21st
Semi-Annual Report
2022.2.1- 2022.7.31

Securities code：3278

Kenedix Residential Next Investment Corporation

Ⅰ Overview of KDR

1

2

4

3

Adopted property on the cover： 1
4

To our unitholders

5T-105 KDX Residence
Hachioji Otsuka

T-104 KDX Residence
Mizonokuchi

2

T-103 KDX Residence
Umejima

R-47 Serenite Koshien Plie

5

T-106 KDX Residence Tsudanuma II3

We would like to take this opportunity to express our sincere gratitude to our unitholders and stakeholders
for their continued support and cooperation to Kenedix Residential Next Investment Corporation (KDR).
Thanks to your support, KDR has reported its results of operation for the 21st fiscal period (from February
1, 2022 to July 31, 2022). We hereby report our Semiannual Report for the 21st Fiscal Period.
For the 21st fiscal period, operating revenue was 9,447 million yen, operating income was 4,850 million yen,ordinary income was 4,122 million yen and net income was 4,122 million yen. Accordingly, our distribution
per unit was 4,101 yen.
During the fiscal period under review, KDR completed its 8th follow-on offering in February 2022,
successfully raising approximately 9.2 billion yen of capital. With the proceeds and borrowings, we acquired
8 properties, including 5 properties of residential properties and 3 healthcare facilities. As a result, KDR
owned 173 properties with total acquisition price of 290.7 billion yen as of the end of July 2022.
Our operating performance in the fiscal period remained strong, and maintained a high occupancy rate of
97.5% as of the end of fiscal period. The operating environment for residential properties have changed
due to the impact of spread of COVID-19, as preferences residential areas and room layouts have become
more diverse. However, the occupancy rates have remained stable with a flexible management, and rents
have tended to rise, mainly for larger unit types. On the other hand, long-term lease contracts with
operators or healthcare facilities and accommodation facilities contributed to maintain stable profit of theportfolio.
Furthermore, KDR acquired additional 2 healthcare facilities in September 2022. As a result, the asset size
grew to 292.7 billion yen (total acquisition price) with 175 properties.
KDR will continue to flexibly pursue investment and profit opportunities that are considered optimal basedon an accurate understanding of changes in social and economic structures. We aim to maximize ourunitholder value through flexible investment and management based on accurate information and decision
making.
We sincerely appreciate your continued support to KDR and look forward toreporting our further progress in the months and years ahead.

Executive Director,
Kenedix Residential Next Investment Corporation

Tetsu Kawashima

Chief Operating Officer (COO) and director, and Headof Reidential REIT Department, Kenedix Real Estate
Fund Management, Inc.

Highlights

Distribution per Unit

22nd (Ending January 2023) Forecast¥ 4,120

21st (Ended July 2022) Actual（Note) Distribution per unit for 22nd fiscal
period and 23rd fiscal period is
estimated based on certain
assumptions as of September 13, 2022

¥ 4,101

23rd (Ending July 2023) Forecast¥ 4,120

Trend in DPU
（yen）
4,500

￥ 4,039￥ 4,026￥ 4,064￥ 4,065￥ 4,066

Jan.2020(16th Period)

Jul.2020(17th Period)

Jan.2021(18th Period)￥ 4,063￥ 4,117￥ 4,101￥4,101 ￥ 4,120

Jul.2021(19th Period)

Jan.2022(20th Period)

Jul.2022(21st Period)

￥

4,120

4,000

3,500

0
Jul. 2 0 1 8(13th Period)

Jan.2019
Jul. 2 0 1 9(14th Period) (15th Period)

Jan.2023(22nd Period)(Forecast)

Jul.2023(23rd Period)(Forecast)(million yen)

Operating revenues

Operating Income

Ordinary Income

Net Income

9,447

4,850

4,122

4,122

9,143

4,840

4,119

4,119

21st Fiscal
Period（Jul.2022）

20th Fiscal
Period（Jan.2022）

Portfolio Overview
Total Number of
Properties

173

Total Acquisition
Price (unit: bln yen)

290.7

Occupancy Rates

96.3 %
99.9 %(at the end of 21st
Fiscal Period)

Residential
Properties

140

Residential
Properties

219.3

Residential
Properties

Healthcare
Facilities

31

Healthcare
Facilities

66.4

Healthcare
Facilities

Accommodation
Facilities

2

Accommodation
Facilities

4.9

97.5

%

Accommodation
100.0 %
Facilities

目次1Newly Acquired Properties

Assets acquired in the 21st fiscal period■ Residential properties

T-106 KDX Residence Tsudanuma II
Corp
Housing■ Healthcare facilities

T-103 KDX Residence Umejima

Suburban
area

Small
FamilyLocation

Funabashi-shi
Chiba

Acquisition Price￥920 mil

Tokyo

Small
Family23 wards
Location

Adachi-ku
Tokyo

Acquisition Price￥2,373milAppraisal NOI
Cap Rate

4.6%

Appraisal NOI
Cap Rate

Completion

Sep. 2012

CompletionSep.2021

Leasablenumber ofunits

90 units

Leasable numberof units

51 units

T-105 KDX Residence Hachioji Otsuka

T-104 KDX Residence Mizonokuchi
Suburban
area

4.4%

Suburbanarea

Student
Accom.

StudioStudioLocation

Kawasaki-shi
Kanagawa

Location

Hachioji-shi
Tokyo

Acquisition Price￥1,490mil￥2,781mil

Acquisition PriceAppraisal NOI
Cap Rate

4.4%

Appraisal NOI
Cap Rate

4.7%

Completion

Mar.2021

Completion

Feb.2022

Leasablenumber ofunits

110 units

Leasablenumber ofunits

97 units（+1 retail unit）

R-47 Serenite Koshien Plie

H-29 Irise Kobe Rokko
Small
FamilyLocation

Location

Nishinomiya-shi
Hyogo

Operator

Acquisition Price￥770mil

HITOWA Care
Service Co., Ltd.

Appraisal NOI
Cap Rate

Acquisition Price￥1,200mil

5.0%Completion

Jul.2021

Appraisal NOI
Cap Rate

5.2%

Leasablenumber ofunits

Completion

Feb.2017

48 units

No. of rooms

53 units（+1 retail unit）

H-30 Excellent Hanayashiki Garden Hills

Kobe-shiHyogo

H-31 Excellent Takarazuka Garden Hills

Location

Takarazuka-shi
Hyogo

Location

Takarazuka-shi
Hyogo

Operator

Excellent Care
System Co., Ltd

Operator

Excellent Care
System Co., Ltd

Acquisition Price￥2,340mil￥1,287mil

Acquisition PriceAppraisal NOI
Cap Rate

5.2%

Appraisal NOI
Cap Rate

4.9%

Completion

Apl.2017

Completion

Jun.2021

No. of rooms

87 rooms

No. of rooms

130 rooms

Assets acquired in the 22nd fiscal period
H-32

Tsukui Sun-shine Adachi
Location

H-33
Adachi-ku
Tokyo

Operator

TSUKUICORPORATION
Acquisition Price￥830milAppraisal NOI
Cap Rate
Completion

SOMPO Care LAVIERE Ichinoe
Location

Edogawa-ku
Tokyo

Operator

Sompo Care Inc.

Acquisition Price￥1,184mil

4.5％

Appraisal NOI
Cap Rate

4.2％

Dec.2005

CompletionSep.2009

No. of rooms

54 rooms

No. of rooms

60 rooms

Acquisition Date

Sep.16, 2022

Acquisition Date

Sep.28, 20222

Overview of Portfolio

Percentage
of properties
owned byarea

Hokkaido

7 props. 2.8％

：Residential Properties：Healthcare Facilities：Accommodations

Aomori・Akita

2 props. 0.8％

Osaka Metropolitan Area

Total

Osaka, Kyoto, Hyogo, Shiga

35 props.

175 props.

22.3 ％

Miyagi3 props. 1.0％
Fukuoka

Tokyo Metropolitan Area

6 props.

Tokyo, Kanagawa, Saitama, Chiba

3.4％

115

props. 66.2 ％Aichi

6 props.

Hiroshima

1 prop. 0.2％

3.3％

Portfolio breakdown
Residential Properties
Family
22.3%

Room
Type

Healthcare Facilities
Nursing and healthfacilities
17.0%
Serviced senior
housing
6.4%
Facility

Studio41.6%

Private senior homes Type
(residential)
5.8%

Use

Small Family
36.1%

Other
regional areas
26.4%

Other
regional areas
9.0%

EntirePortfolioTokyo central
8 wards
33.7%

Others2.0％

Area
Other Tokyo
metropolitan
area
16.1%

Private senior homes(with nursing care)
70.8%

Tokyo 23 wards
23.8%

Tokyo
Metropolitan Area
73.6%

Osaka
metropolitan
area
49.1%

Tokyo
metropolitan
Area area
39.9%
Three Major
Metropolitan Area3
89.0%

(Note ) The percentages are based on the acquisition price of assets acquired as of September 30, 2022.

Sustainability
Initiatives for Environment
GRESB Real Estate Assessment

Environmental certification
CASBEE （Note 2）

DBJ Green Building （Note1）

7props.

S Rank 2props.

5props.

KDX Residence Ohori Harbor View
Tower

KDX Residence Hanzomon
Reacquisition May. 2022

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

Acquisition Mar. 2022

BELS

（Note3）

JHEP（Note 4）★★★ 1prop.

AA Rank 2props.

GHG emissions reduction target
KDR sets following reduction targets in CO2 emissions
from residential common area energy use (Note6)
By 2030

By 2050

40% reduction from
FY2015 baseline

Carbon-Neutral

GRESB (former Global Real Estate Sustainability
Benchmark) is a benchmark to evaluatesustainability performance of private and listed
real estate portfolio, etc. from environmental andsocial perspectives.

Support for TCFD recommendation and affiliation to the local
consortium （Note 5）
KFM has declared support for the TCFD and its recommendations
and Joined TCFD Consortium of Japan since October 2021

Note 1: “DBJ Green Building Certification” is a system established by Development Bank of Japan to support real estate that meets environmental and social
conditions.
Note 2 :CASBEE is an evaluation system for rating the environmental performance of buildings developed by Institute for Building Environment and Energy
Conservation. The system rates the overall environmental performance of buildings from the following perspectives: evaluation of environmental quality andperformance of buildings themselves and the external environmental load of buildings.
Note 3: BELS (Building-Housing Energy-efficiency Labeling System) is the third-party certification system to rate houses and buildings in accordance with duty tomake effort to label energy saving performance in the Act on Improving Energy Consumption Performance for Architectural Structures.
Note 4: Japan Habitat Evaluation and Certification Program (JHEP) provides a certificate to corporations for nature restoration efforts and nature-friendly
development works. The Program reviews the nature restoration efforts based on the contribution for biodiversity protection, the representation of local community,
and support toward healthy habitats for wildlife. JHEP was developed and has been administrated by Ecosystem Conservation Society-Japan.
Note 5: TCFD is an international initiative established by the Financial Stability Board (“FSB”) for the purpose of discussing the disclosures of climate-related
financial information and the responses by financial institutions.
Note 6: Including some retail areas.

Initiatives for Social
Social FinanceContribution to the community

 KDR became the first JP REIT to issue social bonds
in 2019 Dec
 Fundraised through 3rd social loan in Jul. 2022
 Received “Social 1 (F),” the highest rating of the“JCR Social Finance Framework Assessment”
 Providing an opportunity for investors who want tomake ESG investments has attracted a broader
range
of
investors
anddiversified
fundprocurement channels

Community revitalization
KDR contributes to local community revitalization byacquiring and operating properties related to revitalization
project of station front or former public housing andproviding restaurants or multipurpose space for residents
around to use.

Social financeSocial bonds
Series

6th

7th

Social loan
55-A

60-D

68-D

(1)Maturity

10yrs

10yrs

3yrs

7.5yrs5yrs(2)Amount￥2bil￥1.7bil

￥1bil

￥1bil

￥1.1bilJul. 2021

Dec. 2021

Jul. 2022(3)DateDec. 2019 May. 2021

(4)UseTo acquire an asset eligible for social finance or to
repay loans borrowed for the acquisition of assets
eligible for social financeIzarie Eniwa(Hokkaido, Eniwa city)

Yuimaru Hijirigaoka(Tokyo, Tama city)

Bicycle and Electric kickboard sharing service
KDR provides a space for bicycle andelectric kickboard station to improveurban mobility, to solve abandoned
bicycle issue to reduce GHG emissions, toenhance environmental awareness and to
improve health of residents.

4

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

TSE REIT index

KDR unit price

260,000
Nov.10, 2017
240,000 Announcement of merger
Jul.13 , 2018
Announcementof the 4th PO

220,000
200,000
180,000

TSE residential REIT index■ Volume (Right axis)

Feb.10 , 2020
Feb.7 , 2018
Announcement of inclusion in
index(Unit)
Feb.14 , 2022
Announcement of
the 8th PO

Feb.15 , 2021
Announcement of the 7th PO

Announcement of the 6th PO

45,00040,00035,000Feb.4 , 2019
Announcement of the 5th PO

30,000Mar.1 , 2018
Completion ofmerger

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

10,000120,000
100,000

Note 1:
Note 2:

5,000

Nov. 10 Jan. 10
2017
2018

Jul. 102018

Jan. 10
2019

Jul. 102019

Jan. 10
2020

Jul. 102020

Jan. 102021

Jul. 102021

Jan.102022

0Jul. 102022

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

Composition of Unitholders (based on number of units)■ Individuals and others ■ Financial institutions

21st Fiscal Period
1,045,758 units

20th Fiscal Period
995,883 units■ Foreign companies■ Other domestic companies■Security firms

6.3%

67.5%

17.6%

4.6%

4.0%

6.7%

67.0%

17.9%

4.1 %

4.3%

The Investment Corporation discloses a variety of information on its website, includingpress releases, financial results, property information and IR event information. The
Investment Corporation will continue to make efforts to provide information to its
unitholders in a timely manner.
https://www.kdr-reit.com/en/595

Unitholders benefit programs (21st fiscal period)

Haseko Senior Well Design Co., Ltd.
Benefits

・One-day facility site-visit(lunch included) free ofchargeEligible
PersonUnitholder and his / her spouses and his / herrelatives (within the second degree) ※A residentof the requested healthcare facility and a use inconjunction with other discount systems are
ineligible.

Facilities
Available

All of the private senior homes with nursing care
operated by HASEKO SENIOR WELL DESIGN as ofJuly 31,2022.

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

Homepage https://www.haseko-senior.co.jp/

株式会社シニアライフカンパニー
SENIOR LIFE COMPANY

Benefits

・≪Lump sum payment plan≫ Discount for the
initial lump sum payment for resident (¥ 300,000
discount)
・Trial residence free of charge (1-night, 2-day stay,with dinner and breakfast)・One-day facility site-visit (with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility anda use in conjunction with other discount systems are
ineligible
Facilities All of the private senior homes with nursing care
Available and apartment for the elderly operated by LIXILSENIOR LIFE COMPANY as of July 31,2022.
Contact +81-120-678-723
No.
Property N/Aowned by
KDR

Sompo Care Inc.
≪Lump sum payment plan≫3% discount from theinitial lump sum payment for resident
Benefits≪Monthly payment Plan≫3% discount of the amountequivalent to the rent out of the monthly payments(The rent for one month is free at some facilities)
Unitholder and his / her spouses and his / her relatives(within the second degree)※This benefit is intended for those who are moving
into our facility for the first time, a user who has
inquired this benefit through agencies, a resident of
the requested healthcare facility and a user who
wishes to receive services other than occupancy, suchas day services, short stays, etc., are excluded. Use inconjunction with other discount systems is ineligible.
The healthcare facility operated by Sompo Care Inc asof July 31,2022.
“Sompo Care LAVIERE” “Sompo Care Sompo noie” “Sompo Care Sompo no ie S”“Grapes”
Facilities (serviced housing for the elderly), Adonisplaza
Available (private senior homes (residential))
However, this benefit is available only for the facilities
directly managed by Sompo Care Inc.
Please contact Sompo Care Inc for availability.
Eligible
PersonContact
No.

+81-120-37-1865

Property Sompo Care LAVIERE Kobe Tarumi
owned by Grapes Kawasaki Shimmachi
KDR
Grapes Fujimino
Homepage https://www.sompocare.com/

Eligible
PersonHomepage https://www.felio.life/

HITOWA Care Service Co., Ltd.
Benefits

Eligible
PersonFacilities
Available

Excellent Care System Co., Ltd.
Benefits

Eligible
PersonFacilities
Available
Contact
No.

・One-day facility site-visit(with lunch) free ofchargeUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility and a
use in conjunction with other discount systems are
ineligible.

Contact
No.

・Discount on usage charge for two-monthequivalent
Unitholder and his / her spouses and his / her relatives(within the second degree)※A resident of the requested healthcare facility and an
application through agencies are ineligible
All of the private senior homes with nursing care
operated by HITOWA Care Service Co., Ltd as of July
31,2022.
+81-120-12-2943

Irise Kamata/Yuseien
Property
owned by Irise Nishioka
Izarie Eniwa Building(Irise Eniwa)
KDR
Irise Kobe Rokko
Homepage https://www.irs.jp/

All of the private senior homes with nursing care
operated by Excellent Care System Co., Ltd. as ofJuly 31,2022.
+81-44-819-5107

Excellent Nishinomiya
Property
Excellent Kitano
owned byExcellent Hanayashiki Garden Hills
KDR
Excellent Takarazuka Garden Hills
Homepage https://www.excare.co.jp/

6Nichii Carepalace Company
・Discount on initial move-in costs
Benefits

Nichii home: ¥ 100,000, Iris Garden: ¥ 50,000 (taxincluded)Unitholder and his / her spouses and his / herrelatives (within the third degree)

Eligible
PersonFacilities
Available※A user who has inquired this benefit throughagencies, a resident of the requested healthcare
facility of Nichii home or Iris garden, and an use inconjunction with other discount systems are
ineligible.
All of the private senior homes with nursing care operated by
Nichii Carepalace Company as of July 31,2021.
※Excluding facilities that are no longer operated by Nichii
Carepalace Company due to a change in operator after July
31, 2022.

CARE TWENTYONE CORPORATION
Benefits

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

Eligible
PersonUnitholder and his / her spouses and his / her relatives (within
the second degree)※A resident of the requested healthcare facility is ineligible
and a use in conjunction with other discount systems are
ineligible.

Facilities
Available

All of the private senior homes with nursing care
operated by Care twenty one Corporation as ofJuly 31,2022.

Contact +81-120-944-821
No.
Property Plaisant Grand Ota tamagawa
owned byKDR
Homepage https://www.care21.co.jp/

Contact +81-120-555-800
No.
Property Nichii Home Nakano-Minamidai
owned by Nichii Home Tama Plaza
KDR

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

株式会社エヌエムライフ

Sawayaka Club Corporation
・10% discount on usage charge for the first monthly
payment.
Benefits

Benefits

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

Eligible
PersonUnitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility anda use in conjunction with other discount systems are
ineligible.

Facilities
Available

All of the private senior homes with nursing care
operated by Sawayaka Club Corporation as of July
31,2022.

Contact +81-120-958-490
No.
Property Sawayaka Sakura Nibankan
owned by
KDR

Eligible
Person・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 ofcharge (within the three times)
Unitholder and his / her spouses and his / herrelatives (within the second degree)※A resident of the requested healthcare facility and a
use in conjunction with other discount systems are
ineligible.

Facilities Joy Stage Hachioji
Available
Contact +81-120-38-0161
No.
Property Joy Stage Hachioji
owned byKDR

Homepage https://joystage.com/

Homepage http://www.sawayakaclub.jp/(Note 1) The record date is July 31, 2022.
(Note 2) There may be restrictions on trial residence and facility tour
due to the operating condition of operators.
(Note 3) In the case of private senior homes with nursing care, those
who are not required for nursing care may not be able touse this Unitholder Benefits Program .
(Note 4) It may be necessary to consult with a care manager and takea medical checkup before trial residence.

617

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

General Outline of the Unitholder Benefit Program
1 Eligible Unitholder

Unitholders stated or recorded on the unitholders’ register of the Investment
Corporation as of July 31, 2022 are eligible for the unitholder benefit program.

Unitholders owing more than 1 unit will be entitled to the benefits as described
previous page.
Please present Semi-annual Report for the fiscal period ended July 2022
3 Method for the Use (21st fiscal period) and the paper setting forth the name, address, etc. of
the unitholder or dividend receipts, which are enclosed in the Semiof Benefits
annual Report, to the healthcare facility.
2 Contents

4 Validity Period

April 30, 2023

Q&A

About Benefit
program

How to use

Q

At which facilities will I be eligible for benefit programs?

A

Facilities offering programs are shown on the list, but applicable facility types
vary depending on each operator. Please call the operator to find out whichfacilities offer benefit programs.

Q

How can I check the details of benefit programs?

A

Details of benefit programs vary depending on each operator. Moreover,there may be some restrictions to benefit programs due to theoperational status of facilities and such. Please call the operator to findout 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 onnecessary procedures.

Q

What do I need to bring when using the program?

A

Q
A

Please bring the document enclosed with this Semi-annual Report
affixed with your address, name and other information. Some operators
or facilities may require additional confirmation documents. Pleaseconfirm the details with the relevant operator.
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 respondto your request depending on the operational status or vacancy status.
Please call the operator in advance and receive instructions before a visit.

8

II.

Asset Management Report

1. Outline of Asset Management Operation(1)

Operating Result and Financial Position
19th
20th
21st
17th
18th
From
Feb.
1,
2021
From
Aug.
1,
2021
From
Feb.
1, 2022
Unit From Feb 1, 2020From Aug. 1, 2020
to Jul. 31, 2020 to Jan. 31, 2021 to Jul. 31, 2021 to Jan. 31, 2022 to Jul. 31, 2022

Fiscal period

Operating result

Operating revenues

mil.yen

8,374

8,382

9,195

9,143

(Rental revenues)

mil.yen

8,289

8,382

8,758

8,962

9,447
9,441

Operating expenses

mil.yen

3,904

4,038

4,373

4,302

(Expenses related to rent business) mil.yen

3,005

3,060

3,333

3,257

4,597
3,549

Operating income

mil.yen

4,469

4,344

4,822

4,840

4,850

Ordinary income

mil.yen

3,808

3,632

4,147

4,119

4,122

Net income

mil.yen

3,808

3,631

4,146

4,119

4,122

Total asset

mil.yen272,960

283,172

293,176

302,410315,886%（＋6.3）（＋3.7）（＋3.5）（＋3.1）（+4.5）

Interest-bearing debt

mil.yen

135,050

145,220

146,920

155,820

159,620

Unitholders’ equity

mil.yen127,457

127,132

135,218

135,790145,258%（＋7.6）（-0.3）（＋6.4）（＋0.4）（+7.0）

Unitholders’ capital

mil.yen

125,564

mil.yen116,322
4,100

116,322

Total distribution

108,550
3,867

4,084

4,288

106.5

98.9

99.1

104.0

951,258

995,883

995,883

1,045,758(period to period change)Asset(period to period change)

Distribution per unit

Dividend payout ratio (Note 2)%

108,550
3,866
101.5

Number of investment units issued
and outstanding

unit

951,258

Net income per unit (Note 3)

yen

4,028

3,817

4,189

4,136

3,966

Unitholders’ equity per unit

yen

133,988

133,646

135,777

136,352

Distribution per unit

yen

4,065

4,066

4,117

4,101

138,902
4,101

Profit distribution

yen

4,065

4,066

4,117

4,101

4,101

Distribution in excess of profit

yen

－

－

－

－

Return on assets (Note 4)

%

1.4

1.3

1.4

1.4

1.3

Annualized (Note 5)

%

2.9

2.6

2.9

2.7

2.7

%

3.1

2.9

3.2

3.0

2.9

%

6.2

5.7

6.4

6.0

5.9

Return on net assets (Note 6)
Annualized (Note 5)
Net asset ratio
Financial indicator(period to period change)
Interest-bearing debt ratio on assets(Note 7)

46.7

44.9

46.1

44.9

46.0

（＋0.5）（-1.8）（＋1.2）（-1.2）（+1.1）

%

49.5

51.3

50.1

51.5

50.5

mil.yen

5,218

5,165

5,291

5,556

5,813

yen

5,486

5,430

5,313

5,579

5,559

mil.yen

6,751

6,825

6,971

7,295

7,557

%

5.4

5.2

5.3

5.2

5.2

mil.yen

6,235

6,347

6,346

6,655

6,744

%
properti
es
unit

5.0

4.9

4.8

4.8

4.7

151

157

161

165

173

%

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

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

Leasing NCF(Net Cash Flow)

Annualized NCF yield(Note 5,13)

Number of properties
Reference

Leased units (Residential)
Total leasable floor area (Note 14)

m²

8,319

8,755

9,027

9,250

10,039503,721.25

516,871.89

525,995.20

543,473.29

568,049.49

Occupancy ratio (Note 14)

%

96.8

96.2

97.4

97.3

97.5

Depreciation expenses

mil.yen

1,467

1,504

1,546

1,589

1,665

Capital expenditures

mil.yen

515

478

625

639

812

(Note 1)Figures are rounded down to the nearest unit. Ratios are rounded off to one decimal place

9(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)

Dividend payout ratio＝Total distribution(excluding Distribution in excess of profit)/Net income×100“Net income per unit” are calculated by dividing the net income with weighted average unit based on days.
Return on assets ＝Net income /｛(Total assets at the beginning of period + Total assets at the end of period)/2｝×100
Annualized values for the 17th fiscal period are calculated based on a period of 182 days, 184 days for 18th fiscal period, 181 days for
19th fiscal period, 184 days for 20th fiscal period, 181 days for 21st fiscal period.
Return on net assets ＝Net income / {(Total net assets at the beginning of period + Total net assets at the end of period) /2} ×100
Interest-bearing debt ratio of assets ＝Interest-bearing debt at the end of period / Total assets at the end of period×100
FFO＝Net income + Depreciation expenses + Amortization of deferred assets - Gain on sale of real estate property + Loss on sale of realestate property.
FFO per unit ＝FFO／Number of investment units issued and outstanding(rounded down to unit)
Leasing NOI＝Rental revenues －Expenses related to rent business＋Depreciation expenses
Annualized NOI yield＝Annualized NOI／Total acquisition prices of properties ×100
Leasing NCF＝ Leasing NOI－Capital expenditures
Annualized NCF yield ＝Annualized NCF／Total acquisition prices of properties ×100
Figure and ratio include for land with leasehold interest.

10（2）Outline of Asset Management Operation for the 21st Fiscal Period(ⅰ) Outline of the History of the Investment Corporation
Kenedix Residential Next Investment Corporation (the “Investment Corporation”) was established on November
15, 2011 under the Act on Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”).
On April 26, 2012, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange (Securities Code: 3278).
The Investment Corporation subsequently issued new investment units through three public offerings and by wayof third-party allotment to steadily grow its asset size through continuous investment in rental housing, which is its
primary investment target.
Moreover, seeking further growth opportunities, the Investment Corporation conducted an absorption type merger(“the Merger”) with the Investment Corporation as the surviving corporation and Japan Senior Living Investment
Corporation (“JSL”) as the absorbed corporation on March 1, 2018, and changed its name from Kenedix Residential
Investment Corporation to Kenedix Residential Next Investment Corporation.(Following the merger, theInvestment Corporation implemented a 2-for-1 investment unit split with an effective date of March 1, 2018.)
Even after the merger, the Investment Corporation procured funds through public offerings on a regular basis andpursue sustainable growth opportunities by investing in rental housing, senior homes, hotels, etc. As of the end of
the 21st fiscal period, the Investment Corporation owns a total of 173 real estate properties (total acquisition price:
290,730 million yen (Note)) consisting of 140 residential properties such as rental housings, 31 healthcare facilities
such as private senior homes with nursing care and 2 accommodation facilities such as hotels and the total numberof investment units issued and outstanding is 1,045,758 units.
The Investment Corporation entrusts the asset management to Kenedix Real Estate Fund Management, Inc. (the“Asset Management Company”), a company that was formed with personnel from Kenedix, Inc. (“Kenedix”)andadheres to the core philosophies of Kenedix. The Asset Management Company provides real estate investment
management services with flexibility and agility by flexibly pursing optimal investment opportunities and income
opportunities and agilely investing and managing based on swift information gathering and decision-making while
accurately grasping real estate-related trends.
（Note）“Acquisition price” is the sales price of each trust beneficiary interest or real estate indicated in each trust beneficiary interest sales
contract and real estate sales contract concerning the owned assets (excluding acquisition costs, adjustment in property tax and cityplanning tax, and consumption tax) and is rounded down to the nearest million yen. The appraisal value as of March 1, 2018 isindicated as the acquisition price for assets succeeded by JSL due to the merger. The same applies hereinafter.

(ⅱ) Investment Environment
During the 21st fiscal period, the Japanese economy showed signs of recovery as the impact of COVID-19 eased,
despite the affect of soaring resource prices due to the Ukraine situation.
As for the economy going forward, it is expected to recover as the effects of supply constraints eases, although it
will be subject to downward pressure from rising resource prices.
However, uncertainty in the Japanese economy remains extremely high due to trends and impact of infectious
diseases in both domestic and overseas, future situation in Ukraine, resource prices, overseas economy and pricetrends. Under these circumstances, it is necessary to closely monitor trends in financial and foreign exchange
markets and their impact on the economy and prices.
The operating environment for residential properties, which are one of the main investment targets of theInvestment Corporation, have changed due to the impact of spread of COVID-19, as preferences residential areas
and room layouts have become more diverse. However, the occupancy rates have remained stable with a flexible
management, and rents have tended to rise, mainly for larger unit types.
With regard to 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 ever experienced,
and the “aging,” or the increase in the ratio of the elderly population against total population and the increase inelderly population itself, is expected to continue going forward. In response to such trends, the number of senior
care facilities such as private senior homes with nursing care and serviced senior housing has been on the rise inrecent years. The Investment Corporation believes that demand for senior care facilities, including nursing carefacilities, will continue to increase. Even under the circumstances of the spread of the COVID-19, stable facility
operations have continued with infection prevention measures taken by the operators of each facility.
Demand for accommodation facilities has decreased substantially due to the spread of the COVID-19, and11accommodation facility operators continue to face a difficult operating environment. As the impact of COVID-19
gradually eases, accommodation demand is expected to recover, but it will take a certain amount of time to returnto the situation before the pandemic.
In the real estate investment market, investors continue to eager to invest in real estate, and active transactions are
currently taking place. Expected yields on rental housing, which is the main investment target of the Investment
Corporation, remain low, and the environment for property acquisitions is expected to remain difficult.
(Note) “Super-aging society” refers to a society with a population aging rate (ratio of the elderly population aged 65 or over against total
population) exceeding 21%, as defined by the World Health Organization and the United Nations.

(ⅲ) Operating Results(A) Management Performance
The Investment Corporation comprehensively taking into account the composition of the entire portfolio, earnings
power in the future, etc., and the Investment Corporation acquired 8 properties in total (total acquisition price: 13,161
million yen), which includes acquisitions of 5 residential properties (total acquisition price: 8,334 million yen) and 3
healthcare facilities (total acquisition price: 4,827 million yen)＜Acquired Assets＞
Property number
T-103
T-104
T-105
T-106
R-47
Residential
H-29
H-30
H-31
Healthcare

Acquisition price（million yen）（Note）
2,373
2,781
1,490
920
770
8,334
1,200
1,287
2,340
4,827
13,161

Property name
KDX Residence Umejima
KDX Residence Mizonokuchi
KDX Residence Hachioji Otsuka
KDX Residence Tsudanuma II
Serenite Koshien Plie
Subtotal
Irise Kobe Rokko
Excellent Hanayashiki Garden Hills
Excellent Takarazuka Garden Hills
Subtotal
Total(Note) “Acquisition Price” is the purchase amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest purchase contract concerning the acquired
assets, and is rounded down to the nearest million yen.

As a result of the above, as of the end of the 21st fiscal period, the Investment Corporation owned a total of 173
properties (total acquisition price: 290,730 million yen), which consist of 140 residential properties (acquisition
price: 219,333 million yen), 31 healthcare facilities (acquisition price: 66,437 million yen) and 2 accommodation
facilities (acquisition price: 4,960 million yen).
The occupancy rates of properties owned by the Investment Corporation as of the end of the 21st fiscal period(July 31, 2022) are as follows.
Occupancy rate

Residential

Tokyo Metropolitan Area
Other Regional Area
Overall
Healthcare Facilities
Accommodation
Overall (portfolio)

20th(As of January 31, 2022)
96.5%
95.6%
96.1%
99.9%
100.0%
97.3%

21st(As of July 31, 2022)
96.7%
95.8%
96.3%
99.9%
100.0%
97.5%

12

(B) 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)
During the 21st fiscal period, the Investment Corporation raised 8,801 million yen in funding by issuing 47,500
new investment units through public offering on February 24, 2022, and 440 million yen by issuing 2,375 newinvestment units through third party allotments on March 10, 2022, with the aim of allocation to funds foracquisition of specified assets.
As a result, unitholders’ capital came to 125,564 million yen as of the end of the 21st fiscal period (July 31,2022).
(Borrowing)
The Investment Corporation borrowed 3,800 million yen as funds for acquiring properties and 17,500 million
yen as funds for repaying borrowings due during the 21st fiscal period.
As a result of the foregoing, the balance of borrowings was 151,920 million yen, the balance of the interestbearing debt including the investment corporation bond was 159,620 million yen at the end of 21st period (July31, 2022) and the average remaining term of interest-bearing debt (Note 1) was 3.9 years, and the average interest
rate at the end of 21st fiscal period (Note 2) was 0.82%. The long-term debt ratio (Note 3) came to88.4%, the fixedinterest-rate ratio (Note 4) was 96.8%, and the loan to value ratio (LTV) came to 50.5%.
(Note 1)
(Note 2)

(Note 3)(Note 4)

It is calculated by weighting and averaging the remaining term of each interest-bearing debt according to the balance ofeach interest-bearing debt and rounded off to decimal place.
The average interest rate of each interest-bearing debt was calculated taking into account the upfront fee (per annum) andinterest rate swaps, etc., and the weighted average was calculated in accordance with the balance of each interest-bearingdebt.
Long-term debt ratio = (balance of long-term borrowings (excluding long-term borrowings to be repaid within one year)+ balance of investment corporation bonds (excluding investment corporation bonds to be repaid within one year)) ÷(balance of borrowings + balance of investment corporation bonds)
The long-term debt ratio that includes long-term borrowings and investment corporation bonds to be repaid within one
year is 97.2%.
The fixed interest-rate ratio = (balance of fixed interest-ratio borrowings (including borrowings for which interest rates
are substantially fixed through interest rate swap transactions, etc.) + balance of investment corporation bonds) ÷ (balanceof borrowings + balance of investment corporation bonds)（Investment Corporation Bonds)
No new investment corporation bonds were issued during the 21st fiscal period. As of the end of the 21st fiscal
period (July 31, 2022), the outstanding balance of investment corporation bonds was 7,700 million yen.
（Credit Ratings）
The status of the credit ratings as of the end of the 21st fiscal period (July 31, 2022).
Credit Rating Agency
Japan Credit Rating Agency, Ltd.(JCR)

Type
Long-term issuer rating
Bond rating

RatingAA-(Outlook : Stable)
AA-（Shelf Registration）
The Investment Corporation filed a shelf registration statement regarding investment corporation bonds(excluding short-term investment corporation bonds) on June 29, 2022 with the following overview.
Planned issuance
100,000 million yen
amountPlanned issuance
From July 7, 2022 to July 6, 2024
periodFunds for acquiring specified assets (having the meaning as set forth in the Act on
Investment Trusts and Investment Corporations, Article 2, Paragraph 1); funds for
Use of proceeds
repaying borrowings; funds for redeeming investment corporation bonds (including
short-term investment corporation bonds); funds for returning deposits; funds forpaying for repairs and maintenance, etc.; operating capital, etc.

13

(ⅳ) Overview of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues was 9,447
million yen, operating income was 4,850 million yen, ordinary income was 4,122 million yen and net income was4,122 million yen for the 21st fiscal period.
In regard to profit distributions for the 21st fiscal period, pursuant to the distribution policy in the Investment
Corporation’s articles of incorporation, the Investment Corporation has decided to apply special provisions of thetax system for investment corporations (Act on Special Measures Concerning Taxation (Act No. 26 of 1957; asamended) (“Act on Special Measures Concerning Taxation”), Article 67-15) and make distribution of 4,288,653,558
yen, which is net income plus a portion of profit carried forward from the previous fiscal year and reversal of reserve
for temporary difference adjustment, as profit distribution.
In the event that a gain on the sale of real estate, etc. occurs, the necessity of retaining the gain on the sale shall beconsidered.

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

Date
March 1,2018
March 1,2018
August 1, 2018
August 29, 2018
February 20, 2019
March 11, 2019
February 26,2020
February 25,2021
March 9, 2021
February 24, 2022
March 10, 2022

Capital transaction

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

RemarkInvestment unit split
Merger349,089

698,178―

80,13284,750782,928―

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

82,100865,028

12,47092,602

4,105

869,133

623

93,22636,500905,633

6,195

99,421

1,825

907,458309

99,73143,800951,258

8,818

108,550

42,500993,758

7,402

115,952

2,125

995,883370

116,32247,5001,043,383

8,801

125,124

2,375

1,045,758

440

125,564(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)

(Note 1) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective dateas of March 1, 2018.
(Note 2) In connection with the Merger, the Investment Corporation unit following the Investment Unit Split was allocated to every JSL
unit with 84,750 JSL units newly issued on March 1, 2018.
(Note 3) New investment units were issued at a price of ¥157,047 per unit (subscription price of ¥151,892 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 4) New investment units were issued at a price of ¥151,892 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets and repayment of borrowings.
(Note 5) New investment units were issued at a price of ¥175,500 per unit (subscription price of ¥169,740 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 6) New investment units were issued at a price of ¥169,740 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets.
(Note 7) New investment units were issued at a price of ¥208,065 per unit (subscription price of ¥201,342 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 8) New investment units were issued at a price of ¥179,985 per unit (subscription price of ¥174,170 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 9) New investment units were issued at a price of ¥174,170 per unit through the third-party allotment in order to raise funds foracquiring new properties.
(Note 10) New investment units were issued at a price of ¥191,490 per unit (subscription price of ¥185,303 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 11) New investment units were issued at a price of ¥185,303 per unit through the third-party allotment in order to raise funds foracquiring new properties.

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

17th Fiscal period
July 31, 2020

18th Fiscal period
January 31, 2021

19th Fiscal period
July 31, 2021

20th Fiscal period
January 31, 2022

21st Fiscal period
July 31, 2022

14

Highest price
Lowest price217,400

198,000

244,800

239,000

224,000

106,900

168,600

177,300

192,900

188,000（4）Distributions
The Investment Corporation intends to apply the corporate income taxation special provision (Act on Special
Measures Concerning Taxation, Article 67-15) that specifies deduction of an amount equivalent to profit distributions
as deductible expenses from an investment corporation’s taxable income, and in accordance with the distribution policy
set forth in the Investment Corporation’s certificate of incorporation, Article 38 (1), has decided to distribute 4,288,653
thousand yen, which is net income plus a portion of profit carried forward from the previous fiscal year and reversal ofreserve for temporary difference adjustment, as profit distribution.
As a result, distributions per unit for the 21st fiscal period amounted to 4,101 yen.
21st
18th
19th
20th
17th
From Feb.1, 2020 From Aug.1, 2020 From Feb.1, 2021 From Aug.1, 2021 From Feb.1, 2022
to Jul.31, 2022
to Jan.31, 2021
to Jul.31, 2021
to Jan.31, 2022
to Jul.31, 2020

Fiscal period
Unappropriated retained
earnings(Thousandyen)(Thousandyen)(Thousand
yen)
(Yen)
(Thousand
yen)
(Yen)
(Thousand
yen)
(Yen)

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

Unitcapital refund fromretained earnings for temporary
difference adjustment(Thousand
yen)

－

－

－

－

－

(Unitcapital refund fromretained earnings for temporary
difference adjustment per unit)

(Yen)

（－）

（－）

（－）

（－）

（－）

Unitcapital refunds fromdeduction of unitcapital undertax rules(Thousand
yen)

－

－

－

－

－

(Unitcapital refunds fromdeduction of unitcapital undertax rules per unit)

(Yen)

（－）

（－）

（－）

（－）

（－）

Retained earnings
Total distribution(Distribution per unit)
Profit distribution(Profit distribution per unit)
Unitcapital refunds(Unitcapital refunds per unit)

4,212,398

3,997,276

4,296,284

4,335,589

4,393,566

365,534

149,461

216,234

271,473

124,913

3,866,863

3,867,815

4,100,050

4,084,116

4,288,653（4,065）（4,066）（4,117）（4,101）（4,101）

3,866,863

3,867,815

4,100,050

4,084,116

4,288,653（4,065）（4,066）（4,117）（4,101）（4,101）（5）Management Policy and Issues to Be Addressed
Outlook for Asset Management
The Investment Corporation primarily invests in residential properties mainly such as rental housing, etc., andhealthcare facilities such as private senior homes with nursing care, based on the three core strategies: “Consistent
External Growth by Making Use of Good Judgment,” “Efficient Profit Management” and “Challenge to New
Business Opportunities.”
Going forward, the Investment Corporation will continue to maximize our unitholder value by evolving into a
REIT capable of adapting to change in social/economical structures and improving its “stability” and “ability to
pursue growth,” through diversified investment in “spaces where people live and stay” encompassing residential
properties and healthcare facilities.
Based on the above two principal investment targets, the Investment Corporation newly added child-care facilities
as an investment target on September 12, 2019. As "spaces where people live and stay" they are considered to haveclose affinity with the residential properties of the Investment Corporation. In addition, from the perspective ofachieving long-term stable rental revenues and steady growth in asset size, we changed the positioning of lodging

15

facilities, which we have come to recognize as having relatively high earnings fluctuation risk due to thedeterioration of the operating environment triggered by the spread of the new coronavirus infection, to a secondary
investment target in our portfolio construction policy as of October 27, 2021.

（A）New Property Acquisitions
The Investment Corporation will invest primarily in residential and healthcare properties “spaces where people
live and stay” as its target investments. In making investments, the Investment Corporation will stringently selectreal estate etc. where stable demand from tenants and users and long-term stable revenue flows can be projectedon the basis of an individual analysis of the attributes of a particular property, as well as regional analysis taking
into account location, etc.
In residential properties, the Investment Corporation focuses on the potential earnings power of land and use“location prestige,” “location convenience” and “whether there is a special market” and other metrics to determine
investment opportunities providing rental income with medium- to long-term stability, and invests also in rental
residential properties and other residential properties 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, the Investment Corporation judges investment opportunity considering scale,characteristic of market and tenant (operator) , regional financial affairs and status of competitive facilities, etc.
and examines investment mainly in three major metropolitan area. (Three major metropolitan area refers to Tokyo
metropolitan area, Osaka metropolitan area and Nagoya metropolitan area. Osaka metropolitan area refers to thecities of Osaka, Kyoto, Nara, Hyogo and Shiga. Nagoya metropolitan area refers to the cities of Aichi, Gifu andMie. The same shall apply hereinafter.)
The Investment Corporation believes that it will be possible to acquire properties steadily by utilizing the“judgment capabilities” cultivated as a real estate investment management professional to select excellent
investment opportunities from a wide range of investment targets.
As a property acquisition channel, the Investment Corporation use not only the pipeline from Kenedix and
Kenedix Investment Partners, Inc. pursuant to the Memorandum of Understanding concerning Real Estate
Information Provisions dated October 1, 2013 (including the change after the date and calls “Support Line MOU”.
This Support Line MOU was used for i) residential properties, ii) healthcare facilities as a main target, and iii)
accommodations iv) child-care facilities as a second target and Residential REIT department is applied for thosehaving a priority consideration right to responsible for the asset management of the Investment Corporation) but
also leverage the Asset Management Company’s own network, including Jyukyo Holdings Co., Ltd., with whicha support agreement was executed on June 15, 2017 and Shinsei Bank, Limited, HASEKO Corporation, andMitsubishi UFJ Trust and Banking Corporation, with which a support agreement was executed on November 10,
2017 by the Merger, for flexible property acquisitions. In October 2021, through an extension of the capital andbusiness alliance with Kenedix, the parent company of the Asset Management Company, the Asset Management
Company entered into a support agreement between Sumitomo Mitsui Finance and Leasing Company, Limited.
and SMFL Mirai Partners Company, Limited.
We also plan to control property acquisition timing in order to acquire properties at an advantageous timing inaccordance with the future market and financing climates, and we are considering investment in silent partnership
equities and real estate-backed securities (preferred securities, etc.).

（B）Management of Owned Assets
As residential properties, with the goal of securing a rental income with medium- to long-term stability, PM
companies and the Asset Management Company work together to formulate leasing strategies in accordance withindividual property characteristics, and by closely allying with leading real estate companies experienced inregional rental markets, seek to maintain or improve occupancy rates and rent levels.
The Investment Corporation will also take into account the operation statuses of the properties and movements

16

of competing properties and seek to maintain or improve occupancy rates, raise rent levels at the time of tenantchanges, increase rent at the time of lease renewals, receive key money, reduce the time of vacancy, maintain or
improve lease renewal rates, and secure parking revenue and other auxiliary revenue and other income
opportunities to secure rent income.
The Investment Corporation will respond to requests from some tenants to reduce rents due to the COVID-19
appropriately, taking into account individual circumstances.
The Investment Corporation will further strive to cut down on restoration and other repair and maintenanceexpenses, review the electricity provider for common areas in connection with the liberalization of the electricity
market, cut costs through the use of LED lighting for common areas, and reduce tenant solicitation and othercosts.
The Investment Corporation will carry out strategic work to update common areas and enhance the value ofleased areas of the properties and continue implementing appropriate, major repairs, as necessary, while it seek
to maintain or enhance the market competitiveness of its assets.
As healthcare facilities, the Investment Corporation continues to monitor properly operational status of facilities
it owns and business status of operators by information about them and companies from operators, inspection ofoperating status and interview by visiting them and interview with managements in operating company, etc.
Considering results of monitoring, the Investment Corporation proposes to improve buildings, facilities andoperation and examines changing operators in case important issue occurs in succession of management in
operators. The Investment Corporation contracts Back-up operation conclusion with operators and support
companies in preparation of changing operators.
The Investment Corporation will manage to make internal growth by deepening relation with operators such as
value-ups based on proposal from operators and cooperation for resolving issues in operation.
The Investment Corporation will continue to monitor the impact of the COVID-19 on the lodging business, andwill take appropriate measures in consultation with operators to ensure the best possible outcome from a longterm perspective.

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

（6）Important Subsequent Events
Not applicable.
(Reference)
Acquisition of Assets
The Investment Corporation executed real estate sales contract concerning the following real estate on June 17, 2022.
Date of
Acquisition

Property
number

Property Name

Location

Previous Owner

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

（Note 3）

Tsukui Sun-shine Adachi
Adachi-ku
September 16,
H-32
Undisclosed (Note 4)
830
894
2022
(Note 1)
Tokyo
(Note 1)
The real estate sales contract associated with the to be acquired asset fall under the forward commitments, etc. by theInvestment Corporation as specified in the Financial Services Agency “Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.”(Note 2)“Acquisition Price” is the sales amount of the real estate (excluding acquisition costs, property tax, city planning tax orconsumption tax, etc.) indicated in real estate sales contract concerning the to-be acquired asset and is rounded down to thenearest million yen.
(Note 3)
“Appraisal date” is May 1, 2022.
(Note 4)Not disclosed according to seller’s intention.

17

2．Overview of the Investment Corporation（1）Unitholders’ Capital
Fiscal period
Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)17th
As of July 31,
2020

18th
As of January 31,
2021

19th
As of July 31,
2021

20th
As of January 31,
2022

21st
As of July 31,
2022

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

951,258

951,258

995,883

995,883

1,045,758

108,550

108,550

116,322

116,322

125,564

11,005

11,317

10,522

10,422

10,546

Number ofinvestment units
held

Ratio（％）（2）Matters Concerning Investment Units
Major unitholders as of July 31, 2022 are as follows.

Name

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

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

302,199

28.89

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

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

210,247

20.10

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

2-2, Otemachi 2-chome, Chiyoda-ku,
Tokyo56,3905.39

36,6403.50

17,563

1.67

17,088

1.63

15,158

1.44

12,972

1.24

11,371

1.08

11,251

1.07

690,879

66.06

2-chome,1-6 Uchisaiwai-cho 2-chome, Chiyodaku, Tokyo
11-3,
Hamamatsu-cho
2-chome,Minato-ku, Tokyo
Mitsubishi UFJ Trust and Banking Corporation
Standing proxy: The Master Trust Bankof Japan, Ltd.
Shinagawa Intercity Tower A 15-1, 2STATE STREET BANK WEST CLIENTchome, Kohnan, Minato-ku, Tokyo
TREATY 505234
Standing proxy: Mizuho Bank, Ltd.
Kenedix, Inc.

SMBC Nikko Securities Inc.

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

JP MORGAN CHASE BANK 385781

SSBTC CLIENT OMNIBUS ACCOUNTSTATE STREET BANK AND TRUSTCOMPANY 505103
Total

Shinagawa Intercity Tower A 15-1, 2chome, Kohnan, Minato-ku, Tokyo
Standing proxy: Mizuho Bank, Ltd.
11-1,Nihonbashi 3-chome, Chuo-ku,
TokyoStanding proxy:The Hong Kong andShanghai Banking Corporation Ltd.
Tokyo Branch
Shinagawa Intercity Tower A 15-1, 2chome, Kohnan, Minato-ku, Tokyo
Standing proxy: Mizuho Bank, Ltd.

(Note) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places18

（3）Matters Concerning Directors and Auditor(ⅰ) The Executive Directors, Supervisory Directors and the Independent Auditor During the 21st Fiscal
Period are as Follows.
Total amount offees
paid during theperiod(thousand yen)

Position

Name

Executive
Director

Tetsu Kawashima

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

Osamu Chiba

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

Supervisory
Director

Satoshi Ogawa(Note 1)

Osamu Utsunomiya

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

Ernst & Young ShinNihon
LLC

Other concurrent title

Ogawa CPA Office, CPA
GK Mercury Consulting, Representative Partner
Oedo-Onsen Monogatari Co., Ltd, Auditor
Ooedo Onsen Monogatari Hotels & Resorts Co., Ltd.
AuditorVisiting Professor, Keio University School of Medicine
Vice President, Medical Corporation KEN-IKU KAI
Director, Japan Association of Rehabilitation Hospital andInstitution
Director, Japan Architectural Hygiene Management
Education Center
－

-

1,500

1,500

1,500

16,050Supervisory Director may be an officer of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation.
Independent auditor's fee includes that for comfort letter preparation.

(ⅱ) Policy on Decisions to Terminate or Not Reappoint the Accounting Auditor
Dismissal of an independent auditor will be made in accordance with the Act on Investment Trusts and Investment
Corporations, and a decision not to re-appoint an independent auditor will be considered by comprehensively taking
into account the audit quality, compensation and other various circumstances by the board of directors of theInvestment Corporation.

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

Summary of Insurance Policy

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

（5）Asset Management Company, Custodian and General Administrators
The asset management company, custodian and general administrators as of the end of the 21st fiscal period are as
follows.
Classification

Name

Asset manager
CustodianKenedix Real Estate Fund Management, Inc.

General administrator (Unitholder registry)

Sumitomo Mitsui Trust Bank, Limited

Mizuho Trust & Banking Co., Ltd.

19

General administrator (Regarding bookkeeping)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.

20

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

Use

20th
21st
As of January 31, 2022
As of July 31, 2022
Total amount
Total amountComposition ratio
Composition
held
held
(%)
ratio (%)
(mil.yen)(mil.yen)(Note 5)(Note 5)Areaof assets（Note 4）

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

Residential
Trustbeneficiaryinterest in
real
estate(Note 6)(Note 2)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

Healthcare(Note 2)
(Note 3)

Other
Accommodation Tokyo Metropolitan
Area (Note 1)
Total (Trust beneficiary interest in real estate)
Real
Healthcare
Other Regional Area
(Note 2)
estate(Note 6)
Total (Real estate)
Silent partnership interest (Note7)
Bank deposits and other assets
Total assets（Note 4）

155,097

51.3

162,84651.6

54,88718.1

55,55317.6

25,421

8.4

25,325

8.0

33,79911.2

38,648

12.2

1,245

0.4

1,226

0.4

5,071

1.7

5,058

1.6

275,52291.1

288,659

91.4

173

0.1

173

0.1

173
109
26,605
302,410

0.1
0.0
8.8
100.0

173
－
27,053315,886

0.1
－
8.6
100.0

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

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

Name of property

Book value(Million yen)

T-78

KDX Residence Toyosu

7,565

6,811.38

Ratio of rental
Occupancy
revenue to total
Rate (%)
rental revenue(Note 3)(%) (Note 4)
6,811.38
100.0
1.9

R-45

KDX Residence Shukugawa Hills

7,234

17,575.39

16,906.06

Leasable area(m²) (Note 1)

Leased area(m²) (Note 2)

96.2

H-22

Tsukui Sun-shine Machida

6,965

15,553.33

15,553.33

100.0

H-10

Activa Biwa

6,296

39,649.84

39,649.84

100.0

T-102

KDX Residence
Momijizaka

5,189

4,795.16

4,472.65

T-56

KDX Residence Hanzomon

4,914

4,854.23

T-1

KDX Daikanyama Residence

4,701

R-39

KDX Residence Ohori Harbor
View Tower

H-3
T-52

2.4
Undisclosed(Note 5)

Undisclosed

Major use
Residential
Residential
Healthcare(Note 5)

Healthcare

93.3

1.3

Residential

4,796.21

98.8

1.5

Residential

5,338.99

5,200.93

97.4

1.8

Residential

4,316

11,855.63

10,859.68

91.6

2.0

Residential

Joy Stage Hachioji

3,769

13,812.27

13,812.27

100.0

KDX Residence Togoshi

3,666

4,591.76

4,428.74

Total

54,620124,837.98

122,491.09

Yokohama

Undisclosed(Note 5)

Healthcare

96.4

1.3

Residential

－

18.0

21

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

22

（3）Overview of the Portfolio（Detail of Real Estate Portfolio Assets）
The overview of assets under management of the Investment Corporation as of the end of the 21st fiscal period
Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note5)Book
value(Millionyen)

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

T-1

KDX Daikanyama Residence

7-1, Sarugakucho,Shibuya-ku,Tokyo

TBI

4,701

7,450

T-3

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

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

TBI

1,662

2,690

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

TBI

764

1,220

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

TBI

1,426

2,120

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

TBI

590

1,100

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

TBI

2,563

4,140

TBI

2,151

2,520

TBI

645

767

TBI

1,303

1,890

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

TBI

1,166

1,790

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

TBI

3,063

4,220

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

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

TBI

2,848

4,150

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

TBI

2,258

2,710

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

TBI

2,126

3,180

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

TBI

1,795

2,680

T-19 KDX Residence Azabu East

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

TBI

1,566

2,390

T-20 KDX Residence Takanawa

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

TBI

783

1,300

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

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

TBI

1,485

2,170

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

TBI

794

1,280

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,124

4,530

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1,124

1,520

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

TBI

3,180

4,820

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,295

3,480

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

TBI

1,008

1,630

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

697

1,100

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

TBI

1,268

1,730

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

TBI

888

1,330

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

TBI

784

1,120

T-33 KDX Residence Yoga

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

TBI

715

1,020

T-34 KDX Residence Shimouma

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

TBI

625

883

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

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

TBI

1,230

1,560

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

TBI

1,038

1,510

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

TBI

1,056

1,380

T-38 KDX Residence Tamagawa
KDX Residence
T-39
Monzennakacho
KDX Residence
T-40
Okachimachi
KDX Residence MotoT-41
asakusa

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

TBI

706

1,070

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

TBI

775

1,130

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

TBI

853

1,240

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

TBI

795

1,150

T-4
T-5
T-6
T-7
T-9
T-10
T-11
T-12
T-13

Cosmo Heim Motosumiyoshi
KDX Musashi Nakahara
Residence
KDX Chiba Chuo Residence
KDX Kawaguchi Saiwai-cho
Residence
KDX Residence Shirokane I

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

Residential properties

Tokyo Metropolitan Area

23

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note5)Book
value(Millionyen)

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

T-42
T-43
T-45
T-46

KDX Residence Itabashi
HonchoKDX Residence Azusawa
KDX Residence Yokohama
KannaiKDX Residence
Miyamaedaira

T-47 KDX Residence MachidaT-48 KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka

13-16, Yamatocho, Itabashi-ku, Tokyo

TBI

576

899

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

TBI

536

751

TBI

753

1,120

TBI

988

1,290

TBI

1,706

2,400

TBI

1,328

2,010

TBI

1,024

1,520

TBI

556

777

TBI

1,315

1,840

24

Use

Area

No.

Name of property

Location

Form ofownership(Note5)Book
value(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)

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

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

TBI

3,666

5,430

TBI

2,584

3,620

TBI

1,770

2,780

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,550

3,760

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

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

TBI

4,914

6,560

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

TBI

890

1,260

120-1, Yaraicho, Shinjuku-ku, Tokyo

TBI

1,362

2,510

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

TBI

2,317

2,820

T-60 KDX Residence Seijo

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

TBI

1,442

1,800

T-61 KDX Residence Akihabara

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

TBI

1,221

1,810

T-62 KDX Residence Iriya

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

TBI

1,034

1,590

T-63 KDX Residence Tachikawa

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

TBI

2,955

4,090

TBI

1,138

1,720

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

TBI

1,079

1,470

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

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

Residential properties

Tokyo Metropolitan Area

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

TBI

1,167

2,210

T-67 KDX Residence Kanda

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

TBI

700

1,280

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

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

TBI

2,873

5,150

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

TBI

1,141

1,400

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

TBI

1,225

1,910

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

TBI

795

1,270

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

TBI

549

907

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

TBI

687

1,050

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

TBI

645

911

TBI

754

1,190

TBI

882

1,290

TBI

828

1,350

T-77 KDX Residence Ryogoku

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

T-78 KDX Residence Toyosu

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

TBI

7,565

7,920

T-79 KDX Residence Asagaya

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

TBI

1,963

2,460

TBI

2,668

3,070

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

TBI

1,393

1,580

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

TBI

1,124

1,390

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

TBI

701

811

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

TBI

1,005

1,120

2-24-7 Hatagaya Shibuya-ku, Tokyo

TBI

2,619

2,870

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

TBI

972

1,060

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

TBI

775

830

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

TBI

1,955

2,320

TBI

650

650

TBI

2,671

3,130

TBI

846

914

T-75 KDX Residence Shin-otsuka
T-76 KDX Residence SakurajosuiT-80 KDX Residence Hiyoshi
T-81
T-82
T-83
T-84
T-85

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

T-86 KDX Residence Asagaya II
KDX Residence
Gakugeidaigaku
KDX Residence KamataT-88
minami
T-87

T-90 KDX Residence Mitaka

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

T-91 KDX Residence Nakanobu

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

T-89 KDX Residence Kichijoji

25

Use

Area

No.

Name of property

Location

Form ofownership(Note5)Book
value(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)

T-92 KDX Residence Ichikawa

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

TBI

874

916

T-93 KDX Residence Hatchobori

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

TBI

3,202

3,650

T-94 KDX Residence Nakaitabashi 68-11, Yayoicho, Itabashi-ku, Tokyo

TBI

1,848

1,940

T-95 KDX Residence Shonandai

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

TBI

1,551

1,650

2-6, Nakamarucho, Itabashi-ku, Tokyo

TBI

2,339

2,570

T-97 KDX Residence Tennocho

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

TBI

902

915

T-98 KDX Residence Kawasaki

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

TBI

946

1,030

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

TBI

809

887

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

TBI

3,214

3,380

4-13-35, Maehara-nishi, Funabashi-shi, Chiba

TBI

1,211

1,320

TBI

5,189

5,410

TBI

2,484

2,780

TBI

2,949

3,010

628-3, Otsuka, Hachioji-shi, Tokyo

TBI

1,616

1,590

4-13-25, Maebaranishi, Funabashi-shi, Chiba

TBI

957

966

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

TBI

879

1,390

TBI

1,003

1,590

TBI

947

1,610

TBI

2,593

3,980

TBI

1,268

2,110

TBI

1,482

2,270

TBI

745

1,110

TBI

835

1,140

TBI

451

632

TBI

476

739

TBI

2,165

2,640

TBI

833

1,110

TBI

768

1,090

TBI

747

958

TBI

399

533

T-96

T-99

KDX Residence IkebukuroWest

KDX Residence Kamataminami II

KDX Residence
Kamishakujii II
KDX Residence
T-101
Tsudanuma(Note 3)
KDX Residence Yokohama
T-102
Momijizaka
T-103 KDX Residence Umejima
KDX Residence
T-104
Mizonokuchi
KDX Residence Hachioji
T-105
OtsukaKDX Residence Tsudanuma
T-106
II
R-2 KDX Jozenjidori Residence
T-100

R-3

KDX Izumi Residence

R-4

KDX Chihaya Residence

R-7

KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

KDX Residence Odori Koen

R-5

Other Regional Area

KDX Residence Kikusui
R-10
Yojo
KDX Residence Toyohira
R-11
Koen
R-13 KDX Residence Ichiban-cho
KDX Residence Higashisakura I
KDX Residence HigashiR-17
sakura II
R-18 KDX Residence Jingumae
R-16

R-19 KDX Residence Nishi-oji
R-20 KDX Residence Saiin

6-1,
Momijigaoka,
Nishi-ku
Yokohama-shi,
Kanagawa
1-25-19, Umejima, Adachi-ku, Tokyo
3-4-29, Shinsaku, Takatsu-ku, Kawasaki-shi,
Kanagawa

26

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note5)Book
value(Millionyen)

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

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

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

TBI

1,314

1,860

TBI

1,220

1,750

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

TBI

1,284

1,557

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

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

TBI

640

1,030

(Note 4)R-27 KDX Residence Sannomiya
R-28 Ashiya Royal Homes
KDX Residence Funairi
R-29
Saiwai-cho
KDX Residence TenjinR-30
higashi II
R-32 KDX Residence Nishi Koen

Other Regional Area

Residential properties

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

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

R-41 Serenite Kita-kyuhoji
Serenite Nishinomiya
R-42
HommachiR-43 KDX Residence Nishijin
R-44 Serenite Kobe Motomachi
KDX Residence Shukugawa
R-45
Hills
KDX Residence SendaiekiR-46
higashiR-47 Serenite Koshien Plie

TBI

487

746

TBI

1,032

1,350

TBI

1,602

2,090

TBI

523

794

TBI

625

1,030

TBI

698

1,010

TBI

724

1,040

TBI

3,320

4,630

TBI

941

1,270

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

TBI

3,053

3,990

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

TBI

1,904

2,560

TBI

4,316

5,220

TBI

858

1,870

TBI

1,218

1,720

TBI

615

764

TBI

1,718

1,820

TBI

2,404

2,740

TBI

7,234

7,440

TBI

1,387

1,510

TBI

825

840

218,400

291,387

2-18, Minato 1-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
3-2, Minami 3-jo Nishi 8-chome, Chuo-ku, Sapporoshi, Hokkaido
3-15, Kitakyuhojicho 1-chome, Chuo-ku, Osaka-shi,
Osaka
5-26, Hommachi, Nishinomiya-shi, Hyogo
24-30, Nishijin 2-chome, Sawara-ku, Fukuoka-shi,
Fukuoka
1-22, Kaigandori 3-chome, Chuo-ku, Kobe-shi,
Hyogo
7-1, Hinoike-cho, Nishinomiya-shi, Hyogo
2-13 Teppocho-nihsi, Miyagino-ku, Sendai-shi,
Miyagi5-2-6, Naruo-cho, Nishinomiya-shi, Hyogo
Subtotal

H-1

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

TBI

1,061

1,070

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

TBI

1,754

2,020

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

TBI

3,769

3,960

TBI

1,041

1,170

TBI

2,719

3,050

TBI

3,181

3,400

TBI

6,965

7,490

TBI

1,710

1,700

H-27 Grapes Kawasaki Shimmachi

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

TBI

1,532

1,520

H-28 Grapes Fujimino

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

TBI

1,590

1,550

TBI

2,497

2,660

TBI

780

860

H-2
H-3

Irise Kamata/Yuseien
Nichii Home NakanoMinamidai
Joy Stage Hachioji

Healthcare Facilities

Tokyo Metropolitan Area

Other
Regional
Area

H-6

Ten

H-7

Irise Nishioka

27Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note5)Book
value(Millionyen)

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

Hokkaido
H-8

Izarie Eniwa Building

1-8-1 Aioimachi, Eniwa-shi, Hokkaido

TBI

1,501

1,770

H-9

Sawayaka Sakura Nibankan

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

TBI

886

991

TBI

6,296

6,490

TBI

2,017

2,150

1,168

1,340

892

935

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

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

TBI andRE
TBI

H-15 Excellent Kitano

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

TBI

738

800

H-16 Anesis Teradacho

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

TBI

3,371

3,640

H-17 Rococo-riha

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

TBI

1,997

2,170

H-18 Orage Suma

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

TBI

2,688

2,810

28

Appraisal value

Area

Use

No.

Name of property

Location

Form ofownership(Note 5)

Book
value
(Millionyen)

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

Healthcare Facilities

H-19 Canadian Hill

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

TBI

1,818

1,870

H-20 Anesis Hyogo

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

TBI

1,368

1,430

TBI

1,083

1,360

6-6, Okuhata, Nishinomiya-shi, Hyogo

TBI

2,815

2,820

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

TBI

1,785

1,940

4-6-3, Shinohara Hommachi, Nada-ku, Kobe-shi,
Hyogo

TBI

1,261

1,350

4-1-6, Hanayashiki Shoen, Takarazuka-shi, Hyogo

TBI

1,373

1,400

5-4-1, Hirai, Takarazuka-shi, Hyogo

TBI

2,477

2,490

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

TBI

1,226

1,340

65,37469,546

H-24 Arute Ishiyagawa
Medical-home Granda
H-25
Kurakuen
Rehabili-home Granda
H-26
Kobe Kitano
H-29 Irise Kobe Rokko
Excellent Hanayashiki
Garden Hills
Excellent Takarazuka
H-31
Garden Hills
H-30

Others

H-14 Gran Hills Ogawarako

Subtotal

Tokyo
Metropolitan Area

Accommodation
Facilities

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

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

TBI

2,436

2,370

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

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

TBI

2,621

2,600

Subtotal

5,058

4,970

Total

288,832

365,903(Note 1) “Appraisal value at the end of the fiscal period” is the appraisal value in a real property appraisal prepared, pursuant to the asset
appraisal techniques and standards in the Investment Corporation’s certificate of incorporation and the rules of the Investment Trusts
Association, Japan, by Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K. or
Tanizawa Sogo Appraisal Co., Ltd.
(Note 2) The name of property (T-57) was changed from “B-site Akihabara” on February 5, 2022. The same shall apply hereinafter.
(Note 3) The name of property (T-101) was changed from “Hulic Residence Tsudanuma” on April 1, 2022. The same shall apply hereinafter.
(Note 4) R-24 and H-22 consist of two buildings and H-4, H-10 consist of three buildings, book value and appraisal value are total amount ofeach value of the properties.
(Note 5) “TBI” represents trust beneficiary interest in real estate and “RE” represents real estate.

29

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as follows.
20th(From August 1, 2021 to January 31, 2022)

21st(From February 1, 2022 to July 31, 2022)

Area
Use

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

Name of property

T-1

KDX Daikanyama Residence

1

95.3

159

1.8

1

97.4

165

1.8

T-3

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

1

100.0

60

0.7

1

94.4

57

0.6

1

91.7

27

0.3

1

98.0

27

0.3

1

97.8

49

0.6

1

100.0

52

0.6

1

95.5

25

0.3

1

93.2

25

0.3

1

98.9

108

1.2

1

95.5

109

1.2

1

92.2

70

0.8

1

93.8

75

0.8

1

97.2

26

0.3

1

97.2

26

0.3

1

96.9

63

0.7

1

98.1

65

0.7

T-4
T-5
T-6
T-7
T-9
T-10
T-11
T-12

1

95.4

49

0.6

1

94.8

51

0.5

1

100.0

114

1.3

1

95.1

116

1.2

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

1

97.2

88

1.0

1

99.2

90

1.0

1

62.9

43

0.5

1

96.7

52

0.6

1

96.1

72

0.8

1

97.3

75

0.8

1

92.6

64

0.7

1

94.8

64

0.7

T-19 KDX Residence Azabu East

1

98.9

55

0.6

1

94.3

58

0.6

T-20 KDX Residence Takanawa

1

88.5

27

0.3

1

93.8

27

0.3

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

1

100.0

53

0.6

1

97.5

50

0.5

1

84.5

26

0.3

1

100.0

29

0.3

1

100.0

105

1.2

1

100.0

105

1.1

1

97.3

40

0.4

1

98.4

40

0.4

1

97.4

111

1.2

1

97.3

113

1.2

1

100.0

82

0.9

1

96.2

85

0.9

1

98.4

36

0.4

1

96.5

36

0.4

1

91.5

24

0.3

1

94.4

23

0.3

1

100.0

44

0.5

1

100.0

44

0.5

1

95.6

28

0.3

1

94.0

29

0.3

1

93.0

24

0.3

1

95.0

27

0.3

T-33 KDX Residence Yoga

1

100.0

24

0.3

1

95.0

26

0.3

T-34 KDX Residence Shimouma

1

93.9

20

0.2

1

96.7

20

0.2

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

1

100.0

41

0.5

1

100.0

41

0.4

1

96.0

38

0.4

1

97.3

38

0.4

1

97.2

38

0.4

1

100.0

40

0.4

T-38 KDX Residence Tamagawa
KDX Residence
T-39
Monzennakacho
KDX Residence
T-40
Okachimachi
KDX Residence MotoT-41
asakusa
KDX Residence Itabashi
T-42
Honcho

1

92.7

27

0.3

1

94.5

26

0.3

1

98.0

26

0.3

1

97.9

27

0.3

1

100.0

30

0.3

1

100.0

30

0.3

1

97.5

29

0.3

1

95.0

30

0.3

1

94.2

23

0.3

1

86.3

24

0.3

T-13

Residential properties

Tokyo Metropolitan Area

30

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

Area
Use

No.

Name of property

T-43 KDX Residence Azusawa
KDX Residence Tobu
T-44
Nerima (Note4)
KDX Residence Yokohama
T-45
KannaiKDX Residence
T-46
Miyamaedaira
T-47 KDX Residence MachidaT-48 KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka

21st(From February 1, 2022 to July 31, 2022)

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

97.9

20

0.2

1

100.0

20

0.2

－

－

13

0.2

－

－

－

－

1

91.7

34

0.4

1

95.5

34

0.4

1

95.6

36

0.4

1

97.5

37

0.4

1

96.1

64

0.7

1

92.8

65

0.7

1

100.0

47

0.5

1

96.9

47

0.5

1

94.0

34

0.4

1

100.0

36

0.4

1

96.8

18

0.2

1

100.0

18

0.2

1

97.2

40

0.5

1

100.0

40

0.4

31

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

Area
Use

No.

Name of property

21st(From February 1, 2022 to July 31, 2022)

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

Residential properties

Tokyo Metropolitan Area

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

1

97.7

122

1.4

1

96.4

124

1.3

1

95.9

83

0.9

1

95.1

84

0.9

1

92.3

64

0.7

1

92.3

65

0.7

T-55 KDX Residence Oyama

1

95.1

91

1.0

1

94.2

94

1.0

T-56 KDX Residence Hanzomon

1

96.2

128

1.4

1

98.8

137

1.5

T-57 B-Site Akihabara
KDX Residence Kagurazaka
T-58
Dori
T-59 KDX Residence Sendagi

1

100.0

24

0.3

1

46.1

5

0.1

1

94.4

51

0.6

1

94.7

52

0.6

1

100.0

68

0.8

1

93.1

68

0.7

T-60 KDX Residence Seijo

1

100.0

44

0.5

1

100.0

43

0.5

T-61 KDX Residence Akihabara

1

97.6

41

0.5

1

100.0

41

0.4

T-62 KDX Residence Iriya

1

97.1

38

0.4

1

94.3

39

0.4

T-63 KDX Residence Tachikawa

1

93.2

98

1.1

1

98.9

101

1.1

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

1

100.0

55

0.6

1

96.8

55

0.6

1

93.4

37

0.4

1

96.8

39

0.4

1

100.0

41

0.5

1

96.6

41

0.4

T-67 KDX Residence Kanda

1

95.0

28

0.3

1

94.9

29

0.3

T-68 KDX Residence Ebisu
KDX Residence NishiT-69
magomeT-70 KDX Residence Nishi-azabu
KDX Residence Azabu
T-71
Sendaizaka
KDX Residence Waseda
T-72
Tsurumaki
KDX Residence Bunkyo
T-73
Yushima
KDX Residence
T-74
Kamishakujii
T-75 KDX Residence Shin-otsuka

1

96.8

96

1.1

1

93.5

95

1.0

1

91.1

29

0.3

1

96.1

30

0.3

1

93.9

37

0.4

1

91.1

39

0.4

1

97.1

27

0.3

1

100.0

27

0.3

1

100.0

21

0.2

1

100.0

21

0.2

1

95.7

25

0.3

1

97.8

24

0.3

1

95.8

22

0.3

1

95.9

23

0.2

1

100.0

25

0.3

1

100.0

25

0.3

T-76 KDX Residce Sakurajosui

1

96.5

28

0.3

1

84.8

27

0.3

T-77 KDX Residence Ryogoku

1

100.0

28

0.3

1

92.3

29

0.3

T-78 KDX Residence Toyosu

1

100.0

182

2.0

1

100.0

182

1.9

T-79 KDX Residence Asagaya

1

93.8

51

0.6

1

97.8

52

0.6

T-80 KDX Residence Hiyoshi
KDX Residence
T-81
Kamikitazawa
T-82 KDX Residence Kaminoge

1

96.4

79

0.9

1

100.0

83

0.9

1

100.0

38

0.4

1

97.4

38

0.4

1

100.0

26

0.3

1

100.0

26

0.3

T-83 KDX Residence Kaminoge
KDX Residence NishiT-84
Funabashi
T-85 KDX Residence Hatagaya

1

90.0

18

0.2

1

100.0

19

0.2

1

91.6

27

0.3

1

98.3

28

0.3

1

93.3

60

0.7

1

92.7

61

0.7

T-86 KDX Residence Asagaya II
KDX
Residence
T-87
Gakugeidaigaku
KDX Residence KamataT-88
minami
T-89 KDX Residence Kichijoji

1

91.3

23

0.3

1

87.4

23

0.2

1

96.3

17

0.2

1

91.5

18

0.2

1

98.2

50

0.6

1

100.0

50

0.5

1

83.0

14

0.2

1

82.7

15

0.2

T-90 KDX Residence Mitaka

1

98.7

68

0.8

1

100.0

68

0.7

T-91 KDX Residence Nakanobu

1

94.6

23

0.3

1

100.0

23

0.2

T-92 KDX Residence Ichika

1

97.9

23

0.3

1

100.0

23

0.2

T-93 KDX Residence Hatchobori

1

92.1

76

0.9

1

100.0

80

0.9

32

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

Area
Use

No.

Name of property

21st(From February 1, 2022 to July 31, 2022)

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

T-94 KDX Residence Nakaitabashi

1

96.1

44

0.5

1

98.7

44

0.5

T-95 KDX Residence Shonandai
KDX Residence Ikebukuro
T-96
West
T-97 KDX Residence Tennocho

1

99.1

47

0.5

1

100.0

49

0.5

1

100.0

55

0.6

1

100.0

55

0.6

1

95.6

21

0.2

1

97.8

23

0.2

T-98 KDX Residence Kawasaki
KDX Residence KamataT-99
minami II
KDX Residence
T-100
Kamishakujii II
T-101 KDX Residence Tsudanuma
KDX Residence Yokohama
T-102
Momijizaka
T-103 KDX Residence Umejima
KDX Residence
T-104
Mizonokuchi
KDX Residence Hachioji
T-105
OtsukaKDX Residence Tsudanuma
T-106
II
R-2 KDX Jozenji Dori Residence

1

100.0

24

0.3

1

100.0

24

0.3

1

100.0

20

0.2

1

100.0

20

0.2

1

100.0

82

0.9

1

96.6

82

0.9

1

100.0

15

0.2

1

100.0

34

0.4

1

95.9

34

0.4

1

93.3

124

1.3

－

－

－

－

1

100.0

42

0.5

－

－

－

－

1

96.6

41

0.4

－

－

－

－

1

100.0

13

0.1

－

－

－

－

1

100.0

9

0.1

1

97.8

52

0.6

1

96.4

51

0.6

R-3

KDX Izumi Residence

1

87.4

41

0.5

1

97.6

42

0.4

R-4

1

93.9

47

0.5

1

95.9

47

0.5

1

93.2

109

1.2

1

96.4

111

1.2

R-7

KDX Chihaya Residence
KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

1

97.1

57

0.6

1

100.0

60

0.6

R-8

KDX Shimizu Residence

1

96.5

74

0.8

1

96.2

76

0.8

R-9

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

1

92.3

34

0.4

1

94.9

33

0.4

1

100.0

39

0.4

1

96.9

39

0.4

1

97.0

24

0.3

1

100.0

24

0.3

1

98.0

27

0.3

1

100.0

27

0.3

1

92.5

89

1.0

1

92.0

88

0.9

1

92.5

35

0.4

1

85.1

35

0.4

1

95.5

38

0.4

1

92.2

39

0.4

1

94.0

33

0.4

1

100.0

34

0.4

R-5

Other Regional Area

R-10
R-11
R-13
R-16
R-17
R-18

R-19 KDX Residence Nishi-oji

33

Area
Use

No.

Name of property

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

21st(From February 1, 2022 to July 31, 2022)

Occupancy Rental and
Ratio of
Number of
rate at theotherrentaltenants at
end ofoperatingrevenue tothe end of
periodrevenues
total rental
period(%)(million yen) revenues(Note 1)
(Note 2)
(Note 3)(%)

Number
Occupancy Rental and
Ratio ofofrate at theotherrentaltenants
end ofoperatingrevenue toat theperiodrevenues
total rental
end of(%)(million yen) revenues
period(Note 2)
(Note 3)(%)(Note 1)Other Regional Area

Residential properties

R-20 KDX Residence Saiin

1

100.0

17

0.2

1

94.0

18

0.2

R-21 KDX Residence Namba
KDX Residence NambaR-22
minami
R-24 KDX Residence Ibaraki I・IIKDX Residence ToyonakaR-25
minami
R-26 KDX Residence Moriguchi

1

95.5

55

0.6

1

90.2

55

0.6

1

97.3

55

0.6

1

95.3

55

0.6

1

100.0

54

0.6

1

100.0

56

0.6

1

97.4

30

0.3

1

92.7

30

0.3

1

100.0

24

0.3

1

100.0

24

0.3

R-27 KDX Residence Sannomiya

1

91.1

38

0.4

1

93.3

36

0.4

R-28 Ashiya Royal Homes
KDX Residence Funairi
R-29
Saiwai-cho
KDX Residence TenjinR-30
higashi II
R-32 KDX Residence Nishi Koen
KDX Residence Hirao JosuiR-33
machi
R-35 Leopalace Flat Shin-sakae
KDX Residence Koman
R-36
YamateKDX Residence
R-37
Hommachibashi
KDX Residence MinamiR-38
kusatsu
KDX Residence Ohori
R-39
Harbor View Tower
KDX Residence MinamiR-40
sanjo
R-41 Serenite Kita-kyuhoji
Serenite Nishinomiya
R-42
HommachiR-43 KDX Residence Nishijin

1

88.3

63

0.7

1

80.3

56

0.6

1

100.0

28

0.3

1

100.0

29

0.3

1

95.2

31

0.3

1

95.2

31

0.3

1

94.5

32

0.4

1

100.0

32

0.3

1

100.0

29

0.3

1

100.0

29

0.3

1

100.0

121

1.4

1

100.0

121

1.3

1

98.4

33

0.4

1

98.4

33

0.4

1

98.6

110

1.2

1

97.1

106

1.1

1

94.6

99

1.1

1

100.0

107

1.1

1

90.1

177

2.0

1

91.6

185

2.0

1

98.3

57

0.6

1

96.4

63

0.7

1

89.9

41

0.5

1

95.1

41

0.4

1

100.0

22

0.3

1

92.5

23

0.3

1

92.7

54

0.6

1

96.1

56

0.6

R-44 KDX Residence Hiyoshi
KDX Residence Shukugawa
R-45
Hills
KDX Residence SendaiekiR-46
higashiR-47 Serenite Koshien Plie

1

97.6

78

0.9

1

96.8

77

0.8

1

97.4

225

2.5

1

96.2

223

2.4

1

89.8

39

0.4

1

95.5

41

0.4

－

－

－

－

1

97.9

17

0.2

135

96.1

7,012

78.2

140

96.3

7,343

77.8

1

100.0

1

100.0

1

100.0

1

100.0

H-3

Irise Kamata/Yuseien
NichiiHome
NakanoMinamidai
Joy Stage Hachioji

1

100.0

1

100.0

H-4

Yuimaru Hijirigaoka

1

100.0

1

100.0

H-5

Nichii Home Tama Plaza

1

100.0

1

100.0

H-21 Plaisant Grand Ota tamagawa

1

100.0

1

100.0

H-22 Tsukui Sun-shine Machida

1

100.0

1

100.0

H-23 Serabi Ebisu

1

100.0

1

100.0

H-27 Grapes Kawasaki Shimmachi

1

100.0

1

100.0

H-28 Grapes Fujimino

1

100.0

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

96.6

1

96.6

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

1

100.0

1

100.0

Subtotal
H-1

Healthcare Facilities

Tokyo Metropolitan Area

H-2

Other Regional
Area

H-10 Activa Biwa

Undisclosed Undisclosed（Note5）（Note5）

Undisclosed Undisclosed（Note5）（Note5）

34

Area
Use

No.

Name of property

Sompo Care LAVIERE Kobe
TarumiRehabili-homeGrandaH-12
Mondo Yakujin
H-13 Excellent Nishinomiya
H-11

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

21st(From February 1, 2022 to July 31, 2022)

Occupancy Rental and
Ratio of
Number of
rate at theotherrentaltenants at
end ofoperatingrevenue tothe end of
periodrevenues
total rental
period(%)(million yen) revenues(Note 1)
(Note 2)
(Note 3)(%)

Number
Occupancy Rental and
Ratio ofofrate at theotherrentaltenants
end ofoperatingrevenue toat theperiodrevenues
total rental
end of(%)(million yen) revenues
period(Note 2)
(Note 3)(%)(Note 1)

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

H-15 Excellent Kitano

1

100.0

1

100.0

H-16 Anesis Teradacho

1

100.0

1

100.0

H-17 Rococo-riha

1

100.0

1

100.0

H-18 Orage Suma

1

100.0

1

100.0

H-19 Canadian Hill

1

100.0

1

100.0

35

Area

Use

No.

Name of property

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

21st(From February 1, 2022 to July 31, 2022)

Occupancy Rental and
Ratio of
Number of
rate at theotherrentaltenants at
end ofoperatingrevenue tothe end of
periodrevenues
total rental
period(%)(million yen) revenues(Note 1)
(Note 2)
(Note 3)(%)

Number
Occupancy Rental and
Ratio ofofrate at theotherrentaltenants
end ofoperatingrevenue toat theperiodrevenues
total rental
end of(%)(million yen) revenues
period(Note 2)
(Note 3)(%)(Note 1)

H-20 Anesis Hyogo

1

100.0

H-24 Arute Ishiyagawa

1

100.0

Other Regional Area

Healthcare Facilities

100.0

1

100.0

1

100.0

1

100.0

Undisclosed Undisclosed

Medical-home Granda
H-25
Kurakuen
H-26

1

Rehabili-home Granda Kobe
KitanoH-29 Irise Kobe Rokko（Note5）（Note5）

1

100.0

1

100.0

－

－

－

－

1

100.0 Undisclosed Undisclosed（Note5）

Other
Tokyo
Metropolitan
Area
Accommodation
Facilities

H-30

Excellent Hanayashiki
Garden Hills

－

－

－

－

1

100.0

H-31

Excellent Takarazuka Garden
Hills

－

－

－

－

1

100.0

1

100.0

1

100.0

Subtotal

28

99.9

31

99.9

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

1

100.0

1

100.0

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

1

100.0

1

100.0

Subtotal

2

100.0

2

100.0

Total

165

97.3

173

97.5

H-14 Gran Hills Ogawarako

Undisclosed Undisclosed（Note5）（Note5）

1,828

20.4

Undisclosed Undisclosed（Note5）

100.0

1,981

21.0

Undisclosed Undisclosed（Note5）

8,962（Note5）（Note5）（Note5）

9,441

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 July 31, 2022, master lease agreements had been executed for all investment assets of theInvestment Corporation except for Raffine Minami-magome; the “total” for the “number of tenants” is the sum of the master leaseagreements for the properties (running number); and for the properties with no master lease agreement, the number of end tenants isentered. For reference, the total number of master lease companies is 11.
"Total number of tenants" of the healthcare facility and accommodation facility lists the total number of tenants of the master lease
contract pertaining to each asset effective as of the end of July 2022. For properties with no master lease agreement , the number of
direct contractors (tenants) by the trustee is indicated.(As of July 31, 2022, no master lease contracts have been signed in H-27 Grapes
Kawasaki Shimmachi and H-28 Grapes Fujimino.)(Note2) The “occupancy rate” = leased area / leasable area x 100. The “total” for the “occupancy rate” column is the occupancy rate for the
portfolio as a whole.
(Note3) “Rental and other operating revenues” is the sum of a property’s rental business income for each fiscal period.
(Note4) (T-44) KDX Residence Tobu Nerima was sold on December 16, 2021.
(Note5) The Investment Corporation has not obtained consent from the tenant to release this information.

（4）Details of Specified Transaction
The details of specified transaction at the end of 21st fiscal period are as follows.
Contact amount (million yen)Classification

Over-the-counter transactions
Total

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

Over 1 year

(Note 1)

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

114,720

102,970

252

114,720

102,970252(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.

36

(5)

Other Assets

Real estate properties as well as beneficiary interests having real estate properties as major trust assets are all set forthin (3) Details of portfolio assets above. There are not any other specified assets the Investment Corporation owns at
the end of 21st 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.

37

4. Capital Expenditures for Property(1) Planned Capital Expenditures
The table below shows major capital expenditures for renovations, repairs and other projects that are planned forthe 22nd fiscal period ending January 31, 2023. These expenditures are for real estate owned by the Investment
Corporation and real estate in trusts in which the Investment Corporation owns trust beneficiary rights. Theseplanned projects may include some expenditure that will be recorded as expenses rather than capital expenditures
for accounting purposes.

No.

T-6

Name of property

Location

KDX Azumabashi Residence etc.

Sumidaku,Tokyo etc.

（Note）

Nagoyashi,Aichi
Bunkyo-ku,
Tokyo
Sapporo-shi,
Hokkaido
Kamikitagun, Aomori

R-35

Leopalace Flat Shin-sakae

T-5

KDX Bunkyo Sengoku Residence

R-40

KDX Residence Minami-sanjo

H-14

Gran Hills Ogawarako

R-11

KDX Residence Toyohira Koen

Sapporo-shi
Hokkaido

T-73

KDX Residence Bunkyo
YushimaBunkyo-ku
TokyoPurposeIntercomfacilities
exchange
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
Mechanicalparkingequipment
replacement
construction
Elevatingequipment
replacement
construction

Scheduled

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

From August 2022
To January 2023

198

－

－

111

－

－

105

－

－

76

－

－

50

－

－

From August 2022
To January 2023

10

－

－

From August 2022
To January 2023

7

－

－

From August 2022
To January 2023
From August 2022
To January 2023
From August 2022
To January 2023
From August 2022
To January 2023

（Note）Includes properties with number of T-45, R-13, R-16, R-18, R-19, R-20, R-21, R-22, R-25, R-27, R-30 and R-35 as well.

（2）Capital Expenditures During the 21st Fiscal Period
The table below shows major capital expenditures for renovations, repairs and other projects in the 21st fiscal period
ended July 2022. The construction cost for the period amounted to 1,211 million yen, consisting of 812 million yen
of capital expenditures and 398 million yen of repair and maintenance expenses.
No.
T-53
T-11

Name of property

Location

PurposeKDX
Residence Shinagawa-ku
Shinagawa Seaside
Tokyo
KDX
Chiba
Chuo
Chiba-shi
Residence
Chiba

Major renewal construction
Major renewal construction
Water heater
replacement
construction
Intercom facilities
exchange
construction

Hachioji-shi
Tokyo

H-3

Joy Stage Hachioji

T-45

KDX
Residence
Yokohama-shi
Yokohama Kannai
etc.
Kanagawa（Note）

R-28

Ashiya Royal Homes

Ashiya-shi
Hyogo

Major renewal construction

T-57

KDX
Akihabara II

Chiyoda-ku
Tokyo

Major renewal construction

Residence

Other
Total

Term
From February 2022
To July 2022
From February 2022
To July 2022

Capital expenditures(million yen)
71
58

From March 2022
To June 2022

50

From May 2022
To July 2022

45

From February 2022
To June 2022
From November
2021
To February 2022

41
37
508
812

（Note）Includes properties with number of T-74, R-9, R-10 and R-11 as well.

(3)

Reserved Funds for Long-term Maintenance Plan

38

In accordance with its long-term repair and maintenance plan for each property, the Investment Corporation setsaside, from the cash flow during the 21st fiscal period, repair and maintenance reserves designed to finance paymentof future medium- to long-term major repair and maintenance work.
(million yen)

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

Term
Reserve balance at the
beginning of the period
Amount of reserve
during the period
Reversal of reserves
during the period
Amount carriedforward to the next
period20th
From Aug.1, 2021
to Jan. 31, 2021

From Feb. 1, 2022
to Jul. 31, 2022

21st

921

953

982

1,015

1,036

41

29

37

50

20

9

―

4

29

3

953

982

1,015

1,036

1,052

5. Expenditures and Liabilities(1) Details of Asset Management Expenses(in thousands of yen)
20th
From August 1, 2021
to January 31, 2022

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

21st
From February 1, 2022
to July 31, 2022

684,755
15,46051,082
5,400
288,082
1,044,781

675,353
15,84652,332
4,500
299,578
1,047,610（Note）There are other asset management fees in addition to the amount set forth above, and asset management fees pertaining to property
acquisitions (20th fiscal period:122,270 thousand yen and 21st fiscal period: 131,610 thousand yen) and sold fee pertaining to property
sold (20th fiscal period: 2,900 thousand yen).

(2)

Status of Interest-bearing Debt

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

Drawdown
Date

LenderBalance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Short-term loans payable

Sumitomo Mitsui Banking Corporation

December 10, 2021

500

-

0.379

April 30, 2022

Sumitomo Mitsui Banking Corporation

January31, 2022

2,000

-

0.379

April 30, 2022

Sumitomo Mitsui Banking Corporation

February 28, 2022

-

-

0.380

April 30, 2022

Mizuho Bank, Ltd.

April 15, 2022

-

2,000

0.327

March 31, 2023

Sumitomo Mitsui Banking Corporation

May 20, 2022

-

900

0.326

April 30, 2023

Sumitomo Mitsui Banking Corporation

July 29, 2022

-

1,200

0.330

June 30, 2023

Mizuho Bank, Ltd.

July 29, 2022

-

300

0.330

June 30, 2023

2,500

4,400

Subtotal

Current portion of long-term borrowings

Sumitomo Mitsui Banking Corporation

April 30, 2014

2,000

-

1.267

April 30, 2022

Aozora Bank, Ltd.

April 30, 2014

1,500

-

1.267

April 30, 2022

MUFG Bank, Ltd.

April 30, 2014

1,000

-

1.267

April 30, 2022

Resona Bank, Ltd.

April 30, 2014

1,000

-

1.267

April 30, 2022

Aozora Bank, Ltd.

April 30, 2015

2,000

-

0.875

April 30, 2022

1,100

-

1,100

-

1,000

-

1.115

July 29, 2022

300

-

1,000

-

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

July 29, 2015

Mizuho Bank, Ltd.
Sompo Japan Insurance Inc.

Debt
Financing
MethodUse

Remarks

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

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

Sumitomo Mitsui Banking Corporation

February 26, 2021

1,000

-

0.425

Sumitomo Mitsui Banking Corporation

February 26, 2021

500

-

0.425

February 28, 2022
February 28, 2022

Mizuho Bank, Ltd.

November 14, 2014

950

950

1.083

November 30, 2022

39

Classification

Drawdown
Date

LenderBalance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Resona Bank, Ltd.

August 31, 2015

1,100

1,100

0.923

August 31, 2022

Mizuho Trust & Banking Co., Ltd.

August 31, 2015

700

700

0.923

August 31, 2022

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,000

1,000

0.509

August 31, 2022

MUFG Bank, Ltd.

August 31, 2018

400

400

0.509

August 31, 2022

Development Bank of Japan Inc.(Note 3)

August 31, 2018

1,600

1,600

0.498

August 31, 2022

Shinsei Bank, Ltd.

July 31, 2019

500

500

0.272

January31, 2023

Resona Bank, Ltd.(Note 5)

April 30, 2015

1,500

1,500

0.987

April 30, 2023

Sumitomo Mitsui Banking Corporation(Note 5)

August 31, 2017

1,500

1,500

0.501

February 28, 2023

MUFG Bank, Ltd.(Note 5)

August 31, 2017

1,500

1,500

0.501

February 28, 2023

Mizuho Bank, Ltd.(Note 5)

July 31, 2019

800

800

0.299

July 31, 2023

MUFG Bank, Ltd.(Note 5)

October 29, 2019

500

500

0.325

April 30, 2023

Shinsei Bank, Ltd.(Note 5)

January31, 2020

500

500

0.329

July 31, 2023

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

January31, 2020

300

300

0.329

July 31, 2023

Sumitomo Mitsui Trust Bank, Limited(Note 5)

January31, 2020

300

300

0.329

July 31, 2023

THE BANK OF FUKUOKA, LTD.(Note 5)

January31, 2020

200

200

0.329

July 31, 2023

Mizuho Bank, Ltd.(Note 5)

August 10, 2021

500

500

0.291

February 28, 2023

200

200

0.241

February 28, 2023

27,55014,050Mizuho Trust & Banking Co., Ltd.(Note 5)

August 10, 2021

SubtotalClassification

Balance at theBalance

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

Sumitomo Mitsui Banking Corporation

400

400

MUFG Bank, Ltd.

400

400

Mizuho Bank, Ltd.

300

300

Resona Bank, Ltd.

200

200

Mizuho Trust & Banking Co., Ltd.

200

200

Aozora Bank, Ltd.

150

150

LenderDrawdown
Date

August 7, 2014

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

1.254

August 7, 2023

Long-term borrowings

Development Bank of Japan Inc.(Note 3)

August 7, 2014

500

500

1.320

August 7, 2023

MUFG Bank, Ltd.

February 5, 2015

1,200

1,200

1.105

January31, 2024

MUFG Bank, Ltd.

April 30, 2015

2,000

2,000

1.100

April 30, 2024

Sumitomo Mitsui Banking Corporation

April 30, 2015

1,000

1,000

1.265

April 30, 2025

Sumitomo Mitsui Trust Bank, Limited

August 31, 2015

950

950

1.047

August 31, 2023

MUFG Bank, Ltd.

August 31, 2015

1,700

1,700

1.169

August 31, 2024

Mizuho Bank, Ltd.

August 31, 2015

950

950

1.169

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2015

2,000

2,000

1.345

August 31, 2025

Development Bank of Japan Inc.(Note 3)

August 31, 2015

1,000

1,000

1.193

August 31, 2024

MUFG Bank, Ltd.

October 27, 2015

1,000

1,000

1.156

April 27, 2025

MUFG Bank, Ltd.

April 28, 2016

1,000

1,000

0.819

April 28, 2025

Sumitomo Mitsui Banking Corporation

April 28, 2016

2,500

2,500

0.903

April 30, 2026

MUFG Bank, Ltd.(Note 3)

August 1, 2016

1,000

1,000

0.660

July 31, 2025

Mizuho Bank, Ltd.(Note 3)

August 30, 2016

1,500

1,500

0.816

August 31, 2026

Aozora Bank, Ltd.

August 31, 2016

1,000

1,000

0.713

August 31, 2024

Sumitomo Mitsui Trust Bank, Limited

August 31, 2016

1,000

1,000

0.797

August 31, 2025

Resona Bank, Ltd.

August 31, 2016

500

500

0.797

August 31, 2025

MUFG Bank, Ltd.(Note 3)

August 31, 2016

2,000

2,000

0.670

August 31, 2025

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

August 31, 2016

500

500

0.751

August 31, 2025

Sumitomo Mitsui Banking Corporation

August 31, 2016

3,000

3,000

0.906

August 31, 2026

Development Bank of Japan Inc.(Note 3)

November 1, 2016

1,000

1,000

0.773

October 31, 2025

Resona Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Sumitomo Mitsui Trust Bank, Limited

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Debt
Financing
MethodUse

Remarks

Use

Remarks

Debt
Financing
MethodRepayment
Unsecured/of principal
in full on （Note 4） Unguaranteedmaturitydate40

Classification

LenderDrawdown
Date

Balance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Shinsei Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

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

August 22, 2017

1,200

1,200

0.928

August 22, 2027

Development Bank of Japan Inc.(Note 3)

August 22, 2017

1,000

1,000

0.928

August 22, 2027

Mizuho Bank, Ltd.(Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

THE BANK OF FUKUOKA, LTD.(Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

Aozora Bank, Ltd.

August 31, 2017

1,500

1,500

0.582

February 29, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,000

1,000

0.582

February 29, 2024

MUFG Bank, Ltd.

August 31, 2017

1,000

1,000

0.582

February 29, 2024

Mizuho Bank, Ltd.

August 31, 2017

500

500

0.624

August 31, 2024

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

August 31, 2017

500

500

0.661

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.665

February 28, 2025

Debt
Financing
MethodUse

Remarks

41

Classification

LenderDrawdown
Date

Balance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Resona Bank, Ltd.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Sumitomo Mitsui Trust Bank, Limited

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Nippon Life Insurance Company(Note 3)

July 30, 2018

500

500

0.900

January30, 2027

Sumitomo Mitsui Banking Corporation

1,500

1,500

MUFG Bank, Ltd.

1,400

1,400

Mizuho Bank, Ltd.

900

900

Development Bank of Japan Inc.

500

500

Nippon Life Insurance Company

500

500

400

400

0.799

February 2, 2026

Shinsei Bank, Ltd.

400

400

Sumitomo Mitsui Trust Bank, Limited

400

400

Mizuho Trust & Banking Co., Ltd.

400

400

Aozora Bank, Ltd.

300

300

THE BANK OF FUKUOKA, LTD.

300

300

Resona Bank, Ltd.

August 2, 2018

Debt
Financing
MethodUse

Remarks

Long-term borrowings

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,200

1,200

0.592

August 31, 2023

Aozora Bank, Ltd.

August 31, 2018

1,000

1,000

0.592

August 31, 2023

MUFG Bank, Ltd.

August 31, 2018

800

800

0.592

August 31, 2023

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,050

1,050

0.914

February 28, 2027

Resona Bank, Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Sumitomo Mitsui Trust Bank, Limited

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Bank, Ltd.

August 31, 2018

250

250

0.914

February 28, 2027

Development Bank of Japan Inc.(Note 3)

August 31, 2018

1,400

1,400

0.884

MUFG Bank, Ltd.(Note 3)

August 31, 2018

800

800

0.825

Nippon Life Insurance Company(Note 3)

September 28, 2018

700

700

0.920

Repayment
Unsecured/of principal
in full on （Note 4） UnguarantFebruary 28, 2027
eedmaturity
date
September 30, 2026

Shinsei Bank, Ltd.

September 28, 2018

1,000

1,000

1.031

September 30, 2028

Sumitomo Mitsui Trust Bank, Limited

September 28, 2018

800

800

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 28, 2018

500

500

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

June 3, 2019

400

400

0.363

November 30, 2024

Mizuho Bank, Ltd.(Note 3)

June 3, 2019

2,000

2,000

0.330

May 31, 2025

Shinsei Bank, Ltd.

June 3, 2019

500

500

0.484

November 30, 2025

Sumitomo Mitsui Banking Corporation

September 17, 2019

1,000

1,000

0.572

August 31, 2026

Resona Bank, Ltd.

October 29, 2019

450

450

0.336

April 30, 2024

MUFG Bank, Ltd.

November 29, 2019

1,500

1,500

0.600

November 30, 2026

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Banking Corporation

March 2, 2020

500

500

0.464

February 28, 2027

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Resona Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

THE BANK OF FUKUOKA, LTD.

March 2, 2020

400

400

0.414

February 28, 2027

MUFG Bank, Ltd.（Note 3）

March 2, 2020

400

400

0.450

February 28, 2027

Aozora Bank, Ltd.

March 2, 2020

200

200

0.531

February 29, 2028

MUFG Bank, Ltd.（Note 3）

March 13, 2020

600

600

0.300

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited

June 30, 2020

1,000

1,000

0.646

June 30, 2028

Shinsei Bank, Ltd.

June 30, 2020

800

800

0.646

June 30, 2028

February 28, 2027

42

Classification

Drawdown
Date

LenderLong-term borrowings

Development Bank of Japan Inc.（Note 3）
Sumitomo Mitsui Banking Corporation
Shinsei Bank, Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Trust & Banking Co., Ltd.
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
MUFG Bank, Ltd.（Note 3）
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Aozora Bank, Ltd.
Shinsei Bank, Ltd.
Daishi Hokuetsu Bank, Ltd. (Note 3)
The Bank of Yokohama, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.(Note 3)
Nippon Life Insurance Company(Note 3)
The Yamaguchi Bank, Ltd.
The Chugoku Bank, Ltd.
The 77 Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.(Note 3)
Development Bank of Japan Inc.(Note 3)
Aozora Bank, Ltd.
MUFG Bank, Ltd.(Note 3)
Sumitomo Mitsui Banking Corporation
The Chiba Bank, Ltd. (Note 3)
The Musashino Bank, Ltd. (Note 3)
THE BANK OF FUKUOKA, LTD.
The Hyakugo Bank, Ltd.
THE HACHIJUNI BANK, LTD.
The Shizuoka Bank, Ltd.
Aozora Bank, Ltd.(Note 3)
THE NISHI-NIPPON CITY BANK, LTD.
The Yamanashi Chuo Bank, Ltd.
The Yamaguchi Bank, Ltd.
The Bank of Yokohama, Ltd.
Kansai Mirai Bank, Limited
The Bank of Kyoto, Ltd.
Sumitomo Mitsui Banking Corporation
Shinkin central bank
The Keiyo Bank,Ltd.
MUFG Bank, Ltd.(Note 3)
Aozora Bank, Ltd.
Daishi Hokuetsu Bank, Ltd.(Note 3)
Aozora Bank, Ltd.
Aozora Bank, Ltd.
Nippon Life Insurance Company(Note 3)
MUFG Bank, Ltd.(Note 3)
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking Co., Ltd.
MUFG Bank, Ltd.(Note 3)
Sompo Japan Insurance Inc.(Note 3)
Shinsei Bank, Ltd.
Subtotal
Total

June 30,2020
July 29,2020
July 29,2020
July 29,2020
July 29,2020
July 29,2020
July 29,2020
July 31,2020
August 3,2020
August 31,2020
August 31,2020
September 24,2020
September 30,2020
September 30,2020
September 30,2020
September 30,2020
September 30,2020
September 30,2020
October 27,2020
November 2,2020
November 2,2020
November 30,2020
January29,2021
January29,2021
January29,2021
March 31,2021
July 30,2021
July 30,2021
July 30,2021
July 30,2021
July 30,2021
July 30,2021
August 2,2021
August 2,2021
August 2,2021
August 10,2021
August 10,2021
August 10,2021
August 10,2021
August 10,2021
August 31,2021
August 31,2021
August 31,2021
November 30,2021
November 30,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
December 10,2021
April 28,2022
April 28,2022
April 28,2022
April 28,2022
April 28,2022
April 28,2022
April 28,2022
April 28,2022
April 28,2022
June 1,2022
June 1,2022
June 1,2022
July 29,2022
July 29,2022
July 29,2022

Balance at theBalance

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

500
1,750
1,750
1,000
500
500
500
1,000
800
500
300
840
900
800
1,330
500
400
800
300
500
1,000
2,000
1,000
1,200
1,100
1,350
1,000
500
1,000
1,400
1,000
1,000
800
500
500
350
300
1,200
1,200
1,000
500
600
600
600
500
800
500
500
200
1,000
500
500
1,000
700
500
300
118,070

500
1,750
1,750
1,000
500
500
500
1,000
800
500
300
840
900
800
1,330
500
400
800
300
500
1,000
2,000
1,000
1,200
1,100
1,350
1,000
500
1,000
1,400
1,000
1,000
800
500
500
350
300
1,200
1,200
1,000
500
600
600
600
500
800
500
500
200
1,000
500
500
1,000
700
500
300
4,000
1,500
500
1,000
1,000
500
1,500
1,000
500
300
300
300
900
1,000
1,100
133,470

148,120

151,920

Averageinterest
rate(Note 1)
(Note 2)

0.616
0.691
0.641
0.641
0.641
0.641
0.641
0.686
0.637
0.640
0.690
0.648
0.658
0.658
0.658
0.558
0.608
0.550
0.637
0.478
0.585
0.617
0.599
0.409
0.359
0.677
0.252
0.350
0.467
0.598
0.575
0.700
0.358
0.358
0.358
0.533
0.433
0.585
0.575
0.638
0.540
0.525
0.602
0.325
0.325
0.230
0.314
0.314
0.314
0.529
0.561
0.561
0.631
0.631
0.703
0.703
0.447
0.466
0.509
0.225
0.354
0.350
0.632
0.681
0.610
0.225
0.425
0.425
0.225
0.380
0.550

Payment
due date

Debt
Financing
MethodUse

Remarks

June 30,2028
July 31,2028
July 31,2028
July 31,2028
July 31,2028
July 31,2028
July 31,2028
July 31,2028
July 31,2028
August 31,2028
August 31,2028
September 30,2028
September 30,2028
September 30,2028
September 30,2028
September 30,2028
September 30,2028
September 30,2028
October 31,2027
April 30,2025
October 31,2027
November 30,2027
January31,2028
January31,2025
January31,2025
March 31,2029
July 31,2024
January31,2027
July 31,2029
January31,2030
January31,2030
January31,2030
February 28,2027
February 28,2027 Repayment
February 28,2027 of principal
Unsecured/
February 28,2029
in full on （Note 4） UnguaranteedFebruary 28,2029
maturity
February 28,2030
dateFebruary 28,2030
August 31,2031
February 28,2029
February 28,2029
February 28,2030
November 30,2026
November 30,2026
November 30,2023
November 30,2025
November 30,2025
November 30,2025
May 31,2029
November 30,2029
November 30,2029
November 30,2030
November 30,2030
November 30,2031
November 30,2031
April 30, 2025
October 31,2025
October 31,2026
October 31,2023
October 31,2024
April 30,2027
October 31,2027
April 30,2028
March 31,2029
November 30,2023
May 31,2026
May 31,2026
January31,2024
August 31,2025
July 31,2027

43

（Note 1）All debts except for the following Note 3 are borrowing at a floating rate.
（Note 2）Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal places. Also, with regard
to borrowings for which interest rate swap transactions and other derivative transactions were implemented in order to hedge the interest rate
volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and other derivatives areindicated.
（Note 3）Borrowings is applied at a fixed rate.
（Note 4）All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses are included)
and repayment of debts.
（Note 5）Debts classified in current portion of long-term loans payable from the 21st fiscal period, therefor included in long-term loans payable in theprevious fiscal period.

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

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

Balance atBalance at thethe beginning
Interest rate
end of periodof period（%）(mil. yen)(mil. Yen)

Repayment dateAugust 30, 2016

1,000

1,000

0.540

August 28, 2026

August 30, 2016

1,000

1,000

0.800

August 30, 2028

November 30,
2018

1,000

1,000

0.410

November 30,
2023

November 30,
2018

1,000

1,000

0.850

November 30,
2028

December 20,
2019

2,000

2,000

0.750

December 20,
2029

0.720

May 30,2031

Repayment
methodUse

Repayment(Note 1)

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

May 31, 2021

1,700

1,700

7,700

7,700

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

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

6．Acquisitions and Sales during the 21st Fiscal Period(1) Acquisitions and Sales of Real Estate Properties and Asset-backed Securities, etc., Infrastructure Assets
and Infrastructure-related Assets
Acquisition
Type

No.

Name

Acquisition date

Sale

Acquisition
Book value Gain and loss
price
Sale price (inmillions)(million Sales date (million yen) (million
yen)yen) (million（Note 1）
（Note 2）yen)
（Note 2）
(Note 1)

Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

H-29

Irise Kobe Rokko

March 1, 2022

1,200

－

－

－

－

H-30

Excellent Hanayashiki Garden
Hills

March 1, 2022

1,287

－

－

－

－

T-103

KDX Residence Umejima

April 1, 2022

2,373

－

－

－

－

R-47

Serenite Koshien Plie

April 1, 2022

770

－

－

－

－

44

TrustBeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

H-31

Excellent Takarazuka Garden
Hills

April 1, 2022

2,340

－

－

－

－

T-104

KDX Residence Mizonokuchi

April 15, 2022

2,781

－

－

－

－

T-106

KDX Residence Tsudanuma II

May 20, 2022

920

－

－

－

－

T-105

KDX Residence
OtsukaJune 1, 2022

1,490

－

－

－

－

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

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

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

Type

No.

Property nameDate ofacquisitionor saleAcquisition
Appraisal
price or Sale
value
price
(million yen)(million yen)
(Note 2)

Appraiser

As of Appraisal
date(Note 1)

Acquisition
Acquisition
Acquisition
Acquisition
Acquisition

Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

H-29

Irise Kobe Rokko

March 1,
2022

H-30

Excellent Hanayashiki Garden
Hills

March 1,
2022

1,287

1,370

T-103 KDX Residence Umejima

April 1,
2022

2,373

2,590

R-47 Serenite Koshien Plie

April 1,
2022

770

808

April 1,
2022

2,340

2,420

H-31

Excellent Takarazuka Garden
Hills

1,200

1,320

Acquis
Trust
ition
BeneficiaryInterest

T-104 KDX Residence Mizonokuchi

April 15,
2022

2,781

3,000

Acquis
Trust
ition
BeneficiaryInterest

T-106 KDX Residence Tsudanuma II

May 20,
2022

920

966

Acquis
Trust
ition
BeneficiaryInterest

T-105 KDX Residence Hachioji Otsuka June 1, 2022

1,490

1,570

The Tanizawa
Sōgō Appraisal
Co., Ltd.
The Tanizawa
Sōgō Appraisal
Co., Ltd.
Japan Real Estate
Institute
The Tanizawa
Sōgō Appraisal
Co., Ltd.
The Tanizawa
Sōgō Appraisal
Co., Ltd.
DAIWA REALESTATEAPPRAISAL
CO., LTD.
DAIWA REALESTATEAPPRAISAL
CO., LTD.
DAIWA REALESTATEAPPRAISAL
CO., LTD.

November 30,
2021
November 30,
2021
December 1,
2021
December 1,
2021
December 1,
2021
December 1,
2021
March 1, 2022
December 1,
2021（Note 1）“Acquisition price or Sale price” are the amount identified in the purchase or sale agreement of each trust beneficiary interest(excluding expenses required for the acquisition or sale, property tax, city planning tax or consumption tax, etc.), rounded down to
the nearest whole million yen.
（Note 2）“Appraisal value” of specific assets above was calculated in accordance with the guideline of “Real Estate Appraisal Standards,
Chapter 3, Appraisal of Securitized Real Estate.”(ii) Others
With regard to transactions and contracts entered by the Investment Corporation whose values shall be
investigated based on the Act on Investment Trusts and Investment Corporations, Ernst & Young ShinNihon
LLC performs an investigation of the transactions. For the fiscal period from February 1, 2022 to July 31, 2022,
the transactions subject to such investigation were a transaction for nine interest rate swap transactions, for which
the Investment Corporation received reports from Ernst & Young ShinNihon LLC. With regard to interest rateswap, investigation was performed with respect to details of the interest swap contracts, such as the name ofcounter parties, contract amounts, the period of transactions or other matters related to the details of the relevant
OTC derivative transactions.
This survey is not a part of the audit for financial statements, and there is no guarantee of fairness of the priceand internal management system.

45

（4）Transactions with Related-Party(i) Transactions
Transaction price (million yen)

Category

Acquisition price（Note 2）
13,161 million yen

Total amountTransaction with related party
SMFL Mirai Partners Company
Total

2,487 million yen
2,487 million yen

Sale price（Note 2）－ million yen－million yen－million yen（18.9％）（18.9％）（－％）（－％）(ii) Amounts of Fees Paid
Not applicable(Note 1) A related-party, etc. is a defined as a related-party, etc. of the asset management company having executed an asset management
entrustment agreement with the Investment Corporation provided in Article 123 of the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations and Article 26, Item 27 of Rules on asset management reports, pertaining toinvestment trusts and investment corporations of the Investment Trusts Association, Japan.
(Note 2) The “Acquisition price” and the “Sale price” don’t include the related cost to the transaction, tax and dues reimbursement, consumption
tax, etc.

（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.
The information on the Balance Sheet, the Profit and Loss Statement, the Statement of Unitholders’ Equity, Notes
and the Calculation pertaining to Distributions for the 20th fiscal period are for reference only, and are not subject tothe audit by the accounting auditor in accordance with the provisions of Article 130 of the Act on Investment Trusts
and Investment Corporations in the 21st fiscal period.
In addition, the statement of cash flows is not subject to the audit by the accounting auditor in accordance with theprovisions of Section 130 of the Act on Investment Trusts and Investment Corporations. Therefore, it has not been
audited by the accounting auditor.

(2)

Change to Calculation of Depreciation AmountNot applicable(3)

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

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

(ⅰ) Acquisitions
Date of acquisition

Number of units

Number of disposal
units

Number of units held

March 1, 2018 (Note)

1

-

1

Accumulated total

1

-

1

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

46

2018, which is the effective date of the merger.

(ⅱ) Ownership

13th Fiscal Period
From February 1, 2018 to July 31, 2018
14th Fiscal Period
From August 1, 2018 to January 31, 201915th Fiscal Period
From February 1, 2019 to July 31, 2019
16th Fiscal Period
From August 1, 2019 to January 31, 2020
17th Fiscal Period
From February 1, 2020 to July 31, 2020
18th Fiscal Period
From August 1, 2020 to January 31, 2021
19th Fiscal Period
From February 1, 2021 to July 31, 2021
20th Fiscal Period
From August 1, 2021 to January 31, 2022
21st Fiscal Period
From February 1, 2022 to July 31, 2022

(5)

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

Asset held at theend of fiscal period（million yen）

Ratio to total number ofunits issued (%)

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

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

Disclosure Pertaining to Real Estate Held by Overseas Real Estate Holding Corporations
Not applicable478. Other（1） General Information
Not applicable(ii) Board of directors’ Meeting
The following is an outline of the major agreements and changes approved by the Investment Corporation's Boardof Directors during the 21st fiscal period.
Date of approval

Items

February 17, 2022

Conclusion of new investment
unit underwriting agreement

June 28, 2022

Entrustment of generaladministrative work for theissuance of investment
corporation bonds

Overview
Entrusted administrative work related to solicitation of investment units to
be issued to underwriters (SMBC Nikko Securities Co., Ltd., Mizuho
Securities Co., Ltd., Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan
Stanley Securities Co., Ltd., Daiwa Securities Co. Ltd, Tokai Tokyo Securities
Co., Ltd.).
With respect to the comprehensive resolution on the issuance of investment
corporation bonds approved on the same day, the candidate company wasapproved for the entrustment of general administrative work for the investment
corporation bonds, and the decision on other necessary matters was left to the
executive directors.

（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.

48

Financial Statements(21st Fiscal Period: From February 1, 2022 to July 31, 2022)

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

49Independent Auditor’s Report

The Board of Directors
Kenedix Residential Next Investment Corporation

OpinionWe have audited the accompanying financial statements of Kenedix Residential Next
Investment Corporation (the Company), which comprise the balance sheet as at July 31, 2022,
and the statements of income and retained earnings, changes in net assets, and cash flows for thesix-month period then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as at July 31, 2022, and its financial performance and its cash
flows for the six-month period then ended in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Other Information
The other information comprises the information included in the Semi-annual Reports that
contains audited financial statements but does not include the financial statements and our
auditor’s report thereon. Management is responsible for preparation and disclosure of the otherinformation. The Supervisory Director is responsible for overseeing the Company’s reporting
process of the other information.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management, and Supervisory Director for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.
50

In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern and disclosing, as required by accounting principles
generally accepted in Japan, matters related to going concern.
The Supervisory Director is responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
・ Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the financial statements is not expressing an opinion on the effectiveness of the Company’s
internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
・ Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation in accordance with accounting
principles generally accepted in Japan.
We communicate with the Executive Director regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide the Executive Director with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the financial statements inJapan, and to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.

51

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company whichis required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.

Ernst & Young ShinNihon LLC
Tokyo, Japan
October 25, 2022

/s/ Naohiko Sawabe
Naohiko Sawabe
Designated Engagement Partner
Certified Public Accountant/s/ Masahiro Yawata
Masahiro Yawata
Designated Engagement Partner
Certified Public Accountant

52

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of July 31, 2022
21st Fiscal Period
as of July 31, 2022

20th Fiscal Period
as of January 31, 2022

(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 8)
Cash and deposits in trust (Notes 8)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 17 and 22)
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 17 and 22)
Other
Total intangible assets
Investments and other assets
Investment securities (Notes 11 and 21)
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets¥14,043,415
11,460,934
57,05816,867
9,475
8,062
25,595,814¥13,828,613
11,153,990
236,109
10,3105,272
25,234,296

173,018
122,148,745(18,830,347)
103,318,397
1,465,983(392,101)
1,073,882
1,574,807(521,625)
1,053,181
1,239,572(211,213)
1,028,358
180,334,732
286,981,571

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

1,851,176
905
1,852,082

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

89,348940,044
324,482
1,353,875
290,187,529

109,688
89,381
1,016,936
166,099
1,382,104
277,079,225

44,10059,235
103,335¥315,886,678

48,06948,75096,819¥302,410,342

53

21st Fiscal Period
as of July 31, 2022

20th Fiscal Period
as of January 31, 2022

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥786,274¥655,849

Short-term loans payable (Notes 24)

4,400,000

2,500,000

Current portion of long-term loans payable (Notes 10, 13 and 24)
Accounts payable-otherAccrued expenses
Income taxes payable

14,050,000
386,351
59,408605

19,750,000
409,744
54,800605

Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Noncurrent liabilities

16,126

31,944

1,387,348
84,024

1,263,949
71,603

100

6,636

21,170,239

24,745,132

Investment corporation bonds (Notes 10 and 23)

7,700,000

7,700,000

Long-term loans payable (Notes 10, 13 and 24)
Tenant leasehold and security deposits in trust

133,470,000
3,731,982

125,870,000
3,464,769

4,414,784

4,671,456

68,451

68,264

Tenant lump sum deposits in trust
Asset retirement obligations (Note 16)

73,051

100,012

149,458,269

141,874,503

170,628,508

166,619,636

125,564,617

116,322,630

13,187,100

13,187,100

Reserve for temporary difference adjustments (Note 4)

1,860,000

1,880,000

Total voluntary retained earnings

1,860,000

1,880,000

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

Unappropriated retained earnings

4,393,566

4,335,589

19,440,666
145,005,284

19,402,689
135,725,319

Deferred gains or losses on hedges (Notes 10 and 13)

252,885

65,386

Total valuation and translation adjustments

252,885

65,386

Total surplus
Total unitholders' equity
Valuation and translation adjustments

Total net assets (Note 3)

145,258,169

135,790,706

Total liabilities and net assets¥315,886,678¥302,410,342

See accompanying notes to the financial statements.

54

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from February 1, 2022 to July 31, 2022
21st Fiscal Period
from February 1, 2022
to July 31, 2022

20th Fiscal Period
from August 1, 2021
to January 31, 2022

(in thousands of yen)
Operating revenues
Rent revenue-real estate (Note 6)
Other lease business revenue (Note 6)
Gain on sales of real estate property (Note 6)
Dividends income
Total operating revenues
Operating expenses
Expenses related to rent business (Note 6)
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 15)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥8,790,331
651,1656,207
9,447,705¥8,434,013
528,925
180,124
9,143,063

3,549,451
675,353
15,84652,332
4,500
299,578
4,597,062
4,850,642

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

46
151
197

42
141
184

523,531
26,386
153,526
3,968
20,728728,141
4,122,698
4,122,698

533,039
26,994
134,043
3,968
23,027721,074
4,119,960
4,119,960

605
605
4,122,093
271,473¥4,393,566

605
605
4,119,355
216,234¥4,335,589

See accompanying notes to the financial statements.

55

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from February 1, 2022 to July 31, 2022

Unitholders'
capitalBalance as of July 31, 2021 (Note 7)
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2022 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2022 (Note 7)¥116,322,630

Capital surplus¥13,187,100

Unitholders' equity
Surplus
Voluntary retained
earnings
Unappropriat
Reserve for
Total
ed retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)
¥1,900,000¥1,900,000¥4,296,284(20,000)¥116,322,630¥13,187,100(20,000)¥1,880,000(20,000)(20,000)¥1,880,000

Total
unitholders'equityTotal
surplus¥19,383,384

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

39,304¥4,335,589

19,304¥19,402,689

19,304¥135,725,319
9,241,987

9,241,987(20,000)

9,241,987¥125,564,617¥135,706,015¥13,187,100(20,000)¥1,860,000(20,000)(20,000)¥1,860,000

20,000--(4,084,116)
4,122,093(4,084,116)
4,122,093(4,084,116）
4,122,093

57,977¥4,393,566

37,977¥19,440,666

9,279,964¥145,005,284

Valuation and translation adjustments
Deferred gains orlosses on hedges

Balance as of July 31, 2021 (Note 7)
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2022 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2022 (Note 7)

Total valuationand translation
adjustments(in thousands of yen)¥(487,588)¥(487,588)

Total net assets¥135,218,427(4,100,050)
4,119,355

552,974

552,974

552,974

552,974¥65,386

552,974¥65,386

572,279¥135,790,706
9,241,987(4,084,116)
4,122,093

187,499

187,499

187,499

187,499¥252,885

187,499¥252,885

9,467,463¥145,258,169

See accompanying notes to the financial statements.

56

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from February 1, 2022 to July 31, 2022
21st Fiscal Period
from February 1, 2022
to July 31, 2022

20th Fiscal Period
from August 1, 2021
to January 31, 2022

(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in 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¥4,122,698
1,666,611
3,968
20,728(46)549,917
179,050(9,475)(6,556)(66,422)(22,584)(15,817)
123,398
76,891
15,539¥4,119,960
1,590,604
3,968
23,027(42)560,034(68,012)5,512
73,023(13,861)(34,076)
60,395(18,277)
379,169
15,389Subtotal

6,637,902

6,696,814

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

46(551,245)(2,422)42(560,700)(604)

Net cash provided by (used in) operating activities

6,084,281

6,135,552(13,866,514)(739,596)
107,000(120)
153(146,972)
414,185(299,494)
42,822(351)(13,548,175)(109,688)(126,302)
194,966(129,873)
230,795(14,488,536)(13,488,628)

5,900,000(4,000,000)
15,400,000(13,500,000)
9,210,774(4,084,773)

2,500,000
15,850,000(8,450,000)(1,000,000)(4,100,193)

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Payments for lease and guarantee deposits
Proceeds from investment securities
Payments of lease and guarantee deposits
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
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities

8,926,001

4,799,806

521,746(2,553,270)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period

24,982,604

27,535,874

Cash and cash equivalents at the end of period (Note 8)¥25,504,350¥24,982,604

See accompanying notes to the financial statements.

57

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from February 1, 2022 to July 31, 2022

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Residential Next Investment Corporation (“the Investment Corporation”) was established on November 15, 2011 under the Act on
Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On April 26, 2012, the Investment Corporation was listed on
the Real Estate Investment Trust Market of the Tokyo Stock Exchange (Securities Code: 3278). The Investment Corporation implemented a 2-for-1
split of its investment units held by unitholders set forth or recorded in the final unitholder registry on February 28, 2018 with March 1, 2018 as theeffective date. And also on March 1, 2018, the Investment Corporation conducted an absorption-type merger (“the Merger”) whereby the Investment
Corporation was the surviving corporation and Japan Senior Living Investment Corporation (“JSL”) was the dissolving corporation.
After "the Merger", the Investment Corporation raised funds through five public offerings and four third-party allotment. As of July 31, 2022, theend of the 21st fiscal period, the number of investment units issued and outstanding totaled 1,045,758 units.
The Investment Corporation is externally managed by Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”), a
company that was formed with personnel from Kenedix, Inc. and adheres to the core philosophies of Kenedix, Inc., that is, to provide management
services from the perspective of real estate investors a real estate management company. As the asset manager, the Asset Management Company
shall provide flexible and speedy real estate investment and management services based on the strategies of the Investment Corporation: “Flexible
pursuit for appropriate investment and profit opportunities with comprehension of the real estate market trends” and “Speedy execution based on
expeditious information collection and judgement.”
During the 21st fiscal period, the Investment Corporation acquired 5 residential properties (total acquisition price of ¥8,334 million) and 3
healthcare properties (total acquisition price of ¥4,827 million). As a result, the Investment Corporation has a portfolio comprised of 173 properties(total acquisition price of ¥290,730 million) as of July 31, 2022, the end of the 21st fiscal period. The portfolio consists of 140 residential properties(total acquisition price of ¥219,333 million), 31 healthcare properties (total acquisition price of ¥66,437 million) and 2 accommodation properties (totalacquisition price of ¥4,960 million).
The occupancy rates of the overall portfolio were 97.3% and 97.5% as of the end of the 20th and 21st fiscal period, respectively.
During the 20th and 21st fiscal period, the Investment Corporation made borrowings of ¥8,450 million and ¥17,500 million for the repayment ofdebt matured. During the 21st fiscal period, the Investment Corporation made new borrowings of ¥3,800 million upon acquiring properties. As aresult, the balance of borrowings as of the end of the 20th and 21st fiscal period stood at ¥148,120 million and ¥151,920 million, respectively. Thebalance of interest-bearing debt including investment corporation bonds as of the end of the 20th and 21st periods, was ¥155,820 million and¥159,620 million, respectively.
Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan (Japanese GAAP), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, the Financial
Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which were preparedin accordance with Japanese GAAP and were presented in the Securities Report of the Investment Corporation filed with the Kanto Local Finance
Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements
issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial statements
include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
The Investment Corporation fiscal period is a six-month period which ends at the end of January or July. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

58

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

Buildings

From February 1, 2022
to July 31, 2022
2-69 years

From August 1, 2021
to January 31, 2022
2-69 years

Structures

3-65 years

3-65 years

Machinery and equipment

3-40 years

3-40 years

Tools, furniture and fixtures

2-30 years

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

Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar
year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period.
Under Japanese tax regulations, the seller of the property is liable for these taxes on the property from the date of disposal to the end of the59calendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period
following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the propertyrelated taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥7,873
thousand and ¥35,972 thousand as of January 31, 2022 and July 31, 2022, respectively.
(J) Accounting for revenues
The main content of the performance obligation regarding the revenue from contracts with the customers of the Investment Corporation andthe normal point of time when satisfying the said performance obligation (normal point of time when recognizing revenue) are as follows.
1. Sale of real estate property
For the revenue from sale of real estate, etc., revenue is recorded when the buyer who is a customer gains control of the real estate by
performing the obligation of handover stipulated in the contract for real estate sales.
2. Utility charge reimbursements
For utility charge reimbursement, revenue is recorded in accordance with the supply of electricity, tap water, etc. to the lessee who is a customer
based on the lease agreement of real estate, etc. and the content of agreement incidental to it.
Of the utility charge reimbursement, for those that are determined to fall under the category of an agent by the Investment Corporation, the net
amount obtained by deducting the amount paid to other related parties supplying electricity, gas, etc. from the amount received as the fee ofelectricity, gas, etc. is recognized as revenue.
(K) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets andliabilities using the statutory tax rates.
(L) Non-deductible consumption taxes
Non-deductible consumption taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(M) Derivative Financial Instruments
The Investment Corporation enters into derivative transactions to hedge risks prescribed in its Articles of Incorporation based on its risk
management policies. The Investment Corporation hedges interest rate volatility risk of its interest payments on its borrowings by utilizing
interest rate swap as hedging instruments.
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the time of judgment of its
effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments are compared and a judgment is made basedon changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate swaps andother derivatives that meet the requirements for special treatment.
(N) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily
convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.
(O) Presentation of Amounts
Amounts of less than one thousand yen are truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and
filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios are rounded off in the accompanying
financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.

60

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 required by
the Investment Trust Act.

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

Initial amount

Balance atthebeginningof theperiodReserveduringtheperiodBalanceatthe endoftheperiodReversalduringtheperiodReason for reserve andreversal(in thousands of yen)
Appropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥1,880,000¥ -¥20,000¥1,860,000

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

As of January 31, 2022
The following summarizes reserve for temporary difference adjustments.

Initial amount

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

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

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

As of January 31, 2022
(in thousands of yen)

Total amount of commitment line contracts
Balance of loans payable outstanding
Remaining amount¥4,500,000¥4,500,000--¥4,500,000¥4,500,000

6. 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 February 1, 2022 to July 31, 2022 and from August 1, 2021
to January 31, 2022 consist of the following:61

From February 1, 2022
From August 1, 2021
to July 31, 2022
to January 31, 2022
(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥8,402,006¥8,059,188

388,325

374,825¥8,790,331¥8,434,013

Common area charges
Subtotal
Others:Parking space rental revenues

216,894

211,358

Miscellaneous

434,271

317,566

Subtotal

651,165

528,925¥9,441,497¥8,962,938

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

¥ 502,201¥ 461,343

Utilities

117,105

105,032

Taxes

573,379

532,192

Repairs and maintenance

398,804

316,759

Insurance

15,003

15,603

Trust fees

66,844

59,827

Depreciation

1,665,834

1,589,828

210,278

176,844¥3,549,451¥3,257,431¥5,892,045¥5,705,506

OthersTotal property-related expenses
C. Net operating income from real estate rental business (A-B)
Gain on sales of real estate property:
From February 1, 2022 to July 31, 2022: Not applicable
From August 1, 2021 to January 31, 2022
(in thousands of yen)
KDX Residence Tobu Nerima
Revenue from sale of real estate property¥580,000Cost of real estate property

379,169

Other sales expenses
Gain on sales of real estate property

20,705¥180,124

7. 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 February 1, 2022
to July 31, 2022
10,000,000 units

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

1,045,758units

995,883 units

Total number of investment units issued and outstanding

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

As of January 31, 2022

(in thousands of yen)
Cash and deposits¥14,043,415¥13,828,613

62

Cash and deposits in trust

11,460,934

11,153,990

Cash and cash equivalents¥25,504,350¥24,982,604

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

As of January 31, 2022

(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

515,000

521,000

Total¥527,000¥533,000

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

As of January 31, 2022

(in thousands of yen)Due in 1 year

¥4,152,082¥5,941,594

Due after 1 year

18,725,548

14,709,787

Total¥22,877,631¥20,651,381

10. 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 4 months for borrowings and also have a redemption
date of a maximum of 8 years and 10 months for investment corporation bonds as of July 31, 2022, the end of the 21st fiscal period, are exposed
to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are exposed tointerest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of the borrowings.
(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

63

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

Liquidity risk

Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by
diversifying financial institutions. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fairvalue.
(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table. Investments in TK (Note2) are excluded from the table below. Disclosure of cash and deposits , cash and deposits in trust and Short-term loans payable are omitted because
the book value of these assets is deemed a reasonable approximation of the fair value as they are cash or with short maturities.
As of July 31, 2022
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Current portion of long-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Subtotal¥14,050,000¥14,044,551¥ (5,448)

7,700,000

7,667,450(32,550)

133,470,000

133,463,068(6,931)

155,220,000

155,175,069(44,930)

Derivative transactions*¥252,885¥252,885¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of January 31, 2022
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Current portion of long-term loans payable(2) Investment corporation bonds(3) Long-term loans payable
Subtotal¥19,750,000¥19,745,024¥ (4,975)

7,700,000

7,658,870(41,130)

125,870,000

126,071,920

201,920

153,320,000

153,475,815

155,815

Derivative transactions*¥65,386¥65,386¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions.
Liabilities(1) Current portion of long-term loans payable and (3) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates arereflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment Corporation has
not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interest-

64

rate swaps is based on the present value of the total of principal and interest, accounted for together with the applicable interest-rate swaps,
discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type.)(2) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
Derivative transactions
Please refer to Note 13 “DERIVATIVE TRANSACTIONS”.
Note 2: Investment in TK
21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable
20th Fiscal Period (August 1, 2021 to January 31, 2022):
For Investment in TK , notes relating to the matters stipulated in Paragraph 4, item 1 of the "Implementation Guidance on Disclosures about
Fair Value of Financial Instruments" (Accounting Standards Board of Japan Guidance No. 19 revised on March 31, 2020) are omitted as theInvestment Corporation applies the treatment stipulated in Paragraph 27 of the "Implementation Guidance on Accounting Standard for Fair
Value Measurement" (Accounting Standards Board of Japan Guidance No. 31 issued on July 4, 2019). The net book values of equity interests
in silent partnership are ¥109,688 thousand as of January 31, 2022 on Article 8-6-2, paragraph 3 of the Regulations on Financial Statements,
note disclosures defined in item 2 of the said paragraph for equity interests in silent partnerships (Book value: 109,688 thousand yen) areomitted.
Note 3: Redemption schedule for loans payable and investment corporation bonds
As of July 31, 2022

Investment
corporation bonds
Long-term loans
payableTotal

Due in 1 year or
less

Due after 1 year
through 2 years

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

Due after 4 years
through 5 years

Due after 5 years¥ -¥1,000,000

¥ -

¥ -

¥1,000,000¥5,700,000

14,050,000

18,850,000

21,350,000

23,300,000

21,500,000

48,470,000¥14,050,000¥19,850,000¥21,350,000¥23,300,000¥22,500,000¥54,170,000

Due in 1 year or
less

Due after 1 year
through 2 years

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

Due after 4 years
through 5 years

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

As of January 31, 2022

Investment
corporation bonds
Long-term loans
payable
Total

¥

-

¥ 1,000,000

¥

-

¥

19,750,000

15,900,000

16,900,000

16,700,000

21,300,000

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

11. INVESTMENT SECURITIES
21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable
20th Fiscal Period (August 1, 2021 to January 31, 2022):
Based on Article 8-6-2, paragraph 3 of the Regulations on Financial Statements, note disclosures defined in item 2 of the said paragraph forequity interests in silent partnerships (Book value: 109,688 thousand yen) are omitted.

12. REVENUE RECOGNITION
1. Information on the breakdown of revenue from contracts with customers
21st Fiscal Period (February 1, 2022 to July 31, 2022)
Revenue from contracts with customers*
Revenue from sale of real estate, etc.
Utility charge reimbursement

Net sales to external customers－ thousand yen－ thousand yen

49,184 thousand yen

49,184 thousand yen

65Other－ thousand yen

9,398,520 thousand yen

Total

49,184 thousand yen

9,447,705 thousand yen* The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13)
and the sale of real estate, etc. subject to the “Practical Guidelines on Accounting by Transferors for
Securitization of Real Estate Using Special Purpose Companies” (Accounting System Committee Report No. 15of the Japanese Institute of Certified Public Accountants) are not included in the above amounts as they are
excluded from revenue recognition accounting standards. Moreover, the main revenue from contracts withcustomers are revenue from sale of real estate, etc. and utility charge reimbursement.
20th Fiscal Period (August 1, 2021 to January 31, 2022)
Revenue from contracts with customers*1

Net sales to external customers

Revenue from sale of real estate, etc.

580,000 thousand yen*2

180,124 thousand yen

Utility charge reimbursement

43,262 thousand yen

43,262 thousand yen

Other－ thousand yen

8,919,676 thousand yen

Total

623,262 thousand yen

9,143,063 thousand yen*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the saleof real estate, etc. subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Usin gSpecial Purpose Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified Public
Accountants) are not included in the above amounts as they are excluded from revenue recognition accounting standards.
Moreover, the main revenue from contracts with customers are revenue from sale of real estate, etc. and utility charge
reimbursement.
*2 As proceeds from sale of real estate property are recorded as gain on sale of real estate property in the statements of in comeand retained earnings, the amount calculated by deducting the cost of real estate property sales and other sales expenses
from proceeds from sale of real estate property is indicated.

2. Information utilized as the base for understanding revenue from contracts with customers
The information is as described in the notes on important accounting standards.
3. Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow generated from said
contracts and amount and period of revenue expected to be recognized in the next calculation period or thereafter from contracts withcustomers existing at the end of the current calculation period(1) Balance of contract assets and contract liabilities, etc.
21st Fiscal Period(February 1, 2022 to July 31, 2022)

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

2,969 thousand yen

3,830 thousand yen

4,864 thousand yen

2,969 thousand yen

-

-

-

-

Receivables from contracts with customers(balance at beginning of fiscal year)
Receivables from contracts with customers(balance at end of fiscal year)
Contract assets (balance at beginning of fiscal year)
Contract assets (balance at end of fiscal year)
Contract liabilities (balance at beginning of fiscal year)
Contract liabilities (balance at end of fiscal year)(2) Transaction value allocated to remaining performance obligations
Not applicable.

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

66

13. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of July 31, 2022 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodType of derivativetransactions

Hedged items

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

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

Interest rate swap
Based on the amounttransaction:
Long-term¥98,020,000¥90,520,000¥252,885 provided by counterparty
Receive/floating and loans payablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term
for interest-rate
16,700,000
12,450,000*
Receive/floating and loans payable
swaps
pay/fixed
Total¥114,720,000¥102,970,000¥252,885*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value
Accounting
method, inprinciple

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

The contract amount and the fair value of interest-rate swap transactions as of January 31, 2022 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 afterTotal
1 yearFair value(in thousandsof yen)Calculation method for
applicable fair value

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

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

14. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other21st Fiscal Period (February 1, 2022 to July 31, 2022)and 20th Fiscal Period (August 1, 2021 to January 31, 2022): Not applicable
2．Affiliated companies and other21st Fiscal Period (February 1, 2022 to July 31, 2022)and 20th Fiscal Period (August 1, 2021 to January 31, 2022): Not applicable
3．Fellow subsidiary companies and other21st Fiscal Period (February 1, 2022 to July 31, 2022)and 20th Fiscal Period (August 1, 2021 to January 31, 2022): Not applicable
4．Directors, major individual unitholders and other21st Fiscal Period (February 1, 2022 to July 31, 2022)and 20th Fiscal Period (August 1, 2021 to January 31, 2022): Not applicable67

15. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements under the Special Taxation
Measures Law of Japan are met, including a requirement that it currently distributes in excess of 90% of its net income for the fiscal period in order
to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of theInvestment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excess of 90% of its
distributable income in the form of cash distributions totaling ¥4,288 million and ¥4,084 million for the periods ended July 31, 2022 and January 31,
2022, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.01% for the periods ended July 31, 2022 and January 31, 2022. The following table summarizes thesignificant differences between the statutory tax rate and the effective tax rate.
From February 1, 2022
to July 31, 2022
31.46%

From August 1, 2021
to January 31, 2022
31.46%

Deductible cash distributions(31.08)(31.10)

Others(0.37)(0.35)

Effective tax rate

0.01%

0.01%

Statutory tax rate

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

As of January 31, 2022

(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥611,183¥628,384

Deferred gains or losses on hedges

23,01331,684

Asset retirement obligations

21,534

21,476

Amortization of leasehold right in trust

3,436

2,894

20

20

Other
Subtotal deferred tax assets

659,189

684,459

Valuation allowance(659,189)(684,459)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

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

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

Balance at the beginning of period
Accretion adjustment
Balance at the end of period¥68,264¥68,078

186

186¥68,451¥68,26468

17. 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.
21st Fiscal Period
from February 1, 2022
to July 31, 2022

20th Fiscal Period
from August 1, 2021
to January 31, 2022

(in thousands of yen)Book value
Balance at the beginning of period¥275,695,438¥264,204,787

Changes during the period
Balance at the end of period

13,137,309
288,832,748

11,490,651
275,695,438¥365,903,000¥344,484,000

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 21st fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 8 properties totaling ¥13,990,070 thousand, and the principal decrease wasdepreciation of ¥1,665,648 thousand and during the 20th fiscal period, the principal increase was the acquisition of real estate trust
beneficiary interests in 5 properties totaling ¥12,816,688 thousand, and the principal decrease was the sales of real estate trust beneficiaryinterests in 1 property totaling ¥379,169 thousand and depreciation of ¥1,589,641 thousand.
Note 3: The fair value is the appraisal value or the survey value determined by outside appraisers.
Income and loss in the fiscal periods ended July 31, 2022 and January 31, 2022 for real estate for rental purposes is listed in Note 6 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY”

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

6919. PER UNIT INFORMATION
From February 1, 2022
to July 31, 2022
Net asset value per unit

From August 1, 2021
to January 31, 2022

¥138,902

Net income per unit
Weighted average number of units (units)¥136,352¥3,966¥4,136

1,039,237

995,883

The weighted average number of units outstanding of 1,039,237 and 995,883 were used for the computation of the amount of net income perunit as of July 31, 2022 and January 31, 2022, respectively.
Net income per unit after adjusting for residual units is not included because there were no residual investment units.
The basis for calculating net income per unit is as follows:
From February 1, 2022
to July 31, 2022
Net income (in thousands of yen)

From August 1, 2021
to January 31, 2022

¥4,122,093

Net income not available to ordinary unitholders (in thousands of yen)

¥4,119,355--

Net income available to ordinary unitholders (in thousands of yen)

¥4,122,093¥4,119,355

Weighted average number of units during the period (units)

1,039,237

995,883

20. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable

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

Stock Not applicable(2)

Securities other than shares Not applicable

Securities portfolio consists of the following as of January 31, 2022
(1)

Stock Not applicable(2)

Securities other than shares
Type

Name

Silent Partnership
Equity Interests
Total

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

Face value
totalBook value

Prepaid
accruedinterest

Accruedinterest

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

109,688--

109,688--

109,688--

109,688-

Note 1: TK property fund owns trust beneficiary interests in real estate for “Serenite Koshien Plie” , “KDX Residence Umejima” and “Excellent
Takarazuka Garden Hills”.
Note 2: The assessed value is stated at the book value.

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

Land

Property,plant andequipment

Intangible
assets

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

Balance atthebeginning of
period¥173,018
173,018
115,859,756
1,335,781

Increaseduring theperiodDecreaseduring theperiod¥¥6,288,988
130,202

1,545,362

Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥173,018¥¥
173,018
122,148,745
18,830,347
1,556,646
1,465,983
392,101
38,024

Balance atthe end of
period-29,444-

1,574,807

521,625

34,828Netbalance at
end of theperiod¥173,018
173,018
103,318,397 Notes 1 and 2
1,073,882
1,053,181

1,054,703

184,869-

1,239,572

211,21334,424

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

7,429,856
14,063,361
14,063,361-

180,334,732
306,763,840
306,936,859

19,955,287
19,955,287

1,663,923
1,663,923

1,122,504

739,596-

1,862,101

10,924

1,724

1,851,176

7,762¥1,130,267¥739,596-

7,762¥1,869,864

6,857¥17,781776¥2,501905¥1,852,082¥

Remarks

1,028,358
180,334,732 Notes 1 and 2
286,808,552
286,981,571

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 January 31, 2022:
Type of asset

Land

Property,plant andequipment

Intangible
assets

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

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

Increaseduring theperiodDecreaseduring theperiod

¥

¥

351
351
4,972,427
87,220Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥173,018¥¥
173,018
115,859,756
17,273,700
1,488,852
1,335,781
354,077
35,616

Balance atthe end of
period231,812949

Netbalance at
end of theperiod¥173,018
173,018
98,586,055 Notes 1 and 2
981,7031,501,150

44,212-

1,545,362

486,797

34,214

1,058,565

941,780

113,155232

1,054,703

176,789

29,233877,913

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

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

209,724442,719442,719

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

18,291,364
18,291,364

1,587,916
1,587,916

1,122,504--

1,122,504

9,199

1,724

1,113,305-

7,762¥1,130,267

6,080¥15,280776¥2,501

1,681¥1,114,987

7,762¥1,130,267

¥

-

¥

Remarks

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

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

7123. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of July 31, 2022 are as follows.
SeriesDate of issue

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

August 30,

Balance atthebeginning of
periodDecreaseduring theperiodBalance at theend of period

Interest rate

Repayment date

Use

Remarks(Note2)

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

Total

1,000,000-

1,000,000

0.540%

August 28,2026

1,000,000-

1,000,000

0.800%

August 30,2028

1,000,000-

1,000,000

0.410%

November 30,2023

1,000,000-

1,000,000

0.850%

November 30,2028

2,000,000-

2,000,000

0.750%

December 20,2029(Note3)

Unsecured

1,700,000-

1,700,000

0.720%

May 30, 2031

(Note4)

Unsecured-¥ 7,700,000¥7,700,000¥

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

Due after 1 year
through 2 years-

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

¥ 1,000,000¥

Due after 3 years
through 4 years-¥

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

Outstanding Investment corporation bonds as of January 31, 2022 are as follows.
SeriesDate of issue

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

August 30,

Balance atthebeginning of
periodDecreaseduring theperiodBalance at theend of period

Interest rate

Repayment date

Use

Remarks(Note2)

Unsecured(in thousands of yen)

Total

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

0.200%

August 30,2021

1,000,000-

1,000,000

0.540%

August 28,2026

1,000,000-

1,000,000

0.800%

August 30,2028

1,000,000-

1,000,000

0.410%

November 30,2023

1,000,000-

1,000,000

0.850%

November 30,2028

2,000,000-

2,000,000

0.750%

December 20,2029(Note3)

Unsecured

1,700,000-

1,700,000

0.720%

May 30, 2031

(Note4)

Unsecured-¥ 7,700,000¥8,700,000¥

Note 1: Ranking pari passu among the specified investment corporation bonds.

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

Due after 1 year
through 2 years-¥ 1,000,000

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

Due after 3 years
through 4 years-¥

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

7324. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of July 31, 2022
Classification
LenderBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note
6)

Unsecured/
Unguaranteed

(Note
6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Short-term Banking Corporation
Mizuho Bank, Ltd.
loans
payableSumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Sub total
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank,
Limited
Aozora Bank, Ltd.
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Insurance Inc.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd .
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Current
MUFG Bank, Ltd
Portionof Long- Development Bank ofJapan Inc.
Term
Shinsei Bank, Limited
Loans
Payable Resona Bank,
Limited(Note 2)
Sumitomo Mitsui
Banking
Corporation(Note 2)
MUFG Bank,
Ltd.(Note 2)
Mizuho Bank,
Ltd.(Note 2)
MUFG Bank,
Ltd.(Note 2)
Shinsei Bank, Limited(Note 2)
Mizuho Trust &Banking Co.,
Ltd.(Note 2)
Sumitomo Mitsui
Trust Bank,
Limited(Note 2)
The Bank ofFukuoka, Ltd.(Note 2)
Mizuho Bank,
Ltd.(Note 2)
Mizuho Trust &Banking Co.,
Ltd.(Note 2)
Sub total¥500,000¥-¥500,000¥-

0.379%

April 30, 2022

2,000,000-

2,000,000-

0.379%

April 30, 2022-

1,500,000

1,500,000-

0.380%

April 30, 2022-

2,000,000-

2,000,000

0.327%March 31, 2023-

900,000-

900,000

0.326%

April 30, 2023-

1,200,000-

1,200,000

0.330%

June 30, 2023

2,500,000

300,000
5,900,000

4,000,000

300,000
4,400,000

2,000,000-

2,000,000-

1.267%

April 30, 2022

1,500,000
1,000,000-

1,500,000
1,000,000-

1.267%
1.267%

April 30, 2022
April 30, 2022

1,000,000-

1,000,000-

1.267%

April 30, 2022

2,000,000
1,100,000-

2,000,000
1,100,000-

0.875%

April 30, 2022

1,100,000-

1,100,000-

1,000,000
300,000-

1,000,000
300,000-

1.115%

July 29, 2022

1,000,000-

1,000,000-

1,000,000-

1,000,000

0.425%

February 28, 2022

500,000-

500,000-

950,000--

950,000

1.083%

November 30, 2022

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

1,600,000--

1,600,000

500,000--

1,500,000-

1,500,000-

500,000

0.498%(Note 5)0.272%

January 31, 2023-

1,500,000

0.987%

April 30, 2023-

1,500,000
0.501%

February 28, 2023

August 31, 2022

1,500,000--

1,500,000

800,000--

800,000

0.299%

July 31, 2023

500,000--

500,000

0.325%

April 30, 2023

500,000--

500,000

300,000--

300,000
0.329%

July 31, 2023

300,000--

300,000

200,000--

200,000

500,000--

500,000

0.291%

200,000--

200,000

0.241%

27,550,000-

13,500,000

14,050,000

February 28, 2023

74

Classification
LenderBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)1.254%

August 7, 2023

January 31, 2024
April 30, 2024

Use

Remarks(Note
6)

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

LongTerm
Loans
Payable400,000--

400,000

400,000
300,000--

400,000
300,000

200,000--

200,000

200,000--

200,000

150,000--

150,000

500,000--

500,000

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

1,200,000
2,000,000

1.320%(Note 5)
1.105%
1.100%

1,000,000--

1,000,000

1.265%

April 30, 2025

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

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

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000

1,000,000--

1,000,000

500,000--

500,000

MUFG Bank, Ltd.

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

1,000,000-

1,000,000

Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank,
LimitedSumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
DevelopmentBank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank ofFukuoka, 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,
LimitedSumitomo Mitsui
Trust Bank, Limited
Nippon Life Insurance
Company

August 7, 2023

0.660%(Note 5)0.816%(Note 5)0.713%
0.797%

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

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

August 31, 2025

3,000,000

0.906%

August 31, 2026-

1,000,000

0.773%(Note 5)October 31, 2025--

1,000,000

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

1,200,000--

1,200,000

1,000,000--

1,000,000

August 22, 2027

500,000--

500,000

0.928%(Note 5)500,000--

500,000

1,500,000--

1,500,000

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

August 31, 2024

500,000--

500,000

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

500,000--

500,000

0.900%(Note 5)January 30, 2027

August 31, 2024

75

Classification
LenderBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)0.799%

February 2, 2026

0.592%

August 31, 2023

0.914%

February 28, 2027

Use

Remarks(Note
6)

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

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

1,200,000--

1,200,000

1,000,000
800,000--

1,000,000
800,000

1,050,000--

1,050,000

500,000--

500,000

500,000--

500,000

500,000--

500,000

250,000--

250,000

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

800,000--

800,000

500,000--

500,000

400,000--

400,000

0.884%(Note 5)0.825%(Note 5)0.920%(Note 5)February 28, 2027
September 30, 2026

1.031%

September 30, 2028

0.363%

November 30, 2024

Mizuho Bank, Ltd.

2,000,000--

2,000,000

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

500,000--

500,000

0.330%(Note 5)0.484%

1,000,000--

1,000,000

0.572%

August 31, 2026

450,000--

450,000

0.336%

April 30, 2024

1,500,000
500,000--

1,500,000
500,000

0.600%

November 30, 2026

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

500,000--

500,000

500,000--

500,000

500,000--

500,000

400,000--

400,000

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

800,000--

800,000

Sumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited

May 31, 2025
November 30, 2025

0.464%

February 28, 2027
0.414%

0.450%(Note 5)0.531%
0.300%(Note 5)0.646%

February 28, 2027
February 29, 2028
February 29, 2024
June 30, 2028

76

Classification
LenderBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)

June 30, 2028

Use

Remarks(Note
6)

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

Longtermloanspayable500,000--

500,000

0.616%(Note 5)1,750,000--

1,750,000

0.691%

1,750,000
1,000,000
500,000--

1,750,000
1,000,000
500,000

July 31, 2028
0.641%

500,000--

500,000

500,000--

500,000

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

500,000
300,000--

500,000
300,000

0.640%
0.690%

August 31, 2028

840,000--

840,000

0.648%

September 30, 2028

900,000--

900,000

800,000
1,330,000--

800,000
1,330,000

500,000--

500,000

400,000--

400,000

0.658%
September 30, 2028
0.558%
0.608%MUFG Bank, Ltd

800,000--

800,000

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

300,000
500,000--

300,000
500,000

0.550%(Note 5)0.637%
0.478%

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

1,000,000
1,200,000--

1,000,000
1,200,000

0.599%
0.409%

January 31, 2028

1,100,000--

1,100,000

0.359%

1,350,000
1,000,000--

1,350,000
1,000,000

500,000--

500,000

0.677%
0.252%
0.350%(Note 5)1,000,000--

1,000,000

0.467%

July 31, 2029

1,400,000--

1,400,000

0.598%

January 31, 2030

1,000,000--

1,000,000

January 31, 2030

1,000,000--

1,000,000

0.575%(Note 5)0.700%(Note 5)800,000--

800,000

500,000--

500,000

0.358%

February 28, 2027

500,000
350,000--

500,000
350,000

0.533%

300,000--

300,000

0.433%

1,200,000--

1,200,000

0.585%

February 28, 2030

MUFG Bank, Ltd.

1,200,000--

1,200,000

0.575%(Note 5)February 28, 2030

Development Bank ofJapan Inc.

1,000,000--

1,000,000

0.638%(Note 5)

August 31, 2031

Aozora Bank, Ltd.

500,000--

500,000

0.540%

February 28, 2029
February 28, 2029
February 28, 2030

MUFG Bank, Ltd
Nippon Life Insurance
Company
The Yamaguchi
Bank, LtdThe Chugoku Bank,Ltd.
The 77 Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank,
LimitedSumitomo Mitsui
Banking Corporation

MUFG Bank, Ltd.

600,000--

600,000

0.525%(Note 5)

Sumitomo Mitsui
Banking Corporation

600,000--

600,000

0.602%

September 30, 2028
October 31, 2027
April 30, 2025

January 31, 2025
March 31, 2029
July 31, 2024
January 31, 2027

February 28, 2029

77

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

Increaseduring theperiodDecreaseduring theperiod(in thousands of yen)-

600,000

Balance at theend of period-

600,000

Averageinterest
rate(Note 3)(Note 4)

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

500,000

0.325%(Note 5)

November 30, 2026

800,000--

800,000

0.230%

November 30, 2023

500,000--

500,000

500,000--

500,000

0.314%

November 30, 2025

200,000--

200,000

1,000,000--

1,000,000

0.529%(Note 5)

May 31, 2029

500,000--

500,000
0.561%

November 30, 2029

500,000--

500,000

1,000,000--

1,000,000
0.631%

November 30, 2030

700,000--

700,000

500,000--

500,000
0.703%

November 30, 2031

300,000--

300,000-

4,000,000-

4,000,000

0.447%

April 30, 2025-

1,500,000
500,000-

1,500,000
500,000

October 31, 2025
October 31, 2026

MUFG Bank, Ltd-

1,000,000-

1,000,000

Aozora Bank, Ltd
Daishi Hokuetsu
Bank, Ltd.
Aozora Bank, Ltd
Aozora Bank, Ltd
Nippon Life Insurance
Company-

1,000,000-

1,000,000

500,000-

500,000-

1,500,000
1,000,000-

1,500,000
1,000,000

500,000-

500,000

300,000-

300,000

0.466%
0.509%
0.225%(Note 5)0.354%
0.350%(Note 5)0.632%
0.681%
0.610%(Note 5)0.225%(Note 5)300,000-

300,000

300,000-

300,000

900,000-

900,000-

1,000,000-

1,000,000

118,070,000¥148,120,000

1,100,000
15,400,000¥21,300,000¥17,500,000

1,100,000
133,470,000¥151,920,000

Aozora Bank, Ltd

LongtermloanspayableBalance at the
beginning of
periodTHE NISHI-NIPPONCITY BANK, LTD.
The Yamanashi Chuo
Bank, Ltd.
The Yamaguchi
Bank, Ltd.
The Bank of
Yokohama, Ltd.
Kansai Mirai Bank,
LimitedThe Bank of Kyoto,
Ltd.
Sumitomo Mitsui
Banking Corporation
Shinkin Central Bank
The Keiyo Bank,Ltd-

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

--MUFG Bank, Ltd.
Sompo Japan
Insurance Inc.
Shinsei Bank, Limited
Sub total
Total

0.425%-

0.225%(Note 5)0.380%(Note 5)0.550%

Use

Remarks(Note
6)

Unsecured/
Unguaranteed

October 31, 2023
October 31, 2024
April 30, 2027
October 31, 2027
April 30, 2028
March 31, 2029
November 30, 2023
May 31, 2026
January 31, 2024
August 31, 2025
July 31, 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

Due after 2 years

Due after 3 years

Due after 4 years

through 2 years

through 3 years

through 4 years

through 5 years¥ 18,850,000¥ 21,350,000

Due after 5 years(in thousands of yen)
Long-term loans payable¥ 23,300,000¥ 21,500,000¥ 48,470,000

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

78

Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.
Short-term debt and long-term debt consist of the following as of January 31, 2022
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiod¥-¥500,000-

2,000,000

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

Payment due date
(Note 7)¥-¥500,000

0.385%

April 30, 2022-

2,000,000

0.375%

April 30, 2022

0.916%

August 7, 2021

Decreaseduring theperiodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

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

2,500,000-

2,500,000

1,100,000-

1,100,000-

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

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

300,000-

300,000-

300,000-

300,000-

1,000,000-

1,000,000-

0.996%(Note 5)

August 7, 2021

600,000-

600,000-

0.945%

August 31, 2021

600,000
500,000-

600,000
500,000-

0.945%
0.945%

August 31, 2021
August 31, 2021

1,200,000-

1,200,000-

0.875%

January 31, 2022

800,000-

800,000-

0.432%

January 31, 2022

2,000,000--

2,000,000

1.267%

April 30, 2022

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

1,500,000
1,000,000

1.267%
1.267%

April 30, 2022
April 30, 2022

1,000,000--

1,000,000

1.267%

April 30, 2022

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

2,000,000
1,100,000

0.875%

April 30, 2022

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

1,000,000--

1,000,000

0.432%

February 28, 2022

500,000--

500,000

0.432%

February 28, 2022

950,000--

950,000

1.083%

November 30, 2022

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

0.509%

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

1,600,000--

1,600,000

0.498%(Note 5)500,000--

500,000

0.272%

28,200,000-

8,450,000

19,750,000

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

400,000

400,000
300,000--

400,000
300,000

200,000--

200,000

200,000--

200,000

150,000--

150,000

500,000--

500,000

1,200,000--

1,500,000--

2,000,000-

1,000,000-

950,000

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)1.254%

August 7, 2023

1,200,000

1.320%(Note 5)
1.105%

January 31, 2024

1,500,000

0.987%

April 30, 2023-

2,000,000

1.100%

April 30, 2024-

1,000,000

1.265%

April 30, 2025--

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

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

1,000,000
1,000,000

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000

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

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

0.797%

August 31, 2025

MUFG Bank, Ltd.

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

0.773%(Note 5)October 31, 2025

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

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

1,500,000

0.501%

February 28, 2023

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

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

Remarks

August 7, 2023

1.193%(Note 5)
1.156%
0.819%

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

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

(Note 6)

Unsecured/
Unguaranteed

August 31, 2025
August 31, 2025

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

80

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

Balance atthe beginningof period

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

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

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

500,000

500,000--

500,000

1,500,000--

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000--

400,000

0.799%

February 2, 2026

400,000--

400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027
February 28, 2027-

250,000--

1,400,000

800,000--

800,000(Note
6)

Unsecured/
UnguaranteedAugust 31, 2024

700,000--

700,000

1,000,000--

1,000,000

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

Mizuho Bank, Ltd.

2,000,000--

2,000,000

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

500,000
800,000--

1,000,000-

500,000

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

-

Remarks

August 31, 2024

0.914%
0.884%(Note 5)0.825%(Note 5)0.920%(Note 5)1.031%MUFG Bank, Ltd.

250,000
1,400,000

Use

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

500,000
800,000

0.330%(Note 5)0.484%
0.299%

November 30, 2025
July 31, 2023-

1,000,000

0.572%

August 31, 2026--

500,000

0.325%

April 30, 2023

450,000--

450,000

0.336%

April 30, 2024

1,500,000--

1,500,000

0.600%

November 30, 2026

May 31, 2025

81

Classification

500,000--

500,000

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

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

0.464%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

500,000--

500,000

0.414%

February 28, 2027

400,000--

400,000

0.414%

February 28, 2027

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

0.646%

June 30, 2028

800,000--

800,000

0.646%

June 30, 2028

500,000--

500,000

0.616%(Note 5)June 30, 2028

1,750,000--

1,750,000

0.691%

July 31, 2028

1,750,000--

1,750,000

0.641%

July 31, 2028

MUFG Bank, Ltd.

1,000,000--

1,000,000

0.641%

July 31, 2028

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

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

500,000--

500,000

0.641%

July 31, 2028

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

Balance atthe beginningof period

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

Sumitomo Mitsui
Trust Bank, Limited
Shinsei Bank, Limited

Long-term
loans
payableDevelopment Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited

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

Payment due date
(Note 7)Use

Remarks(Note
6)

Unsecured/
UnguaranteedJuly 31, 2023

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

500,000--

500,000

0.640%

August 31, 2028

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

300,000--

300,000

0.690%

August 31, 2028

840,000--

840,000

0.648%

September 30, 2028

900,000--

900,000

0.658%

September 30, 2028

800,000--

800,000

0.658%

September 30, 2028

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

1,330,000--

1,330,000

0.658%

September 30, 2028

500,000--

500,000

0.558%

September 30, 2028

400,000--

400,000

0.608%

September 30, 2028

MUFG Bank, Ltd

800,000--

800,000

MUFG Bank, Ltd

300,000--

300,000

0.550%(Note 5)0.637%

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

500,000--

500,000

0.478%

April 30, 2025

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

September 30, 2028
October 31, 2027

82

Classification

MUFG Bank, Ltd

1,000,000--

1,000,000

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

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

1,200,000--

1,200,000

0.409%

January 31, 2025

1,100,000--

1,100,000

0.359%

January 31, 2025

1,350,000--

1,350,000

0.677%March 31, 2029

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

1,000,000--

1,000,000

July 31, 2024

500,000--

500,000

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

1,000,000

0.467%

July 31, 2029

1,400,000--

1,400,000

0.598%

January 31, 2030

MUFG Bank, Ltd

1,000,000--

1,000,000

1,000,000--

1,000,000-

800,000-

800,000

0.358%

February 28, 2027-

500,000-

500,000

0.358%

February 28, 2027-

500,000-

500,000

0.358%

February 28, 2027-

500,000-

500,000

0.282%

February 28, 2023-

200,000-

200,000

0.232%

February 28, 2023-

350,000-

350,000

0.533%

February 28, 2029-

300,000-

300,000

0.433%

February 28, 2029-

1,200,000-

1,200,000

0.585%

February 28, 2030

Balance atthe beginningof period

Lender

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

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

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

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

1,000,000-

500,000-

500,000

MUFG Bank, Ltd.

-

600,000-

600,000

Sumitomo Mitsui
Banking Corporation-

600,000-

600,000

The Chiba Bank, Ltd.

-

600,000-

600,000-

500,000-

500,000-

800,000-

800,000

0.230%

November 30, 2023-

500,000-

500,000

0.314%

November 30, 2025-

500,000-

500,000

0.314%

November 30, 2025-

200,000-

200,000

0.314%

November 30, 2025
May 31, 2029

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

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

1,000,000-

1,000,000

0.529%(Note 5)-500,000-

500,000

0.561%

November 30, 2029-

500,000-

500,000

0.561%

November 30, 2029-

1,000,000-

1,000,000

0.631%

November 30, 2030-

700,000-

700,000

0.631%

November 30, 2030-

500,000-

500,000

0.703%

November 30, 2031

0.703%

November 30, 2031-

300,000-

300,000

110,020,000

15,850,000-

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

Unsecured/
UnguaranteedJanuary 31, 2030

1,200,000

Aozora Bank, Ltd

(Note
6)

January 31, 2030-

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

Remarks

January 31, 2027

1,200,000

0.602%

Use

January 31, 2028-

Development Bank ofJapan Inc.
Aozora Bank, Ltd.

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

Total

Increaseduring theperiod83

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

Due after 2 years

Due after 3 years

Due after 4 years

through 2 years

through 3 years

through 4 years

through 5 years

Due after 5 years(in thousands of yen)
Long-term loans payable¥ 15,900,000¥ 16,900,000¥ 16,700,000¥ 21,300,000¥ 55,070,000

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

84

25. DISTRIBUTIONS
21st Fiscal Period(From February 1, 2022 to July 31, 2022)

I. Retained earnings at the end of period

20th Fiscal Period(From August 1, 2021 to January 31, 2022)¥4,393,566,974¥4,335,589,580¥20,000,000¥20,000,000¥4,288,653,558¥4,084,116,183¥4,101¥4,101¥124,913,416¥271,473,397

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,288,653,558, which is the amount of¥4,122,093,577 in net income and ¥146,559,981 fromretained earnings brought forward and 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
21st fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,084,116,183, which is the amount deducteda part of gain on sale of real estate property and otheradjustments from net income and added reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the20th 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. Retained earnings brought forward to
the next period

Method of calculating distribution amount

Note 1: Reserve for temporary difference adjustments
21st Fiscal Period (February 1, 2022 to July 31, 2022)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 21st fiscal period distribution.
20th Fiscal Period (August 1, 2021 to January 31, 2022)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 20th fiscal period distribution.

85