14th
Fiscal Period ReportFebruary 1, 2017 - July 31, 2017

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

Balancesheet figures

Per unit
figures

Financial
indicators

Reference
information

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

10th FP

11th FP

12th FP

13th FP

14th FP

units

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

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

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

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

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

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

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

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

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

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

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

Notes 1. Operating revenues do not include consumption tax. Amounts are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal place. The
same applies for the rest of this report unless otherwise specified.
2. The net income per unit is calculated by dividing net income by the daily weighted average number of units issued and outstanding.
3. The annualized figures are calculated using accounting calculation periods of 181 days for the 10th Fiscal Period, 184 days for the 11th Fiscal Period, 182 days for the 12th Fiscal
Period, 184 days for the 13th Fiscal Period and 181 days for the 14th Fiscal Period.
4. Ratio of ordinary income to total assets = Ordinary income ÷ {(Total assets at beginning of period + Total assets at end of period) ÷ 2} × 100
5. Return on equity = Net income ÷ {(Net assets at beginning of period + Net assets at end of period) ÷ 2} × 100
6. In the calculation of NOI, the depreciation and amortization is limited to what is included in rental business expenses.
7. Annualized NOI yield = Total annualized NOI ÷ Total property acquisition price(The annualized NOI yield is calculated by taking into account the actual number of days of operation for each property.)
8. Depreciation and amortization includes amortization of intangible assets in addition to depreciation of property, plant and equipment.
9. “Leasable ﬂoor area at end of period” refers to the leasable ﬂoor area for each building. The area that does not include the leasable ﬂoor area of land (parking lots) that isindicated on the lease agreement or applicable drawings is stated.
10. “Occupancy rate at end of period” is calculated by using the formula: “Leased ﬂoor area” ÷ “Leasable ﬂoor area” × 100.

1

2 Investment Environment and Operating PerformanceWith the aim of realizing a stable distribution of earnings over the long term, we carried out the following initiatives during
the current fiscal period.
1. Internal Growth
Maintained high occupancy rates, increased rent levels, and heightened competitive advantages by carrying out valueenhancement works.
2. External Growth
Increased assets under management by acquiring prime properties, two recently constructed properties from the sponsor
pipeline and another property from a third party through a negotiated transaction.
3. Finance
Extended duration on interest-bearing liabilities, reduced the average interest rate and raised the fixed interest ratio ofdebts compared to the previous fiscal period.
By executing these initiatives, we were able to attain the following fiscal period results.

Item

Previous FP
Results

Initial forecast Note 1

Operating revenues

15,50415,755

Operating income

7,801

7,819

Ordinary income

6,371

6,480

Net income

6,371

Earnings Per Unit

4,719 yen

Dividend Per Unit

4,979 yen

6,480
Note 24,800 yen
5,049 yen

14th FP Results(July 2017)15,918
7,968

6,642

6,642

4,920 yen

5,169 yen(million yen)

Difference from the previous FP Difference from the initial forecast
+414
+162
+167

+149

+270

+162

+270
Note 2+201 yen+162
Note 3+190 yen+120 yen Note 3+120 yen

Notes 1. The initial forecast refers to the earnings forecasts for the 13th Fiscal Period disclosed in the “Brief Summary of Kessan Tanshin” for the 13th Fiscal Period, dated March 10, 2017.
The same holds true hereafter.
2. Calculated by dividing net income by the number of units issued and outstanding as of the end of the fiscal period. The same applies hereafter unless otherwise specified.
3. Decimals are deleted from the EPU figures.

ADR achieved increases in revenues and profits against the forecasts, mainly due to 1) rental revenue gains as a result of higherthan-expected occupancy rates, and due to 2) a decrease in interest expenses as a result of lower-than-expected financing
rates. And against the previous fiscal period, ADR achieved increases in revenues and profits over the previous fiscal period
largely due to the earnings contributions from newly acquired properties, which translates to 201 yen increase in earnings perunit (EPU) to 4,920 yen.
As a result, the dividend per unit (DPU), with the addition of the drawdown in the reserve for a temporary difference adjustment(RTA) of 248 yen per unit, amounted to 5,169 yen, which is 120 yen higher than the initial forecast and 190 yen higher thanprevious fiscal period results.
1. Internal Growth– Maintained high occupancy rates and increased rents –While the population inflow continues in the regions where ADR invests, rental housing supply has been limited thereby
resulting in a tight leasing market. Amid that favorable environment, we were able to achieve a record high average period
occupancy rate of 97.0% in the current fiscal period. Along with the fact that the fiscal period included the peak leasing
season (Note 4), therefore allowing us to aggressively pursue rent hikes in both tenant replacements and contract renewals, wewere able to increase the overall portfolio rent level (Note 5) by 0.30% over rent levels of January 31, 2017.
– Strengthening competitiveness of our properties by carrying out value enhancement work –ADR systematically conducts large-scale renovations of its properties in order to maintain functionality and improve theirappearance. In addition, ADR carries out value enhancement work mostly on individual units of properties that have recently
gone through large-scale renovations, to maintain and enhance competitiveness in the leasing market. Value enhancement
work is implemented between tenant replacement and entails equipment upgrades and floor plan changes.
During the current fiscal period, we executed large-scale renovations on 3 properties and value enhancement work on 27

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I. Asset Management Reportresidential units. Of the residential units that underwent the value enhancement work, new rental contracts had been signed
for 20 units as of August 31, 2017. Those units saw a rise in rent of 17% on average over the previous rent. Going forward, ADR
will endeavor to enhance the competitive strengths of its properties through such initiatives.
– Promoting sustainability –In order to enhance sustainability, ADR has been 1) promoting resource conservation with respect to its property holdings byequipping them with LED lighting, water-conserving toilets and other such items, 2) heightening levels of tenant satisfaction
through efforts that include providing tenant services and carrying out tenant-satisfaction surveys, and 3) contributing to its
local communities by taking on efforts such as those that involve installing automated external defibrillators (AED) that canbe operated by nearby residents. Meanwhile, AD Investment Management Co., Ltd. has been developing compliance and risk
management frameworks and implementing measures geared to improving levels of employee satisfaction.
Having consequently gained recognition for such initiatives, ADR was selected as a constituent of the MSCI Japan ESG
Select Leaders Index during this fiscal period. With its constituents comprising companies that earn high marks for theirenvironmental, social and governance (ESG) performance, the MSCI Japan ESG Select Leaders Index has been selected as
one of the ESG benchmarks to be used by Japan’s Government Pension Investment Fund (GPIF) in carrying out its passive
investment strategy.
ADR also continued to participate in the GRESB (Global Real Estate Sustainability Benchmark) assessment, developed mainly
by European pension funds to assess the ESG performance of real estate companies, and received a “Green Star” rating for
2016.
Notes 4. In this document, the term “peak leasing season” refers to the fiscal period encompassing the months February to April during which time a relatively high number of lease contracts
are normally concluded. For ADR, the fiscal period that ends in July is the peak leasing season.
5. Change in average per-unit rent between the start and end of the fiscal period, for all properties held throughout the fiscal period. The same applies hereafter.

2. External Growth– Acquired recently built prime properties, mainly from the sponsor’s pipeline –During the current fiscal period, ADR concluded acquisitions of three properties at a total acquisition price of 5.7 billion yen,
two of which are sponsor-developed properties acquired from the sponsor ITOCHU Corporation (4.3 billion yen), and theother is a property acquired from a third party through a negotiated transaction (1.4 billion yen). While prime properties are
scarce amid an extremely competitive market, we have been able to consistently acquire such properties.
3. Finance– Reduced the average interest rate and extended the duration of interest-bearing liabilities –Under our finance policy of extending durations, fixing interest rates and diversifying maturities of interest-bearing liabilities,
ADR refinanced a total of 22.5 billion yen in debt (average initial duration of 8.3 years and average interest rate of 0.46% (Note 6)).
As a result, as of the end of the current fiscal period we have 223.3 billion yen total outstanding interest-bearing liabilities at
4.7 years average remaining duration, 0.94% average interest rate (Note 7) and 98.3% fixed interest ratio (Note 8). As such, we havemanaged to further strengthen our financial foundations.
Notes 6. The “average interest rate” is the weighted-average interest rate on loans and bonds as of their respective borrowing or issuance date. If the interest rates on the debts have been
converted to a fixed interest rate in order to hedge the risk of interest rate volatility using swap agreements, the fixed rates are used in calculating the average.
7. The “average interest rate” is the weighted-average interest rate on loans and bonds at the end of the fiscal period. If the interest rates on the debts have been converted to a fixedinterest rate in order to hedge the risk of interest rate volatility using swap agreements, the fixed rates are used in calculating the average. The same applies hereafter.
8. The “fixed interest ratio” is the ratio of the total principal amount of loans and bonds with fixed interest rate including debts with rates converted to fixed interest rate using swap
agreements, to the total amount of loans and bonds outstanding. The same applies hereafter.

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3 Management Policies and Challenges Going Forward
ADR aims to achieve steady EPU growth by implementing the strategies outlined below.
a) Internal Growth
ADR will continue working to raise rents when tenants are replaced as well as when contracts are renewed, comprehensively
taking into account property characteristics, terms and conditions of individual contracts and other such factors. Furthermore,
we will aim to maintain and improve property revenues by actively securing key money and reducing leasing-related expenses.
In addition, we will continue to enhance the competitive advantages of our properties by systematically conducting timely,
large-scale renovations, as well as implementing value enhancement work appropriate to the property’s characteristics.
b) External Growth
Because the market conditions will continue to be difficult for acquiring properties, we will strive to acquire properties thatwill contribute in improving the quality and profitability of ADR’s portfolio by acquiring from our sponsor or from third parties
through negotiated transactions by utilizing information collected by ADR, whereby minimizing competition. Meanwhile, wewill continue to seek opportunities arising from the buoyant property market to replace properties in order to improve thequality and profitability of ADR’s portfolio.
c) Finance Policy
While we will keep a close eye on interest-rate trends, we will, in our debt financing, continue to further diversify its maturities
while extending its duration and sustaining the high fixed interest ratio, thereby maintaining and strengthening a financial
foundation that is resilient to future market volatility.
d) Dividend Payout Policy
ADR focuses its efforts on generating dividend payments in accordance with its basic management policy, which calls for“realization of a stable distribution of earnings over the long term.” Moreover, starting from the previous fiscal period ADR
has been drawing down the reserve for temporary difference adjustments (RTA), in accordance with partial amendmentsof the “Regulations Concerning Accounting of Investment Corporations” and the Investment Trusts Association of Japan’s“Regulations Concerning Real Estate Investment Trusts and Real Estate Investment Corporations.” This means that ADR will fully
draw down the RTA in equal amounts or more every fiscal period within 50-year (Note 9).
In case the DPU falls below 4,500 yen even with the dividend supplement, draw down will be increased to ensure a DPU of
at least 4,500 yen (Note 10).
Notes 9. The RTA drawdown amount per fiscal period is calculated by dividing by 100, the outstanding amount of the RTA that has been transferred from the reserve for dividends as of theend of the fiscal period ended January 31, 2017 (50 year × 2 fiscal periods = 100 periods). As of the date of this document, the amount per fiscal period is approximately 335 million yen.
However, ADR may increase the amount of the drawdown indicated above in order to stabilize dividend levels.
10. However, this does not constitute a guarantee of actual amount of dividend payment. The actual amount of dividend payment will need to be decided ultimately by ADR’s Board of
Directors.

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

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

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

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

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

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

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

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

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

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

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

Number of units
held (units)

Percentage ofissued units (%)

1-8-11 Harumi, Chuo-ku, Tokyo353,309

26.17

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

153,855

11.39

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

83,527

6.18

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

52,528

3.89

2-5-1 Kita-Aoyama, Minato-ku, Tokyo
1776 Heritage Drive, North Quincy, MA 02171
U.S.A.
Office Tower Z, Harumi Island Triton Square,
1-8-12 Harumi, Chuo-ku, Tokyo
6300 Bee Cave Road, Building One Austin TX
78746 USOne Lincoln Street, Boston MA 02111 U.S.A.
P.O. Box 351 Boston Massachusetts 02101
U.S.A.

34,8002.57

19,012

1.40

18,3301.35

16,526

1.22

15,941

1.18

14,8691.10

762,697

56.49

Address

Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)
The Nomura Trust & Banking Co., Ltd.
(Investment Trust Account)
ITOCHU Corporation
State Street Bank - West Pension Fund Clients Exempt
Trust & Custody Services Bank, Ltd.
(Money Trust Tax Account)
DFA International Real Estate Securities
PortfolioState Street Bank and Trust Company
State Street Bank and Trust Company
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.

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

Primary concurrent positions

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

Kenji Kousaka Note 1

President, AD Investment Management Co., Ltd.

–

Hidejiro Matsuda

President, Hidejiro Matsuda CPA Office

1,800

Yoshiki Oshima

President, Akasaka Law Office L.P.C.

1,800

Title
Executive
Director
Supervisory
Director
Supervisory
Director
Independent
AuditorName

Deloitte Touche Tohmatsu LLC

Note 221,500 Note 3

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

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

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

Name

Asset management company

AD Investment Management Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank Limited

Administrative agent

Management of register ofunit-holders

Mizuho Trust & Banking Co., Ltd.

Management of special
accounts

Mizuho Trust & Banking Co., Ltd.

Accounting, taxation,
institutional operations

Sumitomo Mitsui Trust Bank Limited

Administration of investment
corporation bonds

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

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

Propertyno.

Name of real estate

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-2

RESIDIA Shimazuyama

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

2,381

3,190

1

96.1 87,219

0.6

196.7 88,814

0.6

P-3

RESIDIA Nakameguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,425

2,090

1

100.0 47,2560.3

1100.0 47,256

0.3

1,178

1,260

1

96.4 34,699

0.2

196.8 35,474

0.2

P-4

RESIDIA Setagaya-Tsurumaki

Setagaya-ku, Tokyo

Beneficiary interests
in trust

P-7

RESIDIA Ikejiriohashi

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,162

1,410

1

95.0 33,2270.2

192.9 36,646

0.2

P-9

RESIDIA Kudanshita

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

2,039

2,610

1

97.7 71,972

0.5

198.9 72,959

0.5

P-10 RESIDIA Hatagaya

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,069

1,230

1

92.1 31,0260.2

1100.0 31,336

0.2

P-13

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,065

1,280

1

97.9 33,888

0.2

196.3 33,841

0.2

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

2,549

2,990

1

100.0 75,454

0.5

1100.0 75,574

0.5

708

735

1

88.5 19,2320.1

192.0 19,012

0.1

RESIDIA Sakurajosui

P-14 RESIDIA Kita-Shinagawa
RESIDIA Yoyoginomori

Shibuya-ku, Tokyo

Beneficiary interests
in trust

P-16 RESIDIA Shinjuku-East III

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

724

912

1

92.5 25,089

0.2

1100.0 24,237

0.2

P-19

Leopalace Udagawacho
MansionShibuya-ku, Tokyo

Beneficiary interests
in trust

564

726

1

100.0 17,944

0.1

1100.0 17,944

0.1

P-21

RESIDIA Shinjuku-East II

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

1,309

1,700

1

86.2 43,706

0.3

188.6 44,364

0.3

P-22 RESIDIA Shinjuku-East

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

932

1,150

1

92.1 31,4380.2

194.0 30,116

0.2

P-23 RESIDIA Kanda-Iwamotocho

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,407

2,070

1

98.7 57,2260.4

1100.0 57,895

0.4

P-24 RESIDIA Azabujuban II

Minato-ku, Tokyo

Beneficiary interests
in trust

888

1,050

1

97.5 27,585

0.2

185.5 27,377

0.2

P-25 RESIDIA Ebisu

Shibuya-ku, Tokyo

Beneficiary interests
in trust

569

680

1

88.6 17,976

0.1

1100.0 20,246

0.1

P-26 RESIDIA Meguro

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

742

723

1

91.9 19,040

0.1

1

92.1 22,921

0.1

P-29 RESIDIA Hiroo II

Shibuya-ku, Tokyo

Real estate

1,533

2,090

1

97.6 53,049

0.3

195.4 54,159

0.3

P-30 Pianetta Shiodome

Minato-ku, Tokyo

Beneficiary interests
in trust

1,808

2,250

1

97.3 64,658

0.4

194.7 64,206

0.4

P-31

Setagaya-ku, Tokyo

Beneficiary interests
in trust

310

389

1

81.9 10,109

0.1

193.6 10,952

0.1

P-32 RESIDIA Yoyogi

Shibuya-ku, Tokyo

Beneficiary interests
in trust

309

398

1

80.4 10,338

0.1

180.7 10,326

0.1

P-33 RESIDIA Nishi-Shinjuku

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

345

439

1

90.0 11,2500.1

190.0 12,084

0.1

P-34 RESIDIA Kyodo

Setagaya-ku, Tokyo

Beneficiary interests
in trust

267

340

1

91.5

9,665

0.1

1

83.1

8,879

0.1

P-15

RESIDIA Komazawadaigaku

P-35 RESIDIA Oimachi

Shinagawa-ku, Tokyo

Real estate

873

1,120

1

98.0 32,8760.2

198.0 33,196

0.2

P-36 RESIDIA Ebisu II

Shibuya-ku, Tokyo

Real estate

2,222

2,810

1

100.0 72,925

0.5

195.0 71,861

0.5P-37 RESIDIA Kamiochiai

Shinjuku-ku, Tokyo

Real estate

1,100

1,470

1

98.8 42,1230.3

197.6 43,618

0.3

P-38 RESIDIA Higashi-Shinagawa

Shinagawa-ku, Tokyo

Real estate

1,924

2,370

1

95.1 68,2140.4

199.1 69,781

0.4

P-39 RESIDIA Meguro II

Meguro-ku, Tokyo

Real estate

1,145

1,340

1

95.5 37,3190.2

185.8 36,835

0.2

P-40 RESIDIA Toranomon

Minato-ku, Tokyo

Real estate

1,246

1,550

1

98.4 41,8770.3

1100.0 41,776

0.3P-41 RESIDIA Shin-Ochanomizu

Chiyoda-ku, Tokyo

Real estate

1,103

1,500

1

98.4 40,787

0.3

1100.0 41,412

0.3

P-42 RESIDIA Kagurazaka

Shinjuku-ku, Tokyo

Real estate

871

1,070

1

98.2 31,361

0.2

194.5 31,097

0.2

P-43 RESIDIA Oimachi II

Shinagawa-ku, Tokyo

Real estate

994

1,300

1

97.7 35,249

0.2

190.4 35,463

0.2

714th FiscalPeriodReport_EN.indb 7

2017/12/08 11:18

Propertyno.

Name of real estate

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-45 RESIDIA Jiyugaoka

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,031

1,240

1

89.4 32,9580.2

185.6 32,461

0.2

P-47 RESIDIA Suidobashi

Chiyoda-ku, Tokyo

Real estate

2,159

2,710

1

98.6 75,2680.5

1100.0 77,137

0.5

P-48 RESIDIA TOWER Nogizaka

Minato-ku, Tokyo

Real estate

3,442

3,820

1

95.8 104,372

0.7

1

94.1 106,078

0.7

P-49 RESIDIA Akasaka

Minato-ku, Tokyo

Real estate

1,107

1,410

1

95.4 39,850

0.3

1100.0 40,918

0.3

P-50 RESIDIA Nishi-Azabu

Minato-ku, Tokyo

Beneficiary interests
in trust

6,410

7,640

1

95.7 205,705

1.3

197.6 213,820

1.3

P-51

Shibuya-ku, Tokyo

Beneficiary interests
in trust

1,994

2,150

1

92.5 57,932

0.4

192.6 55,228

0.3

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,341

2,960

1

97.3 80,298

0.5

188.3 77,437

0.5

3,596

4,370

1

90.0 111,1100.7

193.0 117,315

0.7

RESIDIA Daikanyama

P-52 RESIDIA Ichigaya
P-53

RESIDIA RoppongiHinokichokoen

Minato-ku, Tokyo

Beneficiary interests
in trust

P-55

RESIDIA TOWER MeguroFudomae

Shinagawa-ku, Tokyo

Real estate

15,091 18,600

1100.0 453,046

2.9

1100.0 455,964

2.9

P-56 RESIDIA Sangenjaya

Setagaya-ku, Tokyo

Real estate

2,542

3,460

1

92.7 87,342

0.6

197.2 88,746

0.6P-58 RESIDIA Minami-Aoyama

Minato-ku, Tokyo

Real estate

701

486

1

72.3 15,3570.1

1100.0 15,791

0.1

P-59 RESIDIA Kanda-Higashi

Chiyoda-ku, Tokyo

Real estate

1,500

2,070

1

100.0 57,863

0.4

191.3 56,806

0.4P-60 RESIDIA Higashi-Azabu

Minato-ku, Tokyo

Real estate

1,348

1,440

1

87.1 38,019

0.2

1100.0 39,242

0.2

P-61 RESIDIA Ebisu-Minami

Shibuya-ku, Tokyo

Real estate

1,945

2,200

1

88.8 57,594

0.4

197.5 58,469

0.4

P-62 RESIDIA TOWER Azabujuban

Minato-ku, Tokyo

Real estate

5,994

6,070

1

96.5 180,825

1.2

194.6 196,088

1.2

P-63 RESIDIA Shibuya

Shibuya-ku, Tokyo

Real estate

1,207

1,540

1

90.9 37,627

0.2

195.4 39,554

0.2

P-64 RESIDIA Nakanobu

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

1,768

2,260

1

92.3 60,686

0.4

198.6 64,187

0.4

P-65 RESIDIA Azabudai

Minato-ku, Tokyo

Beneficiary interests
in trust

1,549

1,760

1

94.3 46,939

0.3

1100.0 49,551

0.3

P-66 RESIDIA Shibadaimon II

Minato-ku, Tokyo

Beneficiary interests
in trust

1,681

1,850

1

95.9 50,995

0.3

193.8 51,595

0.3

P-67 RESIDIA Kanda

Chiyoda-ku, Tokyo

Real estate

1,091

1,440

1

100.0 39,394

0.3

1100.0 40,539

0.3

P-68 RESIDIA Sangenjaya II

Setagaya-ku, Tokyo

Real estate

1,223

1,500

1

93.9 38,553

0.2

194.3 40,366

0.3

P-69 RESIDIA Nishi-Shinjuku II

Shinjuku-ku, Tokyo

Real estate

1,720

2,170

1

97.0 57,882

0.4

196.9 58,543

0.4

P-70 RESIDIA Hiroo-Minami

Shibuya-ku, Tokyo

Real estate

876

1,010

1

100.0 25,1120.2

1100.0 28,531

0.2

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

919

1,080

1

100.0 32,6340.2

1100.0 33,659

0.2

P-73 RESIDIA Shibaura

Minato-ku, Tokyo

Beneficiary interests
in trust

4,420

5,570

1

94.2 166,080

1.1

193.2 163,709

1.0P-74 RESIDIA Gotenyama

Shinagawa-ku, Tokyo

Real estate

884

963

1

89.9 26,505

0.2

194.9 29,018

0.2

P-75 RESIDIA Yutenji

Meguro-ku, Tokyo

Beneficiary interests
in trust

5,063

5,980

1

96.4 155,006

1.0

1100.0 156,387

1.0Minato-ku, Tokyo

Beneficiary interests
in trust

8,967 11,400

198.1 313,996

2.0

195.8 313,834

2.0

P-79 RESIDIA Kamimeguro

Meguro-ku, Tokyo

Beneficiary interests
in trust

852

1,010

1

87.9 28,556

0.2

194.6 29,471

0.2

P-81 Windsor House Hiroo

Shibuya-ku, Tokyo

Real estate andleasehold rights toreal estate

1,641

1,490

1

74.4 41,025

0.3

191.5 44,792

0.3

P-84 RESIDIA Kita-Shinjuku

Shinjuku-ku, Tokyo

Real estate

1,378

1,630

1

96.2 42,378

0.3

188.5 44,645

0.3

P-85 RESIDIA Komazawa

Setagaya-ku, Tokyo

Beneficiary interests
in trust

834

1,230

1

100.0 28,095

0.2

1100.0 28,095

0.2

P-86 RESIDIA Shibaura KAIGAN

Minato-ku, Tokyo

Beneficiary interests
in trust

2,342

2,980

1

98.9 81,4700.5

197.7 82,659

0.5P-87 RESIDIA Ichigaya-Yakuoji

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,005

2,530

1

92.0 63,291

0.4

197.4 65,690

0.4

P-88 RESIDIA Yoga

Setagaya-ku, Tokyo

Real estate

1,556

1,840

1

97.7 46,982

0.3

1

98.7 50,323

0.3

P-89 RESIDIA TOWER Nakameguro

Meguro-ku, Tokyo

Real estate

3,348

4,260

1

100.0 112,9320.7

196.0 114,794

0.7

Shibuya-ku, Tokyo

Beneficiary interests
in trust

3,725

4,590

1

95.8 118,421

0.8

198.6 122,795

0.8P-72 RESIDIA Mejiro-Otomeyama

Park Tower Shibaura Bayward
P-76
Urban Wing

P-90 RESIDIA Sasazuka II

8

14th FiscalPeriodReport_EN.indb 8

2017/12/08 11:18

I. Asset Management Report

Propertyno.

Name of real estate

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

P-91 RESIDIA Meguro III

Meguro-ku, Tokyo

Beneficiary interests
in trust

961

1,300

1

100.0 32,531

0.2

197.5 33,273

0.2

P-92 RESIDIA Jiyugaoka II

Setagaya-ku, Tokyo

Beneficiary interests
in trust

784

960

1

96.7 25,915

0.2

189.3 25,584

0.2

P-93 RESIDIA Kudanshita II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,239

1,670

1

95.1 44,1460.3

197.6 42,863

0.3

P-94 RESIDIA Omori II

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,615

2,120

1

97.1 54,808

0.4

198.0 56,452

0.4

P-95 RESIDIA Shirokane-Takanawa

Minato-ku, Tokyo

Beneficiary interests
in trust

1,480

1,950

1

94.8 48,666

0.3

198.7 49,615

0.3

P-96 RESIDIA Nakaochiai

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

3,790

4,430

1

96.1 117,352

0.8

197.3 119,611

0.8

P-97 RESIDIA Nakameguro II

Meguro-ku, Tokyo

Beneficiary interests
in trust

1,125

1,420

1

95.8 34,2520.2

198.0 36,670

0.2

P-98 Artis Court Minamiaoyama

Minato-ku, Tokyo

Beneficiary interests
in trust

1,736

1,930

1

95.6 53,7660.3

1100.0 53,550

0.3

P-99 RESIDIA Yotsuya Sanchome

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

2,099

2,770

1

98.3 82,800

0.5

197.7 83,180

0.5P-100 RESIDIA Takanawa Katsurazaka

Minato-ku, Tokyo

Beneficiary interests
in trust

948

1,050

1

91.4 27,475

0.2

195.6 28,943

0.2

P-101

Shibuya-ku, Tokyo

Real estate

651

744

1

92.4 19,006

0.1

1100.0 19,524

0.1

723

839

1

97.5 23,3370.2

1100.0 25,298

0.2

RESIDIA Ebisu III

P-102

RESIDIA Shinjukugyoen

Shinjuku-ku, Tokyo

Beneficiary interests
in trust

P-103

RESIDIA Minami Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,208

1,390

1

100.0 36,186

0.2

196.6 36,216

0.2

P-104 Chester Court Ochanomizu

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

3,180

3,790

1

100.0 102,621

0.7

197.8 106,012

0.7

P-105

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

1,308

1,580

1

96.0 40,890

0.3

198.3 42,515

0.3

P-106 RESIDIA Shinagawa

Shinagawa-ku, Tokyo

Beneficiary interests
in trust

1,003

1,190

1

96.5 31,949

0.2

193.1 30,947

0.2

P-107

Shibuya-ku, Tokyo

Real estate

RESIDIA Kanda-Iwamotocho II

RESIDIA Yoyogi II

P-108 RESIDIA Nakanobu II

900

955

1

97.4 24,2620.2

193.0 24,302

0.2

Beneficiary interests
Shinagawa-ku, Tokyo
in trust

946

1,010

1

98.0 27,031

0.2

196.0 26,713

0.2

848

932

1

100.0 23,760

0.2

194.6 25,635

0.2

P-109 RESIDIA Ochanomizu II

Chiyoda-ku, Tokyo

Beneficiary interests
in trust

P-110

RESIDIA Mishuku

Setagaya-ku, Tokyo

Beneficiary interests
in trust

1,197

1,300

1

100.0 21,245

0.1

193.7 35,014

0.2

C-1

RESIDIA Mitsukoshimae

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,581

2,530

1

100.0 68,746

0.4

1100.0 70,168

0.4

2,133

3,550

1

98.3 98,502

0.6

197.3 106,457

0.7

C-2

RESIDIA Kamata

Ota-ku, Tokyo

Beneficiary interests
in trust

C-3

RESIDIA Ikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

1,400

1,790

1

100.0 49,902

0.3

195.2 50,785

0.3

C-4

RESIDIA Bunkyo-Hongo

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,562

2,200

1

100.0 57,1310.4

1100.0 57,439

0.4

939

1,410

1

93.9 37,411

0.2

197.0 39,711

0.2

C-5

RESIDIA Asakusabashi

Taito-ku, Tokyo

Beneficiary interests
in trust

C-6

Maison Eclairee Ekoda

Nerima-ku, Tokyo

Beneficiary interests
in trust

914

1,100

1

98.9 36,1220.2

190.5 36,451

0.2

Taito-ku, Tokyo

Beneficiary interests
in trust

2,870

3,730

1

97.1 99,1430.6

192.6 98,607

0.6

1,544

1,920

1

96.7 48,901

0.3

197.8 50,310

0.3

C-7

RESIDIA Ueno-Okachimachi

C-8

RESIDIA Bunkyo-Hongo II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

C-9

RESIDIA Ryogoku

Sumida-ku, Tokyo

Beneficiary interests
in trust

852

1,200

1

98.5 32,7190.2

1100.0 33,145

0.2

Chuo-ku, Tokyo

Beneficiary interests
in trust

5,046

5,590

1

90.9 145,896

0.9

196.4 147,118

0.9

C-10 RESIDIA Higashi-Ginza
C-12

RESIDIA Nihonbashi-NingyochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,973

3,770

1

98.7 99,406

0.6

199.4 107,559

0.7

C-13

RESIDIA Omori-Higashi

Ota-ku, Tokyo

Beneficiary interests
in trust

1,845

2,030

1

93.7 55,659

0.4

195.7 56,633

0.4

C-15

RESIDIA Kinshicho

Sumida-ku, Tokyo

Beneficiary interests
in trust

4,022

4,580

1

99.5 122,055

0.8

199.1 120,964

0.8

Taito-ku, Tokyo

Beneficiary interests
in trust

818

919

1

96.5 27,817

0.2

196.4 27,270

0.2

C-16 RESIDIA Negishi

9

14th FiscalPeriodReport_EN.indb 9

2017/12/08 11:18

Propertyno.

Name of real estate

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2RESIDIA Shinkawa

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,816

2,330

1

95.9 64,883

0.4

196.2 65,088

0.4

C-18 RESIDIA Kamiikebukuro

Toshima-ku, Tokyo

Beneficiary interests
in trust

545

714

1

93.7 21,035

0.1

197.9 22,067

0.1

C-19 RESIDIA Shin-nakano

Nakano-ku, Tokyo

Beneficiary interests
in trust

355

509

1

96.6 14,589

0.1

183.4 14,976

0.1

C-21

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

928

1,220

1

95.5 32,908

0.2

194.5 34,775

0.2

C-17

RESIDIA Bunkyo-Yushima II

C-22 RESIDIA Tsukiji

Chuo-ku, Tokyo

Real estate

1,332

1,850

1

91.3 49,096

0.3

1100.0 52,481

0.3

Beneficiary interests
in trust

1,800

2,140

1

93.1 60,889

0.4

198.2 62,454

0.4

C-23 RESIDIA Sasazuka

Suginami-ku, Tokyo

C-24 RESIDIA Kyobashi

Chuo-ku, Tokyo

Real estate

1,126

1,480

1

100.0 38,847

0.3

1100.0 38,847

0.2

C-25 RESIDIA Tamagawa

Ota-ku, Tokyo

Beneficiary interests
in trust

1,182

1,620

1

96.9 47,896

0.3

198.0 47,285

0.3

C-26 RESIDIA Korakuen

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

551

760

1

100.0 21,2900.1

196.7 21,444

0.1

C-27 RESIDIA Ginza-Higashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,844

2,460

1

99.2 68,927

0.4

197.3 67,784

0.4

C-28 RESIDIA Oji

Kita-ku, Tokyo

Beneficiary interests
in trust

797

1,040

1

100.0 33,7170.2

1100.0 33,709

0.2

C-29 RESIDIA Mejiro II

Toshima-ku, Tokyo

Real estate

980

1,230

1

98.0 36,1430.2

197.1 36,374

0.2

C-31

RESIDIA Tsukishima

Chuo-ku, Tokyo

Real estate

1,022

1,270

1

95.0 36,875

0.2

194.9 35,828

0.2

C-32 RESIDIA Kamata II

Ota-ku, Tokyo

Real estate

1,278

1,610

1

93.0 44,739

0.3

197.7 47,114

0.3

C-33 RESIDIA Tsukishima II

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,303

2,940

1

95.5 79,635

0.5

197.4 81,413

0.5

C-34 RESIDIA Kinshicho II

Sumida-ku, Tokyo

Real estate

2,245

2,640

1

94.9 73,053

0.5

195.5 72,959

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

3,165

4,030

1

90.3 106,223

0.7

190.0 113,044

0.7

C-36 RESIDIA Bunkyo-Sengoku

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

637

872

1

100.0 25,716

0.2

194.3 26,080

0.2

C-37 RESIDIA Bunkyo-Yushima

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

956

1,310

1

95.0 35,974

0.2

1

98.1 38,750

0.2

C-38 RESIDIA Ikegami

Ota-ku, Tokyo

Beneficiary interests
in trust

347

413

1

90.7 13,506

0.1

1100.0 13,516

0.1

C-39 RESIDIA Nihonbashi-Ningyocho

Chuo-ku, Tokyo

Beneficiary interests
in trust

504

762

1

100.0 21,755

0.1

191.6 21,171

0.1

C-40 RESIDIA Bunkyo-Sengoku II

Bunkyo-ku, Tokyo

Real estate

1,353

1,640

1

95.8 44,761

0.3

194.8 47,598

0.3

C-41 RESIDIA Iriya

Taito-ku, Tokyo

Beneficiary interests
in trust

885

1,140

1

96.0 35,921

0.2

198.3 37,853

0.2

C-42 RESIDIA Nihonbashi-Hamacho

Chuo-ku, Tokyo

Real estate

1,252

1,580

1

93.3 43,387

0.3

197.7 43,662

0.3

C-43 RESIDIA Shin-Okachimachi

Taito-ku, Tokyo

Real estate

1,762

2,110

1

98.7 57,578

0.4

1100.0 58,105

0.4

C-44 RESIDIA Chidoricho

Ota-ku, Tokyo

Real estate

1,210

1,450

1

91.6 41,490

0.3

191.7 41,726

0.3

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,202

1,540

1

100.0 42,630

0.3

196.4 44,757

0.3

C-46 RESIDIA Mejiro

Toshima-ku, Tokyo

Beneficiary interests
in trust

6,136

7,730

1

96.6 223,024

1.4

196.9 226,269

1.4

C-47 RESIDIA Kasai

Edogawa-ku, Tokyo

Beneficiary interests
in trust

666

818

1

93.4 26,443

0.2

1

93.1 27,224

0.2

C-48 RESIDIA Nihonbashi-Bakurocho

Chuo-ku, Tokyo

C-35 RESIDIA Bunkyo-Otowa

C-45 RESIDIA Shinkawa II

Real estate

5,121

7,060

1

96.0 193,331

1.2

197.0 192,492

1.2

3,644

5,430

1

92.3 147,255

0.9

195.7 150,725

0.9

C-49 RESIDIA Suginami-Honancho

Suginami-ku, Tokyo

Beneficiary interests
in trust

C-50 RESIDIA Shin-Itabashi

Itabashi-ku, Tokyo

Beneficiary interests
in trust

854

1,220

1

100.0 29,739

0.2

1100.0 29,739

0.2

Koto-ku, Tokyo

Beneficiary interests
in trust

1,905

2,930

1

98.7 79,778

0.5

198.7 79,844

0.5

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,097

1,510

1

100.0 38,051

0.2

1100.0 42,881

0.3

RESIDIA BunkyoHonkomagome

Bunkyo-ku, Tokyo

Real estate

2,296

2,950

1

99.2 83,236

0.5

196.8 81,009

0.5

C-54 RESIDIA Tsukishima III

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,487

3,590

1

97.3 91,541

0.6

197.9 92,838

0.6

C-51

RESIDIA Kiba

C-52 RESIDIA Bunkyo-Yushima III
C-53

10

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I. Asset Management Report

Propertyno.

Name of real estate

Location

C-55 RESIDIA Minami-senjyu

Arakawa-ku, Tokyo

C-56 RESIDIA Ogikubo

Suginami-ku, Tokyo

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2
Beneficiary interests
in trust

2,458

3,530

1

98.1 162,511

1.0

198.9 168,527

1.1

Real estate

1,767

2,220

1

95.9 60,867

0.4

1

98.1 64,444

0.4

974

1,280

1

98.5 35,678

0.2

1

94.1 38,665

0.2

C-57 RESIDIA Monzennakacho

Koto-ku, Tokyo

Beneficiary interests
in trust

C-58 RESIDIA Ochanomizu

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,052

2,850

1

97.8 76,435

0.5

196.2 75,793

0.5

C-59 RESIDIA Omori

Ota-ku, Tokyo

Beneficiary interests
in trust

1,130

1,480

1

96.1 41,853

0.3

198.7 41,838

0.3

C-60 RESIDIA Nakamurabashi

Nerima-ku, Tokyo

Beneficiary interests
in trust

1,046

1,340

1

94.6 38,057

0.2

198.7 38,742

0.2

C-61 RESIDIA Kachidoki

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,765

2,420

1

95.4 65,308

0.4

192.8 65,158

0.4

C-62 RESIDIA Bunkyo-Otowa II

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

2,293

2,960

1

96.3 80,105

0.5

198.3 82,775

0.5

C-63 RESIDIA Kinshicho III

Koto-ku, Tokyo

Beneficiary interests
in trust

655

818

1

100.0 25,4140.2

1100.0 25,484

0.2

C-64 RESIDIA Kamata III

Ota-ku, Tokyo

Beneficiary interests
in trust

937

1,210

1

95.6 31,560

0.2

1100.0 34,403

0.2

8,049 11,400

197.0 710,154

4.6

1

98.0 719,010

4.5

C-65 RESIDIA TOWER Kamiikebukuro Toshima-ku, Tokyo
C-66 RESIDIA Takashimadaira

Itabashi-ku, Tokyo

C-67 RESIDIA Shimura-Sakaue

Beneficiary interests
in trust
Real estate

526

618

1

100.0 16,1950.1

1100.0 16,193

0.1

Itabashi-ku, Tokyo

Real estate

609

700

1

100.0 18,084

0.1

1100.0 18,084

0.1

C-68 RESIDIA Shimura-Sakaue II

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,134

1,360

1

100.0 35,3810.2

1100.0 35,377

0.2

C-69 RESIDIA Shimura-Sakaue III

Itabashi-ku, Tokyo

Real estate

433

502

1

100.0 13,6080.1

1100.0 13,608

0.1

C-70 RESIDIA Ikebukuro West

Itabashi-ku, Tokyo

Beneficiary interests
in trust

1,120

1,350

1

87.8 40,927

0.3

194.3 41,687

0.3

C-71

Koto-ku, Tokyo

Beneficiary interests
in trust

1,286

1,570

1

96.6 43,439

0.3

1100.0 44,047

0.3

Arakawa-ku, Tokyo

Beneficiary interests
in trust

1,192

1,300

1

97.7 41,1590.3

1100.0 41,354

0.3

C-73 RESIDIA Ueno-Ikenohata

Taito-ku, Tokyo

Beneficiary interests
in trust

1,784

1,940

1

100.0 51,158

0.3

198.8 53,941

0.3

C-74 RESIDIA Nerima

Nerima-ku, Tokyo

Beneficiary interests
in trust

517

632

1

100.0 18,060

0.1

1100.0 18,225

0.1

C-75 RESIDIA Higashi-Nihonbashi

Chuo-ku, Tokyo

Beneficiary interests
in trust

400

468

1

100.0 14,606

0.1

1100.0 15,150

0.1

C-76 RESIDIA Nakano

Nakano-ku, Tokyo

Real estate

694

779

1

100.0 21,2960.1

1100.0 22,222

0.1

C-77 RESIDIA Ogikubo II

Suginami-ku, Tokyo

Real estate

491

540

1

100.0 13,620

0.1

1100.0 13,620

0.1

1,364

1,520

1

98.7 43,769

0.3

192.5 43,887

0.3

RESIDIA Ojima

C-72 RESIDIA Machiya

C-78 RESIDIA Minamiyukigaya

Ota-ku, Tokyo

Beneficiary interests
in trust

C-79 RESIDIA Akihabara

Taito-ku, Tokyo

Beneficiary interests
in trust

1,002

1,160

1

97.0 33,032

0.2

195.2 33,462

0.2

C-80 RESIDIA Asakusa-Azumabashi

Sumida-ku, Tokyo

Beneficiary interests
in trust

899

1,120

1

95.0 31,403

0.2

198.3 32,572

0.2

C-81 RESIDIA Omori III

Ota-ku, Tokyo

Beneficiary interests
in trust

1,427

1,640

1

96.0 40,825

0.3

196.2 42,801

0.3

C-82

RESIDIA Nihonbashi-BakurochoII

Chuo-ku, Tokyo

Beneficiary interests
in trust

2,024

2,410

1

99.0 60,065

0.4

1

94.2 60,326

0.4

C-83

RESIDIA Nihonbashi-BakurochoIII

Chuo-ku, Tokyo

Beneficiary interests
in trust

1,880

2,240

1

91.7 58,653

0.4

195.8 64,557

0.4

C-84 RESIDIA Bunkyo-Hongo III

Bunkyo-ku, Tokyo

Beneficiary interests
in trust

1,703

1,870

1

94.5 50,383

0.3

198.4 48,926

0.3

C-85 RESIDIA Shin-Okachimachi II

Taito-ku, Tokyo

Beneficiary interests
in trust

4,799

5,290

1

95.8 138,785

0.9

199.2 141,179

0.9

C-86 RESIDIA Kameido

Koto-ku, Tokyo

Beneficiary interests
in trust

3,095

3,280

–

–

–

–

1

96.3 47,062

0.3

C-87 RESIDIA Koenji

Suginami-ku, Tokyo

Beneficiary interests
in trust

1,433

1,520

–

–

–

–

1

90.2 24,647

0.2

S-2

Kawaguchi-shi,
Saitama

Beneficiary interests
in trust

706

745

1

97.5 28,618

0.2

197.4 28,329

0.2

Chester House Kawaguchi

11

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Propertyno.

Name of real estate

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

S-4

RESIDIA Higashi-Matsudo

Matsudo-shi, Chiba

Beneficiary interests
in trust

1,029

1,190

1

97.7 42,621

0.3

195.4 42,534

0.3

S-5

RESIDIA Shin-Yokohama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,778

1,990

1

100.0 61,1290.4

1100.0 61,359

0.4

S-7

RESIDIA Chofu

Chofu-shi, Tokyo

Beneficiary interests
in trust

1,076

1,180

1

100.0 33,1230.2

197.8 34,910

0.2

677

755

1

100.0 26,182

0.2

1100.0 26,182

0.2

S-11

Tokyo Student-House WAKO

Wako-shi, Saitama

Beneficiary interests
in trust

S-12

RESIDIA Kokubunji

Kokubunji-shi, Tokyo

Beneficiary interests
in trust

505

608

1

94.1 18,496

0.1

196.8 20,661

0.1

S-14

RESIDIA Yokohama-Kannai

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,530

1,880

1

95.0 54,563

0.4

1

94.1 54,320

0.3

S-15

RESIDIA Okurayama

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

715

914

1

100.0 27,9990.2

1100.0 26,887

0.2

S-16 RESIDIA Musashikosugi

Kawasaki-shi,
Kanagawa

Real estate

1,493

1,950

1

94.5 56,953

0.4

197.0 57,960

0.4

Funabashi-shi, Chiba

Beneficiary interests
in trust

2,547

3,090

1

100.0 93,859

0.6

1100.0 93,661

0.6

Musashino-shi,Tokyo

Beneficiary interests
in trust

1,430

1,640

1

95.9 48,606

0.3

195.9 48,771

0.3

Pacific Royal Court
Minatomirai Ocean Tower

Yokohama-shi,
Kanagawa

Real estate andleasehold rights toreal estate

11,850 16,100

1100.0 570,757

3.7

1100.0 574,910

3.6

S-22 Life & Senior House Kohoku II

Yokohama-shi,
Kanagawa

Real estate

1,568

2,190

1

100.0 70,704

0.5

1100.0 71,306

0.4

S-23 College Court Tanashi

Nishi-Tokyo-shi,Tokyo

Beneficiary interests
in trust

770

1,130

1

100.0 32,7600.2

1100.0 32,760

0.2

Urayasu-shi, Chiba

Beneficiary interests
in trust

2,085

2,870

1

94.3 82,7540.5

197.7 85,767

0.5

S-25 RESIDIA Minami-Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

823

1,030

1

92.9 34,796

0.2

195.3 36,457

0.2

S-26 RESIDIA Urayasu II

Urayasu-shi, Chiba

Beneficiary interests
in trust

804

997

1

95.9 31,832

0.2

197.3 33,167

0.2

S-27 RESIDIA Gyotoku

Ichikawa-shi, Chiba

Beneficiary interests
in trust

760

938

1

96.0 33,248

0.2

197.3 36,720

0.2

S-28 RESIDIA Kawasaki

Kawasaki-shi,
Kanagawa

Beneficiary interests
in trust

1,630

2,120

1

95.7 60,200

0.4

1

99.1 63,699

0.4

S-29 Cocofump Hiyoshi

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

1,012

1,210

1

100.0 45,0000.3

1100.0 45,000

0.3

S-30 RESIDIA Sagamihara

Sagamihara-shi,
Kanagawa

Beneficiary interests
in trust

1,073

1,250

1

100.0 43,6820.3

1100.0 43,607

0.3

S-31

Yokohama-shi,
Kanagawa

Beneficiary interests
in trust

786

1,140

1

100.0 33,675

0.2

1100.0 37,588

0.2Real estate

647

696

1

96.2 23,6140.2

1100.0 24,555

0.2

S-17

RESIDIA Funabashi I
RESIDIA Funabashi II

S-19 RESIDIA Kichijoji
S-20

S-24 RESIDIA Urayasu

RESIDIA Yokohama-Bashamichi

S-32 RESIDIA Hon-Atsugi

Atsugi-shi,
Kanagawa

S-33 RESIDIA Funabashi III

Funabashi-shi, Chiba

Real estate

670

691

1

100.0 23,2770.2

1100.0 20,127

0.1

1,491

1,660

1

100.0 61,041

0.4

1100.0 60,491

0.4

R-2

RESIDIA Imadegawa

Kyoto-shi, Kyoto

Beneficiary interests
in trust

R-4

RESIDIA Higashizakura

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,043

1,430

1

93.5 46,625

0.3

190.3 45,248

0.3

R-5

RESIDIA Kameyama

Kameyama-shi, Mie

Beneficiary interests
in trust

1,534

1,150

1

100.0 61,0960.4

1100.0 60,476

0.4

893

925

1

98.1 29,771

0.2

192.3 30,700

0.2

R-6

RESIDIA Ryokuchikoen

Toyonaka-shi, Osaka

Beneficiary interests
in trust

R-8

RESIDIA Kobe Port Island

Kobe-shi, Hyogo

Beneficiary interests
in trust

3,449

4,150

1

100.0 125,5560.8

1100.0 125,500

0.8Real estate

1,235

1,440

1

96.3 50,341

0.3

199.4 52,296

0.3

197.5 36,5280.2

188.9 34,727

0.2

R-10 RESIDIA Hakata

Fukuoka-shi,
Fukuoka

R-11

RESIDIA Tenjinbashi

Osaka-shi, Osaka

Beneficiary interests
in trust

851

1,140

R-12 RESIDIA Sannomiya-Higashi

Kobe-shi, Hyogo

Real estate

1,966

2,770

1

93.9 87,043

0.6

198.5 90,730

0.6

R-13 KC21 Building

Sendai-shi, Miyagi

Real estate

877

916

1

96.2 36,721

0.2

199.0 38,515

0.2

12

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2017/12/08 11:18

I. Asset Management Report

Propertyno.

Name of real estate

R-14 RESIDIA Utsubokoen

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

Osaka-shi, Osaka

Real estate

1,053

1,460

1

94.5 46,373

0.3

196.9 47,611

0.3

R-15 RESIDIA Kyoto-ekimae

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,789

2,450

1

98.0 77,595

0.5

195.5 77,721

0.5

R-16 RESIDIA Takaoka

Nagoya-shi, Aichi

Real estate

2,155

3,040

1

95.2 97,768

0.6

1

96.1 98,419

0.6

R-17 RESIDIA Hibino

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,151

1,420

1

96.8 66,420

0.4

198.5 66,466

0.4

R-19 RESIDIA Tenjin-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

838

1,180

1

94.6 37,719

0.2

196.4 39,516

0.2

R-20 RESIDIA Hakataeki-Minami

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

322

394

1

97.4 15,509

0.1

193.9 15,820

0.1

R-21 RESIDIA Hisaya-Oodori II

Nagoya-shi, Aichi

Real estate

610

796

1

92.6 25,989

0.2

1100.0 27,254

0.2

R-24 RESIDIA Minami-Ichijo

Sapporo-shi,
Hokkaido

Real estate

1,473

1,920

1

99.3 75,953

0.5

198.9 75,961

0.5

R-25 RESIDIA Odori-Nishi

Sapporo-shi,
Hokkaido

Real estate

1,208

1,370

1

97.5 56,819

0.4

192.2 57,832

0.4

R-26 RESIDIA Kita-Sanjo

Sapporo-shi,
Hokkaido

Real estate

1,007

1,380

1

100.0 50,828

0.3

196.9 50,267

0.3

R-27 RESIDIA Shirakabe-Higashi

Nagoya-shi, Aichi

Real estate

760

906

1

96.5 32,1150.2

197.0 32,759

0.2

R-29 RESIDIA Uzumasa

Kyoto-shi, Kyoto

Real estate

650

757

1

89.7 32,579

0.2

1

96.1 32,846

0.2

R-30 RESIDIA Izumi

Nagoya-shi, Aichi

Real estate

3,347

4,240

1

98.3 146,695

0.9

190.7 142,556

0.9

R-31 RESIDIA Maruyama Kita-Gojo

Sapporo-shi,
Hokkaido

Real estate

956

1,200

1

94.5 43,860

0.3

192.4 44,938

0.3

R-32 RESIDIA Tokugawa

Nagoya-shi, Aichi

Real estate

721

850

1

100.0 29,449

0.2

1100.0 30,026

0.2

R-34 RESIDIA Odori-Koen

Sapporo-shi,
Hokkaido

Real estate

1,844

2,460

1

96.9 93,033

0.6

196.7 94,894

0.6

R-35 RESIDIA Tanimachi

Osaka-shi, Osaka

Real estate

1,102

1,610

1

96.2 46,862

0.3

1

98.1 47,754

0.3

R-36 RESIDIA Hisaya-Oodori

Nagoya-shi, Aichi

Beneficiary interests
in trust

637

933

1

90.0 28,479

0.2

195.2 29,760

0.2

R-37 RESIDIA Sendai-Miyamachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

509

737

1

100.0 23,9140.2

1100.0 25,951

0.2

R-38 RESIDIA Hirosedori

Sendai-shi, Miyagi

Beneficiary interests
in trust

478

668

1

100.0 21,8420.1

1100.0 21,839

0.1

R-39 RESIDIA Edobori

Osaka-shi, Osaka

Real estate

1,404

1,850

1

93.0 57,739

0.4

194.6 59,108

0.4

R-40 RESIDIA Kyomachibori

Osaka-shi, Osaka

Real estate

1,008

1,350

1

94.5 42,041

0.3

198.7 43,499

0.3

R-41 RESIDIA Esaka

Suita-shi, Osaka

Beneficiary interests
in trust

971

1,250

1

96.5 38,866

0.3

192.7 39,488

0.2

R-42 RESIDIA Nishijin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

2,288

3,080

1

98.0 104,660

0.7

1

97.1 106,754

0.7

R-43 RESIDIA Tsurumai

Nagoya-shi, Aichi

Beneficiary interests
in trust

1,165

1,650

1

93.8 55,200

0.4

196.1 56,190

0.4

R-44 RESIDIA Kobe-Isogami

Kobe-shi, Hyogo

Beneficiary interests
in trust

2,636

3,730

1

91.9 117,048

0.8

192.2 116,919

0.7

R-45 RESIDIA Kita-Nijyo-East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

874

1,070

1

98.3 42,4960.3

1100.0 42,754

0.3

R-46 RESIDIA Shinsaibashi West

Osaka-shi, Osaka

Beneficiary interests
in trust

1,897

2,410

1

93.2 71,1630.5

192.7 73,484

0.5

R-47 RESIDIA Marunouchi

Nagoya-shi, Aichi

Beneficiary interests
in trust

959

1,200

1

90.8 40,402

0.3

194.2 39,938

0.3

R-48 RESIDIA Sapporo-Ekimae

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,451

2,110

1

100.0 75,772

0.5

196.2 75,868

0.5

Kyoto-shi, Kyoto

Beneficiary interests
in trust

1,212

1,550

1

97.3 46,976

0.3

190.1 47,383

0.3

R-50 RESIDIA Rakuhoku

Kyoto-shi, Kyoto

Beneficiary interests
in trust

865

1,010

1

96.7 34,1520.2

195.0 36,123

0.2

R-51 RESIDIA Miyakojima I & II

Osaka-shi, Osaka

Real estate

3,270

4,750

1

97.1 152,4801.0

196.2 152,592

1.0

R-52 RESIDIA TOWER Sendai

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,753

2,040

1

96.0 68,738

0.4

195.7 71,710

0.5

R-53 RESIDIA Higashizakura II

Nagoya-shi, Aichi

Beneficiary interests
in trust

2,859

3,700

1

92.8 123,352

0.8

191.2 122,000

0.8

R-49 RESIDIA Gosho-Higashi

13

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Propertyno.

Name of real estate

Location

13th (Aug 1, 2016 ~ Jan. 31, 2017)
14th (Feb. 1, 2017 ~ Jul. 31, 2017)
Appraisal Total number
Total
numberBook value
RentalOccupancy
Rentalvalue at end of tenants Occupancy
Percentage of tenants
Percentage
at end ofType ofof period at end of rate at end of revenue of total rent at end of rate at end of revenue of total rent
periodownership
period(thousandperiod(thousand(million yen) period
revenueperiodrevenue(million yen)
(%)
yen)
(%)
yen)
Note 1(tenants)(%)(tenants)(%)
Note 3Note 4Note 3Note 4Note 2
Note 2

R-54 RESIDIA Tsutsujigaoka

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,779

2,410

1

94.7 81,549

0.5

197.8 85,561

0.5

R-55 RESIDIA Kobe-Motomachi

Kobe-shi, Hyogo

Beneficiary interests
in trust

1,050

1,350

1

92.0 42,1930.3

192.9 42,470

0.3

R-56 RESIDIA Sendai-Honcho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,112

1,620

1

97.1 53,268

0.3

198.3 53,585

0.3

R-57 RESIDIA Sendai-Haranomachi

Sendai-shi, Miyagi

Beneficiary interests
in trust

587

874

1

90.5 29,713

0.2

198.8 31,215

0.2

R-58 RESIDIA Minami-Ichijo East

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

1,063

1,360

1

97.9 48,277

0.3

1100.0 48,573

0.3

R-59 RESIDIA Shin-Osaka

Osaka-shi, Osaka

Beneficiary interests
in trust

2,785

3,500

1

100.0 90,349

0.6

1100.0 90,377

0.6

R-60 RESIDIA Okayama-Ekimae

Okayama-shi,
Okayama

Beneficiary interests
in trust

855

992

1

100.0 35,2380.2

1100.0 35,224

0.2

R-61 RESIDIA Kyoto Okazaki

Kyoto-shi, Kyoto

Beneficiary interests
in trust

237

306

1

100.0

9,782

0.1

1

100.0

9,770

0.1

R-62 RESIDIA Sendai-Ichibancho

Sendai-shi, Miyagi

Beneficiary interests
in trust

1,107

1,400

1

100.0 43,8840.3

1100.0 43,840

0.3

R-63 RESIDIA Kita-Nijyo-East II

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

555

739

1

93.2 25,4940.2

194.0 26,170

0.2

R-64 RESIDIA Takamiya

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

502

581

1

100.0 19,757

0.1

189.1 19,135

0.1

R-65 RESIDIA Soen

Sapporo-shi,
Hokkaido

Beneficiary interests
in trust

398

541

1

96.7 20,735

0.1

1

98.3 21,230

0.1

R-66 RESIDIA Tenjin

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,146

1,310

1

94.3 40,610

0.3

193.2 41,162

0.3

R-67 RESIDIA Yakuin-Oodori

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,145

1,320

1

100.0 41,618

0.3

196.7 42,449

0.3

R-68 RESIDIA Hakata II

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

1,385

1,570

1

99.3 48,969

0.3

199.3 49,938

0.3

R-69 RESIDIA Kego

Fukuoka-shi,
Fukuoka

Beneficiary interests
in trust

858

1,110

1

97.9 35,446

0.2

198.7 36,022

0.2

R-70 RESIDIA Shirakabe

Nagoya-shi, Aichi

Beneficiary interests
in trust

958

1,100

1

96.3 35,402

0.2

193.6 35,491

0.2

R-71 RESIDIA Sakae

Nagoya-shi, Aichi

Real estate

947

960

1

90.9 28,198

0.2

189.6 29,161

0.2

R-72 RESIDIA Senri-Fujishirodai

Suita-shi, Osaka

Beneficiary interests
in trust

1,552

1,590

–

–

–

1

100.0 16,719

0.1

R-73 RESIDIA Senri-Banpakukoen

Suita-shi, Osaka

Beneficiary interests
in trust

2,273

2,320

1

100.0 22,1160.1

1100.0 64,225

0.4

424,712 531,174257

96.6 15,504,314

100.0

260

96.9 15,918,444

100.0

Total

–

Notes 1. “Appraisal value at end of period” is the appraisal value or survey-based value, pursuant to ADR’s Articles of Incorporation and the “Regulations Concerning Accounting ofInvestment Corporations” issued by the Cabinet Office, provided by a real estate appraiser as of July 31, 2017.
2. “Total number of tenants,” is counted as “1” if the property is leased under a master lease agreement to a master lessee.
		 Because all properties held by ADR as of July 31, 2017 are leased under a master lease agreement, the “Total” for the “Total number of tenants” column indicates the total numberof master lease agreements, which were concluded with 13 master lessees.
3. “Occupancy rate” is calculated using the formula: “Leased floor area” ÷ “Leasable floor area” × 100.
4. “Rental revenue” is the rental revenue of respective real estate for the fiscal period under review.

14

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

Payment for
Cumulative
the current
amount paid
periodPurposeEstimated duration

RESIDIA TOWER Azabujuban(Minato-ku, Tokyo)

Major repair work

From: Jun. 2016
To: Jan. 2018

182

18

18

RESIDIA Ogikubo(Suginami-ku, Tokyo)

Major repair work

From: Feb. 2017
To: Oct. 2017

60

10

10

RESIDIA Esaka(Suita-shi, Osaka)

Major repair work

From: Jul. 2017
To: Jan. 2018

50

–

–

RESIDIA Bunkyo-Yushima(Bunkyo-ku, Tokyo)

Major repair work

From: Apr. 2017
To: Dec. 2017

47

–

–

RESIDIA Mejiro(Toshima-ku, Tokyo)

Renovation work on
individual units

From: Jul. 2017
To: Jan. 2018

24

–

–

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
capitalexpenditures during this fiscal period were 499 million yen for the entire portfolio and, when combined with repairs
and maintenance cost of 560 million yen, the cost of construction work totals 1,059 million yen.
(million yen)
Name of real estate(Location)

Purpose

Implementation period

Amount paid

RESIDIA Shinkawa(Chuo-ku, Tokyo)

Major repair work

From: Mar. 2017
To: Jul. 2017

53

RESIDIA Jiyugaoka(Meguro-ku, Tokyo)

Major repair work

From: Jan. 2017
To: Apr. 2017

49

RESIDIA Setagaya-Tsurumaki(Setagaya-ku, Tokyo)

Major repair work

From: Dec. 2016
To: Apr. 201741

Other real estate

Renovations
Total

354
499

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

15

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

10th FP

11th FP

12th FP

13th FP

14th FP

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

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

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

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

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

Balance of reserves at
beginning of period

1,614

1,423

1,658

1,970

2,144

Amount of reserves
during period

534

584

605

625

696

Reversal of reserves
during period

725

349

292

451

801

1,423

1,658

1,970

2,144

2,040

Amount carried forward
to next period

Acquisitions and Disposals in the 14th Fiscal Period
1 Acquisitions and Disposals of Real Estate and Asset-Backed Securities
Acquisition

Disposition

Propertyno.

Name of real estate

Acquisitiondate

Acquisition
Price Note
(million yen)

R-72

RESIDIA Senri-FujishirodaiMar. 29, 2017

1,430

C-86

RESIDIA Kameido

Apr. 18, 2017

C-87

RESIDIA Koenji

Apr. 18, 2017
Total

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

Gain (Loss)on sales(million yen)

–

–

–

–

2,988

–

–

–

–

1,380

–

–

–

–

5,798

–

–

–

–

Disposition
date

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

2 Transactions with Interested Parties
1) Transactions
The following are the transactions with interested parties for specified assets in the 14th fiscal period.
Purchase/Sales amountClassification
Total amount (14th FP)

Purchase amount

Sales amount

5,798,000 thousand yen- thousand yen

Breakdown of transaction with interested parties
ITOCHU Corporation

4,368,000 thousand yen / 75.3%- thousand yen / -%16

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2) Amount of Commission Fees Paid
The following are the commission fees paid to interested parties in the 14th Fiscal Period.

Classification

Property management fees

Total amount ofcommission fees(A)(thousand yen)

Breakdown of transaction with interested parties
Payee

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

1,417,990

ITOCHU Urban Community Ltd.

875,898

61.8

Other rental expenses

104,875

ITOCHU Urban Community Ltd.

63,36460.4

Advertising expenses

3,656

ITOCHU Urban Community Ltd.

2,456

67.2

ITOCHU Urban Community Ltd.

19,349

13.5

93

0.1

Other fees

143,664

ITOCHU Human Resources & General
Affairs Services Inc.

Notes 1. Transactions are not disclosed if the nominal counter party is an interested party but the actual counter party is clearly a third party.
2.	ITOCHU Corporation, ITOCHU Urban Community Ltd. and ITOCHU Human Resources & General Affairs Services Inc. are interested parties of the asset management company thathave signed an asset management agreement with ADR as stipulated in Article 201, Paragraph 1 of the Act on Investment Trusts and Investment Corporations and Article 123 of
the Enforcement Order thereof, with which ADR engaged in transactions in the 14th Fiscal Period.

17

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18

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

AssetsCurrent assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment (Notes 14, 18, 19, and 24)
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets (Note 24)
Leasehold rights (Note 19)
Leasehold rights in trust (Note 19)
Other
Total intangible assets

As of July 31, 2017

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

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

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

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

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

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

19

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(Thousands of yen)
As of January 31, 2017

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

As of July 31, 2017796,418
523,518
1,026,585
1,632
2,348,154
423,066,035

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

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

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

324,578

298,506

12,000,000

8,000,000

22,956,329

25,446,329

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

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

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

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

127,690,098

127,690,098

53,220,279

53,220,279

33,552,162
33,552,162
6,371,523
93,143,965
220,834,064
220,834,064
450,967,784

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

20

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II. Financial Statements
Statements of Income

Operating revenue (Note 18)
Rental revenue – real estate (Notes 5 and 9)
Total operating revenue
Operating expenses
Expenses related to rent business (Notes 5 and 9)
Asset management fees (Note 14)
Asset custody fees
Administrative service fees
Directors’ compensation
Taxes and dues
Bad debt expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Compensation income
Reversal of distribution payable
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expense (Notes 10, 12 and 23)
Interest expense on investment corporation bonds
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance
costs
Other offering costs associated with issuance ofinvestment units
Borrowing-related expenses
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current (Note 15)
Total income taxes
Net income (Note 20)
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)(Thousands of yen)
For the six months ended
January 31, 2017

For the six months ended
July 31, 201715,504,314
15,504,314

15,918,444
15,918,444

6,045,529
1,136,067
9,745
60,534
3,600
257,48626
189,733
7,702,724
7,801,590

6,275,634
1,152,793
9,751
59,3183,600
265,817

7,208
9,691
3,494
362
2
20,760

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

998,854
187,808
2,516

930,276
163,328
1,388

14,764

13,83923,071-

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

225,0939,214
1,343,141
6,642,774
6,642,774
605
605
6,642,169
6,642,169

291

6,371,523

408

182,187
7,949,510
7,968,934

21

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

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

Paid-in
capitalBalance at the
beginning of period

Capitalsurplus114,936,698

53,220,279

Reserve fordividends

Reserve fortemporarydifference
adjustments

33,552,162-

Unappropriatedretainedearnings
Total surplus(undisposed
loss)

Total
voluntary
retainedearnings

33,552,162

6,206,491

Total
unitholders’equityTotal net
assets

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

Changes in items
during the period
Issuance of new
investment units

12,753,400

12,753,400

Reversal of reservefor dividends(33,552,162)

Provision of reserve
for temporary
difference
adjustments

33,552,162

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

33,552,162

33,552,162

33,552,162

33,552,162

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

Net income

6,371,232

6,371,232

6,371,232

6,371,232

165,032

12,918,432

12,918,432

Total changes in items
during the period

12,753,400

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

33,552,162-

165,032

33,552,162

33,552,162

6,371,523

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

For the six months ended July 31, 2017

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

Totalunitholders’equityVoluntary retained earnings
Paid-in capital

Balance at the
beginning of period

127,690,098

Capital surplus

53,220,279

Reserve fortemporarydifference
adjustments

UnappropriatedTotal voluntary retained earnings
retained(undisposed loss)
earnings

33,552,162

33,552,162

6,371,523

93,143,965

220,834,064

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

350,126---

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

Net income

6,642,169

6,642,169

6,642,169

6,642,169

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

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

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

Balance at the end of
period127,690,098

53,220,279

33,202,036

33,202,036

6,642,169

93,064,485

220,754,583

220,754,583

22

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

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

IV. Retained earnings carried forward
Dividend Policy

For the six months ended
July 31, 2017

6,371,523,766 yen

6,642,169,397 yen

350,126,234 yen

335,980,603 yen

6,721,650,000 yen(4,979 yen)

6,978,150,000 yen(5,169 yen)--In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserves for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has
decided to distribute 6,721,650,000
yen in total, which is the sum of thereversal of the reserve for temporary
difference adjustments (RTA) of
350,126,234 yen and unappropriatedretained earnings of 6,371,523,766 yen
for the fiscal period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

In accordance with the distribution
policy set forth in Article 32, Item 1of ADR’s Articles of Incorporation,
ADR distributes in excess of 90% of
the amount of ADR’s profit available
for dividends as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. In the event of
weak performance by investments,
reserve for dividends will be used inorder to maintain stable payouts into
the future.
Based on this policy, ADR has
decided to distribute 6,978,150,000
yen in total, which is the sum of thereversal of the reserve for temporary
difference adjustments (RTA) of
335,980,603 yen and unappropriatedretained earnings of 6,642,169,397
yen for the fiscal period.
ADR does not distribute dividends
in excess of the profits defined in
Article 32, Item 2 of its Articles ofIncorporation.

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Statements of Cash Flows(Thousands of yen)
For the six months ended
January 31, 2017

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

For the six months ended
July 31, 2017

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

6,642,774
2,631,935
1,388
13,83923,071-(2,313)(7,208)998,854
187,808
3,196
39,517(21,132)(69,959)
17,957
29,677
9,171
24,251(3,402)
10,212,181
1,093(1,234,890)
123
8,978,508(3,102)(6,700)930,276
163,328
8,762(121,703)
7,659
13,81221,807(30,246)(7,724)(22,500)(1,181)
10,242,425
783(1,104,526)(557)
9,138,124(7,000,000)
9,000,000(141,483)(3,886,534)(3,231)
22,764(2,008,485)(5,000,000)
7,000,000(162,396)(6,503,796)(2,648)39,474(4,629,368)

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

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

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III. Notes to Financial Statements
Notes to Financial Statements
1 Organization
ADR (Securities Code: 3269) is a listed Residential Japan Real Estate Investment Trust (J-REIT) that mainly invests in residential
properties. It was established through a consolidation-type merger between the former Advance Residence Investment
Corporation and Nippon Residential Investment Corporation on March 1, 2010, and was listed on the Real Estate Investment
Trust (REIT) Securities Section of the Tokyo Stock Exchange (TSE) on March 2, 2010.
The merger made ADR the largest residential J-REIT in terms of asset size, enabling it to upgrade its portfolio while ensuring
its financial stability. The merger also resulted in retained earnings of 43.2 billion yen (33.2 billion yen as of the end of thisfiscal period) due to the profit from negative goodwill, and allowed ADR to demonstrate one of its strengths of delivering
stable dividends over the long term.
ADR’s asset management company, AD Investment Management Co., Ltd. (ADIM), is wholly owned by the Itochu Group andthe group’s key entity, Itochu Corporation, a leading Japanese trading house, is its main sponsor.

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

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3 Significant Accounting Policies
1) Property, plant and equipment (including assets in trust)(1) Depreciation and
Depreciated using the straight-line method.
amortization methods
Useful lives of major categories of property, plant and equipment are as follows:of non-current assets
Buildings: 3 to 46 years
Structures: 6 to 50 years
Machinery and equipment: 10 to 15 years
Tools, furniture and fixtures: 2 to 20 years
2) Intangible assets
Amortized using the straight-line method.
Useful lives of major categories of intangible assets are as follows:
Leasehold rights in trust: 23 to 65 years
3) Long-term prepaid expenses
Amortized using the straight-line method.
(2) Accounting for1) Investment unit issuance expenses
deferred assets
Amortized using the straight-line method (more than three years).
2) Investment corporation bond issuance costs
Amortized using the straight-line method over the period up to redemption of theinvestment corporation bonds.
(3) Basis of recording
Allowance for doubtful accounts
allowances
Estimated uncollectible amounts are recorded for possible losses arising from default on
receivables based on the historical performance of general receivables and a case-by-caseevaluation of the collectibility of certain receivables, such as receivables with default possibility.
(4) Basis of recording
Method of accounting for property taxes
revenue andFor property taxes, urban planning taxes, and depreciable asset taxes on real estate properties
held, ADR records the amount of taxes imposed corresponding to the current fiscal period as an
expenses
expense for the property leasing activities.
Furthermore, for the pro rata portion of property taxes ADR paid to the transferor (seller) uponacquisition of real estate properties, ADR treats the amount as acquisition costs of real estate
properties, instead of recording it as an expense for the property leasing activities. The amountof property taxes treated as acquisition costs of real estate properties in the current fiscal period
was 12,492 thousand yen.
(5) Hedge accounting
1) Method of hedge accounting
Special accounting treatment is applied.
2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Loans
3) Hedging policy
ADR conducts derivative transactions to hedge risks stipulated in ADR’s Articles ofIncorporation in accordance with its financial policy.
4) Method for assessing the hedge effectiveness
Assessment of the hedge effectiveness has been omitted as the relevant transactions satisfy
the requirements for special accounting treatment.
(6) Scope of funds in the The funds (cash and cash equivalents) in the statements of cash flows consist of cash on handand cash in trust; demand deposits and deposits in trust; and short-term investments that arestatements of cash
readily convertible into cash, carry minimal risk of change in value, and are due for redemption inflows
three months or less from the acquisition date.
1) Accounting for trust beneficiary interests in trust assets such as real estate properties(7) Other significant
For trust beneficiary interests in real estate properties, all assets and liabilities of the trust
matters that serve
assets, as well as revenue and income earned from, and expenses incurred for the trust assets
as a basis for theare recorded under the respective account in the balance sheets and statements of income.
preparation of theOf the accounts used to record the above trust assets, the following accounts are significant
financial statements
and disclosed separately on the face of the balance sheets.
A. Cash and deposits in trust
B. Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture andfixtures in trust; land in trust; construction in progress in trust; and leasehold rights in trust
C. Guarantee deposits in trust
D. Tenant leasehold and security deposits in trust2) Accounting for consumption taxes
Consumption taxes and local consumption taxes are excluded from business transaction
amounts. However, accounting for non-current assets and deferred assets is inclusive ofconsumption taxes and local consumption taxes.

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

As of July 31, 2017

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

As of July 31, 2017

20,000,000

Amount used
Unused balance

20,000,000--

20,000,000

20,000,000(3) Contingent liabilities
For the six months ended January 31, 2017
Not applicable.
For the six months ended July 31, 2017
Not applicable.
(4) Provision and reversal of the reserve for temporary difference adjustments
For the six months ended January 31, 2017

Initial amountReserve fordividends (Note)

33,552,162

Balance as ofJuly 31, 2016-

Funds setaside during
13th FP

33,552,162

Funds drawn
down during
13th FP-(Thousands of yen)

Balance as ofJanuary 31,
2017

Reasons for setting aside anddrawing down funds

33,552,162

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

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

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For the six months ended July 31, 2017

(Thousands of yen)

Initial amount

Balance as ofJanuary 31,
2017

Funds setaside during
14th FP

Funds drawn
down during
14th FP

Balance as ofJuly 31, 201733,552,162

33,552,162-

350,126

33,202,036

Reserve fordividends (Note)

Reasons for setting aside anddrawing down funds
For dividends

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

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

For the six months ended
January 31, 2017

For the six months ended
July 31, 2017

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

13,823,691

14,071,111

Facility charges

728,212

747,834

Parking fees

441,475

14,993,378

437,625

15,256,571

Other revenue related to property leasing
Income from leasing rights

68,658Other442,277

Total revenue from property leasing activities

78,459510,935

583,413

15,504,314

661,872
15,918,444

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

836,580

848,599

1,068,122

1,145,863

Utilities

235,861

241,068

Repairs and maintenance

480,985

560,021

Property-casual insurance

25,17025,024

Trust fees

69,683

71,278Other rental expenses

735,571

751,862

Property management fees

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

2,593,555

6,045,529

2,631,916

6,275,634

6,045,529

6,275,634

9,458,784

9,642,810

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

For the six months ended
January 31, 2017

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

Total number of units authorized

6,000,000

6,000,000

Total number of units issued and outstanding

1,350,000

1,350,000

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

For the six months ended January 31, 2017
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No.27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within 50year, starting from the end of the fiscal period ending January 31, 2017 (13th FP), which is the period following the period
in which the transfer to the reserve was made. As such, ADR has drawn down 350,126,234 yen of the reserve during the13th FP.
For the six months ended July 31, 2017
The interim measures of Article 3 of the Supplementary Provisions to the Regulations Concerning Accounting ofInvestment Corporations (Cabinet Office Ordinance No.27 of 2015) have been applied and in the statements of cash
distributions, the reserve for dividends of 33,552,162,785 yen, which is the remaining portion of the amount subdivided
into gains on negative goodwill in previous fiscal periods, has been transferred to the reserve for temporary difference
adjustments. It has become necessary to draw down the reserve in equal amounts or more every fiscal period within 50year, starting from the end of the fiscal period ending January 31, 2017 (13th FP), which is the period following the period
in which the transfer to the reserve was made. As such, ADR has drawn down 335,980,603 yen of the reserve during the
14th FP.

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

For the six months ended
July 31, 2017

17,772,257

12,989,663

Cash and deposits in trust

9,471,622

9,611,975

Time deposits held over three months(7,000,000)(5,000,000)

Cash and cash equivalents

20,243,879

17,601,638

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

As of January 31, 2017

As of July 31, 2017

Due within one year

729,540

729,540

Due after one year

13,340,399

12,975,629

Total

14,069,939

13,705,169

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

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

As of January 31, 2017
Due within one year

As of July 31, 2017
3,997,554

4,089,309

Due after one year

9,825,391

8,717,916

Total

13,822,946

12,807,22630

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III. Notes to Financial Statements
10 Financial Instruments(1) General information on financial instruments
1) Policy on financial instruments
In order to secure stable earnings and steady growth of assets under management, ADR procures funds through loans,issuance of investment corporation bonds (including short-term investment corporation bonds; the same applies
below), issuance of units, and other means of financing for purchasing real estate properties and repaying its debts.
ADR conducts derivative transactions solely to hedge against the risk of interest rate fluctuations and other risks
arising from liabilities.
In addition, ADR, in general, manages surplus funds by investing only in bank deposits, savings, negotiable certificatesof deposit, and government bonds for emphasizing sound and stable portfolio management.
2) Description and risks of financial instruments and risk management
Funds through loans and investment corporation bonds are used primarily to finance the acquisition of real estate
properties, repay existing loans, or redeem existing investment corporation bonds. ADR is exposed to liquidity
risk in that it may not be able to raise funds through alternative financing sources by the repayment date or at theredemption. ADR controls the risk exposures through the preparation of a funding plan on a monthly basis, andseeking and procuring funds through various sources, such as securing the level of funds in hand, spreading out theloan repayment and bond redemption dates, diversifying borrowing financial institutions, entering into commitmentline agreements, and issuing investment units.
In addition, ADR is exposed to the risk arising from fluctuations in interest rates on its loans and investment corporation
bonds with floating interest rates. ADR controls and limits such risk by utilizing derivative transactions (interest rate
swap transactions).
ADR is also exposed to the credit risk that the financial institutions with which it has bank deposits may default.
However, ADR limits the effects of such risk by setting certain limits on the term of deposits and the minimum
credit rating for the financial institutions in which deposits are placed, and by placing deposits with various financial
institutions.
3) Supplementary explanation on fair value of financial instruments
The fair value of financial instruments is based on quoted market prices. If a quoted market price is not available, areasonable estimate of fair value is used. Certain assumptions are applied in the fair value measurements and therefore
could result in a different fair value if different assumptions are applied. Furthermore, the contractual amounts ofderivative transactions presented in “Derivative Transactions” below do not represent the market risk exposure ofthose derivative transactions.
(2) Fair values of financial instruments
The book values in the balance sheets, fair values of financial instruments, and unrealized gain (loss) are presented
below.
As of January 31, 2017

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

17,772,257

17,772,257–

2) Cash and deposits in trust

9,471,622

9,471,622–

3) Current portion of investment corporation bonds

12,000,000

12,053,191(53,191)

4) Current portion of long-term loans payable

22,956,329

23,068,639(112,310)

5) Investment corporation bonds

21,500,000

22,183,817(683,817)

6) Long-term loans payable

167,318,000

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

7) Derivative transactions

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As of July 31, 2017

(Thousands of yen)Book value

Fair value

Unrealized gain (loss)

1) Cash and deposits

12,989,663

12,989,663–

2) Cash and deposits in trust

9,611,975

9,611,975–

3) Current portion of investment corporation bonds

8,000,000

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

25,446,329

25,561,298(114,969)

5) Investment corporation bonds

26,500,000

27,106,549(606,549)

6) Long-term loans payable

163,428,000

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

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

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

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

Due in one
year or less(Thousands of yen)

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

Cash and deposits

17,772,257

–

–

–

–

–

Cash and deposits in trust

9,471,622

–

–

–

–

–

27,243,879

–

–

–

–

–

Total

As of July 31, 2017

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

Cash and deposits

12,989,663

–

–

–

–

–

Cash and deposits in trust

9,611,975

–

–

–

–

–

22,601,638

–

–

–

–

–

Total

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

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

12,000,000

–

–

–

–

–

22,956,329

–

–

–

–

–

–

2,000,000

4,000,000

1,500,000–

14,000,000–

28,950,000

18,900,000

21,370,000

23,678,000

74,420,000

34,956,329

30,950,000

22,900,000

22,870,000

23,678,000

88,420,000

As of July 31, 2017

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

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

8,000,000

–

–

–

–

–

25,446,329

–

–

–

–

–

–

2,000,000

4,000,000

1,500,000–

19,000,000–

21,460,000

20,870,000

20,618,000

23,960,000

76,520,000

33,446,329

23,460,000

24,870,000

22,118,000

23,960,000

95,520,000

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

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

(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment forinterest rate swaps

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

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

120,198,000

As of July 31, 2017

Fair value(*2)(2,329,420)(*3)(Thousands of yen)Contract amount (*1)

Method of hedge
accounting

Type of derivativetransaction

Main hedged
item

Special accounting
treatment forinterest rate swaps

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

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

106,358,000

Fair value(*2)(2,160,336)(*3)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore interest rate swaps are not stated at fair value in the balance sheets.

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

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

Type ofrelatedparty

Name ofrelated Location
party

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

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

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

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

487,991(*3)

Accounts
361,565
payable –
(*2)
other

390,490(*3)

Accounts
322,658
payable –
(*2)
other

348,471(*3)

35,456
(*3)
(*4)

–

–

35

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For the six months ended July 31, 2017

Type ofrelatedparty

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

Management
fee 1
Directors
and their
immediatefamilymembers

Kenji
Kousaka––

Executive
Director of
ADR and thePresident of
ADIM–

Payment Managementof asset
Asset
fee 2
management managementcompany fees to ADIMManagement
(*1)
fee 3
Acquisition
feeTransaction
Period-end
amount Account balance(Thousands name (Thousandsof yen)of yen)Accounts
447,261
payable –
(*2)
other

483,042(*3)

Accounts
368,241
payable –
(*2)
other

397,701(*3)

Accounts
337,290
payable –
(*2)
other

364,273(*3)

62,618
(*3)
(*4)

–

–

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

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

As of January 31, 2017

As of July 31, 2017

Deferred tax assets
Excess provision of allowance for doubtful accounts

3,210

2,230

Valuation difference on assets acquired through merger

10,240,282

10,154,672

Tax loss carryforwards

1,371,552

1,371,552

Other87,75998,637

Subtotal

11,702,804

11,627,093

Less valuation allowance(11,702,804)(11,627,093)

Total deferred tax assets

–

–

–

–

Net deferred tax asset

36

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III. Notes to Financial Statements(2) Reconciliation between the statutory tax rates and the effective tax rates after the application of tax effect accounting(Unit: %)As of January 31, 2017
Statutory tax rate

As of July 31, 2017

31.74

31.74

Increase (decrease) in valuation allowance(0.60)(1.14)

Deductible dividends(Adjustments)(31.15)(30.62)

Other

0.02

0.03

Effective tax rate after the application of tax effect accounting

0.01

0.01

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

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

37

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

38

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

For the six months ended
July 31, 2017

Book value(*1)

Balance at the beginningof period

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

419,232,274

420,717,789

1,485,515

3,994,392

420,717,789

424,712,182

517,944,000

531,174,000*1. The book value is the cost of acquisition less accumulated depreciation.
*2. Of the changes in the value of rental properties during the period, the main element of increase in the previous period was the acquisition of real estate beneficiary interests in trust for
two properties (3,493,215 thousand yen), while the main decreases came from the posting of depreciation expenses. Of the changes in the value of rental properties during the fiscal
period ended July 31, 2017, the increase is mainly attributable to the acquisition of three real estate beneficiary interests in trust (6,097,904 thousand yen), and the decrease is mainly aresult of posting depreciation.
*3. The fair value at the end of period is the appraisal or assessment value provided by an external real estate appraiser.

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

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

For the six months ended
July 31, 2017

Net assets per unit

163,580

163,521

Net income per unit

4,771

4,920

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

For the six months ended
January 31, 2017
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common unit
(Thousands of yen)
Average number of units during the period(Units)For the six months ended
July 31, 2017

6,371,232

6,642,169––

6,371,232

6,642,169

1,335,245

1,350,000

39

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21 Significant Subsequent Events
For the six months ended July 31, 2017
Not applicable.

22 Schedule of Securities
Not applicable.

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

Category

Type

Transactions other thanmarket transactions

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

Contract amount (*1)
Contract amount due Fair value (*2 and *3)
after one year
123,998,000

106,358,000(2,160,336)

123,998,000

106,358,000(2,160,336)*1. The contract amount is based on the notional principal.
*2. The fair value is based on the estimation made by the interest rate swap counterparty using the prevailing interest rate.
*3. Special accounting treatment is applied to the interest rate swaps in accordance with the “Accounting Standard for Financial Instruments” (issued by the Accounting Standards Boardof Japan (ASBJ) on March 10, 2008; ASBJ Statement No. 10) and therefore interest rate swaps are not stated at fair value in the balance sheets.

40

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III. Notes to Financial Statements
24 Summary of Real Estate

Property, plant and equipment

For the six months ended July 31, 2017

Decreaseduring theperiodBalance atthe end of
periodAccumulated depreciation
Book value
orDepreciation at the end of Notes
accumulated
for theperiodamortization
period98,753-74,590,506

11,514,323

825,404

63,076,183

–

162

-

22,983

6,198

744

16,784–

Balanceat thebeginning of
periodIncreaseduring theperiodBuildings

74,491,753

Structures

22,821

Machinery and equipment

57,167

5,961-

63,128

13,622

2,647

49,506–

Tools, furniture and fixtures

207,046

19,772-

226,819

119,992

12,124

106,827–

70,314,787--

70,314,787--

70,314,787–-

31,381-

31,381--

31,381–

Buildings in trust

150,689,937

2,417,990-

153,107,928

22,028,016

1,715,184

131,079,911*1Structures in trust

184,544

3,347-

187,892

93,971

4,428

93,921–

Machinery and equipmentin trust

170,9532,533-

173,486

92,8336,307

80,653–Tools, furniture and fixturesin trust

686,71150,724-

737,436

448,573

30,637

288,862–

152,459,428

3,998,203-

156,457,632--

156,457,632

*1

2,521

-

2,521

-

-

-

-

–

Land
Construction in progress

Land in trust
Construction in progressin trust
Subtotal
Intangible
assets(Thousands of yen)449,287,673

6,628,830

2,521

455,913,982

34,317,531

2,597,478

421,596,451

Leasehold rights

1,071,902--

1,071,902--

1,071,902

Leasehold rights in trust

2,356,072--

2,356,072

312,244

34,4372,043,828–

19,506--

19,506

19,433

19

73

–

Other
Subtotal

3,447,482--

3,447,482

331,677

34,456

3,115,804

Total

452,735,155

6,628,830

2,521

459,361,464

34,649,209

2,631,935

424,712,255–*1. The increase in property, plant and equipment for the six months ended July 31, 2017, primarily represents the acquisitions of the properties listed below.
RESIDIA Senri-Fujishirodai
RESIDIA Kameido
RESIDIA Koenji

25 Schedule of Other Specified Assets
Not applicable.

41

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

(Thousands of yen)

Series (*1)

Issue date

Balanceat thebeginningof period

ADR Bond #14 (Unsecured)

September
12, 2011

2,000,000-

2,000,000

ADR Bond #16 (Unsecured)

April 26,2012

4,000,000

4,000,000-

ADR Bond #17 (Unsecured)

September
12, 2012

8,000,000-

8,000,000

ADR Bond #18 (Unsecured)

September
12, 2012

4,000,000-

ADR Bond #19 (Unsecured)

April 25,2013

3,000,000

ADR Bond #20 (Unsecured)

November
14, 2013

ADR Bond #21 (Unsecured)

Balance atInterest Redemption
the end of
rate (%)
date
periodUse

Collateral

Sep. 12, 2018(*3)

Unsecured

1.08 Apr. 26, 2017(*2)

Unsecured

0.87

Sep. 12, 2017(*3)

Unsecured

4,000,000

1.23

Sep. 12, 2019(*3)

Unsecured-

3,000,000

1.32 Apr. 25, 2023(*2)

Unsecured

2,000,000-

2,000,000

1.41 Nov. 14, 2025(*2)

Unsecured

April 28,2014

2,500,000-

2,500,000

1.04 Apr. 26, 2024(*2)

Unsecured

ADR Bond #22 (Unsecured)

April 23,2015

2,000,000-

2,000,000

0.726 Apr. 23, 2025(*3)

Unsecured

ADR Bond #23 (Unsecured)

October 21,
2015

1,500,000-

1,500,000

0.326

Oct. 21, 2020(*2)

Unsecured

ADR Bond #24 (Unsecured)

October 21,
2015

1,500,000-

1,500,000

0.846

Oct. 21, 2025(*2)

Unsecured

ADR Bond #25 (Unsecured)

June 21,2016

3,000,000-

3,000,000

0.900

Jun. 20, 2031(*2)

Unsecured

ADR Bond #26 (Unsecured)

February 17,
2017

-

-

2,000,000

0.180 Aug. 17, 2022(*2)

Unsecured

ADR Bond #27 (Unsecured)

July 18, 2017--

3,000,000

0.500

Jul. 16, 2027(*2)

Unsecured

Total

-

-

-

-

-

33,500,000

Decreaseduring theperiod1.68

4,000,000 34,500,000*1. The bonds have a pari passu clause among specified investment corporation bonds.
*2. The funds are used for the repayments of existing loans.
*3. The funds are used for the redemption of existing investment corporation bonds.
*4. Redemption schedules of investment corporation bonds after the balance sheet date for the next five years are as follows:

Due in one year or
less
Investment
corporation bond

8,000,000

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

4,000,000(Thousands of yen)

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

42

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

Current portion of long-term loans payable

Development Bank of Japan Inc.

(Thousands of yen)
Balance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodInterest
Repayment
rate
Use
date
(*1)
1.90%

Nov. 24,
2017

(*5)

-

Apr. 28,
2017

(*5)

-

-

Jun. 30,
2017

(*5)

-

890,000

1.76%
(*2)

Jun. 29,
2018

(*5)

500,000-

500,000

500,000-

500,000
1.43%(*2)

Jul. 31,
2018

(*5)

1.42%
(*2)

Jul. 31,
2018

(*6)

1.23%

Feb. 28,
2018

(*3)

1.10%
(*2)

Aug. 31,
2017

(*5)

1.20%
(*2)

Apr. 27,
2018

(*5)

956,329--

956,329

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,500,000-

3,500,000-

Mitsubishi UFJ Trust and Banking
Corporation

3,700,000-

3,700,000-

Sumitomo Mitsui Trust Bank Limited

2,000,000-

2,000,000-

Sumitomo Mitsui Banking Corporation

2,700,000-

2,700,000

Sumitomo Mitsui Trust Bank Limited-

890,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

Sumitomo Mitsui Trust Bank Limited-

Sumitomo Mitsui Banking Corporation-

650,000-

650,000

Mizuho Bank, Ltd.

-

500,000-

500,000

Mitsubishi UFJ Trust and Banking
Corporation-

900,000-

900,000

Development Bank of Japan Inc.

-

1,000,000-

1,000,000

Shinsei Bank, Limited-

1,500,000-

1,500,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

500,000-

500,000

Sumitomo Mitsui Trust Bank Limited-

500,000-

500,000

Shinsei Bank, Limited-

1,000,000-

1,000,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

2,850,000-

2,850,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

800,000-

800,000-

Sumitomo Mitsui Trust Bank Limited

800,000-

800,000-

Sumitomo Mitsui Banking Corporation

2,800,000--

2,800,000

Mitsubishi UFJ Trust and Banking
Corporation

1,600,000-

1,600,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-1,500,000-

1,500,000

Sumitomo Mitsui Trust Bank Limited-

2,100,000-

2,100,000

Sumitomo Mitsui Banking Corporation-

800,000-

800,000

1,500,000--

1,500,000

0.94%

Sep. 29,
2017

(*7)

The Kagawa Bank, Ltd.

500,000--

500,000

0.92%
(*2)

Sep. 29,
2017

(*6)

The Hiroshima Bank, Ltd.

500,000--

500,000

0.79%
(*2)

Nov. 30,
2017

(*6)

Development Bank of Japan Inc.

600,000-

600,000--

May 31,2017(*6)

1,000,000-

1,000,000--

Mar. 31,
2017

(*5)

The Bank of Fukuoka, Ltd.

-

1,000,000-

1,000,000

0.79%
(*2)

Feb. 28,
2018

(*3)

Mizuho Bank, Ltd.

-1,500,000-

1,500,000

0.20%

Apr. 13,
2018

(*3)

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

-

1,000,000-

1,000,000

0.12%

May 31,2018(*5)

22,956,329

19,190,000

16,700,000

25,446,329

Taiyo Life Insurance Company

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

Total

Notes

Unsecured
Unguaranteed

43

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Classification

Long-term loans payable

Lenders

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

Sumitomo Mitsui Trust Bank Limited

890,000-

890,000--

Jun. 29,
2018

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

1.62%
(*2)

Sep. 28,
2018

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300,000--

1,300,000

Sumitomo Mitsui Trust Bank Limited

1,300,000--

1,300,000

Mizuho Bank, Ltd.

1,000,000--

1,000,000

1.57%
(*2)

Nov. 30,
2018

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

1,900,000--

1,900,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000-

500,000-

Sumitomo Mitsui Trust Bank Limited

500,000-

500,000-

Sumitomo Mitsui Banking Corporation

650,000-

650,000-

Mizuho Bank, Ltd.

500,000-

500,000

-

-

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

Jul. 31,2018

900,000-

900,000-

Development Bank of Japan Inc.

1,000,000-

1,000,000-

Shinsei Bank, Limited

1,500,000-

1,500,000-

500,000-

500,000-

Jul. 31,
2018

(*6)

-

Feb. 28,
2018

(*3)

-

Apr. 27,
2018

(*5)

1.25%
(*2)

Jun. 28,
2019

(*5)

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

500,000-

500,000-

Shinsei Bank, Limited

1,000,000-

1,000,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,850,000-

2,850,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,500,000-

1,500,000-

Sumitomo Mitsui Trust Bank Limited

2,100,000-

2,100,000-

Sumitomo Mitsui Banking Corporation

800,000-

800,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank Limited

800,000--

800,000

Aozora Bank, Ltd.

700,000--

700,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

450,000--

450,000

1.16%

Sep. 30,
2019

(*6)

Sumitomo Mitsui Trust Bank Limited

450,000--

450,000

1.16%

Sep. 30,
2019

(*6)

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

1.03%
(*2)

Nov. 29,
2019

(*6)

Sumitomo Mitsui Banking Corporation

1,200,000--

1,200,000

1,200,000--

1,200,000

Nov. 29,
2019

(*6)

Mizuho Bank, Ltd.

0.95%
(*2)

Notes

Unsecured
Unguaranteed

44

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III. Notes to Financial Statements

Classification
Lenders

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

Development Bank of Japan Inc.

2,200,000--

2,200,000

1.23%

Nov. 29,
2020

(*5)

Development Bank of Japan Inc.

2,200,000--

2,200,000

1.40%

Nov. 29,
2021

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,703,000--

2,703,000

Sumitomo Mitsui Trust Bank Limited

3,595,000--

3,595,000
1.28%
(*2)

Jul. 25,
2019

(*5)

Mitsubishi UFJ Trust and Banking
Corporation

1,799,000--

1,799,000

903,000--

903,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,200,000--

1,200,000

0.81%

Mar. 24,
2020

(*3)

Sumitomo Mitsui Trust Bank Limited

1,200,000--

1,200,000

0.82%

Mar. 24,
2020

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,300,000--

1,300,000

0.81%

Mar. 24,
2020

(*5)

Sumitomo Mitsui Trust Bank Limited

1,300,000--

1,300,000

0.82%

Mar. 24,
2020

(*5)

Development Bank of Japan Inc.

1,150,000--

1,150,000

1.08%

Mar. 24,
2021

(*4)

920,000--

920,000

Aozora Bank, Ltd.

1,830,000--

1,830,000

Resona Bank, Limited

1,370,000--

1,370,000

The Bank of Fukuoka, Ltd.

1,000,000-

1,000,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,000,000--

2,000,000

Sumitomo Mitsui Trust Bank Limited

2,600,000--

2,600,000

Sumitomo Mitsui Banking Corporation

1,500,000--

1,500,000

Mizuho Bank, Ltd.

2,160,000--

2,160,000

Aozora Bank, Ltd.

1,379,000--

1,379,000

919,000--

919,000

Mizuho Trust & Banking Co., Ltd.

1,000,000--

1,000,000

The Norinchukin Bank

1,000,000--

1,000,000

The Nishi-Nippon City Bank Ltd.

500,000--

500,000

The Nishi-Nippon City Bank Ltd.

500,000--

500,000

The 77 Bank, Ltd.

500,000--

500,000

Aozora Bank, Ltd.

Long-term loans payable

Balance at the
beginning of
periodSumitomo Mitsui Trust Bank Limited

Resona Bank, Limited

Notes

Unsecured
Unguaranteed

0.88%
(*2)

Mar. 24,
2020

(*5)

-

Feb. 28,
2018

(*3)

1.25%
(*2)

Oct. 29,
2021

(*5)

1.63%
(*2)

Dec. 22,
2021

(*5)

1.54%
(*2)

Jun. 25,
2021

(*5)

1.07%
(*2)

Sep. 30,
2020

(*3)

0.92%
(*2)

Sep. 30,
2019

(*3)

0.77%
(*2)

Sep. 28,
2018

(*3)

45

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Classification

Long-term loans payable

Lenders

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

Sumitomo Mitsui Trust Bank Limited

2,600,000--

2,600,000

1.47%
(*2)

Nov. 15,
2023

(*5)

Sumitomo Mitsui Banking Corporation

3,550,000--

3,550,000

1.37%
(*2)

Nov. 15,
2022

(*5)

Aozora Bank, Ltd.

1,800,000--

1,800,000

1.16%
(*2)

Nov. 26,
2021

(*3)

Shinsei Bank, Limited

1,000,000--

1,000,000

1.32%
(*2)

Jun. 17,
2022

(*3)

Shinsei Bank, Limited

700,000--

700,000

1.10%
(*2)

Jun. 18,
2021

(*3)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.93%
(*2)

Jun. 18,
2020

(*3)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.85%
(*2)

Dec. 18,
2019

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

1.59%
(*2)

Feb. 14,
2025

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

500,000--

500,000

Feb. 16,
2024

(*5)

Sumitomo Mitsui Trust Bank Limited

1.44%
(*2)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

455,000--

455,000

Sumitomo Mitsui Trust Bank Limited

455,000--

455,000

1.28%
(*2)

Feb. 16,
2023

(*5)

1.08%
(*2)

Feb. 16,
2022

(*5)

0.89%
(*2)

Feb. 16,
2021

(*5)

0.74%
(*2)

Feb. 14,
2020

(*5)

0.58%
(*2)

Jan. 29,
2021

(*3)

0.82%
(*2)

Jul. 29,
2022

(*3)

Sumitomo Mitsui Banking Corporation

1,120,000--

1,120,000

Mizuho Bank, Ltd.

1,630,000--

1,630,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,200,000--

1,200,000

Sumitomo Mitsui Trust Bank Limited

2,100,000--

2,100,000

Mizuho Bank, Ltd.

2,000,000--

2,000,000

500,000--

500,000

Mizuho Bank, Ltd.

2,900,000--

2,900,000

Mizuho Trust & Banking Co., Ltd.

1,500,000--

1,500,000

Mitsubishi UFJ Trust and Banking
Corporation

270,000--

270,000

Mizuho Bank, Ltd.

2,900,000--

2,900,000

Mizuho Trust & Banking Co., Ltd.

2,350,000--

2,350,000

Aozora Bank, Ltd.

900,000--

900,000

The Nishi-Nippon City Bank Ltd.

400,000--

400,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

707,000--

707,000

Sumitomo Mitsui Trust Bank Limited

393,000--

393,000

The Nishi-Nippon City Bank Ltd.

400,000--

400,000

Mizuho Trust & Banking Co., Ltd.

Notes

Unsecured
Unguaranteed

46

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III. Notes to Financial Statements

Classification
Lenders

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

Development Bank of Japan Inc.

1,500,000--

1,500,000

1.02%
(*2)

Sep. 29,
2023

(*5)

Development Bank of Japan Inc.

1,850,000--

1,850,000

1.18%
(*2)

Sep. 30,
2024

(*5)

Aozora Bank, Ltd.

1,000,000--

1,000,000

0.85%
(*2)

Oct. 31,
2022

(*5)

Aozora Bank, Ltd.

700,000--

700,000

0.76%
(*2)

Apr. 28,
2022

(*5)

Aozora Bank, Ltd.

700,000--

700,000

0.42%
(*2)

Oct. 31,
2019

(*5)

Resona Bank, Limited

500,000--

500,000

500,000--

500,000

0.57%
(*2)

Jan. 29,
2021

(*5)

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

600,000--

600,000

Resona Bank, Limited

500,000--

500,000

0.63%
(*2)

Jun. 30,
2021

(*5)

The Bank of Fukuoka, Ltd.

500,000--

500,000

1,000,000--

1,000,000

700,000--

700,000

0.89%
(*2)

Jan. 31,
2023

(*5)

Resona Bank, Limited

1,000,000--

1,000,000

Mizuho Trust & Banking Co., Ltd.

1,200,000--

1,200,000

1.05%
(*2)

Mar. 19,
2025

(*3)

500,000--

500,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Nippon Life Insurance Company

1,000,000--

1,000,000

1.00%
(*2)

Apr. 14,
2025

(*3)

Mizuho Trust & Banking Co., Ltd.

1,400,000--

1,400,000

0.88%
(*2)

Apr. 12,
2024

(*3)

Mizuho Trust & Banking Co., Ltd.

1,200,000--

1,200,000

1,500,000--

1,500,000

0.75%
(*2)

Apr. 14,
2023

(*3)

The Norinchukin Bank

500,000--

500,000

0.73%
(*2)

Apr. 14,
2023

(*3)

1,200,000--

1,200,000

0.69%
(*2)

Oct. 14,
2022

(*3)

The Tokyo Tomin Bank, Ltd.

500,000--

500,000

The Iyo Bank, Ltd.

700,000--

700,000

0.62%
(*2)

Apr. 14,
2022

(*3)

The 77 Bank, Ltd.

500,000--

500,000

1,000,000--

1,000,000

0.50%
(*2)

Apr. 14,
2021

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Long-term loans payable

Balance at the
beginning of
periodAozora Bank, Ltd.

The Yamaguchi Bank, Ltd.

The Yamaguchi Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

The Norinchukin Bank

Notes

Unsecured
Unguaranteed

47

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Classification

Long-term loans payable

Lenders

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

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000-

500,000-

Sumitomo Mitsui Trust Bank Limited

500,000-

500,000-

Mizuho Bank, Ltd.

1,500,000-

1,500,000-

The Gunma Bank, Ltd.

1,000,000--

Development Bank of Japan Inc.

2,300,000-

Resona Bank, Limited

1,000,000

The Nishi-Nippon City Bank Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

Apr. 13,
2018

(*3)

1,000,000

0.63%
(*2)

May 27,
2022

(*5)

-

2,300,000

1.04%
(*2)

Jun. 25,
2025

(*5)

-

-

1,000,000--

800,000

0.73%
(*2)

Aug. 31,
2023

(*5)

800,000
700,000-

700,000-

Feb. 28,
2019

(*5)

Sumitomo Mitsui Trust Bank Limited

500,000-

500,000-

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

400,000--

400,000

0.92%

Aug. 29,
2025

(*3)

Sumitomo Mitsui Trust Bank Limited

400,000--

400,000

0.85%
(*2)

Aug. 29,
2025

(*3)

Mitsubishi UFJ Trust and Banking
Corporation

1,000,000--

1,000,000

0.84%
(*2)

Dec. 18,
2025

(*5)

The Norinchukin Bank

1,000,000--

1,000,000

0.61%
(*2)

Dec. 18,
2023

(*5)

0.55%

Feb. 28,
2026

(*5)

0.66%

Jan. 31,
2027

(*5)

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

990,000--

990,000

Sumitomo Mitsui Trust Bank Limited

990,000--

990,000

Mizuho Bank, Ltd.

1,080,000--

1,080,000

Mitsubishi UFJ Trust and Banking
Corporation

2,500,000--

2,500,000

0.57%

Jan. 31,
2026

(*5)

Sumitomo Mitsui Banking Corporation

2,260,000--

2,260,000

0.18%

Nov. 30,
2018

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.77%
(*2)

Mar. 24,
2028

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.54%

Mar. 24,
2026

(*3)

900,000--

900,000
0.63%

Jan. 31,
2027

(*3)

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

750,000--

750,000

Resona Bank, Limited

900,000--

900,000

0.52%

Jan. 31,
2026

(*3)

1,150,000--

1,150,000

0.45%

Jan. 31,
2025

(*3)

Mitsubishi UFJ Trust and Banking
Corporation

Notes

Unsecured
Unguaranteed

48

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III. Notes to Financial Statements

Classification

Long-term loans payable

Lenders

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

Sumitomo Mitsui Trust Bank Limited

500,000--

500,000

0.75%

Mar. 24,
2028

(*3)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

500,000--

500,000

0.51%

Mar. 24,
2026

(*3)

Mizuho Bank, Ltd.

400,000--

400,000

0.63%

Jan. 31,
2027

(*3)

The Yamaguchi Bank, Ltd.

500,000--

500,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.36%

Jul. 29,
2026

(*5)

The Bank of Fukuoka, Ltd.

1,000,000--

1,000,000

0.26%

Jul. 29,
2025

(*5)

The Iyo Bank, Ltd.

300,000--

300,000

0.20%

Jul. 29,
2024

(*5)

The Chugoku Bank, Ltd.

500,000--

500,000

0.20%

Jul. 29,
2024

(*5)

Bank of Kyoto, Ltd.

500,000--

500,000

0.20%

Jul. 29,
2024

(*5)

The Norinchukin Bank

1,500,000--

1,500,000

0.45%

Nov. 28,
2025

(*5)

The Norinchukin Bank

1,000,000--

1,000,000

0.38%

Nov. 29,
2024

(*5)

Taiyo Life Insurance Company

1,500,000--

1,500,000

0.24%

Nov. 29,
2024

(*5)

Mitsui Sumitomo Insurance Co., Ltd.

1,000,000--

1,000,000

0.32%

Nov. 30,
2023

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,250,000--

1,250,000

0.41%

Jan. 29,
2027

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,000,000--

1,000,000

0.58%

Jan. 29,
2027

(*5)

Sumitomo Mitsui Trust Bank Limited

1,000,000--

1,000,000

0.63%

Jan. 29,
2027

(*5)

Sumitomo Mitsui Trust Bank Limited

1,250,000--

1,250,000
0.61%

Jan. 29,
2027

(*5)

Resona Bank, Limited

1,000,000--

1,000,000

Resona Bank, Limited

1,000,000--

1,000,000

0.50%

Jan. 30,
2026

(*5)

Tokio Marine & Nichido Fire InsuranceCo., Ltd.

-

1,000,000

1,000,000--

May 31,
2018(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,200,000-

1,200,000

0.43%

Feb. 25,
2026

(*6)

Sumitomo Mitsui Trust Bank Limited-

1,000,000-

1,000,000

0.67%

Apr. 25,
2028

(*6)

Notes

Unsecured
Unguaranteed

49

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Classification

Balance at the
beginning of
periodIncreaseduring theperiodDevelopment Bank of Japan Inc.

-

1,400,000-

1,400,000

0.56%

Apr. 23,
2027

(*6)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-2,500,000-

2,500,000

0.52%

Feb. 26,
2027

(*5)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

-

1,000,000-

1,000,000

0.47%

Aug. 31,
2026

(*5)

Sumitomo Mitsui Trust Bank Limited-

2,000,000-

2,000,000
0.60%

Apr. 30,
2027

(*5)

Long-term loans payable

Lenders

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

Mitsubishi UFJ Trust and Banking
Corporation-

2,000,000-

2,000,000

Mitsubishi UFJ Trust and Banking
Corporation-

1,700,000-

1,700,000

0.54%

Oct. 30,
2026

(*5)

Development Bank of Japan Inc.

-

1,000,000-

1,000,000

0.57%

May 31,
2027(*7)

Sumitomo Mitsui Banking Corporation-

2,700,000-

2,700,000

0.25%

Dec. 25,
2020

(*5)

167,318,000

17,500,000

21,390,000

163,428,000

Total

Notes

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

Long-term loans
payableDue in one year or
less

Due after one year
through two years

25,446,329

21,460,000

Due after two years Due after three years Due after four years
through three years through four years through five years
20,870,000

20,618,000

23,960,000

50

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