2020.8. 1 -2021.1.31

18th
SEMI-ANNUALREPORT
Kenedix Residential Next Investment Corporation

Ⅰ Overview of KDR
To our unitholders
We would like to thank all of our unitholders and stakeholders for their continued supports and corporation.

We are pleased to inform you that Kenedix Residential Next Investment Corporation (KDR) successfully closed all accounts for the 18th
fiscal period (from August1, 2020 to January 31, 2021). We hereby report on the asset management overview and results for the 18th
Fiscal Period.
For the 18th fiscal period, operating revenue was ¥ 8,382 million, operating income was ¥ 4,344 million, ordinary income was ¥ 3,632
million, and net income was ¥ 3,631 million, resulting in a distribution per unit of ¥ 4,066, up 0.02% from the previous fiscal period.
During the fiscal period under review, KDR acquired 6 properties of rental housing, the building with leasehold interest of C osmo Heim
Motosumiyoshi, and a part of land with leasehold interest of Rihabili-home Granda Mondo Yakujin. As a result, at the end of January
2021, our AUM amounted to 157 properties and ¥259.4 billion (total acquisition price).
In the management of owned properties, the occupancy rate of the portfolio at the end of the fiscal period was 96.2%, continu ing tomaintain a high occupancy rate despite the impact of the COVID-19.
Regarding residential facilities, although occupancy rates, mainly in central Tokyo, have declined at some properties due todemographic changes, rents are still on an upward trend, and occupancy rates showed signs of recovery toward the end of the p eriod.
On the other hand, healthcare facilities and accommodation facilities contributed to maintaining the profit stability of port folio
through long-term lease contracts.
As to activities in the 18th fiscal period onward, KDR raised approximately ¥7.7 billion through the issuance of new investme nt units
each in February and March 2021 and acquired 1 rental housing property and 1 health care facility. In addition, KDR plans to acquire 3
properties of rental housing and 1 healthcare facility through August 2021 and sold 1 property of rental housing located inTokyo in February 2021. As a result, the size of our AUM as of August 2021 is expected to be 162 properties valuedat ¥268.8 billion.
Based on an accurate understanding of social and economic changes, we will pursue with flexibility
investment and revenue opportunities that we believe are the most attractive. We will dynamicallyinvest and manage our portfolio by gathering information and making decisions swiftly. By using
this approach, we aim to maximize the unitholder’s value.
Your continued support and cooperation are highly appreciated.
Executive Director,
KenedixResidential Next Investment Corporation
Director & COO, Head of Residential REIT Department,
KenedixReal Estate Fund Management, Inc.

1

Highlights

Distribution
per Unit

19th (Ending July 2021) Forecast¥ 4,100

18th (Ended January 2021) Actual¥ 4,066（Note) Distribution per unit for 19th fiscal
period and 20th fiscal period is
estimatedbasedoncertainassumptions as of March 15, 2021

20th (Ending January 2022) Forecast¥ 4,101

Trend in DPU note)
(

（yen）
5,000

￥4,026￥4,039￥4,063￥4,064￥4,065￥4,066 ￥4,100 ￥4,101

4,000￥3,473￥3,3163,000

0Jan.2018
Jul. 2017(11th Period) (12th Period)

Jul. 2018(13th Period)

Jan.2020
Jan.2019
Jul. 2019(14th Period) (15th Period) (16th Period)

Jul.2020(17th Period)

Jan.2021(18th Period)

Jul.2021(19th Period)(Forecast)Jan.2022(20th Period)(Forecast)(Note) KDR implemented a two-for-one split of the investment units as of the record date of February 28, 2018 (Effective date on March 1, 2018). Before the period ended
January 2018 (12th fiscal period), the figures for the distribution per unit are those taking into account the spilt of the investment units.

(million yen)
Operating
Revenues

ordinary
income18th Fiscal Period

17th Fiscal Period

8,374

8,382

17th Fiscal Period

18th Fiscal Period

Operating
IncomeNet
Income

3,632

3,808

18th Fiscal Period

17th Fiscal Period

4,469

4,344

17th Fiscal Period

18th Fiscal Period

3,808

3,631

Portfolio overview
Total Acquisition
price

Total Number ofproperties

157

Residential
Facilities

131 properties

Healthcare
Facilities

Accommodation
Facilities

2,594

properties

24 properties
2 properties

billionOccupancy rate
(At the end of 18th
Fiscal Period)

Residential
Facilities

2,002 billon

Residential
Facilities

Healthcare
Facilities

541 billion

Healthcare
Facilities

Accommodation
Facilities

49 billion

Accommodation
Facilities

96.2

%

94.5 %
99.9 %
100.0 %

2

Special feature : Initiatives to Further Enhance Unitholder Value

Occupancy rates for residential facilities are on an upward trend again. Rents
continue to increase.
Cash flow of healthcare facilities is stable even in the Corona disaster situation.

Operation of Assets
Residential Facilities■ With the decrease in population inflow to Tokyo

Occupancy Rates

and the dispersion of demand from the central
Tokyo area to the suburbs, there was a
downward trend in occupancy rates, especiallyfor single type properties in the central Tokyo
area.

97.5％

rate of residential facilities was 95.4% (down1.1pt, year-on-year), and there are signs that theoccupancy rate, which had been on a downward
trend since April 2020, will begin to rise again.

92.5％(note) the occupancy rates are calculated without the two
residential properties ("KDX Residence Hatchobori"and "KDX Residence Nakaitabashi") acquired by KDR asof the end of September 2020.

All Areas

96.9

96.5

95.9
95.4

95.7

95.3

95.4

95.1

94.5

2020
Jan. Feb.

96.2

95.9

95.7

2021
Jan. Feb.

Jul.

Percentage of Increase/Decline of rent
4.0％

New Rent

Renewal Rent

3.0

4.0

0.5

0.6

0.8

2020
Jan.

Jul.

2021
Jan.

2.6

■ New rents increased by 2.3%, Renewal rents

increased by 0.8%.
The trend of rent increase is continuing.

98.1

98.1

95.0％ 94.8

■ As of the end of January 2021, the occupancy

Other Regional
Areas

Tokyo Metropolitan
Area

100.0％

2.3

2.0
2.0％

0.0％

Healthcare Facilities

0.1

0.2

2019
Jan.

Jul.

Occupancy Rates (Senior Living Facilities)■ Demand for occupancy in healthcare facilities is strong（note）

100.0％

regardless of the Corona disaster.
Occupancy rates for each facility are also stable.

90.0％■ All of facilities are continuing to operate as normal, thanks to

80.0％

the efforts of each operator to prevent the spread of the newCoronavirus.

70.0％

82.5%

85.6%

86.5%

86.5%

86.8%

2019
Jun.

Dec.

2020
Jun.

Dec.

60.0％

■ Diversification of operators through the acquisition of new

properties has improved the stability of the healthcare facility
portfolio.

2018
Dec.

(note) The figures are based on the senior living facilities owned by KDR as of the end of January 2021. However, the data related to “Rihabili-home Granda
Mondoyakujin”, “Anesis Teradacho”, “Orage Suma”, “Tsukui Sun-shine Machida”, “Arute Ishiyagawa” was excluded from the aggregation.

Accommodation
Facilities

Summary of Lease Agreements
Operator
Type of contract■ Although operation remains severe due to theCorona disaster, a gradual recovery of demand
is to be expected as the state of emergency islifted.

Contract Period
Cancellation / Rent revision■ Occupancy rates of the two properties haverecovered to the pre-Corona level.
■ Temporary rent reduction was implemented in

the period ended July 2020 (17th period).
However, since then, the rent has been paid asagreed.
(note) The figures in the graph of Occupancy rate/ADR for
Accommodations show the ratio of the average of the occupancy
rate/ADR for each month of the two properties owned by KDR("Hotel LiVMAX Tokyo Otsuka Ekimae" and "Hotel LiVMAX
Yokohamaeki Nishiguchi") to the average of the occupancy
rate/ADR for the same month last year.

LiVEMAX Inc.
Ordinary traditional lease contract(100% Fixed rent)
20 years from 2018/10/31 (Otsuka)
20 years from 2018/11/30 (Yokohama)Cancellation is not possible for 10 years fromthe contract start date /Rentcannot be changed for 5 years

Occupancy Rate／ADR (year-over-year)（note）
100.0％

Occupancy Rate

ADR

Under Declaration of
a State of Emergency

Under Declaration of
a State of Emergency

0.0％-100.0％
2020
Feb.

2020
Jul.

2021
Jan.

3

After the merger, AUM has grown by an average of about ¥ 25 billion per year, along withthe four public offerings.
KDR aims to expand asset size and improve earnings stability by further
strengthening its financing capabilities and property acquisition capabilities

External Growth
Fundraising through the Issuance of New Investment Units andSteady External Growth◼

Beca m e th e firs t J - RE I T to con d u ct a d om es tic p u b lic offerin g on a s h orten ed s ch ed u le a ccord in g
to th e s p ecia l trea tm en t for W K S I (W ell K n ow n S ea s on ed I s s u er) in F eb ru a ry 2 0 2 1◼

T ota l of 9 res id en tia l a n d 2 h ea lth ca re fa cilities a m ou n tin g to ¥ 1 9 . 3 b illion a re s ch ed u led toa cq u ire w ith th e ra is ed fu n d s . T h os e a re th e res id en tia l fa cilities th a t w ere n ew ly b u ilt in T okyo
M etrop olita n A rea or m eet th e n eed s in th e s u b u rb s of T okyo, a n d h ea lth ca re fa cilities op era ted
b y m a j or op era tors .

Overview of
the Public Offering

Growth in AUM

Shortening the period reduces the riskof investment unit price fluctuations
after resolutions for issuance.
Date of resolution for F e b r u a r y 15, 2021
issuance
Two-business-day
interval
Date when the issue
price was determined F e b r u a r y 18, 2021
¥ 179,985／¥ 174,170

Issue price/Paid-in amount
Total paid-in amountAim forContinuous growthin AUM(¥ bln) ■ Residential Facilities ■ Accommodation
Facilities
3,500 ■ Healthcare Facilities

2,489 2,594

3,000
2,500
2,000

1,928
297

2,209
444

49

541

541

586

1,898

2,002

2,052

49

541

541

2,688

49

2,332 2,347

Annual averageacquisition amount
After the end of July 2018
Until after the acquisition of
newly acquired assets

Approx. ¥ 25.0 bln
CAGR for Asset size

1,500
1,000

1,631

1,764

1,791

1,806

After the end of July 2018
Until after the acquisition of
newly acquired assets

500

Approx. ¥ 7.4 bln+ 11.7 %／year

0
2018
Jul.

2019
Jan.

Jul.

2020
Jan

2021 (forecast)
Jan.
Aug.

Jul.

Finance and the Other
Appropriate Financial Control and Securing of Acquisition Capacity
Key Debt Indicator
1.40％
1.20％

(yrs)
10.0
Rate offixed-interest
8.0

Average interest rate
■ Average remaining term (RHS)

97.1％

1.08％

1.00％

0.99％ 0.98％ 0.98％

0.96％ 0.94％

6.0
4.0

0.80％

4.5

4.7

4.4

4.2

4.2

4.1

0.60％
Jul. 2018 Jan. 2019 Jul.2019 Jan. 2020 Jul. 2020 Jan. 2019(13th)(14th)(15th) (16th)(17th)(18th)

LTV
60.0％

55.0％

50.0％

LTV

Appraisal LTV

Acquisition Capacity
after August 2021
(In the case of LTV 55%)

￥ 31.0 bln

LTV Target：50～55％

49.7％ 50.3％ 49.4％ 49.7％ 49.5％

50.2％

46.6％ Estimated

2.0
0.0

51.3％

45.0％
2018
Jul.

2019
Jan.

Jul.

2020
Jan

Jul.

2021
Jan.

Value
after
Acquisition

Aug.

Aiming for Further Growth
Rating Outlook

Sponsor Support■ Rating Outlook improved in■ The sponsor’s capital and business partnership with the SMFL Group in

January 2021

A+

A+

StablePositiveJan. 2021 is expected to strengthen KDR’s ability to raise funds and acquire
properties through the supplementation of creditworthiness and utilizing
the bridge function.

4

Introduction of Newly Acquired Properties

Investment in newly built properties and residential
facilities that meet the needs in the suburbs of Tokyo
Newly Acquired Properties in 18 th Period
T-93 KDX Residence Hatchobori
Tokyo
Special
Wards

Newly
Built

Acquisition Date
Acquisition PriceAppraisal value
Location
Access

T-94 KDX Residence Nakaitabashi
FamilySeptember 30, 2021
3,000 million yen
3,530 million yen
Chuo ward, Tokyo
Four minutes` walk from
Hatchobori station on
Tokyo Metro Hibiya LineTokyo
Special
Wards

Newly
Built

Acquisition Date
Acquisition PriceAppraisal value
Location
AccessStudioSeptember 30, 2021
1,736 million yen
1,850 million yen
Itabashi ward, Tokyo
Six minutes` walk from
Nakaitabashi station on Tobu Tojo
Line

Site Area
482.87m 2
Rentable Units
46 units
Occupancy Rate（note） Contracted：49.0%
Applied：62.4%
Completion
September 2020

Site Area
782.06m 2
Rentable Units
78 units
Occupancy Rate（note） 97.4％(as of the last day of April 2021)
Completion
June 2020

T-95 KDX Residence Shonandai

T-96 KDX Residence Ikebukuro West

Suburbsof Tokyo

Acquisition Date
Acquisition PriceAppraisal value
Location
AccessSite Area
Rentable Units
Occupancy Rate
Completion

StudioTokyo
Special
Wards

Newly
Built

November 2, 2020
1,500 million yen
1,610 million yen
Fujisawa city, Kanagawa
Three minutes` walk from Shonandai
station on Odakyu Enoshima Line

Acquisition Date
Acquisition PriceAppraisal value
Location

716.55m 2
104 u n its
96.2%(as of the last day of April 2021)
February 2004

Site Area
Rentable Units

AccessOccupancy Rate
Completion

StudioJanuary 29, 2021
2,237 million yen
2,450 million yen
Itabashi ward, Tokyo
Fifteen minutes` walk from
Ikebukuro station on Tokyo Metro
Marunouchi Line
461.65m 2
89 units
100.0％(as of the last day of April 2021)
July 2020(Note) "Contracted" refers to the occupancy rate as of March 31, 2021, taking into account parcels for which lease contracts have been concluded by February 28, 2021.
(Note) "Applied" refers to the occupancy rate as of March 31, 2021, taking into account the plots scheduled to be leased by tenants who have submitted applications forlease by February 28, 2021.

5

Introduction of Newly Acquired Properties
T-92 KDX Residence Ichikawa
Suburbsof Tokyo

Acquisition Date
Acquisition PriceAppraisal value
Location
AccessSite Area
Rentable Units
Occupancy Rate
Completion

T-91 KDX Residence Nakanobu
Tokyo
Special
Wards

StudioSeptember 24, 2020
840 million yen
908 million yen
Ichikawa city, Chiba
Five minutes` walk from Ichikawa
station on JR Sobu Line2

362.95m
47 units
97.9%(as of the last day of April 2021)

Acquisition Date
Acquisition PriceAppraisal value
Location
AccessSite Area
Rentable Units
Occupancy Rate
Completion

February 2010

StudioAugust 3, 2020
830 million yen
901 million yen
Shinagawa ward, Tokyo
Three minutes` walk from
Ebaramachi station on Tokyu
Oimachi Line
304.14m 2
32 units
95.2%(as of the last day of April 2021)
May 2008

Newly Acquired (to be) Properties in 19 th and 20 th Period
T-97 KDXResidentialTennocho

T-100 KDX Residence KamishakujiiII
Newly
Built

Tokyo
SpecialWards

Acquisition Date
Acquisition Price

August 2, 2021
3,087 million yen

Appraisal value
Location

3,250 million yen
Nerima ward, Tokyo
Six minutes` walk from
Kamishakujii station on Seibu
Shinjuku Line

AccessSite Area
Rentable Units

2

1,370.88m
114 u n its
Contracted：60.4%
Occupancy Rate（note） Applied：72.5%
Completion

October 2020

Suburbsof Toyo
Suburbsof Tokyo

Small
FamilyAcquisition Date
Acquisition PriceAppraisal value
Location
AccessSite Area
Rentable Units
Occupancy Rate
Completion

StudioMarch 1, 2021
843 million yen
907 million yen
Yokohama city, Kanagawa
Nine minutes` walk from Tennocho
station on Sotetsu Main Line
440.78m 2
29 units (including nursery school)
100.0%（as of the last day of April 2021）
February 20206

Introduction of Newly Acquired Properties
T-99 KDX Residence Kamata–minamiII

T-98 KDX Residence Kawasaki
Newly
Built

Suburbsof TokyoStudioTokyo
Special
Wards

Newly
Built

StudioApril 1, 2021
910 million yen
982 million yen
Kawasaki city, Kanagawa
Seventeen minutes` walk from
Kawasaki station on JR
Tokaido/Keihin Tohoku/Nanbu Line
399.53m 2

Acquisition Date
Acquisition PriceAppraisal value
Location

Rentable Units

57 units

Rentable Units

Occupancy Rate

100.0％（as of the last day of April 2021）
December 2020

Acquisition Date
Acquisition PriceAppraisal value
Location
AccessSite Area

Completion

AccessSite Area

Occupancy Rate
Completion

May 6, 2021
780 million yen
854 million yen
Ota ward, Tokyo
Ten minutes` walk from Zoshiki
station on Keikyu Main Line464.68m 2
34 units
March 2021

Investment in stable healthcare facilities operated by major operators

H-25 Medical–home Granda Kurakuen
Newly
Built

H-26 Rihabili–home GrandaKobe Kitano

Private Senior
Homes (with
Nursing care)Acquisition Date
Acquisition PriceAppraisal value
Location
AccessSite Area
No. of Rooms
Completion
Operator

March 1, 2021
2,709 million yen
2,780 million yen
Nishinomiya city, Hyogo
Fifteen minutes` walk from Kurakuenguchi station on Hankyu Koyo Line
3,035.29m 2
68 units
November 2020
Benesse Style Care Co.,Ltd

Private Senior
Homes (with
Nursing care)Acquisition Date

June 1, 2021

Acquisition PriceAppraisal value
Location

1,720 million yen
1,800 million yen
Kobe city, Hyogo

AccessSite Area
No. of Rooms
Completion
Operator

Fifteen minutes` walk from Sannomiya
station on JR Tokaido Line
1,674.99m 2
59 units
February 2016
Benesse Style Care Co.,Ltd■ Residential Facility ■Healthcare Facility

7

Sustainability

Initiatives for EnvironmentE SG

DBJ Green Building Certification

GRESB Real Estate Assessment

12 residential properties are certificated. (Obtained reassessment for 3
properties in January 2021)
KDX Residence Toyosu

KDX Residence Yothuya

Ashiya Royal HomesKDX Daikanyama Residence

KDX Residence Ebisu

KDX Residence Higashi SakuraⅠ
KDX Residence Ohori
Harbor View Tower

KDX Residence Hanzomon

The
Investment
Corporation
participates in GRESB Real Estate
Assessment and acquired “GreenStar” rating for three consecutive
years and “ 3 Stars “ rating in 2020.
(upgraded from “2 Stars” in 2019)

Serenite Kobe Motomachi
KDX Residence Shukugawa
Hills

KDX Sakaisuji Hommachi
Residence

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

KDX Residence
Hommachibashi

Initiatives for Society

E SG

Investment in Childcare facilities
KDR aims to incorporate Childcare Facilities into our portfolio.

Revision of the Management
Guidelines（Sep.2019）◼

As Japan is facing issues related to population
structure, as part of its response to the declining
birthrate and aging population, the need forchildcare facilities is expected to continue. KFM
believes that childcare facilities are asset classes withgood prospects for growth. These properties cangenerate stable rental income that is reflected in themedium to long-term asset value of these facilities.

◼

KFM revised its management guidelines to createsocial value through investments in childcare
facilities that meet this need and to increase
flexibility for targeting investment opportunities.

KDR`s Investment Target
Usage

Asset Type Examples

Residential Rental housing
Serviced apartments, etc.
facilities
Private senior homes, serviced housing
Healthcare for the elderly,
facilities
Nursing and health facilities, etc.
Accommo-dationfacilities

Hotel, etc

Land with leasehold interest,
Childcare facilities ,etc.

Other

KDX Residence tennocho
acquired in March 2021 includes anurseryschoolon1st and 2nd floors

Initiatives for Governance

ES G

Asset Management Fee Structure
Asset management fee structure has changed in 2019 so that fees and unitholder returns are strongly linked.
AM Fee I

AM Fee II( Before Change )( Before Change )Total assets at theend of the previous
period × 0.3%
(annual rate)

Distributableamount × 5.0%

Total assets at theend of the previous
period × 0.27%(annual rate)

Distributableamount ×EPU
×0.00145％

Reduction in fee
rates linked tothe total assets

Stronger
linkage with
Earnings Per Unit

AM Fee III
Newly
Established
Vs. TSE REIT
index
Performance×MarketCapitalization
×
0.15％

Linked to
performance ofinvestment unit
prices◼

Changing to the structure that has stronger linkage with earnings perunit (Asset Management Fee II)◼

Introducing the structure that linked to performance of investment
unit prices (Asset Management Fee III)

Results : Asset Management Fee III
Vs. TSE REIT Index Performance
第16期+ 2.0 ％

第17期

+15.0 ％

第18期

▲17.0％
Negativeperformancedeferred to thenext period

第19期

AM Fee III

5 million yen
43 million yen
08Overview of Portfolio

Percentage
of properties
owned byarea

Hokkaido

7props. 3.0％

：Residential Facility

Aomori/Akita：Healthcare Facility：Accommodation Facility

2props. 0.9％

Total

Osaka Metropolitan Area
Osaka, Kyoto, Hyogo, Shiga

162 p rop s.

31 props.
22.1％

Miyagi3props. 1.1％
Fukuoka

Tokyo Metropolitan Area

6props.

Tokyo, Kanagawa, Saitama, Chiba

3.8％

106

props. 65.3 ％Aichi

6props.

Hiroshima

3.6％

1prop. 0.2％

Portfolio Breakdown
Accommodation
Facilities
1.8%（2props.）Residential Facilities
Family21.4%

Healthcare Faicilities
Nursing and health Facilities

19.9%（5props.）Studio42.0%

Healthcare Facility

Room Type

21.8%

SmallFamily

36.6%

Use

Tokyo Central
8 Wards
Other Regional
Areas

36.0%

27.8%

Area
Other Tokyo
Metropolitan
Area

Residential
Facility

76.4%（134props.）

Other Tokyo
Special Wards

24.5%

72.2%

（26props.）

Private Senior
Homes (residential)

FacilityType

6.8%（4props.）

Other Regional
Areas

10.5%

Tokyo Metropolitan area

11.6%

Serviced Senior
Housing
2.4% (1prop)

Osaka Metropolitan
Area

49.1%

Private Senior Homes(with nursing care)

71.0%（16props.）
other
2.4%
Tokyo Metropolitan
Area

38.1%

Area

Three Major
Metropolitan
Area

87.2%

(Note ) The percentages are based on the acquisition price including assets to be acquired as of March 15, 2021.

9Investment Unit

Investment Unit Price (After Announcement of the Merger) (1)KDR unit price(yen)
2 4 0 ,0 0 0

TSE REIT index

Nov.10, 2017
Announcement of merger■Volume (Right axis)

Sep.7 , 2018
Announcement of inclusion in index

Jul.13 , 2018
Announcement of the 4th PO

2 2 0 ,0 0 0

TSE residential REIT index

As of January 31, 2021
（unit)

Feb.10 , 2020
Announcement of the 6th PO

Feb.4 , 2019
Announcement of the 5th PO

4 5 ,0 0 0
4 0 ,0 0 0
3 5 ,0 0 0
3 0 ,0 0 0

Mar.1 , 2018
Completion of merger

2 0 0 ,0 0 0

2 5 ,0 0 0

1 8 0 ,0 0 0

2 0 ,0 0 0
1 5 ,0 0 0

1 6 0 ,0 0 0

1 0 ,0 0 0
1 4 0 ,0 0 0

5 ,0 0 00

1 2 0 ,0 0 0

Nov.10 Jan.10
2017 2018

Note 1:
Note 2:

Jan.102019

Jan.102020

Jan.102021

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

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

18th Fiscal period
951,258 units

7.8%

70.6 %

15.4% 3.7% 2.5%

17th Fiscal period
951,258 units

7.5%

71.2 %

14.2% 3.7 % 3.4%

The Investment Corporation discloses a variety of information on its website, including press
releases, financial results, property information and IR event information. The Investment
Corporation will continue to make efforts to provide information to its unitholders in a timely
manner.
https://www.kdr-reit.com/
5910

Unitholders’ benefit programs
Unitholders’benefit programs
Seikatsu Kagaku Un-Ei Co., Ltd.
Benefits
Eligible
PersonFacilities
Available

Sompo Care Inc.
Ⅰ. Sompo Care LAVIERE・≪On the condition of lump sum payment≫3% discountfrom the initial lump sum payment for resident・≪On the condition of monthly payment≫3% discount of theamount equivalent to the rent out of the monthly payment(Until the contract end)

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

Unitholder and his / her spouses and his / her relatives (within
the second degree).
All of the private senior homes with nursing care operated
by Seikatsu Kagaku Un-Ei Co., Ltd. as of July 31,2020.

Benefits

The No. of 25 facilities
Facilities
Area

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

Contact
No.

0120-580-731

Property
owned byKDR

N/A

Unitholder and his / her spouses and his / her relatives (within
the second degree)
Eligible
PersonHomepage http://www.seikatsu-kagaku.co.jp/
CENTURY LIFE CORPORATION
Benefits● Same-day facility site-visit (with lunch) free of charge

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

Facilities
Available

All of the private senior homes with nursing care andserviced senior housing operated by CENTURY LIFE
CORPORATION as of July 31,2020.

The No. of 10 facilities
Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Osaka

Contact
No.

+81-120-580-731

Property
owned byKDR

N/A

Homepage http://www.centurylife.co.jp/
SENIOR LIFE COMPANY

Facilities
Available

The No. of
Facilities
Arealump sum payment for resident ( ¥ 300,000 discount)

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

Facilities
Available

All of the private senior homes with nursing care andapartment for the elderly operated by SENIOR LIFE
COMPANY as of July 31,2020.

The No. of 5 facilities
Facilities
Area

Tokyo, Fukuoka

Contact
No.

+81-120-678-723

Property
owned byKDR

N/A

Homepage https://www.felio.life/

433 facilities
Hokkaido, Iwate , Miyagi, Akita, Saitama, Chiba, Tokyo, Kanagawa,Shizuoka, Aichi, Kyoto, Osaka, Hyogo, Nara, Okayama, Hiroshima,
Fukuoka, Kumamoto

Property
owned by
KDR

Sompo Care LAVIERE Kobe Tarumi

Homepage https://www.sompocare.com/
HITOWA Care Service Co., Ltd.
Benefits

dinner and breakfast)

Eligible
PersonⅠ. Sompo Care LAVIERE operated by Sompo Care Inc as ofJuly 31,2020. (Excluding short-term use)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo no ie GH,
Private senior homes (residential), Serviced senior housing,Group homes operated by Sompo Care Inc. as of July
31,2020. (Facilities for short-term use are excluded.)+81-120-155-703● Trial residence free of charge (1-night, 2-day stay, with● Same-day facility site-visit (with lunch) free of charge※A user who has inquired this benefit through agencies, areineligible. Also, it cannot be combined with other discountprograms.

Contact
No.

● ≪On the condition of lump sum payment≫ Discount on

Benefits

Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo no ie GH,
Private senior homes (residential), Serviced senior housing,Group homes
・3% discount of the amount equivalent to the rent out of themonthly payment or of the rent (Until the contract end)

Eligible
PersonFacilities
Available● Same-day facility site-visit (with lunch) free of charge● Discount on usage charge for two-month equivalent

Unitholder and his / her spouses and his / her relatives(within the second degree)※A user with 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 31,2020.

The No. of 112 facilities
Facilities
Area

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

ContactNo.

+81-3-6632-4306

Property
owned byKDR

Irise Kamata/Yuseien , Irise Nishioka, Izarie
Eniwa Building

Homepage http://www.irs.jp/

11Unitholders’ benefit programs
Nichii Carepalace Company

NM LIFE Co., Ltd.
● Discount on one-time payment for resident (¥ 200,000● Same-day facility site-visit(with lunch) free of charge

Benefits

discount)● Trial residence free of charge (1-night, 2-day stay, with dinner,lunch and breakfast)
Eligible
PersonFacilities
Available

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

Area

Tokyo, Saitama, Chiba, Kanagawa, Shizuoka

Contact
No.

+81-120-555-800

Property
owned by
KDR

Nichii Home Nakano-Minamidai, Nichii Home Tama Plaza

Homepage http://www.nichii-carepalace.co.jp/
CARE TWENTYONE CORPORATION
Benefits● Same-day facility site-visit (with lunch) free of charge

Eligible
PersonUnitholder and his / her spouses and his / her relatives(within the second degree)
All of the private senior homes with nursing care operated
by CARE TWENTYONE CORPORATION as of July 31,2020.

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

Contact
No.

+81-120-944-821

Property
owned by
KDR

Plaisant Grand Ota tamagawa

Homepage

Eligible
PersonFacilities
Available

three times)

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

Facilities
Available

Joy Stage Hachioji

The No. of
Facilities

1 facility

Area

Tokyo

Contact
No.

+81-120-38-0161

Property
owned byKDR

Joy Stage Hachioji

Homepage

http://www.joystage.com/

Sawayaka Club Corporation● 10% discount on usage charge for the first monthly

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

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

Facilities
Available

All of the private senior homes with nursing care operated
by Sawayaka Club Corporation as of July 31,2020.

The No. of 74 facilities
Facilities
https://www.care21.co.jp/
Area

Excellent Care System Co., Ltd.
Benefits

day stay, with dinner and breakfast)● Same-day facility site-visit(with lunch) free of charge (up to

payment

The No. of 44 facilities
Facilities
Area

Benefits

All of the private senior homes with nursing care operated
by Nichii Carepalace Company as of July 31,2020.

The No. of 74 facilities
Facilities

Facilities
Available● Trial residence free of charge, up to three times (1-night, 2-● Same-day facility site-visit (with lunch) free of charge

Unitholder and his / her spouses and his / her relatives (within
the second degree)※Users who are already living in the facility are not eligible.
Also, it cannot be combined with other discount programs.

Hokkaido, Akita, Tochigi, Saitama, Chiba, Kanagawa,Niigata, Shizuoka, Aichi, Mie, Kyoto, Osaka, Hyogo, Ehime,
Wakayama, Fukuoka, Oita

Contact
No.

+81-120-958-490

Property
owned by
KDR

Sawayaka Sakura Nibankan

Homepage http://www.sawayakaclub.jp/

All of the private senior homes with nursing care operated
by Excellent Care System Co., Ltd. as of July 31,2020.

The No. of 15 facilities
Facilities
Area

Tokyo, Kanagawa, Kyoto, Hyogo, Tokushima

Contact
No.

+81-44-819-5107

Property
owned byKDR

Excellent Nishinomiya, Excellent Kitano

Homepage http://www.excare.co.jp/(Note 1) Existing residents are not eligible to use the benefits.
(Note 2) The area and the number of facilities are as of January 31, 2021.
(Note 3) There may be restrictions on trial residence and facility tour due tothe operating condition of operators.
(Note 4) In the case of private senior homes with nursing care, those
who are not required for nursing care may not be able to use this
Unitholder Benefits Program .
(Note 5) It may be necessary to consult with a care manager and take a
medical checkup before trial residence.

61 12

Unitholders’ benefit programs

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

General Outline of the Unitholder Benefit Program
1.Eligible Unitholder

Unitholders stated or recorded on the unitholders’ register of the Investment Corporation as ofJanuary 31, 2021 are eligible for the unitholder benefit program.

2 Contents

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

3 .Method for the
Use of Benefits

Please present Semi-annual Report for the fiscal period ended January 2021 (18th fiscal
period) and the paper setting forth the name, address, etc. of the unitholder or dividend
receipts, which are enclosed in the Semi-annual Report, to the healthcare facility.

4 .Validity Period

October 31, 2021

Q&A
Q At which facilities will I be eligible for benefit programs?
A
About Benefit
programFacilities offering programs are shown on the list, but applicable facility types vary depending oneach operator. Please call the operator to find out which facilities offer benefit programs.

Q How can I check the details of benefit programs?
Details of benefit programs vary depending on each operator. Moreover, there may besomerestrictions to benefit programs due to the operational status of facilities and such.
A
Please call the operator to find out the details of the benefit programs.
Q What are the procedures required to use the program?
A

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

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

Please bring the document enclosed with this Semi-annual Report affixed with youraddress,name and other information. Some operators or facilities may requireA
additional confirmation documents. Please confirm the details with the relevant
operator.
Q Can I go directly to a facility when I want to see the facility or do a trial residence?
If you visit a facility without prior notice, they may not be able to respond to your request
A depending on the operational status or vacancy status. Please call the operator in advanceand receive instructions before a visit.

13

II.

Asset management report

1. Outline of asset management operation(1)

Operating result and financial position
Fiscal period

Unit

14th

15th

16th

17th

18th

From Aug. 1, 2018

From Feb. 1, 2019

From Aug. 1, 2019

From Feb 1, 2020

From Aug. 1, 2020

to Jan. 31, 2019

to Jul. 31, 2019

to Jan. 31, 2020

to Jul. 31, 2020

to Jan. 31, 2021

Operating result

Operating revenues

mil.yen

7,823

8,136

8,066

8,374

8,382

(Rental revenues)

mil.yen

7,605

7,933

8,027

8,289

8,382

Operating expenses

mil.yen

3,610

3,777

3,806

3,904

4,038

(Expenses related to rent business) mil.yen

2,794

2,915

2,911

3,005

3,060

mil.yen

4,213

4,358

4,260

4,469

4,344

Ordinary income

mil.yen

3,599

3,741

3,614

3,808

3,632

Net income

mil.yen

3,598

3,741

3,613

3,808

3,631

Total asset

mil.yenOperating income(period to period change)%

245,103

254,965

256,665

272,960

283,172（＋14.8）（＋4.0）（＋0.7）（＋6.3）（＋3.7）

Asset

Interest-bearing debt

mil.yen123,250

125,900

127,650

135,050

145,220

Unitholders’ equity

mil.yen

111,951

118,541

118,500

127,457

127,132%（＋13.4）（＋5.9）（-0.0）（＋7.6）（-0.3）

99,731
3,687

99,731
3,687

108,550
3,867
106.5
951,258(period to period change)

Distribution per unit

Unitholders’ capital

mil.yenTotal distribution

mil.yen93,226
3,510

Dividend payout ratio (Note 2)

%

97.6

98.5

102.1

108,550
3,866
101.5

Number of investment units issued
and outstanding

unit

869,133

907,458

907,458

951,258

yen

4,143

4,142

3,981

4,028

3,817

Unitholders’ equity per unit

yen

128,807

130,630

130,584

133,988

133,646

Distribution per unit

yen

4,039

4,063

4,064

4,065

4,066

Profit distribution

yen

4,039

4,063

4,064

4,065

4,066

Distribution in excess of profit

yen

−

−

−

Return on assets (Note 4)

%

1.6

1.5

1.4

−
1.4

1.3

Annualized (Note 5)

%

3.1

3.0

2.8

2.9

2.6

%

3.4

3.2

3.0

3.1

2.9

%

6.5

6.0

6.2

5.7

%

6.8
45.7

46.5

46.2

46.7

44.9

（-0.6）（＋0.8）（-0.3）（＋0.5）（-1.8）

%

50.3

49.4

49.7

49.5

51.3

mil.yen

4,750

4,948

5,023

5,218

5,165

yen

5,466

5,453

5,536

5,486

5,430

mil.yen

6,154

6,408

6,545

6,751

6,825

%

5.5

5.5

5.5

5.4

5.2

mil.yen

5,539

5,796

5,888

6,235

6,347

Net income per unit

(Note 3)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)−(Note 8)FFO
(Funds from Operation)
FFO per unit (Note 9)(Note10)

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

Leasing NCF(Net Cash Flow)

Annualized NCF yield(Note 5,13)

Number of properties

%

5.0

5.0

5.0

5.0

4.9

properties

138

143

144

151

157

Reference

Leased units (Residential)

unit

8,017

8,080

8,148

8,319

8,755

Total leasable floor area (Note 14)m²

467,606.17

491,050.34

490,988.55

503,721.25

516,871.89

Occupancy ratio (Note 14)

%

97.7

97.5

97.6

96.8

96.2

Depreciation expenses

mil.yen

1,343

1,391

1,428

1,467

1,504

Capital expenditures

mil.yen

614

612

656

515

478

(Note 1)
(Note 2)

Figures are rounded down to the nearest unit. Ratios are rounded off to one decimal place
Dividend payout ratio＝Total distribution(excluding Distribution in excess of profit)/Net income×100

14

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)(Note 11)
(Note 12)(Note 13)
(Note 14)“Net income per unit” are calculated by dividing the net income with weighted average unit based on days.
Return on assets ＝Net income /｛(Total assets at the beginning of period + Total assets at the end of period)/2｝×100
Annualized values for the 14th fiscal period are calculated based on a period of 184 days, 181 days for 15th fiscal period, 184 days for
16th fiscal period, 182 days for 17th fiscal period, 184 days for 18th 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.

15

（2）Outline of asset management operation for the 18th fiscal period(ⅰ) Outline of the history of the Investment Corporation
Kenedix Residential Next Investment Corporation (the “Investment Corporation”) was established on November
15, 2011 under the Act on Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”).
On April 26, 2012, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange (Securities Code: 3278).
The Investment Corporation subsequently issued new investment units through three public offering and by wayof third-party allotment to expand its market capitalization and steadily grow its asset size.
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 issued new investment units through three public offerings andby way of two third-party allotments. As of the end of the 18th fiscal period, the Investment Corporation owns a
total of 157 real estate properties (total acquisition price: 259,449 million yen (Note 1)) consisting of 131 residential
facilities such as rental housing, 24 healthcare facilities such as private senior homes with nursing care and 2
accommodation facilities such as hotels and the total number of investment units issued and outstanding is 951,258
units. Most recently, the Investment Corporation procured funds by issuing new investment units in February andMarch achieving further increase of market capitalization and steady growth of AUM.
The Investment Corporation entrusts the asset management to Kenedix Real Estate Fund Management, Inc. (the“Asset Management Company”), a company that was formed with personnel from Kenedix, Inc. and adheres to thecore philosophies of Kenedix, Inc. The Asset Management Company provides real estate investment management
services with flexibility and agility by flexibly pursing optimal investment opportunities and income opportunities
and agilely investing and managing based on swift information gathering and decision-making while accurately
grasping real estate-related trends.
（Note 1）“Acquisition price” is the sales price of each trust beneficiary interest or real estate indicated in each trust beneficiary interest
sales contract and real estate sales contract concerning the owned assets (excluding acquisition costs, adjustment in property tax
and city-planning tax, and consumption tax) and is rounded down to the nearest million yen. The appraisal value as of March 1,
2018 is indicated as the acquisition price for assets succeeded by JSL due to the merger. The same applies hereinafter.

(ⅱ) Investment Environment
During the 18th fiscal period, the Japanese economy remained in a tough situation, with weakening employment
and income conditions and a slowdown in the recovery of consumer spending due to the impact of the COVID-19.
On the other hand, there were signs of recovery, including gradual improvement in corporate earnings and businesssentiment, which deteriorated significantly as well as increase in exports and production. As for the economy
going forward, the recovery in external demand, accommodative financial conditions, and the effects of thegovernment's economic stimulus measures are expected to follow a moderate improving trend, as the effects of the
spread of the COVID-19 are gradually waning. However, it is still necessary to pay attention to the trends of the
global economy which has been affected by the spread of the COVID-19, as well as the possibility of future
volatility in the financial and capital markets.
With regard to residential facilities, one of the main investment targets of the Investment Corporation, the flow ofpeople from other regional areas to Tokyo metropolitan area has declined due to the spread of the COVID-19.
Within the Tokyo metropolitan area, the rental market is also undergoing changes, as companies are introducing
telework and other measures to diversify their residential needs, which used to be focused on the city center. As aresult of these changes in the market environment, some rental housings in central Tokyo have seen a decline inoccupancy rates, but the occupancy rate has recently stopped declining and is turning into a gradual recovery trend.
On the other hand, with regard to the increase in rent, although the rate of increase is decreasing due to the decreasein the occupancy rate, the trend of increase in rent still continues.
Concerning the environment surrounding healthcare facilities, with one of the longest average life expectancies forboth men and women, Japan now has a super-aging society (Note) which no other country has ever experienced, andthe “aging,” or the increase in the ratio of the elderly population against total population and the increase in elderly
population itself, is expected to continue going forward. In response to such trends, the number of senior carefacilities such as private senior homes with nursing care and serviced senior housing has been on the rise in recent

16years. The Investment Corporation believes that demand for senior care facilities, including nursing care facilities,
will continue to increase. Even under the circumstances of the spread of the COVID-19, stable facility operations
have continued with infection prevention measures taken by the operators of each facility.
Demand for accommodation facilities has decreased substantially due to restrictions on entry into Japan fromoverseas and restrictions on movement within Japan in order to prevent the spread of the Covid-19, andaccommodation facility operators continues to face a difficult operating environment. As the impact of the newcoronavirus infection gradually eases, accommodation demand is expected to recover, but it will take a certain
amount of time to return to the situation before the coronavirus disaster.
In the real estate investment market, some investors initially took a cautious stance toward real estate investment
due to the spread of the new coronavirus infection, but investors' willingness to invest in real estate is recovering
against the backdrop of accommodative monetary policies in Japan and overseas, and active transactions are
currently taking place. Expected yields on rental housing, which is the main investment target of the Investment
Corporation, remain low, and the environment for property acquisitions is expected to remain difficult.
(Note) “Super-aging society” refers to a society with a population aging rate (ratio of the elderly population aged 65 or over against total
population) exceeding 21%, as defined by the World Health Organization and the United Nations.

(ⅲ) Operating Results(A) Acquisition of assets
The Investment Corporation comprehensively taking into account the composition of the entire portfolio,
earnings power in the future, etc., and the Investment Corporation acquired 8 properties in total (total acquisition
price:10,544 million yen), which includes acquisitions of additional part of property, 7 residential properties (totalacquisition price: 10,481 million yen) and 1 healthcare facility (total acquisition price: 63 million yen).
＜Acquired assets＞

Property number

Property name

T-91
T-92
T-93
T-94
T-95

KDX Residence Nakanobu
KDX Residence Ichikawa
KDX Residence Hatchobori
KDX Residence Nakaitabashi
KDX Residence Shonandai
CosmoHeim Motosumiyoshi(building withleasehold interest)
KDX Residence Ikebukuro West
Subtotal
Rihabili-home Granda Mondo Yakujin (apart of land with leasehold interest)(Note2)
Subtotal
Total

T-9
T-96
Residential
H-12
Healthcare

Acquisition price（million yen）（Note1）
830
840
3,000
1,736
1,500
337
2,237
10,48163
63
10,544(Note1) “Acquisition Price” and “Sold Price” are the sales amount of each trust beneficiary interest (excluding acquisition
costs, property tax, city planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract
concerning the acquired assets and sold assets, and are rounded down to the nearest million yen.
(Note2) The name of Granda Mondo Yakujin was changed to Rehabili-home Granda Mondo Yakujin on January 26, 2021.
The same shall apply hereinafter.

As a result of the above, as of the end of the 18th fiscal period, the Investment Corporation owned a total of 157
properties (total acquisition price: 259,449million yen), which consist of 131 residential properties (acquisition
price: 200,298 million yen), 24 healthcare facilities (acquisition price: 54,191 million yen) and 2 accommodation
facilities (acquisition price: 4,960 million yen).

（B）Management and Operation of Assets
With respect to residential, the Investment Corporation managed our real estate holdings with the aim of achieving
stable and optimal performance by working with a property management company (“PM Company”) that operates
and manages properties, which were selected through a multifaceted approach of taking into consideration theregion, location and city, rent range, tenant type (corporate or individual) and other various characteristics .

17

Moreover, the Investment Corporation strove to partner with leading real estate companies with a strong local
presence and bolster the PM Company’s efficient leasing activity. We also ensured that soliciting conditions took
into consideration the characteristics and occupancy levels of individual properties; carried out efficient advertisingefforts utilizing the power of the KDX Residence brand; utilized leasing agents; and implemented flexible sales
activities attuned to the characteristics of each of the properties in accordance with plans.
Specific measures that contributed to improvement in revenue at the rental business are as follows: with respect
to properties with stable and robust occupancy conditions, the Investment Corporation strove to raise rent levels
for and obtain key money from new tenants; raise rents when leases were renewed; increase revenue associatedwith auxiliary facilities; and improve the parking contract rate; and as measures to slash rental business expenses,
we reduced utility bills by switching the electricity supplier for common areas; changed the lighting in common
areas to LED; and reviewed the contracts for auxiliary facilities, as well as solicitation costs, etc., in order toimprove income and expenditures.
Moreover, with the aim of maintaining and/or improving the market competitiveness of our portfolio assets, theInvestment Corporation undertook planned major renovation work at two properties, updating work in common
areas as well as value-increasing work and facility updates in individually-owned areas.
The Investment Corporation continued to introduce LED lighting to common areas as part of our environmental
efforts and obtained 12 properties of DBJ Green Building Certification from external rating agencies in the end of
the 18th fiscal period (January 31, 2021).
As a result of the above, the occupancy rate for residential facilities was 94.5% as of the end of the 18th fiscal
period (January 31, 2021). The average occupancy rate for residential facilities during the 18th fiscal period was
94.1%.
As a specific measure contributing to the maintenance and improvement of revenue at the rental business forhealthcare facilities, the Investment Corporation usually visits facilities to confirm their operating status, including
revenues, expenditures, and occupancy rates, but the Investment Corporation refrained from visiting the sites
voluntarily as much as possible out of consideration for the spread of Covid-19 in this period too, and continued tomonitor operations of the managers by all possible means including online interviews about business conditions,future management policies, etc.
The Investment Corporation tried to conduct repair works with thorough prevention measure for infection as well
as talking the priority into account from the point of view of prevention of spread of COVID-19.
As a result of the above, the average occupancy rate for healthcare facilities was 100% and the occupancy rate asof the end of18th fiscal period (January 31, 2021) was 99.9%. The occupancy rate for the entire portfolio was 96.2%
as of the end of 18th fiscal period (January 31, 2021).
With regard to the hotels, the Investment Corporation will continue to operate them while keeping a close eye on
future economic trends, as the spread of the novel coronavirus has led to a significant decline in demand for lodging
both on business and vacation.

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

(Borrowing)
The Investment Corporation newly borrowed 10,170 million yen as funds for acquisition of new properties aswell as 4,900 million yen as funds for repaying borrowings of which repayment was due during the 18th fiscal
period.
As a result of the foregoing, the balance of borrowings was 138,220 million yen, the balance of the interestbearing debt including the investment corporation bond was 145,220 million yen at the end of 18th period(January 31, 2021) and the average remaining term of interest-bearing debt (Note 1) was 4.1 years, and the averageinterest rate at the end of18th fiscal period (Note 2) was 0.94%. The long-term debt ratio (Note 3) came to 87.5%,
the fixed interest-rate ratio (Note 4) was 97.1%, and the loan to value ratio (LTV) came to 51.3%.
(Note 1)

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.

18

(Note 2)(Note 3)(Note 4)

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 98.6%.
The fixed interest-rate ratio = (balance of fixed interest-ratio borrowings (including borrowings for which interest rates
are substantially fixed through interest rate swap transactions, etc.) + balance of investment corporation bonds) ÷ (balanceof borrowings + balance of investment corporation bonds)（Credit Ratings)
The status of the credit ratings as of the end of the 18th fiscal period (January 31, 2021).
Credit Rating Agency
Japan Credit Rating Agency, Ltd.(JCR)

Type
Long-term issuer rating
Bond rating

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

19

(ⅳ) Overview of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues was 8,382
million yen, operating income was 4,344 million yen, ordinary income was 3,632 million yen and net income was
3,631 million yen for the 18th fiscal period.
In regard to profit distributions for the 17th 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 3,867,815,028
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

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

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(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(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 ¥208,065per unit (subscription price of ¥201,342 per unit) through a public offeringin order to raise funds for acquiring new properties.

【Changes in Unit Price at Tokyo Stock Exchange】
The highest and lowest closing prices of the investment units listed on J-REIT section of the Tokyo Stock Exchange
for each fiscal period are as follows.
Fiscal period
For the fiscal period ended
Highest price
Lowest price14th Fiscal period
January 31, 201915th Fiscal period
July 31, 2019

16th Fiscal period
January 31, 2020
225,500

17th Fiscal period
July 31, 2020
217,400

18th Fiscal period
January 31, 2021
198,000

181,000

198,600

160,500

172,000

191,400

106,900

168,60020

（4）Distributions
The Investment Corporation intends to apply the corporate income taxation special provision (Act on Special
Measures Concerning Taxation, Article 67-15) that specifies deduction of an amount equivalent to profit distributions
as deductible expenses from an investment corporation’s taxable income, and in accordance with the distribution policy
set forth in the Investment Corporation’s certificate of incorporation, Article 38 (1), has decided to distribute 3,867,815
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 18th fiscal period amounted to 4,066 yen.
17th
18th
15th
16th
14th
From Aug.1, 2018 From Feb.1, 2019 From Aug.1, 2019 From Feb.1, 2020 From Aug.1, 2020
to Jul.31, 2020 to Jan.31, 2021
to Jul.31, 2019
to Jan.31, 2020
to Jan.31, 2019

Fiscal period

Unappropriated retained
earnings
Retained earnings(Thousand yen)(Thousand yen)

Total distribution(Thousand yen)(Distribution per unit)(Yen)

Profit distribution(Thousand yen)

(Profit distribution per unit)(Yen)

Unitcapital refunds(Thousand yen)

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

(Yen)

(Thousand yen)(Yen)

3,875,050
384,622

4,125,881
458,879

4,072,277

4,212,398

404,367

365,534

149,461
3,867,815（4,066）3,510,428

3,687,001

3,687,909

3,866,863（4,039）（4,063）（4,064）（4,065）

3,997,276

3,510,428

3,687,001

3,687,909

3,866,863

3,867,815（4,039）（4,063）（4,064）（4,065）（4,066）

−

−

−

−

−

（−）

（−）

（−）

（−）

（−）

−

−

−

−

−

（−）

（−）

（−）

（−）

（−）

−

−

−

−

−

（−）

（−）

（−）

（−）

（−）

（5）Management Policy and Issues to be Addressed
Outlook for Asset Management
The Investment Corporation primarily invests in residential facilities mainly such as rental housing, etc.,
healthcare facilities such as private senior homes with nursing care and accommodation facilities such as hotels,
based on the three core strategies: “Consistent External Growth by Making Use of Good Judgment,” “EfficientProfit Management” and “Challenge to New Business Opportunities.”
Going forward, the Investment Corporation will continue to seek maximization of unitholder value by evolving
into a REIT capable of adapting to change in social/economical structures and improving its “stability” and “ability
to pursue growth,” through diversified investment in “spaces where people live and stay” encompassing residential
facilities, healthcare facilities and accommodations.
Based on the above three principal investment targets, the Investment Corporation newly added child-care facilities
as an investment target on September 12, 2019. As "spaces where people live and stay" they are considered to haveclose affinity with the residential facilities of the Investment Corporation.

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

21

In residential facilities, the Investment Corporation focuses on the potential earnings power of land and use“location prestige,” “location convenience” and “whether there is a special market” and other metrics to determine
investment opportunities providing rental income with medium- to long-term stability, and invests also in rental
residential facilities and other residential facilities located mainly in greater Tokyo and in Other Regional Areas(government-designed municipalities and other regional cities. The same applies hereinafter.) by discerning room
types where stable rent demand can be expected, in accordance with the locational characteristics after analyzing
the attractiveness of the land in detail.
In healthcare facilities and accommodations, the Investment Corporation judges investment opportunity
considering scale and characteristic of market, regional financial affairs and status of competitive facilities, etc.
and examines investment mainly in three major metropolitan area.
The Investment Corporation believes that it will be possible to acquire properties steadily by utilizing the“judgment capabilities” cultivated as a real estate investment management professional to select excellent
investment opportunities from a wide range of investment targets.
As a property acquisition channel, the Investment Corporation use not only the pipeline from Kenedix, Inc and
Kenedix Investment Partners, Inc. pursuant to the Memorandum of Understanding concerning Real Estate
Information Provisions dated October 1, 2013 (including the change after the date and calls “Support Line MOU”.
This Support Line MOU was used for i) residential facilities, ii and) healthcare facilities and iii) accommodations
and Residential REIT department is applied for those having a priority consideration right to responsible for theasset management of the Investment Corporation) but also leverage the Asset Management Company’s own
network, including Jyukyo Holdings Co., Ltd., with which a support agreement was executed on June 15, 2017
and Shinsei Bank, Limited, HASEKO Corporation, and Mitsubishi UFJ Trust and Banking Corporation, withwhich a support agreement was executed on November 10, 2017 by the Merger, for flexible property acquisitions.
We also plan to control property acquisition timing in order to acquire properties at an advantageous timing inaccordance with the future market and financing climates, and we are considering investment in silent partnership
equities and real estate-backed securities (preferred securities, etc.).

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

22

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

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

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

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

（6）Important Subsequent Events
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meeting on February 15, 2021 and February 18,
2021 to issue new investment units to apply the funds toward payment for the acquisition of specified assets.
The payment for the issuance of new investment units through public offering has been completed on February
25, 2021, and the payment for the issuance of new investment units by third-party allotment has been completed
on March 9, 2021.
As a result, Unitholders’ capital came to 116,322,630,253 yen and Number of investment units issued andoutstanding came to 995,883 units as of March 9, 2021.

(Issuance of New Investment Units through Public Offering)
Total number of units to be offered
Issue price (offer price)
Total amount issue price (offer price)：42,500 unit
：179,985 yen per unit
：7,649,362,500 yen

23Purchase price (Amount to be paid in)：174,170 ye per units
Total amount purchase price (Amount to be paid in) ：7,402,225,000 yen
Payment date：February 25, 2021

(Issuance of New Investment Units by Third-Party Allotment)
Total number of units to be issued：2,125 units
Purchase price (Amount to be paid in)：174,170 yen per unit
Total amount purchase price (Amount to be paid in) ：370,111,250 yen
Payment date：March 9, 2021
Allottee：SMBC Nikko Securities Inc.

24

(Reference)(ⅰ) Acquisition of assets
a. The Investment Corporation acquired the following trust beneficiary interest in real estate.
Date of
Acquisition

Property
numberMarch 1,2021
March 1,
2021

Property Name

Location

Previous Owner

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

T-97

KDX Residence Tennocho

H-25

Medical-home Granda Kurakuen

Yokohama-shi,
Kanagawa
Nishinomiyashi, Hyogo

Non-Disclosure (Note 1)
GK KRF96

Total(Note 1)

(Note 2)
(Note 3)(Note 4)（Note 3）

843

907

2,709

2,780

3,553

3,687

The trust beneficiary interest sales contract associated with the assets for T-91 fall under the forward commitments, etc. by
the Investment Corporation as specified in the Financial Services Agency “Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.”
Not disclosed according to seller’s intention“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-beacquired assets and is rounded down to the nearest million yen.
“Appraisal date” for T-91is July 31, 2020, for T-92 and T-94 is August 1, 2020, and for T-93 is September 10, 2020.

b. The Investment Corporation executed trust beneficiary interest sales contract and real estate sales contract
concerning the following trust beneficiary interest in real estate and real estate (the “to be acquired assets”) on
October 27, 2020.
Date of tobe acquired

Property
number

Property Name

Location

Previous Owner

AcquisitionPrice(scheduled)(mil.yen)Appraisal value（mil.yen）

910

982

780

854

1,720

1,800

3,087

3,250

6,497

6,886

（Note 3）（Note 2）

April 1, 2021

T-98

KDX Residence
Kawasaki

Kawasaki-shi,
Kanagawa

May 6, 2021

T-99

KDX Residence
Kamata-minami II (Note 1)

Ota-ku, Tokyo

June 1, 2021

H-26

Rihabiki-home Granda
Kobe Kitano (Note 1)

Kobe-shi
Hyogo

August 2,
2021

T-100

KDX Residence
Kamishakujii II

Nerima-ku,
Tokyo

JYUKYO Co.,Ltd.
JYUKYOKENSETSU Co.,Ltd.
SMFL MIRAI
Partners
Company, Limited
GK KRF96

Total(Note 1)
(Note 2)

(Note 3)T-9 and R-12 are the acquisitions of an additional portion of the properties that are already partially owned by the Investment
Corporation. T-9 is a whole building of the property and R-12 is a part of the land of the property.
“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-beacquired assets and is rounded down to the nearest million yen.
“Appraisal Date” is October 1, 2020.

(ii) Sale of Asset
The Investment Corporation sold the following trust beneficiary interest in real estate.
Date of tobe sold

Property
numberFebruary 5,
2021

T-23

(Note 1)

(Note 2)
(Note 3)

Property Name

Location

Previous Owner

Sold Price(scheduled)(mil.yen)Appraisal value（mil.yen）

1,110

870

（Note 1）KDX Residence
Sendagaya

Shibuya-ku,
Tokyo

Non-Disclosure(Note 3)（Note 2）

“Sale price” represent the sales price amount of trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in trust beneficiary interest sales contract, and rounded down to the nearest
million yen.
“Appraisal date “ is January 31, 2021.
Not disclosed according to seller’s intention

25

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

14th
As of January 31,
2019

15th
As of July 31,
2019

16th
As of January 31,
2020

17th
As of July 31,
2020

18th
As of January 31,
2021

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

869,133

907,458

907,458

951,258

951,258

93,226

99,731

99,731

108,550

108,550

12,484

11,684

10,39011,005

11,317

Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)（2）Matters concerning Investment Units
Major unitholders as of January 31, 2021 are as follows.
Number ofNameinvestment units

Address

held

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

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

255,934

26.90

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

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

202,770

21.31

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

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

45,972

4.83

29,751

3.12

23,1402.43

18,813

1.97

14,4701.522-chome,8-12, Harumi 1-chome, Chuo-ku,
Tokyo

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

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

Kenedix, Inc.

Mitsubishi UFJ Trust and Banking Corporation

STATE STREET BANK WEST CLIENTTREATY 505234

11-3, Hamamatsucho 2-chome, Minatoku, Tokyo
Standing proxy: The Master Trust Bankof Japan, Ltd.
Shinagawa Intercity Tower A 15-1, 2chome, Kohnan, Minato-ku, Tokyo
Standing proxy: Mizuho Bank, Ltd.

The Gunma Bank, Ltd.

194, Motosojamachi, Maebashi-shi,
Gunma

13,133

1.38

The Hokkoku Bank, Ltd.

8-12, Harumi 1-chome, Chuo-ku, Tokyo
Standing proxy: Custody Bank of Japan,
Ltd.

11,746

1.23

Japan Securities Finance Co., Ltd.

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

11,4061.19

627,135

65.92

Total

(Note) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places（3）Matters Concerning Directors and Auditor(ⅰ) The Executive Directors, Supervisory Directors and the Independent Auditor during the 18th fiscal

26

period are as follows.
Total amount offees
Position

Name

Other concurrent title

paid during theperiod(thousand yen)

Keisuke Sato

Executive
Director

Katsue Okuda

Osamu Chiba

Supervisory
Director（Note ）

Satoshi Ogawa

Soichiro Iwao

Independent
auditor(Note )

Ernst & Young ShinNihon
LLC

Kenedix Real Estate Fund Management, Inc.
Director & COO, Head of Residential REIT Department
Ogata Appraisal Corporation, Director
Lecturer in Meiji University’s Graduate School of Global
Business
Kudan Ogata Holdings Corporation, Representative
director
Kudan Urban Appraisal Co., Ltd., Director
CERESPO CO., LTD., Auditor
Wealth Management, Inc., External Investment
Committee
Akebono Law Office, Attorney
Toin Law School, Associate Professor
Maruzen Foods Corporation, Outside Auditor
IMAGICA GROUP Inc., Outside Director
Daini Tokyo Bar Association, Vice President
Ogawa CPA Office, CPA
GK Mercury Consulting, Representative Partner
Oedo-Onsen Monogatari Co., Ltd, Auditor
Ooedo Onsen Monogatari Hotels & Resorts Co., Ltd.
AuditorHungarian Medical Universities, Director
National Federation of Industrial Health Organization,
Director
Iwao Consultant Office, Director
Japan Society for Dying with Dignity, President
−

1,800

1,800

1,500

1,500

1,500

12,000Supervisory Director may be an officer of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation.

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

（4）Asset Management Company, Custodian and General Administrators
The asset management company, custodian and general administrators as of the end of the 17th fiscal period are as
follows.
Classification

Name

Asset manager
CustodianKenedix Real Estate Fund Management, Inc.

General administrator (Unitholder registry)

Sumitomo Mitsui Trust Bank, Limited

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

Mizuho Trust & Banking Co., Ltd.

General administrator (Administration)

Mizuho Trust & Banking Co., Ltd.

General administrator(Regarding investment corporation bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

27

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

Use

17th
As of July 31, 2020
Total amountComposition ratio
held(%)(mil.yen)(Note 5)Areaof assets（Note 4）

Residential
Trustbeneficiaryinterest in
real
estate(Note 6)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

（Note 4）

131,77348.3

144,31151.0

55,851

20.5

55,561

19.6

22,5298.3

22,447

7.9(Note 2)

29,872

10.9

29,515

10.4

Other (Note 3)

1,293

0.5

1,277

0.5

5,111

1.9

5,098

1.8

246,43190.3

258,211

91.2

―

―

172

0.1

1,798

0.7

―

―

1,798
24,730

0.7
9.1

172
24,7880.1
8.8

272,960

100.0

283,172100.0(Note 2)

Healthcare

18th
As of January 31, 2021
Total amountComposition ratio
held(%)(mil.yen)(Note 5)

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

Accommodation Tokyo Metropolitan
Area (Note 1)
Total (Trust beneficiary interest in real estate)
Real
Healthcare
Other Regional Area
(Note 2)
estate(Note 6)
Other
Tokyo Metropolitan
Area (Note 1)
Total (Real estate)
Bank deposits and other assets
Total assets(Note 1) “Tokyo Metropolitan Area” means major cities in Tokyo, Kanagawa, Saitama and Chiba.
(Note 2) “Other regional areas” include government-designed municipalities and other regional cities.
(Note 3) “Other” means cities except Tokyo Metropolitan Area and Other regional areas.
(Note 4) “Total amount held” means carrying amounts on the balance sheet (amounts of Trust beneficiary interests in real property and real
property are book values net of depreciation) at the end of fiscal period and rounded off to one dismal place.
(Note 5) “Composition ratio” means the ratio of carrying amounts of each classified assets to total assets on balance sheet and rounded off to
one dismal place.
(Note 6) Rihabili-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.

（2）Major Assets Owned
The overview of major assets owned by the Investment Corporation (Top 10 properties in net book value as ofJanuary 31, 2021) are as follows.
No.

Name of property

T-78

KDX Residence Toyosu
KDX Residence Shukugawa
Hills

7,650

6,811.38

Ratio of rental
Occupancy
revenue to total
Major use
Rate (%)
rental revenue(Note 3)(Note 4)(%)
6,811.38
100.0
2.2
Residential

7,265

17,575.39

17,217.34

98.0

2.6

Residential

Tsukui Sun-shine Machida

7,073

15,553.33

15,553.33

100.0

NonDisclosure

Healthcare

R-45
H-22

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

Leased area(m²) (Note 2)(Note 5)

H-10

Activa Biwa

6,283

39,649.84

39,649.84

100.0

NonDisclosure

Healthcare(Note 5)T-56

KDX Residence Hanzomon

4,930

4,854.23

4,746.87

97.8

1.6

Residential

T-1

KDX Daikanyama Residence

4,744

5,338.99

4,782.41

89.6

1.9

Residential

R-39

KDX Residence Ohori Harbor
View Tower

4,430

11,855.63

10,201.72

86.0

2.1

Residential

100.0

NonDisclosure

Healthcare

H-3

Joy Stage Hachioji

3,749

13,812.27

13,812.27(Note 5)

T-52
H-16

KDX Residence Togoshi
Anesis Teradacho

3,706
3,465

4,591.76
7,856.64

4,359.70
7,856.64

94.9

1.5

Residential

100.0

NonDisclosure

Healthcare

28

(Note 5)

Total

53,299127,899.46

124,991.50

-

19.5

（Note 1）“Leasable area” is the floor area of each portfolio asset for which the building is leasable (if a portfolio asset has more than one
building, the total floor area of leasable buildings) that is set forth in a lease agreement as of January 31, 2021.
（Note 2）“Leased area” is the floor space set forth in a lease agreement that has been executed with an end tenant and leased as of January
31, 2021.
（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.

29

（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 18th fiscal period
Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)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

4,744

6,800

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

1,681

2,410

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

TBI

772

1,090

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

TBI

1,443

1,950

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

TBI

601

973

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

TBI

2,605

3,690

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

TBI

2,161

2,390

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

TBI

634

778

TBI

1,274

1,830

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

TBI

1,173

1,530

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

TBI

3,068

3,810

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

2,846

3,790

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

TBI

2,262

2,580

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

TBI

2,127

2,860

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

TBI

1,794

2,510

T-19 KDX Residence Azabu East

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

TBI

1.575

2,150

T-20 KDX Residence Takanawa

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

TBI

789

1,110

T-21 KDX Residence Nishihara
KDX Residence Daikanyama
T-22
II
T-23 KDX Residence Sendagaya
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

1,489

1,990

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

TBI

771

1,040

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

TBI

632

870

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,174

4,210

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1.144

1,470

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

TBI

3,213

4,350

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,297

3,080

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

TBI

1,020

1,470

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

704

1,010

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

TBI

1,272

1,560

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

TBI

896

1,200

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

TBI

747

1,020

T-33 KDX Residence Yoga

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

TBI

688

947

T-34 KDX Residence Shimouma

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

TBI

593

814

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

1,238

1,480

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

TBI

1,054

1,400

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

TBI

1,062

1,300

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

723

996

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

TBI

785

1,050

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

TBI

861

1,130

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

TBI

808

1,060

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

Cosmo Heim Motosumiyoshi

T-10

KDX Musashi Nakahara
Residence

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

Residential Facilities

Tokyo Metropolitan Area

30

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

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

T-42
T-43
T-44
T-45
T-46

KDX Residence Itabashi
HonchoKDX Residence Azusawa
KDX Residence Tobu
NerimaKDX 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

587

818

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

TBI

543

681

27-9, Kitamachi 1-chome, Nerima-ku, Tokyo

TBI

385

552

TBI

760

1,030

TBI

999

1,180

TBI

1,671

2,210

TBI

1,323

1,770

TBI

1,037

1,390

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

554

710

TBI

1,320

1,650

31

Use

Area

No.

Name of property

Location

Form ofownership(Note3)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

3,706

4,980

TBI

2,545

3,370

TBI

1,802

2,580

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,592

3,430

T-56 KDX Residence Hanzomon

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

TBI

4,930

6,010

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

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

TBI

859

1,070

120-1, Yaraicho, Shinjuku-ku, Tokyo

TBI

1,369

2,150

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

TBI

2,333

2,530

T-60 KDX Residence Seijo

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

TBI

1,411

1,640

T-61 KDX Residence Akihabara

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

TBI

1,233

1,640

T-62 KDX Residence Iriya

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

TBI

1,047

1,450

T-63 KDX Residence Tachikawa

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

TBI

2,935

3,750

TBI

1,154

1,540

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

TBI

1,091

1,390

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

Residential Facilities

Tokyo Metropolitan Area

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

TBI

1,179

1,940

T-67 KDX Residence Kanda

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

TBI

711

1,200

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

2,906

4,630

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

TBI

1,155

1,340

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

TBI

1,234

1,820

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

TBI

799

1,190

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

TBI

557

897

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

TBI

693

1,000

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

TBI

649

859

T-75 KDX Residence Shin-otsuka 44-16, Higashi-Ikebukuro 5-chome, Toshima-ku,
Tokyo

TBI

765

1,120

TBI

894

1,230

T-77 KDX Residence Ryogoku

26-14, Shimotakaido 1-chome, Suginami-ku,
Tokyo
19-13, Kamesawa 2-chome, Sumida-ku, Tokyo

TBI

841

1,260

T-78 KDX Residence Toyosu

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

TBI

7,650

7,820

T-79 KDX Residence Asagaya

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

TBI

1,961

2,280

TBI

2,685

2,750

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

TBI

1,397

1,450

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

TBI

1,133

1,290

T-76 KDX Residence SakurajosuiT-80 KDX Residence Hiyoshi
KDX Residence
T-81
Kamikitazawa
T-82 KDX Residence Kaminoge
KDX Residence HigashiT-83
Asakusa

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

TBI

703

767

KDX Residence NishiT-84
Funabashi

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

TBI

1,015

1,050

T-85 KDX Residence Hatagaya

2-24-7 Hatagaya Shibuya-ku, Tokyo

TBI

2,635

2,730

T-86

KDX Residence Asagaya II

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

TBI

974

1,000

T-87

KDX Residence Gakugeidaigaku 2-4-3 Takaban, Meguro-ku, Tokyo

TBI

769

828

T-88

KDX Residence Kamata-minami 3-9-2 Minami-Rokugo, Ota-ku, Tokyo

TBI

1,975

2,150

T-89

KDX Residence Kichijoji

1-23-20 Kichijoji-Higashimachi, Musashino-shi, Tokyo

TBI

657

650

T-90

KDX Residence Mitaka

4-15-31 Shimorenjaku, Mitaka-shi,Tokyo

TBI

2,696

2,870

T-91

KDX Residence Nakanobu

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

TBI

850

901

32

Use

Area

No.

Name of property

Location

Form ofownership(Note3)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

882

908

T-93

KDX Residence Hatchobori

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

TBI

3,231

3,530

T-94

KDX Residence Nakaitabashi

68-11, Yayoicho, Itabashi-ku, Tokyo

TBI

1,856

1,850

T-95

KDX Residence Shonandai

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

TBI

1,572

1,610

T-96

KDX Residence Ikebukuro West 2-6, Nakamarucho, Itabashi-ku, Tokyo

TBI

2,340

2,450

R-2

KDX Jozenjidori Residence

TBI

906

1,340

R-3

KDX Izumi Residence

TBI

1,026

1,460

R-4

KDX Chihaya Residence

TBI

970

1,460

TBI

2,657

3,600

TBI

1,309

2,000

TBI

1,518

2,100

TBI

758

1,020

TBI

844

1,060

TBI

452

595

TBI

488

722

TBI

2,205

2,610

TBI

845

1,070

TBI

781

1,040

TBI

762

940

TBI

408

513

R-7

KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

KDX Residence Odori Koen

R-5

Other Regional Area

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

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

33

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)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

1,337

1,710

TBI

1,252

1,630

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

TBI

1,274

1,439

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

661

902

(Note 2)

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

Other Regional Area

Residential Facilities

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

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

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

TBI

501

689

TBI

1,055

1,240

TBI

1,472

1,980

TBI

538

729

TBI

632

921

TBI

713

907

TBI

728

951

TBI

3,399

4,580

TBI

956

1,140

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

TBI

3,106

3,680

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

TBI

1,943

2,450

TBI

4,430

5,170

TBI

888

1,770

TBI

1,247

1,710

TBI

628

754

TBI

1,733

1,750

TBI

2,448

2,620

7-1, Hinoikecho, Nishinomiya-shi, Hyogo

TBI

7,265

7,330

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

TBI

1,410

1,420

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

Subtotal
H-1

H-3

Irise Kamata/Yuseien
Nichii Home NakanoMinamidai
Joy Stage Hachioji

H-4

Yuimaru Hijirigaoka(Note 2)

H-5

Nichii Home Tama Plaza

H-2

Healthcare Facilities

Tokyo Metropolitan Area

199,872251,591

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

TBI

1,060

1,120

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

TBI

1,761

1,770

924-2 Yokokawamachi, Hachioji-shi, Tokyo

TBI

3,749

3,760

TBI

1,068

1,120

2-22-4 Hijirigaoka, Tama-shi, Tokyo (Building A)
2-20-6 Hijirigaoka, Tama-shi, Tokyo (Building B)
2-21-2 Hijirigaoka, Tama-shi, Tokyo (Building C)
Nichii Home Tama Plaza

Other Regional Area

TBI

2,809

2,980

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 (Note2)
1-11-8 Oyamagaoka Machida-shi, Tokyo (East
Tower)
H-23 Serabi Ebisu
2-10-20, Mita, Meguro-ku, Tokyo
6-3-1 Tsukisamuchuodori, Toyohira-ku, Sapporo-shi,
H-6 TenHokkaido
13-7-10 Nishioka Sanjo, Toyohira-ku, Sapporo-shi,
H-7 Irise Nishioka
Hokkaido
H-8 Izarie Eniwa Building
2-1 Aioimachi, Eniwa-shi, Hokkaido

TBI

3,211

3,190

TBI

7,073

7,090

TBI

1,713

1,700

TBI

2,576

2,660

H-9

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

TBI

922

992

6-16-16 Ogoto, Otsu-shi, Shiga

TBI

6,283

6,570

Sawayaka Sakura Nibankan

H-10 Activa Biwa(Note 2)

TBI

807

858

TBI

1,553

1,740

34

Appraisal value

Use

Area

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

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

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
Tarumi
Hyogo
Rihabili-home Granda Mondo
H-12
10-10 Hayashidacho, Nishinomiya-shi, Hyogo
Yakujin
H-13 Excellent Nishinomiya
2-4-3 Sumiredai, Nishinomiya-shi, Hyogo

TBI
TBI and
RE
TBI

2,049

2,110

1,198

1,260

918

975

H-15 Excellent Kitano

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

TBI

751

780

H-16 Anesis Teradacho

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

TBI

3,465

3,630

H-17 Rococo-riha

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

TBI

2,046

2,170

H-18 Orage Suma

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

TBI

2,758

2,810

35

Appraisal value

Area

Use

No.

Name of property

Location

Form ofownership(Note3)Book
value(Millionyen)

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

Other
Regional
Area
OthersHealthcare Facilities

H-19 Canadian Hill

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

TBI

1,822

1,860

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

1,391

1,440

TBI

1,141

1,380

TBI

1,277

1,380

53,41355,345

H-24 Arute Ishiyagawa

H-14 Gran Hills Ogawarako

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

Subtotal

Tokyo
Metropolitan Area

Accommodation
Facilities

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

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

TBI

2,454

2,380

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

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

TBI

2,643

2,610

Subtotal
Total

5,098

4,990

258,384

311,926(Note1) “Appraisal value at the end of the fiscal period” is the appraisal value in a real property appraisal prepared, pursuant to the asset
appraisal techniques and standards in the Investment Corporation’s certificate of incorporation and the rules of the Investment Trusts
Association, Japan, by Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K. or
Tanizawa Sogo Appraisal Co., Ltd.
(Note 2) R-24 and H-4 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.
(Note3) “TBI” represents trust beneficiary interest in real estate and “RE” represents real estate.

36

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as follows.
17th(From February 1, 2020 to July 31, 2020)

18th(From August 1, 2020 to January 31, 2021)

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)
(%)
(%)

No.

Name of property

T-1

KDX Daikanyama Residence

1

99.0

164

2.0

1

89.6

156

1.9

T-3

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

1

98.2

59

0.7

1

94.6

57

0.7

1

98.0

28

0.3

1

95.2

26

0.3

1

97.8

51

0.6

1

94.0

52

0.6

1

100.0

25

0.3

1

95.5

25

0.3

(Note 3)

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

(Note 3)

1

98.9

107

1.3

1

98.9

106

1.3

―

100.0

43

0.5

1

96.7

58

0.7

1

100.0

26

0.3

1

100.0

27

0.3

1

99.3

65

0.8

1

95.3

62

0.7

1

96.5

48

0.6

1

96.6

49

0.6

1

98.6

113

1.4

1

96.3

109

1.3

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

1

97.8

95

1.2

1

98.1

93

1.1

1

93.5

64

0.8

1

93.5

61

0.7

1

98.5

75

0.9

1

98.4

74

0.9

1

90.3

65

0.8

1

88.5

64

0.8

T-19

KDX Residence Azabu East

1

92.0

56

0.7

1

94.3

54

0.6

T-20

KDX Residence Takanawa

1

87.4

28

0.3

1

100.0

26

0.3

T-21

1

97.9

50

0.6

1

94.2

51

0.6

1

100.0

27

0.3

1

95.5

25

0.3

1

100.0

21

0.3

1

100.0

24

0.3

1

100.0

97

1.2

1

100.0

104

1.2

1

95.2

41

0.5

1

89.8

39

0.5

1

97.5

113

1.4

1

97.0

110

1.3

1

97.8

82

1.0

1

94.0

78

0.9

1

96.3

37

0.5

1

96.3

35

0.4

1

100.0

25

0.3

1

94.2

24

0.3

1

97.3

43

0.5

1

100.0

43

0.5

1

95.6

29

0.4

1

97.8

28

0.3

T-32

KDX Residence Nishihara
KDX Residence Daikanyama
II
KDX Residence Sendagaya
KDX Residence Nihombashi
Suitengu
KDX Residence Nihombashi
Hakozaki
KDX Residence Higashishinjuku
KDX Residence Yotsuya
KDX Residence Nishishinjuku
KDX Residence Kagurazaka
KDX Residence Futako
Tamagawa
KDX Residence Komazawa
Koen
KDX Residence Mishuku

1

100.0

26

0.3

1

95.3

26

0.3

T-33

KDX Residence Yoga

1

100.0

26

0.3

1

97.5

24

0.3

T-34

KDX Residence Shimouma

1

100.0

20

0.3

1

100.0

21

0.3

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

1

100.0

41

0.5

1

100.0

41

0.5

1

98.7

39

0.5

1

94.6

39

0.5

1

100.0

39

0.5

1

97.2

38

0.5

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

1

96.5

28

0.3

1

96.5

28

0.3

1

98.1

28

0.3

1

90.0

27

0.3

1

98.2

30

0.4

1

100.0

30

0.4

1

94.9

31

0.4

1

95.0

30

0.4

1

96.1

24

0.3

1

100.0

23

0.3

T-15

Residential Facilities

Tokyo Metropolitan Area

T-22
T-23
T-24
T-25
T-26
T-27
T-28
T-29
T-30
T-31

T-35

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

37

17th
(From February 1, 2020 to July 31, 2020)

18th(From August 1, 2020 to January 31, 2021)

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)
(%)
(%)

No.

Name of property

T-43

KDX Residence Azusawa
KDX Residence Tobu
NerimaKDX Residence Yokohama
KannaiKDX Residence
Miyamaedaira
KDX Residence Machida

1

100.0

20

0.2

1

97.9

20

0.2

1

97.8

17

0.2

1

97.5

17

0.2

1

92.5

34

0.4

1

91.8

32

0.4

1

100.0

36

0.4

1

95.4

37

0.4

1

86.8

60

0.7

1

98.0

63

0.8

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

1

100.0

45

0.6

1

97.3

45

0.5

1

100.0

34

0.4

1

100.0

35

0.4

1

100.0

19

0.2

1

95.4

19

0.2

1

96.3

41

0.5

1

96.5

39

0.5

(Note 3)

T-44
T-45
T-46
T-47
T-48

(Note 3)38

17th
(From February 1, 2020 to July 31, 2020)

18th(From August 1, 2020 to January 31, 2021)

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)
(%)
(%)

No.

Name of property

T-52

1

96.3

122

1.5

1

94.9

122

1.5

1

93.3

88

1.1

1

89.4

79

1.0

T-54

KDX Residence Togoshi
KDX Residence Shinagawa
SeasideKDX Residence Ojima

1

93.2

66

0.8

1

88.9

64

0.8

T-55

KDX Residence Oyama

1

97.9

96

1.2

1

96.7

92

1.1

T-56

KDX Residence Hanzomon

1

98.6

132

1.6

1

97.8

135

1.6

T-57

1

100.0

27

0.3

1

100.0

26

0.3

1

93.7

52

0.6

1

92.5

50

0.6

T-59

B-Site Akihabara
KDX Residence Kagurazaka
Dori
KDX Residence Sendagi

1

98.2

67

0.8

1

100.0

66

0.8

T-60

KDX Residence Seijo

1

96.8

43

0.5

1

94.6

42

0.5

T-61

KDX Residence Akihabara

1

96.9

39

0.5

1

90.9

43

0.5

T-62

KDX Residence Iriya

1

95.9

39

0.5

1

94.5

39

0.5

T-63

KDX Residence Tachikawa

1

93.0

99

1.2

1

91.4

96

1.1

T-64

1

100.0

54

0.7

1

100.0

55

0.7

1

100.0

39

0.5

1

98.7

39

0.5

T-66

KDX Residence Tsurumi
KDX Residence Morishita
ChitoseKDX Residence Akasaka

1

85.9

38

0.5

1

100.0

34

0.4

T-67

KDX Residence Kanda

1

100.0

29

0.4

1

95.0

29

0.4

T-68

1

91.4

97

1.2

1

90.4

88

1.1

1

96.9

31

0.4

1

93.0

31

0.4

1

91.7

40

0.5

1

86.0

39

0.5

1

100.0

28

0.3

1

87.3

26

0.3

1

95.2

22

0.3

1

100.0

22

0.3

1

100.0

25

0.3

1

100.0

24

0.3

1

100.0

24

0.3

1

93.5

23

0.3

T-75

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

1

100.0

22

0.3

1

100.0

22

0.3

T-76

KDX Residce Sakurajosui

1

93.8

30

0.4

1

88.3

27

0.3

T-77

KDX Residence Ryogoku

1

93.6

30

0.4

1

91.4

29

0.4

T-78

KDX Residence Toyosu

1

100.0

181

2.2

1

100.0

180

2.2

T-79

KDX Residence Asagaya

1

98.2

53

0.6

1

100.0

50

0.6

T-80

1

97.9

80

1.0

1

99.0

80

1.0

1

92.3

37

0.5

1

97.4

37

0.4

T-82

KDX Residence Hiyoshi
KDX Residence
Kamikitazawa
KDX Residence Kaminoge

1

100.0

26

0.3

1

100.0

26

0.3

T-83

KDX Residence Kaminoge

1

100.0

20

0.2

1

100.0

20

0.2

1

100.0

28

0.3

1

100.0

28

0.3

1

98.3

54

0.7

1

95.7

61

0.7

1

97.0

24

0.3

1

90.6

22

0.3

1

91.4

15

0.2

1

78.8

15

0.2

(Note 3)

T-53

T-58

T-65

T-69
T-70

Residential Facilities

Tokyo Metropolitan Area

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

T-81

T-84
T-85

KDX Residence NishiFunabashi
KDX Residence Hatagaya(Note 3)

1

98.2

35

0.4

1

100.0

50

0.6

T-89

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

1

50.6

5

0.1

1

87.4

12

0.1

T-90

KDX Residence Mitaka

1

23.8

3

0.0

1

73.6

42

0.5

T-91

KDX Residence Nakanobu

−

−

−

−

1

95.2

19

0.2

T-92

KDX Residence Ichika

−

−

−

−

1

95.8

15

0.2

T-93

KDX Residence Hatchobori

−

−

−

−

1

39.2

8

0.1

T-94

KDX Residence Nakaitabashi

−

−

−

−

1

6.5

1

0.0

T-86
T-87
T-88

39

17th
(From February 1, 2020 to July 31, 2020)

18th(From August 1, 2020 to January 31, 2021)

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)
(%)
(%)

No.

Name of property

T-95

KDX Residence Shonandai
KDX Residence Ikebukuro
West

−

R-2

KDX Jozenji Dori Residence

R-3
R-4

(Note 3)(Note 3)

−

−

−

−

1

94.9

KDX Izumi Residence

1
1

R-7

KDX Chihaya Residence
KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

R-18

KDX Residence Odori Koen
KDX Residence Kikusui
Yojo
KDX Residence Toyohira
Koen
KDX Residence Ichiban-cho
KDX Residence Izumi Chuo
(Note 4)
KDX Residence Higashisakura I
KDX Residence Higashisakura II
KDX Residence Jingumae

R-19

KDX Residence Nishi-oji

T-96

R-5

Other Regional Area

R-10
R-11
R-13
R-15
R-16
R-17

−

1

94.1

22

0.3

−

−

1

100.0

−

−

49

0.6

1

95.9

50

0.6

95.2

44

0.5

1

95.0

42

0.5

94.5

47

0.6

1

95.0

46

0.6

1

98.0

110

1.3

1

91.3

106

1.3

1

98.6

58

0.7

1

100.0

60

0.7

1

97.6

74

0.9

1

95.9

74

0.9

1

97.4

33

0.4

1

92.3

33

0.4

1

80.7

36

0.4

1

97.9

34

0.4

1

90.7

22

0.3

1

93.8

22

0.3

1

93.7

26

0.3

1

93.7

26

0.3

−

−

3

0.0

−

−

−

−

1

89.3

92

1.1

1

91.4

87

1.0

1

92.5

39

0.5

1

100.0

37

0.5

1

96.7

40

0.5

1

94.6

39

0.5

1

98.0

34

0.4

1

96.9

33

0.4

40

17th
(From February 1, 2020 to July 31, 2020)

Area
Use

No.

Name of property

18th(From August 1, 2020 to January 31, 2021)

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)

R-20

KDX Residence Saiin

1

94.2

18

0.2

1

97.9

18

0.2

R-21

1

95.5

56

0.7

1

97.0

56

0.7

1

97.8

55

0.7

1

92.7

55

0.7

1

100.0

54

0.7

1

98.4

54

0.6

1

95.5

29

0.4

1

98.4

29

0.4

R-26

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

1

100.0

23

0.3

1

96.5

24

0.3

R-27

KDX Residence Sannomiya

1

96.1

38

0.5

1

95.0

38

0.5

R-28

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

1

85.9

58

0.7

1

83.1

62

0.7

1

98.5

27

0.3

1

96.9

28

0.3

1

90.5

30

0.4

1

96.8

32

0.4

1

91.8

31

0.4

1

94.4

31

0.4

1

91.3

28

0.3

1

95.3

28

0.3

1

100.0

121

1.5

1

100.0

121

1.5

1

100.0

33

0.4

1

98.4

33

0.4

1

97.6

106

1.3

1

95.8

105

1.3

1

96.0

104

1.3

1

95.5

100

1.2

1

83.8

180

2.2

1

86.0

174

2.1

1

95.0

55

0.7

1

94.9

53

0.6

1

99.0

43

0.5

1

94.8

41

0.5

1

98.1

23

0.3

1

98.1

23

0.3

1

94.1

59

0.7

1

95.1

58

0.7

KDX Residence Hiyoshi
KDX Residence Shukugawa
Hills
KDX Residence Sendaiekihigashi
Subtotal

1

94.9

74

0.9

1

99.1

75

0.9

1

94.6

207

2.5

1

98.0

213

2.6

1

98.9

34

0.4

1

89.8

39

0.5

6,475

78.1

6,564

78.3

R-22
R-24
R-25

R-29
R-30

Other Regional Area

Residential Facilities

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

124

95.3

131

94.5

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-6

Ten

1

1

H-7

Irise Nishioka

1

100.0 disclosure disclosure（Note5）（Note5）100.0

1100.0 disclosure disclosure（Note5）（Note5）100.0

H-8

Izarie Eniwa Building

1

100.0

1

100.0

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

H-10

1

100.0

1

100.0

1

100.0

1

100.0

1

100.0

1

96.2

H-13

Activa Biwa
Sompo Care LAVIERE Kobe
TarumiRihabili-home Granda Mondo
Yakujin
Excellent Nishinomiya

1

100.0

1

100.0

H-15

Excellent Kitano

1

100.0

1

100.0

H-1

Other Regional Area

Healthcare Facilities

Tokyo Metropolitan Area

H-2

H-11
H-12

Non-

Non-

Non-

Non-

41

17th
(From February 1, 2020 to July 31, 2020)

Area
Use

No.

Name of property

18th(From August 1, 2020 to January 31, 2021)

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)

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

42

17th
(From February 1, 2020 to July 31, 2020)

Area

Use

No.

18th
(From August 1, 2020 to January 31, 2021)

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)(%)(%)

Name of property(Note 3)

Other
Other
Regional
Area
Healthcare Facilities

H-20

Anesis Hyogo

1

100.0

H-24

Arute Ishiyagawa

1

100.0

(Note 3)

1

100.0

1

100.0

NonNondisclosure disclosure（Note5）

H-14

Gran Hills Ogawarako

1

100.0

24

100.0

1

100.0

1

100.0

Subtotal

2

100.0

Total

150

96.8

Subtotal

Tokyo
Metropolitan Area
Accommodation
Facilities

A-1

Hotel LiVEMAXOtsuka-EkimaeTokyo-A-2

Hotel
LiVEMAX
Yokohamaeki-Nishiguchi

NonNondisclosure disclosure（Note5）

1,696

20.4

（Note5）

1

100.0

24

99.9

1

100.0

NonNondisclosure disclosure（Note5）

1,696

20.2

NonNondisclosure disclosure（Note5）（Note5）

1

100.0

2

100.0

8,289

100.0

157

96.2

（Note5）（Note5）

8,382

100.0

(Note1) Regarding residential, in the “number of tenants” column, if a master lease agreement has been executed with a master lease company,
1 is entered as the number of tenants. As of january 31, 2021, master lease agreements had been executed for all investment assets of
the Investment Corporation except for Raffine Minami-magome; the “total” for the “number of tenants” is the sum of the master leaseagreements for the properties (running number); and for the properties with no master lease agreement, the number of end tenants isentered. For reference, the total number of master lease companies is 12.
"Total number of tenants" of the healthcare facility and accommodation facility lists the total number of tenants of the master lease
contract pertaining to each asset effective as of the end of January 2021.
(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) (R-15) KDX Residence Izumi Chuo was sold on February 28, 2020.
(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 18th fiscal period are as follows.
Contact amount (million yen)Classification

Over-the-counter transactions

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

Fair valueOver 1 year (Note 1)
112,520

100,520(million yen)
(Note 2) (Note 3)

-522

Total
112,520
100,520−-522(Note 1) The interest rate swap contract amount, etc. is based on the assumed principal.
(Note 2) With respect to those meeting the requirements for special treatment under the accounting standards for financial products, the fairvalue is not listed.
(Note 3) Appraised at the price presented by the financial institution that is the other party in the transaction.

(5)

Other assets

Real estate properties as well as beneficiary interests having real estate properties as major trust assets
are all set forth in (3) Details of portfolio assets above. There are not any other specified assets theInvestment Corporation owns at the end of 17th fiscal period except for those mentioned in (3) above.

(6)

Asset ownership per country or region

43

There is no relevant information for countries and regions other than Japan.

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 19 the fiscal period ending July 31, 2021. 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-63
H-1

Name of property

KDX Residence Tachikawa
Irise Kamata/Yuseien

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

Location

PurposeScheduled

Tachikawashi, Tokyo

Major renewal
construction

From Febuary 2021 To
July 2021

87

−

−

Ota-ku, Tokyo

Major renewal
construction

From February 2021
To July 2021

45

−

−

From February 2021
To July 2021

42

−

−

T-60

KDX Residence Seijo

Setagaya-ku,
Tokyo

Major renewal
construction

T-32

KDX Residence Misyuku

Shinjuku-ku,
Tokyo

Major renewal
construction

From February 2021
To July 2021

38

−

−

T-34

KDX Residence Shimouma

Setagaya-ku,
Tokyo

Major renewal
construction

From February 2021
To July 2021

38

−

−

T-47

KDX Residence Machida

Sagamihara- parking facilities
shi, Kanagawa
replacement

From February 2021
To July 2021

24

−

−

From February 2021
To July 2021

17

−

−

From February 2021
To July 2021

16

−

−

From February 2021
To July 2021

7

−

−

Mechanical

T-21

R-18

T-10

construction
MechanicalShibuya-ku, parking facilities
KDX Residence NishiharaTokyo
replacement
construction
Water heater
Nagoya-shi,
KDX Residence Jingumae
replacement
Aichi
construction
Elevating
KDX
MusashiNakahara Kawasaki-shi,
equipment
Kanagawa
Residence
replacement
construction（2）Capital expenditures during the 18th fiscal period
The table below shows major capital expenditures for renovations, repairs and other projects in the 18th fiscal period
ended January 2021. The construction cost for the period amounted to 753 million yen, consisting of 478 million yen
of capital expenditures and 275 million yen of repair and maintenance expenses.
No.
R-10

Name of property
KDX
Saiwai-cho
Kikusui Yojo

Residence

PurposeTerm

Sapporo-shi,
Hokkaido

Major renewal
construction

From March 2020 To
August 202073

From September
2020 To January 2021

29

From July 2020 To
August 2020
From November
2020 To December
2020

T-28

KDX Residence Nishi-shinjuku

Shinjuku-ku,
Tokyo

Major renewal
construction

H-5

Nichi Home Tama Plaza

Kawasaki-shi,
Kangawa

Bath renewal
construction

H-3

Joy Stage Hachioji

Hachioji-shi,
Tokyo

T-5

KDX Bunkyo Sengoku Residence

Bunkyo-ku,
TokyoElevating equipment
replacement
construction
Intercom facilities
exchange
construction

Other
Total

(3)

Capital expenditures(million yen)

Location

From January
2021
To January 2021

23
14

10
326
478

Reserved funds for long-term maintenance plan

In accordance with its long-term repair and maintenance plan for each property, the Investment Corporation sets44

aside, from the cash flow during the 17th fiscal period, repair and maintenance reserves designed to finance paymentof future medium- to long-term major repair and maintenance work.
(million yen)

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

15th
14th
16th
17th
18th
From Aug. 1, 2018 From Feb. 1, 2019 From Aug. 1, 2019 From Feb. 1, 2020 From Aug. 1, 2020
to Jan. 31, 2021
to Jan. 31, 2019
to Jan. 31, 2020
to Jul. 31, 2020
to Jul. 31, 2019
732

831

898

921

953

101

71

36

41

29

2

4

12

9

―

831

898

921

953

982

45

5.

Expenditures and liabilities(1) Details of asset management expenses(in thousands of yen)
18th
From August 1, 2020
to January 31, 2021

17th
From February 1, 2020
to July 31, 2020

Item

604,986
13,90846,472
8,100
225,746899,213(ⅰ) Asset management fees (Note)(ⅱ) Asset custody fees(ⅲ) Administrative service fees(ⅳ) Directors’ compensation(ⅴ) Other operating expenses
Total

645,144
14,60048,792
8,100
260,792
977,430（Note）There are other asset management fees in addition to the amount set forth above, and asset management fees pertaining to property
acquisitions 17th fiscal period: 146,193 thousand yen and 18th fiscal period: 105,442 thousand yen) and sold fee pertaining to property
sold (17th fiscal period: 2,700 thousand yen).

(2)

Status of Interest-bearing debt

Borrowings as of January 31, 2021 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)

Sumitomo Mitsui Banking Corporation

January 31, 2020

800

-

0.414

January 31, 2021

Sumitomo Mitsui Banking Corporation

February 28, 2020

1000

1,000

0.414

February 28, 2021

Sumitomo Mitsui Banking Corporation

March 2, 2020

500

500

0.414

February 28, 2021

Sumitomo Mitsui Banking Corporation

July 31, 2020

500

500

0.364

July 31, 2021

2,800

2000

Subtotal

Short-term loans payable

MUFG Bank, Ltd. (Note 5)

January 31, 2014

1,000

-

1.109

January 31, 2021

Sumitomo Mitsui Banking Corporation

November 28, 2014

2,000

-

0.804

November 30, 2020

Aozora Bank, Ltd .(Note 5)

August 31, 2015

300

-

0.678

August 31, 2020

MUFG Bank, Ltd. (Note 5)

October 27, 2015

300

-

0.624

October 27, 2020

MUFG Bank, Ltd. (Note 5)

February28, 2019

500

-

0.422

August 31, 2020

Sumitomo Mitsui Banking Corporation)

January 31, 2014

1,000

1,000

1.221

July 31, 2021

Aozora Bank, Ltd.

March 28, 2014

1,350

1,350

1.183

March 31, 2021

Sumitomo Mitsui Banking Corporation

1,000

1,000

Shinsei Bank, Ltd.

1,000

1,000

MUFG Bank, Ltd.

500

500

Mizuho Bank, Ltd.

500

500

July 30, 2018

Debt
Financing
MethodUse

Remarks

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

0.409
July 31, 2021

MUFG Bank, Ltd.

900

900

500

500

Sumitomo Mitsui Banking Corporation (Note 5)

1,100

1,100

MUFG Bank, Ltd. (Note 5)

1,100

1,100

Mizuho Bank, Ltd. (Note 5)

600

600

Aozora Bank, Ltd. (Note 5)

350

350

Resona Bank, Ltd. (Note 5)

300

300

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

300

300

January 31, 2020
Mizuho Bank, Ltd.

0.439

August 7, 2014

Development Bank of Japan Inc.
5)

(Note 3)(Note0.916

August 7, 2021

August 7, 2014

1000

1000

0.996

August 7, 2021

Sumitomo Mitsui Banking Corporation (Note 5)

August 29, 2014

600

600

0.945

August 31, 2021

MUFG Bank, Ltd. (Note 5)

August 29, 2014

600

600

0.945

August 31, 2021

Aozora Bank, Ltd. (Note 5)

August 29, 2014

500

500

0.945

August 31, 2021

Sumitomo Mitsui Banking Corporation (Note 5)

February 5, 2015

1,200

1,200

0.875

January 31, 2022

Sumitomo Mitsui Banking Corporation

January 29, 2021

-

800

0.428

January 31, 2022

18,50015,200Subtotal46

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)

Sumitomo Mitsui Banking Corporation

April 30, 2014

2,000

2,000

1.267

April 30, 2022

Aozora Bank, Ltd.

April 30, 2014

1,500

1,500

1.267

April 30, 2022

MUFG Bank, Ltd.

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Resona Bank, Ltd.

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Sumitomo Mitsui Banking Corporation

400

400

MUFG Bank, Ltd.

400

400

Mizuho Bank, Ltd.

300

300
1.254

August 7, 2023

Resona Bank, Ltd.

200

200

Mizuho Trust & Banking Co., Ltd.

200

200

Aozora Bank, Ltd.

150

150

August 7, 2014

500

500

1.320

August 7, 2023

Mizuho Bank, Ltd.

November 14, 2014

950

950

1.083

November 30, 2022

MUFG Bank, Ltd.

February 5, 2015

1,200

1,200

1.105

January31, 2024

Aozora Bank, Ltd.

April 30, 2015

2,000

2,000

0.875

April 30, 2022

Resona Bank, Ltd.

April 30, 2015

1,500

1,500

0.987

April 30, 2023

MUFG Bank, Ltd.

April 30, 2015

2,000

2,000

1.100

April 30, 2024

Sumitomo Mitsui Banking Corporation

April 30, 2015

1,000

1,000

1.265

April 30, 2025

1,100

1,100

1,100

1,100

1,000

1,000

300

300

August 7, 2014

Development Bank of Japan Inc. (Note 3)Long-term borrowings

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

July 29, 2015

Mizuho Bank, Ltd.
Sompo Japan Insurance Inc.

1.115

July 29, 2022

1,000

1,000

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 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

Debt
Financing
MethodUse

Remarks

Repayment
Unsecured/of principal
Unguarant
in full on （Note 4）
maturity
eed
date

47

Classification

LenderDrawdown
Date

Balance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)Long-term borrowings

MUFG Bank, Ltd. (Note 3)

August 31, 2016

2,000

2,000

0.670

August 31, 2025

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

August 31, 2016

500

500

0.751

August 31, 2025

Sumitomo Mitsui Banking Corporation

August 31, 2016

3,000

3,000

0.906

August 31, 2026

Development Bank of Japan Inc. (Note 3)

November 1, 2016

1,000

1,000

0.773

October 31, 2025

Resona Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Shinsei Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

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

August 22, 2017

1,200

1,200

0.928

August 22, 2027

Development Bank of Japan Inc. (Note 3)

August 22, 2017

1,000

1,000

0.928

August 22, 2027

Mizuho Bank, Ltd. (Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

THE BANK OF FUKUOKA, LTD. (Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.501

February 28,2023

MUFG Bank, Ltd.

August 31, 2017

1,500

1,500

0.501

February 28, 2023

Aozora Bank, Ltd.

August 31, 2017

1,500

1,500

0.582

February 29, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,000

1,000

0.582

February 29, 2024

MUFG Bank, Ltd.

August 31, 2017

1,000

1,000

0.582

February 29, 2024

Mizuho Bank, Ltd.

August 31, 2017

500

500

0.624

August 31, 2024

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

August 31, 2017

500

500

0.661

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.665

February 28, 2025

Resona Bank, Ltd.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Nippon Life Insurance Company (Note 3)

July 30, 2018

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

February2, 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

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

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,200

1,200

0.592

August 31, 2023

Aozora Bank, Ltd.

August 31, 2018

1,000

1,000

0.592

August 31, 2023

MUFG Bank, Ltd.

August 31, 2018

800

800

0.592

August 31, 2023

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,050

1,050

0.914

February 28,2027

Resona Bank, Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Bank, Ltd.

August 31, 2018

250

250

0.914

February 28, 2027

Development Bank of Japan Inc. (Note 3)

August 31, 2018

1,400

1,400

0.884

February 28, 2027

MUFG Bank, Ltd. (Note 3)

August 31, 2018

800

800

0.825

February 28, 2027

Debt
Financing
MethodUse

Remarks

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

48

Classification

LenderDrawdown
Date

Balance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Nippon Life Insurance Company (Note 3)

September 28, 2018

700

700

0.920

September 30, 2026

Shinsei Bank, Ltd.

September 28, 2018

1,000

1,000

1.031

September 30, 2028

Sumitomo Mitsui Trust Bank, Limited.

September 28, 2018

800

800

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 28, 2018

500

500

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

June 3, 2019

400

400

0.363

November 30, 2024

Mizuho Bank, Ltd. (Note 3)

June 3, 2019

2,000

2,000

0.330

May 31, 2025

Shinsei Bank, Ltd.

June 3, 2019

500

500

0.484

November 30, 2025

Shinsei Bank, Ltd.

July 31, 2019

500

500

0.272

January 31, 2023

Mizuho Bank, Ltd.

July 31, 2019

800

800

0.299

July 31, 2023

September 17, 2019

1,000

1,000

0.572

August 31, 2026

MUFG Bank, Ltd.

October 29, 2019

500

500

0.325

April 30, 2023

Resona Bank, Ltd.

October 29, 2019

450

450

0.336

April 30, 2024

MUFG Bank, Ltd.

November 29, 2019

1,500

1,500

0.600

November 30, 2026

Shinsei Bank, Ltd.

January31, 2020

500

500

0.329

July 31, 2023

Mizuho Trust & Banking Co., Ltd.

January31, 2020

300

300

0.329

July 31, 2023

Sumitomo Mitsui Trust Bank, Limited.

January31, 2020

300

300

0.329

July 31, 2023

THE BANK OF FUKUOKA, LTD.

January31, 2020

200

200

0.329

July 31, 2023

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

March 2, 2020

500

500

0.259

February 29, 2024

Sumitomo Mitsui Banking Corporation

March 2, 2020

500

500

0.464

February 28, 2027

Mizuho Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Resona Bank, Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

March 2, 2020

500

500

0.414

February 28, 2027

THE BANK OF FUKUOKA, LTD.

March 2, 2020

400

400

0.414

February 28, 2027

MUFG Bank, Ltd. (Note 3)

March 2, 2020

400

400

0.450

February 28, 2027

Aozora Bank, Ltd.

March 2, 2020

200

200

0.531

February 29, 2028

MUFG Bank, Ltd. (Note 3)

March 13, 2020

-600

600

0.300

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

June 30, 2020

1,000

1,000

0.646

June 30, 2028

Shinsei Bank, Ltd.

June 30, 2020

800

800

0.646

June 30, 2028

Development Bank of Japan Inc. (Note 3)

June 30, 2020

500

500

0.616

June 30, 2028

Sumitomo Mitsui Banking Corporation

July 29, 2020

1,750

1,750

0.691

July 31, 2028

Shinsei Bank, Ltd.

July 29, 2020

1,750

1,750

0.641

July 31, 2028

MUFG Bank, Ltd.

July 29, 2020

1,000

1,000

0.641

July 31, 2028

Mizuho Bank, Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Resona Bank, Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

July 29, 2020

500

500

0.641

July 31, 2028

Sumitomo Mitsui Banking Corporation

July 31, 2020

1,000

1,000

0.686

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

August 3, 2028

-

800

0.637

July 31, 2028

MUFG Bank, Ltd.

August 31, 2020

-

500

0.640

August 31, 2028

Sumitomo Mitsui Banking Corporation

Long-term borrowings

August 31, 2020

-

300

0.690

August 31, 2028

Sumitomo Mitsui Banking Corporation

September 24, 2020

-

840

0.648

September 30, 2028

Sumitomo Mitsui Banking Corporation

September 30, 2020

-

900

0.658

September 30, 2028

Mizuho Bank, Ltd.

September 30, 2020

-

800

0.658

September 30, 2028

Mizuho Bank, Ltd.

September 30, 2020

-

1,330

0.658

September 30, 2028

Resona Bank, Ltd.

September 30, 2020

-

500

0.558

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 30, 2020

-

400

0.608

September 30, 2028

MUFG Bank, Ltd. (Note 3)

September 30, 2020

-

800

0.550

September 30, 2028

MUFG Bank, Ltd.

October 27, 2020

-

300

0.637

October 31, 2027

Mizuho Bank, Ltd.

November 2, 2020

-

500

0.478

April 30, 2025

Mizuho Trust & Banking Co., Ltd.

November 2, 2020

-

1,000

0.585

October 31, 2027

Sumitomo Mitsui Banking Corporation

November 30, 2020

-

2,000

0.617

November 30, 2027

MUFG Bank, Ltd.

January 29, 2021

-

1,000

0.599

January 31, 2028

Aozora Bank, Ltd.

Debt
Financing
MethodUse

Remarks

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

49

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)

Mizuho Bank, Ltd.

January 29, 2021

-

1,200

0.409

January 31, 2025

Mizuho Trust & Banking Co., Ltd.

January 29, 2021

-

1,100

0.359

January 31, 2025

Subtotal

106,750

121,020

Total

128,050

138,220

Debt
Financing
MethodUse

Remarks（Note 1）All debts except for the following Note 3 are borrowing at a floating rate.
（Note 2）Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal places. Also, with regard
to borrowings for which interest rate swap transactions and other derivative transactions were implemented in order to hedge the interest rate
volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and other derivatives areindicated.
（Note 3）Borrowings is applied at a fixed rate.
（Note 4）All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses are included)
and repayment of debts.
（Note 5）Debts included in the classification of current portion of long-term loans payable from the 17th fiscal period and in of long-term loans payablein the 16th fiscal period.

（3）Investment corporation bonds
Outstanding Investment corporation bonds as of January 31, 2021 are as follows.
SeriesFirst Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Third Series Unsecured
Investment Corporation
Bonds
Fourth Series Unsecured
Investment Corporation
Bonds
Fifth Series Unsecured
Investment Corporation
Bonds
Sixth Series Unsecured
Investment Corporation
Bonds（Social Bond）
Total

Date of issue

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

Repayment dateAugust 30, 2016

1,000

1,000

0.200

August 30, 2021

August 30, 2016

1,000

1,000

0.540

August 28, 2026

August 30, 2016

1,000

1,000

0.800

August 30, 2028

November 30,
2018

1,000

1,000

0.410

November 30,
2023

November 30,
2018

1,000

1,000

0.850

November 30,
2028

December 12,
2019

2,000

2,000

0.750

December 20,
2029

7,000

7,000

Repayment
methodRepaymentof principal
in full on
maturitydate

Use

Remarks（Note 1）

（Note 3）（Note 2）

（Note 1）Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate and repayment of debts.
（Note 2）Repayment of borrowings procured to fund the acquisition of 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 applicable50

6．Acquisitions and sales during the 17th fiscal period(1) Acquisitions and sales of real estate properties and asset-backed securities, etc., infrastructure assets andinfrastructure-related assets
Acquisition
No.

Type

Name

Acquisition
date

Sale

Acquisition
price(million yen)Book value
Sales priceGain and loss
(in millions)(million yen)
yen)(million yen) (million（Note 1）
（Note 2）

Sales date

（Note 2）

(Note 1)

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

T-91

KDX Residence Nakanobu

August 3
2020

T-92

KDX Residence Ichikawa

September 24
2020

840

−

−

−

−

T-93

KDX Residence Hatchobori

September 30
2020

3,000

−

−

−

−

T-94

KDX Residence Nakaitabashi

September
30, 2020
November 2

1,736

−

−

−

T-95

KDX Residence Shonandai

T-9

Real Estate

H-12

Trust
BeneficiaryInterest

T-96

2020
Cosmo Heim Motosumiyoshi November 2(land)
2020
Rihabili-home Granda Mondo November 2
Yakujin2020
January
29
KDX Residence Ikebukuro West
2021

830

−

−

−

−

−

1,500

−

−

−

−

337

−

−

−

−

63

−

−

−

−

2,237

−

−

−

−

（Note 1）The acquisition price are the amount identified in the purchase agreement of each trust beneficiary interest (excluding expenses
required for the acquisition and taxes, etc.), rounded down to the nearest whole million yen.

（2）Acquisitions and Sale of other assets
Other than the foregoing real estate properties, asset-backed securities, infrastructure assets and 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.
Transaction

Type

Acquisition

Trust
BeneficiaryInterest

T-91

Acquisition

Trust
BeneficiaryInterest

T-92

No.

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

Appraiser

As ofAppraisal
date

The Tanizawa Sōgō
Appraisal Co., Ltd.

July 31,2020(Note 1)

Acquisition
Acquisition

Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

KDX Residence Nakanobu

August 3,
2020

830

901

September
24 2020

840

908

T-93 KDX Residence Hatchobori

September
30 2020

3,000

3,530

T-94 KDX Residence Nakaitabashi

September
30 2020

1,736

1,840

November2, 2020

1,500

1,610

337

348

63

63

2,237

2,450

Acquisition

Trust
BeneficiaryInterest

T-95

Acquisition

Trust
BeneficiaryInterest

T-9

Acquisition

Real Estate

H-12

Acquisition

Trust
BeneficiaryInterest

T-96

KDX Residence Ichikawa

KDX Residence Shonandai

Cosmo Heim Motosumiyoshi November
2(land)
2020
Rihabili-home Granda Mondo November
2
Yakujin
2020
KDX Residence Ikebukuro West

January 2
92021

DAIWA REALESTATE
August 1,
APPRAISAL CO.,
2020
LTD.
The Tanizawa Sōgō September
Appraisal Co., Ltd. 10, 2020
Japan Real Estate
Institute
DAIWA REALESTATEAPPRAISAL CO.,LTD.
Japan Real Estate
InstituteJapan Real Estate
Institute
DAIWA REALESTATEAPPRAISAL CO.,LTD.

August 1,
2020
October 1,
2020
October 1,
2020
October 1,
2020
December31, 2020（Note 1）“Acquisition price” and “Sale price” represent the purchase and Sales amount (excluding acquisition costs and consumption taxes)of each property or beneficiary right of real estate in trust as stated in the Sales and Purchase Agreement.
（Note 2）“Appraisal value” of specific assets above was calculated in accordance with the guideline of “Real Estate Appraisal Standards,
Chapter 3, Appraisal of Securitized Real Estate.”

51

(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, Crowe Toyo & Co. performs
an investigation of transactions. For the fiscal period from August 1, 2020 to January 31, 2021, the transactions
subject to such investigation were fifteen interest rate swap transactions, for which the Investment Corporation
received reports from Crowe Toyo & Co. For this purpose, investigation was performed with respect to detailsof the interest swap contracts, such as the name of counter parties, contract amounts, or the period of 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.

52

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

Category

Acquisition price（Note 2）
10,544 million yen

Total amountTransaction with related party
Motosumiyoshi Co., Ltd
GK KRF17
Total

Sale price（Note 2）−（3.2％）（0.6％）（3.8％）

337 million yen
63 million yen
400 million yen

−
−
−

（−％）
（−％）
（−％）

(ⅱ) Amounts of Fees Paid
Category
Brokerage fee
Rent paid

Total paid fees（A）
182 million yen
26 million yen

Related-Party Transactions
Paid toPaid amount (B)Kenedix Inc.
90 million yen
GK KRF17
1 million yen

Ratio to total（B）/（A）
49.4％
6.1％(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.

(2)

Change to calculation of depreciation amountNot applicable(3)

Change to real estate and other infrastructure assets appraisal method
Not applicable(4)Disclosure pertaining to investment trust beneficial right securities, etc.

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

(ⅰ) Acquisitions
Date of acquisition

Number of units

Number of disposal
units

Number of units held

March 1, 2018 (Note)

1

-

1

Accumulated total

1

-

1

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

(ⅱ) Ownership
Number of units
held at end of fiscal

Asset held at the endof fiscal period

Ratio to total number ofunits issued (%)

53

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

(5)

period（Unit）（million yen）

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 applicable

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

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

54

Financial Statements(18th Fiscal Period: From August 1, 2020 to January 31, 2021)

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

55

56

57

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of January 31, 2021
18th Fiscal Period
as of January 31, 2021

17th Fiscal Period
as of July 31, 2020

(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 15 and 20)
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 15 and 20)
Other
Total intangible assets
Investments and other assets
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¥12,947,764
10,469,429
90,961
9,576
7,224
23,524,958¥13,212,337
10,171,729
31,793

172,666
108,177,749(14,437,598)
93,740,151
1,175,676(285,575)
890,101
1,493,742(420,189)
1,073,553
798,111(121,898)
676,213160,714,888
257,267,575

1,798,041
104,694,136(13,024,172)
91,669,964
1,127,421(252,221)875,199
1,468,718(386,760)
1,081,958
693,103(99,834)
593,268
150,985,849
247,004,281

1,116,755
3,234
1,119,989

1,225,462
4,010
1,229,473

89,381
1,056,412
14,4781,160,272
259,547,837

89,2101,014,382
19,7191,123,311
249,357,066

41,06658,54999,616¥283,172,411

45,18583,246
128,431¥272,960,403

14,67135,3399,032
23,474,905

58

18th Fiscal Period
as of January 31, 2021

17th Fiscal Period
as of July 31, 2020

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥603,335¥626,063

Short-term loans payable (Notes 10 and 22)

2,000,000

2,800,000

Current portion of investment corporation bonds (Notes 10 and 21)
Current portion of long-term loans payable (Notes 10, 11 and 22)
Accounts payable-otherAccrued expenses
Income taxes payable

1,000,000
15,200,000
364,045
49,658605

10,850,000
353,107
38,676605

35,92910,812

1,147,437
90,5881,179,888
82,406

111,402

1,704

20,603,002

15,943,264

Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bonds (Notes 10 and 21)

6,000,000

7,000,000

Long-term loans payable (Notes 10, 11 and 22)
Tenant leasehold and security deposits in trust

121,020,000
3,176,031

114,400,000
3,132,139

4,618,929

4,485,740

67,892

67,707

Tenant lump sum deposits in trust
Asset retirement obligations (Note 14)
Other554,484

473,947

135,437,338

129,559,535

156,040,341

145,502,799

108,550,294

108,550,294

13,187,100

13,187,100

Reserve for temporary difference adjustments (Note 4)

1,920,000

1,940,000

Total voluntary retained earnings

1,920,000

1,940,000

Unappropriated retained earnings

3,997,276

4,212,398

19,104,376
127,654,670

19,339,498
127,889,792(522,600)(432,188)

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

Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges (Notes 10 and 11)(522,600)(432,188)

Total net assets (Note 3)

Total valuation and translation adjustments

127,132,070

127,457,603

Total liabilities and net assets¥283,172,411¥272,960,403

See accompanying notes to the financial statements.

59

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from August 1, 2020 to January 31, 2021
18th Fiscal Period
from August 1, 2020
to January 31, 2021

17th Fiscal Period
from February 1, 2020
to July 31, 2020

(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)
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
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 13)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥7,834,662
548,0028,382,664¥7,704,582
585,197
84,437
8,374,217

3,060,925
645,144
14,60048,792
8,100
260,792
4,038,356
4,344,308

3,005,600
604,986
13,90846,472
8,100
225,7463,904,813
4,469,404

41
323
114
479

41
1,240
1,282

531,956
21,702
129,966
4,118
24,697712,440
3,632,346
3,632,346

498,083
21,322
115,280
4,118
23,245662,051
3,808,635
3,808,635

605
605
3,631,741
365,534

605
605
3,808,030
404,367¥4,212,398¥3,997,276

See accompanying notes to the financial statements.

60

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from August 1, 2020 to January 31, 2021

Unitholders'
capitalBalance as of January 31, 2020
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, 2020 (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, 2021 (Note 7)¥99,731,514

Capitalsurplus¥13,187,100

Unitholders' equity
Surplus
Voluntary retained earnings
UnappropriatedReserve for
Total
retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)
¥1,960,000¥1,960,000¥4,072,277

Total
unitholders'equityTotal
surplus¥19,219,377

8,818,779

8,818,779(20,000)

8,818,779¥108,550,294¥108,550,294¥118,950,891¥13,187,100¥13,187,100(20,000)(20,000)¥1,940,000(20,000)¥1,940,000(20,000)(20,000)(20,000)¥1,920,000(20,000)¥1,920,000

20,000--(3,687,909)
3,808,030(3,687,909)
3,808,030(3,687,909)
3,808,030

140,121¥4,212,398

120,121¥19,339,498

8,938,900¥127,889,792

20,000--(3,866,863)
3,631,741(3,866,863)
3,631,741(3,866,863)
3,631,741(215,121)¥3,997,276(235,121)¥19,104,376(235,121)¥127,654,670

Valuation and translation adjustments
Deferred gains orlosses on hedges
Balance as of January 31, 2020
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustment
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2020 (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, 2021 (Note 7)

Total valuationand translation
adjustments(in thousands of yen)¥(450,527)¥(450,527)

Total net assets¥118,500,363
8,818,779(3,687,909)
3,808,030

18,33918,33918,33918,339¥(432,188)

18,339¥(432,188)

8,957,239¥127,457,603(3,866,863)
3,631,741(90,411)(90,411)(90,411)(90,411)¥(522,600)(90,411)¥(522,600)(325,533)¥127,132,070

See accompanying notes to the financial statements.

61

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from August 1, 2020 to January 31, 2021
18th Fiscal Period
from August 1, 2020
to January 31, 2021

17th Fiscal Period
from February 1, 2020
to July 31, 2020

(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¥3,632,346
1,504,959
4,118
24,697(41)553,658(59,168)
35,3395,095
127,276(14,235)
25,117(32,451)(42,030)
120,676¥3,808,635
1,467,881
4,118
23,245(41)519,406
5,580(35,339)(6,031)(112,093)
58,913(43,015)
6,075(69,007)451,169
12,738Subtotal

5,885,358

6,092,236Interest income received
Interest expenses paid
Income taxes (paid) refund

41(548,623)(605)

41(526,470)(604)

Net cash provided by (used in) operating activities

5,336,171

5,565,201(65,684)(11,717,031)(171)(130,915)
174,807(235,705)
368,895(15,697,335）(112)(134,722)
207,190(364,510)
160,709(11,605,805)(15,828,780)(800,000)
15,070,000(4,100,000)(3,867,238)

2,000,000(2,500,000)
13,900,000(6,000,000)
8,768,907(3,687,172)

6,302,761

12,481,735

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Payments for lease and guarantee deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant lump sum deposits in trust
Proceeds from tenant lump sum deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

33,1272,218,156

Cash and cash equivalents at the beginning of period

23,384,067

21,165,911

Cash and cash equivalents at the end of period (Note 8)¥23,417,194¥23,384,067

See accompanying notes to the financial statements.

62

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from August 1, 2020 to January 31, 2021

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 three public offerings and two third-party allotment. As of January 31, 2021,
the end of the 18th fiscal period, the number of investment units issued and outstanding totaled 951,258 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 18th fiscal period, the Investment Corporation acquired 7 residential properties including additional asset acquisition (total acquisition
price of ¥10,481 million) and 1 additional acquisition of healthcare property (acquisition price of ¥63 million). As a result, the Investment Corporation
has a portfolio comprised of 157 properties (total acquisition price of ¥259,449 million) as of January 31, 2021, the end of the 18th fiscal period. The
portfolio consists of 131 residential properties (total acquisition price of ¥200,298 million), 24 healthcare properties (total acquisition price of ¥54,191
million) and 2 accommodation properties (total acquisition price of ¥4,960 million).
The occupancy rates of the overall portfolio were 96.8% and 96.2% as of the end of the 17th and 18th fiscal period, respectively. Furthermore,
the average occupancy rates of the properties for residential and healthcare were 94.1% and 99.9% as of the end of the 18th fiscal period.
During the 17th and 18th fiscal period, the Investment Corporation made borrowings of ¥8,500 million and ¥4,900 million for the repayment ofdebt matured. During the 17th fiscal period, the Investment Corporation made new borrowings of ¥7,400 million upon acquiring properties. During
the 18th fiscal period, the Investment Corporation made new borrowings of ¥10,170 million upon acquiring properties. As a result, the balance ofborrowings as of the end of the 17th and 18th fiscal period stood at ¥128,050 million and ¥138,220 million, respectively. The balance of interestbearing debt including investment corporation bonds as of the end of the 17th and 18th periods, was ¥135,050 million and ¥145,220 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.

632. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) 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:
From August 1, 2020
to January 31, 2021
2-69 years

From February 1, 2020
to July 31, 2020
2-69 years

Structures

3-65 years

3-65 years

Machinery and equipment

3-40 years

8-40 years

Tools, furniture and fixtures

2-30 years

2-30 years

Buildings(B) 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.
(C) Long-term Prepaid Expenses
Long-term prepaid expenses are amortized by the straight-line method.
(D) Unit Issuance Costs
Unit issuance costs are amortized over a period of 3 years under the straight-line method.
(E) Investment Corporation Bond Issuance Costs
Investment corporation bond issuance costs are amortized over a maturity period under the straight-line method.
(F) 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.
(G) Revenue Recognition
Operating revenues consist of rental revenues including base rents and common area charges, and other operating revenues including parking
space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an accrual basis over the life of eachlease.
(H) Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar
year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period.
Under Japanese tax regulations, the seller of the property is liable for these taxes on the property from the date of disposal to the end of thecalendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period
following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the propertyrelated taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥31,734
thousand and ¥4,538 thousand as of July 31, 2020 and January 31, 2021, respectively.
(I)

Income Taxes

64

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.
(J) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes
applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(K) 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.
(L) 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.
(M) 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.
(Accounting standards issued but not yet effective)・ “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued on March 31, 2020)
・ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 issued on March 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States have jointly
developed comprehensive accounting standards for revenue recognition and issued “Revenue from Contracts with Customers” (IFRS 15 (IASB) and
Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 is applied from fiscal years beginning on or after January 1, 2018 and that Topic
606 will be applied from fiscal years beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards for revenue
recognition and issued them together with the implementation guidance.
The basic policy of the ASBJ when it developed the accounting standards for revenue recognition was to specify the accounting standards,
incorporating the basic principles of IFRS 15 as a starting point, from the perspective of comparability between financial statements, which is one of
the benefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which consideration should be given,such as practices that have been conducted thus far in Japan, alternative treatments will be added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending January 31, 2022.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on the financial statements is currently under evaluation.
・ “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)
・ “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on July 4, 2019)
・ “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued on March 31, 2020)65

(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 “Fair Value Measurement” (IASB) and Topic
820 “Fair Value Measurement” (FASB)). The ASBJ repeatedly considered the guidance regarding fair value of financial instruments and disclosurein order to improve the comparability with such international accounting standards, and issued “Accounting Standard for Fair Value Measurement”
and “Implementation Guidance on Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending January 31, 2022.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on the financial statements is currently underevaluation.
・“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31 issued on March 31, 2020)(1) Overview
Paragraph 125 of International Accounting Standard 1 (IAS 1), “Presentation of Financial Statements,” (issued by the IASB in 2003) requires
disclosure of information about the “assumptions the entity makes about the future, and other major sources of estimation uncertainty.” In this regard,
there has been a request that the major sources of estimation uncertainty should be disclosed in the notes to financial statements under Japanese
GAAP to provide useful information to users of financial statements. In response to this request, the ASBJ developed and issued “AccountingStandard for Disclosure of Accounting Estimates.”(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending July 31, 2021.
・“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections” (ASBJ Statement No. 24 issued on March
31, 2020)(1) Overview
The ASBJ’s Standards Advisory Council recommended that the ASBJ consider enhancing disclosures for notes relating to “accounting policies andmethods adopted in the cases where the relevant accounting standards were not clear.” In response to such recommendations, the ASBJ issued
the revised “Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections.”(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending July 31, 2021.

66

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 January 31, 2021
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
period(in thousands of yen)

Reversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversalAppropriation 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¥1,940,000¥ -¥20,000¥1,920,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.
As of July 31, 2020
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
period(in thousands of yen)

Reversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversalAppropriation 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¥1,960,000¥ -¥20,000¥1,940,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period startingfrom 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 banks with which it does business.
As of January 31, 2021

As of July 31, 2020

(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

67

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 August 1, 2020 to January 31, 2021 and from February 1,
2020 to July 31, 2020 consist of the following:
From August 1, 2020
From February 1, 2020
to January 31, 2021
to July 31, 2020
(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥7,464,641¥7,315,802

Rental revenues from limited proprietary rights of land

22,11843,750Common area charges

347,902345,030

7,834,662

7,704,582

Parking space rental revenues

206,193

205,439

Miscellaneous

341,808

379,757

Subtotal
Others:Subtotal
Total rental and other operating revenues

548,002585,197¥8,382,664¥8,289,780¥436,795¥433,235

B. Property-related expenses:
Property management fees and facility management fees
Utilities

92,20289,588Taxes

497,116

498,996

Repairs and maintenance

275,759

288,648

Insurance

15,11912,101

Trust fees

57,03055,499Depreciation

1,504,182

1,467,105

Others

182,718

160,424¥3,060,925¥3,005,600¥5,321,738¥5,284,179

Total property-related expenses
C. Net operating income from real estate rental business (A-B)
Gain on sales of real estate property:
From August 1, 2020 to January 31, 2021 : Not applicable
From February 1, 2020 to July 31, 2020

(in thousands of yen)

KDX Residence Izumi Chuo
Revenue from sale of real estate property¥540,000Cost of real estate property

451,169

Other sales expenses
Gain on sales of real estate property

4,392¥84,437

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
Total number of investment units issued and outstanding

From August 1, 2020
to January 31, 2021
10,000,000 units

From February 1, 2020
to July 31, 2020
10,000,000 units

951,258 units

951,258 units

8. CASH AND CASH EQUIVALENTS

68

Cash and cash equivalents consist of the following as of January 31, 2021 and July 31, 2020:
As of January 31, 2021

As of July 31, 2020

(in thousands of yen)
Cash and deposits¥12,947,764¥13,212,337

Cash and deposits in trust

10,469,429

10,171,729

Cash and cash equivalents¥23,417,194¥23,384,067

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 January 31, 2021 and July 31, 2020 are as follows:
As of January 31, 2021

As of July 31, 2020

(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

533,000

539,000

Total¥545,000¥551,000

The Investment Corporation, as lessor, has entered into leases whereby fixed monthly rents are due in advance with a lease term of generally
two years for residential properties. The future minimum rental revenues under existing non-cancelable operating leases as of January 31, 2021 andJuly 31, 2020 are as follows:
As of January 31, 2021

As of July 31, 2020

(in thousands of yen)Due in 1 year

¥3,475,193¥3,639,213

Due after 1 year

15,461,675

20,383,265

Total¥18,936,868¥24,022,478

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.
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 7 years and 8 months for borrowings and also have a redemption
date of a maximum of 8 years and 11 months for investment corporation bonds as of January 31, 2021, the end of the 18th fiscal period, areexposed to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are
exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of theborrowings.
(3) Risk management for financial instruments
a. Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored
by deposits in non-interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. In utilizing69derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable ratings.
b.

Market risk

While borrowings with floating rates are exposed to interest rate volatility risk, such risk is monitored by adjusting the rate of the balance ofborrowings with floating rates against the total borrowings according to the financial environment, interest rate forecasts by continuous monitoring,etc. and by using derivatives, etc. A risk management policy is established with regard to the execution and management of derivatives, and suchtransactions 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
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value
is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could
result in a different fair value.
(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table.
As of January 31, 2021
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Cash and deposits¥12,947,764¥12,947,764(2) Cash and deposits in trust

10,469,429

10,469,429-

23,417,194

23,417,194-(1) Short-term loans payable

2,000,000

2,000,000-(2) Current portion of investment corporation bonds

1,000,000

998,900(1,100)(3) Current portion of long-term loans payable

15,200,000

15,215,486

15,486(4) Investment corporation bonds

6,000,000

5,958,400(41,600)

121,020,000

121,463,368

443,368

145,220,000

145,636,154

416,154

Subtotal(5) Long-term loans payable
Subtotal¥-

Derivative transactions*¥(522,600)¥(522,600)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of July 31, 2020
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Cash and deposits¥13,212,337¥13,212,337(2) Cash and deposits in trust

10,171,729

10,171,729-

23,384,067

23,384,067-

2,800,000

2,800,000

-

-

-

-

10,850,000

10,863,234

13,234

Subtotal(1) Short-term loans payable(2) Current portion of investment corporation bonds(3) Current portion of long-term loans payable(4) Investment corporation bonds(5) Long-term loans payable
Subtotal¥-

7,000,000

6,963,600(36,400)

114,400,000

114,986,963

586,963

135,050,000

135,613,797

563,797

Derivative transactions*¥(432,188)¥(432,188)¥* 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.

70

Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying amount approximates fair value.
Liabilities(1) Short-term loans payable
Since these items are settled in a short period of time with floating interest rates, their carrying amount approximates fair value.
(2) Current portion of investment corporation bonds and (4) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates arereflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment Corporation has
not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interestrate swaps is based on the present value of the total of principal and interest, accounted for together with the applicable interest-rate swaps,
discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type.)
Derivative transactions
Please refer to Note 11 “DERIVATIVE TRANSACTIONS”.
Note 2: Redemption schedule for financial assets with maturities
As of January 31, 2021
Due in 1 year or
less
Cash and
Deposits
Cash anddeposits in trust
Total¥12,947,764

Due after 1 year
through 2 years¥

10,469,429¥23,417,194

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

¥

¥

¥

-

-

¥

-

-

¥

-

As of July 31, 2020
Due in 1 year or
less
Cash and
Deposits
Cash anddeposits in trust
Total¥13,212,337

Due after 1 year
through 2 years¥

10,171,729¥23,384,067

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

¥

¥

¥

-

-

¥

-

-

¥

-

Note 3: Redemption schedule for loans payable and investment corporation bonds
As of January 31, 2021
Due in 1 year or
lessShort-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal¥2,000,000

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--

5,000,000

15,200,000

18,250,000

14,400,000

15,900,000

15,500,000

56,970,000¥18,200,000¥18,250,000¥15,400,000¥15,900,000¥15,500,000¥61,970,000

Due in 1 year orDue after 1 year

Due after 2 years

Due after 3 years

Due after 4 years

Due after 5 years

As of July 31, 2020

71

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

through 2 years¥2,800,000¥

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

¥

-

¥

through 5 years
-

¥

-

¥

-

-

1,000,000-

1,000,000-

5,000,000

10,850,000

19,650,000

13,350,000

14,850,000

13,550,000

53,000,000¥13,650,000¥20,650,000¥13,350,000¥15,850,000¥13,550,000¥58,000,000

11. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of January 31, 2021 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodAccounting
method, inprinciple
Specialtreatment forinterest-rate
swaps

Type of derivativetransactions
Interest rate
swap transaction:
Receive/floating
and pay/fixedInterest rate
swap transaction:
Receive/floating
and pay/fixed
Total

Contract amount(in thousands of yen)
Maturing afterTotal
1 yearHedged items

Fair value(in thousands of yen)Calculation method for
applicable fair value
Based on the amountprovided by counterparty
financial institutions

Long-termloans payable¥79,320,000¥76,320,000¥(522,600)

Long-termloans payable

33,200,000

24,200,000*-¥112,520,00¥100,520,000¥(522,600)0*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
is included in the fair value of the hedged long-term loans payable.
The contract amount and the fair value of interest-rate swap transactions as of July 31, 2020 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodAccounting
method, inprinciple
Specialtreatment forinterest-rate
swaps

Type of derivativetransactions
Interest rate
swap transaction:
Receive/floating
and pay/fixedInterest rate
swap transaction:
Receive/floating
and pay/fixed
Total

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

Hedged items

Fair value(in thousands of yen)Calculation method for
applicable fair value
Based on the amountprovided by counterparty
financial institutions

Long-termloans payable¥66,650,000¥63,650,000¥(432,188)

Long-termloans payable

36,800,000

30,850,000*-¥103,450,00¥94,500,000¥(432,188)0*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
is included in the fair value of the hedged long-term loans payable.

12. RELATED-PARTY TRANSACTIONS

72

1．Parent Company, major corporate unitholders and other18th Fiscal Period (August 1, 2020 to January 31, 2021) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
2．Affiliated companies and other18th Fiscal Period (August 1, 2020 to January 31, 2021) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
3．Fellow subsidiary companies and other18th Fiscal Period (August 1, 2020 to January 31, 2021) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
4．Directors, major individual unitholders and other18th Fiscal Period (August 1, 2020 to January 31, 2021) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable

13. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements under the Special Taxation
Measures Law of Japan are met, including a requirement that it currently distributes in excess of 90% of its net income for the fiscal period in order
to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of theInvestment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excess of 90% of its
distributable income in the form of cash distributions totaling ¥3,867 million and ¥3,866 million for the periods ended January 31, 2021 and July 31,
2020, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.02% for the periods ended January 31, 2021 and July 31, 2020. The following table summarizes thesignificant differences between the statutory tax rate and the effective tax rate.
From August 1, 2020
to January 31, 2021
31.46%

From February 1, 2020
to July 31, 2020
31.46%

Deductible cash distributions(31.04)(30.98)Others(0.40)(0.46)

Effective tax rate

0.02%

0.02%

Statutory tax rate

The significant components of deferred tax assets and liabilities as of January 31, 2021 and July 31, 2020 are as follows:
As of January 31, 2021

As of July 31, 2020

(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥661,652¥678,375

Deferred gains or losses on hedges

168,964

142,170

Asset retirement obligations

21,35921,300

Amortization of leasehold right in trust

1,808

1,266

20

-

Other
Subtotal deferred tax assets

853,806

843,112Valuation allowance(853,806)(843,112)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

14. ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations reported on balance sheets73

1. Summary of the asset retirement obligations
The Investment corporation has recognized the original state restoration obligations assumed under the general fixed-term land leasehold agreement
as the asset retirement obligations in connection with Arute Ishiyagawa acquired on June 3, 2019.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 0.54711% and the useful life has been estimated to be 47 years and one
month based on the time period from the date of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following
From August 1, 2020
to January 31, 2021

From February 1, 2020
to July 31, 2020

(in thousands of yen)
Balance at the beginning of period¥67,707

Accretion adjustment
Balance at the end of period¥67,522

185

184¥67,892¥67,707

15. 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.
18th Fiscal Period
from August 1, 2020
to January 31, 2021

17th Fiscal Period
from February 1, 2020
to July 31, 2020

(in thousands of yen)Book value
Balance at the beginning of period¥248,229,744¥234,307,773

Changes during the period
Balance at the end of period

10,154,586
258,384,330

13,921,970
248,229,744¥312,166,000¥295,688,000

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 18th fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 6 properties totaling ¥10,750,264 thousand and additional acquisition of real estate
and real estate trust beneficiary interest in 2 properties amounting to ¥430,265 thousand, and the principal decrease was depreciation of¥1,503,997 thousand, and during the 17th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in
8 properties totaling ¥15,324,167 thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1 property
totaling ¥451,169 thousand and depreciation of ¥1,466,920 thousand.
Note 3: The fair value is the appraisal value or the survey value determined by outside appraisers. In addition, the fair value at the end of 18th
fiscal period of KDX Residence Sendagaya, which was sold on February 5, 2021, is based on the sales price (¥1,110,000 thousand) under
the trust beneficiary interest sales contracts entered into on January 26, 2021.
Income and loss in the fiscal periods ended January 31, 2021 and July 31, 2020 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”.

16. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from August 1, 2020 to January 31, 2021 and from February 1, 2020 to July 31, 2020 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 segment74

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.

17. PER UNIT INFORMATION

Net asset value per unit

From August 1, 2020

From February 1, 2020

to January 31, 2021

to July 31, 2020

¥133,646¥133,988

Net income per unit

¥3,817¥4,028Weighted average number of units (units)951,258

945,242

The weighted average number of units outstanding of 951,258 and 945,242 were used for the computation of the amount of net income per unit
as of January 31, 2021 and July 31, 2020, respectively.
Net income per unit after adjusting for residual units is not included because there were no residual investment units.
The basis for calculating net income per unit is as follows:

Net income (in thousands of yen)
Net income not available to ordinary unitholders (in thousands of yen)
Net income available to ordinary unitholders (in thousands of yen)
Weighted average number of units during the period (units)

From August 1, 2020

From February 1, 2020

to January 31, 2021

to July 31, 2020

¥3,631,741¥3,808,030--¥3,631,741¥3,808,030

951,258

945,24275

18. SIGNIFICANT SUBSEQUENT EVENTSIssuance of New Investment Units
On February 15, 2021 and February 18, 2021, the Board of Directors of the Investment Corporation resolved to issue new investment units as thefunds for acquiring specified assets and other use. Payments for the issuance of new investment units through public offering and through thirdparty allotment have been completed on February 25, 2021 and March 9, 2021, respectively.
As a result of the issuance of new investment units, the Investment Corporation had total unitholders’ capital of ¥116,322,630,253 with 995,883
investment units outstanding as of March 9, 2021.
.
(Issuance of New Investment Units through Public Offering)Issuance of new investment units:

42,500 units

Issue price (Offer price):¥179,985 per unit

Aggregate issue price (Total offer price):¥7,649,362,500

Issue amount (Paid-in value):¥174,170 per unit

Total issue amount (Aggregate paid-in value):¥7,402,225,000

Payment date:February 25, 2021

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

2,125 units

Issue amount (Paid-in value):¥174,170 per unit

Total issue amount (Aggregate paid-in value):¥370,111,250

Payment date:

March 9, 2021

Allottee:

SMBC Nikko Securities Inc.

19. SECURITIES PORTFOLIO
Securities portfolio consists of the following as of January 31, 2021:(1)

Stock Not applicable(2)

Securities other than shares Not applicable

Securities portfolio consists of the following as of July 31, 2020
(1) Stock Not applicable(2) Securities other than shares

Not applicable76

20. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
Property, plant and equipment consist of the following as of January 31, 2021:
Type of asset

Property,plant andequipment

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

Depreciation
Depreciation
for theperiod(in thousands of yen)
¥172,666¥¥
172,666
108,177,749
14,437,598
1,413,425
1,175,676
285,575
33,354

Increaseduring theperiodDecreaseduring theperiod¥1,798,041
1,798,041
104,694,136
1,127,421¥172,666
172,666
3,483,612
48,255¥1,798,041
1,798,041-

1,468,718

25,024-

1,493,742

420,189

33,429

1,073,553

693,103

105,008-

798,111

121,898

22,063676,213150,985,849
258,969,228
260,767,270

9,729,039
13,390,940
13,563,607

1,798,041

160,714,888
272,360,169
272,532,836

15,265,261
15,265,261

1,502,272
1,502,272

1,229,487-

106,982

1,122,504

5,749

1,724

1,116,755-¥106,982

7,762¥1,130,267

4,528¥10,277776¥2,501

3,234¥1,119,989

7,762¥1,237,249¥

Balance atthe end of
periodNetbalance at
end of theperiodBalance atthe beginningof period

Accumulated
depreciation¥172,666
172,666
93,740,151
890,101

Remarks

Note 2
Note 1

160,714,888 Notes 1 and 2
257,094,908
257,267,575
Note 2

Note 1: The amount of increase during the period is primarily attributable to the acquisition of the real estate properties and capital expenditures.
Note 2: Due to the change in ownership form to real estate trust beneficiary for Cosmo Heim Motosumiyoshi (land), land decreased and reclassified
into land in trust. On the other hand, due to the partial change in ownership form to real estate for Rehabili-home Granda Mondo Yakujin(land with leasehold interest), leasehold right in trust decreased and reclassified into Land.
Property, plant and equipment consist of the following as of July 31, 2020
Type of asset

Property,plant andequipment

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

Balance atthe beginningof period

Increaseduring theperiodDecreaseduring theperiod¥1,798,041
1,798,041
100,799,661
1,089,011¥¥

4,252,497
50,323

Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥1,798,041¥¥
1,798,041
104,694,136
13,024,172
1,380,991
1,127,421
252,22132,643

Balance atthe end of
period358,022
11,913Netbalance at
end of theperiod¥1,798,041
1,798,041
91,669,964 Notes 1 and 2
875,199

1,448,282

20,435-

1,468,718

386,760

32,885

1,081,958

570,610123,043550

693,103

99,834

18,674593,268

139,731,924
243,639,490
245,437,532

11,393,759
15,840,059
15,840,059

139,835
510,321510,321150,985,849
258,969,228
260,767,270

13,762,988
13,762,988

1,465,195
1,465,195

1,229,487--

1,229,487

4,024

1,724

1,225,462-

7,762¥1,237,249

3,752¥7,776776¥2,5014,010¥1,229,473

7,762¥1,237,249

¥

-

¥

Remarks

150,985,849 Notes 1 and 2
245,206,240
247,004,281

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

21. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of January 31, 2021 are as follows.
Balance at theDecrease
Balance at
Date of
Seriesbeginning ofduring thethe end of
issue
periodperiodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)

Interest
rate

0.200%
0.540%
0.800%

Repayment date

Use

Remarks(Note2)

Unsecured

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

77

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)
Total

Balance at theDecrease
Balance at
beginning ofduring thethe end of
periodperiodperiod(in thousands of yen)

Date ofissue

SeriesNovember 30,
2018
November 30,
2018
December 20,
2019

Interest
rate

1,000,000-

1,000,000

0.410%

1,000,000-

1,000,000

0.850%

2,000,000-

2,000,000

0.750%-¥7,000,000¥7,000,000¥

Repayment date

Use

Remarks(Note3)

Unsecured

November 30,
2023
November 30,
2028
December 20,
2029

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 the acquisition of social eligible assets.
Note 4: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
Due after 1 year
Due after 2 years
Due after 3 years
Due after 4 years
or less
through 2 years
through 3 years
through 4 years
through 5 years
Investment
corporation bonds(in thousands of yen)

¥1,000,000¥ -¥1,000,000

Outstanding Investment corporation bonds as of July 31, 2020 are as follows.
Balance at theDecrease
Balance at
Date of
Seriesbeginning ofduring thethe end of
issue
periodperiodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2018(Note 1)Fifth series of unsecured
November 30,
investment corporation
1,000,000
1,000,000
2018
bonds (Note 1)
Sixth series of unsecured
December 20,
investment corporation
2,000,000
2,000,000
bonds(Social bond)2019(Note 1)
¥ Total¥7,000,000¥7,000,000¥ -Interest
rate

0.200%
0.540%
0.800%
0.410%
0.850%
0.750%

Repayment date

¥ -

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured

August 30,
2021
August 28,
2026
August 30,
2028
November 30,
2023
November 30,
2028
December 20,
2029

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 the acquisition of social eligible assets.
Note 4: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
Due after 1 year
Due after 2 years
Due after 3 years
Due after 4 years
or less
through 2 years
through 3 years
through 4 years
through 5 years
Investment
corporation bonds(in thousands of yen)

¥ -¥1,000,000¥ -¥1,000,000

¥ -

78

22. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of January 31, 2021
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-0.414%

January 31, 2021

Balance atthe end of
periodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Short-term Banking Corporation
loans
Sumitomo Mitsui
payableBanking Corporation
Sumitomo Mitsui
Banking Corporation
Sub total
MUFG Bank, Ltd.

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

¥800,000¥-¥800,000¥

1,000,000--

1,000,000

0.414%

February 28, 2021

500,000--

500,000

0.414%

February 28, 2021

500,000--

500,000

0.364%

July 31, 2021

2,800,000-

800,000

2,000,000

1,000,000-

1,000,000-

1.109%

January 31, 2021

2,000,000-

2,000,000-

0.804%

November 30, 2020

300,000
300,000
500,000-

300,000
300,000
500,000-

0.678%
0.624%
0.422%

August 31, 2020
October 27, 2020
August 31, 2020

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

1,000,000--

1,000,000

0.409%

July 31, 2021

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

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

0.409%
0.409%
0.409%
0.439%
0.439%

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

1,100,000--

1,100,000

1,100,000--

1,100,000

600,000--

600,000
0.916%

August 7, 2021

350,000--

350,000

300,000--

300,000--

300,000--

1,000,000

0.996%(Note 5)

August 7, 2021

600,000--

600,000

0.945%

August 31, 2021

600,000--

600,000

0.945%

August 31, 2021

500,000--

500,000

0.945%

August 31, 2021

1,200,000--

1,200,000

0.875%

January 31, 2022-

800,000-

800,000

0.428%

January 31, 2022

18,500,000

800,000

4,100,000

15,200,000

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--

400,000--

400,000
300,000

200,000--

200,000

200,000--

200,000

300,000
1,000,000

400,000
400,000
300,000

1.254%

August 7, 2023

79

Classification
LenderAozora Bank, Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank,
Limited
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Insurance Inc.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Long-term
loans
payableBalance atthebeginning of
period150,000

Increaseduring theperiodDecreaseduring theperiod(in thousands of yen)-

Balance atthe end of
period-150,000

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)950,000
1,200,000
2,000,000

1.320%(Note 5)1.083%
1.105%
0.875%

November 30, 2022
January 31, 2024
April 30, 2022-

1,500,000

0.987%

April 30, 2023-

2,000,000

1.100%

April 30, 2024--

1,000,000

1.265%

April 30, 2025--

1,100,000

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

500,000--

500,000

950,000
1,200,000
2,000,000--

1,500,000-

2,000,000-

1,000,000
1,100,000

950,000--

950,000

1.047%

August 31, 2023--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

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

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000

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

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000-

500,000

0.797%

August 31, 2025

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

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

Remarks(Note 6)

Unsecured/
Unguaranteed

August 7, 2023

1,700,000
950,000-

Use

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

2,000,000--

2,000,000

August 31, 2025

500,000--

500,000

3,000,000--

3,000,000

0.906%

August 31, 2026
October 31, 2025

August 31, 2025

1,000,000--

1,000,000

0.773%(Note 5)1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

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

August 22, 2027

1,200,000

1,500,000--

1,500,000

0.501%

February 28, 2023

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

0.582%
0.624%

February 29, 2024
August 31, 2024

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

80

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

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)LongtermloanspayableMizuho 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
MUFG Bank, Ltd.
Development Bank ofJapan Inc.
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.

500,000--

500,000

0.661%(Note 5)

August 31, 2024

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

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

August 31, 2022

1,600,000--

1,600,000

0.509%
0.498%(Note 5)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

700,000--

700,000

1,000,000--

1,000,000

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

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

Mizuho Bank, Ltd.

2,000,000--

2,000,000

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

500,000
500,000
800,000--

500,000
500,000
800,000

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

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

1,000,000--

1,000,000

0.572%

August 31, 2026

500,000--

500,000

0.325%

April 30, 2023

450,000--

450,000

0.336%

April 30, 2024

1,500,000
500,000--

1,500,000
500,000

0.600%
0.329%

November 30, 2026
July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

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

250,000--

250,000

1,400,000--

1,400,000

800,000--

800,000

August 31, 2022

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

May 31, 2025

81

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

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Sumitomo Mitsui
Trust Bank, Limited
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.

--

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

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

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

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

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

Long-term
loans
payable300,000

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.
MUFG Bank, Ltd(Note 5)
MUFG Bank, 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-

800,000-

800,000

0.550%

September 30, 2028-

300,000-

300,000

0.637%

October 31, 2027-

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

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

1,000,000-

1,000,000

0.599%

January 31, 2028-

1,200,000-

1,200,000

0.409%

January 31, 2025-

1,100,000-

1,100,000

0.359%

January 31, 2025

106,750,00
0

14,270,000-

121,020,000

82

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

Payment due date
(Note 7)Use

Remarks(in thousands of yen)Total

¥128,050,000¥15,070,000¥4,900,000¥138,220,000

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 1 year
through 2 years
Long-term loans payable¥18,250,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥14,400,000¥15,900,000

Due after 4 years
through 5 years

Due after 5 years¥15,500,000¥56,970,000

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.

83

Short-term debt and long-term debt consist of the following as of July 31, 2020
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-0.419%

February 28, 2020

Balance atthe end of
periodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Shortterm loans
payableSumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sub total
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
MUFG Bank, Ltd

Current
portion of
long-term
loans
payableLongtermloanspayableSumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation(Note 2)
Aozora Bank, Ltd.
(Note 2)
Sumitomo Mitsui
Banking Corporation(Note 2)
Shinsei Bank, Limited(Note 2)
MUFG Bank, Ltd.
(Note 2)
Mizuho Bank, Ltd.
(Note 2)
MUFG Bank, Ltd.
(Note 2)
Mizuho Bank, Ltd.
(Note 2)Sub total
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank,
LimitedSumitomo 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.
Mizuho Bank, Ltd.

¥1,000,000¥-¥1,000,000¥

1,000,000-

1,000,000-

0.374%

July 31, 2020

500,000-

500,000-

0.324%

July 31, 2020

800,000--

800,000

0.416%

January 31, 2021-

1,000,000-

1,000,000

0.416%

February 28, 2021-

500,000-

500,000

0.417%

February 28, 2021-

500,000-

500,000

0.347%

July 31, 2021

3,300,000
1,750,000

2,000,000-

2,500,000
1,750,000

2,800,000-

0.729%

July 29, 2020

1,750,000-

1,750,000-

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

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

500,000-

500,000-

1,000,000--

1,000,000

1.109%

January 31, 2021

2,000,000--

2,000,000

0.804%

November 30, 2020

300,000
300,000
500,000--

300,000
300,000
500,000

0.678%
0.624%
0.441%

August 31, 2020
October 27, 2020
August 31, 2020

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

1,000,000--

1,000,000

0.409%

July 31, 2021

1,000,000--

1,000,000

0.409%

July 31, 2021

500,000--

500,000

0.409%

July 31, 2021

500,000--

500,000

0.409%

July 31, 2021

900,000--

900,000

0.441%

July 31, 2021

500,000--

500,000

0.441%

July 31, 2021

16,850,000-

6,000,000

10,850,000

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

1,100,000--

1,100,000

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

1,100,000
600,000
350,000

0.916%

August 7, 2021

300,000--

300,000--

300,000--

1,000,000

0.996%(Note 5)

August 7, 2021--

400,000--

400,000
300,000

1.254%

August 7, 2023

300,000
1,000,000
400,000
400,000
300,00084

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

Payment due date
(Note 7)1.254%

August 7, 2023

Use

Remarks(Note 6)

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

200,000--

200,000

200,000--

200,000

150,000--

150,000

500,000--

500,000

1.320%(Note 5)

August 7, 2023

600,000--

600,000

0.945%

August 31, 2021

600,000
500,000
950,000--

600,000
500,000
950,000

0.945%
0.945%
1.083%

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

1,200,000--

1,200,000

0.875%

January 31, 2022

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

1,200,000
2,000,000

1.105%
0.875%

January 31, 2024
April 30, 2022

1,500,000--

1,500,000

0.987%

April 30, 2023

2,000,000--

2,000,000

1.100%

April 30, 2024

1,000,000--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000
1.115%

July 29, 2022

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1,000,000--

1,000,000

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

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%

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

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

MUFG Bank, Ltd.

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

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

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

August 31, 2025
August 31, 2025

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

85

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

Payment due date
(Note 7)Use

Remarks(Note 6)

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

500,000--

500,000

0.928%(Note 5)

August 22, 2027

1,500,000--

1,500,000

0.501%

February 28, 2023

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

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

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

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

1,000,000--

1,000,000

0.509%

August 31, 2022

0.509%
0.498%(Note 5)

August 31, 2022

August 31, 2024

400,000--

400,000

1,600,000--

1,600,000

1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

MUFG Bank, Ltd.

800,000--

800,000

Nippon Life Insurance
Company

700,000--

700,000

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

Shinsei Bank, Limited

1,000,000--

1,000,000

1.031%

800,000--

800,000

1.031%

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

500,000--

500,000

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

0.330%(Note 5)0.484%

August 31, 2022

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

May 31, 2025
November 30, 2025

86

Classification
Lender

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

Balance atthebeginning of
period500,000
800,000

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

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

500,000
800,000

0.272%
0.299%

January 31, 2023
July 31, 2023

1,000,000--

1,000,000

0.572%

August 31, 2026

500,000--

500,000

0.325%

April 30, 2023

450,000--

450,000

0.336%

April 30, 2024

1,500,000
500,000--

1,500,000
500,000

0.600%
0.329%

November 30, 2026
July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023-

500,000-

500,000

0.259%

February 29, 2024-

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

Sumitomo Mitsui
Trust Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank,
LimitedMizuho Trust &Banking Co., Ltd.
The Bank ofFukuoka, Ltd.
LongtermloanspayableDecreaseduring theperiodIncreaseduring theperiod0.450%(Note 5)0.531%
0.300%(Note 5)

MUFG Bank, Ltd.

-

400,000-

400,000

Aozora Bank, Ltd.

-

200,000-

200,000

MUFG Bank, Ltd.

-

600,000-

600,000-

1,000,000-

1,000,000

0.646%

June 30, 2028-

800,000-

800,000

0.646%

June 30, 2028
June 30, 2028

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

February 29, 2028-

500,000-

500,000

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

1,750,000

0.691%

July 31, 2028

1,750,000-

1,750,000

0.641%

July 31, 2028-

1,000,000-

1,000,000

0.641%

July 31, 2028

Mizuho 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

100,500,00
0

13,900,000-

114,400,000¥15,900,000¥8,500,000¥128,050,000

Total¥120,650,000(Note 6)

Unsecured/
Unguaranteed

February 29, 2024-

Sub total

Remarks

February 28, 2027

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

Use

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 1 year
through 2 years
Long-term loans payable¥19,650,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥13,350,000¥ 14,850,000

Due after 4 years
through 5 years

Due after 5 years¥13,550,000¥53,000,000

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 are87

included) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.

8823. DISTRIBUTIONS
18th Fiscal Period(From August 1, 2020 to January 31, 2021)

I. Retained earnings at the end of period

17th Fiscal Period(From February 1, 2020 to July 31, 2020)¥3,997,276,406¥4,212,398,326¥20,000,000¥20,000,000¥3,867,815,028¥3,866,863,770¥4,066¥4,065¥149,461,378¥365,534,556

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥3,867,815,028, which is the amount of¥3,631,741,850 in net income and ¥216,073,178 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
18th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥3,866,863,770, which is the amount of¥3,808,030,471 in net income, ¥38,833,299 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
17th 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
18th Fiscal Period (August 1, 2020 to January 31, 2021)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 18th fiscal period distribution.
17th Fiscal Period (February 1, 2020 to July 31, 2020)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed andapplied to distribution in the 17th fiscal period distribution.

89