporation bond issuance costs

8,741

11,439Other offering costs associated with the issuance of units

27,816

14,711

Borrowing related expenses

323,301

379,076

Other

13,4673,153

2,006,587

1,974,636

Ordinary income

3,998,059

4,612,040

Income before income taxes

3,998,059

4,612,040

Income taxes – current

605

605

Income taxes – deferred

605

605

Net income

3,997,454

4,611,435

Unappropriated retained earnings (undisposed loss)

3,997,454

4,611,435

Provision of allowance for doubtful accounts
Bad debts expenses

Operating income*1

4,551,721

Non-operating income

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

Total non-operating expenses

36IV. Statements of Changes in Unitholders’ Equity(thousand yen)

3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012

Unitholders’ equity
Paid-in capital
Balance at the beginning of current period
Changes of items during the period
Issuance of new investment units
Total changes of items during the period
Balance at the end of current period
SurplusCapital surplus
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Reserve for dividends
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for dividends
Total changes of items during the period
Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for dividends
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total surplus
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for dividends
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total unitholders’ equity
Balance at the beginning of current period
Changes of items during the period
Issuance of new investment units
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than unitholders’ equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than unitholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Issuance of new investment units
Dividends from surplus
Net income
Net changes of items other than unitholders’ equity
Total changes of items during the period
Balance at the end of current period

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012

64,561,818

64,561,818

64,561,818

15,525,480
15,525,480
80,087,298

53,220,279

53,220,279

53,220,279

53,220,279

38,653,653

35,648,605- 3,005,047- 3,005,047
35,648,605- 412,545- 412,545
35,236,060

1,404,952

3,997,454

3,005,047- 4,410,000
3,997,454
2,592,502
3,997,454

412,545- 4,410,000
4,611,435
613,980
4,611,435

93,278,884

92,866,339- 4,410,000
3,997,454- 412,545
92,866,339- 4,410,000
4,611,435
201,435
93,067,774

157,840,703

157,428,157- 4,410,000
3,997,454- 412,545
157,428,157

15,525,480- 4,410,000
4,611,435
15,726,915
173,155,072- 12,722-

12,722
12,722--- 12,722-

12,722
12,722--

157,827,980

157,428,157- 4,410,000
3,997,454
12,722- 399,823
157,428,157

15,525,480- 4,410,000
4,611,435
15,726,915
173,155,072

37

V. Notes to Financial Statements

Notes on Matters Concerning Significant Accounting Policies
3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012

1. S
 tandards and method of (1) ‌Held-to-maturity debentures(1) ‌Held-to-maturity debenturesvaluation of securities
Carried at amortized cost (straight-line basis).
Carried at amortized cost (straight-line basis).
(2) ‌Available-for-sale securities(2) ‌Available-for-sale securities
Non-marketable securities
Non-marketable securities
Stated at cost determined by the moving
Stated at cost determined by the moving
average method.
average method.
For investments in silent partnership, ADR
For investments in silent partnership, ADR
adopts the method of factoring in the net
adopts the method of factoring in the net
amount of silent partnership income (loss) inamount of silent partnership income (loss) inproportion to its equity interests.
proportion to its equity interests.

38

2. Method of depreciationof fixed assets(1) ‌Property, plant and equipment (including(1) ‌Property, plant and equipment (including
assets in trust)
assets in trust)Calculated on a straight-line basis.
Calculated on a straight-line basis.
The useful life of the main items of property,
The useful life of the main items of property,
plant and equipment are as follows:plant and equipment are as follows:
Buildings			
5~46 years
Buildings			
5~46 years
Structures			
6~50 years
Structures			
6~50 years
Machinery and equipment
10~15 years
Machinery and equipment
10~15 years
Tools, furniture and fixtures
2~15 years
Tools, furniture and fixtures
2~15 years(2) ‌Intangible assets(2) ‌Intangible assets
Calculated on a straight-line basis.
Calculated on a straight-line basis.
The useful life of the main items of intangible
The useful life of the main items of intangible
assets are as follows:
assets are as follows:
Leasehold rights in trust
Leasehold rights in trust
24 years
24 years
Software			
Software			
5 years
3~5 years(3) ‌Long-term prepaid expenses(3) ‌Long-term prepaid expenses
Calculated on a straight-line basis.
Calculated on a straight-line basis.

3. Method of accounting
for deferred assets(1) ‌Unit issuance expenses
Amortized on a straight-line basis(over 3 years).
(2) ‌Investment corporation bond issuance costs
Amortized on a straight-line basis over theperiod up to redemption of the investment
corporation bonds.

4. Standards of recording
allowances

Allowance for doubtful accounts
Allowance for doubtful accountsFor‌ allowance for doubtful accounts againstFor‌ allowance for doubtful accounts against
possible losses arising from default on
possible losses arising from default on
receivables, uncollectable amount is estimated receivables, uncollectable amount is estimatedand recorded by investigating collectability
and recorded by investigating collectability
based on historical loan loss ratios for generalbased on historical loan loss ratios for general
receivables and on a case-by-case examination receivables and on a case-by-case examination
for doubtful and other specific receivables.
for doubtful and other specific receivables.

5. Standards‌of recording
revenue and expenses

Method of accounting for property taxes.
For‌ property tax, urban planning tax anddepreciable asset tax, etc. on real estate
properties held, ADR adopts the method of
charging the corresponding amounts ofassessed taxes, which are broken down into
installments, to the fiscal period under review
as expenses related to rent business.
Furthermore, for the pro rata portion ofproperty taxes ADR paid to the sellers uponacquisition of real estate properties, ADR
includes the amount in the acquisition cost
instead of recording it as expenses related torent business. The amount equivalent to suchtaxes included in the acquisition cost of realestate properties in the fiscal period underreview is 14,483 thousand yen.

(1) ‌Unit issuance expenses
Amortized on a straight-line basis(over 3 years).
(2) ‌Investment corporation bond issuance costs
Amortized on a straight-line basis over theperiod up to redemption of the investment
corporation bonds.

Method of accounting for property taxes.
For‌ property tax, urban planning tax anddepreciable asset tax, etc. on real estate
properties held, ADR adopts the method of
charging the corresponding amounts ofassessed taxes, which are broken down into
installments, to the fiscal period under review
as expenses related to rent business.
Furthermore, for the pro rata portion ofproperty taxes ADR paid to the sellers uponacquisition of real estate properties, ADR
includes the amount in the acquisition cost
instead of recording it as expenses related torent business. The amount equivalent to suchtaxes included in the acquisition cost of realestate properties in the fiscal period underreview is 82,978 thousand yen.

3rd Fiscal Period

6. M
 ethod of hedge
accounting

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012(1) ‌Method of hedge accounting
Special accounting is applied.
However, deferred hedge accounting isapplied for gains and losses succeeded from
Nippon Residential Investment Corporation
as a result of the merger.
(2) ‌Hedging instruments and hedged items
Hedging instruments
Interest rate swap transactions
Interest rate cap transactions
Hedged items
Loans
Investment corporation bonds(3) ‌Hedging policy
ADR conducts derivative transactions tohedge risks stipulated in ADR’s Articles ofIncorporation in accordance with its financial
policy.
(4) ‌Method for assessing the effectiveness ofhedging
The effectiveness of hedging is assessed bycomparing the cumulative changes in the
cash flows of the hedged items with the
cumulative changes in the cash flows ofhedging instruments, and examining thedegree of the changes in the former being
offset by the changes in the latter. However,assessment of the effectiveness is omitted
for interest rate swap transactions andinterest rate cap transactions that meet therequirements for special accounting for suchtransactions, and for those where thematerial terms and conditions for hedging
instruments and hedged items are identicaland a sustained effect to limit the impact ofinterest rate fluctuations within a certain
range is clearly expected.

(1) ‌Method of hedge accounting
Special accounting is applied.
(2) ‌Hedging instruments and hedged items
Hedging instruments
Interest rate swap transactions
Hedged items
Loans(3) ‌Hedging policy
ADR conducts derivative transactions tohedge risks stipulated in ADR’s Articles ofIncorporation in accordance with its financial
policy.
(4) ‌Method for assessing the effectiveness ofhedging
Assessment of the effectiveness is omitted
as the relevant transactions meet therequirements for special accounting.

7. ‌Other significant matters (1) ‌Method of accounting for beneficiary(1) ‌Method of accounting for beneficiarythat serve as basis forinterests in trust in real estate properties
interests in trust in real estate properties
preparing financial
For beneficiary interests in trust in real estate
For beneficiary interests in trust in real estate
statements
properties, all accounts of assets andproperties, all accounts of assets andliabilities within trust assets as well as all
liabilities within trust assets as well as all
accounts of revenue and expenses incurredaccounts of revenue and expenses incurredfrom the trust assets are recorded in thefrom the trust assets are recorded in therelevant account titles on the balance sheets
relevant account titles on the balance sheets
and statements of income.
and statements of income.
The following material titles of the trust
The following material titles of the trust
assets recorded in the relevant account titles
assets recorded in the relevant account titles
are separately stated on the balance sheets.
are separately stated on the balance sheets.
(i)‌Cash and deposits in trust(i)‌
Cash and deposits in trust(ii)‌Buildings in trust; structures(ii)‌Buildings in trust; structuresin trust; machinery andin trust; machinery andequipment in trust; tools,
equipment in trust; tools,
furniture and fixtures in trust;
furniture and fixtures in trust;land in trust; and leasehold
land in trust; and leasehold
rights in trust
rights in trust(iii) 	‌Tenant leasehold and security deposits(iii) 	‌Tenant leasehold and security deposits
in trust
in trust(2) ‌Method of accounting for consumption(2) ‌Method of accounting for consumption
taxes.
taxes.
The national and local consumption taxes are
The national and local consumption taxes are
excluded from business transaction
excluded from business transaction
amounts. However, accounting for fixedamounts. However, accounting for fixed
assets and deferred assets includes national
assets and deferred assets includes national
and local consumption taxes levied on them.
and local consumption taxes levied on them.

39

V. Notes to Financial Statements

Additional Information
3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

(Application of Accounting Standard for Accounting Changes
and Error Corrections)
Effective‌from the accounting changes and corrections ofpast errors to be conducted after the beginning of the 3rd
Fiscal Period, ADR applied the “Accounting Standard for
Accounting Changes and Error Corrections” (AccountingStandards Board of Japan Statement No. 24; December 4,2009) and the “Guidance on Accounting Standard for
Accounting Changes and Error Corrections” (AccountingStandards Board of Japan Guidance No. 24; December 4,2009).

-

Notes to Balance Sheets
3rd Fiscal Period

4th Fiscal Period*1. Minimum‌
net assets as stipulated in Article 67, Paragraph 4of the Act on Investment Trusts and Investment
Corporations*1. Minimum‌
net assets as stipulated in Article 67, Paragraph 4of the Act on Investment Trusts and Investment
Corporations

50,000 thousand yen

50,000 thousand yen(as of January 31, 2012)(as of July 31, 2012)

2. ADR‌
has signed term loan commitment agreements with its
banks of account.
13,000,000 thousand yen
Revolving line of credit
1,040,000 thousand yenLine of credit used
11,960,000 thousand yenLine of credit left unused

S-28 RESIDIA Kawasaki

40

2. ADR‌
has signed term loan commitment agreements with its
banks of account.
20,000,000 thousand yen
Revolving line of credit
1,500,000 thousand yenLine of credit used
18,500,000 thousand yenLine of credit left unusedNotes to Statements of Income
3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

*1. B reakdown of operating income (loss) from property
leasing activities*1. B reakdown of operating income (loss) from property
leasing activities(thousand yen)

A. Revenue from property leasing
Rental revenue – real estate
Rent income
Facility charge
Parking fee
Subtotal
Other revenue related to property leasing
Income from leasing rights
Miscellaneous income
Subtotal
Total revenue from property leasing
B. Expenses from property leasing
Rental expenses
Property taxes
Property management fees
Utilities
Repairs and maintenanceInsurance
Trust fee
Other rental expenses
Depreciation and amortization
Total expenses from property leasing
C. Operating income from property leasing (A−B)(thousand yen)

25,126
232,718
257,844
11,252,363

A. Revenue from property leasing
Rental revenue – real estate
Rent income
Facility charge
Parking fee
Subtotal
Other revenue related to property leasing
Income from leasing rights
Miscellaneous income
Subtotal
Total revenue from property leasing

545,682
777,737
180,557
322,033
21,03852,124403,439
1,900,033
4,202,648
7,049,715

B. Expenses from property leasing
Rental expenses
Property taxes
Property management fees
Utilities
Repairs and maintenanceInsurance
Trust fee
Other rental expenses
Depreciation and amortization
Total expenses from property leasing
C. Operating income from property leasing (A−B)

10,311,918
349,004
333,596
10,994,518*2. B reakdown of gain (loss) on sales of real estate properties

11,030,977
410,236
349,979
11,791,192
31,754
370,789402,544
12,193,737

555,528875,228
190,875
356,027
22,27557,772424,558
2,069,454
4,551,721
7,642,016-(thousand yen)

(RESIDIA Shibadaimon)
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other disposition expenses
Loss on sales of real estate properties

1,305,000
1,279,600
27,459
2,060(RESIDIA Hiroo)
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other disposition expenses
Loss on sales of real estate properties

655,000
641,282
14,807
1,090(RESIDIA Ookayama)
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other disposition expenses
Loss on sales of real estate properties

961,000
942,188
19,402
590(RESIDIA Ohi)
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other disposition expenses
Loss on sales of real estate properties

905,000
887,581
20,676
3,257(RESIDIA Ueno)
Proceeds from sales of real estate properties
Cost of sales of real estate properties
Other disposition expenses
Loss on sales of real estate properties

671,400
657,848
14,031479

41

V. Notes to Financial Statements

Notes to Statements of Changes in Unitholders’ Equity
3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

Total number of units authorized and total number of units issued and Total number of units authorized and total number of units issued andoutstanding
outstanding
Total number of units authorized		Total number of units authorized		
6,000,000 units
6,000,000 units
Total number of units issued and outstanding
Total number of units issued and outstanding
980,000 units
1,100,000 units

Notes on Tax-Effect Accounting
3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

1. Breakdown of primary causes for occurrence of deferred tax 1. Breakdown of primary causes for occurrence of deferred tax
assets and deferred tax liabilities
assets and deferred tax liabilities(thousand yen)

(Deferred tax assets)(thousand yen)

(Deferred tax assets)

Amount in excess of provision ofallowance for doubtful accounts

7,394

Amount in excess of provision ofallowance for doubtful accounts

7,701

Valuation difference on amountreceived at merger

13,860,698

Valuation difference on amountreceived at merger

13,568,536

Deficit brought forward

1,483,134

Deficit brought forward

1,483,134

814

Other

1,790

Other

Subtotal

15,352,041

Subtotal

15,061,164

Allowance for valuation- 15,352,041

Allowance for valuation- 15,061,164

Total deferred tax assets-

Total deferred tax assets-

Net deferred tax assets-

Net deferred tax assets-

2. Breakdown of significant components that caused difference 2. Breakdown of significant components that caused difference
between statutory income tax rate and effective income tax
between statutory income tax rate and effective income tax
rate after application of tax-effect accounting
rate after application of tax-effect accounting
(%)

(%)

Statutory income tax rate

39.33

39.33

(Adjustments)(Adjustments)

42

Statutory income tax rate

Increase (decrease) in allowance forvaluation- 78.65

Increase (decrease) from tax ratechange54.32

Deductible dividend amount- 15.13

Other

0.14

Effective income tax rate after
application of tax-effect accounting

0.02

Increase (decrease) in allowance forvaluation- 6.31

Deductible dividend amount- 33.17

Other

0.16

Effective income tax rate after
application of tax-effect accounting

0.01

Notes on Fixed Assets Used Under Lease
3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 20121. ‌Finance lease transactions other than those in which
ownership of the leased property is recognized totransfer to the lessee
Of the finance lease transactions without ownershiptransfer to lessee, those with the lease transaction
start date falling on a date earlier than July 1, 2008 aresubject to accounting in accordance with the method
adopted to ordinary rental transactions. The details
are as follows:

1. Finance lease transactions (as lessee)
Finance lease transactions without ownership transfer
to lessee(1) ‌Leased property
Intangible fixed asset
Software(2) ‌Depreciation method of leased property
Calculated on a straight-line basis over the lease
period as the useful life, without residual value.
Of the finance lease transactions without ownershiptransfer to lessee, those with the lease transaction
start date falling on a date earlier than July 1, 2008 is
subject to accounting in accordance with the method
adopted for ordinary rental transactions. The details
are as follows:(As lessee)(1) ‌Acquisition value equivalent, accumulated
depreciation equivalent and period-end balance
equivalent of the leased properties(As lessee)(1) ‌Acquisition value equivalent, accumulated
depreciation equivalent and period-end balance
equivalent of the leased properties(thousand yen)(thousand yen)

Acquisition Accumulated
value
depreciationequivalentequivalent

Period-end
balanceequivalentAcquisition
value
equivalent

Accumulated
depreciationequivalent

Period-end
balanceequivalent

Tools, furniture andfixtures in trust

6,974

3,191

3,782

Tools, furniture andfixtures in trust

6,974

3,546

3,428

Total

6,974

3,191

3,782

Total

6,974

3,546

3,428

(Note) Acquisition value equivalent is calculated using the inclusive-ofinterest method, as the period-end balance of future lease
payments payable accounts for only a small proportion of theperiod-end balance of property, plant and equipment.

(2) ‌Period-end balance equivalent of future lease
payments payable
Due within 1 year
Due after 1 year
Total

709 thousand yen
3,075 thousand yen
3,784 thousand yen(3) Lease payments paid and depreciation equivalent
Lease payments paid
Depreciation equivalent

354 thousand yen
354 thousand yen(4) Calculation‌
method of depreciation equivalent
Calculated on a straight-line basis over the lease
period as the useful life, without residual value.
2. Operating lease transactions(As lessee)
Future lease payments payable
Due within 1 year
Due after 1 year
Total

(Note) ‌Acquisition value equivalent is calculated using the inclusive-ofinterest method, as the period-end balance of future lease
payments payable accounts for only a small proportion of theperiod-end balance of property, plant and equipment.

(2) Period-end balance equivalent of future lease
payments payable
Due within 1 year
Due after 1 year
Total

709 thousand yen
2,720 thousand yen
3,429 thousand yen(3) Lease payments paid and depreciation equivalent
Lease payments paid
Depreciation equivalent

354 thousand yen
354 thousand yen(4) Calculation‌
method of depreciation equivalent
Calculated on a straight-line basis over the lease
period as the useful life, without residual value.
2. Operating lease transactions(As lessee)

140,076 thousand yen
3,069,270 thousand yen
3,209,346 thousand yen

Future lease payments payable
Due within 1 year
Due after 1 year
Total

136,428 thousand yen
2,921,644 thousand yen
3,058,072 thousand yen

Furthermore, estimated amounts are used for transactions
in which the lease amount is not finalized.
(As lessee)

Furthermore, estimated amounts are used for transactions
in which the lease amount is not finalized.
(As lessee)

Future lease payments receivable
Due within 1 year
Due after 1 year
Total

Future lease payments receivable
Due within 1 year
Due after 1 year
Total

2,797,456 thousand yen
4,348,437 thousand yen
7,145,894 thousand yen

4,116,391 thousand yen
7,233,632 thousand yen
11,350,023 thousand yen

43V. Notes to Financial Statements

Notes on Financial Instruments
3rd Fiscal Period (from August 1, 2011 to January 31, 2012)
1. Matters concerning status of financial instruments(1) ‌Policy for financial instruments usage
In order to secure stable earnings and steady growth of assets under management, ADR procures funds throughdebt financing, issuance of investment corporation bonds (including short-term investment corporation bonds;
same for below), issuance of units and other means of finance upon such occasions as purchasing real estate
properties and repaying debts. ADR may use derivatives only for the purpose of hedging the risk of interest rate
fluctuations and other risks arising from liabilities.
With regard to surplus funds, ADR will manage them as bank deposits, savings and negotiable deposits as a rule, inconsideration of safety and stability.
(2) ‌Description of financial instruments and associated risks, and risk management structure
Funds from debt financing and investment corporation bonds are used primarily to fund the acquisition of realestate properties, repay existing debts or redeem existing investment corporation bonds. With regard to suchfunds, ADR is exposed to liquidity risks where it may not be able to find alternative financing means upon
repayment or redemption maturity. ADR manages the risks through monthly review of payment schedules tomonitor the cash positions, and limits the risks by securing cash reserves, spreading out the debt repayment andbond redemption dates, diversifying the lending financial institutions, signing term loan commitment agreements,
and procuring funds through various means including issuance of units.
In addition, ADR limits the risk of interest rate fluctuations to which debt financing and investment corporation
bonds with floating interest rates are exposed, by utilizing derivatives (interest rate swap transactions, etc.).
Deposits are exposed to the risk of failure of the financial institutions holding the deposits and other credit risks.
ADR limits the risks by setting certain limits to the duration of deposits and a minimum credit rating for thefinancial institutions holding the deposits, and by diversifying the financial institutions holding the deposits.
(3) ‌Supplementary explanation on fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, may include values based onreasonable calculations when there is no market price. Certain assumptions are adopted in calculating thosevalues, and there may be cases where the values will vary when different assumptions are adopted. As for thecontract value and other conditions of derivatives transactions, the value itself is not an indicator showing themarket risks related to such transactions.
2. ‌Fair values of financial instruments
The following are the book values recorded on the balance sheets, fair values and their difference as of January 31, 2012.
(1) Cash and deposits(2) Cash and deposits in trust(3) Short-term investment securities(4) Short-term loans payable(5) Current portion of investment corporation bond(6) Current portion of long-term loans payable(7) Investment corporation bond(8) Long-term loans payable(9) Derivative transactions (Note 2)

Book value(thousand yen)
9,165,380

Fair value(thousand yen)
9,165,380

Difference(thousand yen)

5,844,046

5,844,046-

2,000,000

2,000,000--(1,040,000)(1,045,240)

5,240(31,500,000)(31,553,090)

53,090187,016(40,505,729)(40,692,745)(10,000,000)(10,004,400)

4,400(111,956,450)(113,114,402)

1,157,952-- 268,495- 268,495

Notes ‌1. Items that are charged to liabilities are shown in parentheses ( ).
2. ‌Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial Instruments” (issued by
the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly, the fair value is not reflected to the balance
sheets.
3. ‌‌Calculation method for fair value of financial instruments(1) ‌Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately equal to book value and is thus stated at that book value.
(3) ‌Short-term investment securities
As these are negotiable deposits and settled within a short period of time, the fair value is approximately equal to book value and is thus stated at thatbook value.
(4) ‌Short-term loans payable; (6) Current portion of long-term loans payable; (8) Long-term loans payable
The fair value of these is calculated based on the present value found by discounting the sum total amount of principal and interest by the interest rate
assumed as being applicable in the event of drawdown of a similar debt financing.
(5) ‌Current portion of investment corporation bond; (7) Investment corporation bond
The fair value of these is calculated based on the reference value quoted by Japan Securities Dealers Association. However, when there is no reference
value, the fair value of these is calculated based on the present value found by discounting the sum total amount of principal and interest by the interest
rate assumed as being applicable in the event of drawdown of a similar debt financing.
(9) ‌Derivative transactions(i) Transactions for which hedge accounting is not applied
Not applicable.

44(ii) T‌ ransactions for which hedge accounting is applied
The following is the contract amount or amount equivalent to the principal provided in the contract, etc. as of the closing of accounts for eachmethod of hedge accounting.
(thousand yen)Contract amount (*1)

Method of hedge
accounting

Special provisions
for interest rate
swaps

Type of derivative transactions Main hedged item

Interest rate swap
transaction
Payable fixed; Receivable
floating

Fair value (*2)

Of which,exceeding 1 year

Long-termloans payable

97,868,061- 268,495 (*3)

88,289,090(*1) The contract amount is based on notional principal.
(*2) The‌
fair value is based on the calculation conducted by the counterparty to the relevant transaction on the basis of the going rate of interest.
(*3) ‌Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial Instruments”(issued by the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly, the fair value is not reflectedto the balance sheets.
4.
‌ Financial instruments for which discerning of fair value is recognized to be extremely difficult
Investment securities
Silent partnership equity interests (carrying amount: 290,042 thousand yen) are not subject to disclosure of fair value because discerning of fair value isrecognized to be extremely difficult since there is no market price for them.
(thousand yen)
5. Amount of redemption of monetary claims and short-term investment securities scheduled to be due after closing of accounts

Due within 1 year

Due after 1 year,
Due after 2
Due after 3
Due after 4
but within 2 years, but within years, but within years, but within Due after 5 years
years
3 years
4 years
5 years

Cash and deposits

9,165,380

-

-

-

-

-

Cash and deposits in trust

5,844,046

-

-

-

-

-

Short-term investment
securities

2,000,000

-

-

-

-

-

17,009,427

-

-

-

-

-

Total

6.
‌ Amount of repayment of loans and investment corporation bonds scheduled to be due after closing of accounts

(thousand yen)

Due after 1 year,
Due after 2
Due after 3
Due after 4
Due within 1 year but within 2 years, but within years, but within years, but within Due after 5 years
years
3 years
4 years
5 years

Short-term loans payable

1,040,000

-

-

-

-

-

Current portion of
investment corporationbond

31,500,000

-

-

-

-

-

Current portion of longterm loans payable

40,505,729

-

-

-

-

-

Investment corporation
bond

-

-

-

-

8,000,000

2,000,000

Long-term loans payable-

26,144,855

20,471,133

16,618,311

18,425,822

30,296,329

73,045,729

26,144,855

20,471,133

16,618,311

26,425,822

32,296,329

Total

C-58 RESIDIA Ochanomizu

45

V. Notes to Financial Statements

4th Fiscal Period (from February 1, 2012 to July 31, 2012)
1. Matters concerning status of financial instruments(1) ‌Policy for financial instruments usage
In order to secure stable earnings and steady growth of assets under management, ADR procures funds throughdebt financing, issuance of investment corporation bonds (including short-term investment corporation bonds;
same for below), issuance of units and other means of finance upon such occasions as purchasing real estate
properties and repaying debts.
ADR may use derivatives only for the purpose of hedging the risk of interest rate fluctuations and other risks
arising from liabilities.
With regard to surplus funds, ADR will manage them as bank deposits, savings and negotiable deposits as a rule, inconsideration of safety and stability.
(2) ‌Description of financial instruments and associated risks, and risk management structure
Funds from debt financing and investment corporation bonds are used primarily to fund the acquisition of realestate properties, repay existing debts or redeem existing investment corporation bonds. With regard to suchfunds, ADR is exposed to liquidity risks where it may not be able to find alternative financing means upon
repayment or redemption maturity. ADR manages the risks through monthly review of payment schedules tomonitor the cash positions, and limits the risks by securing cash reserves, spreading out the debt repayment andbond redemption dates, diversifying the lending financial institutions, signing term loan commitment agreements,
and procuring funds through various means including issuance of units.
In addition, ADR limits the risk of interest rate fluctuations to which debt financing and investment corporation
bonds with floating interest rates are exposed, by utilizing derivatives (interest rate swap transactions, etc.).
Deposits are exposed to the risk of failure of the financial institutions holding the deposits and other credit risks.
ADR limits the risks by setting certain limits to the duration of deposits and a minimum credit rating for thefinancial institutions holding the deposits, and by diversifying the financial institutions holding the deposits.
(3) ‌Supplementary explanation on fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, may include values based onreasonable calculations when there is no market price. Certain assumptions are adopted in calculating thosevalues, and there may be cases where the values will vary when different assumptions are adopted. As for thecontract value and other conditions of derivatives transactions, the value itself is not an indicator showing themarket risks related to such transactions.
2. ‌Fair values of financial instruments
The following are the book values recorded on the balance sheets, fair values and their difference as of July 31,
2012.
Book value(thousand yen)

Fair value(thousand yen)

Difference(thousand yen)

(1) Cash and deposits

6,701,044

6,701,044-(2) Cash and deposits in trust

7,055,796

7,055,796-(3) Short-term investment securities

4,500,000

4,500,000-(4) Short-term loans payable(1,500,000)(1,505,438)5,438(5) Current portion of investment corporation bond

(19,500,000)(19,515,000)

15,000(6) Current portion of long-term loans payable(35,212,200)(35,424,426)

212,226(7) Investment corporation bond

(18,000,000)(18,107,200)

107,200(8) Long-term loans payable(132,132,311)(133,477,485)

1,345,174-- 713,789- 713,789(9) Derivative transactions (Note 2)

Notes ‌1. Items that are charged to liabilities are shown in parentheses ( ).
2. ‌Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial Instruments” (issued by
the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly, the fair value is not reflected to the balance
sheets.
3. ‌Calculation method for fair value of financial instruments(1) ‌Cash and deposits; (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately equal to book value and is thus stated at that book value.
(3) ‌Short-term investment securities
As these are negotiable deposits and settled within a short period of time, the fair value is approximately equal to book value and is thus stated at thatbook value.
(4) Short-term loans payable; (6) Current portion of long-term loans payable; (8) Long-term loans payable
The fair value of these is calculated based on the present value found by discounting the sum total amount of principal and interest by the interest rate
assumed as being applicable in the event of drawdown of a similar debt financing.
(5) Current portion of investment corporation bond; (7) Investment corporation bond
The fair value of these is calculated based on the reference value quoted by Japan Securities Dealers Association. However, when there is no reference
value, the fair value of these is calculated based on the present value found by discounting the sum total amount of principal and interest by the interest
rate assumed as being applicable in the event of drawdown of a similar debt financing.

46

(9) Derivative transactions(i) ‌Transactions for which hedge accounting is not applied
Not applicable.
(ii) ‌Transactions for which hedge accounting is applied
The following is the contract amount or amount equivalent to the principal provided in the contract, etc. as of the closing of accounts for eachmethod of hedge accounting.
(thousand yen)

Method of hedge
accounting

Type of derivativetransactions

Main hedged item

Special provisions forinterest rate swaps

Interest rate swap
transaction
Payable fixed;
Receivable floating

Long-term loans
payableContract amount (*1)
Of which,exceeding 1 year
125,043,174

Fair value (*2)

- 713,789 (*3)

115,367,488

		(*1) The contract amount, etc. is based on notional principal.
(*2) The‌
fair value is based on the calculation conducted by the counterparty to the relevant transaction on the basis of the going rate of interest.
		 (*3) ‌Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial Instruments”(issued by the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly, the fair value is not reflected tothe balance sheets.
4. ‌Financial instruments for which discerning of fair value is recognized to be extremely difficult
Investment securities
Silent partnership equity interests (carrying amount: 441,066 thousand yen) are not subject to disclosure of fair value because discerning of fair value isrecognized to be extremely difficult since there is no market price for them.
(thousand yen)
5. Amount of redemption of monetary claims and short-term investment securities scheduled to be due after closing of accounts

Due after 1 year, Due after 2 years, Due after 3 years, Due after 4 years, Due after 5 years
Due within 1 year but
within 2 years but within 3 years but within 4 years but within 5 years

Cash and deposits

6,701,044

-

-

-

-

-

Cash and deposits in trust

7,055,796

-

-

-

-

-

Short-term investment
securities

4,500,000

-

-

-

-

-

18,256,841

-

-

-

-

-

Total

6. Amount of repayment of loans and investment corporation bonds scheduled to be due after closing of accounts

(thousand yen)

Due after 1 year, Due after 2 years, Due after 3 years, Due after 4 years,
Due within 1 year but within 2 years but within 3 years but within 4 years but within 5 years Due after 5 years

Short-term loans payable

1,500,000

-

-

-

-

-

Current portion of
investment corporationbond

19,500,000

-

-

-

-

-

Current portion of longterm loans payable

35,212,200

-

-

-

-

-

Investment corporation
bond

-

-

4,000,000-

12,000,000

2,000,000

Long-term loans payable-

29,705,215

19,448,195

28,273,072

22,859,500

31,846,329

56,212,200

29,705,215

23,448,195

28,273,072

34,859,500

33,846,329

Total

47

V. Notes to Financial Statements

Notes on Value of Rental Properties
3rd Fiscal Period (from August 1, 2011 to January 31, 2012)
ADR owns mainly residential rental properties in Tokyo and other regions. The following are the book value, amountof change during the period and fair value of these properties.
(thousand yen)Book value (Note 1)
Initial balance

Amount of change during theperiod (Note 2)

330,276,882

7,439,324

Period end balance

Period end fair value (Note 3)

337,716,207

338,028,100

Notes ‌1. The book value is cost of acquisition less accumulated depreciation.
2. ‌The amount of change during the period is mainly attributable to increase from acquisition of 4 real estate (7,988,962 thousand yen) and 2 real estate
beneficiary interests in trust (5,499,150 thousand yen), and to decrease from disposition of 1 real estate (942,188 thousand yen) and disposition of 4 realestate beneficiary interests in trust (3,466,314 thousand yen), and posting of depreciation.
3. The period end fair value is the appraisal or investigated value provided by an outside real estate appraiser.

For the 3rd Fiscal Period operating income from property leasing, please refer to aforementioned “Notes to Statements ofIncome”.
4th Fiscal Period (from February 1, 2012 to July 31, 2012)
ADR mainly owns residential rental properties in Tokyo and other regions. The following are the book value, amountof change during the period and fair value of these properties.
(thousand yen)Book value (Note 1)
Initial balance

Amount of change during theperiod (Note 2)

337,716,207

25,539,621

Period end balance

Period end fair value (Note 3)

363,255,828

366,860,700

Notes 1. The book value is cost of acquisition less accumulated depreciation.
2. The amount of change during the period is mainly attributable to increase from acquisition of 17 real estate beneficiary interests in trust(27,463,051 thousand yen), and to decrease as a result of posting of depreciation.
3. The period end fair value is the appraisal or investigated value provided by an outside real estate appraiser.

For the 4th Fiscal Period operating income from property leasing, please refer to aforementioned “Notes toStatements of Income”.

C-60 RESIDIA Nakamurabashi

48

Notes on Transactions with Related Parties
3rd Fiscal Period (from August 1, 2011 to January 31, 2012)
Classification

Business
Share of
Name of related party description or units held Nature of transaction
occupationin ADR

Transaction
amount(thousand yen)Account

Interested
parties

ITOCHU Urban
Community Ltd.

Entrustment ofproperty
management (Note 2)

548,740

Operatingaccounts
payableAssetcustodian

The Sumitomo Trust& Banking Co., Ltd.

Real estatebusiness

Bankingbusiness
and trustbusiness-

Borrowing(repayment) offunds (Note 3)-

5,210,000(3,374,685)

Balance at endof period(thousand yen)
43,031(Note 1)

Short-termloans payable

320,000

Current
portion of
long-termloans payable

7,967,651

Long-termloans payable

13,697,230

Transaction terms and conditions, and policy on determining transaction terms and conditions
Notes 1. The transaction amount includes consumption taxes.
2. Transaction terms and conditions are negotiated and decided based on market price.
3. Interest rates on borrowings are reasonably determined based on market interest rates.

4th Fiscal Period (from February 1, 2012 to July 31, 2012)
Classification

Name of related party

Businessof units
description or Shareheld in ADR
occupation

Interested
parties

ITOCHU Corporation

Generaltradingcompany

Interested
parties

ITOCHU Urban
Community Ltd.

Real estatebusinessAssetcustodian

Sumitomo Mitsui
Trust Bank, Limited

Bankingbusiness andtrust
business

directownership
3.16%
indirectownership
0.45%-

Nature oftransaction

Acquisition of
beneficiaryinterests intrust (Note 1)

Entrustmentof property
management

Transaction
amount(thousand yen)

Borrowing(repayment) offunds (Note 5)

Balance at endof period(thousand yen)

8,198,862(Note 2) (Note 3)

612,493(Note 4)-

Account

9,608,000(9,148,460)(Note 6)-

Operatingaccounts payable-

49,013(Note 3)

Short-term loans
payable450,000

Current portionof long-termloans payable

9,445,992

Long-term loans
payable17,529,124

Transaction terms and conditions, and policy on determining transaction terms and conditions
Notes 1. ‌Purchase price of beneficiary interests in trust is determined through negotiations, with reference to actual transaction results in neighboring areas andappraisal values provided by real estate appraisers.
2. The transaction amount for the purchase of beneficiary interests in trusts includes 24,205 thousand yen ADI paid to the seller as property taxes.
3. The transaction amount includes consumption taxes.
4. Transaction terms and conditions are negotiated and decided based on market price.
5. Interest rates on borrowings are reasonably determined based on market interest rates.
6. ‌Of the transaction amount, the portion generated on and before March 31, 2012 is from transactions with The Sumitomo Trust & Banking Co., Ltd., a former
body before merger.

49

V. Notes to Financial Statements

Notes on Per Unit Information
3rd Fiscal Period (Reference)

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

Net assets per unit		

160,640 yen

Earnings per unit		

4,079 yen

From: February 1, 2012
To: July 31, 2012

The net income per unit was calculated by dividing net incomeby the day-weighted average number of units issued andoutstanding for the fiscal period.
The diluted net income per unit was not stated as there are no
diluted units since no warrants and convertible bonds were
outstanding.

Net assets per unit		

157,413 yen

Earnings per unit		

4,198 yen

The net income per unit was calculated by dividing net incomeby the day-weighted average number of units issued andoutstanding for the fiscal period.
The diluted net income per unit was not stated as there are no
diluted units since no warrants and convertible bonds were
outstanding.

(Note) The following numbers were used to calculate the earnings per unit.

3rd Fiscal Period (Reference)
From: August 1, 2011
To: January 31, 2012

Net income (thousand yen)Amount not attributable to common unitholders (thousand yen)
Net income attributable to common unit (thousand yen)
Average number of units during the period (units)

R-42 RESIDIA Nishijin

50

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012

3,997,454

4,611,435--

3,997,454

4,611,435

980,000

1,098,462

Significant Subsequent Events
3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012
1. Acquisition‌of Assets
ADR acquired the following assets in accordance with the basic policy for
asset management provided in its Articles of Incorporation.
(1) ‌RESIDIA Sasazuka II
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 3,760 million yen
Acquisition date: February 24, 2012
Location:
2-25-6 Sasazuka, Shibuya-ku, Tokyo
Area:(Land) 1,217.79m2; (Building) 5,504.20m2
Structure:
RC with flat roof; 15F
Completion date: January 2011
(2) RESIDIA MonzennakachoType of asset:
Real estate beneficiary interests in trust
Acquisition price: 970 million yen
Acquisition date: February 28, 2012
Location:
2-36-4 Eitai, Koto-ku, Tokyo
Area:(Land) 367.12m2; (Building) 1,680.27m2
Structure:
SRC with flat roof; 11F
Completion date: February 2005
(3) RESIDIA Nakamurabashi
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 1,075 million yen
Acquisition date: February 28, 2012
Location:
3-14-6 Nakamura, Nerima-ku, Tokyo
Area:(Land) 527.96m2; (Building) 1,639.30m2
Structure:
RC with flat roof; 8F
Completion date: February 2008

(4) RESIDIA Kachidoki
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 1,805 million yen
Acquisition date: February 28, 2012
Location:
4-2-11 Kachidoki, Chuo-ku, Tokyo
Area:(Land) 403.46m2; (Building) 3,447.18m2
Structure:
RC with flat roof; B1F/12F
Completion date: February 2008

(5) RESIDIA Kinshicho III
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 651 million yen
Acquisition date: February 28, 2012
Location:
1-6-14 Mouri, Koto-ku, Tokyo
Area:(Land) 375.75m2; (Building) 1,412.90m2
Structure:
RC with flat roof; 8F
Completion date: February 2005

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012
Issuance of Investment Corporation Bonds
Based on the “General Resolution on Bond Issuance” resolved by the Boardof Directors’ Meeting held on April 26, 2012, ADR issued investment
corporation bonds on September 12, 2012 under the following terms andconditions.
(1) ‌ADR Unsecured Bond #17 (with Pari Passu clause among specified
investment corporation bonds)
Total amount of bonds:
8,000 million yen
Issue price:
100 yen par value of 100 yen for each bondCoupon rate:
0.87%
Collateral/Guarantee:
No collateral or guarantee
Redemption date:
ADR will redeem the entire amount on
September 12, 2017. The bonds may bepurchased and cancelled at any time on andafter the date following the issue dateunless otherwise stipulated by thedepository.
Coupon payment dates:
March 12 and September 12 every year
Use of proceeds:
The proceeds will be used to redeem the
Nippon Residential Investment
Corporation’s 10th Series Unsecured
Investment Corporation Bond that is due on
September 13, 2012 (4,800 million yen) andthe Nippon Residential Investment
Corporation’s 3rd Series Unsecured
Investment Corporation Bond that is due on
September 24, 2012 (9,700 million yen).
‌
Unsecured Bond #18 (with Pari Passu clause among specified(2) ADR
investment corporation bonds)
Total amount of bonds:
4,000 million yen
Issue price:
100 yen par value of 100 yen for each bondCoupon rate:
1.23%
Collateral/Guarantee:
No collateral or guarantee
Redemption date:
ADR will redeem the entire amount on
September 12, 2019. The bonds may bepurchased and cancelled at any time on andafter the date following the issue dateunless otherwise stipulated by thedepository.
Coupon payment dates:
March 12 and September 12 every year
Use of proceeds:
The proceeds will be used to redeem the
Nippon Residential Investment
Corporation’s 10th Series Unsecured
Investment Corporation Bond that is due on
September 13, 2012 (4,800 million yen) andthe Nippon Residential Investment
Corporation’s 3rd Series Unsecured
Investment Corporation Bond that is due on
September 24, 2012 (9,700 million yen).

(6) RESIDIA Minami-Gyotoku
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 823 million yen
Acquisition date: February 28, 2012
Location:
2-7-18 Ainokawa, Ichikawa-shi, Chiba
Area:(Land) 941.00m2; (Building) 2,258.62m2
Structure:
RC with flat roof; 5F
Completion date: February 2005

51

V. Notes to Financial Statements

3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012
(7) RESIDIA Urayasu II
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 802 million yen
Acquisition date: February 28, 2012
Location:
2-22-7 Kitazakae, Urayasu-shi, Chiba
Area:(Land) 901.00m2; (Building) 1,651.93m2
Structure:
RC with flat roof; 6F
Completion date: February 2005
(8) RESIDIA Gyotoku
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 761 million yen
Acquisition date: February 28, 2012
Location:
4-13-22 Gyotoku-Ekimae, Ichikawa‐shi, Chiba
Area:(Land) 810.00m2; (Building) 1,756.33m2
Structure:
RC with flat roof; 6F
Completion date: February 2005
(9) RESIDIA NishijinType of asset:
Acquisition price:
Acquisition date:
Location:

Real estate beneficiary interests in trust
2,380 million yen
February 28, 2012
4-6-12 Nishijin, Sawara-ku, Fukuoka-shi,
Fukuoka
Area:(Land) 1,944.05m2; (Building) 9,233.43m2
Structure:
RC with flat roof; 14F
Completion date: January 2008(10) RESIDIA Tsurumai
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 1,206 million yen
Acquisition date: February 28, 2012
Location:
3-3-8 Chiyoda, Naka-ku, Nagoya-shi, Aichi
Area:(Land) 661.98m2; (Building) 3,389.13m2
Structure:
RC with flat roof; 13F
Completion date: February 2008(11) RESIDIA Kobe-Isogami
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 2,740 million yen
Acquisition date: February 28, 2012
Location:
3-1-20 Isogamidori, Chuo-ku, Kobe-shi, Hyogo
Area:(Land) 1,196.23m2; (Building) 7,438.91m2
Structure:
RC with flat roof; B1F/15F
Completion date: March 2008(12) RESIDIA Bunkyo-Otowa II
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 2,268 million yen
Acquisition date: February 29, 2012
Location:
2-11-15 Otowa, Bunkyo-ku, Tokyo
Area:(Land) 547.29m2; (Building) 4,110.90m2
Structure:
RC, SRC with flat roof; B1F/11F
Completion date: February 2008

52

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012

3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012(13) RESIDIA Ochanomizu
Type of asset:
Real estate beneficiary interests in trust
Acquisition price: 2,090 million yen
Acquisition date: March 1, 2012
Location:
3-1-4 Yushima, Bunkyo-ku, Tokyo
Area:(Land) 553.55m2; (Building) 3,674.78m2
Structure:
SRC, RC with flat roof; 17F
Completion date: September 2005
(14) RESIDIA Omori
Type of asset:
Acquisition price:
Acquisition date:
Location:
Area:
Structure:
Completion date:

Real estate beneficiary interests in trust
1,150 million yen
March 1, 2012
1-13-10 Omorikita, Ota-ku, Tokyo(Land) 317.47m2; (Building) 1,769.98m2
RC with flat roof; 14F
March 2006(15) RESIDIA Esaka
Type of asset:
Acquisition price:
Acquisition date:
Location:
Area:
Structure:
Completion date:

Real estate beneficiary interests in trust
989 million yen
March 1, 2012
1-14-25, Esaka-cho, Suita-shi, Osaka(Land) 570.00m2; (Building) 2,790.89m2
RC with flat roof; 13F
July 2007(Note) ‌The acquisition price is each exclusive of the amount of reimbursementof the pro rata portion of the amount equivalent to property tax, urban
planning tax and depreciable asset tax, as well as consumption tax andlocal consumption tax.
2. Debt Financing
ADR conducted debt financing listed below to fund the acquisition of theabove-mentioned real estate beneficiary interests in trust and redemption of
investment corporation bonds.
(1) Short-term loan (term: 1 year)
Lender(s):The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Sumitomo Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
Debt financing amount:
3,400 million yen
Interest rate:
Base rate (JBA 1-month Japanese Yen TIBOR) +1.05%
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:February 8, 2012
Repayment date:February 8, 2013
(2) Long-term loan (term: 3 years and 6 months)
Lender(s):Mizuho Trust & Banking Co., Ltd.
Debt financing amount:
1,000 million yen
Interest rate:
Base rate (JBA 1-month Japanese Yen TIBOR) +0.57%
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:February 8, 2012
Repayment date:July 31, 201553

V. Notes to Financial Statements

3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012
(3) Long-term loan (term: 3 years and 6 months)
Lender(s): The Yamaguchi Bank, Ltd.
The Tokyo Tomin Bank, Ltd.
The Iyo Bank, Ltd.
Debt financing amount: 1,300 million yen
Interest rate: Base rate (JBA 3-month Japanese Yen TIBOR) +0.57%
Debt financing method: Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date: February 8, 2012
Repayment date: July 31, 2015(4) Long-term loan (term: 4 years and 6 months)
Lender(s):Resona Bank, Limited
The Bank of Fukuoka, Ltd.
The Yamaguchi Bank, Ltd.
The Tokyo Tomin Bank, Ltd.
The Iyo Bank, Ltd.
Debt financing amount:
4,300 million yen
Interest rate:
1.1050%(The borrowing interest is practically fixed at
this rate by an interest rate swap agreement
executed for the purpose of fixing the interest
rate.)
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:February 8, 2012
Repayment date:July 29, 2016
(5) Long-term loan (term: 6 years and 6 months)
Lender(s):The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Sumitomo Trust & Banking Co., Ltd.
Shinsei Bank, Limited
Debt financing amount:
2,000 million yen
Interest rate:
1.4240%(The borrowing interest is practically fixed at
this rate by an interest rate swap agreement
executed for the purpose of fixing the interest
rate.)
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:February 8, 2012
Repayment date:July 31, 2018(6) Short-term loan (term: 1 year)
Lender(s):The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Sumitomo Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
Debt financing amount:
3,100 million yen
Interest rate:
Base rate (JBA 1-month Japanese Yen TIBOR) +0.95%
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:February 28, 2012
Repayment date:February 28, 2013
(7) Long-term loan (term: 6 years)
Lender(s):The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Debt financing amount:
2,850 million yen
Interest rate:
1.2325%
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:February 28, 2012
Repayment date:February 28, 2018

54

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012

3rd Fiscal Period

From: August 1, 2011
To: January 31, 2012

4th Fiscal Period

From: February 1, 2012
To: July 31, 2012(8) Short-term loan (term: 1 year)
Lender(s):The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Sumitomo Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
Debt financing amount:
3,050 million yen
Interest rate:
Base rate (JBA 1-month Japanese Yen TIBOR) +0.95%
Debt financing method:
Unsecured, unguaranteed and lump-sum
repayment at maturity
Drawdown date:
March 1, 2012
Repayment date:February 28, 2013
3. Issuance of New Units
ADR passed a resolution at a meeting of the board of directors of ADR heldon January 12, 2012 on issuance of new units to procure funds for theacquisition of real estate (specified assets) and other purposes. Payments forthe issuance of new units through public offering were completed on
February 1, 2012 and payments for the issuance of new units by way ofthird-party allotment were completed on February 29, 2012.
As a result, paid-in capital totaled 80,087,298,304 yen with the number ofunits issued and outstanding increasing to 1,100,000 units.
(Issuance of New Units through Public Offering (Primary Offering))
Number of units issued:
110,000 units
Issue price:
133,770 yen per unit
Total issue price:
14,714,700,000 yen
Paid-in amount:
129,379 yen per unit
(Underwriting amount)
Total paid-in amount
14,231,690,000 yen
Payment deadline
February 1, 2012
(Issuance of New Units by Way of Third-Party Allotment)
Number of units issued:
10,000 units
Paid-in amount:
129,379 yen per unit
Total paid-in amount:
1,293,790,000 yen
Application period:
February 28, 2012
(Application deadline)
Payment deadline
February 29, 2012
AllotteeMizuho Securities Co., Ltd.

R-43 RESIDIA Tsurumai

55

VI. Statements of Cash Distributions
(yen)

3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

I. Unappropriated retained earnings

3,997,454,500

4,611,435,000

II. Reversal of reserve for dividends

412,545,500

584,965,000

4,410,000,000

5,196,400,000(4,500)(4,724)00

In accordance with the distribution policy provided in
Article 32, Item 1 of its Articles of Incorporation, ADR
shall pay dividends in excess of 90% of its distributable
income as stipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation. In addition, inorder to make stable dividend payouts into the future,
ADR shall use reserve for dividends and absorb the
impact on dividends in the event of loss on sales(impairment) of properties as well.

In accordance with the distribution policy provided in
Article 32, Item 1 of its Articles of Incorporation, ADR
shall pay dividends in excess of 90% of its distributable
income as stipulated in Article 67-15 of the Act on
Special Measures Concerning Taxation. In addition,
ADR may use reserve for dividends in order to makestable dividend payouts into the future, and shallinvestigate an increase in dividends in accordance withthe performance when it has achieved good operating
results.

III. Amount of dividends(Amount of dividends per unit)
IV. Retained earnings carried forward
Method of calculation of amount of dividends

Based on the policy above, ADR decided on dividendsof earnings totaling 4,410,000,000 yen for the 3rd
Fiscal Period, which was arrived at by adding reversalof reserve for dividends of 412,545,500 yen to theunappropriated retained earnings of 3,997,454,500
yen.

Based on the policy above, ADR decided on dividendsof earnings totaling 5,196,400,000 yen for the 4th
Fiscal Period, which was arrived at by adding reversalof reserve for dividends of 584,965,000 yen to theunappropriated retained earnings of 4,611,435,000 yen.

Furthermore, ADR does not distribute cash in excess ofearnings, as provided in Article 32, Item 2 of its Articles
of Incorporation.

Furthermore, ADR does not distribute cash in excess ofearnings, as provided in Article 32, Item 2 of its Articles
of Incorporation.

R-44 RESIDIA Kobe-Isogami

56

VII. Independent Auditor’s Report

This is a copy of the independent auditor’s report issued originally for the Japanese statutory report, presenting the opinion that it presents
fairly, in all material respects, the financial position and the results of operations for the period for which it was prepared.

Disclaimer
This financial report is an English translation of a Japanese financial report originally made available in Japan in accordance with the Act on Investment Trusts andInvestment Corporations of Japan. This English-language financial report has been prepared solely for the convenience of readers outside Japan and is notintended to constitute a document for an offer to sell, or seeking an offer to buy, any securities of Advance Residence Investment Corporation.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to the concept of the equivalent Japaneseterms. With respect to any and all terms herein, including without limitation, financial statements, if there exist any discrepancies in the meaning orinterpretation thereof between the original Japanese documents and English translation contained herein, the original Japanese documents will always govern
the meaning and interpretation.
Although every effort is made to provide accurate translation, neither Advance Residence Investment Corporation, AD Investment Management Co., Ltd. nor anyof their respective directors, officers, employees, partners, unitholders, agents, affiliates nor their advisors shall be responsible or liable for the completeness,
appropriateness, or accuracy of English translations or the selection of the portion(s) of any document(s) translated into English.
The financial statements of Advance Residence Investment Corporation have been prepared in accordance with generally accepted accounting principles in Japan(Japanese GAAP), which may materially differ in certain respects from the generally accepted accounting principles of other jurisdictions.
This fiscal report contains forward-looking statements. These statements appear in a number of places in this fiscal report and include statements regarding theintent, belief, or current and future expectations of Advance Residence Investment Corporation or AD Investment Management Co., Ltd. with respect to its
business, financial condition and results of operations. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,”“would,” “expect,” “plan,” “anticipate,” “believe,” ”estimate,” “predict,” “potential,” or the negative of these terms or other similar terminology. Thesestatements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results, performance or achievements, or thoseof the industries in which we operate, may differ materially from any future results, performance or achievements expressed or implied by these forward‐looking
statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise
and involve known and unknown risks and uncertainties. Accordingly, readers of this document should not interpret the forward-looking statements included
herein as predictions or representations of future events or circumstances.
Potential risks and uncertainties also include those identified and discussed in this document. Given these risks and uncertainties, readers of this document are
cautioned not to place undue reliance on forward‐looking statements, which are only valid as of the date of the information published herein. We disclaim any
obligation to update or, except in the limited circumstances required by the Tokyo Stock Exchange, announce publicly any revisions to any of the forward-looking
statements contained in these documents.

57

(Reference Information)
VIII. Statements of Cash Flows(thousand yen)

3rd Fiscal Period 4th Fiscal Period

From: August 1, 2011 From: February 1, 2012
To: January 31, 2012
To: July 31, 2012
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of unit issuance expenses
Amortization of investment corporation bond issuance costs
Expenses related to issuance of units
Increase (decrease) in allowance for doubtful accounts
Interest income
Interest expenses
Interest expenses on investment corporation bonds
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Loss on sales of property, plant and equipment
Loss on sales of property, plant and equipment in trust
Decrease (increase) in long‐term prepaid expenses
Other, net
Subtotal
Payments for loss on disaster
Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short‐term investment securities
Proceeds from sales of short‐term investment securities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Proceeds from tenant leasehold and security deposits, net
Proceeds from tenant leasehold and security deposits in trust, net
Proceeds from collection of paid tenant leasehold and security deposits
Proceeds from collection of paid tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Purchase of investment securities
Proceeds from reimbursement of investment securities
Repayments of long-term deposits received
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Payments for investment corporation bond issuance costs
Proceeds from issuance of units
Payments of unit issuance expenses
Expenses related to issuance of units
Repayments of finance lease liabilities
Dividends paid
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

3,998,059
1,900,332
5,732
8,741
- 18,262- 9,848
1,263,473
364,055
30,402- 12,767- 6,352- 152,339- 17,610
36,432
13,387- 84,198
942,188
3,466,314- 65,827- 2,074
11,659,838- 30,808
4,368- 1,731,697- 405
9,901,294

4,612,040
2,071,571
8,100
11,43914,711899- 10,467
1,311,406
246,749- 27,050- 19,011- 97,935- 2,31184,910- 10,153
4,620- 74,659- 7,341
8,117,517
3,856- 1,671,517- 4,3816,445,475- 3,000,000
2,500,000- 2,000,000
3,000,000- 8,052,134- 5,481,268- 136,171
40,52015,389- 186,869- 289,843- 6,348- 13,596,725- 2,000,000
3,000,000- 4,500,000
2,000,000- 60,878- 27,615,375- 8,087
272,156
17,2604,485- 161,199
10,000- 6,348- 29,047,988

4,420,000- 3,380,000
42,650,000- 30,327,033
10,000,000- 15,000,000- 54,215- 4,416,638
3,892,112
196,682
11,812,744*1 12,009,427

9,550,000- 9,090,000
36,750,000- 21,867,668
8,000,000- 12,000,000- 39,968
15,525,480- 14,208- 42,528- 1,360- 4,419,819
22,349,927- 252,585
12,009,427*111,756,841(Note) ‌The Statements of Cash Flows has been prepared based on the “Regulations Concerning Terminology, Forms, and Preparation Methods of Financial
Statements” (Ministry of Finance Regulation No.59, 1963), and is attached as reference information. The Statements of Cash Flows has not been audited by
the independent auditor, as it is not subject to audit by an independent auditor under the provisions of Article 130 of the Act on Investment Trusts andInvestment Corporations.

58

Notes on Matters Concerning Significant Accounting Policies
3rd Fiscal Period

Scope of funds in Statements of CashFlows

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

The funds (cash and cash equivalents) in theStatements of Cash Flows consist of cash on
hand and cash in trust; deposits that can bewithdrawn at any time and deposits in trust; andshort-term investments with a maturity of 3
months or less from the date of acquisition,
which are readily convertible to cash and bear
only an insignificant risk of price fluctuation.

The funds (cash and cash equivalents) in theStatements of Cash Flows consist of cash on
hand and cash in trust; deposits that can bewithdrawn at any time and deposits in trust; andshort-term investments with a maturity of 3
months or less from the date of acquisition,
which are readily convertible to cash and bear
only an insignificant risk of price fluctuation.

Notes to Statements of Cash Flows
3rd Fiscal Period

4th Fiscal Period

From: August 1, 2011
To: January 31, 2012

From: February 1, 2012
To: July 31, 2012

*1. Relationship‌
between the cash and cash equivalents at end *1. Relationship‌
between the cash and cash equivalents at endof period in the Statements of Cash Flows and the amountsof period in the Statements of Cash Flows and the amountsof the corresponding accounts on the Balance Sheetsof the corresponding accounts on the Balance Sheets(thousand yen)(thousand yen)

Cash and deposits

9,165,380

Cash and deposits

6,701,044

Cash and deposits in trust

5,844,046

Cash and deposits in trust

7,055,796

Time deposits with holding period over 3 months- 3,000,000

Time deposits with holding period over 3 months- 2,000,000

Cash and cash equivalents

12,009,427

Cash and cash equivalents

11,756,841

R-44 RESIDIA Kobe-Isogami - Hall

59

Portfolio Map

Adachi-ku

Itabashi-ku
28

50

Nerima-ku

72
37

Nakano-ku

Ikebukuro

29 46 35

36
40

49

84

19

33
69

23
10
90

32

52

Shinjuku

47 41
67
9

Chiyoda-ku

15

Tokyo

Shibuya-ku

Taito-ku

Ueno

58
26
21
4 8 37 52

87

21
22 16

41

13

68

85

Setagaya-ku
88

4

31

Sumida-ku

7 43
5

9

43
64

Koto-ku
51

47

35

Shinagawa-ku

59

44

25

Edogawa-ku

Kinshicho
34
63

48
1 39 4224 12 45
17

49
22 27
57
10
58 48 5354
40
78
30 Chuo-ku 31
65
50
60 66
Shibuya
62
77
33
5
61
76
24
51
81
83
7
36 25 29
56
Minato-ku 73
89 3 61
70
86
26
39
79
Shinagawa
75 Meguro
14
2
74
55
38
Meguro-ku
45

15

23
59

80
19
63

34

55

16

53

Bunkyo-ku

62

Shinjuku-ku 42

Suginami-ku

60

Arakawa-ku

3

Toshima-ku

56

Katsushika-ku

18

6

60

Kita-ku

P ：Tokyo Central 7 Wards

13

C ：Tokyo 23 Wards

38
64
Kamata2
32

Ota-kuP-2

RESIDIA Shimazuyama

P-31

RESIDIA Komazawadaigaku

P-53

RESIDIA Roppongi-Hinokichokoen

P-3

RESIDIA Nakameguro

P-32

RESIDIA Yoyogi

P-55

RESIDIA TOWER Meguro-Fudomae

P-4

RESIDIA Setagaya-Tsurumaki

P-33

RESIDIA Nishi-Shinjuku

P-56

RESIDIA Sangenjaya

P-5

RESIDIA Azabujuban

P-34

RESIDIA Kyodo

P-58

P-7

RESIDIA Ikejiriohashi

P-35

RESIDIA Oimachi

P-9

RESIDIA Kudanshita

P-36

P-10

RESIDIA Hatagaya

P-13

P-76

Park Tower Shibaura Bayward

C-5

RESIDIA Asakusabashi

Urban Wing

C-6

Maison Eclairee Ekoda

P-77

Motoazabu Place

C-7

RESIDIA Ueno-Okachimachi

RESIDIA Minami-Aoyama

P-78

RESIDIA TOWER Roppongi

C-8

RESIDIA Bunkyo-Hongo II

P-59

RESIDIA Kanda-Higashi

P-79

RESIDIA Kamimeguro

C-9

RESIDIA Ryogoku

RESIDIA Ebisu II

P-60

RESIDIA Higashi-Azabu

P-80

RESIDIA Yoyogikoen

C-10

RESIDIA Higashi-Ginza

P-37

RESIDIA Kamiochiai

P-61

RESIDIA Ebisu-Minami

P-81

Windsor House Hiroo

C-12

RESIDIA Nihonbashi-Ningyocho II

RESIDIA Sakurajosui

P-38

RESIDIA Higashi-Shinagawa

P-62

RESIDIA TOWER Azabujuban

P-83

RESIDIA Daikanyama-Sarugakucho /C-13

RESIDIA Omori-Higashi

P-14

RESIDIA Kita-Shinagawa

P-39

RESIDIA Meguro II

P-63

RESIDIA Shibuya

Daikanyama Parkside Village

C-15

RESIDIA Kinshicho

P-15

RESIDIA Yoyoginomori

P-40

RESIDIA Toranomon

P-64

RESIDIA Nakanobu

P-84

RESIDIA Kita-Shinjuku

C-16

RESIDIA Negishi

P-16

RESIDIA Shinjuku-East III

P-41

RESIDIA Shin-Ochanomizu

P-65

RESIDIA Azabudai

P-85

RESIDIA Komazawa

C-17

RESIDIA Shinkawa

P-19

Leopalace Udagawacho Mansion

P-42

RESIDIA Kagurazaka

P-66

RESIDIA Shibadaimon II

P-86

RESIDIA Shibaura KAIGAN

C-18

RESIDIA Kamiikebukuro

P-21

RESIDIA Shinjuku-East II

P-43

RESIDIA Oimachi II

P-67

RESIDIA Kanda

P-87

RESIDIA Ichigaya-Yakuoji

C-19

RESIDIA Shin-nakano

P-22

RESIDIA Shinjuku-East

P-45

RESIDIA Jiyugaoka

P-68

RESIDIA Sangenjaya II

P-88

RESIDIA Yoga

C-21

RESIDIA Bunkyo-Yushima II

P-23

RESIDIA Kanda-Iwamotocho

P-47

RESIDIA Suidobashi

P-69

RESIDIA Nishi-Shinjuku II

P-89

RESIDIA TOWER Nakameguro

C-22

RESIDIA Tsukiji

P-24

RESIDIA Azabujuban II

P-48

RESIDIA TOWER Nogizaka

P-70

RESIDIA Hiroo-Minami

P-90

RESIDIA Sasazuka II

C-23

RESIDIA Sasazuka

P-25

RESIDIA Ebisu

P-49

RESIDIA Akasaka

P-72

RESIDIA Mejiro-Otomeyama

C-1

RESIDIA Mitsukoshimae

C-24

RESIDIA Kyobashi

P-26

RESIDIA Meguro

P-50

RESIDIA Nishi-Azabu

P-73

RESIDIA Shibaura

C-2

RESIDIA Kamata

C-25

RESIDIA Tamagawa

P-29

RESIDIA Hiroo II

P-51

RESIDIA Daikanyama

P-74

RESIDIA Gotenyama

C-3

RESIDIA Ikebukuro

C-26

RESIDIA Korakuen

P-30

Pianetta Shiodome

P-52

RESIDIA Ichigaya

P-75

RESIDIA Yutenji

C-4

RESIDIA Bunkyo-Hongo

C-27

RESIDIA Ginza-Higashi

S ：Tokyo Metropolitan Area
SaitamaKashiwa2

Kawaguchi

1126
31 25 24 Sapporo
34

23

Tokyo
Tachikawa

Chiba
4
Higashi-Matsudo

19

12

17

Kichijyoji
7

25

21

27

26
24

HachiojiMusashikosugi

16
1

22
Shin-Yokohama

15

28 Kawasaki

5

Kanagawa

Yokohama

Sendai 13

14 20

37 38

29 2

6
44 12
14 15
8 3941 35 11

Fukuoka

40 27
30 36 3243
21 17 Nagoya
16
5
4

Tokyo

Osaka

10 20
42 19

R ：Major Regional Cities

C-28

RESIDIA Oji

C-49

RESIDIA Suginami-Honancho

S-7

RESIDIA Chofu

R-5

RESIDIA Kameyama

R-30

RESIDIA Izumi

C-29

RESIDIA Mejiro II

C-50

RESIDIA Shin-Itabashi

S-11

Wako Student Heights

R-6

RESIDIA Ryokuchikoen

R-31

RESIDIA Maruyama Kita-Gojo

C-31

RESIDIA Tsukishima

C-51

RESIDIA Kiba

S-12

RESIDIA Kokubunji

R-8

RESIDIA Kobe

R-32

RESIDIA Tokugawa

C-32

RESIDIA Kamata II

C-52

RESIDIA Bunkyo-Yushima III

S-14

RESIDIA Yokohama-Kannai

Port Island

R-34

RESIDIA Odori-Koen

C-33

RESIDIA Tsukishima II

C-53

RESIDIA Bunkyo-Honkomagome

S-15

RESIDIA Okurayama

R-10

RESIDIA Hakata

R-35

RESIDIA Tanimachi

C-34

RESIDIA Kinshicho II

C-54

RESIDIA Tsukishima III

S-16

RESIDIA Musashikosugi

R-11

RESIDIA Tenjinbashi

R-36

RESIDIA Hisaya-Odori

C-35

RESIDIA Bunkyo-Otowa

C-55

RESIDIA Minamisenjyu

S-17

RESIDIA Funabashi I and II

R-12

RESIDIA Sannomiya-Higashi

R-37

RESIDIA Sendai-Miyamachi

C-36

RESIDIA Bunkyo-Sengoku

C-56

RESIDIA Ogikubo

S-19

RESIDIA Kichijoji

R-13

KC21 Building

R-38

RESIDIA Hirosedori

C-37

RESIDIA Bunkyo-Yushima

C-57

RESIDIA Monzennakacho

S-20

Pacific Royal Court

R-14

RESIDIA Utsubokoen

R-39

RESIDIA Edobori

C-38

RESIDIA Ikegami

C-58

RESIDIA Ochanomizu

Minato Mirai Ocean Tower

R-15

RESIDIA Kyoto-ekimae

R-40

RESIDIA Kyomachibori

C-39

RESIDIA Nihonbashi-Ningyocho

C-59

RESIDIA Omori

S-21

Maison Yachiyodai

R-16

RESIDIA Takaoka

R-41

RESIDIA Esaka

C-40

RESIDIA Bunkyo-Sengoku II

C-60

RESIDIA Nakamurabashi

S-22

Life & Senior House Kohoku II

R-17

RESIDIA Hibino

R-42

RESIDIA Nishijin

C-41

RESIDIA Iriya

C-61

RESIDIA Kachidoki

S-23

College Court Tanashi

R-19

RESIDIA Tenjin-Minami

R-43

RESIDIA Tsurumai

C-42

RESIDIA Nihonbashi-Hamacho

C-62

RESIDIA Bunkyo-Otowa II

S-24

RESIDIA Urayasu

R-20

RESIDIA Hakataeki-Minami

R-44

RESIDIA Kobe-Isogami

C-43

RESIDIA Shin-Okachimachi

C-63

RESIDIA Kinshicho III

S-25

RESIDIA Minami-Gyotoku

R-21

Mare

C-44

RESIDIA Chidoricho

C-64

RESIDIA Kamata III

S-26

RESIDIA Urayasu II

R-24

RESIDIA Minami-Ichijo

C-45

RESIDIA Shinkawa II

S-1

Hiyoshidai Student Heights

S-27

RESIDIA Gyotoku

R-25

RESIDIA Odori-Nishi

C-46

RESIDIA Mejiro

S-2

Chester House Kawaguchi

S-28

RESIDIA Kawasaki

R-26

RESIDIA Kita-Sanjo

C-47

RESIDIA Kasai

S-4

RESIDIA Higashi-Matsudo

R-2

RESIDIA Imadegawa

R-27

RESIDIA Shirakabe-Higashi

C-48

RESIDIA Nihonbashi-Bakurocho

S-5

RESIDIA Shin-Yokohama

R-4

RESIDIA Higashi-Sakura

R-29

RESIDIA Uzumasa

61

Portfolio List

Tokyo Central 7 Wards

Investment Property
region
No.

P-2
P-3
P-4
P-5
P-7
P-9
P-10
P-13
P-14
P-15
P-16
P-19
P-21
P-22
P-23
P-24
P-25
P-26
P-29
P-30
P-31
P-32
P-33
P-34
P-35
P-36
P-37
P-38
P-39
P-40
P-41
P-42
P-43
P-45
P-47
P-48
P-49
P-50
P-51
P-52
P-53
P-55
P-56
P-58
P-59
P-60
P-61
P-62
P-63
P-64
P-65
P-66
P-67
P-68
P-69
P-70
P-72
P-73
P-74
P-75
P-76
P-77
P-78
P-79
P-80
P-81
P-83
P-84

62

Name of real estate

RESIDIA Shimazuyama
RESIDIA Nakameguro
RESIDIA Setagaya-Tsurumaki
RESIDIA Azabujuban
RESIDIA Ikejiriohashi
RESIDIA Kudanshita
RESIDIA Hatagaya
RESIDIA Sakurajosui
RESIDIA Kita-Shinagawa
RESIDIA Yoyoginomori
RESIDIA Shinjuku-East III
LeoPalace Udagawacho Mansion
RESIDIA Shinjuku-East II
RESIDIA Shinjuku-East
RESIDIA Kanda-Iwamotocho
RESIDIA Azabujuban II
RESIDIA Ebisu
RESIDIA Meguro
RESIDIA Hiroo II
Pianetta Shiodome
RESIDIA Komazawadaigaku
RESIDIA Yoyogi
RESIDIA Nishi-Shinjuku
RESIDIA Kyodo
RESIDIA Oimachi
RESIDIA Ebisu II
RESIDIA Kamiochiai
RESIDIA Higashi-Shinagawa
RESIDIA Meguro II
RESIDIA Toranomon
RESIDIA Shin-Ochanomizu
RESIDIA Kagurazaka
RESIDIA Oimachi II
RESIDIA Jiyugaoka
RESIDIA Suidobashi
RESIDIA TOWER Nogizaka
RESIDIA Akasaka
RESIDIA Nishi-Azabu
RESIDIA Daikanyama
RESIDIA Ichigaya
RESIDIA Roppongi-Hinokichokoen
RESIDIA TOWER Meguro-Fudomae
RESIDIA Sangenjaya
RESIDIA Minami-Aoyama
RESIDIA Kanda-Higashi
RESIDIA Higashi-Azabu
RESIDIA Ebisu-Minami
RESIDIA TOWER Azabujuban
RESIDIA Shibuya
RESIDIA Nakanobu
RESIDIA Azabudai
RESIDIA Shibadaimon II
RESIDIA Kanda
RESIDIA Sangenjaya II
RESIDIA Nishi-Shinjuku II
RESIDIA Hiroo-Minami
RESIDIA Mejiro-Otomeyama
RESIDIA Shibaura
RESIDIA Gotenyama
RESIDIA Yutenji
Park Tower Shibaura Bayward
Urban Wing
Motoazabu PlaceRESIDIA TOWER Roppongi
RESIDIA Kamimeguro
RESIDIA Yoyogikoen
Windsor House Hiroo
RESIDIA Daikanyama-Sarugakucho /Daikanyama Parkside Village
RESIDIA Kita-Shinjuku

Location
Acquisition price Leasable floor(indication of residential address) (million yen)area (m2)

Number of leasable
residential units(residential units)

Construction
completion date

Probable
maximum loss
(PML) (%)

December 2004
February 2005
March 2002
November 1999
August 2005
March 2004
February 2006
July 2006
February 2007
March 2007
February 2009
August 2001
February 2004
August 2000
February 2004
February 2001
January 2001
October 1999
November 2005
February 2005
October 2004
February 2005
February 2005
February 2005
December 2005
January 2006
September 2006
August 2006
January 2006
September 2006
March 2006
August 2006
July 2007
March 2002
December 2004
August 2004
May 2004
July 2004
July 2004
August 2004
September 1999
January 2007
January 2005
March 2005
October 2003
April 2006
March 2007
January 2003
June 2006
November 2005
February 2006
August 2006
June 2006
March 2006
May 2007
August 2007
December 2002
September 1991
January 2007
August 2006

6.28
2.66
8.15
6.34
6.26
6.26
8.13
5.11
5.97
11.49
8.17
11.24
7.86
9.28
7.13
3.14
3.95
5.26
2.82
5.47
4.48
2.87
4.89
3.86
3.09
6.34
7.83
3.46
9.52
5.64
9.08
8.11
3.86
5.02
4.39
8.05
12.33
5.00
4.98
4.98
12.79
3.29
2.29
5.22
5.17
8.45
6.05
1.57
2.74
5.91
8.13
4.98
6.11
5.93
4.18
3.63
4.61
6.28
10.52
7.56

Shinagawa-ku, Tokyo
Meguro-ku, Tokyo
Setagaya-ku, Tokyo
Minato-ku, Tokyo
Setagaya-ku, Tokyo
Chiyoda-ku, Tokyo
Shibuya-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shinagawa-ku, Tokyo
Shibuya-ku, Tokyo
Minato-ku, Tokyo
Setagaya-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Shinagawa-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo
Shinagawa-ku, Tokyo
Meguro-ku, Tokyo
Minato-ku, Tokyo
Chiyoda-ku, Tokyo
Shinjuku-ku, Tokyo
Shinagawa-ku, Tokyo
Meguro-ku, Tokyo
Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo
Minato-ku, Tokyo
Shinagawa-ku, Tokyo
Setagaya-ku, Tokyo
Minato-ku, Tokyo
Chiyoda-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shinagawa-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Chiyoda-ku, Tokyo
Setagaya-ku, Tokyo
Shinjuku-ku, Tokyo
Shibuya-ku, Tokyo
Shinjuku-ku, Tokyo
Minato-ku, Tokyo
Shinagawa-ku, Tokyo
Meguro-ku, Tokyo

2,860
1,730
1,229
1,987
1,230
2,270
1,130
1,120
2,720
732
750
588
1,380
941
1,520
874
554
722
1,660
1,950
333
326
363
286
947
2,280
1,180
2,040
1,190
1,320
1,160
918
1,050
1,050
2,310
3,660
1,180
6,780
2,150
2,500
3,570
16,500
2,760
728
1,620
1,430
2,020
6,190
1,250
1,880
1,610
1,740
1,140
1,280
1,830
923
974
4,670
930
5,260

3,474.37
1,694.18
1,769.67
1,986.76
1,423.38
2,845.89
1,129.72
1,201.37
2,897.99
723.10818.74623.801,743.06
1,219.08
2,354.20
1,018.71
653.04701.01
1,733.63
2,274.19
488.51464.64478.57509.66
1,249.56
2,194.56
1,740.50
2,588.01
1,448.84
1,353.41
1,422.45
1,182.34
1,321.76
1,435.93
3,039.14
3,485.00
1,352.02
7,078.64
2,067.08
3,003.34
4,803.29
21,019.77
2,847.19
782.332,544.25
1,582.54
2,023.88
7,207.18
1,285.42
2,855.06
1,732.06
2,023.20
1,534.57
1,933.54
2,478.31
1,035.75
1,679.94
8,508.36
1,228.15
5,423.36

115
88
28
44
42
86
35
39
120
22
39
30
54
48
65
37
26
20
76
67
18
16
19
15
48
61
70
122
34
63
52
52
40
28
65
68
37
125
42
85
88
358
78
13
64
31
39
113
40
65
47
48
43
34
74
26
19
154
16
118

Minato-ku, Tokyo

9,570

13,490.67

191

May 2005

3.72

Minato-ku, Tokyo
Minato-ku, Tokyo
Meguro-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo

8,430
7,040
878
1,100
1,750

7,382.62
5,978.20
1,473.68
1,545.36
2,172.91

41
83
16
6
12

February 2001
February 2006
January 1993
July 1998
June 2003

6.03
3.98
6.74
7.34
12.25

Shibuya-ku, Tokyo

7,360

5,977.18

77

January 1998

10.27

Shinjuku-ku, Tokyo

1,460

2,173.62

26

February 1997

12.06

Tokyo 23 Wards

Investment Property
region
No.

P-85
P-86
P-87
P-88
P-89
P-90
C-1
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-12
C-13
C-15
C-16
C-17
C-18
C-19
C-21
C-22
C-23
C-24
C-25
C-26
C-27
C-28
C-29
C-31
C-32
C-33
C-34
C-35
C-36
C-37
C-38
C-39
C-40
C-41
C-42
C-43
C-44
C-45
C-46
C-47
C-48
C-49
C-50
C-51
C-52
C-53
C-54
C-55
C-56
C-57
C-58
C-59
C-60
C-61
C-62
C-63
C-64

Name of real estate

RESIDIA Komazawa
RESIDIA Shibaura KAIGANRESIDIA Ichigaya-Yakuoji
RESIDIA Yoga
RESIDIA TOWER Nakameguro
RESIDIA Sasazuka II
RESIDIA Mitsukoshimae
RESIDIA Kamata
RESIDIA Ikebukuro
RESIDIA Bunkyo-Hongo
RESIDIA Asakusabashi
Maison Eclairee Ekoda
RESIDIA Ueno-Okachimachi
RESIDIA Bunkyo-Hongo II
RESIDIA Ryogoku
RESIDIA Higashi-Ginza
RESIDIA Nihonbashi-Ningyocho II
RESIDIA Omori-Higashi
RESIDIA Kinshicho
RESIDIA Negishi
RESIDIA Shinkawa
RESIDIA Kamiikebukuro
RESIDIA Shin-nakano
RESIDIA Bunkyo-Yushima II
RESIDIA Tsukiji
RESIDIA Sasazuka
RESIDIA Kyobashi
RESIDIA Tamagawa
RESIDIA Korakuen
RESIDIA Ginza-Higashi
RESIDIA Oji
RESIDIA Mejiro II
RESIDIA Tsukishima
RESIDIA Kamata II
RESIDIA Tsukishima II
RESIDIA Kinshicho II
RESIDIA Bunkyo-Otowa
RESIDIA Bunkyo-Sengoku
RESIDIA Bunkyo-Yushima
RESIDIA Ikegami
RESIDIA Nihonbashi-Ningyocho
RESIDIA Bunkyo-Sengoku II
RESIDIA Iriya
RESIDIA Nihonbashi-Hamacho
RESIDIA Shin-Okachimachi
RESIDIA Chidoricho
RESIDIA Shinkawa II
RESIDIA Mejiro
RESIDIA Kasai
RESIDIA Nihonbashi-Bakurocho
RESIDIA Suginami-Honancho
RESIDIA Shin-Itabashi
RESIDIA Kiba
RESIDIA Bunkyo-Yushima III
RESIDIA Bunkyo-Honkomagome
RESIDIA Tsukishima III
RESIDIA Minamisenjyu
RESIDIA Ogikubo
RESIDIA Monzennakacho
RESIDIA Ochanomizu
RESIDIA Omori
RESIDIA Nakamurabashi
RESIDIA Kachidoki
RESIDIA Bunkyo-Otowa II
RESIDIA Kinshicho III
RESIDIA Kamata III

Location
Acquisition price Leasable floor(indication of residential address) (million yen)area (m2)

Setagaya-ku, Tokyo
Minato-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Meguro-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Bunkyo-ku, Tokyo
Taito-ku, Tokyo
Nerima-ku, Tokyo
Taito-ku, Tokyo
Bunkyo-ku, Tokyo
Sumida-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Sumida-ku, Tokyo
Taito-ku, Tokyo
Chuo-ku, Tokyo
Toshima-ku, Tokyo
Nakano-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Suginami-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Kita-ku, Tokyo
Toshima-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Chuo-ku, Tokyo
Sumida-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Ota-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Taito-ku, Tokyo
Chuo-ku, Tokyo
Taito-ku, Tokyo
Ota-ku, Tokyo
Chuo-ku, Tokyo
Toshima-ku, Tokyo
Edogawa-ku, Tokyo
Chuo-ku, Tokyo
Suginami-ku, Tokyo
Itabashi-ku, Tokyo
Koto-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Arakawa-ku, Tokyo
Suginami-ku, Tokyo
Koto-ku, Tokyo
Bunkyo-ku, Tokyo
Ota-ku, Tokyo
Nerima-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Koto-ku, Tokyo
Ota-ku, Tokyo

870
2,400
2,070
1,523
3,300
3,760
1,920
2,640
1,520
1,680
1,060
953
3,160
1,623
913
5,251
3,180
1,980
4,200
856
1,880
558
352
1,010
1,460
1,800
1,220
1,300
603
2,000
867
1,050
1,100
1,360
2,440
2,380
3,380
707
1,050
378
557
1,440
990
1,310
1,860
1,290
1,320
6,280
683
5,500
3,834
888
1,950
1,129
2,340
2,570
2,580
1,710
970
2,090
1,150
1,075
1,805
2,268
651
948

1,182.47
3,898.10
2,169.57
1,996.81
3,989.13
4,548.96
2,552.07
4,110.54
2,207.63
2,165.35
1,816.14
1,591.71
4,009.27
1,960.40
1,378.84
4,871.02
3,541.09
1,928.71
4,326.80
1,571.54
2,764.70
979.04615.281,368.01
2,043.00
2,855.98
1,440.11
2,137.41
770.112,824.17
1,659.09
1,450.16
1,694.38
1,929.24
3,074.47
3,394.21
5,970.11
1,104.50
1,623.62
764.84848.24
2,117.47
1,826.54
1,915.92
2,531.81
2,105.15
2,119.34
13,069.70
2,177.89
8,502.12
6,953.96
1,413.22
3,255.00
1,296.27
3,488.24
3,152.45
10,097.88
2,830.20
1,458.45
3,164.96
1,528.00
1,501.41
2,750.82
3,063.83
1,072.75
1,404.35

Number of leasable
residential units(residential units)

59
72
98
66
70
166
105
166
60
65
47
93
127
70
48
169
137
81
157
28
83
44
24
63
54
96
52
98
31
94
61
63
40
78
105
99
104
33
39
19
25
45
49
45
69
60
36
162
29
132
194
67
155
52
98
119
175
101
68
80
75
66
55
89
51
53

Construction
completion date

Probable
maximum loss
(PML) (%)

October 2008
January 2010
August 2008
June 2008
March 2007
January 2011
February 2005
March 2005
March 2005
July 2005
August 2005
March 1993
February 2006
January 2006
February 2006
September 2006
January 2007
August 2007
November 2007
December 2005
February 2003
December 2001
June 2002
March 2004
December 2005
March 2000
January 2005
September 2004
October 2004
September 2004
February 2005
July 2005
February 2006
September 2006
September 2006
January 2008
August 2003
February 2003
February 2003
July 2003
March 2004
April 2005
December 2004
August 2006
March 2007
September 2006
February 2003
January 1999
January 2000
February 2007
February 2009
August 2009
March 2008
December 2008
March 2008
March 2008
March 2007
March 2003
February 2005
September 2005
March 2006
February 2008
February 2008
February 2008
February 2005
March 2007

12.30
5.43
6.76
10.45
5.70
6.50
4.72
6.36
7.86
5.43
4.27
3.29
1.84
5.37
6.38
6.19
5.35
9.32
6.24
6.01
9.61
6.60
3.60
5.32
4.21
10.73
6.03
12.83
7.67
6.28
7.15
7.75
6.64
7.15
10.15
5.15
6.36
6.58
3.89
6.80
9.52
6.44
3.77
7.77
6.64
7.48
6.52
2.69
9.02
5.45
9.39
11.28
6.17
2.29
10.54
5.02
6.95
8.45
4.21
2.76
6.90
10.75
3.19
2.92
6.17
6.74

63

Portfolio List

Tokyo Metropolitan Area

Investment Property
region
No.

S-1
S-2
S-4
S-5
S-7
S-11
S-12
S-14
S-15
S-16
S-17
S-19
S-20
S-21
S-22
S-23
S-24
S-25
S-26
S-27
S-28
R-2
R-4
R-5
R-6

Major Regional Cities

R-8
R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-19
R-20
R-21
R-24
R-25
R-26
R-27
R-29
R-30
R-31
R-32
R-34
R-35
R-36
R-37
R-38
R-39
R-40
R-41
R-42
R-43
R-44

Name of real estate

Hiyoshidai Student Heights
Chester House Kawaguchi
RESIDIA Higashi-Matsudo
RESIDIA Shin-Yokohama
RESIDIA Chofu
Wako Student Heights
RESIDIA Kokubunji
RESIDIA Yokohama-Kannai
RESIDIA Okurayama
RESIDIA Musashikosugi
RESIDIA Funabashi I
RESIDIA Funabashi II
RESIDIA Kichijoji
Pacific Royal Court
Minato Mirai Ocean Tower
Maison YachiyodaiLife & Senior House Kohoku II
College Court Tanashi
RESIDIA Urayasu
RESIDIA Minami-Gyotoku
RESIDIA Urayasu II
RESIDIA Gyotoku
RESIDIA Kawasaki
RESIDIA Imadegawa
RESIDIA Higashi-Sakura
RESIDIA Kameyama
RESIDIA Ryokuchikoen
RESIDIA Kobe Port Island(South Bldg.; Centre Bldg.)
RESIDIA Kobe Port Island(North Bldg.)
RESIDIA Hakata
RESIDIA Tenjinbashi
RESIDIA Sannomiya-Higashi
KC21 Building
RESIDIA Utsubokoen
RESIDIA Kyoto-ekimae
RESIDIA Takaoka
RESIDIA Hibino
RESIDIA Tenjin-Minami
RESIDIA Hakataeki-Minami
Mare
RESIDIA Minami-Ichijo
RESIDIA Odori-Nishi
RESIDIA Kita-Sanjo
RESIDIA Shirakabe-Higashi
RESIDIA Uzumasa
RESIDIA Izumi
RESIDIA Maruyama Kita-Gojo
RESIDIA Tokugawa
RESIDIA Odori-Koen
RESIDIA Tanimachi
RESIDIA Hisaya-Odori
RESIDIA Sendai-Miyamachi
RESIDIA Hirosedori
RESIDIA Edobori
RESIDIA Kyomachibori
RESIDIA Esaka
RESIDIA Nishijin
RESIDIA Tsurumai
RESIDIA Kobe-Isogami

Total

Location
Acquisition price Leasable floor(indication of residential address) (million yen)area (m2)

Number of leasable
residential units(residential units)

Construction
completion date

Yokohama-shi, Kanagawa
Kawaguchi-shi, Saitama
Matsudo-shi, Chiba
Yokohama-shi, Kanagawa
Chofu-shi, Tokyo
Wako-shi, Saitama
Kokubunji-shi, Tokyo
Yokohama-shi, Kanagawa
Yokohama-shi, Kanagawa
Kawasaki-shi, Kanagawa

3,420
770
1,100
1,920
1,143
675
518
1,700
755
1,580

8,552.00
2,023.11
3,431.44
3,277.62
1,750.49
1,684.02
879.442,359.60
1,334.56
2,560.40

920
39
44
131
41
127
33
102
64
68

March 1969
March 1991
April 2007
January 2007
March 2007
April 1990
February 2003
August 2004
March 1998
February 2007

Funabashi-shi, Chiba

2,730

4,567.44

172

March 2007

Probable
maximum loss
(PML) (%)

Musashino-shi, Tokyo

1,380

2,214.73

48

March 1995

13.82
5.83
10.04
11.52
5.74
13.18
5.66
13.55
13.79
11.82
8.58
9.33
4.50

Yokohama-shi, Kanagawa

14,00026,082.53

416

November 2007

4.63

Yachiyo-shi, Chiba
Yokohama-shi, Kanagawa
Nishi-Tokyo-shi, Tokyo
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Kawasaki-shi, Kanagawa
Kyoto-shi, Kyoto
Nagoya-shi, Aichi
Kameyama-shi, Mie
Toyonaka-shi, Osaka

882
1,670
810
2,115
823
802
761
1,670
1,671
1,290
1,610
979

3,506.54
5,433.40
1,136.09
3,692.76
1,785.00
1,554.00
1,569.74
2,644.73
3,714.11
3,084.03
6,065.11
2,391.35

39
78
91
146
85
74
75
104
154
91
182
44

August 1989
October 2003
February 2010
September 2009
February 2005
February 2005
February 2005
March 2007
February 1999
February 2006
February 2007
May 2007

6.44
8.86
10.16
8.28
10.38
10.22
10.08
9.44
12.61
13.43
15.40
10.47

Kobe-shi, Hyogo

3,740

9,708.00

404

March 2007

Fukuoka-shi, Fukuoka
Osaka-shi, Osaka
Kobe-shi, Hyogo
Sendai-shi, Miyagi
Osaka-shi, Osaka
Kyoto-shi, Kyoto
Nagoya-shi, Aichi
Nagoya-shi, Aichi
Fukuoka-shi, Fukuoka
Fukuoka-shi, Fukuoka
Nagoya-shi, Aichi
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Nagoya-shi, Aichi
Kyoto-shi, Kyoto
Nagoya-shi, Aichi
Sapporo-shi, Hokkaido
Nagoya-shi, Aichi
Sapporo-shi, Hokkaido
Osaka-shi, Osaka
Nagoya-shi, Aichi
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Osaka-shi, Osaka
Osaka-shi ,Osaka
Suita-shi, Osaka
Fukuoka-shi, Fukuoka
Nagoya-shi, Aichi
Kobe-shi, Hyogo

1,220
871
2,220
900
1,170
1,970
2,330
1,340
936
324
685
1,640
1,320
1,130
831
701
3,700
1,050
751
2,010
1,100
652
529
494
1,400
1,000
989
2,380
1,206
2,740

3,955.24
2,113.91
5,698.03
2,716.11
2,741.46
4,010.85
5,944.56
7,598.40
3,179.96
1,606.29
1,930.70
5,928.51
4,512.24
3,867.60
2,709.97
3,201.93
9,715.22
3,920.00
2,282.49
6,230.49
2,655.18
1,684.19
2,005.48
1,564.29
3,369.51
2,398.90
2,177.04
7,282.78
3,116.98
6,714.74

155
78
161
79
94
116
198
124
56
39
38
179
103
100
33
48
122
56
27
109
108
57
67
63
127
84
68
173
122
196

March 2002
February 2000
November 2005
March 1997
January 2006
February 2006
August 2007
April 1992
January 2004
January 2003
February 2005
December 2006
December 2006
January 2007
May 2005
January 2000
November 2005
February 2007
December 2006
August 2007
August 2008
February 2007
January 2008
February 2010
February 2007
March 2007
July 2007
January 2008
February 2008
March 2008

367,911590,672.08

16,127

10.89
11.47
1.42
8.58
5.47
1.39
10.27
9.22
13.52
11.76
2.66
1.39
12.59
1.81
2.12
2.63
13.35
7.17
12.14
1.42
12.55
1.39
10.08
13.97
3.07
2.69
12.38
11.69
12.83
4.02
12.07
7.56

5.02

Notes 1. In the “Investment region” column, “Tokyo Central 7 Wards” indicates the Minato, Chiyoda, Shibuya, Shinjuku, Meguro, Setagaya and Shinagawa wards ofTokyo; “Tokyo 23 Wards” indicates the Tokyo 23 wards other than the Tokyo Central 7 Wards; “Tokyo Metropolitan Area” indicates Tokyo (excluding theTokyo 23 wards) and Kanagawa, Saitama and Chiba prefectures; and “Major Regional Cities” indicates cabinet order designated and similar cities excluding
cities in the Tokyo Metropolitan Area.
2. In the “Acquisition price” column, monetary amounts are rounded down to the nearest million yen. Accordingly, the sum total of the itemized figures
does not necessarily add up to the “Total” amount entered in the foregoing table.

64Asset Management Company Profile
Profile (as of July 31, 2012)
Name
Address
Officers

AD Investment Management Co., Ltd.
Hitotsubashi SI Building 9F, 3-26 Kanda Nishiki-cho, Chiyoda-ku, Tokyo
President
Kenji Kousaka
Executive Director
Takeshi Takano
Managing Director
Junichi Shoji
Hiromasa Yamamoto
Director
Director
Tomoyuki Kimura
Director
Hiroshi Kawakami
Director
Masato Kawanishi
Director (non-executive)
Norio Matsu
Director (non-executive)
Yoshinori Komoto
Director (non-executive)
Nobuo Takahara
Director (non-executive)
Kouji Fukaki
Statutory Auditor
Masamitsu Hattori
Statutory Auditor (non-executive) Shoichi Suzuki
Paid-in capital
300 million yen
Description of business Investment management businessCompany history

Feb. 2, 2005

Established as Japan Residential Management Co., Ltd.

Apr. 9, 2005

Obtained building lots and buildings transaction business license(Tokyo Governor License (2) No. 84325)

May 17, 2005

Changed trade name to AD Investment Management Co., Ltd.

Obtained discretionary transaction agent and other approval underJune 23, 2005 Building Lots and Buildings Transaction Business Act (Minister ofLand, Infrastructure, Transport and Tourism Approval No. 37)
Obtained investment trust settlor business approval under Act on
Sept. 8, 2005 Investment Trusts and Investment Corporations (Prime Minister
Approval No. 49)

Shareholder
composition

Sept. 30, 2007

Registered as financial instruments business operator (DirectorGeneral of Kanto Local Finance Bureau (Kinsho) Registration No. 309)

Mar. 1, 2010

Merged with Pacific Residential Corporation in absorption-typemergerName

Shareholding (shares)% share (%)

ITOCHU Corporation

2,880

46.6

ITOCHU Property Development, Ltd.

1,200

19.4

Nippon Tochi-Tatemono Co., Ltd.

1,200

19.4

Aozora Bank, Ltd.

180

2.9

Sumitomo Mitsui Trust Bank, Limited

180

2.9

Mizuho Trust & Banking Co., Ltd.

180

2.9

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

180

2.9

Sumitomo Mitsui Banking Corporation

180

2.9

6,180

100.0

Total

(Note) “% share” in the table above is the shareholding (number of shares held) as a percentage of total number ofshares issued and outstanding.

65

Investor Information
Unitholder Memo
Fiscal period end

January 31 and July 31 of every year

General meeting of unitholders

Held at least once every 2 years

Date for determining unitholders
exercising voting rights at meeting

The date will be publicly notified in advance

Record date for determining dividend
payments

January 31 and July 31 of every year
(Dividends will be paid within 3 months of the record date fordetermining payments.)

Unit listing

Tokyo Stock Exchange (Securities Code: 3269)

Newspaper for public notice

The Nikkei

Transfer agent

Mizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo

Business office of transfer agent

Contact

Stock Transfer Agency Department, Main OfficeMizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo
Stock Transfer Agency Department

Mailing address

Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507

Phone

TEL: 0120-288-324 (toll free in Japan)

Unitholder Composition
（％）

100

No. of Units

No. of Unitholders

4th FP
No. of
Units

Share

No. ofUnitholders

ShareJapanese Financial
Institutions (including
Securities Companies)

562,683

51.2%

132

0.6%

Other JapaneseCorporations

75,060

6.8%

356

1.5%

Foreign Corporations
and Individuals

271,627

24.7%

221

1.0%

Domestic Individuals
and Others

190,630

17.3%

22,438

96.9%

75

50.3%

49.6%

51.2%

6.8%

6.8%

22.8%

26.5%

24.7%

16.9%

17.1%

17.3%

53.3%

50

7.5%

25

23.0%

19.2%

7.0%

0

Total

66

1,100,000

100.0%

23,147100.0%

1st FP
2nd FP
3rd FP
4th FP(ended January 2011) (ended July 2011) (ended January 2012) (ended July 2012)Inquiries
Please direct any inquiries concerning ADR’s units(address , name, di v idend t r ans fer accountdesignation, changes, etc.), to your securities
company at which you have opened the transfer
account for units.

Dividends
Div idends can be collected by br inging the“unitholder dividend receipt” to your nearest
Japan Post Bank main or branch office, sub-branch
office or post office (bank agent) in Japan. If thecollection period has elapsed, please make yourcollection by designating the collection method on
the back of the “unitholder dividend receipt” andmailing it to Mizuho Trust & Banking’s Stock
Transfer Agency Department or bringing it to a
Mizuho Trust & Banking or Mizuho Investors
Securities main or branch office. (Note: Dependingon the office, when the payment processing does
not take place on the premises, it may take a few
days to collect.) If you wish to designate a banktransfer for future dividend payments, pleasecontact your securities company.

Annual Schedule

2012

Oct

Oct-Nov

2013

Payment of 4th Fiscal Period
dividend

Holding of unitholders
briefingJan

5th Fiscal Period end(January 31)

Mar

Announcement of 5th Fiscal
Period results

Apr

Delivery of 5th Fiscal Period
financial report
Payment of 5th Fiscal Period
dividend

Disclosures
ADR strives to provide information to unitholders
in a transparent and timely manner by uploading
an array of information and data on the ADR
website, including documents that must be
disclosed by law, press releases, information on
business per for mance (kessan tanshin,presentation materials for analyst meetings, etc.)
and information on portfolio assets. ADR willremain dedicated to providing easy to understandand timely infor mation by continuing toincreasingly enrich the content of the website.

Delivery of 4th Fiscal Period
financial report

Apr-May

Holding of unitholders
briefingJul

6th Fiscal Period end(July 31)

Sept

Announcement of 6th Fiscal
Period results

Oct

Delivery of 6th Fiscal Period
financial report
Payment of 6th Fiscal Period
dividend

Oct-Nov

Holding of unitholders
briefing

www.adr-reit.com/en
67

Table of Contents
2 Financial Highlights

12 Asset Management Report

3 To Our Unitholders

60 Portfolio Map

4 Results of Operations

62 Portfolio List

8 Finance

65 Asset Management Company
Profile66 Investor Information

10 Outlook for the 5th Fiscal
Period