From February 1, 2020 to July 31, 2020

17th

SemiAnnual
REPORT
Kenedix Residential Next Investment Corporation

Ⅰ
Overviewof KDR

To our unitholders
We would like to thank all of our unitholders and stakeholders for their continued supports and corporation.
First of all, we would like to express our deepest sympathies to those affected by the COVID-19 and pray for the earliest possible
recovery.
We are pleased to inform you that Kenedix Residential Next Investment Corporation (KDR) successfully closed all accounts for the
17th fiscal period (from January 1, 2020 to July 31, 2020). We hereby report on the asset management overview and results forthe 17th Fiscal Period.
For the 17th fiscal period, operating revenue was ¥ 8,374 million, operating income was ¥ 4,469 million, ordinary income was¥ 3,808 million, and net income was ¥3,808 million, resulting in a distribution per unit of ¥ 4,065, up 0.02% from the previous fiscal
period.
During the fiscal period under review, KDR raised funds through public offering in February 2020, the third time since its merger inMarch 2018, and together with borrowings and cash on hand, KDR acquired 6 properties of rental housing and 2 properties ofaccommodations (hotels), and also sold 1 rental housing property located in Sendai City. As a result, at the end of July 2020, ourAUM amounted to 151 properties and ¥248.9 billion (total acquisition price).
In the management of owned properties, the occupancy rate of the portfolio at the end of the fiscal period was 96.8%,
continuing to maintain a high occupancy rate despite the impact of the COVID-19.
Regarding residential facilities, occupancy rates remained generally at the same level as the previous year,
and it was confirmed that rents continued to trend upward.
On the other hand, healthcare facilities and accommodation facilities contributed to maintaining portfolio
stability through long-term lease contracts.
As to activities in the 17th fiscal period onward, KDR acquired 1 rental housing property each inAugust and September 2020. As a result, the size of our AUM as of September 24, 2020
was 153 properties valued at ¥250.5 billion.
Based on an accurate understanding of social and economic changes, we will pursue
with flexibility investment and revenue opportunities that we believe are the most
attractive. We will dynamically invest and manage our portfolio 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,
Kenedix Residential Next
Investment Corporation
Director & COO, Head of
Residential REIT Department,
Kenedix Real Estate FundManagement, Inc.

1

Highlights

Distribution per Unit

18th (Ending January 2021) Forecast¥ 4,066

17th (Ended July 2020) Actual(Note) Distribution per unit for 18th
fiscal period and 19th fiscal period is
estimated based on certain
assumptions as of September 14, 2020

¥ 4,065

19th (Ending July 2021) Forecast¥ 4,067

Trend in DPU
（yen）
5,000

¥ 4,026¥ 4,063¥ 4,039¥ 4,064¥ 4,065¥ 4,066¥ 4,067

Jul.2020(17th Period)

Jan.2021(18th Period)(Forecast)

Jul.2021(19th Period)(Forecast)4,000¥ 3,473¥ 3,266¥ 3,316Jan.2017(10th Period)

Jul. 2017(11th Period)

3,000

0

Jan.2018
Jan.2019
Jul. 2018(12th Period) (13th Period) (14th Period)

Jan.2020
Jul. 2019(15th Period) (16th Period)(Note) KDR implemented a two-for-one split of the investment units as of the record date of February 28, 2018 (Effective date on March 1, 2018). Before the period ended
January 2018 (12th fiscal period), the figures for the distribution per unit are those taking into account the spilt of the investment units.

(million yen)

17th Fiscal Period

8,374

4,260
17th Fiscal Period

4,469

16th Fiscal Period

16th Fiscal Period

3,614

Net Income

Operating
Revenues

8,066

16th Fiscal Period

ordinary income

Operating Income

16th Fiscal Period

17th Fiscal Period

3,808

3,613
17th Fiscal Period

3,808

Portfolio overview
Total Number of properties

151 properties
Total Acquisition price¥248.9 billion
Occupancy rate
(At the end of 17th Fiscal
Period)96.8%

Residential Facilities

124 properties
Residential Facilities¥188.0 billion
Residential Facilities

95.3 %

Healthcare Facilities

24 properties
Healthcare Facilities

Accommodation
Facilities

Other

Accommodation
Facilities

Other

2 properties

1 property¥54.1 billion ¥4.9 billion ¥1.7 billion
Healthcare Facilities

100.0 %

Accommodation Facilities

100.0 %

2

Feature : Operation Status of owned Properties

Residential Facility
The number of new tenants declined due to restriction on movement
caused by the Corona disaster, but high occupancy was maintained
Regarding the status of Residential Facilities management in the current fiscal

Occupancy Tokyo

year, the average occupancy rate of the portfolio was 96.3% (Note 1), which is an

100.0％-0.1% compared to the same period of the previous year, but we were able to97.5％

continue to maintain a high level of occupancy.

95.0％

Every year, in March and April, personnel movements are becoming more active

92.5％

due to starting of a new school year , job placement, and corporate personnel

90.0％

transfers. However, from April this year onward, the number of housing tours
offered for rent has declined significantly due to the spread of COVID-19 , leading

Metropolitan
Area

Other
Regional
Areas

All
Areas

15 th period ended 16 th period ended on
17 th period ended
on July 31,2019
January 31,2020
on July 31,2020Feb. Mar. Apr.May Jun. Jul. Aug. Sep.Oct. Nov. Dec. Jan.. Feb. Mar. Apr.May Jun. Jul.

KDX Residence TOYOSU

to reduced numbers of relocations.
In Tokyo metropolitan area in particular, the number of applications for new
tenants declined year on year and the occupancy rate also performed a slightdeclined trend, partly due to a decrease in the excess number of migrants from
April onward, despite a continuation of a large migration surplus in the past.
On the other hand, in other major cities, while no significance change was seen in
the trend of excess migration, the occupancy rate remained at the same level as
the same period of the previous year.

Notes: 1. Figures exclude KDX Residence Kichijoji acquired in new construction in March 2020 and KDX Residence Mitaka acquired in new construction in June 2020.

Impact of COVID-19

On the Operational Status

Portfolio
consisting
mainly of
Residential
Properties

21.6 %

Healthcare Facility（¥5 4 . 1 million ）Facilities continue to operate as usual
Healthcare Facilities are continuing to operate as usual after

Investment Corporation.

each operator has introduced various measures to prevent the Although the status of operations at each facility, occupancy
spread of the virus.

rates and other factors have avoided the severe impact by thisThanks to the careful operations such as limiting the numbers

outspread, some facilities are struggling with the declinedof visitors, as of the end of August 2020, no infections havenumber of users of home-visit nursing services and day-carebeen identified within the Healthcare Facilities held by theservices.

Occupancy

Tsukui Sunshine Machida100.0％

Average occupancy rate (Senior living facilities)
Average utilization rate (Nursing and health facilities)

95.0％
93.7%

93.8%

94.0%

92.9%

90.0％
87.6%

85.0％

88.6%

88.4%

December 2019
（6 months）

June 2020（6 months）

85.1%
80.0％
December.2018 June.2019（6 months）（6 months）

3

Rent upward trend continued
As the tenant replacement in the portfolio was made, the new rents

there have been no significant changes in the upward trend inincreased with a rate of 4.0%, and the renewal rents exhibited a riserents, indicating that the supply and demand conditions forwith a rate of 0.6%, both becoming the highest rate ever.

housing remain favorable for landroads.

Particularly, the increase in rent prices in central Tokyo was

However, considering such a stagnant liquidity in the society, theapparent, and new rents at properties located in the eight central

outspread of COVID-19 are most likely to produce larger impacts

wards (Note 2) rose by more than 6%. New rents in the residential

on the real economy soon in the future. It is essential to closely

portfolio have been increasing for the past four consecutive periods

observe any movements of possible future trends as this(2 years). Despite the impacts caused by COVID-19,

consequence could potentially pressure the tenants in terms of
their ability to pay off the rent.

Percentage of Increase/Decline of rent of new tenantsTokyo
Metropolitan
Area

6.0％

Other
Regional
Areas

Percentage of Increase/Decline of rent of renewal tenants

All
Areas

4.1％

5.4％

3.6％
3.0％

0.5％
4.0％

2.7％

0.4％
January 2019（14th）

1.1％

1.0％

July 2019（15th）

January 2020
（16th）

Other
Regional
Areas
0.6％

0.2％
0.1％

July 2020（17th）-0.1％ 0.0％
January 2019（14th）

0.8％

0.5％
0.2％

0.1％

1.9％

All
Areas

0.6％

0.2％
0.2％

0.2％

3.0％

2.6％
2.0％
0.0％

Tokyo
Metropolitan
Area

0.8％

July 2019（15th）

0.2％

January 2020
（16th）

July 2020（17th）(Note2) Chiyoda, Chuo, Minato, Shibuya, Shinjuku, Shinagawa, Meguro, Setagaya

75.7 %（¥189.7million）

2.0 %（¥4 . 9 milliom）

Performing stable cash-flow mainly in Residential
Facilities
Impact of rent payment deferral to somecommercial and hotel tenants is very limited

Accommodation Facility

Accommodation demand decreased under the declaration of emergency
KDR owns two hotels located in Yokohama and Otsuka in Tokyo.

Operational conditions have been gradually improving since June whenSince both are business hotels of which majority of guests are

more movements in the society were seen, but ADR has not yet

domestic customers, the hotels remained at a certain operational

recovered to the level before the Corona shock.

level until March despite a significant decrease in the number ofUnder these circumstances, KDR is providing a deferral of payments for a

foreign tourists. Both occupancy rates and ADRs, however,certain period of time for a portion of rent and striving to support the

declined notably in April and May, when the Emergency

operators for the establishment of long-term relationships with them.

Declaration was issued across the country.

Occupancy/ADR (year to year comparison)（ N ot e 3）

Hotel LiVEMAX

Hotel LiVEMAXTokyo Otsuka Ekimae

Yokohamaeki Nishiguchi

Declaration of Emergency
100.0％

Occupancy

0.0％

February 2020 March 2020

April 2020

May 2020

June 2020

ADR

July 2020(Note3) Simple average of year-on-year rate of increase / decrease of occupancy rate and ADR of the two hotels

4External Growth

Newly Acquired Property in 18th Period
T-92 KDX Residence Ichikawa
Convenience

StudioA residence for singles, located in an area with various
convenient facilities and good access to the city center

Acquisition Date September 24, 2020
Location
AccessConstruction
Completion
Rentable Units

Ichikawa city, Chiba

KDX Residence Ichikawa

Five minutes’ walkfrom Ichikawa Station
on JR Sobu Line
February 2004
47 units

Acquisition Price ¥ 840 million
NOI Yield（Note 1）

4.7%

(Note1) “NOI Yield ” = NOI described in Appraisal Report / Acquisition Price

Pipeline (Note2)
Healthcare Facility

Residential Facility（Tentative name）
Hatchobori projectPreferential
Negotiation
Right（Tentative name）
Kamishakujii Project

Tokyo

Tokyo

Rehabili Home Granda
Kobe Kitano
Preferential
Negotiation
Right

Fixed Rent

Location Kobe city, Hyogo
Location Chuo ward, Tokyo

Location Nerima ward, Tokyo

Rentable 46 units

Rentable 110~120 units

Units
Completion September 2020

Units
Completion November 2020
(scheduled)

No. of Rooms 59 units
Completion February 2016
Operator Benesse Style Care

Co.,Ltd.

Medical Home
Granda Kurakuen
Fixed Rent

Location Nishinomiya city,
Hyogo
No. of Rooms 68 units
Completion November 2020
Operator Benesse Style Care

Co.,Ltd.

(Note2) As of September 24, 20205

Sustainability

Evaluation by third parties▼

Certification for residential assets★：New (March 2020)

DBJ Green Building Certification(1)12 residential properties are certificated. (5 properties newly obtained the certification in March 2020)
KDX Daikanyama Residence

KDX Sakaisuji
Hommachi Residence(Note 1)★

★

KDX Residence
Hommachibashi★

KDX
Residence
Ebisu

KDX
Residence
HanzomonKDX
Residence
Yotsuya

KDX Residence Ohori Harbor View Tower

Ashiya
Royal
Homes

★

KDX
KDX
KDX
Residence Residence
Residence
Kobe
ShukugawaToyosuMotomachi
Hills“DBJ Green Building Certification” is a system established by Development Bank of Japan in April 2011 to support real estate that meets environmental and social
conditions.

BELS Certification

Plaisant GrandOta tamagawa▼

Certification for healthcare assets▼★

KDX Residence Higashi-skura I

GRESB Real Estate Assessment
K DR p a rticip a tes in
GRE S B Rea l E s ta te
A s s es s m en t from 2 0 1 6
a n d a cq u ired “ GreenS ta r” ra tin g in 2 0 1 9.
(Ra tin g is “ 2 S ta rs ” )CASBEE Certification

Excellent Nishinomiya
Self-assessment based on
CASBEE was carried out inNovember 2015, andnotification was submitted
to Nishinomiya City.

Green Lease
Ten ( Healthcare Facility)

OthersReduction of Energy Consumption Volume(3)LED Lights in Common Areas(2) LED lighting
implementation workfor energy-saving
shall be conducted by
KDR who is theowner of the facility.
 Part of the tenant’s benefits ofreduction in electricity charges forthe lighting equipment and bulb
replacement costs resulting fromsuch renovations shall be paid to KDR
as green lease fees.

GRESB (Ex Global Real Estate Sustainability Benchmark)is a benchmark to evaluate sustainability performanceof private and listed real estate portfolio, etc. fromenvironmental and social perspectives.

Total(after
2015)
Property (props)(Note 2)
(Note 3)

Energy Consumption

64
0.10

Expense(mln yen)

124.8

Annual reduction(mln yen)

30.1

5 year（FY2019 throughFY2023）/5% total reduction in
intensity

Reduction
targets

0.083

0.077

0.070

F Y 2017

F Y 2018

F Y 2019

0.05
0(MWh/ｍ 2 )“Annual reduction” is calculated based on the presentation materials from construction company as of exchanging
construction. And it includes reductions in electricity charges paid by lessees (operator) at healthcare facilities.
“Energy Consumption Volume” is actual intensity for Residential Facilities (common area) owned for each entire
year.

6

Overview of Portfolio

Hokkaido

Percentage ofproperties
owned by area

7 Props. 3.2％

Aomori/Akita：Residential Facility： Healthcare Facility：Accommodation Facility：OtherOsaka metropolitan area

2 Props 0.9％

Total

Osaka,Kyoto,Hyogo,Shiga

153Props.

29 Props.
22.0 ％

Miyagi3 Props. 1.2％
Fukuoka

6 Props.

Tokyo Metropolitan Area

4.0％

Tokyo, Kanagawa, Saitama, Chiba

99

Aichi

6 Props.

Hiroshima

Props.

64.5 ％

3.9％

1 Prop. 0.2％

Portfolio Breakdown
Accommodation

Residential Facilities
Family21.6%

StudioO t h e r Facility
2.0%
0.7%
（1prop.） （2 props.）

40.1%

Room type

Healthcare Facility

21.6%

Small Family

38.3%（24 props.）

Use
Tokyo Central
8 Wards

Other
Regional
Areas

37.7%

30.1%

Area

Other Tokyo
Metropolitan
Area

9.8%

Other Tokyo
Special Wards

22.4%

Residential
Facility

75.7%（126 props.）
Tokyo Metropolitan Area

69.9%

Healthcare Facilities
Nursing and health facilities

21.5%（5props.)
Serviced senior
housing
2.5％ (1 prop.)

Facility
type
Private senior homes(with nursing care)

Private seniorhomes (residential)

68.7%（14props.）

7.2%（4props.)
Other

Other
2.5%
Regional Areas

11.3%
Osaka
Metropolitan Area

44.9%

Tokyo

Area Metropolitan
Area

41.3%

Three Major Metropolitan Area

86.1%

(Note )
58

The percentages are based on the acquisition price of assets held as of September 24, 2020. The percentages are rounded to the first decimal place and 7
therefore the total may not equal 100%.

Investment Unit
Investment Unit Price (After Announcement of the Merger) (1)As of July 31, 2020

KDR unit price（yen）

TSE residential■Volume (Right axis)
REIT index
Feb.10 , 2020

TSE REIT index

240,000
220,000

Nov.10, 2017
Announceme
nt of merger

Jul.13 , 2018
Announcement of
the 4th PO

Mar.1 , 2018
Completionof merger

200,000
180,000（unit)
45,000

Announcement of the 6th PO

Sep.7 , 2018
Announcement of inclusion in index

40,00035,000Feb.4 , 2019
Announcement of the 5th PO

30,00025,00020,000160,000

15,000140,000
10,000120,000

5,000
0

100,000
Nov.10 Jan.1
2017 2018

Note 1:
Note 2:

Jan.1
2019

Jan.1
2020

Jul.102020

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)
17th Fiscal period
951,258 units
16th Fiscal period
907,458 units■ Individuals and others■ Foreign companies■Financial institutions■ Other domestic companies

7.5 %71.2 %

7.7 %

66.8 %■ Security firms

14.2 % 3.7 % 3.4%
17.8 %

3.2 %

4.5%

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/
598

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% discountof the amount 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
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
the monthly payment or of the rent (Until the contractend)

The No. of 25 facilities
Facilities
Area
Contact
No.

Tokyo, Saitama, Chiba, Kanagawa, Shizuoka, Aichi, Kyoto,
Hyogo, Osaka
0120-580-731

Property N/Aowned byKDR
Homepage http://www.seikatsu-kagaku.co.jp/

CENTURY LIFE CORPORATION
Benefits● Same-day facility site-visit (with lunch) free of charge

Eligible
PersonUnitholder and his / her spouses and his / her relatives(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

Eligible
PersonUnitholder and his / her spouses and his / her relatives(within the second degree)※A user who has inquired this benefit through agencies,
are ineligible. Also, it cannot be combined with otherdiscount programs.
Ⅰ. Sompo Care LAVIERE operated by Sompo Care Inc asof July 31,2020. (Excluding short-term use)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo noie GH, Private senior homes (residential), Serviced
Facilities
Availablesenior housing, Group homes operated by Sompo
Care Inc. as of July 31,2020. (Facilities for short-term
use are excluded.)
The No. of 432 facilities
Facilities
Hokkaido, Iwate , Miyagi, Akita, Saitama, Chiba, Tokyo,
Kanagawa, Shizuoka, Aichi, Kyoto, Osaka, Hyogo, Nara,
Area
Okayama, Hiroshima, Fukuoka, Kumamoto
Contact
No.

+81-120-155-703

Property N/Aowned by
KDR

Property Sompo Care LAVIERE Kobe Tarumi
owned byKDR

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

Homepage https://www.sompocare.com/

SENIOR LIFE COMPANY

HITOWA Care Service Co., Ltd.

● ≪On the condition of lump sum payment≫ Discounton lump sum payment for resident ( ¥ 300,000
discount)
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)

All of the private senior homes with nursing care andFacilities
apartment
for the elderly operated by SENIOR LIFE
Available
COMPANY as of July 31,2020.
The No. of 5 facilities
Facilities
Area

Tokyo, Fukuoka

Contact
No.

+81-120-678-723

Property N/Aowned byKDR
Homepage https://www.felio.life/

Benefits

Eligible
Person● 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
Facilities
operatedby HITOWA Care Service Co., Ltd as of July
Available
31,2020.
The No. of 113 facilities
Facilities
Hokkaido, Miyagi, Saitama, Chiba, Tokyo, Kanagawa,
Area
Nagano, Aichi, Hyogo, Okinawa
ContactNo.

+81-3-6632-4306

Property Irise Kamata/Yuseien , Irise Nishioka,
owned by Izarie Eniwa Building
KDR
Homepage http://www.irs.jp/

9Nichii Carepalace Company

NM LIFE Co., Ltd.

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

Benefits● Discount on one-time payment for resident (¥ 200,000

discount)● Trial residence free of charge (1-night, 2-day stay, withdinner, lunch and breakfast)
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 Nichii Carepalace Company as of July 31,2020.

The No. of 74 facilities
Facilities
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/
Sawayaka Club Corporation● 10% discount on usage charge for the first monthly

payment
Benefits● Trial residence free of charge, up to three times (1-night,

Benefits(up to three times)

Eligible Unitholder and his / her spouses and his / her relatives
Person (within the second degree)
Facilities Joy Stage Hachioji
Available
The No. of
Facilities

1 facility

Area

Tokyo

Contact
No.

+81-120-38-0161

Property Joy Stage Hachioji
owned byKDR

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

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

Homepage

http://www.joystage.com/● 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
Hokkaido, Akita, Tochigi, Saitama, Chiba, Kanagawa,Niigata, Shizuoka, Aichi, Mie, Kyoto, Osaka, Hyogo,
Area
Ehime, Wakayama, Fukuoka, Oita

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
Facilities
operated by CARE TWENTYONE CORPORATION as of
Available
July 31,2020.

Contact
No.

+81-120-958-490

The No.
of
Facilities

Property
owned by
KDR

Sawayaka Sakura NibankanArea

42 facilities

Tokyo, Saitama, Chiba, Kanagawa, Aichi, Kyoto,
Osaka, Hyogo, Hiroshima+81-120-944-821

Homepage http://www.sawayakaclub.jp/

Contact
No.

Excellent Care System Co., Ltd.

Property Plaisant Grand Ota tamagawa
owned byKDR

Benefits
Eligible
PersonFacilities
Available● 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.
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/

Homepage https://www.care21.co.jp/(Note 1) A resident of the requested healthcare facility is ineligible .
(Note 2) The area and the number of facilities are as of July 31, 2020.
(Note 3) There may be restrictions on trial residence and facility tour due
to the operating condition of operators.
(Note 4) In the case of private senior homes with nursing care, those
who are not required for nursing care may not be able to use
this Unitholder Benefits Program .
(Note 5) It may be necessary to consult with a care manager and take a
medical checkup before trial residence.

1061

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

General Outline of the Unitholder Benefit Program
1.Eligible Unitholder

Unitholders stated or recorded on the unitholders’ register of the Investment Corporation as of July
31, 2020 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 July 2020 (17th 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

April 30, 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 be
A some restrictions to benefit programs due to the operational status of facilities and such.
Please call the operator to find out the details of the benefit programs.

Q What are the procedures required to use the program?
A

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

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

Please bring the document enclosed with this Semi-annual Report affixed with 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.

11

II.

Asset management report

1. Outline of asset management operation(1)

Operating result and financial position
Fiscal period

Unit

13th

14th

15th

16th

17th

From Feb. 1, 2018

From Aug. 1, 2018

From Feb. 1, 2019

From Aug. 1, 2019

From Feb 1, 2020

to Jul. 31, 2018

to Jan. 31, 2019

to Jul. 31, 2019

to Jan. 31, 2020

to Jul. 31, 2020

Operating result

Operating revenues

mil.yen

7,097

7,823

8,136

8,066

8,374

(Rental revenues)

mil.yen

6,655

7,605

7,933

8,027

8,289

Operating expenses

mil.yen

3,657

3,610

3,777

3,806

3,904

(Expenses related to rent business) mil.yen

2,554

2,794

2,915

2,911

3,005

Operating income

mil.yen

3,439

4,213

4,358

4,260

4,469

Ordinary income

mil.yen

2,842

3,599

3,741

3,614

3,808

Net income

mil.yen

5,416

3,598

3,741

3,613

3,808

Total asset

mil.yen

213,558

245,103

254,965

256,665

272,960%(＋20.8)（＋14.8）（＋4.0）（＋0.7）（＋6.3）

Interest-bearing debt

mil.yen106,130

123,250

125,900

127,650

135,050

Unitholders’ equity

mil.yen

98,745111,951

118,541

118,500

127,457%(＋19.5)（＋13.4）（＋5.9）（-0.0）（＋7.6）

99,731
3,687
98.5

99,731
3,687
102.1

108,550
3,866
101.5

907,458

907,458

951,258(period to period change)Asset(period to period change)

Distribution per unit

Unitholders’ capital

mil.yenTotal distribution

mil.yen80,132
3,152

Dividend payout ratio (Note 2)

%

58.2

93,2263,510
97.6

Number of investment units issued
and outstanding

unit

782,928

869,133

yen

7,036

4,143

4,142

3,981

4,028

Unitholders’ equity per unit (Note 3)

yen

126,123

128,807

130,630

130,584

133,988

Distribution per unit

yen

4,026

4,039

4,063

4,064

4,065

Profit distribution

yen

4,026

4,039

4,063

4,064

4,065

Distribution in excess of profit

yen

－

－

－

－

Return on assets (Note 5)

%

1.5

1.6

1.5

1.4

1.4

Annualized (Note 6)

%

2.9

3.1

3.0

2.8

2.9

%

6.0

3.4

3.2

3.0

3.1

%

12.0

6.5

6.0

6.2

46.2

6.8
45.7

46.5

46.2

46.7

(-0.5)（-0.6）（＋0.8）（-0.3）（＋0.5）

%

49.7

50.3

49.4

49.7

49.5

FFO
(Funds from Operation)

mil.yen

6,126

4,750

4,948

5,023

5,218

FFO per unit (Note 3,10)

yen

7,824

5,466

5,453

5,536

5,486

mil.yen

5,245

6,154

6,408

6,545

6,751

%

5.5

5.5

5.5

5.5

5.4

mil.yen

4,808

5,539

5,796

5,888

6,235

Net income per unit

Return on net assets
Annualized(Note 3,4)(Note 7)(Note 6)

Net asset ratio
Financial indicator(period to period change)
Interest-bearing debt ratio on assets(Note 8)%(Note 9)(Note11)

Leasing NOI(Net Operating Income)Annualized NOI yield (Note 6,12)(Note 13)

Leasing NCF(Net Cash Flow)

Annualized NCF yield(Note 6,14)

Number of properties

%

5.0

5.0

5.0

5.0

5.0

properties

129

138

143

144

151

Reference

Leased units (Residential)

unit

7,552

8,017

8,080

8,148

8,319

Total leasable floor area (Note 15)m²

410,556.41

467,606.17

491,050.34

490,988.55

503,721.25

Occupancy ratio (Note 15)

%

97.6

97.7

97.5

97.6

96.8

Depreciation expenses

mil.yen

1,144

1,343

1,391

1,428

1,467

Capital expenditures

mil.yen

436

614

612

656

515

(Note 1)
(Note 2)

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

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

Net income for 13th fiscal period include negative goodwill of 2,574 million yen.
The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective date as ofMarch 1, 2018. “Net income per unit”, “Unitholders’ equity per unit “ and “FFO per unit “ are calculated subjected for the Investment
Corporation investment units to be split on February 1, 2018.
Net income per unit is calculated by dividing the net income by weighted average of number of investment units
Return on assets ＝Net income /｛(Total assets at the beginning of period + Total assets at the end of period)/2｝×100
Annualized values for the 13th fiscal period are calculated based on a period of 181 days, 184 days for 14th fiscal period, 181 days for
15th fiscal period, 184days for 16th fiscal period, 182 days for 17th 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. Net income for 13th fiscal period includes negative goodwill of 2,574 million yen.
FFO per unit ＝FFO／Number of investment units issued and outstanding(rounded down to unit)
Leasing NOI＝Rental revenues －Expenses related to rent business＋Depreciation expenses
Annualized NOI yield＝Annualized NOI／Total acquisition prices of properties ×100
Leasing NCF＝ Leasing NOI－Capital expenditures
Annualized NCF yield ＝Annualized NCF／Total acquisition prices of properties ×100
Figure and ratio include for land with leasehold interest.

13

（2）Outline of asset management operation for the 17th 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 17th fiscal period, the Investment Corporation owns a
total of 151 real estate properties (total acquisition price: 248,905 million yen (Note 1)) consisting of 124 residential
facilities such as rental housing, 24 healthcare facilities such as private senior homes with nursing care, 2
accommodation facilities such as hotels and 1 other property (land with leasehold interest) and the total number ofinvestment units issued and outstanding is 951,258 units.
The Investment Corporation entrusts the asset management to Kenedix Real Estate Fund Management, Inc. (the“Asset Management Company”), a company that was formed with personnel from Kenedix, Inc. and adheres to thecore philosophies of Kenedix, Inc. The Asset Management Company provides real estate investment management
services with flexibility and agility unique to a J-REIT (Note 2) sponsored by an independent real estate managementcompany by flexibly pursing optimal investment opportunities and income opportunities and agilely investing andmanaging 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.
(Note 2) "J-REIT" is an investment corporation listed on the real estate investment trust of the Tokyo Stock Exchange.

(ⅱ) Investment Environment
During the 17th fiscal period, the Japanese economy was affected by a rapid decline in exports and production
activities due to the novel coronavirus infection, which led to a decline in corporate earnings and a weakening of
the employment and capital investment. On the other hand, after the lifting of the state of emergency declaration,
there has been signs of improvement such as a recovery in consumer spending while the domestic economy still
remains under tough conditions. The Japanese economy is expected to continue to recover moderately, given thatthe fundamentals supporting domestic demand are favorable. On the other hand, it is necessary to pay attention to
the impact of the Covid-19 on the world economy including the United States, the trade issues between the UnitedStates and China, as well as the possibility of future volatility in the financial and capital markets.
In the rental housing market, the occupancy rates of the rental apartment buildings in which the Investment
Corporation invests remained generally unchanged from the previous year and rents continued to increase while
the number of housing tours and applications for rental properties due to the spread of the novel coronavirus
infection.
Concerning the environment surrounding healthcare facilities, with one of the longest average life expectancies forboth men and women, Japan now has a super-aging society (Note) which no other country has ever experienced, andthe “aging,” or the increase in the ratio of the elderly population against total population and the increase in elderly
population itself, is expected to continue going forward. In response to such trends, the number of senior carefacilities such as private senior homes with nursing care and serviced senior housing has been on the rise in recent
years. The Investment Corporation believes that demand for senior care facilities, including nursing care facilities,
will continue to increase.
Demand for accommodation facilities decreased substantially due to restrictions on entry into Japan from overseas
and restrictions on movement within Japan in order to prevent the spread of the Covid-19. It will take some time14

for the demand for hotels to recover, and the operating environment for operators of hotels is likely to remaindifficult for the time being.
In the real estate investment market, there were initially active transactions indirectly induced by BOJ’s
aggressive monetary easing measures, but the spread of the novel coronavirus has led to a decline in new real estatetransactions as investors become more cautious about real estate investments in order to assess the impact of thedisease on profitability. Although the volume of real estate transactions is expected to gradually recover in the near
future, expected yields on rental housing, which is the main investment target of the Investment Corporation, remain
low, and the environment for property acquisitions is expected to remain difficult.
(Note) “Super-aging society” refers to a society with a population aging rate (ratio of the elderly population aged 65 or over against total
population) exceeding 21%, as defined by the World Health Organization and the United Nations.

(ⅲ) Operating Results(A) Acquisition and sale of assets
The Investment Corporation comprehensively taking into account the composition of the entire portfolio,
earnings power in the future, etc., the Investment Corporation acquired 8 properties in total (total acquisition
price:14,619 million yen), 6 residential properties (total acquisition price: 9,659 million yen) and 2
accommodation facilities (total acquisition price: 4,960 million yen), and sold 1 residential property (acquisition
price: 480 million yen / sold price:540 million yen).
＜Acquired assets＞

Property number

Property name

T-85
T-87
T-88
T-89
T-90
R-46
Residential
A-1

KDX Residence Hatagaya
KDX Residence Gakugeidaigaku
KDX Residence Kamata-minami
KDX Residence Kichjoji
KDX Residence Mitaka
KDX Residence Sendaieki-higashi
Subtotal
Hotel LiVEMAX Tokyo-Otsuka-Ekimae
Hotel LiVEMAX YokohamaekiNishiguchi
Subtotal
Total

A-2
Accommodation

Acquisition price（million yen）（Note）
2,500
750
1,918
621
2,530
1,340
9,659
2,390
2,570
4,960
14,619＜Sold assets＞

Property number
R-16

Property name
KDX Residence Izumi-Chuo

Sold price（million yen）
（Note）

540(Note) “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.

As a result of the above, as of the end of the 17th fiscal period, the Investment Corporation owned a total of 151
properties (total acquisition price: 248,905 million yen), which consist of 124 residential properties (acquisition
price: 188,067 million yen), 24 healthcare facilities (acquisition price: 54,128 million yen), 2 accommodation
facilities (acquisition price: 4,960 million yen) and 1 other property (land with leasehold interest; acquisition price:
1,750 million yen).

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

15

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 six properties, updating work in common
areas as well as value-increasing work and facility updates in individually-owned areas. Due to the spread of thenovel coronavirus infection, delivery dates for some of the interior equipment and facilities were postponed andthe work period was slightly extended, but all the works were generally carried out as planned.
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 17th fiscal period (July 31, 2020).
As a result of the above, the occupancy rate for residential facilities was 95.3% as of the end of the 17th fiscal
period (July 31, 2020). The average occupancy rate for residential facilities during the 17th fiscal period was 96.0%.
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 out of consideration for the spread of Covid-19 in this period and continued to monitor operations of
the managers by all possible means including online interviews about business conditions, future management
policies, etc.
Repair works were kept to a minimum to prevent the spread of Covid-19. Thanks in part to the self-help effortsof the operators, there have been no cases of infection at the facilities.
As a result of the above, the occupancy rate for healthcare facilities was 100% as of the end of the 16th fiscal
period (July 31, 2020). The occupancy rate for the entire portfolio including land with leasehold interest was 96.8%
as of the end of the 16th fiscal period (July 31, 2020).
With regard to the hotels acquired during the 17th fiscal period, the Investment Corporation will continue tooperate 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.
(Issuance of New Investment Units)
During the 17th fiscal period, the Investment Corporation procured 8,818 million yen of funds by issuing
43,800 new investment units through public offering on February 26, 2020 with the aim of allocation to funds
for acquisition of specified assets.
As a result, unitholders’ capital came to 108,550 million yen as of the end of the 17th fiscal period (July 31,2020).
(Borrowing)
The Investment Corporation newly borrowed 7,400 million yen as funds for acquisition of new properties aswell as 8,500 million yen as funds for repaying borrowings of which repayment was due during the 17th fiscal
period.
As a result of the foregoing, the average remaining term of interest-bearing debt (Note 1) was 4.2 years, and the16average interest rate at the end of the 16th fiscal period (Note 2) was 0.96%. The long-term debt ratio (Note 3) cameto 89.9%, the fixed interest-rate ratio (Note 4) was 96.5%, and the loan to value ratio (LTV) came to 49.5%.
(Note 1)
(Note 2)

(Note 3)(Note 4)

It is calculated by weighting and averaging the remaining term of each interest-bearing debt according to the balance ofeach interest-bearing debt and rounded off to decimal place.
The average interest rate of each interest-bearing debt was calculated taking into account the upfront fee (per annum) andinterest rate swaps, etc., and the weighted average was calculated in accordance with the balance of each interest-bearingdebt.
Long-term debt ratio = (balance of long-term borrowings (excluding long-term borrowings to be repaid within one year)+ balance of investment corporation bonds) ÷ (balance of borrowings + balance of investment corporation bonds)
The long-term debt ratio that includes long-term borrowings to be repaid within one year is 97.4%.
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 17th fiscal period (July 31, 2020).
Credit Rating Agency
Japan Credit Rating Agency, Ltd.(JCR)

Type
Long-term issuer rating
Bond rating

RatingA+ (Outlook : Stable)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.

17

(ⅳ) Overview of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues was 8,374
million yen, operating income was 4,469 million yen, ordinary income was 3,808 million yen and net income was
3,808 million yen for the 17th 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 3,866,863,770
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 price13th Fiscal period（Note）

July 31, 2018
172,800
148,400

14th Fiscal period
January 31, 201915th Fiscal period
July 31, 2019

16th Fiscal period
January 31, 2020

17th Fiscal period
July 31, 2020

181,000

198,600

225,500

217,400

160,500

172,000

191,400

106,900(Note) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective date asof March 1, 2018.Figures for the 13th fiscal period take into account the investment unit split.

18

（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 3,866,863
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 17th fiscal period amounted to 4,065 yen.
17th
13th
15th
16th
14th
From Feb.1, 2018 From Aug.1, 2018 From Feb.1, 2019 From Aug.1, 2019 From Feb.1, 2020
to Jul.31, 2020
to Jul.31, 2019
to Jan.31, 2020
to Jul.31, 2018 to Jan.31, 2019

Fiscal period

Unappropriated retained
earnings
Retained earnings(Thousand yen)

5,428,676

3,875,050

4,125,881

4,072,277

212,398(Thousand yen)

2,276,608

384,622458,879

404,367

365,534

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

Profit distribution(Thousand yen)

(Profit distribution per unit)(Yen)

Unitcapital refunds(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(Unitcapital refunds fromdeduction of unitcapital
under tax rules per unit)(Thousand yen)
(Yen)

(Thousand yen)

(Yen)

(Thousand yen)

(Yen)

3,152,068

3,510,428

3,687,001

3,687,909

3,866,863（4,026）（4,039）（4,063）（4,064）（4,065）

3,152,068

3,510,428

3,687,001

3,687,909

3,866,863（4,026）（4,039）（4,063）（4,064）（4,065）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

（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.

19

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

20

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

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

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

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

（6）Important Subsequent Events

21

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

Propertynum
ber

August 3,
2020
September
24, 2020
September
24, 2020
March 13,2020

Property Name

Location

Previous Owner（Note 3）

T-91 KDX Residence Nakanobu (Note 1)
T-92 KDX Residence Ichikawa
T-93 KDX Residence Hatchobori
T-94 KDX Residence Nakaitabashi

Shinagawa-ku, Toky
Ichikawashi, Chiba
Chuo-ku,Tokyo
Itabashiku, Tokyo(Note 2)
(Note 3)(Note 4)（Note 4）

Non-Disclosure (Note 2)

830

901

Non-Disclosure (Note 2)

840

908

Non-Disclosure (Note 2)

3,000

3,530

Non-Disclosure (Note 2)

1,736

1,840

6,406

7,179

Total
(Note 1)

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

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）（Note 3）（Note 2）

November 2,
2020
November 2,
2020
November 2,
2020

T-95
T-9
R-12

KDX Residence
Shonandai
Cosmo Heim
Motosumiyoshi (Note 1)
Granda Mondoyakujin(Note 1)

Total
(Note 1)
(Note 2)
(Note 3)

Fujisawa-shi,
Kanagawa
Kawasaki-shi,
Kanagawa
Nishinomiyashi
Hyogo

Seiwa Building
Co., Ltd.
MotosumiyoshiCo., Ltd.
GK KRF17

1,500

1,610

337

348

63

63.7

1,900

2,021.7

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) Borrowings
With respect to the above (ⅰ) Acquisition of assets, the Investment Corporation borrowed a total of 6.37 billion
yen (Series 44, Series 46 and Series 47) on August 3, September 24 and September 30, 2020 in order to allocate
part of the proceeds to funds for the acquisition of T-91, T-92, T-93 and T-94 and associated costs thereof.

22

2．Overview of the Investment Corporation（1）Unitholders’ Capital
13th
As of July 31,
2018

Fiscal period
Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)14th
As of January 31,
2019

15th
As of July 31,
201910,000,000

10,000,000

10,000,000

10,000,000

10,000,000

782,928

869,133

907,458

907,458

951,258

80,132

93,226

99,731

99,731

108,550

12,847

12,484

11,684

10,39011,005

Number ofinvestment units
held

Ratio（％）

16th
17th
As of January 31,
As of July 31, 2020
2020（2）Matters concerning Investment Units
Major unitholders as of July 31, 2020 are as follows.

Name

Address（Note1）(Units)Custody Bank of Japan, Ltd. (Trust Acct.)(Note 2)

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

268,001

28.17

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

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

191,705

20.15

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

2-2, Otemachi 2-chome, Chiyoda-ku,
Tokyo56,1605.90

Custody Bank of Japan, Ltd. (Note 2)(Securities Investment Trust Acct.)

8-12, Harumi 1-chome, Chuo-ku,
Tokyo29,3353.08

2-chome,Kenedix, Inc.

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

23,1402.43

Mitsubishi UFJ Trust and Banking Corporation

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

18,813

1.97

Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd.

5-2, Marunouchi 2-chome, Chiyoda-ku,
Tokyo

14,563

1.53

STATE STREET BANK WEST CLIENTTREATY 505234

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

13,301

1.39

The Gunma Bank, Ltd.

194, Motosojamachi,Gunma

11,782

1.23

The Hokkoku Bank, Ltd.

12-6, Hirooka, Kanazawa-shi, Ishikawa

11,3261.19

638,126

67.08

Maebashi-shi,

Total(Note1) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places(Note2) Japan Trustee Services Bank, Ltd. and Trust and Custody Services Bank, Ltd. merged with JTC Holdings, Inc., the parent companyof the both company, effective July 27, 2020, with Japan Trustee Services Bank, Ltd. as the surviving entity of the absorption merger,
and the surviving company changed its name to Japan Custody Bank, Ltd. as of the same date.

（3）Matters Concerning Directors and Auditor(ⅰ) The Executive Directors, Supervisory Directors and the Independent Auditor during the 17th fiscal
period are as follows.

Position

Name

Other concurrent title

Total amount offees
paid during theperiod(thousand yen)23

Keisuke Sato

Executive
Director

Katsue Okuda

Osamu Chiba

Supervisory
Director（Note 1）

Satoshi Ogawa

Soichiro Iwao

Independent
auditor（Note 2）

(Note 1)
(Note 2)

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
Outside corporate auditor of OKWAVE, Inc.(current)
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

15,000Supervisory Director may be an officer of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation.
The fee of Independent auditor includes remuneration for Comfort Letter creation work related to issuance of new investment
units.

(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.

General administrator (Administration)

Mizuho Trust & Banking Co., Ltd.

General administrator(Regarding investment corporation bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

24

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

Use

16th
As of January 31, 2020
Total amountComposition ratio
held(%)(mil.yen)(Note 5)Areaof assets（Note 4）

Residential

Tokyo Metropolitan
Area (Note 1)
Other Regional Area

Healthcare（Note 4）

123,18848.0

131,77348.3

55,221

21.5

55,851

20.5

22,6508.8

22,5298.3(Note 2)30,137

11.7

29,872

10.9

Other (Note 3)

1,311

0.5

1,293

0.5

-

-

5,111

1.9

232,509

90.6

246,431

90.3

1,798

0.7

1,798

0.7

1,798
22,358

0.7
8.7

1,798
24,7300.7
9.1

256,665

100.0

272,960

100.0(Note 2)Trust
beneficiaryinterest inreal estate

17th
As of July 31, 2020
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 estate
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.

（2）Major Assets Owned
The overview of major assets owned by the Investment Corporation (Top 10 properties in net book value as of July
31, 2020) are as follows.
No.

Name of property

T-78

KDX Residence Toyosu
KDX Residence Shukugawa
Hills

7,678

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

7,287

17,575.39

16,634.67

92.5

2.5

Residential

Tsukui Sun-shine Machida

7,111

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

6,332

39,649.84

39,649.84

100.0

NonDisclosure

Healthcare(Note 5)T-56

KDX Residence Hanzomon

4,939

4,854.23

4,786.75

98.4

1.6

Residential

T-1

KDX Daikanyama Residence

4,758

5,338.99

5,283.81

97.0

2.0

Residential

R-39

KDX Residence Ohori Harbor
View Tower

4,470

11,855.63

9,932.07

78.7

2.2

Residential

100.0

NonDisclosure

Healthcare

H-3

Joy Stage Hachioji

3,765

13,812.27

13,812.27(Note 5)T-52

KDX Residence Togoshi

3,720

4,591.76

4,421.46

100.0

1.5

Residential

H-16

Anesis Teradacho

3,496

7,856.64

7,856.64

100.0

NonDisclosure

Healthcare(Note 5)

Total

53,561

127,899.46

124,742.22

-

19.8

（Note 1）“Leasable area” is the floor area of each portfolio asset for which the building is leasable (if a portfolio asset has more than one
building, the total floor area of leasable buildings) that is set forth in a lease agreement as of July 31, 2020.

25

（Note 2）“Leased area” is the floor space set forth in a lease agreement that has been executed with an end tenant and leased as of July 31,
2020.
（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.

26

（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 17th fiscal period
Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

T-1

KDX Daikanyama Residence

7-1, Sarugakucho,Shibuya-ku,Tokyo

TBI

4,758

6,580

KDX Odemma Residence
3-10, Nihombashi-Odenmacho,Chuo-ku,Tokyo
KDX Iwamoto-cho
T-4
16-12, Iwamotocho 2-chome, Chiyoda-ku,Tokyo
Residence
KDX Bunkyo Sengoku
T-5
3-2, Honkomagome 6-chome, Bunkyo-ku,Tokyo
Residence
T-6 KDX Azumabashi Residence 9-8, Azumabashi 1-chome, Sumida-ku,TokyoKDX Shimura Sakaue
T-7
16-5, Higashi-Sakashia 1-chome, Itabashi-ku,Tokyo
Residence
KDX Musashi Nakahara
18-22, Shimokodanaka 4-chome, Nakahara-ku,
T-10
Residence
Kawasaki-shi, Kanagawa
T-11 KDX Chiba Chuo Residence 2-17, Shindencho, Chuo-ku, Chiba-shi, China
KDX Kawaguchi Saiwai-cho
T-12
14-24, Saiwaicho 2-chome, Kawaguchi-shi, Saitama
Residence
T-13 KDX Residence Shirokane I
7-8, Shirokanedai 4-chome, Minato-ku, Tokyo

TBI

1,689

2,290

TBI

777

1,060

TBI

1,437

1,920

T-15 KDX Residence Shirokane II
KDX Residence MinamiT-16
aoyamaKDX Residence MinamiT-17
azabu
T-18 KDX Residence Shiba Koen
T-19 KDX Residence Azabu East

T-3

Residential Facilities

Tokyo Metropolitan Area

TBI

606

948

TBI

2,626

3,600

TBI

633

759

TBI

1,289

1,830

TBI

1,179

1,500

TBI

3,073

3,700

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

TBI

2,842

3,690

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

TBI

2,265

2,580

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

TBI

2,126

2,790

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

TBI

1,799

2,450

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

TBI

1,579

2,120

T-20 KDX Residence Takanawa

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

TBI

790

1,090

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

1,492

1,940

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

TBI

760

1,030

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

TBI

633

870

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,186

4,090

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1,150

1,460

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

TBI

3,218

4,230

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,289

2,990

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

TBI

994

1,430

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

705

972

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

TBI

1,273

1,520

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

TBI

901

1,170

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

TBI

748

985

T-33 KDX Residence Yoga

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

TBI

690

915

T-34 KDX Residence Shimouma

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

TBI

595

787

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

1,236

1,460

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

TBI

1,060

1,370

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

TBI

1,064

1,300

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

TBI

729

977

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

TBI

786

1,040

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

TBI

865

1,100

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

TBI

806

1,040

13-16, Yamatocho, Itabashi-ku, Tokyo

TBI

591

790

27

Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

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

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

TBI

546

666

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

TBI

389

538

TBI

765

1,010

TBI

1,003

1,170

TBI

1,684

2,120

TBI

1,328

1,700

TBI

1,037

1,350

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

556

681

TBI

1,315

1,620

28

Use

Area

No.

Name of property

Location

Form ofownership

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

3,720

4,830

TBI

2,554

3,340

TBI

1,812

2,490

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,609

3,350

T-56 KDX Residence Hanzomon

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

TBI

4,939

5,800

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

861

1,050

120-1, Yaraicho, Shinjuku-ku, Tokyo

TBI

1,373

2,020

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

TBI

2,342

2,550

T-60 KDX Residence Seijo

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

TBI

1,413

1,710

T-61 KDX Residence Akihabara

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

TBI

1,237

1,620

T-62 KDX Residence Iriya

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

TBI

1,051

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

2,957

3,720

TBI

1,152

1,540

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

TBI

1,096

1,350

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

TBI

1,182

1,830

T-67 KDX Residence Kanda

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

TBI

714

1,160

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

2,916

4,470

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

TBI

1,160

1,310

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

TBI

1,236

1,750

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

TBI

801

1,150

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

TBI

560

871

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

TBI

696

986

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

TBI

652

838

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

TBI

768

1,020

TBI

898

1,200

T-77 KDX Residence Ryogoku

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

TBI

846

1,200

T-78 KDX Residence Toyosu

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

TBI

7,678

7,790

T-79 KDX Residence Asagaya

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

TBI

1,963

2,230

TBI

2,690

2,740

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

TBI

1,399

1,420

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

TBI

1,135

1,260

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

TBI

705

749

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

TBI

1,020

1,050

T-85 KDX Residence Hatagaya

2-24-7 Hatagaya Shibuya-ku, Tokyo

TBI

2,641

2,730

T-86

KDX Residence Asagaya II

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

TBI

976

983

T-87

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

TBI

771

828

T-88

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

TBI

1,981

2,100

T-89

KDX Residence Kichijoji

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

TBI

659

650

T-90

KDX Residence Mitaka

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

TBI

2,704

2,810

R-2

KDX Jozenjidori Residence

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

TBI

916

1,340

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

Residential Facilities

Tokyo Metropolitan Area

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

KDX Residence NishiT-84
Funabashi

O
t
h
e
r
R
e
g
i

29

Use

Area

No.

Name of property

Location

Form ofownership

Book
value
(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)R-3

KDX Izumi Residence

R-4

KDX Chihaya Residence

R-7

KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

KDX Residence Odori Koen

R-5

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

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

TBI

1,035

1,420

TBI

977

1,430

TBI

2,676

3,570

TBI

1,323

1,970

TBI

1,532

2,030

TBI

766

998

TBI

774

1,050

TBI

457

560

TBI

493

721

TBI

2,218

2,530

TBI

852

1,040

TBI

787

1,040

TBI

768

939

TBI

412

513

30

Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(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

1,345

1,700

TBI

1,259

1,600

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

TBI

1,278

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

668

877

(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
Hills
KDX Residence SendaiekiR-46
higashi
R-45

TBI

507

681

TBI

1,063

1,230

TBI

1,463

1,940

TBI

543

716

TBI

636

895

TBI

718

895

TBI

731

933

TBI

3,430

4,590

TBI

960

1,160

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

TBI

3,119

3,700

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

TBI

1,961

2,450

TBI

4,470

5,220

TBI

898

1,700

TBI

1,257

1,670

TBI

633

748

TBI

1,739

1,730

TBI

2,462

2,600

7-1, Hinoikecho, Nishinomiya-shi, Hyogo

TBI

7,287

7,320

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

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-2

Healthcare Facilities

Tokyo Metropolitan Area

H-3

Irise Kamata/Yuseien
Nichii Home NakanoMinamidai
Joy Stage Hachioji

1,418

1,410

187,624

233,528

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

TBI

1,071

1,120

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

TBI

1,765

1,780

924-2 Yokokawamachi, Hachioji-shi, Tokyo

TBI

3,765

3,760

TBI

1,076

1,120

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

Yuimaru Hijirigaoka(Note 2)

H-5

Nichii Home Tama Plaza

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

2,801

2,940

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

3,221

3,190

TBI

7,111

7,070

TBI

1,716

1,700

TBI

2,604

2,670

TBI

816

859

TBI

1,572

1,740

H-9

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

TBI

933

993

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

TBI

6,332

6,590

Sawayaka Sakura Nibankan

H-10 Activa Biwa(Note 2)31

Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(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

TBI

2,054

2,110

H-12 Granda Mondo Yakujin

10-10 Hayashidacho, Nishinomiya-shi, Hyogo

TBI

1,142

1,190

H-13 Excellent Nishinomiya

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

TBI

927

976

H-15 Excellent Kitano

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

TBI

755

782

H-16 Anesis Teradacho

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

TBI

3,496

3,640

H-17 Rococo-riha

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

TBI

2,063

2,170

H-18 Orage Suma

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

TBI

2,780

2,830

32

Appraisal value
Book

Area

Use

No.

Name of property

Location

Form ofownershipvalue(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

1,830

1,870

H-20 Anesis Hyogo

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

TBI

1,399

1,440

TBI

1,161

1,390

TBI

1,293

1,380

53,69555,310H-24 Arute Ishiyagawa

H-14 Gran Hills Ogawarako

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

Subtotal

Tokyo
Metropolitan Area

Accommodation
Facilities

Tokyo
Metropolitan
Area

Other

A-1

Hotel LiVEMAX TokyoOtsuka-Ekimae

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

TBI

2,460

2,380

A-2

Hotel LiVEMAX
Yokohamaeki-Nishiguchi

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

TBI

2,651

2,610

5,111

4,990

1,798

1,860

248,229295,688

T-9

Cosmo Heim
Motosumiyoshi

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

RP(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.

33

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as follows.
16th(From August 1, 2019 to January 31, 2020)

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

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

97.0

161

2.0

1

99.0

164

2.0

T-3

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

1

98.2

58

0.7

1

98.2

59

0.7

1

100.0

28

0.4

1

98.0

28

0.3

1

97.5

51

0.6

1

97.8

51

0.6

1

97.7

25

0.3

1

100.0

25

0.3

1

97.8

106

1.3

1

98.9

107

1.3

1

97.2

25

0.3

1

100.0

26

0.3

1

96.9

63

0.8

1

99.3

65

0.8

1

98.3

47

0.6

1

96.5

48

0.6

1

100.0

113

1.4

1

98.6

113

1.4

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

1

97.0

90

1.1

1

97.8

95

1.2

1

89.1

61

0.8

1

93.5

64

0.8

1

95.1

75

0.9

1

98.5

75

0.9

1

97.4

65

0.8

1

90.3

65

0.8

T-19

KDX Residence Azabu East

1

100.0

58

0.7

1

92.0

56

0.7

T-20

KDX Residence Takanawa

1

100.0

29

0.4

1

87.4

28

0.3

T-21

1

100.0

52

0.7

1

97.9

50

0.6

1

93.6

28

0.4

1

100.0

27

0.3

1

100.0

23

0.3

1

100.0

21

0.3

1

100.0

97

1.2

1

100.0

97

1.2

1

98.7

41

0.5

1

95.2

41

0.5

1

100.0

112

1.4

1

97.5

113

1.4

1

97.8

80

1.0

1

97.8

82

1.0

1

100.0

35

0.4

1

96.3

37

0.5

1

100.0

25

0.3

1

100.0

25

0.3

1

97.0

43

0.5

1

97.3

43

0.5

1

97.8

28

0.4

1

95.6

29

0.4

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

97.7

27

0.3

1

100.0

26

0.3

T-33

KDX Residence Yoga

1

97.5

24

0.3

1

100.0

26

0.3

T-34

KDX Residence Shimouma

1

100.0

22

0.3

1

100.0

20

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

97.3

39

0.5

1

98.7

39

0.5

1

97.2

38

0.5

1

100.0

39

0.5

KDX Residence Tamagawa
KDX Residence
Monzennakacho
KDX Residence
Okachimachi
KDX Residence Motoasakusa
KDX Residence Itabashi
HonchoKDX Residence Azusawa

1

100.0

28

0.4

1

96.5

28

0.3

1

98.1

28

0.4

1

98.1

28

0.3

1

96.4

29

0.4

1

98.2

30

0.4

1

97.4

29

0.4

1

94.9

31

0.4

1

100.0

23

0.3

1

96.1

24

0.3

1

100.0

20

0.3

1

100.0

20

0.2

(Note 3)

T-4
T-5
T-6
T-7
T-10
T-11
T-12
T-13
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
T-43

(Note 3)34

16th
(From August 1, 2019 to January 31, 2020)

Area
Use

No.

Name of property

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

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)

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

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

KDX Residence Kinshicho
KDX Residence Nihombashi
T-49
Hamacho
KDX Residence Nihombashi
T-50
Ningyocho
T-51 KDX Residence Jiyugaoka
T-48(Note 3)

1

93.9

17

0.2

1

97.8

17

0.2

1

98.6

34

0.4

1

92.5

34

0.4

1

97.8

35

0.4

1

100.0

36

0.4

1

100.0

64

0.8

1

86.8

60

0.7

1

96.8

44

0.6

1

100.0

45

0.6

1

100.0

31

0.4

1

100.0

34

0.4

1

100.0

19

0.2

1

100.0

19

0.2

1

93.4

37

0.5

1

96.3

41

0.5

35

16th
(From August 1, 2019 to January 31, 2020)

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

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

100.0

122

1.5

1

96.3

122

1.5

1

99.1

89

1.1

1

93.3

88

1.1

T-54

KDX Residence Togoshi
KDX Residence Shinagawa
SeasideKDX Residence Ojima

1

99.1

64

0.8

1

93.2

66

0.8

T-55

KDX Residence Oyama

1

97.6

92

1.2

1

97.9

96

1.2

T-56

KDX Residence Hanzomon

1

98.4

132

1.7

1

98.6

132

1.6

T-57

1

100.0

23

0.3

1

100.0

27

0.3

1

98.6

52

0.7

1

93.7

52

0.6

T-59

B-Site Akihabara
KDX Residence Kagurazaka
Dori
KDX Residence Sendagi

1

96.1

65

0.8

1

98.2

67

0.8

T-60

KDX Residence Seijo

1

100.0

42

0.5

1

96.8

43

0.5

T-61

KDX Residence Akihabara

1

100.0

41

0.5

1

96.9

39

0.5

T-62

KDX Residence Iriya

1

100.0

39

0.5

1

95.9

39

0.5

T-63

KDX Residence Tachikawa

1

92.5

98

1.2

1

93.0

99

1.2

T-64

1

100.0

56

0.7

1

100.0

54

0.7

1

96.8

39

0.5

1

100.0

39

0.5

T-66

KDX Residence Tsurumi
KDX Residence Morishita
ChitoseKDX Residence Akasaka

1

100.0

40

0.5

1

85.9

38

0.5

T-67

KDX Residence Kanda

1

94.9

28

0.4

1

100.0

29

0.4

T-68

1

95.7

96

1.2

1

91.4

97

1.2

1

96.1

32

0.4

1

96.9

31

0.4

1

96.9

39

0.5

1

91.7

40

0.5

1

100.0

28

0.4

1

100.0

28

0.3

1

100.0

22

0.3

1

95.2

22

0.3

1

100.0

25

0.3

1

100.0

25

0.3

1

100.0

23

0.3

1

100.0

24

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

100.0

29

0.4

1

93.8

30

0.4

T-77

KDX Residence Ryogoku

1

100.0

29

0.4

1

93.6

30

0.4

T-78

KDX Residence Toyosu

1

100.0

180

2.2

1

100.0

181

2.2

T-79

KDX Residence Asagaya

1

97.7

48

0.6

1

98.2

53

0.6

T-80

1

96.6

77

1.0

1

97.9

80

1.0

1

97.4

36

0.5

1

92.3

37

0.5

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

97.5

19

0.2

1

100.0

20

0.2

1

100.0

20

0.3

1

100.0

28

0.3

－

－

－

－

1

98.3

54

0.7

1

90.5

11

0.1

1

97.0

24

0.3

－

－

－

－

1

91.4

15

0.2

－

－

－

－

1

98.2

35

0.4

(Note 3)

T-53

T-58

T-65

Residential Facilities

Tokyo Metropolitan Area

T-69
T-70
T-71
T-72
T-73
T-74

T-81

T-84
T-85

KDX Residence NishiFunabashi
KDX Residence Hatagaya(Note 3)

T-89

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

－

－

－

－

1

50.6

5

0.1

T-90

KDX Residence Mitaka

－

－

－

－

1

23.8

3

0.0

R-2

KDX Jozenji Dori Residence

1

98.2

49

0.6

1

94.9

49

0.6

R-3

KDX Izumi Residence

1

100.0

44

0.5

1

95.2

44

0.5

R-4

KDX Chihaya Residence
KDX Sakaisuji Hommachi
Residence

1

92.9

48

0.6

1

94.5

47

0.6

1

97.4

117

1.5

1

98.0

110

1.3

T-86
T-87
T-88

Other
Regional
Area

R-5

36

16th
(From August 1, 2019 to January 31, 2020)

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

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

R-7

KDX Takarazuka Residence

1

94.3

56

0.7

1

98.6

58

0.7

R-8

KDX Shimizu Residence

1

98.7

74

0.9

1

97.6

74

0.9

R-9

1

93.6

33

0.4

1

97.4

33

0.4

1

96.0

39

0.5

1

80.7

36

0.4

1

90.7

22

0.3

1

90.7

22

0.3

1

98.0

25

0.3

1

93.7

26

0.3

1

93.7

22

0.3

－

－

3

0.0

1

96.3

95

1.2

1

89.3

92

1.1

1

97.0

38

0.5

1

92.5

39

0.5

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

1

94.0

40

0.5

1

96.7

40

0.5

R-19

KDX Residence Nishi-oji

1

100.0

32

0.4

1

98.0

34

0.4

(Note 3)

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

(Note 3)37

16th
(From August 1, 2019 to January 31, 2020)

Area
Use

No.

Name of property

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

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

100.0

18

0.2

1

94.2

18

0.2

R-21

1

98.5

58

0.7

1

95.5

56

0.7

1

96.6

56

0.7

1

97.8

55

0.7

1

98.4

55

0.7

1

100.0

54

0.7

1

97.0

28

0.4

1

95.5

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

100.0

23

0.3

R-27

KDX Residence Sannomiya

1

98.9

39

0.5

1

96.1

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
Melody Heim
Gotenyama(Note4)
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

91.9

59

0.7

1

85.9

58

0.7

1

93.7

27

0.3

1

98.5

27

0.3

1

95.2

30

0.4

1

90.5

30

0.4

1

86.8

27

0.3

1

91.8

31

0.4

1

91.7

27

0.3

1

91.3

28

0.3

R-22
R-24
R-25

R-29
R-30
R-32

Other Regional Area

Residential Facilities

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

KDX Residence Hiyoshi
KDX Residence Shukugawa
Hills
KDX Residence Sendaiekihigashi
Subtotal

－

－

20

0.3

－

－

－

－

1

100.0

121

1.5

1

100.0

121

1.5

1

100.0

32

0.4

1

100.0

33

0.4

1

97.0

108

1.3

1

97.6

106

1.3

1

100.0

103

1.3

1

96.0

104

1.3

1

78.7

177

2.2

1

83.8

180

2.2

1

96.2

56

0.7

1

95.0

55

0.7

1

100.0

43

0.5

1

99.0

43

0.5

1

100.0

23

0.3

1

98.1

23

0.3

1

90.5

56

0.7

1

94.1

59

0.7

1

95.1

74

0.9

1

94.9

74

0.9

1

92.5

203

2.5

1

94.6

207

2.5

－

－

－

－

1

98.9

34

0.4

119

96.5

6,289

78.3

124

95.3

6,475

78.1

1

100.0

1

100.0

1

100.0

1

100.0

H-3

Irise Kamata/Yuseien
NichiiHome
NakanoMinamidai
Joy Stage Hachioji

1

100.0

1

100.0

H-4

Yuimaru Hijirigaoka

1

100.0

1

100.0

H-5

Nichii Home Tama Plaza

1

100.0

1

100.0

H-21

Plaisant Grand Ota tamagawa

1

100.0

1

100.0

H-22

Tsukui Sun-shine Machida

1

100.0

1

100.0

H-23

Serabi Ebisu

1

100.0

1

100.0

H-6

Ten

1

100.0

1

100.0

H-7

Irise Nishioka

1

100.0

1

100.0

H-8

Izarie Eniwa Building

1

100.0

1

100.0

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

H-10

1

100.0

1

100.0

1

100.0

1

100.0

H-12

Activa Biwa
Sompo Care LAVIERE Kobe
TarumiGranda Mondo Yakujin

1

100.0

1

100.0

H-13

Excellent Nishinomiya

1

100.0

1

100.0

R-46

H-1

Other Regional Area

Healthcare Facilities

Tokyo Metropolitan Area

H-2

H-11

NonNondisclosure disclosure（Note5）（Note5）

NonNondisclosure disclosure（Note5）（Note5）38

16th(From August 1, 2019 to January 31, 2020)

Area
Use

No.

Name of property

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

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-15

Excellent Kitano

1

100.0

1

100.0

H-16

Anesis Teradacho

1

100.0

1

100.0

H-17

Rococo-riha

1

100.0

1

100.0

H-18

Orage Suma

1

100.0

1

100.0

H-19

Canadian Hill

1

100.0

1

100.0

39

16th
(From August 1, 2019 to January 31, 2020)

Area

Use

No.

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

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

Subtotal

1

100.0

24

100.0

1,694

NonNondisclosure disclosure（Note5）（Note5）

1

100.0

21.1

24

100.0

（Note5）

1,693

20.4

Tokyo
Metropolitan Area
Accommodation
Facilities

A-1

Hotel LiVEMAXOtsuka-EkimaeTokyo-

－

－

－

－

1

100.0

A-2

Hotel
LiVEMAX
Yokohamaeki-Nishiguchi

－

－

－

－

1

100.0

－

－

－

－

2

100.0

－

100.0

43

0.5

-

100.0

43

0.5

143

97.6

8,027

100.0

150

96.8

8,289

100.0

Subtotal

Tokyo
Metropolitan
Area
Other

T-9

Cosmo Heim Motosumiyoshi(land with leasehold interest)
Total

NonNondisclosure disclosure（Note5）（Note5）(Note1) Regarding residential, in the “number of tenants” column, if a master lease agreement has been executed with a master lease company,
1 is entered as the number of tenants. As of July 31, 2020, master lease agreements had been executed for all investment assets of theInvestment Corporation except for Cosmo Heim Motosumiyoshi and Raffine Minami-magome; the “total” for the “number of tenants”
is the sum of the master lease agreements for the properties (running number); and for the properties with no master lease agreement,
the number of end tenants is entered. 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 July 2020.
(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-34) Melody Heim Gotenyama was sold on January 1, 2020 and (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 17th 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)

Over 1 year
103,450(Note 1)

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

94,500-432

Total
103,450
94,500－-432(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.

40

(6) Asset ownership per country or region
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 18 the fiscal period ending January 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.

Name of property

R-10

KDX Residence Kikusui Yojo

T-28

KDX Residence Nishi-shinjuku

H-05

Nichii Home Tama Plaza

T-38

KDX Residence Tamagawa

R-11

KDX Residence Toyohira Koen

Location

Purpose

Major renewal
construction
Major renewal
Shinjuku-ku,
construction
Tokyo
Bath renewal
Kawasaki-shi,construction
Kanagawa
Mechanicalparking facilities
Ota-ku, Tokyo
replacement
construction
Water heater
Sapporo-shi,
replacement
Hokkaido
construction
Sapporo-shi,
Hokkaido

Scheduled

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

From August 2020 To
January 2021

80

－

－

From August 2020 To
January 2021

32

－

－

From August 2020 To
January 2021

23

－

－

From August 2020 To
January 2021

8

－

－

From August 2020 To
January 2021

5

－

－

（2）Capital expenditures during the 17th fiscal period
The table below shows major capital expenditures for renovations, repairs and other projects in the 17th fiscal period
ended July 2020. The construction cost for the period amounted to 804 million yen, consisting of 515 million yen of
capital expenditures and 288 million yen of repair and maintenance expenses.
No.

Name of property

Location

T-12

KDX Kawaguchi
Residence

Saiwai-cho Kawaguchi-

T-18

KDX Residence Shiba Koen

T-36

KDX Residence Yukigaya Otsuka

T-20

KDX Residence Takanawa

Minato-ku,
Tokyo

T-39

KDX Residence Monzennakacho

Koto-ku,Tokyoshi, Saitama
Minato-ku,
Tokyo
Ota-ku,
Tokyo

Term

Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction

From February2020 To July 202083

From February2020 To July 2020

47

From February2020 To July 2020

44

From February2020 To July 202030

From February2020 To July 2020

25

Other
Total

(3)

Capital expenditures(Million yen)

Purpose282
515

Reserved funds for long-term maintenance plan

In accordance with its long-term repair and maintenance plan for each property, the Investment Corporation setsaside, from the cash flow during the 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

13th
15th
14th
16th
17th
From Feb. 1, 2018 From Aug. 1, 2018 From Feb. 1, 2019 From Aug. 1, 2019 From Feb. 1, 2020
to Jul. 31, 2020
to Jan. 31, 2019
to Jan. 31, 2020
to Jul. 31, 2018
to Jul. 31, 2019
1,384
732
831
898
921

41

beginning of the period
Amount of reserve
during the period
Reversal of reserves
during the period
Amount carriedforward to the next
period

302

101

71

36

41

954

2

4

12

9

732

831

898

921

953

42

5. Expenditures and liabilities(1) Details of asset management expenses(in thousands of yen)
17th
From February 1, 2020
to July 31, 2020

16th
From August 1, 2019
to January 31, 2020

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

604,986
13,90846,472
8,100
225,746899,213576,676
13,836
46,625
8,100
249,665894,903（Note）There are other asset management fees in addition to the amount set forth above, and asset management fees pertaining to property
acquisitions (16th fiscal period: 19,147 thousand yen and 17th fiscal period: 146,193 thousand yen) and sold fee pertaining to property
sold (16th fiscal period: 2,400 thousand yen and 17th fiscal period: 2,700 thousand yen).

(2)

Status of Interest-bearing debt

Borrowings as of July 31, 2020 are as follows.
Classification

Drawdown
Date

LenderBalance at theBalance

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

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Short-term loans payable

Sumitomo Mitsui Banking Corporation

February 28, 2019

1,000

-

0.419

February 28, 2020

Sumitomo Mitsui Banking Corporation

July 31, 2019

1,000

-

0.374

July 31, 2020

Sumitomo Mitsui Banking Corporation

July 31, 2019

500

-

0.324

July 31, 2020

Sumitomo Mitsui Banking Corporation

January 31, 2020

800

800

0.416

January 31, 2021

Sumitomo Mitsui Banking Corporation

February 28, 2020

-

1,000

0.416

February 28, 2021

Sumitomo Mitsui Banking Corporation

March 2, 2020

-

500

0.417

February 28, 2021

Sumitomo Mitsui Banking Corporation

July 31, 2020

-

500

0.347

July 31, 2021

3,300

2,800

Shinsei Bank, Ltd.

1,750

-

Sumitomo Mitsui Banking Corporation

1,750

-

MUFG Bank, Ltd.

1,000

-

500

-

0.729

July 29, 2020

Resona Bank, Ltd.

500-

Mizuho Trust & Banking Co., Ltd.

500-

Subtotal

July 29, 2015

Mizuho Bank, Ltd.

Current portion of long-term borrowings

MUFG Bank, Ltd. (Note 5)

January 31, 2014

1,000

1,000

1.109

January 31, 2021

Sumitomo Mitsui Banking Corporation

November 28, 2014

2,000

2,000

0.804

November 30, 2020

Aozora Bank, Ltd .(Note 5)

August 31, 2015

300

300

0.678

August 31, 2020

MUFG Bank, Ltd. (Note 5)

October 27, 2015

300

300

0.624

October 27, 2020

MUFG Bank, Ltd. (Note 5)

February28, 2019

500

500

0.441

August 31, 2020

Sumitomo Mitsui Banking Corporation (Note5)

January 31, 2014

1,000

1,000

1.221

July 31, 2021

Aozora Bank, Ltd. (Note5)

March 28, 2014

1,350

1,350

1.183

March 31, 2021

Sumitomo Mitsui Banking Corporation (Note5)

1,000

1,000

Shinsei Bank, Ltd. (Note5)

1,000

1,000

MUFG Bank, Ltd. (Note5)

500

500

Mizuho Bank, Ltd. (Note5)

500

500

900

900

500

500

16,85010,850July 30, 2018

MUFG Bank, Ltd. (Note5)

January 31, 2020

Mizuho Bank, Ltd. (Note5)
Subtotal

Debt
Financing
MethodUse

Remarks

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

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

0.409
July 31, 2021

0.441

43

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

1,100

1,100

MUFG Bank, Ltd.

1,100

1,100

Mizuho Bank, Ltd.

600

600
0.916

August 7, 2021

Aozora Bank, Ltd.

350

350

Resona Bank, Ltd.

300

300

Mizuho Trust & Banking Co., Ltd.

300

300

1,000

1,000

0.996

August 7, 2021

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

Development Bank of Japan Inc.(Note 3)

August 7, 2014

August 7, 2014

Long-term borrowings

Development Bank of Japan Inc. (Note 3)

August 7, 2014

500

500

1.320

August 7, 2023

Sumitomo Mitsui Banking Corporation

August 29, 2014

600

600

0.945

August 31, 2021

MUFG Bank, Ltd.

August 29, 2014

600

600

0.945

August 31, 2021

Aozora Bank, Ltd.

August 29, 2014

500

500

0.945

August 31, 2021

Mizuho Bank, Ltd.

November 14, 2014

950

950

1.083

November 30, 2022

Sumitomo Mitsui Banking Corporation

February 5, 2015

1,200

1,200

0.875

January 31, 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

1.115

July 29, 2022

300

300

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

July 29, 2015

Mizuho Bank, Ltd.
Sompo Japan Insurance Inc. (Note 6)

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

44

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

45

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)Long-term borrowings

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

Sumitomo Mitsui Banking Corporation

September 17, 2019

1,000

1,000

0.572

August 31, 2026

MUFG Bank, Ltd.

October 29, 2019

500

500

0.325

April 30, 2023

Resona Bank, Ltd.

October 29, 2019

450

450

0.336

April 30, 2024

MUFG Bank, Ltd.

November 29, 2019

1,500

1,500

0.600

November 30, 2026

Shinsei Bank, Ltd.

January31, 2020

500

500

0.329

July 31, 2023

Mizuho Trust & Banking Co., Ltd.

January31, 2020

300

300

0.329

July 31, 2023

Sumitomo Mitsui Trust Bank, Limited.

January31, 2020

300

300

0.329

July 31, 2023

THE BANK OF FUKUOKA, LTD.

January31, 2020

200

200

0.329

July 31, 2023

Mizuho Bank, Ltd.

March 2, 2020

-

500

0.259

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

March 2, 2020

-

500

0.259

February 29, 2024

Sumitomo Mitsui Banking Corporation

March 2, 2020

-

500

0.464

February 28, 2027

Mizuho Bank, Ltd.

March 2, 2020

-

500

0.414

February 28, 2027

Resona Bank, Ltd.

March 2, 2020

-

500

0.414

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

March 2, 2020

-

500

0.414

February 28, 2027

THE BANK OF FUKUOKA, LTD.

March 2, 2020

-

400

0.414

February 28, 2027

MUFG Bank, Ltd. (Note 3)

March 2, 2020

-

400

0.450

February 28, 2027

Aozora Bank, Ltd.

March 2, 2020

-

200

0.531

February 29, 2028

MUFG Bank, Ltd. (Note 3)

March 13, 2020

-

600

0.300

February 29, 2024

Sumitomo Mitsui Trust Bank, Limited.

June 30, 2020

-

1,000

0.646

June 30, 2028

Shinsei Bank, Ltd.

June 30, 2020

-

800

0.646

June 30, 2028

Development Bank of Japan Inc. (Note 3)

June 30, 2020

-

500

0.616

June 30, 2028

Sumitomo Mitsui Banking Corporation

July 29, 2020

-

1,750

0.691

July 31, 2028

Shinsei Bank, Ltd.

July 29, 2020

-

1,750

0.641

July 31, 2028

MUFG Bank, Ltd.

July 29, 2020

-

1,000

0.641

July 31, 2028

Mizuho Bank, Ltd.

July 29, 2020

-

500

0.641

July 31, 2028

Resona Bank, Ltd.

July 29, 2020

-

500

0.641

July 31, 2028

Mizuho Trust & Banking Co., Ltd.

July 29, 2020

-

500

0.641

July 31, 2028

Sumitomo Mitsui Banking Corporation

July 31, 2020

-

1,000

0.686

July 31, 2028

Subtotal

100,500

114,400

Total

120,650

128,050

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4） Unguarantmaturityeed
date（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.
（Note 6）Sompo Japan Insurance Inc. has changed its corporate name from Sompo Japan Nipponkoa Inc. effective April 1, 2020.

（3）Investment corporation bonds
Outstanding Investment corporation bonds as of July 31, 2020 are as follows.

46

Series
First Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Third Series Unsecured
Investment Corporation
Bonds
Fourth Series Unsecured
Investment Corporation
Bonds
Fifth Series Unsecured
Investment Corporation
Bonds
Sixth Series Unsecured
Investment Corporation
Bonds（Social Bond）
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 applicable47

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) Sales date

Book value
Sales priceGain and loss
(Million yen) (in millions) (Million yen)
(Million yen)
（Note 1）
（Note 2）
（Note 2）

(Note 1)

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

T-85

KDX Residence Hatagaya

February 27
2020

T-87

KDX Residence Gakugeidaitaku

February 27
2020

750

－

－

－

－

R-46

KDX Residence
higashiFebruary 27
2020

1,340

－

－

－

－

R-15

KDX Residence Izumi chuo

28
－ February
2020

540

451

84

T-88

KDX Residence Kamata-minami

March 2
2020

1,918

－

－

－

－

A-1

Hotel LiVEMAX Tokyo-OtsukaEkimae

March 2
2020

2,390

－

－

－

－

A-2

Hotel LiVEMAX Yokohamaekinishiguchi

March 2
2020

2,570

－

－

－

－

T-89

KDX Residence Kichijoji

March 13
2020

621

－

－

－

－

T-90

KDX Residence Mitaka

June 30
2020

2,530

－

－

－

－

Sendaieki-

－

2,500

－

－

－

－

（Note 1）The acquisition price and Sale price are the amount identified in the purchase and sale agreement of each trust beneficiary interest(excluding expenses required for the acquisition and taxes, etc.), rounded down to the nearest whole million yen.
（Note 2）Book value and Gain and loss are rounded down to the nearest whole million yen.

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

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

Type

No.

Property nameAcquisition
Appraisal
Date ofprice or Salevalue
acquisition
price(Million yen)or sale(Million yen)
(Note 2)

Appraiser

As ofAppraisal
dateJapan Real Estate
Institute

January
31, 2020(Note 1)

Trust
Acquis Beneficiary
itionInterest
Trust
AcquisBeneficiary
itionInterest
Trust
Acquis Beneficiary
itionInterest
Sale

Trust
BeneficiaryInterest

Trust
Acquis Beneficiary
itionInterest
Trust
AcquisBeneficiary
itionInterest
Trust
Acquis Beneficiary
itionInterest
Trust
Acquis Beneficiary
itionInterest
Trust
Acquis Beneficiary
itionInterest

February 27
2020

2,500

2,710

27
T-87 KDX Residence Gakugeidaitaku February
2020

750

828

27
R-46 KDX Residence Sendaieki-higashi February
2020

1,340

1,410

T-85

KDX Residence Hatagaya

The Tanizawa Sōgō December
Appraisal Co., Ltd.
1, 2019

R-15

KDX Residence Izumi chuo

January 28,
2020

540

613

T-88

KDX Residence Kamata-minami

March 2
2020

1,918

2,090

Japan Real Estate
Institute
DAIWA REALESTATEAPPRAISAL CO.,LTD.
Japan Real Estate
Institute

A-1

Hotel LiVEMAXTokyo-Otsuka-Ekimae

March 2
2020

2,390

2,440

The Tanizawa Sōgō December
Appraisal Co., Ltd.
1, 2019

A-2

Hotel LiVEMAX Yokohamaekinishiguchi

March 22020
March 13

2,570

2,670

The Tanizawa Sōgō December
Appraisal Co., Ltd.
1, 2019

T-89

KDX Residence Kichijoji

621

650

The Tanizawa Sōgō
Appraisal Co., Ltd.

March 6,
2020

2,530

2,810

Japan Real Estate
InstituteJune 1,2020

T-90

KDX Residence Mitaka

2020
June 30
2020

January
31, 2020
January
31, 2020
February28, 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.

48

（Note 2）“Appraisal value” of specific assets above was calculated in accordance with the guideline of “Real Estate Appraisal Standards,
Chapter 3, Appraisal of Securitized Real Estate.”(ⅱ) Others
With regard to transactions and contracts entered by the Investment Corporation whose values shall be
investigated based on the Act on Investment Trusts and Investment Corporations, Crowe Toyo & Co. performs
an investigation of transactions. For the fiscal period from February 1, 2020 to July 31, 2020, the transactions
subject to such investigation were eighteen 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.

49

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

Category

Acquisition price（Note 2）
14,619 million yen

Total amountTransaction with related party
GK KHF4
Total

4,960 million yen
4,960 million yen

Sale price（Note 2）
540 million yen（33.9％）（33.9％）

－
－

（－％）
（－％）

(ⅱ) Amounts of Fees Paid
Category
Rent paid

Total paid fees（A）
26 million yen

Related-Party Transactions
Paid toPaid amount (B)GK KRF17
1 million yen

Ratio to total（B）/（A）
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.
(Note 3）The amount of payments including expenses for repair work of which orders were placed to related-party, etc. during the 16th fiscal
period other than the above paid fees is as follows.
Kenedix Engineering, Inc.
Construction costs recorded as capital expenditure: 28 million yen
Repair costs: 2 million yen（5）Transactions with asset management company related to Concurrent Operations Carried Out by the
Asset Management Company
There is no transaction with the Asset Management Company, KFM, regarding to the Type II Financial Instruments
Business, and Building Lots and Buildings Transaction Business. Furthermore, KFM does not concurrently engage
in any of Type I Financial Instruments Business, Real Estate Specified Joint Business.

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) Ownership50

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

(5)

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

Asset held at the endof fiscal period（Million yen）

Ratio to total number ofunits issued (%)

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

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
The following is an outline of the major agreements and changes approved by the Investment Corporation's Boardof Directors during the 17th fiscal period.
Date of approval

Items

Overview

February 19, 2020

Conclusion of new investment unit
underwriting agreement

Entrusted administrative work related to solicitation of investment units to
be issued to underwriters (SMBC Nikko Securities Co., Ltd., Mizuho
Securities Co., Ltd., Nomura Securities Co., Ltd.).

（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.

51

Financial Statements(17th Fiscal Period: From February 1, 2020 to July 31, 2020)

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

52

53

54

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of July 31, 2020
17th Fiscal Period
as of July 31, 2020

16th Fiscal Period
as of January 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¥13,212,337
10,171,729
31,793
14,67135,3399,032
23,474,905¥10,978,807
10,187,104
37,3738,640
589
21,212,515

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

1,798,041
100,799,661(11,698,397)
89,101,264
1,089,011(223,450)
865,561
1,448,282(353,874)
1,094,407
570,610(81,223)
489,387
139,731,924
233,080,586

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

1,227,187
4,787
1,231,974

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

89,097945,375338
1,034,810
235,347,371

45,18583,246
128,431¥272,960,403

49,30356,620105,924¥256,665,810

55

17th Fiscal Period
as of July 31, 2020

16th Fiscal Period
as of January 31, 2020

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥626,063¥595,433

Short-term loans payable (Notes 10 and 22)

2,800,000

3,300,000

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

10,850,000
353,107
38,676605

10,100,000
294,697
35,152605

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

10,81253,827

1,179,888
82,406

1,173,813
59,879

1,704

4,090

15,943,264

15,617,497

Investment corporation bonds (Notes 10 and 21)

7,000,000

7,000,000

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

114,400,000
3,132,139

107,250,000
3,059,671

4,485,740

4,689,541

67,70767,522Tenant lump sum deposits in trust
Asset retirement obligations (Note 14)473,947

481,213

129,559,535

122,547,949

145,502,799

138,165,447

108,550,294

99,731,514

13,187,100

13,187,100

Reserve for temporary difference adjustments (Note 4)

1,940,000

1,960,000

Total voluntary retained earnings

1,940,000

1,960,000

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

Unappropriated retained earnings

4,212,398

4,072,277

19,339,498
127,889,792

19,219,377
118,950,891

Deferred gains or losses on hedges (Notes 10 and 11)(432,188)(450,527)

Total valuation and translation adjustments(432,188)(450,527)

Total surplus
Total unitholders' equity
Valuation and translation adjustments

Total net assets (Note 3)

127,457,603

118,500,363

Total liabilities and net assets¥272,960,403¥256,665,810

See accompanying notes to the financial statements.

56

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from February 1, 2020 to July 31, 2020
17th Fiscal Period
from February 1, 2020
to July 31, 2020

16th Fiscal Period
from August 1, 2019
to January 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
Dividends and redemption-prescription
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 13)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥7,704,582
585,197
84,437
8,374,217¥7,472,039
555,566
39,013
8,066,618

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

2,911,303
576,676
13,836
46,625
8,100
249,665
3,806,207
4,260,411

41
1,240
1,282

41
1,394
1,435

498,083
21,322
115,280
4,118
23,245－662,051
3,808,635
3,808,635

498,295
15,857112,332
3,534
16,3241,500
647,8453,614,002
3,614,002

605
605
3,808,030
404,367¥4,212,398

605
605
3,613,397
458,879¥4,072,277

See accompanying notes to the financial statements.

57

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from February 1, 2020 to July 31, 2020

Unitholders'
capitalBalance as of July 31, 2019
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, 2020 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2020 (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)
¥1,980,000¥1,980,000¥4,125,881(20,000)¥99,731,514¥13,187,100(20,000)

Total
unitholders'equityTotal
surplus¥19,292,981¥119,024,495

20,000--(3,687,001)
3,613,397(3,687,001)
3,613,397(3,687,001)
3,613,397(73,604)¥118,950,891(20,000)¥1,960,000(20,000)¥1,960,000(53,604)¥4,072,277(73,604)¥19,219,377(20,000)(20,000)

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

8,818,779

8,818,779

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

Valuation and translation adjustments
Deferred gains orlosses on hedges

Balance as of July 31, 2019
Changes of items during the period
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 January 31, 2020 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2020 (Note 7)

Total valuationand translation
adjustments(in thousands of yen)¥(483,092)¥(483,092)

Total net assets¥118,541,403(3,687,001)
3,613,397

32,56432,56432,56432,564¥(450,527)

32,564¥(450,527)(41,039)¥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

See accompanying notes to the financial statements.

58

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from February 1, 2020 to July 31, 2020
17th Fiscal Period
from February 1, 2020
to July 31, 2020

16th Fiscal Period
from August 1, 2019
to January 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¥3,808,635
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
12,738¥3,614,002
1,429,641
3,534
16,324(41)514,152(1,368)4,175
82,398(9,042)32,35225,15969,352420,922
4,194

Subtotal

6,092,236

6,205,759

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

41(526,470)(604)

41(519,985)
135

Net cash provided by (used in) operating activities

5,565,201

5,685,950(15,697,335）(112)(134,722)
207,190(364,510)
160,709(2,922,615)
2,276
(72)
72
(160,351)
120,380(72,386)
268,174

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment in trust
Proceeds from investment securities
Payments for lease and guarantee deposits
Proceeds from lease and guarantee deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant lump sum deposits in trust
Proceeds from tenant lump sum deposits in trust
Net cash provided by (used in) investing activities(15,828,780)(2,764,521)

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

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

800,000
6,150,000(7,200,000)
1,982,489(3,687,673)

Net cash provided by (used in) financing activities

12,481,735(1,955,184)

Net increase (decrease) in cash and cash equivalents

2,218,156

966,243

Cash and cash equivalents at the beginning of period

21,165,911

20,199,667

Cash and cash equivalents at the end of period (Note 8)¥23,384,067¥21,165,911

See accompanying notes to the financial statements.

59

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from February 1,2020 to July 31,2020

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Residential Next Investment Corporation (“the Investment Corporation”) was established on November 15, 2011 under the Act on
Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On April 26, 2012, the Investment Corporation was listed on
the Real Estate Investment Trust Market of the Tokyo Stock Exchange (Securities Code: 3278). The Investment Corporation implemented a 2-for-1
split of its investment units held by unitholders set forth or recorded in the final unitholder registry on February 28, 2018 with March 1, 2018 as theeffective date. And also on March 1, 2018, the Investment Corporation conducted an absorption-type merger (“the Merger”) whereby theInvestment Corporation was the surviving corporation and Japan Senior Living Investment Corporation (“JSL”) was the dissolving corporation.
After "the Merger", the Investment Corporation raised funds through three public offerings and two third-party allotment. As of July 31, 2020, theend of the 17th 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 as an independent real estate management company. As the asset manager, the AssetManagement Company shall provide flexible and speedy real estate investment and management services based on the strategies of theInvestment Corporation: “Flexible pursuit for appropriate investment and profit opportunities with comprehension of the real estate market trends”
and “Speedy execution based on expeditious information collection and judgement.”
During the 17th fiscal period, the Investment Corporation acquired 6 residential properties (total acquisition price of ¥9,659 million) and 2
accomodation properties(total acquisition price of¥4,960 million) and sold 1 residential property (acquisition price of ¥480 million, disposition
price of ¥540 million). As the result, the Investment Corporation has a portfolio comprised of 151 properties (total acquisition price of ¥248,905
million) as of July 31, 2020, the end of the 17th fiscal period. The portfolio consists of 124 residential properties (total acquisition price of ¥188,067
million), 24 healthcare properties (total acquisition price of ¥54,128 million) , 2 accomodation properties (total acquisition price of¥4,960 million)and 1 other property (acquisition price of ¥1,750 million).
The occupancy rates of the overall portfolio including land with leasehold interest were 97.6% and 96.8% as of the end of the 16th and 17th
fiscal period, respectively. Furthermore, the average occupancy rates of the properties for residential and healthcare were 96.0% and 100.0% as ofthe end of 17th fiscal period.
During the 16th and 17th fiscal period, the Investment Corporation made borrowings of ¥5,000 million and ¥8,500 million for the repayment ofdebt matured. During the 16th fiscal period, the Investment Corporation made new borrowings of ¥1,950 million upon acquiring properties. During
the 17th fiscal period, the Investment Corporation made new borrowings of ¥7,400 million upon acquiring properties. As a result, the balance ofborrowings as of the end of the 16th and 17th fiscal period stood at ¥120,650 million and ¥128,050 million, respectively. The balance ofinterest-bearing debt including investment corporation bonds as of the end of the 16th and 17th periods, was ¥ 127,650 million and ¥ 135,050
million, respectively.
Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan (Japanese GAAP), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, theFinancial Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which wereprepared in accordance with Japanese GAAP and were presented in the Securities Report of the Investment Corporation filed with the Kanto Local
Finance Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial
statements issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes tofinancial statements include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
The Investment Corporation fiscal period is a six-month period which ends at the end of January or July. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

60

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:

Buildings

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

From August 1, 2019
to January 31, 2020
2-69 years

Structures

3-65 years

3-65 years

Machinery and equipment

8-40 years

8-40 years

Tools, furniture and fixtures

2-30 years

2-30 years(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 lifeof each lease.
(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 theproperty-related taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to¥1,263 thousand and ¥31,734 thousand as of January 31, 2020 and July 31, 2020, respectively.

61

(I)

Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets
and liabilities using the statutory tax rates.

(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 madebased on changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate
swaps and other derivatives that meet the requirements for special treatment.
(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 theaccompanying financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of theindividual 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 forrevenue 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 oneof the benefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which consideration should begiven, 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.

62

・ “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)(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 anddisclosure in 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 thisregard, there has been a request that the major sources of estimation uncertainty should be disclosed in the notes to financial statements underJapanese GAAP to provide useful information to users of financial statements. In response to this request, the ASBJ developed and issued“Accounting Standard 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.

63

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

4. RESERVE FOR TEMPORARY DIFFERENCE ADJUSTMENTS
As of 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
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.
As of January 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¥1,980,000¥ -¥20,000¥1,960,000

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

5. COMMITMENT LINE CONTRACTS
KDR has commitment line contracts with the banks with which it does business.
As of July 31, 2020

As of January 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

646. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY
Rental and other operating revenues and property-related expenses for the periods from February 1, 2020 to July 31, 2020 and from August 1,
2019 to January 31, 2020 consist of the following:
From February 1, 2020
From August 1, 2019
to July 31, 2020
to January 31, 2020
(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥7,315,802¥7,089,789

Rental revenues from limited proprietary rights of land

43,75043,749Common area charges

345,030

338,499

7,704,582

7,472,039

Parking space rental revenues

205,439

206,829

Miscellaneous

379,757

348,736

Subtotal
Others:Subtotal
Total rental and other operating revenues

585,197555,566¥8,289,780¥8,027,605¥433,235¥409,507

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

89,58895,299Taxes

498,996475,323

Repairs and maintenance

288,648281,724

Insurance

12,101

12,023

Trust fees

55,49955,272

Depreciation

1,467,105

1,428,865

Others160,424

153,286¥3,005,600¥2,911,303¥5,284,179¥5,116,301

Total property-related expenses
C. Net operating income from real estate rental business (A-B)
Gain on sales of real estate property:
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

From August 1, 2019 to January 31, 2020
(in thousands of yen)
Melody Heim Gotenyama
Revenue from sale of real estate property¥480,000Cost of real estate property

420,922

Other sales expenses
Gain on sales of real estate property

20,063¥39,01365

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

Total number of authorized investment units

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

From August 1, 2019
to January 31, 2020
10,000,000 units

951,258 units

907,458 units

Total number of investment units issued and outstanding

8. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of July 31, 2020 and January 31, 2020:
As of July 31, 2020

As of January 31, 2020

(in thousands of yen)
Cash and deposits¥13,212,337¥10,978,807

Cash and deposits in trust

10,171,729

10,187,104

Cash and cash equivalents¥23,384,067¥21,165,911

9. LEASES
The Investment Corporation, as lessee, has entered into Fixed-term lease contract whereby fixed monthly rents are due in advance . The future
minimum rental expenses under existing non-cancelable operating leases as of July 31, 2020 and January 31, 2020 are as follows:
As of July 31, 2020

As of January 31, 2020

(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

539,000

545,000

Total¥551,000¥557,000

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

As of January 31, 2020

(in thousands of yen)Due in 1 year

¥3,639,213¥3,238,403

Due after 1 year

20,383,265

19,714,966

Total¥24,022,478¥22,953,370

66

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 8 years and 2 months for borrowings and also have a redemption
date of a maximum of 9 years and 5 months for investment corporation bonds as of July 31, 2020, the end of the 17th fiscal period, are exposed toliquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are exposed tointerest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of the borrowings.
(3) Risk management for financial instruments
a. Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored
by deposits in non-interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. In utilizing
derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable ratings.
b.

Market risk

While borrowings with floating rates are exposed to interest rate volatility risk, such risk is monitored by adjusting the rate of the balance ofborrowings with floating rates against the total borrowings according to the financial environment, interest rate forecasts by continuous monitoring,etc. and by using derivatives, etc. 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, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

67

(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 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-

Subtotal¥-

23,384,067

23,384,067-(1)

Short-term loans payable

2,800,000

2,800,000-(2)

Current portion of long-term loans payable

10,850,000

10,863,234

13,234(3)

Investment corporation bonds

7,000,000

6,963,600(36,400)(4)

Long-term loans payable

114,400,000

114,986,963

586,963

135,050,000

135,613,797

563,797

Subtotal
Derivative transactions*¥(432,188)¥(432,188)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of January 31, 2020
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1)

Cash and deposits¥10,978,807¥10,978,807(2)

Cash and deposits in trust

10,187,104

10,187,104-

21,165,911

21,165,911-

Subtotal

¥

-

(1)

Short-term loans payable

3,300,000

3,300,000-(2)

Current portion of long-term loans payable

10,100,000

10,112,003

12,003(3)

Investment corporation bonds

7,000,000

7,024,300

24,300(4)

Long-term loans payable

107,250,000

107,913,233

663,233

127,650,000

128,349,537

699,537

Subtotal

Derivative transactions*¥(450,527)¥(450,527)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying amount approximates fair value.
Liabilities(1)Short-term loans payable
Since these items are settled in a short period of time with floating interest rates, their carrying amount approximates fair value.
(2)Current portion of long-term loans payable and (4) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates
are reflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment
Corporation has not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special
treatment for interest-rate swaps is based on the present value of the total of principal and interest, accounted for together with the applicableinterest-rate swaps, discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type.)68(3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
Derivative transactions
Please refer to Note 11 “DERIVATIVE TRANSACTIONS”.
Note 2: Redemption schedule for financial assets with maturities
As of July 31, 2020
Due in 1 year or
less
Cash and
Deposits
Cash anddeposits in trust
Total¥13,212,337¥

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

10,171,729¥-¥23,384,067

As of January 31, 2020
Due in 1 year or
less
Cash and
Deposits
Cash anddeposits in trust
Total

Due after 1 year
through 2 years¥¥10,978,807

¥

¥

¥

-

¥21,165,911

¥

¥

¥

¥

-

-

¥

-

¥

-

-

Due after 5 years

-

¥

¥

-

-

¥

-

Due after 4 years
through 5 years

Due after 5 years

¥

¥

-

-

-

-

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

10,187,104

¥

-

-

Due after 1 year
through 2 years-

Due after 4 years
through 5 years

-

-

¥

-

-

¥

-

Note 3: Redemption schedule for loans payable and investment corporation bonds
As of July 31, 2020
Due in 1 year or
lessShort-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal¥2,800,000

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

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

As of January 31, 2020
Due in 1 year or
less

Due after 1 year
through 2 years

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

Due after 4 years
through 5 years

Due after 5 years

¥

¥

¥

¥

Short-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal¥3,300,000

－

－

¥

－

－

－

－

1,000,000－

1,000,000－

5,000,000

10,100,000

14,400,000

18,250,000

14,400,000

12,000,000

48,200,000¥13,400,000¥15,400,000¥18,250,000¥15,400,000¥12,000,000¥53,200,000

6911. DERIVATIVE TRANSACTIONS
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
methodType of derivativetransactions

Hedged items

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

Interest rate swap
Based on the amounttransaction:
Long-term¥66,650,000¥63,650,000¥(432,188) provided by counterparty
Receive/floatingloans payablefinancial institutions
and pay/fixedSpecialInterest rate swap
treatment for transaction:
Long-term
36,800,000
30,850,000*
interest-rate Receive/floatingloans payableswaps
and pay/fixed
Total¥103,450,000¥94,500,000¥(432,188)*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair
Accounting
method, inprinciple

value is included in the fair value of the hedged long-term loans payable.
The contract amount and the fair value of interest-rate swap transactions as of January 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
methodType of derivativetransactions

Hedged items

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

Fair value(in thousands of yen)Calculation method for
applicable fair value

Interest rate swap
Based on the amounttransaction:
Long-term¥60,950,000¥53,450,000¥(450,527) provided by counterparty
Receive/floatingloans payablefinancial institutions
and pay/fixedSpecialInterest rate swap
treatment for transaction:
Long-term
36,800,000
33,200,000*
interest-rate Receive/floatingloans payableswaps
and pay/fixed
Total¥97,750,000¥86,650,000¥(450,527)*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair
Accounting
method, inprinciple

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

12. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other17th Fiscal Period (February 1, 2020 to July 31, 2020) and 16th Fiscal Period (August 1, 2019 to January 31, 2020): Not applicable
2．Affiliated companies and other17th Fiscal Period (February 1, 2020 to July 31, 2020) and 16th Fiscal Period (August 1, 2019 to January 31, 2020): Not applicable
3．Fellow subsidiary companies and other17th Fiscal Period (February 1, 2020 to July 31, 2020) and 16th Fiscal Period (August 1, 2019 to January 31, 2020): Not applicable
4．Directors, major individual unitholders and other17th Fiscal Period (February 1, 2020 to July 31, 2020) and 16th Fiscal Period (August 1, 2019 to January 31, 2020): Not applicable70

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 ¥3,866 million and ¥3,687 million for the periods ended July 31, 2020 and January 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 July 31, 2020 and January 31, 2020. The following table summarizes thesignificant differences between the statutory tax rate and the effective tax rate.
From February 1, 2020
to July 31, 2020
31.46%

From August 1, 2019
to January 31, 2020
31.51%

Deductible cash distributions(30.98)(30.94)

Others

(0.46)(0.55)

Effective tax rate

0.02%

0.02%

Statutory tax rate

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

As of January 31, 2020

(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥678,375¥697,994

Deferred gains or losses on hedges

142,170

141,875

Asset retirement obligations

21,30021,242

Amortization of leasehold right in trust

1,266

723

Other
Subtotal deferred tax assets-

20

843,112

861,856

Valuation allowance(843,112)(861,856)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

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

From August 1, 2019
to January 31, 2020

(in thousands of yen)
Balance at the beginning of period
Accretion adjustment
Balance at the end of period¥67,522¥67,338

184

184¥67,707¥67,52271

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

16th Fiscal Period
from August 1, 2019
to January 31, 2020

(in thousands of yen)Book value
Balance at the beginning of period¥234,307,773¥233,496,342

Changes during the period
Balance at the end of period

13,921,970
248,229,744

811,431234,307,773¥295,688,000¥279,986,000

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 17th fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 8 properties totaling ¥15,324,167 thousand, and the principal decrease was the salesof real estate trust beneficiary interests in 1 property totaling ¥451,169 thousand and depreciation of ¥1,466,920 thousand and during the
16th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in 2 properties totaling ¥2,006,136
thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1 property totaling ¥420,922 thousand anddepreciation of ¥1,428,681 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 16th
fiscal period of KDX Residence Izumi Chuo, which was sold on February 28, 2020, is based on the sales prices (¥540,000 thousand)under the trust beneficiary interest sales contracts entered into on January 29, 2020.
Income and loss in the fiscal periods ended July 31, 2020 and January 31, 2020 for real estate for rental purposes is listed in Note 6 ”
BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REALESTATE PROPERTY”.

16. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from February 1, 2020 to July 31, 2020 and from August 1, 2019 to January 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 segment
subject to disclosure.
(B) Related information(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income and retained earnings.
(2) Information about each geographic area(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income
and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property,
plant and equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement ofincome and retained earnings.

7217. PER UNIT INFORMATION
From February 1, 2020

From August 1, 2019

to July 31, 2020

to January 31, 2020

Net asset value per unit

¥133,988¥130,584

Net income per unit

¥4,028¥3,981

Weighted average number of units (units)951,258

907,458

The weighted average number of units outstanding of 951,258 and 907,458 were used for the computation of the amount of net income per unit
as of July 31, 2020 and January 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:
From February 1, 2020

From August 1, 2019

to July 31, 2020

to January 31, 2020

Net income (in thousands of yen)

¥3,808,030¥3,613,397--¥3,808,030¥3,613,397

945,242

907,458

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)

18. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable

19. SECURITIES PORTFOLIO
Securities portfolio consists of the following as of July 31, 2020:(1)

Stock Not applicable(2)

Securities other than shares Not applicable

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

Not applicable

20. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
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

-

-

7,762
¥1,237,249

3,752¥7,776776¥2,5014,010¥1,229,473¥¥

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.

73Property, plant and equipment consist of the following as of January 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¥1,798,041
1,798,041
99,911,220
1,073,137

Increaseduring theperiodDecreaseduring theperiod

¥¥1,067,512
15,874

Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥1,798,041¥¥
1,798,041
100,799,661
11,698,397
1,346,387
1,089,011
223,450
32,087

Balance atthe end of
period179,071-Netbalance at
end of theperiod¥1,798,041
1,798,041
89,101,264 Notes 1 and 2
865,561

1,436,362

11,920-1,448,282

353,874

32,697

1,094,407

523,059

47,786236

570,610

81,223

15,784

489,387

138,484,736
241,428,516
243,226,558

1,519,804
2,662,898
2,662,898

272,617451,924
451,924

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

12,356,945
12,356,945

1,426,956
1,426,956

1,229,487--

1,229,487

2,299

1,724

1,227,187-

7,762¥1,237,249

2,975¥5,275776¥2,501

4,787¥1,231,974

7,762¥1,237,249

¥

-

¥

Remarks

139,731,924 Notes 1 and 2
231,282,545
233,080,586

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 July 31, 2020 are as follows.
Balance at
Decrease
Balance at
Date of
Seriesthe beginningduring thethe end ofissue
of period
periodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
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

Repayment date

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured

August 30,

0.200%

2021
August 28,

0.540%

2026
August 30,

0.800%

2028
November 30,

0.410%

2023
November 30,

0.850%

2028
December 20,

0.750%

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

¥ -

74

Outstanding Investment corporation bonds as of January 31, 2020 are as follows.
Balance at
Decrease
Balance at
Date of
Seriesthebeginning
duringthethe end ofissue
of period
periodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
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
bonds(Social bond)2019(Note 1)
¥ Total¥5,000,000¥7,000,000

Interest
rate

Repayment date

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured

August 30,

0.200%

2021
August 28,

0.540%

2026
August 30,

0.800%

2028
November 30,

0.410%

2023
November 30,

0.850%

2028
December 20,

0.750%

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

¥ -

75

22. SHORT-TERM DEBT AND LONG-TERM DEBT
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)

Short-termloanspayableSumitomo 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
payableLong-term
loans
payableSumitomo 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, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited¥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-

1,750,000-

1,750,000-

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

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

0.729%

July 29, 2020

500,000-

500,000-

1,000,000--

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
1,000,000--

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

1.267%
1.267%
1.267%

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

1,100,000--

1,100,000

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

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

0.916%

August 7, 2021--

300,000--

1,000,000--

400,000--

400,000
300,000
200,000

300,000
1,000,000
400,000
400,000
300,000
200,000¥¥

0.996%(Note 5)

August 7, 2021

1.254%

August 7, 2023

76

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)

Long-term
loans
payableMizuho 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, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

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

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

1.105%
0.875%
0.987%
1.100%

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

1,000,000--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

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%

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

MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000--

1,000,000

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

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

2,000,000--

2,000,000

500,000--

500,000

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

August 31, 2025

MUFG Bank, Ltd.

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

1,000,000--

1,000,000

0.773%(Note 5)0.900%

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

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

1,500,000

0.501%

February 28, 2023

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

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

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

August 31, 2025
August 31, 2025

October 31, 2025
August 22, 2027

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

77

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)

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

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

0.900%(Note 5)January 30, 2027

0.799%

February 2, 2026

August 31, 2024

500,000--

500,000

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000
400,000--

400,000
400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

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

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

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

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

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

August 31, 2022

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

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

500,000
500,000
800,000--

500,000
500,000
800,000

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

1,000,000--

1,000,000

0.572%

August 31, 2026

500,000
450,000
1,500,000
500,000--

500,000
450,000
1,500,000
500,000

0.325%
0.336%
0.600%
0.329%

April 30, 2023
April 30, 2024
November 30, 2026
July 31, 2023

May 31, 2025

78

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

Payment due date
(Note 7)Use

Remarks(Note 6)

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

300,000--

300,000

0.329%

July 31, 2023

300,000--

300,000

0.329%

July 31, 2023

200,000--

200,000

0.329%

July 31, 2023-

500,000-

500,000

0.259%

February 29, 2024-

500,000-

500,000

0.259%

February 29, 2024-

500,000-

500,000

0.464%

February 28, 2027-

500,000-

500,000

0.414%

February 28, 2027-

500,000-

500,000

0.414%

February 28, 2027-

500,000-

500,000

0.414%

February 28, 2027-

400,000-

400,000

0.414%

February 28, 2027

MUFG Bank, Ltd.

-

400,000-

400,000

Aozora Bank, Ltd.

-

200,000-

200,000

MUFG Bank, Ltd.

-

600,000-

600,000-

1,000,000-

1,000,000

0.646%

June 30, 2028-

800,000-

800,000

0.646%

June 30, 2028
June 30, 2028

Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
The Bank of Fukuoka,
Ltd.
Long-term
loans
payableSumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited

0.450%(Note 5)0.531%
0.300%(Note 5)February 28, 2027
February 29, 2028
February 29, 2024-

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

MUFG Bank, Ltd.

-

1,000,000-

1,000,000

0.641%

July 31, 2028

Mizuho Bank, Ltd.

-

500,000-

500,000

0.641%

July 31, 2028

Resona Bank, Limited-

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

100,500,000¥120,650,000

13,900,000¥15,900,000¥8,500,000

114,400,000¥128,050,000

Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Sub total
Total

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

79

Short-term debt and long-term debt consist of the following as of January 31, 2020
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-¥1,000,000

0.422%

February 28, 2020

Decreaseduring theperiodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

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

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

0.419%

January 31, 2021

2,500,000
1,500,000

800,000-

1,500,000

3,300,000-

0.689%

November 30, 20191,500,000-

1,500,000-

1,400,000-

1,400,000-

900,000-

900,000-

500,000-

500,000-

400,000-

400,000-

0.447%

January 31, 2020

300,000-

300,000-

300,000-

300,000-

200,000-

200,000-

200,000-

200,000-

1,750,000--

1,750,000

1,750,000--

1,750,000

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

1,000,000
500,000
500,000

500,000--

500,000

1,000,000--

2,000,000-

300,000

0.729%

July 29, 2020

1,000,000

1.109%

January 31, 2021-

2,000,000

0.804%

November 30, 2020--

300,000

0.678%

August 31, 2020

300,000--

300,000

0.624%

October 27, 2020

0.447%

August 31, 2020

500,000--

500,000

17,300,000-

7,200,000

10,100,000

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

2,000,000--

2,000,000

1.267%

April 30, 2022

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

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

1.267%
1.267%
1.267%

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

1,100,000--

1,100,000

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

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

0.916%

August 7, 2021--

300,000--

1,000,000

0.996%(Note 5)

August 7, 2021--

400,000
1.254%

August 7, 2023--

400,000--

300,000
200,000

1.254%

August 7, 2023

300,000
1,000,000
400,000
400,000
300,000
200,00080

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)

Long-term
loans
payableMizuho 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.(Note 9)
Resona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

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

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

1.105%
0.875%
0.987%
1.100%

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

1,000,000--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

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%

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

MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000--

1,000,000

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

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

2,000,000--

2,000,000

500,000--

500,000

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

August 31, 2025

MUFG Bank, Ltd.

3,000,000--

3,000,000

0.906%

August 31, 2026

1,000,000--

1,000,000

1,000,000--

1,000,000

0.773%(Note 5)0.900%

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

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

1,500,000

0.501%

February 28, 2023

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

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

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

August 31, 2025
August 31, 2025

October 31, 2025
August 22, 2027

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

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)

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

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

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

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.409%

July 31, 2021

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

1,000,000
500,000
500,000

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

500,000--

500,000

0.409%
0.409%
0.409%
0.900%(Note 5)1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000
400,000--

400,000
400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

400,000-

1,600,000

August 31, 2024

January 30, 2027

0.799%

February 2, 2026

1,000,000

0.509%

August 31, 2022-

400,000

August 31, 2022--

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

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

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

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024

November 30, 2025
January 31, 2023
July 31, 2023
August 31, 2026

Mizuho Bank, Ltd.

2,000,000--

2,000,000

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

500,000
500,000
800,000--

500,000
500,000
800,000

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

1,000,000-

1,000,000

0.572%

August 31, 2022

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

May 31, 2025

82

Classification
LenderLong-term
loans
payableBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)

MUFG Bank, Ltd.

-(in thousands of yen)
500,000-

500,000

0.325%

April 30, 2023

Resona Bank, Limited-

450,000-

450,000

0.336%

April 30, 2024

MUFG Bank, Ltd.

-1,500,000-

1,500,000

0.600%

November 30, 2026

MUFG Bank, Ltd.

-

900,000-

900,000

0.444%

July 31, 2021

Mizuho Bank, Ltd.

-

500,000-

500,000

0.444%

July 31, 2021

Shinsei Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
The Bank of Fukuoka,Ltd.
Sub total-

500,000-

500,000

0.329%

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

101,100,000¥120,900,000

6,150,000¥6,950,000¥7,200,000

107,250,000¥120,650,000

Total

Use

Remarks(Note 6)

Unsecured/
Unguaranteed

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¥14,400,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥18,250,000¥14,400,000

Due after 4 years
through 5 years

Due after 5 years¥12,000,000¥48,200,000

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 except for the following Note 8 are lump-sum repayments on the due date.
Note 8: Partial prepayment of 2,000,000 thousand yen was made on December 30, 2019.
Note 9: Sompo Japan Nipponkoa Insurance Inc. changed its corporate name to Sompo Japan Insurance Inc. on April 1, 2020.

83

23. DISTRIBUTIONS
17th Fiscal Period(From February 1, 2020 to July 31, 2020)

I. Retained earnings at the end of period

16th Fiscal Period(From August 1, 2019 to January 31, 2020)¥4,212,398,326¥4,072,277,167¥20,000,000¥20,000,000

II. Reversal of voluntary retained earnings
Reversal of reserve for temporary
difference adjustments (Note 1)¥3,866,863,770

III. Total distributions
Distributions per unit
IV. Retained earnings brought forward to
the next period

Method of calculating distribution amount¥3,687,909,312¥4,065¥4,064¥365,534,556¥404,367,855

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 and ¥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.

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¥3,687,909,312, which is the amount of ¥3,613,397,493
in net income,¥54,511,819 from retained earnings
brought forward and reversal of reserve 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
16th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

Note 1: Reserve for temporary difference adjustments
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 and applied
to distribution in the 17th fiscal period distribution.
16th Fiscal Period (August 1, 2019 to January 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 16th fiscal period distribution.

84