20th

Semi-Annual Report
2021.8.1- 2022.1.31

Securities code：3278

Kenedix Residential Next Investment Corporation

Ⅰ Overview of KDR
a

1
2

5

4

3

11 R-39 KDX Residence Ohori Harbor View Tower

Adopted property on the cover： 3 H-6 Ten

22 T-100 KDX Residence Kamishakujii II4 H-27 Grapes Kawasaki Shimmachi 5 T-102 KDX Residence Yokohama Momijizaka

To our unitholders
We would like to express our sincere gratitude to all unitholders and stakeholders for their continued
support and cooperation.
We are pleased to inform you that Kenedix Residential Next Investment Corporation (KDR) successfully
closed all accounts for the 20th fiscal period (from August 1, 2021 to January 31, 2022). We hereby
report on the asset management overview and results for the 20th Fiscal Period.
For the 20th fiscal period, operating revenue was ¥ 9,143 million, operating income was ¥ 4,840 million,
ordinary income was ¥ 4,119 million, and net income was ¥ 4,119 million, resulting in a distribution perunit of ¥ 4,101.
During the fiscal period under review, KDR acquired 3 properties of rental housing and 2 healthcare
facilities and sold 1 rental housing. As a result, at the end of January 2022, our AUM amounted to 165
properties and ¥ 277.5 billion (total acquisition price).
In the management of owned properties, the occupancy rate of the portfolio at the end of the fiscal period
was 97.3%, which recovered to the level prior to the spread of the COVID-19 pandemic and continued tomaintain a high occupancy rate.
Residential property occupancy rate were temporarily sluggish in the central Tokyo area in response todemographic changes but its recovery has been robust and occupancy rate in other Tokyo area remains
stable. Consequently, occupancy rate of residential portfolio recovered to the pre-pandemic level.
As for rents, although the rate of rent increase is decreasing due to the impact of the COVID-19 pandemic,
an upward trend has continued. On the other hand, healthcare facilities and accommodation facilities
contributed to maintaining the profit stability of portfolio through long-term lease contracts.
In terms of finance, the credit rating of KDR was upgraded to AA (-Outlook: Stable) in January 2022 thanks
to the improvement of creditworthiness backed by its stable management performance and the new
support structure provided by SMFL Group.
KDR raised approximately ¥9.2 billion through the issuance of new investment
units in February and March 2022, respectively and acquired 2 healthcare
facilities. In addition, KDR plans to acquire 4 properties of rental housing and 1
healthcare facility. As a result, the size of our AUM as of June 2022 is expected to
be 172 properties valued at ¥289.8 billion.
Based on an accurate understanding of social and economic changes, we will
pursue with flexibility investment and revenue opportunities that we believe are
the most attractive. We will dynamically invest and manage our portfolio bygathering information and making decisions swiftly. By using this approach, we
aim to maximize the unitholder’s value.
Your continued support and cooperation are highly appreciated.

Executive Director,

Tetsu Kawashima

Kenedix Residential Next Investment Corporation

Highlights

Distribution per Unit

20th (Ended January 2022) Actual（Note) Distribution per unit for 21st fiscal
period and 22nd fiscal period is
estimated based on certain
assumptions as of March 16, 2022

¥4,101

21st (Ending July 2022) Forecast¥4,101

22nd (Ending January 2023) Forecast¥4,120Trend in DPU（note）
（yen）
5,000

￥ 4,039￥4,026￥ 4,063￥ 4,064￥ 4,065￥ 4,066

Jan.2020(16th Period)

Jul.2020(17th Period)

Jan.2021(18th Period)￥ 4,117￥4,101￥ 4,101￥ 4,120

Jul.2021(19th Period)

Jan.2022(20th Period)

Jul.2022(21st Period)(Forecast)Jan.2023(22nd Period)(Forecast)

4,000￥3,4733,000

0Jan.2018(12th Period)

Jul. 2 0 1 8(13th Period)

Jan.2019
Jul. 2 0 1 9(14th Period) (15th Period)(Note) KDR implemented a two-for-one split of the investment units as of the record date of February 28, 2018 (Effective date on March 1, 2018).
Before the period ended January 2018 (12th fiscal period), the figures for the distribution per unit are those taking into account the spilt of theinvestment units.

(million yen)

Operating revenues

Operating Income

Ordinary Income

Net Income

20nd Fiscal
Period

9,143

4,840

4,119

4,119

19th Fiscal
Period

9,195

4,822

4,147

4,146

Portfolio Overview

277.5

Occupancy Rates

165

Total Acquisition
Price (unit: bln yen)

Residential
Properties

135

Residential
Properties

210.9

Residential
Properties

96.1 %

Healthcare
Facilities

28

Healthcare
Facilities

61.6

Healthcare
Facilities

99.9 %

Total Number of
Properties

Accommodation
Facilities

2

Accommodation
Facilities

4.9(at the end of 20th
Fiscal Period)

Accommodation
Facilities

97.3

%

100.0 %1

feature

Asset managers introduction Interview with new employees

Ryusuke Ota

Kai OkiKotaro Nakada

Joined in 2021 (New graduate)
Asset Management Division, Residential
REIT Department, which is in charge ofproperty management and operation

Joined in 2020 (New graduate)
Acquisition Department in chargeof acquisition and sale ofproperties

Joined in 2021 (New graduate)
Strategic Planning Department
in charge of IR and equity
finance

Kenedix Real Estate Fund Management, Inc. ("KFM"), the asset management company of Kenedix Residential Next Investment
Corporation ("KDR"), aims to maximize unitholder value through cooperation between multiple departments, including theAsset Management Division of each REIT Department, as well as the Acquisition Department and the Strategic Planning
Department. While a large number of experienced personnel are assigned to the management of each investment corporation,
Kenedix, Inc. (KDX), the parent company of KFM, has continuously hired new graduates as employees since 2005. At KFM,
several of these employees are diligently working to manage each investment corporation and improving their knowledge on adaily basis. Below, three employees who were hired as new graduates and are in their first and second years with the company
talk about KDR's operations and KFM's workplace environment.

Understanding the work of new employees at KDR▶ What kind of work are you responsible for normally?
Nakada: My daily work is focused on preparing various
surveys when investing in properties, negotiating terms withsellers, and closing deals, including the compilation ofcontracts. I also focus on reviewing potential opportunities
introduced by brokers and developers and developing new
information channels.
Oki: Currently, as an asset manager (AM), I am engaged inleasing and property management for 17 properties, mainly in
the Tokyo and Kansai areas.
Ota: As regular work, I am in charge of IR, such as the
preparation of disclosure materials, including press releases
and financial materials, as well as arrangement of IR meetings
with investors.
▶ You are already in charge of managing 17 properties!?
What are you doing to perform that task with care?
Oki: As of last May, I was in charge of 6 properties, but as I've
gradually learned my work, the number of properties I am incharge of has increased.
In leasing, which is one of our important tasks, I do not rely
solely on past track records, but rather make decisions basedon the flow of the entire market and the current situation ofeach property grasped through meeting with property
managers. Currently, the COVID-19 pandemic is having a major
impact on leasing, so in my work I carefully check whether thedetails of rent offers do not deviate from the market andconstantly consider modification of conditions that would leadto improved earnings while trying to balance the occupancy
rate and rents.
Currently, properties in the suburbs of central Tokyo and thosewith larger unit types such as family units are performing well,and we have also achieved an increase in rent while
maintaining a high occupancy rate. (Table 1)
At first, there were many things I couldn't do, but because I was
surrounded by superiors who are professionals in real estate
management, I experienced playing a part in not only theleasing business but also property sales-related operations andconstruction for value enhancement, as well as KDR's projectfor capital increase through public offering which was resolved
in February this year. Through these, I have been able to realize
growth in my daily work.

As for the work related to the public offering, I was involvedin drafting the budgets for KDX Residence Mizonokuchi and
KDX Residence Hachioji Otsuka. Following the acquisition of
the properties, I will work to conduct appropriate leasing
and building management based on the budgets to ensurestable profits.
Table 1

Occupancy Rates of Residential Properties andIncrease/Decline of Rent of New Tenants for 20th fiscal period
Overall
portfolio

3 prefectures
Surrounding
Tokyo

FamilyOccupancy Rates

95.9%

96.1%

97.3%

Increase/Declineof Rent

0.2%

3.1%

2.4%

Note 1：Calculated for residential units under pass-through contracts(excluding rental of whole building).
Note 2："Three prefectures surrounding Tokyo" refers to Kanagawa,
Saitama and Chiba prefectures.

▶ The public offering was mentioned. Mr. Nakada, Mr. Ota,
what kind of work were you responsible for in thisproject ?
Nakada: I was in charge of closing deals for several of the
newly acquired properties, including KDX Residence
Mizonokuchi and KDX Residence Hachioji Otsuka, which Mr.
Oki just mentioned. In terms of cultivating new information
channels mentioned in my daily work, we were able toestablish a relationship with National Students Information
Center Co., Ltd., an operator of student dormitories, throughthe project for KDX Residence Tsudanuma, KDR’s firststudent dormitory (Note: T-101 changed its name from "Hulic
Residence Tsudanuma" as of April 1, 2022) This led to oursubsequent investment in KDX Residence Hachioji Otsuka.
Being able to develop a new channel to acquire a property on
our own as an asset management company was a great
accomplishment for us. I also felt that I was able todemonstrate KDR's strengths in securing acquisition
opportunities through building good relationships withbusiness partners. Moreover, we acquired KDX Residence
Mizonokuchi through a proprietary channel of KFM and by
utilizing its sourcing capabilities. This property was introduced
to us by a broker who regularly provides property information.
The property offers great living convenience with a drugstore
on the ground floor as well as excellent access to urban 2
centers. It achieved a high occupancy rate prior to its
acquisition by KDR.

Currently, as an AM for KDR, I feel that I can be involved in thework that is unique to real estate, which is a real asset.
Ota: Conversely, I was interested in urban development and waslooking in the real estate industry, focusing on developers, In theend I was attracted by KDX's business, which also has a financial
aspect. In this sense, I was also involved in the public offering as a
■ Tokyo 23 wards 43.3％
member of the Strategic Planning Department. I find this finance■ Other Tokyo Metropolitan Area 37.1％
related work to be truly fulfilling.
■ Other Regional Areas 19.5％
Nakada: KDX is the largest independent real estate asset
Note 1: "Other Tokyo Metropolitan Area" includes Tokyo other than the 23
management company (Note: as of April 2020) and owns a wide
wards of Tokyo, Kanagawa, Saitama and Chiba.
variety of assets, public REITs, including KDR, private REITs, andNote 2: “Other Regional Areas” include government-designed municipalities
private funds, so I thought that I would be able to experience aand other regional cities.
wide range of operations related to real estate and investment.
Working from home has been an option for us from the▶ In terms of operations, it seems that you have all been
moment we joined the company. Considering there is a trend
able to steadily accumulate experience quickly after joined thewhere living needs are becoming decentralized from urban
company, but how is KFM's workplace environment?
centers to surrounding areas due to the popularization of
Nakada: I feel that the company has a corporate culture of
telecommuting and other factors, we have considereddelegating tasks to younger employees, and I also feel that it is anacquiring properties in areas such as Mizonokuchi. (Chart1)
At present, investment yields are tight, so we are in a tough environment in which everyone is friendly and cooperative. My
acquisition environment for REITs. Instead of giving up superiors also advise me in an easy-to-understand and polite
immediately, I try to engage myself in acquisition work while manner. As I mentioned above, there are some acquired properties
thinking about how to acquire properties that will contribute for which I was also in charge as my main role as a new employee,
and I feel fulfilled by the job I was able to conduct with theto the growth of KDR.
Ota: I was mainly in charge of preparing press releases on cooperation of my boss. One of the most impressive jobs I ‘ve
property acquisition and issuance resolution, etc. and been a part of so far is the acquisition of KDX Residence Ichikawa.
contracts and documentation necessary for public offering. This was the first property I was the lead on, and carrying out the
The Strategic Planning Department also provided support for investment was very difficult. On the other hand, I was involved in a
the preparation of securities registration statements and transaction with an amount of 840 million yen, so I felt a sense ofprospectuses under repeated discussions with related parties accomplishment. I was also pleased that I was able to contribute toin order to communicate the significance of the public the growth of KDR.
offering and KDR‘s future growth strategy to investors Oki: Other than what we've talked about so far, everyone is friendly
accurately and easily. This task involves not content but rather when asking questions or talking, and I think the KFM officedesign, and I felt happy that my proposals were adopted. features a very quiet working environment. It was a bit of a surprise
One of the ideas I proposed is the diagram representing the at first, but now I can concentrate closely on my work.
“positive spiral” that KDR is aiming at. Originally, the Ota: It may sound cliche, but the office is clean and well equipped,
design was simple, but I modified it to convey in a more so it offers a pleasant work environment. I also like the scenery ofvisual manner that KDR will grow further in the future while Hibiya Park. As Mr. Nakada and Mr. Oki said, even new employees
riding a virtuous cycle starting from improvement of credit can gain a lot of experience. In addition, our superiors come from avariety of backgrounds and support us, so we are able to operate
rating. (Chart2)
KDR's credit rating was upgraded to "AA-" in January this year the REIT appropriately.
on the back of its stable management performance and a
new support structure from SMFL Group. We believe that our
Message to investors
investor base will expand and our capital and debt costs will
decrease in the future. In addition, the investment ▶ Please give a few words to our investors.
corporation aims to realize a virtuous cycle in which it further
Oki: While my immediate goal is to become a full-fledged
reduces funding costs and pursues continuous growth byprofessional of asset management, I would like to conduct myenhancing liquidity of investment units through further
work in consideration of maximizing the profitability of properties
expansion of asset size and market capitalization andwith the aim of increasing unitholder value.
becoming a component of a major index. My next task will be
to arrange IR meetings to explain our financial results for the Nakada: With the impact of the COVID-19 pandemic, changes in20th fiscal period and the management status of our the social and economic structure these days have been
properties. We plan to conduct proactive IR activities so that remarkable. We will continue to flexibly grasp the needs of society
we can realize the expansion of our investor base, which is and work diligently to grow into an investment corporation that is
one of the steps in the positive spiral.
needed by society and that can maximize the interests of ourunitholders.
Chart 2
Area breakdown of residential properties acquired
Chart 1(planned) after the fiscal year ended July 2018(acquisition (planned) price)

Positive spiral for further
growthOta: As a member of the department that delivers information on
KDR to unitholders through IR, financial materials, and press
releases, I will strive to further convey the information thatunitholders seek and the attractiveness of KDR. I appreciate yourcontinued support.
Thank you for reading!

Reason for joining the company and KFM's work
environment▶ Please tell us your reasons for joining the company.
Oki: I was originally interested in investment in financial
instruments such as stocks and bonds, but in my time
searching for a job I became strongly attracted to fundmanagement, the investment target of which is real estate as areal asset.

3Introduction of Newly Acquired Properties
FeatureT-102 KDX Residence Yokohama Momijizaka
Location

Yokohama, Kanagawa

Acquisition Price ￥5,000 mil
Completion

February 2021
YokohamaLandmark
Tower

KDX Residence
Yokohama Momijizaka

Kamonyama Park
Kanagawa Prefectural Music Hall

ColetteMare

Kanagawa Prefectural
Youth Center

A newly built luxury rental residence that connects
the history of both new and old Yokohama

The is a newly built property targeting families, completed
in February 2021. In March 2021, it started to be rented
out. The property features luxurious condo-styleapartments with floor plans ranging from 2LDK to 3LDK. In
addition to stable rental demand from married couples
and families who commute to urban centers, rental
demand from people with new lifestyles that emphasize
the number of rooms is also expected due to the
popularization of working from home.

Achieving a balance between quiet location andconvenient connectivity
The property is located in a prestigious neighborhoodwith scarce, well-balanced locality providing a quiet
residential area, heritage sites such as the Ruins of
Kanagawa Magistrate's Officeand Kamonyama Park andexcellent connectivity to the
Minato Mirai area in the heart of
Yokohama at within walking
distance.
Statue of Naosuke Ii
Important cultural facilities offer(Kamonyama Park)an excellent living environment.

OthersT-100

KDX Residence
Kamishakujii II

Nerima, Tokyo
Location
Acquisition￥3,087 mil
PriceCompletion October 2020

T-101

KDX Residence
Tsudanuma

Location Funabashi, Chiba
Acquisition￥1,150 mil
PriceCompletion March 2012

Sakuragicho
Station

These facilities include the Kanagawa Prefectural
Library, Kanagawa Prefectural Music Hall andYokohama Noh Theater, etc. in addition to nurseryschools, elementary schools, parks, as well as
convenient facilities such as supermarkets andrestaurants in the surrounding area.

Convenient access to major stations and Haneda
airportFrom the nearest station, Sakuragicho on the JR line, ittakes about 3 minutes to Yokohama Station, about 40
minutes to Tokyo Station, and similarly, 31 minutes atthe earliest from Minatomirai Station on the
Minatomirai Line to Shibuya Station without changing
train. Accordingly, it has excellent access to urban
centers. The Yokohama City Air Terminal (YCAT),
located near Yokohama Station,
provides access to
Haneda Airport in
24 minutes at theearliest via airport
limousinebus. T-102
The location ishighly convenientfor domestic andoverseas travel.
■ Residential properties
H-27 Grapes Kawasaki

Shimmachi

H-28■ Healthcare facilities

GrapesFujimino

Fujimino, Saitama
Location Kawasaki, Kanagawa
Location
Acquisition
Acquisition￥1,470 mil￥1,520 mil
Price
Price
Completion March 2015
Completion October 2013
Operator

SOMPO care

Operator

SOMPO care4Introduction of Newly Acquired (planned) Properties
T-105

KDX Residence Hachioji Otsuka
Location

Hachioji, Tokyo

Acquisition Price ￥1,490 mil
Completion

February 2022

The operator is National
Students Information Center Co.,
Ltd., which has a wealth ofexperience in management ofstudent accommodations.

A newly built student dormitory with excellent accessto multiple universities

Attractiveness of investingin student dormitories

This property is a student dormitory that newly opened in
March 2022. In addition to studio-type rooms, it isequipped with common facilities such as a dining hall anda lounge and offers a comfortable living environment witha full range of services including the provision of meals.
It is located about 5 minutes on foot from the nearest
station, Otsuka-Teikyo-Daigaku Station on the Tama Toshi
Monorail Line. The area around the property boasts
proximity to supermarkets and restaurants. In addition, it
has excellent transportation convenience with TamaCenter Station and Tachikawa-Minami Station at 4
minutes and 18 minutes away, respectively, providing
multi-directional transportation access. There are several
universities in the vicinity, including Teikyo University,
Chuo University, and Meisei University, and stable rental
demand from students studying at nearby campuses is
expected.

●●

Others for 21st fiscal period (planned)
T-103 KDX Residence Umejima

The student population is expected to remain
stable in the future in response to factors such as
the desire to acquire an academic backgroundtaking root over the long term, increase in thenumber of female students and foreign students,
as well as increase in the number of universities
and graduate schools. In addition, demand forstudent accommodations is also expected to berobust due to the high demand for security andstudent-to-student connections.
It is a solid and defensive asset type that is lesssusceptible to economic fluctuations given strong
demand from students backed by the presence of
the universities. In addition, by entering into longterm, fixed-rent building lease contracts with
operators, stable returns are ensured.
■ Residential properties

H-31 Excellent Takarazuka Garden Hills

Takarazuka, Hyogo
Location
Acquisition￥2,340 mil
Price(planned)
Completion June 2021
Excellent care system
Operator

Adachi, Tokyo
Location
Acquisition￥2,373 milPrice(planned)
Completion September 2021

Serenite
Koshien Plie

T-104

KDX Residence
Mizonokuchi

Location

Kawasaki,Kanagawa

Location

Acquisition
Price(planned)
Completion￥2,781 mil

Acquisition
Price(planned)
Completion

March 2021

R-４７

Nishinomiya,
Hyogo￥770 milJuly 2021■ Healthcare facilities

H-29

Irise Kobe
Rokko

Location
Acquisition
Price
Completion
Operator

Kobe, Hyogo￥1,200 mil
February 2017
HITOWA careservice

H-30

Excellent Hanayashiki
Garden Hills

Location
Acquisition
Price
Completion

Takarazuka, Hyogo

Operator

Excellent care system￥1,287 mil
April 20175

Sustainability

Initiatives for Environment

GRESB Real Estate Assessment

DBJ Green Building Certification（Note 1）

12 residential properties are certificated. (Obtained reassessment
for 3 properties in December 2021 and January 2022)
Serenite Kobe
Motomachi
Reacquisition
Dec. 2021

KDX Residence
Shukugawa Hills
Reacquisition
Dec. 2021

KDX Residence Toyosu

KDX Residence
Ebisu
Reacquisition
Jan. 2022

KDX Residence Ohori
Harbor View Tower

KDX Residence Yotsuya

KDX Sakaisuji Hommachi
Residence

Ashiya Royal Homes

KDX Residence
Hommachibashi

KDX Daikanyama
Residence

The Investment Corporation participatesin GRESB Real Estate Assessment andacquired “Green Star” rating for four
consecutive years and “2 Stars”ratingin 2021.

KDX Residence Hanzomon

GRESB (Ex Global Real Estate
Sustainability Benchmark) is abenchmark to evaluate sustainability
performance of private and listed realestate portfolio, etc. fromenvironmental and social perspectives.

KDX Residence Higashi SakuraⅠ

CASBEE certification（Note 2）
KDX Residence Toyosu acquired the CASBEE Real Estate
Evaluation Certification "S Rank" in December 2021.

Support for TCFD recommendation and affiliation
to the local consortium（Note 3）
KFM has declared support for the TCFD and its recommendations andJoined TCFD Consortium of Japan since October 2021.

Note 1: “DBJ Green Building Certification” is a system established by Development Bank of Japan to support real estate that meets environmental
and social conditions.
Note 2：CASBEE is an evaluation system for rating the environmental performance of buildings developed by Institute for Building Environment andEnergy Conservation. The system rates the overall environmental performance of buildings from the following perspectives: evaluation ofenvironmental quality and performance of buildings themselves and the external environmental load of buildings.
Note 3：TCFD is an international initiative established by the Financial Stability Board (“FSB”) for the purpose of discussing the disclosures ofclimate-related financial information and the responses by financial institutions.

Initiatives for GovernanceInitiatives for Social
Social impact investment
In Healthcare facilities

Lack of healthcare facilities is now one of the majorsocial issues facing Japanese “super-aging” society.
REIT as a buyer and as a long-term investor is
expected to lead market supply. The Investment
Corporation continues to fulfill this societal duty byacquiring the healthcare facilities.
In Childcare facility
The social demand for childcare
facilities is increasing to promotebirth-rate increase. KDR contributes
to solve fertility decline issue,
investing in the childcare facilities.

Organizational Change

Corresponding to the diversification of J-REIT Management

Grapes Kawasaki
Shimmachi（The ground floor of
the Property hosts
daycare）■ The Asset Management Company integrated the Asset
Investment Division and investment teams in the Investment
Management Division and Planning Division at each REIT
department into the Acquisition Department and Strategic
Planning Department, which are common to the REIT
departments.
■ The Asset Management Company aims for further growth of
the investment corporation, responding to ever-diversifying JREIT management by promoting effective human resources
development and allocation and increasing the efficiency ofthe overall business structure.

Newly developed corporate Sustainability and ESG
structure■ In order to build a system that can respond more
effectively and efficiently to increasingly important ESG andsustainability issues through cross-organizational efforts by
In student dormitory project
KFM, KFM will newly create Sustainability Office in theStrategic Planning Department.
We believe that student■ Attritionary, KFM newly created Sustainability Committee,
accommodations which offer safe
which are common to the Departments and chaired by theliving environment and provide
President and Representative Director of KFM, as an advisory
mental health support contribute to
KDX Residence
organ regarding matters relating to sustainability and ESG of 6
the society, developing the next
Tsudanuma
KDR and KFM, in order to enhance our business management
generation.
（Student Accommodation） system further by the Organizational Change

Overview of Portfolio

Percentage
of properties
owned byarea

Hokkaido

7 props. 2.8％

Aomori・Akita：Residential Properties：Healthcare Facilities：Accommodations

2 props. 0.8％

Osaka Metropolitan Area

Total

Osaka, Kyoto, Hyogo, Shiga

172 props.

35 props.
22.5％

Miyagi3 props. 1.0％
Fukuoka

6 props.

Tokyo Metropolitan Area

3.5％

Tokyo, Kanagawa, Saitama, Chiba
Aichi

112

props. 65.9％

6 props.
3.4％

Hiroshima

1 props. 0.2％
Portfolio breakdown
Residential Properties
FamilyStudio

22.4%

41.8%

Healthcare Facilities
Nursing and health facilities

17.5%

Room
Type

Serviced senior
housing

Small Family

Use

35.8%

Private senior homes(residential)

23.9%

73.5%

69.9%
Other Regional
Areas

9.2%

Others
2.1％

Tokyo
Osaka
Metropolitan
Metropolitan
Area
Area
Area

Tokyo Central
8 Wards

Other Tokyo
Area 33.9%
Metropolitan Area
15.7%
Tokyo Metropolitan
Tokyo 23 Wards
Area

Private senior homes(with nursing care)

6.0%

EntirePortfolio

Other
Regional Areas

26.5%

Facility
Type

6.6%

Three Major
Metropolitan Area

50.6%

38.1%

88.7%

(Note ) The percentages are based on the acquisition price including assets to be acquired as of April 15, 2022.

7

Investment Unit
Investment Unit Price (After Announcement of the Merger)
As of January 31, 2022

240,000

TSE REIT index

KDR unit price(yen)
260,000

Nov.10, 2017
Announcement ofmerger
Jul.13 , 2018
Announcementof the 4th PO

220,000
200,000

TSE residential REIT index

Sep.7 , 2018
Announcement
Feb.4 , 2019
Announcement of the 5th PO

Feb.10 , 2020
Announcement of the 6th PO■ Volume (Right axis)(Unit)

Feb.15 , 2021
Announcement of the 7th PO

45,00040,00035,00030,000Mar.1 , 2018
Completion ofmerger

180,000

25,00020,000160,000
15,000140,000

10,000120,000

100,000

Note 1:
Note 2:5,000
0Nov. 10 Jan. 102017 2018

Jul. 102018

Jan. 10
2019

Jul. 102019

Jan. 10
2020

Jul. 102020

Jan. 102021

Jul. 102021

Jan.102022

KDR investment unit price and TSE Residential REIT index are based on the closing price. For the TSE Residential REIT in dex, an
index based on the November 10, 2017 closing prices of this index and KDR investment units is used.
KDR implemented a two-for-one split of the investment units as of the record date of February 28, 2018 (Effective date o n March
1, 2018). The above figures for the unit price before the split are those calculated by dividing the actual unit price by tw o.

Composition of Unitholders (based on number of units)■ Individuals and others ■ Financial institutions■ Foreign companies■ Other domestic companies ■Security firms

20th Fiscal Period 6.7%

67.0%

17.9%

4.1 % 4.3%

19th fiscal Period

69.1%

16.8%

4.1 % 3.5%

995,883 units
995,883 units

6.6%

The Investment Corporation discloses a variety of information on its website, including press
releases, financial results, property information and IR event information. The Investment
Corporation will continue to make efforts to provide information to its unitholders in a timely
manner.
https://www.kdr-reit.com/en/
8

Unitholders benefit programs

Haseko Senior Well Design Co., Ltd.（1）Sompo Care Inc.

Benefits ・One-day facility site-visit (with lunch) free of charge
Unitholder and his / her spouses and his / herrelatives (within the second degree) ※A resident of
the requested healthcare facility and a use inconjunction with other discount systems are ineligible.
All of the private seior homes with nursing care andFacilities serviced housing for the elderly operated by Haseko
Available
Senior Well Design Co., Ltd. as of January 31, 2022.
Eligible
PersonBenefits

The No. of 35 facilities
Facilities
Area

Tokyo, Saitama, Kanagawa, Chiba,Shizuoka, Aichi,
Kyoto, Hyogo, Osaka

Contact+81-120-580-731
No.
Property N/Aowned by
KDR

Eligible
PersonHomepage https://www.haseko-senior.co.jp/

SENIOR LIFE COMPANY
・≪On the condition of limp sum payment≫
Discount on one-time payment for resident
Benefits( ¥ 300,000 discount)・Trial residence free of charge (1-night, 2-day stay,with dinner and breakfast)・Same-day facility site-visit (with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility and a
use in conjunction with other discount systems are
ineligible
All of the private senior homes with nursing care andFacilities
serviced senior housing operated by CENTURY LIFE
Available
CORPORATION as of January 31, 2022.
The No. of
5 facilities
Facilities
Eligible
PersonArea

Tokyo, Fukuoka

Facilities
Available

Ⅰ. Sompo Care LAVIERE・ ≪ On the condition of lump sum payment ≫ 3%
discount from the initial lump sum payment forresident・ ≪ On the condition of monthly payment ≫ 3%
discount of the amount equivalent to the rent outof the monthly payment (Until the contract ends)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo
no ie GH, Private senior homes (residential),
Serviced senior housing, Group homes
・3% discount of the amount equivalent to the rentout of the monthly payment or of the rent (Until
the contract ends)
Unitholder and his / her spouses and his / herrelatives (within the second degree)※A user who has inquired this benefit throughagencies, a resident of the requested healthcare
facility and a use in conjunction with other discountsystems are ineligible.
Ⅰ. Sompo Care LAVIERE operated by Sompo Care Inc
as of January 31,2022. (Excluding short-term use)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo
no ie GH, Private senior homes (residential),
Serviced senior housing, Group homes operated by
Sompo Care Inc. as of January 31, 2022.
(Facilities for short-term use and Facilities operated by
its franchisees and operating partners are
excluded.)

The No. of
433 facilities
Facilities
Hokkaido, Iwate , Miyagi, Akita, Saitama, Chiba,
Tokyo, Kanagawa, Shizuoka, Aichi, Kyoto, Osaka,
Area
Hyogo, Nara, Okayama, Hiroshima, Fukuoka,
Kumamoto
Contact+81-120-37-1865
No.
Property
Sompo Care LAVIERE Kobe Tarumi, Grapes Kawasaki
owned by
Shimmachi, Grapes Fujimino
KDR
Homepage https://www.sompocare.com/

Contact+81-120-678-723
No.
Property
owned by N/A
KDR
Homepage https://www.felio.life/

HITOWA Care Service Co., Ltd.

Excellent Care System Co., Ltd.
Benefits
Eligible
PersonFacilities
Available

・ One-day facility site-visit(with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility anda use in conjunction with other discount systems
are ineligible.
All of the private senior homes with nursing care
operated by Excellent Care System Co., Ltd. as ofJanuary 31, 2022.

The No. of
19 facilities
Facilities
Area

Tokyo, Kanagawa, Kyoto, Hyogo, Tokushima

Contact+81-44-819-5107
No.
Property
Excellent Nishinomiya, Excellent Kitano, Excellent
owned by
Hanayashiki Garden Hills
KDR
Homepage https://www.excare.co.jp/

Benefits

・Discount on usage charge for two-monthequivalent

Eligible
PersonUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility andan application through agencies are ineligible

Facilities
Available

All of the private senior homes with nursing care
operated by HITOWA Care Service Co., Ltd as ofJanuary 31, 2022.

The No. of
117 facilities
Facilities
Area

Hokkaido, Miyagi, Saitama, Chiba, Tokyo, Kanagawa,
Nagano, Aichi, Shiga, Hyogo, Okinawa

Contact
No.

+81-120-12-2943

Property
owned byKDR

Irise Kamata/Yuseien , Irise Nishioka,
Izarie Eniwa Building, Irise Kobe
Rokko

Homepage https://www.irs.jp/
9Nichii Carepalace Company
Benefits

Eligible
PersonFacilities
Available

The No. of
Facilities
Area

・Discount on initial move-in costs
Nichii home: ¥ 100,000, Iris Garden: ¥ 50,000(tax included)
Unitholder and his / her spouses and his / herrelatives (within the third degree)※A user who has inquired this benefit throughagencies, a resident of the requested
healthcare facility of Nichii home or Irisgarden, and an use in conjunction withother discount systems are ineligible.
All of the private senior homes with nursing
care operated by Nichii Carepalace Company
as of January 31, 2022.
※Excluding facilities that are no longer
operated by Nichii Carepalace Company due
to a change in operator after January 31,
2022
81 facilities
Tokyo, Saitama, Chiba, Kanagawa, Shizuoka

Contact No.

+81-120-555-800

Property
owned by
KDR

Nichii Home Nakano-Minamidai, Nichii Home
Tama Plaza

Homepage

http://www.nichii-carepalace.co.jp/

Sawayaka Club Corporation

・ 10% discount on usage charge for the firstmonthly payment.
・Trial residence free of charge (1-night, 2-day
stay, with dinner and breakfast)・ One-day facility site-visit(with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)
Eligible※A resident of the requested healthcare facility
Personand a use in conjunction with other discountsystems are ineligible.
All of the private senior homes with nursing care
Facilities
operated by Sawayaka Club Corporation as of
Available
January 31, 2022.
The No. of
74 facilities
Facilities
Hokkaido, Akita, Tochigi, Saitama, Chiba,
Area
Kanagawa, Niigata, Shizuoka, Aichi, Mie, Kyoto,
Osaka, Hyogo, Ehime, Wakayama, Fukuoka, Oita
Contact+81-120-958-490
No.
Property
owned by Sawayaka Sakura Nibankan
KDR
Homepag
http://www.sawayakaclub.jp/
e

CARE TWENTYONE CORPORATION
Benefits
Eligible
PersonFacilities
Available
The No. of
Facilities
Area

・ One-day facility site-visit(with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility
is ineligible and a use in conjunction withother discount systems are unavailable.
All of the private senior homes with nursing care
operated by Care twenty one Corporation as ofJanuary 31, 2022.
45 facilities
Miyagi, Tokyo, Saitama, Chiba, Kanagawa, Aichi,
Kyoto, Osaka, Hyogo, Hiroshima, Fukuoka

Contact No.

+81-120-944-821

Property
owned by
KDR

Plaisant Grand Ota tamagawa

Homepagehttps://www.care21.co.jp/

NM LIFE Co., Ltd.
Benefits

Eligible
PersonFacilities
Available
The No. of
Facilities
Area

・Discount on lump sum payment for resident (¥200,000 discount)・Trial residence free of charge, up to three times(1-night, 2-day stay, with dinner and breakfast)・ Same-day facility site-visit(with lunch) free ofcharge (up to three times)
Unitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility
and a use in conjunction with other discountsystems are ineligible.
Joy Stage Hachioji
1 facility
Tokyo

Contact No.

+81-120-38-0161

Property
owned byKDR

Joy Stage Hachioji

Homepagehttps://joystage.com/(Note1） CENTURY LIFE CORPORATION and Seikatsu Kagaku Un-Ei Co., Ltd. merged with the parent company, Haseko Senior
Holdings Co., Ltd. as of October 1, 2021 and the company name was changed to Haseko Senior Well Design Co., Ltd.
(Note 2) The area and the number of facilities are as of January 31, 2022.
(Note 3) There may be restrictions on trial residence and facility tour due to the operating condition of operators.
(Note 4) In the case of private senior homes with nursing care, those who are not required for nursing care may not be able to use this
Unitholder Benefits Program .
(Note 5) It may be necessary to consult with a care manager and take a medical checkup before trial residence.

10

Unitholders benefit programs
Through the utilization of the Unitholders’ Benefit Program, KDR hope that the unitholders and theirfamilies will be able to realize healthy longevity.

General Outline of the Unitholder Benefit Program1

Eligible
Unitholder

2 Contents
3

4

Method for
the Use of
Benefits
Validity
PeriodUnitholders stated or recorded on the unitholders’ register of the Investment
Corporation as of January 31, 2022 are eligible for the unitholder benefit program.
Unitholders owing more than 1 unit will be entitled to the benefits as described
previous page.
Please present Semi-annual Report for the fiscal period ended January 2022
(20th fiscal period) and the paper setting forth the name, address, etc. of theunitholder or dividend receipts, which are enclosed in the Semi-annual Report,
to the healthcare facility.
October 31, 2022

Q&A
Q At which facilities will I be eligible for benefit programs?
Facilities offering programs are shown on the list, but applicable facility types vary

About Benefit
program

A depending on each operator. Please call the operator to find out which facilities
offer benefit programs.

Q How can I check the details of benefit programs?
Details of benefit programs vary depending on each operator. Moreover,A there may be some restrictions to benefit programs due to the operational

status of facilities and such. Please call the operator to find out the details of
the benefit programs.

Q What are the procedures required to use the program?
Please call and tell the operator that you wish to use the “Unitholder

A Benefit Program.” You will be provided with detailed information onnecessary procedures.

How to use

Q What do I need to bring when using the program?
Please bring the document enclosed with this Semi-annual Report affixed

A with your address, name and other information. Some operators or

facilities may require additional confirmation documents. Please confirm
the details with the relevant operator.

Q Can I go directly to a facility when I want to see the facility or do a trial residence?
If you visit a facility without prior notice, they may not be able to respond to

A your request depending on the operational status or vacancy status. Pleasecall the operator in advance and receive instructions before a visit.

11

II.

Asset Management Report

1. Outline of Asset Management Operation(1)

Operating Result and Financial Position
Fiscal period

Unit

16th

17th

18th

19th

20th

From Aug. 1, 2019

From Feb 1, 2020

From Aug. 1, 2020

From Feb. 1, 2021

From Aug. 1, 2021

to Jan. 31, 2020

to Jul. 31, 2020

to Jan. 31, 2021

to Jul. 31, 2021

to Jan. 31, 2022

Operating result

Operating revenues

mil.yen

8,066

8,374

8,382

9,195

9,143

(Rental revenues)

mil.yen

8,027

8,289

8,382

8,758

8,962

Operating expenses

mil.yen

3,806

3,904

4,038

4,373

4,302

(Expenses related to rent business) mil.yen

2,911

3,005

3,060

3,333

3,257

Operating income

mil.yen

4,260

4,469

4,344

4,822

4,840

Ordinary income

mil.yen

3,614

3,808

3,632

4,147

4,119

Net income

mil.yen

3,613

3,808

3,631

4,146

4,119

Total asset

mil.yen

256,665

272,960

283,172

293,176

302,410%（＋0.7）（＋6.3）（＋3.7）（＋3.5）（＋3.1）

Interest-bearing debt

mil.yen127,650

135,050

145,220

146,920

155,820

Unitholders’ equity

mil.yen

118,500

127,457

127,132

135,218

135,790(period to period change)Asset(period to period change)

Distribution per unit%（-0.0）（＋7.6）（-0.3）（＋6.4）（＋0.4）

Unitholders’ capital

mil.yenmil.yen108,550
3,867

116,322
4,100

116,322

Total distribution

108,550
3,866
101.5

106.5

98.9

99.1

951,258

951,258

995,883

995,883

Dividend payout ratio (Note 2)%

99,731
3,687
102.1

Number of investment units issued
and outstanding

unit

907,458

Net income per unit (Note 3)

yen

3,981

4,028

3,817

4,189

4,136

Unitholders’ equity per unit

yen

130,584

133,988

133,646

135,777

136,352

Distribution per unit

yen

4,064

4,065

4,066

4,117

4,101

Profit distribution

yen

4,064

4,065

4,066

4,117

4,101

Distribution in excess of profit

yen

－

－

－

－

－

Return on assets (Note 4)

%

1.4

1.4

1.3

1.4

1.4

Annualized (Note 5)

%

2.8

2.9

2.6

2.9

2.7

%

3.0

3.1

2.9

3.2

3.0

%

6.0

6.2

5.7

6.4

6.0

46.2

46.7

44.9

46.1

44.9

（-0.3）（＋0.5）（-1.8）（＋1.2）（-1.2）

%

49.7

49.5

51.3

50.1

51.5

mil.yen

5,023

5,218

5,165

5,291

5,556

yen

5,536

5,486

5,430

5,313

5,579

mil.yen

6,545

6,751

6,825

6,971

7,295

%

5.5

5.4

5.2

5.3

5.2

mil.yen

5,888

6,235

6,347

6,346

6,655

Return on net assets(Note 6)

Annualized (Note 5)
Net asset ratio
Financial indicator(period to period change)
Interest-bearing debt ratio on assets(Note 7)%

4,084

(Note 8)FFO
(Funds from Operation)
FFO per unit (Note 9)(Note10)

Leasing NOI(Net Operating Income)Annualized NOI yield (Note 5,11)(Note 12)

Leasing NCF(Net Cash Flow)

Annualized NCF yield(Note 5,13)

Number of properties

%

5.0

5.0

4.9

4.8

4.8

properties

144

151

157

161

165

Reference

Leased units (Residential)

unit

8,148

8,319

8,755

9,027

9,250

Total leasable floor area (Note 14)m²

490,988.55

503,721.25

516,871.89

525,995.20

543,473.29

Occupancy ratio (Note 14)

%

97.6

96.8

96.2

97.4

97.3

Depreciation expenses

mil.yen

1,428

1,467

1,504

1,546

1,589

Capital expenditures

mil.yen

656

515

478

625

639

(Note 1)
(Note 2)

Figures are rounded down to the nearest unit. Ratios are rounded off to one decimal place
Dividend payout ratio＝Total distribution(excluding Distribution in excess of profit)/Net income×100
12(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)
(Note 12)(Note 13)
(Note 14)“Net income per unit” are calculated by dividing the net income with weighted average unit based on days.
Return on assets ＝Net income /｛(Total assets at the beginning of period + Total assets at the end of period)/2｝×100
Annualized values for the 16th fiscal period are calculated based on a period of 184 days, 182 days for 17th fiscal period, 184 days for
18th fiscal period, 181 days for 19th fiscal period, 184days for 20th fiscal period.
Return on net assets ＝Net income / {(Total net assets at the beginning of period + Total net assets at the end of period) /2} ×100
Interest-bearing debt ratio of assets ＝Interest-bearing debt at the end of period / Total assets at the end of period×100
FFO＝Net income + Depreciation expenses + Amortization of deferred assets - Gain on sale of real estate property + Loss on sale of realestate property.
FFO per unit ＝FFO／Number of investment units issued and outstanding(rounded down to unit)
Leasing NOI＝Rental revenues －Expenses related to rent business＋Depreciation expenses
Annualized NOI yield＝Annualized NOI／Total acquisition prices of properties ×100
Leasing NCF＝ Leasing NOI－Capital expenditures
Annualized NCF yield ＝Annualized NCF／Total acquisition prices of properties ×100
Figure and ratio include for land with leasehold interest.

13

（2）Outline of Asset Management Operation for the 20th Fiscal Period(ⅰ) Outline of the History of the Investment Corporation
Kenedix Residential Next Investment Corporation (the “Investment Corporation”) was established on November
15, 2011 under the Act on Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”).
On April 26, 2012, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange (Securities Code: 3278).
The Investment Corporation subsequently issued new investment units through three public offering and by wayof third-party allotment to steadily grow its asset size through continuous investment in rental housing, which is its
primary investment target.
Moreover, seeking further growth opportunities, the Investment Corporation conducted an absorption type merger(“the Merger”) with the Investment Corporation as the surviving corporation and Japan Senior Living Investment
Corporation (“JSL”) as the absorbed corporation on March 1, 2018, and changed its name from Kenedix Residential
Investment Corporation to Kenedix Residential Next Investment Corporation.(Following the merger, theInvestment Corporation implemented a 2-for-1 investment unit split with an effective date of March 1, 2018.)
Even after the merger, the Investment Corporation procured funds on a regular basis and pursue sustainable growth
opportunities by investing in rental housing, senior homes, hotels, etc. As of the end of the 20th fiscal period, theInvestment Corporation owns a total of 165 real estate properties (total acquisition price: 277,569 million yen (Note))
consisting of 135 residential properties such as rental housings, 28 healthcare facilities such as private senior homes
with nursing care and 2 accommodation facilities such as hotels and the total number of investment units issued
and outstanding is 995,883 units. Most recently, the Investment Corporation procured funds by issuing newinvestment units in February and March and achieved further increase of market capitalization and steady growthof AUM.
The Investment Corporation entrusts the asset management to Kenedix Real Estate Fund Management, Inc. (the“Asset Management Company”), a company that was formed with personnel from Kenedix, Inc. and adheres to thecore philosophies of Kenedix, Inc. The Asset Management Company provides real estate investment management
services with flexibility and agility by flexibly pursing optimal investment opportunities and income opportunities
and agilely investing and managing based on swift information gathering and decision-making while accurately
grasping real estate-related trends.
（Note）“Acquisition price” is the sales price of each trust beneficiary interest or real estate indicated in each trust beneficiary interest sales
contract and real estate sales contract concerning the owned assets (excluding acquisition costs, adjustment in property tax and cityplanning tax, and consumption tax) and is rounded down to the nearest million yen. The appraisal value as of March 1, 2018 isindicated as the acquisition price for assets succeeded by JSL due to the merger. The same applies hereinafter.

(ⅱ) Investment Environment
During the 20th fiscal period, the Japanese economy experienced a weakening private consumption due to the respreading of the COVID-19 at the beginning of the period, as well as a decline in automobile production and exports
affected by supply constraints due to the global shortage of semiconductors. However, since the lifting of the stateof emergency declaration, there have been signs of improvement, including a turnaround to positive GDP growth.
As for the economy going forward, various government policies to stimulate the economy are expected in parallelwith thorough measures to prevent the spread of infection and promote vaccination. However, it is still necessary
to keep a cautious and close watch on the trends of the global economy which has been affected by the spread of
the COVID-19, soaring resource prices and the emergence of geopolitical risks, as well as the possibility of future
volatility in the financial and capital markets, including the U.S. Federal Reserve's shift to a tighter monetary policy.
With regard to residential properties, one of the main investment targets of the Investment Corporation, the flow ofpeople from other regional areas to Tokyo metropolitan area has declined due to the spread of the COVID-19.
Within the Tokyo metropolitan area, the introduction of teleworking and other measures by companies has led to ashift in residential needs from being heavily concentrated in central Tokyo to being dispersed over a wider area,
and this is changing the rental market. As a result of these changes in the market environment, occupancy rates forsome rental housing in central Tokyo remained sluggish, but are now gradually regaining strength. On the other
hand, occupancy rates of some rental housing in the suburbs of central Tokyo and other regional areas are higher
than before the COVID-19 pandemic. As for the rental housing market in general, the impact of the COVID-19
pandemic has been minimal, and occupancy rates have remained steady. Regarding the rent, although the rate ofrent increase is decreasing, rents still continue to increase for properties especially in the suburbs of central Tokyoand for properties with larger unit types.
14

Concerning the environment surrounding healthcare facilities, with one of the longest average life expectancies forboth men and women, Japan now has a super-aging society (Note) which no other country has ever experienced, andthe “aging,” or the increase in the ratio of the elderly population against total population and the increase in elderly
population itself, is expected to continue going forward. In response to such trends, the number of senior carefacilities such as private senior homes with nursing care and serviced senior housing has been on the rise in recent
years. The Investment Corporation believes that demand for senior care facilities, including nursing care facilities,
will continue to increase. Even under the circumstances of the spread of the COVID-19, stable facility operations
have continued with infection prevention measures taken by the operators of each facility.
Demand for accommodation facilities has decreased substantially due to restrictions on entry into Japan fromoverseas and restrictions on movement within Japan in order to prevent the spread of the COVID-19. Toward theend of last year, the lifting of the state of emergency declaration led to a temporary recovery in demand foraccommodation, but the number of cases of COVID-19 is on the rise again, accommodation facility operators
continue to face a difficult operating environment. As the impact of the new coronavirus infection gradually eases,
accommodation demand is expected to recover, but it will take a certain amount of time to return to the situation
before the coronavirus disaster.
In the real estate investment market, some investors initially took a cautious stance toward real estate investment
due to the spread of the new coronavirus infection, but investors' willingness to invest in real estate is recovering
against the backdrop of accommodative monetary policies in Japan and overseas, and active transactions are
currently taking place. Expected yields on rental housing, which is the main investment target of the Investment
Corporation, remain low, and the environment for property acquisitions is expected to remain difficult.
(Note) “Super-aging society” refers to a society with a population aging rate (ratio of the elderly population aged 65 or over against total
population) exceeding 21%, as defined by the World Health Organization and the United Nations.

(ⅲ) Operating Results(A) Acquisition and Sale of Assets
The Investment Corporation comprehensively taking into account the composition of the entire portfolio,
earnings power in the future, etc., and the Investment Corporation acquired 5 properties in total (total acquisition
price:12,227 million yen), which includes acquisitions of 3 residential properties (total acquisition price: 9,237
million yen) and 2 healthcare facilities (total acquisition price: 2,990 million yen), and sold 1 residential property(acquisition price: 420 million yen / sale price: 580 million yen). In addition, the Investment Corporation acquired
a silent partnership interest (107 million yen) of GK Trinity 1 which manages total of 3 properties composed of
2 residential properties and a healthcare facility with aim to keep the opportunity for flexible growth andadditional revenues in the future.
＜Acquired assets＞

Property number
T-100
T-101
T-102
Residential
H-27
H-28
Healthcare

Property name
KDX Residence Kamishakujii II
Hulic Residence Tsudanuma
KDX Residence Yokohama Momijisaka
Subtotal
Grapes Kawasaki Shimmachi
Grapes Fujimino
Subtotal
Total

Acquisition price（million yen）（Note）
3,087
1,150
5,000
9,237
1,470
1,520
2,990
12,227＜Sold asset＞

Property number
T-44

Property name
KDX Residence Tobu Nerima

Sale price（million yen）（Note）
580(Note) “Acquisition Price” and “Sale Price” are the purchase or sales amount of each trust beneficiary interest (excluding acquisitionor sale costs, property tax, city planning tax or consumption tax, etc.) indicated in each trust beneficiary interest purchase orsales contract concerning the acquired assets and sold assets, and are rounded down to the nearest million yen.

As a result of the above, as of the end of the 20th fiscal period, the Investment Corporation owned a total of 165
properties (total acquisition price: 277,596million yen), which consist of 135 residential properties (acquisition15

price: 210,999 million yen), 28 healthcare facilities (acquisition price: 61,610 million yen) and 2 accommodation
facilities (acquisition price: 4,960 million yen).

(B) Management and Operation of Assets
With respect to residential, the Investment Corporation managed our real estate holdings with the aim of achieving
stable and optimal performance by working with a property management company (“PM Company”) that operates
and manages properties, which were selected through a multifaceted approach of taking into consideration theregion, location and city, rent range, tenant type (corporate or individual) and other various characteristics.
Moreover, the Investment Corporation strove to partner with leading real estate companies with a strong local
presence and bolster the PM Company’s efficient leasing activity. We also ensured that soliciting conditions took
into consideration the characteristics and occupancy levels of individual properties; carried out efficient advertisingefforts utilizing the power of the KDX Residence brand; utilized leasing agents; and implemented flexible sales
activities attuned to the characteristics of each of the properties in accordance with plans.
Specific measures that contributed to improvement in revenue at the rental business are as follows: with respect
to properties with stable and robust occupancy conditions, the Investment Corporation strove to raise rent levels
for and obtain key money from new tenants; raise rents when leases were renewed; increase revenue associatedwith auxiliary facilities; and improve the parking contract rate; and as measures to slash rental business expenses,
we reduced utility bills by switching the electricity supplier for common areas; changed the lighting in common
areas to LED; and reviewed the contracts for auxiliary facilities, as well as solicitation costs, etc., in order toimprove income and expenditures.
Moreover, with the aim of maintaining and/or improving the market competitiveness of our portfolio assets, theInvestment Corporation undertook planned major renovation work at five properties, updating work in common
areas as well as value-increasing work and facility updates in individually-owned areas.
The Investment Corporation continued to introduce LED lighting to common areas as part of our environmental
efforts and obtained 12 properties of DBJ Green Building Certification from external rating agencies in the end of
the 20th fiscal period (January 31, 2022).
As a result of the above, the occupancy rate for residential facilities was 96.1% as of the end of the 20th fiscal
period (January 31, 2022). The average occupancy rate for residential facilities during the 20th fiscal period was
96.3%.
As a specific measure contributing to the maintenance and improvement of revenue at the rental business forhealthcare facilities, the Investment Corporation usually visits facilities to confirm their operating status, including
revenues, expenditures, and occupancy rates, but the Asset Management Company minimized opportunities for
onsite visits to the facilities out of consideration for the spread of COVID-19 in this period too, and continued tomonitor operations of the managers by all possible means including online interviews about business conditions,future management policies, etc.
The Investment Corporation implemented necessary repair works with taking prevention measure for COVID-19
infection.
As a result of the above, the average occupancy rate for healthcare facilities was 99.9% and the occupancy rate asof the end of 20th fiscal period (January 31, 2022) was 99.9%. The occupancy rate for the entire portfolio was
97.3% as of the end of 20th fiscal period (January 31, 2022).
With regard to the hotels, the Investment Corporation will continue to operate them while keeping a close eye on
future economic trends, as the spread of the novel coronavirus has led to a significant decline in demand for lodging
both on business and vacation.

(C) Financing
The Investment Corporation procures funds with the aim of medium- to long-term stable earnings and sustained
growth of portfolio assets, taking into consideration the balance between financial stability and financing costs.

(Borrowing)
16

The Investment Corporation borrowed 9,900 million yen as funds for acquiring properties and 8,750 million
yen as funds for repaying borrowings due during the 20th fiscal period.
As a result of the foregoing, the balance of borrowings was 148,120 million yen, the balance of the interestbearing debt including the investment corporation bond was 155,820 million yen at the end of 20th period(January 31, 2022) and the average remaining term of interest-bearing debt (Note 1) was 4.1 years, and the averageinterest rate at the end of 20th fiscal period (Note 2) was 0.89%. The long-term debt ratio (Note 3) came to 85.7%,
the fixed interest-rate ratio (Note 4) was 97.0%, and the loan to value ratio (LTV) came to 51.5%.
(Note 1)
(Note 2)

(Note 3)(Note 4)

It is calculated by weighting and averaging the remaining term of each interest-bearing debt according to the balance ofeach interest-bearing debt and rounded off to decimal place.
The average interest rate of each interest-bearing debt was calculated taking into account the upfront fee (per annum) andinterest rate swaps, etc., and the weighted average was calculated in accordance with the balance of each interest-bearingdebt.
Long-term debt ratio = (balance of long-term borrowings (excluding long-term borrowings to be repaid within one year)+ balance of investment corporation bonds (excluding investment corporation bonds to be repaid within one year)) ÷(balance of borrowings + balance of investment corporation bonds)
The long-term debt ratio that includes long-term borrowings and investment corporation bonds to be repaid within one
year is 100%.
The fixed interest-rate ratio = (balance of fixed interest-ratio borrowings (including borrowings for which interest rates
are substantially fixed through interest rate swap transactions, etc.) + balance of investment corporation bonds) ÷ (balanceof borrowings + balance of investment corporation bonds)（Credit Ratings）
The status of the credit ratings as of the end of the 20th fiscal period (January 31, 2022).
Credit Rating Agency
Japan Credit Rating Agency, Ltd.(JCR)

Type
Long-term issuer rating
Bond rating

RatingAA-(Outlook : Positive)AA-（Shelf Registration）
The Investment Corporation filed a shelf registration statement regarding investment corporation bonds(excluding short-term investment corporation bonds) on June 26, 2020 with the following overview.
Planned issuance
100,000 million yen
amountPlanned issuance
From July 6, 2020 to July 5, 2022
periodFunds for acquiring specified assets (having the meaning as set forth in the Act on
Investment Trusts and Investment Corporations, Article 2, Paragraph 1); funds for
Use of proceeds
repaying borrowings; funds for redeeming investment corporation bonds (including
short-term investment corporation bonds); funds for returning deposits; funds forpaying for repairs and maintenance, etc.; operating capital, etc.
The Investment Corporation issued 1,700 million yen of the Seventh Series Bonds (Social Bond) on May 31,
2021 based on the above shelf registration.

(ⅳ) Overview of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues was 9,143
million yen, operating income was 4,840 million yen, ordinary income was 4,119 million yen and net income was
4,119 million yen for the 20th fiscal period.
In regard to profit distributions for the 20th fiscal period, pursuant to the distribution policy in the Investment
Corporation’s articles of incorporation, the Investment Corporation has decided to apply special provisions of thetax system for investment corporations (Act on Special Measures Concerning Taxation (Act No. 26 of 1957; asamended) (“Act on Special Measures Concerning Taxation”), Article 67-15) and to distribute 4,084,116,183 yen as
profit distribution from unappropriated retained earnings for the 20th fiscal period, which is the amount of the net
income excluding a part of gain on sale of real estate property, etc., plus the reversal of reserve for temporary
difference adjustment.
In the event that a gain on the sale of real estate, etc. occurs, the necessity of retaining the gain on the sale shall be17considered.

（3）Changes in Unitholders’ Capital
The changes in unitholders’ capital and number of investment units issued and outstanding for last five years are
as follows.

Date
March 1,2018
March 1,2018
August 1, 2018
August 29, 2018
February 20, 2019
March 11, 2019
February 26,2020
February 25,2021
March 9, 2021

Capital transaction

Number of investment units
Issued and outstanding
Increase
BalanceUnitholders’ capital(Million yen)
Increase
Balance

RemarkInvestment unit split
Merger349,089

698,178―

80,13284,750782,928―

80,132Public offering
Third-party allotment
Public offering
Third-party allotment
Public offering
Public offering
Third-party allotment

82,100865,028

12,47092,602

4,105

869,133

623

93,22636,500905,633

6,195

99,421

1,825

907,458309

99,73143,800951,258

8,818

108,550

42,500993,758

7,402

115,952

2,125

995,883370

116,322(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 1) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective dateas of March 1, 2018.
(Note 2) In connection with the Merger, the Investment Corporation unit following the Investment Unit Split was allocated to every JSL
unit with 84,750 JSL units newly issued on March 1, 2018.
(Note 3) New investment units were issued at a price of ¥157,047 per unit (subscription price of ¥151,892 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 4) New investment units were issued at a price of ¥151,892 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets and repayment of borrowings.
(Note 5) New investment units were issued at a price of ¥175,500 per unit (subscription price of ¥169,740 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 6) New investment units were issued at a price of ¥169,740 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets.
(Note 7) New investment units were issued at a price of ¥208,065 per unit (subscription price of ¥201,342 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 8) New investment units were issued at a price of ¥179,985 per unit (subscription price of ¥174,170 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 9) New investment units were issued at a price of ¥174,170 per unit through the third-party allotment in order to raise funds foracquiring new properties.

【Changes in Unit Price at Tokyo Stock Exchange 】
The highest and lowest closing prices of the investment units listed on J-REIT section of the Tokyo Stock Exchange
for each fiscal period are as follows.
Fiscal period
For the fiscal period ended
Highest price
Lowest price16th Fiscal period
January 31, 2020

17th Fiscal period
July 31, 2020
217,400

18th Fiscal period
January 31, 2021
198,000

19th Fiscal period
July 31, 2021
244,800

20th Fiscal period
January 31, 2022
239,000

225,500
191,400

106,900

168,600

177,300

192,900（4）Distributions
The Investment Corporation intends to apply the corporate income taxation special provision (Act on Special
Measures Concerning Taxation, Article 67-15) that specifies deduction of an amount equivalent to profit distributions
as deductible expenses from an investment corporation’s taxable income, and in accordance with the distribution policy
set forth in the Investment Corporation’s certificate of incorporation, Article 38 (1), has decided to distribute 4,084,116
thousand yen as profit distribution from unappropriated retained earnings for the 20th fiscal period, which is the amountof the net income excluding a part of gain on sale of real estate property, etc., plus the reversal of reserve for temporary
difference adjustment.
As a result, distributions per unit for the 20th fiscal period amounted to 4,101 yen.
Fiscal period

18th
19th
20th
16th
17th
From Aug.1, 2019 From Feb.1, 2020 From Aug.1, 2020 From Feb.1, 2021 From Aug.1, 2021
to Jan.31, 2021
to Jul.31, 2021
to Jan.31, 2022
to Jan.31, 2020
to Jul.31, 202018

Unappropriated retained
earnings
Retained earnings
Total distribution(Thousandyen)(Thousandyen)(Thousandyen)(Distribution per unit)(Yen)

Profit distribution(Thousandyen)(Profit distribution per unit)(Yen)

Unitcapital refunds(Thousandyen)(Unitcapital refunds per unit)(Yen)

Unitcapital refund from(Thousandretained earnings for temporaryyen)difference adjustment(Unitcapital refund fromretained earnings for temporary (Yen)difference adjustment per unit)
Unitcapital refunds fromdeduction of unitcapital undertax rules(Thousandyen)(Unitcapital refunds fromdeduction of unitcapital undertax rules per unit)(Yen)

4,072,277

4,212,398

3,997,276

4,296,284

4,335,589

404,367

365,534

149,461

216,234

271,473

3,687,909

3,866,863

3,867,815

4,100,050

4,084,116（4,064）（4,065）（4,066）（4,117）（4,101）

3,687,909

3,866,863

3,867,815

4,100,050

4,084,116（4,064）（4,065）（4,066）（4,117）（4,101）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

（5）Management Policy and Issues to Be Addressed
Outlook for Asset Management
The Investment Corporation primarily invests in residential facilities mainly such as rental housing, etc., andhealthcare facilities such as private senior homes with nursing care, based on the three core strategies: “Consistent
External Growth by Making Use of Good Judgment,” “Efficient Profit Management” and “Challenge to New
Business Opportunities.”
Going forward, the Investment Corporation will continue to seek maximization of unitholder value by evolving
into a REIT capable of adapting to change in social/economical structures and improving its “stability” and “ability
to pursue growth,” through diversified investment in “spaces where people live and stay” encompassing residential
facilities and healthcare facilities.
Based on the above two principal investment targets, the Investment Corporation newly added child-care facilities
as an investment target on September 12, 2019. As "spaces where people live and stay" they are considered to haveclose affinity with the residential facilities of the Investment Corporation. In addition, from the perspective ofachieving long-term stable rental revenues and steady growth in asset size, we changed the positioning of lodging
facilities, which we have come to recognize as having relatively high earnings fluctuation risk due to thedeterioration of the operating environment triggered by the spread of the new coronavirus infection, to a secondary
investment target in our portfolio construction policy as of October 27, 2021.

（A）New Property Acquisitions
The Investment Corporation will invest primarily in residential and healthcare properties “spaces where people
live and stay” as its target investments. In making investments, the Investment Corporation will stringently selectreal estate etc. where stable demand from tenants and users and long-term stable revenue flows can be projectedon the basis of an individual analysis of the attributes of a particular property, as well as regional analysis taking
into account location, etc.
In residential facilities, the Investment Corporation focuses on the potential earnings power of land and use“location prestige,” “location convenience” and “whether there is a special market” and other metrics to determine
investment opportunities providing rental income with medium- to long-term stability, and invests also in rental
residential facilities and other residential facilities located mainly in greater Tokyo and in Other Regional Areas
19

(government-designed municipalities and other regional cities. The same applies hereinafter.) by discerning room
types where stable rent demand can be expected, in accordance with the locational characteristics after analyzing
the attractiveness of the land in detail.
In healthcare facilities and accommodations, the Investment Corporation judges investment opportunity
considering scale and characteristic of market, regional financial affairs and status of competitive facilities, etc.
and examines investment mainly in three major metropolitan area.
The Investment Corporation believes that it will be possible to acquire properties steadily by utilizing the“judgment capabilities” cultivated as a real estate investment management professional to select excellent
investment opportunities from a wide range of investment targets.
As a property acquisition channel, the Investment Corporation use not only the pipeline from Kenedix, Inc and
Kenedix Investment Partners, Inc. pursuant to the Memorandum of Understanding concerning Real Estate
Information Provisions dated October 1, 2013 (including the change after the date and calls “Support Line MOU”.
This Support Line MOU was used for i) residential properties, ii) healthcare facilities as a main target, and iii)
accommodations iv) child-care facilities as a second target and Residential REIT department is applied for thosehaving a priority consideration right to responsible for the asset management of the Investment Corporation) but
also leverage the Asset Management Company’s own network, including Jyukyo Holdings Co., Ltd., with whicha support agreement was executed on June 15, 2017 and Shinsei Bank, Limited, HASEKO Corporation, andMitsubishi UFJ Trust and Banking Corporation, with which a support agreement was executed on November 10,
2017 by the Merger, for flexible property acquisitions. In October 2021, through an extension of the capital andbusiness alliance with Kenedix, the parent company of the Asset Management Company, the Asset Management
Company entered into a support agreement between Sumitomo Mitsui Finance and Leasing Company, Limited.
and SMFL Mirai Partners Company, Limited.
We also plan to control property acquisition timing in order to acquire properties at an advantageous timing inaccordance with the future market and financing climates, and we are considering investment in silent partnership
equities and real estate-backed securities (preferred securities, etc.).

（B）Management of Owned Assets
As residential facilities, with the goal of securing a rental income with medium- to long-term stability, PM
companies and the Asset Management Company work together to formulate leasing strategies in accordance withindividual property characteristics, and by closely allying with leading real estate companies experienced inregional rental markets, seek to maintain or improve occupancy rates and rent levels.
The Investment Corporation will also take into account the operation statuses of the properties and movementsof competing properties and seek to maintain or improve occupancy rates, raise rent levels at the time of tenantchanges, increase rent at the time of lease renewals, receive key money, reduce the time of vacancy, maintain or
improve lease renewal rates, and secure parking revenue and other auxiliary revenue and other income
opportunities to secure rent income.
The Investment Corporation will respond to requests from some tenants to reduce rents due to the Covid-19
appropriately, taking into account individual circumstances.
The Investment Corporation will further strive to cut down on restoration and other repair and maintenanceexpenses, review the electricity provider for common areas in connection with the liberalization of the electricity
market, cut costs through the use of LED lighting for common areas, and reduce tenant solicitation and othercosts.
The Investment Corporation will carry out strategic work to update common areas and enhance the value ofleased areas of the properties and continue implementing appropriate, major repairs, as necessary, while it seek
to maintain or enhance the market competitiveness of its assets.
As healthcare facilities, the Investment Corporation continues to monitor properly operational status of facilities
it owns and business status of operators by information about them and companies from operators, inspection ofoperating status and interview by visiting them and interview with managements in operating company, etc.
Considering results of monitoring, the Investment Corporation proposes to improve buildings, facilities andoperation and examines changing operators in case important issue occurs in succession of management in
operators. The Investment Corporation contracts Back-up operation conclusion with operators and support
20

companies in preparation of changing operators.
The Investment Corporation will manage to make internal growth by deepening relation with operators such as
value-ups based on proposal from operators and cooperation for resolving issues in operation.
The Investment Corporation will continue to monitor the impact of the Covid-19 on the lodging business, andwill take appropriate measures in consultation with operators to ensure the best possible outcome from a longterm perspective.

（C）Financing
The Investment Corporation will continue to pay close attention to changes in interest rates and otherdevelopments in the financing environment and will consider various options and choose optimal financing meansin order to achieve the optimal balance between financial stability and financing costs, and seek to build an
appropriate financial base.

（D）Disclosure of Information
The Investment Corporation’s basic policy for disclosure is to engage in proactive investor relations activities
to provide a broad range of information to investors and concerned parties and to quickly disclose accurate
information to the extent possible. Specifically, we practice appropriate disclosure though the Tokyo Stock
Exchange (TDnet registration and press releases) and through our website (https://www.kdr-reit.com/en).

（E）Conflicts of Interest
The Asset Management Company has established related-party transaction rules of the Residential REIT
Department and conducts management based on said rules upon transactions with related parties in the
management of assets of the Investment Corporation. The Asset Management Company is also entrusted withmanagement of other REITs of Kenedix group, and which may compete against the Investment Corporation in
the acquisition of investment properties. The Asset Management Company has established a department thatobtains information for sales of real estate and preferentially considers acquisition thereof. For this reason, theAsset Management Company prepared a rule on “Right of first consideration” based on type and scale ofproperties and determines the order of consideration within the Asset Management Company in advance, in
addition to setting up internal “pipeline meetings” with a compliance officer in attendance, implementing
operation in accordance with certain rules. By doing so, the Asset Management Company prevents arbitrary
distribution of real estate sales information and thereby prevents conflicts of interest from arising among theinvestment corporations whose assets it manages and strives to implement proper measures to address conflictsof interest.

（6）Important Subsequent Events
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meeting on February 14, 2022 and February 17,2022 to issue new investment units to apply the funds toward payment for the acquisition of specified assets.
The payment for the issuance of new investment units through public offering has been completed on February
24, 2022, and the payment for the issuance of new investment units by third-party allotment has been completed
on March10, 2022.
As a result, Unitholders’ capital came to 125,564,617,378 yen and Number of investment units issued andoutstanding came to 1,045,758 units as of March 10, 2022.

(Issuance of New Investment Units through Public Offering)
Total number of units to be offered
Issue price (offer price)
Total amount issue price (offer price)：47,500 unit
：191,490 yen per unit
：9,095,775,000 yen
21

Purchase price (Amount to be paid in)：185,303 ye per units
Total amount purchase price (Amount to be paid in) ：8,801,892,500 yen
Payment date：February 24, 2022

(Issuance of New Investment Units by Third-Party Allotment)
Total number of units to be issued：2,375 units
Purchase price (Amount to be paid in)：185,303 yen per unit
Total amount purchase price (Amount to be paid in) ：440,094,625 yen
Payment date：March 10, 2022
Allottee：SMBC Nikko Securities Inc.

22

(Reference)
Acquisition of Assets
a. The Investment Corporation acquired the following trust beneficiary interest in real estate.
Date of
Acquisition
March 1,
2022
March 1,
2022

Property
number

Property Name

Location

Previous Owner

Kobe-shi,Hyogo
Takarazuka-shi,
Hyogo

SMFL Mirai Partners
Company, Ltd.
SMFL Mirai Partners
Company, Ltd.

（Note 2）

H-29

Irise Kobe Rokko

H-30

Excellent Hanayashiki Garden
Hills
Total

(Note 1)
(Note 2)Acquisition
Appraisal
Price
value
（mil.yen） （mil.yen）（Note 3）

1,200

1,320

1,287

1,370

2,487

2,690

“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-be acquired
assets and is rounded down to the nearest million yen.
“Appraisal date” is November 30, 2021.

b. The Investment Corporation executed trust beneficiary interest sales contract concerning the following trust
beneficiary interest in real estate on February 14, 2022.
Date of to-beacquired

Property
number

Property Name

Location

Previous Owner

AcquisitionPrice(scheduled)(mil.yen)Appraisal value（mil.yen）（Note 3）（Note 2）

April 1, 2022

T-103

April 1, 2022

R-47

April 1, 2022

H-31

April 15, 2022

T-104

June 1, 2022

T-105

KDX Residence
Umejima(Note 1)
Serenite Koshien
Plie(Note 1)
Excellent Hanayashiki
Garden Hills (Note 1)
KDX Residence
Mizonokuchi(Note 1)
KDX Residence
Hachioji Otsuka(Note 1)
Total(Note 1)
(Note 2)
(Note 3)(Note 4)Adachi-ku
Tokyo
Nishinomiyashi Hyogo
Takarazukashi Hyogo
Kawasaki-shi,
Kanagawa
Hachioji-shi,Tokyo

GK Trinity One

2,373

2,590

GK Trinity One

770

808

GK Trinity One

2,340

2,420

Not disclosed

2,781

3,000

Not disclosed

1,490

1,570

9,754

10,388The trust beneficiary interest sales contract associated with the to be acquired assets fall under the forward commitments,
etc. by the Investment Corporation as specified in the Financial Services Agency “Comprehensive Guidelines forSupervision of Financial Instruments Business Operators, etc.”“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-beacquired assets and is rounded down to the nearest million yen.
“Appraisal Date” is December 1, 2021.
Not disclosed according to seller’s intention

23

2．Overview of the Investment Corporation（1）Unitholders’ Capital
Fiscal period

16th
As of January 31,
2020

17th
As of July 31,
2020

18th
As of January 31,
2021

19th
As of July 31,
2021

20th
As of January 31,
2022

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

907,458

951,258

951,258

995,883

995,883

99,731

108,550

108,550

116,322

116,322

10,39011,005

11,317

10,522

10,422

Number ofinvestment units
held

Ratio（％）

Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)（2）Matters Concerning Investment Units
Major unitholders as of January 31, 2022 are as follows.

Name

Address（Note1）(Units)Custody Bank of Japan, Ltd. (Trust Acct.)

8-12, Harumi 1-chome, Chuo-ku, Tokyo

242,396

24.33

The Master Trust Bank of Japan Ltd. (Trust
Acct.)

11-3,
Hamamatsu-cho
Minato-ku, Tokyo

213,885

21.47

The Nomura Trust Banking Co., Ltd. (Trust
Acct.)

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

51,714

5.19

Kenedix, Inc.

1-6 Uchisaiwai-cho 2-chome, Chiyodaku, Tokyo

29,515

2.96

Custody Bank of Japan, Ltd.
(Securities Investment Trust Acct.)

8-12, Harumi 1-chome, Chuo-ku, Tokyo

22,5402.26

Mitsubishi UFJ Trust and Banking Corporation

11-3,
Hamamatsu-cho
2-chome,Minato-ku, Tokyo
Standing proxy: The Master Trust Bankof Japan, Ltd.

18,813

1.88

STATE STREET BANK WEST CLIENTTREATY 505234

Shinagawa Intercity Tower A 15-1, 2chome, Kohnan, Minato-ku, Tokyo
Standing proxy: Mizuho Bank, Ltd.

16,631

1.66

Japan Securities Finance Co., Ltd.

2-10, Nihonbashi Kayabacho 1-chome,
Chuo-ku, Tokyo

12,261

1.23

SMBC Nikko Securities Inc.

3-3-1, Marunouchi, Chiyoda-ku, Tokyo

12,077

1.21

The Gunma Bank, Ltd.

194, Motosojamachi, Maebashi-shi,
Gunma

10,904

1.09

630,736

63.33

Total

2-chome,(Note) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places24

（3）Matters Concerning Directors and Auditor(ⅰ) The Executive Directors, Supervisory Directors and the Independent Auditor During the 20th Fiscal
Period are as Follows.

Position

Name

Katsue Okuda

Ogata Appraisal Corporation, Director
Lecturer in Meiji University’s Graduate School of Global
Business
Kudan Ogata Holdings Corporation, Representative
director
Kudan Urban Appraisal Co., Ltd., Director
CERESPO CO., LTD., Auditor
Sankei Building Asset Management Co., Ltd., Investment
Committee, External committee member
Fiscal System Council, Ministry of Finance, committee
memberMaruha Nichiro Corporation, Outside Director
CRE, Inc., Outside Director

900

Shin Yamamoto

Kenedix Real Estate Fund Management, Inc.
Head of Planning Division, Residential REIT Department-

Tetsu Kawashima

Kenedix Real Estate Fund Management, Inc.
Director & COO, Head of Residential REIT Department-

Osamu Chiba

Akebono Law Office, Attorney
Maruzen Foods Corporation, Outside Auditor
IMAGICA GROUP Inc., Outside Director

Executive
Director(Note1)

Satoshi Ogawa
Supervisory
Director(Note 2)
(Note 3)

Soichiro Iwao

Osamu Utsunomiya

Independent
auditor(Note 1)

(Note 2)
(Note 3)

Other concurrent title

Total amount offees
paid during theperiod(thousand yen)

Ernst & Young ShinNihon
LLC

Ogawa CPA Office, CPA
GK Mercury Consulting, Representative Partner
Oedo-Onsen Monogatari Co., Ltd, Auditor
Ooedo Onsen Monogatari Hotels & Resorts Co., Ltd.
AuditorHungarian Medical Universities, Director
National Federation of Industrial Health Organization,
Director
Iwao Consultant Office, Director
Japan Society for Dying with Dignity, President
Visiting Professor, Keio University School of Medicine
Vice President, Medical Corporation KEN-IKU KAI
Director, Japan Association of Rehabilitation Hospital andInstitution
Director, Japan Architectural Hygiene Management
Education Center
－

1,500

1,500

750

750

13,050Keisuke Sato retired as executive director on July 31, 2021 and Shin Yamamoto assumed the office of executive director,
furthermore, Katsue Okuda and Shin Yamamoto retired as executive director on October 31, 2021 and Tetsu Kawashima
assumed the office of executive director on November 1, 2022. The information of other concurrent title, etc., regarding
Katsue Okuda and Shin Yamamoto is as of the date of their retirement.
Soichiro Iwao retired as supervisory director on October 31, 2021, and Osamu Utsunomiya assumed the office of supervisory
director on November 1, 2021. The information regarding Soichiro Iwao's other concurrent title, etc., is as of the date of his
retirement.
Supervisory Director may be an officer of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation(ⅱ) Policy on Decisions to Terminate or Not Reappoint the Accounting Auditor
Dismissal of an independent auditor will be made in accordance with the Act on Investment Trusts and Investment
Corporations, and a decision not to re-appoint an independent auditor will be considered by comprehensively taking
into account the audit quality, compensation and other various circumstances by the board of directors of theInvestment Corporation.
25

（4）Matters Concerning Directors and Officers Liability Insurance Policy
Classification

Summary of Insurance Policy

All of Executive
Directors
andSupervisory
Directors(Outline of the insured accident to be covered)
The Investment Corporation has concluded a directors' liability insurance policy as set forth in Article 116-3,
Paragraph 1 of the Act on Investment Trust and Investment Corporation, with an insurance company and theInvestment Corporation shall compensate for damages, litigation expenses, and other damages incurred by the
insured as a result of receiving a claim for damages arising from an act performed by the insured in connection
with its business as a director of the Investment Corporation to a certain extent under the insurance contract.
(Burden ratio of insurance premiums)
Premiums for all insured persons is wholly paid by the Investment Corporation.
(Measures to ensure that the appropriateness of the execution of duties by directors is not impaired)
There is no deductible for a series of liability for damages, but the maximum amount payable is 1 billion yen.

（5）Asset Management Company, Custodian and General Administrators
The asset management company, custodian and general administrators as of the end of the 20th fiscal period are as
follows.
Classification

Name

Asset manager
CustodianKenedix Real Estate Fund Management, Inc.

General administrator (Unitholder registry)

Sumitomo Mitsui Trust Bank, Limited

General administrator (Regarding bookkeeping)Mizuho Trust & Banking Co., Ltd.

Mizuho Trust & Banking Co., Ltd.

General administrator (Administration)

Mizuho Trust & Banking Co., Ltd.

General administrator(Regarding investment corporation bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

26

3．Status on Investment Properties（1）Component of Assets
Classification

Use

19th
As of July 31, 2021
Total amountComposition ratio
held(%)(mil.yen)(Note 5)Areaof assets（Note 4）

Residential
Trustbeneficiaryinterest in
real
estate(Note 6)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

（Note 4）

146,14849.8

155,09751.3

55,21918.8

54,88718.1

22,396

7.6

25,421

8.4(Note 2)

33,91911.6

33,799

11.2

Other (Note 3)

1,263

0.4

1,245

0.4

5,085

1.7

5,071

1.7

264,032

90.1

275,522

91.1

172

0.1

173

0.1

172
ー
28,972

0.1
―
9.9

173
109
26,605

0.1
0.0
8.8

293,176

100.0

302,410100.0(Note 2)

Healthcare

20th
As of January 31, 2022
Total amountComposition ratio
held(%)(mil.yen)(Note 5)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

Accommodation Tokyo Metropolitan
Area (Note 1)
Total (Trust beneficiary interest in real estate)
Real
Healthcare
Other Regional Area
(Note 2)
estate(Note 6)
Total (Real estate)
Silent partnership interest (Note7)
Bank deposits and other assets
Total assets(Note 1) “Tokyo Metropolitan Area” means major cities in Tokyo, Kanagawa, Saitama and Chiba.
(Note 2) “Other regional areas” include government-designed municipalities and other regional cities.
(Note 3) “Other” means cities except Tokyo Metropolitan Area and Other regional areas.
(Note 4) “Total amount held” means carrying amounts on the balance sheet (amounts of Trust beneficiary interests in real property and real
property are book values net of depreciation) at the end of fiscal period and rounded off to one dismal place.
(Note 5) “Composition ratio” means the ratio of carrying amounts of each classified assets to total assets on balance sheet and rounded off to
one dismal place.
(Note 6) Rehabili-home Granda Mondoyakujin consists of both trust beneficiary interest in real estate and real estate, therefore, they are
remarked in each category of use distinctively.
(Note 7) The operator of the silent partnership is GK Trinity One.

（2）Major Assets Owned
The overview of major assets owned by the Investment Corporation (Top 10 properties in net book value as ofJanuary 31, 2022) are as follows.
No.

Name of property

T-78

KDX Residence Toyosu
KDX Residence Shukugawa
Hills

R-45
H-22

Tsukui Sun-shine Machida

7,594

6,811.38

Ratio of rental
Occupancy
revenue to total
Major use
Rate (%)
rental revenue(Note 3)(%) (Note 4)
6,811.38
100.0
2.0 Residential

7,245

17,575.39

17,110.15

Book value Leasable area
(Million yen) (m²) (Note 1)

7,002

15,553.33

Leased area(m²) (Note 2)

15,553.33

97.4

2.5

Residential

100.0

NonDisclosure

Healthcare(Note 5)

H-10

Activa Biwa

6,348

39,649.84

39,649.84

100.0

NonDisclosure

Healthcare(Note 5)T-56

KDX Residence Yokohama
Momijizaka
KDX Residence Hanzomon

T-1

KDX Daikanyama Residence

4,717

5,338.99

5,089.36

95.3

1.8

Residential

R-39

KDX Residence Ohori Harbor
View Tower

4,352

11,855.63

10,686.19

90.1

2.0

Residential

H-3

Joy Stage Hachioji

3,746

13,812.27

13,812.27

100.0

NonDisclosure

Healthcare

T-102

5,207

4,795.16

4,596.39

95.9

0.4

Residential

4,926

4,854.23

4,669.42

96.2

1.4

Residential(Note 5)T-52

KDX Residence Togoshi

3,680

4,591.76

4,486.29

97.7

1.4

Residential
27

Total54,820124,837.98

122,464.62

-

17.6

(Note 1) “Leasable area” is the floor area of each portfolio asset for which the building is leasable (if a portfolio asset has more than one
building, the total floor area of leasable buildings) that is set forth in a lease agreement as of January 31, 2022.
(Note 2) “Leased area” is the floor space set forth in a lease agreement that has been executed with an end tenant and leased as of January 31,
2022.
(Note 3) “Occupancy rate” = “leased area” / “leasable area” ×100
(Note 4) The ratio of rental revenue to total rental revenue = each property’s real estate lease business revenue / total for all properties.
(Note 5) The Investment Corporation has not obtained consent from the tenant to release this information.

28

（3）Overview of the Portfolio（Detail of Real Estate Portfolio Assets）
The overview of assets under management of the Investment Corporation as of the end of the 20th fiscal period
Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note4)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

T-1

KDX Daikanyama Residence

7-1, Sarugakucho,Shibuya-ku,Tokyo

TBI

4,717

7,210

T-3

KDX Odemma Residence
KDX Iwamoto-cho
Residence
KDX Bunkyo Sengoku
Residence
KDX Azumabashi Residence
KDX Shimura Sakaue
Residence

3-10, Nihombashi-Odenmacho,Chuo-ku,Tokyo

TBI

1,663

2,600

16-12, Iwamotocho 2-chome, Chiyoda-ku,Tokyo

TBI

763

1,160

3-2, Honkomagome 6-chome, Bunkyo-ku,Tokyo

TBI

1,430

2,030

9-8, Azumabashi 1-chome, Sumida-ku,Tokyo

TBI

595

1,100

16-5, Higashi-Sakashia 1-chome, Itabashi-ku,Tokyo

TBI

2,578

3,940

TBI

2,155

2,460

T-4
T-5
T-6
T-7
T-9

Cosmo Heim Motosumiyoshi

KDX Musashi Nakahara
Residence
T-11 KDX Chiba Chuo Residence
KDX Kawaguchi Saiwai-cho
T-12
Residence
T-13 KDX Residence Shirokane I
T-10

5-1, Kizukigioncho, Nakahara-ku, Kawasaki-shi,
Kanagawa
18-22, Shimokodanaka 4-chome, Nakahara-ku,
Kawasaki-shi, Kanagawa
2-17, Shindencho, Chuo-ku, Chiba-shi, Chiba

Residential Facilities

Tokyo Metropolitan Area

TBI

642

796

TBI

1,242

1,870

14-24, Saiwaicho 2-chome, Kawaguchi-shi, Saitama

TBI

1,164

1,630

7-8, Shirokanedai 4-chome, Minato-ku, Tokyo

TBI

3,069

4,080

T-15 KDX Residence Shirokane II
KDX Residence MinamiT-16
aoyamaKDX Residence MinamiT-17
azabu
T-18 KDX Residence Shiba Koen

7-8, Shirokanedai 4-chome, Minato-ku, Tokyo

TBI

2,849

4,050

4-8, Minami-Aoyama 3-chome, Minato-ku, Tokyo

TBI

2,256

2,710

3-22, Minami-Azabu 2-chome, Minato-ku, Tokyo

TBI

2,123

3,060

4-16, Shiba 3-chome, Minato-ku, Tokyo

TBI

1,790

2,610

T-19 KDX Residence Azabu East

25-2, Higashi-Azabu 1-chome, Minato-ku, Tokyo

TBI

1,570

2,320

T-20 KDX Residence Takanawa

15-7, Takanawa 3-chome, Minato-ku, Tokyo

TBI

785

1,250

T-21 KDX Residence Nishihara
KDX Residence Daikanyama
T-22
II
KDX Residence Nihombashi
T-24
Suitengu
KDX Residence Nihombashi
T-25
Hakozaki
KDX Residence HigashiT-26
shinjuku
T-27 KDX Residence Yotsuya
KDX Residence NishiT-28
shinjuku
T-29 KDX Residence Kagurazaka
KDX Residence Futako
T-30
Tamagawa
KDX Residence Komazawa
T-31
Koen
T-32 KDX Residence Mishuku

37-4, Nishihara 1-chome, Shibuya-ku, Tokyo

TBI

1,482

2,110

11-22, Ebisu Nishi 2-chome, Shibuya-ku, Tokyo

TBI

791

1,120

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,140

4,420

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1,131

1,520

1-9 Okubo 2-chome, Shinjuku-ku, Tokyo

TBI

3,191

4,680

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,300

3,350

18-15, Nishi-Shinjuku 7-chome, Shinjuku-ku, Tokyo

TBI

1,012

1,570

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

697

1,060

31-29, Seta 2-chome, Setagaya-ku, Tokyo

TBI

1,266

1,680

21-6 Komazawa 5-chome, Setagaya-ku, Tokyo

TBI

893

1,290

37-13, Mishuku 2-chome, Setagaya-ku, Tokyo

TBI

781

1,080

T-33 KDX Residence Yoga

34-21, Seta 5-chome, Setagaya-ku, Tokyo

TBI

717

999

T-34 KDX Residence Shimouma

21-8, Shimouma 1-chome, Setagaya-ku, Tokyo

TBI

626

860

T-35 Raffine Minami-magome
KDX Residence Yukigaya
T-36
OtsukaT-37 KDX Residence Denenchofu

24-8, Minami-Magome 5-chome, Ota-ku, Tokyo

TBI

1,233

1,530

15-13, Minami-Yukigaya 2-chome, Ota-ku, Tokyo

TBI

1,043

1,460

40-14, Denenchofu Honmachi, Ota-ku, Tokyo

TBI

1,060

1,380

T-38 KDX Residence Tamagawa
KDX Residence
T-39
Monzennakacho
KDX Residence
T-40
Okachimachi
KDX Residence MotoT-41
asakusa
KDX Residence Itabashi
T-42
Honcho9-17, Tamagawa 1-chome, Ota-ku, Tokyo

TBI

712

1,060

6-7, Kiba 3-chome, Koto-ku, Tokyo

TBI

779

1,100

28-4, Taito 2-chome, Taito-ku, Tokyo

TBI

856

1,200

8-10, Motoasakusa 4-chome, Taito-ku, Tokyo

TBI

799

1,120

13-16, Yamatocho, Itabashi-ku, Tokyo

TBI

579

877
29

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note4)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

T-43 KDX Residence Azusawa
KDX Residence Yokohama
T-45
KannaiKDX Residence
T-46
Miyamaedaira
T-47 KDX Residence MachidaT-48 KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka

7-13, Azusawa 1-chome, Itabashi-ku, Tokyo
5-9, Bandaicho 3-chome, Naka-ku, Yokohama-shi,
Kanagawa
14-3, Miyamaedaira 3-chome, Miyamae-ku,
Kawasaki-shi, Kanagawa
13-32, Kamitsurumahoncho, Minami-ku,
Sagamihara-shi, Kanagawa
24-13, Midori 4-chome, Sumida-ku, Tokyo
33-4, Nishimbashi-Hamacho 3-chome, Chuo-ku,
Tokyo
8-5, Nihombashi-Horidomecho 1-chome, Chuo-ku,
Tokyo
11-27, Yakumo 3-chome, Meguro-ku, Tokyo

TBI

538

729

TBI

750

1,100

TBI

991

1,250

TBI

1,721

2,350

TBI

1,328

1,930

TBI

1,029

1,480

TBI

556

757

TBI

1,318

1,790

30

Use

Area

No.

Name of property

Location

Form ofownership(Note4)Book
value(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)

T-52 KDX Residence Togoshi
KDX Residence Shinagawa
T-53
SeasideT-54 KDX Residence Ojima

1-1, Togoshi 5-chome, Shinagawa-ku, Tokyo
6-7, Higashi-Shinagawa 3-chome, Shinagawa-ku,
Tokyo
8-4, Ojima 4-chome, Koto-ku, Tokyo

TBI

3,680

5,290

TBI

2,522

3,560

TBI

1,780

2,720

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,560

3,660

T-56 KDX Residence Hanzomon
KDX Residence Akihabara II
T-57 (Note2)

12-1, Kojimachi 2-chome, Chiyoda-ku, Tokyo

TBI

4,926

6,340

7, Kanda-Sudacho 1-chome, Chiyoda-ku, Tokyo

TBI

853

1,200

120-1, Yaraicho, Shinjuku-ku, Tokyo

TBI

1,364

2,390

43-17, Sendagi 3-chome, Bunkyo-ku, Tokyo

TBI

2,315

2,700

T-60 KDX Residence Seijo

16-25, Seijyo 4-chome, Setagaya-ku, Tokyo

TBI

1,446

1,760

T-61 KDX Residence Akihabara

13-7, Taito Higashi 2-chome, Taito-ku, Tokyo

TBI

1,227

1,750

T-62 KDX Residence Iriya

10-7, Iriya 1-chome, Taito-ku, Tokyo

TBI

1,035

1,530

T-63 KDX Residence Tachikawa

28-29, Akebonocho 2-chome, Tachikawa-shi, Tokyo
10, Mukaicho 1-chome, Tsurumi-ku, Yokohama-shi,
Kanagawa

TBI

2,977

3,980

TBI

1,145

1,640

5-3, Chitose 1-chome, Sumida-ku, Tokyo

TBI

1,083

1,470

13-11, Akasaka 6-chome, Minato-ku, Tokyo

TBI

1,171

2,130

T-67 KDX Residence Kanda

8-2, Uchikanda 2-chome, Chiyoda-ku, Tokyo

TBI

704

1,260

T-68 KDX Residence Ebisu
KDX Residence NishiT-69
magomeT-70 KDX Residence Nishi-azabu
KDX Residence Azabu
T-71
Sendaizaka
KDX Residence Waseda
T-72
Tsurumaki
KDX Residence Bunkyo
T-73
Yushima
KDX Residence
T-74
Kamishakujii

11-16, Ebisu Minami 1-chome, Shibuya-ku, Tokyo

TBI

2,885

4,980

4-4, Minami-Magome 6-chome, Ota-ku, Tokyo

TBI

1,145

1,390

5-10, Nishi-Azabu 3-chome, Minato-ku, Tokyo

TBI

1,229

1,870

1-7, Minami-Azabu 3-chome, Minato-ku, Tokyo

TBI

797

1,230

574-25, Waseda-Tsurumakimachi, Shinjuku-ku,
Tokyo

TBI

552

888

29-2, Yushima 2-chome, Bunkyo-ku, Tokyo

TBI

690

1,020

18-5, Kamishakujii 1-chome, Nerima-ku, Tokyo

TBI

642

888

TBI

758

1,190

TBI

886

1,270

KDX Residence Kagurazaka
T-58
Dori
T-59 KDX Residence Sendagi

T-64 KDX Residence Tsurumi
KDX Residence Morishita
ChitoseT-66 KDX Residence Akasaka
T-65

Residential Facilities

Tokyo Metropolitan Area

T-77 KDX Residence Ryogoku

44-16, Higashi-Ikebukuro 5-chome, Toshima-ku,
Tokyo
26-14, Shimotakaido 1-chome, Suginami-ku,
Tokyo
19-13, Kamesawa 2-chome, Sumida-ku, Tokyo

TBI

833

1,310

T-78 KDX Residence Toyosu

2-33, Toyosu 1-chome, Koto-ku, Tokyo

TBI

7,594

7,910

T-79 KDX Residence Asagaya

1-47-24, Asagayaminami, Suginami-ku, Tokyo
7-17-35, Hiyoshi, Kohoku-ku, Yokohama-shi,
Kanagawa

TBI

1,967

2,400

TBI

2,674

2,880

4-23-15, Kamikitazawa, Setagaya-ku, Tokyo

TBI

1,394

1,540

3-2-11, Noge, Setagaya-ku, Tokyo

TBI

1,127

1,350

1-9-8 Higashi-Asakusa, Taito-ku, Tokyo

TBI

699

790

413-1 Hongo-cho, Funabashi-shi, Chiba

TBI

1,010

1,100

T-75 KDX Residence Shin-otsuka
T-76 KDX Residence SakurajosuiT-80 KDX Residence Hiyoshi

T-85

KDX Residence
Kamikitazawa
KDX Residence Kaminoge
KDX Residence HigashiAsakusa
KDX Residence NishiFunabashi
KDX Residence Hatagaya

T-86

KDX Residence Asagaya II

T-81
T-82
T-83
T-84

KDX Residence
Gakugeidaigaku
KDX Residence KamataT-88
minami
T-87

2-24-7 Hatagaya Shibuya-ku, Tokyo

TBI

2,623

2,840

3-31-5 Asagaya-minami, Suginami-ku, Tokyo

TBI

975

1,040

2-4-3 Takaban, Meguro-ku, Tokyo

TBI

772

829

3-9-2 Minami-Rokugo, Ota-ku, Tokyo

TBI

1,962

2,260

TBI

653

650

T-90 KDX Residence Mitaka

1-23-20, Kichijoji-Higashimachi, Musashino-shi,Tokyo
4-15-31, Shimorenjaku, Mitaka-shi,Tokyo

TBI

2,679

3,040

T-91 KDX Residence Nakanobu

6-6-1, Nakanobu, Shinagawa-ku, Tokyo

TBI

848

910

T-92 KDX Residence Ichikawa

2-6-12, Ichikawa, Ichikawa-shi, Chiba

TBI

877

916

T-89 KDX Residence Kichijoji

31

Use

Area

No.

Name of property

Location

Form ofownership(Note4)Book
value(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)

T-93 KDX Residence Hatchobori

1-8-5, Irifune, Chuo-ku, Tokyo

TBI

3,211

3,590

T-94 KDX Residence Nakaitabashi

68-11, Yayoicho, Itabashi-ku, Tokyo

TBI

1,854

1,930

T-95 KDX Residence Shonandai

2-9-10, Shonandai, Fujisawa-shi, Kanagawa

TBI

1,559

1,640

KDX Residence Ikebukuro
T-96
West

2-6, Nakamarucho, Itabashi-ku, Tokyo

TBI

2,347

2,570

T-97 KDX Residence Tennocho

1-30-2, Tennocho, Hodogaya-ku, Yokohama-shi,
Kanagawa

TBI

905

936

T-98 KDX Residence Kawasaki

1-1-12, Nakajima Kawasaki-ku,, Kawasaki-shi,
Kanagawa

TBI

950

1,020

3-9-13, Minami-rokugo, Ota-ku, Tokyo

TBI

812

883

2-18-5, Kamishakujii, Nerima-ku, Tokyo

TBI

3,227

3,340

4-13-35, Maehara-nishi, Funabashi-shi, Chiba
6-1,
Momijigaoka,
Nishi-ku
Yokohama-shi,
Kanagawa
3-25, Kasugamachi, Aoba-ku, Sendai-shi, Miyagi
24-28, Izumi 2-chome, Higashi-ku, Nagoya-shi,
Aichi
49-6, Shinsakae 1-chome, Naka-ku, Nagoya-shi,
Aichi
7-15, Kawaracho 1-chome, Chuo-ku, Osaka-shi,
Osaka
2-43, Sakaemachi 3-chome, Takarazuka-shi, Hyogo
21-27, Shimizu 1-chome, Minami-ku, Fukuoka-shi,
Fukuoka
1000-4, Minami 2-jo 40-chome, Chuo-ku, Sapporoshi, Hokkaido
2-35, Kikusui 4-jo 3-chome, Shiroishi-ku, Sapporoshi, Hokkaido
4-16, Hiragishi 4-jo 3-chome, Toyohira-ku, Sapporoshi, Hokkaido
15-42, Ichibancho 1-chome, Aoba-ku, Sendai-shi,
Miyagi13-22, Higashi-sakura 2-chome, Higashi-ku, Nagoyashi, Aichi
5-10, Higasi-sakura 1-chome, Higashi-ku, Nagoyashi, Aichi
4-27, Yokota 2-chome, Atsuta-ku, Nagoya-shi, Aichi
40-3, Nishi 7-jo Kakekoshicho, Shimogyo-ku, Kyotoshi, Kyoto
30-2, Saiintakadacho, Ukyo-ku, Kyoto-shi, Kyoto

TBI

1,214

1,320

TBI

5,207

5,350

TBI

889

1,390

TBI

1,012

1,530

TBI

954

1,520

TBI

2,614

3,940

TBI

1,282

2,140

TBI

1,495

2,220

TBI

742

1,080

TBI

832

1,120

TBI

446

621

TBI

480

739

TBI

2,175

2,630

TBI

834

1,100

TBI

772

1,090

TBI

752

960

TBI

403

533

T-99

KDX Residence Kamataminami II

KDX Residence
Kamishakujii II
T-101 Hulic Residence Tsudanuma
KDX Residence Yokohama
T-102
Momijizaka
R-2 KDX Jozenjidori Residence
T-100

R-3

KDX Izumi Residence

R-4

KDX Chihaya Residence

R-7

KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

KDX Residence Odori Koen

R-5

Other Regional Area

KDX Residence Kikusui
R-10
Yojo
KDX Residence Toyohira
R-11
Koen
R-13 KDX Residence Ichiban-cho
KDX Residence HigashiR-16
sakura I
KDX Residence HigashiR-17
sakura II
R-18 KDX Residence Jingumae
R-19 KDX Residence Nishi-oji
R-20 KDX Residence Saiin

32

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note4)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

R-21 KDX Residence Namba
KDX Residence NambaR-22
minamiKDX Residence Ibaraki I・II
R-24

6-16, Inari 1-chome, Naniwa-ku, Osaka-shi, Osaka
11-9, Shiokusa 3-chome, Naniwa-ku, Osaka-shi,
Osaka

TBI

1,319

1,820

TBI

1,230

1,750

9-11, 9-12, Takehashicho, Ibaragi-shi, Osaka

TBI

1,266

1,527

KDX Residence ToyonakaR-25
minami
R-26 KDX Residence Moriguchi

7-22, Shonaihigashicho 2-chome, Toyonaka-shi,Osaka
12-12, Dainichihigasihmachi, Moriguchi-shi, Osaka
8-10, Ninomiyacho 4-chome, Chuo-ku, Kobe-shi,
Hyogo
20-10, Oharacho, Ashiya-shi, Hyogo
10-5, Funairisaiwaicho, Naka-ku, Hiroshima-shi,
Hiroshima
6-22, Chikukohonmachi, Hakata-ku, Fukuoka-shi,
Fukuoka
5-7, Minato 3-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
10-17, Hiraojyosuimachi, Chuo-ku, Fukuoka-shi,
Fukuoka
5-31, Shinsakae 1-chome, Naka-ku, Nagoya-shi,
Aichi
9-3, Moriminamimachi 1-chome, Higashinada-ku,
Kobe-shi, Hyogo

TBI

647

992

TBI

492

718

TBI

1,039

1,320

TBI

1,498

2,010

TBI

527

779

TBI

623

1,000

TBI

702

980

TBI

724

1,010

TBI

3,332

4,630

TBI

946

1,240

2-14, Hommachibashi, Chuo-ku, Osaka-shi, Osaka

TBI

3,073

3,910

1-8, Minamikusatsu 1-chome, Kusatsu-shi, Shiga

TBI

1,919

2,550

TBI

4,352

5,220

TBI

869

1,820

TBI

1,227

1,720

TBI

619

750

TBI

1,723

1,810

TBI

2,419

2,680

7-1, Hinoikecho, Nishinomiya-shi, Hyogo

TBI

7,245

7,430

2-13 Teppocho-nihsi, Miyagino-ku, Sendai-shi,
Miyagi

TBI(Note 3)

R-27 KDX Residence Sannomiya
R-28 Ashiya Royal Homes
KDX Residence Funairi
R-29
Saiwai-cho
KDX Residence TenjinR-30
higashi II
R-32 KDX Residence Nishi Koen

Other Regional Area

Residential Facilities

KDX Residence Hirao JosuiR-33
machi
R-35 Leopalace Flat Shin-sakae
R-36
R-37
R-38
R-39
R-40

KDX Residence Konan
YamateKDX Residence
Hommachibashi
KDX Residence Minamikusatsu
KDX Residence Ohori
Harbor View Tower
KDX Residence Minamisanjo

R-41 Serenite Kita-kyuhoji
Serenite Nishinomiya
R-42
HommachiR-43 KDX Residence Nishijin
R-44 Serenite Kobe Motomachi
KDX Residence Shukugawa
Hills
KDX Residence SendaiekiR-46
higashiR-45

2-18, Minato 1-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
3-2, Minami 3-jo Nishi 8-chome, Chuo-ku, Sapporoshi, Hokkaido
3-15, Kitakyuhojicho 1-chome, Chuo-ku, Osaka-shi,
Osaka
5-26, Hommachi, Nishinomiya-shi, Hyogo
24-30, Nishijin 2-chome, Sawara-ku, Fukuoka-shi,
Fukuoka
1-22, Kaigandori 3-chome, Chuo-ku, Kobe-shi,
Hyogo

Subtotal
H-1

1,490
275,947

2-15-21 Kitakojiya, Ota-ku, Tokyo

TBI

1,072

1,050

3-26-24 Minamidai, Nakano-ku, Tokyo

TBI

1,757

1,970

924-2 Yokokawamachi, Hachioji-shi, Tokyo
2-22-4 Hijirigaoka, Tama-shi, Tokyo (Building A)
H-4 Yuimaru Hijirigaoka(Note 3)
2-20-6 Hijirigaoka, Tama-shi, Tokyo (Building B)
2-21-2 Hijirigaoka, Tama-shi, Tokyo (Building C)
2-23-6, Inukura, Miyamae-ku, Kawasaki-shi,
H-5 Nichii Home Tama Plaza
Kanagawa
H-21 Plaisant Grand Ota tamagawa 2-19-4 Tamagawa,Ota-ku, Tokyo
1-11-7 Oyamagaoka Machida-shi, Tokyo (WestTsukui Sun-shine Machida
Tower)
H-22 (Note3)
1-11-8 Oyamagaoka Machida-shi, Tokyo (East
Tower)
H-23 Serabi Ebisu
2-10-20, Mita, Meguro-ku, Tokyo

TBI

3,746

3,890

TBI

1,050

1,140

TBI

2,749

3,050

TBI

3,191

3,280

TBI

7,002

7,260

TBI

1,712

1,700

H-27 Grapes Kawasaki Shimmachi

2-3-2, Odasakae,Kawasaki-ku, Kanagawa

TBI

1.539

1.520

H-28 Grapes Fujimino

TBI

1.599

1.550

TBI

2,524

2,660

TBI

789

838

TBI

1,517

1,760

TBI

898

990

H-2
H-3

Irise Kamata/Yuseien
Nichii Home NakanoMinamidai
Joy Stage Hachioji

1,395
209,985

Healthcare Facilities

Tokyo Metropolitan Area
Other Regional
Area

H-6

Ten

H-7

Irise Nishioka

H-8

Izarie Eniwa Building

1-15-12, Minamidai, Fujimino-shi, Saitama
6-3-1 Tsukisamuchuodori, Toyohira-ku, Sapporo-shi,
Hokkaido
13-7-10 Nishioka Sanjo, Toyohira-ku, Sapporo-shi,
Hokkaido
1-8-1 Aioimachi, Eniwa-shi, Hokkaido

H-9

Sawayaka Sakura Nibankan

1-10-3 Oroshimachi, Akita-shi, Akita

33

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note4)Book
value(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)

6-16-16 Ogoto, Otsu-shi, Shiga
H-10 Activa Biwa(Note 3)

6-11-8 Ogoto, Otsu-shi, Shiga
6-17-17 Ogoto, Otsu-shi, Shiga
Sompo Care LAVIERE Kobe 285 Sarukura, Myodanicho, Tarumi-ku, Kobe-shi,
H-11
TarumiHyogo
Rehabili-homeGrandaH-12
10-10 Hayashidacho, Nishinomiya-shi, Hyogo
Mondo Yakujin
H-13 Excellent Nishinomiya
2-4-3 Sumiredai, Nishinomiya-shi, Hyogo

TBI

6,348

6,480

TBI

2,029

2,110

1,178

1,300

902

917

TBI andRE
TBI

H-15 Excellent Kitano

10 Kitanohigashi, kobaicho, kita-ku, Kyoto-shi, Kyoto

TBI

742

782

H-16 Anesis Teradacho

1-4-24, Hayashiji, Ikuno-ku, Osaka-shi, Osaka

TBI

3,403

3,640

H-17 Rococo-riha

6-7 Hozan-cho, Toyonaka-shi, Osaka

TBI

2,014

2,170

H-18 Orage Suma

3-622-11, Wakakusa-cho, Suma-ku, Kobe-shi, Hyogo

TBI

2,712

2,810

34

Appraisal value

Area

Use

No.

Name of property

Location

Form ofownership(Note 4)

Book
value
(Millionyen)

at the end of
the fiscal period(Million yen)
(Note 1)Other Regional
Area
OthersHealthcare Facilities

H-19 Canadian Hill

2-3-1 Nagaminedai, Nada-ku, Kobe-shi, Hyogo

TBI

1,807

1,870

H-20 Anesis Hyogo

1-8-21, Yoshida-cho, Hyogo-ku, Kobe-shi, Hyogo
1-10-13, Mikage tsuka-machi, Higashi nada-ku,
Kobe-shi, Hyogo

TBI

1,377

1,430

TBI

1,102

1,360

6-6, Okuhata, Nishinomiya-shi, Hyogo

TBI

2,828

2,820

4-12-1, Kitano-cho, Chuo-ku, Kobe-shi, Hyogo

TBI

1,793

1,880

57-2 Tachino Oura-aza, Tohokumachi-Oaza,
Kamikita-gun, Aomori

TBI

1,245

1,340

60,63863,567

H-24 Arute Ishiyagawa
Medical-home Granda
H-25
Kurakuen
Rehabili-home Granda
H-26
Kobe Kitano
H-14 Gran Hills Ogawarako

Subtotal

Tokyo
Metropolitan Area

Accommodation
Facilities

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

3-44-12 Minami-Otsuka, Toshima-ku, Tokyo

TBI

2,442

2,370

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

2-10-32 Kitasaiwai, Nishi-ku, Yokohama-shi,
Kanagawa

TBI

2,628

2,600

Subtotal

5,071

4,970

Total

275,695

344,484(Note 1) “Appraisal value at the end of the fiscal period” is the appraisal value in a real property appraisal prepared, pursuant to the asset
appraisal techniques and standards in the Investment Corporation’s certificate of incorporation and the rules of the Investment Trusts
Association, Japan, by Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K. or
Tanizawa Sogo Appraisal Co., Ltd.
(Note 2) The name of property was changed from “B-site Akihabara” on February 5, 2022. The same shall apply hereinafter.
(Note 3) R-24 and H-22 consist of two buildings and H-4, H-10 consist of three buildings, book value and appraisal value are total amount ofeach value of the properties.
(Note 4) “TBI” represents trust beneficiary interest in real estate and “RE” represents real estate.

35

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as follows.
19th(From February 1, 2021 to July 31, 2021)

20th(From August 1, 2021 to January 31, 2022)

Area
Use

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenants at
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)No.

Name of property

T-1

KDX Daikanyama Residence

1

90.9

154

1.8

1

95.3

159

1.8

T-3

KDX Odemma Residence
KDX Iwamoto-cho
Residence
KDX Bunkyo Sengoku
Residence
KDX Azumabashi Residence
KDX Shimura Sakaue
Residence
Cosmo Heim Motosumiyoshi
KDX Musashi Nakahara
Residence
KDX Chiba Chuo Residence
KDX Kawaguchi Saiwai-cho
Residence
KDX Residence Shirokane I

1

98.2

54

0.6

1

100.0

60

0.7

1

90.9

27

0.3

1

91.7

27

0.3

1

94.8

51

0.6

1

97.8

49

0.6

T-4
T-5
T-6

1

93.2

26

0.3

1

95.5

25

0.3

1

100.0

108

1.2

1

98.9

108

1.2

1

93.9

77

0.9

1

92.2

70

0.8

1

100.0

27

0.3

1

97.2

26

0.3

1

98.1

65

0.7

1

96.9

63

0.7

1

98.3

50

0.6

1

95.4

49

0.6

1

98.6

112

1.3

1

100.0

114

1.3

KDX Residence Shirokane II
KDX Residence MinamiT-16
aoyamaKDX Residence MinamiT-17
azabu
T-18 KDX Residence Shiba Koen

1

95.2

90

1.0

1

97.2

88

1.0

1

73.1

50

0.6

1

62.9

43

0.5

1

93.7

73

0.8

1

96.1

72

0.8

1

93.5

62

0.7

1

92.6

64

0.7

T-19

KDX Residence Azabu East

1

94.3

55

0.6

1

98.9

55

0.6

T-20

KDX Residence Takanawa

1

91.1

27

0.3

1

88.5

27

0.3

1

97.9

51

0.6

1

100.0

53

0.6

1

79.7

25

0.3

1

84.5

26

0.3

－

－

0

0.0

－

－

－

－

1

100.0

106

1.2

1

100.0

105

1.2

1

94.3

39

0.4

1

97.3

40

0.4

1

97.0

111

1.3

1

97.4

111

1.2

1

97.8

83

1.0

1

100.0

82

0.9

1

94.5

36

0.4

1

98.4

36

0.4

1

97.1

24

0.3

1

91.5

24

0.3

1

97.5

44

0.5

1

100.0

44

0.5

1

100.0

29

0.3

1

95.6

28

0.3

T-7
T-9
T-10
T-11
T-12
T-13
T-15

Residential Facilities

Tokyo Metropolitan Area

KDX Residence Nishihara
KDX Residence Daikanyama
T-22
II
KDX Residence Sendagaya
T-21

T-23

(Note4)T-32

KDX Residence Nihombashi
Suitengu
KDX Residence Nihombashi
Hakozaki
KDX Residence Higashishinjuku
KDX Residence Yotsuya
KDX Residence Nishishinjuku
KDX Residence Kagurazaka
KDX Residence Futako
Tamagawa
KDX Residence Komazawa
Koen
KDX Residence Mishuku

1

90.7

26

0.3

1

93.0

24

0.3

T-33

KDX Residence Yoga

1

97.5

24

0.3

1

100.0

24

0.3

T-34

KDX Residence Shimouma

1

96.9

21

0.3

1

93.9

20

0.2

Raffine Minami-magome
KDX Residence Yukigaya
T-36
OtsukaT-37 KDX Residence Denenchofu

1

100.0

41

0.5

1

100.0

41

0.5

1

93.2

38

0.4

1

96.0

38

0.4

1

97.2

38

0.4

1

97.2

38

0.4

KDX Residence Tamagawa
KDX Residence
Monzennakacho
KDX Residence
Okachimachi
KDX Residence Motoasakusa
KDX Residence Itabashi
Honcho

1

96.5

29

0.3

1

92.7

27

0.3

1

96.1

27

0.3

1

98.0

26

0.3

1

100.0

33

0.4

1

100.0

30

0.3

1

92.5

30

0.3

1

97.5

29

0.3

1

92.3

23

0.3

1

94.2

23

0.3

T-24
T-25
T-26
T-27
T-28
T-29
T-30
T-31

T-35

T-38
T-39
T-40
T-41
T-42

36

19th
(From February 1, 2021 to July 31, 2021)

Area
Use

No.

Name of property

20th(From August 1, 2021 to January 31, 2022)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)T-43

KDX Residence Azusawa
KDX Residence Tobu
Nerima (Note4)
KDX Residence Yokohama
T-45
KannaiKDX Residence
T-46
Miyamaedaira
T-47 KDX Residence Machida

1

95.1

20

0.2

1

97.9

20

0.2

T-44

1

100.0

18

0.2

－

－

13

0.2

1

97.5

35

0.4

1

91.7

34

0.4

1

100.0

37

0.4

1

95.6

36

0.4

1

98.1

66

0.8

1

96.1

64

0.7

KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka

1

100.0

46

0.5

1

100.0

47

0.5

1

94.0

34

0.4

1

94.0

34

0.4

1

96.8

20

0.2

1

96.8

18

0.2

1

100.0

38

0.4

1

97.2

40

0.5

T-48

37

19th
(From February 1, 2021 to July 31, 2021)

20th(From August 1, 2021 to January 31, 2022)

Area
Use

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)No.

Name of property

T-52

1

94.6

122

1.4

1

97.7

122

1.4

1

94.5

84

1.0

1

95.9

83

0.9

T-54

KDX Residence Togoshi
KDX Residence Shinagawa
SeasideKDX Residence Ojima

1

94.9

65

0.7

1

92.3

64

0.7

T-55

KDX Residence Oyama

1

98.6

94

1.1

1

95.1

91

1.0

T-56

KDX Residence Hanzomon

1

96.3

134

1.5

1

96.2

128

1.4

T-57

1

100.0

24

0.3

1

100.0

24

0.3

1

100.0

51

0.6

1

94.4

51

0.6

T-59

B-Site Akihabara
KDX Residence Kagurazaka
Dori
KDX Residence Sendagi

1

100.0

68

0.8

1

100.0

68

0.8

T-60

KDX Residence Seijo

1

100.0

44

0.5

1

100.0

44

0.5

T-61

KDX Residence Akihabara

1

97.6

42

0.5

1

97.6

41

0.5

T-62

KDX Residence Iriya

1

97.3

39

0.4

1

97.1

38

0.4

T-63

KDX Residence Tachikawa

1

96.0

101

1.2

1

93.2

98

1.1

T-64

1

100.0

55

0.6

1

100.0

55

0.6

1

92.2

38

0.4

1

93.4

37

0.4

T-66

KDX Residence Tsurumi
KDX Residence Morishita
ChitoseKDX Residence Akasaka

1

93.1

40

0.5

1

100.0

41

0.5

T-67

KDX Residence Kanda

1

93.9

30

0.4

1

95.0

28

0.3

T-68

1

97.2

92

1.1

1

96.8

96

1.1

1

89.1

33

0.4

1

91.1

29

0.3

1

91.3

38

0.4

1

93.9

37

0.4

1

97.1

27

0.3

1

97.1

27

0.3

1

95.2

21

0.2

1

100.0

21

0.2

1

95.6

25

0.3

1

95.7

25

0.3

1

93.7

23

0.3

1

95.8

22

0.3

T-75

KDX Residence Ebisu
KDX Residence Nishimagome
KDX Residence Nishi-azabu
KDX Residence Azabu
Sendaizaka
KDX Residence Waseda
Tsurumaki
KDX Residence Bunkyo
Yushima
KDX Residence
Kamishakujii
KDX Residence Shin-otsuka

1

100.0

28

0.3

1

100.0

25

0.3

T-76

KDX Residce Sakurajosui

1

95.9

29

0.3

1

96.5

28

0.3

T-77

KDX Residence Ryogoku

1

85.8

29

0.3

1

100.0

28

0.3

T-78

KDX Residence Toyosu

1

100.0

180

2.1

1

100.0

182

2.0

T-79

KDX Residence Asagaya

1

100.0

51

0.6

1

93.8

51

0.6

T-80

KDX Residence Hiyoshi
KDX Residence
Kamikitazawa
KDX Residence Kaminoge

1

98.1

80

0.9

1

96.4

79

0.9

1

100.0

38

0.4

1

100.0

38

0.4

1

100.0

26

0.3

1

100.0

26

0.3

KDX Residence Kaminoge
KDX Residence NishiFunabashi
KDX Residence Hatagaya

1

95.1

21

0.2

1

90.0

18

0.2

1

98.3

31

0.4

1

91.6

27

0.3

1

92.9

61

0.7

1

93.3

60

0.7

1

96.9

23

0.3

1

91.3

23

0.3

1

91.4

16

0.2

1

96.3

17

0.2

1

100.0

50

0.6

1

98.2

50

0.6

T-89

KDX Residence Asagaya II
KDX
Residence
Gakugeidaigaku
KDX Residence Kamataminami
KDX Residence Kichijoji

1

90.1

15

0.2

1

83.0

14

0.2

T-90

KDX Residence Mitaka

1

97.7

64

0.7

1

98.7

68

0.8

T-91

KDX Residence Nakanobu

1

95.2

21

0.2

1

94.6

23

0.3

T-92

KDX Residence Ichika

1

97.9

22

0.3

1

97.9

23

0.3

T-93

KDX Residence Hatchobori

1

95.8

42

0.5

1

92.1

76

0.9

T-94

KDX Residence Nakaitabashi

1

98.7

40

0.5

1

96.1

44

0.5

T-53

T-58

T-65

T-69
T-70

Residential Facilities

Tokyo Metropolitan Area

T-71
T-72
T-73
T-74

T-81
T-82
T-83
T-84
T-85
T-86
T-87
T-88

38

19th
(From February 1, 2021 to July 31, 2021)

20th(From August 1, 2021 to January 31, 2022)

Area
Use

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)No.

Name of property

T-95

KDX Residence Shonandai
KDX Residence IkebukuroWest
KDX Residence Tennocho

1

98.0

47

0.5

1

99.1

47

0.5

1

100.0

41

0.5

1

100.0

55

0.6

1

97.8

20

0.2

1

95.6

21

0.2

1

100.0

13

0.2

1

100.0

24

0.3

1

100.0

6

0.1

1

100.0

20

0.2

－

－

－

－

1

100.0

82

0.9

－

－

－

－

1

100.0

15

0.2

－

－

－

－

1

95.9

34

0.4

R-2

KDX Residence Kawasaki
KDX Residence Kamataminami II
KDX Residence
Kamishakujii II
Hulic Residence Tsudanuma
KDX Residence Yokohama
Momijizaka
KDX Jozenji Dori Residence

1

93.6

52

0.6

1

97.8

52

0.6

R-3

KDX Izumi Residence

1

92.9

41

0.5

1

87.4

41

0.5

R-4

1

97.5

48

0.6

1

93.9

47

0.5

1

95.3

111

1.3

1

93.2

109

1.2

R-7

KDX Chihaya Residence
KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

1

94.3

60

0.7

1

97.1

57

0.6

R-8

KDX Shimizu Residence

1

97.9

75

0.9

1

96.5

74

0.8

R-9

1

96.2

34

0.4

1

92.3

34

0.4

1

99.0

39

0.4

1

100.0

39

0.4

1

95.3

23

0.3

1

97.0

24

0.3

1

93.5

27

0.3

1

98.0

27

0.3

1

89.8

90

1.0

1

92.5

89

1.0

1

94.0

37

0.4

1

92.5

35

0.4

R-18

KDX Residence Odori Koen
KDX Residence Kikusui
Yojo
KDX Residence Toyohira
Koen
KDX Residence Ichiban-cho
KDX Residence Higashisakura I
KDX Residence Higashisakura II
KDX Residence Jingumae

1

94.4

39

0.5

1

95.5

38

0.4

R-19

KDX Residence Nishi-oji

1

97.9

35

0.4

1

94.0

33

0.4

T-96
T-97
T-98
T-99
T-100
T-101
T-102

R-5

Other Regional Area

R-10
R-11
R-13
R-16
R-17

39

19th
(From February 1, 2021 to July 31, 2021)

Area
Use

No.

Name of property

20th(From August 1, 2021 to January 31, 2022)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)

R-20

KDX Residence Saiin

1

96.0

19

0.2

1

100.0

17

0.2

R-21

1

99.2

57

0.7

1

95.5

55

0.6

1

98.5

54

0.6

1

97.3

55

0.6

1

98.3

54

0.6

1

100.0

54

0.6

1

97.0

29

0.3

1

97.4

30

0.3

R-26

KDX Residence Namba
KDX Residence Nambaminami
KDX Residence Ibaraki I・IIKDX Residence Toyonakaminami
KDX Residence Moriguchi

1

100.0

24

0.3

1

100.0

24

0.3

R-27

KDX Residence Sannomiya

1

94.5

38

0.4

1

91.1

38

0.4

R-28

Ashiya Royal Homes
KDX Residence Funairi
Saiwai-cho
KDX Residence Tenjinhigashi II
KDX Residence Nishi Koen
KDX Residence Hirao Josuimachi
Leopalace Flat Shin-sakae
KDX Residence Koman
YamateKDX Residence
Hommachibashi
KDX Residence Minamikusatsu
KDX Residence Ohori
Harbor View Tower
KDX Residence Minamisanjo
Serenite Kita-kyuhoji
Serenite Nishinomiya
Hommachi
KDX Residence Nishijin

1

83.8

58

0.7

1

88.3

63

0.7

1

100.0

28

0.3

1

100.0

28

0.3

1

96.8

31

0.4

1

95.2

31

0.3

1

92.2

31

0.4

1

94.5

32

0.4

1

87.8

27

0.3

1

100.0

29

0.3

1

100.0

121

1.4

1

100.0

121

1.4

1

100.0

33

0.4

1

98.4

33

0.4

1

99.1

108

1.2

1

98.6

110

1.2

1

95.6

101

1.2

1

94.6

99

1.1

1

92.3

179

2.0

1

90.1

177

2.0

1

97.7

56

0.7

1

98.3

57

0.6

1

91.5

42

0.5

1

89.9

41

0.5

1

92.5

23

0.3

1

100.0

22

0.3

1

91.2

57

0.7

1

92.7

54

0.6

KDX Residence Hiyoshi
KDX Residence Shukugawa
Hills
KDX Residence Sendaiekihigashi
Subtotal

1

100.0

79

0.9

1

97.6

78

0.9

1

98.1

217

2.5

1

97.4

225

2.5

1

93.2

40

0.5

1

89.8

39

0.4

6,863

78.4

7,012

78.2

R-22
R-24
R-25

R-29
R-30

Other Regional Area

Residential Facilities

R-32
R-33
R-35
R-36
R-37
R-38
R-39
R-40
R-41
R-42
R-43
R-44
R-45
R-46

133

96.2

133

96.1

1

100.0

1

100.0

1

100.0

1

100.0

H-3

Irise Kamata/Yuseien
NichiiHome
NakanoMinamidai
Joy Stage Hachioji

1

100.0

1

100.0

H-4

Yuimaru Hijirigaoka

1

100.0

1

100.0

H-5

Nichii Home Tama Plaza

1

100.0

1

100.0

H-21

Plaisant Grand Ota tamagawa

1

100.0

1

100.0

H-22

Tsukui Sun-shine Machida

1

100.0

1

100.0

H-23

Serabi Ebisu

1

100.0

1

100.0

H-27

Grapes Kawasaki Shimmachi－－ disclosure disclosure

1

100.0 disclosure disclosure

H-28

Grapes Fujimino

－

－

1

100.0

H-6

Ten

1

100.0

1

100.0

H-7

Irise Nishioka

1

100.0

1

100.0

H-8

Izarie Eniwa Building

1

100.0

1

96.6

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

H-10

Activa Biwa
Sompo Care LAVIERE Kobe
TarumiRehabili-homeGranda

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

H-1
H-2

Healthcare Facilities

Tokyo Metropolitan Area
Other Regional Area

H-11
H-12

Non（Note5）

Non（Note5）

Non（Note5）

Non（Note5）

40

19th
(From February 1, 2021 to July 31, 2021)

Area
Use

No.

Name of property

20th(From August 1, 2021 to January 31, 2022)

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)

Mondo Yakujin
H-13

Excellent Nishinomiya

1

100.0

1

100.0

H-15

Excellent Kitano

1

100.0

1

100.0

H-16

Anesis Teradacho

1

100.0

1

100.0

H-17

Rococo-riha

1

100.0

1

100.0

H-18

Orage Suma

1

100.0

1

100.0

H-19

Canadian Hill

1

100.0

1

100.0

41

20th
(From August 1, 2021 to January 31, 2022)

19th(From February 1, 2021 to July 31, 2021)

Area

Use

No.

Name of property

Rental andRental andOccupancy
Ratio ofOccupancy
Ratio of
Number ofother
Number ofotherrate at therentalrate at therentaltenantsat
operatingtenants at
operatingend ofrevenue to
end ofrevenue tothe end ofrevenues
the end ofrevenues
periodtotal rental
periodtotal rental
period(million
period(million(%)
revenues(%)
revenues(Note 1)
(Note 1)yen)
yen)
(Note 2)
(Note 2)(%)(%)
(Note 3)(Note 3)

Other Regional
Area
Other

Healthcare Facilities

H-20

Anesis Hyogo

1

100.0

1

100.0

H-24

Arute Ishiyagawa

1

100.0

1

100.0

H-25

Medical-home Granda
Kurakuen

1

100.0

1

100.0

H-26

Rehabili-home Granda Kobe
Kitano

1

100.0

1

100.0

H-14

Gran Hills Ogawarako

1

100.0

1

100.0

28

99.9

1

100.0

1

100.0

2

100.0

165

97.3

26

100.0

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

1

100.0

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

1

100.0

Subtotal

2

100.0

Total

161

97.4

Subtotal

NonNondisclosure disclosure（Note5）

1,767（Note5）

20.2

Tokyo
Metropolitan
Area
Accommodation
Facilities

NonNondisclosure disclosure（Note5）

8,758（Note5）100.0

NonNondisclosure disclosure（Note5）（Note5）

1,828

20.4

NonNondisclosure disclosure（Note5）

8,962（Note5）100.0(Note1) Regarding residential, in the “number of tenants” column, if a master lease agreement has been executed with a master lease company,
1 is entered as the number of tenants. As of January 31, 2022, master lease agreements had been executed for all investment assets of
the Investment Corporation except for Raffine Minami-magome; the “total” for the “number of tenants” is the sum of the master leaseagreements for the properties (running number); and for the properties with no master lease agreement, the number of end tenants isentered. For reference, the total number of master lease companies is 12.
"Total number of tenants" of the healthcare facility and accommodation facility lists the total number of tenants of the master lease
contract pertaining to each asset effective as of the end of January 2022.
(Note2) The “occupancy rate” = leased area / leasable area x 100. The “total” for the “occupancy rate” column is the occupancy rate for the
portfolio as a whole.
(Note3) “Rental and other operating revenues” is the sum of a property’s rental business income for each fiscal period.
(Note4) (T-23) KDX Residence Sendagaya was sold on February 5, 2021. (T-44) KDX Residence Tobu Nerima was sold as well on December
16, 2022.
(Note5) The Investment Corporation has not obtained consent from the tenant to release this information.

(Details of investment securities)
Investment securities as of January 31, 2021 are as follows.

Name of assets

Type

Unit

Unit value
Equity interests in TK
Silentproperty fund withpartnership
G.K. Trinity One as
equity interest
operator (Note 1)
Total

Assessed value(Million yen)
(Note 2)

Book value(Million yen)
Value

－

－

109

－

－

109

Unit value
－
－

Value

Gain
(Loss) on
Remarks
valuation(Million yen)

109

－

－

109

－

－

(Note 1) TK property fund owns trust beneficiary interests in real estate for “Serenite Koshien Plie”, “KDX Residence Umejima” and“Excellent Takarazuka Garden Hills”.
（Note 2） Assessed value indicates book value.

（4）Details of Specified Transaction
The details of specified transaction at the end of 20th fiscal period are as follows.
42

Contact amount (million yen)Classification

Over-the-counter transactions

Transaction
Interest rate swap
(Floating-rate to fixedrate interest)(Note 1)

Over 1 year (Note 1)
115,520

98,870Fair value(million yen)
(Note 2) (Note 3)

65

Total
115,520
98,87065－(Note 1) The interest rate swap contract amount, etc. is based on the assumed principal.
(Note 2) With respect to those meeting the requirements for special treatment under the accounting standards for financial products, the fairvalue is not listed.
(Note 3) Appraised at the price presented by the financial institution that is the other party in the transaction.

(5) Other Assets
Real estate properties as well as beneficiary interests having real estate properties as major trust assets
are all set forth in (3) Details of portfolio assets above. There are not any other specified assets theInvestment Corporation owns at the end of 20th fiscal period except for those mentioned in (3) above.
(6) Asset Ownership per Country or Region
There is no relevant information for countries and regions other than Japan.

43

4. Capital Expenditures for Property(1)Planned Capital Expenditures

The table below shows major capital expenditures for renovations, repairs and other projects that are planned forthe 21th fiscal period ending July 31, 2022. These expenditures are for real estate owned by the Investment
Corporation and real estate in trusts in which the Investment Corporation owns trust beneficiary rights. Theseplanned projects may include some expenditure that will be recorded as expenses rather than capital expenditures
for accounting purposes.

No.

Name of property

Location

PurposeScheduled

Planned amount of capital
expenditure(million yen)
Payment Total of
Total for the advanced
period payment

T-53

KDX Residence Shinagawa
SeasideShinagawa-ku,
Tokyo

Major renewal
construction

From February 2022
To July 2022

75

－

－

T-11

KDX Chiba chuo Residence

Chiba-shi,
Chiba

From February 2022
To July 2022

61

－

－

T-35

KDX Bunkyo Sengoku Residence

Bunkyo-ku,
Tokyo

From February 2022
To July 2022

60

－

－

H-3

Joystage Hachioji

Hachioji-shi,Tokyo

From February 2022
To July 2022

50

－

－

R-28

Ashiya Royal Homes

Ashiya-shi,
Hyogo

From February 2022
To July 2022

45

－

－

T-57

KDX Residence Akihabara II

Chiyodaku,
Tokyo

Major renewal
construction
Major renewal
construction
Hot water
supply pipe
replacement
construction
Major renewal
construction
Major renewal
construction

From February 2022
To July 2022

40

－

－

（2）Capital Expenditures During the 20th Fiscal Period
The table below shows major capital expenditures for renovations, repairs and other projects in the 20th fiscal period
ended January 2022. The construction cost for the period amounted to 956 million yen, consisting of 639 million yen
of capital expenditures and 316 million yen of repair and maintenance expenses.
No.

Name of property

H-10

Activa Biwa

T-47

KDX Residence Machida

T-33
R-28

KDX Residence Yoga
Ashiya Royal Homes

Location

PurposeHot water supply pipe
replacement construction forresidence Bldg. (No.1-8)
Sagamihara-shi, Major renewal construction

Term

Capital expenditures(million yen)

From March 2021 To
October 2021

160

From September 2021
To January 2022

75

Setagaya-ku,
Tokyo

Major renewal construction

From September 2021
To December 2021

33

Ashiya-shi,
Hyogo

Elevator equipment
replacement construction

From January 2022
To January 2022

20

Otsu-shi, Shiga

Kanagawa

Other
Total

350
639

44

(3)

Reserved Funds for Long-term Maintenance Plan

In accordance with its long-term repair and maintenance plan for each property, the Investment Corporation setsaside, from the cash flow during the 20th fiscal period, repair and maintenance reserves designed to finance paymentof future medium- to long-term major repair and maintenance work.
(million yen)

Term
Reserve balance at the
beginning of the period
Amount of reserve
during the period
Reversal of reserves
during the period
Amount carriedforward to the next
period

16th
17th
18th
19th
From Aug. 1, 2019 From Feb. 1, 2020 From Aug. 1, 2020 From Feb. 1, 2021
to Jan. 31, 2021
to Jul. 31, 2021
to Jan. 31, 2020 to Jul. 31, 2020

20th
From Aug.1, 2021
to Jan. 31, 2021

898

921

953

982

1,015

36

41

29

37

50

12

9

―

4

29

921

953

982

1,015

1,036

45

5. Expenditures and Liabilities(1) Details of Asset Management Expenses(in thousands of yen)
19th
From February 1, 2021
to July 31, 2021

Item(ⅰ) Asset management fees (Note)(ⅱ) Asset custody fees(ⅲ) Administrative service fees(ⅳ) Directors’ compensation(ⅴ) Other operating expenses
Total

20th
From August 1, 2021
to January 31, 2022

668,991
15,03450,3688,100
297,440
1,039,935

684,755
15,46051,082
5,400
288,082
1,044,781（Note）There are other asset management fees in addition to the amount set forth above, and asset management fees pertaining to property
acquisitions (19th fiscal period: 69,632 thousand yen and 20th fiscal period:122,270 thousand yen) and sold fee pertaining to property
sold (19th fiscal period: 5,550 thousand yen and 20th fiscal period: 2,900 thousand yen).

(2)

Status of Interest-bearing Debt

Borrowings as of January 31, 2022 are as follows.
Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Short-termpayableDecember 10, 2021

-

500

0.385

April 30, 2022

Sumitomo Mitsui Banking Corporation

January 31, 2021

-

2,000

0.375

April 30, 2022

2,500

0.916

August 7, 2021

loans

Sumitomo Mitsui Banking Corporation

Subtotal-

Sumitomo Mitsui Banking Corporation

1,000

-

MUFG Bank, Ltd.

1,100

1,100

Mizuho Bank, Ltd.

600

600

Aozora Bank, Ltd.

350

350

Resona Bank, Ltd.

300

300

Mizuho Trust & Banking Co., Ltd.

300

300

August 7, 2014

1,000

-

0.996

August 7, 2021

Sumitomo Mitsui Banking Corporation

August 29, 2014

600

-

0.945

August 31, 2021

MUFG Bank, Ltd.

August 29, 2014

600

-

0.945

August 31, 2021

Aozora Bank, Ltd.

August 29, 2014

500

-

0.945

August 31, 2021

Sumitomo Mitsui Banking Corporation

February 5, 2015

1,200

-

0.875

January 31, 2022

Sumitomo Mitsui Banking Corporation

January 29, 2021

800

-

0.432

January 31, 2022

Sumitomo Mitsui Banking Corporation

April 30, 2014

2,000

2,000

1.267

April 30, 2022

Aozora Bank, Ltd.

April 30, 2014

1,500

1,500

1.267

April 30, 2022

MUFG Bank, Ltd.

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Resona Bank, Ltd.

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Aozora Bank, Ltd.

April 30, 2015

2,000

2,000

0.875

April 30, 2022

1,100

1,100

1,100

1,100

1,000

1,000

1.115

July 29, 2022

300

300

February 28, 2022

August 7, 2014

Development Bank of Japan Inc.

(Note 3)Current portion of long-term borrowings

Shinsei Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.

July 29, 2015

Mizuho Bank, Ltd.
Sompo Japan Insurance Inc.

1,000

1,000

Sumitomo Mitsui Banking Corporation

February 26, 2021

-

1,000

0.432

Sumitomo Mitsui Banking Corporation

February 26, 2021

-

500

0.432

February 28, 2022

Mizuho Bank, Ltd. (Note 5)

November 14, 2014

950

950

1.083

November 30, 2022

Resona Bank, Ltd. (Note 5)

August 31, 2015

1,100

1,100

0.923

August 31, 2022

Mizuho Trust & Banking Co., Ltd. (Note 5)

August 31, 2015

700

700

0.923

August 31, 2022

Sumitomo Mitsui Banking Corporation (Note 5)

August 31, 2018

1,000

1,000

0.509

August 31, 2022

MUFG Bank, Ltd. (Note 5)

August 31, 2018

400

400

0.509

August 31, 2022

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4）
Unguaranteedmaturity
date

Repaymentof principal

Unsecured/in full on （Note 4）
Unguaranteedmaturitydate46

Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)Development Bank of Japan Inc. (Note 3 )(Note 5)

August 31, 2018

1,600

1,600

0.498

August 31, 2022

Shinsei Bank, Ltd. (Note 5)

July 31, 2019

500

500

0.272

January 31, 2023

28,20019,750Subtotal

Debt
Financing
MethodUse

Remarks

47

Classification

Balance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Sumitomo Mitsui Banking Corporation

400

400

MUFG Bank, Ltd.

400

400

Mizuho Bank, Ltd.

300

300

Resona Bank, Ltd.

200

200

Mizuho Trust & Banking Co., Ltd.

200

200

Aozora Bank, Ltd.

150

150

LenderDrawdown
Date

August 7, 2014

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

1.254

Debt
Financing
MethodUse

Remarks

August 7, 2023

Development Bank of Japan Inc. (Note 3)

August 7, 2014

500

500

1.320

August 7, 2023

MUFG Bank, Ltd.

February 5, 2015

1,200

1,200

1.105

January31, 2024

Resona Bank, Ltd.

April 30, 2015

1,500

1,500

0.987

April 30, 2023

MUFG Bank, Ltd.

April 30, 2015

2,000

2,000

1.100

April 30, 2024

Sumitomo Mitsui Banking Corporation

April 30, 2015

1,000

1,000

1.265

April 30, 2025

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2015

950

950

1.047

August 31, 2023

MUFG Bank, Ltd.

August 31, 2015

1,700

1,700

1.169

August 31, 2024

Mizuho Bank, Ltd.

August 31, 2015

950

950

1.169

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2015

2,000

2,000

1.345

August 31, 2025

Development Bank of Japan Inc. (Note 3)

August 31, 2015

1,000

1,000

1.193

August 31, 2024

MUFG Bank, Ltd.

October 27, 2015

1,000

1,000

1.156

April 27, 2025

MUFG Bank, Ltd.

April 28, 2016

1,000

1,000

0.819

April 28, 2025

Sumitomo Mitsui Banking Corporation

April 28, 2016

2,500

2,500

0.903

April 30, 2026

MUFG Bank, Ltd. (Note 3)

August 1, 2016

1,000

1,000

0.660

July 31, 2025

Mizuho Bank, Ltd. (Note 3)

August 30, 2016

1,500

1,500

0.816

August 31, 2026

Aozora Bank, Ltd.

August 31, 2016

1,000

1,000

0.713

August 31, 2024

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2016

1,000

1,000

0.797

August 31, 2025

Resona Bank, Ltd.

August 31, 2016

500

500

0.797

August 31, 2025

48

Classification

LenderDrawdown
Date

Balance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)Long-term borrowings

MUFG Bank, Ltd. (Note 3)

August 31, 2016

2,000

2,000

0.670

August 31, 2025

Mizuho Trust & Banking Co., Ltd. (Note 3)

August 31, 2016

500

500

0.751

August 31, 2025

Sumitomo Mitsui Banking Corporation

August 31, 2016

3,000

3,000

0.906

August 31, 2026

Development Bank of Japan Inc. (Note 3)

November 1, 2016

1,000

1,000

0.773

October 31, 2025

Resona Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Shinsei Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Mizuho Trust & Banking Co., Ltd. (Note 3)

August 22, 2017

1,200

1,200

0.928

August 22, 2027

Development Bank of Japan Inc. (Note 3)

August 22, 2017

1,000

1,000

0.928

August 22, 2027

Mizuho Bank, Ltd. (Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

THE BANK OF FUKUOKA, LTD. (Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.501

February 28,2023

MUFG Bank, Ltd.

August 31, 2017

1,500

1,500

0.501

February 28, 2023

Aozora Bank, Ltd.

August 31, 2017

1,500

1,500

0.582

February 29, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,000

1,000

0.582

February 29, 2024

MUFG Bank, Ltd.

August 31, 2017

1,000

1,000

0.582

February 29, 2024

Mizuho Bank, Ltd.

August 31, 2017

500

500

0.624

August 31, 2024

Mizuho Trust & Banking Co., Ltd. (Note 3)

August 31, 2017

500

500

0.661

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.665

February 28, 2025

Resona Bank, Ltd.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Nippon Life Insurance Company (Note 3)

July 30, 2018

0.900

January30, 2027

0.799

February2, 2026

500

500

Sumitomo Mitsui Banking Corporation

1,500

1,500

MUFG Bank, Ltd.

1,400

1,400

Mizuho Bank, Ltd.

900

900

Development Bank of Japan Inc.

500

500

Nippon Life Insurance Company

500

500

400

400

Shinsei Bank, Ltd.

400

400

Sumitomo Mitsui Trust Bank, Limited.

400

400

Mizuho Trust & Banking Co., Ltd.

400

400

Aozora Bank, Ltd.

300

300

THE BANK OF FUKUOKA, LTD.

300

300

Resona Bank, Ltd.

August 2, 2018

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,200

1,200

0.592

August 31, 2023

Aozora Bank, Ltd.

August 31, 2018

1,000

1,000

0.592

August 31, 2023

MUFG Bank, Ltd.

August 31, 2018

800

800

0.592

August 31, 2023

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,050

1,050

0.914

February 28,2027

Resona Bank, Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Bank, Ltd.

August 31, 2018

250

250

0.914

February 28, 2027

Development Bank of Japan Inc. (Note 3)

August 31, 2018

1,400

1,400

0.884

February 28, 2027

MUFG Bank, Ltd. (Note 3)

August 31, 2018

800

800

0.825

February 28, 2027

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4） Unguarantmaturity
eed
date

49

Classification

LenderDrawdown
Date

Balance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Nippon Life Insurance Company (Note 3)

September 28, 2018

700

700

0.920

September 30, 2026

Shinsei Bank, Ltd.

September 28, 2018

1,000

1,000

1.031

September 30, 2028

Sumitomo Mitsui Trust Bank, Limited.

September 28, 2018

800

800

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 28, 2018

500

500

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

June 3, 2019

400

400

0.363

November 30, 2024

Mizuho Bank, Ltd. (Note 3)

June 3, 2019

2,000

2,000

0.330

May 31, 2025

Shinsei Bank, Ltd.

June 3, 2019

500

500

0.484

November 30, 2025

Mizuho Bank, Ltd.

Long-term borrowings

July 31, 2019

800

800

0.299

July 31, 2023

Sumitomo Mitsui Banking Corporation

September 17, 2019

1,000

1,000

0.572

August 31, 2026

MUFG Bank, Ltd.

October 29, 2019

500

500

0.325

April 30, 2023

Resona Bank, Ltd.

October 29, 2019

450

450

0.336

April 30, 2024

MUFG Bank, Ltd.

November 29, 2019

1,500

1,500

0.600

November 30, 2026

Shinsei Bank, Ltd.

January31, 2020

500

500

0.329

July 31, 2023

Mizuho Trust & Banking Co., Ltd.

January31, 2020

300

300

0.329

July 31, 2023

Sumitomo Mitsui Trust Bank, Limited.

January31, 2020

300

300

0.329

July 31, 2023

THE BANK OF FUKUOKA, LTD.

January31, 2020

200

200

0.329

July 31, 2023

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Banking Corporation

March 2, 2020

500

500

0.464

February 28, 2027

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Resona Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

THE BANK OF FUKUOKA, LTD.

March 2, 2020

400

400

0.414

February 28, 2027

MUFG Bank, Ltd. (Note 3)

March 2, 2020

400

400

0.450

February 28, 2027

Aozora Bank, Ltd.

March 2, 2020

200

200

0.531

February 29, 2028

MUFG Bank, Ltd. (Note 3)

March 13, 2020

600

600

0.300

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

June 30, 2020

1,000

1,000

0.646

June 30, 2028

Shinsei Bank, Ltd.

June 30, 2020

800

800

0.646

June 30, 2028

Development Bank of Japan Inc. (Note 3)

June 30, 2020

500

500

0.616

June 30, 2028

Sumitomo Mitsui Banking Corporation

July 29, 2020

1,750

1,750

0.691

July 31, 2028

Shinsei Bank, Ltd.

July 29, 2020

1,750

1,750

0.641

July 31, 2028

MUFG Bank, Ltd.

July 29, 2020

1,000

1,000

0.641

July 31, 2028

Mizuho Bank, Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Resona Bank, Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Sumitomo Mitsui Banking Corporation

July 31, 2020

1,000

1,000

0.686

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

August 3, 2020

800

800

0.637

July 31, 2028

MUFG Bank, Ltd.

August 31, 2020

500

500

0.640

August 31, 2028

Aozora Bank, Ltd.

August 31, 2020

300

300

0.690

August 31, 2028

Sumitomo Mitsui Banking Corporation

September 24, 2020

840

840

0.648

September 30, 2028

Sumitomo Mitsui Banking Corporation

September 30, 2020

900

900

0.658

September 30, 2028

Mizuho Bank, Ltd.

September 30, 2020

800

800

0.658

September 30, 2028

Mizuho Bank, Ltd.

September 30, 2020

1,330

1,330

0.658

September 30, 2028

Resona Bank, Ltd.

September 30, 2020

500

500

0.558

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 30, 2020

400

400

0.608

September 30, 2028

MUFG Bank, Ltd. (Note 3)

September 30, 2020

800

800

0.550

September 30, 2028

MUFG Bank, Ltd.

October 27, 2020

300

300

0.637

October 31, 2027

Mizuho Bank, Ltd.

November 2, 2020

500

500

0.478

April 30, 2025

Mizuho Trust & Banking Co., Ltd.

November 2, 2020

1,000

1,000

0.585

October 31, 2027

Sumitomo Mitsui Banking Corporation

November 30, 2020

2,000

2,000

0.617

November 30, 2027

MUFG Bank, Ltd.

January 29, 2021

1,000

1,000

0.599

January 31, 2028

Mizuho Bank, Ltd.

January 29, 2021

1,200

1,200

0.409

January 31, 2025

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4） Unguarantmaturity
eed
date

50

Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mil. yen)of period(mil. yen)

Averageinterest
rate

Payment
due date(Note 1)
(Note 2)

Mizuho Trust & Banking Co., Ltd.

January 29, 2021

1,100

1,100

0.359

January 31, 2025

Aozora Bank, Ltd.

March 31, 2021

1,350

1,350

0.677

March 31, 2029

Shinsei Bank, Ltd.

July 30, 2021

1,000

1,000

0.252

July 31, 2024

Daishi Hokuetsu Bank, Ltd. (Note 3)

July 30, 2021

500

500

0.350

January 31, 2027

The Bank of Yokohama,Ltd.

July 30, 2021

1,000

1,000

0.467

July 31, 2029

Sumitomo Mitsui Banking Corporation

July 30, 2021

1,400

1,400

0.598

January 31, 2030

MUFG Bank, Ltd. (Note 3)

July 30, 2021

1,000

1,000

0.575

January 31, 2030

Nippon Life Insurance Company (Note 3)

July 30, 2021

1,000

1,000

0.700

January 31, 2030

The Yamaguchi Bank, Ltd.

August 2, 2021

-

800

0.358

February 28, 2027

The Chugoku Bank, Ltd.

August 2, 2021

-

500

0.358

February 28, 2027

The 77 Bank, Ltd.

August 2, 2021

-

500

0.358

February 28, 2027

Mizuho Bank, Ltd.

August 10, 2021

-

500

0.282

February 28, 2023

Mizuho Trust & Banking Co., Ltd.

August 10, 2021

-

200

0.232

February 28, 2023

Aozora Bank, Ltd.

August 10, 2021

-

350

0.533

February 28, 2029

Resona Bank, Ltd.

August 10, 2021

-

300

0.433

February 28, 2029

Sumitomo Mitsui Banking Corporation

August 10, 2021

-

1,200

0.585

February 28, 2030

MUFG Bank, Ltd. (Note 3)

August 10, 2021

-

1,200

0.575

February 28, 2030

Development Bank of Japan Inc. (Note 3)

August 10, 2021

-

1,000

0.638

August 31, 2031

Aozora Bank, Ltd.

August 31, 2021

-

500

0.540

February 28, 2029

MUFG Bank, Ltd. (Note 3)

August 31, 2021

-

600

0.525

February 28, 2029

Sumitomo Mitsui Banking Corporation

August 31, 2021

-

600

0.602

February 28, 2030

The Chiba Bank, Ltd. (Note 3)

November 31, 2021

-

600

0.325

November 30, 2026

The Musashino Bank, Ltd (Note 3)

November 31, 2021

-

500

0.325

November 30, 2026

THE BANK OF FUKUOKA, LTD.

December 10, 2021

-

800

0.230

November 30, 2023

The Hyakugo Bank, Ltd.

December 10, 2021

-

500

0.314

November 30, 2025

THE HACHIJUNI BANK, LTD.

December 10, 2021

-

500

0.314

November 30, 2025

The Shizuoka Bank, Ltd.

December 10, 2021

-

200

0.314

November 30, 2025

Aozora Bank, Ltd. (Note 3)

December 10, 2021

-

1,000

0.529

May 31, 2029

THE NISHI-NIPPON CITY BANK, LTD.

December 10, 2021

-

500

0.561

November 30, 2029

The Yamanashi Chuo Bank, Ltd.

December 10, 2021

-

500

0.561

November 30, 2029

The Yamaguchi Bank, Ltd.

December 10, 2021

-

1,000

0.631

November 30, 2030

The Bank of Yokohama, Ltd.

December 10, 2021

-

700

0.631

November 30, 2030

Kansai Mirai Bank, Limited

December 10, 2021

-

500

0.703

November 30, 2031

The Bank of Kyoto, Ltd.

December 10, 2021

-

300

0.703

November 30, 2031

Subtotal

110,020

125,870

Total

138,220

148,120

Debt
Financing
MethodUse

Remarks（Note 1）All debts except for the following Note 3 are borrowing at a floating rate.
（Note 2）Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal places. Also, with regard
to borrowings for which interest rate swap transactions and other derivative transactions were implemented in order to hedge the interest rate
volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and other derivatives areindicated.
（Note 3）Borrowings is applied at a fixed rate.
（Note 4）All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses are included)
and repayment of debts.
（Note 5）Debts classified in current portion of long-term loans payable from the 20th fiscal period, therefor included in long-term loans payable in theprevious fiscal period.

（3）Investment Corporation Bonds
Outstanding Investment corporation bonds as of January 31, 2022 are as follows.
SeriesDate of issue

Balance at Balance at theInterest rate
the beginning end of period（%）
of period(mil. yen)

Repayment date

Repayment
methodUse

Remarks51

(mil. Yen)First Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Third Series Unsecured
Investment Corporation
Bonds
Fourth Series Unsecured
Investment Corporation
Bonds
Fifth Series Unsecured
Investment Corporation
Bonds
Sixth Series Unsecured
Investment Corporation
Bonds（Social Bond）
Seventh Series Unsecured
Investment Corporation
Bonds（Social Bond）
Total

August 30, 2016

1,000

-

0.200

August 30, 2021

August 30, 2016

1,000

1,000

0.540

August 28, 2026

August 30, 2016

1,000

1,000

0.800

August 30, 2028

November 30,
2018

1,000

1,000

0.410

November 30,
2023

November 30,
2018

1,000

1,000

0.850

November 30,
2028

December 20,
2019

2,000

2,000

0.750

December 20,
2029

May 31,
2021

1,700

1,700

0.720

May 30,
2031

7,000

7,700

（Note 1）

Repaymentof principal
in full on
maturity
date（Note 3）（Note 2）

（Note 1）Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate and repayment of debts.
（Note 2）Funds for acquisition of assets eligible for social finance or funds for repayment of borrowings procured with the aim of allocation to funds for acquisitionof assets eligible for social finance.
（Note 3）Ranking pari passu among the specified investment corporation bonds.

（4）Status of Short-Term Investment Corporation Bonds
Not applicable（5）Investment Unit Warrants
Not applicable

6．Acquisitions and Sales during the 20th Fiscal Period(1) Acquisitions and Sales of Real Estate Properties and Asset-backed Securities, etc., Infrastructure Assets
and Infrastructure-related Assets
Acquisition
Type

No.

Sale

Acquisition
price
Acquisition date (million yen)

Name

Sales date

(Note 1)

Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

Book value Gain and loss
Sale price (inmillions)(million yen) (million yen) (million yen)
（Note 1）

（Note 2）

（Note 2）T-100

KDX Residence Kamishakujii
II

August 2.
2021

3,087

－

－

－

－

T-101

Hulic Residence Tsudanuma

November 30,
2021

1,150

－

－

－

－

T-102

KDX Residence
Momijizaka

December 10,
2021

5,000

H-27

Grapes Kawasaki Shimmachi

December 10,
2021

1,470

－

－

－

－

H-28

Grapes Fujimino

December 10,
2021

1,520

－

－

－

－

T-44

KDX Residence Tobu Nerima－－

December16, 2021

580

379

180

Yokohama

August 26,
September 30,
107
－
－
－
－
November 30,
2021（Note 1）“Acquisition price” and “Sale price” are the amount identified in the purchase or sale agreement of each trust beneficiary interest(excluding expenses required for the acquisition or sale, property tax, city planning tax or consumption tax, etc.), rounded down to
the nearest whole million yen.
（Note 2）“Book value” and “Gain and loss” are rounded down to the nearest whole million yen.
SilentPartnership
Interest-

Equity interests in TK
property fund with G.K.
Trinity One as operator(2) Acquisitions and Sales of Other Assets
52

Other than the foregoing real estate properties, asset-backed securities, infrastructure assets and other infrastructurerelated assets, major assets in general are bank deposits or bank deposits within trust assets.

(3) Appraisals of Specified Assets(ⅰ) Real Estate, etc.
Transa
ction

Type

No.

Date ofacquisitionor saleProperty nameAcquisition
Appraisal
price or Sale
value
price
(million yen)(million yen)
(Note 2)

Appraiser

As of Appraisal
date(Note 1)

Trust
Acquis Beneficiary
itionInterest

T-100 KDX Residence Kamishakujii II

August 2,
2021

3,087

3,280

Trust
AcquisBeneficiary
itionInterest

T-101 Hulic Residence Tsudanuma

November30, 2021

1,150

1,320

Trust
AcquisBeneficiary
itionInterest

T-102

December
10, 2021

5,000

5,170

Trust
Acquis Beneficiary
itionInterest

H-27 Grapes Kawasaki Shimmachi

December
10, 2021

1,470

1,520

Trust
Acquis Beneficiary
itionInterest

H-28

Grapes Kawasaki Fujimino

December
10, 2021

1,520

1,550

Trust
BeneficiaryInterest

T-44

KDX Residence Tobu Nerima

December
16,
2021

580

565

Sale

KDX

Residence

Yokohama

Momijizaka

The Tanizawa
Sōgō Appraisal
July 31, 2021
Co., Ltd.
DAIWA REALESTATE
October 1, 2021
APPRAISAL
CO., LTD.
Japan Real Estate October 1, 2021
Institute
DAIWA REALESTATEAPPRAISAL
CO., LTD.
DAIWA REALESTATEAPPRAISAL
CO., LTD.
Japan Real
Estate Institute

October 1, 2021

October 1, 2021
July 31, 2021

（Note 1）“Acquisition price or Sale price” are the amount identified in the purchase or sale agreement of each trust beneficiary interest(excluding expenses required for the acquisition or sale, property tax, city planning tax or consumption tax, etc.), rounded down to
the nearest whole million yen.
（Note 2）“Appraisal value” of specific assets above was calculated in accordance with the guideline of “Real Estate Appraisal Standards,
Chapter 3, Appraisal of Securitized Real Estate.”(ii) Investment securities or others
Transaction

Product nameDate of acquisition

Acquisition price(million yen)(Note)

Assessment price ofspecific asset(million yen)

Acquisition

Equity interests in TK property fund with G.K.
Trinity One as operator

August26/September
30/November 30

107

115

（Note）“Acquisition price” are the contribution amount identified in the silent partnership agreement or other related documents (excluding
related expenses required for the investment.), rounded down to the nearest whole million yen.

(iii) Others
With regard to transactions and contracts entered by the Investment Corporation whose values shall be
investigated based on the Act on Investment Trusts and Investment Corporations, Ernst & Young ShinNihon
LLC performs an investigation of the transactions. For the fiscal period from August 1, 2021 to January 31, 2022,
the transactions subject to such investigation were a transaction for acquisition of silent partnership interest andfifteen interest rate swap transactions, for which the Investment Corporation received reports from Ernst & Young
ShinNihon LLC. With regard to the acquisition of the silent partnership interest, the Investment Corporationcommissioned an investigation of matters concerning the operating assets related to the silent partnership contract ,details of the silent partnership contract and transactions and other details of the acquisition of the silent
partnership interest, and with regard to interest rate swap transaction, investigation was performed with respect
to details of the interest swap contracts, such as the name of counter parties, contract amounts, the period oftransactions or other matters related to the details of the relevant OTC derivative transactions.
This survey is not a part of the audit for financial statements, and there is no guarantee of fairness of the priceand internal management system.

（4）Transactions with Related-Party(i) Transactions
53

Category
Total amountTransaction with related party
GK RF2GK KRF96
GK KSLF10
Total

Transaction price (million yen)
Acquisition price（Note 2）
12,227 million yen
5,000 million yen
3,087 million yen
2,990 million yen
11,077 million yen

Sale price（Note 2）
580 million yen（40.9％）（25.2％）（24.5％）（90.6％）

－
－
－
－

（－％）
（－％）
（－％）
（－％）

(ii) Amounts of Fees Paid
Category
Brokerage fee

Total amount of fee
paid（A）
34 million yen

Transaction with related party
Payment recipient
Fee amount（B）
Kenedix Inc.
17 million yen（B）/（A）
49.8％(Note 1) A related-party, etc. is a defined as a related-party, etc. of the asset management company having executed an asset management
entrustment agreement with the Investment Corporation provided in Article 123 of the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations and Article 26, Item 27 of Rules on asset management reports, pertaining toinvestment trusts and investment corporations of the Investment Trusts Association, Japan.
(Note 2) The “Acquisition price” and the “Sale price” don’t include the related cost to the transaction, tax and dues reimbursement, consumption
tax, etc.
(Note 3) The amount of payments including expenses for repair work of which orders were placed to related-party, etc. during the 20th fiscal
period other than the above paid fees is as follows.
Kenedix Engineering, Inc.
Construction costs recorded as capital expenditure: 30 million yen

Repair costs: 2 million yen（5）Transactions with Asset Management Company Related to Concurrent Operations Carried Out by the
Asset Management Company
There is no transaction with the Asset Management Company, KFM, regarding to the Type II Financial Instruments
Business, and Building Lots and Buildings Transaction Business. Furthermore, KFM does not concurrently engage
in any of Type I Financial Instruments Business, Real Estate Specified Joint Business.

54

7．Accounting(1)

Assets, Liabilities, Principal and Profit/Loss

Please see the Balance Sheet, the Statement of Income and Retained Earnings, the Statement of Unitholders’ Equity,
Notes and the Calculation pertaining to Distributions below.

(2)

Change to Calculation of Depreciation AmountNot applicable(3)

Change to Real Estate and Other Infrastructure Assets Appraisal Method
Not applicable(4)Disclosure Pertaining to Investment Trust Beneficial Right Securities, etc.

The status of investment units held by the Asset management Company of the Investment Corporation (Kenedix
Real Estate Fund Management, Inc) is as follows.

(ⅰ) Acquisitions
Date of acquisition

Number of units

Number of disposal
units

Number of units held

March 1, 2018 (Note)

1

-

1

Accumulated total

1

-

1

(Note) The Asset Management Company acquired one investment unit of Japan Senior Living Investment Corporation on July 21, 2015.
Following the merger with the Investment Corporation, the Asset Management Company acquired its investment units on March 1,
2018, which is the effective date of the merger.

(ⅱ) Ownership

13th Fiscal Period
From February 1, 2018 to July 31, 2018
14th Fiscal Period
From August 1, 2018 to January 31, 201915th Fiscal Period
From February 1, 2019 to July 31, 2019
16th Fiscal Period
From August 1, 2019 to January 31, 2020
17th Fiscal Period
From February 1, 2020 to July 31, 2020
18th Fiscal Period
From August 1, 2020 to January 31, 2021
19th Fiscal Period
From February 1, 2021 to July 31, 2021
20th Fiscal Period
From August 1, 2021 to January 31, 2022

(5)

Number of units
held at end of fiscal
period（Unit）

Asset held at the endof fiscal period（million yen）

Ratio to total number ofunits issued (%)

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

Disclosure Pertaining to Overseas Real Estate Holding Corporations
Not applicable(6)

Disclosure Pertaining to Real Estate Held by Overseas Real Estate Holding Corporations
Not applicable55

8. Other（1） General Information(i) Unitholders’ General Meeting
The 7th General Meeting of Unitholders of the Investment Corporation was held on October 27, 2021.
The main outlines of the matters approved by the unitholders' general meeting are as follows.
AgendaOverview

Agenda No. 1:
Partial Changes to Articles ofIncorporation

The partial changes to the Articles of Incorporation are as follows.
(1) From the perspective of selecting the most appropriate investment targets in light of theinvestment policy of the Investment Corporation aiming to gain stable rental income andto achieve steady growth in the asset size, we will revise the provisions regarding theinvestment posture in order to limit the main use of the real estate-related assets, in which
the Investment Corporation mainly invests, to residential facilities and healthcare facilities(Article 30, Paragraph 1 of the current Articles of Incorporation).
(2) We will revise the relevant provisions in accordance with the changes to the fairvaluation method for the securities and the rights pertaining to derivative transactions dueto the publication of ASBJ Statement No. 30 “Accounting Standard for Fair Value
Measurement” and ASBJ Statement No. 10 “Accounting Standard for Financial
Instruments” (including newly established or amended accounting standards, guidelines,
etc. relating thereto) and other reasons (Article 35, Paragraph 1, Item 6 and Item 9 of thecurrent Articles of Incorporation).
(3) In addition to the above, expressions, and words and phrases will be modified andrevised for the preparation of provisions, clarification of the contents of provisions orotherwise.

Agenda No. 2:
Election of Two (2) Executive
Directors

Two executive directors, Tetsu Kawashima were appointed. The term of office shall be twoyears beginning from November 1, 2021.

Agenda No. 3:
Election of One (1) Alternative
Executive Director

One alternative executive director, Shin Yamamoto was appointed. The effective term
shall be from November 1, 2021, on which the executive directors will be appointed
pursuant to Proposal No. 2, until October 31, 2023 on which the term of office of theexecutive directors will expire.

Agenda No. 4:
Election of Three (3) Supervisory
Directors

Three supervisory directors, Osamu Chiba, Satoshi Ogawa and Osamu Utsunomiya wereappointed. The term of office shall be two years beginning from November 1, 2021.

(ii) Board of directors’ Meeting
The following is an outline of the major agreements and changes approved by the Investment Corporation's Boardof Directors during the 20th fiscal period.
Date of approval

October 26, 2021

Items

Overview

Regarding the conclusion of amemorandum of amendment
to an asset managementagreement

The Investment Corporation entered into a memorandum of agreement withasset management company for the amendment of the asset managementagreement on October 27, 2021, in order to clarify that the Investment
Corporation pure focuses on residential properties and healthcare facilities asmain investment targets.

The following is an outline of the major agreements and changes approved by the Investment Corporation's Boardof Directors after the end of 20th fiscal period.
Date of approval

February 14, 2022

Items

Overview

Conclusion of new investment
unit underwriting agreement

Entrusted administrative work related to solicitation of investment units to
be issued to underwriters (SMBC Nikko Securities Co., Ltd., Mizuho
Securities Co., Ltd., Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan
Stanley Securities Co., Ltd., Daiwa Securities Co. Ltd, Tokai Tokyo Securities
Co., Ltd.).

（2）OtherUnless otherwise specified, amounts are rounded down, and ratios are rounded off.

56

[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shallprevail.

57

Financial Statements(20th Fiscal Period: From August 1, 2021 to January 31, 2022)

Independent Auditor’s Report
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements

58

59

60

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of January 31, 2022
20th Fiscal Period
as of January 31, 2022

19th Fiscal Period
as of July 31, 2021

(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 9)
Cash and deposits in trust (Notes 9)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 18 and 23)
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment, net
Intangible assets
Leasehold right in trust (Notes 18 and 23)
Other
Total intangible assets
Investments and other assets
Investment securities (Notes 12 and 22)
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets¥13,828,613
11,153,990
236,109
10,3105,272
25,234,296¥16,724,647
10,811,226
168,096
15,82325,296
27,745,090

173,018
115,859,756(17,273,700)
98,586,055
1,335,781(354,077)
981,7031,545,362(486,797)
1,058,565
1,054,703(176,789)
877,913
172,904,875
274,582,133

172,666
111,119,141(15,847,746)
95,271,394
1,249,509(319,090)
930,419
1,501,150(452,582)
1,048,567
941,780(147,578)
794,202
164,872,506
263,089,757

1,113,305
1,681
1,114,987

1,115,030
2,458
1,117,488

109,688
89,381
1,016,936
166,099
1,382,104
277,079,225‐
89,381
998,658
12,7581,100,798
265,308,044

48,06948,75096,819¥302,410,342

52,037
71,778123,816¥293,176,951

61

20th Fiscal Period
as of January 31, 2022

19th Fiscal Period
as of July 31, 2021

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥655,849¥671,687

Short-term loans payable (Notes 25)

2,500,000-

Current portion of investment corporation bonds (Notes 11 and 24)
Current portion of long-term loans payable (Notes 11, 14 and 25)
Accounts payable-otherAccrued expenses
Income taxes payable

19,750,000
409,744
54,800605

1,000,000
21,950,000
424,095
49,510605

31,94466,0201,263,949
71,603

1,203,553
76,116

6,636

12,261

24,745,132

25,453,849

Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds (Notes 11 and 24)

7,700,000

7,700,000

Long-term loans payable (Notes 11, 14 and 25)
Tenant leasehold and security deposits in trust

125,870,000
3,464,769

116,270,000
3,396,104

4,671,456

4,570,534

68,26468,078Tenant lump sum deposits in trust
Asset retirement obligations (Note 17)
Other
Total noncurrent liabilities
Total liabilities

100,012499,957

141,874,503

132,504,674

166,619,636

157,958,524

116,322,630

116,322,630

13,187,100

13,187,100

1,880,000

1,900,000

NET ASSETS
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Voluntary retained earnings
Reserve for temporary difference adjustments (Note 5)
Total voluntary retained earnings

1,880,000

1,900,000

4,335,589

4,296,284

19,402,689
135,725,319

19,383,384
135,706,015

65,386(487,588)

Unappropriated retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 11 and 14)

65,386(487,588)

Total net assets (Note 4)

Total valuation and translation adjustments

135,790,706

135,218,427

Total liabilities and net assets¥302,410,342¥293,176,951

See accompanying notes to the financial statements.

62

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from August 1, 2021 to January 31, 2022
20th Fiscal Period
from August 1, 2021 toJanuary 31, 2022

19th Fiscal Period
from February 1, 2021
to July 31, 2021

(in thousands of yen)
Operating revenues
Rent revenue-real estate (Note 7)
Other lease business revenue (Note 7)
Gain on sales of real estate property (Note 7)
Total operating revenues
Operating expenses
Expenses related to rent business (Note 7)
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Consumption taxes refund
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 16)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥8,434,013
528,925
180,124
9,143,063¥8,145,546
612,776
437,537
9,195,861

3,257,431
684,755
15,46051,082
5,400
288,082
4,302,212
4,840,850

3,333,440
668,991
15,03450,3688,100
297,440
4,373,375
4,822,485

42
141
184

43
397
43,28776
43,805533,039
26,994
134,043
3,968
23,027721,074
4,119,960
4,119,960

529,613
23,359130,855
4,505
30,528718,862
4,147,428
4,147,428

605
605
4,119,355
216,234¥4,335,589

605
605
4,146,823
149,461¥4,296,284

See accompanying notes to the financial statements.

63

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from August 1, 2021 to January 31, 2022

Unitholders'
capitalBalance as of January 31, 2021 (Note 8)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2021 (Note 8)
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2022 (Note 8)¥108,550,294

Capital surplus¥13,187,100

Unitholders' equity
Surplus
Voluntary retained
earnings
Unappropriat
Reserve for
Total
ed retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)
¥1,920,000¥1,920,000¥3,997,276

Total
unitholders'equityTotal
surplus¥19,104,376

7,772,336

7,772,336(20,000)

7,772,336¥116,322,630¥116,322,630¥127,654,670¥13,187,100¥13,187,100(20,000)

20,000--(3,867,815)
4,146,823(3,867,815)
4,146,823(3,867,815)
4,146,823(20,000)¥1,900,000(20,000)¥1,900,000

299,008¥4,296,284

279,008¥19,383,384

8,051,344¥135,706,015(20,000)(20,000)

20,000--(4,100,050)
4,119,355(4,100,050)
4,119,355(4,100,050）
4,119,355

39,304¥4,335,589

19,304¥19,402,689

19,304¥135,725,319(20,000)¥1,880,000(20,000)¥1,880,000

Valuation and translation adjustments
Deferred gains orlosses on hedges

Balance as of January 31, 2021 (Note 8)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2021 (Note 8)
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2022 (Note 8)

Total valuationand translation
adjustments(in thousands of yen)¥(522,600)¥(522,600)

Total net assets¥127,132,070
7,772,336(3,867,815)
4,146,823

35,01235,01235,01235,012¥(487,588)

35,012¥(487,588)

8,086,357¥135,218,427(4,100,050)
4,119,355

552,974

552,974

552,974

552,974¥65,386

552,974¥65,386

572,279¥135,790,706

See accompanying notes to the financial statements.

64

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from August 1, 2021 to January 31, 2022
20th Fiscal Period
from August 1, 2021
to January 31, 2022

19th Fiscal Period
from February 1, 2021
to July 31, 2021

(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Decrease in net property, plant and equipment held in trust due to sale
Other, net¥4,119,960
1,590,604
3,968
23,027(42)560,034(68,012)5,512
73,023(13,861)(34,076)
60,395(18,277)
379,169
15,389¥4,147,428
1,547,032
4,505
30,528(43)552,973(77,134)(6,246)(60,583)
85,95630,091
56,11657,754
631,984(145,674)

Subtotal

6,696,814

6,854,688

Interest income received
Interest expenses paid
Income taxes (paid) refund

42(560,700)(604)

43(559,047)(605)

Net cash provided by (used in) operating activities

6,135,552

6,295,079(351)(13,548,175)(109,688)(126,302)
194,966(129,873)
230,795(7,895,245)(179,176)
400,972(190,257)
141,861

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Payments for lease and guarantee deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant lump sum deposits in trust
Proceeds from tenant lump sum deposits in trust
Net cash provided by (used in) investing activities(13,488,628)(7,721,844)

Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid

2,500,000
15,850,000(8,450,000)(1,000,000)(4,100,193)‐(2,000,000)
8,750,000(6,750,000)
1,684,522‐
7,728,578(3,867,656)

Net cash provided by (used in) financing activities

4,799,806

5,545,445

Net increase (decrease) in cash and cash equivalents(2,553,270)

4,118,679

Cash and cash equivalents at the beginning of period

27,535,874

23,417,194

Cash and cash equivalents at the end of period (Note 9)¥24,982,604¥27,535,874

See accompanying notes to the financial statements.

65

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from August 1, 2021 to January 31, 2022

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Residential Next Investment Corporation (“the Investment Corporation”) was established on November 15, 2011 under the Act on
Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On April 26, 2012, the Investment Corporation was listed on
the Real Estate Investment Trust Market of the Tokyo Stock Exchange (Securities Code: 3278). The Investment Corporation implemented a 2-for-1
split of its investment units held by unitholders set forth or recorded in the final unitholder registry on February 28, 2018 with March 1, 2018 as theeffective date. And also on March 1, 2018, the Investment Corporation conducted an absorption-type merger (“the Merger”) whereby the Investment
Corporation was the surviving corporation and Japan Senior Living Investment Corporation (“JSL”) was the dissolving corporation.
After "the Merger", the Investment Corporation raised funds through four public offerings and three third-party allotment. As of January 31, 2022,
the end of the 20th fiscal period, the number of investment units issued and outstanding totaled 995,883 units.
The Investment Corporation is externally managed by Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”), a
company that was formed with personnel from Kenedix, Inc. and adheres to the core philosophies of Kenedix, Inc., that is, to provide management
services from the perspective of real estate investors a real estate management company. As the asset manager, the Asset Management Company
shall provide flexible and speedy real estate investment and management services based on the strategies of the Investment Corporation: “Flexible
pursuit for appropriate investment and profit opportunities with comprehension of the real estate market trends” and “Speedy execution based on
expeditious information collection and judgement.”
During the 20th fiscal period, the Investment Corporation acquired 3 residential properties (total acquisition price of ¥9,237 million) and 2
healthcare properties (total acquisition price of ¥2,990 million) and sold 1 residential property (acquisition price of ¥420 million, disposition price of¥580 million). As a result, the Investment Corporation has a portfolio comprised of 165 properties (total acquisition price of ¥277,569 million) as ofJanuary 31, 2022, the end of the 20th fiscal period. The portfolio consists of 135 residential properties (total acquisition price of ¥210,999 million),
28 healthcare properties (total acquisition price of ¥61,610 million) and 2 accommodation properties (total acquisition price of ¥4,960 million).
The occupancy rates of the overall portfolio were 97.4% and 97.3% as of the end of the 19th and 20th fiscal period, respectively. Furthermore,
the average occupancy rates of the properties for residential and healthcare were 96.1% and 99.9% as of the end of the 20th fiscal period.
During the 19th and 20th fiscal period, the Investment Corporation made borrowings of ¥8,750 million and ¥8,450 million for the repayment ofdebt matured. During the 20th fiscal period, the Investment Corporation made new borrowings of ¥9,900 million upon acquiring properties. As aresult, the balance of borrowings as of the end of the 19th and 20th fiscal period stood at ¥138,220 million and ¥148,120 million, respectively. Thebalance of interest-bearing debt including investment corporation bonds as of the end of the 19th and 20th periods, was ¥146,920 million and¥155,820 million, respectively.
Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan (Japanese GAAP), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, the Financial
Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which were preparedin accordance with Japanese GAAP and were presented in the Securities Report of the Investment Corporation filed with the Kanto Local Finance
Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements
issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial statements
include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
The Investment Corporation fiscal period is a six-month period which ends at the end of January or July. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

66

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Securities
Non-marketable securities classified as other securities are carried at cost. Cost of securities sold is determined by the moving average method.
Concerning silent partnership (tokumei kumiai, “TK”) interests, the method of incorporating the amount of equity equivalent to the portion that
corresponds to the net gain or loss of the TK is adopted.
(B) Property and Equipment (including trust assets)
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimateduseful lives of the assets ranging as stated below:

Buildings

From August 1, 2021 toJanuary 31, 2022
2-69 years

From February 1, 2021
to July 31, 2021
2-69 years

Structures

3-65 years

3-65 years

Machinery and equipment

3-40 years

3-40 years

Tools, furniture and fixtures

2-30 years

2-30 years(C) Intangible Assets (including trust assets)
Intangible assets are amortized by the straight-line method. Fixed-term leaseholds are amortized by the straight-line method based on thecontract period.
(D) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized by the straight-line method.
(E) Unit Issuance Costs
Unit issuance costs are amortized over a period of 3 years under the straight-line method.
(F) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.
(G) Accounting Treatment of Trust Beneficiary Interests in Real Estate
For trust beneficiary interests in real estate, which are commonly utilized in the ownership of commercial properties in Japan, all relevant assets
and liabilities in trust are recorded on the balance sheet and the statement of income and retained earnings.
(H) Revenue Recognition
Operating revenues consist of rental revenues including base rents, common area charges and other operating revenues, which include utility
charge reimbursement, parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an
accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably
estimated. Reimbursements from tenants including utility charge reimbursements are recorded on a gross basis and such amounts arerecorded both as revenues and expenses during the fiscal period.
(I)

Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar
year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period.
Under Japanese tax regulations, the seller of the property is liable for these taxes on the property from the date of disposal to the end of the67calendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period
following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the propertyrelated taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥31,508
thousand and ¥7,873 thousand as of July 31, 2021 and January 31, 2022, respectively.
(J) Accounting for revenues
The main content of the performance obligation regarding the revenue from contracts with the customers of the Investment Corporation andthe normal point of time when satisfying the said performance obligation (normal point of time when recognizing revenue) are as follows.
1. Sale of real estate property
For the revenue from sale of real estate, etc., revenue is recorded when the buyer who is a customer gains control of the real estate by
performing the obligation of handover stipulated in the contract for real estate sales.
2. Utility charge reimbursements
For utility charge reimbursement, revenue is recorded in accordance with the supply of electricity, tap water, etc. to the lessee who is a customer
based on the lease agreement of real estate, etc. and the content of agreement incidental to it.
Of the utility charge reimbursement, for those that are determined to fall under the category of an agent by the Investment Corporation, the net
amount obtained by deducting the amount paid to other related parties supplying electricity, gas, etc. from the amount received as the fee ofelectricity, gas, etc. is recognized as revenue.
(K) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets andliabilities using the statutory tax rates.
(L) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes
applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(M) Derivative Financial Instruments
The Investment Corporation enters into derivative transactions to hedge risks prescribed in its Articles of Incorporation based on its risk
management policies. The Investment Corporation hedges interest rate volatility risk of its interest payments on its borrowings by utilizing
interest rate swap as hedging instruments.
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the time of judgment of its
effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments are compared and a judgment is made basedon changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate swaps andother derivatives that meet the requirements for special treatment.
(N) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily
convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.
(O) Presentation of Amounts
Amounts of less than one thousand yen are truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and
filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios are rounded off in the accompanying
financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.

683. CHANGES IN ACCOUNTING POLICIES
1. Application of Accounting Standard for Revenue Recognition, etc.
The Investment Corporation applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 issued on March 31, 2020.
“the Revenue Recognition Accounting Standard”), etc. from the beginning of the current calculation period, and recognize revenue based on theamount which is expected to be received in exchange for the promised goods and services when the control of such goods and services istransferred to customers. This has minimal impact on the financial statement for the current calculation period.
Moreover, in accordance with the transitional treatment stipulated in Paragraph 89-3 of the Revenue Recognition Accounting Standard, the notes“related to revenue recognition” for the previous calculation period are not indicated.
2. Application of Accounting Standard for Fair Value Measurement, etc.
The Investment Corporation applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019. “theFair Value Measurement Accounting Standard”), etc. from the beginning of the current calculation period, and apply the new accounting policy
stipulated in the Fair Value Measurement Accounting Standard, etc. over the future in accordance with the transitional treatment stipulated in
Paragraph 19 of the Fair Value Measurement Accounting Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments”(ASBJ Statement No. 10 issued on July 4, 2019). This has minimal impact on the financial statement for the current calculation period.
Furthermore, pursuant to the provisions of Supplementary Provisions Article 2, Paragraph 5 of the Cabinet Office Order to Partially Amend
Regulation on Terminology, Forms, and Preparation Methods of Financial Statements (Cabinet Office Order No. 61 dated September 24, 2021),
descriptions are omitted for the matters listed in Article 8-6-2, Paragraph 1, Item 3 of the revised Regulation on Terminology, Forms, andPreparation Methods of Financial Statements.

4. NET ASSETSThe Investment Corporation issues only non-par value units in accordance with the Investment Trust Act. The entire amount of the issue price of
new units is designated as stated capital. The Investment Corporation is required to maintain net assets of at least ¥50,000 thousand as required by
the Investment Trust Act.

5. RESERVE FOR TEMPORARY DIFFERENCE ADJUSTMENTS
As of January 31, 2022
The following summarizes reserve for temporary difference adjustments.

Initial amount

Balance atthebeginningof theperiodReserveduringtheperiodBalanceatthe endoftheperiodReversalduringtheperiodReason for reserve andreversal(in thousands of yen)
Appropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥1,900,000¥-¥20,000¥1,880,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.
As of July 31, 2021
The following summarizes reserve for temporary difference adjustments.

Initial amount

Balance atthebeginningof theperiodReserveduringtheperiodBalanceatthe endoftheperiodReversalduringtheperiodReason for reserve andreversal(in thousands of yen)
Appropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥1,920,000¥-¥20,000¥1,900,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.

69

6. COMMITMENT LINE CONTRACTS
KDR has commitment line contracts with the following financial institutions
As of January 31, 2022

As of July 31, 2021
(in thousands of yen)

Total amount of commitment line contracts¥4,500,000¥4,500,000--¥4,500,000¥4,500,000

Balance of loans payable outstanding
Remaining amount

7. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY
Rental and other operating revenues and property-related expenses for the periods from August 1, 2021 to January 31, 2022 and from February 1,
2021 to July 31, 2021 consist of the following:
From August 1, 2021
From February 1, 2021
to January 31, 2022
to July 31, 2021
(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥8,059,188¥7,783,762

374,825

361,784¥8,434,013¥8,145,546

Parking space rental revenues

211,358

209,493

Miscellaneous

317,566

403,283

Subtotal

528,925

612,776¥8,962,938¥8,758,323

Property management fees and facility management fees

¥ 461,343¥482,452

Utilities

105,032

93,519Taxes

532,192

533,686

Repairs and maintenance316,759

365,133

Insurance

15,603

13,681

Common area charges
Subtotal
Others:Total rental and other operating revenues
B. Property-related expenses:

Trust fees

59,82758,580Depreciation

1,589,828

1,546,256

OthersTotal property-related expenses
C. Net operating income from real estate rental business (A-B)

176,844

240,128¥3,257,431¥3,333,440¥5,705,506¥5,424,883

Gain on sales of real estate property:
From August 1, 2021 to January 31, 2022
(in thousands of yen)
KDX Residence Tobu Nerima
Revenue from sale of real estate property¥580,000Cost of real estate property

379,169

Other sales expenses
Gain on sales of real estate property

20,705¥180,124

70

From February 1, 2021 to July 31, 2021
(in thousands of yen)
KDX Residence Sendagaya
Revenue from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sales of real estate property¥1,110,000
631,984
40,478¥437,537

8. UNITHOLDERS’ EQUITY
Total number of authorized investment units and total number of investment units issued and outstanding are as follows:

Total number of authorized investment units

From August 1, 2021
to January 31, 2022
10,000,000 units

From February 1, 2021
to July 31, 2021
10,000,000 units

995,883 units

995,883 units

Total number of investment units issued and outstanding

9. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of January 31, 2022 and July 31, 2021:
As of January 31, 2022

As of July 31, 2021

(in thousands of yen)
Cash and deposits¥13,828,613¥16,724,647

Cash and deposits in trust

11,153,990

10,811,226

Cash and cash equivalents¥24,982,604¥27,535,874

10. LEASESThe Investment Corporation, as lessee, has entered into Fixed-term lease contract whereby fixed monthly rents are due in advance. The future
minimum rental expenses under existing non-cancelable operating leases as of January 31, 2022 and July 31, 2021 are as follows:
As of January 31, 2022

As of July 31, 2021

(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

521,000

527,000

Total¥533,000¥539,000

The Investment Corporation, as lessor, has entered into leases whereby fixed monthly rents are due in advance with a lease term of generally
two years for residential properties. The future minimum rental revenues under existing non-cancelable operating leases as of January 31, 2022 andJuly 31, 2021 are as follows:
As of January 31, 2022

As of July 31, 2021

(in thousands of yen)Due in 1 year

¥5,941,594¥6,078,634

Due after 1 year

14,709,787

13,592,410

Total¥20,651,381¥19,671,045

71

11. FINANCIAL INSTRUMENTS(A). Overview(1) Policy for financial instruments
The Investment Corporation procures funds for asset acquisitions, repairs, payment of distributions, repayment of loans, etc. through loans fromfinancial institutions, issuance of investment corporation bonds, issuance of investment units and other means. With regard to the procurement ofinterest-bearing debts, the Investment Corporation ensures that it can effectively combine stable long-term funds with flexible short-term funds.
Management of surplus funds is undertaken through various bank deposits focusing on safety, liquidity and effectiveness. The Investment
Corporation uses derivatives for the purpose of hedging its exposure to changes in interest rates and other risks and does not enter into derivativetransactions for speculative or trading purposes.
(2) Types of financial instruments and related risk
Bank deposits are for managing the Investment Corporation’s surplus funds and are exposed to credit risk such as the bankruptcy of financial
institutions at which funds are deposited. Investment securities represent equity investments in an anonymous association and are exposed tocredit risk of the issuer, risk of fluctuation of value of its property and interest rate fluctuation risk.
Borrowings and investment corporation bonds are made primarily for the purpose of procuring funds for the acquisition of real estate and trust
beneficiary interests in real estate and have a repayment date of a maximum of 9 years and 10 months for borrowings and also have a redemption
date of a maximum of 9 years and 4 months for investment corporation bonds as of January 31, 2022, the end of the 20th fiscal period, areexposed to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are
exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of theborrowings.
(3) Risk management for financial instruments
a. Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored
by deposits in non-interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. Investment
securities represent equity investments in an anonymous association and are exposed to credit risk of the issuer and interest rate fluctuation risk.
To manage this credit risk, the Investment Corporation regularly evaluates the results of operations and the financial condition of the issuer, etc. In
utilizing derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable
ratings.
b.

Market risk

While borrowings with floating rates are exposed to interest rate volatility risk, such risk is monitored by adjusting the rate of the balance ofborrowings with floating rates against the total borrowings according to the financial environment, interest rate forecasts by continuous monitoring,etc. and by using derivatives, etc. While investment securities, which are equity investments in an anonymous association, are exposed to credit
risk of the issuer and property value fluctuation risk, the Investment Corporation periodically reviews the value of the property and financial conditionof the issuer with regard to these investment securities. A risk management policy is established with regard to the execution and management ofderivatives, and such transactions are entered into based on this policy.
c.

Liquidity risk

Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by
diversifying financial institutions. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fairvalue.
(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table. Investments in TK (Note2) are excluded from the table below. Disclosure of cash and deposits , cash and deposits in trust and Short-term loans payable are omitted because
the book value of these assets is deemed a reasonable approximation of the fair value as they are cash or with short maturities.

72

As of January 31, 2022
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Current portion of investment corporation bonds

¥

-

¥

-

¥

-

(2) Current portion of long-term loans payable

19,750,000

19,745,024(4,975)(3) Investment corporation bonds

7,700,000

7,658,870(41,130)

125,870,000

126,071,920

201,920

153,320,000

153,475,815

155,815(4) Long-term loans payable
Subtotal
Derivative transactions*¥65,386¥65,386¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of July 31, 2021
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Current portion of investment corporation bonds¥1,000,000¥999,800¥ (200)(2) Current portion of long-term loans payable

21,950,000

21,965,460

15,460(3) Investment corporation bonds

7,700,000

7,691,110(8,890)116,270,000

116,667,820

397,820

146,920,000

147,324,190

404,190(4) Long-term loans payable
Subtotal
Derivative transactions*¥(487,588)¥(487,588)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions.

Liabilities(1) Current portion of investment corporation bonds and (3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
(2) Current portion of long-term loans payable and (4) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates arereflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment Corporation has
not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interestrate swaps is based on the present value of the total of principal and interest, accounted for together with the applicable interest-rate swaps,
discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type.)
Derivative transactions
Please refer to Note 14 “DERIVATIVE TRANSACTIONS”.
Note 2: Investment in TK
For Investment in TK , notes relating to the matters stipulated in Paragraph 4, item 1 of the "Implementation Guidance on Disclosures about Fair
Value of Financial Instruments" (Accounting Standards Board of Japan Guidance No. 19 revised on March 31, 2020) are omitted as the Investment
Corporation applies the treatment stipulated in Paragraph 27 of the "Implementation Guidance on Accounting Standard for Fair Value
Measurement" (Accounting Standards Board of Japan Guidance No. 31 issued on July 4, 2019). The net book values of equity interests in silent
partnership are ¥109,688 thousand as of January 31, 2022.
Note 3: Redemption schedule for loans payable and investment corporation bonds

73

As of January 31, 2022
Due in 1 year or
less
Investment
corporation bonds
Long-term loans
payableTotal¥

Due after 1 year
through 2 years

Due after 2 years
Due after 3 years
through 3 years
through 4 years(in thousands of yen)-¥

Due after 4 years
through 5 years

Due after 5 years-¥ 1,000,000¥5,700,000-¥ 1,000,000¥

19,750,000

15,900,000

16,900,000

16,700,000

21,300,000

55,070,000¥19,750,000¥16,900,000¥16,900,000¥16,700,000¥22,300,000¥60,770,000

Due in 1 year or
less

Due after 1 year
through 2 years

Due after 2 years
Due after 3 years
through 3 years
through 4 years(in thousands of yen)

Due after 4 years
through 5 years

Due after 5 years¥1,000,000¥ -¥1,000,000

¥ -

¥-

¥6,700,000

21,950,000

13,350,000

15,850,000

16,350,000

19,000,000

51,720,000¥22,950,000¥13,350,000¥16,850,000¥16,350,000¥19,000,000¥58,420,000

As of July 31, 2021

Investment
corporation bonds
Long-term loans
payableTotal

12. INVESTMENT SECURITIES
19th Fiscal Period (February 1, 2021 to July 31, 2021): Not applicable
20th Fiscal Period (August 1, 2021 to January 31, 2022):
Based on Article 8-6-2, paragraph 3 of the Regulations on Financial Statements, note disclosures defined in item 2 of the said paragraph forequity interests in silent partnerships (Book value: 109,688 thousand yen) are omitted.

7413. REVENUE RECOGNITION
1. Information on the breakdown of revenue from contracts with customers
20th Fiscal Period (August 1, 2021 to January 31, 2022)
Revenue from contracts with customers*1

Net sales to external customers

Revenue from sale of real estate, etc.

580,000 thousand yen*2

180,124 thousand yen

Utility charge reimbursement

43,262 thousand yen

43,262 thousand yen

Other− thousand yen

8,919,676 thousand yen

Total

623,262 thousand yen

9,143,063 thousand yen*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the saleof real estate, etc. subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using
Special Purpose Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified Public
Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards.
Moreover, the main revenue from contracts with customers are revenue from sale of real estate, etc. and utility charge
reimbursement.
*2 As proceeds from sale of real estate property are recorded as gain on sale of real estate property in the statements of income
and retained earnings, the amount calculated by deducting the cost of real estate property sales and other sales expenses
from proceeds from sale of real estate property is indicated.
2. Information utilized as the base for understanding revenue from contracts with customers
20th Fiscal Period (August 1, 2021 to January 31, 2022)
The information is as described in the notes on important accounting standards.
3. Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow generated from said
contracts and amount and period of revenue expected to be recognized in the next calculation period or thereafter from contracts withcustomers existing at the end of the current calculation period(1) Balance of contract assets and contract liabilities, etc.
20th Fiscal Period(August 1, 2021 to January 31, 2022)
Receivables from contracts with generated from contracts with customers(balance at beginning of fiscal year)
Receivables from contracts with generated from contracts with customers(balance at end of fiscal year)
Contract assets (balance at beginning of fiscal year)
Contract assets (balance at end of fiscal year)
Contract liabilities (balance at beginning of fiscal year)
Contract liabilities (balance at end of fiscal year)

3,830 thousand yen
2,969 thousand yen
- yen
- yen
- yen
- yen

(2) Transaction value allocated to remaining performance obligations
Not applicable.
With regard to utility charge reimbursements, as the Investment Corporation has the right to receive from customers an amountdirectly corresponding to the value for the lessees, or customers, of sections for which performance is complete by the end of the
fiscal period, the amount it has the right to claim is recognized as revenue in accordance with Paragraph 19 of the Implementation
Guidance on Accounting Standard for Revenue Recognition. Accordingly, such is not included in the note on transaction value
allocated to remaining performance obligations through application of the provisions of Paragraph 80-22 (2) of the AccountingStandard for Revenue Recognition.

75

14. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of January 31, 2022 are shown in the following table.
(1)

Transactions not subject to hedge accounting(2)

Transactions subject to hedge accounting

Not applicableHedge
accounting
methodType of derivativetransactions

Hedged items

Contract amount(in thousands of yen)
Maturing afterTotal
1 yearFair value(in thousandsof yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term¥91,320,000¥84,920,000¥65,386 provided by counterparty
Receive/floating andloans payablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term
for interest-rate
24,200,000
13,950,000*
Receive/floating andloans payable
swaps
pay/fixed
Total¥115,520,000¥98,870,000¥65,386*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value
Accounting
method, inprinciple

is included in the fair value of the hedged long-term loans payable.
The contract amount and the fair value of interest-rate swap transactions as of July 31, 2021 are shown in the following table.
(1)

Transactions not subject to hedge accounting
Not applicable(2)

Transactions subject to hedge accounting
Hedge
accounting
methodType of derivativetransactions

Hedged items

Contract amount(in thousands of yen)
Maturing after 1
Total
year

Fair value(in thousandsof yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term¥82,870,000¥78,370,000¥(487,588) provided by counterparty
Receive/floating and loans payablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term
for interest-rate
30,850,000
16,700,000*
Receive/floating and loans payable
swaps
pay/fixed
Total¥113,720,000¥95,070,000¥(487,588)*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value
Accounting
method, inprinciple

is included in the fair value of the hedged long-term loans payable.

15. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 19th Fiscal Period (February 1, 2021 to July 31, 2021): Not applicable
2．Affiliated companies and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 19th Fiscal Period (February 1, 2021 to July 31, 2021): Not applicable
3．Fellow subsidiary companies and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 19th Fiscal Period (February 1, 2021 to July 31, 2021): Not applicable
4．Directors, major individual unitholders and other20th Fiscal Period (August 1, 2021 to January 31, 2022) and 19th Fiscal Period (February 1, 2021 to July 31, 2021): Not applicable76

16. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements under the Special Taxation
Measures Law of Japan are met, including a requirement that it currently distributes in excess of 90% of its net income for the fiscal period in order
to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of theInvestment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excess of 90% of its
distributable income in the form of cash distributions totaling ¥4,084 million and ¥4,100 million for the periods ended January 31, 2022 and July 31,
2021, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.01% for the periods ended January 31, 2022 and July 31, 2021. The following table summarizes thesignificant differences between the statutory tax rate and the effective tax rate.
From August 1, 2021
to January 31, 2022
31.46%

From February 1, 2021
to July 31, 2021
31.46%

Deductible cash distributions(31.10)(31.09)Others(0.35)(0.36)

Effective tax rate

0.01%

0.01%

Statutory tax rate

The significant components of deferred tax assets and liabilities as of January 31, 2022 and July 31, 2021 are as follows:
As of January 31, 2022

As of July 31, 2021

(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥628,384¥644,993

Deferred gains or losses on hedges

31,684

157,409

Asset retirement obligations

21,476

21,417

Amortization of leasehold right in trust

2,894

2,351

20

20

Other
Subtotal deferred tax assets

684,459

826,192

Valuation allowance(684,459)(826,192)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

17. ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations reported on balance sheets
1. Summary of the asset retirement obligations
The Investment corporation has recognized the original state restoration obligations assumed under the general fixed-term land leasehold agreement
as the asset retirement obligations in connection with Arute Ishiyagawa acquired on June 3, 2019.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 0.54711% and the useful life has been estimated to be 47 years and one
month based on the time period from the date of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following
From August 1, 2021
to January 31, 2022

From February 1, 2021
to July 31, 2021

(in thousands of yen)
Balance at the beginning of period
Accretion adjustment
Balance at the end of period¥68,078¥67,892

186

185¥68,264¥68,07877

18. INVESTMENT AND RENTAL PROPERTIESThe Investment Corporation owns real estate for rental purposes in the Tokyo Metropolitan Area and other regional areas for the purpose ofgenerating rental revenues.
The book value and fair value concerning the above real estate for rental purposes are as follows.
20th Fiscal Period
from August 1, 2021
to January 31, 2022

19th Fiscal Period
from February 1, 2021
to July 31, 2021

(in thousands of yen)Book value
Balance at the beginning of period
Changes during the period
Balance at the end of period
Fair value at the end of period¥264,204,787¥258,384,330

11,490,651

5,820,457

275,695,438

264,204,787¥344,484,000¥323,918,000

Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 20th fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 5 properties totaling ¥12,816,688 thousand, and the principal decrease was the salesof real estate trust beneficiary interests in 1 property totaling ¥379,169 thousand and depreciation of ¥1,589,641 thousand, and during the
19th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in 5 properties totaling ¥7,340,422
thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1 property totaling ¥631,984 thousand anddepreciation of ¥1,546,070 thousand.
Income and loss in the fiscal periods ended January 31, 2022 and July 31, 2021 for real estate for rental purposes is listed in Note 7 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY”.

19. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from August 1, 2021 to January 31, 2022 and from February 1, 2021 to July 31, 2021 is asfollows:(A) Segment information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business, and it has no reportable segment
subject to disclosure.
(B) Related information(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income and retained earnings.
(2) Information about each geographic area(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income
and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plantand equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income
and retained earnings.

7820. PER UNIT INFORMATION
From February 1, 2021

From August 1, 2021
to January 31, 2022
Net asset value per unit

to July 31, 2021

¥136,352¥135,777

Net income per unit

¥4,136¥4,189Weighted average number of units (units)995,883

989,825

The weighted average number of units outstanding of 995,883 and 989,825 were used for the computation of the amount of net income per unit
as of January 31, 2022 and July 31, 2021, respectively.
Net income per unit after adjusting for residual units is not included because there were no residual investment units.
The basis for calculating net income per unit is as follows:
From February 1, 2021

From August 1, 2021
to January 31, 2022
Net income (in thousands of yen)

to July 31, 2021

¥4,119,355

Net income not available to ordinary unitholders (in thousands of yen)
Net income available to ordinary unitholders (in thousands of yen)
Weighted average number of units during the period (units)¥4,146,823--¥4,119,355¥4,146,823

995,883

989,825

21. SIGNIFICANT SUBSEQUENT EVENTSIssuance of New Investment Units
On February 14, 2022 and February 17, 2022, the Board of Directors of the Investment Corporation resolved to issue new investment units as thefunds for acquiring specified assets and other use. Payments for the issuance of new investment units through public offering and third-party allotment
have been completed on February 24, 2022 and March 10, 2022, respectively.
As a result of the issuance of new investment units, the Investment Corporation had total unitholders’ capital of ¥125,564,617,378 with 1,045,758
investment units outstanding as of March 10, 2022.
(Issuance of New Investment Units through Public Offering)Issuance of new investment units:

47,500 units

Issue price (Offer price):¥191,490 per unit

Aggregate issue price (Total offer price):¥9,095,775,000

Issue amount (Paid-in value):¥185,303 per unit

Total issue amount (Aggregate paid-in value):¥8,801,892,500

Payment date:February 24, 2022

(Issuance of New Investment Units through Third-Party Allotment)
Issuance of new investment units:

2,375 units

Issue amount (Paid-in value):¥185,303 per unit

Total issue amount (Aggregate paid-in value):¥440,094,625

Payment date:

March 10, 2022

Allottee:

SMBC Nikko Securities Inc.

79

22. SECURITIES PORTFOLIO
Securities portfolio consists of the following as of January 31, 2022
(1)

Stock

Not applicable(2)

Securities other than shares
Type

Name

Silent Partnership
Equity Interests
Total

Equity interests in TK property fund with G.K.
Trinity 1 as operator (Note 1)

Face value
totalBook value

Prepaid
accruedinterest

Accruedinterest

Assessed Gain (Loss)value
onRemarks（Note 2） valuation(in thousands of yen)-

109,688--

109,688--

109,688--

109,688-

Note 1: TK property fund owns trust beneficiary interests in real estate for “Serenite Koshien Plie” , “KDX Residence Umejima” and “Excellent
Takarazuka Garden Hills”.
Note 2: The assessed value is stated at the book value.
Securities portfolio consists of the following as of July 31, 2021
(1)

Stock

Not applicable(2)

Securities other than shares

Not applicable80

23. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
Property, plant and equipment consist of the following as of January 31, 2022:
Type of asset

Land

Property,plant andequipment

Intangible
assets

Sub total
Buildings in trust
Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures in trust
Land in trust
Sub total
Total
Leasehold right in
trust
Other
Total

Balance atthebeginning of
period¥172,666
172,666
111,119,141
1,249,509

Increaseduring theperiodDecreaseduring theperiod

¥

¥

351
351
4,972,427
87,2201,501,150

231,812949

44,212

Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥173,018¥¥
173,018
115,859,756
17,273,700
1,488,852
1,335,781
354,077
35,616

Balance atthe end of
period-1,545,362

486,797

34,214Netbalance at
end of theperiod¥173,018
173,018
98,586,055 Notes 1 and 2
981,703
1,058,565

941,780

113,155232

1,054,703

176,789

29,233

164,872,506
279,684,088
279,856,754

8,242,093
13,459,110
13,459,462

209,724442,719442,719

172,904,875
292,700,479
292,873,498

18,291,364
18,291,364

1,587,916
1,587,916

1,122,504--

1,122,504

9,199

1,724

1,113,305

7,762¥1,130,267

-

-

7,762
¥1,130,267

6,080¥15,280776¥2,501

1,681¥1,114,987¥¥

Remarks

877,913
172,904,875 Notes 1 and 2
274,409,114
274,582,133

Note 1: The amount of increase during the period is primarily attributable to the acquisition of the real estate properties and capital expenditures.
Note2: The amount of decrease during the period is primarily attributable to the sales of the real estate property.
Property, plant and equipment consist of the following as of July 31, 2021:
Type of asset

Land

Property,plant andequipment

Intangible
assets

Sub total
Buildings in trust
Structures in trust
Machinery andequipment in trust
Tools, furnitureand fixtures in trust
Land in trust
Sub total
Total
Leasehold right in
trust
Other
Total

Balance atthebeginning of
period¥172,666
172,666
108,177,749
1,175,676

Increaseduring theperiodDecreaseduring theperiod¥¥3,112,405
75,269Depreciation
Depreciation
for theperiod(in thousands of yen)
¥172,666¥¥
172,666
111,119,141
15,847,746
1,450,106
1,249,509
319,090
34,603

Balance atthe end of
period171,014
1,436

Accumulated
depreciation

Netbalance at
end of theperiod¥172,666
172,666
95,271,394 Notes 1 and 2
930,419

1,493,742

11,7154,307

1,501,150

452,582

33,8301,048,567

798,111

145,367

1,698

941,780

147,578

25,805794,202160,714,888
272,360,169
272,532,836

4,653,754
7,998,512
7,998,512

496,137
674,593
674,593

164,872,506
279,684,088
279,856,754

16,766,997
16,766,997

1,544,345
1,544,345

1,122,504--

1,122,504

7,474

1,724

1,115,030-

7,762¥1,130,267

5,304¥12,779776¥2,501

2,458¥1,117,488

7,762¥1,130,267

¥

-

¥

Remarks

164,872,506 Notes 1 and 2
262,917,090
263,089,757

Note 1: The amount of increase during the period is primarily attributable to the acquisition of the real estate properties and capital expenditures.
Note2: The amount of decrease during the period is primarily attributable to the sales of the real estate property.

8124. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of January 31, 2022 are as follows.
SeriesDate of issue

First series of unsecured
investment corporation bonds(Note 1)
Second series of unsecured
investment corporation bonds(Note 1)
Third series of unsecured
investment corporation bonds(Note 1)
Fourth series of unsecured
investment corporation bonds(Note 1)Fifth series of unsecured
investment corporation bonds(Note 1)
Sixth series of unsecured
investment corporation
bonds(Social bond) (Note 1)
Seventh series of unsecured
investment corporation
bonds(Social bond) (Note 1)

August 30,

Balance atthebeginning of
periodDecreaseduring theperiodBalance at theend of period

Interest rate

Repayment date

Use

Remarks(Note2)

Unsecured(in thousands of yen)
2016
August 30,
2016
August 30,
2016
November 30,
2018
November 30,
2018
December 20,
2019
May 31,
2021

Total

¥1,000,000¥1,000,000-¥-

0.200%

August 30,2021

1,000,000-

1,000,000

0.540%

August 28,2026

1,000,000-

1,000,000

0.800%

August 30,2028

1,000,000-

1,000,000

0.410%

November 30,2023

1,000,000-

1,000,000

0.850%

November 30,2028

2,000,000-

2,000,000

0.750%

December 20,2029(Note3)

Unsecured

1,700,000-

1,700,000

0.720%

May 30, 2031

(Note4)

Unsecured-¥ 7,700,000¥8,700,000¥

Note 1: Ranking pari passu among the specified investment corporation bonds.
Note 2: Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate andrepayment of debts.
Note 3: Investment corporation bonds were used as the funds for repayment of borrowings procured for the purpose of appropriating funds for theacquisition of social eligible assets.
Note 4: Investment corporation bonds were used as the funds for the acquisition of social eligible assets.
Note 5: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
or less
Investment
corporation bonds¥

Due after 1 year
through 2 years-

Due after 2 years
through 3 years(in thousands of yen)

¥ 1,000,000¥

Due after 3 years
through 4 years-¥

Due after 4 years
through 5 years-¥1,000,000

Interest rate

Repayment date

Use

Remarks(Note2)

Unsecured

Outstanding Investment corporation bonds as of July 31, 2021 are as follows.
SeriesDate of issue

First series of unsecured
investment corporation bonds(Note 1)
Second series of unsecured
investment corporation bonds(Note 1)
Third series of unsecured
investment corporation bonds(Note 1)
Fourth series of unsecured
investment corporation bonds(Note 1)Fifth series of unsecured
investment corporation bonds(Note 1)
Sixth series of unsecured
investment corporation
bonds(Social bond) (Note 1)
Seventh series of unsecured
investment corporation
bonds(Social bond) (Note 1)

August 30,

Balance atthebeginning of
periodDecreaseduring theperiodBalance at theend of period(in thousands of yen)

Total

2016
August 30,
2016
August 30,
2016
November 30,
2018
November 30,
2018
December 20,
2019
May 31,2021¥1,000,000-¥1,000,000

0.200%

August 30,2021

1,000,000-

1,000,000

0.540%

August 28,2026

1,000,000-

1,000,000

0.800%

August 30,2028

1,000,000-

1,000,000

0.410%

November 30,2023

1,000,000-

1,000,000

0.850%

November 30,2028

2,000,000-

2,000,000

0.750%

December 20,2029(Note3)

Unsecured--

1,700,000

0.720%

May 30,2031(Note4)

Unsecured-¥ 8,700,000¥7,000,000¥¥

Note 1: Ranking pari passu among the specified investment corporation bonds.
Note 2: Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate andrepayment of debts.
82

Note 3: Investment corporation bonds were used as the funds for repayment of borrowings procured for the purpose of appropriating funds for theacquisition of social eligible assets.
Note 4: Investment corporation bonds were used as the funds for the acquisition of social eligible assets.
Note 5: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
or less
Investment
corporation bonds¥1,000,000

Due after 1 year
through 2 years¥-

Due after 2 years
through 3 years(in thousands of yen)

Due after 3 years
through 4 years¥1,000,000¥

Due after 4 years
through 5 years
-

¥

-

83

25. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of January 31, 2022
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiod¥-¥500,000-

2,000,000

Balance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)¥-¥500,000

0.385%

April 30, 2022-

2,000,000

0.375%

April 30, 2022

0.916%

August 7, 2021

Decreaseduring theperiodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Short-term Banking Corporation
loans
Sumitomo Mitsui
payableBanking Corporation
Sub total
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank,
LimitedCurrent
portionAozora Bank, Ltd.
of long- Shinsei Bank, Limited
term
Sumitomo Mitsui
loansBanking Corporation
payableMUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Insurance Inc.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank,
Ltd .(Note 2)
Resona Bank,
Limited(Note 2)
Mizuho Trust &Banking Co., Ltd.
(Note 2)
Sumitomo Mitsui
Banking Corporation(Note 2)
MUFG Bank, Ltd(Note 2)Development Bank ofJapan Inc. (Note 2 )Shinsei Bank, Limited(Note 2)Sub total-

2,500,000-

2,500,000

1,100,000-

1,100,000-

1,100,000
600,000
350,000-

1,100,000
600,000
350,000-

300,000-

300,000-

300,000-

300,000-

1,000,000-

1,000,000-

0.996%(Note 5)

August 7, 2021

600,000-

600,000-

0.945%

August 31, 2021

600,000
500,000-

600,000
500,000-

0.945%
0.945%

August 31, 2021
August 31, 2021

1,200,000-

1,200,000-

0.875%

January 31, 2022

800,000-

800,000-

0.432%

January 31, 2022

2,000,000--

2,000,000

1.267%

April 30, 2022

1,500,000
1,000,000--

1,500,000
1,000,000

1.267%
1.267%

April 30, 2022
April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022

2,000,000
1,100,000--

2,000,000
1,100,000

0.875%

April 30, 2022

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

1,000,000--

1,000,000

0.432%

February 28, 2022

500,000--

500,000

0.432%

February 28, 2022

950,000--

950,000

1.083%

November 30, 2022

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

0.509%

August 31, 2022
August 31, 2022
January 31, 2023

1,600,000--

1,600,000

0.498%(Note 5)500,000--

500,000

0.272%

28,200,000-

8,450,000

19,750,000

84Classification
LenderSumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
LongTerm
Loans
PayableBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
period(in thousands of yen)
400,000--

400,000

400,000
300,000--

400,000
300,000

200,000--

200,000

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)1.254%

August 7, 2023

January 31, 2024

200,000--

200,000

150,000--

150,000

500,000--

500,000

1,200,000--

1,200,000

1.320%(Note 5)
1.105%

1,500,000--

1,500,000

0.987%

April 30, 2023

2,000,000--

2,000,000

1.100%

April 30, 2024

1,000,000--

1,000,000

1.265%

April 30, 2025

950,000--

950,000

1.047%

August 31, 2023--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

1,000,000
1,000,000--

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%

August 31, 2024
April 27, 2025
April 28, 2025
April 30, 2026

MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

Aozora Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Resona Bank,
Limited1,000,000--

1,000,000

0.660%(Note 5)0.816%(Note 5)0.713%

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000-

500,000

0.797%

August 31, 2025

MUFG Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.

0.670%(Note 5)0.751%(Note 5)

Remarks

August 7, 2023

1,700,000
950,000-

Use

July 31, 2025
August 31, 2026
August 31, 2024

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

0.773%(Note 5)October 31, 2025

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

0.900%
0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)

August 22, 2027

1,200,000

1,500,000--

1,500,000

0.501%

February 28, 2023

1,500,000
1,500,000--

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

(Note 6)

Unsecured/
Unguaranteed

August 31, 2025
August 31, 2025

August 22, 2027
August 22, 2027
August 22, 2027
August 22, 2027

85

Classification

Balance atthe beginningof period

LenderLong-term
loans
payableMizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Nippon Life
Insurance Company
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
Nippon Life
Insurance Company
Resona Bank,
LimitedShinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.

Increaseduring theperiodDecreaseduring theperiodBalance atthe end of
period(in thousands of yen)

Averageinterest
rate(Note 3)(Note 4)0.624%
0.661%(Note 5)

Payment due date
(Note 7)500,000--

500,000

500,000--

500,000

1,500,000--

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000--

400,000

0.799%

February 2, 2026

400,000--

400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

0.914%
0.884%(Note 5)0.825%(Note 5)0.920%(Note 5)1.031%

September 30, 2028

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

Mizuho Bank, Ltd.

2,000,000--

2,000,000

Shinsei Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.

500,000
800,000--

500,000
800,000

0.330%(Note 5)0.484%
0.299%

November 30, 2025
July 31, 2023

1,000,000--

1,000,000

0.572%

August 31, 2026

500,000--

500,000

0.325%

April 30, 2023

450,000--

450,000

0.336%

April 30, 2024

1,500,000--

1,500,000

0.600%

November 30, 2026

MUFG Bank, Ltd.
Nippon Life
Insurance Company
Shinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Trust &Banking Co., Ltd.

Use

Remarks(Note
6)

Unsecured/
UnguaranteedAugust 31, 2024
August 31, 2024

February 28, 2027
February 28, 2027
September 30, 2026

May 31, 2025

86

Classification

500,000--

500,000

Averageinterest
rate(Note 3)(Note 4)0.329%

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.464%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

400,000--

400,000

0.414%

February 28, 2027

Balance atthe beginningof period

Lender
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Trust Bank, Limited
The Bank ofFukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
The Bank ofFukuoka, Ltd.

Decreaseduring theperiodBalance atthe end of
period(in thousands of yen)0.450%(Note 5)0.531%
0.300%(Note 5)

Payment due date
(Note 7)400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

0.646%

June 30, 2028

800,000--

800,000

0.646%

June 30, 2028

500,000--

500,000

0.616%(Note 5)June 30, 2028

1,750,000--

1,750,000

0.691%

July 31, 2028

1,750,000--

1,750,000

0.641%

July 31, 2028

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.641%

July 31, 2028

Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust &Banking Co., Ltd.
MUFG Bank, Ltd

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited

Use

Remarks(Note
6)

Unsecured/
UnguaranteedJuly 31, 2023

MUFG Bank, Ltd.

Sumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited

Long-term
loans
payableIncreaseduring theperiodFebruary 28, 2027
February 29, 2028
February 29, 2024

500,000--

500,000

0.640%

August 31, 2028

Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.

300,000--

300,000

0.690%

August 31, 2028

840,000--

840,000

0.648%

September 30, 2028

900,000--

900,000

0.658%

September 30, 2028

800,000--

800,000

0.658%

September 30, 2028

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

1,330,000--

1,330,000

0.658%

September 30, 2028

500,000--

500,000

0.558%

September 30, 2028

400,000--

400,000

0.608%

September 30, 2028

MUFG Bank, Ltd

800,000--

800,000

MUFG Bank, Ltd

300,000--

300,000

0.550%(Note 5)0.637%

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation

500,000--

500,000

0.478%

April 30, 2025

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

September 30, 2028
October 31, 2027

87

Classification

MUFG Bank, Ltd

1,000,000--

1,000,000

Averageinterest
rate(Note 3)(Note 4)0.599%

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

1,200,000--

1,200,000

0.409%

January 31, 2025

1,100,000--

1,100,000

0.359%

January 31, 2025

1,350,000--

1,350,000

0.677%March 31, 2029

Shinsei Bank, Limited
Daishi Hokuetsu
Bank, Ltd.
The Bank of
Yokohama, Ltd.
Sumitomo Mitsui
Banking Corporation

1,000,000--

1,000,000

July 31, 2024

500,000--

500,000

0.252%
0.350%(Note 5)1,000,000--

1,000,000

0.467%

July 31, 2029

1,400,000--

1,400,000

0.598%

January 31, 2030

MUFG Bank, Ltd

1,000,000--

1,000,000

1,000,000--

1,000,000-

800,000-

800,000

0.358%

February 28, 2027-

500,000-

500,000

0.358%

February 28, 2027-

500,000-

500,000

0.358%

February 28, 2027-

500,000-

500,000

0.282%

February 28, 2023-

200,000-

200,000

0.232%

February 28, 2023-

350,000-

350,000

0.533%

February 28, 2029-

300,000-

300,000

0.433%

February 28, 2029-

1,200,000-

1,200,000

0.585%

February 28, 2030

Balance atthe beginningof period

Lender

Nippon Life
Insurance Company
The Yamaguchi
Bank, LtdThe Chugoku Bank,Ltd.
The 77 Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd
Aozora Bank, Ltd.
Resona Bank,
LimitedSumitomo Mitsui
Banking Corporation
Long-term
loans
payableMUFG Bank, Ltd.

Decreaseduring theperiodBalance atthe end of
period(in thousands of yen)

0.575%(Note 5)0.700%(Note 5)0.575%(Note 5)0.638%(Note 5)0.540%
0.525%(Note 5)

Payment due date
(Note 7)-1,000,000-

1,000,000-

500,000-

500,000

MUFG Bank, Ltd.

-

600,000-

600,000

Sumitomo Mitsui
Banking Corporation-

600,000-

600,000

The Chiba Bank, Ltd.

-

600,000-

600,000-

500,000-

500,000-

800,000-

800,000

0.230%

November 30, 2023-

500,000-

500,000

0.314%

November 30, 2025-

500,000-

500,000

0.314%

November 30, 2025-

200,000-

200,000

0.314%

November 30, 2025
May 31, 2029

THE NISHI-NIPPONCITY BANK, LTD.
The Yamanashi Chuo
Bank, Ltd.
The Yamaguchi
Bank, Ltd.
The Bank of
Yokohama, Ltd.
Kansai Mirai Bank,
LimitedThe Bank of Kyoto,Ltd.
Sub total

February 28, 2030
August 31, 2031
February 28, 2029
February 28, 2029
February 28, 2030
November 30, 2026
November 30, 2026-

1,000,000-

1,000,000

0.529%(Note 5)-500,000-

500,000

0.561%

November 30, 2029-

500,000-

500,000

0.561%

November 30, 2029-

1,000,000-

1,000,000

0.631%

November 30, 2030-

700,000-

700,000

0.631%

November 30, 2030-

500,000-

500,000

0.703%

November 30, 2031

0.703%

November 30, 2031-

300,000-

300,000

110,020,000

15,850,000-

125,870,000¥138,220,000¥18,350,000¥8,450,000¥148,120,000

Unsecured/
UnguaranteedJanuary 31, 2030

1,200,000

Aozora Bank, Ltd

(Note
6)

January 31, 2030-

0.325%(Note 5)0.325%(Note 5)

Remarks

January 31, 2027

1,200,000

0.602%

Use

January 31, 2028-

Development Bank ofJapan Inc.
Aozora Bank, Ltd.

The Musashino
Bank, Ltd.
The Bank ofFukuoka, Ltd.
The Hyakugo Bank,Ltd.
THE HACHIJUNIBANK, LTD.
The Shizuoka Bank,
Ltd.

Total

Increaseduring theperiodNote 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five88

years after the balance sheet date are as follows:
Due after 1 year

Due after 2 years

Due after 3 years

Due after 4 years

through 2 years

through 3 years

through 4 years

through 5 years¥ 15,900,000¥ 16,900,000

Due after 5 years(in thousands of yen)
Long-term loans payable¥ 16,700,000¥ 21,300,000¥ 55,070,000

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.

89

Short-term debt and long-term debt consist of the following as of July 31, 2021
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Banking Corporation
Short-term Sumitomo Mitsui
Banking Corporationloans
payableSumitomo Mitsui
Banking Corporation
Sub total
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Current
Sumitomo Mitsui
portion of Banking Corporation
longSumitomo Mitsui
termBanking Corporation
loans
Sumitomo Mitsui
payableBanking Corporation(Note 2)
Aozora Bank, Ltd.
(Note 2)
MUFG Bank, Ltd.
(Note 2)
Resona Bank,
Limited (Note 2)
Aozora Bank, Ltd.
(Note 2)
Shinsei Bank, Limited(Note 2)
Sumitomo Mitsui
Banking Corporation(Note 2)
MUFG Bank, Ltd.
(Note 2)
Mizuho Bank, Ltd.
(Note 2)
Sompo Japan
Insurance Inc.(Note 2)

Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sub total
Sumitomo Mitsui
Banking Corporation
Long-term
MUFG Bank, Ltd.
loans
Mizuho Bank, Ltd.
payableResona Bank,
Limited

¥1,000,000¥-¥1,000,000¥-

0.428%

February 28, 2021

500,000-

500,000-

0.428%

February 28, 2021

500,000-

500,000-

0.381%

July 31, 2021

2,000,000-

2,000,000-

1,000,000-

1,000,000-

1.221%

July 31, 2021

1,350,000-

1,350,000-

1.183%March 31, 2021

1,000,000-

1,000,000-

0.409%

July 31, 2021

1,000,000
500,000
500,000
900,000
500,000-

1,000,000
500,000
500,000
900,000
500,000-

0.409%
0.409%
0.409%
0.456%
0.456%

July 31, 2021
July 31, 2021
July 31, 2021
July 31, 2021
July 31, 2021

1,100,000--

1,100,000

1,100,000
600,000
350,000--

1,100,000
600,000
350,000

0.916%

August 7, 2021

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.996%(Note 5)

August 7, 2021

600,000--

600,000

0.945%

August 31, 2021

600,000
500,000--

600,000
500,000

0.945%
0.945%

August 31, 2021
August 31, 2021

1,200,000--

1,200,000

0.875%

January 31, 2022

800,000--

800,000

0.431%

January 31, 2022

2,000,000--

2,000,000

1.267%

April 30, 2022

1,500,000--

1,500,000

1.267%

April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022

2,000,000--

2,000,000

0.875%

April 30, 2022

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000--

1,000,000

1.115%

July 29, 2022

300,000--

300,000

1,000,000--

1,000,000-

1,000,000-

1,000,000

0.432%

February 28, 2022

0.432%

February 28, 2022

1.254%

August 7, 2023-

500,000-

500,000

27,200,000

1,500,000

6,750,000

21,950,000

400,000--

400,000

400,000
300,000--

400,000
300,000

200,000--

200,00090

Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

200,000--

200,000

150,000--

150,000

500,000--

500,000

950,000
1,200,000--

1,500,000-

2,000,000-

1,000,000

950,000
1,200,000

1.320%(Note 5)1.083%
1.105%

November 30, 2022
January 31, 2024-

1,500,000

0.987%

April 30, 2023-

2,000,000

1.100%

April 30, 2024--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

August 7, 2023

1,000,000--

1,000,000

1,000,000
1,000,000--

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

Aozora Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Long-term
Resona Bank,
loans
LimitedpayableMUFG Bank, Ltd.

1,000,000--

1,000,000

0.660%(Note 5)0.816%(Note 5)0.713%

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

0.797%

August 31, 2025

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

0.773%(Note 5)October 31, 2025

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

0.900%
0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)1,500,000--

1,500,000

0.501%

February 28, 2023

1,500,000
1,500,000--

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

0.582%
0.624%
0.661%(Note 5)1,500,000--

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
Limited0.670%(Note 5)0.751%(Note 5)

August 31, 2024
April 27, 2025
April 28, 2025
April 30, 2026
July 31, 2025
August 31, 2026
August 31, 2024

August 31, 2025
August 31, 2025

August 22, 2027
August 22, 2027
August 22, 2027
August 22, 2027

August 31, 2024

91Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Trust Bank, Limited
Nippon Life Insurance
Company
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
Nippon Life Insurance
Company
Resona Bank,
LimitedShinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank ofFukuoka, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Resona Bank,
LimitedLong-term Sumitomo Mitsui
loans
Trust Bank, Limited
payableMizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

0.799%

February 2, 2026

500,000--

500,000

500,000--

500,000

400,000--

400,000

400,000--

400,000

0.799%

February 2, 2026

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.509%

August 31, 2022

0.509%
0.498%(Note 5)

August 31, 2022

400,000--

400,000

1,600,000--

1,600,000

1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

0.914%
0.884%(Note 5)0.825%(Note 5)0.920%(Note 5)1.031%

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

Mizuho Bank, Ltd.

2,000,000--

2,000,000

Shinsei Bank, Limited
Shinsei Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Trust Bank, Limited
The Bank ofFukuoka, Ltd.
Mizuho Bank, Ltd.

500,000
500,000
800,000--

500,000
500,000
800,000

0.330%(Note 5)0.484%
0.272%
0.299%

November 30, 2025
January 31, 2023
July 31, 2023

1,000,000--

1,000,000

0.572%

August 31, 2026

500,000--

500,000

0.325%

April 30, 2023

MUFG Bank, Ltd.
Nippon Life Insurance
Company
Shinsei Bank, Limited
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Trust &Banking Co., Ltd.

August 31, 2022

February 28, 2027
February 28, 2027
September 30, 2026
September 30, 2028

May 31, 2025

450,000--

450,000

0.336%

April 30, 2024

1,500,000
500,000--

1,500,000
500,000

0.600%
0.329%

November 30, 2026
July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023

500,000--

500,000

0.259%

February 29, 2024

92Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Trust Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
The Bank ofFukuoka, Ltd.

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.464%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

400,000--

400,000

0.414%

February 28, 2027

0.450%(Note 5)0.531%
0.300%(Note 5)

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

Sumitomo Mitsui
Trust Bank, Limited

1,000,000--

1,000,000

0.646%

June 30, 2028

Shinsei Bank, Limited

800,000--

800,000

0.646%

June 30, 2028

500,000--

500,000

0.616%(Note 5)June 30, 2028

1,750,000--

1,750,000

0.691%

July 31, 2028

Shinsei Bank, Limited

1,750,000--

1,750,000

0.641%

July 31, 2028

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation

Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo MitsuiLong-term Banking Corporation
Mizuho Trust &loans
Banking Co., Ltd.
payableMUFG Bank, Ltd

February 28, 2027
February 29, 2028
February 29, 2024

500,000--

500,000

0.640%

August 31, 2028

Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.

300,000--

300,000

0.690%

August 31, 2028

840,000--

840,000

0.648%

September 30, 2028

900,000--

900,000

0.658%

September 30, 2028

800,000--

800,000

0.658%

September 30, 2028

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

1,330,000--

1,330,000

0.658%

September 30, 2028

500,000--

500,000

0.558%

September 30, 2028

400,000--

400,000

0.608%

September 30, 2028

MUFG Bank, Ltd

800,000--

800,000

MUFG Bank, Ltd

300,000--

300,000

0.550%(Note 5)0.637%

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd

500,000--

500,000

0.478%

April 30, 2025

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

1,000,000--

1,000,000

0.599%

January 31, 2028

1,200,000--

1,200,000

0.409%

January 31, 2025

1,100,000--

1,100,000

0.359%

January 31, 2025-

1,350,000-

1,350,000

0.677%March 31, 2029-

1,000,000-

1,000,000

July 31, 2024-

500,000-

500,000

0.252%
0.350%(Note 5)-1,000,000-

1,000,000

Mizuho Bank, Ltd.
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Shinsei Bank, Limited
Daishi Hokuetsu
Bank, Ltd.
The Bank of
Yokohama, Ltd.

0.467%

September 30, 2028
October 31, 2027

January 31, 2027
July 31, 2029

93

Classification

Balance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-1,400,000

0.598%

January 31, 2030

1,000,000-

1,000,000

Balance atthebeginning of
periodIncreaseduring theperiodSumitomo Mitsui
Banking Corporation-

1,400,000

MUFG Bank, Ltd-

LenderDecreaseduring theperiodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Long-term
loans
payableNippon Life Insurance
Company
Sub total

Total

-

1,000,000-

1,000,000

109,020,000

7,250,000-

116,270,000¥138,220,000¥8,750,000¥8,750,000¥138,220,000

0.575%(Note 5)0.700%(Note 5)January 31, 2030
January 31, 2030

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 1 year

Due after 2 years

Due after 3 years

Due after 4 years

through 2 years

through 3 years

through 4 years

through 5 years

Due after 5 years(in thousands of yen)
Long-term loans payable¥ 13,350,000¥ 15,850,000¥ 16,350,000¥ 19,000,000¥ 51,720,000

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.

94

26. DISTRIBUTIONS
20th Fiscal Period(From August 1, 2021 to January 31, 2022)

I. Retained earnings at the end of period

19th Fiscal Period(From February 1, 2021 to July 31, 2021)¥4,335,589,580¥4,296,284,882¥20,000,000¥20,000,000¥4,084,116,183¥4,100,050,311

II. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments (Note 1)
III. Total distributions
Distributions per unit
IV. Retained earnings brought forward to
the next period

Method of calculating distribution amount¥4,101¥4,117¥271,473,397¥216,234,571

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,084,116,183, which is the amount deducteda part of gain on sale of real estate property and otheradjustments from net income and added reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
19th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,100,050,311, which is the amount deducteda part of gain on sale of real estate property and otheradjustments from net income and added reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
19th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

Note 1: Reserve for temporary difference adjustments
20th Fiscal Period ( August 1, 2021 to January 31, 2022)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 20th fiscal period distribution.
19th Fiscal Period (February 1, 2021 to July 31, 2021)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 19th fiscal period distribution.

95