13th
Fiscal Period ReportAugust 1, 2016 - January 31, 2017

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

Balancesheet figures

Per unit
figures

Financial
indicators

Reference
information

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

9th FP

10th FP

11th FP

12th FP

13th FP

units

From: Aug. 1, 2014
To: Jan. 31, 2015

From: Feb. 1, 2015
To: Jul. 31, 2015

From: Aug. 1, 2015
To: Jan. 31, 2016

From: Feb. 1, 2016
To: Jul. 31, 2016

From: Aug. 1, 2016
To: Jan. 31, 2017

million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
%
Units
yen
yen
yen
yen
yen
%
%
%
yen
yen
times
%
%
%
%
%
%
times
million yen
million yen
million yen%
million yen
–
Units
m2
%
yen

15,633
14,738
839
7,474
5,817
185
–
8,158
6,591
6,591
430,509
215,799
208,378
114,936
6,669
101.2
1,300,000
160,290
5,070
5,130
5,130
0
3.4
5.5
3.0
6,504
12,903
23.4
1.5
3.0
48.4
3.2
6.3
50.1
7.7
10,476
1,365
11,438
5.3
2,519
240
19,572740,021.39
96.5
301,500

14,998
14,964
–
7,497
5,974
–
–
7,501
5,945
5,944
440,991
227,486
207,653
114,936
5,943
100.0
1,300,000
159,733
4,572
4,572
4,572
0
3.4
5.0
2.9
6,497
13,103
20.6
1.4
2.8
47.1
2.9
5.8
51.6
7.5
9,756
1,309
11,491
5.5
2,502
249
20,122757,856.84
96.4
270,500

15,082
15,082
–
7,593
6,024
–
–
7,489
5,951
5,951
440,108
226,280
207,661
114,936
5,951
100.0
1,300,000
159,739
4,577
4,578
4,578
0
3.5
4.9
3.0
6,524
12,942
20.1
1.4
2.7
47.2
2.9
5.7
51.4
7.4
9,803
1,321
11,588
5.4
2,531
251
20,231
760,453.15
96.7
260,500

15,444
15,444
–
7,716
6,092
3
–
7,727
6,206
6,205
448,160
233,864
207,915
114,936
6,206
100.0
1,300,000
159,935
4,773
4,774
4,774
0
3.4
5.1
2.9
6,752
13,579
21.0
1.4
2.8
46.4
3.0
6.0
52.2
8.0
10,024
1,250
11,920
5.6
2,568
255
20,455
766,881.60
96.6
284,600

15,504
15,504
–
7,702
6,045
–
–
7,801
6,371
6,371
450,967
223,774
220,834
127,690
6,721
105.5
1,350,000
163,580
4,771
4,979
4,979
0
3.3
5.1
2.8
6,640
13,209
22.6
1.4
2.8
49.0
3.0
5.9
49.6
8.6
10,151
1,186
12,052
5.5
2,593
257
20,565
773,464.74
96.6
297,900

Notes 1. Operating revenues do not include consumption tax. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal place. The
same applies for the rest of this report unless otherwise specified.
2. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
3. The annualized figures are calculated using accounting calculation periods of 184 days for the 9th Fiscal Period, 181 days for the 10th Fiscal Period, 184 days for the 11th Fiscal
Period, 182 days for the 12th Fiscal Period and 184 days for the 13th Fiscal Period.
4. Ratio of ordinary income to total assets = Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
5. Return on equity = Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
6. In the calculation of NOI, the depreciation and amortization is limited to what is included in rental business expenses.
7. Annualized NOI yield = Total annualized NOI ÷ Total property acquisition price(The annualized NOI yield is calculated by taking into account the actual number of days of operation for each property.)
8. Depreciation and amortization includes amortization of intangible assets in addition to depreciation of property, plant and equipment.
9. “Leasable floor area at end of period” refers to the leasable floor area for each building. The area that does not include the leasable floor area of land (parking lots) that isindicated on the lease agreement or applicable drawings is stated.
10. “Occupancy rate at end of period” is calculated by using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.

1

2 Investment Environment and Operating PerformanceWith the aim of realizing a stable distribution of earnings over the long term, we carried out the following initiatives during
the current fiscal period.
1. Internal Growth
Maintained high occupancy rates, increased rent levels and carried out value enhancement works.
2. External Growth
Acquired a recently constructed sponsor pipeline property and another property from a third party through a negotiatedtransaction.
3. Finance Policy
In comparison with the previous fiscal period, ADR has reduced the average interest rate and raised the fixed interest ratio
of debts, and lowered loan-to-value (“LTV”) ratios through equity financing.
By executing these initiatives, we were able to attain the following fiscal period results.

Item

Previous FP
Results

Initial forecast Note 1

13th FP Results(January 2017)(million yen)

Difference from the previous FP Difference from the initial forecast
+60
+104

Operating revenues

15,444

15,39915,504

Operating income

7,727

7,663

7,801

+73

+138

Ordinary income

6,206

6,210

6,371

+165

+161

Net income

6,205

6,210

6,371

+165

Earnings Per Unit

4,773 yen

4,600 yen

4,719 yen

Dividend Per Unit

4,774 yen

4,859 yen

4,979 yen

Note 2

Note 2+161(54) yen+119 yenNote 3+205 yen+120 yen

Note 3

Notes 1. The initial forecast refers to the earnings forecasts for the 12th Fiscal Period disclosed in the “Brief Summary of Kessan Tanshin” for the 12th Fiscal Period, dated September 6,
2016. The same holds true hereafter.
2. Calculated by dividing net income by the number of units issued and outstanding as of the end of the fiscal period. The same applies hereafter unless otherwise specified.
3. Decimals are deleted from the EPU figures.

ADR achieved increases in revenues and profits against the forecasts, mainly due to rental revenue gains as a result of higherthan-expected occupancy rates, and due to a decrease in interest expenses as a result of lower-than-expected financing rates.
Although revenues and profits also improved over the previous fiscal period largely due to the earnings contributions fromnewly acquired properties, earnings per unit (EPU) decreased by 54 yen to 4,719 yen because of the increase in the number ofinvestment units from the equity financing.
As a result, the dividend per unit (DPU), with the addition of the drawdown in the reserve for a temporary difference adjustment(RTA) of 259 yen per unit, amounted to 4,979 yen, which is 120 yen higher than the initial forecast and 205 yen higher thanprevious fiscal period results.
1. Internal Growth– Maintained high occupancy rates and increased rents –ADR continued to achieve steady internal growth during the current fiscal period, amid a favorable environment marked
by a short supply of new rental housing properties relative to a population inflow in the geographic regions targeted forinvestment. Specifically, we were able to raise rents when tenants were replaced as well as when contracts were renewed.
As a result, we were able to improve the profitability of the portfolio by increasing the overall portfolio rent level (Note 4) by
0.37% over that of July 31, 2016, while maintaining the average period occupancy rate above 96%.
Furthermore, while there are conflicting reports in the media recently that there is an oversupply of rental apartments, built
in order to reduce inheritance tax liability, we believe the effect of the over-supply to ADR’s portfolio to be negligible. There isvery little competition because, most of the over-supplied apartments are built in areas that do not overlap the areas in which
ADR’s properties are located and the structural specification of the apartments are different, making the type of prospective
tenants differ.
– Value Enhancement Work Performed –ADR systematically conducts large-scale renovations of its properties in order to maintain functionality and improve theappearance of the properties. In addition, ADR carries out value enhancement work on individual units to maintain andenhance competitiveness in the leasing market, especially on units of properties that have recently been subjected to large-

2

I. Asset Management Reportscale renovations. Value enhancement work is implemented between tenant replacement and entails equipment upgrades
and floor plan changes.
During the current fiscal period, we executed large-scale renovations on 4 properties and value enhancement work on 34
residential units. Of the residential units that under went value enhancement work, new rental contracts had been signed
for 13 units as of February 23, 2017. Those units saw a rise in rent of 20% on average over the previous rent. Even though, ourportfolio average building age will grow older, the longer we manage the portfolio, the more we will endeavor to enhance
the competitive strengths of the properties through these measures.
– Promoting sustainability –ADR engages in environmentally friendly practices, improving tenant satisfaction and contributing to local communities. In
the current fiscal period, ADR continued from the last fiscal period to replace common area lighting with energy-efficient LED
lighting in common areas of its properties.
ADR also continued to participate in the GRESB (Global Real Estate Sustainability Benchmark) assessment and received a“Green Star” rating for 2016. The GRESB organization, founded mainly by European pension funds, assesses the environmental,social and governance (ESG) performance of real estate companies.
Note 4. Change in average per-unit rent between the start and end of the fiscal period, for all properties held throughout the fiscal period. The same applies hereafter.

2. External Growth– Consistently acquired recently built prime properties mainly from the sponsor’s pipeline –During the current fiscal period, ADR concluded acquisitions of two properties at a total acquisition price of 3.2 billion yen,
one of which is a sponsor-developed property acquired from the sponsor ITOCHU Corporation (1.1 billion yen), and the othera property acquired from a third party through a negotiated transaction (2.1 billion yen). ADR also decided to acquire anotherthree properties, two of which are recently constructed sponsor-developed properties. The acquisitions will be concluded onor before April 30, 2017. While these acquisitions are scarce properties within their respective locations, we have managed toconsistently acquire prime properties amid an extremely competitive market.
We expect the property acquisition market to remain challenging going forward, but nevertheless we aim to achieve external
growth that will enhance the quality and profitability of our portfolio by drawing on our sponsor’s pipeline and engaging in
negotiated third-party transactions.
3. Finance Policy– Reduced the average interest rate and raised the fixed interest ratio –Under our finance policy of extending durations on loans and investment corporation bonds (“loans and bonds”), fixing
interest rates and diversifying maturities, ADR refinanced a total of 11.5 billion yen in debt (average initial duration of 9.1
years and average interest rate of 0.46%) (Note 5) and converted floating rate loans to fixed rate loans. As a result, with a total ofoutstanding loans and bonds as of the end of the current fiscal period at 223.7 billion yen, we managed to further strengthen
our financial foundations in comparison with the previous period by extending the average remaining duration by 0.1 year
to 4.4 years, reducing the average interest rate by 0.03 percentage point to 1.02% (Note 6), and increasing the fixed interest
ratio (Note 7) by 4.7 percentage points to 97.3%.
– Lowered loan-to-value (LTV) through equity financing –During the current fiscal period, ADR launched a follow-on offering of its investment units to raise 12.7 billion yen, on
September 6, 2016, for the first time in roughly two and a half years. By paying back interest-bearing debt using part of thecapital raised, ADR lowered the LTV (Note 8) ratios to 49.6% on a total asset basis, and 43.2% on an appraisal basis. As a result,adequate capacity to acquire assets through debt has been secured, while following the policy of maintaining the LTV ratios
at no more than 53% on total assets basis and at no more than 50% on appraisal basis.
Notes 5. This excludes loans procured and repaid within the current fiscal period, or loans which terms and conditions have been modified during the current fiscal period.
6. The “average interest rate” is the weighted-average interest rate on loans and bonds at the end of the fiscal period. If the interest rates on the debts have been converted to fixedinterest rate, in order to hedge the risk of interest rate volatility using swap agreements, the fixed rates are used in calculating the average. The same applies hereafter.
7. The “fixed interest ratio” is the ratio of the total principal amount of loans and bonds with fixed interest rate including debts with rates converted to fixed interest rate using swap
agreements, to the total amount of loans and bonds outstanding. The same applies hereafter.
8. The “loan-to-value” or “LTV” ratio is the proportion of overall debt to asset value. The same applies hereafter.
Total asset LTV and appraisal LTV have been calculated using the formulas below.
Total Asset LTV = Outstanding Interest Bearing Debts ÷ Total Assets
Appraisal LTV = (Loans + Bonds) ÷ Total Appraisal Value of Property Holdings

3

3 Management Policies and Challenges Going Forward
ADR aims to achieve steady EPU growth by implementing the strategies outlined below.
a) Internal Growth
For properties with high occupancy, we will not only work to raise rents at the time of tenant replacements, but also at thetime of contract renewals. Furthermore, we will aim to maintain and improve property revenues by actively securing key
money and reducing leasing-related expenses. In addition, we will continue to enhance the competitive advantages of ourproperties by systematically conducting timely large-scale renovations, as well as implementing value enhancement works
appropriate to the age of the building and the property characteristics.
b) External Growth
Because we believe that market conditions will continue to be difficult for acquiring properties, we will continue to acquire
properties that will contribute in improving the quality and profitability of ADR’s portfolio by acquiring them mainly from oursponsor or by utilizing information collected by ADR to acquire properties from third parties through negotiated transactions,whereby minimizing competition. Meanwhile, we will continue to seek opportunities arising from the buoyant property
market to replace properties in order to improve the quality and profitability of ADR’s portfolio.
c) Finance Policy
While we will keep a close eye on interest-rate trends, we will, in our debt financing, continue to further diversify its maturities
while extending its duration and fix its interest rate, thereby maintaining and strengthening a financial foundation that isresilient to future market volatility.
d) Dividend Payout Policy
ADR focuses its efforts on generating dividend payments in accordance with its basic management policy, which calls for“realization of a stable distribution of earnings over the long term.”
Moreover, ADR will start the drawdown of reserve for temporary difference adjustments (RTA), in accordance with partial
amendments of the “Regulations Concerning Accounting of Investment Corporations” and the Investment Trusts Associationof Japan’s “Regulations Concerning Real Estate Investment Trusts and Real Estate Investment Corporations” this fiscal period.
That means that ADR will fully draw down the RTA in equal amounts or more every fiscal period within 50-years (Note 9).
As of the date of this document, ADR will in principal draw down the RTA in equal amounts for 50-years and pay them out asa dividend supplement. But if the DPU falls below 4,500 yen even with the dividend supplement, draw down will be increased
to ensure a DPU of 4,500 yen (Note 10), thereby maintaining our policy to maintain the dividend per unit (DPU) at no less than
4,500 yen.
Notes 9. The RTA drawdown amount per fiscal period is calculated by dividing by 100, the outstanding amount of the RTA that has been transferred from the reserve for dividends as of theend of the fiscal period ended January 31, 2017 (50 years × 2 fiscal periods = 100 periods). As of the date of this document, the amount per fiscal period is approximately 335 million yen.
However, ADR may increase the amount of the drawdown indicated above in order to stabilize dividend levels.
10. However, this does not constitute a guarantee of actual amount of dividend payment. The actual amount of dividend payment will need to be decided ultimately by ADR’s Board of
Directors.

4

I. Asset Management Report
4 Equity Finances
The following are changes in paid-in capital and total number of units issued and outstanding over the last 5 years.
Date
February 1, 2012
February 29, 2012
February 1, 2013
February 27, 2013
February 3, 2014
February 26, 2014
September 23, 2016
October 19, 2016

Total number of units issued and outstanding
Increase
Balance
Follow-on offering
110,000
1,090,000
Third-party allotment
10,0001,100,000
Follow-on offering
135,000
1,235,000
Third-party allotment
5,000
1,240,000
Follow-on offering
58,0001,298,000
Third-party allotment
2,000
1,300,000
Follow-on offering
47,5001,347,500
Third-party allotment
2,500
1,350,000
Remarks

Paid-in Capital (million yen)
Notes
Increase
Balance
14,23178,7931
1,293
80,087
2
21,667
101,7543
802
102,557
4
11,967
114,5245
412
114,936
6
12,115127,0527
637
127,6908

1. ADR issued new units through public offering at an offer price of 133,770 yen (paid-in amount: 129,379 yen) per unit to procure funds for new property acquisitions and for other purposes.
2. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 129,379 yen per unit to procure funds for new property acquisitions and for other purposes.
3. ADR issued new units through public offering at an offer price of 165,945 yen (paid-in amount: 160,498 yen) per unit to procure funds for new property acquisitions and for other purposes.
4. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 160,498 yen per unit to procure funds for new property acquisitions and for other purposes.
5. ADR issued new units through public offering at an offer price of 213,330 yen (paid-in amount: 206,328 yen) per unit to procure funds for new property acquisitions and for other purposes.
6. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 206,328 yen per unit to procure funds for new property acquisitions and for other purposes.
7. ADR issued new units through public offering at an offer price of 263,445 yen (paid-in amount: 255,068 yen) per unit to procure funds for new property acquisitions and for other purposes.
8. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 255,068 yen per unit to procure funds for new property acquisitions and for other purposes.

Market Price of Units
The following are the highs and lows of ADR’s unit closing prices on the Tokyo Stock Exchange.
Fiscal Period
Period-end
High
Low

9th FP
January 2015
321,000 yen
245,800 yen

10th FP
July 2015
305,000 yen
269,300 yen

11th FP
January 2016
281,400 yen
229,600 yen

12th FP
July 2016
299,400 yen
251,700 yen

13th FP
January 2017309,000 yen
267,900 yen

Overview of the Investment Corporation
1 Major Unit-holders
The following are the major unit-holders as of January 31, 2017.
Name

Address

Number of units
held (units)

Japan Trustee Services Bank, Ltd. (Trust Account)

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

363,783

26.94

The Master Trust Bank of Japan, Ltd. (Trust Account)
Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)
The Nomura Trust & Banking Co., Ltd.
(Investment Trust Account)
ITOCHU Corporation

2-11-3 Hamamatsucho, Minato-ku, Tokyo
Office Tower Z, Harumi Island Triton Square,
1-8-12 Harumi, Chuo-ku, Tokyo

146,92210.88

85,4496.32

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

51,126

3.78

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

34,8002.57

State Street Bank and Trust Company
Trust & Custody Services Bank, Ltd.
(Money Trust Tax Account)
State Street Bank - West Pension Fund Clients Exempt
Fuji Fire and Marine Insurance Co., Ltd.

One Lincoln Street, Boston, MA 02111 U.S.A.
Office Tower Z, Harumi Island Triton Square,
1-8-12 Harumi, Chuo-ku, Tokyo
1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
4-3-20 Toranomon, Minato-ku, Tokyo

17,541

1.29

17,406

1.28

16,4491.21

14,382

1.06

The Yamanashi Chuo Bank, Ltd.

20-8, Marunouchi 1-chome, Kofu, Yamanashi
Total

12,666

0.93

760,524

56.33

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

5

Percentage ofissued units (%)

2 Directors and Independent Auditor
1. The executive director, supervisory directors, and independent auditor as of January 31, 2017, are as follows.

Title
Executive
director

Kenji Kousaka Note 1

Supervisory
director

Hidejiro Matsuda

Supervisory
director
Independent
auditorPrimary concurrent positions

Total amount of compensation
during the fiscal period(thousand yen)

President, AD Investment Management Co., Ltd.

–

Name

Yoshiki Oshima

President, Hidejiro Matsuda CPA Office

Note 2

1,800

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

1,800

Deloitte Touche Tohmatsu LLC

18,750 Note 3

Notes 1. Kenji Kousaka concurrently serves as president of ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM) and executive director of ADR. The
Commissioner of the Financial Services Agency was notified of the concurrent holding of positions on March 5, 2008 pursuant to the provisions of Article 31-4, Paragraph 4 of the
Financial Instruments and Exchange Act (as of the date of this document, Article 31-4, Paragraph 1 of the said Act) prior to its revision made by the provisions of Article 1 of the
Act for Amendment to the Financial Instruments and Exchange Act. (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 (1,750 thousand yen).

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

3 Asset Management Company, Asset Custodian, and Administrative AgentsThe following is the list of the asset management company, asset custodian, and administrative agents as of January 31, 2017.
Delegation

Name

Asset management company

AD Investment Management Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank Limited

Administrative agent

Management of register ofunit-holders

Mizuho Trust & Banking Co., Ltd.

Management of special
accounts

Mizuho Trust & Banking Co., Ltd.

Accounting, taxation,
institutional operations

Sumitomo Mitsui Trust Bank Limited

Administration of investment
corporation bonds

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

6

I. Asset Management Report
Real Estate Portfolio
Real Estate Portfolio
The following are the itemized assets held by ADR as of January 31, 2017.

Property
no.

P-2
P-3

Name of real estate

RESIDIA Shimazuyama
RESIDIA Nakameguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,397

3,130

1

95.8 87,4850.6

1

96.1 87,219

0.6

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,438

2,040

1

100.0 47,2560.3

1100.0 47,256

0.3

1,142

1,240

1

92.5 35,8540.2

196.4 34,699

0.2

P-4

RESIDIA Setagaya-Tsurumaki

Setagaya-ku, Tokyo

Beneficiary interests
in trust

P-7

RESIDIA Ikejiriohashi

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,167

1,380

1

88.6 36,236

0.2

195.0 33,227

0.2

RESIDIA Kudanshita

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,052

2,600

1

93.6 71,647

0.5

197.7 71,972

0.5

P-10 RESIDIA Hatagaya

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,073

1,210

1

95.4 31,1340.2

192.1 31,026

0.2

P-13

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,068

1,250

1

92.7 32,599

0.2

197.9 33,888

0.2

P-14 RESIDIA Kita-Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

2,563

2,920

1

100.0 75,456

0.5

1100.0 75,454

0.5

P-15

RESIDIA Yoyoginomori

Shibuya-ku, Tokyo

Beneficiary interests
in trust

710

718

1

82.4 18,435

0.1

188.5 19,232

0.1

P-16 RESIDIA Shinjuku-East III

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

727

887

1

97.5 24,447

0.2

192.5 25,089

0.2

Shibuya-ku, Tokyo

Beneficiary interests
in trust

566

711

1

100.0 17,944

0.1

1100.0 17,944

0.1

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,314

1,650

1

98.8 46,370

0.3

186.2 43,706

0.3P-22 RESIDIA Shinjuku-East

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

938

1,120

1

92.2 31,2270.2

192.1 31,438

0.2

P-23 RESIDIA Kanda-Iwamotocho

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,415

2,070

1

95.2 57,247

0.4

198.7 57,226

0.4

P-24 RESIDIA Azabujuban II

Minato-ku, Tokyo

Beneficiary interests
in trust

885

1,040

1

92.1 27,709

0.2

197.5 27,585

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

574

671

1

82.3 17,452

0.1

188.6 17,976

0.1

P-26 RESIDIA Meguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

742

720

1

84.7 18,309

0.1

191.9 19,040

0.1

P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,542

2,070

1

95.3 53,905

0.3

197.6 53,049

0.3

Minato-ku, Tokyo

Beneficiary interests
in trust

1,818

2,250

1

93.3 63,269

0.4

197.3 64,658

0.4

Setagaya-ku, Tokyo

Beneficiary interests
in trust

312

389

1

85.4 10,249

0.1

181.9 10,109

0.1

P-32 RESIDIA Yoyogi

Shibuya-ku, Tokyo

Beneficiary interests
in trust

310

398

1

92.7 10,823

0.1

180.4 10,338

0.1

P-33 RESIDIA Nishi-Shinjuku

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

347

440

1

94.3 12,495

0.1

190.0 11,250

0.1

P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

Beneficiary interests
in trust

268

341

1

87.2

9,779

0.1

1

91.5

9,665

0.1

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

879

1,120

1

85.3 33,2860.2

198.0 32,876

0.2P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,228

2,810

1

95.0 74,2200.5

1100.0 72,925

0.5

P-9

RESIDIA Sakurajosui

Leopalace Udagawacho
P-19
Mansion
P-21

RESIDIA Shinjuku-East II

P-30 Pianetta Shiodome
P-31

7

Location

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Komazawadaigaku

P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,106

1,450

1

97.6 41,602

0.3

198.8 42,123

0.3

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,932

2,370

1

97.6 68,942

0.4

1

95.1 68,214

0.4

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,148

1,340

1

97.7 35,916

0.2

195.5 37,319

0.2

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,252

1,500

1

98.4 41,486

0.3

198.4 41,877

0.3

P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,107

1,500

1

93.9 38,443

0.2

198.4 40,787

0.3

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

874

1,040

1

90.8 30,240

0.2

198.2 31,361

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

998

1,280

1

85.8 35,2280.2

197.7 35,249

0.2

Propertyno.

Name of real estate

Location

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

986

1,180

1

100.0 34,751

0.2

189.4 32,958

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,170

2,640

1

94.9 73,727

0.5

198.6 75,268

0.5

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,459

3,730

1

96.7 101,095

0.7

195.8 104,372

0.7

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,113

1,370

1

96.9 40,045

0.3

195.4 39,850

0.3P-50 RESIDIA Nishi-Azabu

Minato-ku, Tokyo

Beneficiary interests
in trust

6,433

7,470

1

94.6 206,193

1.3

195.7 205,705

1.3

P-51

Shibuya-ku, Tokyo

Beneficiary interests
in trust

2,005

2,100

1

100.0 57,732

0.4

192.5 57,932

0.4

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,352

2,890

1

95.5 78,013

0.5

197.3 80,298

0.5

3,599

4,240

1

91.3 113,3150.7

190.0 111,110

0.7

RESIDIA Daikanyama

P-52 RESIDIA Ichigaya
P-53

RESIDIA RoppongiHinokichokoen

Minato-ku, Tokyo

Beneficiary interests
in trust

P-55

RESIDIA TOWER MeguroFudomae

Shinagawa-ku, Tokyo

Real estate

15,189 18,600

1100.0 454,376

2.9

1100.0 453,046

2.9

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,557

3,460

1

98.3 88,102

0.6

192.7 87,342

0.6

P-58 RESIDIA Minami-Aoyama

Minato-ku, Tokyo

Real estate

704

474

1

89.2 17,964

0.1

172.3 15,357

0.1

P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,508

2,060

1

95.6 55,956

0.4

1100.0 57,863

0.4P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,354

1,410

1

96.4 39,961

0.3

187.1 38,019

0.2

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,950

2,190

1

97.6 57,9040.4

188.8 57,594

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

5,994

5,810

1

92.1 179,916

1.2

196.5 180,825

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,210

1,540

1

95.4 39,875

0.3

190.9 37,627

0.2

P-64 RESIDIA Nakanobu

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,776

2,280

1

95.4 63,1440.4

192.3 60,686

0.4P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,553

1,800

1

95.9 46,821

0.3

194.3 46,939

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,686

1,800

1

95.9 49,982

0.3

195.9 50,995

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,093

1,430

1

94.6 38,753

0.3

1100.0 39,394

0.3

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,224

1,460

1

97.0 40,434

0.3

193.9 38,553

0.2

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,728

2,130

1

96.5 59,9990.4

197.0 57,882

0.4P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

879

987

1

86.7 28,074

0.2

1100.0 25,112

0.2

P-72 RESIDIA Mejiro-Otomeyama

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

923

1,060

1

100.0 32,2130.2

1100.0 32,634

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,433

5,470

1

96.8 168,597

1.1

194.2 166,080

1.1

P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

887

943

1

100.0 28,693

0.2

189.9 26,505

0.2

Meguro-ku, Tokyo

Beneficiary interests
in trust

5,070

5,950

1

96.5 153,572

1.0

196.4 155,006

1.0Minato-ku, Tokyo

Beneficiary interests
in trust

9,007 11,100

197.2 310,273

2.0

1

98.1 313,996

2.0

P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

852

964

1

100.0 30,410

0.2

187.9 28,556

0.2

P-81 Windsor House Hiroo

Shibuya-ku, Tokyo

Real estate andleasehold rights toreal estate

1,650

1,480

1

84.2 47,2400.3

174.4 41,025

0.3

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,384

1,590

1

84.6 43,1690.3

196.2 42,378

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

839

1,200

1

100.0 28,095

0.2

1100.0 28,095

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

2,355

2,920

1

97.0 82,1930.5

198.9 81,470

0.5

P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,017

2,480

1

96.4 61,5440.4

192.0 63,291

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,563

1,810

1

92.4 48,297

0.3

197.7 46,982

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,362

4,230

1

94.4 112,5640.7

1100.0 112,932

0.7

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,740

4,500

1

97.5 119,094

0.8

195.8 118,421

0.8P-75 RESIDIA Yutenji
P-76

Park Tower Shibaura Bayward
Urban Wing

P-85 RESIDIA Komazawa
P-86 RESIDIA Shibaura KAIGAN

P-90 RESIDIA Sasazuka II

8

I. Asset Management Report

Propertyno.

Name of real estate

Meguro-ku, Tokyo

Beneficiary interests
in trust

965

1,280

1

94.2 33,9360.2

1100.0 32,531

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

785

964

1

96.7 26,487

0.2

196.7 25,915

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,244

1,650

1

95.0 44,102

0.3

195.1 44,146

0.3

P-94 RESIDIA Omori II

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,623

2,070

1

95.9 56,664

0.4

1

97.1 54,808

0.4

P-95 RESIDIA Shirokane-Takanawa

Minato-ku, Tokyo

Beneficiary interests
in trust

1,486

1,920

1

100.0 52,489

0.3

194.8 48,666

0.3

P-96 RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

3,799

4,320

1

95.6 117,591

0.8

1

96.1 117,352

0.8P-97 RESIDIA Nakameguro II

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,129

1,380

1

88.1 35,880

0.2

195.8 34,252

0.2

P-98 Artis Court Minamiaoyama

Minato-ku, Tokyo

Beneficiary interests
in trust

1,740

1,880

1

95.5 51,521

0.3

195.6 53,766

0.3

P-99 RESIDIA Yotsuya Sanchome

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,108

2,740

1

98.9 82,1420.5

198.3 82,800

0.5P-100 RESIDIA Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

951

1,030

1

93.5 28,047

0.2

191.4 27,475

0.2

P-101

Shibuya-ku, Tokyo

Real estate

653

728

1

90.9 18,2200.1

192.4 19,006

0.1

RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

726

820

1

87.4 23,501

0.2

197.5 23,337

0.2

RESIDIA Minami Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,213

1,350

1

100.0 35,5740.2

1100.0 36,186

0.2

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

P-102
P-103

RESIDIA Ebisu III

P-104 Chester Court Ochanomizu

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,186

3,760

1

94.7 101,9000.7

1100.0 102,621

0.7

P-105

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,312

1,540

1

93.7 42,699

0.3

196.0 40,890

0.3

P-106 RESIDIA Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,006

1,150

1

94.8 32,349

0.2

196.5 31,949

0.2

P-107

Shibuya-ku, TokyoRESIDIA Kanda-Iwamotocho II

RESIDIA Yoyogi II

P-108 RESIDIA Nakanobu II

901

938

1

97.4 25,112

0.2

197.4 24,262

0.2

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

950

989

1

95.7 16,826

0.1

198.0 27,031

0.2

851

893

1

94.6 12,7010.1

1100.0 23,760

0.2

–

–

1

100.0 21,245

0.1Real estate

P-109 RESIDIA Ochanomizu II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

P-110

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,200

1,270

–

1,596

2,460

1

98.4 67,396

0.4

1100.0 68,746

0.4

RESIDIA Mishuku–

C-1

RESIDIA Mitsukoshimae

Chuo-ku, Tokyo

Beneficiary interests
in trust

C-2

RESIDIA Kamata

Ota-ku, Tokyo

Beneficiary interests
in trust

2,159

3,480

1

97.3 101,750

0.7

198.3 98,502

0.6

C-3

RESIDIA Ikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,407

1,750

1

100.0 45,952

0.3

1100.0 49,902

0.3

1,568

2,140

1

100.0 51,072

0.3

1100.0 57,131

0.4

C-4

RESIDIA Bunkyo-Hongo

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

C-5

RESIDIA Asakusabashi

Taito-ku, Tokyo

Beneficiary interests
in trust

946

1,370

1

97.5 39,199

0.3

193.9 37,411

0.2

C-6

Maison Eclairee Ekoda

Nerima-ku, Tokyo

Beneficiary interests
in trust

919

1,100

1

96.8 36,578

0.2

198.9 36,122

0.2

2,887

3,660

1

96.3 100,127

0.6

1

97.1 99,143

0.6

C-7

RESIDIA Ueno-Okachimachi

Taito-ku, Tokyo

Beneficiary interests
in trust

C-8

RESIDIA Bunkyo-Hongo II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,553

1,870

1

100.0 48,405

0.3

196.7 48,901

0.3

Sumida-ku, Tokyo

Beneficiary interests
in trust

856

1,160

1

100.0 32,387

0.2

198.5 32,719

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

5,063

5,480

1

100.0 136,8660.9

190.9 145,896

0.9

C-9

RESIDIA Ryogoku

C-10 RESIDIA Higashi-Ginza
C-12

RESIDIA Nihonbashi-NingyochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,989

3,670

1

98.7 99,773

0.6

198.7 99,406

0.6

C-13

RESIDIA Omori-Higashi

Ota-ku, Tokyo

Beneficiary interests
in trust

1,854

1,990

1

95.7 57,059

0.4

193.7 55,659

0.4

C-15

RESIDIA Kinshicho

Sumida-ku, Tokyo

Beneficiary interests
in trust

4,036

4,460

1

99.5 121,1560.8

199.5 122,055

0.8

Taito-ku, Tokyo

Beneficiary interests
in trust

823

899

1

96.6 28,375

0.2

196.5 27,817

0.2

C-16 RESIDIA Negishi

9

Location

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Propertyno.

Name of real estate

Location

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2Chuo-ku, Tokyo

Beneficiary interests
in trust

1,771

2,270

1

97.9 64,000

0.4

195.9 64,883

0.4

Toshima-ku, Tokyo

Beneficiary interests
in trust

549

695

1

97.4 22,1360.1

193.7 21,035

0.1

C-19 RESIDIA Shin-nakano

Nakano-ku, Tokyo

Beneficiary interests
in trust

357

477

1

90.1 14,412

0.1

196.6 14,589

0.1

C-21

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

934

1,180

1

95.3 34,496

0.2

195.5 32,908

0.2

C-17

RESIDIA Shinkawa

C-18 RESIDIA Kamiikebukuro

RESIDIA Bunkyo-Yushima II

C-22 RESIDIA Tsukiji

Chuo-ku, Tokyo

Real estate

1,340

1,790

1

97.7 51,740

0.3

191.3 49,096

0.3

Beneficiary interests
in trust

1,808

2,130

1

99.1 63,159

0.4

1

93.1 60,889

0.4

C-23 RESIDIA Sasazuka

Suginami-ku, Tokyo

C-24 RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,134

1,490

1

100.0 38,847

0.3

1100.0 38,847

0.3

C-25 RESIDIA Tamagawa

Ota-ku, Tokyo

Beneficiary interests
in trust

1,191

1,590

1

98.0 43,677

0.3

196.9 47,896

0.3

C-26 RESIDIA Korakuen

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

554

755

1

100.0 21,3220.1

1100.0 21,290

0.1

C-27 RESIDIA Ginza-Higashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,856

2,400

1

99.2 63,452

0.4

199.2 68,927

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

804

1,040

1

100.0 34,002

0.2

1100.0 33,717

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

984

1,230

1

92.7 35,1810.2

198.0 36,143

0.2

C-31

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,027

1,300

1

95.6 36,931

0.2

195.0 36,875

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,284

1,610

1

94.1 45,890

0.3

193.0 44,739

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,313

2,940

1

95.7 79,718

0.5

195.5 79,635

0.5

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,254

2,590

1

97.0 75,407

0.5

194.9 73,053

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

3,191

4,010

1

91.0 112,3640.7

190.3 106,223

0.7

C-36 RESIDIA Bunkyo-Sengoku

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

642

870

1

100.0 25,3140.2

1100.0 25,716

0.2

C-37 RESIDIA Bunkyo-Yushima

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

962

1,290

1

94.2 37,387

0.2

195.0 35,974

0.2

C-38 RESIDIA Ikegami

Ota-ku, Tokyo

Beneficiary interests
in trust

349

412

1

91.0 13,662

0.1

190.7 13,506

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

508

742

1

96.3 22,0660.1

1100.0 21,755

0.1C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,358

1,600

1

95.2 45,481

0.3

195.8 44,761

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

892

1,140

1

100.0 36,994

0.2

196.0 35,921

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,257

1,560

1

91.3 40,760

0.3

193.3 43,387

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,766

2,080

1

97.6 57,708

0.4

198.7 57,578

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,216

1,420

1

95.0 44,061

0.3

191.6 41,490

0.3

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,210

1,540

1

98.5 43,9760.3

1100.0 42,630

0.3

C-46 RESIDIA Mejiro

Toshima-ku, Tokyo

Beneficiary interests
in trust

6,151

7,470

1

93.5 220,569

1.4

196.6 223,024

1.4

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

670

818

1

96.7 27,549

0.2

193.4 26,443

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

C-35 RESIDIA Bunkyo-Otowa

C-45 RESIDIA Shinkawa II

Real estate

5,141

7,040

1

98.2 177,876

1.2

196.0 193,331

1.2

3,667

5,400

1

100.0 136,656

0.9

192.3 147,255

0.9

C-49 RESIDIA Suginami-Honancho

Suginami-ku, Tokyo

Beneficiary interests
in trust

C-50 RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

Beneficiary interests
in trust

859

1,210

1

100.0 29,739

0.2

1100.0 29,739

0.2

Koto-ku, Tokyo

Beneficiary interests
in trust

1,919

2,850

1

100.0 84,206

0.5

198.7 79,778

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,103

1,480

1

96.9 37,1460.2

1100.0 38,051

0.2

RESIDIA BunkyoHonkomagome

Bunkyo-ku, Tokyo

Real estate

2,310

2,950

1

96.8 83,820

0.5

199.2 83,236

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,502

3,510

1

100.0 93,427

0.6

197.3 91,541

0.6

C-51

RESIDIA Kiba

C-52 RESIDIA Bunkyo-Yushima III
C-53

10

I. Asset Management Report

Propertyno.

Name of real estate

Location

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

Beneficiary interests
in trust

2,490

3,450

1

98.6 161,437

1.0

198.1 162,511

1.0Real estate

1,763

2,210

1

100.0 61,876

0.4

195.9 60,867

0.4

980

1,240

1

98.5 36,412

0.2

198.5 35,678

0.2

C-57 RESIDIA Monzennakacho

Koto-ku, Tokyo

Beneficiary interests
in trust

C-58 RESIDIA Ochanomizu

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,065

2,780

1

92.0 74,334

0.5

197.8 76,435

0.5

C-59 RESIDIA Omori

Ota-ku, Tokyo

Beneficiary interests
in trust

1,136

1,450

1

100.0 41,670

0.3

196.1 41,853

0.3

C-60 RESIDIA Nakamurabashi

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,053

1,310

1

97.3 38,647

0.3

194.6 38,057

0.2

C-61 RESIDIA Kachidoki

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,775

2,410

1

96.1 63,942

0.4

195.4 65,308

0.4

C-62 RESIDIA Bunkyo-Otowa II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,305

2,870

1

95.6 81,4340.5

196.3 80,105

0.5

C-63 RESIDIA Kinshicho III

Koto-ku, Tokyo

Beneficiary interests
in trust

660

802

1

100.0 25,4320.2

1100.0 25,414

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

940

1,200

1

95.2 33,919

0.2

195.6 31,560

0.2

8,145 11,100

197.6 708,438

4.6

197.0 710,154

4.6

C-64 RESIDIA Kamata III

C-65 RESIDIA TOWER Kamiikebukuro Toshima-ku, Tokyo

11

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Beneficiary interests
in trust
Real estate

527

613

1

100.0 16,422

0.1

1100.0 16,195

0.1

Itabashi-ku, Tokyo

Real estate

609

700

1

100.0 18,084

0.1

1100.0 18,084

0.1

C-68 RESIDIA Shimura-Sakaue II

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,135

1,360

1

100.0 35,5620.2

1100.0 35,381

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

433

502

1

100.0 13,6080.1

1100.0 13,608

0.1

C-70 RESIDIA Ikebukuro West

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,124

1,320

1

95.6 42,4880.3

187.8 40,927

0.3

C-71

Koto-ku, Tokyo

Beneficiary interests
in trust

1,292

1,530

1

100.0 44,647

0.3

196.6 43,439

0.3

C-72 RESIDIA Machiya

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,197

1,270

1

96.7 40,813

0.3

197.7 41,159

0.3

C-73 RESIDIA Ueno-Ikenohata

Taito-ku, Tokyo

Beneficiary interests
in trust

1,789

1,900

1

93.5 54,369

0.4

1100.0 51,158

0.3

C-74 RESIDIA Nerima

Nerima-ku, Tokyo

Beneficiary interests
in trust

520

623

1

100.0 18,060

0.1

1100.0 18,060

0.1

C-75 RESIDIA Higashi-Nihonbashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

401

456

1

100.0 14,3540.1

1100.0 14,606

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

695

754

1

92.4 21,783

0.1

1100.0 21,296

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, Tokyo

C-66 RESIDIA Takashimadaira

Itabashi-ku, Tokyo

C-67 RESIDIA Shimura-Sakaue

RESIDIA Ojima

Real estate

493

540

1

100.0 13,620

0.1

1100.0 13,620

0.1

1,369

1,490

1

97.5 42,853

0.3

198.7 43,769

0.3

C-78 RESIDIA Minamiyukigaya

Ota-ku, Tokyo

Beneficiary interests
in trust

C-79 RESIDIA Akihabara

Taito-ku, Tokyo

Beneficiary interests
in trust

1,006

1,160

1

95.4 33,355

0.2

197.0 33,032

0.2

C-80 RESIDIA Asakusa-Azumabashi

Sumida-ku, Tokyo

Beneficiary interests
in trust

904

1,080

1

98.3 31,8790.2

195.0 31,403

0.2

C-81 RESIDIA Omori III

Ota-ku, Tokyo

Beneficiary interests
in trust

1,432

1,600

1

98.6 41,4320.3

196.0 40,825

0.3

C-82

RESIDIA Nihonbashi-BakurochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,031

2,350

1

98.3 64,285

0.4

199.0 60,065

0.4

C-83

RESIDIA Nihonbashi-BakurochoIII

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,885

2,190

1

94.5 60,386

0.4

191.7 58,653

0.4

C-84 RESIDIA Bunkyo-Hongo III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,709

1,820

1

100.0 33,695

0.2

194.5 50,383

0.3

C-85 RESIDIA Shin-Okachimachi II

Taito-ku, Tokyo

Beneficiary interests
in trust

4,817

5,150

1

98.8 92,863

0.6

195.8 138,785

0.9

S-2

Kawaguchi-shi,
Saitama

Beneficiary interests
in trust

711

745

1

100.0 28,931

0.2

197.5 28,618

0.2

1,037

1,190

1

97.7 43,958

0.3

197.7 42,621

0.3

1,787

1,950

1

100.0 61,4150.4

1100.0 61,129

0.4

Chester House Kawaguchi

S-4

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

S-5

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

Propertyno.

Name of real estate

Location

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,082

1,170

1

96.1 33,263

0.2

1100.0 33,123

0.2

Tokyo Student-House WAKO

Wako-shi, Saitama

Beneficiary interests
in trust

683

743

1

100.0 26,182

0.2

1100.0 26,182

0.2

S-12

RESIDIA Kokubunji

Beneficiary interests
Kokubunji-shi, Tokyo
in trust

508

607

1

90.7 18,944

0.1

1

94.1 18,496

0.1

S-14

RESIDIA Yokohama-Kannai

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,541

1,880

1

99.1 56,162

0.4

195.0 54,563

0.4

S-15

RESIDIA Okurayama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

720

914

1

100.0 27,087

0.2

1100.0 27,999

0.2

S-16 RESIDIA Musashikosugi

Kawasaki-shi,
Kanagawa

Real estate

1,498

1,930

1

93.0 55,650

0.4

194.5 56,953

0.4

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,560

3,090

1

100.0 94,086

0.6

1100.0 93,859

0.6

Musashino-shi,Tokyo

Beneficiary interests
in trust

1,435

1,600

1

95.7 49,519

0.3

195.9 48,606

0.3

Pacific Royal Court
Minatomirai Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

11,998 16,100

1100.0 569,920

3.7

1100.0 570,757

3.7

S-22 Life & Senior House Kohoku II

Yokohama-shi,
Kanagawa

Real estate

1,561

2,190

1

100.0 70,704

0.5

1100.0 70,704

0.5

S-23 College Court Tanashi

Nishi-Tokyo-shi,Tokyo

Beneficiary interests
in trust

775

1,110

1

100.0 32,7600.2

1100.0 32,760

0.2

S-24 RESIDIA Urayasu

Urayasu-shi, Chiba

Beneficiary interests
in trust

2,099

2,810

1

98.3 88,433

0.6

194.3 82,754

0.5

S-25 RESIDIA Minami-Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

829

1,020

1

97.6 36,249

0.2

192.9 34,796

0.2

S-26 RESIDIA Urayasu II

Urayasu-shi, Chiba

Beneficiary interests
in trust

810

982

1

89.2 31,9500.2

195.9 31,832

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

765

922

1

98.7 33,9260.2

196.0 33,248

0.2

S-28 RESIDIA Kawasaki

Kawasaki-shi,
Kanagawa

Beneficiary interests
in trust

1,642

2,120

1

94.6 61,6240.4

195.7 60,200

0.4

S-29 Cocofump Hiyoshi

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,023

1,210

1

100.0 45,0000.3

1100.0 45,000

0.3

S-30 RESIDIA Sagamihara

Sagamihara-shi,
Kanagawa

Beneficiary interests
in trust

1,083

1,230

1

100.0 43,5210.3

1100.0 43,682

0.3

S-31

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

791

1,140

1

100.0 32,3220.2

1100.0 33,675

0.2

S-7
S-11

S-17

RESIDIA Chofu

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

RESIDIA Yokohama-Bashamichi

S-32 RESIDIA Hon-Atsugi

Atsugi-shi,
Kanagawa

Real estate

651

683

1

98.1 24,078

0.2

196.2 23,614

0.2

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

670

691

1

100.0 13,840

0.1

1100.0 23,277

0.2

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,494

1,720

1

100.0 61,919

0.4

1100.0 61,041

0.4

1,057

1,420

1

98.9 47,365

0.3

193.5 46,625

0.3

R-2

RESIDIA Imadegawa

R-4

RESIDIA Higashizakura

Nagoya-shi, Aichi

Beneficiary interests
in trust

R-5

RESIDIA Kameyama

Kameyama-shi, Mie

Beneficiary interests
in trust

1,545

1,150

1

100.0 59,5120.4

1100.0 61,096

0.4

Toyonaka-shi, Osaka

Beneficiary interests
in trust

900

924

1

88.1 29,935

0.2

1

98.1 29,771

0.2

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,469

4,080

1

100.0 125,359

0.8

1100.0 125,556

0.8Real estate

1,240

1,410

1

98.7 51,736

0.3

196.3 50,341

0.3

198.4 35,976

0.2

1

97.5 36,528

0.2

R-6

R-8

RESIDIA Ryokuchikoen
RESIDIA Kobe Port Island(South Bldg.; Centre Bldg.)
RESIDIA Kobe Port Island(North Bldg.)

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

R-11

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

860

1,140

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,984

2,710

1

93.9 89,941

0.6

193.9 87,043

0.6

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

883

915

1

92.4 37,038

0.2

196.2 36,721

0.2

R-14 RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

1,062

1,450

1

94.3 46,896

0.3

194.5 46,373

0.3

12

I. Asset Management Report

Propertyno.

Name of real estate

Beneficiary interests
in trust

1,802

2,450

1

98.7 77,052

0.5

198.0 77,595

0.5

Nagoya-shi, Aichi

Real estate

2,164

2,970

1

94.3 98,500

0.6

195.2 97,768

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,164

1,450

1

95.1 68,261

0.4

196.8 66,420

0.4

R-19 RESIDIA Tenjin-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

844

1,180

1

91.1 39,1270.3

194.6 37,719

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

325

393

1

97.4 15,928

0.1

197.4 15,509

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

615

796

1

92.6 25,819

0.2

192.6 25,989

0.2

R-24 RESIDIA Minami-Ichijo

Sapporo-shi,
Hokkaido

Real estate

1,486

2,030

1

99.6 75,932

0.5

199.3 75,953

0.5

R-25 RESIDIA Odori-Nishi

Sapporo-shi,
Hokkaido

Real estate

1,216

1,470

1

98.7 57,648

0.4

197.5 56,819

0.4

R-26 RESIDIA Kita-Sanjo

Sapporo-shi,
Hokkaido

Real estate

1,016

1,410

1

97.8 50,691

0.3

1100.0 50,828

0.3

R-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

765

909

1

94.6 31,937

0.2

196.5 32,115

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

653

757

1

89.6 34,7640.2

189.7 32,579

0.2

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,373

4,250

1

95.1 142,1460.9

198.3 146,695

0.9

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

964

1,220

1

92.9 45,402

0.3

194.5 43,860

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

698

839

1

92.2 28,505

0.2

1100.0 29,449

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,850

2,450

1

98.1 94,650

0.6

196.9 93,033

0.6

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,111

1,590

1

98.3 47,2510.3

196.2 46,862

0.3

Nagoya-shi, Aichi

Beneficiary interests
in trust

641

933

1

95.1 30,699

0.2

190.0 28,479

0.2

R-37 RESIDIA Sendai-Miyamachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

514

737

1

100.0 25,951

0.2

1100.0 23,914

0.2

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

482

668

1

100.0 21,839

0.1

1100.0 21,842

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,414

1,840

1

97.7 59,754

0.4

193.0 57,739

0.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

1,016

1,320

1

99.0 43,318

0.3

194.5 42,041

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

977

1,250

1

95.3

40,545

0.3

1

96.5

38,8660.3

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,308

3,060

1

98.3 106,334

0.7

198.0 104,660

0.7

R-43 RESIDIA Tsurumai

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,175

1,650

1

96.9

55,760

0.4

1

93.8

55,2000.4

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,659

3,690

1

97.3 122,0120.8

191.9 117,048

0.8

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

881

1,140

1

96.4

42,073

0.3

1

98.3

42,4960.3

Osaka-shi, Osaka

Beneficiary interests
in trust

1,908

2,450

1

96.4

73,774

0.5

1

93.2

71,1630.5

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

966

1,250

1

95.5

40,597

0.3

1

90.8

40,4020.3

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,464

2,140

1

98.0

76,646

0.5

1

100.0

75,7720.5

R-49 RESIDIA Gosho-Higashi

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,220

1,530

1

90.2

45,382

0.3

1

97.3

46,9760.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

870

1,020

1

93.6

35,037

0.2

1

96.7

34,152

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,288

4,650

1

95.7 153,678

1.0

197.1 152,480

1.0R-52 RESIDIA TOWER Sendai

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,765

2,000

1

91.8

69,650

0.5

1

96.0

68,7380.4

R-53 RESIDIA Higashizakura II

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,879

3,730

1

94.7 123,2070.8

192.8 123,352

0.8

R-54 RESIDIA Tsutsujigaoka

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,794

2,360

1

94.4

0.5

1

94.7

0.5

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

R-16 RESIDIA Takaoka

R-36 RESIDIA Hisaya-Oodori

R-46 RESIDIA Shinsaibashi West13

Location

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

83,30881,549Propertyno.

12th (Feb. 1, 2016 ~ Jul. 31, 2016)
13th (Aug 1, 2016 ~ Jan. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
Type ofat end ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
(Note 1)(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2Name of real estate

Location

R-55 RESIDIA Kobe-Motomachi

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,058

1,350

1

84.3

42,585

0.3

1

92.0

42,1930.3

R-56 RESIDIA Sendai-Honcho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,120

1,600

1

95.0

53,530

0.3

1

97.1

53,2680.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

593

859

1

97.6

31,236

0.2

1

90.5

29,7130.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,070

1,330

1

95.9

48,891

0.3

1

97.9

48,2770.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,799

3,500

1

100.0

90,400

0.6

1

100.0

90,3490.6

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

863

977

1

100.0

35,144

0.2

1

100.0

35,2380.2

R-61 RESIDIA Kyoto Okazaki

Kyoto-shi, Kyoto

Beneficiary interests
in trust

238

305

1

100.0

9,761

0.1

1

100.0

9,782

0.1

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,115

1,370

1

100.0

43,448

0.3

1

100.0

43,884

0.3

R-63 RESIDIA Kita-Nijyo-East II

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

560

737

1

97.8

26,978

0.2

1

93.2

25,4940.2

R-64 RESIDIA Takamiya

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

505

580

1

96.9

18,971

0.1

1

100.0

19,7570.1

R-65 RESIDIA Soen

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

402

540

1

90.0

20,498

0.1

1

96.7

20,7350.1

R-66 RESIDIA Tenjin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,153

1,290

1

90.9

40,843

0.3

1

94.3

40,6100.3

R-67 RESIDIA Yakuin-Oodori

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,151

1,310

1

90.1

41,444

0.3

1

100.0

41,6180.3

R-68 RESIDIA Hakata II

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,393

1,530

1

98.1

50,208

0.3

1

99.3

48,9690.3

R-69 RESIDIA Kego

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

865

1,100

1

97.7

36,346

0.2

1

97.9

35,4460.2

R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

964

1,080

1

92.6

34,848

0.2

1

96.3

35,4020.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

950

965

1

87.0

27,439

0.2

1

90.9

28,1980.2

Suita-shi, Osaka

Beneficiary interests
in trust

2,284

2,320

–

–

–

–

1

100.0

22,1160.1

420,717 517,944

255

96.6 15,430,919

100.0

257

96.6 15,504,314

100.0

R-73

RESIDIA Senri-Banpakukoen(Note 5)
Total

Notes 1. “Appraisal value at end of period” is the appraisal value or survey-based value, pursuant to ADR’s Articles of Incorporation and the “Regulations Concerning Accounting ofInvestment Corporations” issued by the Cabinet Office, provided by a real estate appraiser as of January 31, 2017.
2. “Total number of tenants,” is counted as “1” if the property is leased under a master lease agreement to a master lessee.
Because all properties held by ADR as of January 31, 2017 are leased under a master lease agreement, the “Total” for the “Total number of tenants” column indicates the total
number of master lease agreements, which were concluded with 13 master lessees.
3. “Occupancy rate” is calculated using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Rental revenue” is the rental revenue of respective real estate for the fiscal period under review.
5. The names of respective properties on the date of account closing are not necessarily the same as the new names of each of the properties as presented in the table. The same
applies hereafter unless otherwise specified.
Assets scheduled to be acquired related to forward commitments (Note 6)
Propertyno.

Name of real estate

Location

Type of ownership

Real estate appraisal value(million yen)

C-86

RESIDIA Kameido (Note 7)

Koto-ku, Tokyo

Beneficiary interests in trust (scheduled)

3,190

C-87

RESIDIA Koenji (Note 8)

Suginami-ku, Tokyo

Beneficiary interests in trust (scheduled)

1,480

R-72

RESIDIA Senri-Fujishirodai (Note 9, 10)

Suita-shi, Osaka

Beneficiary interests in trust (scheduled)

1,580

Notes 6. Forward commitments are forward-dated sales contracts in which settlement and delivery of property will be made at least one month after the date of contract or contracts with similar
agreements.
7. ADR concluded a transfer of beneficial interest agreement to acquire RESIDIA Kameido on September 6, 2016. The acquisition price is 2,988 million yen and the scheduled dateof acquisition is March 29, 2017, or otherwise a date agreed separately with the seller (however, the target date is on or before April 18, 2017).
8. ADR concluded a transfer of beneficial interest agreement to acquire RESIDIA Koenji on September 6, 2016. The acquisition price is 1,380 million yen and the scheduled date ofacquisition is March 29, 2017, or otherwise a date agreed separately with the seller (however, the target date is on or before April 18, 2017).
9. The assets scheduled to be acquired are listed by the name scheduled at the time of acquisition by ADR (March 2017: after completion). The same applies for the rest of this report
unless otherwise specified.
10. ADR concluded a transfer of beneficial interest agreement to acquire RESIDIA Senri-Fujishirodai on June 29, 2016. The acquisition price is 1,430 million yen and the scheduled dateof acquisition is March 29, 2017.

14

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 the underlying
real estate of the beneficiary interests in trust ADR owns. The estimated amount includes portions that are to be recorded as
expenses for accounting purposes.
(million yen)
Estimated amounts
Name of real estate(Location)

Payment for
Cumulative
the current
amount paid
periodPurposeEstimated duration

RESIDIA Shinkawa(Chuo-ku, Tokyo)

Major repair work

From: Sep. 2016
To: Jul. 2017

62

–

–

RESIDIA Jiyugaoka(Meguro-ku, Tokyo)

Major repair work

From: Oct. 2016
To: Apr. 2017

45

–

–

RESIDIA Setagaya-Tsurumaki(Setagaya-ku, Tokyo)

Major repair work

From: Sep. 2016
To: Apr. 2017

42

–

–

RESIDIA Mejiro(Toshima-ku, Tokyo)

Renovation work on
individual units

From: Jan. 2017
To: Jul. 2017

32

–

–

RESIDIA Tokugawa(Nagoya-shi, Aichi)

Repairs to external walls

From: Jan. 2017
To: Apr. 2017

27

–

–

Total
amounts

2 Capital Expenditures for the Current Period
The following table lists the major capital expenditures for renovations ADR conducted in the current period. The total capital
expenditures during this fiscal period were 641 million yen for the entire portfolio and, when combined with repairs andmaintenance cost of 480 million yen, the cost of construction work totals 1,122 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

RESIDIA Bunkyo-Otowa(Bunkyo-ku, Tokyo)

Major repair work

From: Mar. 2016
To: Dec. 2016

115

RESIDIA Hakata(Fukuoka-shi, Fukuoka)

Major repair work

From: Aug. 2016
To: Jan. 2017

91

RESIDIA Okayama-Ekimae(Okayama-shi, Okayama)

Major repair work

From: Jul. 2016
To: Jan. 201765

Other real estate

Renovations
Total

368
641

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

15

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

9th FP

10th FP

11th FP

12th FP

13th FP

From: Aug. 1, 2014
To: Jan. 31, 2015

From: Feb. 1, 2015
To: Jul. 31, 2015

From: Aug. 1, 2015
To: Jan. 31, 2016

From: Feb. 1, 2016
To: Jul. 31, 2016

From: Aug. 1, 2016
To: Jan. 31, 2017

Balance of reserves at
beginning of period

1,618

1,614

1,423

1,658

1,970

Amount of reserves
during period

565

534

584

605

625

Reversal of reserves
during period

569

725

349

292

451

1,614

1,423

1,658

1,970

2,144

Amount carried forward
to next period

Acquisitions and Disposals in the 13th Fiscal Period
1 Acquisitions and Disposals of Real Estate and Asset-Backed Securities
Acquisition
Propertyno.

Name of real estate

Disposition

Acquisitiondate

Acquisition
Price Note
(million yen)

Disposition
date

Disposition
price Note
(million yen)Book value(million yen)

Gain (Loss)on sales(million yen)

P-110

RESIDIA Mishuku

Oct. 3, 2016

1,159

–

–

–

–

R-73

RESIDIA Senri-Banpakukoen Nov. 29, 2016

2,124

–

–

–

–

3,283

–

–

–

–

Total

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

2 Transactions with Interested Parties
1) Transactions
The following are the transactions with interested parties for specified assets in the 13th fiscal period.
Purchase/Sales amountClassification
Total amount (13th FP)

Purchase amount

Sales amount

3,283,000 thousand yen- thousand yen

Breakdown of transaction with interested parties
ITOCHU Corporation

1,159,000 thousand yen / 35.3%- thousand yen / -%162) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 13th Fiscal Period.

Classification

Total amount ofcommission fees(A)(thousand yen)

Breakdown of transaction with interested parties
Payee

Amount paid(B)(thousand yen)Share(B)/(A)(%)

1,324,599

ITOCHU Urban Community Ltd.

815,605

61.6

Other rental expenses

104,235

ITOCHU Urban Community Ltd.

57,954

55.6

Advertising expenses

4,410

ITOCHU Urban Community Ltd.

3,210

72.8

ITOCHU Urban Community Ltd.

30,938

20.6

91

0.1

Property management fees

Other fees

149,886

ITOCHU Human Resources & General
Affairs Services Inc.

Notes 1. Transactions are not disclosed if the nominal counter party is an interested party but the actual counter party is clearly a third party.
2. ITOCHU Corporation, ITOCHU Urban Community Ltd. and ITOCHU Human Resources & General Affairs Services Inc. are interested parties of the asset management company thathave signed an asset management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts and Investment Corporations and Article 123 of
the Enforcement Order thereof, with which ADR engaged in transactions in the 13th Fiscal Period.

17

18

II. Financial Statements
Balance Sheets(Thousands of yen)
As of July 31, 2016

AssetsCurrent assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment (Notes 14, 18, 19, 21 and24)
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
Construction in progress in trust
Total property, plant and equipment
Intangible assets (Note 24)
Leasehold rights (Note 19)
Leasehold rights in trust (Note 19)
Other
Total intangible assets

19

As of January 31, 2017

16,504,881
9,348,598
206,960
390,904
5,594(12,475)
26,444,463

17,772,257
9,471,622
203,764
351,386
4,946(10,161)
27,793,815

74,345,036(9,865,584)
64,479,451
21,301(4,732)
16,56850,117(8,576)
41,540186,106(96,914)
89,19270,312,696
149,040,113(18,628,703)
130,411,409
178,208(85,271)
92,936
170,953(80,238)
90,715
628,040(390,915)
237,124
150,205,767
70,264
416,047,668

74,491,753(10,688,918)
63,802,834
22,821(5,454)
17,36657,167(10,975)
46,191207,046(107,867)
99,17970,314,787
150,689,937(20,312,832)
130,377,105
184,544(89,542)
95,002
170,953(86,525)
84,428686,711(417,936)
268,775
152,459,428
2,521
417,567,620

1,071,902
2,112,702
111
3,184,717

1,071,902
2,078,265
92
3,150,260

(Thousands of yen)

As of July 31, 2016

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

As of January 31, 2017

820,670
517,397
1,026,585
1,632
2,366,284
421,598,670

796,418
523,518
1,026,585
1,632
2,348,154
423,066,035

1,359
115,523
116,883
448,160,017

7,173
100,759
107,932
450,967,784

343,305

324,578

12,000,000

12,000,000

24,500,000

22,956,329

1,314,314
170,320
42,49857,126
26,37438,453,939

1,330,850
151,770
21,366
66,297
18,87736,870,070

29,500,000
167,864,329
1,229,004
3,197,112
201,790,445
240,244,385

21,500,000
167,318,000
1,225,772
3,219,876
193,263,649
230,133,720

114,936,698

127,690,098

53,220,279

53,220,279

33,552,162--

33,552,162

33,552,162
6,206,491
92,978,933
207,915,632
207,915,632
448,160,017

33,552,162
6,371,523
93,143,965
220,834,064
220,834,064
450,967,78420

II. Financial Statements
Statements of Income

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

21(Thousands of yen)
For the six months ended
July 31, 2016

For the six months ended
January 31, 201715,444,051
15,444,051

15,504,314
15,504,314

6,092,317
3,837
1,116,385
9,670
60,6283,600
239,6313,883

6,045,529
1,136,067
9,745
60,534
3,600
257,486-

90
186,187
7,716,233
7,727,818

189,733
7,702,724
7,801,590

10,182
728
1,712
372
12,996

7,208
9,691
3,494
362
2
20,7601,037,562
212,764
1,359

998,854
187,808
2,516

17,634

14,764

1,421

23,071

260,255
3,355
1,534,354
6,206,459
6,206,459
605
605
6,205,854

223,341156
1,450,513
6,371,837
6,371,837
605
605
6,371,232
291
6,371,523

637

6,206,491

26

Statements of Changes in Net Assets
For the six months ended July 31, 2016

(Thousands of yen)
Unitholders’ equity
Surplus
Voluntary retained earnings

Paid-in capital

Balance at the beginning
114,936,698
of period

Capitalsurplus53,220,279

Unappropriatedretained earnings Total surplus(undisposed loss)

Reserve fordividends

Total
voluntary
retainedearnings

33,552,162

33,552,162

Total
unitholders’equityTotal net
assets5,952,037

92,724,479 207,661,177 207,661,177

Dividends fromsurplus(5,951,400)(5,951,400)(5,951,400)(5,951,400)

Net income

6,205,854

6,205,854

6,205,854

6,205,854

254,454

254,454

254,454

Changes in items during
the period

Total changes in items
during the period

-

-

-

-

254,454

Balance at the end of
period114,936,698

53,220,279

33,552,162

33,552,162

6,206,491

92,978,933 207,915,632 207,915,632

For the six months ended January 31, 2017

(Thousands of yen)
Unitholders’ equity
Surplus

Paid-in
capitalBalance at the
beginning of period

114,936,698

Voluntary retained earnings
Capitalsurplus53,220,279

Reserve fordividends

Reserve fortemporarydifference
adjustments

33,552,162-

Unappropriatedretainedearnings
Total surplus(undisposed
loss)

Total
voluntary
retainedearnings

33,552,162

6,206,491

Total
unitholders’equityTotal net
assets

92,978,933 207,915,632 207,915,632

Changes in items
during the period
Issuance of new
investment units

12,753,400

12,753,400

Reversal of reservefor dividends(33,552,162)

Provision of reserve
for temporary
difference
adjustments

33,552,162

12,753,400(33,552,162)(33,552,162) (33,552,162) (33,552,162)

33,552,162

33,552,162

33,552,162

33,552,162

Dividends fromsurplus(6,206,200)(6,206,200)(6,206,200)(6,206,200)

Net income

6,371,232

6,371,232

6,371,232

6,371,232

165,032

12,918,432

12,918,432

Total changes in items
during the period

12,753,400

Balance at the end of
period127,690,098- (33,552,162)
53,220,279-

33,552,162-

165,032

33,552,162

33,552,162

6,371,523

93,143,965 220,834,064 220,834,064

22

II. Financial Statements
Statements of Cash Distributions(Thousands of yen)
For the six months ended
July 31, 2016

I. Unappropriated retained earnings

6,206,491,705 yen

6,371,523,766 yen

II. Reversal of reserve for dividends

33,552,162,785 yen--

350,126,234 yen

6,206,200,000 yen

6,721,650,000 yen(4,774 yen)

(4,979 yen)

33,552,162,785 yen-

291,705 yen-

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
the reserve for dividends will be usedin order to maintain stable payouts
into the future.
Based on this policy, ADR has decided
to distribute 6,206,200,000 yen in
total, which is the maximum integral
multiples of 1,300,000 investment
units issued and outstanding, andnot exceeding the unappropriatedretained earnings of 6,206,491,705
yen for the fiscal period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserves will be used in order tomaintain stable payouts into the
future.
Based on this policy, ADR has
decided to distribute 6,721,650,000
yen in total, which is the sum of thereversal of the reserve for temporary
difference adjustments (RTA) of
350,126,234 yen and unappropriatedretained earnings of 6,371,523,766 yen
for the fiscal period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

III. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments

IV. Dividends
Dividend per investment unit
V. Voluntary reserve
Provision of reserve for temporary
difference adjustments
VI. Retained earnings carried forward
Dividend Policy

23

For the six months ended
January 31, 2017

Statements of Cash Flows(Thousands of yen)
For the six months ended
July 31, 2016

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

For the six months ended
January 31, 2017

6,206,459
2,568,795
1,359
17,634

6,371,837
2,593,574
2,516
14,764

1,421

23,071(1,642)(10,910)
1,037,562
212,764
38,587(28,410)
1,808
70,751
76,902(23,822)(8,717)
818,381(55,170)
5,068
10,928,825
5,957(1,249,984)(266)
9,684,532(2,313)(7,208)998,854
187,808
3,196
39,517(21,132)(69,959)
17,957
29,677
9,171
24,251(3,402)
10,212,181
1,093(1,234,890)
123
8,978,508(9,000,000)
6,000,000
3,000,000(757,844)(8,703,965)
8,659
117,850(9,335,299)(7,000,000)
9,000,000(141,483)(3,886,534)(3,231)
22,764(2,008,485)

21,310,000(16,725,822)
3,000,000(22,133)(5,951,086)
1,610,957
1,960,190
14,893,289
16,853,480

8,000,000(8,000,000)
11,500,000(13,590,000)(8,000,000)
12,753,400(8,330)(24,492)(6,210,199)(3,579,623)
3,390,399
16,853,480
20,243,879

24

III. Notes to Financial Statements
Notes to Financial Statements
1 Organization
ADR (Securities Code: 3269) is a listed Residential Japan Real Estate Investment Trust (J-REIT) that mainly invests in residential
properties. It was established through a consolidation-type merger between the former Advance Residence Investment
Corporation and Nippon Residential Investment Corporation on March 1, 2010, and was listed on the Real Estate Investment
Trust (REIT) Securities Section of the Tokyo Stock Exchange (TSE) on March 2, 2010.
The merger made ADR the largest residential J-REIT in terms of asset size, enabling it to upgrade its portfolio while ensuring
its financial stability. The merger also resulted in retained earnings of 43.2 billion yen (33.5 billion yen as of the end of thisfiscal period) due to the profit from negative goodwill, and allowed ADR to demonstrate one of its strengths of delivering
stable dividends over the long term.
ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM), is wholly owned by the Itochu Group andthe Group’s key entity, Itochu Corporation, a leading Japanese trading house, is its main sponsor.

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

25

3 Signiﬁcant Accounting Policies
1) Property, plant and equipment (including assets in trust)(1) Depreciation and
Depreciated using the straight-line method.
amortization methods
Useful lives of major categories of property, plant and equipment are as follows:of non-current assets
Buildings: 3 to 46 years
Structures: 6 to 50 years
Machinery and equipment: 10 to 15 years
Tools, furniture and fixtures: 2 to 20 years
2) Intangible assets
Amortized using the straight-line method.
Useful lives of major categories of intangible assets are as follows:
Leasehold rights in trust: 23 to 65 years
3) Long-term prepaid expenses
Amortized using the straight-line method.
(2) Accounting for1) Investment unit issuance expenses
deferred assets
Amortized using the straight-line method (more than three years).
2) Investment corporation bond issuance costs
Amortized using the straight-line method over the period up to redemption of theinvestment corporation bonds.
(3) Basis of recording
Allowance for doubtful accounts
allowances
Estimated uncollectible amounts are recorded for possible losses arising from default on
receivables based on the historical performance of general receivables and a case-by-caseevaluation of the collectibility of certain receivables, such as receivables with default possibility.
Method of accounting for property taxes(4) Basis of recording
For property taxes, urban planning taxes, and depreciable asset taxes on real estate properties
revenue andheld, ADR records the amount of taxes imposed corresponding to the current fiscal period as an
expenses
expense for the property leasing activities.
Furthermore, for the pro rata portion of property taxes ADR paid to the transferor (seller) uponacquisition of real estate properties, ADR treats the amount as acquisition costs of real estate
properties, instead of recording it as an expense for the property leasing activities. The amountof property taxes treated as acquisition costs of real estate properties in the current fiscal period
was 1,863 thousand yen.
(5) Hedge accounting
1) Method of hedge accounting
Special accounting treatment is applied.
2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Loans
3) Hedging policy
ADR conducts derivative transactions to hedge risks stipulated in ADR’s Articles ofIncorporation in accordance with its financial policy.
4) Method for assessing the hedge effectiveness
Assessment of the hedge effectiveness has been omitted as the relevant transactions satisfy
the requirements for special accounting treatment.
(6) Scope of funds in the The funds (cash and cash equivalents) in the statements of cash flows consist of cash on handand cash in trust; demand deposits and deposits in trust; and short-term investments that arestatements of cash
readily convertible into cash, carry minimal risk of change in value, and are due for redemption inflows
three months or less from the acquisition date.
1) Accounting for trust beneficiary interests in trust assets such as real estate properties(7) Other significant
For trust beneficiary interests in real estate properties, all assets and liabilities of the trust
matters that serve
assets, as well as revenue and income earned from, and expenses incurred for the trust assets
as a basis for theare recorded under the respective account in the balance sheets and statements of income.
preparation of theOf the accounts used to record the above trust assets, the following accounts are significant
financial statements
and disclosed separately on the face of the balance sheets.
A. Cash and deposits in trust
B. Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture andfixtures in trust; land in trust; construction in progress in trust; and leasehold rights in trust
C. Guarantee deposits in trust
D. Tenant leasehold and security deposits in trust2) Accounting for consumption taxes
Consumption taxes and local consumption taxes are excluded from business transaction
amounts. However, accounting for non-current assets and deferred assets is inclusive ofconsumption taxes and local consumption taxes.

26III. Notes to Financial Statements
4 Balance Sheets(1) Minimum net assets as stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of yen)
As of July 31, 2016

As of January 31, 2017
50,00050,000(2) Commitment line agreements
ADR has executed commitment line agreements with its banks.
(Thousands of yen)
As of July 31, 2016
Total commitment line of credit

20,000,000

20,000,000--

20,000,000

20,000,000

Amount used
Unused balance

As of January 31, 2017(3) Contingent liabilities
For the six months ended July 31, 2016
ADR concluded agreement on the acquisition of the beneficiary interests in trust RESIDIA Senri-Fujishirodai, but in theevent that the purchase agreement for this asset is rescinded for reasons attributable to ADR (the purchaser), thepurchaser shall pay to the seller damages for breach of contract equivalent to 10% of the transaction price of 1,430 million
yen.
For the six months ended January 31, 2017
Not applicable.
(4) Provision and reversal of the reserve for temporary difference adjustments
For the six months ended July 31, 2016
Not applicable.
For the six months ended January 31, 2017

Initial amountReserve fordividends (Note)

33,552,162(Thousands of yen)

Balance as ofJuly 31, 2016-

Funds setaside during
13th FP

33,552,162

Funds drawn
down during
13th FP-

Balance as ofJanuary 31,
2017

Reasons for setting aside anddrawing down funds

33,552,162

Application of interim measures
stipulated in Paragraph 3 of
the Supplementary Provisions
to the Regulations Concerning
Accounting of Investment
Corporations (Cabinet Office
Ordinance No. 27 of 2015)

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

27

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

For the six months ended
July 31, 2016

For the six months ended
January 31, 2017

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

13,727,850

13,823,691

Facility charges

687,268

728,212Parking fees

442,620

14,857,738

441,475

14,993,378

Other revenue related to property leasing
Income from leasing rights

72,903

Other513,40968,658586,312442,277

15,444,051

Total revenue from property leasing activities

510,935
15,504,314

B. Expenses from property leasing activities
Expenses related to the rent business
823,752

836,580

1,087,353

1,068,122

Utilities

243,723

235,861

Repairs and maintenance505,055

480,985

Property-casual insurance

24,75825,170Trust fees

73,123

69,683

Other rental expenses

765,773735,571

Property taxes
Property management fees

Depreciation and amortization
Total expenses from property leasing activities
C. Operating income from property leasing activities(A−B)(2) Breakdown of loss on real estate sales
For the six months ended July 31, 2016
(Maison Yachiyodai)

2,568,776

6,092,317

2,593,555

6,045,529

6,092,317

6,045,529

9,351,734

9,458,784(Thousands of yen)

Income from sales of real estate properties

840,000

Cost of sales of real estate properties

818,381

Other sales expenses

25,456

Loss on real estate sales

3,837

For the six months ended January 31, 2017
Not applicable.

28III. Notes to Financial Statements
6 Statements of Changes in Net Assets(1) Total number of units authorized and total number of units issued and outstanding

For the six months ended
July 31, 2016

(Unit)For the six months ended
January 31, 2017

Total number of units authorized

6,000,000

6,000,000

Total number of units issued and outstanding

1,300,000

1,350,000

7 Statements of Cash Distributions(1) Reserve for temporary difference adjustments

For the six months ended July 31, 2016
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No.27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. From the period following the period in which the transfer to the reserve was made, a portion of thereserve equal to at least the 50-year average is scheduled to be used every period.
For the six months ended January 31, 2017
The interim measures of paragraph 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied, and in the statements of cash
distributions for the fiscal period ending July 31, 2016 (12th FP) the reserve for dividends of 33,552,162,785 yen, which is
the remaining portion of the amount that had been subdivided into gains on negative goodwill recorded in the previous
fiscal periods, has been transferred to the reserve for temporary difference adjustments (RTA). It has become necessary
to draw down the reserve in each fiscal period by no less than the 50-year average amount of the reserve (at least
335,521,628 yen) on an annualized basis, beginning with the fiscal period ending January 31, 2017 (13th FP), which is theperiod following the period in which the transfer to the reserve was made. As such, ADR has drawn down 350,126,234 yenof the reserve during the 13th FP.

8 Statements of Cash Flows(1) Relationship between the cash and cash equivalents at the end of period in the statements of cash flows and the accounts
reported in the balance sheets(Thousands of yen)
For the six months ended
July 31, 201629

For the six months ended
January 31, 2017

Cash and deposits

16,504,881

17,772,257

Cash and deposits in trust

9,348,598

9,471,622

Time deposits held over three months(9,000,000)(7,000,000)

Cash and cash equivalents

16,853,480

20,243,879

9 Leases(1) Finance leases (as a lessee)
Finance leases that do not transfer ownership of the leased property to the lessee
Finance leases that do not transfer ownership of the leased property to the lessee with a commencement date of July 1,2008 or before are accounted for as operating leases. The details are as follows:
A. Acquisition value equivalent, accumulated depreciation equivalent, and the period-end balance of the leased
properties(Thousands of yen)
As of July 31, 2016
Acquisition
value
equivalent
Tools, furniture andfixtures in trust
Total

Accumulated
depreciationequivalent

As of January 31, 2017
Period-end
balanceequivalentAcquisition
value
equivalent

Accumulated
depreciationequivalent

Period-end
balanceequivalent

6,974

6,383

591

6,974

6,737

236

6,974

6,383

591

6,974

6,737

236

*1. Acquisition value equivalent is determined inclusive of interest expenses as the period-end balance of unexpired leases is insignificant compared with that of property, plant andequipment.

B. Period-end balance equivalent of unexpired leases(Thousands of yen)
As of July 31, 2016

As of January 31, 2017

Due within one year

591

236

Due after one year

-

-

591

236

Total

C. Lease payments and depreciation expense equivalent(Thousands of yen)

For the six months ended July 31, 2016
Lease payments
Depreciation expenseequivalent

For the six months ended January 31, 2017
354

354

354

354

D. Calculation method of depreciation equivalent
Depreciated using the straight-line method over the lease term, assuming a zero residual value.

30III. Notes to Financial Statements(2) Operating leases (as a lessee)
Future lease payments are as follows:(Thousands of yen)
As of July 31, 2016

As of January 31, 2017

Due within one year

729,540

729,540

Due after one year

13,705,169

13,340,399

Total

14,434,709

14,069,939

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

(3) Operating leases (as a lessor)
Future lease receivables are as follows:(Thousands of yen)
As of July 31, 2016

As of January 31, 2017

Due within one year

4,127,414

3,997,554

Due after one year

11,220,072

9,825,391

Total

15,347,486

13,822,946

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

313) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on quoted market prices. If a quoted market price is not available, areasonable estimate of fair value is used. Certain assumptions are applied in the fair value measurements and therefore
could result in a different fair value if different assumptions are applied. Furthermore, the contractual amounts ofderivative transactions presented in “Derivative Transactions” below do not represent the market risk exposure ofthose derivative transactions.
(2) Fair values of financial instruments
The book values in the balance sheets, fair values of financial instruments, and unrealized gain (loss) are presented
below.
As of July 31, 2016

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

16,504,881

16,504,881–

2) Cash and deposits in trust

9,348,598

9,348,598–

3) Current portion of investment corporation bonds

12,000,000

12,062,017(62,017)4) Current portion of long-term loans payable

24,500,000

24,668,897(168,897)

5) Investment corporation bonds

29,500,000

30,614,815(1,114,815)

6) Long-term loans payable

167,864,329

170,992,358(3,128,029)–(3,559,153)(3,559,153)

7) Derivative transactions

As of January 31, 2017

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

17,772,257

17,772,257–

2) Cash and deposits in trust

9,471,622

9,471,622–

3) Current portion of investment corporation bonds

12,000,000

12,053,191(53,191)

4) Current portion of long-term loans payable

22,956,329

23,068,639(112,310)

5) Investment corporation bonds

21,500,000

22,183,817(683,817)

6) Long-term loans payable

167,318,000

170,494,851(3,176,851)–(2,329,420)(2,329,420)

7) Derivative transactions*1. Methods of determining the fair value of financial instruments

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

32III. Notes to Financial Statements(3) Redemption schedules of monetary claims and securities after July 31, 2016 and January 31, 2017
As of July 31, 2016

Due in one
year or less(Thousands of yen)

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

Cash and deposits

16,504,881

–

–

–

–

–

Cash and deposits in trust

9,348,598

–

–

–

–

–

25,853,479

–

–

–

–

–

Total

As of January 31, 2017

(Thousands of yen)Due in one
year or lessDue after one Due after two Due after three Due after four
Due after five
year through years through years through years throughyears
two years
three years
four years
five years

Cash and deposits

17,772,257

–

–

–

–

–

Cash and deposits in trust

9,471,622

–

–

–

–

–

27,243,879

–

–

–

–

–

Total

(4) Repayment schedules of investment corporation bonds, loans payable, and other interest-bearing loans after July 31,
2016 and January 31, 2017
As of July 31, 2016
(Thousands of yen)Due in one
year or lessCurrent portion of investment
corporation bonds
Current portion of long-termloans payable
Investment corporationbonds
Long-term loans payable
Total

33

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

12,000,000

–

–

–

–

–

24,500,000

–

–

–

–

–

–

8,000,000

2,000,000

4,000,000

1,500,000

14,000,000–

28,646,329

22,660,000

20,870,000

17,918,000

77,770,000

36,500,000

36,646,329

24,660,000

24,870,000

19,418,000

91,770,000As of January 31, 2017

(Thousands of yen)Due in one
year or lessCurrent portion of investment
corporation bonds
Current portion of long-termloans payable
Investment corporation
bonds

12,000,000

–

–

–

–

–

22,956,329

–

–

–

–

–

–

2,000,000

4,000,000

1,500,000–

14,000,000–

28,950,000

18,900,000

21,370,000

23,678,000

74,420,000

34,956,329

30,950,000

22,900,000

22,870,000

23,678,000

88,420,000

Long-term loans payable
Total

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

11 Securities
As of July 31, 2016
Not applicable.
As of January 31, 2017
Not applicable.

12 Derivative Transactions(1) Derivative transactions to which hedge accounting is not applied
As of July 31, 2016
Not applicable.
As of January 31, 2017
Not applicable.
(2) Derivative transactions to which hedge accounting is applied
The contract amounts or equivalent notional principal amounts defined in the contract by the method of hedge
accounting as of July 31, 2016 and January 31, 2017 are as follows:
As of July 31, 2016

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment forinterest rate swaps

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

Long-term loans
payableContract
amount due
after one year
148,598,000

127,198,000

Fair value(*2)(3,559,153)
(*3)

34

III. Notes to Financial Statements
As of January 31, 2017

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment forinterest rate swaps

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

Long-term loans
payableContract
amount due
after one year
139,098,000

120,198,000

Fair value(*2)(2,329,420)(*3)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore interest rate swaps are not stated at fair value in the balance sheets.

13 Proﬁts or Losses from Investments Accounted for Using the Equity Method
For the six months ended July 31, 2016
Not applicable as ADR does not have any affiliated companies.
For the six months ended January 31, 2017
Not applicable as ADR does not have any affiliated companies.

14 Transactions with Related Parties(1) Parent company and major corporate unitholders
For the six months ended July 31, 2016
Not applicable.
For the six months ended January 31, 2017
Not applicable.
(2) Affiliated companies
For the six months ended July 31, 2016
Not applicable.
For the six months ended January 31, 2017
Not applicable.
(3) Fellow subsidiaries
For the six months ended July 31, 2016
Not applicable.
For the six months ended January 31, 2017
Not applicable.

35

(4) Directors and major individual unitholders
For the six months ended July 31, 2016

Type ofrelatedparty

Capital stockor amount
Name ofBusiness
Percentage Relationships
investedrelated Location
description or of voting with related
in capital
party
occupation rights held
parties(Thousandsof yen)Nature of transactions

Management
fee 1

Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

Management
fee 2
Paymentof asset
Asset
management management Managementcompany fees to ADIM
fee 3
(*1)
Disposition
fee

Period-end
Transaction
amount Account balance(Thousands name (Thousandsof yen)of yen)Accounts
438,902
payable –
(*2)
other

474,014(*3)

Accounts
357,615
payable –
(*2)
other

386,224(*3)

Accounts
319,867
payable –
(*2)
other

345,457(*3)

4,200 (*2)––

Acquisition 93,560 (*3)
fee
(*4)

–

–

For the six months ended January 31, 2017

Type ofrelatedparty

Capitalstock orBusinessamountName of
Percentage Relationships
related Location invested description or of voting with related
occupation rights heldin capital
party
parties(Thousandsof yen)Nature of transactions

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

Payment Managementof asset
Asset
fee 2
management managementcompany fees to ADIMManagement
(*1)
fee 3

Transaction
Period-end
amount Account balance(Thousands name (Thousandsof yen)of yen)Accounts
451,843
payable –
(*2)
other

487,991(*3)

Accounts
361,565
payable –
(*2)
other

390,490(*3)

Accounts
322,658
payable –
(*2)
other

348,471(*3)

Acquisition 35,456 (*3)
fee
(*4)

–

–

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

36

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

As of July 31, 2016

As of January 31, 2017

Deferred tax assets
3,941

3,210

Valuation difference on assets acquired through merger

10,288,385

10,240,282

Tax loss carryforwards

1,371,552

1,371,552

76,88087,759

Excess provision of allowance for doubtful accounts

Other
Subtotal

11,740,758

11,702,804

Less valuation allowance(11,740,758)(11,702,804)

Total deferred tax assets

–

–

–

–

Net deferred tax asset(2) Reconciliation between the statutory tax rates and the effective tax rates after the application of tax effect accounting(Unit: %)As of July 31, 2016

As of January 31, 2017

32.31

31.74

Increase (decrease) in valuation allowance(6.62)(0.60)

Increase (decrease) due to tax rate changes

3.78

–

Statutory tax rate
(Adjustments)(29.99)(31.15)

Other

0.52

0.02

Effective tax rate after the application of tax effect accounting

0.01

0.01

Deductible dividends

16 Retirement Beneﬁts
For the six months ended July 31, 2016
Not applicable because ADR does not have retirement benefit plans.
For the six months ended January 31, 2017
Not applicable because ADR does not have retirement benefit plans.

37

17 Asset Retirement Obligations
For the six months ended July 31, 2016
Not applicable.
For the six months ended January 31, 2017
Not applicable.

18 Segment Information(1) Segment information
Disclosure is omitted because ADR’s business comprises a single reportable segment engaged in the property leasing
business.
(2) Related information
For the six months ended July 31, 2016
1) Information about products and services
Disclosure is omitted because operating revenues attributable to external customers for products and services of thesingle segment exceed 90% of the total operating revenue reported in the statements of income.
2) Information about geographic areas
A. Operating revenues
Disclosure is omitted because operating revenues attributable to external customers in Japan exceed 90% of thetotal operating revenue reported in the statements of income.
B. Property, plant and equipment
Disclosure is omitted because property, plant and equipment located in Japan exceed 90% of the total property,
plant and equipment reported in the balance sheets.
3) Information about major customers
Disclosure is omitted because operating revenues attributable to a single external customer account for less than 10%of the total operating revenue reported in the statements of income.
For the six months ended January 31, 2017
1) Information about products and services
Disclosure is omitted because operating revenues attributable to external customers for products and services of thesingle segment exceed 90% of the total operating revenue reported in the statements of income.
2) Information about geographic areas
A. Operating revenues
Disclosure is omitted because operating revenues attributable to external customers in Japan exceed 90% of thetotal operating revenue reported in the statements of income.
B. Property, plant and equipment
Disclosure is omitted because property, plant and equipment located in Japan exceed 90% of the total property,
plant and equipment reported in the balance sheets.
3) Information about major customers
Disclosure is omitted because operating revenues attributable to a single external customer account for less than
10% of the total operating revenue reported in the statements of income.

38

III. Notes to Financial Statements
19 Value of Rental Properties
ADR owns rental residential properties in Tokyo and other prefectures. The following are the book value, changes during theperiod, and fair value of these properties:(Thousands of yen)
For the six months ended
July 31, 2016

For the six months ended
January 31, 2017

Book value(*1)

Balance at the beginningof period

Changes during the period (*2)
Balance at the endof period
Fair value at the end of period (*3)

413,193,105

419,232,274

6,039,169

1,485,515

419,232,274

420,717,789

508,185,000

517,944,000*1. The book value is the cost of acquisition less accumulated depreciation.
*2. Of the changes in the value of rental properties during the period, the main element of increase in the previous period was the acquisition of one real estate property(670,966 thousand yen) and to the acquisition of real estate beneficiary interests in trust for four properties (8,377,652 thousand yen), while the main decreases came from the sale ofreal estate beneficiary interests in trust for one property (818,381 thousand yen) and from the posting of depreciation expenses. Of the changes in the value of rental properties during
the fiscal period ended January 31, 2017, the increase is mainly attributable to the acquisition of two real estate beneficiary interests in trust (3,493,215 thousand yen), and the decreaseis mainly a result of posting depreciation.
*3. The fair value at the end of period is the appraisal or assessment value provided by an external real estate appraiser.

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

20 Per Unit Information(Yen)
For the six months ended
July 31, 2016

For the six months ended
January 31, 2017

Net assets per unit

159,935

163,580

Net income per unit

4,773

4,771

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

For the six months ended
July 31, 2016
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common unit
(Thousands of yen)
Average number of units during the period(Units)39

For the six months ended
January 31, 2017

6,205,854

6,371,232––

6,205,854

6,371,232

1,300,000

1,335,245

21 Signiﬁcant Subsequent Events
For the six months ended January 31, 2017

1. Acquisition of assets
Following the basic policies prescribed in its Articles of Incorporation, ADR acquired the assets listed below:(1) RESIDIA Senri-Fujishirodai
Type of asset: Real estate beneficiary interests in trust
Acquisition price: 1,430 million yen
Acquisition date: March 29, 2017
Location: 1-103-30 Fujishirodai, Suita-city, Osaka
Area: 2,033.37m2 in land and 3,113.25m2 in buildings
Structure: Reinforced concrete structure with flat roof and 5 floors
Construction completion date: February 2017(2) RESIDIA Kameido
Type of asset: Real estate beneficiary interests in trust
Acquisition price: 2,988 million yen
Acquisition date: April 18, 2017
Location: 5-14-8 Kameido, Koto-ku, Tokyo
Area: 623.73m2 in land and 4,266.16m2 in buildings
Structure: Reinforced concrete structure with flat roof and 14 floors
Construction completion date: October 2013
(3) RESIDIA Koenji
Type of asset: Real estate beneficiary interests in trust
Acquisition price: 1,380 million yen
Acquisition date: April 18, 2017
Location: 5-7-5 Koenji-minami, Suginami-ku, Tokyo
Area: 443.92m2 in land and 2,114.11m2 in buildings
Structure: Reinforced concrete structure with flat roof and 8 floors
Construction completion date: March 2015
* The acquisition price does not include the amount required to settle property taxes, urban planning taxes anddepreciable asset taxes or consumption taxes and local consumption taxes.
2. Issuance of investment corporation bonds
Based on the “General Resolution on Bond Issuance” resolved by the Board of Director’s meeting held on July 25,
2016, ADR issued investment corporation bonds on February 17, 2017 under the following terms and conditions.
ADR Unsecured Bond #26 (with pari passu clause among specified investment corporation bonds)
Total amount of bonds: 2,000 million yen
Issue price: 100 yen par value of 100 yen for each bondCoupon rate: 0.18%
Collateral/Guarantee: No collateral and guarantee
Redemption date: ADR will redeem the entire amount on August 17, 2022. The bonds may be purchased andcanceled at any time on and after the date following the issue date, unless otherwise stipulated by the depository.
Coupon payment dates: February 17 and August 17 every year
Use of proceeds: Allocated to partial repayment of long-term loans

40III. Notes to Financial Statements
22 Schedule of Securities
Not applicable.

23 Table of the Summary of Contract Amounts and Fair Values of Derivative Transactions andForward Foreign Exchange Contracts(Thousands of yen)Contract amount (*1)
Contract amount due Fair value (*2 and *3)
after one year

Category

Type

Transactions other thanmarket transactions

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

139,098,000

120,198,000(2,329,420)

139,098,000

120,198,000(2,329,420)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore interest rate swaps are not stated at fair value in the balance sheets.

24 Summary of Real Estate

Property, plant and equipment

For the six months ended January 31, 2017

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

74,345,036

146,716-

74,491,753

10,688,918

Structures

21,301

1,520-

22,821

Machinery and equipment

50,117

7,049-

57,167

823,326

63,802,834

–

5,454

721

17,366–

10,9752,399

46,191–

186,106

21,366426

207,046

107,867

10,961

99,179–Land

70,312,696

2,090

-

70,314,787--

70,314,787–

Buildings in trust

149,040,113

1,649,824-

150,689,937

20,312,832

1,684,129

130,377,105*1Structures in trust

178,208

6,336-

184,544

89,542

4,270

95,002–

Machinery and equipmentin trust

170,953--

170,953

86,525

6,286

84,428–Tools, furniture and fixturesin trust

628,040

58,854

183

686,711

417,936

27,022

268,775–

150,205,767

2,253,661-

152,459,428--

152,459,428*1

70,264

2,521

70,264

2,521

-

-

2,521

–

445,208,605

4,149,942

70,874449,287,673

31,720,052

2,559,117

417,567,620

Leasehold rights

1,071,902--

1,071,902--

1,071,902–

Leasehold rights in trust

2,356,072--

2,356,072

277,806

34,4372,078,265––

Tools, furniture and fixtures

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

19,506--

19,506

19,41419

92

Subtotal

3,447,482--

3,447,482

297,22134,456

3,150,260

Total

448,656,087

4,149,942

70,874

452,735,155

32,017,273

2,593,574

420,717,881

Other*1. The increase in property, plant and equipment for the six months ended January 31, 2017, primarily represents the acquisitions of the properties listed below.
RESIDIA Mishuku
RESIDIA Senri-Banpakukoen

41

25 Schedule of Other Speciﬁed Assets
Not applicable.

26 Schedule of Investment Corporation Bonds
For the six months ended January 31, 2017

(Thousands of yen)

Series (*1)

Issue date

Balanceat thebeginningof period

ADR Bond #13 (Unsecured)

September
12, 2011

8,000,000

8,000,000-

ADR Bond #14 (Unsecured)

September
12, 2011

2,000,000-

ADR Bond #16 (Unsecured)

April 26,2012

4,000,000

ADR Bond #17 (Unsecured)

September
12, 2012

ADR Bond #18 (Unsecured)

Decreaseduring theperiodBalance atInterest Redemption
the end of
rate (%)
date
periodUse

Collateral-

September
12, 2016(*3)

Unsecured

2,000,000

1.68

September
12, 2018(*3)

Unsecured-

4,000,000

1.08 April 26, 2017(*2)

Unsecured

8,000,000-

8,000,000

0.87

September
12, 2017(*3)

Unsecured

September
12, 2012

4,000,000-

4,000,000

1.23

September
12, 2019(*3)

Unsecured

ADR Bond #19 (Unsecured)

April 25,2013

3,000,000-

3,000,000

1.32 April 25, 2023(*2)

Unsecured

ADR Bond #20 (Unsecured)

November
14, 2013

2,000,000-

2,000,000

1.41

November
14, 2025(*2)

Unsecured

ADR Bond #21 (Unsecured)

April 28,2014

2,500,000-

2,500,000

1.04 April 26, 2024(*2)

Unsecured

ADR Bond #22 (Unsecured)

April 23,2015

2,000,000-

2,000,000

0.726 April 23, 2025(*3)

Unsecured

ADR Bond #23 (Unsecured)

October 21,
2015

1,500,000-

1,500,000

0.326

October 21,
2020

(*2)

Unsecured

ADR Bond #24 (Unsecured)

October 21,
2015

1,500,000-

1,500,000

0.846

October 21,
2025

(*2)

Unsecured

ADR Bond #25 (Unsecured)

June 21,2016

3,000,000-

3,000,000

0.900 June 20, 2031(*2)

Unsecured

Total

-

41,500,000--

8,000,000 33,500,000-*1. The bonds have a pari passu clause among specified investment corporation bonds.
*2. The funds are used for the repayments of existing loans.
*3. The funds are used for the redemption of existing investment corporation bonds.
*4. Redemption schedules of investment corporation bonds after the balance sheet date for the next five years are as follows:

Due in one year or
less
Investment
corporation bond

12,000,000

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

4,000,000-(Thousands of yen)

Due after three
Due after four years
years
through five years
through four years
1,500,000-

42

III. Notes to Financial Statements
27 Schedule of Loans
For the six months ended January 31, 2017Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodThe Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

3,000,000

3,000,000--

Sumitomo Mitsui Trust Bank Limited-

3,000,000

3,000,000--

Mizuho Bank, Ltd.

-2,000,000

2,000,000

-

-

Total

-

8,000,000

8,000,000-

Development Bank of Japan Inc.

-

956,329-

956,329

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,500,000--

3,500,000

Mitsubishi UFJ Trust and Banking
Corporation

3,700,000--

3,700,000

Sumitomo Mitsui Trust Bank Limited

2,000,000--

2,000,000

Sumitomo Mitsui Banking Corporation

2,700,000--

2,700,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000-

500,000-

Sumitomo Mitsui Trust Bank Limited

500,000-

500,000-

2,000,000-

2,000,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

750,000-

750,000-

Sumitomo Mitsui Trust Bank Limited

750,000-

750,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

300,000-

300,000-

Sumitomo Mitsui Trust Bank Limited

300,000-

300,000-

Sumitomo Mitsui Banking Corporation

450,000-

450,000-

Mizuho Bank, Ltd.

450,000-

450,000-

The Norinchukin Bank

2,500,000-

2,500,000-

Mitsui Sumitomo Insurance Co., Ltd.

1,000,000-

1,000,000-

Taiyo Life Insurance Company

1,500,000-

1,500,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

800,000-

800,000

Sumitomo Mitsui Trust Bank Limited-

800,000-

800,000

Sumitomo Mitsui Banking Corporation-

2,800,000-

2,800,000

Mitsubishi UFJ Trust and Banking
Corporation-

1,600,000-

1,600,000

Taiyo Life Insurance Company-

1,500,000-

The Kagawa Bank, Ltd.

-

500,000

The Hiroshima Bank, Ltd.

-Short-termloans payable

Lenders

Current portion of long-term loans payable

Resona Bank, Limited

Development Bank of Japan Inc.
Tokio Marine & Nichido Fire InsuranceCo., Ltd.
Total

43

(Thousands of yen)
Balance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)
Sep. 30,
2016

(*6)

1.90%

Nov. 24,
2017

(*5)

1.75%
(*2)

Apr. 28,
2017

(*5)

1.59%
(*2)

Jun. 30,
2017

(*5)

-

Jan. 31,
2017

(*5)

-

Jan. 31,
2017

(*3)

-

Jan. 31,
2017

(*3)

-

Nov. 30,
2016

(*5)

-

Nov. 30,
2016

(*5)

1.10%
(*2)

Aug. 31,
2017

(*5)

1,500,000

0.94%

Sep. 29,
2017

(*7)

-

500,000

0.92%
(*2)

Sep. 29,
2017

(*6)

500,000-

500,000

0.79%
(*2)

Nov. 30,
2017

(*6)

600,000--

600,000

0.74%

May 31,2017(*6)

1,000,000--

1,000,000

0.72%

Mar. 31,
2017

(*5)

24,500,000

9,456,329

11,000,000

22,956,329

Notes

Unsecured
Unguaranteed

Unsecured
UnguaranteedClassification

Long-term loans payable

Lenders

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

Development Bank of Japan Inc.

956,329-

956,329--

Nov. 24,
2017

(*5)

Sumitomo Mitsui Trust Bank Limited

890,000--

890,000

1.76%
(*2)

Jun. 29,
2018

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

1.62%
(*2)

Sep. 28,
2018

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300,000--

1,300,000

Sumitomo Mitsui Trust Bank Limited

1,300,000--

1,300,000

Mizuho Bank, Ltd.

1,000,000--

1,000,000

1.57%
(*2)

Nov. 30,
2018

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

1,900,000--

1,900,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

Sumitomo Mitsui Banking Corporation

650,000--

650,000

Mizuho Bank, Ltd.

500,000--

500,000

Jul. 31,
2018

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

1.43%
(*2)

900,000--

900,000

Development Bank of Japan Inc.

1,000,000--

1,000,000

Shinsei Bank, Limited

1,500,000--

1,500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

Shinsei Bank, Limited

1,000,000--

1,000,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,850,000--

2,850,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

800,000-

800,000-

Sumitomo Mitsui Trust Bank Limited

800,000-

800,000-

Sumitomo Mitsui Banking Corporation

2,800,000-

2,800,000-

Mitsubishi UFJ Trust and Banking
Corporation

1,600,000-

1,600,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,500,000--

1,500,000

Sumitomo Mitsui Trust Bank Limited

2,100,000--

2,100,000

Sumitomo Mitsui Banking Corporation

800,000--

800,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank Limited

800,000--

800,000

Aozora Bank, Ltd.

700,000--

700,000

1,500,000-

1,500,000-

Taiyo Life Insurance Company

Notes

Unsecured
Unguaranteed
1.42%
(*2)

Jul. 31,
2018

(*6)

1.23%

Feb. 28,
2018

(*3)

-

Aug. 31,
2017

(*5)

1.20%
(*2)

Apr. 27,
2018

(*5)

1.25%
(*2)

Jun. 28,
2019

(*5)

-

Sep. 29,
2017

(*7)

44

III. Notes to Financial Statements

Classification
Lenders

Balance at the
beginning of
periodThe Kagawa Bank, Ltd.

500,000-

500,000--

Sep. 29,
2017

(*6)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

450,000--

450,000

1.16%

Sep. 30,
2019

(*6)

Sumitomo Mitsui Trust Bank Limited

450,000--

450,000

1.16%

Sep. 30,
2019

(*6)

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

1.03%
(*2)

Nov. 29,
2019

(*6)

500,000-

500,000--

Nov. 30,
2017

(*6)

Sumitomo Mitsui Banking Corporation

1,200,000--

1,200,000

1,200,000--

1,200,000

Nov. 29,
2019

(*6)

Mizuho Bank, Ltd.

0.95%
(*2)

Development Bank of Japan Inc.

2,200,000--

2,200,000

1.23%

Nov. 29,
2020

(*5)

Development Bank of Japan Inc.

2,200,000--

2,200,000

1.40%

Nov. 29,
2021

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,703,000--

2,703,000

Sumitomo Mitsui Trust Bank Limited

3,595,000--

3,595,000--

1,799,000

Jul. 25,
2019

(*5)

1,799,000

1.28%
(*2)

903,000--

903,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,200,000--

1,200,000

0.81%

Mar. 24,
2020

(*3)

Sumitomo Mitsui Trust Bank Limited

1,200,000--

1,200,000

0.82%

Mar. 24,
2020

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300,000--

1,300,000

0.81%

Mar. 24,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited

1,300,000--

1,300,000

0.82%

Mar. 24,
2020

(*5)

Development Bank of Japan Inc.

1,150,000--

1,150,000

1.08%

Mar. 24,
2021

(*4)

920,000--

920,000

Aozora Bank, Ltd.

1,830,000--

1,830,000

0.88%
(*2)

Mar. 24,
2020

(*5)

Resona Bank, Limited

1,370,000--

1,370,000

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.79%
(*2)

Feb. 28,
2018

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,000,000--

2,000,000

Sumitomo Mitsui Trust Bank Limited

2,600,000--

2,600,000

1.25%
(*2)

Oct. 29,
2021

(*5)

Sumitomo Mitsui Banking Corporation

1,500,000--

1,500,000

Long-term loans payable

The Hiroshima Bank, Ltd.

Mitsubishi UFJ Trust and Banking
Corporation
Aozora Bank, Ltd.

Sumitomo Mitsui Trust Bank Limited

45

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

Notes

Unsecured
UnguaranteedClassification
Lenders

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)
1.63%
(*2)

Dec. 22,
2021

(*5)

1.54%
(*2)

Jun. 25,
2021

(*5)

1.07%
(*2)

Sep. 30,
2020

(*3)

0.92%
(*2)

Sep. 30,
2019

(*3)

0.77%
(*2)

Sep. 28,
2018

(*3)

2,600,000

1.47%
(*2)

Nov. 15,
2023

(*5)

-

3,550,000

1.37%
(*2)

Nov. 15,
2022

(*5)

-

-

1,800,000

1.16%
(*2)

Nov. 26,
2021

(*3)

1,000,000--

1,000,000

1.32%
(*2)

Jun. 17,
2022

(*3)

Shinsei Bank, Limited

700,000--

700,000

1.10%
(*2)

Jun. 18,
2021

(*3)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.93%
(*2)

Jun. 18,
2020

(*3)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.85%
(*2)

Dec. 18,
2019

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

1.59%
(*2)

Feb. 14,
2025

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

500,000--

500,000

Feb. 16,
2024

(*5)

Sumitomo Mitsui Trust Bank Limited

1.44%
(*2)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

455,000--

455,000

Sumitomo Mitsui Trust Bank Limited

455,000--

455,000

1,120,000--

1,120,000

1.28%
(*2)

Feb. 16,
2023

(*5)

Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.

1,630,000--

1,630,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank Limited

2,100,000--

2,100,000

2,000,000--

2,000,000

1.08%
(*2)

Feb. 16,
2022

(*5)

Mizuho Bank, Ltd.

500,000--

500,000

2,900,000--

2,900,000

0.89%
(*2)

Feb. 16,
2021

(*5)

Mizuho Bank, Ltd.

2,160,000--

2,160,000

Aozora Bank, Ltd.

1,379,000--

1,379,000

919,000--

919,000

Mizuho Trust & Banking Co., Ltd.

1,000,000--

1,000,000

The Norinchukin Bank

1,000,000--

1,000,000

The Nishi-Nippon City Bank Ltd.

500,000--

500,000

The Nishi-Nippon City Bank Ltd.

500,000--

500,000

The 77 Bank, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

2,600,000--

Sumitomo Mitsui Banking Corporation

3,550,000-

Aozora Bank, Ltd.

1,800,000

Shinsei Bank, Limited

Resona Bank, Limited

Long-term loans payable

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

Notes

Unsecured
Unguaranteed46

III. Notes to Financial Statements

Classification
Lenders

Decreaseduring theperiodBalance atthe end of
period--1,500,000

270,000--

270,000

Mizuho Bank, Ltd.

2,900,000--

2,900,000

Mizuho Trust & Banking Co., Ltd.

2,350,000--

2,350,000

Aozora Bank, Ltd.

900,000--

900,000

The Nishi-Nippon City Bank Ltd.

400,000--

400,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

707,000--

707,000

Sumitomo Mitsui Trust Bank Limited

393,000--

393,000

The Nishi-Nippon City Bank Ltd.

400,000--

400,000

Development Bank of Japan Inc.

1,500,000--

Development Bank of Japan Inc.

1,850,000-

Aozora Bank, Ltd.

1,000,000

Aozora Bank, Ltd.

Interest
Repayment
rate
Use
date
(*1)

0.89%
(*2)

Feb. 16,
2021

(*5)

0.74%
(*2)

Feb. 14,
2020

(*5)

0.58%
(*2)

Jan. 29,
2021

(*3)

0.82%
(*2)

Jul. 29,
2022

(*3)

1,500,000

1.02%
(*2)

Sep. 29,
2023

(*5)

-

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

-

-

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

700,000--

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

Aozora Bank, Ltd.

700,000--

700,000

0.42%
(*2)

Oct. 31,
2019

Resona Bank, Limited

500,000--

500,000

500,000--

500,000

0.57%
(*2)

Jan. 29,
2021

(*5)

The Bank of Fukuoka, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

600,000--

600,000

Resona Bank, Limited

500,000--

500,000

0.63%
(*2)

Jun. 30,
2021

(*5)

The Bank of Fukuoka, Ltd.

500,000--

500,000

1,000,000--

1,000,000

700,000--

700,000

0.89%
(*2)

Jan. 31,
2023

(*5)

Resona Bank, Limited

1,000,000--

1,000,000

Mizuho Trust & Banking Co., Ltd.

1,200,000--

1,200,000

1.05%
(*2)

Mar. 19,
2025

(*3)

500,000--

500,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Nippon Life Insurance Company

1,000,000--

1,000,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Mizuho Trust & Banking Co., Ltd.

1,400,000--

1,400,000

0.88%
(*2)

Apr. 12,
2024

(*3)

Mizuho Trust & Banking Co., Ltd.

1,200,000--

1,200,000

0.75%
(*2)

Apr. 14,
2023

(*3)

Mitsubishi UFJ Trust and Banking
Corporation

Long-term loans payable

Increaseduring theperiod1,500,000

Mizuho Trust & Banking Co., Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Aozora Bank, Ltd.

The Yamaguchi Bank, Ltd.

47

Balance at the
beginning of
periodNotes

Unsecured(*5) UnguaranteedClassification
Lenders

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

1,500,000--

1,500,000

0.75%
(*2)

Apr. 14,
2023

(*3)

500,000--

500,000

0.73%
(*2)

Apr. 14,
2023

(*3)

1,200,000--

1,200,000

0.69%
(*2)

Oct. 14,
2022

(*3)

The Tokyo Tomin Bank, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

700,000--

700,000

0.62%
(*2)

Apr. 14,
2022

(*3)

The 77 Bank, Ltd.

500,000--

500,000

1,000,000--

1,000,000

0.50%
(*2)

Apr. 14,
2021

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

0.20%

Apr. 13,
2018

(*3)

Mizuho Bank, Ltd.

1,500,000--

1,500,000

The Gunma Bank, Ltd.

1,000,000--

1,000,000

0.63%
(*2)

May 27,2022(*5)

Development Bank of Japan Inc.

2,300,000--

2,300,000

1.04%
(*2)

Jun. 25,
2025

(*5)

Resona Bank, Limited

1,000,000--

1,000,000

800,000--

800,000

Aug. 31,
2023

(*5)

The Nishi-Nippon City Bank Ltd.

0.73%
(*2)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

700,000--

700,000

500,000--

500,000

Feb. 28,
2019

(*5)

Sumitomo Mitsui Trust Bank Limited

0.20%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

400,000--

400,000

0.92%

Aug. 29,
2025

(*3)

Sumitomo Mitsui Trust Bank Limited

400,000--

400,000

0.85%
(*2)

Aug. 29,
2025

(*3)

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

0.84%
(*2)

Dec. 18,
2025

(*5)

The Norinchukin Bank

1,000,000--

1,000,000

1,000,000--

1,000,000

Dec. 18,
2023

(*5)

The Bank of Fukuoka, Ltd.

0.61%
(*2)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

990,000--

990,000

0.55%

Feb. 28,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

990,000--

990,000

1,080,000--

1,080,000

0.66%

Jan. 31,
2027

(*5)

Mizuho Bank, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation

2,500,000--

2,500,000

0.57%

Jan. 31,
2026

(*5)

990,000-

990,000--

Feb. 29,
2024

(*5)

The Norinchukin BankThe Yamaguchi Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

The Norinchukin Bank

Long-term loans payable

Balance at the
beginning of
periodShinsei Bank, Limited

Notes

Unsecured
Unguaranteed48

III. Notes to Financial Statements

Classification
Lenders

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

2,260,000--

2,260,000

0.18%

Nov. 30,
2018

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.77%
(*2)

Mar. 24,
2028

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.54%

Mar. 24,
2026

(*3)

900,000--

900,000--

750,000

Jan. 31,
2027

(*3)

750,000

0.63%

Resona Bank, Limited

1,150,000-

250,000

900,000

0.52%

Jan. 31,
2026

(*3)

Mitsubishi UFJ Trust and Banking
Corporation

1,150,000--

1,150,000

0.45%

Jan. 31,
2025

(*3)

Shinsei Bank, Limited

500,000-

500,000--

Mar. 24,
2024

(*3)

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

0.75%
(*2)

Mar. 24,
2028

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

0.51%

Mar. 24,
2026

(*3)

Mizuho Bank, Ltd.

400,000--

400,000

0.63%

Jan. 31,
2027

(*3)

Shinsei Bank, Limited

350,000-

350,000--

Mar. 24,
2024

The Kagawa Bank, Ltd.

500,000-

500,000--

Apr. 28,
2024

(*5)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.26%

Jul. 29,
2025

(*5)

The Iyo Bank, Ltd.

300,000--

300,000

0.20%

Jul. 29,
2024

(*5)

The Chugoku Bank, Ltd.

500,000--

500,000

0.20%

Jul. 29,
2024

(*5)

Bank of Kyoto, Ltd.

500,000--

500,000

0.20%

Jul. 29,
2024

(*5)

The Norinchukin Bank-

1,500,000-

1,500,000

0.45%

Nov. 28,
2025

(*5)

The Norinchukin Bank-

1,000,000-

1,000,000

0.38%

Nov. 29,
2024

(*5)

Taiyo Life Insurance Company-

1,500,000-

1,500,000

0.24%

Nov. 29,
2024

(*5)

Mizuho Trust & Banking Co., Ltd.

Long-term loans payable

Increaseduring theperiodSumitomo Mitsui Banking Corporation

Mizuho Bank, Ltd.

49

Balance at the
beginning of
periodNotes

Unsecured(*3) UnguaranteedClassification

Balance at the
beginning of
periodIncreaseduring theperiodMitsui Sumitomo Insurance Co., Ltd.

-

1,000,000-

1,000,000

0.32%

Nov. 30,
2023

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,250,000-

1,250,000

0.41%

Jan. 29,
2027

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,000,000-

1,000,000

0.58%

Jan. 29,
2027

(*5)

0.63%

Jan. 29,
2027

(*5)

0.61%

Jan. 29,
2027

(*5)

0.50%

Jan. 30,
2026

(*5)

Long-term loans payable

Lenders

Decreaseduring theperiodBalance atthe end of
periodSumitomo Mitsui Trust Bank Limited-

1,000,000-

1,000,000

Sumitomo Mitsui Trust Bank Limited-

1,250,000-

1,250,000

Resona Bank, Limited-

1,000,000-

1,000,000

Resona Bank, Limited-

1,000,000-

1,000,000

167,864,329

11,500,000

12,046,329

167,318,000

Total

Interest
Repayment
rate
Use
date
(*1)

Notes

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

Long-term loans
payableDue in one year or
less

Due after one year
through two years

22,956,329

28,950,000

Due after two years Due after three years Due after four years
through three years through four years through five years
18,900,000

21,370,000

23,678,00050