22nd

Semi-Annual
Report2022.8.1-2023.1.31
Securities code：3278

To Our Unitholders
We would like to take this opportunity to express our sincere gratitude to our unitholders and stakeholders for their continued
support and cooperation to Kenedix Residential Next Investment Corporation (KDR). We are pleased to represent our 22nd
Fiscal Period Semiannual Report of KDR.
During the fiscal period under review (from August 1, 2022 to January 31, 2023), KDR completed its 9th follow-on offering in
December 2022, successfully raising approximately 4.8 billion yen of capital. With the proceeds and borrowings, we acquired 8
properties, including 2 properties of residential properties and 6 healthcare facilities. As a result, KDR owned 180 properties withtotal acquisition price of 300.9 billion yen as of the end of January 2023.
With these steady growth, KDR’s operating revenue was 9,936 million yen, operating income was 5,294 million yen, ordinary
income was 4,593 million yen and net income was 4,593 million yen, resulting in a distributions per unit of 4,257 yen.
In the management of owned properties, the occupancy rate of the portfolio at the end of the fiscal period was 97.9%, which
continued to maintain a high occupancy rate.
Our operating performance in the fiscal period remained strong, and maintained a high occupancy rate of 97.9% as of the end of
fiscal period.
With regard to residential properties, occupancy rates have remained stable, and rents have tended to rise, mainly for larger unit
types. On the other hand, long-term lease contracts with operators for healthcare facilities and accommodation facilities
contributed to maintain stable profit of the portfolio.
Furthermore, KDR acquired additional 2 healthcare facilities in March 2023. As a result, the asset size grew to 304.2 billion yen(total acquisition price) with 182 properties.
KDR will continue to flexibly pursue investment and profit opportunities that are considered optimal based on an accurate
understanding of changes in social and economic structures. We aim to maximize our unitholder value through flexible
investment and management based on accurate information and decision making.
We sincerely appreciate your continued support of KDR and look forward to reporting our further progress in the months andyears ahead.
Executive Director,
Kenedix Residential Next Investment Corporation
Chief Operating Officer (COO) and Director, andHead of Residential REIT Department,
Kenedix Real Estate Fund Management, Inc.

Portfolio Overview（As of the end of 22nd Fiscal Period）

Distributions per unit
22nd FP（Jan. 2023）￥4,25723rd FP（Jul. 2023）
Forecast￥4,14024th FP（Jan. 2024）
Forecast￥4,140-Tetsu Kawashima

Total Numberof Properties
Residential
Properties

180

141
Healthcare
Facilities
37
Accommodations
2

Total Acquisition
Price (￥Billion)
Residential
Properties
Healthcare
Facilities
Accommodations

Logo renewal ! The new logo expresses our progressive spirit dedicated torealizing the full potential of real estate and steadiness to continue trusting long-time
relationshipswith customers, andalso represents the Kenedix Group's sincereintention
to continue to provide new value and contribute to society through its real estate fundbusiness.

300.9

Occupancy
Rate (%)

97.9

222.5
73.3
4.9

Residential
Properties

96.9
100.0
100.0

Healthcare
Facilities
Accommodations

Financial Summary
Fiscal period

Unit

Operating revenues(Rental revenues)

19th
20th
21st
22nd
18th
From Aug. 1, 2020 From Feb. 1, 2021 From Aug. 1, 2021 From Feb. 1, 2022 From Aug. 1, 2022
to Jul. 31, 2021
to Jan. 31, 2022
to Jul. 31, 2022
to Jan. 31, 2023
to Jan. 31, 2021

Millions of yen
Millions of yen

8,382
8,382

9,195
8,758

9,143
8,962

9,447
9,441

9,936
9,632

Operating expenses
Millions of yen(Expenses related to rent business) Millions of yen

4,038
3,060

4,373
3,333

4,302
3,257

4,597
3,549

4,642
3,517

Operating income

Millions of yen

4,344

4,822

4,840

4,850

5,294

Ordinary income

Millions of yen

3,632

4,147

4,119

4,122

4,593

Net income

Millions of yen

3,631

4,146

4,119

4,122

4,593

Total asset

Millions of yen

283,172

293,176

302,410315,886

327,014%(+3.7)(+3.5)(+3.1)(+4.5)(+3.5)

Interest-bearing debt

Millions of yen

145,220

146,920

155,820

159,620

164,220

Unitholders’ equity

Millions of yen

127,132

135,218

135,790145,258

151,632(Period to period change)(Period to period change)%(-0.3)(+6.4)(+0.4)(+7.0)(+4.4)

Unitholders’ capitalMillions of yen

116,322

125,564

130,379

Total distributions

116,322
4,100

Millions of yen

108,550
3,867

4,084

4,288

4,556

Dividend payout ratio (Note 2)

%

106.5

98.9

99.1

104.0

99.2

Number of investment units issued
and outstanding

Unit

951,258

995,883

995,883

1,045,758

1,070,433

Net income per unit

(Note 3)

Yen

3,817

4,189

4,136

3,966

4,361

Unitholders’ equity per unit

Yen

133,646

135,777

136,352

138,902141,655

Distributions per unit

Yen

4,066

4,117

4,101

4,101

4,257

Profit distributions per unit

Yen

4,066

4,117

4,101

4,101

4,257

Distributions in excess of profit

Yen

－

－

－

－

－

Return on assets (Note 4)

%

1.3

1.4

1.4

1.3

1.4

Annualized (Note 5)

%

2.6

2.9

2.7

2.7

2.8

%

2.9

3.2

3.0

2.9

3.1

%

5.7

6.4

6.0

5.9

6.1

44.9

46.1

44.9

46.0

46.4

(-1.8)(+1.2)(-1.2)(+1.1)(+0.4)

%

51.3

50.1

51.5

50.5

50.2

Millions of yen

5,165

5,291

5,556

5,813

6,037

Yen

5,430

5,313

5,579

5,559

5,639

Millions of yen

6,825

6,971

7,295

7,557

7,835

%

5.2

5.3

5.2

5.2

5.2

Millions of yen

6,347

6,346

6,655

6,744

6,985

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

FFO (Funds from Operation)(Note 8)FFO per unit (Note 9)
Leasing NOI (Note10)(Net Operating Income)Annualized NOI yield (Note 5,11)
Leasing NCF (Note 12)(Net Cash Flow)
Annualized NCF yield (Note 5,13)
Number of properties
Leased units (residential)
Total leasable floor area

(Note 14)

%

%

4.9

4.8

4.8

4.7

4.6

Properties

157

161

165

173

180

Unit

8,755

9,027

9,250

9,651

9,724
586,763.81

m²

516,871.89

525,995.20

543,473.29

568,049.49

Occupancy ratio (Note 14)

%

96.2

97.4

97.3

97.5

97.9

Depreciation expenses

Millions of yen

1,504

1,546

1,589

1,665

1,721

Capital expenditures

Millions of yen

478

625

639

812

850

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

Figures are rounded down to the nearest unit. Ratios are rounded to the first decimal place.
Dividend payout ratio = Total distributions (excluding distributions in excess of profit) / Net income×100
Net income per unit is calculated by dividing the net income with weighted average unit based on days.
Return on assets = Net income /｛(Total assets at the beginning of period + Total assets at the end of period) /2｝×100
Annualized value for the 18th fiscal period is calculated based on a period of 184 days, 181 days for 19th fiscal period, 184 days for 20th
fiscal period, 181 days for 21st fiscal period, 184 days for 22nd fiscal period.
Return on net assets = Net income / {(Total net assets at the beginning of period + Total net assets at the end of period) /2} ×100
Interest-bearing debt ratio of assets = Interest-bearing debt at the end of period / Total assets at the end of period×100
FFO = Net income + Depreciation expenses + Amortization of deferred assets – Gain on sale of real estate property + Loss on sale of realestate property
FFO per unit = FFO / Number of investment units issued and outstanding (rounded down to unit)
Leasing NOI = Rental revenues - Expenses related to rent business + Depreciation expenses
Annualized NOI yield = Annualized NOI / Total acquisition prices of properties ×100
Leasing NCF = Leasing NOI - Capital expenditures
Annualized NCF yield = Annualized NCF / Total acquisition prices of properties ×100
Figure and ratio include for land with leasehold interest.

Financial Statements(22nd Fiscal Period: From August 1, 2022 to January 31, 2023)

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

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of January 31, 2023
22nd Fiscal Period
as of January 31, 2023

21st Fiscal Period
as of July 31, 2022

(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 8)
Cash and deposits in trust (Notes 8)
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 16 and 20)
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
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 16 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¥13,949,810
11,589,952
65,826
10,953
5,414
25,621,956¥14,043,415
11,460,934
57,05816,867
9,475
8,062
25,595,814

447,056(5,962)441,093
10,306(292)
10,013
10,342(430)
9,912
1,804,624
125,940,957(20,303,778)
105,637,178
1,568,935(429,359)
1,139,576
1,600,108(552,744)
1,047,363
1,405,598(249,410)
1,156,188
185,748,052
296,994,003

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

1,849,451
129
1,849,581

1,851,176
905
1,852,082

89,348
841,793
1,507,646
2,438,787
301,282,373

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

40,131
69,733
109,864¥327,014,194

44,10059,235
103,335¥315,886,678

22nd Fiscal Period
as of January 31, 2023

21st Fiscal Period
as of July 31, 2022

(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥674,463¥786,274

Short-term loans payable (Notes 22)

8,250,000

4,400,000

Current portion of investment corporation bonds (Notes 10 and 21)

1,000,000-

Current portion of long-term loans payable (Notes 10, 12 and 22)
Accounts payable-otherAccrued expenses
Income taxes payable

18,100,000
445,820
59,238605

14,050,000
386,351
59,408605

Accrued consumption taxes

78,103

16,126

Advances received
Deposits received

1,448,324
93,981

1,387,348
84,024

Other

1,008
30,151,545

21,170,239

Investment corporation bonds (Notes 10 and 21)

6,700,000

7,700,000

Long-term loans payable (Notes 10, 12 and 22)

130,170,000

133,470,000

Total current liabilities
Noncurrent liabilities

100

140,000-

Tenant leasehold and security deposits in trust

3,826,300

3,731,982

Tenant lump sum deposits in trust

4,325,202

4,414,784

68,63868,451

Tenant leasehold and security deposits

Asset retirement obligations (Note 15)-

73,051

145,230,141

149,458,269

175,381,687

170,628,508

130,379,080

125,564,617

13,187,100

13,187,100

Reserve for temporary difference adjustments (Note 4)

1,840,000

1,860,000

Total voluntary retained earnings

1,840,000

1,860,000

4,718,142

4,393,566

19,745,242
150,124,322

19,440,666
145,005,284

Deferred gains or losses on hedges (Notes 10 and 12)

1,508,184

252,885

Total valuation and translation adjustments

1,508,184

252,885

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

Unappropriated retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments

Total net assets (Note 3)

151,632,506

145,258,169

Total liabilities and net assets¥327,014,194¥315,886,678

See accompanying notes to the financial statements.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from August 1, 2022 to January 31, 2023
22nd Fiscal Period
21st Fiscal Period
from August 1, 2022 tofrom February 1, 2022
January 31, 2023
to July 31, 2022
(in thousands of yen)
Operating revenues
Rent revenue-real estate (Note 6)
Other lease business revenue (Note 6)
Gain on sales of real estate property (Note 6)
Dividends income
Total operating revenues
Operating expenses
Expenses related to rent business (Note 6)
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 14)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥9,064,123
567,986
304,729
9,936,839¥8,790,331
651,1656,207
9,447,705

3,517,747
769,195
16,38554,012
4,500
280,282
4,642,123
5,294,715

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

46
100
16
163

46
151
197

512,288
26,853
135,305
3,968
22,627701,045
4,593,834
4,593,834

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

605
605
4,593,229
124,913¥4,718,142

605
605
4,122,093
271,473¥4,393,566

See accompanying notes to the financial statements.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from August 1, 2022 to January 31, 2023

Unitholders'
capitalBalance as of January 31, 2022 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2022 (Note 7)
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 January 31, 2023 (Note 7)¥116,322,630

Capital surplus¥13,187,100

Unitholders' equity
Surplus
Voluntary retained
earnings
Unappropriat
Reserve for
Total
ed retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)
¥1,880,000¥1,880,000¥4,335,589¥19,402,689(20,000)

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

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

57,977¥4,393,566

37,977¥19,440,666

9,279,964¥145,005,284
4,814,462

4,814,462(20,000)

4,814,462¥130,379,080¥135,725,319
9,241,987

9,241,987¥13,187,100(20,000)¥1,840,000(20,000)(20,000)¥1,840,000

Valuation and translation adjustments
Deferred gains orlosses on hedges

Balance as of January 31, 2022 (Note 7)
Changes of items during the period
Issuance of new investment units
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of July 31, 2022 (Note 7)
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 January 31, 2023 (Note 7)

Totalunitholders'equityTotal
surplus

Total valuationand translation
adjustments(in thousands of yen)
¥65,386¥65,386

Total net assets¥135,790,706
9,241,987(4,084,116)
4,122,093

187,499

187,499

187,499

187,499¥252,885

187,499¥252,885

9,467,463¥145,258,169
4,814,462(4,288,653)
4,593,229

1,255,298

1,255,298

1,255,298

1,255,298¥1,508,184

1,255,298¥1,508,184

6,374,337¥151,632,506

See accompanying notes to the financial statements.

20,000--(4,288,653)
4,593,229(4,288,653)
4,593,229(4,288,653）
4,593,229

324,575¥4,718,142

304,575¥19,745,242

5,119,038¥150,124,322

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from August 1, 2022 to January 31, 2023
22nd Fiscal Period
21st Fiscal Period
from August 1, 2021
from February 1, 2022
to January 31, 2023
to July 31, 2022
(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Decrease in net property, plant and equipment held in trust due to sale
Other, net¥4,593,834
1,721,959
3,968
22,627(46)
539,142(8,767)
9,475
5,914
101,379
59,423
61,97760,976
98,251
831,329
10,659¥4,122,698
1,666,611
3,968
20,728(46)549,917
179,050(9,475)(6,556)(66,422)(22,584)(15,817)
123,398
76,891
15,539Subtotal

8,112,105

6,637,902

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

46(539,291)
1,211

46(551,245)(2,422)

Net cash provided by (used in) operating activities

7,574,072

6,084,281(2,099,311)(10,676,912)
140,000(146,848)
241,166(232,050)
142,468(13,866,514)(739,596)
107,000(120)
153(146,972)
414,185(299,494)
42,822(12,631,488)(14,488,536)

3,850,000
7,000,000(6,250,000)
4,781,336(4,288,507)

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

5,092,828

8,926,001

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

35,412

521,746

Cash and cash equivalents at the beginning of period

25,504,350

24,982,604

Cash and cash equivalents at the end of period (Note 8)¥25,539,762¥25,504,350

See accompanying notes to the financial statements.

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from August 1, 2022 to January 31, 2023

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”), and was listed on the Real Estate Investment Trust Market of
the Tokyo Stock Exchange (Securities Code: 3278) on April 26, 2012. Furthermore, 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. Following the Merger, the Investment Corporation implemented a 2-for-1 investment unit split with an effective dateas of March 1, 2018.
After "the Merger", the Investment Corporation raised funds through six public offerings and five third-party allotments. As of January 31, 2023
(the end of the 22nd fiscal period), the number of investment units issued and outstanding totaled 1,070,433 units.
The Investment Corporation is externally managed by Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”), a
subsidiary of Kenedix, Inc. As the asset manager, the Asset Management Company shall provide flexible and speedy real estate investment andmanagement services based on the strategies of the Investment Corporation: “Flexible pursuit for appropriate investment and profit opportunities
with comprehension of the real estate market trends” and “Speedy execution based on expeditious information collection and judgement.”
During the 22nd fiscal period, the Investment Corporation acquired 2 residential properties (total acquisition price of ¥4,137 million) and 6
healthcare facilities (total acquisition price of ¥6,945 million) and sold 1 residential property (acquisition price of ¥900 million, disposition price of¥1,180 million). As a result, the Investment Corporation has a portfolio comprised of 180 properties (total acquisition price of ¥300,912 million) as ofthe end of the 22nd fiscal period ended January 31, 2023, which consists of 141 residential properties (total acquisition price of ¥222,570 million),
37 healthcare facilities (total acquisition price of ¥73,382 million) and 2 accommodation facilities (total acquisition price of ¥4,960 million).
The occupancy rate of the overall portfolio was 97.5% and 97.9% as of the end of the 21st and 22nd fiscal period, respectively.
During the 21st and 22nd fiscal period, the Investment Corporation borrowed ¥17,500 million and ¥6,250 million as funds for repaying borrowings
due during the fiscal period, and borrowed ¥3,800 million and ¥4,600 million as funds for acquiring properties, respectively. As a result, the balanceof borrowings as of the end of the 21st and 22nd fiscal period was ¥151,920 million and ¥156,520 million, respectively. The balance of interestbearing debt including investment corporation bonds as of the end of the 21st and 22nd periods, was ¥159,620 million and ¥164,220 million,
respectively.
Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan (Japanese GAAP), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, the Financial
Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application and disclosure
requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which were preparedin accordance with Japanese GAAP and were presented in the Securities Report of the Investment Corporation filed with the Kanto Local Finance
Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements
issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes to financial statements
include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
The Investment Corporation fiscal period is a six-month period which ends at the end of January or July. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

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 August 1, 2022
to January 31, 2023
2-69 years

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

Structures

3-65 years

3-65 years

Machinery and equipment

3-40 years

3-40 years

Tools, furniture and fixtures

2-30 years

2-30 years(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, common area charges and other operating revenues, which include utility
charge reimbursement, parking space rental revenues and other miscellaneous revenues. Rental revenues are generally recognized on an
accrual basis over the life of each lease. Utility charge reimbursements are recognized when earned and their amounts can be reasonably
estimated. Reimbursements from tenants including utility charge reimbursements are recorded on a gross basis and such amounts arerecorded both as revenues and expenses during the fiscal period.
(H) Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar
year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period.
Under Japanese tax regulations, the seller of the property is liable for these taxes on the property from the date of disposal to the end of thecalendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued property-related
tax liabilities.
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period
following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of the propertyrelated taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to ¥35,972
thousand and ¥5,436 thousand as of July 31, 2022 and January 31, 2023, respectively.
(I)

Accounting for revenues
The main content of the performance obligation regarding the revenue from contracts with the customers of the Investment Corporation andthe normal point of time when satisfying the said performance obligation (normal point of time when recognizing revenue) are as follows.
1. Sale of real estate property
For the revenue from sale of real estate, etc., revenue is recorded when the buyer who is a customer gains control of the real estate by
performing the obligation of handover stipulated in the contract for real estate sales.
2. Utility charge reimbursements

For utility charge reimbursement, revenue is recorded in accordance with the supply of electricity, tap water, etc. to the lessee who is a customer
based on the lease agreement of real estate, etc. and the content of agreement incidental to it.
Of the utility charge reimbursement, for those that are determined to fall under the category of an agent by the Investment Corporation, the net
amount obtained by deducting the amount paid to other related parties supplying electricity, gas, etc. from the amount received as the fee ofelectricity, gas, etc. is recognized as revenue.
(J) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets andliabilities using the statutory tax rates.
(K) Non-deductible consumption taxes
Non-deductible consumption taxes applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(L) Derivative Financial Instruments
The Investment Corporation enters into derivative transactions to hedge risks prescribed in its Articles of Incorporation based on its risk
management policies. The Investment Corporation hedges interest rate volatility risk of its interest payments on its borrowings by utilizing
interest rate swap as hedging instruments.
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the time of judgment of its
effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments are compared and a judgment is made basedon changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate swaps andother derivatives that meet the requirements for special treatment.
(M) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily
convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.
(N) Presentation of Amounts
Amounts of less than one thousand yen are truncated in the Japanese financial statements prepared in accordance with Japanese GAAP and
filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios are rounded off in the accompanying
financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of the individual amounts.

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

4. RESERVE FOR TEMPORARY DIFFERENCE ADJUSTMENTS
As of January 31, 2023
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Reversal
Balance at
Reason for reserve andInitial amountthe beginningduring theduring thethe end ofreversalof the period
periodperiodthe period(in thousands of yen)
Gain on negative
Appropriation for cash
¥2,000,000¥1,860,000¥ ¥20,000¥1,840,000
goodwill*
distributions* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.
As of July 31, 2022
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
periodReversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversal

(in thousands of yen)
Gain on negative
Appropriation for cash
¥2,000,000¥1,880,000¥ ¥20,000¥1,860,000
goodwill*
distributionsth* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13 fiscal period as reserve for temporary difference
adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.

5. COMMITMENT LINE CONTRACTS
KDR has commitment line contracts with the following financial institutions
As of January 31, 2023

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

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

Balance of loans payable outstanding
Remaining amount

6. BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATEDEXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY
Rental and other operating revenues and property-related expenses for the periods from August 1, 2022 to January 31, 2023, and from February 1,
2022 to July 31, 2022 consist of the following:
From August 1, 2022
From February 1, 2022
to January 31, 2023
to July 31, 2022
(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥8,667,473

Common area charges¥8,402,006

396,649

388,325¥9,064,123¥8,790,331

Parking space rental revenues

218,133

216,894

Miscellaneous

349,853434,271

Subtotal

567,986

651,165¥9,632,109¥9,441,497

Property management fees and facility management fees

¥ 485,006¥ 502,201

Utilities

142,779

117,105

Taxes

572,380

573,379

Repairs and maintenance332,342

398,804

Insurance

15,87515,003

Trust fees

62,19866,844

Depreciation

1,721,183

1,665,834

Others

185,981210,278¥3,517,747¥3,549,451¥6,114,362¥5,892,045

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

Total property-related expenses
C. Net operating income from real estate rental business (A-B)
Gain on sales of real estate property:
From August 1, 2022 to January 31, 2023

(in thousands of yen)
KDX Residence Higashi-sakura II
Revenue from sale of real estate property
Cost of real estate property¥1,180,000
831,329

Other sales expenses
Gain on sales of real estate property

43,940¥304,729

From February 1, 2022 to July 31, 2022: Not applicable

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 August 1, 2022
to January 31, 2023
10,000,000 units

From February 1, 2022
to July 31, 2022
10,000,000 units

1,070,433 units

1,045,758 units

Total number of investment units issued and outstanding

8. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of January 31, 2023 and July 31, 2022:
As of January 31, 2023

As of July 31, 2022

(in thousands of yen)
Cash and deposits¥13,949,810¥14,043,415

Cash and deposits in trust

11,589,952

11,460,934

Cash and cash equivalents¥25,539,762¥25,504,350

9. LEASES
The Investment Corporation, as lessee, has entered into Fixed-term lease contract whereby fixed monthly rents are due in advance. The future
minimum rental expenses under existing non-cancelable operating leases as of January 31, 2023 and July 31, 2022 are as follows:
As of January 31, 2023

As of July 31, 2022

(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

509,000

515,000

Total¥521,000¥527,000

The Investment Corporation, as lessor, has entered into leases whereby fixed monthly rents are due in advance with a lease term of generally
two years for residential properties. The future minimum rental revenues under existing non-cancelable operating leases as of January 31, 2023 andJuly 31, 2022 are as follows:
As of January 31, 2023

As of July 31, 2022

(in thousands of yen)Due in 1 year

¥4,581,500¥4,152,082

Due after 1 year

22,618,705

18,725,548

Total¥27,200,205¥22,877,631

10. FINANCIAL INSTRUMENTS(A). Overview(1) Policy for financial instruments
The Investment Corporation procures funds for asset acquisitions, repairs, payment of distributions, repayment of loans, etc. through loans fromfinancial institutions, issuance of investment corporation bonds, issuance of investment units and other means. With regard to the procurement ofinterest-bearing debts, the Investment Corporation ensures that it can effectively combine stable long-term funds with flexible short-term funds.
Management of surplus funds is undertaken through various bank deposits focusing on safety, liquidity and effectiveness. The Investment
Corporation uses derivatives for the purpose of hedging its exposure to changes in interest rates and other risks and does not enter into derivativetransactions for speculative or trading purposes.
(2) Types of financial instruments and related risk
Bank deposits are for managing the Investment Corporation’s surplus funds and are exposed to credit risk such as the bankruptcy of financial

institutions at which funds are deposited. Investment securities represent equity investments in an anonymous association and are exposed tocredit risk of the issuer, risk of fluctuation of value of its property and interest rate fluctuation risk.
Borrowings and investment corporation bonds are made primarily for the purpose of procuring funds for the acquisition of real estate and trust
beneficiary interests in real estate and have a repayment date of a maximum of 8 years and 10 months for borrowings and also have a redemption
date of a maximum of 8 years and 4 months for investment corporation bonds as of January 31, 2023, the end of the 22nd fiscal period, areexposed to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are
exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of theborrowings.
(3) Risk management for financial instruments
a. Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored
by deposits in non-interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. Investment
securities represent equity investments in an anonymous association and are exposed to credit risk of the issuer and interest rate fluctuation risk.
To manage this credit risk, the Investment Corporation regularly evaluates the results of operations and the financial condition of the issuer, etc. In
utilizing derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable
ratings.
b.

Market risk

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

Liquidity risk

Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by
diversifying financial institutions. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fairvalue.
(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table. Disclosure of cash anddeposits , cash and deposits in trust and Short-term loans payable are omitted because the book value of these assets is deemed a reasonableapproximation of the fair value as they are cash or with short maturities.
As of January 31, 2023
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1) Current portion of investment corporation bonds¥1,000,000¥999,900¥ (100)(2) Current portion of long-term loans payable

18,100,000

18,106,039

6,039(3) Investment corporation bonds

6,700,000

6,530,860(169,140)

130,170,000

129,736,042(433,957)

155,970,000

155,372,842(597,157)(4) Long-term loans payable
Subtotal
Derivative transactions*¥1,508,184¥1,508,184¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

As of July 31, 2022
Carrying amount

Estimated fair value

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

-

-

-

(2) Current portion of long-term loans payable(3) Investment corporation bonds(4) Long-term loans payable
Subtotal¥14,050,000¥14,044,551¥ (5,448)

7,700,000

7,667,450(32,550)

133,470,000

133,463,068(6,931)

155,220,000

155,175,069(44,930)

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

-

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions.
Liabilities(1) Current portion of long-term loans payable and (3) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates arereflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment Corporation has
not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interestrate swaps is based on the present value of the total of principal and interest, accounted for together with the applicable interest-rate swaps,
discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type.)(2) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
Derivative transactions
Please refer to Note 12 “DERIVATIVE TRANSACTIONS”.
Note 2: Redemption schedule for loans payable and investment corporation bonds
As of January 31, 2023
Due in 1 year or
less
Investment
corporation bonds
Long-term loans
payableTotal¥

Due after 1 year
through 2 years

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

¥

-

¥

Due after 4 years
through 5 years

Due after 5 years

1,000,000¥ -¥5,700,000

1,000,000¥

18,100,000

18,400,000

24,300,000

25,000,000

24,400,000

38,070,000¥19,100,000¥18,400,000¥24,300,000¥26,000,000¥24,400,000¥43,770,000

Due in 1 year or
less

Due after 1 year
through 2 years

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

Due after 4 years
through 5 years

Due after 5 years¥ -¥1,000,000

¥ -

¥ -

¥1,000,000¥5,700,000

14,050,000

18,850,000

21,350,000

23,300,000

21,500,000

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

As of July 31, 2022

Investment
corporation bonds
Long-term loans
payableTotal

11. REVENUE RECOGNITION
1. Information on the breakdown of revenue from contracts with customers
22nd Fiscal Period (August 1, 2022 to January 31, 2023)
Revenue from contracts with customers *1
Revenue from sale of real estate, etc.
Utility charge reimbursement

1,180,000 thousand yen
54,984 thousand yen

Net sales to external customers*2

304,729 thousand yen
54,984 thousand yen

Other－ thousand yen

9,577,125 thousand yen

Total

1,234,984 thousand yen

9,936,839 thousand yen*1 The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale of realestate, etc. subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Specia l Purpose
Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified Public Accountants) are not includedin the above amounts as they are excluded from revenue recognition accounting standards. Moreover, the main revenue fromcontracts with customers are revenue from sale of real estate, etc. and utility charge reimbursement.
*2 As proceeds from sale of real estate property are recorded as gain on sale of real estate property in the statements of in come andretained earnings, the amount calculated by deducting the cost of real estate property sales and other sales expenses from proceedsfrom sale of real estate property is indicated.
21st Fiscal Period (February 1, 2022 to July 31, 2022)
Revenue from contracts with customers*
Revenue from sale of real estate, etc.

Net sales to external customers－ thousand yen－ thousand yen

49,184 thousand yen

49,184 thousand yen

Other－ thousand yen

9,398,520 thousand yen

Total

49,184 thousand yen

9,447,705 thousand yen

Utility charge reimbursement* The rental revenues, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and the sale of realestate, etc. subject to the “Practical Guidelines on Accounting by Transferors for Securitization of Real Estate Using Specia l Purpose
Companies” (Accounting System Committee Report No. 15 of the Japanese Institute of Certified Public Accountants) are not incl udedin the above amounts as they are excluded from revenue recognition accounting standards. Moreover, the main revenue fromcontracts with customers are revenue from sale of real estate, etc. and utility charge reimbursement.
2. Information utilized as the base for understanding revenue from contracts with customers
The information is as described in the notes on important accounting standards.
3. Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow generated from said
contracts and amount and period of revenue expected to be recognized in the next calculation period or thereafter from contracts withcustomers existing at the end of the current calculation period(1) Balance of contract assets and contract liabilities, etc.
22nd Fiscal Period(August 1, 2022 to January 31,2023)

21st Fiscal Period(February 1, 2022 to July 31, 2022)

4,864 thousand yen

2,969 thousand yen

5,699 thousand yen

4,864 thousand yen--

Contract assets (balance at end of fiscal year)--

Contract liabilities (balance at beginning of fiscal year)--

Contract liabilities (balance at end of fiscal year)--

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

12. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of January 31, 2023 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting

Hedgeaccounting
methodType of derivativetransactions

Hedged items

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

Interest rate swap
Based on the amounttransaction:
Long-term¥97,920,000¥88,520,000¥1,508,184 provided by counterparty
Receive/floating andloans payablefinancial institutions
pay/fixed
Interest rate swap
Special treatment
transaction:
Long-term
for interest-rate
13,950,000
8,650,000*
Receive/floating andloans payable
swaps
pay/fixed
Total¥111,870,000¥97,170,000¥1,508,184*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value
Accounting
method, inprinciple

is included in the fair value of the hedged long-term loans payable.
The contract amount and the fair value of interest-rate swap transactions as of July 31, 2022 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodType of derivativetransactions

Hedged items

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

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

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

13. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other22nd Fiscal Period (August 1, 2022 to January 31, 2023) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable
2．Affiliated companies and other22nd Fiscal Period (August 1, 2022 to January 31, 2023) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable
3．Fellow subsidiary companies and other22nd Fiscal Period (August 1, 2022 to January 31, 2023) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable
4．Directors, major individual unitholders and other22nd Fiscal Period (August 1, 2022 to January 31, 2023) and 21st Fiscal Period (February 1, 2022 to July 31, 2022): Not applicable

14. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements under the Special Taxation
Measures Law of Japan are met, including a requirement that it currently distributes in excess of 90% of its net income for the fiscal period in order
to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of theInvestment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excess of 90% of its
distributable income in the form of cash distributions totaling ¥4,556 million and ¥4,288 million for the periods ended January 31, 2023 and July 31,
2022, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.01% for the periods ended January 31, 2023 and July 31, 2022. The following table summarizes thesignificant differences between the statutory tax rate and the effective tax rate.

From August 1, 2022
to January 31, 2023
31.46%

From February 1, 2022
to July 31, 2022
31.46%

Deductible cash distributions(31.20)(31.08)Others(0.25)(0.37)

Effective tax rate

0.01%

0.01%

Statutory tax rate

The significant components of deferred tax assets and liabilities as of January 31, 2023 and July 31, 2022 are as follows:
As of January 31, 2023

As of July 31, 2022

(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥597,846¥611,183

Deferred gains or losses on hedges

317

23,013

Asset retirement obligations

21,593

21,534

Amortization of leasehold right in trust

3,979

3,436

20

20

Other
Subtotal deferred tax assets

623,757

659,189

Valuation allowance(623,757)(659,189)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

15. ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations reported on balance sheets
1. Summary of the asset retirement obligations
The Investment corporation has recognized the original state restoration obligations assumed under the general fixed-term land leasehold agreement
as the asset retirement obligations in connection with Arute Ishiyagawa acquired on June 3, 2019.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 0.54711% and the useful life has been estimated to be 47 years and one
month based on the time period from the date of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following
From August 1, 2022
to January 31, 2023

From February 1, 2022
to July 31, 2022
(in thousands of yen)

Balance at the beginning of period¥68,451

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

187

186¥68,638¥68,451

16. 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.
22nd Fiscal Period
21st Fiscal Period
from February 1, 2022
from August 1, 2022
to July 31, 2022
to January 31, 2023
(in thousands of yen)Book value
Balance at the beginning of period
Changes during the period
Balance at the end of period
Fair value at the end of period
Note 1: Book value excludes accumulated depreciation from acquisition costs.

¥288,832,748
10,010,707¥275,695,438
13,137,309

298,843,455¥391,623,000

288,832,748¥365,903,000

Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 22nd fiscal period, the principal increase was theacquisition of real estate in 2 properties and real estate trust beneficiary interests in 6 properties totaling ¥11,712,656 thousand, and theprincipal decrease was the sales of real estate trust beneficiary interests in 1 property totaling ¥831,329 depreciation of ¥1,720,996
thousand and during the 21st fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in 8 properties
totaling ¥13,990,070 thousand, and the principal decrease was depreciation of ¥1,665,648 thousand.
Note 3: The fair value is the appraisal value or the survey value determined by outside appraisers.
Income and loss in the fiscal periods ended January 31, 2023 and July 31, 2022 for real estate for rental purposes is listed in Note 6 “BREAKDOWNOF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REAL ESTATE PROPERTY”

17. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from August 1, 2022 to January 31, 2023, and February 1, 2022 to July 31, 2022 from is asfollows:(A) Segment information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business, and it has no reportable segment
subject to disclosure.
(B) Related information(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income and retained earnings.
(2) Information about each geographic area(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income
and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plantand equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income
and retained earnings.

18. PER UNIT INFORMATION

Net asset value per unit
Net income per unit
Weighted average number of units (units)

From August 1, 2022
to January 31, 2023
¥141,655

From February 1, 2022
to July 31, 2022

¥4,361¥3,966

1,053,166

1,039,237¥138,902

The weighted average number of units outstanding of 1,053,166 and 1,039,237 were used for the computation of the amount of net income perunit as of January 31, 2023 and July 31, 2022, respectively.
Net income per unit after adjusting for residual units is not included because there were no residual investment units.
The basis for calculating net income per unit is as follows:

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

From August 1, 2022
to January 31, 2023
¥4,593,229

From February 1, 2022
to July 31, 2022
¥4,122,093--

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

¥4,593,229¥4,122,093

Weighted average number of units during the period (units)

1,053,166

1,039,237

19. SIGNIFICANT SUBSEQUENT EVENTS
Not applicable20. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
Property, plant and equipment consist of the following as of January 31, 2023:
Type of asset

Buildings

Property,plant andequipment

Intangible
assets

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

Balance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiod¥-¥ 447,056¥-

10,306-

10,342

173,018
173,018
122,148,745
1,465,983

1,631,605
2,099,311
4,382,204
105,806

1,574,807

35,128Depreciation
Depreciation
Accumulated
for thedepreciation
period(in thousands of yen)
¥447,056 ¥
5,962
¥
5,962

Balance atthe end of
period-Netbalance at
end of theperiodRemarks¥441,093

Notes 1

10,306292

292

10,013

10,342

430

430

9,912

589,991
2,854

1,804,624
2,272,330
125,940,957
1,568,935

6,685
20,303,778
429,359

6,685
1,599,648
38,8701,804,624
Notes 12,265,644
105,637,178 Notes 1 and 2
1,139,576 Notes 1 and 2

9,827

1,600,108552,744

35,376

1,047,363 Notes 1 and 2-

1,239,572

170,733

4,706

1,405,598

249,410

38,6901,156,188 Notes 1 and 2

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

5,769,849
10,463,721
12,563,033

356,529
963,909
963,909

185,748,052
316,263,652
318,535,982

21,535,293
21,541,978

1,712,585
1,719,271

185,748,052 Notes 1 and 2
294,728,359
296,994,003

1,862,101--

1,862,101

12,6491,724

1,849,451-

7,762¥1,869,864

7,633¥20,282776¥2,501129¥1,849,581

7,762¥1,869,864

-

¥

¥

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

Property, plant and equipment consist of the following as of July 31, 2022:
Type of asset

Land

Property,plant andequipment

Intangible
assets

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

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

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

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

Balance atthe end of
period-Netbalance at
end of theperiod¥173,018
173,018
103,318,397
1,073,882

1,545,362

29,444-

1,574,807

521,625

34,8281,053,181

1,054,703

184,869-

1,239,572

211,21334,424

1,028,358

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

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

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

19,955,287
19,955,287

1,663,923
1,663,923

180,334,732
286,808,552
286,981,571

1,122,504

739,596-

1,862,101

10,924

1,724

1,851,176

7,762¥1,130,267¥739,596-

7,762¥1,869,864

6,857¥17,781776¥2,501905¥1,852,082¥

Remarks

Notes 1

Notes 1

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

21. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of January 31, 2023 are as follows.
Balance at theDecrease
Balance at
beginning ofduring thethe end of
periodperiodperiod(in thousands of yen)

SeriesDate of issue

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

August 30,
2016
August 30,
2016
November 30,
2018
November 30,
2018
December 20,
2019
May 31,
2021

Interest
rate

Repayment
date

1,000,000-

1,000,000

0.540%

August 28,2026

1,000,000-

1,000,000

0.800%

August 30,2028

1,000,000-

1,000,000

0.410%

1,000,000-

1,000,000

0.850%

2,000,000-

2,000,000

0.750%

1,700,000-

1,700,000

0.720%-¥ 7,700,000¥7,700,000¥

November
30,2023
November
30,2028
December
20,2029
May 30, 2031

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured(Note4)

Unsecured

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

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

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

Due after 3 years
through 4 years-

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

Outstanding Investment corporation bonds as of July 31, 2022 are as follows.
Balance at theDecrease
Balance at
beginning ofduring thethe end of
periodperiodperiod(in thousands of yen)

SeriesDate of issue

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

August 30,
2016
August 30,
2016
November 30,
2018
November 30,
2018
December 20,
2019
May 31,
2021

Interest
rate

Repayment date

1,000,000-

1,000,000

0.540%

August 28,2026

1,000,000-

1,000,000

0.800%

August 30,2028

1,000,000-

1,000,000

0.410%

1,000,000-

1,000,000

0.850%

2,000,000-

2,000,000

0.750%

1,700,000-

1,700,000

0.720%-¥ 7,700,000¥7,700,000¥

November
30,2023
November
30,2028
December
20,2029
May 30, 2031

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured(Note4)

Unsecured

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

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

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

Due after 3 years
through 4 years-¥

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

22. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of January 31, 2023
Classification

Increaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)

LenderBalance at the
beginning of
periodMizuho Bank, Ltd.

2,000,000--

2,000,000

0.317%March 31, 2023

900,000--

900,000

0.317%

April 30, 2023

1,200,000--

1,200,000

0.317%

June 30, 2023

300,000---

300,000

0.317%

June 30, 2023

900,000

900,000

0.314%

July 31, 2023

800,000

800,000

0.314%

August 31, 2023

1,200,000

1,200,000

0.313%

August 31, 2023

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Shortterm
loans
payableSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.

Current
portionof longterm
loans
payableSub total
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Development Bank ofJapan Inc.
SBI Shinsei Bank, Limited(Note 8)Resona Bank, Limited
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
SBI Shinsei Bank, Limited(Note 8)Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
The Bank of Fukuoka,Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation (Note 2)
MUFG Bank, Ltd.
(Note 2)
Mizuho Bank, Ltd.
(Note 2)
Resona Bank, Limited(Note 2)
Mizuho Trust & Banking
Co., Ltd. (Note 2)
Aozora Bank, Ltd.
(Note 2)Development Bank ofJapan Inc. (Note 2)-

900,000-

900,000

0.312%

November 30, 2023

4,400,000
950,000
1,100,000

3,850,000-

950,000
1,100,000

8,250,000-

1.083%
0.923%

November 30, 2022
August 31, 2022

700,000-

700,000-

0.923%

August 31, 2022

1,000,000-

1,000,000-

0.509%

August 31, 2022

400,000-

400,000-

1,600,000-

1,600,000-

0.498%

August 31, 2022

500,000-

500,000-

0.272%

January 31, 2023

1,500,000--

1,500,000

0.987%

April 30, 2023

1,500,000--

1,500,000

0.501%

February 28, 2023

1,500,000
800,000
500,000--

1,500,000
800,000
500,000

0.299%
0.325%

July 31, 2023
April 30, 2023

500,000--

500,000

300,000--

300,000
0.329%

July 31, 2023

300,000--

300,000

200,000--

200,000

500,000--

500,000

0.286%

February 28, 2023

200,000--

200,000

0.236%

Unsecured/
February 28, 2023 (Note 6) Unguaranteed

1.254%

August 7, 2023

400,000

400,000

400,000

400,000

300,000

300,000

200,000

200,000

200,000

200,000

150,000

150,000

500,000

500,000

1.320%(Note 5)

August 7, 2023

1,200,000

1,200,000

1.105%

January 31, 2024

950,000

950,000

1.047%

August 31, 2023

1,200,000

1,200,000

0.592%

August 31, 2023

Aozora Bank, Ltd. (Note 2)

1,000,000

1,000,000

0.592%

August 31, 2023

MUFG Bank, Ltd. (Note 2)

800,000

800,000

0.592%

August 31, 2023

The Bank of Fukuoka,
Ltd. (Note 2)

800,000

800,000

0.230%

November 30, 2023

MUFG Bank, Ltd. (Note 2)
Sumitomo Mitsui Trust
Bank, Limited (Note 2)
Sumitomo Mitsui Banking
Corporation (Note 2)

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

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(in thousands of yen)
Current
portionof longterm
loans
payableLongtermloanspayableMUFG Bank, Ltd. (Note 2)

1,000,000

1,000,000

MUFG Bank, Ltd. (Note 2)

300,000

300,000

0.225%(Note 5)0.225%(Note 5)0.225%(Note 5)October 31, 2023
November 30, 2023 (Note 6)

MUFG Bank, Ltd. (Note 2)

900,000--

900,000

Sub total
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

24,350,000
2,000,000-

6,250,000-

18,100,000
2,000,000

1.100%

April 30, 2024

1,000,000--

1,000,000

1.265%

April 30, 2025

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

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

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000--

1,000,000

1,000,000--

1,000,000

500,000--

500,000

MUFG Bank, Ltd.

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

1,000,000-

1,000,000
1,000,000

Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.
Resona Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited(Note 8)Mizuho Trust & Banking
Co., Ltd.
Development Bank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Resona Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited
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

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

Unsecured/
Unguaranteed

January 31, 2024

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

0.797%

August 31, 2025

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

August 31, 2025

3,000,000

0.906%

August 31, 2026-

1,000,000

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

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

1,200,000--

1,200,000

1,000,000--

1,000,000

0.928%(Note 5)

August 22, 2027

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

500,000
500,000
1,500,000

1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

August 31, 2024

500,000--

500,000

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

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

0.799%

February 2, 2026

500,000--

500,000

400,000--

400,000

August 31, 2024

(Note 6)

Unsecured/
UnguaranteedClassification
LenderBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)0.914%

February 28, 2027

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
SBI Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Aozora Bank, Ltd.
The Bank of Fukuoka, 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
SBI Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Mizuho Trust & Banking
Co., Ltd.
Mizuho Bank, Ltd.

LongtermloanspayableSBI Shinsei Bank, Limited(Note 8)
Sumitomo Mitsui Banking
Corporation
Resona Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
The Bank of Fukuoka, Ltd.

400,000--

400,000

400,000--

400,000

400,000--

400,000

300,000
300,000--

300,000
300,000

1,050,000--

1,050,000

500,000--

500,000

500,000--

500,000

500,000--

500,000

250,000--

250,000

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

800,000--

800,000

500,000--

500,000

400,000--

400,000

0.363% November 30, 2024

2,000,000--

2,000,000

0.330%(Note 5)500,000--

500,000

0.484% November 30, 2025

1,000,000--

1,000,000

0.572%

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

450,000
1,500,000
500,000

0.336%
April 30, 2024
0.600% November 30, 2026

500,000--

500,000

500,000--

500,000

500,000
500,000--

500,000
500,000

500,000--

500,000

400,000--

400,000

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

800,000--

800,000

500,000--

1,750,000-

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

Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited(Note 8)Development Bank ofJapan Inc.
Sumitomo Mitsui Banking
Corporation
SBI Shinsei Bank, Limited(Note 8)MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

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

0.259%

February 28, 2027
September 30, 2026

September 30, 2028

May 31, 2025

August 31, 2026

February 29, 2024

0.464%
February 28, 2027
0.414%
0.450%(Note 5)0.531%
0.300%(Note 5)February 28, 2027
February 29, 2028
February 29, 2024

0.646%

June 30, 2028

500,000

0.616%(Note 5)June 30, 2028-

1,750,000

0.691%--

1,750,000--

1,000,000
500,000
500,000

500,000--

500,000

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

July 31, 2028
0.641%

Classification
Lender
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

500,000
300,000

Increaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-500,000
300,000

0.640%
0.690%

August 31, 2028

0.648%

September 30, 2028

Decreaseduring theperiod(in thousands of yen)-

840,000--

840,000

900,000--

900,000

800,000
1,330,000
500,000--

800,000
1,330,000
500,000

400,000--

400,000--

800,000

300,000
500,000--

300,000
500,000

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

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

1,000,000
1,200,000

0.599%
0.409%

January 31, 2028

1,100,000--

1,100,000

0.359%

1,350,000--

1,350,000

0.677%March 31, 2029

1,000,000--

1,000,000

0.252%

July 31, 2024
January 31, 2027

Nippon Life Insurance
Company
The Yamaguchi Bank, Ltd.
The Chugoku Bank, Ltd.
The 77 Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited
Sumitomo Mitsui Banking
Corporation

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

January 31, 2025

500,000--

500,000

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

1,000,000

0.467%

July 31, 2029

1,400,000--

1,400,000
1,000,000

1,000,000--

1,000,000

800,000
500,000
500,000
350,000
300,000--

800,000
500,000
500,000
350,000
300,000

1,200,000--

1,200,000

0.598%

January 31, 2030

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

0.358%

February 28, 2027

0.533%
0.433%

February 28, 2029

0.585%

February 28, 2030

0.575%(Note 5)0.638%(Note 5)

MUFG Bank, Ltd.

1,200,000--

1,200,000

Development Bank ofJapan Inc.

1,000,000--

1,000,000

Aozora Bank, Ltd.

500,000--

500,000

0.540%

February 28, 2029

600,000

0.525%(Note 5)February 28, 2029
February 28, 2030

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Chiba Bank, Ltd.
The Musashino Bank, Ltd.
The Hyakugo Bank, Ltd.
THE HACHIJUNI BANK,LTD.
The Shizuoka Bank, Ltd.
Aozora Bank, Ltd.
THE NISHI-NIPPONCITY BANK, LTD.
The Yamanashi Chuo
Bank, Ltd.
The Yamaguchi Bank,Ltd.
The Bank of Yokohama,
Ltd.
Kansai Mirai Bank,
LimitedThe Bank of Kyoto, Ltd.

Unsecured/
Unguaranteed

0.608%

800,000-(Note 6)

September 30, 2028

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Aozora Bank, Ltd.
SBI Shinsei Bank, Limited(Note 8)Daishi Hokuetsu Bank,Ltd.
The Bank of Yokohama,
Ltd.
Sumitomo Mitsui Banking
Corporation-

Remarks

0.558%MUFG Bank, Ltd.

1,000,000

Use

0.658%

0.550%(Note 5)0.637%
0.478%MUFG Bank, Ltd.
LongtermloanspayableBalance at the
beginning of
periodFebruary 28, 2030
August 31, 2031

600,000--

600,000--

600,000

0.602%

600,000
500,000
500,000--

600,000
500,000
500,000

0.325%
November 30, 2026
(Note 5)500,000--

500,000

0.314% November 30, 2025

200,000--

200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

1,000,000--

1,000,000

700,000--

700,000

500,000--

500,000

300,000--

300,000

0.529%(Note 5)

May 31, 2029

0.561% November 30, 2029

0.631% November 30, 2030

0.703% November 30, 2031

Classification
LenderLongtermloanspayableBalance at the
beginning of
periodSumitomo Mitsui Banking
Corporation
Shinkin Central Bank
The Keiyo Bank, Ltd.
Aozora Bank, Ltd
Daishi Hokuetsu Bank,
Ltd.
Aozora Bank, Ltd.
Aozora Bank, Ltd.
Nippon Life Insurance
Company
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Sompo Japan Insurance
Inc.
SBI Shinsei Bank, Limited(Note 8)4,000,000

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

4,000,000

0.447%

April 30, 2025

0.466%
0.509%
0.354%
0.350%(Note 5)0.632%
0.681%
0.610%(Note 5)October 31, 2025
October 31, 2026
October 31, 2024

0.425%

May 31, 2026--

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

500,000--

500,000

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

1,500,000
1,000,000

500,000--

500,000

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.380%(Note 5)

August 31, 2025

1,100,000--

1,100,000

0.550%

July 31, 2027

500,000

0.225%(Note 5)February 29, 2024

1,100,000

0.422%

August 31, 2025

700,000

0.549%

February 28, 2027-

Resona Bank, Limited-

Mizuho Trust & Banking
Co., Ltd.
Development Bank ofJapan Inc.

-

The Norinchukin Bank-

The 77 Bank, Ltd.

Total

Balance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Decreaseduring theperiod1,500,000
500,000
1,000,000

MUFG Bank, Ltd.

Daishi Hokuetsu Bank,Ltd.
SBI Shinsei Bank, Limited(Note 8)Sub total

Increaseduring theperiod123,170,000¥151,920,000-

500,000-

1,100,000-

700,000-

1,600,000-

1,300,000-

800,000-

500,000-

500,000
7,000,000¥10,850,000¥6,250,000

1,600,000
1,300,000
800,000
500,000
500,000

0.711%(Note 5)0.556%(Note 5)0.667%(Note 5)0.667%(Note 5)0.790%(Note 5)Use

Remarks(Note 6)

Unsecured/
Unguaranteed

April 30, 2027
October 31, 2027
April 30, 2028
March 31, 2029

August 31, 2029
November 30, 2026
January 31, 2027
January 31, 2027
January 31, 2028

130,170,000¥156,520,000

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

Due after 2 years

Due after 3 years

Due after 4 years

through 2 years

through 3 years

through 4 years

through 5 years

Due after 5 years(in thousands of yen)
Long-term loans payable¥ 18,400,000¥ 24,300,000¥ 25,000,000¥ 24,400,000¥ 38,070,000

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.
Note8: SBI Shinsei Bank, Limited. changed its trade name from "Shinsei Bank, Limited." on January 4, 2023.

Short-term debt and long-term debt consist of the following as of July 31, 2022
Classification
LenderBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Shortterm
loans
payableCurrent
portionof longterm
loans
payableLongtermloanspayableSumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Sub total
Sumitomo Mitsui
Banking Corporation
Aozora Bank, Ltd.
MUFG Bank, Ltd.
Resona Bank, LimitedAozora Bank, Ltd.
SBI Shinsei Bank,
Limited (Note 8)
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Insurance Inc.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Development Bank ofJapan Inc.
SBI Shinsei Bank,
Limited (Note 8)
Resona Bank, Limited(Note 2)
Sumitomo Mitsui
Banking Corporation(Note 2)
MUFG Bank, Ltd.
(Note 2)
Mizuho Bank, Ltd.
(Note 2)
MUFG Bank, Ltd.
(Note 2)
SBI Shinsei Bank,
Limited (Note 8) (Note 2)
Mizuho Trust & Banking
Co., Ltd. (Note 2)
Sumitomo Mitsui Trust
Bank, Limited (Note 2)
The Bank of Fukuoka,
Ltd. (Note 2)
Mizuho Bank, Ltd.
(Note 2)
Mizuho Trust & Banking
Co., Ltd. (Note 2)
Sub total
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.

¥500,000¥-¥500,000¥-

0.379%

April 30, 2022

2,000,000-

2,000,000-

0.379%

April 30, 2022-

1,500,000

1,500,000-

0.380%

April 30, 2022-

2,000,000-

2,000,000

0.327%March 31, 2023-

900,000-

900,000

0.326%

April 30, 2023-

1,200,000-

1,200,000

0.330%

June 30, 2023

2,500,000

300,000
5,900,000

4,000,000

300,000
4,400,000

2,000,000-

2,000,000-

1.267%

April 30, 2022

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

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

1.267%
1.267%
1.267%
0.875%

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

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-

1,000,000-

1,000,000

0.425%

February 28, 2022

500,000-

500,000-

950,000
1,100,000--

950,000
1,100,000

1.083%
0.923%

November 30, 2022
August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

1,600,000--

1,600,000

0.498%(Note 5)

August 31, 2022

500,000--

500,000

0.272%

January 31, 2023

1,500,000--

1,500,000

0.987%

April 30, 2023

1,500,000--

1,500,000
0.501%

February 28, 2023

1,500,000--

1,500,000

800,000--

800,000

0.299%

July 31, 2023

500,000--

500,000

0.325%

April 30, 2023

500,000--

500,000

300,000--

300,000
0.329%

July 31, 2023

300,000--

300,000

200,000--

200,000

500,000--

500,000

0.291%

200,000--

200,000

0.241%

27,550,000-

13,500,000

14,050,000

400,000--

400,000

400,000
300,000--

400,000
300,000

February 28, 2023

1.254%

August 7, 2023

Classification
LenderResona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

LongtermloanspayableBalance at the
beginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance at theend of period

200,000(in thousands of yen)--

200,000

200,000--

200,000

150,000--

150,000

500,000--

500,000

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

1,000,000-

950,000

Averageinterest
rate(Note 3)(Note 4)

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

1.320%(Note 5)
1.105%
1.100%

January 31, 2024
April 30, 2024-

1,000,000

1.265%

April 30, 2025--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

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

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%MUFG Bank, Ltd.

1,000,000--

1,000,000

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000--

1,000,000

1,000,000--

1,000,000

500,000--

500,000

MUFG Bank, Ltd.

2,000,000--

2,000,000

500,000--

500,000

3,000,000--

1,000,000-

1,000,000

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

Remarks(Note 6)

Unsecured/
Unguaranteed

August 7, 2023

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

0.797%

August 31, 2025

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

August 31, 2025

3,000,000

0.906%

August 31, 2026-

1,000,000

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

1,000,000

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

1,200,000--

1,200,000

1,000,000--

1,000,000--

500,000

0.928%(Note 5)

August 22, 2027

500,000
500,000--

500,000

Aozora Bank, Ltd.

1,500,000--

1,500,000

Sumitomo Mitsui
Banking Corporation

1,000,000--

1,000,000

0.582%

February 29, 2024

MUFG Bank, Ltd.

1,000,000--

1,000,000

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.

500,000--

500,000

August 31, 2024

500,000--

500,000

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

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

1,000,000--

1,000,000

0.749%

February 28, 2026

500,000--

500,000

0.900%(Note 5)January 30, 2027

1,500,000--

1,500,000

1,400,000
900,000--

1,400,000
900,000

0.799%

February 2, 2026

Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Resona Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank,
Limited(Note 8)
Mizuho Trust &Banking Co., Ltd.
DevelopmentBank ofJapan Inc.
Mizuho Bank, Ltd.
The Bank of Fukuoka,
Ltd.

Use

August 31, 2024

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

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)0.592%

August 31, 2023

0.914%

February 28, 2027

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
Development Bank ofJapan Inc.
Nippon Life Insurance
Company
Resona Bank, Limited
SBI Shinsei Bank,
Limited (Note 8)
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Aozora Bank, Ltd.
The Bank of Fukuoka,
Ltd.
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.

LongtermloanspayableNippon Life Insurance
Company
SBI Shinsei Bank,
Limited (Note 8)
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Mizuho Trust &Banking Co., Ltd.

500,000--

500,000

500,000--

500,000

400,000--

400,000

400,000--

400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,200,000--

1,200,000

1,000,000
800,000--

1,000,000
800,000

1,050,000--

1,050,000

500,000--

500,000

500,000--

500,000

500,000--

500,000

250,000--

250,000

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

800,000--

800,000

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

February 28, 2027
September 30, 2026

September 30, 2028

500,000--

500,000

400,000--

400,000

0.363%

November 30, 2024

2,000,000--

2,000,000

0.330%(Note 5)

May 31, 2025

500,000--

500,000

0.484%

November 30, 2025

1,000,000--

1,000,000

0.572%

August 31, 2026

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

450,000
1,500,000
500,000

0.336%
0.600%

April 30, 2024
November 30, 2026

500,000--

500,000

0.259%

February 29, 2024

500,000--

500,000

500,000
500,000--

500,000
500,000

500,000--

500,000

400,000--

400,000

MUFG Bank, Ltd.

400,000--

400,000

Aozora Bank, Ltd.

200,000--

200,000

MUFG Bank, Ltd.

600,000--

600,000

1,000,000--

1,000,000

800,000--

800,000

500,000--

1,750,000--

Mizuho Bank, Ltd.
SBI Shinsei Bank,
Limited (Note 8)
Sumitomo Mitsui
Banking Corporation
Resona Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
The Bank of Fukuoka,
Ltd.

Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank,
Limited (Note 8)
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation

0.464%
February 28, 2027
0.414%

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

0.646%

June 30, 2028

500,000

0.616%(Note 5)June 30, 2028

1,750,000

0.691%

July 31, 2028

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

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
SBI Shinsei Bank,
Limited (Note 8)
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust & Banking
Co., Ltd.
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Longtermloanspayable1,750,000--

1,750,000

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

1,000,000
500,000
500,000

500,000--

500,000

1,000,000--

1,000,000

0.686%

July 31, 2028

800,000--

800,000

0.637%

July 31, 2028

500,000
300,000--

500,000
300,000

0.640%
0.690%

August 31, 2028

840,000--

840,000

0.648%

September 30, 2028

900,000--

900,000

800,000
1,330,000
500,000--

800,000
1,330,000
500,000

400,000--

400,000

MUFG Bank, Ltd.

800,000--

800,000

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd
Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Aozora Bank, Ltd.
SBI Shinsei Bank,
Limited (Note 8)
Daishi Hokuetsu Bank,Ltd.
The Bank of
Yokohama, Ltd.
Sumitomo Mitsui
Banking Corporation

300,000
500,000--

300,000
500,000

0.550%(Note 5)0.637%
0.478%

1,000,000--

1,000,000

0.585%

October 31, 2027

2,000,000--

2,000,000

0.617%

November 30, 2027

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

1,000,000
1,200,000

0.599%
0.409%

January 31, 2028

1,100,000--

1,100,000

0.359%

1,350,000--

1,350,000

0.677%March 31, 2029

1,000,000--

1,000,000

0.252%

July 31, 2024

500,000--

500,000

0.350%(Note 5)January 31, 2027

1,000,000--

1,000,000

0.467%

July 31, 2029

1,400,000--

1,400,000

MUFG Bank, Ltd.
Nippon Life Insurance
Company
The Yamaguchi Bank,Ltd.
The Chugoku Bank,Ltd.
The 77 Bank, Ltd.

1,000,000--

1,000,000

1,000,000--

1,000,000

800,000--

800,000

500,000--

500,000

0.641%

0.658%
September 30, 2028
0.558%
0.608%
September 30, 2028
October 31, 2027
April 30, 2025

January 31, 2025

0.598%

January 31, 2030

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

0.358%

February 28, 2027

500,000--

500,000

Aozora Bank, Ltd.

350,000--

350,000

0.533%

Resona Bank, Limited
Sumitomo Mitsui
Banking Corporation

300,000--

300,000

0.433%

1,200,000--

1,200,000

0.585%MUFG Bank, Ltd.

1,200,000--

1,200,000

Development Bank ofJapan Inc.

1,000,000--

1,000,000

Aozora Bank, Ltd.

500,000--

500,000

0.540%

February 28, 2029

600,000

0.525%(Note 5)February 28, 2029

0.602%

February 28, 2030

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
The Chiba Bank, Ltd.
The Musashino Bank,Ltd.
The Bank of Fukuoka,
Ltd.

0.575%(Note 5)0.638%(Note 5)February 28, 2029
February 28, 2030
February 28, 2030
August 31, 2031

600,000--

600,000--

600,000

600,000--

600,000

500,000--

500,000

0.325%(Note 5)

November 30, 2026

800,000--

800,000

0.230%

November 30, 2023

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

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)0.314%

November 30, 2025

0.529%(Note 5)

May 31, 2029

0.561%

November 30, 2029

0.631%

November 30, 2030

0.703%

November 30, 2031

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)
The Hyakugo Bank,Ltd.
THE HACHIJUNIBANK, LTD.
The Shizuoka Bank,
Ltd.

500,000--

500,000

500,000--

500,000

200,000--

200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

1,000,000--

1,000,000

700,000--

700,000

500,000--

500,000

300,000--

300,000-

4,000,000-

4,000,000

0.447%

April 30, 2025-

1,500,000
500,000-

1,500,000
500,000

October 31, 2025
October 31, 2026

MUFG Bank, Ltd.

-

1,000,000-

1,000,000

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

1,000,000-

1,000,000

500,000-

500,000-

1,500,000
1,000,000-

1,500,000
1,000,000

500,000-

500,000

300,000-

300,000

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

300,000

300,000-

300,000

900,000-

900,000-

1,000,000-

1,000,000-

1,100,000-

1,100,000

118,070,000¥148,120,000

15,400,000¥21,300,000¥17,500,000

133,470,000¥151,920,000

Aozora Bank, Ltd.

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

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

-MUFG Bank, Ltd.
Sompo Japan
Insurance Inc.
SBI Shinsei Bank,
Limited (Note 8)
Sub total
Total

October 31, 2023
October 31, 2024
April 30, 2027
October 31, 2027
April 30, 2028
March 31, 2029
November 30, 2023

0.425%
0.225%(Note 5)0.380%(Note 5)

May 31, 2026
January 31, 2024
August 31, 2025

0.550%

July 31, 2027

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

Due after 2 years

Due after 3 years

Due after 4 years

through 2 years

through 3 years

through 4 years

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

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

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing are lump-sum repayments on the due date.
Note8: SBI Shinsei Bank, Limited. changed its trade name from "Shinsei Bank, Limited." on January 4, 2023.

23. DISTRIBUTIONS
22nd Fiscal Period(From August 1, 2022 to January 31,2023)
I. Retained earnings at the end of period

21st Fiscal Period(From February 1, 2022 to July 31, 2022)¥4,718,142,642¥4,393,566,974¥20,000,000¥20,000,000¥4,556,833,281¥4,288,653,558¥4,257¥4,101¥181,309,361¥124,913,416

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,556,833,281, which is the amount deducteda part of gain on sale of real estate property and otheradjustments from net income and added reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
22nd fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥4,288,653,558, which is the amount of¥4,122,093,577 in net income and ¥146,559,981 fromretained earnings brought forward and reversal ofreserve for temporary difference adjustments, as the
distribution of earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
21st fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

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

Method of calculating distribution amount

Note 1: Reserve for temporary difference adjustments
22nd Fiscal Period (August 1, 2022 to January 31, 2023)
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 22nd fiscal period distribution.
21st Fiscal Period (February 1, 2022 to July 31, 2022)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 21st fiscal period distribution.

Independent Auditor’s Report

The Board of Directors
Kenedix Residential Next Investment Corporation

OpinionWe have audited the accompanying financial statements of Kenedix Residential Next
Investment Corporation (the Company), which comprise the balance sheet as at January 31,
2023, and the statements of income and retained earnings, changes in net assets, and cash flows
for the six-month period then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as at January 31, 2023, and its financial performance and its
cash flows for the six-month period then ended in accordance with accounting principles
generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Other Information
The other information comprises the information included in the Semi-annual Reports that
contains audited financial statements but does not include the financial statements and our
auditor’s report thereon. Management is responsible for preparation and disclosure of the otherinformation. The Supervisory Director is responsible for overseeing the Company’s reporting
process of the other information.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management, and Supervisory Director for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.

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

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

Ernst & Young ShinNihon LLC
Tokyo, Japan
April 25, 2023

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