www.adr-reit.com

Advance Residence Investment Corporation

7th Fiscal Period ReportAugust 1 2013

January 31 2014

Realization of Stable Distribution of
Earnings over the Long Term
In the Medium Term, ADR Aims for an Earnings
Per Unit of 4,500 Yen to Ensure Minimum
Dividend Payment of 4,500 Yen Per Unit.

To Our Unit-holders

In managing our properties, we
continued to maintain a high averageoccupancy rate of 96.4% for the fiscal
period.

This is within reach of our medium-term
EPU goal of 4,500 yen. We expect toreach the goal in a relatively short time,
mainly through external growth.

On the financing side, we pursued afinance structure that can adapt flexibly
to future changes in the environment
by financing with longer maturities andfixed interest rates.

As for the performance of ADR’s
investment unit, the unit price rose
sharply from 198,100 yen at the end of
the previous fiscal period to 217,200 yen
at the end of this fiscal period (a 9.6%
increase over the previous period) as aresult of the Abe administration’s
economic stimulus measures andmonetary policy, along with expectationsof an impact from the 2020 Tokyo
Olympics.

As a result, net earnings per unit
increased by 148 yen over the previous
period to 4,415 yen. This was 115 yen
above the initial earnings forecast of
4,300 yen, and as a consequence, wehave increased our dividends per unit
from the initial forecast of 4,500 yen to
4,615 yen, an 18 yen increase over theprevious fiscal period.

We w o u l d l i k e t o r e p o r t o n t h emanagement results and performanceof Advance Residence Investment
Corporation (ADR) for its 7th Fiscal
Period, or the six months ended January
31, 2014.

We would like to take this opportunity tosincerely thank all of our shareholders
for their support.

Although it does not affect the earnings
in this fiscal period, we decided to issue
new investment units (public offering)on January 9, 2014, which enabled us toraise a total of 12.3 billion yen in February.

During the fiscal period, to achieve ourearnings per unit (EPU) goal of 4,500
yen, our medium-term target since themerger, we acquired six properties andacquired equity interest in TK property
fund to secure seed properties for
future external growth.

The properties acquired with the funds
would generate higher income, and as aresult we forecast earnings per unit
(EPU) of 4,430 yen in our earnings
forecasts for the 8th fiscal period(ending July 2014) and the 9th fiscal
period (ending January 2015).

Kenji Kousaka
Advance Residence Investment Corporation
Executive director

AD Investment Management Co., Ltd.
President

Changes in price of investment units
Trading volume(unit)

60,000Eﬀective date of merger
Mar. 1, 2010

First trading day of
new units in the 1st
follow-on oﬀering
Jun. 29, 2010

Great East Japan
Earthquake
Mar. 11, 2011

First trading day of
new units in the 2nd
follow-on oﬀering
Feb. 2, 2012

First trading day of
new units in the 3rd
follow-on oﬀering
Feb. 4, 2013

Resolution to issue
new units for the 4th
follow-on oﬀering
Jan. 9, 2014

Price of investment units(yen)

300,000

45,000225,000

30,000150,000■■■

15,000■Tokyo Stock Exchange REIT Index
Tokyo Stock Exchange REIT Residential Index
ADR Trading volume
TOPIX
75,000ADR Price of investment units

0

2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
/03/0 010/06/ 010/09/ 010/12/0 011/03/1 011/06/1 011/09/1 011/12/16 012/03/2 012/06/2 012/09/2 012/12/2 013/03/2 013/07/0 013/10/0 014/01/0
02
04
0
1
3
5
7
1
1
9
7
0
1
1
2

2010

0

* The Tokyo Stock Exchange REIT Index and the Tokyo Stock Exchange REIT Residential Index are re-indexed using ADR’s March 2, 2010 unit price of 112,500 yen as the base.

2

Financial Highlights
115 yen Increase in Dividends from Initial Forecast

4,615 yen dividend per unit (+18 yen from 6th FP)
Solid External Growth

6 profit-improving properties (@ approx. 7.9 Billion Yen)
Launched a public offering with an intent to acquire 11 properties at 15.8 billion yen
AcquiredFavorable investment environment
High average occupancy rate maintained at

96.4% (up 0.5% year on year)

Financing with Fixed-Rate Debts and Longer Maturities

93.5%

Fixed-rate debt ratio:

Remaining years:

3.8 yrs

Forecasts for 8th and 9th Fiscal Periods
The medium-term EPU goal of 4,500 yen is within reach
Forecast for both fiscal periods

4,430 yen
Dividend Per Unit: 4,500 yen
EPU:

3The Largest Portfolio Among Residential J-REITs
As of January 31, 2014

No. of properties

Number of leasable units

210 properties

18,113 units

Total assets

Unrealized gain (loss)*

NOI yield*

5.5%

23.5 billion yen

Leasable ﬂoor area

(Based on acquisition price)

Average amount invested
per property

684,547 m

401.8 billion yen

2

1.91 billion yen* NOI: NOI stands for Net Operating Income and refers to revenues and expenses from the real estate business, calculated as follows. Revenue from property leasing – Expenses from property leasing +Depreciation and amortization + Loss on retirement of ﬁxed assets* NOI yield is calculated using the formula: “Annualized NOI” ÷ “Book value at the end of ﬁscal period” When calculating the annualized NOI, the total actual NOI during the period is calculated according to thenumber of operating days.
* The unrealized loss/gain is the appraisal value at the end of the ﬁscal period less the book value at the end of the ﬁscal period.

Major Regional
Cities15%
Tokyo
Metropolitan Area
11%

Over 10 yrs
21%

Tokyo 23 Wards
29%

Tokyo Central
7 Wards
45%

Over 15 min.
1%Over
1 yr to 5 yrs
7%

5 to 10 min.
38%

SingleMinute Walk to Station
under ﬁve
55%

22.3% (4,035 units)

Family16.4% (2,967 units)
2.3% (420 units)
7.2% (1,296 units)
0.8% (137 units)

Tokyo Central
7 Wards

5,000

7,500

Tokyo 23
Wards

Tokyo Metropolitan
Area

10,000Major Regional
Cities

51.2% (9,269 units)

Under 150K yen

22.0% (3,981 units)

Under 250K yen

21.7% (3,929 units)

Under 300K yen

2,500

Pass-through type 70%

93%

Under 100K yen

51.1% (9,258 units)0

Under 5 min.
55%

Corporate
27%

Individual
43%

Under 10 yrs 79%

CompactOﬃce/retail

Guaranteed
rent
18%

Over 5 yrs to 10yrs
71%

under 10

Dormitory

Student
12%

10 to 15 min.
6%

Average 9.0 yrs

Tokyo 23 Wards Total 74%

Large“Student” indicates the proportion of contracts for
managed dormitory-type and student apartment
contracts

2.8% (510 units)

Under 500K yen

1.6% (285 units)

Over 500K yen

0.8% (139 units)0%Single15.0%
Compact

30.0%
Family

Large

45.0%

60.0%

DormitoryOﬃce/retail4Steady External Growth172

No. of properties

173

properties

190

properties

5.4%

341.8

334.4

204

properties

5.4%

5.3%

NOI yield to book value
at the end of ﬁscal period

190

properties

210

properties

properties

5.5%

5.5%

393.8

401.8

44.9%

44.9%

5.3%

367.9

367.9

46.4%

46.4%

29.1%

29.1%

29.3%

29.3%

50.3%

48.9%

26.9%

28.1%

11.1%
11.7%

10.9%
12.2%

11.2%
13.3%

11.2%
13.3%

10.7%
15.1%

10.5%
15.2%

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FPTokyo Central 7 Wards
Tokyo 23 Wards
Tokyo Metropolitan Area
Major Regional Cities(billion yen)High Occupancy Rate
Overall portfolio■

Tokyo Central 7 Wards■

Tokyo 23 Wards■

Tokyo Metropolitan Area■

Major Regional Cities

100%

95%

90%

2nd FP
96.2%

3rd FP
96.4%

4th FP
96.2%

5th FP
95.9%

6th FP
96.6%

7th FP
96.4%

5

20
13
/
20 12
13
/0
1

/10
20
13

8
20

13
/0

6
13
/0

4

20

/0
13
20

02
3/
20
1

/12
12
20

8

/10
12
20

/0
12
20

12

/0

6

4
20

12

/0

2
20

/0
12
20

12
11/
20

10
11/
20

8
1/0
20
1

06
11/
20

04
11/
20

20

11/

02

85%

Financial Base that Withstands Financial Volatility
Average interest paid

1.75%

Average loan term remaining until maturity

1.63%

Fixed-rate debt ratio

1.46%

1.7 yrs

82%

78%

74%

2.9 yrs

2.5 yrs

2nd FP

3rd FP

4th FP

1.35%

87%
3.4 yrs

5th FP

1.28%

3.8 yrs93%

6th FP

1.26%

93%
3.8 yrs

7th FP

Stable Dividends
Drawdown of reserve for dividends
Drawdown of reserve for dividends (for loss on sales/impairment)
Dividends from net income(Unit: yen/investment unit)

4,500
270

4,724

4,500
413

7

531

4,505

4,597

4,615

249

329

200

2,796
4,079

4,192

4,255

4,267

4,415

3rd FP

4th FP

5th FP

6th FP

7th FP

1,433

2nd FP* “Drawdown of reserve for dividends (loss on sale, impairment)” is calculated by dividing the total of “loss on sale of real estate” and “impairment loss” by the number of outstanding investment units at the endof the fiscal period. The number is rounded down to the nearest decimal point.

6

Future Investment Strategy

Realization of Stable Distribution of Earnings over the Long-term

External GrowthInternal Growth

Financial Strategy

Ev en th o u gh t h e s u p p l y ofproperties remains very tight, byusing all the tools in our toolbox,
we aim to achieve external
growth without missing
opportunities to acquire highyielding properties.

We will maintain and improve
revenues by increasing key money
and cutting leasing expenses forproperties with high occupancy
rates.

While we closely monitor interest
rate trends, we work to maintainand develop a financing structurethat can adapt flexibly to futurechanges in the environment bycontinuing to finance with longer
diversified maturities, and fixedinterest rates,• Sourcing properties fromsponsors• Direct sourcing from the open
market based on a wealth of
trading information that weare able to collect• Utilizing bridge funds

7

We will also keep working tomaintain and enhance thecompetitive advantages of ourproperties through continuous
implementation of upgrades andlarge-scale renovations.

This will enable us to provide
stable dividend payments overthe long-term.

I. Asset Management ReportManagement’s Discussion and Analysis
1 Summary of Selected Financial Data
Fiscal period
Operating period
Operating Operating revenues
results(Rental revenue)(Gain on real estate sales)

6th FP

7th FP

From: Aug. 1, 2012
To: Jan. 31, 2013

From: Feb. 1, 2013
To: Jul. 31, 2013

From: Aug. 1, 2013
To: Jan. 31, 2014

11,25912,21912,194

13,493

13,794

million yen

11,252

12,193

12,155

13,462

13,756bmillion yen

–

–

–

–

–

million yen

5,275

5,660

5,773

6,517

6,658

(Rental business expenses)cmillion yen

4,202

4,551

4,557

5,343

5,366

(Loss on real estate sales)dmillion yen

7

–

–

–

–

(Impairment loss)emillion yen

–

–

–

–

–

million yen

5,984

6,559

6,420

6,976

7,136
5,475

Ordinary incomefmillion yen

3,998

4,612

4,681

5,292

Net incomegmillion yen

3,997

4,611

4,681

5,291

5,475

Total assetshmillion yen

356,891

384,091

383,476

410,989

418,785

Interest-bearing liabilities

imillion yen

195,002206,359

206,166

210,269

218,116

Net assets

jmillion yen

157,428

173,155

172,640

195,446

195,220

Paid-in Capitalkmillion yen

64,56180,08780,087

102,557

102,557

Total dividendslmillion yen

4,410

5,196

4,955

5,700

5,722

Payout ratio
Total number of units issued andoutstanding
Net assets per unit

l/g

%

110.3

112.7

105.9

107.7

104.5

m

units

980,000

1,100,000

1,100,000

1,240,000

1,240,000

j/m

yen

160,640

157,413

156,945

157,617

157,436

yen

4,079

4,198

4,255

4,270

4,415

yen

4,500

4,724

4,505

4,597

4,615

yen

4,500

4,724

4,505

4,597

4,615

Net income per unit

(Note 2)

Dividend per unit

l/m

Dividend from earnings per unit
Dividend in excess of earnings per unit

yen

0

0

0

0

0

(Note 3)

%

6.5

6.2

4.7

4.7

4.2

(g+q)/(k+i)(Note 3)

%

4.5

4.7

4.7

4.9

4.8

(g+q)/(m×r+i)(Note 3)

%

3.5

3.6

3.2

3.4

3.2

Annualized dividend yield
Financial
indicators

5th FP

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

million yen

Operating income

Per unit
figures

4th FP

From: Aug. 1, 2011
To: Jan. 31, 2012aTotal operating expenses

Balancesheet
figures

3rd FP
units

Return on investment (Paid-in Capital)
Return on investment(market capitalization)
FFO per unit
Annualized(g-b+d+e+q)/mn

FFO multiple
Ratio of ordinary income to total
assetsAnnualized

r/nEquity ratio

j/hReturn on equity

g/j

f/h

yen

6,025

6,075

6,152

6,109

6,298

yen

11,953

12,184

12,203

12,321

12,494

times

11.5

12.5

15.6

16.1

17.4

(Note 4)

%

1.1

1.2

1.2

1.3

1.3

(Note 3)

%

2.2

2.5

2.4

2.7

2.6

%

44.1

45.1

45.0

47.6

46.6

(Note 5)

%

2.5

2.8

2.7

2.9

2.8

(Note 3)

%

5.0

5.6

5.4

5.8

5.6

%

54.6

53.7

53.8

51.2

52.1

(Note 3)

Annualized
Ratio of interest-bearing
liabilities to total assets
DSCR
Net income before interestand depreciation
Interest expenses

o/p

times

4.6

5.3

5.6

6.6

6.7

o

million yen

7,525

8,241

8,243

8,940

9,177

million yen

1,627

1,558

1,476

1,364

1,367

NOI

a-c+q

(Note 6) million yen

8,949

9,711

9,681

10,401

10,722i/hpAnnualized NOI yield(Notes 3, 7)

Depreciation and amortizationq

Unit price at end of periodr%(Note 8) million yen

yen

5.2

5.4

5.2

5.4

5.3

1,900

2,071

2,085

2,284

2,335

137,500

152,900

190,100

198,100

217,200

Notes 1. Operating revenues do not include consumption tax. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal place. The
same applies for the rest of this report unless otherwise specified.
2. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
3. The annualized figures are calculated based on 1 year being 365 days, with accounting calculation periods of 184 days for the 3rd Fiscal Period, 182 days for the 4th Fiscal Period,
184 days for the 5th Fiscal Period, 181 days for the 6th Fiscal Period, and 184 days for the 7th 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 is the sum of per property NOI annualized by taking into account the actual number of days of operation for each property.)
8. Depreciation and amortization includes depreciation and amortization of intangible assets in addition to depreciation of property, plant and equipment.

8

I. Asset Management Report
2 Investment Environment and Operating Performance

During the fiscal period, we acquired six properties (acquisition price of 7.9 billion yen) in order to achieve our medium-term
earnings per unit (EPU) goal of 4,500 yen. As a result, at the end of the fiscal period, we held 210 properties (AUM based on
total acquisition price of 401.8 billion yen). In addition, we acquired equity interest in TK property fund with the aim of
securing seed properties for future external growth. On the finance side, we improved net earnings by reducing financing
costs. We also further reinforced the resilience of our financial base to withstand future financial volatility by refinancing
loans and investment corporation bonds (hereinafter, “loans and bonds”) with longer maturities and fixed interest rates.
Result of these undertakings for the current fiscal period are outlined below.

Item(Reference)
Results for theInitial forecast (Note 1)
6th FP

7th FP results

Difference from the Difference from theprevious fiscal period initial earnings forecast

Operating revenues

13,493 million yen

13,593 million yen

13,794 million yen+300 million yen+201 million yen

Operating income

6,976 million yen

6,938 million yen

7,136 million yen+159 million yen+197 million yen

Ordinary income

5,292 million yen

5,333 million yen

5,475 million yen+183 million yen+142 million yen

Net income

5,291 million yen

5,332 million yen

5,475 million yen+183 million yen+142 million yen(Note 2)+115 yen (Note 2)+18 yen+115 yen

Net income / Unit

4,267 yen

4,300 yen

4,415 yen

Dividend Per Unit

4,597 yen

4,500 yen

4,615 yen+148 yen

Notes 1. The initial forecast refers to the earning forecasts for the 7th Fiscal Period disclosed in the “Brief Summary of Kessan Tanshin” for the 6th Fiscal Period, dated September 9,2013. The same holds true hereafter.
2. Net income / Unit is calculated by dividing net income by the number of units issued and outstanding as of the end of the fiscal period. Differences of Net income / Unit andDividend Per Unit figures from the previous fiscal period and Initial earnings forecast figures do not take into account decimals.

The average occupancy rate fell 0.2 points period on period to 96.4% during the fiscal period because this period did notinclude the peak season for the rental housing market. We increased revenue by 300 million yen over the previous period
due to full-year contribution to revenues made by properties acquired in the previous fiscal period (14 properties for a totalacquisition price of 25.9 billion yen) and the contribution made by the six properties acquired during this fiscal period. In
addition, we reduced financing costs through refinancing. As a result, we increased net earnings by 183 million yen over theprevious fiscal period to 5,475 million yen and bolstered Net income / Unit by 148 yen over the previous period to 4,415 yen.
With the acquisition of six properties that were not included in the initial forecast and the improvement in occupancy
against the forecast of 96.0%, we were able to exceed the initial EPU forecast of 4,300 yen by 115 yen. Dividends Per Unit
increased 115 yen over the initial forecast of 4,500 yen to 4,615 yen, based on our disclosed dividend strategy.
Furthermore, ADR forecasts the EPU for the fiscal period ending in July 2014 and fiscal period during January 2015 as 4,430
yen in the Kessan Tanshin (preliminary financial report) for the January 2014 Financial Period, released March 12, 2014.
Since the merger, we have been able to steadily increase EPU by firmly executing our investment strategy. The EPU forecasts
mentioned above are just short of the medium-term EPU target of 4,500 yen, therefore mainly through external growthusing the acquisition capacity explained in a later section, we expect to reach our EPU target in a relatively short time.
a) External growth
During the fiscal period, we acquired six properties, RESIDIA Nakaochiai in September 2013, RESIDIA Tower Sendai in
November 2013, RESIDIA Takashimadaira, RESIDIA Shimurasakaue, RESIDIA Shimurasakaue II and RESIDIA Shimurasakaue
III in December 2013. Furthermore, in the aim of securing seed properties for future external growth, we acquired in
October 2013 additional interest in the TK property fund operated by Godo Kaisha RISING3 newly adding four properties.
We also acquired 11 properties (total acquisition price of 15.8 billion yen) in February 2014 using the proceeds from thepublic offering launched in January 2014. We acquired the 11 properties by exercising the rights of first refusal which wereawarded to ADR when we acquired the equity interest in Godo Kaisha RISING and Godo Kaisha RISING2, the former
owners of the properties, in September and December 2012 respectively. As a result, we hold a total of 221 assets totaling
417.6 billion yen (total acquisition price), maintaining the portfolio to be the largest for a residential J-REIT as of the
publication of this report.
Since the merger, ADR has persisted in acquiring properties that will boost the profitability of the portfolio. The averageassessed NOI yield (Note 3) for the total of 17 properties newly acquired in the fiscal period and February 2014 was 6.1%, far
exceeding the actual book value NOI yield (5.5%) for our existing portfolio as of the end of the current fiscal period (Note 3).

9As of the publication of this report, ADR has rights of first refusal for 19 properties valued at 19.9 billion yen (based on
price of rights of first refusal including tax, with an average assessed NOI yield of 6.0%), where the rights were securedby acquiring the equity interests in the property funds. While conditions in the property acquisition market remain
extremely competitive, by using the rights of first refusal on the remaining property funds and sourcing properties fromsponsors (primarily sponsor-developed properties), we hope to continue acquiring properties that will improve theportfolio’s earning capacity and asset value.
3. The average assumed NOI yield for the acquired properties is calculated by dividing the total NOI calculated using the direct capitalization method in the appraisal report at thetime of acquisition by the total acquisition price. The actual book-value NOI yield is calculated by annualizing the total NOI in the relevant fiscal period and dividing it by the total
book value as of the end of that fiscal period. The average assumed NOI yield on the properties for which ADR holds the right of first refusal is calculated by dividing the total NOI
calculated using the direct capitalization method in the appraisal report at the time of acquisition of equity interest in the TK property fund by the total right-of-first-refusal price(if the right-of-first-refusal price in the contract includes tax, the NOI yield is calculated based on the price excluding tax assuming an 8% tax rate). The same holds true hereafter.

b) Internal growth
The average occupancy rate was 96.4%, 0.5 points higher year on year (fiscal period ended in January 2013) for the fiscal
period.
In addition to maintaining a high occupancy rate, we made an effort to improve revenues by actively collecting key
money and reducing leasing expenses, particularly from properties with higher occupancy rates, as well as cutting costsby revising management costs through the consolidation of property management companies and adjusting theelectrical contract capacity by introducing electronic breakers for some of our properties. As a result, the actual bookvalue NOI yield improved 0.2 points over the previous fiscal period, from 5.3% to 5.5%.
We also carried out on five properties, large-scale renovations on common areas, room fixture replacement and roomlayout changes on several residential units with the aim of maintaining and strengthening the competitive advantages ofthe properties.
On August 5, 2013, AD Investment Management Co., Ltd. (hereinafter, “ADIM”), ADR’s asset management company,
became the first J-REIT asset management company to register as a first-class architectural office. This step was taken inlight of the high importance of large-scale renovation work and upgrades to maintain and improve the value of its assets
as they age. As a result of this registration, with the periodic training programs that ADIM’s architects will take part in,they will improve their skills and abilities. This registration will also make it easier for ADIM to hire people with specialist
knowledge and reinforce ADR’s engineering capabilities. Moreover, registration as a first-class architectural officeprovides proof that ADIM has the required technical standards, and will thus reinforce trust from ADR’s stakeholders on
ADIM’s asset management skills.
c) Financial Strategy
Debt financing
During the fiscal period, besides reducing financial costs, we put emphasis on extending and diversifying debt maturities
and fixing interest rate to assure a stable distribution of earnings over the long-term.
We raised a total of 20.4 billion yen by borrowing a total of 18.4 billion yen and issued a total of 2 billion yen in investment
corporation bonds. The average duration for the 12.5 billion yen in loans repaid in the fiscal period was 2.7 years with anaverage interest rate of 1.22% at the end of the previous fiscal period (Note 4), while the average maturity on the debts raisedin this fiscal period was 7.0 years with an average interest rate of 1.11% at the end of the fiscal period, thereby achieving
our goal of extending the loan period and lowering interest rates. As a result, the average remaining years of our loans
and bonds stood at 3.8 years (Note 5), the fixed-rate debt ratio at 93.5% (Note 6) and the average interest rate of 1.26% at theend of the fiscal period. In addition, by diversifying the debt repayments, we achieved keeping all the repayment
amounts for each fiscal period below the committed line of credit of 20 billion yen.
Such efforts to extend debt maturity, fix interest rates on our debts and diversify repayment amounts are primarily
intended to reinforce the resilience of our financial base to withstand future financial volatility, and accordingly
contribute to the long-term stability of dividends.
On top of the achievements mentioned above, on November 8, 2013, Japan Credit Rating Agency, Ltd. upgraded theoutlook of ADR’s long-term issuer rating to AA- “positive” from AA- “stable.”
4. In calculating the average interest rate, fixed interest rate after the application of interest rate swap is used for floating-rate loans that are hedged using an interest rate swap
agreement. The same holds true hereafter.
5. Calculations are made on the assumption that the entire balance of the borrowings is repaid in lump sums on the final repayment dates, including the amortized loans. The same
holds true hereafter.
6. Only long-term loans payable (loans for which the initial loan period is more than one year) and investment corporation bonds are included in this calculation. If floatinginterest-rate loans are hedged using interest-rate swaps, the loans are treated as fixed interest-rate loans for the principal amount of the swap. The same holds true hereafter.

10

I. Asset Management Report
Equity finance
In January 2014, we decided to carry out a capital increase through a public offering. Although the payment of proceeds anddelivery of new investment units took place in February after the fiscal period in review, we were able to conclude the deal,
procuring a total of 12.3 billion yen (including the third-party allotment) at an issue price of 206,328 yen, which was 34,478 yen
above the fiscal period-end net asset value (NAV) per unit (Note 7) of 171,850 yen. Additionally, by acquiring the 11 properties (totalacquisition price of 15.8 billion yen) using the proceeds at less than the appraisal value, the NAV per unit as of the publication ofthis report rose to 174,865 yen (Note 8). We thus succeeded in raising unit-holder’s value through improvement of NAV per unit.
In addition, with the lower ratio of interest-bearing liabilities to total assets (LTV) after the acquisition of these 11
properties compared to the LTV prior to the public offering, we further stabilized the financial foundation, gained
capacity for property acquisition and succeeded in preparing for further external growth.
7. In this report, NAV per unit is defined as after-dividend net assets per unit, plus unrealized gains (losses) on property holdings per unit. The same holds true hereafter.
8. NAV per unit as of this report’s publication is calculated as follows.
NAV per unit of 174,865 yen = (195,220,837,863 yen in net assets at end of current fiscal year - 5,722,600,000 yen in dividends to be paid in the current fiscal year + 12,379,680,000
yen in capital raised with the public offering launched in January 2014 (including third-party allotment) + 23,596,653,790 yen in unrealized gains at end of current fiscal year +17,658,000,000 in appraisal value for 11 properties acquired in February 2014 – 15,808,000,000 yen total acquisition price for the 11 properties) ÷ (1,240,000 outstanding numberof investment units at end of current fiscal year + 60,000 new investment units issued in the public offering (including third-party allotment))d) Changes in asset management fee structure
A proposal was made to change the asset management fee structure, the fee that ADR pays to its asset managementcompany, at the second general meeting of unit-holders held on October 25, 2013 and was approved on the same date.
(Proposal No. 1 “Partial change in articles of incorporation”)
The main changes to the asset management fee structure were a reduction in the portion of the fee that is linked to the sizeof the assets under management, an increase in the percentage of the fee that is linked to the funds’ performance and theintroduction of fee linked to earnings per unit (EPU). These changes are intended to more closely align unit-holders’interests and asset management fees, and demonstrate ADR’s strong commitment to maximize unit-holders’ interests.
These changes to the asset management fee structure will be in effect from the fiscal period ending on July 2014.

3 Management Policies and Challenges Going Forward

We will continue in our efforts to realize our basic management principle of “realization of stable distribution of earnings
over the long term” by firmly following through with the policies and strategies for external growth, internal growth andfinancial strategy as set forth below.

a) External Growth
Even though the environment for property acquisition remains extremely competitive, we will use all the tools in our toolbox
to achieve external growth without missing out on opportunities to acquire high-yielding properties. These include directsourcing from the open market based on a wealth of trading information that we are able to collect, utilizing bridge funds(securing right of first refusal for the acquisition of the fund’s investment properties by acquiring equity interests in TK
property fund), and sourcing properties from sponsors (primarily sponsor-developed properties).
b) Internal Growth
We will aim to maintain and improve revenues from properties with higher occupancy rates by increasing key money andenhancing the efficiency of leasing expenses.
We will also keep working to maintain and enhance the competitive advantages of our properties through continuous
implementation of upgrades and large-scale renovations.
c) Financial Strategy
While closely monitoring interest rate trends, we will continue to maintain and build a financing structure that canwithstand future financial volatility by financing with longer maturities, diversifying repayment dates and locking in low
rates by fixing the interest rates. This will enable us to provide stable dividend payments over the long-term.
S-20 Pacific Royal Court Minato Mirai Ocean Tower Lobby

11

4 Equity Finances

The following are changes in paid-in capital and number of units issued and outstanding over the last 5 years.
Number of units issued andoutstanding (units)
Increase
BalancePaid-in Capital (million yen)

Date

Description

March 1, 2010

Consolidation-type merger

722,306

722,306

36,262June 28, 2010

Follow-on offering

240,000

962,306

26,35562,6182

July 30, 2010

Third-party allotment

17,694980,000

1,943

64,561

3

February 1, 2012

Follow-on offering

110,000

1,090,000

14,23178,793

4February 29, 2012

Third-party allotment

10,0001,100,000

1,293

80,087

5

February 1, 2013

Follow-on offering

135,000

1,235,000

21,667

101,754

6

February 27, 2013

Third-party allotment

5,000

1,240,000

802

102,557

7

Increase

Notes

Balance
36,262

1

Notes 1. ADR was established through the consolidation-type merger between former Advance Residence Investment Corporation (the “former ADR”) and Nippon Residential
Investment Corporation (NRI) on March 1, 2010. Upon its establishment, ADR allotted and delivered 3 ADR units per 1 former ADR unit and allotted and delivered 2 ADR units
per 1 NRI unit.
2. ADR issued new units through public offering at an offer price of 113,684 yen (paid-in amount: 109,816 yen) per unit to procure funds for new property acquisitions as well as
partly funding repayment of loans and redemption of investment corporation bonds.
3. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at a paid-in amount of 109,816 yen per unit to procure funds for new
property acquisitions as well as partly funding repayment of loans and redemption of investment corporation bonds.
4. ADR issued new units through public offering at an offer price of 133,770 yen (paid-in amount: 129,379 yen) per unit to procure funds for new property acquisitions and for otherpurposes.
5. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at a paid-in amount of 129,379 yen per unit to procure funds for new
property acquisitions and for other purposes.
6. 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 forother purposes.
7. ADR issued new units by way of third-party allotment with Mizuho Securities Co., Ltd. as the allottee at an offer price of 160,498 yen per unit to procure funds for new property
acquisitions and for other purposes.
8. ADR issued new units through a follow-on offering on February 3, 2014 and issued new units by way of third-party allotment on February 26, 2014. Please refer to “6. Significant
Subsequent Events” for details.

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

3rd FP

4th FP

5th FP

6th FP

7th FP

Fiscal period-end

January 2012

July 2012

January 2013

July 2013

January 2014

High

162,500 yen

159,400 yen

190,100 yen

257,900 yen

229,800 yen

Low

134,000 yen

135,800 yen

150,500 yen

182,200 yen

194,300 yen

C-60 RESIDIA Nakamurabashi

12

I. Asset Management Report
5 Distribution to Unit-holders

In accordance with the distribution policy provided in Article 32, Item 1 of ADR’s Articles of Incorporation, we shall deliver
dividends in excess of an amount equivalent to 90% of the amount of ADR’s earnings available for dividends as stipulated in
Article 67-15 of the Act on Special Measures Concerning Taxation. In addition, ADR may use the reserve for dividends in orderto provide stable dividend payouts going forward, and shall decide to increase dividends in accordance with the betterthan-expected results.
Based on the policy above, ADR decided that the unappropriated retained earnings of 5,475,039 thousand yen plus 247,560
thousand yen drawdown of reserve for dividends to arrive at 5,722,600 thousand yen will be distributed as dividends ofearnings, which is 4,615 yen per unit.
(thousand yen)

Fiscal period

3rd FP

4th FP

5th FP

6th FP

7th FP

Operating period

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

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

From: Aug. 1, 2012
To: Jan. 31, 2013

From: Feb. 1, 2013
To: Jul. 31, 2013

From: Aug. 1, 2013
To: Jan. 31, 2014

3,997,454

4,611,435

4,681,376

5,291,809

5,475,039

35,236,060

34,651,095

34,376,971

33,968,500

33,720,940

4,410,000

5,196,400

4,955,500

5,700,280

5,722,600(4,500 yen)

(4,724 yen)

(4,505 yen)

(4,597 yen)

(4,615 yen)

4,410,000

5,196,400

4,955,500

5,700,280

5,722,600(4,500 yen)

(4,724 yen)

(4,505 yen)

(4,597 yen)

(4,615 yen)

–

–

–

–

–

(0 yen)(0 yen)(0 yen)(0 yen)(0 yen)Total amount of unappropriatedretained earnings
Accumulated amountof earnings
Total amount ofdividends of cash
(Dividend per unit)
Of which, total amountof dividends of earnings(Dividend of earnings per unit)
Of which, total amount of
capital reimbursement(Capital reimbursement per unit)

6 Significant Subsequent Events
1.

Acquisition of Assets
ADR acquired the following assets in accordance with the basic policy for asset management provided in its Articles ofIncorporation.
(i)

RESIDIA Nakameguro II
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,119 million yen
Acquisition date:February 6, 2014
Location:
2-9-11 Nakameguro, Meguro-ku, Tokyo
Area:(Land) 271.64 m2; (Building) 1,394.26 m2
Structure:
RC with flat roof; 11F
Completion date:August 2006

(ii)

Artis Court Minami-Aoyama
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,720 million yen
Acquisition date:February 6, 2014
Location:
1-24-15 Minami-Aoyama, Minato-ku, Tokyo
Area:(Land) 659.35 m2 (Note 1); (Building) 2,549.88 m2 (Note 2)
Structure:
SRC with flat roof; 15F
Completion date:July 2008
Notes 1. The area for the overall right of site is noted. ADR’s share of the right of site for the acquisitions is a ratio of 80,057 to 100,000.
2. The total floor space for the building overall is noted. ADR’s share of the sectional ownership related to the acquisitions is a ratio of 80,057 to 100,000.

13

(iii) RESIDIA Yotsuya Sanchome
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
2,090 million yen
Acquisition date:February 6, 2014
Location:
17 Araki-cho, Shinjuku-ku, Tokyo
Area:(Land) 889.00 m2 (Note 1); (Building) 4,626.75 m2 (Note 2)
Structure:
RC with flat roof; B1F/10F
Completion date:
May 2009
Notes 1. The area for the overall right of site is noted. ADR’s share of the right of site for the acquisitions is a ratio of 291,594 to 333,645.
2. The total floor space for the building overall is noted. ADR’s share of the sectional ownership related to the acquisitions is a ratio of 291,594 to 333,645.

(iv) RESIDIA Ikebukuro WestType of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,115 million yen
Acquisition date:February 6, 2014
Location:
3-6 Nakamaru-cho, Itabashi-ku, Tokyo
Area:(Land) 436.89 m2; (Building) 2,599.03 m2
Structure:
RC with flat roof; 10F
Completion date:
October 2007(v)

RESIDIA Ojima
Type of asset:
Acquisition price:
Acquisition date:
Location:
Area:
Structure:
Completion date:

Real estate beneficiary interests in trust
1,282 million yen
February 6, 20145-41-6 Oojima, Koto-ku, Tokyo(Land) 726.77 m2; (Building) 2,269.28 m2
RC with flat roof; 8F
November 2007(vi) RESIDIA Higashi-Sakura
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
2,862 million yen
Acquisition date:February 6, 2014
Location:
2-17-25 Higashisakura, Higashi-ku, Nagoya-shi, Aichi
Area:(Land) 1,240.78 m2; (Building) 10,944.91 m2
Structure:
SRC with flat roof; B1F/15F
Completion date:February 2006(vii) RESIDIA Tsutsujigaoka
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,796 million yen
Acquisition date:February 6, 2014
Location:
77 (East Building), 81 (West Building) Teppocho, Miyagino-ku, Sendai-shi, Miyagi
Area: 			(Land) 1,460.00 m2
				(Building) East Building: 3,253.86 m2
					West Building: 2,982.56 m2
Structure:		RC with flat roof; 12F (East Building)			RC with flat roof; 11F (West Building)Completion date:November 2006
(viii) RESIDIA Kobe-Motomachi
Type of asset:			 Real estate beneficiary interests in trust
Acquisition price:		 1,052 million yen
Acquisition date:		 February 6, 2014
Location:			 4-3-3 Sakaemachidoori, Chuo-ku, Kobe-shi, Hyogo
Area:			 (Land) 443.00 m2; (Building) 3,283.91 m2
Structure:			 RC with flat roof; B1F/14F
Completion date:		 January 2007

14

I. Asset Management Report(ix) RESIDIA Sendai-honcho
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,117 million yen
Acquisition date:February 6, 2014
Location:
1-9-32 Honcho, Aoba-ku, Sendai-shi, Miyagi
Area:(Land) 689.77 m2; (Building) 3,377.22 m2
Structure:
RC with flat roof; 14F
Completion date:June 2007(x)

RESIDIA Sendai-Haranomachi
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
593 million yen
Acquisition date:February 6, 2014
Location:
3-1-37 Harano-machi, Miyagino-ku, Sendai-shi, Miyagi
Area:(Land) 581.71 m2; (Building) 2,380.81 m2
Structure:
RC with flat roof; 13F
Completion date:
September 2007(xi) RESIDIA Minami-Ichijo-East
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,062 million yen
Acquisition date:February 6, 2014
Location:
6-1-10 Minami-Ichijo Higashi, Chuo-ku, Sapporo-shi, Hokkaido
Area:(Land) 843.33 m2; (Building) 4,871.64 m2
Structure:
RC with flat roof; B1F/15F
Completion date:
January 2008
(Note) The acquisition prices are each exclusive of the amount of reimbursement of the pro rata portion of the amount equivalent to property tax, urban planning tax and depreciable asset tax, as well as consumption tax and local consumption tax.

2.

Issuance of new investment units
ADR passed a resolution at a meeting of the board of directors of ADR held on January 9, 2014 on issuance of new units
to raise funds for the acquisition of real estate (specified assets) and other purposes. Payments for the issuance of newunits through public offering were completed on February 3, 2014, and payments for the issuance of new units by wayof third-party allotment were completed on February 26, 2014.
As a result, paid-in capital totaled 114,936,698,304 yen with the number of units issued and outstanding increasing to
1,300,000 units.
Issuance of New Units through Public Offering (Primary Offering)
58,000 units
1) Number of units issued:		
2) Offer price:			
213,330 yen per unit
12,373,140,000 yen
3) Total Offer price:			4) Paid-in amount (Underwriting amount): 206,328 yen per unit
11,967,024,000 yen
5) Total paid-in amount:			6) Payment deadline:			February 3, 2014
Issuance of New Units by Way of Third-Party Allotment
2,000 units
1) Number of units issued:		
206,328 yen per unit
2) Offer price:			
412,656,000 yen
3) Total paid-in amount:			4) Application period (Application deadline): February 25, 2014
5) Payment deadline:			February 26, 20146) Allottee:			Mizuho Securities Co., Ltd.

15

Overview of the Investment Corporation
1 Paid-in Capital

The total number of units authorized, total number of units issued and outstanding, paid-in capital and number of unitholders as of January 31, 2014 are as follows.
Fiscal period

3rd FP

4th FP

5th FP

6th FP

7th FP

Fiscal period-end

January 2012

July 2012

January 2013

July 2013

January 2014

6,000,000 units

6,000,000 units

6,000,000 units

6,000,000 units

6,000,000 units

Total number of units
authorized
Total number of units
issued and outstanding
Paid-in capital (Note)

980,000 units

1,100,000 units

1,100,000 units

1,240,000 units

1,240,000 units

64,561 million yen

80,087 million yen

80,087 million yen

102,557 million yen

102,557 million yen

Number of unit-holders

21,57023,14723,01523,413

21,980(Note) The paid-in capital on the balance sheets as of January 31, 2014 includes capital surplus of 53,220 million yen.

2 Major Unit-holders

The following are the major unit-holders as of January 31, 2014.
Name

Address

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

Japan Trustee Services Bank, Ltd.
(Trust Account)

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

311,860

25.15

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

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

90,607

7.30

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

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

64,704

5.21

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

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

63,204

5.09

NOMURA BANK (LUXEMBOURG) S.A.

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

39,244

3.16

ITOCHU Corporation

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

34,8002.80Mizuho Trust & Banking Co., Ltd.

1-2-1 Yaesu, Chuo-ku, Tokyo

17,826

1.43

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

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

17,0891.37

Fuji Fire and Marine Insurance Co., Ltd.

1-18-11 Minamisenba, Chuo-ku, Osaka-city,
Osaka

13,278

1.07

MetLife Alico Life Insurance K.K GA
Company JPY

4-1-3 Taihei, Sumida-ku, Tokyo

11,682

0.94

664,294

53.57

Total

(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.

16

I. Asset Management Report
3 Directors and Independent Auditor

1. The executive director, supervisory directors and independent auditor as of Jan. 31, 2014 are as follows.

Title
Executive
director

Kenji Kousaka (Note 1)

Supervisory
director

Hidejiro Matsuda

Supervisory
director
Independent
auditorPrimary concurrent positions

Total amount of compensationfor each title during applicable
operating period (thousand yen)

President, AD Investment Management Co., Ltd.

–

Name

Yoshiki Oshima

President, Hidejiro Matsuda CPA Office(Note 2)

1,200

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

1,200

Deloitte Touche Tohmatsu LLC

22,360(Note 3)

Notes 1. Kenji Kousaka concurrently serves as president of ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM), and executive director of ADR. The
Commissioner of the Financial Services Agency was notified of the concurrent holding of positions on March 5, 2008 pursuant to the provisions of Article 31-4, Paragraph 4 of
the Financial Instruments and Exchange Act (Article 31-4, Paragraph 1 of the said Act as of the date of this document) prior to its revision made by the provisions of Article 1 of the
Act for 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 (5,610 thousand yen).

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

4 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,
2014.
Delegation
Asset management company

AD Investment Management Co., Ltd.

Asset custodian

17

Name
Sumitomo Mitsui Trust Bank Limited

Administrative agent

management of register of unitholders

Administrative agent

management of special accounts

Administrative agent

accounting, taxation,
institutional operations

Administrative agent

administration for investment
corporation bonds

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

Assets Under Management
1 Composition of the Investment Corporation’s Assets
6th Fiscal Period (as of July 31, 2013)
Type of asset

Investment regions

7th Fiscal Period (as of January 31, 2014)

Total amount held(million yen) (Note 6)

As a % of total
assets (Note7)

Total amount held(million yen) (Note 6)

As a % of total
assets (Note7)

Tokyo Central 7 Wards (Note 2)

100,182

24.4

103,755

24.8(Note 3)

Real estate in trust Tokyo 23 Wards(Note 1)
Tokyo Metropolitan Area (Note 4)

90,34022.0

90,93321.7

24,764

6.0

24,594

5.9(Note 5)31,0697.6

32,667

7.8

Major Regional Cities
Subtotal

246,35759.9

251,951

60.2

Tokyo Central 7 Wards (Note 2)

72,91417.7

72,605

17.3

Tokyo 23 Wards(Note 3)

23,611

5.7

25,094

6.0

Tokyo Metropolitan Area

(Note 4)

16,162

3.9

15,9983.8

Major Regional Cities(Note 5)27,944

6.8

27,7806.6

140,632

34.2

141,478

33.8

931

0.2

1,031

0.2

Deposits and other assets

23,067

5.6

24,3235.8

Sum total of total amount of assets

410,989

100.0

418,785

100.0

Real estate (Note 1)

Subtotal
TK Property Fund Equity Interests(Note 8)Notes 1. The real estate in trust and real estate are mainly apartment buildings.
2. “Tokyo Central 7 Wards” represents the Minato, Chiyoda, Shibuya, Shinjuku, Meguro, Setagaya and Shinagawa Wards of Tokyo.
3. “Tokyo 23 Wards” represents the Tokyo 23 wards other than the Tokyo Central 7 Wards.
4. “Tokyo Metropolitan Area” represents Tokyo (excluding the 23 wards of Tokyo) and Kanagawa, Saitama and Chiba prefectures.
5. “Major Regional Cities” represents major cities designated by government ordinance and similar cities excluding those in the Tokyo Metropolitan Area.
6. “Total amount held” is based on the amount recorded on the balance sheet (total amount of book value after depreciation in the case of real estates) as of the date of closingof accounts, and is rounded down to the nearest million yen.
7. “As a percentage of total assets” is the balance sheet amount of the applicable real estates expressed as a percentage of the total amount of assets, rounded to one decimal
place.
8. “TK property fund equity interests” owned in the 6th Fiscal Period are the equity interests in the TK property fund with Godo Kaisha RISING, Godo Kaisha RISING2, Godo Kaisha
RISING3 and Godo Kaisha RISING4 as the operators. “TK property fund equity interests” owned in the 7th Fiscal Period are the equity interests in the TK property fund with
Godo Kaisha RISING, Godo Kaisha RISING2, Godo Kaisha RISING3 and Godo Kaisha RISING4 as the operators.
9. Amounts less than the specified unit are rounded down and percentages are rounded off. Due to this, the sum total of respective figures does not necessarily add up to the sum
total indicated in the table above. The same applies for the rest of this report unless otherwise specified.

P-75 RESIDIA Yutenji18

I. Asset Management Report
2 Principal Assets Held

The following summarizes the principal assets held by ADR as of January 31, 2014 (the top 10 properties with the highest
book value at the end of the fiscal period).

Book value Leasable floor Leased floorarea (m2)(million yen)area (m2)Name of real estate

As a % of total
revenue fromPrimary usage
property(Note)
leasing

Occupancy
rate (%)

RESIDIA TOWER Meguro-Fudomae

15,75621,019.77

21,019.77

100.0

3.3

Apartments

Pacific Royal Court Minato Mirai
Ocean Tower

12,86026,082.53

25,934.50

99.4

4.2

Apartments

Park Tower Shibaura Bayward
Urban Wing

9,249

13,490.67

12,727.30

94.3

2.2

Apartments

RESIDIA TOWER Kami-Ikebukuro

8,812

31,250.61

30,189.97

96.6

5.2

Apartments

Motoazabu Place

8,307

7,382.62

7,116.61

96.4

1.3

Apartments

RESIDIA Daikanyama Sarugakucho/
Daikanyama Parkside Village

7,253

5,977.18

5,513.58

92.2

1.3

Apartments

RESIDIA TOWER Roppongi

6,842

5,978.20

5,223.76

87.4

1.2

Apartments

RESIDIA Nishi-Azabu

6,580

7,078.64

6,737.02

95.2

1.5

Apartments

RESIDIA TOWER Azabujuban

6,080

7,207.18

6,424.47

89.1

1.2

Apartments

RESIDIA Mejiro

6,011

13,069.70

12,305.52

94.2

1.6

Apartments

87,753

138,537.10

133,192.50

–

22.9

–

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

3 Real Estate Portfolio

The following are the itemized assets held by ADR as of January 31, 2014.

Propertyno.

Name of real estate

Location(indication of residential address)

6th Fiscal Period
7th Fiscal Period(Feb. 1, 2013 ~ Jul. 31, 2013)(Aug. 1, 2013 ~ Jan. 31, 2014)
Book value at Estimatedthe end of value at end
Type of
Total number
the fiscal of period Total number Occupancy
Occupancy
ownership
period (million yen) of tenants at rate at end of Rent revenue Percentage of tenants at rate at end of Rental revenue Percentage(Note 1)(thousand
yen)
of
total
rent
(thousand yen) of total rent
endof
periodendofperiod(million yen)period (%)
period (%)(Note 4)(Note 4)revenue (%) (tenants)
revenue (%)(tenants)(Note 3)(Note 3)(Note 2)P-2 RESIDIA Shimazuyama

Shinagawa-ku, Tokyo

P-3 RESIDIA Nakameguro

Meguro-ku, Tokyo

P-4 RESIDIA Setagaya-Tsurumaki

Setagaya-ku, Tokyo

P-5 RESIDIA Azabujuban

Minato-ku, Tokyo

P-7 RESIDIA Ikejiriohashi

Setagaya-ku, Tokyo

P-9 RESIDIA Kudanshita

Chiyoda-ku, Tokyo

P-10 RESIDIA Hatagaya

Shibuya-ku, Tokyo

P-13 RESIDIA Sakurajosui

Setagaya-ku, Tokyo

P-14 RESIDIA Kita-Shinagawa

Shinagawa-ku, Tokyo

P-15 RESIDIA Yoyoginomori

Shibuya-ku, Tokyo

P-16 RESIDIA Shinjuku-East III

Shinjuku-ku, Tokyo

P-19 Leopalace Udagawacho Mansion Shibuya-ku, Tokyo19

P-21 RESIDIA Shinjuku-East II

Shinjuku-ku, Tokyo

P-22 RESIDIA Shinjuku-East

Shinjuku-ku, Tokyo

P-23 RESIDIA Kanda-Iwamotocho

Chiyoda-ku, Tokyo

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

2,502

2,900

1

95.7

88,238

0.7

1

95.9

88,803

0.6

1,513

1,810

1

100.0

47,256

0.4

1

100.0

47,256

0.3

1,174

1,140

1

100.0

37,147

0.3

1

93.7

35,653

0.3

1,970

1,820

1

95.9

53,458

0.4

1

98.0

52,248

0.4

1,211

1,220

1

95.7

38,035

0.3

1

95.7

36,766

0.3

2,129

2,230

1

97.7

68,292

0.5

1

94.9

68,544

0.5

1,095

1,050

1

88.4

30,879

0.2

1

100.0

30,829

0.2

1,094

1,140

1

100.0

33,882

0.3

1

100.0

34,093

0.2

2,642

2,670

1

100.0

75,888

0.6

1

100.0

75,888

0.6

725

605

1

90.8

20,171

0.1

1

97.1

18,654

0.1

751

736

1

100.0

23,385

0.2

1

100.0

23,206

0.2

576

638

1

100.0

17,957

0.1

1

100.0

17,944

0.1

1,339

1,470

1

95.8

44,441

0.3

1

94.6

44,413

0.3

911

952

1

100.0

30,896

0.2

1

94.1

30,638

0.2

1,462

1,770

1

91.3

55,879

0.4

1

93.0

53,4630.4

Propertyno.

Name of real estate

Location(indication of residential address)

6th Fiscal Period
7th Fiscal Period(Feb. 1, 2013 ~ Jul. 31, 2013)(Aug. 1, 2013 ~ Jan. 31, 2014)
Book value at Estimatedthe end of value at end
Type of
Total number
the fiscal of period Total number Occupancy
Occupancy
ownership
period (million yen) of tenants at rate at end of Rent revenue Percentage of tenants at rate at end of Rental revenue Percentage(Note 1)(thousand
yen)
of
total
rent
(thousand yen) of total rent
endof
periodendof period(million yen)period (%)
period (%)(Note 4)(Note 4)revenue (%) (tenants)
revenue (%)(tenants)(Note 3)(Note 3)(Note 2)

(Note 2)

P-24 RESIDIA Azabujuban II

Minato-ku, Tokyo

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

P-26 RESIDIA Meguro

Shinagawa-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

728

678

1

100.0

21,050

0.2

1

96.0

20,5380.1

P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,594

1,780

1

98.8

51,900

0.4

1

97.7

52,631

0.4

P-30 Pianetta Shiodome

Minato-ku, Tokyo

1,874

1,980

1

92.7

58,613

0.4

1

97.3

61,255

0.4

P-31 RESIDIA Komazawadaigaku

Setagaya-ku, Tokyo

321

358

1

86.8

11,356

0.1

1

100.0

10,745

0.1

317

344

1

100.0

10,975

0.1

1

100.0

11,171

0.1

353

382

1

100.0

12,513

0.1

1

75.7

11,610

0.1

276

301

1

100.0

10,572

0.1

1

100.0

9,079

0.1

848

905

1

87.9

28,007

0.2

1

90.0

25,671

0.2

532

576

1

100.0

18,767

0.1

1

90.0

17,7470.1

P-32 RESIDIA Yoyogi

Shibuya-ku, Tokyo

P-33 RESIDIA Nishi-Shinjuku

Shinjuku-ku, Tokyo

P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

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

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

908

973

1

100.0

34,154

0.3

1

81.0

30,195

0.2

P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,238

2,520

1

100.0

72,418

0.5

1

93.6

70,676

0.5

P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,138

1,270

1

96.4

42,516

0.3

1

98.8

41,7790.3

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,980

2,190

1

95.0

68,454

0.5

1

94.1

67,307

0.5

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,167

1,200

1

95.5

37,473

0.3

1

94.7

36,264

0.3

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,280

1,360

1

96.8

41,365

0.3

1

98.4

40,582

0.3

P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,131

1,170

1

95.3

36,341

0.3

1

98.4

36,2390.3

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

895

925

1

94.7

31,324

0.2

1

98.1

30,585

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

1,021

1,140

1

97.1

35,238

0.3

1

97.7

36,286

0.3

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiaryinterests in trust

1,013

1,070

1

89.5

35,578

0.3

1

89.8

33,4380.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,231

2,380

1

96.7

75,031

0.6

1

93.2

72,292

0.5

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,548

3,340

1

93.7

91,275

0.7

1

89.8

94,242

0.7

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,143

1,200

1

95.5

39,210

0.3

1

92.7

38,117

0.3

P-50 RESIDIA Nishi-Azabu

Minato-ku, Tokyo

6,580

6,780

1

95.5 201,810

1.5

195.2 201,841

1.5

P-51 RESIDIA Daikanyama

Shibuya-ku, Tokyo

2,064

1,960

1

97.6

57,337

0.4

1

86.9

56,504

0.4

P-52 RESIDIA Ichigaya
RESIDIA RoppongiHinokichokoen
RESIDIA TOWER MeguroP-55
FudomaeP-56 RESIDIA Sangenjaya

Shinjuku-ku, Tokyo

2,415

2,640

1

93.8

75,041

0.6

1

95.6

74,8480.5Minato-ku, Tokyo

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

3,530

3,670

1

91.8 106,688

0.8

188.4 102,132

0.7

Shinagawa-ku, Tokyo

Real estate

15,756

16,6001

100.0 459,816

3.4

1100.0 459,176

3.3

Setagaya-ku, Tokyo

Real estate

2,646

3,020

1

97.1

89,411

0.7

1

99.1

88,592

0.6

P-58 RESIDIA Minami-Aoyama

Minato-ku, Tokyo

Real estate

726

493

1

100.0

16,556

0.1

1

89.2

14,917

0.1

P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,558

1,740

1

94.9

55,298

0.4

1

96.2

55,456

0.4

P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,387

1,300

1

91.0

37,949

0.3

1

86.8

36,937

0.3

P-53

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,983

2,000

1

100.0

56,862

0.4

1

85.7

53,947

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

6,080

5,560

1

89.5 175,319

1.3

189.1 168,640

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,227

1,330

1

91.3

40,272

0.3

1

90.7

36,482

0.3

P-64 RESIDIA Nakanobu

Shinagawa-ku, Tokyo

1,820

2,070

1

95.4

62,249

0.5

1

95.4

60,273

0.4

1,577

1,610

1

95.1

46,299

0.3

1

94.8

46,774

0.3

1,698

1,640

1

98.0

51,845

0.4

1

93.7

47,885

0.3

P-65 RESIDIA Azabudai

Minato-ku, Tokyo

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,114

1,200

1

100.0

38,391

0.3

1

98.0

37,632

0.3

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,249

1,320

1

97.8

41,733

0.3

1

97.2

39,9900.3

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,772

1,940

1

90.7

57,196

0.4

1

93.6

58,5900.4

P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

897

901

1

88.7

27,336

0.2

1

96.2

27,036

0.2

P-72 RESIDIA Mejiro-Otomeyama

Shinjuku-ku, Tokyo

945

1,010

1

94.9

31,545

0.2

1

96.3

32,432

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust

4,515

5,020

1

90.9 164,448

1.2

190.3 153,755

1.1

P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

905

824

1

100.0

0.2

1

100.0

0.2

26,991

29,97620

I. Asset Management Report

Propertyno.

Name of real estate

Location(indication of residential address)

6th Fiscal Period
7th Fiscal Period(Feb. 1, 2013 ~ Jul. 31, 2013)(Aug. 1, 2013 ~ Jan. 31, 2014)
Book value at Estimatedthe end of value at end
Type of
Total number
the fiscal of period Total number Occupancy
Occupancy
ownership
period (million yen) of tenants at rate at end of Rent revenue Percentage of tenants at rate at end of Rental revenue Percentage(Note 1)(thousand
yen)
of
total
rent
(thousand yen) of total rent
endof
periodendof period(million yen)period (%)
period (%)(Note 4)(Note 4)revenue (%) (tenants)
revenue (%)(tenants)(Note 3)(Note 3)(Note 2)

P-77 Motoazabu Place

Minato-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

P-78 RESIDIA TOWER Roppongi

Minato-ku, Tokyo

Real estate
Beneficiaryinterests in trust
Beneficiaryinterests in trust
Real estate andleasehold rights toreal estate

P-75 RESIDIA Yutenji

Meguro-ku, Tokyo

P-76 Park Tower Shibaura Bayward Urban Wing Minato-ku, Tokyo

P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

P-80 RESIDIA Yoyogikoen

Shibuya-ku, Tokyo

P-81 Windsor House Hiroo

Shibuya-ku, Tokyo

P-83

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

5,151

5,370

1

95.7 154,228

1.1

194.1 151,359

1.1

9,249

9,760

1

92.1 292,787

2.2

194.3 301,481

2.2

8,307

6,110

1

88.2 169,416

1.3

196.4 178,107

1.3

6,842

5,790

1

91.3 167,1001.2

187.4 166,295

1.2

873

884

1

100.0

29,009

0.2

1

94.5

28,373

0.2

1,067

737

1

100.0

27,450

0.2

1

100.0

28,790

0.2

1,694

1,300

1

100.0

49,500

0.4

1

100.0

49,3200.4

Beneficiaryinterests in trust

7,253

6,040

1

90.1 175,855

1.3

192.2 173,118

1.3

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,420

1,430

1

88.5

41,191

0.3

1

80.8

38,2800.3

P-85 RESIDIA Komazawa

Setagaya-ku, Tokyo

870

1,070

1

100.0

28,095

0.2

1

100.0

28,0950.2

P-86 RESIDIA Shibaura KAIGAN

Minato-ku, Tokyo

2,429

2,850

1

97.7

90,161

0.7

1

98.9

98,1390.7

P-87 RESIDIA Ichigaya-yakuoji

Shinjuku-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

2,087

2,340

1

100.0

61,172

0.5

1

100.0

61,307

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,610

1,680

1

97.4

51,537

0.4

1

95.0

49,525

0.4

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,451

3,700

1

89.0 108,169

0.8

193.7 102,887

0.7

P-90 RESIDIA Sasazuka II

Shibuya-ku, Tokyo

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

3,832

3,910

1

94.3 120,007

0.9

191.6 115,689

0.8

987

1,050

1

96.7

25,577

0.2

1

94.2

31,174

0.2

798

920

1

97.9

25,991

0.2

1

91.3

28,987

0.2

1,277

1,410

1

93.8

34,721

0.3

1

96.0

41,789

0.3

1,671

1,810

1

97.9

45,680

0.3

1

96.9

54,995

0.4

1,524

1,670

1

100.0

41,110

0.3

1

97.3

50,380

0.4

3,854

3,970

–

–

–

–

1

95.6

89,873

0.7

1,686

2,120

1

95.2

67,114

0.5

1

95.2

64,931

0.5

2,308

3,130

1

98.8 107,516

0.8

1

95.2

96,264

0.7

1,448

1,620

1

100.0

46,846

0.3

1

100.0

46,833

0.3

1,611

1,850

1

100.0

50,255

0.4

1

100.0

50,273

0.4

986

1,220

1

97.5

38,770

0.3

1

97.5

38,136

0.3

P-91 RESIDIA Meguro III

Meguro-ku, Tokyo

P-92 RESIDIA Jiyugaoka II

Setagaya-ku, Tokyo

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

P-94 RESIDIA Omori II

Shinagawa-ku, Tokyo

P-95 RESIDIA Shirokane-Takanawa

Minato-ku, Tokyo

P-96 RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

C-1

Chuo-ku, TokyoRESIDIA Mitsukoshimae

C-2 RESIDIA Kamata

Ota-ku, Tokyo

C-3 RESIDIA Ikebukuro

Toshima-ku, Tokyo

C-4 RESIDIA Bunkyo-Hongo

Bunkyo-ku, Tokyo

C-5 RESIDIA Asakusabashi

Taito-ku, Tokyo

C-6 Maison Eclairee Ekoda

Nerima-ku, Tokyo

C-7 RESIDIA Ueno-Okachimachi

Taito-ku, Tokyo

C-8 RESIDIA Bunkyo-Hongo II

Bunkyo-ku, Tokyo

C-9 RESIDIA Ryogoku

Sumida-ku, Tokyo

C-10 RESIDIA Higashi-Ginza

Chuo-ku, Tokyo

C-12 RESIDIA Nihonbashi-Ningyocho II Chuo-ku, Tokyo

21(Note 2)C-13 RESIDIA Omori-Higashi

Ota-ku, Tokyo

C-15 RESIDIA Kinshicho

Sumida-ku, Tokyo

C-16 RESIDIA Negishi

Taito-ku, Tokyo

C-17 RESIDIA Shinkawa

Chuo-ku, Tokyo

C-18 RESIDIA Kamiikebukuro

Toshima-ku, Tokyo

C-19 RESIDIA Shin-nakano

Nakano-ku, Tokyo

C-21 RESIDIA Bunkyo-Yushima II

Bunkyo-ku, Tokyo

940

964

1

93.6

36,925

0.3

1

100.0

35,977

0.3

2,987

3,290

1

95.2

97,779

0.7

1

97.8

98,201

0.7

1,597

1,630

1

97.8

48,947

0.4

1

97.8

49,686

0.4

882

957

1

100.0

31,415

0.2

1

100.0

31,609

0.2

5,162

4,920

1

100.0 137,276

1.0

1100.0 136,862

1.0

3,082

3,270

1

98.1 105,738

0.8

1

98.2

97,375

0.7

1,923

1,780

1

97.9

55,436

0.4

1

92.6

57,965

0.4

4,138

3,900

1

97.7 116,500

0.9

195.8 116,410

0.8

855

815

1

92.6

26,165

0.2

1

100.0

26,963

0.2

1,819

1,900

1

92.6

59,669

0.4

1

92.6

55,575

0.4

532

614

1

100.0

22,035

0.2

1

97.9

20,820

0.2

338

412

1

90.0

15,028

0.1

1

100.0

14,636

0.1

972

1,050

1

93.0

33,635

0.2

1

93.3

31,8580.2

Propertyno.

Name of real estate

Location(indication of residential address)

6th Fiscal Period
7th Fiscal Period(Feb. 1, 2013 ~ Jul. 31, 2013)(Aug. 1, 2013 ~ Jan. 31, 2014)
Book value at Estimatedthe end of value at end
Type of
Total number
the fiscal of period Total number Occupancy
Occupancy
ownership
period (million yen) of tenants at rate at end of Rent revenue Percentage of tenants at rate at end of Rental revenue Percentage(Note 1)(thousand
yen)
of
total
rent
(thousand yen) of total rent
endof
periodendof period(million yen)period (%)
period (%)(Note 4)(Note 4)revenue (%) (tenants)
revenue (%)(tenants)(Note 3)(Note 3)(Note 2)

(Note 2)

C-22 RESIDIA Tsukiji

Chuo-ku, Tokyo

Real estate

1,392

1,560

1

98.9

48,731

0.4

1

98.5

50,7000.4

C-23 RESIDIA Sasazuka

Suginami-ku, Tokyo

Beneficiaryinterests in trust

1,739

1,880

1

94.7

60,471

0.4

1

95.4

60,243

0.4

C-24 RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,167

1,310

1

100.0

38,001

0.3

1

100.0

38,001

0.3

C-25 RESIDIA Tamagawa

Ota-ku, Tokyo

1,239

1,420

1

100.0

40,381

0.3

1

100.0

40,381

0.3

C-26 RESIDIA Korakuen

Bunkyo-ku, Tokyo

575

636

1

97.2

20,398

0.2

1

100.0

21,1760.2

C-27 RESIDIA Ginza-Higashi

Chuo-ku, Tokyo

1,917

2,150

1

100.0

58,330

0.4

1

100.0

58,395

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

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

821

932

1

100.0

34,584

0.3

1

100.0

34,584

0.3

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

1,013

1,030

1

98.5

36,514

0.3

1

98.1

36,281

0.3

C-31 RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,059

1,150

1

97.8

36,818

0.3

1

95.4

35,231

0.3

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,318

1,450

1

95.3

46,416

0.3

1

96.5

46,7370.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiaryinterests in trust

2,367

2,660

1

98.3

80,247

0.6

1

97.5

80,386

0.6

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,310

2,380

1

91.7

73,128

0.5

1

96.2

71,441

0.5

C-35 RESIDIA Bunkyo-Otowa

Bunkyo-ku, Tokyo

3,200

3,580

1

100.0 108,352

0.8

1100.0 107,846

0.8

C-36 RESIDIA Bunkyo-Sengoku

Bunkyo-ku, Tokyo

C-37 RESIDIA Bunkyo-Yushima

Bunkyo-ku, Tokyo

C-38 RESIDIA Ikegami

Ota-ku, Tokyo

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

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

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,394

1,480

1

96.8

45,414

0.3

1

91.8

43,677

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiaryinterests in trust

935

1,020

1

93.9

35,713

0.3

1

89.2

34,152

0.2

669

777

1

94.2

26,356

0.2

1

90.4

22,246

0.2

1,001

1,150

1

95.3

36,975

0.3

1

96.9

37,606

0.3

360

380

1

97.1

13,632

0.1

1

93.7

14,371

0.1

530

627

1

100.0

21,117

0.2

1

100.0

21,072

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,280

1,410

1

100.0

42,327

0.3

1

91.2

42,146

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,808

1,850

1

95.8

59,300

0.4

1

98.2

56,3490.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,249

1,300

1

96.6

44,730

0.3

1

88.5

42,074

0.3

C-45 RESIDIA Shinkawa II

Chuo-ku, Tokyo

1,256

1,370

1

98.5

42,215

0.3

1

92.9

40,5180.3

C-46 RESIDIA Mejiro

Toshima-ku, Tokyo

6,011

6,360

1

94.0 220,556

1.6

194.2 217,583

1.6

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

649

737

1

93.3

28,389

0.2

1

96.7

26,7270.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

Real estate

5,300

6,140

1

100.0 164,563

1.2

1100.0 164,070

1.2

C-49 RESIDIA Suginami-Honancho

Suginami-ku, Tokyo

3,815

4,770

1

100.0 137,315

1.0

1100.0 137,171

1.0

C-50 RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

890

1,070

1

100.0

29,739

0.2

1

100.0

29,739

0.2

2,001

2,540

1

99.4

78,248

0.6

1

96.1

76,957

0.6

1,139

1,330

1

100.0

44,127

0.3

1

100.0

39,0180.3

C-51 RESIDIA Kiba

Koto-ku, Tokyo

C-52 RESIDIA Bunkyo-Yushima III

Bunkyo-ku, Tokyo

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

C-53 RESIDIA Bunkyo-Honkomagome

Bunkyo-ku, Tokyo

Real estate

2,394

2,640

1

94.0

79,629

0.6

1

97.2

79,753

0.6

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

2,596

3,120

1

97.3

91,841

0.7

1

96.0

89,387

0.6

C-55 RESIDIA Minamisenjyu

Arakawa-ku, Tokyo

Beneficiaryinterests in trust
Beneficiaryinterests in trust

2,671

3,300

1

94.5 157,983

1.2

197.6 158,351

1.2

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

Real estate

1,809

1,970

1

98.0

63,336

0.5

1

98.9

62,186

0.5

C-57 RESIDIA Monzennakacho

Koto-ku, Tokyo

1,017

1,100

1

100.0

35,495

0.3

1

100.0

35,526

0.3

C-58 RESIDIA Ochanomizu

Bunkyo-ku, Tokyo

2,138

2,450

1

96.4

74,154

0.6

1

97.8

74,653

0.5

C-59 RESIDIA Omori

Ota-ku, Tokyo

1,173

1,310

1

98.7

40,715

0.3

1

100.0

42,086

0.3

C-60 RESIDIA Nakamurabashi

Nerima-ku, Tokyo

1,095

1,220

1

98.7

38,792

0.3

1

97.3

38,235

0.3

C-61 RESIDIA Kachidoki

Chuo-ku, Tokyo

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

1,839

2,090

1

94.5

63,911

0.5

1

96.7

65,488

0.5

2,375

2,550

1

97.8

80,729

0.6

1

100.0

80,418

0.6

686

744

1

100.0

25,491

0.2

1

100.0

25,414

0.2

969

1,060

1

95.6

34,433

0.3

1

92.3

33,351

0.2

C-62 RESIDIA Bunkyo-Otowa II

Bunkyo-ku, Tokyo

C-63 RESIDIA Kinshicho III

Koto-ku, Tokyo

C-64 RESIDIA Kamata III

Ota-ku, Tokyo22

I. Asset Management Report

Location(indication of residential address)

6th Fiscal Period
7th Fiscal Period(Feb. 1, 2013 ~ Jul. 31, 2013)(Aug. 1, 2013 ~ Jan. 31, 2014)
Book value at Estimatedthe end of value at end
Type of
Total number
the fiscal of period Total number Occupancy
Occupancy
ownership
period (million yen) of tenants at rate at end of Rent revenue Percentage of tenants at rate at end of Rental revenue Percentage(Note 1)(thousand
yen)
of
total
rent
(thousand yen) of total rent
endof
periodendof period(million yen)period (%)
period (%)(Note 4)(Note 4)revenue (%) (tenants)
revenue (%)(tenants)(Note 3)(Note 3)C-65 RESIDIA TOWER Kami-Ikebukuro

Toshima-ku, Tokyo

Beneficiaryinterests in trust

8,812

9,380

1

4.3

1

96.6 709,350

5.2

C-66 RESIDIA Takashima-Daira

Itabashi-ku, Tokyo

Real estate

537

555

–

–

–

–

1

100.0

3,991

0.0

C-67 RESIDIA Shimura-Sakaue

Itabashi-ku, Tokyo

Real estate

617

633

–

–

–

–

1

100.0

4,277

0.0

C-68 RESIDIA Shimura-Sakaue II

Itabashi-ku, Tokyo

Beneficiaryinterests in trust

1,157

1,250

–

–

–

–

1

100.0

8,498

0.1

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

439

456

–

–

–

–

1

100.0

3,225

0.0

Yokohama-shi, Kanagawa

3,018

3,800

1

100.0 174,072

1.3

1100.0 174,072

1.3

Propertyno.

Name of real estate(Note 2)

96.3 580,080

S-11 Tokyo Student-House WAKO

Wako-shi, Saitama

S-12 RESIDIA Kokubunji

Kokubunji-shi, Tokyo

S-14 RESIDIA Yokohama-Kannai

Yokohama-shi, Kanagawa

S-15 RESIDIA Okurayama

Yokohama-shi, Kanagawa

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

750

834

1

100.0

27,168

0.2

1

100.0

27,0060.2

S-16 RESIDIA Musashikosugi

Kawasaki-shi, Kanagawa

Real estate

1,533

1,600

1

98.8

56,682

0.4

1

96.8

55,0800.4

Funabashi-shi, Chiba

Beneficiaryinterests in trust

2,627

2,800

1

100.0

94,573

0.7

1

100.0

95,134

0.7

Musashino-shi, Tokyo

Beneficiaryinterests in trust

1,438

1,460

1

91.9

44,756

0.3

1

89.8

47,0900.3

Yokohama-shi, Kanagawa

Real estate andleasehold rights toreal estate

12,86014,5001

99.4 568,820

4.2

199.4 572,962

4.2

S-21 Maison Yachiyodai

Yachiyo-shi, Chiba

Beneficiaryinterests in trust

839

869

1

91.6

0.3

1

87.7

0.3

S-1

Tokyo Student-House HIYOSHIDAI

S-2 Chester House Kawaguchi

Kawaguchi-shi, Saitama

S-4 RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

S-5 RESIDIA Shin-Yokohama

Yokohama-shi, Kanagawa

S-7 RESIDIA Chofu

Chofu-shi, Tokyo

S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

Pacific Royal Court Minato Mirai
Ocean Tower

743

696

1

94.9

29,428

0.2

1

94.9

28,667

0.2

1,085

1,060

1

88.5

41,857

0.3

1

100.0

42,601

0.3

1,855

1,820

1

100.0

61,398

0.5

1

100.0

61,170

0.4

1,117

1,080

1

90.6

34,539

0.3

1

96.3

34,495

0.3

721

687

1

100.0

26,182

0.2

1

100.0

26,182

0.2

491

538

1

100.0

20,239

0.2

1

100.0

19,308

0.1

1,609

1,730

1

92.1

59,006

0.4

1

99.1

57,1870.4

41,622

41,651

S-22 Life & Senior House Kohoku II

Yokohama-shi, Kanagawa

Real estate

1,604

1,730

1

100.0

70,704

0.5

1

100.0

70,704

0.5

S-23 College Court Tanashi

Nishi-Tokyo-shi, Tokyo

809

993

1

100.0

32,760

0.2

1

100.0

32,7600.2

S-24 RESIDIA Urayasu

Urayasu-shi, Chiba

2,182

2,450

1

97.2

74,494

0.6

1

90.9

78,816

0.6

S-25 RESIDIA Minami-Gyotoku

Ichikawa-shi, Chiba

864

964

1

100.0

38,874

0.3

1

94.1

35,035

0.3

S-26 RESIDIA Urayasu II

Urayasu-shi, Chiba

843

930

1

97.3

32,979

0.2

1

100.0

32,0080.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

S-28 RESIDIA Kawasaki

Kawasaki-shi, Kanagawa

S-29 Cocofump Hiyoshi

Yokohama-shi, Kanagawa

R-2 RESIDIA Imadegawa

Kyoto-shi, Kyoto

R-4 RESIDIA Higashi-Sakura

Nagoya-shi, Aichi

R-5 RESIDIA Kameyama

Kameyama-shi, Mie

R-6 RESIDIA Ryokuchikoen

Toyonaka-shi, Osaka

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

Kobe-shi, Hyogo

R-10 RESIDIA Hakata

799

884

1

98.7

36,809

0.3

1

97.3

32,680

0.2

1,708

1,910

1

100.0

63,602

0.5

1

98.2

61,677

0.4

1,088

1,090

1

100.0

25,500

0.2

1

100.0

45,000

0.3

1,577

1,490

1

100.0

65,088

0.5

1

100.0

65,323

0.5

1,140

1,250

1

96.6

48,045

0.4

1

99.0

47,643

0.3

1,596

1,140

1

97.1

61,938

0.5

1

97.1

61,499

0.4

938

871

1

96.0

31,989

0.2

1

94.3

32,1660.2

Beneficiaryinterests in trust

3,632

3,580

1

100.0 125,3760.9

1100.0 125,451

0.9

Fukuoka-shi, Fukuoka

Real estate

1,185

1,220

1

100.0

51,432

0.4

1

98.8

50,1850.4

R-11 RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiaryinterests in trust

827

947

1

98.8

37,155

0.3

1

93.8

37,2780.3

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

2,086

2,490

1

94.7

90,475

0.7

1

95.4

89,4250.7

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

926

1,000

1

97.1

41,782

0.3

1

99.0

42,5430.3

R-14 RESIDIA Utsubokoen

Osaka-shi, Osaka

Real estate

1,109

1,320

1

97.7

48,724

0.4

1

97.8

47,474

0.3

R-8

23

(Note 2)RESIDIA Kobe Port Island (South
Bldg.; Centre Bldg.)
RESIDIA Kobe Port Island (North
Bldg.)

Location(indication of residential address)

6th Fiscal Period
7th Fiscal Period(Feb. 1, 2013 ~ Jul. 31, 2013)(Aug. 1, 2013 ~ Jan. 31, 2014)
Book value at Estimatedthe end of value at end
Type of
Total number
the fiscal of period Total number Occupancy
Occupancy
ownership
period (million yen) of tenants at rate at end of Rent revenue Percentage of tenants at rate at end of Rental revenue Percentage(Note 1)(thousand
yen)
of
total
rent
(thousand yen) of total rent
endof
periodendof period(million yen)period (%)
period (%)(Note 4)(Note 4)revenue (%) (tenants)
revenue (%)(tenants)(Note 3)(Note 3)

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiaryinterests in trust

1,874

2,160

1

98.7

77,309

0.6

1

98.9

77,5290.6

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,236

2,700

1

100.0

89,977

0.7

1

100.0

89,599

0.7

1,243

1,380

1

99.2

68,628

0.5

1

97.0

67,587

0.5

886

1,020

1

92.8

38,719

0.3

1

100.0

39,9650.3

Propertyno.

Name of real estate(Note 2)

(Note 2)

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

R-19 RESIDIA Tenjin-Minami

Fukuoka-shi, Fukuoka

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi, Fukuoka

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

303

350

1

97.5

16,232

0.1

1

94.8

15,9890.1

R-21 Mare

Nagoya-shi, Aichi

Real estate

644

716

1

100.0

27,344

0.2

1

88.8

25,7470.2

R-24 RESIDIA Minami-Ichijo

Sapporo-shi, Hokkaido

Real estate

1,551

1,780

1

99.7

74,903

0.6

1

98.5

74,7720.5

R-25 RESIDIA Odori-Nishi

Sapporo-shi, Hokkaido

Real estate

1,269

1,270

1

98.7

57,189

0.4

1

97.0

57,3890.4

R-26 RESIDIA Kita-Sanjo

Sapporo-shi, Hokkaido

Real estate

1,064

1,220

1

99.3

50,021

0.4

1

98.6

50,0130.4

R-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

791

832

1

97.4

31,939

0.2

1

100.0

33,5920.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

678

700

1

97.9

35,454

0.3

1

95.8

34,8600.3

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,517

3,850

1

87.6 138,382

1.0

193.6 138,478

1.0

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi, Hokkaido

Real estate

1,002

1,070

1

89.3

44,065

0.3

1

94.9

44,0360.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

721

770

1

100.0

29,989

0.2

1

92.6

30,0530.2

R-34 RESIDIA Odori-Koen

Sapporo-shi, Hokkaido

Real estate

1,920

2,230

1

99.0

92,670

0.7

1

100.0

93,2650.7

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,163

1,440

1

99.0

48,328

0.4

1

99.0

48,881

0.4

R-36 RESIDIA Hisaya-Oodori

Nagoya-shi, Aichi

665

826

1

98.0

30,716

0.2

1

98.6

30,384

0.2

540

675

1

100.0

26,023

0.2

1

100.0

23,986

0.2

506

590

1

100.0

21,839

0.2

1

100.0

21,8420.2

R-37 RESIDIA Sendai-Miyamachi

Sendai-shi, Miyagi

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiaryinterests in trust
Beneficiaryinterests in trust
Beneficiaryinterests in trust

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,472

1,730

1

98.4

62,134

0.5

1

95.4

61,0090.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

1,060

1,190

1

95.3

42,729

0.3

1

95.2

42,3650.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

1,015

1,160

1

90.3

38,408

0.3

1

96.5

40,824

0.3

2,428

2,760

1

96.0 104,1410.8

194.5 104,469

0.8

1,234

1,440

1

100.0

0.4

1

98.4

0.4

2,797

3,300

1

95.5 118,470

0.9

198.7 121,444

0.9

929

982

1

98.3

36,351

0.3

1

98.1

42,269

0.3

1,979

2,130

1

88.7

65,314

0.5

1

96.0

74,470

0.5

1,008

1,070

1

96.6

34,074

0.3

1

90.8

40,324

0.3

1,542

1,800

1

98.5

64,125

0.5

1

99.0

75,919

0.6

1,265

1,320

1

90.2

38,950

0.3

1

93.5

46,4440.3

R-42 RESIDIA Nishijin

Fukuoka-shi, Fukuoka

R-43 RESIDIA Tsurumai

Nagoya-shi, Aichi

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi, Hokkaido

R-46 RESIDIA Shinsaibashi West

Osaka-shi, Osaka

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi, Hokkaido

R-49 RESIDIA Gosho-Higashi

Kyoto-shi, Kyoto

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

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

904

922

1

95.9

29,729

0.2

1

94.7

34,4780.3

R-51 RESIDIA Miyakojima I/II

Osaka-shi, Osaka

Real estate

3,376

3,790

1

100.0 108,934

0.8

197.8 155,669

1.1

Sendai-shi, Miyagi

Beneficiaryinterests in trust

1,827

1,780

–

–

–

1

98.4

23,3440.2

393,430

417,027204

96.5 13,462,948

100.0

210

96.5 13,756,780

100.0

R-52 RESIDIA TOWER Sendai

Total

–

55,89055,341

Notes 1. “Estimated value at end of period” is the appraisal value or survey-based value provided by a real estate appraiser as of January 31, 2014, the valuation date, pursuant to ADR’s
Articles of Incorporation and the “Regulations Concerning Accounting of Investment Corporations” issued by the Cabinet Office.
2. For “Total number of tenants,” tenants that have executed a master lease agreement with a master lessee are counted as 1.
The “Total” column for “Total number of tenants” indicates the sum total number of master lease agreements, concluded with 13 master lessees, as a master lease agreement
is executed for all assets held by ADR as of January 31, 2014.
3. “Occupancy rate” is calculated by 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.

24

I. Asset Management Report
4 Securities Portfolio

The following are securities held by ADR as of January 31, 2014.

Name

Type of asset Quantity

Equity interests in TK property
fund with Godo Kaisha RISING as
operator (Note 2)
Equity interests in TK property
fund with Godo Kaisha RISING2 as
operator (Note 3)
Equity interests in TK property
fund with Godo Kaisha RISING3 as
operator (Note 4)
Equity interests in TK property
fund with Godo Kaisha RISING4 as
operator (Note 5)

TK property
fund equity
interests
TK property
fund equity
interests
TK property
fund equity
interests
TK property
fund equity
interests

Total

–

Book value(thousand yen)
Unit
price

AmountAssessed value
Gain (Loss) on(thousand yen) (Note 1)
valuation(thousand Notes
Unit
Amount
yen)
price

–

–

261,231–

257,000-4,231–––

204,401–

201,860-2,541–––

315,210–311,202-4,007–––250,944–248,308-2,635–––

1,031,787–

1,018,372-13,415–

Notes 1. The “Assessed value” is the value quoted by the operator of TK property fund pursuant to regulations provided by The Investment Trusts Association, Japan.
2. TK property fund owns the real estate beneficiary interests in trust for “Forecity Ojima,” “Artis Court Minami-Aoyama,” “Pleiade Nakameguro,” “N.S ZEAL Higashizakura,”“Human Heim Honcho” and “Sun Vario Haranomachi-ekimae.”
3. TK property fund owns the real estate beneficiary interests in trust for “City Village Yotsuya Sanchome II,” “Ikebukuro DUPREX R’s,” “Belle Face Sakaemach,” “Belle Face
Tsutsujigaoka (West/East)” and “AGILIA Sapporo Oodorihigashi.”
4. TK property fund owns the real estate beneficiary interests in trust for “Lifesuta Kego,” “Bebless Sapporo-Eki,” “Bebless Souen,” “Grand E’terna Okayama,” “Grand E’terna
Kyoto-Okazaki,” “Grand E’terna Nerima,” “Grand E’terna Sagamihara,” “Grand E’terna Sendai-Ichibancho,” “Lumiere Yokohama-Bashamichi,” “Preminente Park Maizuru II,”
“Preminente Park Yakuin-Odori,” “Preminente Park Hakata-East,” and “Preminente Park Takamiya.”
5. TK property fund owns the real estate beneficiary interests in trust for “Chester Court Ochanomizu,” “Chester House Iwamotocho,” “Chester House Shinagawa,” “Chester
Court Asakusabashi,” “Chester House Akihabara” and “Chester House Azumabashi.”
6 Other than the above, ADR holds real estate beneficiary interests in trust that are securities as defined in Article 2, Paragraph 2, Item 1 of the Financial Instruments and ExchangeAct. For convenience of reference, however, the underlying real estate in trust of those beneficiary interests in trust is included in “3. Real Estate Portfolio.”

5 Specified Transactions

The following is the status of ADR’s specified transactions as of January 31, 2014.
(thousand yen)Contract amount (Note 1)

Account

Type

Of which, exceeding
1 yearFair value (Notes 2, 3)

Transaction other than Interest rate swap transaction
market transaction
Payable fixed; Receivable floating

140,225,488

120,195,488-1,056,142

Total

140,225,488

120,195,488-1,056,142

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

6 Other Assets

Real estate and real estate beneficiary interests in trust are all listed in “3. Real Estate Portfolio.” As of January 31, 2014,
there are no major specified assets in the portfolio that are key investment targets of ADR other than those listed in that
section and earlier in “4. Securities Portfolio.”25

7 Assets Held by Country and Region

There are no applicable matters concerning countries and regions other than Japan.

P-55 RESIDIA TOWER Meguro-Fudomae26

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 real estate
beneficiary interests in trust ADR owns. The estimated amount includes portions that are to be recorded as expenses foraccounting purposes.
(million yen)

Name of real estate(Location)

Estimated amounts
Payment for the Cumulative
current period amount paid

PurposeEstimated Duration

RESIDIA Roppongi-Hinokichokoen
Major repair work
(Minato-ku, Tokyo)

From: Nov. 2013
To: Mar. 2014

69

51

51

RESIDIA Mejiro(Toshima-ku, Tokyo)

Major repair work (6th Fiscal
Period July 31, 2013)

From: May 2014
To: Jul. 2014

60

–

–

RESIDIA Ebisu(Shibuya-ku, Tokyo)

Major repair work

From: Jan. 2014
To: Mar. 2014

22

–

–

RESIDIA Shibaura(Minato-ku, Tokyo)

Value-enhancement work on
individual units

From: Feb. 2014
To: Jul. 2014

16

–

–

RESIDIA Kichijoji(Musashino-shi, Tokyo)

Value-enhancement work on
individual units

From: Feb. 2014
To: Jul. 2014

12

–

–

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 250 million yen for the entire portfolio and, when combined with repairs
and maintenance cost of 387 million yen, were 638 million yen.
(million yen)

Name of real estate(Location)

PurposeAmount paid

RESIDIA Azabujuban(Minato-ku, Tokyo)

Major repair work

From: Nov. 2013
To: Jan. 201445

RESIDIA Meguro(Shinagawa-ku, Tokyo)

Major repair work

From: Nov. 2013
To: Jan. 2014

20

RESIDIA Ochanomizu(Bunkyo-ku, Tokyo)

Repairs to external wall

From: Dec. 2013
To: Jan. 2014

7

Other real estate

Renovations
Total

27

Implementation period

177
250

3 Cash Reserves for Upgrades and Renovations

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

Fiscal period

3rd FP

4th FP

5th FP

6th FP

7th FP

Operating period

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

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

From: Aug. 1, 2012
To: Jan. 31, 2013

From: Feb. 1, 2013
To: Jul. 31, 2013

From: Aug. 1, 2013
To: Jan. 31, 2014

1,843

1,748

1,704

1,671

1,625

245

261

320

357

455

341

304

353

403

397

1,748

1,704

1,671

1,625

1,684

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

R-44 RESIDIA Kobe-Isogami

28

I. Asset Management Report
Expenses and Liabilities
1 Entrustment Expenses(thousand yen)

Item(a) Asset management fee

6th FP(Note 1)

7th FP

829,251(Note 2)

894,492(Note 3)(b) Asset custody fee

9,059

9,207

(c) Administrative service fees

60,66764,479(d) Directors’ compensations

2,400

2,400

272,427

321,194

1,173,804

1,291,773(e) Other
Total

Notes 1. Asset management fee is the sum total amount of the base fee and incentive fee.
2. Aside from the amounts indicated above, a total of 272,915 thousand yen has been paid as acquisition fee and included in the price of properties acquired.
3. Aside from the amounts indicated above, a total of 84,756 thousand yen has been paid as acquisition fee and included in the price of properties acquired.

2 Loans

The following lists the outstanding investment corporation bonds issued by ADR as of January 31, 2014.
Account

Drawdown dateLenders
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Short-termloans payable

Sumitomo Mitsui Trust Bank Limited

January 31, 2014

Subtotal
Development Bank of Japan Inc.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

February 17, 2011
September 22, 2010

1,080

–

1,480

–

2,560

250

3,554

13

13

1,147

–

573

–

2,610

–

Sumitomo Mitsui Banking Corporation November 25, 2010

1,770

–

Aozora Bank, Ltd.

1,530

–

Sumitomo Mitsui Banking Corporation November 30, 2010

1,806

–

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300

–

1,700

–

8,664

8,664

4,332

4,332

443

443

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

April 27, 2012

February 17, 2011

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

443

443

354

354

Mitsubishi UFJ Trust and Banking Corporation

265

265

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

657

657

Sumitomo Mitsui Trust Bank Limited

343

343

800

800

Sumitomo Mitsui Banking Corporation

Aozora Bank, Ltd.

February 17, 2011

June 25, 2012

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

November 18, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Resona Bank, Limited
The Bank of Fukuoka, Ltd.
Aozora Bank, Ltd.
Subtotal

29–

Sumitomo Mitsui Trust Bank Limited

Sumitomo Mitsui Trust Bank Limited

Current portionof long-termloans payable

October 22, 2009

Balance at start Balance at end
Interest rate
Repayment dateof 7th FP
of 7th FP(Note 1)(million yen) (million yen)August 31, 2011

700

700

–

2,400

–

1,600

–

2,000

–

1,000

–

700

29,70528,271

0.83%

February 17, 2014

Repayment
methodUse

Description

Lump-sum
repayment
at maturity(Note 5)

Unsecured
Unguaranteed

3.10%(Note 8)1.86%

(Note 9)–September 21, 2013

(Note 6)–

November 15, 2013

(Note 5)–

November 15, 2013

(Note 5)–January 31, 2014

(Note 5)

1.63%
(Note 2)February 17, 2014

(Note 6)

Installment

Lump-sum
repayment
at maturity(Note 6)(Note 6)

Unsecured
Unguaranteed

1.63%(Note 2)February 17, 2014

0.54%

June 30, 2014

(Note 5)0.70%

October 31, 2014

(Note 6)1.01%
(Note 2)January 31, 2015

(Note 5)(Note 6)

Account
Lenders

Drawdown date

Development Bank of Japan Inc.

June 25, 2008

2,304

2,304

Development Bank of Japan Inc.

October 22, 2009

3,429

–

Repayment
methodUse

2.70%

June 25, 2015

Lump-sum
repayment
at maturity(Note 5)–(Note 8)Installment(Note 6)

Lump-sum
November 24, 2017 repayment
at maturity(Note 5)Development Bank of Japan Inc.

November 25, 2010

956

956

1.90%

Development Bank of Japan Inc.

February 17, 2011

218

211

1.86%

(Note 9)March 1, 2011

1,083

1,083

1.68%
(Note 2)February 29, 2016

(Note 3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

492

492

Sumitomo Mitsui Trust Bank Limited

492

492

2,264

2,264

February 29, 2016

(Note 3)

Shinsei Bank, Limited

295

295

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500

500

500

500

1.69%
(Note 2)February 29, 2016

(Note 3)

700

700
1.75%
(Note 2)

April 28, 2017

(Note 5)

Mizuho Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Trust Bank Limited

March 1, 2011

March 10, 2011

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

April 28, 2011

Sumitomo Mitsui Trust Bank Limited

3,500

3,500

3,700

3,700

2,000

2,000

1.68%
(Note 2)

Installment

May 31, 2011

2,500

2,500

1.52%
(Note 2)February 29, 2016

(Note 3)

Sumitomo Mitsui Banking
Corporation

June 30, 2011

2,700

2,700

1.59%
(Note 2)June 30, 2017

(Note 5)

Sumitomo Mitsui Trust Bank Limited

June 30, 2011

890

890

1.76%
(Note 2)June 29, 2018

(Note 5)The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,600

–

Resona Bank, Limited

2,000

–

1,000

–

–

January 31, 2015

(Note 5)

August 31, 2011

Aozora Bank, Ltd.

700–

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500

500

Sumitomo Mitsui Trust Bank Limited

500

500

1,000

1,000

The Norinchukin Bank

1,000

1,000

The Bank of Fukuoka, Ltd.

1,000

1,000

500

500

500

500

2,000

2,000

1,000

1,000

2,000

2,000

750

750

750

750

1,000

1,000

Mitsubishi UFJ Trust and Banking Corporation

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

August 31, 2011

August 31, 2011

August 31, 2011
August 31, 2011
September 1, 2011

Mitsubishi UFJ Trust and Banking
Corporation

September 29, 2011

Aozora Bank, Ltd.

November 18, 2011

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

November 30, 2011

Mitsubishi UFJ Trust and Banking Corporation
The Norinchukin Bank

December 26, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,400

–

1,300

1,300

1,300

1,300

1,000

1,000

1,900

1,900

2,000

2,000

300

300

Sumitomo Mitsui Trust Bank Limited

300

300

Sumitomo Mitsui Banking Corporation

450

450

450

450

The Norinchukin Bank

2,500

2,500

Mitsui Sumitomo Insurance Co., Ltd.

1,000

1,000

1,500

1,500

Mizuho Bank, Ltd.

Taiyo Life Insurance Company

December 26, 2011

December 26, 2011

Description(Note 6)

Mitsubishi UFJ Trust and Banking
Corporation

The Bank of Fukuoka, Ltd.
Long-termloans payable

Balance at start Balance at end
Interest rate
Repayment dateof 7th FP
of 7th FP(Note 1)(million yen) (million yen)Unsecured
Unguaranteed
1.16%(Note 2)

December 18, 2015 Lump-sum
repayment
at maturity(Note 5)1.31%
(Note 2)January 31, 2017

(Note 5)

1.16%
(Note 2)

December 18, 2015

(Note 3)1.31%
(Note 2)January 31, 2017

(Note 3)1.31%
(Note 2)January 31, 2017

(Note 3)

1.62%
(Note 2)September 28, 2018

(Note 3)–October 31, 2014

(Note 6)

1.57%
(Note 2)

November 30, 2018

(Note 5)0.76%

December 18, 2015

(Note 5)

1.17%
(Note 2)

November 30, 2016

(Note 5)

1.21%

November 30, 2016

(Note 5)30

I. Asset Management Report

Account
Lenders

Drawdown date

Sumitomo Mitsui Banking Corporation

450

450

1,550

1,550

Resona Bank, Limited

900

900

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500

500

Sumitomo Mitsui Trust Bank Limited

500

500

Mizuho Bank, Ltd.

January 25, 2012

Sumitomo Mitsui Banking Corporation

650

650

500

500

900

900

Development Bank of Japan Inc.

1,000

1,000

Shinsei Bank, Limited

1,500

1,500

1,000

1,000

500

500

Mizuho Bank, Ltd.

January 25, 2012

Mitsubishi UFJ Trust and Banking Corporation

Mizuho Trust & Banking Co., Ltd.

February 8, 2012

The Yamaguchi Bank, Ltd.
The Tokyo Tomin Bank, Ltd.

February 8, 2012

500

500

300

300

Resona Bank, Limited

1,000

1,000

The Bank of Fukuoka, Ltd.

2,000

2,000

500

500

500

500

The Iyo Bank, Ltd.

The Yamaguchi Bank, Ltd.

February 8, 2012

The Tokyo Tomin Bank, Ltd.

Use

1.11%
(Note 2)

July 29, 2016

(Note 5)1.43%
(Note 2)

July 31, 2018

(Note 5)

0.72%

July 31, 2015

(Note 6)

0.79%

July 31, 2015

(Note 6)

1.11%
(Note 2)

July 29, 2016

(Note 6)1.42%
(Note 2)

July 31, 2018

(Note 6)The Iyo Bank, Ltd.

300

300

500

500

500

500

1,000

1,000

February 28, 2012

2,850

2,850

1.23%

February 28, 2018

(Note 3)

April 3, 2012

2,700

2,700

0.64%

March 31, 2015

(Note 3)

800

800
1.10%
(Note 2)

August 31, 2017

February 8, 2012

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

April 27, 2012

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

April 27, 2012

Sumitomo Mitsui Banking Corporation
The Gunma Bank, Ltd.

May 31, 2012

800

800

2,800

2,800

1,600

1,600

1,500

1,500

2,100

2,100

800

800

1,000

1,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

700

700

Sumitomo Mitsui Trust Bank Limited

500

500

1,000

1,000

Resona Bank, Limited

June 25, 2012

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

June 29, 2012

Aozora Bank, Ltd.
Taiyo Life Insurance Company

September 19, 2012

800

800

1,200

1,200

Unsecured
Unguaranteed

1.20%(Note 2)

April 27, 2018

(Note 5)0.84%
(Note 2)

May 29, 2015

(Note 5)0.85%
(Note 2)

August 31, 2015

(Note 5)

1.25%
(Note 2)June 28, 2019

(Note 5)

800

800

700

700

1,500

1,500

0.94%

September 29, 2017

(Note 7)

April 28, 2016

(Note 6)

The Kagawa Bank, Ltd.

September 21, 2012

500

500

The Kagawa Bank, Ltd.

September 21, 2012

500

500

0.92%
(Note 2)September 29, 2017

(Note 6)The Bank of Tokyo-Mitsubishi UFJ, Ltd. September 21, 2012

450

450

1.16%

September 30, 2019

(Note 6)

Sumitomo Mitsui Trust Bank Limited

450

450

1.16%

September 30, 2019

(Note 6)

November 29, 2019

(Note 6)

September 21, 2012

Mitsubishi UFJ Trust and Banking
Corporation

November 20, 2012

1,000

1,000

1.03%
(Note 2)

The Hiroshima Bank, Ltd.

November 20, 2012

500

500

0.50%

November 30, 2015

(Note 6)

500

500

0.79%
(Note 2)

November 30, 2017

(Note 6)

1,200

1,200

1,200

1,200

0.95%
(Note 2)

November 29, 2019

(Note 6)

Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.

November 20, 2012
November 20, 2012

Description(Note 5)Lump-sum
repayment
at maturity

0.77%(Note 2)

The Hiroshima Bank, Ltd.

31

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

Long-termloans payable

Balance at start Balance at end
Interest rate
Repayment dateof 7th FP
of 7th FP(Note 1)(million yen) (million yen)

Development Bank of Japan Inc.

November 30, 2012

600

600

0.74%

May 31, 2017

(Note 6)Development Bank of Japan Inc.

November 30, 2012

2,200

2,200

1.23%

November 29, 2020

(Note 5)

Account

Drawdown dateLenders
Development Bank of Japan Inc.

Repayment
methodUse

November 30, 2012

2,200

2,200

1.40%

November 29, 2021

(Note 5)Tokio Marine & Nichido Fire Insurance Co., Ltd. December 28, 2012

500

500

0.60%

December 18, 2015

(Note 5)Tokio Marine & Nichido Fire Insurance Co., Ltd. December 28, 2012

1,000

1,000

0.72%

March 31, 2017

(Note 5)The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,703

2,703
1.28%
(Note 2)

July 25, 2019

(Note 5)(Note 3)

Sumitomo Mitsui Trust Bank Limited
Mitsubishi UFJ Trust and Banking Corporation

January 25, 2013

Aozora Bank, Ltd.

3,595

3,595

1,799

1,799

903

903

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

March 29, 2013

1,200

1,200

0.81%

March 24, 2020

Sumitomo Mitsui Trust Bank Limited

March 29, 2013

1,200

1,200

0.82%

March 24, 2020

(Note 3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

March 29, 2013

1,300

1,300

0.81%

March 24, 2020

(Note 5)

Sumitomo Mitsui Trust Bank Limited

March 29, 2013

1,300

1,300

0.82%

March 24, 2020

(Note 5)Development Bank of Japan Inc.

March 29, 2013

1,150

1,150

1.08%

March 24, 2021

(Note 4)920

920

March 29, 2013

1,830

1,830

0.88%
(Note 2)

March 24, 2020

(Note 5)

1,370

1,370

1,000

1,000

0.79%
(Note 2)February 28, 2018

(Note 3)

2,000

2,000

2,600

2,600

1.25%
(Note 2)October 29, 2021

(Note 5)

1,500

1,500

2,160

2,160

1.63%
(Note 2)

December 22, 2021

Sumitomo Mitsui Trust Bank LimitedAozora Bank, Ltd.
Resona Bank, Limited
The Bank of Fukuoka, Ltd.

April 19, 2013

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

April 30, 2013

Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Long-termloans payable

Balance at start Balance at end
Interest rate
Repayment dateof 7th FP
of 7th FP(Note 1)(million yen) (million yen)

June 25, 2013

Aozora Bank, Ltd.

June 25, 2013

Resona Bank, Limited
Mizuho Trust & Banking Co., Ltd.
The Norinchukin Bank
The Nishi-Nippon City Bank Ltd.
The Nishi-Nippon City Bank Ltd.
The 77 Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

September 13, 2013

September 13, 2013

September 13, 2013

September 24, 2013

1,379

1,379

919

919

–

1,000

–

1,000

–

500

–

500

–

500

–

1,140

–

570

(Note 5)Lump-sum
repayment
at maturity

1.54%(Note 2)June 25, 2021

1.07%
(Note 2)September 30, 2020

(Note 3)0.92%
(Note 2)September 30, 2019

(Note 3)0.77%
(Note 2)September 28, 2018

(Note 3)0.30%

November 30, 2015

(Note 5)(Note 5)

Sumitomo Mitsui Trust Bank Limited

November 15, 2013

–

2,600

1.47%
(Note 2)

November 15, 2023

(Note 5)

Sumitomo Mitsui Banking Corporation

November 15, 2013

–

3,550

1.37%
(Note 2)

November 15, 2022

(Note 5)

Aozora Bank, Ltd.

November 29, 2013

–

1,800

1.16%
(Note 2)

November 26, 2021

(Note 3)

Shinsei Bank, Limited

December 19, 2013

–

1,000

1.32%
(Note 2)June 17, 2022

(Note 3)

Shinsei Bank, Limited

December 19, 2013

–

700

1.10%
(Note 2)June 18, 2021

(Note 3)

The Yamaguchi Bank, Ltd.

December 19, 2013

–

500

0.93%
(Note 2)June 18, 2020

(Note 3)

The Yamaguchi Bank, Ltd.

December 19, 2013

–

500

0.85%
(Note 2)

December 18, 2019

(Note 3)

Subtotal
Total

147,555

152,278

177,260

183,109

Description

Unsecured
Unguaranteed

Notes 1. “Interest rate” is the borrowing interest rate (weighted average of balance at the end of the fiscal period) for each loan agreement, rounded to the second decimal place.
2. For loans where an interest rate swap transaction has been made for the purpose of hedging the risk of interest rate fluctuations, the fixed rate resulting from the swap
transaction is listed.
3. The funds are used for acquiring specified assets.
4. The funds are used for acquiring specified assets and repaying existing loans.
5. The funds are used for repaying existing loans.
6. The funds are used for redeeming existing investment corporation bonds.
7. The funds are used to repay existing loans and redeem existing investment corporation bonds.
8. The loan contract requires that the first repayment shall be on the last day of February 2010 and subsequent repayments shall be at the end of every February, May, August andNovember thereafter, each in the amount of 62,500 thousand yen of principal, until lump-sum repayment of the remaining principal on September 30, 2014.
9. The loan contract requires that the first repayment shall be on the last day of April 2011 and subsequent repayments shall be at the end of every January, April, July and October
thereafter, each in the amount of 3,375 thousand yen of principal, until lump-sum repayment of the remaining principal on February 17, 2016.

32

I. Asset Management Report
3 Investment Corporation Bonds

The following lists the outstanding investment corporation bonds issued by ADR as of January 31, 2014.

Series(Note 1)

Balance at Balance atInterest
start of 7th end of 7th
Redemption Redemption
Issue Date
rate
Use Description
Fiscal Period Fiscal Period
datemethod(%)(million yen) (million yen)

ADR Bond #13 (Unsecured)

2011
Sep. 12

8,000

8,000

1.27

2016
Sep. 12ADR Bond #14 (Unsecured)

2011
Sep. 12

2,000

2,000

1.68

2018
Sep. 12ADR Bond #15 (Unsecured)

2012
Apr. 26

4,000

4,000

0.86

2015
Apr. 24ADR Bond #16 (Unsecured)

2012
Apr. 26

4,000

4,000

1.08

2017
Apr. 26

ADR Bond #17 (Unsecured)2012
Sep. 12

8,000

8,000

0.87

2017
Sep. 12ADR Bond #18 (Unsecured)2012
Sep. 12

4,000

4,000

1.23

2019
Sep. 12ADR Bond #19 (Unsecured)

2013
Apr. 25

3,000

3,000

1.32

2023
Apr. 25

ADR Bond #20 (Unsecured)

2013
Nov. 14

–

2,000

1.41

2025
Nov. 1433,00035,000Total

Notes 1. The bonds come with pari passu clause among specified investment corporation bonds.
2. The funds are used for repaying existing loans.
3. The funds are used for redeeming existing investment corporation bonds.

4 Short-Term Investment Corporation Bonds
Not applicable.

C-55 RESIDIA Minamisenjyu

33

Lump-sum
repayment (Note 3) Unsecured
at maturity
Lump-sum
repayment (Note 3) Unsecured
at maturity
Lump-sum
repayment (Note 2) Unsecured
at maturity
Lump-sum
repayment (Note 2) Unsecured
at maturity
Lump-sum
repayment (Note 3) Unsecured
at maturity
Lump-sum
repayment (Note 3) Unsecured
at maturity
Lump-sum
repayment (Note 2) Unsecured
at maturity
Lump-sum
repayment (Note 2) Unsecured
at maturity

Acquisitions and Disposals in the 7th Fiscal Period
1 Acquisitions and Disposals of Properties and Asset-Backed Securities
Acquisition
Propertyno.

Name of real estate

P-96 RESIDIA Nakaochiai

Acquisition date

Dispositions

Acquisition
Price (Note)(million yen)

Disposition date

Disposition
Gain (Loss)
Book value
price (Note)on sales(million yen)(million yen)(million yen)

September 13, 2013

3,656

–

–

–

–

R-52 RESIDIA TOWER Sendai November 29, 2013

1,705

–

–

–

–

502

–

–

–

–

C-66 RESIDIA Takashima-Daira

December 19, 2013

C-67 RESIDIA Shimura-Sakaue

December 19, 2013

580

–

–

–

–

C-68 RESIDIA Shimura-Sakaue II December 19, 2013

1,093

–

–

–

–

C-69 RESIDIA Shimura-Sakaue III December 19, 2013

411

–

–

–

–

125

–

–

–

–

8,072

–

–

–

–

–

Equity interests in TK
property fund with Godo
Kaisha RISING3 as operator
Total(Note)

October 29, 2013

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

2 Acquisitions and Disposals of Other Assets

Not applicable. Major assets other than the above-mentioned properties and asset-backed securities are mostly bankdeposits or bank deposits within trust assets.
P-73 RESIDIA Shibaura

34

I. Asset Management Report
3 Appraisal Values of Specified Assets
1) Real Estate

Acquisition
Type of Property
or
asset
no.
dispositionRealestateAcquisition orAppraisal
disposition
Appraisal institution
value
price
(million yen)(million yen)Priceappraisal
dateName of property

Acquisitiondate

C-66 RESIDIA Takashima-Daira2013
Dec. 19

502

555

DAIWA REAL ESTATEAPPRAISAL CO., LTD.

2013
Oct. 31

C-67 RESIDIA Shimura-Sakaue

2013
Dec. 19

580

633

DAIWA REAL ESTATEAPPRAISAL CO., LTD.

2013
Oct. 31

C-69 RESIDIA Shimura-Sakaue III

2013
Dec. 19

411

456

DAIWA REAL ESTATEAPPRAISAL CO., LTD.

2013
Oct. 31

P-96 RESIDIA Nakaochiai

2013
Sep. 13

3,656

3,870

Japan Real Estate
Institute

2013
Sep. 1

2013
Nov. 29

1,705

1,750

Japan Real Estate
Institute2013
Oct. 12013
Dec. 19

1,093

1,250

DAIWA REAL ESTATEAPPRAISAL CO., LTD.

2013
Oct. 31

AcquisitionRealestate in R-52 RESIDIA TOWER Sendai
trust
C-68 RESIDIA Shimura-Sakaue II

Notes 1. “Acquisition price” or “Disposition price” is the purchase or sale price entered in the transaction agreements, and does not include the various expenses, such as broker
commission, and taxes and duties, required in the acquisition or disposition of the concerned real estate.
2. With the Act on Investment Trusts and Investment Corporations revised on November 24, 2011, price assessment is no longer necessary in cases where a real estate appraisal is
carried out prior to the acquisition or disposition of specific assets (land, buildings, rights to land or buildings, or anything deemed to be an asset by government ordinance).
Therefore, the price assessment for the properties listed above is not carried out.

2) TK Property Fund Equity Interests

Acquisition or
disposition

Name

Acquisition date

Acquisition Price(million yen)

Assessed valueof specified
assets(million yen)

Acquisition

Equity interests in TK property fund with Godo Kaisha
RISING3 as operator

October 29, 2013

125

125

Notes 1. The assessment into the value of assets specified above was conducted at the time of acquisition or disposition of assets by Deloitte Touche Tohmatsu LLC in accordance withThe Japanese Institute of Certified Public Accountants’ Industry Audit Practice Committee Operational Guideline No. 23 “Assessment of the Value of Specified Assets ofInvestment Trusts and Investment Corporations” and ADR has received the assessment report.
2. “Acquisition price” is the investment amount in TK property fund, or the amount required in acquiring the equity interests, and excludes the various expenses associated withthe acquisition.

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

35

4 Transactions with Interested Parties and Major Shareholders
1) Transactions
Not applicable.

2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties and major shareholders in the 7th Fiscal Period.
Total amount ofcommission fees(A)(thousand yen)Account
Property management
fees
Other rental expenses
Advertising expenses
Other fees

Breakdown of transaction with interested parties and major
shareholders
Payee

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

1,164,051

ITOCHU Urban Community Ltd.

664,68457.1

115,009

ITOCHU Urban Community Ltd.

62,38354.2

ITOCHU Urban Community Ltd.

3,210

54.6

ITOCHU Urban Community Ltd.
ITOCHU Human Resources & General
Affairs Services Inc.

28,625

22.9

90

0.1

5,875
124,965

Notes 1. Transactions are not disclosed if by form or name the transactions went through interested parties but where the actual counterparty is clearly a third party.
2. ITOCHU Urban Community Ltd. and ITOCHU Human Resources & General Affairs Services Inc. are interested parties of the asset management company that have signed an
asset management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts and Investment Corporations and Article 123 of the Enforcement
Order thereof and the major shareholders of the asset management company as defined in Article 29-4, Paragraph 2 of the Financial Instruments and Exchange Act, with which
ADR engaged in transactions in the 7th Fiscal Period.

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

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

C-52 RESIDIA Bunkyo-Yushima III

36

I. Asset Management Report
Accounts
1 Assets, Liabilities, Principal, Income and Losses

Please refer to the accompanying “II. Balance Sheets,” “III. Statements of Income,” “IV. Statements of Changes in Unitholders’ Equity,” “V. Notes to Financial Statements” and “VI. Statements of Cash Distributions.”

2 Change in Depreciation Calculation Method
Not applicable.

3 Change in Method of Valuation of Properties
Not applicable.

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

P-98 Artis Court Minami-Aoyama

37

Other
1 Notice

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

Approval date
October 24, 2013

November 21, 2013

January 9, 2014

Item
Entrustment of administration
associated with issuance ofinvestment corporation bonds
Revisions to asset managementagreement (signing of memorandumon changes to asset managementagreement)
Conclusion of underwriting
agreement for new investment units

Overview
Agent selected for entrustment of administration associated with
the issuance of ADR Unsecured Bond #20.
ADR decided to sign a memorandum indicating its intention tochange the asset management fee structure in its asset
management agreement signed with its asset managementcompanies on March 1, 2010.
Agent selected for entrustment of administration associated withissuance of the offering of investment units following theissuance of new investment units.

2 Other

Unless otherwise stated, monetary amounts are rounded down and percentage figures are rounded to the nearest
specified unit in this document.
P-78 RESIDIA TOWER Roppongi38

II. Balance Sheets(thousand yen)

6th Fiscal Period (Reference)
July 31, 2013
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Securities
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress including trust accounts
Total property, plant and equipment
Intangible assets
Leasehold rights
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Guarantee deposits
Paid tenant guarantees
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets

39

7th Fiscal Period
January 31, 2014

7,415,835
7,368,577
317,270
5,200,000
457,775
45,60917,861-22,92220,800,007

13,836,485
7,600,752
293,941–
330,726–
17,393-16,468
22,062,830

74,359,445-5,225,498
69,133,947
10,851-1,3309,520
12,097-773
11,323
102,499-54,327
48,17170,357,878
125,953,680-10,511,586
115,442,093
147,571-60,81086,761
134,231-49,249
84,982510,941-318,008
192,933
128,764,575–
384,132,186

74,935,612-6,044,931
68,890,681
16,632-1,72914,902
20,787-1,407
19,379112,632-59,741
52,891
71,429,166
128,425,812-11,952,196
116,473,616
152,279-65,860
86,418140,691-53,944
86,747533,098-339,351
193,746
133,305,012
54,101
390,606,665

1,071,902
1,786,215
10,213
2,868,331

1,071,902
1,751,777
7,188
2,830,868

931,291
652,060
457,830
995,717
1,602
3,038,501
390,039,019

1,031,787
642,400
463,559
995,717
1,602
3,135,067
396,572,601

16,886133,240
150,127
410,989,155

19,544130,496
150,040
418,785,472

(thousand yen)

6th Fiscal Period (Reference)
July 31, 2013
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Long-term deposits received
Other
Total noncurrent liabilities
Total liabilities
Net assets
Unit-holders’ equity
Paid-in Capital
SurplusCapital surplus
Reserve for dividends
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unit-holders’ equity
Total net assets
Total liabilities and net assets*1

7th Fiscal Period
January 31, 2014

193,547–
29,705,215
1,061,359
173,911–
67,29234,80031,236,125

211,104
2,560,000
28,271,133
1,147,912
206,116
33,246
64,13540,43832,534,086

33,000,000
147,555,096
1,254,001
2,483,123
10,648
4,082
184,306,951
215,543,077

35,000,000
152,278,462
1,248,074
2,498,350
4,300
1,360
191,030,548
223,564,634

102,557,018

102,557,018

53,220,279
34,376,971
5,291,809
92,889,059
195,446,078
195,446,078
410,989,155

53,220,279
33,968,500
5,475,039
92,663,819
195,220,837
195,220,837
418,785,472*1

R-50 RESIDIA Rakuhoku

40III. Statements of Income(thousand yen)

6th Fiscal Period (Reference)
From: February 1, 2013
To: July 31, 2013

7th Fiscal Period
From: August 1, 2013
To: January 31, 2014

Operating revenues
Rental revenue – real estate*1

Dividends income
Total operating revenue

13,462,948*1

13,756,780

30,87437,871

13,493,823

13,794,651

Total operating expenses
Expenses related to rent business
Asset management fee*1

5,343,295*1

5,366,603

829,251

894,492

Asset custody fee

9,059

9,207

Administrative service fees

60,66764,479Directors’ compensations

2,400

2,400

Taxes and dues

72,877

134,167

Provision of allowance for doubtful accounts

2,080

–

361

329

Other operating expenses

197,107

186,697

Total operating expenses

6,517,100

6,658,377

6,976,722

7,136,274

Interest income

10,428

10,137

Interest on securities

3,738

1,231

Reversal of distribution payable

2,790

16

–

1,050

Other

1,983

249

Total non-operating income

18,941

12,685

1,190,245

1,173,832

Interest expenses on investment corporation bonds

174,350

193,786

Amortization of investment unit issuance expenses

8,146

4,324

Amortization of investment corporation bond issuance costs

16,543

17,189Other offering costs associated with the issuance of investment units

20,966

6,836

Borrowing-related expenses

283,599

256,629

9,397

20,716

1,703,249

1,673,315

Ordinary income

5,292,414

5,475,644

Income before income taxes

5,292,414

5,475,644

Income taxes – current

605

605

Total income taxes

605

605

Net income

5,291,809

5,475,039

Unappropriated retained earnings (undisposed loss)

5,291,809

5,475,039

Bad debts expenses

Operating income
Non-operating income

Reversal of allowance for doubtful accounts

Non-operating expenses
Interest expenses

Other
Total non-operating expenses

41

IV. Statements of Changes in Unit-holders’ Equity
6th Fiscal Period (Reference) (from February 1, 2013 to July 31, 2013)(thousand yen)

Unit-holders’ equity
Surplus
Paid-in
CapitalBalance at the
beginning ofcurrent period

80,087,298

CapitalsurplusReserve fordividends

Unappropriatedretained earnings(undisposed loss)

53,220,279

34,651,095

4,681,376

Total
surplusTotal
unit-holders’equityTotal
net assets

92,552,750

172,640,048

172,640,048

22,469,720

22,469,720

Changes of items
during the period
Issuance of new
investment units

22,469,720

Reversal ofreserve fordividends-274,123

274,123–––

Dividends fromsurplus-4,955,500-4,955,500-4,955,500-4,955,500

Net income

5,291,809

5,291,809

5,291,809

5,291,809

Total changes of items
during the period

22,469,720–-274,123

610,433

336,30922,806,029

22,806,029

Balance at the endof current period

102,557,018

53,220,279

34,376,971

5,291,809

92,889,059

195,446,078

195,446,078

7th Fiscal Period (from August 1, 2013 to January 31, 2014)(thousand yen)

Unit-holders’ equity
Surplus
Paid-in
CapitalTotal
surplusTotal
unit-holders’equityTotal
net assets

CapitalsurplusReserve fordividends

Unappropriatedretained earnings(undisposed loss)

53,220,279

34,376,971

5,291,809

92,889,059

195,446,078

195,446,078-408,470

408,470–––

Dividends fromsurplus-5,700,280-5,700,280-5,700,280-5,700,280

Net income

5,475,039

5,475,039

5,475,039

5,475,039

Balance at the
beginning ofcurrent period

102,557,018

Changes of items
during the period
Reversal of reservefor dividends

Total changes of items
during the period––-408,470

183,230-225,240-225,240-225,240

Balance at the endof current period

102,557,018

53,220,279

33,968,500

5,475,039

92,663,819

195,220,837

195,220,837

42

V. Notes to Financial Statements
Notes on Matters Concerning Significant Accounting Policies

43

6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

1. Standards and method of valuationof securities(1) Held-to-maturity debentures
Carried at amortized cost (straight-line basis).
(2) Available-for-sale securities
Non-marketable securities
Stated at cost determined by the moving
average method.
For investments in TK property fund, ADR
adopts the method of factoring in the net
amount of TK property fund income (loss)
in proportion to its equity interests.

(1) Held-to-maturity debentures
Carried at amortized cost (straight-line basis).
(2) Available-for-sale securities
Non-marketable securities
Stated at cost determined by the moving
average method.
For investments in TK property fund, ADR
adopts the method of factoring in the net
amount of TK property fund income (loss)
in proportion to its equity interests.

2. Method of depreciation of
noncurrent assets(1) Property, plant and equipment (including
assets in trust)Calculated on a straight-line basis.
The useful life of the main items ofproperty, plant and equipment are as
follows:
Buildings
5~46 years
Structures
6~50 years
Machinery and equipment
10~15 years
Tools, furniture and fixtures 2~15 years(2) Intangible assets
Calculated on a straight-line basis.
The useful life of the main items ofintangible assets are as follows:
Leasehold rights in trust
23~65 years
Software3~5 years(3) Long-term prepaid expenses
Calculated on a straight-line basis.

(1) Property, plant and equipment (including
assets in trust)Calculated on a straight-line basis.
The useful life of the main items ofproperty, plant and equipment are as
follows:
Buildings
5~46 years
Structures
6~50 years
Machinery and equipment
10~15 years
Tools, furniture and fixtures 2~15 years(2) Intangible assets
Calculated on a straight-line basis.
The useful life of the main items ofintangible assets are as follows:
Leasehold rights in trust
23~65 years
Software3~5 years(3) Long-term prepaid expenses
Calculated on a straight-line basis.

3. Method of accounting for deferredassets(1) Unit issuance expenses
Amortized on a straight-line basis (over 3
years).
(2) Investment corporation bond issuancecosts
Amortized on a straight-line basis over theperiod up to redemption of theinvestment corporation bonds.

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

4. Standards of recording allowances

Allowance for doubtful accounts
For allowance for doubtful accounts
against possible losses arising from default
on receivables, uncollectable amount isestimated and recorded by investigatingcollectability based on historical loan loss
ratios for general receivables and on acase-by-case examination for doubtful andother specific receivables.

Allowance for doubtful accounts
For allowance for doubtful accounts
against possible losses arising from default
on receivables, uncollectable amount isestimated and recorded by investigatingcollectability based on historical loan loss
ratios for general receivables and on a caseby-case examination for doubtful and otherspecific receivables.

5. Standards of recording revenue andexpenses

Method of accounting for property taxes
For property, urban planning and depreciable
asset taxes on real estate held, ADR adopts themethod of charging the corresponding amountsof assessed taxes in the fiscal period underreview as expenses related to rent business.
Furthermore, for the pro rata portion ofproperty taxes ADR paid to the sellers uponacquisition of real estate properties, ADR
includes the amount in the acquisition cost
instead of recording it as expenses related torent business. The amount equivalent toproperty taxes included in the acquisition
cost of real estate properties in the fiscal
period under review is 109,038 thousand yen.

Method of accounting for property taxes
For property, urban planning and depreciable
asset taxes on real estate held, ADR adopts themethod of charging the corresponding amountsof assessed taxes in the fiscal period underreview as expenses related to rent business.
Furthermore, for the pro rata portion ofproperty taxes ADR paid to the sellers uponacquisition of real estate properties, ADR
includes the amount in the acquisition cost
instead of recording it as expenses related torent business. The amount equivalent toproperty taxes included in the acquisition
cost of real estate properties in the fiscal
period under review is 4,763 thousand yen.

6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

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

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

7. Other significant matters that serveas basis for preparing financial
statements(1) Method of accounting for beneficiaryinterests in trust in real estate properties
For beneficiary interests in trust in realestate, liabilities within trust assets as well
as all accounts of revenue and expenses
incurred from the trust assets arerecorded in the relevant account titles on
the balance sheets and statements ofincome.
The following material titles of the trust
assets recorded in the relevant accounttitles are separately stated on the balance
sheets.
(i) Cash and deposits in trust(ii) Buildings in trust; structures intrust; machinery and equipment intrust; tools, furniture and fixturesin trust; land in trust; and leasehold
rights in trust(iii) Paid tenant guarantees(iv) Tenant leasehold and security
deposits in trust(1) Method of accounting for beneficiaryinterests in trust in real estate properties
For beneficiary interests in trust in realestate, liabilities within trust assets as well
as all accounts of revenue and expenses
incurred from the trust assets arerecorded in the relevant account titles on
the balance sheets and statements ofincome.
The following material titles of the trust
assets recorded in the relevant accounttitles are separately stated on the balance
sheets.
(i) Cash and deposits in trust(ii) Buildings in trust; structures intrust; machinery and equipment intrust; tools, furniture and fixturesin trust; land in trust; constructionin progress including trust
accounts; and leasehold rights intrust(iii) Paid tenant guarantees(iv) Tenant leasehold and security
deposits in trust(2) Method of accounting for consumption
taxes.
National and local consumption taxes are
excluded from business transaction
amounts. However, accounting for fixed
assets and deferred assets includes
national and local consumption taxes
levied on them.

(2) Method of accounting for consumption
taxes.
National and local consumption taxes are
excluded from business transaction
amounts. However, accounting for fixed
assets and deferred assets includes
national and local consumption taxes
levied on them.

44

V. Notes to Financial Statements
Notes to Balance Sheets
6th Fiscal Period (Reference)
July 31, 2013

7th Fiscal Period
January 31, 2014

*1. Minimum net assets as stipulated in Article 67, Paragraph 4 of
the Act on Investment Trusts and Investment Corporations
50,000 thousand yen*1. Minimum net assets as stipulated in Article 67, Paragraph 4 of
the Act on Investment Trusts and Investment Corporations
50,000 thousand yen

2. ADR has signed term loan commitment agreements with its
banks of account.

2. ADR has signed term loan commitment agreements with its
banks of account.
Revolving line of credit
20,000,000 thousand yenLine of credit used
2,560,000 thousand yenLine of credit left unused
17,440,000 thousand yen

Revolving line of credit
Line of credit usedLine of credit left unused

20,000,000 thousand yen- thousand yen
20,000,000 thousand yen

Notes to Statements of Income
6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

*1. Breakdown of operating income (loss) from property leasing
activities(thousand yen)

*1. Breakdown of operating income (loss) from property leasing
activities(thousand yen)

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

45

12,107,204
502,535
402,624
13,012,364
34,616415,967
450,584
13,462,948

612,740
961,455
226,871478,551
24,42861,543
696,146
2,281,559
5,343,295
8,119,652

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

12,411,796
526,733
413,966
13,352,496
36,533367,750
404,283
13,756,780

659,792
937,336
262,130
387,545
25,52258,352703,9092,332,014
5,366,603
8,390,176

Notes to Statements of Changes in Unit-holders’ Equity
6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

Total number of units authorized and total number of units
issued and outstanding
Total number of units authorized
6,000,000 units
Total number of units issued and1,240,000 units
outstanding

Total number of units authorized and total number of units
issued and outstanding
Total number of units authorized
6,000,000 units
Total number of units issued and1,240,000 units
outstanding

Notes on Tax-Eﬀect Accounting
6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

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

1. Breakdown of primary causes for occurrence of deferred tax
assets and deferred tax liabilities(thousand yen)
(Deferred tax assets)
Amount in excess of provision of
5,625
allowance for doubtful accounts
Valuation difference on amount
13,090,534
received at merger
Deficit brought forward
1,483,134
Other
31,176
Subtotal
14,610,470
Allowance for valuation-14,610,470
Total deferred tax assets–
Net deferred tax assets–(Deferred tax assets)
Amount in excess of provision ofallowance for doubtful accounts
Valuation difference on amountreceived at merger
Deficit brought forward
Other
Subtotal
Allowance for valuation
Total deferred tax assets
Net deferred tax assets

7,830
13,207,387
1,483,134
12,552
14,710,904-14,710,904––

2. Breakdown of significant components that caused a difference
between statutory income tax rate and effective income tax rate
after application of tax-effect accounting(%)
Statutory income tax rate
36.59
(Adjustments)
Increase (decrease) in allowance for-2.45
valuation
Deductible dividend amount-34.16Other
0.03
Effective income tax rate after application of
0.01
tax-effect accounting

2. Breakdown of significant components that caused a difference
between statutory income tax rate and effective income tax rate
after application of tax-effect accounting(%)
Statutory income tax rate
36.59
(Adjustments)
Increase (decrease) in allowance for-1.83
valuation
Deductible dividend amount-34.77
Other
0.03
Effective income tax rate after application of
0.01
tax-effect accounting

R-42 RESIDIA Nishijin

46

V. Notes to Financial Statements
Notes on Fixed Assets Used Under Lease
6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

1. Finance lease transactions (as lessee)
Finance lease transactions without ownership transfer to lessee(1) Leased property
Intangible fixed asset
Software(2) Depreciation method of leased property
Calculated on a straight-line basis over the lease period as
the useful life, without residual value.
Of the finance lease transactions without ownershiptransfer to lessee, those with the lease transaction startdate falling on a date earlier than July 1, 2008 are subject toaccounting in accordance with the method adopted forordinary rental transactions. The details are as follows:

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

(As lessee)(1) Acquisition value equivalent, accumulated depreciationequivalent and period-end balance equivalent of the leased
properties(thousand yen)

Acquisition
value
equivalent

Accumulated
depreciationequivalent

Period-end
balanceequivalent

Tools, furnitureand fixtures in
trust

6,974

4,255

2,718

Subtotal

6,974

4,255

2,718

Accumulated
depreciationequivalent

Period-end
balanceequivalent

Tools, furnitureand fixtures in
trust

6,974

4,610

2,364

Subtotal

6,974

4,610

2,364

(Note) Acquisition value equivalent is calculated using theinclusive-of-interest method, as the period-end
balance of future lease payments payable accounts
for only a small proportion of the period-end
balance of property, plant and equipment.
(2) Period-end balance equivalent of future lease payments
PayableDue within 1 year
709 thousand yen
Due after 1 year
2,010 thousand yen
Total
2,720 thousand yen(Note) Acquisition value equivalent is calculated using theinclusive-of-interest method, as the period-end
balance of future lease payments payable accounts
for only a small proportion of the period-end
balance of property, plant and equipment.
(2) Period-end balance equivalent of future lease payments
PayableDue within 1 year
709 thousand yen
Due after 1 year
1,655 thousand yen
Total
2,365 thousand yen(3) Lease payments paid and depreciation equivalent
Lease payments paid
354 thousand yen
Depreciation equivalent
354 thousand yen(3) Lease payments paid and depreciation equivalent
Lease payments paid
354 thousand yen
Depreciation equivalent
354 thousand yen(4) Calculation method of depreciation equivalent
Calculated on a straight-line basis over the lease period as
the useful life, without residual value.

(4) Calculation method of depreciation equivalent
Calculated on a straight-line basis over the lease period as
the useful life, without residual value.

2. Operating lease transactions(As lessee)
Future lease payments payable
Due within 1 year
Due after 1 year
Total

706,812 thousand yen
15,398,829 thousand yen
16,105,641 thousand yen

Furthermore, estimated amounts are used for transactions inwhich the lease amount is not finalized.
(As lessor)
Future lease payments payable
Due within 1 year
4,484,248 thousand yen
Due after 1 year
10,378,491 thousand yen
Total
14,862,740 thousand yen

47

Acquisition
value
equivalent

2. Operating lease transactions(As lessee)
Future lease payments payable
Due within 1 year
Due after 1 year
Total

706,812 thousand yen
15,045,423 thousand yen
15,752,235 thousand yen

Furthermore, estimated amounts are used for transactions inwhich the lease amount is not finalized.
(As lessor)
Future lease payments payable
Due within 1 year
4,497,229 thousand yen
Due after 1 year
9,979,534 thousand yen
Total
14,476,763 thousand yen

Notes on Financial Instruments
6th Fiscal Period (from February 1, 2013 to July 31, 2013) (Reference)
1. Matters concerning status of financial instruments(1) Policy for financial instruments usage
In order to secure stable earnings and steady growth of assets under management, ADR procures funds through debt financing, issuance ofinvestment corporation bonds (including short-term investment corporation bonds; same for below), issuance of units and other means offinance upon such occasions as purchasing real estate properties and repaying debts.
ADR may use derivatives only for the purpose of hedging the risk of interest rate fluctuations and other risks arising from liabilities.
With regard to surplus funds, ADR will manage them as bank deposits, savings, negotiable deposits and Japanese Government Bonds as arule, in consideration of safety and stability.
(2) Description of financial instruments and associated risks, and risk management structure
Funds from debt financing and investment corporation bonds are used primarily to fund the acquisition of real estate properties, repay
existing debts or redeem existing investment corporation bonds. With regard to such funds, ADR is exposed to liquidity risks where it may
not be able to find alternative financing means upon repayment or redemption maturity. ADR manages the risks through monthly review of
payment schedules to monitor the cash positions, and limits the risks by securing cash reserves, spreading out the debt repayment and bondredemption dates, diversifying the lending financial institutions, signing term loan commitment agreements, and procuring funds throughvarious means including issuance of units.
In addition, ADR limits the risk of interest rate fluctuations to which debt financing and investment corporation bonds with floating interest
rates are exposed, by utilizing derivatives (interest rate swap transactions).
Deposits are exposed to the risk of failure of the financial institutions holding the deposits and other credit risks. ADR limits the risks by
setting certain limits to the duration of deposits and a minimum credit rating for the financial institutions holding the deposits, and by
diversifying the financial institutions holding the deposits.
(3) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, may include values based on reasonable calculations when
there is no market price. Certain assumptions are adopted in calculating those values, and there may be cases where the values will vary
when different assumptions are adopted. As for the contract value and other conditions of derivatives transactions, the value itself is not anindicator showing the market risks related to such transactions.
2. Fair values of financial instruments
The following are the book values recorded on the balance sheets, fair values and their difference as of July 31, 2013.
Book value (thousand yen)

Fair value (thousand yen)

Difference (thousand yen)

(1) Cash and deposits

7,415,835

7,415,835–(2) Cash and deposits in trust

7,368,577

7,368,577–(3) Securities

5,200,000

5,200,000–(4) Current portion of long-termloans payable(29,705,215)(29,840,878)

135,663(5) Investment corporation bond

(33,000,000)(33,427,935)

427,935(6) Long-term loans payable(147,555,096)(150,068,713)

2,513,617–-454,082-454,082(7) Derivative transactions (Note 2)

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

48

V. Notes to Financial Statements(ii) Transactions for which hedge accounting is applied
The following is the contract amount or amount equivalent to the principal provided in the contract, etc. as of the closing of accounts
for each method of hedge accounting.
(thousand yen)

Method of hedge
accounting

Type of derivativetransactions

Main hedged item

Special provisions
for interest rate
swaps

Interest rate swap
transaction Payable
fixed; Receivable floating

Long-term loans
payableContract amount (*1)

Fair value (*2, 3)

Of which, exceeding 1 year
135,945,488

111,345,488-454,082(*1) The contract amount, etc. is based on notional principal.
(*2) The fair value is based on the calculation conducted by the counterparty to the relevant transaction on the basis of the going rate of interest.
(*3) Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial
Instruments” (issued by the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly,
the fair value is not reflected to the balance sheets.
4. Financial instruments for which discerning of fair value is recognized to be extremely difficult
Investment securities
TK property fund equity interests (carrying amount: 931,291 thousand yen) are not subject to disclosure of fair value because discerning of fairvalue is recognized to be extremely difficult since there is no market price for them.
5. Amount of redemption of monetary claims and securities scheduled to be due after closing of accounts(thousand yen)

Due within 1 year

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

Cash and deposits

7,415,835

–

–

–

–

–

Cash and deposits in trust

7,368,577

–

–

–

–

–

Securities

5,200,000

–

–

–

–

–

19,984,412

–

–

–

–

–

Total

6. Amount of repayment of investment corporation bonds, loans payable, and other interest-bearing loans scheduled to be due after closing ofaccounts(thousand yen)

Due within 1 year

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

Current portion of long-termloans payable

29,705,215

Investment corporation bond–Long-term loans payable–
29,705,215

23,448,195

Total

–

–

–

–

–

4,000,000–

12,000,000

8,000,000

9,000,000

19,448,195

29,732,572

24,500,000

26,146,329

47,728,000

29,732,572

36,500,000

34,146,329

56,728,000

7th Fiscal Period (from August 1, 2013 to January 31, 2014)
1. Matters concerning status of financial instruments(1) Policy for financial instruments usage
In order to secure stable earnings and steady growth of assets under management, ADR procures funds through debt financing, issuance ofinvestment corporation bonds (including short-term investment corporation bonds; same for below), issuance of units and other means offinance upon such occasions as purchasing real estate properties and repaying debts.
ADR may use derivatives only for the purpose of hedging the risk of interest rate fluctuations and other risks arising from liabilities.
With regard to surplus funds, ADR will manage them as bank deposits, savings, negotiable deposits and Japanese Government Bonds as a rule,in consideration of safety and stability.
(2) Description of financial instruments and associated risks, and risk management structure
Funds from debt financing and investment corporation bonds are used primarily to fund the acquisition of real estate properties, repay existingdebts or redeem existing investment corporation bonds. With regard to such funds, ADR is exposed to liquidity risks where it may not be able tofind alternative financing means upon repayment or redemption maturity. ADR manages the risks through monthly review of payment
schedules to monitor the cash positions, and limits the risks by securing cash reserves, spreading out the debt repayment and bond redemption
dates, diversifying the lending financial institutions, signing term loan commitment agreements, and procuring funds through various means
including issuance of units.
In addition, ADR limits the risk of interest rate fluctuations to which debt financing and investment corporation bonds with floating interest rates
are exposed, by utilizing derivatives (interest rate swap transactions).
Deposits are exposed to the risk of failure of the financial institutions holding the deposits and other credit risks. ADR limits the risks by setting
certain limits to the duration of deposits and a minimum credit rating for the financial institutions holding the deposits, and by diversifying thefinancial institutions holding the deposits.
(3) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, may include values based on reasonable calculations when
there is no market price. Certain assumptions are adopted in calculating those values, and there may be cases where the values will vary
when different assumptions are adopted. As for the contract value and other conditions of derivatives transactions, the value itself is not anindicator showing the market risks related to such transactions.
2. Fair values of financial instruments
The following are the book values recorded on the balance sheets, fair values and their difference as of January 31, 2014.

49

Book value (thousand yen)

Fair value (thousand yen)

Difference (thousand yen)

13,836,485

13,836,485–(1) Cash and deposits(2) Cash and deposits in trust

7,600,752

7,600,752–(3) Short-term loans payable(2,560,000)(2,560,872)

872(4) Current portion of long-term loans payable(28,271,133)(28,394,918)

123,785(5) Investment corporation bond

(35,000,000)(35,641,013)

641,013(6) Long-term loans payable(152,278,462)(154,792,579)

2,514,117–-1,056,142-1,056,142(7) Derivative transactions (Note 2)

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

Method of hedge
accounting

Type of derivativetransactions

Main hedged item

Special provisions
for interest rate
swaps

Interest rate swap
transaction
Payable fixed;
Receivable floating

Long-term loans
payableContract amount (*1)

Fair value (*2, 3)

Of which, exceeding 1 year
140,225,488

120,195,488-1,056,142(*1) The contract amount, etc. is based on notional principal.
(*2) The fair value is based on the calculation conducted by the counterparty to the relevant transaction on the basis of the going rate of interest.
(*3) Special provisions for interest rate swaps are applied to the amount of fair value based on the “Accounting Standard for Financial
Instruments” (issued by the Accounting Standards Board of Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10). Accordingly,
the fair value is not reflected to the balance sheets.
4. Financial instruments for which discerning of fair value is recognized to be extremely difficult
Investment securities
TK property fund equity interests (carrying amount: 1,031,787 thousand yen) are not subject to disclosure of fair value because discerning offair value is recognized to be extremely difficult since there is no market price for them.
5. Amount of redemption of monetary claims and securities scheduled to be due after closing of accounts(thousand yen)

Due within 1 year

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

Cash and deposits

13,836,485

–

–

–

–

–

Cash and deposits in trust

7,600,752

–

–

–

–

–

21,437,238

–

–

–

–

–

Total

6. Amount of repayment of investment corporation bonds, loans payable, and other interest-bearing loans scheduled to be due after closing ofaccounts(thousand yen)

Due within 1 year

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

Short-term loans payable

2,560,000

–

–

–

–

–

Current portion of long-termloans payable

28,271,133

–

–

–

–

–

Investment corporation bond–

4,000,000

8,000,000

12,000,000

2,000,000

9,000,000

Long-term loans payable
Total

–

23,028,311

27,725,822

22,956,329

24,190,000

54,378,000

30,831,133

27,028,311

35,725,822

34,956,329

26,190,000

63,378,000

50

V. Notes to Financial Statements
Notes on Value of Rental Properties
6th Fiscal Period (from February 1, 2013 to July 31, 2013) (Reference)
ADR mainly owns rental residential properties in Tokyo and other regions. The following are the book value, amount of change during the period
and fair value of these properties.
(thousand yen)Book value (Note 1)
Balance at the beginning ofcurrent period

Amount of change during theperiod (Note 2)

Balance at the end of current
period361,372,519

25,617,784

386,990,304

Period-end fair value(Note 3)400,991,000

Notes 1. The book value is cost of acquisition less accumulated depreciation.
2. The amount of change during the period is mainly attributable to increase from the acquisition of one real estate property (3,399,796
thousand yen) and the acquisition of 13 real estate beneficiary interests in trust (24,166,537 thousand yen); the decrease is mainly a result of
posting of depreciation.
3. The period-end fair value is the appraisal or assessment value provided by an outside real estate appraiser.

For the 6th Fiscal Period operating income from property leasing, please refer to the aforementioned “Notes to Statements of Income.”
7th Fiscal Period (from August 1, 2013 to January 31, 2014)
ADR mainly owns rental residential properties in Tokyo and other regions. The following are the book value, amount of change during the period
and fair value of these properties.
(thousand yen)Book value (Note 1)
Balance at the beginning ofcurrent period

Amount of change during theperiod (Note 2)

Balance at the end of current
period386,990,304

6,440,041

393,430,346

Period-end fair value(Note 3)417,027,000

Notes 1. The book value is cost of acquisition less accumulated depreciation.
2. The amount of change during the period is mainly attributable to increase from the acquisition of three real estate properties (1,596,575
thousand yen) and the acquisition of three real estate beneficiary interests in trust (6,853,471 thousand yen); the decrease is mainly a result of
posting of depreciation.
3. The period-end fair value is the appraisal or assessment value provided by an outside real estate appraiser.

For the 7th Fiscal Period operating income from property leasing, please refer to the aforementioned “Notes to Statements of Income.”

Notes on Transactions with Related Parties
6th Fiscal Period (from February 1, 2013 to July 31, 2013) (Reference)

Classification

Business
Share of units held
Name of related party description orin ADR
occupation

Nature oftransaction

Interested
parties

ITOCHU
Corporation

Generaltradingcompany

Direct ownership
2.81%
Indirectownership 0.36%

Acquisition of
beneficiaryinterests intrust (Note 1)

Interested
parties

ITOCHU Urban
Community Ltd.

Real estatebusiness–

Entrustment of property
management (Note 4)

Assetcustodian

Sumitomo Mitsui
Trust Bank Limited

Bankingbusiness
and trustbusiness–

Transaction amount(thousand yen)
4,446,059(Notes 2, 3)

694,688

Account–
Operating accounts
payableBorrowing(repayment) offunds (Note 5)

Current portion of long6,020,000 term loans payable(7,446,106) Long-term loans
payableDeposit of negotiable
deposits (cancellationof contract) (Note 5)

6,600,000
Securities(5,000,000)

Period-end
balance(thousand yen)–
56,291(Note 3)

5,096,838
22,497,286
1,600,000

Transaction terms and conditions, and policy on determining transaction terms and conditions
Notes 1. Purchase price of beneficiary interests in trust is determined through negotiations, with reference to actual transaction results in neighboringareas and appraisal values provided by real estate appraisers.
2. The transaction amount for the purchase of beneficiary interests in trusts includes 11,809 thousand yen ADR paid to the seller as property taxes.

51

3. This includes consumption taxes.
4. Transaction terms and conditions are negotiated and decided based on market price.
5. Interest rates on borrowings and negotiable deposits are reasonably determined based on market interest rates.

7th Fiscal Period (from August 1, 2013 to January 31, 2014)

Classification

AssetcustodianBusiness
Share of units
Name of related party description orheld in ADR
occupation

Banking
Sumitomo Mitsui Trust businessBank Limited
and trustbusiness–

Transaction
amount(thousand yen)

Nature oftransaction

Borrowing(repayment) offunds (Note 1)

Account

Period-end
balance(thousand yen)

Short-termloans payable

1,480,000

Current portion
4,080,000
of long-term(4,310,781)
loans payable

786,057

Long-term loans
payable25,097,286

Transaction terms and conditions, and policy on determining transaction terms and conditions
1. Interest rates on borrowings are reasonably determined based on market interest rates.

Notes on Per Unit Information
6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

Net assets per unit

157,617 yen

Net assets per unit

157,436 yen

Earnings per unit

4,270 yen

Earnings per unit

4,415 yen

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

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

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

6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013
Net income (thousand yen)

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

5,291,809

5,475,039

Amount not attributable to common
unit-holders (thousand yen)––

Net income attributable to common
unit (thousand yen)

5,291,809

5,475,039

Average number of units during theperiod (units)

1,239,282

1,240,000

Significant Subsequent Events
7th Fiscal Period (from August 1, 2013 to January 31, 2014)
1. Acquisition of Assets
ADR acquired the following assets in accordance with the basic policy for asset management provided in its Articles of Incorporation.
(1) RESIDIA Nakameguro II
Type of asset:
Real estate beneficiary interests in trust
Acquisition price:
1,119 million yen

52

V. Notes to Financial Statements
Acquisition date:		February 6, 2014
2-9-11 Nakameguro, Meguro-ku, Tokyo
Location:			
Area:			(Land) 271.64 m2; (Building) 1,394.26 m2
Structure:			RC with flat roof; 11F
August 2006
Completion date:		(2)		 Artis Court Minamiaoyama
Type of asset:			Real estate beneficiary interests in trust
1,720 million yen
Acquisition price:		
February 6, 2014
Acquisition date: 		
Location: 			
1-24-15 Minamiaoyama, Minato-ku, Tokyo
Area: 			(Land) 659.35 m2 (Note 1); (Building) 2,549.88 m2 (Note 2)
Structure: 			
SRC with flat roof; 15F
July 2008
Completion date: 		(Note 1) The total site area is listed. ADR’s share of the right of site for the acquisitions is a ratio of 80,057 to 100,000.
(Note 2) The total floor space for the building overall is listed. ADR’s share of the sectional ownership related to the acquisitions is a ratio of
80,057 to 100,000.
(3)		 RESIDIA Yotsuya Sanchome
Type of asset: 		Real estate beneficiary interests in trust
Acquisition price: 		
2,090 million yen
February 6, 2014
Acquisition date: 		
17 Araki-cho, Shinjuku-ku, Tokyo
Location: 			
Area: 			(Land) 889.00 m2 (Note 1); (Building) 4,626.75 m2 (Note 2)
Structure: 			
RC with flat roof; B1F/10F
May 2009
Completion date: 		(Note 1) The total site area is listed. ADR’s share of the right of site for the acquisitions is a ratio of 291,594 to 333,645.
(Note 2) The total floor space for the building overall is listed. ADR’s share of the sectional ownership related to the acquisitions is a ratio of
291,594 to 333,645.
(4)		 RESIDIA Ikebukuro WestType of asset: 		Real estate beneficiary interests in trust
Acquisition price: 		
1,115 million yen
February 6, 2014
Acquisition date: 		
3-6 Nakamaru-cho, Itabashi-ku, Tokyo
Location: 			
Area: 			(Land) 436.89 m2; (Building) 2,599.03 m2
Structure: 			
RC with flat roof; 10F
October 2007
Completion date: 		(5)		 RESIDIA Ojima
Type of asset: 		Real estate beneficiary interests in trust
1,282 million yen
Acquisition price: 		February 6, 2014
Acquisition date: 		
Location: 			
5-41-6 Ojima, Koto-ku, Tokyo
Area: 			(Land) 726.77 m2; (Building) 2,269.28 m2
Structure: 			
RC with flat roof; 8F
November 2007
Completion date: 		(6)		 RESIDIA Higashi-Sakura II
Type of asset: 		Real estate beneficiary interests in trust
2,862 million yen
Acquisition price: 		February 6, 2014
Acquisition date: 		
Location: 			
2-17-25 Higashisakura, Higashi-ku, Nagoya-shi, Aichi
Area: 			(Land) 1,240.78 m2; (Building) 10,944.91 m2
Structure: 			
SRC with flat roof; B1F/15F
February 2006
Completion date: 		(7)		 RESIDIA Tsutsujigaoka
Type of asset: 		Real estate beneficiary interests in trust
1,796 million yen
Acquisition price: 		February 6, 2014
Acquisition date: 		
Location: 			
77 (East Building), 81 (West Building) Teppocho, Miyagino-ku, Sendai-shi, Miyagi

53

Area: 			
(Land) 1,460.00 m2
				(Building) East Building: 3,253.86 m2					 West Building: 2,982.56 m2
Structure:					RC with flat roof; 12F (East Building)						
RC with flat roof; 11F (West Building)Completion date:		November 2006(8)		 RESIDIA Kobe-Motomachi
Real estate beneficiary interests in trust
Type of asset:
1,052 million yen
Acquisition price:
Acquisition date:February 6, 2014
4-3-3 Sakaemachidoori, Chuo-ku, Kobe-shi, Hyogo
Location:(Land) 443.00 m2; (Building) 3,283.91 m2
Area:
Structure:
RC with flat roof; B1F/14F
January 2007
Completion date:(9)		 RESIDIA Sendai-honcho
Type of asset:
Real estate beneficiary interests in trust
1,117 million yen
Acquisition price:
February 6, 2014
Acquisition date:
Location:
1-9-32 Honcho, Aoba-ku, Sendai-shi, Miyagi
Area:(Land) 689.77 m2; (Building) 3,377.22 m2
Structure:
RC with flat roof; 14F
June 2007
Completion date:(10) RESIDIA Sendai-Haranomachi
Type of asset:
Real estate beneficiary interests in trust
593 million yen
Acquisition price:
February 6, 2014
Acquisition date:
Location:
3-1-37 Harano-machi, Miyagino-ku, Sendai-shi, Miyagi
Area:(Land) 581.71 m2; (Building) 2,380.81 m2
Structure:
RC with flat roof; 13F
September 2007
Completion date:(11) RESIDIA Minami-Ichijo-East
Type of asset:
Real estate beneficiary interests in trust
1,062 million yen
Acquisition price:
February 6, 2014
Acquisition date:
Location:
6-1-10 Minami-Ichijo Higashi, Chuo-ku, Sapporo-shi, Hokkaido
Area:(Land) 843.33 m2; (Building) 4,871.64 m2
Structure:
RC with flat roof; B1F/15F
January 2008
Completion date:(Note) The acquisition prices are each exclusive of the amount of reimbursement of the pro rata portion of the amount equivalent toproperty tax, urban planning tax and depreciable asset tax, as well as consumption tax and local consumption tax.
2. Issuance of New Units
ADR passed a resolution at a meeting of the board of directors held on January 9, 2014 on issuance of new units to raise funds for the acquisitionof real estate (specified assets) and other purposes. Payments for the issuance of new units through public offering were completed on February
3, 2014 and payments for the issuance of new units by way of third-party allotment were completed on February 26, 2014.
As a result, paid-in capital totaled 114,936,698,304 yen with the number of units issued and outstanding increasing to 1,300,000 units.
[Issuance of New Units through Public Offering (Primary Offering)] [Issuance of New Units by Way of Third-Party Allotment]
Number of units issued:

58,000 units

Number of units issued:

2,000 units

Offer price:

213,330 yen per unit

Paid-in amount:

206,328 yen per unit

Total offer price:

12,373,140,000 yen

Total paid-in amount:412,656,000 yen

Paid-in amount(Underwriting amount):

206,328 yen per unit

Application period(Application deadline):

February 25, 2014

Total paid-in amount:

11,967,024,000 yen

Payment deadline:

February 26, 2014

Payment deadline:

February 3, 2014

Allottee:Mizuho Securities Co., Ltd.

54

VI. Statements of Cash Distributions(yen)

6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

I. Unappropriated retained earnings

5,291,809,231

5,475,039,805

II. Reversal of reserve for dividends

408,470,769

247,560,195

5,700,280,000

5,722,600,000(Amount of dividends per unit)(4,597)(4,615)

IV. Retained earnings carried forward

00

Method of calculation of amount ofdividends

In accordance with the distribution policy
provided in Article 32, Item 1 of ADR’s Articles ofIncorporation, we shall deliver dividends in excess
of an amount equivalent to 90% of the amount of
ADR’s earnings available for dividends as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation.

In accordance with the distribution policy
provided in Article 32, Item 1 of ADR’s Articles ofIncorporation, we shall deliver dividends in excess
of an amount equivalent to 90% of the amount of
ADR’s earnings available for dividends as
stipulated in Article 67-15 of the Act on Special
Measures Concerning Taxation. In addition, ADR
may use reserve for dividends in order to makestable dividend payouts into the future, and shallinvestigate an increase in dividends in accordancewith the performance when it has achieved good
operating results.

III. Amount of dividends

In addition, ADR may use reserve for dividends inorder to make stable dividend payouts into the
future, and shall investigate an increase individends in accordance with the performance
when it has achieved good operating results.
Based on the policy above, ADR decided on
dividends of earnings totaling 5,700,280,000 yen
for the 6th Fiscal Period, which was arrived at byadding reversal of reserve for dividends of
408,470,769 yen to the unappropriated retained
earnings of 5,291,809,231 yen.
Furthermore, ADR does not distribute cash inexcess of earnings, as provided in Article 32, Item
2 of its Articles of Incorporation.

P-98 Artis Court Minamiaoyama

55

Based on the policy above, ADR decided on
dividends of earnings totaling 5,722,600,000 yen
for the 7th Fiscal Period, which was arrived at byadding reversal of reserve for dividends of
247,560,195 yen to the unappropriated retained
earnings of 5,475,039,805 yen.
Furthermore, ADR does not distribute cash inexcess of earnings, as provided in Article 32, Item
2 of its Articles of Incorporation.

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

Disclaimer

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

56

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

6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance costs
Other offering costs associated with the issuance of investment units
Increase (decrease) in allowance for doubtful accounts
Interest income
Interest expenses
Interest expenses on investment corporation bonds
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible asset in trust
Proceeds from tenant leasehold and security deposits, net
Proceeds from tenant leasehold and security deposits in trust, net
Payments for lease and guarantee deposits in trust
Purchase of investment securities
Proceeds from reimbursement of investment securities
Repayments of long-term deposits received
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment corporation bonds
Payments for investment corporation bond issuance costs
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Other offering costs associated with the issuance of investment units
Repayments of finance lease obligations
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(Note)

57*1

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

5,292,414
2,284,585
8,146
16,543
20,966-6,728-14,167
1,190,245
174,350-47,427-45,609-131,860-35,901
15,60363,488-24,915
13,308-58,091
18,733
8,733,685
10,133-1,383,757-2,917
7,357,143

5,475,644
2,335,039
4,324
17,1896,836-6,454-11,368
1,173,832
193,786
23,32845,609127,049
33,246
6,323
62,17324,174-3,1569,660
246
9,517,486
3,942-1,359,588
1,941
8,163,781–
3,000,000-5,200,000
5,000,000-3,502,538-22,699,381-1,686,789
21,328589,839-813,333-462,602
452,912-6,348-25,306,911-5,000,000––
5,200,000-1,685,706-7,063,782–-5,927
15,227–-126,557
25,715-6,348-8,647,378–-4,148,000
21,828,000-16,574,139
3,000,000-20,679
22,469,720-11,739-33,370-2,721-4,956,774
21,550,295
3,600,527
11,183,885
14,784,412

2,560,000–
15,860,000-12,570,716
2,000,000-14,444––-744-2,721-5,694,952
2,136,421
1,652,825
14,784,412
16,437,238*1

The Statements of Cash Flows has been prepared based on the “Regulations Concerning Terminology, Forms, and Preparation Methods ofFinancial Statements” (Ministry of Finance Regulation No.59, 1963), and is attached as reference information. The Statements of Cash Flows
has not been audited by the independent auditor, as it is not subject to audit by an independent auditor under the provisions of Article 130 of
the Act on Investment Trusts and Investment Corporations.

Notes on Matters Concerning Significant Accounting Policies

Scope of funds in Statements of CashFlows

6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

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

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

Notes to Statements of Cash Flows
6th Fiscal Period (Reference)
From: Feb. 1, 2013
To: Jul. 31, 2013

7th Fiscal Period
From: Aug. 1, 2013
To: Jan. 31, 2014

*1 Relationship between the cash and cash equivalents at end of
period in the Statements of Cash Flows and the amounts of thecorresponding accounts on the Balance Sheets(thousand yen)
Cash and deposits
7,415,835
Cash and deposits in trust
7,368,577
Time deposits with holding period over 3 months–
Cash and cash equivalents
14,784,412*1 Relationship between the cash and cash equivalents at end of
period in the Statements of Cash Flows and the amounts of thecorresponding accounts on the Balance Sheets(thousand yen)
Cash and deposits
13,836,485
Cash and deposits in trust
7,600,752
Time deposits with holding period over 3 months-5,000,000
Cash and cash equivalents
16,437,238

S-1 Tokyo Student-House HIYOSHIDAI

58

Portfolio Map

66
69

Itabashi-ku

68

67

Adachi-ku
28

Nerima-ku

70
6

60

50

Kita-ku
18

3

96 72
37

Nakano-ku

29 46 35

49

Suginami-ku

84

19

21
22 16

33

Shinjuku

69

23

32

10

13

68

85

Setagaya-ku
88

4

7

79
31
92

53

93
47

52

15

9

41

41

Ueno

67

Tokyo

7 43

59

Sumida-ku
5

9

83 51
36
25 29
89 3 61
97 26 70
39
91
75

48
1 39 4224 12 45
17

63

71

Koto-ku
51

47

86

95

Shinagawa2

55

Meguro-ku

Edogawa-ku

Kinshicho
34

Minato-ku 73

Meguro

45

15

23

49
22 27
98
57
10
58 48 53
54
40
78
31
30
65 60
Chuo-ku
50
66
62
77
33
5
61
76
24
81

Shibuya
56

16

58
26
21
4 8 37 52

42
87

55

Taito-ku

Chiyoda-ku

90 Shibuya-ku
80
19
63

34

99

36
40

Bunkyo-ku

62

Shinjuku-ku
56

Arakawa-ku

Ikebukuro

Toshima-ku

Katsushika-ku

65

43

14

74

38

F

94
35

Shinagawa-ku

64

42
59

44

25

59

RESIDIA Shimazuyama
RESIDIA Nakameguro
RESIDIA Setagaya-Tsurumaki
RESIDIA Azabujuban
RESIDIA Ikejiriohashi
RESIDIA Kudanshita
RESIDIA Hatagaya
RESIDIA Sakurajosui
RESIDIA Kita-Shinagawa
RESIDIA Yoyoginomori
RESIDIA Shinjuku-East III
Leopalace Udagawacho Mansion
RESIDIA Shinjuku-East II
RESIDIA Shinjuku-East
RESIDIA Kanda-Iwamotocho
RESIDIA Azabujuban II
RESIDIA Ebisu
RESIDIA Meguro
RESIDIA Hiroo II
Pianetta Shiodome
RESIDIA Komazawadaigaku
RESIDIA Yoyogi
RESIDIA Nishi-Shinjuku

P-34
P-35
P-36
P-37
P-38
P-39
P-40
P-41
P-42
P-43
P-45
P-47
P-48
P-49
P-50
P-51
P-52
P-53
P-55
P-56
P-58
P-59
P-60

RESIDIA Kyodo
RESIDIA Oimachi
RESIDIA Ebisu II
RESIDIA Kamiochiai
RESIDIA Higashi-Shinagawa
RESIDIA Meguro II
RESIDIA Toranomon
RESIDIA Shin-Ochanomizu
RESIDIA Kagurazaka
RESIDIA Oimachi II
RESIDIA Jiyugaoka
RESIDIA Suidobashi
RESIDIA TOWER Nogizaka
RESIDIA Akasaka
RESIDIA Nishi-Azabu
RESIDIA Daikanyama
RESIDIA Ichigaya
RESIDIA Roppongi-Hinokichokoen
RESIDIA TOWER Meguro-Fudomae
RESIDIA Sangenjaya
RESIDIA Minami-Aoyama
RESIDIA Kanda-Higashi
RESIDIA Higashi-Azabu: Tokyo Central 7 Wards

38
64

Kamata

P-2
P-3
P-4
P-5
P-7
P-9
P-10
P-13
P-14
P-15
P-16
P-19
P-21
P-22
P-23
P-24
P-25
P-26
P-29
P-30
P-31
P-32
P-33

13

2
32

: Tokyo 23 Wards

Ota-ku

P-61
P-62
P-63
P-64
P-65
P-66
P-67
P-68
P-69
P-70
P-72
P-73
P-74
P-75
P-76

RESIDIA Ebisu-Minami
RESIDIA TOWER Azabujuban
RESIDIA Shibuya
RESIDIA Nakanobu
RESIDIA Azabudai
RESIDIA Shibadaimon II
RESIDIA Kanda
RESIDIA Sangenjaya II
RESIDIA Nishi-Shinjuku II
RESIDIA Hiroo-Minami
RESIDIA Mejiro-Otomeyama
RESIDIA Shibaura
RESIDIA Gotenyama
RESIDIA Yutenji

P-77
P-78
P-79
P-80
P-81
P-83

Motoazabu PlaceRESIDIA TOWER Roppongi
RESIDIA Kamimeguro
RESIDIA Yoyogikoen
Windsor House Hiroo

Park Tower Shibaura Bayward
Urban Wing

RESIDIA Daikanyama Sarugakucho/
Daikanyama Parkside Village

P-84
P-85
P-86
P-87
P-88
P-89
P-90
P-91
P-92
P-93
P-94
P-95
P-96
P-97
P-98
P-99
C-1
C-2
C-3
C-4
C-5
C-6
C-7

RESIDIA Kita-Shinjuku
RESIDIA Komazawa
RESIDIA Shibaura KAIGANRESIDIA Ichigaya-yakuoji
RESIDIA Yoga
RESIDIA TOWER Nakameguro
RESIDIA Sasazuka II
RESIDIA Meguro III
RESIDIA Jiyugaoka II
RESIDIA Kudanshita II
RESIDIA Omori II
RESIDIA Shirokane-Takanawa
RESIDIA Nakaochiai
RESIDIA Nakameguro II
Artis Court Minamiaoyama
RESIDIA Yotsuya Sanchome
RESIDIA Mitsukoshimae
RESIDIA Kamata
RESIDIA Ikebukuro
RESIDIA Bunkyo-Hongo
RESIDIA Asakusabashi
Maison Eclairee Ekoda
RESIDIA Ueno-Okachimachi

C-8
C-9
C-10
C-12
C-13
C-15
C-16
C-17
C-18
C-19
C-21
C-22
C-23
C-24
C-25
C-26
C-27
C-28
C-29
C-31
C-32
C-33
C-34

RESIDIA Bunkyo-Hongo II
RESIDIA Ryogoku
RESIDIA Higashi-Ginza
RESIDIA Nihonbashi-Ningyocho II
RESIDIA Omori-Higashi
RESIDIA Kinshicho
RESIDIA Negishi
RESIDIA Shinkawa
RESIDIA Kamiikebukuro
RESIDIA Shin-nakano
RESIDIA Bunkyo-Yushima II
RESIDIA Tsukiji
RESIDIA Sasazuka
RESIDIA Kyobashi
RESIDIA Tamagawa
RESIDIA Korakuen
RESIDIA Ginza-Higashi
RESIDIA Oji
RESIDIA Mejiro II
RESIDIA Tsukishima
RESIDIA Kamata II
RESIDIA Tsukishima II
RESIDIA Kinshicho II

Sawaraku

Tokyo Metropolitan Area
SaitamaKita-ku

SapporoKashiwa

JRA Sapporo Yanaga Hokkaido
MuseumRacecourse

2
11

Kawaguchi

Chiba

4

SapporoNishi-ku

Higashi-Matsudo

Tokyo
Tachikawa

19

Kichijyoji

25Hachioji

21

27

e

26

24

Musashikosugi

Sendai16

22

Shin-Yokohama

29

1

15

Yokohama

Sen

zan
37

Aoba-ku

28 Kawasaki

5

Kanagawa

ine

Chuo-ku

Lin

7

34

se
ito
Ch

12

17

Shiroishi-ku
Ha
ko
da
te
26 Clock Tower
Ma
25 45
in L
24 58
48

31

23

38

Aobayama Park

14 20

in
Ma

u
ok

h
To

Lin

e

56

Sendai52
13

Sendai City
Athletic Stadium

Wakabayashi-ku

Mt. Myoken

Hakata Ward Oﬃce

Chuo-ku

10

Kyoto

Hakata-ku

47

21

30 36

International
Hotel Nagoya

RESIDIA Ochanomizu
RESIDIA Omori
RESIDIA Nakamurabashi
RESIDIA Kachidoki
RESIDIA Bunkyo-Otowa II
RESIDIA Kinshicho III
RESIDIA Kamata III
RESIDIA TOWER Kami-Ikebukuro
RESIDIA Takashima-DairaRESIDIA Shimura-Sakaue
RESIDIA Shimura-Sakaue II
RESIDIA Shimura-Sakaue III
RESIDIA Ikebukuro WestRESIDIA Ojima
Tokyo Student-House HIYOSHIDAI
Chester House Kawaguchi
RESIDIA Higashi-Matsudo
RESIDIA Shin-Yokohama
RESIDIA Chofu
Tokyo Student-House WAKORESIDIA Kokubunji
RESIDIA Yokohama-Kannai
RESIDIA Okurayama

46

11
39 14
40 35

K
Ma ansain L iine

Kameyama

Higashi-ku

Naka-ku43

517

Tsu City

S-21
S-22
S-23
S-24
S-25
S-26
S-27
S-28
S-29
R-2
R-4
R-5
R-6
R-8

RESIDIA Musashikosugi
RESIDIA Funabashi I/IIRESIDIA Kichijoji
Pacific Royal Court
Minato Mirai Ocean Tower
Maison YachiyodaiLife & Senior House Kohoku II
College Court Tanashi
RESIDIA Urayasu
RESIDIA Minami-Gyotoku
RESIDIA Urayasu II
RESIDIA Gyotoku
RESIDIA Kawasaki
Cocofump Hiyoshi
RESIDIA Imadegawa
RESIDIA Higashi-Sakura
RESIDIA Kameyama
RESIDIA Ryokuchikoen
RESIDIA Kobe Port Island

R-10
R-11
R-12

RESIDIA Hakata
RESIDIA Tenjinbashi
RESIDIA Sannomiya-Higashi

S-16
S-17
S-19
S-20

K

4
53

27 32

e

C-58
C-59
C-60
C-61
C-62
C-63
C-64
C-65
C-66
C-67
C-68
C-69
C-70
C-71
S-1
S-2
S-4
S-5
S-7
S-11
S-12
S-14
S-15

Osaka

51

e

Lin

16

in
ain L

TokaidoMain Line

in
Ma
sai
an

M
aido

44

Tok

Kobe 55 12

ine

a
im
sh inego n L
Ka ai
M

41

Nara L

Sanyo
Mt.
Rokko
六甲山
Mt. Maya
Shinkansen Line 6

8

RESIDIA Bunkyo-Otowa
RESIDIA Bunkyo-Sengoku
RESIDIA Bunkyo-Yushima
RESIDIA Ikegami
RESIDIA Nihonbashi-Ningyocho
RESIDIA Bunkyo-Sengoku II
RESIDIA Iriya
RESIDIA Nihonbashi-Hamacho
RESIDIA Shin-Okachimachi
RESIDIA Chidoricho
RESIDIA Shinkawa II
RESIDIA Mejiro
RESIDIA Kasai
RESIDIA Nihonbashi-Bakurocho
RESIDIA Suginami-Honancho
RESIDIA Shin-Itabashi
RESIDIA Kiba
RESIDIA Bunkyo-Yushima III
RESIDIA Bunkyo-Honkomagome
RESIDIA Tsukishima III
RESIDIA Minamisenjyu
RESIDIA Ogikubo
RESIDIA Monzennakacho

Nagoya Castle

Nagoya20

Fukuoka City
Botanical Garden

C-35
C-36
C-37
C-38
C-39
C-40
C-41
C-42
C-43
C-44
C-45
C-46
C-47
C-48
C-49
C-50
C-51
C-52
C-53
C-54
C-55
C-56
C-57

Sanin Main Line

Lin

42

Sawaraku

Nagoya Dome

50
49 15

M
ain

19 Hakata

Nagoya2

29

Mt. Kenpi

57

e

Osaka

e
ido Linka n
To anseink
Sh

Fukuoka
Prefectural
Government
Oﬃce

ine

nL

nse

Ch
uo

e
o Lin
ny n
Sa nse
ka
in
Sh

S

ku

Taihaku-ku

Fukuoka

e
Lin

ka
hin

ho
To

54

TohokuUniversity

achi
Katam eLins

Major Regional Cities

R-13
R-14
R-15
R-16
R-17
R-19
R-20
R-21
R-24
R-25
R-26
R-27
R-29
R-30
R-31
R-32
R-34
R-35
R-36
R-37
R-38
R-39
R-40

KC21 Building
RESIDIA Utsubokoen
RESIDIA Kyoto-ekimae
RESIDIA Takaoka
RESIDIA Hibino
RESIDIA Tenjin-Minami
RESIDIA Hakataeki-Minami
Mare
RESIDIA Minami-Ichijo
RESIDIA Odori-Nishi
RESIDIA Kita-Sanjo
RESIDIA Shirakabe-Higashi
RESIDIA Uzumasa
RESIDIA Izumi
RESIDIA Maruyama Kita-Gojo
RESIDIA Tokugawa
RESIDIA Odori-Koen
RESIDIA Tanimachi
RESIDIA Hisaya-Oodori
RESIDIA Sendai-Miyamachi
RESIDIA Hirosedori
RESIDIA Edobori
RESIDIA Kyomachibori

R-41
R-42
R-43
R-44
R-45
R-46
R-47
R-48
R-49
R-50
R-51
R-52
R-53
R-54
R-55
R-56
R-57
R-58

RESIDIA Esaka
RESIDIA Nishijin
RESIDIA Tsurumai
RESIDIA Kobe-Isogami
RESIDIA Kita-Nijyo-East
RESIDIA Shinsaibashi WestRESIDIA Marunouchi
RESIDIA Sapporo-Ekimae
RESIDIA Gosho-Higashi
RESIDIA Rakuhoku
RESIDIA Miyakojima I/IIRESIDIA TOWER Sendai
RESIDIA Higashi-Sakura II
RESIDIA Tsutsujigaoka
RESIDIA Kobe-Motomachi
RESIDIA Sendai-honcho
RESIDIA Sendai-Haranomachi
RESIDIA Minami-Ichijo-East… Properties acquired after the endof 7th fiscal period (January 31, 2014)

60

Portfolio List
As of January 31, 2014
Name of property

Location

Construction
completion date

P-2
P-3
P-4
P-5
P-7
P-9
P-10
P-13
P-14
P-15
P-16
P-19
P-21
P-22
P-23
P-24
P-25
P-26
P-29
P-30
P-31
P-32
P-33
P-34
P-35
P-36
P-37
P-38
P-39
P-40
P-41
P-42
P-43
P-45
P-47
P-48
P-49
P-50
P-51
P-52
P-53
P-55
P-56
P-58
P-59
P-60
P-61
P-62
P-63
P-64
P-65
P-66
P-67
P-68
P-69
P-70
P-72
P-73
P-74
P-75
P-76
P-77
P-78
P-79
P-80
P-81
P-83
P-84
P-85
P-86
P-87
P-88
P-89
P-90
P-91
P-92
P-93
P-94
P-95

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

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

December 2004
February 2005
March 2002
November 1999
August 2005
March 2004
February 2006
July 2006
February 2007
March 2007
February 2009
August 2001
February 2004
August 2000
February 2004
February 2001
January 2001
October 1999
November 2005
February 2005
October 2004
February 2005
February 2005
February 2005
December 2005
January 2006
September 2006
August 2006
January 2006
September 2006
March 2006
August 2006
July 2007
March 2002
December 2004
August 2004
May 2004
July 2004
July 2004
August 2004
September 1999
January 2007
January 2005
March 2005
October 2003
April 2006
March 2007
January 2003
June 2006
November 2005
February 2006
August 2006
June 2006
March 2006
May 2007
August 2007
December 2002
September 1991
January 2007
August 2006
May 2005
February 2001
February 2006
January 1993
July 1998
June 2003
January 1998
February 1997
October 2008
January 2010
August 2008
June 2008
March 2007
January 2011
January 2010
October 2007
January 2012
March 2012
March 2012

3,474.37
1,694.18
1,769.67
1,986.76
1,423.38
2,845.89
1,129.72
1,201.37
2,897.99
723.10818.74623.801,743.06
1,219.08
2,354.20
1,018.71
653.04701.01
1,733.63
2,274.19
488.51464.64478.57509.66
1,249.56
2,194.56
1,740.50
2,588.01
1,448.84
1,353.41
1,422.45
1,182.34
1,321.76
1,435.93
3,039.14
3,485.00
1,352.02
7,078.64
2,067.08
3,003.34
4,803.29
21,019.77
2,847.19
782.332,544.25
1,582.54
2,023.88
7,207.18
1,285.42
2,855.06
1,732.06
2,023.20
1,534.57
1,933.54
2,478.31
1,035.75
1,679.94
8,508.36
1,228.15
5,423.36
13,490.67
7,382.62
5,978.20
1,473.68
1,545.36
2,172.91
5,977.18
2,173.62
1,182.47
3,898.10
2,169.57
1,996.81
3,989.13
4,548.96
1,206.38
1,127.78
1,612.65
2,171.74
1,888.07

115
88
28
44
42
86
35
39
120
22
39
30
54
48
65
37
26
20
76
67
18
16
19
15
48
61
70
122
34
63
52
52
40
28
65
68
37
125
42
85
88
358
78
13
64
31
39
113
40
65
47
48
43
34
74
26
19
154
16
118
191
41
83
16
6
12
77
26
59
72
98
66
70
166
31
17
48
90
53

2,860
1,730
1,229
1,987
1,230
2,270
1,130
1,120
2,720
732
750
588
1,380
941
1,520
874
554
722
1,660
1,950
333
326
363
286
947
2,280
1,180
2,040
1,190
1,320
1,160
918
1,050
1,050
2,310
3,660
1,180
6,780
2,150
2,500
3,570
16,500
2,760
728
1,620
1,430
2,020
6,190
1,250
1,880
1,610
1,740
1,140
1,280
1,830
923
974
4,670
930
5,260
9,570
8,430
7,040
878
1,100
1,750
7,360
1,460
870
2,400
2,070
1,523
3,300
3,760
950
778
1,240
1,620
1,480

0.71%
0.43%
0.31%
0.49%
0.31%
0.56%
0.28%
0.28%
0.68%
0.18%
0.19%
0.15%
0.34%
0.23%
0.38%
0.22%
0.14%
0.18%
0.41%
0.49%
0.08%
0.08%
0.09%
0.07%
0.24%
0.57%
0.29%
0.51%
0.30%
0.33%
0.29%
0.23%
0.26%
0.26%
0.57%
0.91%
0.29%
1.69%
0.54%
0.62%
0.89%
4.11%
0.69%
0.18%
0.40%
0.36%
0.50%
1.54%
0.31%
0.47%
0.40%
0.43%
0.28%
0.32%
0.46%
0.23%
0.24%
1.16%
0.23%
1.31%
2.38%
2.10%
1.75%
0.22%
0.27%
0.44%
1.83%
0.36%
0.22%
0.60%
0.52%
0.38%
0.82%
0.94%
0.24%
0.19%
0.31%
0.40%
0.37%

P-96

RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

March 2008

5,529.19

187

3,656

0.91%

7 main wards in central Tokyo

Investment Property
regionno.

61

Leasable floor Number of Acquisition price Investmentarea (m2)leasable units (million yen)
ratio

PML
4.3%
2.6%
7.3%
4.2%
3.1%
2.9%
7.3%
7.0%
4.3%
4.4%
4.3%
8.2%
4.8%
5.3%
4.1%
3.1%
3.0%
6.2%
2.9%
5.3%
8.5%
11.0%
9.9%
10.6%
4.3%
3.4%
4.8%
4.0%
6.5%
3.3%
2.8%
2.1%
4.8%
7.3%
2.3%
3.5%
8.3%
2.8%
4.0%
3.6%
6.8%
1.8%
2.7%
2.0%
3.4%
3.2%
7.1%
0.7%
3.5%
3.4%
4.6%
3.3%
4.9%
4.4%
10.9%
2.8%
4.9%
2.8%
7.9%
7.8%
3.6%
9.7%
1.5%
7.7%
5.1%
4.8%
6.7%
8.8%
10.0%
4.4%
3.0%
10.3%
2.4%
4.2%
2.6%
5.4%
2.6%
2.2%
6.7%
2.9%
2.9%
3.0%

As of January 31, 2014

Tokyo Metropolitan Area

Tokyo 23 Wards

Investment Property
regionno.

Name of property

Location

Construction
completion date

Leasable floor Number of Acquisition price Investmentarea (m2)leasable units (million yen)
ratio

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

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

Chuo-ku, Tokyo
Ota-ku, Tokyo
Toshima-ku, Tokyo
Bunkyo-ku, Tokyo
Taito-ku, Tokyo
Nerima-ku, Tokyo
Taito-ku, Tokyo
Bunkyo-ku, Tokyo
Sumida-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Sumida-ku, Tokyo
Taito-ku, Tokyo
Chuo-ku, Tokyo
Toshima-ku, Tokyo
Nakano-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Suginami-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Kita-ku, Tokyo
Toshima-ku, Tokyo
Chuo-ku, Tokyo
Ota-ku, Tokyo
Chuo-ku, Tokyo
Sumida-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Ota-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Taito-ku, Tokyo
Chuo-ku, Tokyo
Taito-ku, Tokyo
Ota-ku, Tokyo
Chuo-ku, Tokyo
Toshima-ku, Tokyo
Edogawa-ku, Tokyo
Chuo-ku, Tokyo
Suginami-ku, Tokyo
Itabashi-ku, Tokyo
Koto-ku, Tokyo
Bunkyo-ku, Tokyo
Bunkyo-ku, Tokyo
Chuo-ku, Tokyo
Arakawa-ku, Tokyo
Suginami-ku, Tokyo
Koto-ku, Tokyo
Bunkyo-ku, Tokyo
Ota-ku, Tokyo
Nerima-ku, Tokyo
Chuo-ku, Tokyo
Bunkyo-ku, Tokyo
Koto-ku, Tokyo
Ota-ku, Tokyo

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

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

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

1,920
2,640
1,520
1,680
1,060
954
3,160
1,623
913
5,251
3,180
1,980
4,200
856
1,880
558
352
1,010
1,460
1,800
1,220
1,300
603
2,000
867
1,050
1,100
1,360
2,440
2,380
3,380
707
1,050
378
557
1,440
990
1,310
1,860
1,290
1,320
6,280
683
5,500
3,834
888
1,950
1,129
2,340
2,570
2,580
1,710
970
2,090
1,150
1,075
1,805
2,268
651
948

0.48%
0.66%
0.38%
0.42%
0.26%
0.24%
0.79%
0.40%
0.23%
1.31%
0.79%
0.49%
1.05%
0.21%
0.47%
0.14%
0.09%
0.25%
0.36%
0.45%
0.30%
0.32%
0.15%
0.50%
0.22%
0.26%
0.27%
0.34%
0.61%
0.59%
0.84%
0.18%
0.26%
0.09%
0.14%
0.36%
0.25%
0.33%
0.46%
0.32%
0.33%
1.56%
0.17%
1.37%
0.95%
0.22%
0.49%
0.28%
0.58%
0.64%
0.64%
0.43%
0.24%
0.52%
0.29%
0.27%
0.45%
0.56%
0.16%
0.24%

C-65

RESIDIA TOWER Kami-Ikebukuro

Toshima-ku, Tokyo

March 2009

31,250.61

472

8,250

2.05%

C-66
C-67
C-68
C-69
S-1
S-2
S-4
S-5
S-7
S-11
S-12
S-14
S-15
S-16

RESIDIA Takashima-DairaRESIDIA Shimura-Sakaue
RESIDIA Shimura-Sakaue II
RESIDIA Shimura-Sakaue III
Tokyo Student-House HIYOSHIDAI
Chester House Kawaguchi
RESIDIA Higashi-Matsudo
RESIDIA Shin-Yokohama
RESIDIA Chofu
Tokyo Student-House WAKORESIDIA Kokubunji
RESIDIA Yokohama-Kannai
RESIDIA Okurayama
RESIDIA Musashikosugi

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

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

977.96995.372,066.19
796.768,552.00
2,023.11
3,431.44
3,277.62
1,750.49
1,684.02
879.442,359.60
1,334.56
2,560.40

45
44
94
36
920
39
44
131
41
127
33
102
64
68

502
580
1,093
411
3,420
771
1,100
1,920
1,143
675
518
1,700
755
1,580

0.12%
0.14%
0.27%
0.10%
0.85%
0.19%
0.27%
0.48%
0.28%
0.17%
0.13%
0.42%
0.19%
0.39%

S-17

RESIDIA Funabashi I/II

Funabashi-shi, Chiba

March 2007

4,567.44

172

2,730

0.68%

S-19
S-20
S-21
S-22
S-23
S-24
S-25
S-26
S-27
S-28
S-29

RESIDIA Kichijoji
Pacific Royal Court Minato Mirai Ocean Tower
Maison YachiyodaiLife & Senior House Kohoku II
College Court Tanashi
RESIDIA Urayasu
RESIDIA Minami-Gyotoku
RESIDIA Urayasu II
RESIDIA Gyotoku
RESIDIA Kawasaki
Cocofump Hiyoshi

Musashino-shi, Tokyo
Yokohama-shi, Kanagawa
Yachiyo-shi, Chiba
Yokohama-shi, Kanagawa
Nishi-Tokyo-shi, Tokyo
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Urayasu-shi, Chiba
Ichikawa-shi, Chiba
Kawasaki-shi, Kanagawa
Yokohama-shi, Kanagawa

March 1995
November 2007
August 1989
October 2003
February 2010
September 2009
February 2005
February 2005
February 2005
March 2007
January 2010

2,214.73
26,082.53
3,506.54
5,433.40
1,136.09
3,692.76
1,785.00
1,554.00
1,569.74
2,644.73
5,247.90

48
416
39
78
91
146
85
74
75
104
85

1,380
14,000
882
1,670
810
2,115
823
802
761
1,670
1,050

0.34%
3.48%
0.22%
0.42%
0.20%
0.53%
0.20%
0.20%
0.19%
0.42%
0.26%

PML
3.3%
4.7%
7.1%
4.6%
2.9%
9.2%
2.1%
3.6%
9.1%
4.3%
4.6%
3.8%
7.2%
7.7%
5.3%
6.4%
3.8%
5.3%
3.4%
6.9%
3.4%
5.9%
3.5%
4.0%
3.2%
2.3%
6.8%
4.0%
3.8%
4.7%
4.7%
5.0%
6.9%
8.5%
5.6%
4.1%
5.4%
4.5%
3.0%
5.0%
3.9%
2.6%
7.0%
2.4%
4.3%
8.6%
7.2%
4.4%
3.5%
4.0%
5.3%
4.5%
7.6%
4.2%
1.8%
4.5%
4.9%
4.0%
9.6%
3.5%
2.9%
5.4%
5.7%
4.8%
3.4%
5.6%
5.4%
7.1%
5.5%
4.6%
5.6%
5.0%
10.2%
2.9%
8.4%
5.3%
7.2%
3.6%
3.4%
9.1%
4.5%
5.4%
6.4%
7.7%
6.7%
6.6%
7.5%
6.1%
4.7%
7.5%

62

Portfolio List
As of January 31, 2014

Major Regional Cities

Investment Property
regionno.

Name of property

Location

Construction
completion date

Kyoto-shi, Kyoto
Nagoya-shi, Aichi
Kameyama-shi, Mie
Toyonaka-shi, Osaka

February 1999
February 2006
February 2007
May 2007

Leasable floor Number of Acquisition price Investmentarea (m2)leasable units (million yen)
ratio

R-2
R-4
R-5
R-6

RESIDIA Imadegawa
RESIDIA Higashi-Sakura
RESIDIA Kameyama
RESIDIA Ryokuchikoen

R-8

RESIDIA Kobe Port Island

Kobe-shi, Hyogo

September 2007

9,708.00

404

3,740

0.93%

R-10
R-11
R-12
R-13
R-14
R-15
R-16
R-17
R-19
R-20
R-21
R-24
R-25
R-26
R-27
R-29
R-30
R-31
R-32
R-34
R-35
R-36
R-37
R-38
R-39
R-40
R-41
R-42
R-43
R-44
R-45
R-46
R-47
R-48
R-49
R-50
R-51
R-52

RESIDIA Hakata
RESIDIA Tenjinbashi
RESIDIA Sannomiya-Higashi
KC21 Building
RESIDIA Utsubokoen
RESIDIA Kyoto-ekimae
RESIDIA Takaoka
RESIDIA Hibino
RESIDIA Tenjin-Minami
RESIDIA Hakataeki-Minami
Mare
RESIDIA Minami-Ichijo
RESIDIA Odori-Nishi
RESIDIA Kita-Sanjo
RESIDIA Shirakabe-Higashi
RESIDIA Uzumasa
RESIDIA Izumi
RESIDIA Maruyama Kita-Gojo
RESIDIA Tokugawa
RESIDIA Odori-Koen
RESIDIA Tanimachi
RESIDIA Hisaya-Oodori
RESIDIA Sendai-Miyamachi
RESIDIA Hirosedori
RESIDIA Edobori
RESIDIA Kyomachibori
RESIDIA Esaka
RESIDIA Nishijin
RESIDIA Tsurumai
RESIDIA Kobe-Isogami
RESIDIA Kita-Nijyo-East
RESIDIA Shinsaibashi WestRESIDIA Marunouchi
RESIDIA Sapporo-Ekimae
RESIDIA Gosho-Higashi
RESIDIA Rakuhoku
RESIDIA Miyakojima I/IIRESIDIA TOWER Sendai
Total

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

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

3,955.24
2,113.91
5,698.03
2,716.11
2,741.46
4,010.85
5,944.56
7,598.40
3,179.96
1,606.29
1,930.70
5,928.51
4,512.24
3,867.60
2,709.97
3,201.93
9,715.22
3,920.00
2,282.49
6,230.49
2,655.18
1,684.19
2,005.48
1,564.29
3,369.51
2,398.90
2,177.04
7,282.78
3,116.98
6,714.74
3,808.98
4,243.06
2,349.52
6,088.03
2,601.26
2,101.83
12,724.11
5,088.45

155
78
161
79
94
116
198
124
56
39
38
179
103
100
33
48
122
56
27
109
108
57
67
63
127
84
68
173
122
196
56
97
86
168
57
75
178
67
18,113

1,220
871
2,220
900
1,170
1,970
2,330
1,340
936
324
685
1,640
1,320
1,130
831
701
3,700
1,050
751
2,010
1,100
653
529
494
1,400
1,000
990
2,380
1,206
2,740
894
1,921
972
1,483
1,227
874
3,232
1,705
401,829

0.30%
0.22%
0.55%
0.22%
0.29%
0.49%
0.58%
0.33%
0.23%
0.08%
0.17%
0.41%
0.33%
0.28%
0.21%
0.17%
0.92%
0.26%
0.19%
0.50%
0.27%
0.16%
0.13%
0.12%
0.35%
0.25%
0.25%
0.59%
0.30%
0.68%
0.22%
0.48%
0.24%
0.37%
0.31%
0.22%
0.80%
0.42%
100.00%Meguro-ku, Tokyo
Minato-ku, Tokyo
Shinjuku-ku, Tokyo
Itabashi-ku, Tokyo
Koto-ku, Tokyo
Nagoya-shi, Aichi

August 2006
July 2008
May 2009
October 2007
November 2007
February 2006

1,259.45
1,717.68
2,915.94
1,996.47
1,824.39
8,467.67

50
23
90
72
87
127

1,119
1,720
2,090
1,115
1,282
2,862

7.08%
10.88%
13.22%
7.05%
8.11%
18.10%

Properties acquired in 8th fiscal period
P-97 RESIDIA Nakameguro II
P-98 Artis Court Minamiaoyama
P-99 RESIDIA Yotsuya Sanchome
C-70 RESIDIA Ikebukuro WestC-71 RESIDIA Ojima
R-53 RESIDIA Higashi-Sakura II

3,714.11
3,084.03
6,065.11
2,391.35

154
91
182
44

1,671
1,290
1,610
979

0.42%
0.32%
0.40%
0.24%

R-54

RESIDIA Tsutsujigaoka

Sendai-shi, Miyagi

November 2006

5,415.90

168

1,796

11.36%

R-55
R-56
R-57
R-58

RESIDIA Kobe-Motomachi
RESIDIA Sendai-honcho
RESIDIA Sendai-Haranomachi
RESIDIA Minami-Ichijo-East
Total

Kobe-shi, Hyogo
Sendai-shi, Miyagi
Sendai-shi, Miyagi
Sapporo-shi, Hokkaido

January 2007
June 2007
September 2007
January 2008

2,373.77
3,143.80
2,111.76
4,063.96

85
105
72
85
964

1,052
1,117
593
1,062
15,808

6.65%
7.07%
3.75%
6.72%
100.00%

PML
10.9%
3.4%
4.2%
5.7%
6.8%
6.7%
3.4%
8.3%
3.2%
2.4%
6.6%
9.9%
3.5%
3.9%
4.9%
2.7%
5.0%
0.9%
1.1%
1.4%
4.1%
13.5%
3.1%
1.2%
3.9%
0.9%
7.5%
4.8%
2.5%
2.8%
8.7%
7.8%
4.8%
2.6%
3.6%
3.6%
1.1%
9.1%
2.8%
0.7%
8.9%
12.4%
7.1%
2.3%
2.8%

2.7%
3.9%
3.8%
3.0%
6.1%
3.1%
2.6%
2.7%
5.8%
2.3%
2.1%
1.1%

Note 1. In the “Investment region” column, “Tokyo Central 7 Wards” indicates the Minato, Chiyoda, Shibuya, Shinjuku, Meguro, Setagaya and Shinagawa
wards of Tokyo; “Tokyo 23 Wards” indicates the Tokyo 23 wards other than the Tokyo Central 7 Wards; “Tokyo Metropolitan Area” indicates Tokyo(excluding the Tokyo 23 wards) and Kanagawa, Saitama and Chiba prefectures; and “Major Regional Cities” indicates cabinet order designated andsimilar cities excluding cities in the Tokyo Metropolitan Area.
2. In the “Completion date” column, if there are multiple buildings in a property where the completion dates differs, the listed completion date is
calculated by averaging each buildings’ completion date weighted by the respective buildings’ total floor space.
3. In the “Acquisition price” column, monetary amounts are rounded down to the nearest million yen. Accordingly, the sum total of the itemized figures
does not necessarily add up to the “Total” amount entered in the foregoing table.

63Asset Management Company Profile
AD Investment Management Co., Ltd.
Hitotsubashi SI Building 9F, 3-26 Kanda Nishiki-cho, Chiyoda-ku, Tokyo
Executive
Director
As of April 1, 2014

Description ofbusiness
Company history

President

Kenji Kousaka

Executive Director
Managing Director
DirectorTakeshi Takano
Junichi Shoji
Tomoyuki Kimura

Director
Director

Hiroshi Kawakami
Masato Kawanishi

Director (non-executive)
Director (non-executive)

Yoshinori Komoto
Kouji Fukaki

Director (non-executive)
Statutory Auditor
Statutory Auditor (non-executive)

Nobuchika Goto
Hiromasa Yamamaoto
Kaori Iwasawa

Investment management businessFeb. 2, 2005

Established as Japan Residential Management Co., Ltd.

Apr. 9, 2005

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

May 17, 2005

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

June 23, 2005
Sep. 8, 2005
Sep. 30, 2007

Obtained discretionary transaction agent and other approval under Building Lots and Buildings Transaction
Business Act (Minister of Land, Infrastructure, Transport and Tourism Approval No. 37)
Obtained investment trust settlor business approval under Act on Investment Trusts and Investment
Corporations (Prime Minister Approval No. 49)
Registered as financial instruments business operator (Director-General of Kanto Local Finance Bureau(Kinsho) Registration No. 309)

Mar. 1, 2010

Merged with Pacific Residential Corporation in absorption-type merger

Aug. 5, 2013

Registrated as first-class authorized architect office (Tokyo Metropolitan Registration No. 58856)

Shareholder
composition

Name

No. of Shares

Voting Rights (%)

ITOCHU Corporation

2,880

46.6

ITOCHU Property Development, Ltd.

1,200

19.4

Nippon Tochi-Tatemono Co., Ltd.

1,200

19.4

Aozora Bank, Ltd.

180

2.9

Mizuho Trust & Banking Co., Ltd.

180

2.9

Sumitomo Mitsui Banking Corporation

180

2.9

Sumitomo Mitsui Trust Bank Limited

180

2.9

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

180

2.9

6,180

100.0

Total

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

64

Investor Information
Unit-holder Memo
Fiscal period end
General meeting of unit-holders

January 31 and July 31 of every year
Held at least once every 2 years

Date for determining unit-holders
exercising voting rights at meeting

The date will be publicly notified in advance

Record date for determining
dividend payments(Dividends will be paid within 3 months of the record date for determining payments.)

January 31 and July 31 of every year

Unit listing
Newspaper for public noticeTokyo Stock Exchange (Securities Code: 3269)
The Nikkei

Transfer agent
Business office of transfer agent

Mizuho Trust & Banking Co., Ltd. 1-2-1 Yaesu, Chuo-ku, Tokyo
Stock Transfer Agency Department, Main Office Mizuho Trust &Banking Co., Ltd. 1-2-1 Yaesu, Chuo-ku, Tokyo
StockTransfer Agency Department
Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo 168-8507
0120-288-324 (toll free in Japan)

Contact
Mailing address
Phone

Unit-holder Composition
As of January 31, 2014

1st FP

2nd FP
3rd FP

49.6%

6.8%

26.5%

17.1%

4th FP

51.2%

6.8%

24.7%

17.3%

5th FP

55.0%

6th FP

57.4%(ended January 2012)(ended July 2012)(ended January 2013)(ended July 2013)

7th FP

0%

6.0%

50%

Japanese Financial Institutions Other Japanese(including Securities Companies) Corporations(share)No. of Units
No. of unit-holders

23.2%
5.6%

25%
(share)

16.2%

22.1%

6.6%

62.8%

(ended January 2014)

65

16.9%

22.8%

7.0%

53.3%

(ended July 2011)

19.2%

23.0%

7.5%

50.3%

(ended January 2011)

13.4%

19.6%

12.0%

75%

100%

Foreign Corporations
and Individuals

Domestic Individuals
and Others(share)Total(share)(share)778,347

62.8%

69,775

5.6%

243,11119.6%

148,76712.0%

1,240,000

100.0%

163

0.7%

315

1.4%

223

1.0%

21,27996.8%

21,980100.0%

Annual Schedule
2014. 4

Delivery of 7th Fiscal Period financial report
Payment of 7th Fiscal Period dividend

2014. 5Investment performance briefing for unit-holders

2014. 7

End of 8th fiscal period

2014. 9Announcement of 8th Fiscal period results

2014.10

Delivery of 8th Fiscal Period financial report
Payment of 8th Fiscal Period dividend

2014.11

Investment performance briefing for unit-holders

2015. 1

End of 9th fiscal period

2015. 3

Announcement of 9th Fiscal period results

Inquiries

Dividends

Please direct any inquiries concerning ADR’s units(address, name, dividend transfer account designation,changes, etc.) to your securities company at which you
have opened the transfer account for units.

Dividends can be collected by bringing the “unit-holder
dividend receipt” to your nearest Japan Post Bank mainor branch office, sub-branch office or post office (bankagent) in Japan. If the collection period has elapsed,
please make your collection by designating the collection
method on the back of the “unit-holder dividend receipt”
and mailing it to Mizuho Trust & Banking’s Stock Transfer
Agency Department or bringing it to a Mizuho Trust &Banking, Mizuho Securities main or branch offices. (Note:
Depending on the office, when the payment processing
does not take place on the premises, it may take a few
days to collect.) If you wish to designate a bank transfer
for future dividend payments, please contact yoursecurities company.

Disclosures
ADR strives to provide information to unit-holders in atransparent and timely manner by uploading an arrayof information and data on the ADR website, including
documents that must be disclosed by law, press
releases, information on business performance (kessan
tanshin, presentation materials for analyst meetings,etc.) and information on portfolio assets. ADR willremain dedicated to providing easy-to understand andtimely information by continuing to increasingly enrich
the content of the website.

66

3-26

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