15th
Fiscal Period ReportAugust 1, 2017 - January 31, 2018

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

Balancesheet figures

Per unit
figures

Financial
indicators

Reference
information

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

11th FP

12th FP

13th FP

14th FP

15th FP

units

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

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

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

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

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

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

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

Notes 1. Operating revenues and such do not include consumption tax. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal
place. The same applies for the rest of this report unless otherwise specified.
2. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
3. The annualized figures are calculated using periods of 184 days for the 11th Fiscal Period, 182 days for the 12th Fiscal Period, 184 days for the 13th Fiscal Period, 181 days for the 14th
Fiscal Period and 184 days for the 15th Fiscal Period.
4. Ratio of ordinary income to total assets = Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
5. Return on equity = Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
6. In the calculation of NOI, the depreciation and amortization is limited to what is included in rental business expenses.
7. Annualized NOI yield = Total annualized NOI ÷ Total property acquisition price(The annualized NOI yield is calculated by taking into account the actual number of days of operation for each property.)
8. Depreciation and amortization includes amortization of intangible assets in addition to depreciation of property, plant and equipment.
9. “Leasable floor area at end of period” refers to the leasable floor area for each building 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 current fiscal period.
1. Internal Growth
Maintained high occupancy rates, increased rent levels, and heightened competitive advantages by carrying out valueenhancement work.
2. External Growth
Acquired one property from a third party through a negotiated transaction, at an acquisition price of 600 million yen,continuing the acquisitions of properties at reasonable prices despite inflated real estate market prices.
3. Finance
Reduced average interest rates by repayment and redemption of interest-bearing liabilities. Diversified method of financing
with the issuance of Advance Residence Investment Corporation (ADR)’s first ever private placement-type investment
corporation bond (1.0 billion yen).
By executing these initiatives, we were able to attain the following fiscal period results.

Item

Previous FP
Results

Initial forecast Note 1

Operating revenues

15,91815,742

Operating income

7,968

7,839

Ordinary income

6,642

6,615

Net income

6,642

Earnings Per Unit

4,920 yen

Dividend Per Unit

5,169 yen

6,615
Note 24,900 yen
5,149 yen

15th FP Results(January 2018)
15,903
8,019

6,798

6,798

5,035 yen

5,285 yen(million yen)

Difference from the previous FP Difference from the initial forecast
-15
+161
+50

+180

+155

+183

+155
Note 2+115 yen+183
Note 3+116 yen+135 yen Note 3+136 yen

Notes 1. The initial forecast refers to the earnings forecasts for the 14th Fiscal Period disclosed in the “Brief Summary of Kessan Tanshin” for the 14th Fiscal Period, dated September 6,
2017. The same applies hereafter unless otherwise specified.
2. Calculated by dividing net income by the number of units issued and outstanding as of the end of the fiscal period. The same applies hereafter unless otherwise specified.
3. Decimals are omitted from the EPU figures.

ADR achieved higher revenues and profits against the forecasts largely due to having generated rental revenue gains as
a result of higher-than-expected occupancy rates. When compared to the pervious fiscal period, despite a downturn inrevenues as a consequence of off-season decreases in key money and other such revenues, net income increased due todecreases in rental business expenses and interest payments. As a result, earnings per unit (EPU) amounted to 5,035 yen,which is 115 yen higher than in the previous fiscal period.
The dividend per unit (DPU), with the addition of the drawdown in the reserve for a temporary difference adjustment (RTA)of 249 yen per unit, amounted to 5,285 yen, which is 136 yen higher than the initial forecast and 116 yen higher than previous
fiscal period.
1. Internal Growth– Maintained high occupancy rates while increasing rents –As population inflows continue in the many regions where ADR invests, the market for rental apartments remains tight since
the number of rental housing starts remains limited. We recorded an occupancy rate of 97.2% as of January 31, 2018, andmaintained an average period occupancy rate of 96.9%, at a level on par with the record-high 97.0% average occupancy rateachieved in the previous fiscal period, even though it was a seasonally slower fiscal period (Note 4). Moreover, we successfullyincreased the overall portfolio rent level (Note 5) by 0.22% over rent levels of July 31, 2017, as a result of our efforts to proactively
raise rents upon contract renewal on top of raising rents upon tenant replacement.
– Strengthening competitiveness of our properties by carrying out value enhancement work –ADR systematically conducts large-scale renovations of its properties in order to maintain functionality and improvetheir appearance. In addition, especially on individual units of properties that have recently been subjected to large-scalerenovation, ADR carries out value enhancement work to maintain and enhance competitiveness in the leasing market. Value

2

I. Asset Management Reportenhancement work is implemented when tenants are being replaced and entails equipment upgrades and floor plan changes.
During the current fiscal period, we executed large-scale renovations on 4 properties and value enhancement works on
23 residential units. Of the residential units that underwent the value enhancement works, new rental contracts had beensigned for 16 units as of February 28, 2018. Those units saw a rise in rent of 17% on average over the previous rent. Goingforward, ADR will continue to endeavor to enhance the competitive strengths of its properties through such initiatives.
– Sustainability measures –ADR is working with the asset management company on sustainability measures in an aim to contribute to creating asustainable society and to increase the value to the unit-holders. More specifically, in order to promote each of the ESG(environmental, social and governance) sustainability goals, ADR has set up a sustainability committee to organize efforts
for such measures as installing environmentally friendly equipment at its properties, contributing to local communities byraising disaster-prevention awareness among its tenants, and introducing systematic training to employees of the asset
management company.
International assessment institutions have evaluated ADR with respect to such initiatives regarding sustainability, as follows.
We will keep promoting sustainability going forward.
• Since 2014, ADR has continually participated in the Global Real Estate Sustainability Benchmark (GRESB) which wasdeveloped mainly by European pension funds to evaluate the ESG performance of real estate companies and funds. ADR
received the GRESB’s “Green Star” rating in 2017.
• In 2017, ADR was 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 and is provided by MSCI, an investment information provider
that serves institutional investors. The index has been selected by the Government Pension Investment Fund (GPIF) as an
ESG benchmark for use in its passive investment strategy, and otherwise holds potential as a benchmark with respect todecisions on investment by institutional investors such as GPIF.
Notes 4. In Japan, the peak leasing season is between the months of February to April, during which time a relatively high number of lease contracts are normally concluded. Periods that do
not include those months are off-season periods, in which the rental business tends to be slower. For ADR, the leasing business during the fiscal period ending January 31 is slower
compared to the fiscal period ending July 31, which includes the peak leasing season.
5. Change in average per-unit rent between the start and end of the fiscal period, for all properties held throughout the fiscal period. The same applies hereafter.

2. External Growth– Consistently acquired prime properties –During the current fiscal period, ADR acquired just one property from a third party, at an acquisition price of 600 million
yen. The property is expected to generate stable rent revenue given its location, which is very close to Sapporo Station,
thereby offering the property good access to public transportation. We think that ADR has been able to acquire prime
properties, despite the challenging acquisition environment, by fully leveraging the market information network of the asset
management company.
3. Finance– Reducing average interest rates and trying a new financing method –Under its financing policy of extending remaining duration, fixing interest rates and diversifying maturities of interest-bearing
liabilities, ADR procured in total 12.3 billion yen (average initial duration of 8.0 years and average interest rate of 0.44% (Note 6))during this fiscal period, and managed to lower the average interest rate as of the end of the fiscal period to 0.90% (Note 7). As
such, we have managed to further strengthen our financial foundations. Meanwhile ADR’s credit rating outlook from Rating
and Investment Information, Inc. (R&I) was upgraded in November 2017 to A+ (positive) from A+ (stable) due to ADR’scontinued financial stability.
Also during this fiscal period, ADR issued its first ever private placement-type investment corporation bonds (1.0 billion yen),
thereby adding a new financing method to its financing repertoire.
Notes 6. The “average interest rate” is the weighted-average interest rate on loans and bonds as of their respective borrowing or issuance date.
7. The “average interest rate as of the end of the fiscal period” is the weighted-average interest rate on loans and bonds at the end of the fiscal period. If the interest rates on the debts
have been converted to 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

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
ADR will continue working to raise rents at the time of tenant replacements, as well as at the time of contract renewals,
comprehensively taking into account property characteristics, terms and conditions of individual contracts and other suchfactors. Furthermore, we will aim to generate greater profitability from each property by actively securing key money andimproving leasing-related income and expenditure. In addition, we will continue to enhance the competitive advantagesof our properties by systematically conducting timely large-scale renovations, as well as implementing value enhancement
work appropriate to the property’s characteristics.
b) External Growth
The market conditions will continue to be difficult for acquiring properties. We will strive to acquire properties that willcontribute 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 captured by leveraging information collected.
Meanwhile, we will continue to seek opportunities arising from the buoyant property market to replace properties in orderto improve the quality and profitability of ADR’s portfolio.
Between the end of this fiscal period and the fiscal reporting date, ADR decided to acquire two properties from the sponsor
pipeline at a total acquisition price of 5.5 billion yen, and to dispose of two properties from its portfolio whose total acquisition
price was 2.4 billion yen to third parties.
ADR decided to acquire the two properties because of their potential for generating consistent revenue, particularly giventhat both properties were built recently and have good access to transportation given their close proximity to railway
stations. On the other hand, the decision to sell was made because both of the properties to be disposed of were older than
the average age of the portfolio and the potential to improve profitability were low. As a result of this disposition, there will
be only three properties left in the portfolio with unrealized losses against their appraisal values on January 31, 2018, whichis the last day of this fiscal period.
This property replacement will contribute to heightening the value to unit-holders by bringing about growth in assets undermanagement and ensuring steady earnings. ADR will continue to maintain its external growth policies, which are aimed atrealizing a stable distribution of earnings over the long term.
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 in equal amounts or more every fiscal period within 50 years (Note 8), startingfrom the fiscal period ending January 2017.
In case the DPU falls below 4,500 yen even with the dividend supplement, draw down will be increased to ensure a DPU of
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. Asset Management Report
4 Equity Finances
The following are changes in paid-in capital and total number of units issued and outstanding over the last 5 years.
Date
February 1, 2013
February 27, 2013
February 3, 2014
February 26, 2014
September 23, 2016
October 19, 2016
1.
2.
3.
4.
5.
6.

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

Paid-in Capital (million yen)
Notes
Increase
Balance
21,667
101,7541
802
102,557
2
11,967
114,5243
412
114,936
4
12,115127,0525
637
127,6906

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

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

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

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

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

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

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

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

Number of units
held (units)

Percentage ofissued units (%)

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

337,447

24.99

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

174,816

12.94

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

57,496

4.25

42,4593.14

34,8002.57

20,647

1.52

20,223

1.49

18,252

1.35

14,451

1.07

14,033

1.03

734,624

54.41

Address

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
Mizuho Securities Co., Ltd.
State Street Bank - West Pension Fund Clients Exempt
Trust & Custody Services Bank, Ltd.
(Money Trust Tax Account)
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
State Street Bank West Clients Treaty
Total

Office Tower Z, Harumi Island Triton
Square, 1-8-12 Harumi, Chuo-ku, Tokyo
2-5-1 Kita-Aoyama, Minato-ku, Tokyo
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
2-5-2, Marunouchi, Chiyoda-ku, Tokyo
1776 Heritage Drive, North Quincy,
MA 02171 U.S.A.

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 January 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.

Yoshitsugu Oba

Audit & Supervisory Board Member,
Mitsubishi Motors Corporation

Title
Executive
Director
Supervisory
Director
Supervisory
Director
Independent
Auditor

Name

Note 2

3,609 Note 3

Deloitte Touche Tohmatsu LLC

16,500Notes 1. Kenji Kousaka concurrently serves as president of ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM) and executive director of ADR. The
Commissioner of the Financial Services Agency was notified of the concurrent holding of positions on March 5, 2008 pursuant to the provisions of Article 31-4, Paragraph 4 of the
Financial Instruments and Exchange Act (as of the date of this document, Article 31-4, Paragraph 1 of the said Act) prior to its revision made by the provisions of Article 1 of the
Act for Amendment to the Financial Instruments and Exchange Act. (Act No. 65 of 2008).
2. The executive director does not receive compensation from ADR.
3 The compensation paid to the independent auditor includes compensation for services other than those prescribed in Article 2, Paragraph 1 of the Certified Public Accountants
Act (5,000 thousand yen).

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

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

6

I. Asset Management Report
Real Estate Portfolio
Real Estate Portfolio
The following are the itemized assets held by ADR as of January 31, 2018.

Property
no.

P-2
P-3

Name of real estate

RESIDIA Shimazuyama
RESIDIA Nakameguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,363

3,190

1

96.7 88,814

0.6

197.2 89,224

0.6

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,413

2,090

1

100.0 47,2560.3

1100.0 47,256

0.3

1,172

1,270

1

96.8 35,474

0.2

193.3 34,829

0.2

P-4

RESIDIA Setagaya-Tsurumaki

Setagaya-ku, Tokyo

Beneficiary interests
in trust

P-7

RESIDIA Ikejiriohashi

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,159

1,420

1

92.9 36,646

0.2

197.8 37,074

0.2

RESIDIA Kudanshita

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,027

2,620

1

98.9 72,959

0.5

198.7 72,455

0.5P-10 RESIDIA Hatagaya

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,065

1,210

1

100.0 31,336

0.2

194.7 32,090

0.2

P-13

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,060

1,280

1

96.3 33,841

0.2

192.7 33,256

0.2

P-14 RESIDIA Kita-Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

2,534

2,990

1

100.0 75,574

0.5

1100.0 75,455

0.5

P-15

RESIDIA Yoyoginomori

Shibuya-ku, Tokyo

Beneficiary interests
in trust

706

723

1

92.0 19,012

0.1

196.9 19,413

0.1

P-16 RESIDIA Shinjuku-East III

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

720

915

1

100.0 24,2370.2

1100.0 24,051

0.2

Shibuya-ku, Tokyo

Beneficiary interests
in trust

562

726

1

100.0 17,944

0.1

1100.0 17,944

0.1

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,303

1,700

1

88.6 44,364

0.3

193.5 42,526

0.3

P-22 RESIDIA Shinjuku-East

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

926

1,150

1

94.0 30,116

0.2

1100.0 30,753

0.2P-23 RESIDIA Kanda-Iwamotocho

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,399

2,090

1

100.0 57,895

0.4

1

98.1 57,950

0.4

P-24 RESIDIA Azabujuban II

Minato-ku, Tokyo

Beneficiary interests
in trust

887

1,050

1

85.5 27,377

0.2

195.0 27,040

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

573

688

1

100.0 20,246

0.1

183.9 18,472

0.1

P-26 RESIDIA Meguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

738

723

1

92.1 22,921

0.1

1

92.1 20,218

0.1

P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,524

2,110

1

95.4 54,159

0.3

194.3 54,271

0.3

Minato-ku, Tokyo

Beneficiary interests
in trust

1,799

2,250

1

94.7 64,206

0.4

191.7 59,085

0.4

Setagaya-ku, Tokyo

Beneficiary interests
in trust

309

389

1

93.6 10,952

0.1

190.3 10,487

0.1

P-32 RESIDIA Yoyogi

Shibuya-ku, Tokyo

Beneficiary interests
in trust

308

398

1

80.7 10,326

0.1

1

82.0

9,423

0.1

P-33 RESIDIA Nishi-Shinjuku

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

344

439

1

90.0 12,0840.1

191.3 11,213

0.1

P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

Beneficiary interests
in trust

265

340

1

83.1

8,879

0.1

1

93.8

8,539

0.1

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

868

1,120

1

98.0 33,1960.2

193.8 33,011

0.2P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,217

2,820

1

95.0 71,861

0.5

198.7 73,920

0.5

P-9

RESIDIA Sakurajosui

Leopalace Udagawacho
P-19
Mansion
P-21

RESIDIA Shinjuku-East II

P-30 Pianetta Shiodome
P-31

7

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Komazawadaigaku

P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,095

1,430

1

97.6 43,618

0.3

195.2 42,010

0.3P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,916

2,370

1

99.1 69,781

0.4

198.3 68,992

0.4

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,142

1,340

1

85.8 36,835

0.2

192.7 33,659

0.2P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,241

1,600

1

100.0 41,776

0.3

195.1 41,485

0.3

P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,099

1,500

1

100.0 41,4120.3

1100.0 40,558

0.3

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

867

1,090

1

94.5 31,097

0.2

198.2 31,256

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

990

1,300

1

90.4 35,463

0.2

197.5 34,124

0.2

Propertyno.

Name of real estate

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,028

1,240

1

85.6 32,461

0.2

197.1 35,229

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,148

2,720

1

100.0 77,1370.5

197.0 76,652

0.5

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,424

3,950

1

94.1 106,078

0.7

198.5 106,394

0.7

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,102

1,410

1

100.0 40,918

0.3

194.7 40,479

0.3

P-50 RESIDIA Nishi-Azabu

Minato-ku, Tokyo

Beneficiary interests
in trust

6,425

7,840

1

97.6 213,820

1.3

198.8 214,622

1.3

P-51

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,984

2,200

1

92.6 55,2280.3

194.6 58,181

0.4

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,330

3,030

1

88.3 77,437

0.5

1100.0 77,642

0.5

3,590

4,470

1

93.0 117,315

0.7

1

95.1 117,811

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

14,996 18,300

1100.0 455,9642.9

1100.0 456,793

2.9

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,527

3,460

1

97.2 88,746

0.6

197.4 89,490

0.6

P-58 RESIDIA Minami-Aoyama

Minato-ku, Tokyo

Real estate

698

486

1

100.0 15,791

0.1

174.7 16,511

0.1

P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,539

2,070

1

91.3 56,806

0.4

198.0 57,139

0.4

P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,342

1,470

1

100.0 39,242

0.2

196.4 41,202

0.3

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,939

2,200

1

97.5 58,469

0.4

190.5 56,585

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

6,146

6,370

1

94.6 196,088

1.2

194.9 195,396

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,204

1,540

1

95.4 39,554

0.2

195.4 40,216

0.3

P-64 RESIDIA Nakanobu

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,761

2,300

1

98.6 64,187

0.4

198.3 64,386

0.4P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,545

1,770

1

100.0 49,551

0.3

1100.0 49,276

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,676

1,890

1

93.8 51,595

0.3

198.0 52,080

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,088

1,440

1

100.0 40,539

0.3

1100.0 39,565

0.2

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,218

1,500

1

94.3 40,366

0.3

197.7 39,432

0.2

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,712

2,170

1

96.9 58,543

0.4

190.4 58,496

0.4

P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

873

1,010

1

100.0 28,531

0.2

1100.0 29,213

0.2

P-72 RESIDIA Mejiro-Otomeyama

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

916

1,100

1

100.0 33,659

0.2

190.0 31,475

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,407

5,740

1

93.2 163,709

1.0

195.9 167,722

1.1

P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

880

963

1

94.9 29,018

0.2

1100.0 28,365

0.2

Meguro-ku, Tokyo

Beneficiary interests
in trust

5,049

6,000

1

100.0 156,387

1.0

195.6 153,634

1.0Minato-ku, Tokyo

Beneficiary interests
in trust

8,928 11,100

195.8 313,834

2.0

1

96.1 317,994

2.0

P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

845

1,040

1

94.6 29,471

0.2

1100.0 29,534

0.2

P-81 Windsor House Hiroo

Shibuya-ku, Tokyo

Real estate andleasehold rights toreal estate

1,634

1,490

1

91.5 44,792

0.3

1100.0 50,069

0.3

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,372

1,630

1

88.5 44,645

0.3

196.2 44,494

0.3

Setagaya-ku, Tokyo

Beneficiary interests
in trust

828

1,200

1

100.0 28,095

0.2

1100.0 28,095

0.2

Minato-ku, Tokyo

Beneficiary interests
in trust

2,329

3,040

1

97.7 82,659

0.5

197.4 83,274

0.5

P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,993

2,530

1

97.4 65,690

0.4

194.7 64,784

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,548

1,840

1

98.7 50,323

0.3

197.3 49,367

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,333

4,400

1

96.0 114,794

0.7

197.3 116,585

0.7

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,708

4,590

1

98.6 122,7950.8

199.0 119,360

0.8P-75 RESIDIA Yutenji
P-76

Park Tower Shibaura Bayward
Urban Wing

P-85 RESIDIA Komazawa
P-86 RESIDIA Shibaura KAIGAN

P-90 RESIDIA Sasazuka II

8

I. Asset Management Report

Propertyno.

Name of real estate

Meguro-ku, Tokyo

Beneficiary interests
in trust

957

1,310

1

97.5 33,273

0.2

197.0 33,528

0.2

Setagaya-ku, Tokyo

Beneficiary interests
in trust

781

960

1

89.3 25,5840.2

1100.0 24,985

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,233

1,670

1

97.6 42,863

0.3

196.8 43,185

0.3

P-94 RESIDIA Omori II

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,607

2,120

1

98.0 56,452

0.4

1

96.1 55,650

0.3

P-95 RESIDIA Shirokane-Takanawa

Minato-ku, Tokyo

Beneficiary interests
in trust

1,473

1,950

1

98.7 49,615

0.3

1100.0 50,393

0.3

P-96 RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

3,781

4,320

1

97.3 119,611

0.8

198.6 116,219

0.7

P-97 RESIDIA Nakameguro II

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,120

1,430

1

98.0 36,670

0.2

198.0 36,743

0.2

P-98 Artis Court Minamiaoyama

Minato-ku, Tokyo

Beneficiary interests
in trust

1,733

1,930

1

100.0 53,5500.3

190.8 54,890

0.3

P-99 RESIDIA Yotsuya Sanchome

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,090

2,770

1

97.7 83,1800.5

196.3 83,9780.5

P-100 RESIDIA Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

946

1,080

1

95.6 28,943

0.2

1100.0 28,552

0.2

P-101

Shibuya-ku, Tokyo

Real estate

651

744

1

100.0 19,524

0.1

195.9 18,722

0.1

RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

725

860

1

100.0 25,2980.2

1100.0 24,639

0.2

RESIDIA Minami Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,204

1,400

1

96.6 36,216

0.2

1100.0 39,142

0.2

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

P-102
P-103

RESIDIA Ebisu III

P-104 Chester Court Ochanomizu

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,175

3,790

1

97.8 106,012

0.7

199.3 108,096

0.7

P-105

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,304

1,580

1

98.3 42,515

0.3

197.7 43,110

0.3

P-106 RESIDIA Shinagawa

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

999

1,190

1

93.1 30,947

0.2

1100.0 30,816

0.2

P-107

Shibuya-ku, TokyoRESIDIA Kanda-Iwamotocho II

RESIDIA Yoyogi II

P-108 RESIDIA Nakanobu II

898

956

1

93.0 24,302

0.2

196.5 24,856

0.2

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

943

1,010

1

96.0 26,713

0.2

195.7 26,051

0.2

845

935

1

94.6 25,635

0.2

1100.0 24,695

0.2Real estate

P-109 RESIDIA Ochanomizu II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

P-110

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,193

1,310

1

93.7 35,0140.2

1100.0 33,023

0.2

1,566

2,530

1

100.0 70,168

0.4

196.9 68,570

0.4

RESIDIA Mishuku

C-1

RESIDIA Mitsukoshimae

Chuo-ku, Tokyo

Beneficiary interests
in trust

C-2

RESIDIA Kamata

Ota-ku, Tokyo

Beneficiary interests
in trust

2,108

3,550

1

97.3 106,457

0.7

198.7 98,118

0.6

C-3

RESIDIA Ikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,393

1,790

1

95.2 50,785

0.3

196.8 51,922

0.3

1,555

2,220

1

100.0 57,439

0.4

1100.0 59,094

0.4

C-4

RESIDIA Bunkyo-Hongo

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

C-5

RESIDIA Asakusabashi

Taito-ku, Tokyo

Beneficiary interests
in trust

933

1,420

1

97.0 39,711

0.2

197.0 40,693

0.3

C-6

Maison Eclairee Ekoda

Nerima-ku, Tokyo

Beneficiary interests
in trust

909

1,100

1

90.5 36,451

0.2

197.9 35,490

0.2

2,852

3,730

1

92.6 98,607

0.6

198.5 99,965

0.6

C-7

RESIDIA Ueno-Okachimachi

Taito-ku, Tokyo

Beneficiary interests
in trust

C-8

RESIDIA Bunkyo-Hongo II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,537

1,930

1

97.8 50,310

0.3

1100.0 52,4800.3

Sumida-ku, Tokyo

Beneficiary interests
in trust

847

1,210

1

100.0 33,1450.2

1100.0 33,227

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

5,030

5,590

1

96.4 147,1180.9

198.9 149,284

0.9

C-9

RESIDIA Ryogoku

C-10 RESIDIA Higashi-Ginza
C-12

RESIDIA Nihonbashi-NingyochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,956

3,770

1

99.4 107,559

0.7

198.9 99,536

0.6

C-13

RESIDIA Omori-Higashi

Ota-ku, Tokyo

Beneficiary interests
in trust

1,833

2,030

1

95.7 56,633

0.4

197.9 57,350

0.4

C-15

RESIDIA Kinshicho

Sumida-ku, Tokyo

Beneficiary interests
in trust

4,004

4,460

1

99.1 120,964

0.8

197.2 120,937

0.8

Taito-ku, Tokyo

Beneficiary interests
in trust

812

935

1

96.4 27,270

0.2

196.5 27,596

0.2

C-16 RESIDIA Negishi

9

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Propertyno.

Name of real estate

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2Chuo-ku, Tokyo

Beneficiary interests
in trust

1,809

2,360

1

96.2 65,088

0.4

198.4 65,132

0.4

Toshima-ku, Tokyo

Beneficiary interests
in trust

540

706

1

97.9 22,0670.1

195.0 21,388

0.1

C-19 RESIDIA Shin-nakano

Nakano-ku, Tokyo

Beneficiary interests
in trust

352

509

1

83.4 14,976

0.1

190.3 14,217

0.1

C-21

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

922

1,220

1

94.5 34,7750.2

1100.0 33,998

0.2

C-17

RESIDIA Shinkawa

C-18 RESIDIA Kamiikebukuro

RESIDIA Bunkyo-Yushima II

C-22 RESIDIA Tsukiji

Chuo-ku, Tokyo

Real estate

1,323

1,850

1

100.0 52,4810.3

1100.0 52,248

0.3

Beneficiary interests
in trust

1,799

2,140

1

98.2 62,454

0.4

193.5 61,466

0.4

C-23 RESIDIA Sasazuka

Suginami-ku, Tokyo

C-24 RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,119

1,480

1

100.0 38,8470.2

1100.0 51,184

0.3

C-25 RESIDIA Tamagawa

Ota-ku, Tokyo

Beneficiary interests
in trust

1,174

1,660

1

98.0 47,285

0.3

193.4 46,328

0.3

C-26 RESIDIA Korakuen

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

547

764

1

96.7 21,444

0.1

197.2 21,460

0.1

C-27 RESIDIA Ginza-Higashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,834

2,510

1

97.3 67,784

0.4

196.5 67,186

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

790

1,040

1

100.0 33,709

0.2

1100.0 33,711

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

974

1,230

1

97.1 36,374

0.2

198.3 37,020

0.2

C-31

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,016

1,270

1

94.9 35,828

0.2

197.7 37,100

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,272

1,640

1

97.7 47,1140.3

193.0 47,378

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,294

2,940

1

97.4 81,413

0.5

1100.0 82,364

0.5

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,235

2,640

1

95.5 72,959

0.5

199.3 74,800

0.5Bunkyo-ku, Tokyo

Beneficiary interests
in trust

3,140

3,970

1

90.0 113,044

0.7

196.3 111,998

0.7

C-36 RESIDIA Bunkyo-Sengoku

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

632

872

1

94.3 26,080

0.2

190.9 24,881

0.2

C-37 RESIDIA Bunkyo-Yushima

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

998

1,340

1

98.1 38,750

0.2

195.3 36,306

0.2

C-38 RESIDIA Ikegami

Ota-ku, Tokyo

Beneficiary interests
in trust

344

413

1

100.0 13,516

0.1

193.9 13,016

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

501

763

1

91.6 21,1710.1

192.9 21,667

0.1

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,347

1,680

1

94.8 47,598

0.3

197.9 45,796

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

877

1,140

1

98.3 37,853

0.2

198.3 37,844

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,248

1,580

1

97.7 43,662

0.3

1100.0 43,940

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,755

2,110

1

100.0 58,1050.4

198.7 58,639

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,205

1,440

1

91.7 41,726

0.3

196.6 43,054

0.3

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,196

1,540

1

96.4 44,757

0.3

198.5 44,168

0.3

C-46 RESIDIA Mejiro

Toshima-ku, Tokyo

Beneficiary interests
in trust

6,101

7,850

1

96.9 226,269

1.4

198.6 231,483

1.5

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

661

818

1

93.1 27,2240.2

1100.0 26,659

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

C-35 RESIDIA Bunkyo-Otowa

C-45 RESIDIA Shinkawa II

Real estate

5,096

6,940

1

97.0 192,492

1.2

197.4 192,783

1.2

3,619

5,430

1

95.7 150,725

0.9

196.6 149,192

0.9

C-49 RESIDIA Suginami-Honancho

Suginami-ku, Tokyo

Beneficiary interests
in trust

C-50 RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

Beneficiary interests
in trust

849

1,220

1

100.0 29,739

0.2

1100.0 29,739

0.2

Koto-ku, Tokyo

Beneficiary interests
in trust

1,891

2,930

1

98.7 79,844

0.5

194.2 77,956

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,091

1,530

1

100.0 42,8810.3

1100.0 38,619

0.2

RESIDIA BunkyoHonkomagome

Bunkyo-ku, Tokyo

Real estate

2,282

2,970

1

96.8 81,009

0.5

198.2 82,197

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,471

3,590

1

97.9 92,838

0.6

198.7 91,969

0.6

C-51

RESIDIA Kiba

C-52 RESIDIA Bunkyo-Yushima III
C-53

10

I. Asset Management Report

Propertyno.

Name of real estate

Location

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

Beneficiary interests
in trust

2,426

3,530

1

98.9 168,527

1.1

197.3 163,180

1.0Real estate

1,808

2,270

1

98.1 64,444

0.4

195.2 60,700

0.4

967

1,310

1

94.1 38,665

0.2

195.6 35,756

0.2

C-57 RESIDIA Monzennakacho

Koto-ku, Tokyo

Beneficiary interests
in trust

C-58 RESIDIA Ochanomizu

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,040

2,860

1

96.2 75,793

0.5

197.9 77,338

0.5

C-59 RESIDIA Omori

Ota-ku, Tokyo

Beneficiary interests
in trust

1,124

1,460

1

98.7 41,8380.3

1100.0 42,541

0.3

C-60 RESIDIA Nakamurabashi

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,039

1,340

1

98.7 38,742

0.2

194.6 37,619

0.2

C-61 RESIDIA Kachidoki

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,754

2,410

1

92.8 65,1580.4

1100.0 64,452

0.4

C-62 RESIDIA Bunkyo-Otowa II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,281

2,960

1

98.3 82,775

0.5

197.8 81,007

0.5

C-63 RESIDIA Kinshicho III

Koto-ku, Tokyo

Beneficiary interests
in trust

651

833

1

100.0 25,4840.2

1100.0 25,414

0.2

Ota-ku, Tokyo

Beneficiary interests
in trust

933

1,220

1

100.0 34,403

0.2

190.9 33,589

0.2

7,950 11,400

198.0 719,010

4.5

1

98.1 728,073

4.6

C-64 RESIDIA Kamata III

C-65 RESIDIA TOWER Kamiikebukuro Toshima-ku, Tokyo

11

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

C-66 RESIDIA Takashimadaira

Itabashi-ku, Tokyo

C-67 RESIDIA Shimura-Sakaue

Beneficiary interests
in trust
Real estate

523

617

1

100.0 16,193

0.1

1100.0 16,195

0.1

Itabashi-ku, Tokyo

Real estate

607

700

1

100.0 18,084

0.1

1100.0 18,084

0.1

C-68 RESIDIA Shimura-Sakaue II

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,130

1,360

1

100.0 35,3770.2

1100.0 35,381

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

431

502

1

100.0 13,6080.1

1100.0 13,617

0.1

C-70 RESIDIA Ikebukuro West

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,115

1,350

1

94.3 41,687

0.3

194.6 41,880

0.3

C-71

Koto-ku, Tokyo

Beneficiary interests
in trust

1,281

1,570

1

100.0 44,047

0.3

196.7 43,229

0.3

C-72 RESIDIA Machiya

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,187

1,340

1

100.0 41,3540.3

192.0 41,698

0.3

C-73 RESIDIA Ueno-Ikenohata

Taito-ku, Tokyo

Beneficiary interests
in trust

1,779

2,030

1

98.8 53,941

0.3

198.8 55,838

0.4

C-74 RESIDIA Nerima

Nerima-ku, Tokyo

Beneficiary interests
in trust

514

646

1

100.0 18,2250.1

1100.0 18,060

0.1

C-75 RESIDIA Higashi-Nihonbashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

399

479

1

100.0 15,1500.1

1100.0 14,596

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

691

806

1

100.0 22,2220.1

1100.0 22,131

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, TokyoRESIDIA Ojima

Real estate

490

552

1

100.0 13,620

0.1

1100.0 13,620

0.1

1,359

1,520

1

92.5 43,887

0.3

191.8 42,335

0.3

C-78 RESIDIA Minamiyukigaya

Ota-ku, Tokyo

Beneficiary interests
in trust

C-79 RESIDIA Akihabara

Taito-ku, Tokyo

Beneficiary interests
in trust

997

1,190

1

95.2 33,462

0.2

197.6 34,202

0.2

C-80 RESIDIA Asakusa-Azumabashi

Sumida-ku, Tokyo

Beneficiary interests
in trust

895

1,130

1

98.3 32,572

0.2

196.7 33,076

0.2

C-81 RESIDIA Omori III

Ota-ku, Tokyo

Beneficiary interests
in trust

1,422

1,640

1

96.2 42,8010.3

195.8 40,823

0.3

C-82

RESIDIA Nihonbashi-BakurochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,018

2,410

1

94.2 60,326

0.4

196.9 60,338

0.4

C-83

RESIDIA Nihonbashi-BakurochoIII

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,870

2,250

1

95.8 64,557

0.4

1100.0 60,940

0.4

C-84 RESIDIA Bunkyo-Hongo III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,698

1,870

1

98.4 48,926

0.3

193.5 47,936

0.3

C-85 RESIDIA Shin-Okachimachi II

Taito-ku, Tokyo

Beneficiary interests
in trust

4,782

5,290

1

99.2 141,1790.9

197.7 140,079

0.9

C-86 RESIDIA Kameido

Koto-ku, Tokyo

Beneficiary interests
in trust

3,085

3,280

1

96.3 47,062

0.3

197.8 85,048

0.5

C-87 RESIDIA Koenji

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,428

1,520

1

90.2 24,647

0.2

197.6 40,775

0.3

S-2

Kawaguchi-shi,
Saitama

Beneficiary interests
in trust

700

746

1

97.4 28,329

0.2

192.3 27,703

0.2

Chester House KawaguchiPropertyno.

Name of real estate

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

S-4

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

1,020

1,190

1

95.4 42,5340.3

195.9 43,264

0.3

S-5

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,767

1,990

1

100.0 61,3590.4

1100.0 61,470

0.4

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,069

1,160

1

97.8 34,910

0.2

1

98.1 34,459

0.2

670

710

1

100.0 26,182

0.2

1100.0 26,182

0.2

S-7

RESIDIA Chofu

S-11

Tokyo Student-House WAKO

Wako-shi, Saitama

Beneficiary interests
in trust

S-12

RESIDIA Kokubunji

Kokubunji-shi, Tokyo

Beneficiary interests
in trust

501

628

1

96.8 20,661

0.1

1

100.0 18,470

0.1

RESIDIA Yokohama-Kannai

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,519

1,890

1

94.1 54,320

0.3

1

95.1 54,997

0.3

RESIDIA Okurayama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

711

914

1

100.0 26,8870.2

1100.0 26,865

0.2

S-16 RESIDIA Musashikosugi

Kawasaki-shi,
Kanagawa

Real estate

1,486

1,890

1

97.0 57,960

0.4

198.8 57,099

0.4

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,534

3,150

1

100.0 93,661

0.6

1100.0 93,383

0.6

Musashino-shi,Tokyo

Beneficiary interests
in trust

1,429

1,680

1

95.9 48,771

0.3

195.9 47,270

0.3

Pacific Royal Court Minatomirai
Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

11,701 16,100

1100.0 574,910

3.6

1100.0 568,349

3.6

S-22 Life & Senior House Kohoku II

Yokohama-shi,
Kanagawa

Real estate

1,584

2,200

1

100.0 71,3060.4

1100.0 71,074

0.4

S-23 College Court Tanashi

Nishi-Tokyo-shi,Tokyo

Beneficiary interests
in trust

764

1,110

1

100.0 32,7600.2

1100.0 32,760

0.2

S-24 RESIDIA Urayasu

Urayasu-shi, Chiba

Beneficiary interests
in trust

2,071

2,880

1

97.7 85,767

0.5

199.4 83,453

0.5

S-25 RESIDIA Minami-Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

818

1,060

1

95.3 36,457

0.2

1100.0 33,565

0.2

S-26 RESIDIA Urayasu II

Urayasu-shi, Chiba

Beneficiary interests
in trust

798

1,020

1

97.3 33,167

0.2

198.6 31,765

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

755

957

1

97.3 36,7200.2

196.0 33,146

0.2

S-28 RESIDIA Kawasaki

Kawasaki-shi,
Kanagawa

Beneficiary interests
in trust

1,619

2,170

1

99.1 63,699

0.4

192.3 61,700

0.4

S-29 Cocofump Hiyoshi

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,001

1,180

1

100.0 45,0000.3

1100.0 45,000

0.3

S-30 RESIDIA Sagamihara

Sagamihara-shi,
Kanagawa

Beneficiary interests
in trust

1,064

1,280

1

100.0 43,607

0.3

1100.0 43,352

0.3

S-31

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

781

1,130

1

100.0 37,5880.2

1100.0 37,707

0.2Real estate

642

695

1

100.0 24,555

0.2

194.3 23,498

0.1

S-14
S-15

S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

RESIDIA Yokohama-Bashamichi

S-32 RESIDIA Hon-Atsugi

Atsugi-shi,
Kanagawa

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

667

691

1

100.0 20,1270.1

1100.0 20,127

0.1

1,479

1,660

1

100.0 60,491

0.4

1100.0 60,750

0.4

R-2

RESIDIA Imadegawa

Kyoto-shi, Kyoto

Beneficiary interests
in trust

R-4

RESIDIA Higashizakura

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,029

1,410

1

90.3 45,248

0.3

193.5 45,179

0.3

Kameyama-shi, Mie

Beneficiary interests
in trust

1,524

1,150

1

100.0 60,476

0.4

1100.0 60,377

0.4

885

916

1

92.3 30,700

0.2

194.9 30,512

0.2

R-5

RESIDIA Kameyama

R-6

RESIDIA Ryokuchikoen

Toyonaka-shi, Osaka

Beneficiary interests
in trust

R-8

RESIDIA Kobe Port Island

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,422

4,070

1

100.0 125,5000.8

1100.0 125,510

0.8Real estate

1,228

1,440

1

99.4 52,296

0.3

198.8 51,529

0.3

844

1,140

1

88.9 34,727

0.2

197.6 36,277

0.2

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,949

2,810

1

98.5 90,730

0.6

197.5 88,799

0.6

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

869

916

1

99.0 38,515

0.2

196.4 37,286

0.2

R-11

12

I. Asset Management Report

Propertyno.

Name of real estate

R-14 RESIDIA Utsubokoen

13

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Osaka-shi, Osaka

Real estate

1,045

1,530

1

96.9 47,611

0.3

187.0 45,372

0.3

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,777

2,450

1

95.5 77,721

0.5

1

98.1 77,105

0.5

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,142

3,050

1

96.1 98,419

0.6

192.5 96,123

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,138

1,420

1

98.5 66,466

0.4

198.4 65,729

0.4

R-19 RESIDIA Tenjin-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

831

1,180

1

96.4 39,516

0.2

194.6 39,415

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

319

394

1

93.9 15,820

0.1

197.5 15,760

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

604

800

1

100.0 27,254

0.2

1100.0 27,699

0.2

R-24 RESIDIA Minami-Ichijo

Sapporo-shi,
Hokkaido

Real estate

1,460

1,920

1

98.9 75,961

0.5

198.9 75,791

0.5

R-25 RESIDIA Odori-Nishi

Sapporo-shi,
Hokkaido

Real estate

1,199

1,370

1

92.2 57,832

0.4

195.0 55,333

0.3

R-26 RESIDIA Kita-Sanjo

Sapporo-shi,
Hokkaido

Real estate

998

1,380

1

96.9 50,267

0.3

199.3 50,270

0.3

R-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

754

906

1

97.0 32,759

0.2

1100.0 32,436

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

645

757

1

96.1 32,8460.2

1100.0 33,792

0.2

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,321

4,240

1

90.7 142,5560.9

192.0 137,437

0.9

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

949

1,200

1

92.4 44,938

0.3

198.4 45,311

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

718

850

1

100.0 30,026

0.2

195.9 29,020

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,834

2,460

1

96.7 94,894

0.6

195.5 93,643

0.6

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,093

1,600

1

98.1 47,754

0.3

194.9 46,695

0.3

R-36 RESIDIA Hisaya-Oodori

Nagoya-shi, Aichi

Beneficiary interests
in trust

633

933

1

95.2 29,760

0.2

197.1 29,625

0.2

R-37 RESIDIA Sendai-Miyamachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

505

739

1

100.0 25,951

0.2

1100.0 24,023

0.2

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

474

668

1

100.0 21,839

0.1

1100.0 21,842

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,394

1,850

1

94.6 59,1080.4

195.3 57,792

0.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

1,000

1,350

1

98.7 43,499

0.3

196.8 42,452

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

1,016

1,260

1

92.7 39,488

0.2

191.8 37,413

0.2

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,267

3,080

1

97.1 106,754

0.7

196.2 105,604

0.7

R-43 RESIDIA Tsurumai

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,156

1,650

1

96.1 56,190

0.4

193.8 51,863

0.3

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,617

3,730

1

92.2 116,919

0.7

195.3 112,300

0.7

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

866

1,070

1

100.0 42,7540.3

196.7 42,061

0.3

R-46 RESIDIA Shinsaibashi West

Osaka-shi, Osaka

Beneficiary interests
in trust

1,885

2,410

1

92.7 73,484

0.5

196.6 72,118

0.5

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

951

1,200

1

94.2 39,938

0.3

193.2 39,342

0.2

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,440

2,110

1

96.2 75,868

0.5

197.9 75,597

0.5

R-49 RESIDIA Gosho-Higashi

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,204

1,550

1

90.1 47,383

0.3

195.7 45,090

0.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

859

1,010

1

95.0 36,1230.2

197.5 34,082

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,247

4,730

1

96.2 152,592

1.0

198.2 155,748

1.0R-52 RESIDIA TOWER Sendai

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,740

2,040

1

95.7 71,710

0.5

191.7 68,600

0.4

R-53 RESIDIA Higashizakura II

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,839

3,660

1

91.2 122,0000.8

184.6 108,905

0.7

Propertyno.

Name of real estate

Location

14th (Feb. 1, 2017 ~ Jul. 31, 2017)15th (Aug. 1, 2017 ~ Jan. 31, 2018)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType of
rate
at
end
of
revenuerate at end of revenueof period at end of
of
total
rent
at
end
of
of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,764

2,410

1

97.8 85,561

0.5

196.0 83,153

0.5

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,043

1,350

1

92.9 42,4700.3

198.1 44,070

0.3

R-56 RESIDIA Sendai-Honcho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,103

1,630

1

98.3 53,585

0.3

198.3 53,781

0.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

581

874

1

98.8 31,2150.2

193.6 30,037

0.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,053

1,360

1

100.0 48,573

0.3

1100.0 48,340

0.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,770

3,500

1

100.0 90,377

0.6

1100.0 90,409

0.6

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

846

1,010

1

100.0 35,2240.2

1100.0 35,166

0.2

R-61 RESIDIA Kyoto Okazaki

Kyoto-shi, Kyoto

Beneficiary interests
in trust

236

313

1

100.0

9,770

0.1

1

100.0

9,781

0.1

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,099

1,420

1

100.0 43,840

0.3

1100.0 43,992

0.3

R-63 RESIDIA Kita-Nijyo-East II

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

549

738

1

94.0 26,170

0.2

193.2 25,939

0.2

R-64 RESIDIA Takamiya

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

499

581

1

89.1 19,1350.1

198.4 20,242

0.1

R-65 RESIDIA Soen

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

394

541

1

98.3 21,230

0.1

198.4 21,752

0.1

R-66 RESIDIA Tenjin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,142

1,320

1

93.2 41,1620.3

1100.0 43,573

0.3

R-67 RESIDIA Yakuin-Oodori

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,141

1,320

1

96.7 42,449

0.3

198.9 44,295

0.3

R-68 RESIDIA Hakata II

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,377

1,580

1

99.3 49,938

0.3

194.2 51,471

0.3

R-69 RESIDIA Kego

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

851

1,110

1

98.7 36,022

0.2

198.9 35,602

0.2

R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

954

1,110

1

93.6 35,4910.2

189.0 34,026

0.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

942

958

1

89.6 29,161

0.2

189.6 28,026

0.2

R-72 RESIDIA Senri-Fujishirodai

Suita-shi, Osaka

Beneficiary interests
in trust

1,545

1,590

1

100.0 16,719

0.1

1100.0 45,130

0.3

R-73 RESIDIA Senri-Banpakukoen

Suita-shi, Osaka

Beneficiary interests
in trust

2,263

2,320

1

100.0 64,2250.4

1100.0 64,549

0.4

R-74 RESIDIA Sapporo-eki North Note 53-4-1 and 2 Kita-JyuJyo-Nishi, Kita-ku,
Sapporo, Hokkaido

Real estate

744

706

–

–

–

1

76.4

1,946

0.0

423,470 533,361

260

96.9 15,918,444

100.0

261

97.2 15,903,228

100.0

R-54 RESIDIA Tsutsujigaoka
R-55 RESIDIA Kobe-Motomachi

Total

–

Notes 1

“Appraisal value at end of period” is the appraisal value or survey-based value, pursuant to ADR’s Articles of Incorporation and the “Regulations Concerning Accounting ofInvestment Corporations” issued by the Cabinet Office, provided by a real estate appraiser as of January 31, 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 January 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 13 master lessees.
3. “Occupancy rate” is calculated using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Rental revenue” is the rental revenue of respective real estate for the fiscal period under review.
5 Although this property goes by the name NEO21 Kitaguchi as of the date of this document, it is scheduled to be renamed as of April 1, 2018. In this document, the property is listed
under the new name, irrespective of the actual property name as of the date of this document. The same applies hereafter unless otherwise specified.

14

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

Payment for
Cumulative
the current
amount paid
periodPurposeEstimated duration

RESIDIA Nishi-Azabu(Minato-ku, Tokyo)

Major repair work

From: Jun. 2017
To: May. 2018

175

37

37

RESIDIA Daikanyama(Shibuya-ku, Tokyo)

Major repair work

From: Sep. 2017
To: Jul. 2018

64

–

–

RESIDIA Kanda-Higashi(Chiyoda-ku, Tokyo)

Major repair work

From: Jun. 2017
To: Mar. 2018

58

44

44

RESIDIA Shinkawa II(Chuo-ku, Tokyo)

Major repair work

From: Sep. 2017
To: Jul. 2018

50

–

–

RESIDIA Mejiro-Otomeyama(Shinjuku-ku, Tokyo)

Major repair work

From: Oct. 2017
To: Jul. 2018

44

–

–

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 608 million yen for the entire portfolio and, when combined with repairs andmaintenance cost of 521 million yen, the cost of construction work totals 1,130 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

RESIDIA TOWER Azabujuban(Minato-ku, Tokyo)

Major repair work

From: Apr. 2017
To: Jan. 2018

189

RESIDIA Ogikubo(Suginami-ku, Tokyo)

Major repair work

From: Jun. 2017
To: Sep. 201760

RESIDIA Esaka(Suita-shi, Osaka)

Major repair work

From: Oct. 2017
To: Jan. 201852

Other real estate

Renovations
Total

305
608

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

15

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

11th FP

12th FP

13th FP

14th FP

15th FP

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

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

Balance of reserves at
beginning of period

1,423

1,658

1,970

2,144

2,040

Amount of reserves
during period

584

605

625

696

738

Reversal of reserves
during period

349

292

451

801

857

1,658

1,970

2,144

2,040

1,921

Amount carried forward
to next period16

Acquisitions and Disposals in the 15th Fiscal Period
1 Acquisitions and Disposals of Real Estate and Asset-Backed Securities
Acquisition

Disposition

Propertyno.

Name of real estate

Acquisitiondate

Acquisition
Price Note
(million yen)

R-74

RESIDIA Sapporo-eki North

Jan. 19, 2018

679
679

Total

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

Gain (Loss)on sales(million yen)

–

–

–

–

–

–

–

–

Disposition
date

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

2 Transactions with Interested Parties
1) Transactions
Not applicable.
2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 15th Fiscal Period.

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)(%)

1,313,973

ITOCHU Urban Community Ltd.

847,136

64.5

Other rental expenses

106,020

ITOCHU Urban Community Ltd.

62,956

59.4

Advertising expenses

3,279

ITOCHU Urban Community Ltd.

2,079

63.4

ITOCHU Urban Community Ltd.

26,715

18.3

95

0.1

Other fees

146,198

ITOCHU Human Resources & General
Affairs Services Inc.

Notes 1. Transactions are not disclosed if the nominal counter party is an interested party but the actual counter party is clearly a third party.
2. ITOCHU Corporation, ITOCHU Urban Community Ltd. and ITOCHU Human Resources & General Affairs Services Inc. are interested parties of the asset management company thathave signed an asset management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts and Investment Corporations and Article 123 of
the Enforcement Order thereof, with which ADR engaged in transactions in the 15th Fiscal Period.

17

18

II. Financial Statements
Balance Sheets(Thousands of yen)
As of July 31, 2017

AssetsCurrent assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment (Notes 14, 18, 19, 21 and24)
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
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

19

As of January 31, 2018

12,989,663
9,611,975
195,001
473,090
4,678(7,059)23,267,349

12,218,821
9,693,200
198,466
347,796
4,874(7,274)22,455,884

74,590,506(11,514,323)
63,076,183
22,983(6,198)
16,784
63,128(13,622)49,506
226,819(119,992)
106,827
70,314,787
31,381
153,107,928(22,028,016)
131,079,911
187,892(93,971)
93,921
173,486(92,833)
80,653
737,436(448,573)
288,862
156,457,632–
421,596,451

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

1,071,902
2,043,828
73
3,115,804

1,071,902
2,009,390
54
3,081,347

(Thousands of yen)
As of July 31, 2017
Investments and other assets
Long-term prepaid expenses
Guarantee deposits
Guarantee deposits in trust
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds (Notes
10 and 26)
Current portion of long-term loans payable (Notes 10,
12, 21, 23 and 27)
Accounts payable – other (Note 14)
Accrued expenses
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds (Notes 10 and 26)
Long-term loans payable (Notes 10, 12, 23 and 27)
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
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
Total net assets (Notes 4 and 20)
Total liabilities and net assets

As of January 31, 2018

818,919529,605
1,026,585
1,710
2,376,819
427,089,075

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

5,785
117,268
123,053
450,479,478

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

298,506

344,006

8,000,000

2,000,000

25,446,329

28,950,000

1,352,658
110,602
29,02658,572
18,72335,314,419

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

26,500,000
163,428,000
1,223,124
3,259,350
194,410,475
229,724,894

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

127,690,098

127,690,098

53,220,279

53,220,279

33,202,036
33,202,036
6,642,169
93,064,485
220,754,583
220,754,583
450,479,478

32,866,055
32,866,055
6,798,144
92,884,479
220,574,577
220,574,577
448,421,782

20

II. Financial Statements
Statements of Income

Operating revenue (Note 18)
Rental revenue – real estate (Notes 5 and 9)
Total operating revenue
Operating expenses
Expenses related to rent business (Notes 5 and 9)
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
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expense (Notes 10, 12 and 23)
Interest expense on investment corporation bonds
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance
costs
Borrow-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)

21(Thousands of yen)
For the six months ended
July 31, 2017

For the six months ended
January 31, 201815,918,444
15,918,444

15,903,228
15,903,228

6,275,634
1,152,793
9,751
59,3183,600
265,817–408
182,187
7,949,510
7,968,934

6,176,934
1,175,182
9,729
61,0153,609
267,061
2,080
103
187,910
7,883,626
8,019,602

6,700
8,296
1,154
809
20
16,981

6,501
–
1,024
–
690
8,217

930,276
163,328
1,388

885,651
137,494
1,388

13,83910,839225,0939,214
1,343,141
6,642,774
6,642,774
605
605
6,642,169
6,642,169

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

Statements of Changes in Net Assets
For the six months ended July 31, 2017

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

Totalunitholders’equityVoluntary retained earnings
Paid-in capital

Balance at the
beginning of period

127,690,098

Capital surplus

53,220,279

UnappropriatedTotal voluntary retained earnings
retained(undisposed loss)
earnings

Reserve fortemporarydifference
adjustments

33,552,162

33,552,162

6,371,523

93,143,965

220,834,064

220,834,064(350,126)(350,126)

350,126–––

Dividends fromsurplus(6,721,650)(6,721,650)(6,721,650)(6,721,650)

Net income

6,642,169

6,642,169

6,642,169

6,642,169

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

Total changes in items
during the period––(350,126)(350,126)

270,645(79,480)(79,480)(79,480)

Balance at the end of
period127,690,098

53,220,279

33,202,036

33,202,036

6,642,169

93,064,485

220,754,583

220,754,583

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

127,690,098

Capital surplus

53,220,279

Reserve fortemporarydifference
adjustments

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

22

II. Financial Statements
Statements of Cash Distributions(Thousands of yen)
For the six months ended
July 31, 2017

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

23

For the six months ended
January 31, 2018

6,642,169,397 yen

6,798,144,365 yen

335,980,603 yen

336,605,635 yen

6,978,150,000 yen(5,169 yen)

7,134,750,000 yen(5,285 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 6,978,150,000
yen in total, which is the sum of thereversal of the reserve for temporary
difference adjustments (RTA) of
335,980,603 yen and unappropriatedretained earnings of 6,642,169,397
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 7,134,750,000
yen in total, which is the sum of thereversal of the reserve for temporary
difference adjustments (RTA) of
336,605,635 yen and unappropriatedretained earnings of 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.

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 (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
Net cash provided by (used in) investing activities
Cash flows from financing activities
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
July 31, 2017

For the six months ended
January 31, 2018

6, 642,774
2,631,935
1,388
13,839(3,102)(6,700)930,276
163,328
8,762(121,703)
7,659
13,81221,807(30,246)(7,724)(22,500)(1,181)
10,242,425
783(1,104,526)(557)
9,138,124

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(5,000,000)
7,000,000(162,396)(6,503,796)(2,648)–4,000,000(1,074,827)(336,492)(5,661)

39,474(11,704)(4,629,368)

2,571,313

17,500,000(18,900,000)
5,000,000(4,000,000)(30,348)(6,720,649)(7,150,997)(2,642,241)
20,243,879
17,601,638

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

24

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 (32.8 billion yen as of the end of thisfiscal period) due to the profit from negative goodwill, and allowed ADR to demonstrate one of its strengths of delivering
stable dividends over the long term.
ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM), is wholly owned by the Itochu Group andthe group’s key entity, Itochu Corporation, a leading Japanese trading house, is its main sponsor.

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

25

3 Signiﬁcant Accounting Policies(1) 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 inthe statements ofcash flows(7) Other significant
matters that serve
as a basis forthe preparationof the financial
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-caseevaluation of the collectability 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 for the property leasing activities.
Furthermore, for the pro rata portion of property taxes ADR paid to the transferor (seller)
upon acquisition of real estate properties, ADR treats the amount as acquisition costs of realestate properties, instead of recording it as an expense for the property leasing activities. The
amount of property taxes treated as acquisition costs of real estate properties in the current
fiscal period was 3,734 thousand yen.
1) Method of hedge accounting
Special accounting treatment is applied.
2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Loans
3) Hedging policy
ADR conducts derivative transactions to hedge risks stipulated in ADR’s Articles ofIncorporation in accordance with its financial policy.
4) Method for assessing the hedge effectiveness
Assessment of the hedge effectiveness has been omitted as the relevant transactions satisfy
the requirements for special accounting treatment.
The funds (cash and cash equivalents) in the statements of cash flows consist of cash on hand andcash in trust; 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 threemonths or less from the acquisition 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, as well 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
and disclosed separately on the face of the balance sheets.
A. Cash and deposits in trust
B. Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture andfixtures in trust; land in trust; construction in progress in trust; and leasehold rights in trust
C. Guarantee deposits in trust
D.Tenant leasehold and security deposits in trust2) Accounting for consumption taxes
Consumption taxes and local consumption taxes are excluded from business transaction
amounts. However, accounting for non-current assets and deferred assets is inclusive ofconsumption taxes and local consumption taxes.

26III. Notes to Financial Statements
4 Balance Sheets(1) Minimum net assets as stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Thousands of yen)
As of July 31, 2017

As of January 31, 2018
50,00050,000(2) Commitment line agreements
ADR has executed commitment line agreements with banks.
(Thousands of yen)
As of July 31, 2017
Total commitment line of credit

20,000,000

20,000,000––

20,000,000

20,000,000

Amount used
Unused balance

As of January 31, 2018(3) Provision and reversal of the reserve for temporary difference adjustments
For the six months ended July 31, 2017

Initial amountReserve fordividends (Note)(Thousands of yen)

Balance as ofJanuary 31, 2017

Funds drawn down
during 14th FP

Balance as of July
31, 2017

33,552,162

350,126

33,202,036

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-year, starting from the end of the fiscal period ended January 31, 2017 (13th FP).

For the six months ended January 31, 2018

Initial amountReserve fordividends (Note)

33,552,162(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

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-year, starting from the end of the fiscal period ended January 31, 2017 (13th FP).

27

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

For the six months ended
July 31, 2017

For the six months ended
January 31, 2018

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

14,071,111

14,151,517

Facility charges

747,834

760,367

Parking fees

437,625

15,256,571

428,841

15,340,727

Other revenue related to property leasing
Income from leasing rights

78,459Other583,413

Total revenue from property leasing activities

80,136
661,872

482,364

15,918,444

562,501
15,903,228

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

848,599

859,178

1,145,863

1,083,296

Utilities

241,068

254,805

Repairs and maintenance

560,021521,988

Property-casual insurance

25,02425,543

Trust fees

71,27869,075

Other rental expenses

751,862

711,555

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

2,631,916

6,275,634

2,651,490

6,176,934

6,275,634

6,176,934

9,642,810

9,726,294

28

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

For the six months ended
July 31, 2017

(Unit)For the six months ended
January 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 July 31, 2017
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 50year, starting from the end of the fiscal period ending January 31, 2017 (13th FP), which is the period following the period
in which the transfer to the reserve was made. As such, ADR has drawn down 335,980,603 yen of the reserve during the
fiscal period ended July 31, 2017 (14th FP).
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 50year, starting from the end of the fiscal period ending January 31, 2017 (13th FP), which is the period following the period
in which the transfer to the reserve was made. As such, ADR has drawn down 336,605,635 yen of the reserve during t the
fiscal period ended January 31, 2018 (15th FP).

29

8 Statements of Cash Flows(1) Relationship between the cash and cash equivalents at the end of period in the statements of cash flows and the accounts
reported in the balance sheets(Thousands of yen)
For the six months ended
July 31, 2017
Cash and deposits

For the six months ended
January 31, 2018

12,989,663

12,218,821

Cash and deposits in trust

9,611,975

9,693,200

Time deposits held over three months(5,000,000)(1,000,000)

Cash and cash equivalents

17,601,638

20,912,021

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

As of July 31, 2017

As of January 31, 2018

Due within one year

729,540

729,540

Due after one year

12,975,629

12,610,859

Total

13,705,169

13,340,399

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 July 31, 2017

As of January 31, 2018

Due within one year

4,089,309

3,918,856

Due after one year

8,717,916

7,567,406

Total

12,807,226

11,486,262

30

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 through loans,issuance of investment corporation bonds (including short-term investment corporation bonds; the same applies
below), issuance of units, and other means of financing for purchasing real estate properties and repaying its debts.
ADR conducts derivative transactions solely to hedge against the risk of interest rate fluctuations and other risks
arising from liabilities.
In addition, ADR, in general, manages surplus funds by investing only in bank deposits, savings, negotiable certificatesof deposit, and government bonds for emphasizing sound and stable portfolio management.
2) Description and risks of financial instruments and risk management
Funds through loans and investment corporation bonds are used primarily to finance the acquisition of real estate
properties, repay existing loans, or redeem existing investment corporation bonds. ADR is exposed to liquidity
risk in that it may not be able to raise funds through alternative financing sources by the repayment date or at theredemption. ADR controls the risk exposures through the preparation of a funding plan on a monthly basis andseeking and procuring funds through various sources, such as securing the level of funds in hand, spreading out theloan repayment and bond redemption dates, diversifying borrowing financial institutions, entering into commitmentline agreements, and issuing investment units.
In addition, ADR is exposed to the risk arising from fluctuations in interest rates on its loans and investment corporation
bonds with floating interest rates. ADR controls and limits such risk by utilizing derivative transactions (interest rate
swap transactions).
ADR is also exposed to the credit risk that the financial institutions with which it has bank deposits may default.
However, ADR limits the effects of such risk by setting certain limits on the term of deposits and the minimum
credit rating for the financial institutions in which deposits are placed, and by placing deposits with various financial
institutions.
3) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on quoted market prices. If a quoted market price is not available, areasonable estimate of fair value is used. Certain assumptions are applied in the fair value measurements and therefore
could result in a different fair value if different assumptions are applied. Furthermore, the contractual amounts ofderivative transactions presented in “Derivative Transactions” below do not represent the market risk exposure ofthose derivative transactions.
(2) Fair values of financial instruments
The book values in the balance sheets, fair values of financial instruments, and unrealized gain (loss) are presented
below.
As of July 31, 2017

(Thousands of yen)Book value

Unrealized gain (loss)

1) Cash and deposits

12,989,663

12,989,663–

2) Cash and deposits in trust

9,611,975

9,611,975–

3) Current portion of investment corporation bonds

8,000,000

8,007,200(7,200)4) Current portion of long-term loans payable

25,446,329

25,561,298(114,969)

5) Investment corporation bonds

26,500,000

27,106,549(606,549)

6) Long-term loans payable

163,428,000

165,648,335(2,220,335)–(2,160,336)(2,160,336)

7) Derivative transactions

31

Fair valueAs of January 31, 2018

(Thousands of yen)Book value

Fair 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) Current portion of investment corporation bonds

2,000,000

2,018,400(18,400)

4) Current portion of long-term loans payable

28,950,000

29,042,964(92,964)

5) Investment corporation bonds

25,500,000

26,074,822(574,822)

6) Long-term loans payable

164,968,000

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

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

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

(3) Redemption schedules of monetary claims and securities after July 31, 2017 and January 31, 2018
As of July 31, 2017

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

12,989,663

–

–

–

–

–

Cash and deposits in trust

9,611,975

–

–

–

–

–

22,601,638

–

–

–

–

–

Total

As of January 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

12,218,821

–

–

–

–

–

Cash and deposits in trust

9,693,200

–

–

–

–

–

21,912,021

–

–

–

–

–

Total

32

III. Notes to Financial Statements(4) Repayment schedules of investment corporation bonds, loans payable, and other interest-bearing loans after July 31,2017 and January 31, 2018
As of July 31, 2017
(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

8,000,000

–

–

–

–

–

25,446,329

–

–

–

–

–

–

2,000,000

4,000,000

1,500,000–

19,000,000–

21,460,000

20,870,000

20,618,000

23,960,000

76,520,000

33,446,329

23,460,000

24,870,000

22,118,000

23,960,000

95,520,000

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

11 Securities
As of July 31, 2017
Not applicable.
As of January 31, 2018
Not applicable.

33

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

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

12 Derivative Transactions(1) Derivative transactions to which hedge accounting is not applied
As of July 31, 2017
Not applicable.
As of January 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 July 31, 2017 and January 31, 2018 are as follows:
As of July 31, 2017

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment forinterest rate swaps

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

Long-term loans
payableContract
amount due
after one year
123,998,000

106,358,000

As of January 31, 2018

Fair value(*2)(2,160,336)(*3)(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment forinterest rate swaps

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

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

98,858,000

Fair value(*2)(1,799,418)(*3)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore interest rate swaps are not stated at fair value in the balance sheets.

34III. Notes to Financial Statements
13 Proﬁts or Losses from Investments Accounted for Using the Equity Method
For the six months ended July 31, 2017
Not applicable as ADR does not have any affiliated companies.
For the six months ended January 31, 2018
Not applicable as ADR does not have any affiliated companies.

14 Transactions with Related Parties(1) Parent company and major corporate unitholders
For the six months ended July 31, 2017
Not applicable.
For the six months ended January 31, 2018
Not applicable.
(2) Affiliated companies
For the six months ended July 31, 2017
Not applicable.
For the six months ended January 31, 2018
Not applicable.
(3) Fellow subsidiaries
For the six months ended July 31, 2017
Not applicable.
For the six months ended January 31, 2018
Not applicable.
(4) Directors and major individual unitholders
For the six months ended July 31, 2017

Type ofrelatedparty

Name ofrelated Location
party

Capital stockor amount
Business
Percentage Relationships
invested
description or of voting with related
in capital
occupation rights held
parties(Thousandsof yen)Nature of transactions

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

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

35

Period-end
Transaction
amount Account balance(Thousands name (Thousandsof yen)of yen)Accounts
447,261
payable –
(*2)
other

483,042(*3)

Accounts
368,241
payable –
(*2)
other

397,701(*3)

Accounts
337,290
payable –
(*2)
other

364,273(*3)

62,618
(*3)
(*4)

–

–

For the six months ended January 31, 2018

Type ofrelatedparty

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

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

Payment Managementof asset
Asset
fee 2
management managementcompany fees to ADIMManagement
(*1)
fee 3
Acquisition
feeTransaction
Period-end
amount Account balance(Thousands name (Thousandsof yen)of 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)

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 July 31, 2017

As of January 31, 2018

Deferred tax assets
Excess provision of allowance for doubtful accounts

2,230

2,298

Valuation difference on assets acquired through merger

10,154,672

10,070,239

Tax loss carryforwards

1,371,552

1,371,552

Other98,637

109,516

Subtotal

11,627,093

11,553,606

Less valuation allowance(11,627,093)(11,553,606)

Total deferred tax assets

–

–

–

–

Net deferred tax asset

36

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 July 31, 2017
Statutory tax rate

As of January 31, 2018

31.74

31.74

(Adjustments)
Increase (decrease) in valuation allowance(1.14)(1.09)

Deductible dividends(30.62)(30.66)

Other

0.03

0.01

Effective tax rate after the application of tax effect accounting

0.01

0.01

16 Retirement Beneﬁts
For the six months ended July 31, 2017
Not applicable because ADR does not have retirement benefit plans.
For the six months ended January 31, 2018
Not applicable because ADR does not have retirement benefit plans.

17 Asset Retirement Obligations
For the six months ended July 31, 2017
Not applicable.
For the six months ended January 31, 2018
Not applicable.

37

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

38

III. Notes to Financial Statements
19 Value of Rental Properties
ADR owns rental residential properties in Tokyo and other prefectures. The following are the book value, changes during theperiod, and fair value of these properties:(Thousands of yen)
For the six months ended
July 31, 2017

For the six months ended
January 31, 2018

Book value(*1)

Balance at the beginningof period

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

420,717,789

424,712,182

3,994,392(1,241,366)

424,712,182

423,470,815

531,174,000

533,958,000*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 real estate beneficiary interests in trust forthree properties (6,097,904 thousand yen), 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 January 31, 2018, the increase is mainly attributable to the acquisition of one real estate properties (745,170 thousand yen), and the decrease is mainly a result of posting
depreciation.
*3. The fair value at the end of period is the appraisal or assessment value provided by an external real estate appraiser. The fair values at the current period ended January 31, 2018 withrespect to RESIDIA Minami-Aoyama and Windsor House Hiroo are the scheduled disposition prices.

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

20 Per Unit Information(Yen)
For the six months ended
July 31, 2017

For the six months ended
January 31, 2018

Net assets per unit

163,521

163,388

Net income per unit

4,920

5,035

*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, 2017
Net income (thousands of yen)Amount not attributable to common
unitholders (thousands of yen)
Net income attributable to common unit
(thousands of yen)
Average number of units during the period(units)39

For the six months ended
January 31, 2018

6,642,169

6,798,144––

6,642,169

6,798,144

1,350,000

1,350,000

21 Signiﬁcant Subsequent Events
For the six months ended January 31, 2018
1. Acquisition of assets
Following the basic policies prescribed in its Articles of Incorporation, ADR acquired the following assets.
(1) RESIDIA Kamata IV
Type of asset:
Real estate
Acquisition price:
3,268 million yen
Date of acquisition:
March 20, 2018
Location:
4-44-10 Kamata, Ota-ku, Tokyo
Area:
966.58 m2 in land and 4,379.34 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 14 floors
Construction completion date: February 2014
(2) RESIDIA Kamata V
Type of asset:
Real estate
Acquisition price:
2,283 million yen
Date of acquisition:
March 20, 2018
Location:
2-7-3 Minami Kamata, Ota-ku, Tokyo
Area:
646.05 m2 in land and 3,122.08 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 12 floors
Construction completion date: January 2013
*1 The acquisition price does not include the amount required to settle property taxes, urban planning taxes and depreciable asset taxes or consumption taxes and local
consumption taxes.

2. Conclusion of agreement on the acquisition of asset
Following the basic policies prescribed in its Articles of Incorporation, ADR concluded agreement on the acquisition of thefollowing asset.
(1) RESIDIA Funabashi IV*4
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
567 million yen
Date of conclusion of agreement: April 13, 2018
Scheduled date of acquisition:
April 27, 2018
Location:
2-12-28 Minato-machi, Funabashi-city, Chiba
Area:
307.72 m2 in land and 1,096.28 m2 in buildings
Structure:
Reinforced concrete structure with flat roof and 10 floors
Construction completion date:
October 2008
*2 The acquisition price does not include the amount required to settle property taxes, urban planning taxes and depreciable asset taxes or consumption taxes and local
consumption taxes.
*3 In the event that a purchase agreement is rescinded for reasons attributable to ADR (the purchaser), the purchaser shall pay to the seller damages for breach of contractequivalent to 20% of the transaction price.
*4 Although the actual name of this property is AS PREMIUM Minatomachi as of the date of this document, it is to be renamed subsequent to its acquisition by ADR.
Accordingly, the property is presented in this document under its new name, irrespective of the name of the property as of the date of this document.

3. Disposition of assets
ADR has transferred the following assets following the Basic Policy of Asset Management prescribed in its Articles ofIncorporation.
(1) RESIDIA Minami-Aoyama
Type of asset:
Real estate*6
Disposition price: 710 million yen
Date of disposition: March 13, 2018
(2) Windsor House Hiroo
Type of asset:
Real estate
Disposition price: 1,863 million yen
Date of disposition: April 6, 2018
*5 The disposition price does not include the amount required to settle property taxes, urban planning taxes and depreciable asset taxes or consumption taxes and local
consumption taxes.
*6 ADR has transferred the beneficiary interests in trust upon establishing new beneficiary interests on the same day as the date of disposition.

40

4. Debt financing
ADR has conducted the debt financing listed below to fund acquisition of real estate (specified assets) and payment ofrelated expenditures.
(1) Long-term loan (term: 10 years)
Lender(s):MUFG Bank, Ltd.*7
Debt financing amount: 500 million yen
Interest rate:
0.5600%Debt financing method: Unsecured, unguaranteed and lump-sum repayment at maturity
Drawdown date:
March 20, 2018
Repayment date:
March 17, 2028
(2) Long-term loan (term: 10 years)
Lender(s):Sumitomo Mitsui Trust Bank Limited, Mizuho Bank, Ltd., The Yamaguchi Bank, Ltd., Shinkin
Central Bank
Debt financing amount: 2,500 million yen
Interest rate:
0.6088%Debt financing method: Unsecured, unguaranteed and lump-sum repayment at maturity
Drawdown date:
March 20, 2018
Repayment date:
March 17, 2028
(3) Short-term loan (term: 1 month)
Lender(s):MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank Limited, Mizuho Bank, Ltd.
Debt financing amount: 2,000 million yen
Interest rate:
Base rate (JBA 1-month yen TIBOR) + 0.35%
Debt financing method: Unsecured, unguaranteed and lump-sum repayment at maturity
Drawdown date:
March 20, 2018
Repayment date:
April 27, 2018
*7 As of April 1, 2018, The Bank of Tokyo-Mitsubishi UFJ, Ltd. changed its legal name to MUFG Bank, Ltd. The same applies hereafter unless otherwise specified.

5. Issuance of investment corporation bonds
Based on the “General Resolution on ADR Bond Issuance” resolved by the Board of Director’s meeting held on July 26, 2017,
ADR issued investment corporation bonds on April 24, 2018 under the following terms and conditions.
ADR Unsecured Bond #29 (with Pari Passu clause among specified investment corporation bonds)
Total amount of bonds:
1,500 million yen
Issue price:
100 yen par value of 100 yen for each bondCoupon rate:
0.69%
Collateral and guarantee: Unsecured, unguaranteed
Redemption date:
ADR will redeem the entire amount on April 24, 2030. The bonds may be purchased and canceledat any time on and after the date following the issue date, unless otherwise stipulated by thedepository.
Interest payment dates: April 24 and October 24 of every year
Intended use of proceeds: Repayment of short-term loans

41

22 Schedule of Securities
Not applicable.

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

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
120,198,000

98,858,000(1,799,418)

120,198,000

98,858,000(1,799,418)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore interest rate swaps are not stated at fair value in the balance sheets.

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

Property, plant and equipment

For the six months ended January 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

74,590,506

583,038–

75,173,544

12,342,251

827,928

62,831,292*1Structures

22,983602–

23,585

6,968

769

16,616–

Machinery and equipment

63,128

4,533–

67,662

16,5092,886

51,153–Tools, furniture and fixtures

226,819

41,716–

268,535

133,528

13,536135,007–70,314,787

439,581–

70,754,369––

70,754,369*1

31,38147,77931,38147,779––47,779–Land
Construction in progress
Buildings in trust

153,107,928

232,734–

153,340,662

23,755,307

1,727,290

129,585,355–

Structures in trust

187,892

3,090–

190,982

98,473

4,502

92,509–Machinery and equipmentin trust

173,486

2,160–

175,646

99,261

6,428

76,384–Tools, furniture and fixturesin trust

737,436

46,014–

783,450482,282

33,709301,167–

156,457,632––

156,457,632––

156,457,632––

40,254–40,254––40,254–455,913,982

1,441,505

31,381

457,324,106

36,934,584

2,617,053

420,389,522

Leasehold rights

1,071,902––

1,071,902––

1,071,902–

Leasehold rights in trust

2,356,072––

2,356,072

346,681

34,4372,009,390––

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

19,506––

19,506

19,452

19

54

Subtotal

3,447,482––

3,447,482

366,134

34,456

3,081,347

Total

459,361,464

1,441,505

31,381

460,771,588

37,300,718

2,651,509

423,470,869*1. The increase in property, plant and equipment for the six months ended January 31, 2018, primarily represents the acquisition of the property listed below.
RESIDIA Sapporo-eki North

25 Schedule of Other Speciﬁed Assets
Not applicable.

43

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

1.68

ADR Bond #17 (Unsecured)Sep.12,2012

8,000,000

8,000,000–

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

4,000,000–

ADR Bond #19 (Unsecured)

Apr. 25,2013

3,000,000

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

ADR Bond #21 (Unsecured)

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

Collateral

Sep. 12,
2018

(*3)

Unsecured–Sep. 12,
2017

(*3)

Unsecured

4,000,000

1.23

Sep. 12,
2019

(*3)

Unsecured–

3,000,000

1.32

Apr. 25,
2023

(*2)

Unsecured

2,000,000–

2,000,000

1.41

Nov. 14,
2025

(*2)

UnsecuredApr.28,2014

2,500,000–

2,500,000

1.04

Apr. 26,
2024

(*2)

Unsecured

ADR Bond #22 (Unsecured)

Apr. 23,2015

2,000,000–

2,000,000

0.726

Apr. 23,
2025

(*3)

Unsecured

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

1,500,000–

1,500,000

0.326

Oct. 21,
2020

(*2)

Unsecured

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

1,500,000–

1,500,000

0.846

Oct. 21,
2025

(*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 0.5663

Nov. 24,
2027

(*2)

Unsecured

Total

–

–

–

–

34,500,000

8,000,000 27,500,000*1. The bonds have a pari passu clause among specified investment corporation bonds.
*2. The funds are used for the repayments of existing loans.
*3. The funds are used for the redemption of existing investment corporation bonds.
*4. Redemption schedules of investment corporation bonds after the balance sheet date for the next five years are as follows:

Due in one year or
less
Investment
corporation bond

2,000,000–(Thousands of yen)

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

1,500,000–

2,000,000

44III. Notes to Financial Statements
27 Schedule of Loans
For the six months ended January 31, 2018

Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodDevelopment Bank of Japan Inc.

956,329–

956,329––

Nov. 24,
2017

(*5)

Sumitomo Mitsui Trust Bank Limited

890,000––

890,000

1.76%
(*2)

Jun. 29,
2018

(*5)

–

1,000,000–

1,000,000

1.62%
(*2)

Sep. 28,
2018

(*3)

1,300,000
1.57%
(*2)

Nov. 30,
2018

(*5)

1.43%
(*2)

Jul. 31,
2018

(*5)

1.42%
(*2)

Jul. 31,
2018

(*6)

Lenders

Mitsubishi UFJ Trust and Banking
Corporation (*10)
MUFG Bank, Ltd. (*10)–

1,300,000–

Sumitomo Mitsui Trust Bank Limited–

1,300,000–

1,300,000

Mizuho Bank, Ltd.

–

1,000,000–

1,000,000

Mitsubishi UFJ Trust and Banking
Corporation (*10)–

1,900,000–

1,900,000

500,000––

500,000

Current portion of long-term loans payable

MUFG Bank, Ltd. (*10)
Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

Sumitomo Mitsui Banking Corporation

650,000––

650,000

Mizuho Bank, Ltd.

500,000––

500,000

Mitsubishi UFJ Trust and Banking
Corporation (*10)

900,000––

900,000

Development Bank of Japan Inc.

1,000,000––

1,000,000

Shinsei Bank, Limited

1,500,000––

1,500,000

Interest
Repayment
rate
Use
date
(*1)

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

1.23%

Feb. 28,
2018

(*3)

Sumitomo Mitsui Banking Corporation

2,800,000–

2,800,000

–

–

Aug.
31,2017

(*5)

1.20%
(*2)

Apr. 27,
2018

(*5)

MUFG Bank, Ltd. (*10)

1,500,000––

1,500,000

2,100,000––

2,100,000

Sumitomo Mitsui Banking Corporation

800,000––

800,000

1,500,000–

1,500,000––

Sep. 29,
2017

(*7)

The Kagawa Bank, Ltd.

500,000–

500,000––

Sep. 29,
2017

(*6)

The Hiroshima Bank, Ltd.

500,000–

500,000––

Nov. 30,
2017

(*6)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.79%
(*2)

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

0.22%

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

0.12%

May 31,2018(*5)

25,446,329

9,760,000

6,256,329

28,950,000

Total

Notes

Unsecured
Unguaranteed

Sumitomo Mitsui Trust Bank Limited

Taiyo Life Insurance Company

45(Thousands of yen)Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodMitsubishi UFJ Trust and Banking
Corporation (*10)

1,000,000–

1,000,000–

MUFG Bank, Ltd. (*10)

1,300,000–

1,300,000–

Long-term loans payable

Lenders

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

Sumitomo Mitsui Trust Bank Limited

1,300,000–

1,300,000–

Mizuho Bank, Ltd.

1,000,000–

1,000,000–

Mitsubishi UFJ Trust and Banking
Corporation (*10)

1,900,000–

1,900,000–

MUFG Bank, Ltd. (*10)–

Sep. 28,
2018

(*3)

–

Nov. 30,
2018

(*5)

1.25%
(*2)

Jun. 28,
2019

(*5)

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––

450,000

1.16%

Sep. 30,
2019

(*6)

Sumitomo Mitsui Trust Bank Limited

450,000––

450,000

1.16%

Sep. 30,
2019

(*6)

Mitsubishi UFJ Trust and Banking
Corporation (*10)

1,000,000––

1,000,000

1.03%
(*2)

Nov. 29,
2019

(*6)

Sumitomo Mitsui Banking Corporation

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)

1.28%
(*2)

Jul. 25,
2019

(*5)

MUFG Bank, Ltd. (*10)

2,703,000––

2,703,000

Sumitomo Mitsui Trust Bank Limited

3,595,000––

3,595,000

Mitsubishi UFJ Trust and Banking
Corporation (*10)

1,799,000––

1,799,000

903,000––

903,000

MUFG Bank, Ltd. (*10)

1,200,000––

1,200,000

0.81%

Mar. 24,
2020

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)

920,000––

920,000

Aozora Bank, Ltd.

1,830,000––

1,830,000

Mar. 24,
2020

(*5)

Resona Bank, Limited

0.88%
(*2)

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

Oct. 29,
2021

(*5)

Sumitomo Mitsui Banking Corporation

1.25%
(*2)

1,500,000––

1,500,000

Mizuho Bank, Ltd.

2,160,000––

2,160,000

1.63%
(*2)

Dec. 22,
2021

(*5)

Aozora Bank, Ltd.

1,379,000––

1,379,000

919,000––

919,000

1.54%
(*2)

Jun. 25,
2021

(*5)

1.07%
(*2)

Sep. 30,
2020

(*3)

0.92%
(*2)

Sep. 30,
2019

(*3)

–

Sep. 28,
2018

(*3)

1.47%
(*2)

Nov. 15,
2023

(*5)

Aozora Bank, Ltd.

Sumitomo Mitsui Trust Bank Limited

Resona Bank, Limited
Mizuho Trust & Banking Co., Ltd.

1,000,000––

1,000,000

The Norinchukin Bank

1,000,000––

1,000,000

500,000––

500,000

The Nishi-Nippon City Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.

500,000–

500,000–

The 77 Bank, Ltd.

500,000–

500,000–

2,600,000––

2,600,000

Sumitomo Mitsui Trust Bank Limited

Notes

Unsecured(*3) Unguaranteed46

III. Notes to Financial Statements
Classification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodSumitomo 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)

The 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)

MUFG Bank, Ltd. (*10)

500,000––

500,000

Sumitomo Mitsui Trust Bank Limited

500,000––

500,000

1.44%
(*2)

Feb. 16,
2024

(*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)

Long-term loans payable

Lenders

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

Mitsubishi UFJ Trust and Banking
Corporation (*10)

270,000––

270,000

Mizuho Trust & Banking Co., Ltd.

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

(*5)

Development Bank of Japan Inc.

1,850,000––

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

Aozora Bank, Ltd.

1,000,000––

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

Aozora Bank, Ltd.

700,000––

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

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

0.89%
(*2)

Jan. 31,
2023

(*5)

1,000,000––

1,000,000

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

47

Interest
Repayment
rate
Use
date
(*1)

Notes

Unsecured
UnguaranteedClassification

Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
period1,200,000––

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)

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

Mizuho Trust & Banking Co., Ltd.

1,200,000––

1,200,000

The Norinchukin Bank

1,500,000––

1,500,000

500,000––

500,000

0.73%
(*2)

Apr. 14,
2023

(*3)

1,200,000––

1,200,000

0.69%
(*2)

Oct. 14,
2022

(*3)

0.62%
(*2)

Apr. 14,
2022

(*3)

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

Long-term loans payable

Interest
Repayment
rate
Use
date
(*1)

The Tokyo Tomin Bank, Ltd.

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)

Mitsubishi UFJ Trust and Banking
Corporation(*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)

MUFG Bank, Ltd. (*10)

990,000––

990,000

0.55%

Feb. 28,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited

990,000––

990,000

Mizuho Bank, Ltd.

1,080,000––

1,080,000

0.66%

Jan. 31,
2027

(*5)

Mitsubishi UFJ Trust and Banking
Corporation (*10)

2,500,000––

2,500,000

0.57%

Jan. 31,
2026

(*5)

Sumitomo Mitsui Banking Corporation

2,260,000–

2,260,000––

Nov. 30,
2018

(*5)

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)

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)

Mitsubishi UFJ Trust and Banking
Corporation (*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)

Notes

Unsecured
Unguaranteed48

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

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.26%

Jul. 29,
2025

(*5)

The Iyo Bank, Ltd.

300,000––

300,000

0.20%

Jul. 29,
2024

(*5)

The Chugoku Bank, Ltd.

500,000––

500,000

0.20%

Jul. 29,
2024

(*5)

Bank of Kyoto, Ltd.

500,000––

500,000

0.20%

Jul. 29,
2024

(*5)

The Norinchukin Bank

1,500,000––

1,500,000

0.45%

Nov. 28,
2025

(*5)

The Norinchukin Bank

1,000,000––

1,000,000

0.38%

Nov. 29,
2024

(*5)

Taiyo Life Insurance Company

1,500,000––

1,500,000

0.24%

Nov. 29,
2024

(*5)

Mitsui Sumitomo Insurance Co., Ltd.

1,000,000––

1,000,000

0.32%

Nov. 30,
2023

(*5)

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)

Sumitomo Mitsui Trust Bank Limited

1,250,000––

1,250,000

Resona Bank, Limited

1,000,000––

1,000,000

0.61%

Jan. 29,
2027

(*5)

Resona Bank, Limited

1,000,000––

1,000,000

0.50%

Jan. 30,2026

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)

0.60%

Apr. 30,
2027

(*5)

Long-term loans payable

Lenders

49

Interest
Repayment
rate
Use
date
(*1)

Unsecured(*5) Unguaranteed

Sumitomo Mitsui Trust Bank Limited

2,000,000––

2,000,000

Mitsubishi UFJ Trust and Banking
Corporation (*10)

2,000,000––

2,000,000

Mitsubishi UFJ Trust and Banking
Corporation (*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)

The Nishi-Nippon City Bank, Ltd.

–

500,000–

500,000
0.55%

Aug. 31,
2027

(*6)

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

Notes

Classification

Balance at the
beginning of
periodLong-term loans payable

Lenders

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodThe 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–

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

163,428,000

11,300,000

9,760,000

164,968,000

Total

Interest
Repayment
rate
Use
date
(*1)

0.42%

Feb. 27,
2026

0.51%

Aug. 31,
2027

(*6)

0.55%

Aug. 31,
2027

(*6)

0.42%

Sep. 30,
2025

(*5)

Notes

(*6)

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

Long-term loans
payableDue in one year or
less

Due after one year
through two years

28,950,000

17,700,000

Due after two years Due after three years Due after four years
through three years through four years through five years
24,070,000

26,478,000

20,150,000*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.

50