Security code

3278

Semi-annual Reportfor the 14th Period
From August 1, 2018 to January 31, 20191

Overview of KDR

To our unitholders

Executive Director
Keisuke Sato

Officers(from upper left)
Supervisory Director
Osamu Chiba
Supervisory Director
Soichiro Iwao
Supervisory Director
Satoshi Ogawa
Executive Director
Keisuke Sato
Executive Director
Katsue Okuda

We are pleased to inform you that Kenedix Residential Next
Investment Corporation (KDR) successfully closed all accounts forthe 14th fiscal period (from August 1, 2018 to January 31, 2019). We
would like to thank all of our unitholders and stakeholders for theircontinued support and cooperation. We hereby report on the asset
management overview and results for the 14th Fiscal Period.
For the 14th fiscal period, operating revenue totaled ¥7,823 million,
operating income was ¥4,213 million, ordinary income was ¥3,599
million and net income was ¥3,598 million. The distribution tounitholders was ¥4,039 per unit, +0.32% higher than in the previous
period.
In the 14th fiscal period, KDR procured funds in August 2018 throughpublic offering for the first time in about three and a half years andacquired 4 rental residential properties and 5 nursing and healthfacilities, the first of such for a J-REIT, using the funds combined withborrowings. Furthermore, we continued to conduct asset replacementfrom the previous fiscal period by acquiring 1 healthcare facility in
September 2018 and selling 1 rental residential property in January
2019. Our properties realized steady internal growth as shown in theincrease in rent of new tenants and tenants subject to renewal
compared with the previous amounts for residential facilities throughlease management that appropriately captured the market
environment, while maintaining the period-end occupancy rate at ahigh level of 97.7%.
As to our activities in the 14th fiscal period onward, we procured
funds in February 2019 through public offering for two consecutive
periods and acquired 3 rental residential properties and 1 healthcare
facility in Tokyo (also scheduled to acquire 2 healthcare facilities inJune 2019), as well as sold 1 rental residential property in Osaka City
using the funds combined with borrowings and cash on hand. As aresult, as of March 1, 2019, we own assets totaling 141 properties
valued at 230.5 billion yen (total acquisition price).
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 by gathering information and making
decisions swiftly. By using this approach, we aim to maximize returns
for investors.

Executive Director,
Kenedix Residential Next Investment Corporation
Director & COO, Head of Residential REIT Department,
Kenedix Real Estate Fund management, Inc.

2

Financial Highlights
Distribution per Unit

4,039 yen
4,030 yen
3,813 yen

14th (Ended January 2019) Actual
15th (Ending July 2019) Forecast
16th (Ending January 2020) Forecast(Note) Distribution per unit for 15th fiscal period
and 16th fiscal period is estimated basedon certain assumptions as of March 14,
2019

Trend in DPU
（yen）
5,000

4,026 yen

4,039 yen 4,030yen

4,000

3,813yen
3,016 yen 3,116

yen

3,266 yen 3,316yen

3,123 yen 3,115 yen 3,180yen

3,473yen

3,000

July. 2014
5th Period

Jan. 2015
6th Period

Jul. 2015
Jan. 2016
7th Period 8th Period

Jul. 2016
9th Period

Jan. 2017
10th Period

Jul. 201711th Period

Jan. 2018
12th Period

Jul. 2019
Jan. 2020
Jul. 2018
Jan. 201913th Period 14th Period 15th Period 16th 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 the investment units.

14th Period
Operating Revenues

Operating Income

Ordinary Income

7,823 mln yen

4,213 mln yen

3,599 mln yen 3,598 mln yen

Operating Income

Ordinary Income

Net Income

3,439 mln yen

2,842 mln yen

5,416 mln yen

Net Income

13th Period
Operating Revenues

7,097 mln yen

3Trend in Asset GrowthAug.2018

Mar.2018■■■■

KDR merged with Japan Senior
Living Investment Corporation

Total
Residential
Healthcare
Other

14 healthcare facilities(acquisition price: 289 mil yen)

Total number ofproperties owned●

Feb.2019

Conducted first public offering
after merger
Conducted public offering for the
first time in about three and a halfyears and procured approximately
13 billion yen. Acquired a total of 10
properties (26.2 billion yen)consisting of 4 residential facilities
and 6 healthcare facilities (including
properties acquired before thepublic offering)

Conducted public offerings in
two consecutive periods
Procured approximately 6.5 billion
yen through public offering with aplan to acquire a total of 7 properties(15.9 billion yen) consisting of 3
residential facilities and 4 healthcare
facilities (including properties
acquired from September 2018 andup to the public offering)

Kenedix Residential Next Investment
Corporation(in billions of yen ）
350

350

300

300

Nov. 2016
Upgrade of credit rating

250

A

PO

A＋

(Positive）

2,209（Stable）

200

PO
PO
990

100

IPO
5

80

304
0

20

304

304

PO

1,481

81

92

105

1,550

20

20

Jan.2014 Jul.2014

Jan.2015 Jul.2015

Jan.2016

1stfiscalPeriod2nd
fiscalPeriod3rd
fiscalPeriod4th
fiscalPeriod6th
fiscalPeriod8th
fiscalPeriod5th
fiscalPeriod

113

105

113

250

200

150

115

129

138

143
100

50

Jan.2013 Jul.2013

0.6%

1,550

1,003

Jul.2012

Others

1,481

Aiming forsteady growthof AUM going
forward

1,641

1,221
103

2,332

1,928

PO

150

PO

7th
fiscalPeriodOthers
0.8% (1 property)

Healthcare
Facilities

Jul.2016
9th
fiscalPeriodJan.2017 Jul.2017
10th
11th
fiscalfiscalPeriodPeriodJan.2018 Jul.2018
12th
13th
fiscalfiscalPeriodPeriodJan.2019
14th
fiscalPeriodArea

Room type

Area

Use

0

Jun.2019(scheduled) (1)Residential

23.2%(24 properties)

Area(1)(2)

Other
Regional Areas

37.3%

Note 1:
Note 2:

Tokyo
Metropolitan
Area

62.1%

Use (1)(2)Residential Facilities

76.0%

Healthcare(118 properties)

The breakdown of the above portfolio (by areas, use) is calculated based on acquisition price as of June 3, 2019.
“Tokyo Metropolitan Area” includes Tokyo, Kanagawa, Saitama and Chiba. “Other Regional Areas” include government-designed municipalities and other regional cities.

4Operational Highlight
Conducted public offerings in two consecutive periods, and increased market capitalization
and asset size significantly▼▼

Conducted public offerings in two consecutive periods in August 2018 and February 2019, andprocured a total of approximately 19.6 billion yen of funds. Acquired a total of 17 assets (42.1 billion
yen) using the funds combined with borrowings and funds obtained through the issuance ofinvestment corporation bonds.
Growth on asset size
Overview of PO

Issue price/Paid-in amount
Total paid-in amount
Investment units newly
issuedInvestment units
outstanding after PO

Previous PO
August 2018
¥157,047/¥151,892
Approx.
¥13.09 bln

Current PO
February 2019
¥175,500/¥169,740
Approx.
¥6.50 bln

86,205 units

38,325 units

869,133 units

907,458 units

Residential
facilities
Healthcare
facilities
Total

Properties

Public Offerings
After themergerAcquisition
Sold(March 2018)115
7
3

Jun.2019(Scheduled)
119

Asset size

¥164.1 bln¥16.9 bln

¥2.0 bln¥179.1 bln

Properties
Asset size
Properties
Asset size

14
¥28.9 bln
129
¥193.1 bln

10¥25.1 bln
17¥42.1 bln——3
¥2.0 bln

24¥541. bln
143
¥233.2 bln+approx. ¥40.0 bln (Increase of +20.8%)

Continue strategic asset replacement and implement distribution management utilizing gainon sale and internal reserve
Sold assets in three consecutive periods from the fiscal period ended July 2018 with an aim to improve
portfolio quality. Returned gain on sale to unitholders in the form of increased distribution by utilizing partof internal reserve. Continue to conduct asset replacement as long as the current market environment
favorable to the sellers of real estate continues.
Properties withunrealized gains(1)113 of 115
properties
owned(Note)¥34.0 bln,
+19.5%

Factors affecting property sale decisions-Make decisions using
Factors affecting property sale decisions
characteristics of individual
Decliningproperties and outlook for future
population
incomeProperty
Leasing-Without limitations involving
age
marketasset categories

Fiscal period
ended Jul.2018

Fiscal period ended
Jan.2019

Fiscal period
ending Jul.2019

Gain on sale¥436 mln

Gain on sale¥203 mln

Gain on sale¥202 mln

Internal reserves fromgain on sale (¥136 mln)

Internal reserves fromgain on sale (¥97 mln)

(Yen)

Us e d fordis t ribut ions¥300 mln

Us e d fordis t ribut ions¥105 mln

4,100¥4,026

4,000
3,900
3,800
3,700
3,600
3,500

～

0
3,400

Distribution from gainon sale¥ 383/per unit

Policy for use of gains on sales-Used for unitholder distributions, as a rule-Some earnings are retained, as long as notaxes are incurred, in order to maintain
uniform distributions

Total gain on sale ¥842 mln
Used for
distribution consistency andincreases

Balance of internal reserves¥234 mln
Us e d fordis t ribut ions¥202 m ln¥4,039¥4,030Distribution from gain on sale
¥ 122/per unit

Distribution from gainon sale¥ 223/per unit

¥3,813Fiscal period ended
Jul. 31,2019(Forecast)Fiscal period ended
Jan. 31,2020(Forecast)～ ～ ～ ～
Fiscal period ended
Jul. 31,2018(Actual)Note 1:
Note 2:

Total unrealized capitalgains and unrealized gain
ratio(1)(2)

Fiscal period ended
Jan. 31,2019(Actual)Figures are for the residential facility portfolio as of January 31, 2019 but exclude KDX Residence Shin-Osaka, which was sold in February 2019.
“Unrealized gain ratio” is calculated by dividing the total unrealized capital gains from the properties shown here as of January 31, 2019 by the total book value of these properties onthat date. The ratio is rounded to one decimal place.

5External Growth
Overview of (to-be) acquired properties
KDR has seen steady external growth since the listing in 2012 through utilization of the Asset Management Company’s own networkand sponsor support. Upon property acquisition, KDR selectively invests in properties where solid demand from tenants or users aswell as stable revenue can be expected over the long term, based on regional analysis and individual analysis consideringcharacteristics, locations, etc. of properties.

Properties acquired in the 14th fiscal period (After September 2018)
H-21

Private senior homes with nursing care

Plaisant Grand Ota tamagawa

A relatively new property with high scarcity value located in the 23
wards of Tokyo and equipped with enriched equipment
Acquisition Date

Sep.28, 2018

Acquisition price/Appraisal value
Location¥3,057 mln / ¥3,130 mln
Tamagawa Ota-ku, Tokyo
a-7min. walk from Yaguchinowatashi
station on Tokyu Tamagawa line
1,538.48㎡
80 rooms (Private senior homes withnursing care)
CARE TWENTYONE CORPORATION

AccessSite area
Number of Rooms
Operator

Properties acquired in the 15th fiscal period
T-81

KDX Residence Kamikitazawa

Jigurai
Small Family

AccessSite area
Total leasable area
Leasable number of units
PM company

T-83

Feb. 1, 2019
¥1,360 mln / ¥1,400 mln
Kamikitazawa Setagaya-ku, Tokyo
a-5min. walk from Shimokitazawa
station on Keio line (a-8 min. walkfrom Hachimanyama station)
728.86㎡
1,971.07㎡
39 units
Tokyu Housing Lease Corporation

KDX Residence Higashi-Asakusa

Daily convenience
SingleAcquisition Date

Feb. 21, 2019

Acquisition price/Appraisal value¥687 mln / ¥727 mln

Location

Higashiasakusa,Taito-ku, Tokyo
a 15-min. walk from Minami-Senju
Station on the Tokyo Metro Hibiya line, JR
Joban line and Metropolitan Intercity
Railway Tsukuba Express
221.23㎡
1,013.40㎡
36 units
Tokyu Housing Lease Corporation

Site area
Total leasable area
Leasable number of units
PM company

H-23

Private senior home with nursing care

Serabi Ebisu

Acquisition Date

Feb. 1, 2019

Acquisition price/Appraisal value¥1,111 mln / ¥1,200 mln

Location

Noge Setagaya-ku, Tokyo

Accessa-7min. walk from Kaminoge
station on tokyu Oimachi line

Site area
Total leasable area
Leasable number of units

592.33
1,224.87㎡
34 units
ITOCHU Urban Community
Corporation

PM company

H-22

Acquisition Date

Mar.1, 2019

Acquisition price/Appraisal value
Location
AccessSite area¥6,934 mln / ¥7,070 mln
Oyamagaoka Machida-shi, Tokyo
Tamasakai station on JR Yokohama line
10,422.15㎡
168 (West Tower)
180 (East Tower)
TSUKUI CORPORATION

Number of Rooms
Operator

H-24

Arute ishiyagawa

Located in a quiet residential district
and offering excellent access from
central Tokyo

Healthcare facility complex easily
accessible from central Osaka as well
as Kobe and Sannomiya

Acquisition Date (Scheduled)Jun. 3, 2019

Acquisition price/Appraisal value
Location¥1,690 mln / ¥1,700 mln
Mita, Meguro-ku, Tokyo
a-10min. walk from Meguro station on
JR Yamanote line
933.94㎡
34 rooms (Private senior homes withnursing care)
Japan CareLink Co.,Ltd

Acquisition Date (Scheduled)
Acquisition price/Appraisal value

AccessSite area
Number of Rooms
Operator

Private senior home with nursing care

Tsukui Sun-shine Machida

A high-quality property located in
Machida, a commuter town inTokyo

Residence for singles that evokes ahistorical image of Tokyo

AccessJiguraiSingleKDX Residence Kaminoge

Residence for singles located in avery popular residential district

Small family residence located in a quiet
residential district

Acquisition Date
Acquisition price/Appraisal
value
Location

T-82

Location
AccessSite area
Number of Rooms
Operator

Private senior home with nursing careJun. 3, 2019
¥1,061 mln / ¥1,430 mln
Mikage tsuka-machi, Higashi nada-ku,
Kobe-shi, Hyogo
a-5min. walk from Ishiyagawa station
on Hanshin Main line
1,303.20㎡
54 rooms (Private senior homes withnursing care)
18 rooms (Group home)
Hakusinkai Medical Corporation

6

Internal Growth
Residential facility with potential for growth and stability through rent increase andmaintenance of high occupancy rate▼▼

The occupancy rate of rental housing continued to remain high and stable. The occupancy rate at the end of 14th
fiscal period was 96.7%, the average occupancy rate for the period was 96.5%. Rent for both new and renewal
tenants has continued to increase.
Percentage of Increase/Decline of rent (new tenants)

％）

Tokyo
Metropolitan
Area

All Areas

3.0(yen/tsubo)

Other
Regional Areas

1.5
0.9

1.0

1.1

0
-1.0

-0.2

-0.4

2.0

0.4

-0.3

10,0601.4
0.3

10,0400.4

10,030-0.3

10,010

7th

8th

9th

10th

11th

12th

13th

14th

J ul.2015

J an.2016

J ul.2016

J an.2017

J ul.2017

J an.2018

J ul.2018

J an.2019

8th

9th

第11期
Ave.2017年7月期
of
1H 2017(11th)
平均

12th Period (2H 2017)
10th

11th

Aug.

第12期
Ave.
of 2H 20172018年1月期(12th)
平均

Total

Average of period
7th

10,018
第13期
Ave.
of 1H 20182018年7月期(13th)
平均

第14期
Ave.
of 2H 20182019年1月期(14th)
平均

Note 1: “Rent per Tsubo of Residential Unit by Area” and “Rent per Tsubo of Residential Unit by Room Type” arecalculated for residential units of pass through contract (excluding contract for whole building) of 111
properties operated from February 28, 2017 to January 31, 2019. (1Tsubo = 35.5832 sq. ft.)Occupancy Rates by Area(1)6th+0.40％ YoY

10,020

-1.3

-1.7

-2.0

10,05810,043

10,050

0.7

-0.9

-1.2

▼

0.5
0.1

-0.9

10,078+0.34％ YoY

10,070

1.3

0.9

Total

10,080

2.7

2.1
2.0

Trends in Rent per Tsubo of Residential Unit (1)

Sep.

Oct.

Nov.

Tokyo
Metropolitan
Area

13th Period (1H 2018)

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Other
Regional Areas

14th Period (2H 2018)
Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Note 1: Occupancy Rates by Area include those from stores and offices.

Operators(1)No. ofoperators
15 firms▼▼

Healthcare facility generating stable cash flow over the long term through further diversification■23% Hakusinkai Medical
Corporation■ 3% Japan Care Link
■13% Tsukui Corporation■ 3% Silver Town
■1 2 % TrustGarden■ 2% Benesse Style Care
■ 9% Nichii Carepalace■ 2% Community Net

Remaining terms(1)(2)■ 2% Sawayaka Club

■ 7% NMLife■ 7% HITOWA Care Service■ 6% Care 21■ 5% NOTE Social Welfare■ 4% SOMPO Care

Note 1:The breakdown is calculated
based on acquisition priceas of June 3, 2019.

Note 2:

Remaining years to thetermination date of leaseagreements is calculated
based on the period fromJanuary 31, 2019 to thedate of termination of leaseagreements with anoperator.

▼■ 3% Excellent Care System

Initiatives to Improve Internal Growth

Joy Stage Hachioji implements value-up renovations in common areas and additional rest room (2016 and 2018). KDR will
strengthen the competitiveness of facilities and support operators, leading to increases in rent and extension of lease
contracts.
Value-up renovation (Joy Stage Hachioji)

Before▼Common area
rest room▼

Established rest room
to private room

BeforeRent Up+2.1%

Returns on
Investments (1)+4.8%Note 1: “Returns on Investments” = Increase in annual cash
flow / Costs of value-up works

7

Finance and IR▼

Under a conservative financial strategy, KDR conducts measures leading to financial stability and cost reduction
such as conversion to long-term debt and fixed interest rates and diversification of repayment dates and lenders.
▼

Key Debt Indicators (1)▼(2)
LTV（注2）
(%)

48.9

48.9

51.5

49.7

Status of Interest-bearing Liabilities(as of February 28, 2019)

50.3

Credit Rating
Note 1:

A+
Japan Credit Rating Agency,
Ltd. (JCR))

Note 2:“Average interest rate” calculated by weighted average interest rate at the end of the period that took into consideration
up-front fee (per year) and the effect of the interest rate swap. “Average remaining term” calculated by weighted averageremaining term of interest-bearing liabilities at the end of the period. “Rate of fixed-interest” calculated the percentage
of fixed interest rate loans of total amount of loans at the January 31, 2019. The floating loans which are substantially
fixed with interest rate swap are included in the fixed-rate.
“LTV” = Interest-bearing Liabilities / Total Assets. “Appraisal LTV” = Interest-bearing Liabilities / Total Appraisal Value.
“LTV” as of June, 2019 is current forecasts.

Issuance of the Investment Corporation Bonds
The Investment Corporation Bonds issued in November 2018 for the first time in about two and a half years
and Diversification of access to finance has progressed.
4th Series Unsecured Total Amount
Investment Corporation¥1.0 bln
Bonds

Term

Interest rate

5years0.410％

Total Amount5th Series Unsecured
Investment Corporation¥1.0. bln
Bonds

Term

Interest rate

10 yeras

0.850％

Debt maturity schedule

IR for Individual Investor

2018

Date

Event nameLocation

21,22 September

J-Reit Fair 2018

Tokyo

20, October

SMBC Nikko J-Reit Fair

Tokyo

20, November

Special seminar for the company related tonursing care and medical facilities

Kyoto

11, December

Branch office seminar in Nomura Securities

Kagoshima

12, December

Branch office seminar in Nomura Securities

Nagasaki8

Sustainability
Kenedix Residential Next Investment Corporation and Kenedix Real Estate Fund Management, Inc. practiceenvironmental awareness in conducting investment management practice environmental awareness in conducting
investment management▼

Certifications▼

GRESB Real Estate Assessment
KDR participates in GRESB Real Estate Assessment
from 2016 and acquired “Green Star” rating in 2018.
(Rating is “2 Stars”)

DBJ Green Building Certification(1)7 residential properties are certificated.

KDR has been awarded a “Green Star” New certificated properties in Jan. 2019
rating in the 2018 GRESB Real Estate
Assessment, as its efforts for improving
sustainability were evaluated, receiving
high evaluation on both
“implementation and measurement”
and “management and policy”.
Serenite Kobe Motomachi KDX Residence Shukugawa Hills

BELS Certification

The DBJ Green Building Certification is acertification system established by theDevelopment Bank of Japan Inc. (DBJ) in
April 2011, designed to support real estatethat demonstrates environmental and social
awareness ("Green Buildings").

Ashiya Royal Homes
KDX Residence Toyosu
KDX Residence Hanzomon
KDX Residence Yotsuya
KDX Residence Ebisu▼▼

GRESB (Global Real Estate Sustainability Benchmark) is a benchmark toevaluate sustainability performance of private and listed real estate
portfolio, etc. from environmental and social perspectives.

CASBEE
Self-assessment based on Comprehensive
Assessment System for Built Environment
Efficiency (CASBEE-new construction (simplified
version)) was carried out in November 2015 inNishinomiya City, Hyogo Prefecture, andExcellent Nishinomiya notification was submitted to Nishinomiya City.

Plaisant Grand Ota tamagawa
BELS (Building-Housing Energy-efficiency Labeling System) is the thirdparty certification system to rate houses and buildings in accordance withduty to make effort to label energy saving performance in the Act on
Improving Energy Consumption Performance for Architectural Structures

Comprehensive Assessment System for Built Environment Efficiency (CASBEE) isa method for evaluating and rating the environmental performance of buildings
and the built environment.

Example of environmental initiatives
Installation of LED Lights

Installing Secure Lockers

KDR replace lighting fixtures in common
areas, etc. with LED lights. By doing so,
KDR work to reduce the costs for replacing
lights as well as electricity charges.

Secure lockers for parcels
eliminate the need for delivery
companies to return to a property
when a resident is not home thefirst time. This reducestransportation CO2 emissions andwasted working time for drivers.

Outlets for recharging electric cars
Parking areas have outlets
so that residents can easily
recharge electric cars.
Number of Installation props.

Number of Installation props.

110 props(rate of installation：9 4%)
Postersfor conservationof energyandwater
Property
ExpenseAnnual reduction

44 props¥ 71.1 mln¥ 20.7 mln

Example of Social initiatives
Preparation of Disaster Readiness Packs
In preparation for an outbreak of disasters,
etc., KDR have prepared disasterreadiness packs (containing foodstuff anddrinking water, etc. for emergencies) at
some of our properties for residing
tenants to use in emergencies.

Putting up posters incommon areas to urge
tenants to consider theenvironment throughconservation of energy
and water

3 props

RemoteSurveillanceofRoadHeating
KDR have installed remotesurveillance system for roadheating (snow melting equipment)
at our three properties located in
Sapporo. The installations haveresults in significant reduction in
the fuel costs melting snow.

Installation of SATOYAMA Units
A "SATOYAMA Unit" is a group planting unitof conventional seeds and plants remaining
dormant in deserted village forests (called"satoyama"). We have installed the units at
the entrance of KDX Residence Okachimachi.
Through the installation of the "SATOYAMA
Units," we contribute to activities forrestoring satoyama, as well as provide a
comfortable living environment and help
prevent bicycles from being left in no-parking
areas.

9

Information for Unitholders
Structure会社

As of January 31, 2019

■Individuals and others■Financial institutions■Foreign companies and individuals■Other domestic companies■Security firms

Trend in Unitholders
14th Fiscal Period
869,133 units

13th Fiscal Period
782,928 units

10.0%

69.0%

16.0% 3.6% 1.4%

11.7%

70.6%

12.7% 4.1% 1.0%

IR Calendar

January

10

Investment Unit Price
Investment Unit Price (After Announcement of the Merger) (1)

5th PO

4th PO

Note 1: KDR investment unit price and TSE Residential REIT index are based on the closing price. For the TSE Residential REIT index, an index based on the November 10,
2017 closing prices of this index and KDR investment units is used.
Note 2: 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). The above figures
for the unit price before the split are those calculated by dividing the actual unit price by two.

11

Portfolio List

Tokyo Metropolitan Area

Residential Facilities

Area

Use

No.
T-1
T-3
T-4
T-5
T-6
T-7
T-9
T- 10
T- 11
T- 12
T- 13
T- 15
T- 16
T- 17
T- 18
T- 19
T- 20
T- 21
T- 22
T- 23
T- 24
T- 25
T- 26
T- 27
T- 28
T- 29
T- 30
T- 31
T- 32
T- 33
T- 34
T- 35
T- 36
T- 37
T- 38
T- 39
T- 40
T- 41
T- 42
T- 43
T- 44
T- 45
T- 46
T- 47
T- 48
T- 49
T- 50
T- 51
T- 52
T- 53
T- 54
T- 55
T- 56
T- 57
T- 58
T- 59
T- 60
T- 61
T- 62
T- 63
T- 64

Name
KDX Daikanyama Residence
KDX Odenma Residence
KDX Iwamoto-cho Residence
KDX Bunkyo Sengoku Residence
KDX Azumabashi Residence
KDX Shimura Sakaue Residence
Cosmo Heim Motosumiyoshi (Land)
KDX Musashi Nakahara Residence
KDX Chiba Chuo Residence
KDX Kawaguchi Saiwai-cho Residence
KDX Residence Shirokane I
KDX Residence Shirokane II
KDX Residence Minami-aoyama
KDX Residence Minami-azabu
KDX Residence Shiba Koen
KDX Residence Azabu East
KDX Residence Takanawa
KDX Residence Nishihara
KDX Residence Daikanyama II
KDX Residence Sendagaya
KDX Residence Nihombashi Suitengu
KDX Residence Nihombashi Hakozaki
KDX Residence Higashi-shinjuku
KDX Residence Yotsuya
KDX Residence Nishi-shinjuku
KDX Residence Kagurazaka
KDX Residence Futako Tamagawa
KDX Residence Komazawa Koen
KDX Residence Misyuku
KDX Residence Yoga
KDX Residence Shimouma
Raffine Minami-magome
KDX Residence Yukigaya Otsuka
KDX Residence Denen Chofu
KDX Residence Tamagawa
KDX Residence Monzennakacho
KDX Residence Okachimachi
KDX Residence Moto-asakusa
KDX Residence Itabashi Honcho
KDX Residence Azusawa
KDX Residence Tobu Nerima
KDX Residence Yokohama Kannai
KDX Residence Miyamaedaira
KDX Residence Machida
KDX Residence Kinshicho
KDX Residence Nihombashi Hamacho
KDX Residence Nihombashi Ningyocho
KDX Residence Jiyugaoka
KDX Residence Togoshi
KDX Residence Shinagawa Seaside
KDX Residence Ojima
KDX Residence Oyama
KDX Residence Hanzomon
B-Site Akihabara
KDX Residence KagurazakaDori（4）KDX Residence Sendagi
KDX Residence Seijo
KDX Residence Akihabara
KDX Residence Iriya
KDX Residence Tachikawa
KDX Residence Tsurumi

Location

Completion Date

Type (Note 1)

Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Chiyoda-ku, Tokyo
Bunkyo-ku, Tokyo
Sumida-ku, Tokyo
Itabashi-ku, Tokyo
Kawasaki-shi, Kanagawa
Kawasaki-shi, Kanagawa
Chiba-shi, Chiba
Kawaguchi-shi, Saitama
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Shibuya-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Shinjuku-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Setagaya-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Ota-ku, Tokyo
Koto-ku, Tokyo
Taito-ku, Tokyo
Taito-ku, Tokyo
Itabashi-ku, Tokyo
Itabashi-ku, Tokyo
Nerima-ku, Tokyo
Yokohama-shi, Kanagawa
Kawasaki-shi, Kanagawa
Sagamihara-shi, Kanagawa
Sumida-ku, Tokyo
Chuo-ku, Tokyo
Chuo-ku, Tokyo
Meguro-ku, Tokyo
Shinagawa-ku, Tokyo
Shinagawa-ku, Tokyo
Koto-ku, Tokyo
Itabashi-ku, Tokyo
Chiyoda-ku, Tokyo
Chiyoda-ku, Tokyo
Shinjuku-ku, Tokyo
Bunkyo-ku, Tokyo
Setagaya-ku, Tokyo
Taito-ku, Tokyo
Taito-ku, Tokyo
Tachikawa-shi, Tokyo
Yokohama-shi, Kanagawa

Feb. 10, 2003
Mar. 14, 2007
Sep. 5, 2007
Aug. 9, 2005
Sep. 26, 2007
Jul. 2, 2007－
Apr. 23, 1991
Feb. 23, 2007
Feb. 9, 2007
Feb. 21, 2003
Nov. 12, 2004
Feb. 26, 2004
Oct. 7, 2004
Nov. 18, 2005
Jan. 6, 2004
Jul. 19, 2007
Apr. 9, 2004
Jan. 30, 1997
Jan. 19, 2007
Feb. 24, 2005
Feb. 6, 2004
Nov. 21, 2007
Mar. 1, 2004
Oct. 7, 2005
Jan. 17, 2006
Feb. 23, 1998
Feb. 6, 2006
May 18, 2006
Dec. 20, 2005
Oct. 13, 2005
Mar. 25, 1992
Jan. 11, 2006
Feb. 17, 1997
Feb. 7, 2007
Mar. 31, 2005
Dec. 7, 2004
Jan. 31, 2005
Aug. 23, 2007
Oct. 6, 2006
Feb. 11, 2007
Mar. 17, 2003
Oct. 16, 1998
Jun. 20, 2006
Mar. 1, 2007
Mar. 3, 2005
Aug. 8, 2002
Mar. 20, 2006
Nov. 27, 2006
Aug. 10, 2006
Jul. 23, 2008
Feb. 13, 2008
Dec. 18, 2003
Dec. 14, 2005
Aug. 31, 2006
Mar. 13, 2000
Apr. 10, 2007
Jan. 19, 2008
Feb. 14, 2007
Mar. 12, 2008
Jul. 31, 1990

Small family
Small family
Small family
StudioStudioFamily－FamilyStudioSmall family
Small family
StudioSmall family
Small family
Small family
StudioSmall family
Small family
FamilySmall family
FamilyStudioStudioFamilyStudioStudioFamilySmall family
StudioStudioStudioStudioStudioFamilyStudioStudioStudioSmall family
StudioStudioStudioStudioFamilyFamilyFamilyFamilyStudioSmall family
Small family
StudioStudioSmall family
FamilyStudioStudioFamilySmall family
Small family
StudioStudioSmall family

AcquisitionPrice(mln yen)

4,700
1,775
822
1,488
650
2,830
1,750
637
1,480
1,150
3,000
2,800
2,230
2,080
1,781
1,560
770
1,450
730
650
3,240
1,147
3,270
2,260
1,000
720
1,250
920
760
700
600
1,250
1,050
1,000
776
773
850
800
620
550
420
800
999
1,800
1,350
996
530
1,268
3,745
2,593
1,857
2,679
4,832
850
1,360
2,200
1,400
1,250
1,062
3,026
1,050

Occupancy
Rate (Note 2)
(%)

100.0
100.0
100.0
100.0
95.5
98.8
－
100.0
97.7
95.3
96.6
100.0
100.0
97.4
96.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
97.9
96.9
95.1
100.0
94.7
100.0
90.5
97.5
100.0
100.0
98.7
97.2
98.2
100.0
98.1
95.9
100.0
100.0
100.0
98.8
100.0
100.0
100.0
100.0
100.0
93.6
99.3
97.1
95.7
92.0
98.8
100.0
100.0
97.8
100.0
95.2
100.0
94.3
98.4

12

Portfolio List

Area

Use

No.

Tokyo Metropolitan Area

T- 65
T- 66
T- 67
T- 68
T- 69
T- 70
T- 71
T- 72
T- 73
T- 74
T- 75
T- 76
T- 77
T- 78
T- 79
T- 80

Lacation

Name

R-2
R-3
R-4
R-5
R-7
R-8
R-9
R-10
R-11
R-13
R-14
R-15
R-16
R-17
R-18
R-19
R-20
R-21
R-22
R-23

Sumida-ku, Tokyo
Minato-ku, Tokyo
Chiyoda-ku, Tokyo
Shibuya-ku, Tokyo
Ota-ku, Tokyo
Minato-ku,Tokyo
Minato-ku,Tokyo
Shinjuku-ku, Tokyo
Bunkyo-ku, Tokyo
Nerima-ku, Tokyo
Toshima-ku, Tokyo
Suginami-ku, Tokyo
Sumida-ku, Tokyo
Koto-ku, Tokyo
Suginami-ku,Tokyo
Yokohana-shi,
Kanagawa
KDX Residence Kamikitazawa
Setagaya-ku, TokyoKDX Residence Kaminoge
Setagaya-ku, TokyoKDX Residence Higashi-Asakusa
Taito-ku, Tokyo
Residential Facilities / Tokyo Metropolitan Area 80 props
Sendai-shi, Miyagi
KDX Jozenji Dori Residence
Nagoya-shi, Aichi
KDX Izumi Residence
Nagoya-shi, Aichi
KDX Chihaya Residence
Osaka-shi, Osaka
KDX Sakaisuji Hommachi Residence
Takarazuka-shi, Hyogo
KDX Takarazuka Residence
Fukuoka-shi, Fukuoka
KDX Shimizu Residence
Sapporo-shi, Hokkaido
KDX Residence Odori Koen
Sapporo-shi, Hokkaido
KDX Residence Kikusui Yojo
Sapporo-shi, Hokkaido
KDX Residence Toyohira Koen
Sendai-shi, Miyagi
KDX Residence Ichiban-cho
Sendai-shi, Miyagi
KDX Residence Kotodai
Sendai-shi, Miyagi
KDX Residence Izumi Chuo
Nagoya-shi, Aichi
KDX Residence Higashi-sakura I
Nagoya-shi, Aichi
KDX Residence Higashi-sakura II
Nagoya-shi, Aichi
KDX Residence Jingumae
Kyoto-shi, Kyoto
KDX Residence Nishi-oji
Kyoto-shi, Kyoto
KDX Residence Saiin
Osaka-shi, Osaka
KDX Residence Namba
Osaka-shi, Osaka
KDX Residence Namba-minami
Osaka-shi, Osaka
KDX Residence Shin-osaka

R-24

KDX Residence Ibaraki I・II

R-25
R-26
R-27
R-28
R-29

KDX Residence Toyonaka-minami
KDX Residence Moriguchi
KDX Residence Sannomiya
Ashiya Royal Homes

T-81
T-82
T-83

Residential Facilities
Other Regional Areas

R-30
R-32
R-33
R-34
R-35
R-36
R-37
R-38
R-39
R-40
R-41
R-42
R-43
R-44
R-45

KDX Residence Morishita Chitose
KDX Residence Akasaka
KDX Residence Kanda
KDX Residence Ebisu
KDX Residence Nishi-magome
KDX Residence Nishi-azabu
KDX Residence Azabu Sendaizaka
KDX Residence Waseda Tsurumaki
KDX Residence Bunkyo Yushima
KDX Residence Kamishakujii
KDX Residence Shin-otsuka
KDX Residence Sakurajosui
KDX Residence Ryogoku
KDX Residence Toyosu
KDX Residence Asagaya
KDX Residence Hiyoshi

Ibaraki-shi, Osaka

Toyonaka-shi, Osaka
Moriguchi-shi, Osaka
Kobe-shi, Hyogo
Ashiya-shi, Hyogo
Hiroshima-shi,
KDX Residence Funairi Saiwai-cho
Hiroshima
Fukuoka-shi, Fukuoka
KDX Residence Tenjin-higashi II
Fukuoka-shi, Fukuoka
KDX Residence Nishi Koen
Fukuoka-shi, Fukuoka
KDX Residence Hirao Josui-machi
Hirakata-shi, Osaka
Melody Heim Gotenyama
Nagoya-shi, Aichi
Leopalace Flat Shin-sakae
Kobe-shi, Hyogo
KDX Residence Konan Yamate
Osaka-shi, Osaka
KDX Residence Hommachibashi
Kusatsu-shi, Shiga
KDX Residence Minami-kusatsu
Fukuoka-shi, Fukuoka
KDX Residence Ohori Harbor View Tower
Sapporo-shi, Hokkaido
KDX Residence Minami-sanjo
Osaka-shi, Osaka
Serenite Kita-kyuhoji
Nishinomiya-shi, Hyogo
Serenite Nishinomiya Hommachi
Fukuoka-shi, Fukuoka
KDX Residence Nishijin
Kobe-shi, Hyogo
Serenite Kobe Motomachi
Nishinomiya-shi,Hyogo
KDX Residence Shukugawa Hills
Residential Facilities / Other Regional Areas 39 props
Residential Facilities 119 props

Completion Date

Type (Note 1)

Acquisition
Price

Jan. 9, 2007
Dec. 12, 2014
Feb. 6, 2015
Sep. 15, 2015
Jul. 12, 2016
Feb. 20, 2008
Oct. 6, 2006
Aug. 6, 2007
Jan. 23, 2006
Jun. 26, 2007
Feb. 5, 2016
Sep. 13, 2016
Feb. 3, 2016
Jul. 7, 2017
Feb. 29, 2000
Sep. 30, 1996

StudioSmall family
Small family
Small family
StudioSmall family
StudioStudioStudioStudioStudioStudioStudioStudioSmall family
Family

1,100
1,150
700
2,845
1,130
1,224
792
561
695
648
764
894
842
7,500
1,930
2,635

96.2
96.4
96.9
99.0
89.1
100.0
100.0
100.0
100.0
97.8
100.0
93.0
100.0
100.0
100.0
93.6

Feb 28, 2002
Sep 15, 2016
Jul 2, 2008

Small family
StudioStudioTotal / Ave.
StudioFamilySmall family
Small family
FamilySmall family
Small family
Small family
Small family
Small family
Small family
Small family
Small family
Small family
Small family
StudioStudioStudioStudioSmall family

1,360
1,111
687
122,505
1,015
1,120
1,080
2,910
1,510
1,680
765
830
445
530
520
480
2,350
900
840
813
440
1,410
1,350
510

98.0
97.0
90.0
96.2
94.4
100.0
96.2
89.7
89.8
94.0
85.2
97.2
87.7
92.5
92.3
99.1
96.0
96.2
97.4
97.7

Family

1,275

98.4
100.0

Small family
FamilyStudioFamilyStudio

740
551
1,080
1,360
588

100.0
98.9
86.9
100.0
100.0

Small family
FamilyFamilyFamilyStudioSmall family
Small family
StudioSmall family
Small family
StudioStudioSmall family
SingleFamilyTotal / Ave.

680
763
760
400
3,500
973
3,201
1,974
4,606
915
1,290
617
1,600
2,390
6,884
56,617179,123

94.9
96.2
100.0
100.0
98.4
96.4
99.0
91.6
95.2
95.2
94.2
98.1
96.6
98.6
93.3
95.3
96.7

Jan. 15, 2008
Apr. 7, 2009
Jul. 28, 2009
Oct. 25, 2007
Feb. 29, 2008
May 2, 2008
Jan. 4, 2007
Feb. 22, 2007
Feb. 17, 2007
Apr. 26, 2007
Oct. 7, 2006
Mar. 1, 2007
Jan. 21, 2008
Mar. 2, 2006
Feb. 14, 2007
Mar. 12, 2007
Jul. 4, 2006
Jul. 12, 2006
Apr. 27, 2007
Feb. 17, 2007
May 27, 1991
Mar. 17, 1993
Mar. 5, 2007
Oct. 26, 2006
Jan. 10, 2007
Jun. 5, 1991
Jan. 30, 2007
May 7, 2007
Feb. 2, 2006
Oct. 18, 2005
Jul. 14, 1989
Nov. 15, 2004
Mar. 6, 2008
Feb. 28, 2007
Mar. 4, 2008
Feb. 17, 2009
Dec. 14, 2010
Jul. 10, 2015
Feb. 24, 2016
Apr. 30, 1996
Feb. 19, 2017
Aug. 26, 1998

Total / Ave.

(mln yen)Occupancy
Rate (Note 2)(%)

13

Portfolio List

Use

No.

Name

Location

Completion Date

Type（8）ActualRate
Acquisition Occupancy
(3)
Price
/Utilization(mln yen)Rate(4)(%)

Healthcare Facilities

H-1
H-2
H-3
H-4
H-5
H-6
H-7
H-8
H-9
H - 10H - 11H - 12H - 13H - 14H - 15H - 16

Irise Kamata/Yuseien
Nichii Home Nakano-Minamidai
Joy Stage Hachioji
Yuimaru Hijirigaoka
Nichii Home Tama Plaza
Ten
Irise Nishioka
Joy Stage Hachioji
Sawayaka Sakura Nibankan
Activa Biwa
Sompo Care LAVIERE Kobe Tarumi
Granda Mondo Yakujin
Excellent Nishinomiya
Gran Hills Ogawarako
Excellent Kitano
Anesis Teradacho

Ota-ku, Tokyo
Nakano-ku, Tokyo
Hachioji-shi, Tokyo
Tama-shi, Tokyo
Kawasaki-shi, Kanagawa
Sapporo-shi, Hokkaido
Sapporo-shi, Hokkaido
Eniwa-shi, Hokkaido
Akita-shi, Akita
Otsu-shi, Shiga
Kobe-shi, Hyogo
Nishinomiya-shi, Hyogo
Nishinomiya-shi, Hyogo
Kamikita-gun, Aomori
Kyoto-shi, Kyoto
Osaka-shi, Osaka

Jun. 8, 2007
Jun. 25, 1992
Oct. 31, 1995
Nov. 15, 2011
Mar. 19, 1992
Sep. 5, 2007
May 9, 2014
Jan. 28, 2015
Sep. 30, 2011
Jul. 15, 1987
Mar. 3, 2010
Jul. 18, 2014
Feb. 8, 2010
Mar. 23, 2007
Mar.1, 2015
Dec. 31, 2010

Nursing Care
Nursing Care
Nursing Care
Residential
Nursing Care
Nursing Care
Residential
Residential
Nursing Care
Nursing Care
Nursing Care
Residential
Nursing Care
Serviced housing
Residential
Nursing and health facility

1,120
1,780
3,690
1,120
2,940
2,630
858
1,660
989
6,560
2,110
1,190
971
1,380
737
3,490

H - 17H - 18

Rococo-riha
Orage Suma

Toyonaka-shi, Osaka
Kobe-shi, Hyogo

Apr. 19, 2011
Sep. 14, 2010

Nursing and health facility
Nursing and health facility

2,100
2,810

H - 19H - 20H - 21
H - 22

Canadian Hill
Anesis Hyogo
Plaisant Grand Ota tamagawa
Tsukui Sun-shine Machida

Kobe-shi, Hyogo
Kobe-shi, Hyogo
Ota-ku,Tokyo
Machida-shi,Tokyo

Jan. 15, 2002
Sep. 12, 2005
Jan 14, 2018
Mar 28, 2011

Nursing and health facility
Nursing and health facility
Nursing and health facility
Nursing and health facility

1,830
1,420
3,057
6,934

Healthcare Facilities 22 props
Total 141 props

Total

51,377
230,500

100.0
84.3
89.2
100.0
76.6
96.5
92.8
84.9
100.0
91.4
95.0
N/A
100.0
100.0
100.0
96.4
99.0
95.5
92.7
97.1
89.5
92.5
63.8
－
91.1 /93.5 （５）(Note 1) “Type” is the classification of the principal residential unit of the building, the studio type (housing mainly for single households) [The exclusively owned area per residential
unit contains at least 18 ㎡, but less than 30㎡], the small family type (housing mainly for married-couple households and family households with an infant)[The exclusively
owned area per residential unit contains at least 30m2, but less than 60m2 ] or family type (housing mainly for family househ olds of 3 persons or more)[The exclusively owned
area per residential unit contains at least 60m2 per unit](Note 2) “Occupancy Rate” is as of the end of January 2019.
(Note 3) “Actual Occupancy Rate” = Number of residents / number of rooms as of the end of December 2018. “Actual Occupancy Ra te” is based on documents from operators but that of“Granda Mondo Yakujin” isn’t disclosed because KDR isn’t admitted to disclose by the operator. If “Actual Occupancy Rate” is over 100.0% by calcu lation, it is written as 100.0%.
(Note 4) “Utilization Rate” = Total number of users / Total number of capacity in a month. “Utilization Rate” is based on documents from operators.
(Note 5) Average Actual Occupancy Rate for “Nursing Care”, ”Residential” and “Serviced housing” is 91.1%, and Average Utilization Rate for “Nursing and health facility” is 93.5% in the above facility typeclassification.
(Note 6) T-9 ”Cosmo Heim Motosumiyoshi (Land)” is classified as “Other”, but in the above list, all figure of ”Cosmo Heim Motosumiyoshi (Land)” is classified in residential facility.
(Note 7) The list above shows the assets held as of March 1, 2019. As R-23 “KDX Residence Shin-Osaka” was sold on February 1, 2019, only the Occupancy Rate in the above list takes account of thatof R-23 “KDR Residence Shin-Osaka”.
(Note 8) If there are multiple facility types, the main facility types are listed.

Main properties
Residential Facilities
T-78

KDX Residence Toyosu

T-68

KDX Residence Ebisu

R-45

KDX Residence Shukugawa Hills

14

Overview of Portfolio

Hokkaido

7 props 3.5％

Percentage ofproperties owned
by area

Aomori,Akita：Residential：Healthcare

2 props 1.0％

Greater Osaka Area
Osaka,Kyoto,Hyogo,Shiga

29 props
23.6％

Miyagi3 props 0.9％
Fukuoka
6 props
4.4％

Tokyo Metropolitan Area
Tokyo, Kanagawa, Saitama, Chiba

Hiroshima

1 props 0.3％

Aichi
6 props
4.2％

87

props

62.1％

(Note) As of March 1, 2019

Healthcare
Facilities Facilities
H-22

Tsukui Sun-shine Machida

H-18

Orage Suma

Common RoomWest Tower

Dining Room

East Tower

Room

Training Room

Entrance

15

Unitholders’ benefit programs

Seikatsu Kagaku Un-Ei Co., Ltd.
Benefits

・Same-day facility site-visit(with lunch) free of charge

Eligible
PersonUnitholder and his / her spouses and his / her relatives(up to the second degree)

Facilities
Available

All of the private senior homes with nursing care
operated by Seikatsu Kagaku Un-Ei Co., Ltd. as ofJanuary 31,2019.

Sompo Care Inc.

Benefits

The Number of 25
Facilities
Area

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

Contact No.

+81-120-580-731

Homepage

http://www.seikatsu-kagaku.co.jp/

CENTURY LIFE CORPORATION
Benefits

・Same-day facility site-visit(with lunch) free of charge

Eligible
PersonUnitholder and his / her spouses and his / her relatives(up to the second degree)

Facilities
Available

All of the private senior homes with nursing care
operated by Seikatsu Kagaku Un-Ei Co., Ltd. as of January
31,2019.

The Number 10
of Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Osaka

Contact No. +81-120-580-731
Homepage

Facilities
Available

Unitholder and his / her spouses and his / her relatives (up to thesecond degree)*Excludes those who request information material throughagent or request site-visit tour for requested facility, and use inconjunction with other discount system is unavailable.
Ⅰ. Sompo Care LAVIERE operated by Sompo Care Inc as ofJanuary 31,2019. (Excluding short-term use)
Ⅱ. All of the private senior homes with nursing care for Sompo
Care Sompo no ie, Sompo no ie S, Sompo no ie GH, Private seniorhomes (residential)、Serviced senior housing, Group homes
operated by Sompo Care Inc. as of January 31,2019.
(Excluding the facilities for short-term use, franchise contractor,
business partner, the operator other than Sompo care Inc.)

The Number 424
of Facilities
Hokkaido, Akita, Miyagi, Saitama, Chiba, Tokyo,Kanagawa,Shizuoka, Aichi, Kyoto, Osaka, Hyogo, Nara, Okayama, Hiroshima,
Area
Fukuoka, Kumamoto
Contact No. +81-120-155-703
Homepagehttps://www.sompocare.com/ 【Business hour AM9:00～PM18:00】

http://www.centurylife.co.jp/

LIXIL SENIOR LIFE COMPANY
・≪On the condition of advance payment≫Discount on
one-time payment for resident ( ¥ 300,000 discount)
Benefits

Eligible
PersonⅠ. Sompo Care LAVIERE・≪On the condition of advance payment≫3% discount on onetime payment for resident・≪On the condition of monthly payment≫3% discount onmonthly rent equivalent (Until the contract ends)
Ⅱ. Fee-based homes for the elderly with nursing care for Sompo
Care Sompo no ie, Sompo no ie S, Sompo no ie GH, Fee-based
homes for the elderly (residential)、Serviced housing for theelderly, Group homes
・3% discount on monthly rent equivalent (Until the contract ends)

・Trial residence free of charge (1-night, 2-day stay, withdinner and breakfast)・Same-day facility site-visit (with lunch) free of charge

Eligible
PersonUnitholder and his / her spouses and his / her relatives(up to the second degree)

Facilities
Available

All of the private senior homes with nursing care
and apartment for the elderly operated by LIXILSENIOR LIFE COMPANY as of January 31,2019.

HITOWA Care Service Co., Ltd.
Benefits

Eligible
PersonFacilities
Available

・Same-day facility site-visit(with lunch) free of charge
・Discount on usage charge for two-month equivalent
Unitholder and his / her spouses and his / herrelatives (up to the second degree) *Those who
use in conjunction with other discount system isunavailable.
All of the private senior homes with nursing care
operated by HITOWA Care Service Co., Ltd as ofJanuary 31,2019.

Tokyo, Fukuoka

The Number 107
of Facilities
Hokkaido, Miyagi, Saitama, Chiba, Tokyo,
Area
Kanagawa, Nagano, Hyogo, Okinawa

Contact No.

-81-120-1165-97

Contact No. +81-120-12-2943

Homepagehttps://www.jsgsl.co.jp/

The Number 5of Facilities
Area

Homepage

http://www.irs.jp/

16

Nichii Carepalace Company
・Same-day facility site-visit(with lunch) free of charge

NM LIFE Co., Ltd.

Benefits

・Trial residence free of charge (1-night, 2-day stay, withdinner, lunch and breakfast)

Eligible
PersonUnitholder and his / her spouses and his / her relatives(up to the second degree)

Benefits

Facilities
Available

All of the private senior homes with nursing care
operated by Nichii Carepalace Company as of January
31,2019.

・Discount on one-time 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 of charge (up to three times)

Eligible Person

Unitholder and his / her spouses and his / her relatives (upto the second degree)

The Number 74
of Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Shizuoka

Contact No. +81-120-555-800
Homepage

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

Facilities
Available

Joy Stage Hachioji

The Number of 1
Facilities
Area

Tokyo

Contact No.

+81-120-38-0161

Homepage

http://www.joystage.com/

Sawayaka Club Corporation
・10% discount on usage charge for first monthBenefits

・Trial residence free of charge (1-night, 2-day stay,with dinner and breakfast)・Same-day facility site-visit(with lunch) free ofchargeEligible Person
Facilities
Available

Unitholder and his / her spouses and his / herrelatives (up to the second degree)
All of the private senior homes with nursing care
operated by Sawayaka Club Corporation as of January
31,2019.

(Note1) A resident of the requested healthcare facility is ineligible .
(Note2) The area and the number of facilities are as of January 31, 2019.
(Note3) There may be restrictions on trial residence 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 care manager and Medical
checkup before trial residence.

The Number of 70
Facilities
Hokkaido, Akita, Tochigi, Saitama, Chiba,
Kanagawa, Niigata, Shizuoka, Aichi, Mie, Kyoto,
Area
Osaka, Hyogo, Ehime, Wakayama, Fukuoka, Oita
Contact No.

+81-120-958-490

Homepage

http://www.sawayakaclub.jp/

Excellent Care System Co., Ltd.
Benefits

・Same-day facility site-visit(with lunch) free of charge

Unitholder and his / her spouses and his / herrelatives (up to the second degree) ※A resident of
Eligible Person the requested healthcare facility is ineligible and use
in conjunction with other discount system isunavailable.
All of the private senior homes with nursing care
Facilities
operated by Excellent Care System Co., Ltd. as of
Available
January 31,2019.
The Number of 15
Facilities
Area

Tokyo, Kanagawa, Kyoto, Hyogo, Tokushima

Contact No.

+81-42-538-1165

Homepage

http://www.excare.co.jp/

17Unitholders’ benefit programs
Through the utilization of the Unitholder Benefit Program, KDR hope that the unitholders and their families will be able torealize healthy longevity.

General Outline of the Unitholder Benefit Program
1.Eligible Unitholder

Unitholders stated or recorded on the unitholders’ register of the Investment Corporation as of July
31, 2018 will be eligible for the unitholder benefit program.

2 Contents

Unitholders owing more than 1 unit will be entitled to the benefits as described previous page.

3 .Method for the
Use of Benefits

Please present Semi-annual Report for the fiscal period ending January 2019 (14th fiscal
period) and the paper setting forth the name, address, etc. of the unitholder or dividend
receipts, which are enclosed in the Semi-annual Report, to the healthcare facility.

4 .Validity Period

October 31, 2019

Q&A
Q At which facilities will I be eligible for benefit programs?
A
About Benefit
programFacilities offering programs are shown on the list, but applicable facility types vary depending oneach 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, there may be
A 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?
A

Please call and tell the operator that you wish to use the “Unitholder Benefit
Program.” You will be provided with detailed information on necessary procedures.

Q What do I need to bring when using the program?
How to use

Please bring the document enclosed with this Semi-annual Report affixed with yourA 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 your request
A depending on the operational status or vacancy status. Please call the operator in advanceand receive instructions before a visit.

18

II.

Asset management report

1. Outline of asset management operation(1)

Operating result and financial position
Fiscal period

10th
11th
12th
13th
14th
Unit From Aug. 1, 2016 From Feb. 1, 2017From Aug. 1, 2017 From Feb. 1, 2018From Aug. 1, 2018
to Jan. 31, 2017 to Jul. 31, 201 7 to Jan. 31, 2018 to Jul. 31, 2018 to Jan. 31, 2019

Operating result

Operating revenues

mil.yen

5,468

5,574

5,681

7,097

7,823

(Rental revenues)

mil.yen

5,437

5,574

5,671

6,655

7,605

Operating expenses

mil.yen

2,629
2,050

2,741
2,124

2,791
2,107

3,657

3,610

2,554

2,794

(Expenses related to rent business) mil.yen
Operating income

mil.yen

2,838

2,833

2,889

3,439

4,213

Ordinary income

mil.yen

2,311

2,316

2,353

2,842

3,599

Net income

mil.yen

2,310

2,315

2,352

5,416

3,598

Total asset

mil.yen167,276

167,316

176,813

213,558

245,103%(＋4.6)(＋0.0)(＋5.7)(＋20.8)（＋14.8）Interest-bearing debt

mil.yen81,80081,80091,130106,130

123,250

Unitholders’ equity

mil.yen82,55282,55982,65098,745111,951%(＋0.2)(＋0.0)(＋0.1)(＋19.5)（＋13.4）

Unitholders’ capital

mil.yenTotal distribution

mil.yen80,1322,315
100.0

80,132
2,424
103.1

80,132
3,152
58.2

93,2263,510
97.6

349,089

349,089

782,928

869,133(period to period change)Asset(period to period change)

Distribution per unit

Dividend payout ratio (Note 2)%

80,132
2,280
98.7

Number of investment units issued
and outstanding

unit

349,089

Net income per unit (Note 3,4)

yen

6,617

6,632

3,369

Unitholders’ equity per unit (Note 3)

yen

236,478

236,498

118,379

7,036
126,123

4,143
128,807

Distribution per unit

yen

6,533

6,633

6,946

4,026

4,039

Profit distribution

yen

6,533

6,633

6,946

4,026

4,039

Distribution in excess of profit

yen

－

－

－

－

－

Return on assets (Note 5)

%

1.4
2.7

1.6

%

1.4
2.8

1.5

Annualized (Note 6)

1.4
2.8

2.9

3.1

2.8
5.6

2.8
5.7

2.8
5.6

6.0

3.4

12.0

49.4

49.3

46.7

46.2

6.8
45.7

(△2.1)(△0.0)(△2.6)(△0.5)（△0.6）

%

48.9

48.9

51.5

49.7

FFO (Note 9)(Funds from Operation)

mil.yen

3,189

3,227

3,295

6,126

FFO per unit (Note 3,10)

yen

9,137

9,246

4,720

7,824

5,466

Leasing NOI (Note11)(Net Operating Income)mil.yen

4,265

4,335

4,486

5,245

6,154

%

5.5

5.6

5.4

5.5

5.5

mil.yen

4,044

4,094

4,199

4,808

5,539

Return on net assets (Note 7)
Annualized (Note 6)
Net asset ratio
Financial indicator(period to period change)
Interest-bearing debt ratio on assets(Note 8)Annualized NOI yield (Note 6,12)
Leasing NCF(Note 13)(Net Cash Flow)
Annualized NCF yield (Note 6,14)
Number of properties

%
%
%

%
properties

50.3
4,750

5.2

5.3

5.1

5.0

5.0

113

113

115

129

138

Reference

Leased units (Residential)

unit

7,229

7,285

7,646

7,552

8,017

Total leasable floor area (Note 15)m²

295,364.44

292,324.33

303,608.43

410,556.41

467,606.17

Occupancy ratio (Note 15)

%

96.2

96.8

97.0

97.6

97.7

Depreciation expenses

mil.yen

878

884

921

1,144

1,343

Capital expenditures

mil.yen

220

241

286

436

614

19

(Note 1)(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)
(Note 12)(Note 13)
(Note 14)
(Note 15)

(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
Net income for 13th fiscal period include negative goodwill of 2,574 million yen.
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. “Net income per unit”, “Unitholders’ equity per unit “ and “FFO per unit “ are calculated subjected for theInvestment Corporation investment units to be split on August 1, 2017.
Net income per unit is calculated by dividing the net income by weighted average of number of investment units
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 10th fiscal period are calculated based on a period of 184 days, 181 days for 11th fiscal period, 184 daysfor 12th fiscal period, 181 days for 13th fiscal period, 184 days for 14th 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 saleof real estate property. Net income for 13th fiscal period include negative goodwill of 2,574 million yen.
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.

Outline of asset management operation for the 14th fiscal period① 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 Marketof the Tokyo Stock Exchange (Securities Code: 3278). Afterwards, the Investment Corporation implemented a 2for-1 investment unit split with March 1, 2018 as the effective date, and also at the same time conducted anabsorption type merger (“the Merger”) with the Investment Corporation as the surviving corporation and Japan
Senior Living Investment Corporation (“JSL”) as the absorbed corporation. Most recently, the Investment
Corporation issued new investment units through public offering and by way of third-party allotment for the firsttime in three and a half years and by additional borrowings as well as the raised funds, acquired 11 properties (thetotal acquisition price (Note 1) is 29,284 million yen) from the merger to the end of 14th fiscal period. As of theend of the 14th fiscal period (January 31, 2019), the number of properties was 138 (total acquisition price: 220,916
million yen (excluding silent partnership equities; the same applies hereinafter)) and the number of investment
units issued and outstanding totaled 869,133 units. The Investment Corporation is externally managed by Kenedix
Real Estate Fund Management, Inc. (the “Asset Management Company”), a company that was formed withpersonnel from Kenedix, Inc. and adheres to the core philosophies of Kenedix, Inc . the Asset Management
Company provides real estate investment management services with flexibility and agility unique to a J-REIT(Note 2) sponsored by an independent real estate management company by flexibly pursing optimal investment
opportunities and income opportunities and agilely investing and managing based on swift information gatheringand decision-making while accurately grasping real estate-related trends.
（Note 1）“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 city-planning tax, and consumption tax) and is rounded down to the nearest million yen. The appraisal value as of March 1,
2018 is indicated as the acquisition price for assets succeeded by JSL due to the merger. The same applies hereinafter.
(Note 2) "J-REIT" is an investment corporation listed on the real estate investment trust of the Tokyo Stock Exchange.

② Operating Environment
Despite temporary stagnation due to the impact of sequential natural disasters such as large typhoons and the
Hokkaido earthquake, the Japanese economy continues its gradual recovery with continuous improvement in20

corporate revenue and increase in capital investment as well as strong personal consumption against the backdrop
of continuous improvement in employment and income environment. Going forward, the Japanese economy isexpected to continue its gradual recovery with the continuation of a positive circulation mechanism from income
to expenditure in both corporate and household sectors against the backdrop of an extremely loose financial
environment and support due to government expenditure. However, concerns on uncertainties surrounding the
U.S.-China trade friction, trends in the EU zone and other global economic factors, as well as volatility in thefinancial markets, create an environment where caution is required.
In the rental housing market, the occupancy rates and rent levels of the rental apartment buildings in which theInvestment Corporation invests remain high. Given that metropolitan areas continue to experience population
growth while rental apartment supplies remain low, a favorable supply-demand environment is expected for theseareas in the future.
Concerning the environment surrounding healthcare facilities, with one of the longest average life expectancies
for both men and women, Japan now has a super-aging society (Note) which no other country has everexperienced, and the “aging,” or the increase in the ratio of the elderly population against total population and theincrease in elderly population itself, is expected to continue going forward. As is responding to such trends, thenumber of senior care facilities 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.
We continue to see active investment activity in the real estate investment markets on the part of both Japaneseand overseas investors.
With The Bank of Japan’s aggressive monetary easing measures in the background, active transaction are
expected to continue in real estate market; however, due to the ongoing harsh property acquisition environment,
expected yield is likely to remain at a low level.
(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.

③ 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., the Investment Corporation acquired 4 residential properties (total acquisition price:
13,840 million yen), acquired 6 healthcare facilies (total acquisition price: 14,707 million yen) and sold 1
residential property (acquisition price: 520 million yen / sold price:730 million yen).
＜Acquired assets＞
Property number

Property nameAcquisition price（million yen）（Note 1）

T-79

KDX Residence Asagaya

1,930

T-80

KDX Residence Hiyoshi

2,635

R-44

Serenite Kobe Motomachi

2,390

R-45

KDX Residence Shukugawa Hills

6,884

Residential

Total

13,840H-16

Anesis Teradacho

3,490

H-17

Rococo-riha

2,100

H-18

Orage Suma

2,810

21

H-19

Canadian Hill

1,830

H-20

Anesis Hyogo

1,420

H-21

Plaisant Grand Ota tamagawa（Note 2）

3,057

Healthcare

Total

14,707＜Sold assets＞
Property number
R-14

Property name
KDX Residence Kotodai

Sold price（million yen）
（Note１）730（Note 1） “Acquisition Price” and “Sold Price” are 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 acquired assets and sold assets, and are rounded down to the nearest million yen.
(Note 2) The property name was changed from “Tanoshii ie Ota tamagawa” to “Plaisant Grand Ota tamagawa” on January 7,
2019.

As a result of the above, as of the end of the 14th fiscal period, the Investment Corporation owned a total of 138
properties (total acquisition price: 220,916 million yen), which consist of 116 residential properties (acquisition
price: 174,724 million yen), 21 healthcare facilities(acquisition price: 44,442 million yen) and 1 other property(land with leasehold interest; acquisition price: 1,750 million yen).

（B）Management of real estate holdings
With respect to residential, The Investment Corporation managed our real estate holdings with the aim ofachieving 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 the region, 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
advertising efforts 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, we strove to raise rent levels for and obtain key
money from new tenants; raise rents when leases were renewed; increase revenue associated with 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 toLED; and reviewed the contracts for auxiliary facilities, as well as solicitation costs, etc., in order to improveincome and expenditures.
Moreover, with the aim of maintaining and/or improving the market competitiveness of our portfolio assets, weundertook planned major renovation work at four properties, updating work in common areas as well as valueincreasing work and facility updates in individually-owned areas.
As a specific measure contributing to the maintenance and improvement of revenue at the rental business forhealthcare facilities, the Investment Corporation visited facilities to check their operational status including
income, expenditures and occupancy rate, and made inquiries to facility managers while also inquiring aboutbusiness conditions, future management policies, etc. through interviews with operation managers, etc. as partof operator monitoring activities. In addition, the Investment Corporation conducted value enhancement workof the common area as well as changed the contract term through discussions with the operator at Joy Stage
Hachioji.

22We also continued our green efforts during the 14th fiscal period, introducing LED lighting in common areas.
As for residential facilities, 2 properties newly obtained DBJ Green Building Certification, an environmental
awareness recognition from an external evaluator during the fiscal year, bringing the total number of properties
that have obtained certification to 7 as of the end of the 14th fiscal period (January 31, 2019). As for healthcare
facilities, we acquired BELS Certification for Plaisant Grand Ota Tamagawa as an environmental certificationfrom an external evaluator.
As a result, the occupancy rate of residential properties was 96.7% as of the end of the 14th fiscal period(January 31, 2019), During the fiscal period, the average occupancy rate was 96.5%. Furthermore, the averageoccupancy rate in the 14th fiscal period and the occupancy rate of the end of the 14th fiscal period (January 31,2019) was 100.0%. Consequently, the occupancy rate of entire portfolio (including land with leasehold interest)
was 97.7% as of the end of the 14th fiscal period (January 31, 2019).

(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.
(Issuance of New Investment Units)
In the 14th fiscal period, the Investment Corporation procured 12,470 million yen of funds by issuing
82,100 new investment units through public offering on August 1, 2018 with the aim of allocation to funds
for acquisition of specified assets. In addition, the Investment Corporation procured 623 million yen of funds
by issuing 4,105 new investment units through third-party allotment on August 29, 2018 with an aim ofprocuring funds for acquisition of specified assets and repayment of borrowings in the future.
As a result, unitholders’ capital came to 93,226 million yen as of the end of the 14th fiscal period (January
31, 2019).
（Debt Financing）
The Investment Corporation newly borrowed 15,700 million yen as funds for acquisition of new
properties as well as 11,000 million yen as funds for repaying borrowings of which repayment was due
during the 14th fiscal period. On the other hand, the Investment Corporation conducted partial prepayment of
580 million yen using part of funds procured through the issuance of investment corporation bonds as funds
for repayment. As a result of the foregoing, the average remaining term of interest-bearing debt (Note 1) was
4.7 years, and the average interest rate at the end of the 14th fiscal period (Note 2) was 0.99%. The long-term
debt ratio (Note 3) came to 90.5%, the fixed interest-rate ratio (Note 4) was 91.7%, and the loan to value
ratio (LTV) came to 50.3%.
(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)
and interest rate swaps, etc., and the weighted average was calculated in accordance with the balance of each interestbearing debt.
Long-term debt ratio = (balance of long-term borrowings (excluding long-term borrowings to be repaid within oneyear) + balance of investment corporation bonds) ÷ (balance of borrowings + balance of investment corporation bonds)
The long-term debt ratio that includes long-term borrowings to be repaid within one year is 98.3%.
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) ÷(balance of borrowings + balance of investment corporation bonds)

23

（Investment Corporation Bonds）
The Investment Corporation issued the following 2,000 million yen of investment corporation bonds in the
14th fiscal period with the intention of diversifying its fund procurement methods resulting in the outstanding
debt balance of 5,000 million yen as of the end of the 14th fiscal period (January 31, 2019). Of the procured
amount, 580 million yen was allocated to partial prepayment of borrowings. The remaining amount was
reserved and allocated to part of funds for the acquisition of KDX Residence Kamikitazawa acquired on
February 1, 2019 after the end of the 14th fiscal period.
Name of investment
corporation bonds
Fourth Series Unsecured
Investment Corporation
Bonds
Fifth Series Unsecured
Investment Corporation
Bonds

Issuance dateNovember 30, 2018

November 30, 2018

Balance as ofJanuary 31, Interest rate
2019（％）
(million yen)
1,000

1,000

0.410

0.850

Maturity date

Redemption
methodRemarks

Full onmaturity（Note）

November 30, 2023

November 30, 2028

（Note）Ranking pari passu among the specified investment corporation bonds（Credit Ratings）
The status of the credit ratings as of the end of the 14th fiscal period (January 31, 2019).
Credit Rating Agency

Type

RatingLong-term issuer rating

A+ (Outlook : Stable)

Bond rating

A+

Japan Credit Rating Agency, Ltd.(JCR)（Shelf Registration）
The Investment Corporation filed a shelf registration statement regarding investment corporation bonds(excluding short-term investment corporation bonds) on June 28, 2018 with the following overview.
Planned issuanceamountPlanned issuance
periodUse of proceeds

100,000 million yen
From July 6, 2018 to July 5, 2020
Funds 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
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 1,000 million yen of the Fourth Series Bonds and 1,000 million yen of theFifth Series Bonds on November 30, 2018 based on the above shelf registration.

④ Over view of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues of 7,823
million yen, operating income of 4,213 million yen, ordinary income of 3,599 million yen and net income of 3,598
million yen for the 14th fiscal period.
In regard to profit distributions for the 14th fiscal period, pursuant to the distribution policy in the Investment
Corporation’s certificate of incorporation, the Investment Corporation has decided to apply special provisions of
the tax 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 3,510,428,187 yen
as profit distribution from unappropriated retained earnings for the 14th fiscal period, which is the amount of the24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 we have gains from property sales, we will consider whether we need similar internal reserves aslong as cash distribution does not fall below the initial projection, taking into consideration such need inaccordance with the circumstances.

25

(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

Capital transaction

Unitholders’ capital(Million yen)

Number of investment units
Issued and outstanding
Increase

Balance

Increase

RemarkBalancePublic offering

36,375277,997

8,273

56,865(Note 1)

September 3, 2014

Third-party allotment

1,125

279,122255

57,121(Note 2)February 4, 2015

Public offering

67,900347,022

22,33079,452(Note 3)

March 4, 2015

Third-party allotment

2,067

349,089679

80,132(Note 4)

March 1,2018

Investment unit split

349,089

698,178－

80,132(Note 5)

March 1,2018

Marger

84,750782,928－

80,132(Note 6)

August 1, 2018

Public offering

82,100865,028

12,47092,602(Note 7)

August 29, 2018

Third-party allotment

4,105

869,133

623

93,226(Note 8)August 6, 2014

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)New investment units were issued at a price of ¥235,657 per unit (subscription price of ¥227,439 per unit) through a public
offering in order to raise funds for acquiring new properties.
New investment units were issued at a price of ¥227,439 per unit through the third-party allotment in order to raise funds for
miscellaneous expenses related to the acquisition of new properties.
New investment units were issued at a price of ¥340,762 per unit (subscription price of ¥328,879 per unit) through a public
offering in order to raise funds for acquiring new properties.
New investment units were issued at a price of ¥328,879 per unit through the third-party allotment in order to raise funds for
future acquisitions of specified assets and repayment of borrowings.
The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and theeffective date as of March 1, 2018.
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.
New investment units were issued at a price of ¥157,047 per unit (subscription price of ¥151,892 per unit) through a public
offering in order to raise funds for acquiring new properties.
New investment units were issued at a price of ¥151,892 per unit through the third-party allotment in order to raise funds for
future acquisitions of specified assets and repayment of borrowings.

【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

13th Fiscal period

10th Fiscal period
January 31, 201711th Fiscal period
July 31, 201712th Fiscal period
January 31, 2018

Highest price319,000

320,500

329,500

172,800

181,000

Lowest price272,400

263,100

274,800

148,400

160,500（Note）

July 31, 2018

14th Fiscal period
January 31, 2019

(Note) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective date asof March 1, 2018.Figures for the 13th fiscal period take into account the investment unit split.

26

（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
3,510,428 thousand yen as profit distribution from unappropriated retained earnings for the 14th fiscal period, whichis the amount obtained by deducting a portion of gain on sale, etc. from the net income for the 14th fiscal period andadding the reversal of the Reserve for temporary difference adjustment.
As a result, distributions per unit for the 14th fiscal period amounted to 4,039 yen.
13th
10th
11th
12th
14th
From Aug.1, 2016 From Feb.1, 2017 From Aug.1, 2017 From Feb.1, 2018 From Aug.1, 2018
to Jan.31, 2017
to Jul.31, 2017
to Jan.31, 2018
to Jan.31, 2019
to Jul.31, 2018

Fiscal period
Unappropriated retained(Thousand yen)earnings(Thousandyen)
Retained earnings
Total distribution(Distribution per unit)(Thousand yen)
(Yen)

(Thousand yen)
Profit distribution(Profit distribution per
(Yen)
unit)
(Thousand yen)
Unitcapital refunds(Unitcapital refunds per
(Yen)
unit)
Unitcapital refund fromretained earnings for(Thousand yen)temporary difference
adjustment(Unitcapital refund fromretained earnings for(Yen)
temporary difference
adjustment per unit)
Unitcapital refunds fromdeduction of unitcapital (Thousand yen)under tax rules(Unitcapital refunds fromdeduction of unitcapital (Yen)under tax rules per unit)

2,365,163

2,400,002

2,437,011

5,428,676

3,875,050

84,56484,495

12,2392,276,608

384,6222,280,598

2,315,507

2,424,772

3,152,068

3,510,428（6,533）（6,633）（6,946）（4,026）（4,039）2,280,598

2,315,507

2,424,772

3,152,068

3,510,428（6,533）（6,633）（6,946）（4,026）（4,039）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

（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.,
healthcare facilities such as private senior homes with nursing care and accommodation facilities such as hotels,
based on the three core strategies: “Consistent External Growth by Making Use of Good Judgment,” “EfficientProfit 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 andstay” encompassing residential facilities, healthcare facilities and accommodations.

（A）New property acquisitions
The Investment Corporation will invest primarily in residential, healthcare and accommodation properties“spaces where people live and stay” as its target investments. In making investments, the Investment
Corporation will stringently select real estate etc. where stable demand from tenants and users and long-term
stable revenue flows can be projected on the basis of an individual analysis of the attributes of a particular

27

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 todetermine investment opportunities providing rental income with medium- to long-term stability, and invests
also in rental residential properties and other residential facilities located mainly in greater Tokyo and in Other
Regional Areas (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.
We leverage our “judgment capabilities” that we have developed as real estate investment professionals to
select excellent investment opportunities among a broad range of targets, and we believe this enables us toacquire properties at a stable pace.
As a property acquisition channel, we 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 facilities, ii and) healthcare facilities and iii) accommodations and Residential
REIT department is applied for those having 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 which a support agreement was executed on June 15, 2017 andShinsei Bank, Limited, HASEKO Corporation, Mitsubishi UFJ Trust and Banking Corporation and LIXILGroup Corporation, with which a support agreement was executed on November 10, 2017 by the Merger, forflexible property acquisitions.
We also plan to control property acquisition timing in order to acquire properties at an advantageous timingin accordance 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 Strategy for existing 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 accordancewith individual property characteristics, and by closely allying with leading real estate companies experienced
in regional 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 andmovements of competing properties and seek to maintain or improve occupancy rates, raise rent levels at thetime of tenant changes, increase rent at the time of lease renewals, receive key money, reduce the time ofvacancy, maintain or improve lease renewal rates, and secure parking revenue and other auxiliary revenue andother income opportunities to secure rent income.
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 theelectricity market, cut costs through the use of LED lighting for common areas, and reduce tenant solicitationand other costs.
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 offacilities it owns and business status of operators by information about them and companies from operators,
inspection of operating status and interview by visiting them and interview with managements in operating

28

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
companies in preparation of changing operators.
The Investment Corporation will manage to make internal growth by deepening relation with operators suchas value-ups based on proposal from operators and cooperation for resolving issues in operation.

（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
means in 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 4, 2019 and February
13, 2019 to issue new investment units to apply the funds toward a payment for the acquisition of specified
assets.
Payment has been completed on February 20, 2019, and issuance of new investment units by third-party
allotment has been completed on March 11, 2019.
As a result, Unitholders’ capital came to 99,731,514,403 yen and Number of investment units issued andoutstanding came to 907,458 units as of March 11, 2019.

29

(Issuance of New Investment Units through Public Offering)
Total number of units to be offered：36,500 unit
Issue price (offer price)：175,500 yen per unit
Total amount issue price (offer price)：6,405,750,000 yen
Purchase price (Amount to be paid in)：169,740 ye per units
Total amount purchase price (Amount to be paid in) ：6,195,510,000 yen
Payment date：February 20, 2019

(Issuance of New Investment Units by Third-Party Allotment)
Total number of units to be issued
Issue Price（Paid-in-Value）
Purchase price (Amount to be paid in)Payment date
Allottee：1,825 units：169,740 yen per unit
：309,775,500 yen：March 11, 2019
：SMBC Nikko Securities Inc.

30

(Reference)① Acquisition of assets
a. The Investment Corporation acquired the following trust beneficiary interest in real estate on February 1,
2019, February 21, 2019 and March 1, 2019.
Date of Acquisition

Property
number
T-81

February 1, 2019
T-82
February 21, 2019

T-83

March 1, 2019

H-22

Property Name

Location

KDX Residence
Kamikitazawa (Note1)
KDX Residence Kaminoge(Note1)KDX Residence HigashiAsakusa (Note1)
Tsukui Sun-shine Machida

Previous Owner

Setagaya-ku,
Tokyo
Setagaya-ku,
Tokyo
Taito-ku,Tokyo
Machida-shi,Tokyo

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

Non-disclosure(Note 4)Non-disclosure(Note 4)Non-disclosure(Note 4)G.K. KSLF5

Total(Note1)(Note2)(Note3)

1,360

1,400

1,111

1,200

687

727

6,934

7,070

10,093

10,397

The trust beneficiary interest sales contract associated with the assets for T-81 ,T-82 and T-83 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 planningtax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-be acquired assets andis rounded down to the nearest million yen.
“Appraisal Dates” for T-81 and T-82 are December 1, 2018. “Appraisal Date” for T-83 is January 1, 2019. “Appraisal Date” forH-22 is December 1, 2018.

(Note4)Not disclosed according to seller’s intention

b. The Investment Corporation executed trust beneficiary interest sales contract (Note 1) concerning thefollowing trust beneficiary interest in real estate (the “to be acquired assets”) on February 4, 2019.
Date of To-beacquired

Property
number

Property Name

H-23

Serabi Ebisu

H-24

Arute Ishiyagawa

June 3, 2019

Location

Meguro-ku
TokyoKobe-shi
Hyogo

AcquisitionPrice(scheduled)(mil.yen)（Note 2）

Appraisalvalue（mil.yen）（Note 3）G.K. Tropic Ⅲ

1,690

1,700

G.K. Tropic Ⅲ

1,061

1,430

2,751

3,130

Previous Owner

Total（Note 1）The trust beneficiary interest sales contract (“the sales contract”) associated with the to be acquired assets (“the Property”) fallunder the forward commitments, etc. by the Investment Corporation as specified in the Financial Services Agency“Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc.”
In the case a party violates any provisions of the sales contract (including cases in which representations and warranties are nottrue) and may not achieve the objectives in the sales contract due to such violation, the counterparty may, in principle, cancel thesales contract and require payment of an amount equivalent to 5% of the amount calculated by deducting the amount equivalent
to consumption tax and local consumption tax from the transaction price as cancelation penalty. However, the establishment of
the obligation of the Investment Corporation to pay the amount due is effective on the condition of completion of the
procurement of funds by the Investment Corporation for the purchase and sale of the Property. In case where the Investment
Corporation may be unable to procure the funds required for purchase the asset to be acquired by the transaction date, there
would be no violation of a contractual obligation by the Investment Corporation and no responsibility to pay damages to theseller. Consequently, we believe that even if the Investment Corporation fails to fulfill the forward commitments, etc., as aconsequence of failure to complete the funds, it is unlikely to have a significant impact on the financial condition of theInvestment Corporation.
（Note 2) “Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city planningtax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-be acquired assets and isrounded down to the nearest million yen. The same shall apply hereafter.
（Note 3）“Appraisal Date” is December 1, 2018.

② Sales of assets
The Investment Corporation sold the following trust beneficiary interest in real estate on February 1, 2019.
Date of Sale

Property
number

Property nameLocation

Buyer

Sales
Price

Appraisal value（mil.yen）

31

(mil.yen)（Note 1）February 1, 2019

R-23

KDX ResidenceShin-Osaka

Osaka-shi
Osaka

Nondisclosure(Note 3)（Note 2）690

578

（Note 1）“Sales Price” is excluding sales costs, adjusted amount for property tax and city planning tax or consumption tax, etc.
（Note 2）“Appraisal value “ is January 31, 2019
（Note 3）Non-disclosure according to buyer’s intention。

32

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

10th
12th
14th
11th
13th
As of January 31,
As of January 31,
As of 31, January
As of July 31, 2017
As of July 31, 2018
2017
2018
2019

Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)5,000,000

5,000,000

5,000,000

10,000,000

10,000,000

349,089

349,089

349,089

782,928

869,133

80,13280,13280,13280,132

93,226

9,009

9,328

8,466

12,847

12,484（2）Matters concerning Investment Units
Major unitholders as of January 31, 2019 are as follows.

Name

Address

Number ofinvestment units
owned(Units)）Ratio（％）（Note）

Japan Trustee Services Bank, Ltd. (trust account) 8-11, Harumi 1-chome, Chuo-ku, Tokyo

254,892

29.32

The Master Trust Bank of Japan, Ltd. (trust
account)

11-3, Hamamatsu-cho 2-chome,Minatoku, Tokyo

164,974

18.98

The Nomura Trust and Banking Co., Ltd.

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

33,724

3.88

31,596

3.63

8-12, Harumi 1-chome, Chuo-ku, Tokyo
Trust & Custody Services Bank, Ltd. (securities
Harumi Island Toriton Square Office
investment trust account)
Tower Z
Kenedix, Inc.

2-1 Uchisaiwai-cho 2-chome, Chiyoda-ku,
Tokyo

16,5701.90

Mizuho Trust & Banking Co., Ltd.

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

16,454

1.89

Mitsubishi UFJ Trust and Banking Corporation

4-5, Marunouchi 1-chome, Chiyoda-ku,
Tokyo

15,816

1.81

The Gunma Bank, Ltd.

194, Motosojamachi, Maebashi-shi,
Gunma

14,0001.61

STATE STREET BANK WEST CLIENTTREATY 505234

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

11,9301.37

STATE STREET BANK AND TRUSTCOMPANY 505012

11-1, Nihombashi 3-chome, Chuo-ku,
TokyoStanding Proxy:The Hongkong andShanghai Banking Corporation Limited,Tokyo branch, Custody Business
Department

11,3501.30

571,306

65.73

Total

(Note) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places33

（3）Matters Concerning Directors and Auditor①The Executive Directors, Supervisory Directors and the Independent Auditor during the 14th fiscal
period are as follows.

Position

Name

Keisuke Sato

Kenedix Real Estate Fund Management, Inc.
Director & COO, Head of Residential REIT Department
and Head of Asset Investment Divisio

1,800

Katsue Okuda

Ogata Appraisal Corporation, Director
Lecturer in Meiji University’s Graduate School of Global
Business
Japan Association of Real Estate Appraisers, Managing
director
Kudan Ogata Holdings Corporation, Representative
director
Kudan Urban Appraisal Co., Ltd., Director
CERESPO CO.,LTD., Auditor

1,800

Executive
Director

Osamu Chiba

Satoshi Ogawa
Supervisory
Director（Note 1）

Soichiro Iwao

Independent
auditor（Note 2）
(Note 1)
(Note 2)
(Note 3)

Other concurrent title

Total amount offees
paid during theperiod(thousand yen)

Ernst & Young ShinNihon
LLC

Akebono Law Office, Attorney
Toin Law School, Associate Professor
Maruzen Foods Corporation, Outside Auditor
Imagica Robot Group Inc. (Note 3) Outside Director
Ogawa CPA Office, CPA
GK Mercury Consulting, Representative Partner
Oedo-Onsen Monogatari Co., Ltd, Auditor
Ooedo Onsen Monogatari Hotels & Resorts Co., Ltd.
Auditor

1,500

1,500

Keio University’s School of Medicine, Resident professor
Hungarian Medical Universities, Director
Chigasaki Central Clinic, Director
Medical Corporate Body Ken-iku kai, Vice President
Medical Corporation Kyo sai kai, Director
Medical Corporation Jyo ban kai, Director
National Federation of Industrial Health Organization,
Director

1,500－

14,200Supervisory Director may be an officers of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation.
The fee of Independent auditor includes remuneration for Comfort Letter creation work related to issuance of new investment
units.
Imagica Robot Holdings Inc. changed it company name to Imagica Robot Group Inc. on October 1, 2018.

② 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 andInvestment Corporations, and a decision not to re-appoint an independent auditor will be considered bycomprehensively taking into account the audit quality, compensation and other various circumstances by the boardof directors of the Investment Corporation.

（4）Asset Management Company, Custodian and General Administrators
The asset management company, custodian and general administrators as of the end of the 14th fiscal period are
as follows.

34

Classification

Name

Asset manager

Kenedix Real Estate Fund Management, Inc.

CustodianMizuho Trust & Banking Co., Ltd.

General administrator (Unitholder registry)

Sumitomo Mitsui Trust Bank, Limited

General administrator (Regarding book keeping)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.

35

3．Status on Investment Properties（1）Component of Assets
13th
As of July 31, 2018
Total amountComposition
held
ratio (%)
(mil.yen)(Note 6)（Note 5）Classification
Use

Area

Residential

Tokyo Metropolitanof assets

14th
As of January 31, 2019
Total amountComposition ratio
held(%)(mil.yen)(Note 6)（Note 5）

113,969

53.4

118,40348.3

47,80822.4

56,705

23.1

10,593

5.0

13,8105.6

17,613

8.2

29,291

12.0

1,364

0.6

1,346

0.5

191,350

89.6

219,558

89.6

1,798

0.8

1,798

0.7

1,798

0.8

1,798

0.7

512

0.2

111

0.0

19,898

9.3

23,635

9.6

213,558

100.0

245,103

100.0

Area (Note 2)
Other Regional Area
Trust
beneficiaryinterest in realestate(Note 3)
Healthcare

Tokyo Metropolitan
Area (Note 2)
Other Regional Area
(Note 3)
Other (Note 4)

Total (Trust beneficiary interest in real estate)
Real estate

Other

Tokyo Metropolitan
Area (Note 2)

Total (Real estate)
Silent partnership equity interest (Note 1)
Bank deposits and other assets
Total assets(Note 1)

Silent partnership equity interest of GK Tropic I, GK Tropic Ⅱ, GK Tropic Ⅲ and G.K.KSLF8 in the 13th fiscal period
and of GK Tropic Ⅲ in the 14th fiscal period.

(Note 2)“Tokyo Metropolitan Area” means major cities in Tokyo, Kanagawa, Saitama and Chiba.

(Note 3)“Other regional areas” include government-designed municipalities and other regional cities.

(Note 4)“Other” means cities except Tokyo Metropolitan Area and Other regional areas.

(Note 5)

“Total amount held” means carrying amounts on the balance sheet (amounts of Trust beneficiary interests in real property andreal property are book values net of depreciation) at the end of fiscal period and rounded off to one dismal place.

(Note 6)“Composition ratio” means the ratio of carrying amounts of each classified assets to total assets on balance sheet androunded off to one dismal place.

（2）Major Assets Owned
The overview of major assets owned by the Investment Corporation (Top 10 properties in net book value as ofJanuary 31, 2019) are as follows.
No.

Name of property

T-78

KDX Residence Toyosu
KDX Residence Shukugawa
Hills

7,761

6,811.38

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

7,215

17,575.39

16,390.89

93.3

Activa Biwa

6,471

39,649.84

39,649.84

100.0

R-45
H-10

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

Leased area(m²) (Note 2)

2.7 Residence
Non-disclosure（Note 5)

Healthcare

36

T-56

KDX Residence Hanzomon

4,960

4,854.23

4,796.86

98.8

1.7 Residence

T-1

KDX Daikanyama Residence

4,797

5,338.99

5,338.99

100.0

2.1 Residence

R-39

KDX Residence Ohori Harbor
View Tower

4,589

11,855.63

10,859.63

91.6

2.3 Residence

T-52

KDX Residence Togoshi

3,759

4,591.76

4,558.58

99.3

H-3

Joy Stage Hachioji

3,690

13,812.27

13,812.27

100.0

H-16

Anesis Teradacho

3,589

7,856.64

7,856.64

100.0

R-35

Leopalace Flat Shin-sakae
Total

3,530
50,365

11,589.95
123,936.08

11,589.95
121,665.03

100.0
ー

1.6 Residence
Non-disclosure
Healthcare（Note 5)Non-disclosure
Healthcare（Note 5)
1.6 Residence
20.8（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, 2019.
（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, 2019.
（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.

37

（3）Overview of the Portfolio
Detail of Real Estate Portfolio Assets
The overview of assets under management of the Investment Corporation as of January 31, 2019 is as follows.
Book

Area

Use

No.

Name of property

Location

Form ofvalue

ownership(Millionyen)Appraisal value
at the end of
fiscal period(Million yen)
(Note 1)T-1 KDX Daikanyama Residence

7-1,Sarugakucho,Shibuya-ku,Tokyo

TBI

4,797

5,830

T-3 KDX Odemma Residence

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

TBI

1,717

2,100

T-4 KDX Iwamoto-cho Residence 16-12,Iwamotocho 2-chome,Chiyoda-ku,Tokyo

TBI

792

977

KDX Bunkyo Sengoku
Residence

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

TBI

1,456

1,780

T-6 KDX Azumabashi Residence

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

TBI

614

896

KDX Shimura Sakaue
T-7
Residence

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

TBI

2,682

3,420

TBI

636

728

T-5

KDX Musashi Nakahara
Residence

18-22, Shimokodanaka 4-chome, Nakahara-ku,

T-11 KDX Chiba Chuo Residence

2-17, Shindencho, Chuo-ku, Chiba-shi, China

TBI

1,333

1,790

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

TBI

1,115

1,410

T-13 KDX Residence Shirokane I

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

TBI

3,084

3,490

T-15 KDX Residence Shirokane II

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

TBI

2,860

3,400

KDX Residence MinamiT-16
aoyama4-8, Minami-Aoyama 3-chome, Minato-ku, Tokyo

TBI

2,240

2,530

T-17 KDX Residence Minami-azabu 3-22, Minami-Azabu 2-chome, Minato-ku, Tokyo

TBI

2,077

2,580

T-18 KDX Residence Shiba Koen

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

TBI

1,766

2,360

T-19 KDX Residence Azabu East

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

TBI

1,550

1,910

T-20 KDX Residence Takanawa

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

TBI

764

1,050

T-21 KDX Residence Nishihara

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

TBI

1,452

1,870

T-22 KDX Residence Daikanyama II 11-22, Ebisu Nishi 2-chome, Shibuya-ku, Tokyo

TBI

760

952

T-23 KDX Residence Sendagaya

38-7, Sendagaya 3-chome, Shibuya-ku, Tokyo

TBI

640

815

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,171

3,900

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1,160

1,370

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

TBI

3,247

4,090

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,301

2,740

T-28 KDX Residence Nishi-shinjuku 18-15, Nishi-Shinjuku 7-chome, Shinjuku-ku, Tokyo

TBI

998

1,330

T-29 KDX Residence Kagurazaka

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

714

924

KDX Residence Futako
T-30
Tamagawa

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

TBI

1,278

1,440

T-31 KDX Residence Komazawa Koen 21-6 Komazawa 5-chome, Setagaya-ku, Tokyo

TBI

906

1,120

T-32 KDX Residence Mishuku

TBI

754

926

T-10

T-12

KDX Kawaguchi Saiwai-cho
Residence

Kawasaki-shi, Kanagawa

Tokyo Metropolitan Area

Residential Facilities

圏

KDX Residence Nihombashi
T-24
Suitengu
KDX Residence Nihombashi
T-25
Hakozaki
KDX Residence HigashiT-26
shinjuku
T-27 KDX Residence Yotsuya

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

38

Book

Area

Use

No.

Name of property

Location

Form ofvalue

ownership(Millionyen)Appraisal value
at the end of
fiscal period(Million yen)
(Note 1)

T-33 KDX Residence Yoga

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

TBI

697

845

T-34 KDX Residence Shimouma

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

TBI

600

765

T-35 Raffine Minami-magome

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

TBI

1,244

1,480

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

TBI

1,028

1,340

T-37 KDX Residence Denenchofu

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

TBI

1,065

1,230

T-38 KDX Residence Tamagawa

9-17, Tamagawa 1-chome, Ota-ku, Tokyo

TBI

744

921

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

TBI

767

995

T-40 KDX Residence Okachimachi 28-4, Taito 2-chome, Taito-ku, Tokyo

TBI

840

1,040

T-41 KDX Residence Moto-asakusa 8-10, Motoasakusa 4-chome, Taito-ku, Tokyo

TBI

791

987

13-16, Yamatocho, Itabashi-ku, Tokyo

TBI

603

760

7-13, Azusawa 1-chome, Itabashi-ku, Tokyo

TBI

554

652

T-44 KDX Residence Tobu Nerima 27-9, Kitamachi 1-chome, Nerima-ku, Tokyo

TBI

400

508

TBI

780

981

TBI

1,003

1,130

TBI

1,722

2,030

24-13, Midori 4-chome, Sumida-ku, Tokyo

TBI

1,343

1,670

33-4, Nishimbashi-Hamacho 3-chome, Chuo-ku, Tokyo

TBI

1,003

1,220

TBI

562

666

TBI

1,323

1,580

T-36

T-39

T-42

KDX Residence Yukigaya
OtsukaKDX Residence
Monzennakacho

KDX Residence Itabashi
HonchoT-43 KDX Residence Azusawa

T-45

KDX Residence Yokohama
KannaiT-46 KDX Residence Miyamaedaira

5-9, Bandaicho 3-chome, Naka-ku, Yokohama-shi,
Kanagawa
14-3, Miyamaedaira 3-chome, Miyamae-ku, Kawasakishi, Kanagawa

T-47 KDX Residence Machida13-32, Kamitsurumahoncho, Minami-ku, Sagamiharashi, Kanagawa

T-48 KDX Residence Kinshicho
T-49

KDX Residence Nihombashi
HamachoT-50

KDX Residence Nihombashi
Ningyocho

T-51 KDX Residence Jiyugaoka

8-5, Nihombashi-Horidomecho 1-chome, Chuo-ku,
Tokyo
11-27, Yakumo 3-chome, Meguro-ku, Tokyo

39

Area

Use

No.

Name of property

T-52 KDX Residence Togoshi
T-53

Location

1-1, Togoshi 5-chome, Shinagawa-ku, TokyoKDX Residence Shinagawa 6-7, Higashi-Shinagawa 3-chome, Shinagawa-ku,
SeasideTokyo

Book
Form ofvalue
ownership (Million
yen)Appraisal value
at the end of
fiscal period(Million yen)
(Note 1)

TBI

3,759

4,730

TBI

2,586

3,260

T-54 KDX Residence Ojima

8-4, Ojima 4-chome, Koto-ku, Tokyo

TBI

1,842

2,260

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,652

3,240

T-56 KDX Residence Hanzomon

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

TBI

4,960

5,560

T-57 B-Site Akihabara

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

TBI

865

985

TBI

1,384

1,880

T-58

KDX Residence Kagurazaka120-1, Yaraicho, Shinjuku-ku, Tokyo
Dori

Tokyo Metropolitan Area

Residential Facilities

T-59 KDX Residence Sendagi

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

TBI

2,361

2,450

T-60 KDX Residence Seijo

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

TBI

1,425

1,560

T-61 KDX Residence Akihabara

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

TBI

1,255

1,500

T-62 KDX Residence Iriya

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

TBI

1,068

1,370

T-63 KDX Residence Tachikawa

28-29, Akebonocho 2-chome, Tachikawa-shi,
Tokyo

TBI

3,015

3,560

T-64 KDX Residence Tsurumi

10, Mukaicho 1-chome, Tsurumi-ku, Yokohamashi, Kanagawa

TBI

1,141

1,460

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

TBI

1,111

1,250

T-66 KDX Residence Akasaka

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

TBI

1,195

1,650

T-67 KDX Residence Kanda

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

TBI

725

1,090

T-68 KDX Residence Ebisu

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

TBI

2,950

4,090

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

TBI

1,174

1,230

T-70 KDX Residence Nishi-azabu 5-10, Nishi-Azabu 3-chome, Minato-ku, Tokyo

TBI

1,243

1,600

T-65

T-69

KDX Residence Morishita
ChitoseKDX Residence Nishimagome

T-71

KDX Residence Azabu
Sendaizaka

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

TBI

808

1,040

T-72

KDX Residence Waseda
Tsurumaki

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

TBI

569

813

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

TBI

704

939

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

TBI

659

801

T-75 KDX Residence Shin-otsuka

44-16, Higashi-Ikebukuro 5-chome, Toshima-ku,
Tokyo

TBI

778

968

T-76 KDX Residence Sakurajosui26-14, Shimotakaido 1-chome, Suginami-ku,
Tokyo

TBI

910

1,130

T-77 KDX Residence Ryogoku

19-13, Kamesawa 2-chome, Sumida-ku, Tokyo

TBI

859

1,100

T-78 KDX Residence Toyosu

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

TBI

7,761

7,640

T-79 KDX Residence Asagaya

1-47-24, Asagayaminami, Suginami-ku, Tokyo

TBI

1,968

2,120

KDX Residence Bunkyo
Yushima
KDX Residence
T-74
Kamishakujii
T-73

40

Area

Use

No.

Name of property

Location

Yokohama-shi,

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

TBI

2,708

2,720

T-80 KDX Residence Hiyoshi

7-17-35, Hiyoshi,
Kanagawa

R-2 KDX Jozenjidori Residence

3-25, Kasugamachi, Aoba-ku, Sendai-shi, Miyagi

TBI

946

1,290

R-3 KDX Izumi Residence

24-28, Izumi 2-chome, Higashi-ku, Nagoya-shi, Aichi

TBI

1,060

1,350

R-4 KDX Chihaya Residence

49-6, Shinsakae 1-chome, Naka-ku, Nagoya-shi, Aichi

TBI

1,006

1,380

7-15, Kawaracho 1-chome, Chuo-ku, Osaka-shi, Osaka

TBI

2,729

3,330

2-43, Sakaemachi 3-chome, Takarazuka-shi, Hyogo

TBI

1,369

1,870

TBI

1,572

2,000

TBI

730

952

TBI

794

1,040

TBI

472

547

TBI

507

693

TBI

460

602

TBI

2,265

2,520

TBI

870

1,010

TBI

804

1,010

TBI

785

917

R-5

Kohoku-ku,

Book
Form ofvalue
ownership (Million
yen)

KDX Sakaisuji Hommachi
Residence

R-7 KDX Takarazuka Residence
R-8 KDX Shimizu Residence

21-27, Shimizu 1-chome, Minami-ku, Fukuoka-shi,
Fukuoka

R-9 KDX Residence Odori Koen

1000-4, Minami 2-jo 40-chome, Chuo-ku, Sapporo-shi,
Hokkaido

R-10 KDX Residence Kikusui Yojo

2-35, Kikusui 4-jo 3-chome, Shiroishi-ku, Sapporo-shi,
Hokkaido

R-11 KDX Residence Toyohira Koen

Other Regional Area

Other Regional Area

R-13 KDX Residence Ichiban-cho

4-16, Hiragishi 4-jo 3-chome, Toyohira-ku, Sapporoshi, Hokkaido
15-42, Ichibancho 1-chome, Aoba-ku, Sendai-shi,
Miyagi

R-15 KDX Residence Izumi Chuo

45-2, Ichinazaka-Ishidome, Izumi-ku, Sendai-shi,
Miyagi

R-16
R-17

KDX Residence Higashi-sakura13-22, Higashi-sakura 2-chome, Higashi-ku, NagoyaIshi, Aichi

KDX Residence Higashi-sakura5-10, Higasi-sakura 1-chome, Higashi-ku, Nagoya-shi,II

R-18 KDX Residence Jingumae
R-19 KDX Residence Nishi-oji

Aichi
4-27, Yokota 2-chome, Atsuta-ku, Nagoya-shi, Aichi
40-3, Nishi 7-jo Kakekoshicho, Shimogyo-ku, Kyotoshi, Kyoto

R-20 KDX Residence Saiin

30-2, Saiintakadacho, Ukyo-ku, Kyoto-shi, Kyoto

TBI

423

512

R-21 KDX Residence Namba

6-16, Inari 1-chome, Naniwa-ku, Osaka-shi, Osaka

TBI

1,368

1,620

11-9, Shiokusa 3-chome, Naniwa-ku, Osaka-shi, Osaka

TBI

1,292

1,550

TBI

482

578

TBI

1,296

1,440

R-22

KDX Residence Nambaminami

R-23 KDX Residence Shin-osaka

16-11, Kikawa Higashi 4-chome, Yodogawa-ku,
Osaka-shi, Osaka

R-24

KDX Residence Ibaraki I・II
(Note 2)

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

41

Book

Area

Use

No.

Name of property

Address

Form ofvalue

ownership(Million
yen)

R-25

KDX Residence Toyonakaminami

R-26 KDX Residence Moriguchi
R-27 KDX Residence Sannomiya

R-29
R-30

R-32 KDX Residence Nishi Koen
R-33

(Note 1)690

869

12-12, Dainichihigasihmachi, Moriguchi-shi, Osaka

TBI

522

662

TBI

1,084

1,310

TBI

1,462

1,760

TBI

558

678

TBI

652

887

TBI

734

875

TBI

743

903

8-10, Ninomiyacho 4-chome, Chuo-ku, Kobe-shi,
20-10, Oharacho, Ashiya-shi, Hyogo
Hiroshima

KDX Residence Tenjin-higashi 6-22, Chikukohonmachi, Hakata-ku, Fukuoka-shi,IIfiscal period(Million yen)

TBI

KDX Residence Funairi Saiwai- 10-5, Funairisaiwaicho, Naka-ku, Hiroshima-shi,cho

at the end of

7-22, Shonaihigashicho 2-chome, Toyonaka-shi, Osaka

Hyogo
R-28 Ashiya Royal Homes

Appraisal value

Fukuoka
5-7, Minato 3-chome, Chuo-ku, Fukuoka-shi, Fukuoka

KDX Residence Hirao Josui-

10-17, Hiraojyosuimachi, Chuo-ku, Fukuoka-shi,

machi

Fukuoka

Other Regional Area

Residential Facilities

R-34 Melody Heim Gotenyama

6-1, Nagisa Nishimachi 1-chome, Hirakata-shi, Osaka

TBI

425

518

R-35 Leopalace Flat Shin-sakae

5-31, Shinsakae 1-chome, Naka-ku, Nagoya-shi, Aichi

TBI

3,530

4,390

TBI

972

1,120

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

TBI

3,175

3,550

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

TBI

1,989

2,370

TBI

4,589

5,220

TBI

931

1,660

TBI

1,288

1,540

TBI

647

742

TBI

1,747

1,670

TBI

2,506

2,580

7,215

7,300

175,109

209,339
1,120

R-36 KDX Residence Konan Yamate

9-3, Moriminamimachi 1-chome, Higashinada-ku,
Kobe-shi, Hyogo

R-37
R-38
R-39

KDX Residence
Hommachibashi
KDX Residence Minamikusatsu

KDX Residence Ohori Harbor 2-18, Minato 1-chome, Chuo-ku, Fukuoka-shi,
View Tower
Fukuoka

R-40 KDX Residence Minami-sanjo

3-2, Minami 3-jo Nishi 8-chome, Chuo-ku, Sapporoshi, Hokkaido

R-41 Serenite Kita-kyuhoji

3-15, Kitakyuhojicho 1-chome, Chuo-ku, Osaka-shi,
Osaka

R-42

Serenite Nishinomiya
HommachiR-43 KDX Residence Nishijin

5-26, Hommachi, Nishinomiya-shi, Hyogo
24-30, Nishijin 2-chome, Sawara-ku, Fukuoka-shi,
Fukuoka

R-44 Serenite Kobe Motomachi
R-45

KDX Residence Shukugawa
Hills

1-22, Kaigandori 3-chome, Chuo-ku, Kobe-shi, Hyogo
7-1, Hinoikecho, Nishinomiya-shi, Hyogo

TBI

Subtotal
H-1 Irise Kamata/Yuseien

Tokyo Metropolitan Area

Healthcare Facilities

H-2

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

TBI

1,103

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

TBI

1,775

1,780

924-2 Yokokawamachi, Hachioji-shi, Tokyo

TBI

3,690

3,740

TBI

1,103

1,120

TBI

2,886

2,940

TBI

3,250

3,130

Nichii Home NakanoMinamidai

H-3 Joy Stage Hachioji

2-22-4 Hijirigaoka, Tama-shi, Tokyo (Building A)
H-4 Yuimaru Hijirigaoka(Note 2)

2-20-6 Hijirigaoka, Tama-shi, Tokyo (Building B)
2-21-2 Hijirigaoka, Tama-shi, Tokyo (Building C)

H-5 Nichii Home Tama Plaza

Nichii Home Tama Plaza

H-21 Plaisant Grand Ota tamagawa 2-19-4 Tamagawa,Ota-ku, Tokyo

42

H-6

Ten

6-3-1 Tsukisamuchuodori, Toyohira-ku, Sapporo-shi,
Hokkaido

H-7

Irise Nishioka

13-7-10 Nishioka Sanjo, Toyohira-ku, Sapporo-shi,
Hokkaido

TBI

2,603

2,640

TBI

843

855

Other Regional Area

H-8 Izarie Eniwa Building

2-1 Aioimachi, Eniwa-shi, Hokkaido

TBI

1,626

1,680

H-9 Sawayaka Sakura Nibankan

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

TBI

966

990

TBI

6,471

6,560

TBI

2,089

2,110

6-16-16 Ogoto, Otsu-shi, Shiga
H-10 Activa Biwa(Note 2)

6-11-8 Ogoto, Otsu-shi, Shiga
6-17-17 Ogoto, Otsu-shi, Shiga

H-11

Sompo Care LAVIERE Kobe 285 Sarukura, Myodanicho, Tarumi-ku, Kobe-shi,
Tarumi

Hyogo

OthersH-12 Granda Mondo Yakujin

10-10 Hayashidacho, Nishinomiya-shi, Hyogo

TBI

1,172

1,190

H-13 Excellent Nishinomiya

2-4-3 Sumiredai, Nishinomiya-shi, Hyogo

TBI

953

973

H-15 Excellent Kitano

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

TBI

765

785

H-16 Anesis Teradacho

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

TBI

3,589

3,630

H-17 Rococo-riha

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

TBI

2,112

2,180

H-18 Orage Suma

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

TBI

2,851

2,820

H-19 Canadian Hill

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

TBI

1,812

1,870

H-20 Anesis Hyogo

1-8-21, Yoshida-cho, Hyogo-ku, Kobe-shi, Hyogo

TBI

1,432

1,430

TBI

1,346

1,380

44,44844,923

H-14 Gran Hills Ogawarako

57-2 Tachino Oura-aza, Tohokumachi-Oaza, Kamikitagun, Aomori

Subtotal

43

Book

Area

Use

No.

Name of property

Address

Form ofvalue

ownership(Million
yen)

Tokyo
Cosmo Heim
Other Metropolitan T-9
Motosumiyoshi
Area

5-1, Kizukigioncho, Nakahara-ku, Kawasaki-shi,
Kanagawa
Total

RP

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

1,798

1,800

221,356

256,062(Note1) “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) R-24 consists of two buildings and H-4、H-10 consists of three buildings, book value and appraisal value are total amount of eachvalue of the properties.

44

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as
follows.
13th(From February 1, 2018 to July 31, 2018)

14th(From August 1, 2018 to January 31, 2019)

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)yen)
(Note 1)yen)
(Note 2)(%)
(Note 2)(%)
(Note 3)(Note 3)

Tokyo Metropolitan Area

Residential

No.

Name of property

T-1

KDX Daikanyama Residence

1

100.0

160

2.4

1

100.0

160

2.1

T-3

KDX Odemma Residence

1

96.1

58

0.9

1

100.0

58

0.8

T-4

KDX Iwamoto-cho Residence

1

100.0

28

0.4

1

100.0

28

0.4

T-5

KDX Bunkyo Sengoku Residence

1

97.6

51

0.8

1

100.0

49

0.7

T-6

KDX Azumabashi Residence

1

90.7

25

0.4

1

95.5

24

0.3

T-7

KDX Shimura Sakaue Residence

1

95.1

105

1.6

1

98.8

109

1.4

T-10 KDX Musashi Nakahara Residence

1

94.3

26

0.4

1

100.0

25

0.3

T-11 KDX Chiba Chuo Residence

1

93.4

61

0.9

1

97.7

60

0.8

T-12 KDX Kawaguchi Saiwai-cho Residence

1

96.6

47

0.7

1

95.3

47

0.6

T-13 KDX Residence Shirokane I

1

97.6

113

1.7

1

96.6

111

1.5

T-15 KDX Residence Shirokane II

1

98.9

92

1.4

1

100.0

92

1.2

T-16 KDX Residence Minami-aoyama

1

95.8

55

0.8

1

100.0

64

0.8

T-17 KDX Residence Minami-azabu

1

96.7

70

1.1

1

97.4

72

1.0

T-18 KDX Residence Shiba Koen

1

98.3

65

1.0

1

96.6

66

0.9

T-19 KDX Residence Azabu East

1

97.7

56

0.9

1

100.0

56

0.7

T-20 KDX Residence Takanawa

1

95.6

27

0.4

1

100.0

28

0.4

T-21 KDX Residence Nishihara

1

97.6

51

0.8

1

100.0

52

0.7

T-22 KDX Residence Daikanyama II

1

100.0

28

0.4

1

100.0

28

0.4

T-23 KDX Residence Sendagaya

1

100.0

22

0.3

1

100.0

24

0.3

T-24 KDX Residence Nihombashi Suitengu

1

100.0

97

1.5

1

100.0

97

1.3

T-25 KDX Residence Nihombashi Hakozaki

1

100.0

41

0.6

1

100.0

40

0.5

T-26 KDX Residence Higashi-shinjuku

1

95.0

111

1.7

1

97.9

110

1.4

T-27 KDX Residence Yotsuya

1

100.0

82

1.2

1

96.9

79

1.1

T-28 KDX Residence Nishi-shinjuku

1

91.5

35

0.5

1

95.1

34

0.5

T-29 KDX Residence Kagurazaka

1

100.0

25

0.4

1

100.0

25

0.3

T-30 KDX Residence Futako Tamagawa

1

100.0

43

0.7

1

94.7

42

0.6

T-31 KDX Residence Komazawa Koen

1

97.8

29

0.4

1

100.0

28

0.4

T-32 KDX Residence Mishuku

1

100.0

26

0.4

1

90.5

27

0.4

T-33 KDX Residence Yoga

1

100.0

25

0.4

1

97.5

23

0.3

T-34 KDX Residence Shimouma

1

100.0

20

0.3

1

100.0

21

0.3

T-35 Raffine Minami-magome

1

100.0

42

0.6

1

100.0

41

0.5

T-36 KDX Residence Yukigaya Otsuka

1

97.3

39

0.6

1

98.7

38

0.5

T-37 KDX Residence Denenchofu

1

91.7

37

0.6

1

97.2

37

0.5

T-38 KDX Residence Tamagawa

1

94.5

28

0.4

1

98.2

28

0.4

T-39 KDX Residence Monzennakacho

1

97.5

28

0.4

1

100.0

27

0.4

T-40 KDX Residence Okachimachi

1

100.0

30

0.5

1

98.1

30

0.4

T-41 KDX Residence Moto-asakusa

1

98.4

29

0.4

1

95.9

29

0.4

T-42 KDX Residence Itabashi Honcho

1

100.0

24

0.4

1

100.0

24

0.3

T-43 KDX Residence Azusawa

1

96.8

19

0.3

1

100.0

20

0.3

T-44 KDX Residence Tobu Nerima

1

100.0

17

0.3

1

100.0

17

0.2

T-45 KDX Residence Yokohama Kannai

1

94.2

35

0.5

1

98.8

34

0.5

45

13th
(From February 1, 2018 to July 31, 2018)

Use

Area

No.

Name of property

14th(From August 1, 2018 to January 31, 2019)

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)yen)
(Note 1)yen)
(Note 2)(%)
(Note 2)(%)
(Note 3)(Note 3)T-46 KDX Residence Miyamaedaira

1

94.7

36

0.5

1

100.0

36

0.5

T-47 KDX Residence Machida

1

100.0

63

1.0

1

100.0

65

0.9

T-48 KDX Residence Kinshicho

1

96.9

45

0.7

1

100.0

44

0.6

T-49 KDX Residence Nihombashi Hamacho

1

100.0

30

0.5

1

100.0

30

0.4

KDX Residence Nihombashi
T-50
Ningyocho

1

100.0

19

0.3

1

100.0

19

0.3

T-51 KDX Residence Jiyugaoka

1

92.8

39

0.6

1

93.6

38

0.5

46

13th
(From February 1, 2018 to July 31, 2018)

Area

Use

No.

Name of property

14th(From August 1, 2018 to January 31, 2019)

Rental andRental andOccupancy
Occupancy
Occupancy
Occupancy
Number ofother
Number ofotherrate at therate at therate at therate at thetenants at
operatingtenants at
operatingend ofend ofend ofend ofthe end ofrevenues
the end ofrevenues
periodperiodperiodperiodperiod(million
period(million
(%)
(%)
(%)
(%)
(Note 1)yen)
(Note 1)yen)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 3)

Tokyo Metropolitan Area
Residential
Other Regional Area

T-52 KDX Residence Togoshi

1

100.0

123

1.9

1

99.3

122

1.6

T-53 KDX Residence Shinagawa Seaside

1

99.1

86

1.3

1

97.1

85

1.1

T-54 KDX Residence Ojima

1

95.7

62

0.9

1

95.7

61

0.8

T-55 KDX Residence Oyama

1

98.1

93

1.4

1

92.0

91

1.2

T-56 KDX Residence Hanzomon

1

97.3

130

2.0

1

98.8

131

1.7

T-57 B-Site Akihabara

1

100.0

23

0.4

1

100.0

23

0.3

T-58 KDX Residence Kagurazaka Dori

1

95.8

52

0.8

1

100.0

51

0.7

T-59 KDX Residence Sendagi

1

100.0

65

1.0

1

97.8

65

0.9

T-60 KDX Residence Seijo

1

93.2

41

0.6

1

100.0

39

0.5

T-61 KDX Residence Akihabara

1

90.9

39

0.6

1

95.2

41

0.5

T-62 KDX Residence Iriya

1

100.0

38

0.6

1

100.0

39

0.5

T-63 KDX Residence Tachikawa

1

95.4

99

1.5

1

94.3

97

1.3

T-64 KDX Residence Tsurumi

1

98.4

53

0.8

1

98.4

52

0.7

T-65 KDX Residence Morishita Chitose

1

98.7

40

0.6

1

96.2

39

0.5

T-66 KDX Residence Akasaka

1

100.0

37

0.6

1

96.4

39

0.5

T-67 KDX Residence Kanda

1

100.0

28

0.4

1

96.9

27

0.4

T-68 KDX Residence Ebisu

1

100.0

98

1.5

1

99.0

94

1.2

T-69 KDX Residence Nishi-magome

1

100.0

31

0.5

1

89.1

30

0.4

T-70 KDX Residence Nishi-azabu

1

96.9

38

0.6

1

100.0

37

0.5

T-71 KDX Residence Azabu Sendaizaka

1

96.2

26

0.4

1

100.0

26

0.4

T-72 KDX Residence Waseda Tsurumaki

1

97.6

22

0.3

1

100.0

22

0.3

T-73 KDX Residence Bunkyo Yushima

1

97.8

24

0.4

1

100.0

24

0.3

T-74 KDX Residence Kamishakujii

1

97.9

23

0.4

1

97.8

23

0.3

T-75 KDX Residence Shin-otsuka

1

100.0

22

0.3

1

100.0

22

0.3

T-76 KDX Residce Sakurajosui

1

100.0

28

0.4

1

93.0

29

0.4

T-77 KDX Residence Ryogoku

1

100.0

29

0.4

1

100.0

29

0.4

T-78 KDX Residence Toyosu

1

100.0

159

2.4

1

100.0

180

2.4

T-79 KDX Residence Asagaya

－

－

－

－

1

100.0

49

0.6

T-80 KDX Residence Hiyoshi

－

－

－

－

1

93.6

73

1.0

R-2

KDX Jozenji Dori Residence

1

97.0

51

0.8

1

97.0

51

0.7

R-3

KDX Izumi Residence

1

92.1

43

0.7

1

90.0

41

0.5

R-4

KDX Chihaya Residence

1

95.1

47

0.7

1

96.2

48

0.6

R-5

KDX Sakaisuji Hommachi Residence

1

98.5

110

1.7

1

94.4

106

1.4

R-6

KDX Shimmachi Residence (Note4)

－

－

32

0.5

－

－

－

－

R-7

KDX Takarazuka Residence

1

96.4

58

0.9

1

100.0

59

0.8

R-8

KDX Shimizu Residence

1

96.7

74

1.1

1

96.2

72

1.0

R-9

KDX Residence Odori Koen

1

100.0

33

0.5

1

89.7

32

0.4

R-10 KDX Residence Kikusui Yojo

1

90.3

38

0.6

1

89.8

36

0.5

R-11 KDX Residence Toyohira Koen

1

95.2

22

0.3

1

94.0

22

0.3

R-13 KDX Residence Ichiban-cho

1

92.4

26

0.4

1

85.2

24

0.3

R-14 KDX Residence Kotodai (Note4)

1

88.9

19

0.3

－

－

19

0.3

R-15 KDX Residence Izumi Chuo

1

95.8

23

0.3

1

97.2

23

0.3

47

13th
(From February 1, 2018 to July 31, 2018)

Use

Area

No.

Name of property

14th(From August 1, 2018 to January 31, 2019)

Rental andRental andOccupancy
Occupancy
Occupancy
Occupancy
Number ofother
Number ofotherrate at therate at therate at therate at thetenants at
operatingtenants at
operatingend ofend ofend ofend ofthe end ofrevenues
the end ofrevenues
periodperiodperiodperiodperiod(million
period(million
(%)
(%)
(%)
(%)
(Note 1)yen)
(Note 1)yen)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 3)

R-16 KDX Residence Higashi-sakura I

1

90.4

97

1.5

1

87.7

90

1.2

R-17 KDX Residence Higashi-sakura II

1

89.5

38

0.6

1

92.5

36

0.5

R-18 KDX Residence Jingumae

1

96.9

39

0.6

1

92.3

38

0.5

R-19 KDX Residence Nishi-oji

1

100.0

33

0.5

1

99.1

33

0.4

R-20 KDX Residence Saiin

1

96.1

18

0.3

1

96.0

19

0.3

R-21 KDX Residence Namba

1

95.5

58

0.9

1

96.2

57

0.8

48

13th
(From February 1, 2018 to July 31, 2018)

Area

Use

No.

Name of property

14th(From August 1, 2018 to January 31, 2019)

Rental andRental andOccupancy
Occupancy
Occupancy
Occupancy
Number ofother
Number ofotherrate at therate at therate at therate at thetenants at
operatingtenants at
operatingend ofend ofend ofend ofthe end ofrevenues
the end ofrevenues
periodperiodperiodperiodperiod(million
period(million
(%)
(%)
(%)
(%)
(Note 1)yen)
(Note 1)yen)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 3)

Other Regional Area

Residential

Tokyo Metropolitan
Area
Other Regional Area

Healthcare

R-22 KDX Residence Namba-minami

1

97.3

54

0.8

1

97.4

54

0.7

R-23 KDX Residence Shin-osaka

1

100.0

21

0.3

1

97.7

21

0.3

R-24 KDX Residence Ibaraki I・II

1

100.0

55

0.8

1

98.4

57

0.8

R-25 KDX Residence Toyonaka-minami

1

95.8

29

0.4

1

100.0

29

0.4

R-26 KDX Residence Moriguchi

1

96.5

24

0.4

1

100.0

24

0.3

R-27 KDX Residence Sannomiya

1

98.3

39

0.6

1

98.9

38

0.5

R-28 Ashiya Royal Homes

1

100.0

65

1.0

1

86.9

64

0.8

R-29 KDX Residence Funairi Saiwai-cho

1

98.4

28

0.4

1

100.0

27

0.4

R-30 KDX Residence Tenjin-higashi II

1

95.2

30

0.5

1

100.0

29

0.4

R-32 KDX Residence Nishi Koen

1

94.9

30

0.5

1

94.9

30

0.4

R-33 KDX Residence Hirao Josui-machi

1

100.0

30

0.5

1

96.2

29

0.4

R-34 Melody Heim Gotenyama

1

94.5

21

0.3

1

100.0

22

0.3

R-35 Leopalace Flat Shin-sakae

1

100.0

121

1.8

1

100.0

121

1.6

R-36 KDX Residence Koman Yamate

1

97.4

31

0.5

1

98.4

32

0.4

R-37 KDX Residence Hommachibashi

1

98.9

107

1.6

1

96.4

107

1.4

R-38 KDX Residence Minami-kusatsu

1

100.0

101

1.5

1

99.0

100

1.3

KDX Residence Ohori Harbor View
R-39
Tower

1

90.5

177

2.7

1

91.6

175

2.3

R-40 KDX Residence Minami-sanjo

1

92.3

53

0.8

1

95.2

54

0.7

R-41 Serenite Kita-kyuhoji

1

98.7

42

0.6

1

94.2

42

0.6

R-42 Serenite Nishinomiya Hommachi

1

88.7

22

0.3

1

98.1

21

0.3

R-43 KDX Residence Nishijin

1

89.5

54

0.8

1

96.6

56

0.7

R-44 KDX Residence Hiyoshi

－

－

－

－

1

98.6

73

1.0

R-45 KDX Residence Shukugawa Hills

－

－

－

－

1

93.3

203

2.7

Subtotal

113

96.8

5,790

87.0

116

96.7

6,147

80.8

H-1

Irise Kamata/Yuseien

1

100.0

1

100.0

H-2

Nichii Home Nakano-Minamidai

1

100.0

1

100.0

H-3

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

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

100.0

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

Nondisclosure（Note 5）

Nondisclosure（Note 5）

H-10 Activa Biwa

1

100.0

1

100.0

H-11 Sompo Care LAVIERE Kobe Tarumi

1

100.0

1

100.0

H-12 Granda Mondo Yakujin

1

100.0

1

100.0

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

H-17 Rococo-riha

－

－

－

－

1

100.0

H-18 Orage Suma

－

－

－

－

1

100.0

Nondisclosure（Note 5）－

Nondisclosure（Note 5）

Nondisclosure（Note 5）－

Nondisclosure（Note 5）49

13th
(From February 1, 2018 to July 31, 2018)

Use

Area

No.

Name of property

14th(From August 1, 2018 to January 31, 2019)

Rental andRental andOccupancy
Occupancy
Occupancy
Occupancy
Number ofother
Number ofotherrate at therate at therate at therate at thetenants at
operatingtenants at
operatingend ofend ofend ofend ofthe end ofrevenues
the end ofrevenues
periodperiodperiodperiodperiod(million
period(million
(%)
(%)
(%)
(%)
(Note 1)yen)
(Note 1)yen)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 3)

OthersH-19 Canadian Hill

－

－

－

－

1

100.0

H-20

Anesis Hyogo

－

－

－

－

1

100.0

H-14 Gran Hills Ogawarako

1

100.0

Nondisclosure（Note 5）

Nondisclosure（Note 5）

1

100.0

15

100.0

820

12.3

21

100.0

Subtotal

1,415

18.6

50

13th
(From February 1, 2018 to July 31, 2018)

Use

Area

No.

Other

Tokyo
Metropolitan
Area

T-9

14th
(From August 1, 2018 to January 31, 2019)

Rental andRental andOccupancy
Occupancy
Occupancy
Occupancy
Number ofother
Number ofotherrate at therate at therate at therate at thetenants at
operatingtenants at
operatingend ofend ofend ofend ofthe end ofrevenues
the end ofrevenues
periodperiodperiodperiodperiod(million
period(million
(%)
(%)
(%)
(%)
(Note 1)yen)
(Note 1)yen)
(Note 2)
(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 3)Name of property

Cosmo Heim Motosumiyoshi(land with leasehold interest)

－

100.0

43

0.7

－

100.0

43

0.6

Total

128

97.6

6,655

100.0

137

97.7

7,605

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, 2019, master lease agreements had been executed for all
investment assets of the Investment Corporation except for one case of ownership of leased land and Raffine Minami-magome; the“total” for the “number of tenants” is the sum of the master lease agreements for the properties (running number); and for theproperties with no master lease agreement, the number of end tenants is entered. There are a total of 14 master lease companies.
"Total number of tenants" of the healthcare facility lists the total number of tenants of the master lease contract pertaining to each
asset effective as of the end of January 2019.
(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 (excluding land with leasehold interest). The occupancy rate for the portfolio as a whole, excluding land withleasehold interest (area total 3,040.11m2), was 97.6% in the 13th fiscal period and 97.7% in the 14th fiscal period.
(Note3) “Rental and other operating revenues” is the sum of a property’s rental business income for each fiscal period.
(Note4) (R6) KDX Shimmachi Residence sold on July 6, 2018 and (Ｒ-14) KDX Residence Kotodai sold on January 24, 2019.
(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, 2019 are as follows.

Name of assets

Type

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

Subordinatedsilentpartnership
equity interest

Assessed value(Million yen)
(Note 2)

Book value(Million yen)

Unit

Unit value

Value

－

－

111

－

－

111

Unit value

Value

－
－

Gain
(Loss) on
Remarks
valuation(Million yen)

111

－

－

111

－

－

(Note 1) TK property fund owns trust beneficiary interests in real estate for “Serabi Ebisu” and “Arute ishiyagawa”.
（Note 2） Assessed value indicates book value.

(4)

Details of specified transaction

The details of specified transaction at the end of 14th fiscal period are as follows.
Contact amount (Million yen)Classification

Transaction

Over-the-counter transactions

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

Over 1 year

Fair value(Million yen)
(Note 2) (Note 3)

90,80089,300△337

90,80089,300△337(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.

51

(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 14th 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.

52

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 for the
15 the fiscal period ending July 31, 2019. 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. These planned projects
may include some expenditure that will be recorded as expenses rather than capital expenditures for accounting
purposes.

No.

Name of property

H-3

Joy Stage Hachioji

R-9

KDX Residence Odori Koen

T-19

KDX Residence Azabu East

R-45

KDX Residence Shukugawa
Hills

T-21

KDX Residence Nishihara

Location

PurposeHachioji-shi,Tokyo
Sapporo-shi,,Hokkaido
Minato-ku,
Tokyo

Major renewal
construction
Major renewal
construction
Major renewal
construction
Nishinomiya- Major renewal
shi,
construction
Hyogo(2nd phase)
Shibuya-ku, Major renewal
Tokyo
construction

Scheduled

From February 2019
To July 2019
From February
To July 2019
From February 2019
To July 2019

Planned amount of capital
expenditure(Millions of yen)
Payment Total of
Total
for
advanced
the period payment
160

－

－

60

－

－

55

－

－

From February 2019
To July 2019

55

－

－

From February 2019
To July 2019

49

－

－

（2）Capital expenditures during the period
The table below shows major capital expenditures for renovations, repairs and other projects in the 14th fiscal
period ended January 2019. The construction cost for the period amounted to 933 million yen, consisting of ¥614
million of capital expenditures and 318 million yen of repair and maintenance expenses.
Location

PurposeName of property

R-45

KDX Residence Shukugawa
Hills

Nishinomiya
From September 2018
Major renewal-shi,
construction(1stphase)To January 2019
Hyogo

147

T-1

KDX Daikanyama Residence

Shibuya-ku, Major renewal
Tokyo
construction

From August 2018
To January 2019

92

T-27

KDX Residence Yotsuya

Shinjukuku,Tokyo

Major renewal
construction

From August 2018
To January 2019

50

R-27

KDX Residence Sannomiya

Kobe-shi,
Hyogo

Major renewal
construction

From September 2018
To January 2019

38

H-3

Joy Stage Hachioji

Hachiojishi,Tokyo

sanitation equipment
renewal construction

From December 2018
To January 2019

33

(3)

Term

Capital expenditures(Million yen)

No.

Other

251

Tota

614

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 a fiscal period, repair and maintenance reserves designed to finance payment of
future medium- to long-term major repair and maintenance work.
(Million yen)

Term
Reserve balance at the

13th
10th
11th
12th
14th
From Aug. 1, 2016 From Feb. 1, 2017 From Aug. 1, 2017 From Feb. 1, 2018 From Aug. 1, 2018
to Jan. 31, 2017
to Jul. 31, 2017
to Jan. 31, 2018
to Jan. 31, 2019
to Jul. 31, 2018
1,074
1,161
1,295
1,384
732

53

beginning of the period
Amount of reserve
during the period
Reversal of reserves
during the period
Amount carried forward
to the next period

149

151

263

302

101

62

17

174

954

2

1,161

1,295

1,384

732

831

54

5.

Expenditures and liabilities(1)
Details of asset management expenses(in thousands of yen)

Item
①
②
③
④
⑤

13th
From February 1, 2018
to July 31, 2018

14th
From August 1, 2018
to January 31, 2019

Asset management fees (Note 1)
Asset custody fees
Administrative service fees
Directors’ compensation
Other operating expenses (Note 2)

413,158

513,065

11,583

11,985

41,201

41,723

Total

7,500

8,100

629,922240,701

1,103,366

815,575(Note1) There are other asset management fees in addition to the amount set forth above: asset management fees pertaining to thesubordinated silent partnership (13th fiscal period: 1,100 thousand yen) and asset management fees pertaining to property
acquisitions (the 13th fiscal period: 7,370 thousand yen and the 14th fiscal period: 285,477 thousand yen ) and sold fee pertaining
to property sold (the 13th fiscal period: 7,100 thousand yen and the 14th fiscal period: 3,652 thousand yen ) that were calculated
into the book value of each property.
The fee for the merger (the 13th fiscal period: 292,085 thousand yen) is included in other operating expenses (merger-related
expenses).
(Note2) Other operating expenses include merger-related expenses incurred in connection with the Merger (the 13th period 395,984
thousand yen).

55

(2)

Status of Interest-bearing debt

Borrowings on a financial institution basis as of January 31, 2019 are as follows.
Classification

Drawdown
Date

LenderBalance at the Balance
Average
beginningat the end interest rateof periodof period (Note 1)(mln yen)(mln yen) (Note 2)

Payment
due date

Short-termloans payable

Sumitomo Mitsui Banking
Corporation（Note 6）

July 31, 2018

1,830

1,250

0.412

Mizuho Bank, Ltd

July 31, 2018

800

800

0.412

2,630

2,050

3,250

－

2,000

－

1,000

－

500

－

500

－

500

－

250

－

August 7, 2013

3,000

－

MUFG Bank, Ltd (Note 5)

November 28,
2014

1,500

1,500

Sumitomo Mitsui Banking
Corporation

August 22, 2017

1,000

1,000

MUFG Bank, Ltd

August 22, 2017

500

500

July30, 2018

500

500

0.362

July31, 2019

July30, 2018

500

500

0.362

July31, 2019

－

1,500

0.437

January 31,
2020

SubtolalSumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd
Aozora Bank, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co., Ltd.

Current portion of long-term borrowings

Mizuho Bank, Ltd.
Development Bank of Japan
Inc.(Note 3)

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

August 7, 2013

1.052

August 31,
2018

August 31,
2018
November 30,
0.689
2019
February28,
0.487
2019
February28,
0.487
2019
1.088

1,400

－

900

Shinsei Bank, Limited

－

500

－

400

－

300

－

300

Aozora Bank, Ltd.

－200

The Bank of Fukuoka, Ltd.

－200

15,0009,700

January 31, 2014

1,000

1,000

1.109

January 31,
2021

January 31, 2014

1,000

1,000

1.221

July31, 2021

March 28, 2014

1,350

1,350

1.183 March 31, 2021

April 30, 2014

2,000

2,000

1.267 April 30, 2022

April 30, 2014

1,500

1,500

1.267 April 30, 2022

MUFG Bank, Ltd

April 30, 2014

1,000

1,000

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

April 30, 2014

1,000

1,000

1,100

1,100

Subtotal
MUFG Bank, Ltd

Long-term borrowings

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

1,100

1,100

Mizuho Bank, Ltd.

600

600

Aozora Bank, Ltd.

350

350

August 7, 2014

Remarks

Repayment
Unsecured/of principal （Note 4） Unguarante
in full oned
July 31, 2019maturity date－August 2, 2018

Use

July 31, 2019

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

Debt
Financing
MethodRepayment
Unsecured/of principal （Note 4） Unguarante
in full onedmaturity date

Repayment
Unsecured/of principal （Note 4） Unguarante
1.267 April 30, 2022 in full oned1.267 April 30, 2022 maturity date

0.916 August 7, 2021

56

Classification

LenderDrawdown
Date

Balance at the Balance
Average
beginningat the end interest rateof periodof period (Note 1)(mln yen)(mln yen) (Note 2)

Resona Bank, Ltd.

300

Mizuho Trust & Banking Co., Ltd.
Development Bank of Japan Inc.
（Note 3）
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd

300

300

1,000

1,000

400

400

August 7, 2014

Debt
Financing
MethodUse

Remarks

300

400

400

Mizuho Bank, Ltd.

300

300

Resona Bank, Ltd.

200

200

August 7, 2014

Payment
due date

0.996 August 7, 2021

1.254 August 7, 2023

57

Classification

Balance atBalance

Drawdown

the beginningat the end

Dateof periodof period

Averageinterest rate
(Note 1)(mln yen)(mln yen)(Note 2)

200

200

150

150

August 7, 2014

500

500

1.320

Sumitomo Mitsui Banking Corporation

August 29, 2014

600

600

0.945

MUFG Bank, Ltd

August 29, 2014

600

600

0.945

Aozora Bank, Ltd.

August 29, 2014

500

500

0.945

950

950

1.083

2,000

2,000

0.804

LenderMizuho Trust & Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank of Japan Inc.（Note3）

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

August 7, 2014

November 14,
2014
November 28,
2014

1.254

Sumitomo Mitsui Banking Corporation

February 5, 2015

1,200

1,200

0.875

MUFG Bank, Ltd

February 5, 2015

1,200

1,200

1.105

Aozora Bank, Ltd.

April 30, 2015

2,000

2,000

0.875

Resona Bank, Ltd.

April 30, 2015

1,500

1,500

0.987

MUFG Bank, Ltd

April 30, 2015

2,000

2,000

1.100

Sumitomo Mitsui Banking Corporation

April 30, 2015

1.265

Long-term borrowings

1,000

1,000

Shinsei Bank, Limited

1,750

1,750

Sumitomo Mitsui Banking Corporation

1,750

1,750

MUFG Bank, Ltd

1,000

1,000

500

500

500

500

Mizuho Bank, Ltd.

July 29, 2015

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

July 29, 2015

Mizuho Bank, Ltd.
Sompo Japan Nipponkoa Insurance Inc

500

500

1,100

1,100

1,100

1,100

1,000

1,000

300

300

1,000

1,000

Aozora Bank, Ltd.

August 31,2015

300

300

Resona Bank, Ltd.

August 31, 2015

1,100

1,100

Mizuho Trust & Banking Co., Ltd.

August 31, 2015

700

700

Sumitomo Mitsui Trust Bank, Limited

August 31, 2015

950

950

MUFG Bank, Ltd

August 31, 2015

1,700

1,700

Mizuho Bank, Ltd.

August 31, 2015

950

950

Sumitomo Mitsui Banking Corporation

August 31, 2015

2,000

2,000

Development Bank of Japan Inc.（NoteAugust 31, 2015
3）

1,000

1,000

MUFG Bank, Ltd

October 27, 2015

300

300

MUFG Bank, Ltd

October 27, 2015

1,000

1,000

MUFG Bank, Ltd

April 28,2016

1,000

1,000

Sumitomo Mitsui Banking Corporation

April 28, 2016

2,500

2,500

MUFG Bank, Ltd（Note3）

August 1, 2016

1,000

1,000

Payment
due date

Debt
Financing

Use

Remarks

MethodAugust 7,
2023
August 7,
2023
August 31,
2021
August 31,
2021
August 31,
2021
November30, 2022
November30, 2020
January 31,
2022
January 31,
2024
April 30,
2022
April 30,
2023
April 30,
2024
April 30,2025

0.729 July 29, 2020
Repayment
Unsecured/of principal
in full on （Note 4） Unguaranteedmaturitydate

1.115 July 29, 2022

August31,2020
August 31,
0.923
2022
August 31,
0.923
2022
August 31,
1.047
2023
August 31,
1.169
2024
August 31,
1.169
2024
August 31,
1.345
2025
August 31,
1.193
2024
October 27,
0.624
2020
April 27,
1.156
2025
April 28,
0.819
2025
April 30,
0.903
2026
0.660 July 31, 2025
0.678

58

Classification

LenderBalance atBalance

Drawdown

the beginningat the end

Dateof periodof period

Averageinterest rate
(Note 1)(mln yen)(mln yen)(Note 2)

Mizuho Bank, Ltd.（Note 3）

August 30, 2016

1,500

1,500

0.816

Aozora Bank, Ltd.

August 31, 2016

1,000

1,000

0.713

Sumitomo Mitsui Trust Bank, Limited

August 31, 2016

1,000

1,000

0.797

Resona Bank, Ltd.

August 31, 2016

500

500

0.797

MUFG Bank, Ltd（Note 3）

August 31, 2016

2,000

2,000

0.670

Mizuho Trust & Banking Co., Ltd.（NoteAugust 31, 2016
3）

500

500

0.751

August 31, 2016

3,000

3,000

0.906

Development Bank of Japan Inc.（NoteNovember 1, 2016
3）

1,000

1,000

0.773

Resona Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

Sumitomo Mitsui Trust Bank, Limited

August 22, 2017

1,000

1,000

0.900

Shinsei Bank, Limited

August 22, 2017

1,000

1,000

0.900

Sumitomo Mitsui Banking Corporation

Payment
due date

Debt
Financing

Use

Remarks

MethodAugust 31,
2026
August 31,
2024
August 31,
2025
August 31,
2025
August 31,
2025
August 31,
2025
August 31,
2026
October31,
2025
August 22,
2027
August 22,
2027
August 22,
2027

59

Classification

Averageinterest
rate

Balance atBalance

Drawdown

the beginningat the end

Dateof periodof period(mln yen)(mln yen)(Note 1)
(Note 2)

August 22, 2017

1,200

1,200

0.928

August 22, 2017

1,000

1,000

0.928

August 22, 2017

500

500

0.928

August 22, 2017

500

500

0.928

August 31, 2017

1,500

1,500

0.501

MUFG Bank, Ltd

August 31, 2017

1,500

1,500

0.501

Aozora Bank, Ltd.

August 31, 2017

1,500

1,500

0.582

Sumitomo Mitsui Banking
Corporation

August 31, 2017

1,000

1,000

0.582

MUFG Bank, Ltd

August 31, 2017

1,000

1,000

0.582

Mizuho Bank, Ltd.

August 31, 2017

500

500

0.624

August 31, 2017

500

500

0.661

August 31, 2017

1,500

1,500

0.665

August 31, 2017

1,000

1,000

0.749

August 31, 2017

1,000

1,000

0.749

July 30, 2018

1,000

1,000

0.409

July 31, 2021

July 30, 2018

1,000

1,000

0.409

July 31, 2021

MUFG Bank, Ltd

July 30, 2018

500

500

0.409

Mizuho Bank, Ltd.
Nippon Life Insurance Company（Note 3）
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd

July 30, 2018

500

500

0.409

July 30, 2018

500

500

0.900

July 31, 2021 Repayment
Unsecured/
July 31, 2021 of principal
in full on （Note 4） Unguarante
January 30,
edmaturity
2027

－

1,500

LenderMizuho Trust & Banking Co., Ltd.
（Note 3）Development Bank of Japan Inc.
（Note 3）
Mizuho Bank, Ltd.（Note 3）
The Bank of Fukuoka, Ltd.（Note3）
Sumitomo Mitsui Banking
Corporation

Mizuho Trust & Banking Co., Ltd.
（Note 3）
Sumitomo Mitsui Banking
Corporation
Resona Bank, Ltd.

Long-term borrowings

Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Shinsei Bank, Limited

－

1,400

－

900

Development Bank of Japan Inc.

－

500

Nippon Life Insurance Company

－

500

－

400

Shinsei Bank, Limited
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co., Ltd.

－

400

－

400

－

400

Aozora Bank, Ltd.

－300

The Bank of Fukuoka, Ltd.
Sumitomo Mitsui Banking
Corporation－

300

August 31, 2018

－

1,000

0.509

August 31, 2018

－

400

0.509

August 31, 2018

－

1,600

0.498

August 31, 2018

－

1,200

0.592

Aozora Bank, Ltd.

August 31, 2018

－

1,000

0.592

MUFG Bank, Ltd

August 31, 2018

－

800

0.592

August 31, 2018

－

1,050

0.914

August 31, 2018

－

500

0.914

MUFG Bank, Ltd
Development Bank of Japan Inc.
（Note 3）
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Banking
Corporation
Resona Bank, Ltd.

August 2, 2018

due date

Debt
Financing

Use

Remarks

MethodAugust 22,
2027
August 22,
2027
August 22,
2027
August 22,
2027
February 28,
2023
February 28,
2023
February 29,
2024
February 29,
2024
February 29,2024
August 31,
2024
August 31,
2024
February 28,
2025
February 28,
2026
February 28,
2026

date

Mizuho Bank, Ltd.

Resona Bank, Ltd.

Payment

0.799

February 2,
2026

August 31,
2022
August 31,
2022
August 31,
2022
August 31,
2023
August 31,
2023
August 31,
2023
February 28,
2027
February 28,60

Classification

LenderBalance atBalance

Drawdown

the beginningat the end

Dateof periodof period(mln yen)(mln yen)

Averageinterest
rate(Note 1)
(Note 2)

Payment
due date

Debt
Financing

Use

Remarks

Method2027
Sumitomo
LimitedMitsui

Trust

Bank,

August 31, 2018

－

500

0.914

Mizuho Trust & Banking Co., Ltd.

August 31, 2018

－

500

0.914

Mizuho Bank, Ltd.

August 31, 2018

－

250

0.914

Development Bank of Japan Inc.
（Note 3）

August 31, 2018

－

1,400

0.884

MUFG Bank, Ltd （Note 3）

August 31, 2018

－

800

0.825

Nippon Life Insurance Company（Note 3）September 28,
2018
September 28,
2018
September 28,
2018
September 28,
2018

－

700

0.920

－

1,000

1.031

－

800

1.031
1.031

Shinsei Bank, Limited
Sumitomo Mitsui Trust Bank,
Limited－500

Subtotal

85,500106,500

Total

103,130

118,250

Mizuho Trust & Banking Co., Ltd.

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

61

（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 are indicated.
（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 included in the classification of current portion of long-term loans payable from the 14th fiscal period and in of
long-term loans payable in the 13th fiscal period.
（Note 6）Partial prepayment of ¥580 million was made on November 30, 2018.

（3）Investment corporation bonds
Outstanding Investment corporation bonds as of January 31, 2019 are as follows.2019
SeriesDate of issue

Balance at Balance attheend ofbeginning of theperiodperiod(mln
yen)(mln yen)First Series
Unsecured Investment August 30,2016
Corporation Bonds
Second Series
Unsecured
August 30,2016
Investment
Corporation Bonds
Third Series
Unsecured Investment August 30,2016
Corporation Bonds
Fourth Series
November 30,
Unsecured Investment
2018
Corporation Bonds
Fifth Series
Unsecured
November 30,
2018
Investment
Corporation Bonds
Total

Interest rate Repayment date Repayment（%）
method

1,000

1,000

0.200 August 30, 2021

1,000

1,000

0.540 August 28, 2026

Use

Remarks

1,000

1,000

－

1,000

Repaymentofprincipal
0.800 August 30, 2028 in full on （Note 1） （Note 2）
maturity
date
November 30,
0.410
2023

－

1,000

0.850

3,000

5,000

November 30,
2028（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）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．Buying and Selling during the Period（1）Acquisitions and sales of real estate properties and asset-backed securities, etc., infrastructure
assets and infrastructure-related assets
Type

No.

Name

Acquisition
Acquisition
price
Acquisition date (Million
yen)

Sales date

(Note 1)
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

Sale
value
Sales price Book
millions) Gain and loss
(Million yen) (in(Million yen) (Million yen)
（Note 1） （Note 2） （Note 2）

T-79

KDX Residence Asagaya

August 2, 2018

1,930

－

－

－

－

T-80

KDX Residence Hiyoshi

August 2, 2018

2,635

－

－

－

－

R-14

KDX Residence Kotodai－－

January 24,
2019

730

500

203

62

TrustBeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

R-44

Serenite Kobe Motomachi

August 2, 2018

2,390

－

－

－

－

R-45

KDX Residence
Shukugawa Hills

August 2, 2018

6,884

－

－

－

－

H-16

Anesis Teradacho

August 2, 2018

3,490

－

－

－

－

H-17

Rococo-riha

August 2, 2018

2,100

－

－

－

－

H-18

Orage Suma

August 2, 2018

2,810

－

－

－

－

H-19

Canadian Hill

August 2, 2018

1,830

－

－

－

－

H-20

Anesis Hyogo

August 2, 2018

1,420

－

－

－

－

H-21

Plaisant Grand Ota
tamagawa

September 28,
2018

3,057

－

－

－

－

（Note 1）The acquisition price and Sale price are the amount identified in the purchase and sale agreement of each trust beneficiary interest(excluding expenses required for the acquisition and taxes, 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.

（2）Acquisitions and Sale of other assets
Other than the foregoing real estate properties, asset-backed securities, infrastructure assets and otherinfrastructure-related assets, major assets in general are bank deposits or bank deposits within trust assets.

63

（3）Appraisals of Specified Assets① Real estate, etc.

Transaction

Type

Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Sale
BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest
Trust
Acquisition BeneficiaryInterest

Acquisition
Appraisal
price or Sale
value
price
(Million yen)
(Million yen)
(Note 2)
(Note 1)No.

Property nameDate of acquisitionor saleT-79

KDX Residence Asagaya

August 2, 2018

1,930

2,100

T-80

KDX Residence Hiyoshi

August 2, 2018

2,635

2,710

R-14

KDX Residence Kotodai

January 24, 2019

730

567

R-44

Serenite Kobe Motomachi

August 2, 2018

2,390

2,550

R-45

KDX Residence
Shukugawa Hills

August 2, 2018

6,884

7,300

H-16

Anesis Teradacho

August 2, 2018

3,490

3,630

H-17

Rococo-riha

August 2, 2018

2,100

2,180

H-18

Orage Suma

August 2, 2018

2,810

2,820

H-19

Canadian Hill

August 2, 2018

1,830

1,870

H-20

Anesis Hyogo

August 2, 2018

1,420

1,430

H-21

Plaisant Grand Ota
tamagawa

September 28,
2018

3,057

3,130

Appraiser

As ofAppraisal
dateJapan Real
Estate InstituteJune 1,
2018

Japan Real
Estate InstituteDaiwa Real
Estate Appraisal
Co.,ltd
The Tanizawa
Sogo Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co.,ltd
Daiwa Real
Estate Appraisal
Co.,ltd
Daiwa Real
Estate Appraisal
Co.,ltd
The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
Japan Real
Estate InstituteJune 1,
2018
July 31,2018
June 1,
2018
June 1,
2018
June 1,
2018
June 1,
2018
June 1,
2018
June 1,
2018
June 1,2018
September
1,
2018（Note 1） “Acquisition price” and “Sale price” represent the purchase and Sales amount (excluding acquisition costs andconsumption taxes) of each property or beneficiary right of real estate in trust as stated in the Sales and Purchase
Agreement.
（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.”② 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, Crowe Toyo & Co. performs
an investigation of transactions. For the fiscal period from August 1, 2018 to January 31, 2019, the transactions
subject to such investigation were thirteen interest rate swap transactions, for which the Investment Corporation
received reports from Crowe Toyo & Co. For this purpose, investigation was performed with respect to detailsof the interest swap contracts, such as the name of counter parties, contract amounts, or the period oftransactions.
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-Party① Transactions
Category
Total amountTransaction with related-party
GK KSLF8
Total

Transaction price (million yen)
Acquisition price（Note 2）
28,547 million yen
11,650 million yen
11,650 million yen（40.8％）（40.8％）

Sale price（Note 2）
730 million yen
－
－

（－％）
（－％）

64

② Amounts of Fees Paid
Category

Related-Party Transactions

Total paid fees（A）

Property management compensation

226 million yen

Rent paid

20 million yen

Paid toPaid amount (B)Space Design, Inc.
CRE, Inc.
GK.KRF17

0 million yen
0 million yen
1 million yen

Ratio to total（B）/（A）
0.0％
0.0％
8.0％

(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）‟Acquisition price” and “Sale price” excluded expenses related to aqcuisition or sale and taxes and dues.
(Note 3） The amount of payments including expenses for repair work of which orders were placed to related-party, etc. during the 14th
fiscal period other than the above paid fees is as follows.
Kenedix Engineering, Inc.
Construction costs recorded as capital expenditure: 11 million yen
Repair costs: 4 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.

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.

① Acquisitions
Not applicable② Ownership
Not applicable(5)Disclosure pertaining to overseas real estate holding corporations
Not applicable(6)

Disclosure pertaining to real estate held by overseas real estate holding corporations
Not applicable65

8. Other① Unitholders general meeting
Not applicable② Board of directors
Not applicable（2）OtherUnless otherwise specified, amounts are rounded down and ratios are rounded off.

[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.

66

Financial Statements(14th Fiscal Period: From August 1, 2018 to January 31, 2019)

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

67

68

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of January 31, 201914th Fiscal Period
as of January 31, 201913th Fiscal Period
as of July 31, 2018

(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 7 and 9)
Cash and deposits in trust (Notes 7 and 9)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 14 and 19)
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 14 and 19)
Other
Total intangible assets
Investments and other assets
Investment securities (Notes 9 and 18)
Lease and guarantee deposits
Long-term prepaid expenses
Other (Notes 9 and 10)
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets¥12,356,302
9,721,629
26,612
7,450
338,402
6,081
22,456,477¥10,029,598
8,749,823
29,18810,855
11,033
18,830,499

1,798,041
95,077,289(9,123,715)
85,953,573
947,729(161,739)
785,989
1,429,327(288,590)
1,140,736
473,614(51,478)
422,136
130,189,152
220,289,630

1,798,041
84,656,776(7,901,681)
76,755,095
722,432(133,503)
588,929
1,360,078(256,856)
1,103,222
400,899(39,156)
361,742
111,474,267

1,067,058
6,339
1,073,398

1,067,058
7,115
1,074,174

111,796
29,097
1,059,774
1,200,668
222,563,697

512,263
39,097916,981
81,98938,57045,012

192,081,298

1,550,331
194,705,805
22,583-

83,583

22,583¥245,103,757¥213,558,887

69

14th Fiscal Period
as of January 31, 201913th Fiscal Period
as of July 31, 2018

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥912,385¥609,170

Short-term loans payable (Notes 9 and 21)

2,050,000

2,630,000

Current portion of long-term loans payable (Notes 9, 10 and 21)
Accounts payable-otherAccrued expenses
Income taxes payable

9,700,000
298,718
27,236605

13,500,000
284,251
26,489605

11,41363,856

1,096,282
75,292

958,81254,159Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Noncurrent liabilities-

13

14,171,933

18,127,358

Investment corporation bonds (Notes 9 and 20)

5,000,000

3,000,000

Long-term loans payable (Notes 9, 10 and 21)
Tenant leasehold and security deposits in trust

106,500,000
2,682,738

87,000,000
2,330,206

4,405,195

4,205,076

Tenant lump sum deposits in trust
Other

392,732

150,601

118,980,667

96,685,885

133,152,600

114,813,244

93,226,228

80,132,379

13,187,100

13,187,100

Reserve for temporary difference adjustments (Note 4)

2,000,000-

Total voluntary retained earnings

2,000,000-

Total noncurrent liabilities
Total liabilities
NET ASSETS
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Voluntary retained earnings

Unappropriated retained earnings
Total surplus
Total unitholders' equity

3,875,050

5,428,676

19,062,150
112,288,379

18,615,776
98,748,155(337,222)(2,512)

Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 9 and 10)(337,222)(2,512)

Total net assets (Note 3)

Total valuation and translation adjustments

111,951,157

98,745,643

Total liabilities and net assets¥245,103,757¥213,558,887

See accompanying notes to the financial statements.

70

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from August 1, 2018 to January 31, 201913th Fiscal Period
from February 1, 2018
to July 31, 2018

14th Fiscal Period
from August 1, 2018
to January 31, 2019(in thousands of yen)
Operating revenues
Rent revenue-real estate (Note 5)
Other lease business revenue (Note 5)
Gain on sales of real estate property (Note 5)
Dividends income
Total operating revenues
Operating expenses
Expenses related to rent business (Note 5)
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Merger expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Dividends and redemption-prescription
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
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on negative goodwill
Total extraordinary income
Income before income taxes
Income taxes (Note 11)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥7,085,174
520,733
203,178
14,461¥6,152,086
503,250
436,8175,164

7,823,548

7,097,319

2,794,762
513,065
11,98541,7238,100
240,701
3,610,337
4,213,210

2,554,551
413,158
11,583
41,2017,500
395,984
233,938
3,657,918
3,439,400

45
313
3
362

15
293
56
364

491,7449,974
101,2232,560
9,022
614,525
3,599,047

441,829
7,593
145,787
1,878
421
108
597,619
2,842,146

3,599,047

2,574,896
2,574,896
5,417,042

605
605
3,598,442
276,608¥3,875,050

605
605
5,416,437
12,239¥5,428,676

See accompanying notes to the financial statements.

71

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from August 1, 2018 to January 31, 2019

Unitholders'
capitalBalance as of January 31, 2018
Changes of items during the period
Increase by merger
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during theperiodBalance as of July 31, 2018 (Note 6)
Changes of items during the period
Issuance of new investment units
Provision of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during theperiodBalance as of January 31, 2019
(Note 6)

Capitalsurplus¥80,132,379¥-

Unitholders' equity
Surplus
Voluntary retained earnings
UnappropriatedReserve for
Total
retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)¥¥¥2,437,011

13,187,100¥80,132,379

13,187,100¥13,187,100¥-¥2,437,011¥82,569,390

13,187,100

13,187,100(2,424,772)
5,416,437(2,424,772)
5,416,437(2,424,772)-

2,991,665¥-¥5,428,676

16,178,765¥18,615,776

16,178,765¥98,748,155-

13,093,849(3,152,068)
3,598,442(3,152,068)
3,598,442(3,152,068)

13,093,849
2,000,000

Total
unitholders'equityTotal
surplus2,000,000(2,000,000)

5,416,437

3,598,442

13,093,849-

2,000,000

2,000,000(1,553,626)

446,373

13,540,223¥93,226,228¥13,187,100¥2,000,000¥2,000,000¥3,875,050¥19,062,150¥112,288,379

Valuation and translation adjustments
Deferred gains orlosses on hedges

Balance as of January 31, 2018
Changes of items during the period
Increase by merger
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2018 (Note 6)
Changes of items during the period
Issuance of new investment units
Provision 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, 2019
(Note 6)

Total valuation andtranslation
adjustments(in thousands of yen)
¥80,743¥80,743

Total net assets¥82,650,134
13,187,100(2,424,772)
5,416,437(83,255)(83,255)¥ (2,512)(83,255)(83,255)¥ (2,512)(83,255)
16,095,509¥98,745,643
13,093,849(3,152,068)
3,598,442(334,709)(334,709)(334,709)(334,709)(334,709)
13,205,513¥ (337,222)¥ (337,222)¥111,951,157

See accompanying notes to the financial statements.

72

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from August 1, 2018 to January 31, 201914th Fiscal Period
from August 1, 2018
to January 31, 201913th Fiscal Period
from February 1, 2018
to July 31, 2018

(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Gain on negative goodwill
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 consumption taxes refund 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¥3,599,047
1,343,939
2,560
9,022
(45)
501,7192,576(338,402)
3,405
117,776
15,829(52,443)
137,469(142,793)
500,913
19,148¥5,417,042
1,144,883(2,574,896)
1,878
421
(15)
449,423(3,782)
9,464(713)(28,792)(102,769)
62,16015,122(1,198)953,749
18,303

Subtotal

5,719,725

5,360,283

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

45(511,560)
3,769

15(459,405)(6,005)

Net cash provided by (used in) operating activities

5,211,979

4,894,888(29,866,970)(1,832)402,700
10,000(133,676)
486,208(103,996)
304,115(1,053,115)(7,762)(111,529)
12,232(134,277)
161,089(44,212)625,414

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Purchase of investment securities
Proceeds from investment securities
Proceeds from 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(28,903,451)(552,161)

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

(580,000)
26,700,000(11,000,000)
1,981,451
13,039,815(3,151,284)

2,630,000(3,630,000)
4,500,000(3,500,000)(2,709,508)

Net cash provided by (used in) financing activities

26,989,982(2,709,508)

Net increase (decrease) in cash and cash equivalents

3,298,510

1,633,218

Cash and cash equivalents at the beginning of period

18,779,421

10,479,684

Increase in cash and cash equivalents resulting from merger
Cash and cash equivalents at the end of period (Note 7)-

6,666,519¥22,077,932¥18,779,421

See accompanying notes to the financial statements.

73

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from August 1, 2018 to January 31, 2019

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 theInvestment Corporation was the surviving corporation and Japan Senior Living Investment Corporation (“JSL”) was the dissolving corporation.
Subsequently, the Investment Corporation raised funds through the latest public offering and third-party allotment for the first time in approximately
three and a half years, and acquired 11 properties (total acquisition price of ¥29,284 million) with the funds of new investment units and new
borrowings until the end of the 14th fiscal period. As a result, as of January 31, 2019, the end of the 14th fiscal period, the number of investment
units issued and outstanding totaled 869,133 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 as an independent real estate management company. As the asset manager, the AssetManagement Company shall provide flexible and speedy real estate investment and management services based on the strategies of theInvestment 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 13th fiscal period, the Investment Corporation succeeded 14 properties through the Merger with total acquisition price of ¥28,998
million based on the appraisal value as of March 1, 2018. The Investment Corporation acquired 1 property (acquisition price of ¥737 million) andsold 1 property (disposition price of ¥1,420 million) other than the Merger. During the 14th fiscal period, the Investment Corporation acquired 4
residential properties (total acquisition price of ¥13,840 million) and 6 healthcare properties (total acquisition price of ¥14,707 million), and sold 1
property (acquisition price of ¥520 million, disposition price of ¥730 million). As the result, the Investment Corporation has a portfolio comprised of
138 properties (total acquisition price of ¥220,916 million) as of January 31, 2019, the end of the 14th fiscal period. The portfolio consists of 116
residential properties (total acquisition price of ¥174,724 million), 21 healthcare properties (total acquisition price of ¥44,442 million) and 1 otherproperty (acquisition price of ¥1,750 million).
The occupancy rates of the overall portfolio including land with leasehold interest were 97.6% and 97.7% as of the end of the 13th and 14th
fiscal period, respectively. Furthermore, the average occupancy rates of the properties for residential and healthcare were 96.5% and 100.0% as ofthe end of 14th fiscal period.
During the 13th and 14th fiscal period, the Investment Corporation made borrowings of ¥7,130 million and ¥11,000 million for the repayment ofdebt matured. During the 13th fiscal period, the Investment Corporation succeeded ¥15,000 million borrowings from JSL on March 1, 2018 by the
Merger. During the 14th fiscal period, the Investment Corporation made new borrowings of ¥15,700 million upon acquiring properties and also
issued ¥2,000 million new investment corporation bonds for ¥580 million partial repayment of borrowings and acquiring properties. As a result,balance of borrowings as of the end of the 13th and 14th fiscal period stood at ¥103,130 million and ¥118,250 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, theFinancial Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which wereprepared in 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 tofinancial 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.

74

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Securities
Other securities without market value are stated using the moving average cost method. Equity investments in an anonymous association
are stated, the amount equivalent to the corresponding equity interests including net amount of gain or loss from the anonymous association.
(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, 2018
to January 31, 20192-69 years

From February 1, 2018
to July 31, 2018
2-67 years

Structures

3-57 years

3-52 years

Machinery and equipment

8-35 years

8-34 years

Tools, furniture and fixtures

5-30 years

6-30 years(C) Intangible Assets
Intangible assets are amortized by the straight-line method.
(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 and common area charges, and other operating revenues including
parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrual basis over the lifeof each lease.
(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 thecalendar 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 period75following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of theproperty-related taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to¥1,215 thousand and ¥50,824 thousand as of July 31, 2018 and January 31, 2019, respectively.
(J) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets
and liabilities using the statutory tax rates.
(K) 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.
(L) 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 and other derivative transactions 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 madebased on changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate
swaps and other derivatives that meet the requirements for special treatment.
(M) 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.
(N) 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 theaccompanying financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of theindividual amounts.

76

3. 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 requiredby the Investment Trust Act.

4. RESERVE FOR TEMPORARY DIFFERENCE ADJUSTMENTS
As of January 31, 2019
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Reversalduring theduring theInitial amount the beginningof the period
periodperiod(in thousands of yen)

Balance atthe end of
the period

Reason for reserveand reversal

Reserve of a part ofgain on negative
goodwill by merger* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary
Gain on negative goodwill*¥2,000,000¥ -¥2,000,000¥ -¥2,000,000

difference 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, 2018
Not applicable

5. 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, 2018 to January 31, 2019 and from February 1,
2018 to July 31, 2018 consist of the following:
From August 1, 2018
to January 31, 2019(in thousands of yen)

From February 1, 2018
to July 31, 2018

A. Rental and other operating revenues:
Rental revenues
Rental revenues from limited proprietary rights of landCommon area charges¥6,711,825¥5,800,000

43,74943,750329,599

308,336

7,085,174

6,152,086

Parking space rental revenues

210,398

182,436

Miscellaneous

310,334

320,814

Subtotal

520,733

503,250¥7,605,908¥6,655,337¥408,364¥402,111

Subtotal
Others:Total rental and other operating revenues
B. Property-related expenses:
Property management fees and facility management fees
Utilities

97,432

89,714Taxes

410,483

413,717

Repairs and maintenance

318,838

290,404

Insurance

11,487

10,386

Trust fees

53,141

48,958Depreciation

1,343,163

1,144,236

Others151,851

155,022¥2,794,762¥2,554,551¥4,811,146¥4,100,786

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

77

Gain on sales of real estate property:
From August 1, 2018 to January 31, 2019(in thousands of yen)
KDX Residence Kotodai
Revenue from sale of real estate property¥730,574

Cost of real estate property

500,913

Other sales expenses

26,481Gain on sales of real estate property¥203,178

From February 1, 2018 to July 31, 2018
(in thousands of yen)
KDX Shimmachi Residence
Revenue from sale of real estate property¥1,420,000

Cost of real estate property

953,749

Other sales expenses

29,433Gain on sales of real estate property¥436,817

6. 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, 2018
to January 31, 201910,000,000 units

From February 1, 2018
to July 31, 2018
10,000,000 units

869,133 units

782,928 units

Total number of investment units issued and outstanding

7. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of January 31, 2019 and July 31, 2018:
As of January 31, 2019

As of July 31, 2018

(in thousands of yen)
Cash and deposits¥12,356,302¥10,029,598

Cash and deposits in trust

9,721,629

8,749,823

Cash and cash equivalents¥22,077,932¥18,779,421

Important contents of the non-cash transaction
From August 1, 2018 to January 31, 2019
Not applicable
From February 1, 2018 to July 31, 2018
The summary of assets and liabilities succeeded from Japan Senior Living Investment Corporation by merger in the 13th fiscal period is asfollows. The increase amount of capital surplus is ¥13,187,100 thousand as a result of merger.
(in thousands of yen)
Current assets¥6,674,104

Non-current assets

29,237,279

Total assets

35,911,384

Current liabilities

5,108,546

Non-current liabilities

15,040,841

Total liabilities¥20,149,388

78

8. LEASESThe 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, 2019
and July 31, 2018 are as follows:
As of January 31, 2019

As of July 31, 2018

(in thousands of yen)Due in 1 year

¥2,769,825¥1,942,856

Due after 1 year

18,849,702

12,086,289

Total¥21,619,527¥14,029,145

9. 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 8 months for borrowings and also have a redemption
date of a maximum of 9 years and 10 months for investment corporation bonds as of January 31, 2019, the end of the 14th 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
condition of the issuer with regard to these investment securities. A risk management policy is established with regard to the execution andmanagement of derivatives, 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.

79

(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.
(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.
As of January 31, 2019
Carrying amount

Estimated fair value

Difference(in thousands of yen)

(1) Cash and deposits(2) Cash and deposits in trust¥12,356,302¥12,356,302¥-

9,721,629

9,721,629-

22,077,932

22,077,932-(1) Short-term loans payable

2,050,000

2,050,000-(2) Current portion of long-term loans payable

9,700,000

9,702,693

2,693

Subtotal(3) Investment corporation bonds(4) Long-term loans payable
Subtotal

5,000,000

4,994,100(5,900)106,500,000

106,881,219

381,219

123,250,000

123,628,012

378,012

Derivative transactions*¥(337,222)¥(337,222)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of July 31, 2018
Carrying amount

Estimated fair value

Difference(in thousands of yen)

(1) Cash and deposits(2) Cash and deposits in trust
Subtotal¥10,029,598
8,749,823¥10,029,598
8,749,823¥-

18,779,421

18,779,421-(1) Short-term loans payable

2,630,000

2,630,000-(2) Current portion of long-term loans payable

13,500,000

13,463,182(36,817)(3) Investment corporation bonds

3,000,000
87,000,000

2,978,000
87,203,230(22,000)
203,230

106,130,000

106,274,413

144,413(4) Long-term loans payable
Subtotal

Derivative transactions*¥(2,512)¥(2,512)¥* 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
Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying amount approximates fair value.
Liabilities(1)Short-term loans payable
Since these items are settled in a short period of time with floating interest rates, their carrying amount approximates fair value.
(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
are reflected 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 interest-rate swaps is based on the present value of the total of principal and interest, accounted for together with the applicableinterest-rate swaps, discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type.)80(3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
Derivative transactions
Please refer to Note 10 “DERIVATIVE TRANSACTIONS”.
Note 2: Financial instruments whose fair values are extremely difficult to recognize(in thousands of yen)Classification

As of January 31, 2019

Investment securities *As of July 31, 2018

111,796

512,263*Fair values of investment securities are not subject to disclosure of fair value as they have no market value and their fair values are extremely
difficult to recognize.
Loss on valuation of investment securities of ¥21,981 thousand was recognized in the fiscal period ended July 31, 2018.
Note 3: Redemption schedule for financial assets with maturities
As of January 31, 2019
Due in 1 year or
less
Cash anddeposits
Cash anddeposits in trust
Total
As of July 31, 2018

Due after 1 year
through 2 years¥12,356,302¥

9,721,629

Cash anddeposits
Cash anddeposits in trust
Total

Due after 3 years
through 4 years

Due after 4 years
through 5 years

Due after 5 years

¥

¥

¥

¥

(in thousands of yen)-

¥22,077,932

Due in 1 year or
less

Due after 2 years
through 3 years¥¥10,029,598¥

8,749,823--

Due after 1 year
through 2 years

¥

¥

-

-

¥

-

-

¥

-

-

¥

-

Due after 2 years
through 3 years

Due after 3 years
through 4 years

Due after 4 years
through 5 years

Due after 5 years

¥

¥

¥

¥

(in thousands of yen)-

¥18,779,421

-

-

-

¥

-

-

¥

-

-

¥

-

-

¥

-

Note 4: Redemption schedule for loans payable and investment corporation bonds
As of January 31, 2019
Due in 1 year or
lessShort-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal
As of July 31, 2018

Short-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal¥

2,050,000

Due after 1 year
through 2 years¥

Due after 2 years
through 3 years

Due after 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

3,000,000

9,700,000

9,600,000

13,000,000

17,750,000

11,800,000

54,350,000

12,800,000¥ 57,350,000

Due after 4 years
through 5 years

Due after 5 years¥ 11,750,000¥

Due in 1 year or
less

Due after 1 year
through 2 years¥¥

2,630,000

9,600,000¥

14,000,000

Due after 2 years
through 3 years¥

17,750,000

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

-

¥

-

¥

-

¥

¥

-

¥

-

-

-

-

1,000,000-

2,000,000

13,500,000

7,500,000

8,950,000

19,650,000

7,250,000

43,650,000¥ 16,130,000¥

7,500,000¥

8,950,000¥

20,650,000¥

7,250,000¥

45,650,0008110. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of January 31, 2019 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 thousands of yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term¥52,500,000¥52,500,000¥(337,222) provided by counterparty
Receive/floatingloans payablefinancial institutions
and pay/fixedSpecialInterest rate swap
treatment for transaction:
Long-term
38,300,000
36,800,000*
Receive/floatinginterest-rateloans payableswaps
and pay/fixed
Total¥90,800,000¥89,300,000¥(337,222)*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair
Accounting
method, inprinciple

value 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, 2018 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 thousands of yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term¥43,000,000¥43,000,000¥(2,512) provided by counterparty
Receive/floatingloans payablefinancial institutions
and pay/fixedSpecialInterest rate swap
treatment for transaction:
Long-term¥46,300,000¥38,300,000*
Receive/floatinginterest-rateloans payableswaps
and pay/fixed
Total¥89,300,000¥81,300,000¥(2,512)*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair
Accounting
method, inprinciple

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

8211. 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 ¥3,510 million and ¥3,152 million for the periods ended January 31, 2019 and July 31,
2018, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.02% and 0.01% for the periods ended January 31, 2019 and July 31, 2018, respectively. The following
table summarizes the significant differences between the statutory tax rate and the effective tax rate:

Statutory tax rate

From August 1, 2018
to January 31, 201931.51%

From February 1, 2018
to July 31, 201831.74%(30.73)(16.44)

Deductible cash distributions
Gain on negative goodwill-(15.09)Others

(0.76)(0.20)

Effective tax rate

0.02%

0.01%

The significant components of deferred tax assets and liabilities as of January 31, 2019 and July 31, 2018 are as follows:
As of January 31, 2019

As of July 31, 2018

(in thousands of yen)

Deferred tax assets:
Valuation difference on assets acquired by merger
Deferred gains or losses on hedges¥ 741,176¥ 762,851

106,528

26,694

Loss on valuation of investment securities
Subtotal deferred tax assets

-

6,926

847,704

796,472

Valuation allowance(847,704)(796,472)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

12. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other14th Fiscal Period (August 1, 2018 to January 31, 2019) and 13th Fiscal Period (February 1, 2018 to July 31, 2018): Not applicable
2．Affiliated companies and other14th Fiscal Period (August 1, 2018 to January 31, 2019) and 13th Fiscal Period (February 1, 2018 to July 31, 2018): Not applicable
3．Fellow subsidiary companies and other14th Fiscal Period (August 1, 2018 to January 31, 2019) and 13th Fiscal Period (February 1, 2018 to July 31, 2018): Not applicable
4．Directors, major individual unitholders and other14th Fiscal Period (August 1, 2018 to January 31, 2019) and 13th Fiscal Period (February 1, 2018 to July 31, 2018): Not applicable8313. BUSINESS COMBINATION
14th Fiscal Period (August 1, 2018 to January 31, 2019)
Not applicable
13th Fiscal Period (February 1, 2018 to July 31, 2018)
Business Combination through Acquisition
1. Overview of Business Combination(1)Name and Business Description of Acquiree
Name of acquiree: Japan Senior Living Investment Corporation (“JSL”)

Business description: Real estate investment trust(2)Main Reasons for Business Combination
The Investment Corporation and JSL believe that, as a result of the Merger, they will achieve the benefits of (i) an increase in liquidity resulting
from greater asset scale and market capitalization that will enable them to capture more growth opportunities, (ii) greater earnings stability
stemming from asset type diversification and enhanced ability to pursue external growth and (iii) improvement in asset management efficiency
together with enhanced financial health, and further believe that the potential to reap these benefits constitutes the major significance of the
Merger. The Investment Corporation has therefore entered into the merger agreement on November 10, 2017.
(3)Date of Business Combination
March 1, 2018(4)Legal Framework of Business Combination
An absorption-type merger with the Investment Corporation as the surviving corporation and JSL as the dissolving corporation(5)Name of the Investment Corporation after Business Combination
Kenedix Residential Next Investment Corporation(The Investment Corporation changed its name from Kenedix Residential Investment Corporation to Kenedix Residential Next Investment
Corporation on March 1, 2018)(6)Main Reasons for Determining Acquiring Company
It was determined that the Investment Corporation is the acquiring company based on the accounting standards for business combinations
and other regulations with comprehensively taking various factors into consideration, such as the size of total assets, net income and otherindexes, the ratio of unitholders’ voting rights, the members of board of directors and other managerial factors.
2. Operating Period of Acquiree Included in the Statement of Income and Retained Earnings
From March 1, 2018 to July 31, 2018
3. Acquisition Cost of Acquiree and the Breakdown
Acquisition costMarket value of the Investment Corporation’s investment units allotted on the date of business combination¥13,187,100 thousand
Principal Direct Cost for Acquisition
Merger fees

¥292,085 thousand

4. Exchange Ratio, Method of Calculation and Number of Investment Units Allotted as for the Acquisition(1)Exchange Ratio of Investment Units
1 unit of the Investment Corporation was allotted 1 unit of JSL through the Merger. The Investment Corporation implemented a 2-for-1
investment unit split with February 28, 2018 as the record date before the Merger.
(2)Method of Calculation
The Investment Corporation appointed SMBC Nikko Securities Inc. as a financial advisor (“FA”), while JSL appointed Nomura Securities Co., Ltd.
They requested the FAs to perform a financial analysis of the merger ratio. Each FA calculated the merger ratio based on the valuation methodof investment unit market value, discount dividends model, and other valuation, respectively. After careful discussions and negotiations as wellas comprehensive considerations of various factors, including the merger ratio performed by the FAs, the Investment Corporation and JSL
determined that the above mentioned merger ratio was appropriate.
(3)Number of Investment Units Allotted
84,750 units84

5. Treatment of Acquisition Cost
(1) Breakdown of Assets Acquired and Liabilities Assumed on the Date of Business Combination(In thousand yen)
Current assets¥6,674,104

Noncurrent assets

29,237,279

Total assets

35,911,384

Current liabilities

5,108,546

Noncurrent liabilities

15,040,841

Total liabilities¥20,149,388(2)Amount and Reason for Negative Goodwill
Amount of Negative Goodwill: ¥2,574,896 thousand

Reason : The Investment Corporation recognized the difference as Negative Goodwill, by the amount that JSL fair value of net assets on thedate of business combination exceeded the acquisition cost.
Accounting Treatment : All of the amount was recognized as extraordinary gain in 13th fiscal period.
6. Estimated Impact on the Statement of Income and Retained Earnings for the 13th fiscal period
Calculation Method of Estimated Impact and Assumption:
Japanese GAAP requires the acquiring company to estimate the impact on the statement of income and retained earnings as if the businesscombination were completed at the beginning of the 13th fiscal period.
Impact on the Statement of Income and Retained Earnings in the 13th Fiscal Period:
Operating revenues¥162,634 thousand

Ordinary income¥37,588 thousand

Net income¥37,419 thousand

14. 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.
14th Fiscal Period
from August 1, 2018
to January 31, 201913th Fiscal Period
from February 1, 2018
to July 31, 2018

(in thousands of yen)Book value
Balance at the beginning of period¥193,148,357¥165,040,946

Changes during the period
Balance at the end of period

28,208,331
221,356,688

28,107,411
193,148,357¥256,174,000¥223,857,000

Fair value at the end of period
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 14th fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 10 properties totaling ¥29,437,871 thousand, and the principal decrease was thesales of real estate trust beneficiary interests in 1 property totaling ¥500,913 thousand and depreciation of ¥1,343,163 thousand, and the13th fiscal period, the principal increases were the acquisition of trust beneficiary interests in real estate in 14 properties totaling¥28,998,000 thousand by merger with Japan Senior Living Investment Corporation and the acquisition of real estate trust beneficiaryinterests in 1 property totaling ¥770,418 thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1
property totaling ¥953,749 thousand and depreciation of ¥1,144,236 thousand.
Note 3: The fair value is the appraisal value or the survey value determined by outside appraisers. In addition, the fair value at the end of 14th
fiscal period of KDX Residence Shin-osaka, which was sold on February 1, 2019, is based on the sales price (¥690,000 thousand) under
the trust beneficiary interest sales contracts entered into on January 18, 2019.
Income and loss in the fiscal periods ended January 31, 2019 and July 31, 2018 for real estate for rental purposes is listed in Note 5 ”
BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REALESTATE PROPERTY”.

85

15. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from August 1, 2018 to January 31, 2019 and from February 1, 2018 to July 31, 2018 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,
plant and 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 ofincome and retained earnings.

16. PER UNIT INFORMATION

Net asset value per unit

From August 1, 2018

From February 1, 2018

to January 31, 2019

to July 31, 2018

¥128,807¥126,123

Net income per unit

¥4,143¥7,036Weighted average number of units (units)

868,508

769,818

The weighted average number of units outstanding of 868,508 and 769,818 were used for the computation of the amount of net income per unit
as of January 31, 2019 and July 31, 2018, 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:

Net income (in thousands of yen)
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)

From August 1, 2018

From February 1, 2018

to January 31, 2019

to July 31, 2018

¥3,598,442¥5,416,437--¥3,598,442¥5,416,437

868,508

769,81886

17. SIGNIFICANT SUBSEQUENT EVENTSIssuance of New Investment Units
On February 4, 2019 and February 13, 2019, the Board of Directors of the Investment Corporation resolved to issue new investment units as
the funds for acquiring specified assets and other use. Payments for the issuance of new investment units through public offering and throughthird-party allotment have been completed on February 20, 2019 and March 11, 2019, respectively.
As a result of the issuance of new investment units, the Investment Corporation has total unitholders’ capital of ¥99,731,514,403 with 907,458
units outstanding as of March 11, 2019.
(Issuance of New Investment Units through Public Offering)Issuance of new investment units: 36,500 units

Issue price (Offer price): ¥175,500 per unit

Aggregate issue price (Total offer price): ¥6,405,750,000

Issue amount (Paid-in value): ¥169,740 per unit

Total issue amount (Aggregate paid-in value): ¥6,195,510,000

Payment date

: February 20, 2019

(Issuance of New Investment Units through Third-Party Allotment)
Issuance of new investment units: 1,825 units

Issue amount (Paid-in value): ¥169,740 per unit

Total issue amount (Aggregate paid-in value): ¥309,775,500

Payment date

: March 11, 2019

Allottee: SMBC Nikko Securities Inc.

18. SECURITIES PORTFOLIO
Securities portfolio consists of the following as of January 31, 2019:(1)

Stock Not applicable(2)

Securities other than shares(in thousands of yen)Type

Subordinated Silent
Partnership Equity
Interests
Total

Name

Prepaid
accruedinterest

Face value
totalBook value-

111,796--

111,796--

111,796--

111,796-

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

Accruedinterest

Assessed Gain (Loss)value
onRemarks（Note 2） valuation

Note 1: TK property fund owns trust beneficiary interests in real estate for “Serabi Ebisu” and “Arute Ishiyagawa.” Furthermore, the Investment
Corporation will acquire real estate beneficiary interests in trust for the above two mentioned properties on June 3, 2019 based on the trust
beneficiary interest sales contracts executed on February 4, 2019.
Note 2: The assessed value is stated at the book value.
Securities portfolio consists of the following as of July 31, 2018:(1)

Stock Not applicable(2)

Securities other than shares(in thousands of yen)Type

Subordinated Silent
Partnership Equity
Interests
Subordinated Silent
Partnership Equity
Interests
Silent Partnership
Equity Interests
Subordinated Silent
Partnership Equity
Interests
Total

Prepaid
accruedinterest

Face value
totalBook value

Equity interests in TK property fund with G.K.
Tropic I as operator (Note 2)-

78,767--78,767-

Equity interests in TK property fund with G.K.
Tropic II as operator (Note 3)-

122,142--

122,142-

Equity interests in TK property fund with G.K.
KSLF8 as operator (Note 4)-

198,346--

198,346-

Equity interests in TK property fund with G.K.
Tropic III as operator (Note 5)-

113,006--

113,006--

512,263--512,263-

Name

Accruedinterest

Assessed Gain (Loss)value
onRemarks（Note 1） valuation

87

Note 1: The assessed value is stated at the book value. Loss on valuation of investment securities of ¥10,831 thousand and ¥11,150 thousand wasrecognized in the fiscal period ended July 31, 2018 regarding equity interests in TK property fund with G.K. Tropic I as operator and equity
interests in TK property fund with G.K. Tropic II as operator, respectively.
Note 2: TK property fund owned trust beneficiary interests in real estate for “KDX Residence Shukugawa Hills” as of July 31,2018, the end of the
13th fiscal period. Furthermore, the Investment Corporation acquired real estate beneficiary interests in trust for the abovementioned
properties on August 2, 2018.
Note 3: TK property fund owned trust beneficiary interests in real estate for “KDX Residence Asagaya,” “KDX Residence Hiyoshi” and “Serenite
Kobe Motomachi” as of July 31,2018, the end of the 13th fiscal period. Furthermore, the Investment Corporation acquired real estate
beneficiary interests in trust for the three abovementioned properties on August 2, 2018.
Note 4: Equity interests in TK property fund with G.K. KSLF8 as operator were succeeded from JSL by the Merger.
TK property fund owned trust beneficiary interests in real estate for “Canadian Hill,” “Anesis Hyogo,”“Orage Suma,” “Rococo-riha” and“Anesis Teradacho” as of July 31,2018, the end of the 13th fiscal period. Furthermore, the Investment Corporation acquired real estate
beneficiary interests in trust for the five abovementioned properties on August 2, 2018.
Note 5: TK property fund owns trust beneficiary interests in real estate for “Serabi Ebisu” and “Arute Ishiyagawa.”

19. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
Property, plant and equipment consist of the following as of January 31, 2019:
Type of asset

Property,plant andequipment

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

Balance atthe beginningof period¥1,798,041
1,798,041
84,656,776
722,432

Increaseduring theperiodDecreaseduring theperiod¥¥10,780,795
227,133

Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥1,798,041¥¥
1,798,041
95,077,289
9,123,715
1,269,324
947,729
161,739
28,801

Balance atthe end of
period360,282
1,836

Netbalance at
end of theperiod¥1,798,041
1,798,041
85,953,573 Notes 1 and 2
785,989

1,360,078

72,927

3,678

1,429,327

288,590

32,6241,140,736

400,899

75,137

2,421

473,61451,47812,412

422,136

111,474,267
198,614,454
200,412,495

18,896,415
30,052,408
30,052,408

181,530
549,749
549,749

130,189,152
228,117,113
229,915,155

9,625,524
9,625,524

1,343,163
1,343,163

1,067,058--

1,067,058--

1,067,058

7,762¥1,074,821

-

-

7,762
¥1,074,821

1,423¥1,423

776
¥776

6,339
¥1,073,398¥¥

Remarks

130,189,152 Notes 1 and 2
218,491,588
220,289,630

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, 2018:
Type of asset

Property,plant andequipment

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

Balance atthe beginningof period¥1,798,041
1,798,041
68,843,600
502,925

Increaseduring theperiodDecreaseduring theperiod¥¥16,408,296
222,790595,119
3,283

Depreciation
Depreciation
for theperiod(in thousands of yen)
¥1,798,041¥¥
1,798,041
84,656,776
7,901,681
1,084,310
722,432
133,503
19,963

Balance atthe end of
periodAccumulated
depreciation

Netbalance at
end of theperiod¥1,798,041
1,798,041
76,755,095 Notes 1 and 2
588,929

1,317,786

42,291-

1,360,078

256,856

30,015

1,103,222

338,646

62,359106

400,899

39,156

9,946

361,742

99,538,715
170,541,674
172,339,715

12,402,600
29,138,338
29,138,338

467,048
1,065,558
1,065,558

111,474,267
198,614,454
200,412,495

8,331,197
8,331,197

1,144,236
1,144,236-

1,067,058-

1,067,058--

1,067,058-

7,762¥1,074,821

-

7,762
¥1,074,821

646
646

646
646

7,115
¥1,074,174

¥

¥

¥

¥

Remarks

111,474,267 Notes 1 and 2
190,283,257
192,081,298

Note 1: The amount of increase during the period is primarily attributable to merger, the acquisition of the real estate property and capital
expenditures.
Note 2: The amount of decrease during the period is primarily attributable to the sales of the real estate property.

8820. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of January 31, 2019 are as follows.
Balance at
Decrease
Balance at
Date of
Seriesthe beginningduring thethe end ofissue
of period
periodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
corporation bonds (Note20181)
Fifth series of unsecured
November 30,
investment corporation
1,000,000
2018
bonds (Note 1)
Total
3,000,000
5,000,000

Interest
rate
0.200%
0.540%
0.800%
0.410%
0.850%

Repayment date

Use

Remarks(Note2)

Unsecured

August 30,
2021
August 28,
2026
August 30,
2028
November 30,
2023
November 30,
2028

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: 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

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

1,000,000

Outstanding Investment corporation bonds as of July 31, 2018 are as follows.
Balance at
Decrease
Balance at
Date of
Seriesthe beginningduring thethe end ofissue
of period
periodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Total
3,000,000
3,000,000

Interest
rate
0.200%
0.540%
0.800%

Due after 4 years
through 5 years-

1,000,000

Repayment date

Use

Remarks(Note2)

Unsecured

August 30,
2021
August 28,
2026
August 30,
2028

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: 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

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

1,000,000

Due after 4 years
through 5 years-

8921. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of January 31, 2019
Classification

LenderShort-termloanspayableCurrent
portion of
long-term
loans
payableLong-term
loans
payableSumitomo Mitsui
Banking Corporation(Note 8)Mizuho Bank, Ltd.
Sub total
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
(Note 2)
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Shinsei Bank, Limited
Resona Bank, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank of Fukuoka,Ltd.
Sub total
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank, Limited.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited.
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.

Balance atthebeginning of
period¥1,830,000
800,000
2,630,000

Decreaseduring theperiodIncreaseduring theperiodBalance atthe end of
periodAverageinterest rate
(Note 3)(Note 4)

Payment due
date(Note 7)(in thousands of yen)¥-

¥580,000¥1,250,000

0.412%

July 31, 2019-

580,000

800,000
2,050,000

0.412%

July 31, 20191.052%

August 31, 2018

3,250,000-

3,250,000-

2,000,000
1,000,000
500,000-

2,000,000
1,000,000
500,000-

500,000-

500,000-

500,000-

500,000-

250,000-

250,000-

3,000,000-

3,000,000-

1.088%(Note 5)

August 31, 2018

1,500,000--

1,500,000

0.689%

November 30, 2019

1,000,000--

1,000,000

0.487%

February 28, 2019

500,000--

500,000

0.487%

February 28, 2019

500,000--

500,000

0.362%

July 31, 2019

500,000--

500,000

0.362%

July 31, 2019-1,500,000-

1,500,000-

1,400,000
900,000
500,000
400,000-

1,400,000
900,000
500,000
400,000-

300,000-

300,000

0.437%

January 31, 2020-

300,000-

300,000-

200,000-

200,000-

200,000-

200,000

15,000,000
1,000,000

5,700,000-

11,000,000-

9,700,000
1,000,000

1.109%

January 31, 2021

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

2,000,000--

2,000,000

1.267%

April 30, 2022

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

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

1.267%
1.267%
1.267%

April 30, 2022
April 30, 2022
April 30, 2022

1,100,000--

1,100,000

1,100,000
600,000
350,000
300,000--

1,100,000
600,000
350,000
300,000

0.916%

August 7, 2021

300,000--

300,000

1,000,000--

1,000,000

400,000--

400,000

400,000
300,000
200,000--

400,000
300,000
200,000

200,000--

200,000

150,000--

150,000

500,000--

500,000

0.996%(Note 5)

August 7, 2021

1.254%

August 7, 2023

1.320%(Note 5)

August 7, 2023

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed90Classification
LenderLong-term
loans
payableSumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited.
Mizuho Trust &Banking Co., Ltd.
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Nipponkoa InsuranceInc.
Aozora Bank, Ltd.
Resona Bank, Limited.
Mizuho 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.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

Balance atthebeginning of
periodBalance atthe end of
periodDecreaseduring theperiodIncreaseduring theperiod(in thousands of yen)

Averageinterest rate
(Note 3)(Note 4)

Payment due
date(Note 7)600,000--

600,000

0.945%

August 31, 2021

600,000
500,000
950,000--

600,000
500,000
950,000

0.945%
0.945%
1.083%

August 31, 2021
August 31, 2021
November 30, 2022

2,000,000--

2,000,000

0.804%

November 30, 2020

1,200,000--

1,200,000

0.875%

January 31, 2022

1,200,000
2,000,000
1,500,000
2,000,000--

1,200,000
2,000,000
1,500,000
2,000,000

1.105%
0.875%
0.987%
1.100%

January 31, 2024
April 30, 2022
April 30, 2023
April 30, 2024

1,000,000--

1,000,000

1.265%

April 30, 2025

1,750,000--

1,750,000

1,750,000--

1,750,000

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

1,000,000
500,000
500,000

0.729%

July 29, 2020

500,000--

500,000

1,100,000--

1,100,000

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

300,000
1,100,000--

300,000
1,100,000

0.678%
0.923%

August 31, 2020
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

1,000,000--

1,000,000

300,000
1,000,000
1,000,000--

300,000
1,000,000
1,000,000

2,500,000--

2,500,000

1.345%

August 31, 2025

1.193%(Note 5)0.624%
1.156%
0.819%

October 27, 2020
April 27, 2025
April 28, 2025

0.903%

April 30, 2026

MUFG Bank, Ltd.

1,000,000-

Mizuho Bank, Ltd.

1,500,000--

1,500,000

Aozora Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited.

1,000,000--

1,000,000

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

2,000,000--

2,000,000

500,000--

500,000

0.797%
0.670%(Note 5)0.751%(Note 5)

August 31, 2025

MUFG Bank, Ltd.

3,000,000--

3,000,000

0.906%

August 31, 2026

Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.

1,000,000

1,000,000--

1,000,000

1,000,000--

1,000,000

0.773%(Note 5)0.900%

Remarks(Note 6)

Unsecured/
Unguaranteed

August 31, 2024

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

Use

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

August 31, 2025
August 31, 2025

October 31, 2025
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

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

August 22, 2027
August 22, 2027

91

Classification
LenderMizuho Bank, Ltd.

Long-term
loans
payableThe Bank of Fukuoka,
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, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Nippon Life Insurance
Company
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
Nippon Life Insurance
Company
Resona Bank, Limited.
Shinsei Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
The Bank of Fukuoka,
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, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
MUFG Bank, Ltd.

Total

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

Balance atthebeginning of
periodBalance atthe end of
periodDecreaseduring theperiodIncreaseduring theperiod(in thousands of yen)

Averageinterest rate
(Note 3)(Note 4)0.928%(Note 5)0.928%(Note 5)

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

500,000

500,000--

500,000

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

0.582%

February 29,2024--

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

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.409%

July 31, 2021

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

1,000,000
500,000
500,000

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

500,000--

500,000

0.409%
0.409%
0.409%
0.900%(Note 5)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-

400,000
400,000-

400,000-

400,000-

400,000-

400,000-

300,000-

300,000-

300,000-

300,000-

1,000,000--

400,000-

1,600,000

January 30, 2027

0.799%

February 2, 2026

1,000,000

0.509%

August 31, 2022-

400,000
1,600,000

0.509%
0.498%(Note 5)

August 31, 2022-

August 31, 2022

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

1.031%

September 30, 2028-

500,000
21,000,000¥26,700,000

Unsecured/
Unguaranteed

August 31, 2024-

85,500,000¥103,130,000(Note 6)

August 22, 2027

1,000,000
500,000-

Remarks

August 22, 2027

1,000,000-

Use

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

106,500,000¥11,580,000 ¥118,250,00092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
through 2 years

Long-term loans payable¥ 9,600,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥13,000,000¥17,750,000

Due after 4 years
through 5 years

Due after 5 years¥11,800,000¥54,350,000

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 and other derivative transactions were implemented in order to hedge theinterest rate volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and otherderivatives 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.
Note 8: Partial prepayment of 580,000 thousand yen was made on November 30, 2018.

93

Short-term debt and long-term debt consist of the following as of July 31, 2018
Classification

LenderShort-termloanspayableCurrent
portion of
long-term
loans
payableLong-term
loans
payableSumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui
Banking Corporation(Note 8)
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Sub total
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Mizuho Bank, Ltd.
Development Bank ofJapan Inc.
Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui
Banking Corporation(Note 8)MUFG Bank, Ltd.
(Note 8)Mizuho Bank, Ltd.
(Note 8)
Nippon Life Insurance
Company (Note 8)
Sumitomo Mitsui
Banking Corporation(Note 2)
MUFG Bank, Ltd.
(Note 2)
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
Sub total
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank, Limited.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited.

Balance atthebeginning of
period¥1,000,000

Averageinterest rate
(Note 3)(Note 4)

Payment due date
(Note 7)-0.455%

July 31, 2018

Balance atthe end of
periodDecreaseduring theperiodIncreaseduring theperiod(in thousands of yen)¥-

¥1,000,000¥-

500,000

500,000-

0.354%

July 30, 2018-

500,000

500,000-

0.354%

July 30, 2018

830,000-

830,000-

0.455%

July 31, 2018

800,000-

800,000-

0.455%

July 31, 2018-

1,830,000-

1,830,000

0.404%

July 31, 2019

2,630,000

800,000
3,630,000

3,630,000

800,000
2,630,000

0.404%

July 31, 20191.052%

August 31, 2018

1.088%(Note 5)

August 31, 2018

3,250,000--

3,250,000

2,000,000
1,000,000
500,000--

2,000,000
1,000,000
500,000

500,000--

500,000

500,000--

500,000

250,000--

250,000

3,000,000--

3,000,000-

1,000,000

1,000,000--

1,000,000

1,000,000--

500,000

500,000--

500,000

500,000--

500,000

500,000-

1,000,000--

500,000-

12,500,000
1,000,000

0.435%

July 30, 2018

1,000,000

0.480%

February 28, 2019-

500,000

0.480%

February 28, 2019

500,000-

500,000

0.354%

July 31, 2019

500,000
4,500,000-

3,500,000-

500,000
13,500,000
1,000,000

0.354%

July 31, 2019

1.109%

January 31, 2021

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

2,000,000--

2,000,000

1.267%

April 30, 2022

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

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

1.267%
1.267%
1.267%

April 30, 2022
April 30, 2022
April 30, 2022

1,100,000--

1,100,000

1,100,000
600,000
350,000
300,000--

1,100,000
600,000
350,000
300,000

300,000--

300,000

1,000,000--

1,000,000

400,000--

400,000

400,000
300,000
200,000--

400,000
300,000
200,000

0.916%

August 7, 2021

0.996%(Note 5)

August 7, 2021

1.254%

August 7, 2023

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed94Classification
LenderMizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.

Long-term
loans
payableBalance atthebeginning of
periodBalance atthe end of
periodDecreaseduring theperiodIncreaseduring theperiod(in thousands of yen)

200,000--

200,000

150,000--

150,000

500,000--

500,000

Averageinterest rate
(Note 3)(Note 4)

Payment due date
(Note 7)1.254%

August 7, 2023

1.320%(Note 5)

August 7, 2023

600,000--

600,000

0.945%

August 31, 2021

600,000
500,000--

600,000
500,000

0.945%
0.945%

Mizuho Bank, Ltd.

950,000--

950,000

1.083%

Sumitomo Mitsui
Banking Corporation

2,000,000--

2,000,000

0.804%MUFG Bank, Ltd.

1,500,000--

1,500,000

0.689%

August 31, 2021
August 31, 2021
November 30,
2022
November 30,
2020
November 30,
2019

1,200,000--

1,200,000

0.875%

January 31, 2022

1,200,000
2,000,000
1,500,000
2,000,000--

1,200,000
2,000,000
1,500,000
2,000,000

1.105%
0.875%
0.987%
1.100%

January 31, 2024
April 30, 2022
April 30, 2023
April 30, 2024

1,000,000--

1,000,000

1.265%

April 30, 2025-

1,750,000-

1,750,000-

1,750,000-

1,750,000-

1,000,000-

1,000,000-

500,000-

500,000

0.729%

July 29, 2020-

500,000-

500,000-

500,000-

500,000-

1,100,000-

1,100,000-

1,100,000-

1,100,000-

1,000,000-

1,000,000-

300,000-

300,000-

1,000,000-

1,000,000

300,000
1,100,000--

700,000-

950,000

Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui
Banking Corporation(Note 8)MUFG Bank, Ltd.
(Note 8)Mizuho Bank, Ltd.
(Note 8)Resona Bank, Limited.
(Note 8)Mizuho Trust &Banking Co., Ltd.
(Note 8)
Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui
Banking Corporation(Note 8)MUFG Bank, Ltd.
(Note 8)Mizuho Bank, Ltd.
(Note 8)
Sompo Japan
Nipponkoa Insurance
Inc. (Note 8)
Aozora Bank, Ltd.
Resona Bank, Limited.
Mizuho 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.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

1.115%

July 29, 2022

300,000
1,100,000

0.678%
0.923%

August 31, 2020
August 31, 2022-

700,000

0.923%

August 31, 2022--

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

1,000,000--

1,000,000

300,000
1,000,000
1,000,000--

300,000
1,000,000
1,000,000

1.193%(Note 5)0.624%
1.156%
0.819%--

2,500,000

0.903%--

1,000,000

2,500,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

Aozora Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited

1,000,000--

1,000,000

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

1,000,000--

1,000,000

0.797%MUFG Bank, Ltd.

1,000,000

Use

Remarks(Note 6)

Unsecured/
Unguaranteed

August 31, 2024
October 27, 2020
April 27, 2025
April 28, 2025
April 30, 2026
July 31, 2025
August 31, 2026
August 31, 2024
August 31, 2025

95

Classification
Lender500,000(in thousands of yen)--

500,000

MUFG Bank, Ltd.

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

3,000,000

Mizuho Bank, Ltd.

Total

Balance atthe end of
periodDecreaseduring theperiodIncreaseduring theperiodResona Bank, Limited.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.

Long-term
loans
payableBalance atthebeginning of
periodThe Bank of Fukuoka,
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, Limited.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Nippon Life Insurance
Company
Sub total

1,000,000--

1,000,000

1,000,000--

1,000,000

Averageinterest rate
(Note 3)(Note 4)

Payment due date
(Note 7)0.797%
0.670%(Note 5)0.751%(Note 5)

August 31, 2025

0.906%

August 31, 2026

0.773%(Note 5)0.900%

Use

Remarks(Note 6)

Unsecured/
Unguaranteed

August 31, 2025
August 31, 2025

October 31, 2025
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

1,000,000--

1,000,000

0.749%

February 28, 2026-

1,000,000-

1,000,000

0.409%

July 31, 2021-

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

1,000,000
500,000
500,000

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

500,000-

500,000

73,000,000¥88,130,000

14,000,000¥22,130,000¥7,130,000

87,000,000¥103,130,000

0.409%
0.409%
0.409%
0.900%(Note 5)

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

August 31, 2024

January 30, 2027

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
through 2 years

Long-term loans payable¥7,500,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥8,950,000¥19,650,000

Due after 4 years
through 5 years

Due after 5 years¥7,250,000¥43,650,000

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 and other derivative transactions were implemented in order to hedge theinterest rate volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and otherderivatives 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.
Note 8: Borrowings succeeded from JSL due to the Merger on March 1, 2018.

96

22. DISTRIBUTIONS
14th Fiscal Period(From August 1, 2018 to January 31, 2019)

I. Retained earnings at the end of period

13th Fiscal Period(From February 1, 2018 to July 31, 2018)¥3,875,050,769¥5,428,676,864¥20,000,000¥-¥3,510,428,187¥3,152,068,128¥4,039¥4,026¥-¥2,000,000,000¥384,622,582¥276,608,736

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 ¥3,510,428,187, which is the amount deducting
a 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
14th 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¥3,152,068,128, which is the amount deducting a part ofgain on negative goodwill, a part of gain on sale of realestate property and other adjustments from net income,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
13th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

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

Method of calculating distribution amount

Note 1: Reserve for temporary difference adjustments
14th Fiscal Period (August 1, 2018 to January 31, 2019)
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 andapplied to distribution in the 14th fiscal period distribution.
13th Fiscal Period (February 1, 2018 to July 31, 2018)
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.

97