16th
Fiscal Period ReportFebruary 1, 2018 - July 31, 2018

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

Balancesheet figures

Per unit
figures

Financial
indicators

Reference
information

12th FP

13th FP

14th FP

15th FP

16th FP

Fiscal Period

units

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

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

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

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

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

Operating revenues(Rental revenue)a(Gain on real estate sales)b
Total operating expenses(Rental business expenses)c(Loss on real estate sales)d(Impairment loss)e
Operating income
Ordinary incomef
Net incomegTotal assetshInterest-bearing liabilitiesi
Net assetsjPaid-in Capitalk
Total dividendslPayout ratiol/g
Total number of units issued and outstandingm
Net assets per unit
j/m
Note 2
Net income per unit
Dividend per unit
l/m
Dividend from earnings per unit
Dividend in excess of earnings per unit
Note 3
Annualized dividend yield
Return on investment (Paid-in Capital)(g+q)/(k+i) Note 3
Return on investment (market capitalization) (g+q)/(m×r+i) Note 3(g-b+d+e+q)/m
FFO per unit
Note 3
Annualizedn
FFO per unit
r/nNote 4
Ratio of ordinary income to total assets
f/hNote 3
Annualized
Equity ratioj/hNote 5Return on equity
g/jNote 3
Annualized
Ratio of interest-bearing liabilities to total assets
i/h
DSCR
o/p
Net income before interest and depreciationoInterest expensespNote 6NOI
a-c+q
Note 3, 7
Annualized NOI yield
Note 8Depreciation and amortizationq
Number of properties under management
Number of leasable units at end of period
Note 9
Leasable floor area at end of period
Note 10
Occupancy rate at end of period
Unit price at end of periodrmillion yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen
%
Units
yen
yen
yen
yen
yen
%
%
%
yen
yen
times
%
%
%
%
%
%
times
million yen
million yen
million yen%
million yen
–
Units
m2
%
yen

15,444
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

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

15,903
15,903
–
7,883
6,176
–
–
8,019
6,798
6,798
448,421
221,418
220,574
127,690
7,134
105.0
1,350,000
163,388
5,035
5,285
5,285
0
3.7
5.4
3.1
6,999
13,885
20.2
1.5
3.0
49.2
3.1
6.1
49.4
10.2
10,472
1,023
12,377
5.6
2,651
261
20,888783,781.16
97.2
280,000

16,302
16,167
135
8,030
6,345
–
–
8,272
7,088
7,087
452,846
225,918
220,524
127,6907,423
104.7
1,350,000
163,351
5,250
5,499
5,499
0
3.8
5.6
3.2
7,136
14,392
20.2
1.6
3.2
48.7
3.2
6.5
49.9
10.9
10,755985
12,504
5.7
2,682
261,263
21,246789,430.47
96.9
290,900

Notes 1. Figures for Operating results do not include consumption tax. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal place.
The same applies hereafter.
2. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
3. The annualized figures are calculated using periods of 182 days for the 12th FP, 184 days for the 13th FP, 181 days for the 14th FP, 184 days for the 15th FP and 181 days for the 16thFP.
4. Ratio of ordinary income to total assets = Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
5. Return on equity = Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
6. In the calculation of NOI, the depreciation and amortization is limited to what is included in rental business expenses.
7. Annualized NOI yield = Total annualized NOI ÷ Total property acquisition price		 (The annualized NOI yield is calculated by taking into account the actual number of days of operation for each property.)
8. Depreciation and amortization include amortization of intangible assets in addition to depreciation of property, plant and equipment.
9. “Leasable floor area at end of period” refers to the leasable floor area for each building as stated on the lease agreement or indicated on its official floor plan. The leasable floorarea of land such as parking lots is not included.
10. “Occupancy rate at end of period” is calculated by using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.

1

2 Investment Environment and Operating PerformanceWith the aim of realizing a stable distribution of earnings over the long term, we carried out the following initiatives during
the 16th FP.
1. Internal Growth
During the fiscal period, which was a peak leasing period (Note 1), ADR was able to maintain high occupancy while accelerating
the rise in rent levels in tenant replacements, continue to raise rents on renewals, and carry out value enhancement works
to heighten the competitive advantages of ADR’s properties.
2. External Growth
ADR acquired a total of four properties (total acquisition price of 6.7 billion yen), consisting of two recently constructed
properties from the sponsor pipeline and two properties from third parties through negotiated transaction. Also, with theaim of improving the quality and profitability of ADR’s portfolio, ADR sold two properties with low profitability and volatilerevenue profiles.
3. FinanceBy taking advantage of the low interest rate environment, ADR was able to simultaneously extend the average remaining
duration of interest-bearing liabilities while reducing its average interest rate.
Notes 1. In Japan, the months of February to April is a busy season for leasing, during which time a relatively high number of lease contracts are normally concluded. In this report we call thefiscal periods that include the busy season the peak leasing periods and other fiscal periods as off-season periods. Therefore, at ADR the fiscal periods ending January 31 are off-season
periods and fiscal periods ending July 31 are peak leasing periods.

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

Previous FP
Results

Item

Initial forecast Note 2

16th FP Results(July 2018)
16,302

Operating revenues

15,903

16,162

Operating income

8,019

8,032

Ordinary income

6,798

6,818

6,798

6,817

5,035 yen

5,050 yen

5,285 yen

5,299 yen

Net income
Earnings Per Unit
Dividend Per Unit

Note 3

8,272
7,088

7,087

5,250 yen
5,499 yen(million yen)

Difference from the previous FP Difference from the initial forecast
+398
+139
+252

+239

+289

+270

+289

+270

+215 yen+200 yen+214 yen+200 yen

Notes 2. The initial forecast refers to the earnings forecasts for the 16th FP disclosed in the “Brief Summary of Kessan Tanshin” for the 15th FP, dated March 12, 2018. The same applies
hereafter.
3. Calculated by dividing net income by the total number of units issued and outstanding as of the end of the fiscal period. Decimals are omitted from the EPU figures. The same
applies hereafter.

Earnings per unit (EPU) set a new record high of 5,250 yen, which is 215 yen higher than in the previous fiscal period. ADR
achieved higher revenues and profits due to peak leasing season increases in key money, gains on sales of two properties,
and a decrease in interest payments compared to the previous period. On the other hand, when compared to the initial
forecast, ADR achieved higher revenues and profits due to higher-than-expected occupancy rates which resulted in higher
rental revenue and lower leasing expenses to attract new tenants.
The dividend per unit (DPU), including the 248 yen per unit drawdown in reserve for temporary difference adjustment (RTA),
amounted to 5,499 yen, which is 200 yen higher than the initial forecast and 214 yen higher than in the previous fiscal period.
1. Internal Growth– Maintained high occupancy rates while increasing rents –While population inﬂow continues in regions where ADR invests, the market for rental apartments remains tight since thenumber of rental housing starts remains limited. Accordingly, we achieved an average period occupancy rate of 97.0% which
is a record high on par with that achieved in the previous fiscal period.
With such high occupancy rates and our efforts to actively raise rents upon tenant replacement, as well as at the time ofcontract renewal, the rent rise for residential units that had tenants replaced was at an all-time high of 2.18%. As a result, we
increased the overall portfolio rent level (Note 4) for an 8th consecutive fiscal period, achieving a 0.29% gain over rent levels ofJanuary 31, 2018.
Notes 4. Change in average per-unit rent between the start and end of the fiscal period, for all properties held for the entire fiscal period. The same applies hereafter.

2

I. Fiscal Period Report– Strengthening competitiveness of our properties by carrying out value enhancement work –ADR conducts large-scale repairs of its properties on a scheduled basis in order to maintain functionality and freshen-up theirappearance. In addition, ADR carries out value enhancement work on individual units, especially units of properties thathave recently been subjected to large-scale repairs, to maintain and enhance competitiveness in the leasing market. Valueenhancement works are implemented at the time when tenants are being replaced, and entail equipment upgrades and floor
plan changes.
During the fiscal period, we executed large-scale repairs on 5 properties and value enhancement works on 39 residential
units. We were able to increase the number of units of which we can implement the value enhancement work by aggressively
seeking units where rent rise was more likely to be expected if the works were implemented, by taking measures to reduce
costs by reusing as much as possible of existing fittings and fixtures to increase the expected return on investment andbecause it was a peak leasing period. Of the residential units that underwent the value enhancement works, new rental
contracts had been signed for 24 units as of August 31, 2018. Those units saw robust increases in rent of 20% on averagein comparison with rents under previous contracts. Going forward, ADR will endeavor to further enhance the competitive
strengths of its properties through such measures.
– Sustainability measures –ADR works together with the asset management company on contributing to realize a sustainable society and to increase
its unit-holder value. To that end, the asset management company has set up a sustainability committee to systematicallytackle each of the ESG (environmental, social and governance) sustainability goals. More specifically, ADR has been replacing
equipment with environmentally friendly ones at its properties, contributing to local communities by raising disasterprevention awareness among its tenants, introducing job training programs to employees of the asset managementcompany, and promoting many other sustainability measures.
International assessment institutions have evaluated ADR on the measures regarding sustainability it has taken, as follows:• ADR received the “Green Star” rating in 2017 from GRESB, the Global Real Estate Sustainability Benchmark which wasdeveloped mainly by European pension funds to evaluate the ESG performance of real estate companies and funds andwhich ADR has continually participated in its survey since 2014.
• We decided to acquire a corporate social responsibility (CSR) rating by Robeco SAM, a first for a residential J-REIT during the
fiscal period. By acquiring the rating ADR will be evaluated to see if it is eligible for inclusion in the Dow Jones Sustainability
Index which uses the RobecoSAM’s ratings to evaluate the eligibility.
• ADR has received an ESG rating of BB from MSCI, an investment information provider that serves institutional investors.
Although in 2017 ADR became the one and only residential J-REIT to be included as a constituent in the MSCI JAPAN ESG
Select Leaders Index, which targets companies that exhibit a high ESG profile, it was excluded from the index upon arebalancing in 2018. As such, we are focusing our efforts on promptly regaining inclusion in the index.
2. External Growth– Steadily acquiring prime properties –During the current fiscal period, despite the challenging acquisition environment, ADR has been able to acquire prime
properties that are expected to generate stable rent revenue. ADR has acquired a total of four properties at a total acquisition
price of 6.7 billion yen. This includes two recently constructed properties acquired from the sponsor pipeline, RESIDIA Kamata
V and RESIDIA Kamata IV, and two other properties acquired from third parties through negotiated transaction, RESIDIA
Funabashi IV and RESIDIA Hijiyama Koen (Note 5).
RESIDIA Hijiyama Koen is a scarce property located in city center of Hiroshima. It is the first time that ADR invested in
Hiroshima. The property is a rental apartment exclusively for single women where we expect it to attract rental demand
from both working adults and students.
Notes 5. Although the name of the property is CREST Hijiyama as of the end of the fiscal period, it has been renamed as of September 3, 2018. Accordingly, the property is presented in thisdocument under its new name, irrespective of the name of the property as of the end of the fiscal period.

3. Finance– Interest rate reduction and extension of remaining debt duration –Under its financing policy of extending remaining duration, fixing interest rates and diversifying maturities of interest-bearing
liabilities, ADR procured in total 25.6 billion yen (average initial duration of 7.6 years and average interest rate of 0.48% (Note 6))during this fiscal period. With the average remaining duration of debt at 5.0 years and the average interest rate at 0.84% as ofthe end of the current fiscal period, we have managed to further strengthen our financial foundations by simultaneously having
extended the remaining average duration and lowered the average interest rate, compared to the previous fiscal period end.

3Issuer ratings that have been acquired by ADR as of the end of the current fiscal period (July 31, 2018) are as follows.
Credit rating agency

Coverage

RatingJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating

AA(Outlook: Stable)

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

Issuer ratingA+(Outlook: Positive)

Notes 6. The “average interest rate” is the weighted-average interest rate on loans and bonds as of their respective borrowing or issuance date, as of the end of the current fiscal period(July 31, 2018). If the interest rates on the debts have been converted to fixed interest rates using swap agreements in order to hedge the risk of interest rate volatility, the fixed
rates are used in calculating the average.

3 Management Policies and Challenges Going Forward
By diligently implementing the strategies outlined below, ADR aims to achieve firm and steady EPU growth.
a) Internal Growth
By comprehensively taking into account both the property characteristics and terms of individual contracts, ADR will continue
work to raise rents at the time of tenant replacements, as well as at the time of contract renewals. Furthermore, we will aim
to generate greater profitability from each property by improving leasing income and expenditure which includes actively
securing key money. In addition, we will continue to enhance the competitive advantages of our properties by systematicallyconducting timely large-scale renovations, as well as implementing value enhancement work appropriate to the property’s
characteristics.
b) External Growth
Even though market conditions will continue to be difficult for acquiring properties, we will strive to acquire properties thatwill contribute in improving the quality and profitability of ADR’s portfolio by minimizing competition through the means ofacquiring them from our sponsor or through third parties in negotiated deals by leveraging on market information supplied
to ADR. Meanwhile, we will continue to seek opportunities arising from the buoyant property market to dispose and replace
properties in order to improve the quality and profitability of ADR’s portfolio.
Between the end of this fiscal period and the fiscal reporting date, ADR acquired RESIDIA Kita-Nijyo-East III (Note 7) from a third
party by means of negotiated transaction, at an acquisition price of 400 million yen. Located in Sapporo’s city center nearby
Sapporo’s Ekimae-dori and Odori area, the property is expected to generate stable rent revenue given that it is likely togenerate rental demand from single working adults who commute to the city center.
Notes 7. Although the name of the property is Centro Sapporo Kita-Nijyo as of the date of this document, it has been renamed as of October 1, 2018. Accordingly, the property is presented inthis document under its new name, irrespective of the name of the property as of the date of this document.

c) Finance Policy
While we 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 sustaining the high fixed interest ratio, thereby maintaining and strengthening a financial
foundation that is resilient 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 continue to draw down the reserves for temporary difference adjustments (RTA), in accordance withpartial amendments of the “Regulations Concerning Accounting of Investment Corporations” and the Investment Trusts
Association of Japan’s “Regulations Concerning Real Estate Investment Trusts and Real Estate Investment Corporations.”
This means that ADR will fully draw down the RTA within 50 years, in equal amounts or more every fiscal period (Note 8), startingfrom the fiscal period ended January 2017.
In case the DPU falls below 4,500 yen even with the dividend supplement, the draw down will be increased to ensure a DPUof at least 4,500 yen (Note 9).
Notes 8. 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 the endof the fiscal period ended January 31, 2017 (50 year × 2 fiscal periods = 100 periods). As of the date of this document, the RTA drawdown 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.
9. 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. Fiscal Period 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.
Total number of units issued and outstanding
Increase
Balance
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

Date

Remarks

February 3, 2014

February 26, 2014
September 23, 2016
October 19, 2016

Paid-in Capital (million yen)
Notes
Increase
Balance
11,967
114,5241
412
114,936
2
12,115127,0523
637
127,6904

1. 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 otherpurposes.
2. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 206,328 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 263,445 yen (paid-in amount: 255,068 yen) per unit to procure funds for new property acquisitions and for otherpurposes.
4. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at paid-in amount of 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.
FP
Period-end
High
Low

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

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

14th FP
July 2017
307,500 yen
261,600 yen

15th FP
January 2018285,800 yen
262,800 yen

16th FP
July 2018
291,500 yen
264,700 yen

Overview of the Investment Corporation
1 Major Unit-holders
The following are the major unit-holders as of July 31, 2018.
Name

Address

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

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

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

317,929

23.55

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

199,390

14.76

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

56,262

4.16

42,0893.11

34,8002.57

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

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

22,974

1.70

Mizuho Securities Co., Ltd.

1-5-1, Otemachi, Chiyoda-ku, Tokyo
1776 Heritage Drive, North Quincy,
MA 02171 U.S.A
Office Tower Z, Harumi Island Triton
Square, 1-8-12 Harumi, Chuo-ku, Tokyo
25 Bank Street, Canary Wharf, London,
E14 5JP, United Kingdom

20,708

1.53

15,9441.18

14,1491.04

13,277

0.98

737,52254.63

State Street Bank West Clients Treaty
Trust & Custody Services Bank, Ltd.
(Money Trust Taxable Account)
JP Morgan Chase Bank
Total

Office Tower Z, Harumi Island Triton
Square, 1-8-12 Harumi, Chuo-ku, Tokyo
2-5-1 Kita-Aoyama, Minato-ku, Tokyo

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

2 Directors and Independent Auditor
1. The executive director, supervisory directors, and independent auditor as of July 31, 2018, are as follows.

Primary concurrent positions

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

Kenji Kousaka Note 1

President, AD Investment Management Co., Ltd.

–

Yoshiki Oshima

President, Akasaka Law Office L.P.C.

1,800

Yoshitsugu Oba

Audit & Supervisory Board Member,
Mitsubishi Motors Corporation

1,800

Title
Executive
Director
Supervisory
Director
Supervisory
Director
Independent
AuditorName

Deloitte Touche Tohmatsu LLC

Note 2

19,000 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 (2,500 thousand yen) for services other than those prescribed in Article 2, Paragraph 1 of the Certified
Public Accountants Act.

2. Policy for dismissal or refusal of reappointment of independent auditor
The Board of Directors of ADR shall consider the dismissal of independent auditors pursuant to the provisions of the Act on
Investment Trusts and Investment Corporations (Act No. 198 of 1951; as amended), and consider refusal of reappointment 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 July 31, 2018.
Delegation

Name

Asset management company

AD Investment Management Co., Ltd.

Asset custodian

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

Mizuho Trust & Banking Co., Ltd.

Management of special Accounts

Mizuho Trust & Banking Co., Ltd.

Accounting, taxation, institutional operations

Sumitomo Mitsui Trust Bank Limited

Administrative agent

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

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

Note As of April 1, 2018, The Bank of Tokyo-Mitsubishi UFJ, Ltd. changed its legal name to MUFG Bank, Ltd.

6

I. Fiscal Period Report
Real Estate Portfolio
Real Estate Portfolio
The following lists real estates held by ADR as of July 31, 2018.

Propertyno.

7

Name of real estate

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-2

RESIDIA Shimazuyama

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,344

3,310

1

97.2 89,224

0.6

197.3 90,582

0.6

P-3

RESIDIA Nakameguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,400

2,140

1

100.0 47,2560.3

1100.0 47,256

0.3

P-4

RESIDIA Setagaya-Tsurumaki

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,165

1,300

1

93.3 34,829

0.2

1100.0 37,015

0.2

P-7

RESIDIA Ikejiriohashi

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,151

1,460

1

97.8 37,074

0.2

1100.0 37,527

0.2

P-9

RESIDIA Kudanshita

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,015

2,670

1

98.7 72,455

0.5

198.8 74,853

0.5P-10 RESIDIA Hatagaya

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,060

1,240

1

94.7 32,090

0.2

194.7 30,825

0.2

P-13

RESIDIA Sakurajosui

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,056

1,300

1

92.7 33,2560.2

1100.0 33,743

0.2

P-14 RESIDIA Kita-Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,522

3,060

1

100.0 75,455

0.5

1100.0 75,458

0.5

P-15

RESIDIA Yoyoginomori

Shibuya-ku, Tokyo

Beneficiary interests
in trust

704

731

1

96.9 19,413

0.1

190.8 18,650

0.1

P-16 RESIDIA Shinjuku-East III

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

716

919

1

100.0 24,051

0.2

1100.0 25,441

0.2

P-19

Leopalace Udagawacho
MansionShibuya-ku, Tokyo

Beneficiary interests
in trust

560

742

1

100.0 17,944

0.1

1100.0 17,944

0.1

P-21

RESIDIA Shinjuku-East II

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,297

1,710

1

93.5 42,526

0.3

198.8 46,808

0.3

P-22 RESIDIA Shinjuku-East

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

922

1,180

1

100.0 30,753

0.2

198.0 31,786

0.2

P-23 RESIDIA Kanda-Iwamotocho

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,391

2,100

1

98.1 57,950

0.4

1100.0 58,394

0.4

P-24 RESIDIA Azabujuban II

Minato-ku, Tokyo

Beneficiary interests
in trust

885

1,080

1

95.0 27,040

0.2

195.0 28,895

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

572

710

1

83.9 18,472

0.1

192.3 18,634

0.1

P-26 RESIDIA Meguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

738

745

1

92.1 20,218

0.1

1

96.6 20,911

0.1

P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,515

2,180

1

94.3 54,271

0.3

191.7 54,672

0.3

P-30 Pianetta Shiodome

Minato-ku, Tokyo

Beneficiary interests
in trust

1,790

2,290

1

91.7 59,085

0.4

198.6 59,099

0.4

P-31

Setagaya-ku, Tokyo

Beneficiary interests
in trust

307

398

1

90.3 10,487

0.1

181.5 10,648

0.1

P-32 RESIDIA Yoyogi

Shibuya-ku, Tokyo

Beneficiary interests
in trust

307

408

1

82.0

9,423

0.1

1

92.7

9,262

0.1

P-33 RESIDIA Nishi-Shinjuku

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

343

448

1

91.3 11,2130.1

177.0 11,280

0.1

P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

Beneficiary interests
in trust

264

348

1

93.8

8,539

0.1

1

93.9

9,679

0.1

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

863

1,140

1

93.8 33,011

0.2

195.8 33,936

0.2

P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,213

2,880

1

98.7 73,920

0.5

198.7 76,083

0.5

RESIDIA Komazawadaigaku

Propertyno.

Name of real estate

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,089

1,470

1

95.2 42,010

0.3

197.6 42,980

0.3

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,908

2,430

1

98.3 68,992

0.4

196.7 69,933

0.4

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,139

1,370

1

92.7 33,659

0.2

193.7 35,924

0.2

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,236

1,650

1

95.1 41,4850.3

1100.0 42,144

0.3

P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,095

1,530

1

100.0 40,558

0.3

195.3 41,056

0.3

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

863

1,090

1

98.2 31,256

0.2

194.6 30,273

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

986

1,300

1

97.5 34,124

0.2

192.7 36,042

0.2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,023

1,280

1

97.1 35,229

0.2

194.0 34,132

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,137

2,810

1

97.0 76,652

0.5

1

96.1 76,798

0.5

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,451

4,070

1

98.5 106,394

0.7

193.9 105,369

0.7

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,097

1,470

1

94.7 40,479

0.3

196.9 41,249

0.3

P-50 RESIDIA Nishi-Azabu

Minato-ku, Tokyo

Beneficiary interests
in trust

6,544

8,060

1

98.8 214,622

1.3

195.3 212,751

1.3

P-51

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,973

2,250

1

94.6 58,181

0.4

192.8 55,756

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,321

3,090

1

100.0 77,642

0.5

194.9 78,758

0.5

3,611

4,680

1

95.1 117,811

0.7

191.4 121,067

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

14,899 18,700

1100.0 456,793

2.9

1100.0 455,415

2.8

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,513

3,540

1

97.4 89,490

0.6

197.4 86,536

0.5

P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,545

2,130

1

98.0 57,1390.4

194.5 57,175

0.4

P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,359

1,500

1

96.4 41,2020.3

1100.0 43,476

0.3

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,933

2,200

1

90.5 56,585

0.4

188.9 56,958

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

6,134

6,940

1

94.9 195,396

1.2

194.2 197,174

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,201

1,550

1

95.4 40,216

0.3

1100.0 41,032

0.3

P-64 RESIDIA Nakanobu

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,754

2,350

1

98.3 64,386

0.4

195.6 65,214

0.4

P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,541

1,850

1

100.0 49,276

0.3

1

95.1 49,307

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,671

1,950

1

98.0 52,080

0.3

197.9 50,344

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,084

1,470

1

100.0 39,565

0.2

196.4 40,045

0.2

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,214

1,500

1

97.7 39,432

0.2

196.9 39,821

0.2

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,704

2,210

1

90.4 58,496

0.4

195.6 58,040

0.4P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

869

1,030

1

100.0 29,213

0.2

190.5 28,747

0.2

P-72 RESIDIA Mejiro-Otomeyama

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

974

1,160

1

90.0 31,475

0.2

178.9 28,779

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,391

5,860

1

95.9 167,722

1.1

196.0 170,382

1.1

P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

876

984

1

100.0 28,3650.2

188.2 29,022

0.2

P-75 RESIDIA Yutenji

Meguro-ku, Tokyo

Beneficiary interests
in trust

5,035

6,140

1

95.6 153,634

1.0

195.7 153,314

0.9

8I. Fiscal Period Report

915th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(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

P-76

Park Tower Shibaura Bayward
Urban Wing

Minato-ku, Tokyo

Beneficiary interests
in trust

P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

848

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estateP-85 RESIDIA Komazawa

Setagaya-ku, Tokyo

P-86 RESIDIA Shibaura KAIGAN

8,887 11,400

196.1 317,994

2.0

198.7 322,467

2.0

1,050

1

100.0 29,534

0.2

192.2 29,486

0.2

1,366

1,660

1

96.2 44,494

0.3

196.2 45,704

0.3

Beneficiary interests
in trust

823

1,220

1

100.0 28,095

0.2

1100.0 28,095

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

2,317

3,100

1

97.4 83,274

0.5

192.6 84,718

0.5

P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,981

2,590

1

94.7 64,784

0.4

197.3 64,190

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,540

1,880

1

97.3 49,367

0.3

1100.0 50,995

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,317

4,550

1

97.3 116,585

0.7

196.8 119,558

0.7

P-90 RESIDIA Sasazuka II

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,690

4,700

1

99.0 119,3600.8

198.0 120,931

0.7P-91 RESIDIA Meguro III

Meguro-ku, Tokyo

Beneficiary interests
in trust

954

1,350

1

97.0 33,5280.2

1100.0 34,544

0.2

P-92 RESIDIA Jiyugaoka II

Setagaya-ku, Tokyo

Beneficiary interests
in trust

779

982

1

100.0 24,985

0.2

1100.0 27,321

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,227

1,710

1

96.8 43,1850.3

193.9 43,964

0.3

P-94 RESIDIA Omori II

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,599

2,180

1

96.1 55,650

0.3

196.1 58,347

0.4

P-95 RESIDIA Shirokane-Takanawa

Minato-ku, Tokyo

Beneficiary interests
in trust

1,467

2,010

1

100.0 50,393

0.3

1

93.1 52,357

0.3

P-96 RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

3,773

4,340

1

98.6 116,219

0.7

1

97.1 118,270

0.7

P-97 RESIDIA Nakameguro II

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,116

1,450

1

98.0 36,743

0.2

198.0 36,590

0.2

P-98 Artis Court Minamiaoyama

Minato-ku, Tokyo

Beneficiary interests
in trust

1,729

1,990

1

90.8 54,890

0.3

195.5 51,181

0.3

P-99 RESIDIA Yotsuya Sanchome

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,081

2,770

1

96.3 83,9780.5

195.6 81,487

0.5P-100 RESIDIA Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

943

1,110

1

100.0 28,552

0.2

195.8 29,722

0.2

P-101 RESIDIA Ebisu III

Shibuya-ku, Tokyo

Real estate

649

765

1

95.9 18,722

0.1

1100.0 20,352

0.1

P-102 RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

722

939

1

100.0 24,639

0.2

1100.0 24,653

0.2

P-103 RESIDIA Minami Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,199

1,450

1

100.0 39,1420.2

195.2 36,370

0.2

P-104 Chester Court Ochanomizu

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,170

3,800

1

99.3 108,096

0.7

198.5 107,479

0.7P-105 RESIDIA Kanda-Iwamotocho II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,299

1,630

1

97.7 43,1100.3

1100.0 44,065

0.3

P-106 RESIDIA Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

996

1,270

1

100.0 30,816

0.2

193.0 33,181

0.2

P-107 RESIDIA Yoyogi II

Shibuya-ku, Tokyo

Real estate

896

962

1

96.5 24,856

0.2

194.3 25,019

0.2

P-108 RESIDIA Nakanobu II

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

940

1,040

1

95.7 26,051

0.2

1100.0 27,949

0.2

P-109 RESIDIA Ochanomizu II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

843

971

1

100.0 24,695

0.2

191.9 24,542

0.2

P-110 RESIDIA Mishuku

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,189

1,310

1

100.0 33,023

0.2

195.8 32,921

0.2

Propertyno.

Name of real estate

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

C-1

RESIDIA Mitsukoshimae

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,551

2,610

1

96.9 68,570

0.4

199.2 68,056

0.4

C-2

RESIDIA Kamata

Ota-ku, Tokyo

Beneficiary interests
in trust

2,083

3,580

1

98.7 98,118

0.6

197.5 101,841

0.6

C-3

RESIDIA Ikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,385

1,800

1

96.8 51,922

0.3

195.2 49,521

0.3

C-4

RESIDIA Bunkyo-Hongo

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,548

2,290

1

100.0 59,094

0.4

198.6 58,535

0.4

C-5

RESIDIA Asakusabashi

Taito-ku, Tokyo

Beneficiary interests
in trust

926

1,470

1

97.0 40,693

0.3

197.8 40,172

0.2

C-6

Maison Eclairee Ekoda

Nerima-ku, Tokyo

Beneficiary interests
in trust

904

1,120

1

97.9 35,490

0.2

195.8 36,234

0.2

C-7

RESIDIA Ueno-Okachimachi

Taito-ku, Tokyo

Beneficiary interests
in trust

2,835

3,740

1

98.5 99,965

0.6

197.5 102,604

0.6

C-8

RESIDIA Bunkyo-Hongo II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,528

1,990

1

100.0 52,4800.3

193.4 50,387

0.3

C-9

RESIDIA Ryogoku

Sumida-ku, Tokyo

Beneficiary interests
in trust

842

1,240

1

100.0 33,2270.2

198.5 33,425

0.2

C-10 RESIDIA Higashi-Ginza

Chuo-ku, Tokyo

Beneficiary interests
in trust

5,014

5,740

1

98.9 149,284

0.9

192.6 150,432

0.9

C-12

RESIDIA Nihonbashi-NingyochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,940

3,880

1

98.9 99,536

0.6

1100.0 100,994

0.6

C-13

RESIDIA Omori-Higashi

Ota-ku, Tokyo

Beneficiary interests
in trust

1,822

2,070

1

97.9 57,350

0.4

198.9 57,179

0.4

C-15

RESIDIA Kinshicho

Sumida-ku, Tokyo

Beneficiary interests
in trust

3,986

4,560

1

97.2 120,937

0.8

1

98.1 122,767

0.8

C-16 RESIDIA Negishi

Taito-ku, Tokyo

Beneficiary interests
in trust

807

961

1

96.5 27,596

0.2

1100.0 29,375

0.2

C-17

RESIDIA Shinkawa

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,803

2,430

1

98.4 65,1320.4

193.7 65,908

0.4

C-18 RESIDIA Kamiikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

537

710

1

95.0 21,388

0.1

197.9 22,069

0.1

C-19 RESIDIA Shin-nakano

Nakano-ku, Tokyo

Beneficiary interests
in trust

350

511

1

90.3 14,2170.1

1100.0 15,055

0.1

C-21

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

916

1,220

1

100.0 33,998

0.2

193.2 34,956

0.2

Chuo-ku, Tokyo

Real estate

1,314

1,910

1

100.0 52,248

0.3

196.1 52,826

0.3

Beneficiary interests
in trust

1,791

2,190

1

93.5 61,466

0.4

193.4 63,316

0.4

RESIDIA Bunkyo-Yushima II

C-22 RESIDIA Tsukiji
C-23 RESIDIA Sasazuka

Suginami-ku, Tokyo

C-24 RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,112

1,520

1

100.0 51,1840.3

1100.0 38,847

0.2

C-25 RESIDIA Tamagawa

Ota-ku, Tokyo

Beneficiary interests
in trust

1,166

1,690

1

93.4 46,328

0.3

1100.0 47,709

0.3

C-26 RESIDIA Korakuen

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

544

788

1

97.2 21,460

0.1

190.5 21,854

0.1

C-27 RESIDIA Ginza-Higashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,823

2,590

1

96.5 67,1860.4

195.5 69,407

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

785

1,060

1

100.0 33,7110.2

1100.0 33,710

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

971

1,260

1

98.3 37,020

0.2

193.0 36,441

0.2

C-31

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,011

1,300

1

97.7 37,1000.2

197.7 37,186

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,267

1,680

1

93.0 47,378

0.3

197.4 46,867

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,284

3,010

1

100.0 82,364

0.5

196.2 81,674

0.5

10

I. Fiscal Period Report

Propertyno.

Name of real estate

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,226

2,700

1

99.3 74,800

0.5

198.6 76,087

0.5

C-35 RESIDIA Bunkyo-Otowa

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

3,114

4,070

1

96.3 111,998

0.7

199.0 120,005

0.7C-36 RESIDIA Bunkyo-Sengoku

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

665

911

1

90.9 24,881

0.2

197.2 26,742

0.2

C-37 RESIDIA Bunkyo-Yushima

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

997

1,370

1

95.3 36,306

0.2

1

94.1 38,462

0.2

C-38 RESIDIA Ikegami

Ota-ku, Tokyo

Beneficiary interests
in trust

342

417

1

93.9 13,016

0.1

1100.0 14,161

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

497

774

1

92.9 21,667

0.1

191.5 21,948

0.1

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,341

1,720

1

97.9 45,796

0.3

192.5 46,603

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

870

1,160

1

98.3 37,844

0.2

197.7 36,403

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,244

1,580

1

100.0 43,940

0.3

197.9 42,853

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,750

2,110

1

98.7 58,639

0.4

1100.0 58,998

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,200

1,430

1

96.6 43,054

0.3

188.6 42,032

0.3

C-45 RESIDIA Shinkawa II

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,257

1,620

1

98.5 44,168

0.3

190.5 43,096

0.3

C-46 RESIDIA Mejiro

Toshima-ku, Tokyo

Beneficiary interests
in trust

6,078

8,080

1

98.6 231,483

1.5

198.5 232,834

1.4

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

658

834

1

100.0 26,659

0.2

196.7 27,602

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

Real estate

5,072

7,090

1

97.4 192,783

1.2

197.0 192,040

1.2

C-49 RESIDIA Suginami-Honancho

Suginami-ku, Tokyo

Beneficiary interests
in trust

3,597

5,440

1

96.6 149,192

0.9

196.0 148,250

0.9

C-50 RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

Beneficiary interests
in trust

843

1,250

1

100.0 29,739

0.2

1100.0 29,739

0.2

C-51

Koto-ku, Tokyo

Beneficiary interests
in trust

1,878

2,990

1

94.2 77,956

0.5

196.8 82,674

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,085

1,560

1

100.0 38,619

0.2

1100.0 39,617

0.2

RESIDIA BunkyoHonkomagome

Bunkyo-ku, Tokyo

Real estate

2,269

3,050

1

98.2 82,197

0.5

199.3 83,519

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,455

3,680

1

98.7 91,969

0.6

196.1 93,503

0.6

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

Beneficiary interests
in trust

2,394

3,560

1

97.3 163,180

1.0

195.3 164,429

1.0

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

Real estate

1,800

2,320

1

95.2 60,700

0.4

198.7 63,374

0.4

C-57 RESIDIA Monzennakacho

Koto-ku, Tokyo

Beneficiary interests
in trust

960

1,350

1

95.6 35,756

0.2

195.6 37,405

0.2

C-58 RESIDIA Ochanomizu

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,027

2,920

1

97.9 77,338

0.5

196.4 77,232

0.5

C-59 RESIDIA Omori

Ota-ku, Tokyo

Beneficiary interests
in trust

1,117

1,500

1

100.0 42,5410.3

1100.0 42,810

0.3C-60 RESIDIA Nakamurabashi

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,032

1,370

1

94.6 37,619

0.2

194.6 39,142

0.2

C-61 RESIDIA Kachidoki

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,746

2,470

1

100.0 64,452

0.4

198.3 66,242

0.4

C-62 RESIDIA Bunkyo-Otowa II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,270

3,050

1

97.8 81,007

0.5

193.5 82,530

0.5

RESIDIA Kiba

C-52 RESIDIA Bunkyo-Yushima III
C-53

11

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(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

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

C-63 RESIDIA Kinshicho III

Koto-ku, Tokyo

Beneficiary interests
in trust

646

850

1

100.0 25,4140.2

1100.0 25,426

0.2

C-64 RESIDIA Kamata III

Ota-ku, Tokyo

Beneficiary interests
in trust

929

1,250

1

90.9 33,589

0.2

194.2 33,825

0.2

7,840 11,600

198.1 728,073

4.6

1

97.7 735,352

4.6

C-65 RESIDIA TOWER Kamiikebukuro Toshima-ku, Tokyo

Beneficiary interests
in trust

C-66 RESIDIA Takashimadaira

Itabashi-ku, Tokyo

Real estate

521

614

1

100.0 16,1950.1

1100.0 16,193

0.1

C-67 RESIDIA Shimura-Sakaue

Itabashi-ku, Tokyo

Real estate

605

706

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

1,126

1,370

1

100.0 35,3810.2

1100.0 35,372

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

430

500

1

100.0 13,617

0.1

1100.0 13,608

0.1

C-70 RESIDIA Ikebukuro West

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,111

1,360

1

94.6 41,880

0.3

197.6 44,800

0.3

C-71

Koto-ku, Tokyo

Beneficiary interests
in trust

1,273

1,590

1

96.7 43,229

0.3

197.8 44,539

0.3

C-72 RESIDIA Machiya

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,182

1,380

1

92.0 41,6980.3

196.0 43,005

0.3

C-73 RESIDIA Ueno-Ikenohata

Taito-ku, Tokyo

Beneficiary interests
in trust

1,774

2,070

1

98.8 55,838

0.4

197.5 54,820

0.3

C-74 RESIDIA Nerima

Nerima-ku, Tokyo

Beneficiary interests
in trust

513

658

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

397

491

1

100.0 14,596

0.1

196.3 14,616

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

689

822

1

100.0 22,1310.1

190.1 21,019

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, Tokyo

Real estate

488

563

1

100.0 13,620

0.1

1100.0 13,620

0.1

C-78 RESIDIA Minamiyukigaya

Ota-ku, Tokyo

Beneficiary interests
in trust

1,353

1,550

1

91.8 42,335

0.3

195.3 41,999

0.3

C-79 RESIDIA Akihabara

Taito-ku, Tokyo

Beneficiary interests
in trust

993

1,220

1

97.6 34,202

0.2

197.5 33,731

0.2

C-80 RESIDIA Asakusa-Azumabashi

Sumida-ku, Tokyo

Beneficiary interests
in trust

890

1,150

1

96.7 33,0760.2

195.0 32,946

0.2

C-81 RESIDIA Omori III

Ota-ku, Tokyo

Beneficiary interests
in trust

1,417

1,680

1

95.8 40,823

0.3

198.7 43,255

0.3

RESIDIA Ojima

C-82

RESIDIA Nihonbashi-BakurochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,012

2,480

1

96.9 60,338

0.4

1100.0 64,271

0.4

C-83

RESIDIA Nihonbashi-BakurochoIII

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,862

2,310

1

100.0 60,940

0.4

190.7 62,406

0.4

C-84 RESIDIA Bunkyo-Hongo III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,692

1,920

1

93.5 47,936

0.3

1100.0 47,807

0.3

C-85 RESIDIA Shin-Okachimachi II

Taito-ku, Tokyo

Beneficiary interests
in trust

4,764

5,440

1

97.7 140,079

0.9

196.9 139,280

0.9

C-86 RESIDIA Kameido

Koto-ku, Tokyo

Beneficiary interests
in trust

3,076

3,360

1

97.8 85,048

0.5

197.0 87,801

0.5C-87 RESIDIA Koenji

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,423

1,570

1

97.6 40,775

0.3

198.2 40,295

0.2

C-88 RESIDIA Kamata V

Ota-ku, Tokyo

Real estate

2,367

2,500

–

–

–

–

1

96.6 47,825

0.3

C-89 RESIDIA Kamata IV

Ota-ku, Tokyo

Real estate

3,388

3,550

–

–

–

–

1

97.6 68,611

0.4

S-2

Chester House Kawaguchi

Kawaguchi-shi,
Saitama

Beneficiary interests
in trust

698

746

1

92.3 27,703

0.2

197.4 29,666

0.2

S-4

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

1,011

1,200

1

95.9 43,2640.3

195.4 42,151

0.3

12

I. Fiscal Period Report

Propertyno.

Name of real estate

S-5

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,755

2,030

1

100.0 61,4700.4

1100.0 61,479

0.4

S-7

RESIDIA Chofu

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,063

1,180

1

98.1 34,459

0.2

197.5 34,235

0.2

S-11

Tokyo Student-House WAKO

Wako-shi, Saitama

Beneficiary interests
in trust

664

717

1

100.0 26,182

0.2

1100.0 26,186

0.2

S-12

RESIDIA Kokubunji

Kokubunji-shi, Tokyo

Beneficiary interests
in trust

497

656

1

100.0 18,4700.1

1100.0 19,692

0.1

S-14

RESIDIA Yokohama-Kannai

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,507

1,890

1

95.1 54,997

0.3

1

99.1 55,223

0.3

S-15

RESIDIA Okurayama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

706

932

1

100.0 26,865

0.2

1100.0 26,719

0.2

S-16 RESIDIA Musashikosugi

Kawasaki-shi,
Kanagawa

Real estate

1,480

1,940

1

98.8 57,099

0.4

191.8 55,694

0.3

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,520

3,220

1

100.0 93,383

0.6

1100.0 93,301

0.6

Musashino-shi,Tokyo

Beneficiary interests
in trust

1,428

1,750

1

95.9 47,2700.3

198.0 49,103

0.3

Pacific Royal Court
Minatomirai Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

11,547 15,500

1100.0 568,349

3.6

1100.0 572,115

3.5

S-22 Life & Senior House Kohoku II

Yokohama-shi,
Kanagawa

Real estate

1,574

2,200

1

100.0 71,0740.4

1100.0 71,069

0.4

S-23 College Court Tanashi

Nishi-Tokyo-shi,Tokyo

Beneficiary interests
in trust

758

1,130

1

100.0 32,7600.2

1100.0 32,760

0.2

S-24 RESIDIA Urayasu

Urayasu-shi, Chiba

Beneficiary interests
in trust

2,057

2,950

1

99.4 83,453

0.5

197.2 87,824

0.5

S-25 RESIDIA Minami-Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

812

1,070

1

100.0 33,565

0.2

1

94.1 34,306

0.2

S-26 RESIDIA Urayasu II

Urayasu-shi, Chiba

Beneficiary interests
in trust

792

1,040

1

98.6 31,765

0.2

198.6 32,454

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

750

972

1

96.0 33,1460.2

1100.0 34,163

0.2

S-28 RESIDIA Kawasaki

Kawasaki-shi,
Kanagawa

Beneficiary interests
in trust

1,608

2,210

1

92.3 61,700

0.4

195.7 63,122

0.4

S-29 Cocofump Hiyoshi

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

991

1,170

1

100.0 45,0000.3

1100.0 45,000

0.3

S-30 RESIDIA Sagamihara

Sagamihara-shi,
Kanagawa

Beneficiary interests
in trust

1,053

1,300

1

100.0 43,3520.3

1100.0 43,232

0.3

S-31

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

776

1,160

1

100.0 37,707

0.2

1100.0 37,282

0.2

S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

13

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Yokohama-Bashamichi

S-32 RESIDIA Hon-Atsugi

Atsugi-shi,
Kanagawa

Real estate

638

709

1

94.3 23,498

0.1

1

98.1 25,034

0.2

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

665

705

1

100.0 20,1270.1

1100.0 20,127

0.1

S-34 RESIDIA Funabashi IV

Funabashi-shi, Chiba

Beneficiary interests
in trust

611

593

–

–

–

1

93.0

9,094

0.1

R-2

RESIDIA Imadegawa

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,464

1,660

1

100.0 60,750

0.4

1100.0 54,491

0.3

R-4

RESIDIA Higashizakura

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,014

1,410

1

93.5 45,1790.3

189.7 46,172

0.3

R-5

RESIDIA Kameyama

Kameyama-shi, Mie

Beneficiary interests
in trust

1,513

1,150

1

100.0 60,377

0.4

198.3 59,676

0.4–

Propertyno.

Name of real estate

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

R-6

RESIDIA Ryokuchikoen

Toyonaka-shi, Osaka

Beneficiary interests
in trust

881

922

1

94.9 30,5120.2

198.3 31,137

0.2

R-8

RESIDIA Kobe Port Island

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,394

4,150

1

100.0 125,5100.8

1100.0 125,425

0.8Real estate

1,236

1,470

1

98.8 51,529

0.3

197.5 52,101

0.3

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

R-11

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

837

1,160

1

97.6 36,277

0.2

196.0 35,857

0.2

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,932

2,870

1

97.5 88,799

0.6

196.0 90,148

0.6

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

862

924

1

96.4 37,286

0.2

194.5 37,323

0.2

R-14 RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

1,037

1,530

1

87.0 45,372

0.3

198.8 47,586

0.3

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,765

2,490

1

98.1 77,1050.5

198.2 78,210

0.5

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,130

3,250

1

92.5 96,123

0.6

194.7 97,146

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,126

1,450

1

98.4 65,729

0.4

1

99.1 67,547

0.4

R-19 RESIDIA Tenjin-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

823

1,180

1

94.6 39,415

0.2

198.2 39,737

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

315

401

1

97.5 15,760

0.1

197.4 16,027

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

598

803

1

100.0 27,699

0.2

190.4 26,333

0.2

R-24 RESIDIA Minami-Ichijo

Sapporo-shi,
Hokkaido

Real estate

1,447

1,950

1

98.9 75,791

0.5

1

94.3 75,041

0.5

R-25 RESIDIA Odori-Nishi

Sapporo-shi,
Hokkaido

Real estate

1,190

1,390

1

95.0 55,3330.3

197.8 58,487

0.4

R-26 RESIDIA Kita-Sanjo

Sapporo-shi,
Hokkaido

Real estate

989

1,410

1

99.3 50,270

0.3

195.4 49,170

0.3

R-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

748

925

1

100.0 32,4360.2

191.4 32,441

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

641

769

1

100.0 33,792

0.2

189.8 33,960

0.2

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,296

4,300

1

92.0 137,437

0.9

198.4 144,842

0.9

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

943

1,210

1

98.4 45,311

0.3

190.2 44,894

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

713

871

1

95.9 29,020

0.2

1100.0 29,700

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,823

2,500

1

95.5 93,643

0.6

198.5 95,524

0.6

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,085

1,620

1

94.9 46,695

0.3

194.7 46,360

0.3

R-36 RESIDIA Hisaya-Oodori

Nagoya-shi, Aichi

Beneficiary interests
in trust

631

950

1

97.1 29,625

0.2

189.2 28,698

0.2

R-37 RESIDIA Sendai-Miyamachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

501

753

1

100.0 24,023

0.2

1100.0 26,178

0.2

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

470

682

1

100.0 21,8420.1

1100.0 21,839

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,387

1,850

1

95.3 57,792

0.4

1100.0 57,885

0.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

996

1,360

1

96.8 42,452

0.3

197.8 43,044

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

1,011

1,270

1

91.8 37,413

0.2

1100.0 39,456

0.2

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,246

3,120

1

96.2 105,604

0.7

199.2 106,974

0.7

14

I. Fiscal Period Report

Property
no.

15

Name of real estate

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2R-43 RESIDIA Tsurumai

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,146

1,670

1

93.8 51,863

0.3

197.7 57,750

0.4

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,594

3,730

1

95.3 112,300

0.7

193.3 111,906

0.7

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

858

1,090

1

96.7 42,061

0.3

198.3 41,829

0.3

R-46 RESIDIA Shinsaibashi West

Osaka-shi, Osaka

Beneficiary interests
in trust

1,876

2,470

1

96.6 72,1180.5

194.8 74,420

0.5

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

944

1,210

1

93.2 39,342

0.2

194.5 40,308

0.2

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,426

2,150

1

97.9 75,597

0.5

197.4 74,782

0.5

R-49 RESIDIA Gosho-Higashi

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,198

1,580

1

95.7 45,090

0.3

1100.0 48,640

0.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

855

1,030

1

97.5 34,082

0.2

198.8 35,385

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,224

4,860

1

98.2 155,748

1.0

197.8 154,085

1.0

R-52 RESIDIA TOWER Sendai

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,728

1,980

1

91.7 68,600

0.4

192.2 70,631

0.4

R-53 RESIDIA Higashizakura II

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,821

3,530

1

84.6 108,905

0.7

187.0 111,568

0.7

R-54 RESIDIA Tsutsujigaoka

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,750

2,390

1

96.0 83,153

0.5

198.4 84,295

0.5

R-55 RESIDIA Kobe-Motomachi

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,036

1,320

1

98.1 44,070

0.3

193.0 43,701

0.3

R-56 RESIDIA Sendai-Honcho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,096

1,610

1

98.3 53,781

0.3

195.4 53,736

0.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

576

862

1

93.6 30,037

0.2

195.3 30,556

0.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,044

1,360

1

100.0 48,3400.3

194.8 47,517

0.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,755

3,650

1

100.0 90,409

0.6

198.6 105,281

0.7

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

838

1,030

1

100.0 35,1660.2

1100.0 35,121

0.2

R-61 RESIDIA Kyoto Okazaki

Kyoto-shi, Kyoto

Beneficiary interests
in trust

234

315

1

100.0

9,781

0.1

1

100.0

9,656

0.1

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,091

1,440

1

100.0 43,992

0.3

1100.0 43,696

0.3

R-63 RESIDIA Kita-Nijyo-East II

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

545

754

1

93.2 25,939

0.2

196.2 26,820

0.2

R-64 RESIDIA Takamiya

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

496

586

1

98.4 20,242

0.1

1

98.4 19,882

0.1

R-65 RESIDIA Soen

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

390

556

1

98.4 21,752

0.1

198.3 21,003

0.1

R-66 RESIDIA Tenjin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,135

1,320

1

100.0 43,573

0.3

190.9 41,037

0.3

R-67 RESIDIA Yakuin-Oodori

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,135

1,340

1

98.9 44,295

0.3

194.5 42,452

0.3

R-68 RESIDIA Hakata II

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,370

1,610

1

94.2 51,471

0.3

198.1 50,179

0.3

R-69 RESIDIA Kego

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

845

1,130

1

98.9 35,602

0.2

195.3 36,904

0.2

Propertyno.

Name of real estate

Location

15th (Aug. 1, 2017 ~ Jan. 1, 2018)
16th (Feb. 1, 2018 ~ Jul. 31, 2018)
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
ownership
periodperiod(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

947

1,110

1

89.0 34,026

0.2

1

97.1 34,564

0.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

937

960

1

89.6 28,026

0.2

193.5 29,132

0.2

R-72 RESIDIA Senri-Fujishirodai

Suita-shi, Osaka

Beneficiary interests
in trust

1,538

1,660

1

100.0 45,1300.3

1100.0 45,973

0.3

R-73 RESIDIA Senri-Banpakukoen

Suita-shi, Osaka

Beneficiary interests
in trust

2,252

2,320

1

100.0 64,549

0.4

1100.0 64,519

0.4

R-74 RESIDIA Sapporo-eki North

Sapporo, Hokkaido

Real estate

748

706

1

76.4

1,946

0.0

1

95.9 22,058

0.1

R-75 RESIDIA Hijiyama-Koen

Hiroshima-shi,
Hiroshima

Beneficiary interests
in trust

698

707

–

–

–

–

1

97.7

1,925

0.0

426,261 548,888

259

97.2 15,836,647

100.0

263

96.9 16,144,976

100.0

Total
Notes 1

“Appraisal value at end of period” is the appraisal value or survey-based value, pursuant to ADR’s Articles of Incorporation and the “Regulations Concerning Accounting ofInvestment Corporations” issued by the Cabinet Office, provided by a real estate appraiser as of July 31, 2018.
2. “Total number of tenants,” is counted as “1” if the property is leased under a master lease agreement to a master lessee. Because all properties held by ADR as of July 31, 2018
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 12 master lessees.
3. “Occupancy rate” is calculated using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Rental revenue” is the rental revenue of respective real estate for the fiscal period under review.

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

Payment for
Cumulative
the current
amount paid
periodPurposeEstimated duration

RESIDIA Kudanshita(Chiyoda-ku, Tokyo)

Major repair work

From: Jan. 2018
To: Dec. 2018

60

1

1

RESIDIA Shinjuku-East II(Shinjuku-ku, Tokyo)

Major repair work

From: Mar. 2018
To: Dec. 2018

89

–

–

RESIDIA TOWER Nogizaka(Minato-ku, Tokyo)

Major repair work

From: Oct. 2017
To: Dec. 2018

129

44

44

RESIDIA Ichigaya(Shinjuku-ku, Tokyo)

Major repair work

From: Mar. 2018
To: Jan. 2019

96

–

–

RESIDIA Higashizakura II(Nagoya-shi, Aichi)

Major repair work

From: Jan. 2018
To: Jan. 2019

136

2

2

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 749 million yen for the entire portfolio and, when combined with repairs andmaintenance cost of 567 million yen, the cost of construction work totals 1,317 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

RESIDIA Nishi-Azabu(Minato-ku, Tokyo)

Major repair work

From: Nov. 2017
To: May 2018

184

RESIDIA Arakawa II(Chuo -ku, Tokyo)

Major repair work

From: Mar. 2018
To: Jul. 2018

68

RESIDIA Mejiro-Otomeyama(Shinjuku-ku, Tokyo)

Major repair work

From: Mar. 2018
To: Jun. 201862

Other real estate

Renovations
Total

434
749

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.

173 Cash Reserves for Value Enhancement Works and Renovations
Based on medium- to long-term renovation plans for each property, ADR sets aside the following cash reserves, derived
mostly from cash flows of depreciation and amortization (including earnings that are retained), to fund large-scale repair
work and value enhancement works.
(million yen)FP

12th FP

13th FP

14th FP

15th FP

16th FP

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

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

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

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

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

Balance of reserves at
beginning of period

1,658

1,970

2,144

2,040

1,921

Amount of reserves
during period

605

625

696

738

814

Reversal of reserves
during period

292

451

801

857

744

1,970

2,144

2,040

1,921

1,990

Amount carried forward
to next period

Acquisitions and Disposals in the 16th FP
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)

C-88

RESIDIA Kamata V

Mar. 20, 2018

2,283

–

–

–

–

C-89

RESIDIA Kamata IV

Mar. 20, 2018

3,268

–

–

–

–

S-34

RESIDIA Funabashi IV

Apr. 27, 2018

567

–

–

–

–

R-75

RESIDIA Hijiyama-Koen

Jul. 18, 2018

663

–

–

–

–

P-58

RESIDIA Minami-Aoyama––Mar. 13, 2018

710

697

6

P-81

Windsor House Hiroo––

Apr. 6, 2018

1,863

1,630

128

–

2,573

2,327

134

Total

6,781

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.

18

I. Fiscal Period Report
2 Transactions with Interested Parties
1) Transactions
The following are the transactions with interested parties for specified assets in the 16th fiscal period.
Purchase/Sales amountClassification

Purchase amount

Sales amount

6,781,500 thousand yen

2,573,000 thousand yen

ITOCHU Corporation

4,181,200 thousand yen (61.7%)- thousand yen / -%ITOCHU Property Development, Ltd.

1,369,800 thousand yen (20.2%)- thousand yen / -%Total amount
Breakdown of transaction with interested parties

2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 16th FP.

Classification

Property management fees

Total amount ofcommission fees(A)(thousand yen)

Breakdown of transaction with interested parties
Payee

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

1,394,231

ITOCHU Urban Community Ltd.

873,278

62.6

Other rental expenses

109,331

ITOCHU Urban Community Ltd.

69,707

63.8

Advertising expenses

3,279

ITOCHU Urban Community Ltd.

2,079

63.4

ITOCHU Urban Community Ltd.

19,785

14.6

95

0.1

Other fees

135,742

ITOCHU Human Resources & General
Affairs Services Inc.

Notes 1. Transactions are not listed here if the nominal counter party is an interested party but the actual counter party is clearly a third party.
2. ITOCHU Corporation, ITOCHU Property Development, Ltd., ITOCHU Urban Community Ltd., and ITOCHU Human Resources & General Affairs Services Inc. are interested partiesof the asset management company that have signed an asset management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts andInvestment Corporations and Article 123 of the Enforcement Order thereof, with which ADR engaged in transactions in the 16th FP.

19

20

II. Financial Statements
Balance Sheets(Thousands of yen)
As of January 31, 2018

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 and 24)
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets (Note 24)
Leasehold rights (Note 19)
Leasehold rights in trust (Note 19)
Other
Total intangible assets

21

As of July 31, 201812,218,821
9,693,200
198,466
347,796
4,874(7,274)22,455,884

13,741,901
9,605,383
209,929483,704
10,412(7,225)24,044,107

75,173,544(12,342,251)
62,831,292
23,585(6,968)
16,616
67,662(16,509)
51,153
268,535(133,528)
135,00770,754,369
47,779153,340,662(23,755,307)
129,585,355
190,982(98,473)
92,509175,646(99,261)
76,384
783,450(482,282)
301,167
156,457,632
40,254420,389,522

75,980,399(12,997,222)
62,983,176
23,395(7,132)
16,26382,361(19,859)
62,502289,909(141,887)
148,02174,403,244
44,670154,333,071(25,491,760)
128,841,311
193,591(103,080)
90,510182,121(105,796)
76,325
832,133(518,517)
313,615
157,302,505
6,503
424,288,650

1,071,902
2,009,390
54
3,081,347–
1,974,953
34
1,974,988

(Thousands of yen)
As of January 31, 2018
Investments and other assets
Long-term prepaid expenses
Guarantee deposits
Guarantee deposits in trust
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable (Notes 10 and 27)
Current portion of investment corporation bonds (Notes
10 and 26)
Current portion of long-term loans payable (Notes 10,
12, 23 and 27)
Accounts payable – other (Note 14)
Accrued expenses
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 10, 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
Derivatives liabilities (Notes 10, 12 and 23)
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity (Note 6)
Paid-in capital
SurplusCapital surplus
Voluntary retained earnings
Reserve for temporary difference adjustment
Total voluntary retained earnings
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets (Notes 4 and 20)
Total liabilities and net assets

As of July 31, 2018

810,490535,726
1,026,585
1,680
2,374,482
425,845,352

826,885
550,532
1,038,903
1,680
2,418,000
428,681,640

4,396
116,148
120,545448,421,782

3,008
117,266
120,274
452,846,022

344,006–

337,326
1,000,000

2,000,000

2,000,000

28,950,000

21,460,000

1,393,127
116,393
33,86657,265
19,43732,914,096

1,386,590
87,85947,401
66,474
18,981
26,404,633

25,500,000
164,968,000
1,217,462
3,247,646–
194,933,108
227,847,204

27,000,000
174,458,000
1,227,275
3,228,688
3,423
205,917,387
232,322,020

127,690,098

127,690,098

53,220,279

53,220,279

32,866,055
32,866,055
6,798,144
92,884,479
220,574,577

32,529,450
32,529,450
7,087,597
92,837,327
220,527,425––
220,574,577
448,421,782(3,423)(3,423)
220,524,002
452,846,022

22

II. Financial Statements
Statements of Income

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

23(Thousands of yen)
For the six months ended
January 31, 2018

For the six months ended
July 31, 2018

15,903,228–
15,903,228

16,167,076
135,079
16,302,155

6,176,934
1, 175,182
9, 72961,0153, 609267,061
2,080
103
187,910
7,883,626
8,019,602

6,345,214
1,181,791
9,762
58,712
3,600
258,130170–
172,6818,030,063
8,272,092

6,501
–
1,024
690
8,217

6,537
18,0001,463
2,172
28,173885,651
137,494
1,388

854,191
131,529
1,388

10,83910,748

193,302393
1,229,069
6,798,749
6,798,749
605
605
6,798,144
6,798,144

210,950
3,254
1,212,063
7,088,202
7,088,202
605
605
7,087,597
7,087,597

Statements of Changes in Net Assets
For the six months ended January 31, 2018

(Thousands of yen)
Unitholders’ equity
Surplus
Total net
assetsTotal surplus

Totalunitholders’equityVoluntary retained earnings
Paid-in capital

Balance at the
beginning of period

Capital surplus

127,690,098

Reserve fortemporarydifference
adjustments

53,220,279

UnappropriatedTotal voluntary retained earnings
retained(undisposed loss)
earnings

33,202,036

33,202,036

6,642,169

93,064,485

220,754,583

220,754,583(335,980)(335,980)

335,980–––

Dividends fromsurplus(6,978,150)(6,978,150)(6,978,150)(6,978,150)

Net income

6,798,144

6,798,144

6,798,144

6,798,144

Changes in items
during the period
Reversal of reserve
for temporary
difference
adjustments

Total changes in items
during the period––(335,980)(335,980)

155,974(180,005)(180,005)(180,005)

Balance at the end of
period127,690,098

53,220,279

32,866,055

32,866,055

6,798,144

92,884,479

220,574,577

220,574,577

For the six months ended July 31, 2018

(Thousands of yen)
Valuation and translation
adjustments

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

Capitalsurplus

Balance at the
beginning of period 127,690,098 53,220,279 32,866,055 32,866,055

6,798,144 92,884,479 220,574,577

Total
Deferredgain or loss valuation andon hedging translation
instruments adjustments–

Total net
assets– 220,574,577

Changes in items
during the period
Reversal of reserve
for temporary
difference
adjustments(336,605)(336,605)

336,605–––

Dividends fromsurplus(7,134,750) (7,134,750) (7,134,750)(7,134,750)

Net income

7,087,597

7,087,597

7,087,597

7,087,597

Net changes in
items other thanunitholders’ equity
in the fiscal year
Total changes in
items during theperiodBalance at the endof period––(336,605)(336,605)

127,690,098 53,220,279 32,529,450 32,529,450(3,423)(3,423)(3,423)(47,152)(3,423)(3,423)(50,575)

7,087,597 92,837,327 220,527,425(3,423)(3,423) 220,524,002

289,453(47,152)24

II. Financial Statements
Statements of Cash Distributions(Thousands of yen)
For the six months ended
January 31, 2018

I. Unappropriated retained earnings
II. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments
III. Dividends(Dividend per investment unit)

IV. Retained earnings carried forward
Dividend Policy

25

For the six months ended
July 31, 2018

6, 798,144,365 yen

7,087,597,394 yen

336,605,635 yen

336,052,606 yen

7,134,750,000 yen(5, 285 yen)

7,423,650,000 yen(5,499 yen)––In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserve for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has decided
to distribute 7,134,750,000 yen,which is the sum of the reversal of
the reserve for temporary difference
adjustments (RTA) of 336,605,635 yen
and unappropriated retained earningsof 6,798,144,365 yen for the fiscal
period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserve for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has decided
to distribute 7,423,650,000 yen,which is the sum of the reversal of
the reserve for temporary difference
adjustments (RTA) of 336,052,606 yen
and unappropriated retained earningsof 7,087,597,394 yen for the fiscal
period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

Statements of Cash Flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance costs
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
Decrease in sales of intangible assets
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expense paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits, net
Proceeds from tenant leasehold and security deposits intrust, net
Payments for lease and guarantee deposits
Payments for lease and guarantee deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Payments for investment corporation bond issuance costs
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period (Note 8)(Thousands of yen)
For the six months ended
January 31, 2018

For the six months ended
July 31, 2018

6,798,749
2,651,509
1,388
10,839214(6,501)
885,651
137,494(3,464)125,293
4,840
60,81026,35330,246(1,307)––
8,428(1,246)
10,729,300
372(1,047,601)(541)
9,681,530

7,088,202
2,682,323
1,388
10,748(49)(6,537)854,191
131,529(11,463)(135,908)
13,534(51,454)(485)(30,082)
9,209
1,255,921
1,071,902(16,394)(6,671)
12,859,905
375(984,173)(605)
11,875,502–
4,000,000(1,074,827)(336,492)(5,661)(6,000,000)
1,000,000(5,953,543)(1,810,924)
9,813(11,704)(18,957)––
2,571,313(8,684)(12,318)(12,794,614)––
11,300,000(6,256,329)
1,000,000(8,000,000)(9,720)(6,976,411)(8,942,460)
3,310,382
17,601,638
20,912,021

3,000,000(2,000,000)
21,190,000(19,190,000)
1,500,000–(11,866)(7,133,757)(2,645,623)(3,564,736)
20,912,021
17,347,285

26

III. Notes to Financial Statements
Notes to Financial Statements
1 Organization
Advance residence investment corporation (ADR. Securities Code: 3269) is a listed Residential Japan Real Estate Investment
Trust (J-REIT) that mainly invests in residential properties. It was established through a consolidation-type merger between
the former Advance Residence Investment Corporation and Nippon Residential Investment Corporation on March 1, 2010,
and was listed on the Real Estate Investment Trust (REIT) Securities Section of the Tokyo Stock Exchange (TSE) on March 2,
2010.
The merger made ADR the largest residential J-REIT in terms of asset size, enabling it to upgrade its portfolio while ensuring
its financial stability. The merger also resulted in retained earnings of 43.2 billion yen (32.5 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 essentially an English translation of the audited financial statements of ADR
filed with the appropriate local finance bureau of the Ministry of Finance, prepared in accordance with the provisions set
forth in 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.

27

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

1) Property, plant and equipment (including assets in trust)
Depreciated using the straight-line method.
Useful lives of major categories of property, plant and equipment are as follows:
Buildings: 3 to 46 years
Structures: 6 to 50 years
Machinery and equipment: 10 to 15 years
Tools, furniture and fixtures: 2 to 20 years
2) Intangible assets
Amortized using the straight-line method.
Useful lives of major categories of intangible assets are as follows:
Leasehold rights in trust: 23 to 65 years
3) Long-term prepaid expenses
Amortized using the straight-line method.
1) Investment unit issuance expenses
Amortized using the straight-line method (three years)
2) Investment corporation bond issuance costs
Amortized using the straight-line method over the period up to redemption of the investment
corporation bonds.
Allowance for doubtful accounts
Estimated uncollectible amounts are recorded for possible losses arising from default on receivables
based on the historical performance of general receivables and a case-by-case evaluation of thecollectability of certain receivables, such as receivables with default possibility.
Method of accounting for property taxes
For property taxes, urban planning taxes, and depreciable asset taxes on real estate properties held,
ADR records the amount of taxes imposed corresponding to the current fiscal period as an expense forthe property leasing activities.
Furthermore, for the pro rata portion of property taxes ADR paid to the transferor (seller) uponacquisition of real estate properties, ADR treats the amount as acquisition costs of real estate
properties, instead of recording it as an expense for the property leasing activities. The amount ofproperty taxes treated as acquisition costs of real estate properties was 3,734 thousand yen in theprevious period and 15,443 thousand yen in the current period.
1) Method of hedge accounting
In principal, deferred hedge accounting is applied. Note that special treatment is applied for interest
rate swaps that fulfill certain requirements.
2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Loans
3) Hedging policy
ADR conducts derivative transactions to hedge risks stipulated in ADR’s Articles of Incorporation inaccordance with its financial policy.
4) Method for assessing the hedge effectivenessThe effectiveness of hedges is assessed by comparing the cumulative change of cash flows of both
hedging instruments and corresponding hedged items, and then verifying the ratio of change for both.
However, evaluation of effectiveness is omitted for interest rate swaps that satisfy the requirements
for special accounting treatment.
The funds (cash and cash equivalents) in the statements of cash flows consist of cash on hand and cash intrust; demand deposits and deposits in trust; and short-term investments that are readily convertible into
cash, carry minimal risk of change in value, and are due for redemption in three months or less from theacquisition date.
1) Accounting for trust beneficiary interests in trust assets such as real estate properties
For trust beneficiary interests in real estate properties, all assets and liabilities of the trust assets, aswell as revenue and income earned from, and expenses incurred for the trust assets are recorded under
the respective account in the balance sheets and statements of income.
Of the accounts used to record the above trust assets, the following accounts are significant anddisclosed separately on the face of the balance sheets.
A. Cash and deposits in trust
B. Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture and fixtures intrust; land in trust; construction in progress in trust; and leasehold rights in trust
C. Guarantee deposits in trust
D. Tenant leasehold and security deposits in trust2) Accounting for consumption taxes
Consumption taxes and local consumption taxes are excluded from business transaction amounts.
However, accounting for non-current assets and deferred assets is inclusive of consumption taxes andlocal consumption taxes.

28III. Notes to Financial Statements
4 Balance Sheets(1) Minimum net assets as stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of yen)
As of January 31, 2018

As of July 31, 2018

50,00050,000(2) Commitment line agreements
ADR has executed commitment line agreements with banks.
(Thousands of yen)
As of January 31, 2018
Total commitment line of credit

20,000,000

20,000,000––

20,000,000

20,000,000

Amount used
Unused balance

As of July 31, 2018(3) Provision and reversal of the reserve for temporary difference adjustments
For the six months ended January 31, 2018

Initial amountReserve fordividends (Note)(Thousands of yen)

Balance as of July
31, 2017

Funds drawn down
during 15th FP

Balance as ofJanuary 31, 201833,202,036

335,980

32,866,055

33,552,162

Reasons for setting aside anddrawing down funds
For dividends

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

For the six months ended July 31, 2018

Initial amountReserve fordividends (Note)

33,552,162(Thousands of yen)

Balance as ofJanuary 31, 2018

Funds drawn down
during 16th FP

Balance as of July
31, 2018

32,866,055

336,605

32,529,450

Reasons for setting aside anddrawing down funds
For dividends

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

29

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

For the six months ended
January 31, 2018

For the six months ended
July 31, 2018

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

14,151,517

14,276,600

Facility charges

760,367

787,227

Parking fees

428,841

15,340,727

431,954

15,495,782

Other revenue related to property leasing
Income from leasing rights

80,136

Other482,364

Total revenue from property leasing activities

88,971
562,501

582,321

15,903,228

671,293
16,167,076

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

859,178865,044

1,083,296

1,146,442

Utilities

254,805

255,223

Repairs and maintenance

521,988

567,255

Property-casual insurance

25,54325,369Trust fees

69,07570,873

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

711,555
2,651,490

732,701
6,176,934

2,682,304

6,345,214

6,176,934

6,345,214

9,726,294

9,821,861(2) Breakdown of gain on real estate sales
For the six months ended January 31, 2018
Not applicable.
For the six months ended July 31, 2018(RESIDIA Minami-Aoyama)(Thousands of yen)

Income from sales of real estate properties

710,000

Cost of real estate properties sold697,303

Other sales expenses

5,798

Gain on real estate sales

6,897(Windsor House Hiroo)(Thousands of yen)

Income from sales of real estate properties

1,863,000

Cost of real estate properties sold

1,630,520

Other sales expenses

104,297

Gain on real estate sales

128,18130

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

As of January 31, 2018

(Units)

As of July 31, 2018

Total number of units authorized

6,000,000

6,000,000

Total number of units issued and outstanding

1,350,000

1,350,000

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

For the six months ended January 31, 2018
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within
50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP), which was the period following theperiod in which the transfer to the reserve was made. As such, ADR has drawn down 336,605,635 yen of the reserve
during the fiscal period ended January 31, 2018 (15th FP).
For the six months ended July 31, 2018
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within
50 years, starting from the end of the fiscal period ended January 31, 2017 (13th FP), which was the period following theperiod in which the transfer to the reserve was made. As such, ADR has drawn down 336,052,606 yen of the reserve
during the fiscal period ended July 31, 2018 (16th FP).

31

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)

As of January 31, 2018
Cash and deposits

As of July 31, 201812,218,821

13,741,901

Cash and deposits in trust

9,693,200

9,605,383

Time deposits held over three months(1,000,000)(6,000,000)

Cash and cash equivalents

20,912,021

17,347,285

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

As of January 31, 2018

As of July 31, 2018

Due within one year

729,540739,236

Due after one year

12,610,859

12,408,175

Total

13,340,399

13,147,411

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

(2) Operating leases (as a lessor)
Future lease receivables are as follows:(Thousands of yen)

As of January 31, 2018

As of July 31, 2018

Due within one year

3,918,856

3,802,751

Due after one year

7,567,406

6,353,964

Total

11,486,262

10,156,715

32

III. Notes to Financial Statements
10 Financial Instruments(1) General information on financial instruments
1) Policy on financial instruments
In order to secure stable earnings and steady growth of assets under management, ADR procures funds throughloans, issuance of investment corporation bonds (including short-term investment corporation bonds; the same
applies below), issuance of units, and other means of financing for the purpose of purchasing real estate properties
and repaying its debts.
ADR conducts derivative transactions solely for the purpose of hedging against the risk of interest rate fluctuations
and other risks arising from liabilities.
In addition, ADR, in general, manages surplus funds by investing only in bank deposits, savings, negotiable certificatesof deposit, and government bonds for emphasizing sound and stable portfolio management.
2) Description and risks of financial instruments and risk management
Funds through loans and investment corporation bonds are used primarily to finance the acquisition of real estate
properties, repay existing loans, or redeem existing investment corporation bonds. ADR is exposed to liquidity
risk in that it may not be able to raise funds through alternative financing sources by the repayment date or at theredemption. ADR controls the risk exposures through the preparation of a funding plan on a monthly basis andseeking and procuring funds through various sources, such as securing the level of funds in hand, spreading out theloan repayment and bond redemption dates, diversifying borrowing financial institutions, entering into commitmentline agreements, and issuing investment units.
In addition, ADR is exposed to the risk arising from fluctuations in interest rates on its loans and investment corporation
bonds with floating interest rates. ADR controls and limits such risk by utilizing derivative transactions (interest rate
swap transactions).
ADR is also exposed to the credit risk that the financial institutions with which it has bank deposits may default.
However, ADR limits the effects of such risk by setting certain limits on the term of deposits and the minimum
credit rating for the financial institutions in which deposits are placed, and by placing deposits with various financial
institutions.
3) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on quoted market prices. If a quoted market price is not available, areasonable estimate of fair value is used. Certain assumptions are applied in the fair value measurements and therefore
could result in a different fair value if different assumptions are applied. Furthermore, the contractual amounts ofderivative transactions presented in “Derivative Transactions” below do not represent the market risk exposure ofthose derivative transactions.
(2) Fair values of financial instruments
The book values in the balance sheets, fair values of financial instruments, and unrealized gain (loss) are presented
below.
As of January 31, 2018

(Thousands of yen)Book value

Unrealized gain (loss)

1) Cash and deposits

12,218,821

12,218,821–

2) Cash and deposits in trust

9,693,200

9,693,200–

3) Short-term loans payable

–

–

–

4) Current portion of investment corporation bonds

2,000,000

2,018,400(18,400)

5) Current portion of long-term loans payable

28,950,000

29,042,964(92,964)

6) Investment corporation bonds

25,500,000

26,074,822(574,822)

7) Long-term loans payable

164,968,000

167,460,223(2,492,223)–(1,799,418)(1,799,418)

8) Derivative transactions(Special treatment for interest rate swaps)

33

Fair valueAs of July 31, 2018

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

13,741,901

13,741,901–

2) Cash and deposits in trust

9,605,383

9,605,383–

3) Short-term loans payable

1,000,000

1,000,572(572)

4) Current portion of investment corporation bonds

2,000,000

2,003,600(3,600)5) Current portion of long-term loans payable

21,460,000

21,552,561(92,561)

6) Investment corporation bonds

27,000,000

27,544,250(544,250)

7) Long-term loans payable

174,458,000

177,215,067(2,757,067)–(1,517,966)(1,517,966)

3,423

3,423

–

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

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

(3) Redemption schedules of monetary claims and securities after balance sheet date.
As of January 31, 2018

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

12,218,821

–

–

–

–

–

Cash and deposits in trust

9,693,200

–

–

–

–

–

21,912,021

–

–

–

–

–

Total

As of July 31, 2018

(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

13,741,901

–

–

–

–

–

Cash and deposits in trust

9,605,383

–

–

–

–

–

23,347,284

–

–

–

–

–

Total

34

III. Notes to Financial Statements(4) Repayment schedules of investment corporation bonds, loans payable, and other interest-bearing loans after balance
sheet date.
As of January 31, 2018
(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

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

2,000,000

–

–

–

–

–

28,950,000

–

–

–

–

–

–

4,000,000

1,500,000–

2,000,000

18,000,000–

17,700,000

24,070,000

26,478,000

20,150,000

76,570,000

30,950,000

21,700,000

25,570,000

26,478,000

22,150,000

94,570,000

As of July 31, 2018

(Thousands of yen)Due in one
year or less

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

11 Securities
As of January 31, 2018
Not applicable.
As of July 31, 2018
Not applicable.

35

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

1,000,000

–

–

–

–

–

2,000,000

–

–

–

–

–

21,460,000

–

–

–

–

–

–

4,000,000

1,500,000–

5,000,000

16,500,000–

20,870,000

25,218,000

24,460,000

15,310,000

88,600,000

24,460,000

24,870,000

26,718,000

24,460,000

20,310,000

105,100,000

12 Derivative Transactions(1) Derivative transactions to which hedge accounting is not applied
As of January 31, 2018
Not applicable.
As of July 31, 2018
Not applicable.
(2) Derivative transactions to which hedge accounting is applied
The contract amounts or equivalent notional principal amounts defined in the contract by the method of hedge
accounting as of January 31, 2018 and July 31, 2018 are as follows:
As of January 31, 2018

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment for interest
rate swaps

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

Long-term loans
payableContract
amount due
after one year
120,198,000

98,858,000

As of July 31, 2018

Fair value(*2)(1,799,418)(*3)(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Special accounting
treatment for interest
rate swaps

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

Basic accounting method

Main hedged
item

Contract
amount due
after one year

Fair value(*2)

Long-term loans
payable106,358,000

87,158,000(1,517,966)(*3)

Long-term loans
payable2,000,000

2,000,000(3,423)*1. The contract amount is based on the notional principal.
*2. Fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore, interest rate swaps are not stated at fair value in the balance sheets.

36III. Notes to Financial Statements
13 Profits or Losses from Investments Accounted for Using the Equity Method
For the six months ended January 31, 2018
Not applicable as ADR does not have any affiliated companies.
For the six months ended July 31, 2018
Not applicable as ADR does not have any affiliated companies.

14 Transactions with Related Parties(1) Parent company and major corporate unitholders
As of and for the six months ended January 31, 2018
Not applicable.
As of and for the six months ended July 31, 2018
Not applicable.
(2) Affiliated companies
As of and for the six months ended January 31, 2018
Not applicable.
As of and for the six months ended July 31, 2018
Not applicable.
(3) Fellow subsidiaries
As of and for the six months ended January 31, 2018
Not applicable.
As of and for the six months ended July 31, 2018
Not applicable.
(4) Directors and major individual unitholders
As of and for the six months ended January 31, 2018

Type ofrelated party

Name ofrelatedparty

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

Percentage Relationshipsof voting with relatedpartiesrights held

Nature of transactions

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

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

37

Account
name

Period-end
balance(Thousandsof yen)Accounts
454,182
payable –
(*2)
other

490,516(*3)

Accounts
371,333
payable –
(*2)
other

401,040(*3)

Accounts
349,666
payable –
(*2)
other

377,640(*3)

7,333 Accounts(*3) payable –(*4) other

7,333
(*3)

Transaction
amount(Thousandsof yen)As of and for the six months ended July 31, 2018

Type ofrelated party

Directors
and their
immediatefamilymembers

Name ofrelatedparty

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

Percentage Relationshipsof voting with relatedpartiesrights held

Executive
Director of
ADR and thePresident of
ADIM–

Account
name

Period-end
balance(Thousandsof yen)Management
fee 1

Accounts
444,736
payable –
(*2)
other

480,315(*3)

Management
fee 2

Accounts
375,124
payable –
(*2)
other

405,134(*3)

Accounts
361,930
payable –
(*2)
other

390,885(*3)

Nature of transactions

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

Transaction
amount(Thousandsof yen)Transfer fee

12,865(*2)––

Acquisitionfee

73,240
(*3)
(*4)

–

–

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

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

As of January 31, 2018

As of July 31, 2018

Deferred tax assets
Excess provision of allowance for doubtful accounts

2,298

2,282

Valuation difference on assets acquired through merger

10,070,239

9,832,217

Tax loss carryforwards

1,371,552

1,371,552

109,516

120,395

Other
Subtotal

11,553,606

11,326,447

Less valuation allowance(11,553,606)(11,326,447)

Total deferred tax assets

–

–

–

–

Net deferred tax asset

38

III. Notes to Financial Statements(2) Reconciliation between the statutory tax rates and the effective tax rates after the application of tax effect accounting(Unit: %)As of January 31, 2018
Statutory tax rate

31.74

As of July 31, 2018
31.74

(Adjustments)
Increase (decrease) in valuation allowance(1.09)(3.20)

Deductible dividends(30.66)(28.52)

Other

0.01

0.00

Effective tax rate after the application of tax effect accounting

0.01

0.01

16 Retirement Benefits
As of and for the six months ended January 31, 2018
Not applicable because ADR does not have retirement benefit plans.
As of and for the six months ended July 31, 2018
Not applicable because ADR does not have retirement benefit plans.

17 Asset Retirement Obligations
As of and for the six months ended January 31, 2018
Not applicable.
As of and for the six months ended July 31, 2018
Not applicable.

39

18 Segment Information(1) Segment information
Disclosure is omitted because ADR’s business comprises a single reportable segment engaged in the property leasing
business.
(2) Related information
As of and for the six months ended January 31, 2018
1) Information about products and services
Disclosure is omitted because operating revenues attributable to external customers for products and services of thesingle segment exceed 90% of the total operating revenue reported in the statements of income.
2) Information about geographic areas
A. Operating revenues
Disclosure is omitted because operating revenues attributable to external customers in Japan exceed 90% of thetotal operating revenue reported in the statements of income.
B. Property, plant and equipment
Disclosure is omitted because property, plant and equipment located in Japan exceeds 90% of the total property,
plant and equipment reported in the balance sheets.
3) Information about major customers
Disclosure is omitted because operating revenues attributable to a single external customer account for less than 10%of the total operating revenue reported in the statements of income.
As of and for the six months ended July 31, 2018
1) Information about products and services
Disclosure is omitted because operating revenues attributable to external customers for products and services of thesingle segment exceed 90% of the total operating revenue reported in the statements of income.
2) Information about geographic areas
A. Operating revenues
Disclosure is omitted because operating revenues attributable to external customers in Japan exceed 90% of thetotal operating revenue reported in the statements of income.
B. Property, plant and equipment
Disclosure is omitted because property, plant and equipment located in Japan exceeds 90% of the total property,
plant and equipment reported in the balance sheets.
3) Information about major customers
Disclosure is omitted because operating revenues attributable to a single external customer account for less than 10%of the total operating revenue reported in the statements of income.

40

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

As of January 31, 2018

As of July 31, 2018

Book value(*1)

Balance at the beginning of
periodChanges during the period(*2)
Balance at the end of period

Fair value at the end of period (*3)

424,712,182

423,470,815(1,241,366)

2,792,788

423,470,815

426,263,604

533,958,000

548,888,000*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 (745,170 thousandyen), while the main decreases came from the posting of depreciation expenses. Of the changes in the value of rental properties during the fiscal period ended July 31, 2018, theincrease is mainly attributable to the acquisition of two real estate properties (5,770,812 thousand yen) and the acquisition of real estate beneficiary interests in trust for two properties(1,311,848 thousand yen), and the decrease is mainly a result of the sales of two real estate properties (2,327,824 thousand yen) and posting depreciation.
*3. The fair value at the end of the current period is the appraisal or assessment value provided by an external real estate appraiser. The fair values at the end of the previous fiscal yearwith respect to RESIDIA Minami-Aoyama and Windsor House Hiroo are the disposition prices.

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

20 Per Unit Information(Yen)
As of and for the six months ended
January 31, 2018

As of and for the six months ended
July 31, 2018

Net assets per unit

163,388

163,351

Net income per unit

5,035

5,250

*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, 2018

For the six months ended
January 31, 2018
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)41

6,798,144

7,087,597––

6,798,144

7,087,597

1,350,000

1,350,000

21 Significant Subsequent Event
For the six months ended July 31, 2018
Issuance of investment corporation bonds
Based on the “General Resolution on ADR Bond Issuance” resolved by the Board of Directors meeting held on July 26, 2018,
ADR issued investment corporation bonds on October 19, 2018 under the following terms and conditions.
ADR Unsecured Bond #30 (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:
0.704%
Collateral and guarantee: Unsecured, unguaranteed
Redemption date:
ADR will redeem the entire amount on October 19, 2028. The bonds may be purchased andcanceled at any time on and after the date following the issuance date, unless otherwise
stipulated by the depository.
Interest payment dates:
April 19 and October 19 of every year
Intended use of proceeds: Repayment of short-term loans payable

22 Schedule of Securities
Not applicable.

23 Table of Summary of Contract Amounts and Fair Values of Derivative Transactions andForward Foreign Exchange Contracts(Thousands of yen)

Category

Type

Transactions other thanmarket transactions

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

Contract amount (*1)
Contract amount due Fair value (*2 and *3)
after one year
108,358,000

89,158,000(1,521,390)

108,358,000

89,158,000(1,521,390)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. For the fair value amount of negative 1,517,966 yen, special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial
Instruments” (issued by the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore, interest rate swaps are not stated at fair value inthe balance sheets.

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

Property, plant and equipment

As of and for the six months ended July 31, 2018

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

75,173,544

1,813,158

1,006,303

75,980,399

12,997,222

844,039

62,983,176*1Structures

23,585604

794

23,395

7,132

764

16,263–

Machinery and equipment

67,662

14,698–82,361

19,8593,349

62,502–Tools, furniture and fixtures

268,535

32,988

11,614289,909141,887

15,871

148,021–70,754,369

4,083,265

434,390

74,403,244––

74,403,244*1 *2

47,77944,67047,77944,670––44,670–Land
Construction in progress
Buildings in trust

153,340,662

992,695

285

154,333,071

25,491,760

1,736,459

128,841,311*1Structures in trust

190,982

2,608–

193,591

103,080

4,607

90,510–Machinery and equipmentin trust

175,646

6,475–

182,121

105,796

6,534

76,325–Tools, furniture and fixturesin trust

783,450

48,683–

832,133

518,517

36,240313,615–

156,457,632

844,872–

157,302,505––

157,302,505*1

40,254

6,503

40,254

6,503

–

–

6,503

–

457,324,106

7,891,224

1,541,423

463,673,908

39,385,257

2,647,866

424,288,650

Leasehold rights

1,071,902–

1,071,902

–

–

–

–

*2

Leasehold rights in trust

2,356,072––

2,356,072

381,118

34,437

1,974,953–

19,506––

19,506

19,471

19

34–

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

Other
Subtotal

3,447,482–

1,071,902

2,375,579

400,590

34,456

1,974,988

Total

460,771,588

7,891,224

2,613,325

466,049,487

39,785,847

2,682,323

426,263,639*1. The increase in property, plant and equipment for the six months ended July 31, 2018, primarily represents the acquisition of the properties listed below.
RESIDIA Kamata V
RESIDIA Kamata IV
RESIDIA Funabashi IV
RESIDIA Hijiyama-Koen*2. The decrease in property, plant and equipment and intangible assets for the six months ended July 31, 2018, primarily represents the sale of the properties listed below.
RESIDIA Minami-Aoyama
Windsor House Hiroo

25 Schedule of Other Specified Assets
Not applicable43

26 Schedule of Investment Corporation Bonds
As of and for the six months ended July 31, 2018

(Thousands of yen)

Series (*1)

Issue date

Balanceat thebeginningof period

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

2,000,000–

2,000,000

1.680

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

4,000,000–

4,000,000

ADR Bond #19 (Unsecured)

Apr. 25,2013

3,000,000–

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

2,000,000

ADR Bond #21 (Unsecured)

Apr. 28,2014

ADR Bond #22 (Unsecured)

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

Collateral

Sep. 12,
2018

(*3)

Unsecured

1.230

Sep. 12,
2019

(*3)

Unsecured

3,000,000

1.320

Apr. 25,
2023

(*2)

Unsecured–

2,000,000

1.410

Nov. 14,
2025

(*2)

Unsecured2,500,000–

2,500,000

1.040

Apr. 26,
2024

(*2)

Unsecured

Apr. 23,2015

2,000,000–

2,000,000

0.726

Apr. 23,
2025

(*3)

Unsecured

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

1,500,000–

1,500,000

0.326

Oct. 21,
2020

(*2)

Unsecured

ADR Bond #24 (Unsecured)Oct. 21,2015

1,500,000–

1,500,000

0.846

Oct. 21,
2025

(*2)

Unsecured

ADR Bond #25 (Unsecured)

Jun. 21,2016

3,000,000–

3,000,000

0.900

Jun. 20,
2031

(*2)

Unsecured

ADR Bond #26 (Unsecured)Feb. 17,2017

2,000,000–

2,000,000

0.180

Aug. 17,
2022

(*2)

Unsecured

ADR Bond #27 (Unsecured)

Jul. 18,2017

3,000,000–

3,000,000

0.500

Jul. 16,
2027

(*2)

Unsecured

ADR Bond #28 (Unsecured)Nov. 24,2017

1,000,000–

1,000,000 0.5663

Nov. 24,
2027

(*2)

Unsecured

ADR Bond #29 (Unsecured)

Apr. 24,
2018

–

–

1,500,000

0.690

Apr. 24,
2030

(*2)

Unsecured

Total

–

–

–

–

–

27,500,000– 29,000,000*1. The bonds have a pari passu clause among specified investment corporation bonds.
*2. The funds are used for repayments of existing loans.
*3. The funds are used for redemption of existing investment corporation bonds.
*4. Redemption schedules of investment corporation bonds after the balance sheet date for the next five years are as follows:

Due in one year or
less
Investment
corporation bond

2,000,000

Due after one year Due after two years
through two years through three years
4,000,000

1,500,000(Thousands of yen)

Due after three
Due after four years
years
through five years
through four years–

5,000,000

44III. Notes to Financial Statements
27 Schedule of Loans
As of and for the six months ended July 31, 2018

Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodMUFG Bank, Ltd. (*10)–

750,000

750,000–

Sumitomo Mitsui Trust Bank Limited–

750,000

750,000–

Mizuho Bank, Ltd.

–

500,000

500,000–

Sumitomo Mitsui Trust Bank Limited–

1,000,000–

1,000,000

Total

–

3,000,000

2,000,000

1,000,000

890,000–

890,000

MUFG Bank, Ltd. (*10)

1,000,000–

MUFG Bank, Ltd. (*10)

3,200,000

Sumitomo Mitsui Trust Bank Limited

1,300,000

Short-term loans
payableLenders

Current portion of long-term loans payable

Sumitomo Mitsui Trust Bank Limited

Interest
Repayment
rate
Use
date
(*1)
–

Apr. 27,
2018

(*3)

0.15%

Jul. 31,
2019

(*5)

–

–

Jun. 29,
2018

(*5)

–

1,000,000

1.62%
(*2)

Sep. 28,
2018

(*3)

–

–

3,200,000––

1,300,000

1.57%
(*2)

Nov. 30,
2018

(*5)

–

Jul. 31,
2018

(*5)

–

Jul. 31,
2018

(*6)

–

Feb. 28,
2018

(*3)

–

Apr. 27,
2018

(*5)

1.25%
(*2)

Jun. 28,
2019

(*5)

1.28%
(*2)

Jul. 25,
2019

(*5)

Mizuho Bank, Ltd.

1,000,000––

1,000,000

MUFG Bank, Ltd. (*10)

1,400,000–

1,400,000–

Sumitomo Mitsui Trust Bank Limited

500,000–

500,000–

Sumitomo Mitsui Banking Corporation

650,000–

650,000–

Mizuho Bank, Ltd.

500,000–

500,000–

Development Bank of Japan Inc.

1,000,000–

1,000,000–

Shinsei Bank, Limited

1,500,000–

1,500,000–

MUFG Bank, Ltd. (*10)

500,000–

500,000–

Sumitomo Mitsui Trust Bank Limited

500,000–

500,000–

Shinsei Bank, Limited

1,000,000–

1,000,000–

MUFG Bank, Ltd. (*10)

2,850,000–

2,850,000–

MUFG Bank, Ltd. (*10)

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–

MUFG Bank, Ltd. (*10)–

1,200,000–

1,200,000

Sumitomo Mitsui Trust Bank Limited–

800,000–

800,000

Aozora Bank, Ltd.

–

700,000–

700,000–

4,502,000–

4,502,000

Sumitomo Mitsui Trust Bank Limited–

3,595,000–

3,595,000

Aozora Bank, Ltd.

–903,000–

903,000

1,000,000–

1,000,000––

Feb. 28,
2018

(*3)

The Nishi-Nippon City Bank, Ltd.

500,000––

500,000

The 77 Bank, Ltd.

500,000––

500,000

0.77%
(*2)

Sep. 28,
2018

(*3)

Mizuho Bank, Ltd.

1,500,000–

1,500,000––

Apr. 13,
2018

(*3)

Sumitomo Mitsui Banking Corporation

2,260,000––

2,260,000

0.20%

Nov.
30,2018(*5)

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

1,000,000–

1,000,000––

May 31,
2018(*5)

28,950,000

11,700,000

19,190,000

21,460,000

Total

Notes

Unsecured
Unguaranteed

Unsecured
Unguaranteed

MUFG Bank, Ltd. (*10)

The Bank of Fukuoka, Ltd.

45

(Thousands of yen)Classification
Lenders

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodMUFG Bank, Ltd. (*10)

Interest
Repayment
rate
Use
date
(*1)

1,200,000–

1,200,000–

Sumitomo Mitsui Trust Bank Limited

800,000–

800,000–

Aozora Bank, Ltd.

700,000–

700,000–

MUFG Bank, Ltd. (*10)

450,000––

Sumitomo Mitsui Trust Bank Limited

450,000–

MUFG Bank, Ltd. (*10)

1,000,000

Sumitomo Mitsui Banking Corporation–

Jun. 28,
2019

(*5)

450,000

1.16%

Sep. 30,
2019

(*6)

–

450,000

1.16%

Sep. 30,
2019

(*6)

–

–

1,000,000

1.03%
(*2)

Nov. 29,
2019

(*6)

1,200,000––

1,200,000

Mizuho Bank, Ltd.

1,200,000––

1,200,000

0.95%
(*2)

Nov. 29,
2019

(*6)

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)

–

Jul. 25,
2019

(*5)

MUFG Bank, Ltd. (*10)

4,502,000–

4,502,000–

Sumitomo Mitsui Trust Bank Limited

3,595,000–

3,595,000–

903,000–

903,000–

MUFG Bank, Ltd. (*10)

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)

MUFG Bank, Ltd. (*10)

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)

0.88%
(*2)

Mar. 24,
2020

(*5)

1.25%
(*2)

Oct. 29,
2021

(*5)

1.63%
(*2)

Dec. 22,
2021

(*5)

1.54%
(*2)

Jun. 25,
2021

(*5)

1.07%
(*2)

Sep. 30,
2020

(*3)

Aozora Bank, Ltd.

Long-term loans payable

Balance atthe end of
periodSumitomo Mitsui Trust Bank LimitedAozora Bank, Ltd.

920,000––

920,000

1,830,000––

1,830,000

Resona Bank, Limited

1,370,000––

1,370,000

MUFG Bank, Ltd. (*10)

2,000,000––

2,000,000

Sumitomo Mitsui Trust Bank Limited

2,600,000––

2,600,000

Sumitomo Mitsui Banking Corporation

1,500,000––

1,500,000

Mizuho Bank, Ltd.

2,160,000––

2,160,000

Aozora Bank, Ltd.

1,379,000––

1,379,000

919,000––

919,000

Mizuho Trust & Banking Co., Ltd.

1,000,000––

1,000,000

The Norinchukin Bank

1,000,000––

1,000,000

500,000––

500,000

0.92%
(*2)

Sep. 30,
2019

(*3)

Sumitomo Mitsui Trust Bank Limited

2,600,000––

2,600,000

1.47%
(*2)

Nov. 15,
2023

(*5)

Sumitomo Mitsui Banking Corporation

3,550,000––

3,550,000

1.37%
(*2)

Nov. 15,
2022

(*5)

Aozora Bank, Ltd.

1,800,000––

1,800,000

1.16%
(*2)

Nov. 26,
2021

(*3)

Shinsei Bank, Limited

1,000,000––

1,000,000

1.32%
(*2)

Jun. 17,
2022

(*3)

Shinsei Bank, Limited

700,000––

700,000

1.10%
(*2)

Jun. 18,
2021

(*3)

The Yamaguchi Bank, Ltd.

500,000––

500,000

0.93%
(*2)

Jun. 18,
2020

(*3)

Resona Bank, Limited

The Nishi-Nippon City Bank, Ltd.

Notes

Unsecured
Unguaranteed46

III. Notes to Financial Statements
Classification

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

500,000––

500,000

0.85%
(*2)

Dec. 18,
2019

(*3)

MUFG Bank, Ltd. (*10)

500,000––

500,000

1.59%
(*2)

Feb. 14,
2025

(*5)

1.44%
(*2)

Feb. 16,
2024

(*5)

1.28%
(*2)

Feb. 16,
2023

(*5)

1.28%
(*2)

Feb. 16,
2023

(*5)

1.08%
(*2)

Feb. 16,
2022

(*5)

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)

Lenders

MUFG Bank, Ltd. (*10)

500,000––

500,000

Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

MUFG Bank, Ltd. (*10)

455,000––

455,000

Sumitomo Mitsui Trust Bank Limited

455,000––

455,000

Sumitomo Mitsui Banking Corporation

1,120,000––

1,120,000

Mizuho Bank, Ltd.

1,630,000––

1,630,000

MUFG Bank, Ltd. (*10)

1,200,000––

1,200,000

Sumitomo Mitsui Trust Bank Limited

2,100,000––

2,100,000

Mizuho Bank, Ltd.

2,000,000––

2,000,000

500,000––

500,000

Mizuho Bank, Ltd.

2,900,000––

2,900,000

Mizuho Trust & Banking Co., Ltd.

1,500,000––

1,500,000

270,000––

270,000

Mizuho 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

MUFG Bank, Ltd. (*10)

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––

1,500,000

1.02%
(*2)

Sep. 29,2023

Development Bank of Japan Inc.

1,850,000––

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

Aozora Bank, Ltd.

1,000,000––

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

Aozora Bank, Ltd.

700,000––

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

Aozora Bank, Ltd.

700,000––

700,000

0.42%
(*2)

Oct. 31,
2019

(*5)

Resona Bank, Limited

500,000––

500,000

The Bank of Fukuoka, Ltd.

500,000––

500,000

0.57%
(*2)

Jan. 29,
2021

(*5)

MUFG Bank, Ltd. (*10)

600,000––

600,000

Resona Bank, Limited

500,000––

500,000

Jun. 30,
2021

(*5)

The Bank of Fukuoka, Ltd.

0.63%
(*2)

500,000––

500,000

1,000,000––

1,000,000

700,000––

700,000

Jan. 31,
2023

(*5)

Resona Bank, Limited

0.89%
(*2)

1,000,000––

1,000,000

Mizuho Trust & Banking Co., Ltd.

1,200,000––

1,200,000

1.05%
(*2)

Mar. 19,
2025

(*3)

500,000––

500,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Nippon Life Insurance Company

1,000,000––

1,000,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Mizuho Trust & Banking Co., Ltd.

1,400,000––

1,400,000

0.88%
(*2)

Apr. 12,
2024

(*3)

0.75%
(*2)

Apr. 14,
2023

(*3)

Mizuho Trust & Banking Co., Ltd.

Long-term loans payable

MUFG Bank, Ltd. (*10)

MUFG Bank, Ltd. (*10)
Aozora Bank, Ltd.

The Yamaguchi Bank, Ltd.

47

Interest
Repayment
rate
Use
date
(*1)

Mizuho Trust & Banking Co., Ltd.

1,200,000––

1,200,000

The Norinchukin Bank

1,500,000––

1,500,000

Notes

Unsecured(*5) UnguaranteedClassification
Lenders
The Yamaguchi Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

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

500,000––

500,000

0.73%
(*2)

Apr. 14,
2023

(*3)

1,200,000––

1,200,000

0.69%
(*2)

Apr. 14,
2022

(*3)

0.62%
(*2)

Apr. 14,
2022

(*3)

Kiraboshi Bank, Ltd. (*11)

500,000––

500,000

The Iyo Bank, Ltd.

700,000––

700,000

The 77 Bank, Ltd.

500,000––

500,000

The Norinchukin Bank

1,000,000––

1,000,000

0.50%
(*2)

Apr. 14,
2021

(*3)

The Gunma Bank, Ltd.

1,000,000––

1,000,000

0.63%
(*2)

May 27,2022(*5)

Development Bank of Japan Inc.

2,300,000––

2,300,000

1.04%
(*2)

Jun. 25,
2025

(*5)

Resona Bank, Limited

1,000,000––

1,000,000

The Nishi-Nippon City Bank, Ltd

800,000––

800,000

0.73%
(*2)

Aug. 31,
2023

(*5)

MUFG Bank, Ltd. (*10)

400,000––

400,000

0.92%

Aug. 29,
2025

(*3)

Sumitomo Mitsui Trust Bank Limited

400,000––

400,000

0.85%
(*2)

Aug. 29,
2025

(*3)

MUFG Bank, Ltd. (*10)

1,000,000––

1,000,000

0.84%
(*2)

Dec. 18,
2025

(*5)

The Norinchukin Bank

1,000,000––

1,000,000

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.61%
(*2)

Dec. 18,
2023

(*5)

990,000––

990,000

0.55%

Feb. 28,
2026

(*5)

0.66%

Jan. 31,
2027

(*5)

MUFG Bank, Ltd. (*10)
Long-term loans payable

Balance at the
beginning of
periodSumitomo Mitsui Trust Bank Limited

990,000––

990,000

Mizuho Bank, Ltd.

1,080,000––

1,080,000

MUFG Bank, Ltd. (*10)

2,500,000––

2,500,000

0.57%

Jan. 31,2026

Sumitomo Mitsui Trust Bank Limited

1,000,000––

1,000,000

0.77%
(*2)

Mar. 24,
2028

(*3)

MUFG Bank, Ltd. (*10)

1,000,000––

1,000,000

0.54%

Mar. 24,
2026

(*3)

0.63%

Jan. 31,
2027

(*3)

Notes

Unsecured(*5) Unguaranteed

Mizuho Bank, Ltd.

900,000––

900,000

Mizuho Trust & Banking Co., Ltd.

750,000––

750,000

Resona Bank, Limited

900,000––

900,000

0.52%

Jan. 31,
2026

(*3)

MUFG Bank, Ltd. (*10)

1,150,000––

1,150,000

0.45%

Jan. 31,
2025

(*3)

Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

0.75%
(*2)

Mar. 24,
2028

(*3)

MUFG Bank, Ltd. (*10)

500,000––

500,000

0.51%

Mar. 24,
2026

(*3)

Mizuho Bank, Ltd.

400,000––

400,000

0.63%

Jan. 31,
2027

(*3)

The Yamaguchi Bank, Ltd.

500,000––

500,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.26%

Jul. 29,
2025

(*5)

The Iyo Bank, Ltd.

300,000––

300,000

0.20%

Jul. 29,
2024

(*5)

The Chugoku Bank, Ltd.

500,000––

500,000

0.20%

Jul. 29,
2024

(*5)

Bank of Kyoto, Ltd.

500,000––

500,000

0.20%

Jul. 29,
2024

(*5)

48

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodThe Norinchukin Bank

1,500,000––

1,500,000

0.45%

Nov. 28,
2025

(*5)

The Norinchukin Bank

1,000,000––

1,000,000

0.38%

Nov. 29,
2024

(*5)

Taiyo Life Insurance Company

1,500,000––

1,500,000

0.24%

Nov. 29,
2024

(*5)

Mitsui Sumitomo Insurance Co., Ltd.

1,000,000––

1,000,000

0.32%

Nov. 30,
2023

(*5)

MUFG Bank, Ltd. (*10)

1,250,000––

1,250,000

0.41%

Jan. 29,
2027

(*5)

MUFG Bank, Ltd. (*10)

1,000,000––

1,000,000

0.58%

Jan. 29,
2027

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000––

1,000,000

0.63%

Jan. 29,
2027

(*5)

0.61%

Jan. 29,
2027

(*5)

Long-term loans payable

Lenders

Sumitomo Mitsui Trust Bank Limited

1,250,000––

1,250,000

Resona Bank, Limited

1,000,000––

1,000,000

Resona Bank, Limited

1,000,000––

1,000,000

0.50%

Jan. 30,
2026

(*5)

MUFG Bank, Ltd. (*10)

1,200,000––

1,200,000

0.43%

Feb. 25,
2026

(*6)

Sumitomo Mitsui Trust Bank Limited

1,000,000––

1,000,000

0.67%

Apr. 25,
2028

(*6)

Development Bank of Japan Inc.

1,400,000––

1,400,000

0.56%

Apr. 23,
2027

(*6)

MUFG Bank, Ltd. (*10)

2,500,000––

2,500,000

0.52%

Feb. 26,
2027

(*5)

MUFG Bank, Ltd. (*10)

1,000,000––

1,000,000

0.47%

Aug. 31,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

2,000,000––

2,000,000

MUFG Bank, Ltd. (*10)

2,000,000––

2,000,000

0.60%

Apr. 30,
2027

(*5)

MUFG Bank, Ltd. (*10)

1,700,000––

1,700,000

0.54%

Oct. 30,
2026

(*5)

Development Bank of Japan Inc.

1,000,000––

1,000,000

0.57%

May 31,
2027(*7)

Sumitomo Mitsui Banking Corporation

2,700,000––

2,700,000

0.25%

Dec. 25,
2020

(*5)

Sumitomo Mitsui Banking Corporation

2,800,000––

2,800,000

0.25%

Feb. 26,
2021

(*5)

0.55%

Aug. 31,
2027

(*6)

0.42%

Feb. 27,
2026

(*6)

0.51%

Aug. 31,
2027

(*6)

0.55%

Aug. 31,
2027

(*6)

0.42%

Sep. 30,
2025

(*5)

The Nishi-Nippon City Bank, Ltd.

500,000––

500,000

The Bank of Fukuoka, Ltd.

500,000––

500,000

The Iyo Bank, Ltd.

500,000––

500,000

Bank of Kyoto, Ltd.

500,000––

500,000

Shinkin Central Bank

500,000––

500,000

The Nishi-Nippon City Bank, Ltd.

500,000––

500,000

The Bank of Fukuoka, Ltd.

500,000––

500,000

The Iyo Bank, Ltd.

500,000––

500,000

The Chugoku Bank, Ltd.

500,000––

500,000

Shinkin Central Bank

500,000––

500,000

MUFG Bank, Ltd. (*10)

500,000––

500,000

Sumitomo Mitsui Trust Bank Limited

49

Interest
Repayment
rate
Use
date
(*1)

500,000––

500,000

Japan Post Insurance Co., Ltd.

1,000,000––

1,000,000

Taiyo Life Insurance Company

1,500,000––

1,500,000

Notes

Unsecured
UnguaranteedLong-term loans payable

Classification
Lenders

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

MUFG Bank, Ltd. (*10)–

2,850,000–

2,850,000

0.54%

Sep. 30,
2027

(*5)

The Bank of Fukuoka, Ltd.

–

500,000–

500,000

0.38%

Feb. 28,
2025

(*5)

The Bank of Fukuoka, Ltd.

–

500,000–

500,000

0.63%

Feb. 29,
2028

(*5)

MUFG Bank, Ltd. (*10)–

500,000–

500,000

0.56%

Mar. 17,
2028

(*3)

0.61%

Mar. 17,
2028

(*3)

Notes

Sumitomo Mitsui Trust Bank Limited–

500,000–

500,000

Mizuho Bank, Ltd.

–

1,000,000–

1,000,000

The Yamaguchi Bank, Ltd.

–

500,000–

500,000

Shinkin Central Bank–

500,000–

500,000

Mizuho Bank, Ltd.

–1,500,000–

1,500,000

0.60%

Apr. 13,
2028

(*5)

MUFG Bank, Ltd. (*10)–

1,500,000–

1,500,000

0.50%

Mar. 31,
2028

(*5)

Sumitomo Mitsui Trust Bank Limited–

2,100,000–

2,100,000

0.38%

Apr. 30,
2025

(*5)

Sumitomo Mitsui Banking Corporation–

800,000–

800,000

0.27%

Apr. 30,
2021

Unsecured(*5) Unguaranteed

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

–

1,000,000–

1,000,000

0.20%

Nov. 30,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited–

890,000–

890,000

0.70%

Jun. 29,
2029

(*5)

MUFG Bank, Ltd. (*10)–

1,000,000–

1,000,000

0.49%

Mar. 31,
2028

(*5)

0.66%

Jul. 31,
2028

(*5)

Development Bank of Japan Inc.

–

1,000,000–

1,000,000

The Nishi-Nippon City Bank, Ltd.

–

900,000–

900,000

Mizuho Bank, Ltd.

–

500,000–

500,000

0.47%

Jul. 31,
2026

(*5)

Shinsei Bank, Limited–

1,000,000–

1,000,000

0.47%
(*2)

Jul. 31,
2026

(*5)

Sumitomo Mitsui Banking Corporation–

650,000–

650,000

0.37%

Jan. 31,
2025

(*5)

Shinsei Bank, Limited–

1,000,000–

1,000,000

0.36%
(*2)

Jan. 31,
2025

(*5)

Shinsei Bank, Limited–

500,000–

500,000

0.20%

Jan. 31,
2022

(*5)

164,968,000

21,190,000

11,700,000

174,458,000

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

Long-term loans
payableDue in one year or
less

Due after one year
through two years

21,460,000

20,870,000

Due after two years Due after three years Due after four years
through three years through four years
through five years
25,218,000

24,460,000

15,310,000*10. Mitsubishi UFJ Trust and Banking Corporation concluded a corporate absorption-type split agreement whereby its domestic corporate loan-related business is to be succeeded to MUFG Bank,
Ltd. Accordingly, the title, rights and obligations of Mitsubishi UFJ Trust and Banking Corporation are to be succeeded to MUFG Bank, Ltd. as of April 16, 2018.
*11. The Tokyo Tomin Bank Co., Ltd. changed its trade name to Kiraboshi Bank, Ltd. on the occasion of the merger with the Yachiyo Bank, Ltd. and ShinGinko Tokyo, Inc. on May 1, 2018.

50