From August 1, 2019 to January 31, 2020

16th
Semi-Annual
REPORT
Kenedix Residential Next Investment Corporation

Overview of KDR

To our unitholders
We are pleased to inform you that Kenedix Residential Next Investment Corporation(KDR) successfully closed all accounts for the 16th fiscal period (from August 1, 2019
to January 31, 2020). We would like to thank all of our unitholders and stakeholders
for their continued support and cooperation. We hereby report on the asset
management overview and results for the 16th Fiscal Period.
For the 16th fiscal period, operating revenue was 8,066 million yen, operating
income was 4,260 million yen, ordinary income was 3,614 million yen and net
income was 3,613 million yen. The distribution to unitholders was 4,064 yen perunit, ＋0.02% higher than in the previous period.
During the fiscal period under review, KDR carried out asset replacement byacquiring 2 rental housing properties in the Tokyo metropolitan area and selling 1
rental housing property located in the suburbs of Osaka Prefecture.

Executive Director,
Kenedix Residential Next
Investment Corporation

For KDR’s properties, the occupancy rate of the portfolio at the end of the fiscal
period remained high at 97.6%. For residential facilities, with the continuing
favorable market environment, rents have risen mainly in the Tokyo metropolitanarea, and profitability was greatly improved. Meanwhile, for healthcare facilities,

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

long-term, fixed-rent lease contracts contributed to maintaining the stability of theportfolio.
As to activities in the 16th fiscal period onward, KDR procured funds in February2020 through public offering for the third time since the merger in March 2018, andtogether with borrowings and cash on hand, acquired 3 rental housing properties in
February 2020, acquired 2 rental housing properties and 2 accommodation
properties (hotels) in March 2020, and sold 1 rental housing property in Sendai City.
(Furthermore, KDR plans to acquire 2 rental housing properties by August 2020.) As
a result, as of March 31, 2020, KDR owns assets totaling 150 properties valued at
246.3 billion yen (total acquisition price).

Based on an accurate understanding of social and economic changes, we will pursue
with flexibility investment and revenue opportunities that we believe are the most
attractive. We will dynamically invest and manage our portfolio by gathering
information and making decisions swiftly. By using this approach, we aim to
maximize the unitholder’s value.
Your continued support and cooperation are highly appreciated.

1

Highlights

Distribution per Unit

17th (Ending July 2020) Forecast(Note) Distribution per unit for 17th
fiscal period and 18th fiscal period is
estimated based on certain
assumptions as of March 16, 2020

16th (Ended January 2020) Actual¥ 4,065¥ 4,064

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

Trend in DPU
（yen）
5,000

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

Jul. 2018(13th Period)

Jan.2019（14th Period）

Jul. 2019(15th Period)

Jan.2020（16th Period）(Actual)Jul.2020（17th Period）(Forecast)Jan.2021（18th Period）(Forecast)4,000¥ 3,473¥ 3,266¥ 3,316Jan.2017（10th Period）

Jul. 2017(11th Period)

3,000

0

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

(million yen)

16th Fiscal Period¥8,066¥4,35816th Fiscal Period¥4,26015th Fiscal Period

15th Fiscal Period¥3,741¥3,741

16th Fiscal Period¥ 3,614Net Income

Operating
Revenues¥8,13615th Fiscal Period

ordinary income

Operating Income

15th Fiscal Period

16th Fiscal Period¥ 3,613

Portfolio overview
Total Number of properties

144 properties

Healthcare Facilities

119 properties

Total Acquisition price¥178.8 billion

Occupancy rate
(At the end of 16th Fiscal
Period)%Other

24 properties

Residential Facilities¥234.7 billion

97.6

Residential Facilities

Healthcare Facilities¥ 5 4 . 1 billion

Residential Facilities

96.5 %

1 property
Other¥ 1 . 7 billion

Healthcare Facilities

100.0 %

2

Feature
As of the end of January 2020, Kenedix Residential Next
Investment Corporation (KDR) owns 119 residential facilities,
including rental housing, and 24 healthcare facilities,
including private senior homes with nursing care.
The Kenedix Real Estate Fund Management, Inc. (KFM), theasset management company of KDR,
Currently, 12managers (the asset managers) manage theproperties with creativity and ingenuity in order to increase
the profitability of the properties on a daily basis, whileassessing the characteristics of each property and themarket conditions in which the properties are located.
In this article, the asset managers who support KDR’s"management capability" will explain the frontline of"professional operation."

Q

What is your initiatives to improve occupancy rates and increase rents?

Kenedix Real Estate
Fund management, Inc.
Tomokazu Murakami

The environments surrounding
rental housing have remained very
favorable
for landlords. In
particular, in Tokyo and in thecentral area of major regional
cities, the inflow of populations
continues, while the supply of
rental housing is kept to a certain
level. As a result, the supplydemand balance has tightened,
and a decline in vacancy rates andan upward trend in rents havebecome evident.

As to KDR portfolios of residential facilities, the rent increase rate
at the time of tenant replacement has risen to 3.0% with aparticularly large growth rate of 4.1% in the Tokyo metropolitan
area.(Figure)
Although this is an advantageous environment for landlords, weare making various efforts when leasing to tenants.
"In leasing management, we analyze the precise level of demandand determine the rent. However, it is not enough to simply
match the average level of the surrounding competitors. The
people who look for an apartment have diverse attribute andtheir rent-paying capacity is different and some of them want tolive in a good properties with even a slightly higher rent.
Therefore, we would like to encourage such people to choose
KDX Residences.

Percentage of Increase/Decline of rent of new tenants (Note)(Note) "Rate of change in new rent" is calculated by dividing the totalof monthly rents of new tenants for each period by the total ofmonthly rents of previous tenants.

(Murakami, KFM Residential
REIT
Department,
AssetManagement Division)
While there is a tendency tofocus on the briskness of rental
housing market in Tokyo, KDR is
steadilyimproving
the Interior with accent crossprofitability of its properties inrural areas as well.
"At the KDX Residence Minami-Kusatsu in Kusatsu City, Shiga
Prefecture, of which I am in charge of asset management, newrent increased by 9.8% in the fiscal year ended January
2020. In the vicinity of the property, convenience facilities such as
supermarkets, daily necessities stores, and restaurants areenhanced, It is a popular residential area these days because it has
good access to Kyoto and Osaka using the railway of JR. Therefore,
there is a certain level of demand from commuters to Kyoto andOsaka, furthermore we are focusing on leasing operations that canmeet the housing demand from people who work for large
companies in the neighborhood.
There are a lot of residents in the property because of a large
university campus located in the south side of the station, butmany students move out the rooms as they graduate, and weanticipate the moving-out of students before graduation, andwork closely with local brokerage firms to capture corporate
workers' demand at the timing of students leave, and strive toshorten the vacancy period as much as possible.
In addition, it is essential to maintain a suitable grade in order tohave local residents choose KDX Residence Minami-kusatsu fromamong the competitive properties and to have them live for a longtime thereafter. Last year, we renewed the common areas such as
entrances and corridors. In addition to the favorable reputationfrom tenants, leasing has also led to an increase in rent and ashorter vacancy period. (Murakami)【Before】

3【After】 Entrance

Q What is your policy regarding maintenance and Major renewal construction?
As of the end of January 2020, theaverage age of KDR's residential
facilities was 13.4 years and thatof healthcare facilities was 14.8
years. Normally, as facilities
become decrepit and obsolete
over time, the competitiveness ofproperties gradually declines.
However, the profitability ofproperties can be sustained overa long period of time throughappropriate
maintenance,
management, and renovation.

Kenedix Real Estate Fundmanagement, Inc.

Toshihiko Tadekawa"We are systematically carrying out large-scale renovation
work in about 15 years for the properties to be operated,
and in the 16th period, we have carried out the renovationof 6 residentials facilities. The renovation menus are mainly
exterior wall renovation, rooftop waterproofing, steel
section painting, and equipment renewal, but the degree ofdeterioration varies depending on the facilities, so we areplanning the renovation work so that large-scale renovation
work will not be too concentrated in each period while
checking the conditions of the properties during daily
operation. In addition, in the KDR's portfolios, we have 13
property management companies which are asked to
manage the work on site. To ensure that construction
specifications and performance levels do not varydepending on the contractor, we strive to conduct detailed
checks from the standpoint of unifying specifications in theportfolios."(Tadekawa, KFM Corporate Department, Engineering
Division)Q

It is important to give consideration to residents when
implementing construction, as there are residents inresidential facilities and nursing homes 24 hours a day and
365 days a year.
"It is necessary to avoid concentrating the construction
work in a single period from the perspective of investment
corporations' income and expenditure. However, with regard
to rental housing, we plan to ensure that construction works
do not proceed simultaneously as much as possible, taking
into account the lives of residents.
On the other hand, at healthcare facilities such as seniorhomes, we cannot carry out the construction work manytimes, so it is necessary to carry out the construction as
closely as possible so that the period does not last for a longtime. (Tadekawa)

Exterior wall renovation

Corridor waterproof
construction【Before】【After】

What are your new initiatives to improve profitability?

Kenedix Real Estate Fundmanagement, Inc.

Mamiko Hamano

Generally speaking, the ways toimprovetheprofitabilityofresidential facilities is to enhance
profitability by improving occupancy
rate and increasing rent, and to
reducecosts
byimproving
management efficiency and reducing
energy consumption.
On the other hand, for operational
assets such as healthcare facilities,
we are implementing new initiatives
to enhance the profitability offacilities in cooperation with

operators, thereby increasing the profitability of KDR's assets
under management.
"At the private senior homes with nursing care located in
Sapporo, we implemented the first green lease initiative. The
green lease is where building owners and tenants collaborate
to reach voluntary agreements with regards to energy saving
and other measures to reduce environmental burdens of realestate as well as improvements of indoor environments
through contracts, memorandums of understanding and suchand implement the contents of these agreements.
This time, we implemented LED conversion work for the entire
building at the expense of KDR, and the operator will pay KDR
a portion of the estimated cost savings from the reduction of
the operators' electricity usage fees and electric blub
replacement costs as the rent.

The operation costs can be reduced, and KDR increases income fromassets under management, so it is a very win-win initiative for both theoperator and KDR. This will also lead to ESG initiative and we are in
consultation with operators to realize the second and third round ofgreen lease. (Hamano, KFM Residential REIT Department, AssetManagement Division)
In healthcare facilities, we have not only implemented LED conversion
work, but also renovating common areas such as entrances, toilets,bathrooms.
"Not only from the perspective of maintenance and management, butalso by grasping the needs of operators and carrying out renovations
that fit the needs of the current nursing care field, we will support theoperation of the facilities. By increasing added value and making thefacilities become more attractive, we will improve the competitivenessof them in the market. Through highly public-interest healthcare
facilities asset management, we will fulfill our responsibilities as a REIT
toward realizing a sustainable social system (sustainability). (Hamano)Ten

4Overview of Newly acquired properties

Newly acquired properties for the 16th fiscal periods
T-86

KDX Residence Asagaya Ⅱ

Single type residence located along the highly popular Chuo Line with convenience of living andtransportation
Information

Since there are many jazz cafe and clubs
with live music in Asagaya, the Asagaya
Jazz Street festival is held every year. In
addition, the Asagaya Pearl Center, oneof the largest shopping districts in Tokyo
that stretches over 700 meters, holds
the Asagaya Tanabata Festival every
summer, making it a city with highcultural attractiveness.

KDX Residence
Asagaya Ⅱ

Newly acquired (planned) properties for the
17th and 18th fiscal periods
T-85

KDX Residence Hatagaya

T-87

Single residence with convenience for transportation andlifestyle located in central Tokyo

Small Family

Acquisition Date February 27, 2020

Access6 minutes’ walk from
Hatagaya Station on the
Keio New Line

Acquisition Date February 27, 2020
Location

6 minites’ walk from
Gakugeidaigaku
Station on the Tokyu
Toyoko Line
Completion date April 2003

Leasable
87 unit s (including
number of units s t ore )Leasable number 23 unit sof units
Acquisition Price ¥750 million

Acquisition Price ¥ 2,500 million

KDX Residence Sendai Station East

Newly built single residence located within walking distance of
Sendai Station, the largest terminal in the Tohoku region
Daily convenience
SingleMeguro-ku, Tokyo

AccessCompletion date January 2002

R-46

KDX Residence Gakugeidaigaku

location prestige

SingleShibuya-ku, Tokyo

Acquisition Date October 29,2019
Location
Sugunami-ku, Tokyo
4 minutes’ walk from
Asagaya Station on the
Access
JR Chuo Line, andapproximately a 4minute walk from
Minami-Asagaya Stationon the Tokyo Metro
Marunouchi Line
Completion date August 2006
Leasable number 32 unit sof units
Acquisition Price ¥ 939 million

Residential property for small families located in high-end
residential districts along the Tokyu Toyoko Line

Daily convenience

Location

Daily convenience
Small Family

T-88

KDX Residence Kamata-minami

Single residential property in the area where corporate demandis expected from workers related to Haneda Airport
Existence of special markets
SingleAcquisition Date March 2, 2020

Acquisition Date February 27,2020
Location

Sendai-city Miyagi

Ota-ku, Tokyo

7 minutes’ walk from Sendai
station on the JR Tohoku
Main Line etc.,
Completion date February 201910 minutes’ walkfrom Zoushiki Stationon the Keihin Kyuko
Main Line
Completion date February 2020

Leasable number 88 unit sof units
Acquisition Price ¥ 1,340 million

Leasable number 80 unit sof units
Acquisition Price ¥1,918million

Access4

Location
Access5

T-84

KDX Residence Nishi-Funabashi

Single residence with excellent access to central Tokyo near the terminal station available for 5 rail routes
Information
KDX Residence
NishiFunabashi

Daily convenience
SingleNishi-Funabashi Station, the nearest station, is
one of Japan's leading terminal stations with fiveroutes from three railway companies. In 2018, theaverage number of passengers on JR routes per
day was ranked No. 1 among the stations in Chiba
Prefecture. There are commercial facilities, suchas the Perrier Nishi-Funabashi and NishiFunabashi Metropia, on the premises of thestation, and there are approximately 30 specialty
stores in operation.
Acquisition Date

September 17, 2019

Location

Funabashi-shi, Chiba

4 minutes’ walk from Nishifunabashi Station on the Sobu
Main Line, Tokyo Metro Tozai Line,etc.,
Completion date January 2011
Access

Leasable number of 57 unit s
units
Acquisition Price ¥ 975 million

T-89

KDX Residence Kichijoji

T-90

Newly built single residence in the populararea where the commercial and residential
environments are in harmony
Small Family
location prestige
Acquisition
Date
Location

KDX Residence Mitaka

Newly built family residence located in thearea with a high level of cultural and natural
climateSmall Family
location prestige
Acquisition
Date
Location

March 13, 2020

Musashino-shi,Tokyo
14 minutes' walkfrom Kichijoji Station
Accesson the Keio
Inokashira Line and
the JR Chuo Line
Completion February 200
date
Leasable
21 unit snumber ofunits
Acquisition¥62 million
Price

A-1

AccessJune 30, 2020
Mitaka-shi, Tokyo
11 minutes' walkfrom Mitaka Stationon the JR Chuo Line

Completion May 2020
date
(Scheduled)
Leasable
51 unit snumber of (I ncludingunits
s t ore /office )(s che dule d)Acquisition¥2,530 million
Price

HOTEL LiVEMAXTokyo-Otsuka-Ekimae

A-2

Hotel specializing in accommodations located near Otsuka
Station, which has good access to the city center

T-91

KDX Residence Nakanobu

Single residence in the favorable location withexcellent access to urban centers andconvenient living facilities
SingleDaily convenience
Acquisition
Date
Location

Shinagawa-ku,
Tokyo
3 minutes' walkfrom Ebaramachi
AccessStation on the Tokyu
Oimachi Line
Completion May 2008
date
32
Leasablenumber of unit s (I ncludings t ore )units
Acquisition¥ 830 million
Price

HOTEL LiVEMAXYokohamaeki-Nishiguchi

Hotel specializing in accommodations located in the area withgood access to business and tourist areas

Fixed rent
Acquisition Date March 2, 2020
Location

Toshima-ku, Toky

3 minutes' walk from
Otsuka Station on the
Access
JR YamanoteLine
Completion date October 2018
Leasable number 74 roomsof units
Acquisition Price ¥2,390 million

August 3, 2020

Fixed rent
Acquisition Date

March 2,2020

Location

Yokohama-shi, Kanagawa

Access8 minute’s walk from
Yokohama Station on the
JR Tokaidou mainline etc.,

Completion date

January 2018

Leasable number of 123 room sunits
Acquisition Price ¥2,570 million

6

Sustainability

Initiatives for Environment
Certification for residential assets

Certification for healthcare assets▼

DBJ Green Building Certification(1)▼★：New (March 2020)

BELS Certification

12 residential properties are certificated
KDX Daikanyama Residence★

KDXResidence Higashi-sakura I★

Plaisant Grand Ota tamagawa
KDX Sakaisuji
Hommachi Residence★

BELS (Building-Housing Energy-efficiency Labeling System)
is the third-party certification system to rate houses andbuildings in accordance with duty to make effort to label
energy saving performance in the Act on Improving
Energy Consumption Performance for Architectural
Structures.

KDX Residence
Hommachibashi ★

▼KDX Residence Ohori
Harbor View Tower ★

KDX Residence Ebisu

CASBEE Certification

Ashiya Royal Homes

KDX Residence Hanzomon

KDX Residence Yotsuya

Serenite Kobe Motomachi
KDX Residence Shukugawa Hills

Excellent Nishinomiya

KDX Residence Toyosu

Self-assessment based on CASBEE was carried out
in November 2015, and notification was submitted
to Nishinomiya City.

GRESB Real Estate Assessment

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

The Investment Corporation participatesin GRESB Real Estate Assessment from2016 and acquired “Green Star” rating in
2019. (Rating is “2 Stars”)
GRESB (Global Real Estate Sustainability
Benchmark) is a benchmark to evaluatesustainability performance of private and listed realestate portfolio, etc. from environmental and social
perspectives.

Issuance of Social Bonds◼ KDR became the first J-REIT to issue social bonds

First by a
J-REIT

Note 1:“DBJ Green Building Certification” is a systemestablished by Development Bank of Japan in April
2011 to support real estate that meetsenvironmental and social conditions.

Summary of Social Bonds

Maturity

10 years◼ Received “Social 1 (F),” the highest rating of the “JCR Social Finance
Framework Assessment”

Issue size

¥2 b i l l i o n

◼

Yield

Providing an opportunity for investors who want to make ESG
investments has attracted a broader range of new investors anddiversified fund procurement channels

0.75 ％

OthersEstablishment of Share Cycle Station

LED Lights in Common Areas(2)Total(after 2015)

Number of properties
introduced 5 props
To provide services for residents
and neighboring residents andto reduce environmental impact,
KDR provide part of the propertysite as a base for the rental cycle.

Property

5 9 props

Expense¥ 9 5 . 8 mln

Annual reduction¥ 2 6 . 0 mln(Note 2) "Annual savings" is the estimated figure based on the proposal materials received from the construction company at the time of replacement
work.

7

Overview of Portfolio

Hokkaido

Percentage ofproperties
owned by area

7 props 3.2％

Aomori,Akita：Residential：Healthcare：Hotel：OtherOsaka metropolitan area

2 props 0.9％

Total

Osaka,Kyoto,Hyogo,Shiga

152 props

29 props
22.2％

Miyagi3 props 1.2％
Fukuoka

6 props

Tokyo Metropolitan Area

4.0％

Tokyo, Kanagawa, Saitama, Chiba

Aichi

6 propsHiroshima

1 prop 0.2％

98

props

64.4 ％

3.9％

Portfolio Breakdown
Residential Facilities

Healthcare Facilities

Room type

Facility type
Accommodations
Other
0.7% (1 prop.) 2.0%（2 props.）

Family21.7%

Studio39.9%

Other Regional
Areas

11.3%

Healthcare
Facilities

Residential
Facilities

Others2.5％

21.7%(24 props.)

75.6%(125 props.)

Tokyo Metropolitan
Area

41.3%

Small Family

38.4%

Osaka Metropolitan
Area

Use

44.9%

Entire Portfolio

Area

Area

Three Major
Metropolitan Area

86.1%

Other
Regional Areas

30.2%

Nursing and health facilities

Tokyo Central
8 Wards

21.5% (5 props.)

37.9%
Other Tokyo
Metropolitan Area

Tokyo Metropolitan
Area

9.4%

69.8%

Other Tokyo 23 Wards

22.5%

Serviced senior housing
2.5% (1 prop.)
Private senior homes (residential)

7.2%(4 props.)

Private senior homes(with nursing care)

68.7%(14 props.)

Note : Including the ratio of the to-be acquired assets by August 2020, which are already scheduled for as of the date of this material.

8

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

KDR unit price(¥)
230,000
220,000
210,000
200,000

Nov.10,2017
Announcem
ent ofmerger190,000

TSE REIT index

Jul.13 , 2018
Announcementof the 4th PO

TSE residential■Volume (right)
REIT index（unit)
45,000

Sep.7 , 2018
Announcement of inclusion
in index
Feb.4 , 2019
Announcement of
the 5th PO

40,00035,00030,00025,000Mar.1 , 2017
Completion ofmerger

180,000

20,000170,000

15,000160,000

10,000150,000

5,000
0Note 1:
Note 2:

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

Composition of Unitholders (based on number of units)
16th Fiscal period
907,458 units
15th Fiscal period
907,458 units■ Individuals and others■ Foreign companies■Financial institutions■ Other domestic companies■ Security firms

7.7 %

66.8 %

17.8 %

3.2%

4.5%

8.9 %

64.7 %

19.3 %

3.4%

3.7

%

9

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

Sompo Care Inc.
Ⅰ. Sompo Care LAVIERE・≪On the condition of lump sum payment≫3% discountfrom the initial lump sum payment for resident・≪On the condition of monthly payment≫3% discountof the amount equivalent to the rent out of the monthly
payment (Until the contract ends)● Same-day facility site-visit (with lunch) free of charge

Unitholder and his / her spouses and his / her relatives(within the second degree) ※A resident of the requested
healthcare facility and an use in conjunction with otherdiscount system are ineligible.
All of the private senior homes with nursing care
operated by Seikatsu Kagaku Un-Ei Co., Ltd. as ofJanuary 31,2020.

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

The No. of 25 facilities
Facilities
Area
Contact
No.

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

Property N/Aowned byKDR
Homepage http://www.seikatsu-kagaku.co.jp/
CENTURY LIFE CORPORATION
Benefits● Same-day facility site-visit (with lunch) free of charge

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

Facilities
Available

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

The No. of 10 facilities
Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Osaka

Contact
No.

+81-120-580-731

Eligible
PersonUnitholder and his / her spouses and his / her relatives(within the second degree)※A user who has inquired this benefit through agencies,a resident of the requested healthcare facility and an use
in conjunction with other discount system are ineligible.
Ⅰ. Sompo Care LAVIERE operated by Sompo Care Inc asof July 31,2019. (Excluding short-term use)
Ⅱ. Sompo Care Sompo no ie, Sompo no ie S, Sompo noie GH, Private senior homes (residential), Serviced
Facilities
Availablesenior housing, Group homes operated by Sompo
Care Inc. as of January 31,2020. (Facilities for shortterm use and Facilities operated by its franchisees andoperating partners are excluded.)
The No. of 426 facilities
Facilities
Hokkaido, Iwate, , Miyagi, Akita, Saitama, Chiba, Tokyo,
Kanagawa, Shizuoka, Aichi, Kyoto, Osaka, Hyogo, Nara,
Area
Okayama, Hiroshima, Fukuoka, Kumamoto
Contact
No.

+81-120-155-703

Property N/Aowned by
KDR

Property Sompo Care LAVIERE Kobe Tarumi
owned byKDR

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

Homepage https://www.sompocare.com/

SENIOR LIFE COMPANY● ≪On the condition of limp sum payment≫Discounton lump sum payment for resident ( ¥ 300,000
discount)
Benefits● Trial residence free of charge (1-night, 2-day stay, withdinner and breakfast)● Same-day facility site-visit (with lunch) free of charge

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

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

Tokyo, Fukuoka

Contact
No.

+81-120-678-723

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

HITOWA Care Service Co., Ltd.
Benefits

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

Unitholder and his / her spouses and his / her relatives(within the second degree)※A resident of the requested healthcare facility and an
application through agencies are ineligible
All of the private senior homes with nursing care
operated by HITOWA Care Service Co., Ltd as of January
31,2020.

The No. of 112 facilities
Facilities
Hokkaido, Miyagi, Saitama, Chiba, Tokyo, Kanagawa,
Area
Nagano, Aichi, Hyogo, Okinawa
ContactNo.

+81-3-6632-4306

Property
owned byKDR

Irise Kamata/Yuseien , Irise Nishioka,
Izarie Eniwa Building

Homepage http://www.irs.jp/

10Nichii Carepalace Company

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

Benefits● Trial residence free of charge (1-night, 2-day stay, with

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

Facilities
Available

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

discount)● Trial residence free of charge, up to three times (1-night, 2-

dinner, lunch and breakfast)

The No. of 74 facilities
Facilities
Area

Tokyo, Saitama, Chiba, Kanagawa, Shizuoka

Contact
No.

+81-120-555-800

Property
owned by
KDR

Nichii Home Nakano-Minamidai, Nichii Home Tama Plaza

Homepage http://www.nichii-carepalace.co.jp/
Sawayaka Club Corporation● 10% discount on usage charge for the first monthly

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

Benefits

day stay, with dinner and breakfast)● Same-day facility site-visit(with lunch) free of charge (upto threetimes)
Unitholder and his / her spouses and his / her relatives
Eligible(within the second degree)
PersonFacilities Joy Stage Hachioji
Available
The No. of
Facilities

1 facility

Area

Tokyo

Contact
No.

+81-120-38-0161

Property
owned byKDR

Joy Stage Hachioji

Homepage

http://www.joystage.com/● Same-day facility site-visit(with lunch) free of charge

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

Facilities
Available

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

The No. of 72 facilities
Facilities
Hokkaido, Akita, Tochigi, Saitama, Chiba, Kanagawa,Niigata, Shizuoka, Aichi, Mie, Kyoto, Osaka, Hyogo,
Area
Ehime, Wakayama, Fukuoka, Oita
Contact
No.

+81-120-958-490

Property
owned by
KDR

Sawayaka Sakura Nibankan

Homepage http://www.sawayakaclub.jp/
Excellent Care System Co., Ltd.
Benefits
Eligible
PersonFacilities
Available● Same-day facility site-visit (with lunch) free of charge

Unitholder and his / her spouses and his / her relatives(within the second degree)※A resident of the requested healthcare facility and an use
in conjunction with other discount system are ineligible.
All of the private senior homes with nursing care operated
by Excellent Care System Co., Ltd. as of January 31,2020.

The No. of 15 facilities
Facilities
Area

Tokyo, Kanagawa, Kyoto, Hyogo, Tokushima

Contact
No.

+81-44-819-5107

Property
owned byKDR

Excellent Nishinomiya, Excellent Kitano

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

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

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

Facilities
Available

All of the private senior homes with nursing care
operated by CARE TWENTYONE CORPORATION as ofJanuary 31,2020.

The No. of 38 facilities
Facilities
Tokyo, Saitama, Chiba, Kanagawa, Aichi, Kyoto,
Area
Osaka, Hyogo, Hiroshima
Contact
No.

+81-120-944-821

Property
owned by
KDR

Plaisant Grand Ota tamagawa

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

11

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

General Outline of the Unitholder Benefit Program
1.Eligible Unitholder

Unitholders stated or recorded on the unitholders’ register of the Investment Corporation as ofJanuary 31, 2020 are eligible for the unitholder benefit program.

2 Contents

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

3 .Method for the
Use of Benefits

Please present Semi-annual Report for the fiscal period ended January 2020 (16th fiscal
period) and the paper setting forth the name, address, etc. of the unitholder or dividend
receipts, which are enclosed in the Semi-annual Report, to the healthcare facility.

4 .Validity Period

October 30, 2020

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

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

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

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

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

12

II.

Asset management report

1. Outline of asset management operation(1)

Operating result and financial position
Fiscal period

Unit

12th

13th

14th

15th

16th

From Aug. 1, 2017

From Feb. 1, 2018

From Aug. 1, 2018

From Feb. 1, 2019

From Aug. 1, 2019

to Jan. 31, 2018

to Jul. 31, 2018

to Jan. 31, 2019

to Jul. 31, 2019

to Jan. 31, 2020

Operating result

Operating revenues

mil.yen

5,681

7,097

7,823

8,136

8,066

(Rental revenues)

mil.yen

5,671

6,655

7,605

7,933

8,027

Operating expenses

mil.yen

2,791
2,107

3,657

3,610

3,777

3,806

2,554

2,794

2,915

2,911

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

mil.yen

2,889

3,439

4,213

4,358

4,260

Ordinary income

mil.yen

2,353

2,842

3,599

3,741

3,614

Net income

mil.yen

2,352

5,416

3,598

3,741

3,613

Total asset

mil.yen

176,813

213,558

245,103

254,965

256,665%(＋5.7)(＋20.8)（＋14.8）（＋4.0）（＋0.7）

Interest-bearing debt

mil.yen91,130106,130

123,250

125,900

127,650

Unitholders’ equity

mil.yen82,65098,745111,951

118,541

118,500%(＋0.1)(＋19.5)（＋13.4）（＋5.9）（-0.0）

80,132
3,152
58.2

93,226
3,510
97.6

99,731
3,687
98.5

99,731
3,687
102.1

782,928

869,133

907,458

907,458(period to period change)Asset(period to period change)
Unitholders’ capital

mil.yenTotal distribution

mil.yenDistribution per unit

Dividend payout ratio (Note 2)%

80,132
2,424
103.1

Number of investment units issued
and outstanding

unit

349,089

Net income per unit

(Note 3,4)

yen

3,369

7,036

4,143

4,142

3,981

Unitholders’ equity per unit (Note 3)

yen

118,379

126,123

128,807

130,630

130,584

Distribution per unit

yen

6,946

4,026

4,039

4,063

4,064

Profit distribution

yen

6,946

4,026

4,039

4,063

4,064

Distribution in excess of profit

yen

－

－

－

－

－

Return on assets (Note 5)

%

1.5

1.6

1.5

1.4

Annualized (Note 6)

%

1.4
2.7

2.9

3.1

3.0

2.8
3.0

Return on net assets(Note 7)

2.8
5.6

6.0

3.4

3.2

12.0

6.5

6.0

46.7

46.2

6.8
45.7

46.5

46.2

(-2.6)(-0.5)（-0.6）（＋0.8）（-0.3）

%

51.5

49.7

50.3

49.4

49.7

FFO
(Funds from Operation)

mil.yen

3,295

6,126

4,750

4,948

5,023

FFO per unit (Note 3,10)

yen

4,720

7,824

5,466

5,453

5,536

mil.yen

4,486

5,245

6,154

6,408

6,545

%

5.4

5.5

5.5

5.5

5.5

mil.yen

4,199

4,808

5,539

5,796

5,888

Annualized (Note 6)%%

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

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

Leasing NCF(Net Cash Flow)

Annualized NCF yield(Note 6,14)

Number of properties

%

5.1

5.0

5.0

5.0

5.0

properties

115

129

138

143

144

Reference

Leased units (Residential)

unit

7,646

7,552

8,017

8,080

8,148

Total leasable floor area (Note 15)m²

303,608.43

410,556.41

467,606.17

491,050.34

490,988.55

Occupancy ratio (Note 15)

%

97.0

97.6

97.7

97.5

97.6

Depreciation expenses

mil.yen

921

1,144

1,343

1,391

1,428

Capital expenditures

mil.yen

286

436

614

612

656

(Note 1)
(Note 2)

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

13

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

Net income for 13th fiscal period include negative goodwill of 2,574 million yen.
The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective date as ofMarch 1, 2018. “Net income per unit”, “Unitholders’ equity per unit “ and “FFO per unit “ are calculated subjected for the Investment
Corporation investment units to be split on August 1, 2017.
Net income per unit is calculated by dividing the net income by weighted average of number of investment units
Return on assets ＝Net income /｛(Total assets at the beginning of period + Total assets at the end of period)/2｝×100
Annualized values for the 12th fiscal period are calculated based on a period of 181 days, 181 days for 13th fiscal period, 184 days for
14th fiscal period, 181days for 15th fiscal period, 184 days for 16th fiscal period.
Return on net assets ＝Net income / {(Total net assets at the beginning of period + Total net assets at the end of period) /2} ×100
Interest-bearing debt ratio of assets ＝Interest-bearing debt at the end of period / Total assets at the end of period×100
FFO＝Net income + Depreciation expenses + Amortization of deferred assets - Gain on sale of real estate property + Loss on sale of realestate property. Net income for 13th fiscal period include negative goodwill of 2,574 million yen.
FFO per unit ＝FFO／Number of investment units issued and outstanding(rounded down to unit)
Leasing NOI＝Rental revenues －Expenses related to rent business＋Depreciation expenses
Annualized NOI yield＝Annualized NOI／Total acquisition prices of properties ×100
Leasing NCF＝ Leasing NOI－Capital expenditures
Annualized NCF yield ＝Annualized NCF／Total acquisition prices of properties ×100
Figure and ratio include for land with leasehold interest.

14

（2）Outline of asset management operation for the 16th fiscal period(ⅰ) Outline of the history of the Investment Corporation
Kenedix Residential Next Investment Corporation (the “Investment Corporation”) was established on November 15,
2011 under the Act on Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On
April 26, 2012, the Investment Corporation was listed on the Real Estate Investment Trust Market of the Tokyo
Stock Exchange (Securities Code: 3278).
The Investment Corporation subsequently issued new investment units through three public offering and by way ofthird-party allotment to expand its market capitalization and steadily grow its asset size.
Moreover, seeking further growth opportunities, the Investment Corporation conducted an absorption type merger(“the Merger”) with the Investment Corporation as the surviving corporation and Japan Senior Living Investment
Corporation (“JSL”) as the absorbed corporation on March 1, 2018, and changed its name from Kenedix Residential
Investment Corporation to Kenedix Residential Next Investment Corporation.(Following the merger, the Investment
Corporation implemented a 2-for-1 investment unit split with an effective date of March 1, 2018.)
Even after the merger, the Investment Corporation issued new investment units through two public offerings and by
way of third-party allotment. As of the end of the 16th fiscal period, the Investment Corporation owns a total of 144
real estate properties (total acquisition price: 234,766 million yen (Note 1)) consisting of 119 residential facilities suchas rental housing, 24 healthcare facilities such as private senior homes with nursing care, and 1 other property (landwith leasehold interest) and the total number of investment units issued and outstanding is 907,458 units. Most
recently, the Investment Corporation issued new investment units through the third public offering after the merger
to expand its market capitalization and steadily grow its asset size.
The Investment Corporation entrusts the asset management to Kenedix Real Estate Fund Management, Inc. (the“Asset Management Company”), a company that was formed with personnel from Kenedix, Inc. and adheres to thecore philosophies of Kenedix, Inc. The Asset Management Company provides real estate investment management
services with flexibility and agility unique to a J-REIT (Note 2) sponsored by an independent real estate managementcompany by flexibly pursing optimal investment opportunities and income opportunities and agilely investing andmanaging based on swift information gathering and decision-making while accurately grasping real estate-related
trends.
（Note 1）“Acquisition price” is the sales price of each trust beneficiary interest or real estate indicated in each trust beneficiary interest
sales contract and real estate sales contract concerning the owned assets (excluding acquisition costs, adjustment in property tax
and city-planning tax, and consumption tax) and is rounded down to the nearest million yen. The appraisal value as of March 1,
2018 is indicated as the acquisition price for assets succeeded by JSL due to the merger. The same applies hereinafter.
(Note 2) "J-REIT" is an investment corporation listed on the real estate investment trust of the Tokyo Stock Exchange.

(ⅱ) Investment Environment
During the 16th fiscal period, the Japanese economy was partly weak in exports and production activities, affectedby overseas economic trends, such as the slowdown in the Chinese economy. However, domestic demand has beenon an increasing trend, as consumption has continued to pick up due to a favorable employment and income
environment and a high level of corporate profits, and capital investment has also been on an upward trend. The
Japanese economy is expected to continue to recover moderately, given that the fundamentals supporting domestic
demand are favorable. On the other hand, it is necessary to pay attention to the impact on the world economy of thecontinuing moderate slowdown in the Chinese economy, the trade issues between the United States and China, theimpact of external factors such as political unrest in the middle east region, and increasing uncertainty due to novel
viruses on the global economy, as well as the possibility of future volatility in the financial and capital markets.
In the rental housing market, the occupancy rates and rent levels of the rental apartment buildings in which theInvestment Corporation invests remain high. Given that metropolitan areas continue to experience population
growth while rental apartment supplies remain low, a favorable supply-demand environment is expected for theseareas in the future.
Concerning the environment surrounding healthcare facilities, with one of the longest average life expectancies forboth men and women, Japan now has a super-aging society (Note) which no other country has ever experienced, andthe “aging,” or the increase in the ratio of the elderly population against total population and the increase in elderly
population itself, is expected to continue going forward. In response to such trends, the number of senior carefacilities such as private senior homes with nursing care and serviced senior housing has been on the rise in recent
years. The Investment Corporation believes that demand for senior care facilities, including nursing care facilities,
will continue to increase.

15

The Investment Corporation continue to see active investment activity in the real estate investment markets on thepart of both Japanese and overseas investors.
With The Bank of Japan’s aggressive monetary easing measures in the background, active transaction are expected
to continue in real estate market; however, due to the ongoing harsh property acquisition environment, expected
yield is likely to remain at a low level.
In the real estate trading market, investors in both Japan and overseas are expected to continue their active real estatetransactions against the backdrop of accommodative monetary policy and other factors. However, the expected yieldis likely to remain at a low level due to the continued harshness of the property acquisition environment.
(Note) “Super-aging society” refers to a society with a population aging rate (ratio of the elderly population aged 65 or over against total
population) exceeding 21%, as defined by the World Health Organization and the United Nations.

(ⅲ) Operating Results(A) Acquisition and sale of assets
The Investment Corporation comprehensively taking into account the composition of the entire portfolio,
earnings power in the future, etc., the Investment Corporation acquired 2 residential properties (total acquisition
price: 1,914 million yen) and sold 1 residential property (acquisition price: 400 million yen / sold price:480
million yen).
＜Acquired assets＞

Property number

Property name

T-84

KDX Residence Nishi-Funabashi

T-86

KDX Residence Asagaya II

Residential

Acquisition price（million yen）（Note）
975
939

Total

1,914

＜Sold assets＞

Property number
R-34

Property nameSold price（million yen）

Melody Heim Gotenyama

480（Note）(Note) “Acquisition Price” and “Sold Price” are the sales amount of each trust beneficiary interest (excluding acquisition costs,
property tax, city planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning
the acquired assets and sold assets, and are rounded down to the nearest million yen.

As a result of the above, as of the end of the 16th fiscal period, the Investment Corporation owned a total of 144
properties (total acquisition price: 234,766 million yen), which consist of 119 residential properties (acquisition
price: 178,887 million yen), 24 healthcare facilities(acquisition price: 54,128 million yen) and 1 other property(land with leasehold interest; acquisition price: 1,750 million yen).

（B）Management and Operation of Assets
With respect to residential, the Investment Corporation managed our real estate holdings with the aim ofachieving stable and optimal performance by working with a property management company (“PM Company”)
that operates and manages properties, which were selected through a multifaceted approach of taking into
consideration the region, location and city, rent range, tenant type (corporate or individual) and other various
characteristics .
Moreover, the Investment Corporation strove to partner with leading real estate companies with a strong local
presence and bolster the PM Company’s efficient leasing activity. We also ensured that soliciting conditions took
into consideration the characteristics and occupancy levels of individual properties; carried out efficient
advertising efforts utilizing the power of the KDX Residence brand; utilized leasing agents; and implemented
flexible sales activities attuned to the characteristics of each of the properties in accordance with plans.
Specific measures that contributed to improvement in revenue at the rental business are as follows: with respect
to properties with stable and robust occupancy conditions, the Investment Corporation strove to raise rent levels
for and obtain key money from new tenants; raise rents when leases were renewed; increase revenue associatedwith auxiliary facilities; and improve the parking contract rate; and as measures to slash rental business expenses,

16

we reduced utility bills by switching the electricity supplier for common areas; changed the lighting in common
areas to LED; and reviewed the contracts for auxiliary facilities, as well as solicitation costs, etc., in order toimprove income and expenditures.
Moreover, with the aim of maintaining and/or improving the market competitiveness of our portfolio assets, theInvestment Corporation undertook planned major renovation work at five properties, updating work in common
areas as well as value-increasing work and facility updates in individually-owned areas.
The Investment Corporation continued to introduce LED lighting to common areas as part of our environmental
efforts, and obtained 7 properties of DBJ Green Building Certification from external rating agencies in the endof the 16th fiscal period (January 31, 2020).
As a result of the above, the occupancy rate for residential facilities was 96.4% as of the end of the 16th fiscal
period (January 31, 2020). The average occupancy rate for residential facilities during the 16th fiscal period was
96.2%, which was as high level as the previous fiscal period.
As a specific measure contributing to the maintenance and improvement of revenue at the rental business forhealthcare facilities, the Investment Corporation visited facilities to confirm their operating status, including
revenues, expenditures, and occupancy rates, and made inquiries to facility managers while also inquiring aboutbusiness conditions, future management policies, etc. through interviews with operation managers, etc. as part ofoperator monitoring activities.
In addition to major renewal construction, the Investment Corporation also implemented green lease as part ofour sustainability initiatives at one facility during the 16th fiscal period.
The green lease is a beneficial initiative for both the Investment Corporation and the tenant, as it leads to a
reduction in the cost burden of the tenant in addition to a reduction in the environmental burden, and theInvestment Corporation intend to actively consider introducing green leasing in the future.
As a result of the above, the occupancy rate for healthcare facilities was 100% as of the end of the 16th fiscal
period (January 31, 2020). The occupancy rate for the entire portfolio including land with leasehold interest was
97.6% as of the end of the 16th fiscal period (January 31, 2020).

（C）Financing
The Investment Corporation procures funds with the aim of medium- to long-term stable earnings and sustained
growth of portfolio assets, taking into consideration the balance between financial stability and financing costs.
(Borrowing)
The Investment Corporation newly borrowed 1,950 million yen as funds for acquisition of new properties aswell as 5,000 million yen as funds for repaying borrowings of which repayment was due during the 16th fiscal
period. On the other hand, the Investment Corporation conducted partial prepayment of 2,000 million yen usingpart of funds procured through the issuance of investment corporation bonds as funds for repayment.
As a result of the foregoing, the average remaining term of interest-bearing debt (Note 1) was 4.2 years, and theaverage interest rate at the end of the 16th fiscal period (Note 2) was 0.98%. The long-term debt ratio (Note 3) cameto 89.5%, the fixed interest-rate ratio (Note 4) was 97.1%, and the loan to value ratio (LTV) came to 49.7%.
(Note 1)
(Note 2)

(Note 3)(Note 4)

It is calculated by weighting and averaging the remaining term of each interest-bearing debt according to the balance ofeach interest-bearing debt and rounded off to decimal place.
The average interest rate of each interest-bearing debt was calculated taking into account the upfront fee (per annum) andinterest rate swaps, etc., and the weighted average was calculated in accordance with the balance of each interest-bearingdebt.
Long-term debt ratio = (balance of long-term borrowings (excluding long-term borrowings to be repaid within one year)+ balance of investment corporation bonds) ÷ (balance of borrowings + balance of investment corporation bonds)
The long-term debt ratio that includes long-term borrowings to be repaid within one year is 97.4%.
The fixed interest-rate ratio = (balance of fixed interest-ratio borrowings (including borrowings for which interest rates
are substantially fixed through interest rate swap transactions, etc.) + balance of investment corporation bonds) ÷ (balanceof borrowings + balance of investment corporation bonds)（Investment Corporation Bonds）
During the 16th fiscal period, the Investment Corporation issued the following 2,000 million yen of investment
corporation bonds (Social bond). Consequently, the outstanding debt balance totaled 5,000 million yen.
The issuance of social bonds was the first case in J-REIT, the fund was fully used for repayment of borrowings
procured for the purpose of appropriating funds for the acquisition of social eligible assets (Note 1).

17Name of investment
corporation bonds
Sixth Series Unsecured
Investment Corporation
Bonds (Social Bond)

Issuance date

December 20, 2019

Balance as ofJanuary 31,
2020(million yen)Interest
rate（％）

Maturity date

RedemptionmethodRemarks

2,000

0.750

December 20, 2029

Full onmaturity（Note2）（Note）Assets eligible for social finance refer to assets fulfilling the following eligibility criteria.

Senior living facilities

Medical facilities

・Private senior homes
・Serviced senior housing
・Apartments for the elderly
・Group homes for elderly with cognitive
impairment
・Small multi-function facilities
・Daycare facilities, etc.
・Hospitals
・Clinics
・Medical malls
・Nursing and health facilities, etc.

（Note 2）Ranking pari passu among the specified investment corporation bonds（Credit Ratings)
The status of the credit ratings as of the end of the 16th fiscal period (January 31, 2020).
Credit Rating Agency
Japan Credit Rating Agency, Ltd.(JCR)

Type
Long-term issuer rating
Bond rating

RatingA+ (Outlook : Stable)A+（Shelf Registration)
The Investment Corporation filed a shelf registration statement regarding investment corporation bonds(excluding short-term investment corporation bonds) on June 28, 2018 with the following overview.
Planned issuance
100,000 million yen
amountPlanned issuance
From July 6, 2018 to July 5, 2020
periodFunds for acquiring specified assets (having the meaning as set forth in the Act on
Investment Trusts and Investment Corporations, Article 2, Paragraph 1); funds for
Use of proceeds
repaying borrowings; funds for redeeming investment corporation bonds (including
short-term investment corporation bonds; funds for returning deposits); funds forpaying for repairs and maintenance, etc.; operating capital, etc.
The Investment Corporation issued 1,000 million yen of the Fourth Series Bonds, 1,000 million yen of theFifth Series Bonds on November 30, 2018 and 2,000 million yen of the Sixth Series Bonds on December 20,
2019 based on the above shelf registration.

18

(ⅳ) Overview of Financial Results and Cash Distribution
As a result of these management efforts, the Investment Corporation reported total operating revenues was 8,066
million yen, operating income was 4,260 million yen, ordinary income was 3,614 million yen and net income was3,613 million yen for the 16th fiscal period.
In regard to profit distributions for the 16th fiscal period, pursuant to the distribution policy in the Investment
Corporation’s articles of incorporation, the Investment Corporation has decided to apply special provisions of thetax system for investment corporations (Act on Special Measures Concerning Taxation (Act No. 26 of 1957; asamended) (“Act on Special Measures Concerning Taxation”), Article 67-15) and make distribution of 3,687,909,312
yen, which is net income plus a portion of profit carried forward to the previous fiscal year and reversal of reserve
for temporary difference adjustment, as profit distribution.
If gains on sale of properties occur in the future, the Investment Corporation will consider whether internal reservefor gain on sale of real estate, etc. is necessary.

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

Date
February 4, 2015
March 4, 2015
March 1,2018
March 1,2018
August 1, 2018
August 29, 2018
February 20, 2019
March 11, 2019

Capital transaction
Public offering
Third-party allotment
Investment unit split
MargerPublic offering
Third-party allotment
Public offering
Third-party allotment

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

Remark

67,900347,022

22,33079,452

2,067

349,089679

80,132

349,089

698,178―

80,13284,750782,928―

80,132

82,100865,028

12,47092,602

4,105

869,133

623

93,22636,500905,633

6,195

99,421

1,825

907,458309

99,731(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 1) New investment units were issued at a price of ¥340,762 per unit (subscription price of ¥328,879 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 2) New investment units were issued at a price of ¥328,879 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets and repayment of borrowings.
(Note 3) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective dateas of March 1, 2018.
(Note 4) In connection with the Merger, the Investment Corporation unit following the Investment Unit Split was allocated to every JSL
unit with 84,750 JSL units newly issued on March 1, 2018.
(Note 5) New investment units were issued at a price of ¥157,047 per unit (subscription price of ¥151,892 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 6) New investment units were issued at a price of ¥151,892 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets and repayment of borrowings.
(Note 7) New investment units were issued at a price of ¥175,500 per unit (subscription price of ¥169,740 per unit) through a public offeringin order to raise funds for acquiring new properties.
(Note 8) New investment units were issued at a price of ¥169,740 per unit through the third-party allotment in order to raise funds for futureacquisitions of specified assets.

【Changes in Unit Price at Tokyo Stock Exchange 】
The highest and lowest closing prices of the investment units listed on J-REIT section of the Tokyo Stock Exchange
for each fiscal period are as follows.
Fiscal period
For the fiscal period ended
Highest price
Lowest price12th Fiscal period
January 31, 2018

13th Fiscal period（Note）

329,500

July 31, 2018
172,800

274,800

148,400

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

16th Fiscal period
January 31, 2020

181,000

198,600

225,500

160,500

172,000

191,400(Note) The Investment Corporation investment units was split 2-for-1 on the reference date as of February 28, 2018 and the effective date asof March 1, 2018.Figures for the 13th fiscal period take into account the investment unit split.

19

（4）Distributions
The Investment Corporation intends to apply the corporate income taxation special provision (Act on Special
Measures Concerning Taxation, Article 67-15) that specifies deduction of an amount equivalent to profit distributions
as deductible expenses from an investment corporation’s taxable income, and in accordance with the distribution policy
set forth in the Investment Corporation’s certificate of incorporation, Article 38 (1), has decided to distribute 3,687,909
thousand yen as profit distribution from unappropriated retained earnings for the 15th fiscal period, which is the amountobtained by deducting a portion of gain on sale, etc. from the net income for the 16th fiscal period and adding thereversal of the Reserve for temporary difference adjustment.
As a result, distributions per unit for the 16th fiscal period amounted to 4,064 yen.
12th
13th
15th
16th
14th
From Aug.1, 2017 From Feb.1, 2018 From Aug.1, 2018 From Feb.1, 2019 From Aug.1, 2019
to Jul.31, 2019
to Jan.31, 2020
to Jan.31, 2018 to Jul.31, 2018 to Jan.31, 2019

Fiscal period

Unappropriated retained
earnings
Retained earnings(Thousand yen)

2,437,011

5,428,676

3,875,050

4,125,881

4,072,277(Thousand yen)

12,2392,276,608

384,622458,879

404,367

Total distribution(Distribution per unit)(Thousand yen)

2,424,772

3,152,068

3,510,428

3,687,001

3,687,909（6,946）（4,026）（4,039）（4,063）（4,064）

Profit distribution(Thousand yen)

2,424,772

3,152,068

3,510,428

3,687,001

3,687,909(Profit distribution per unit)(Yen)（6,946）（4,026）（4,039）（4,063）（4,064）

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

(Yen)

(Yen)

(Thousand yen)

(Yen)

(Thousand yen)

(Yen)

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

－

－

－

－

－

（－）

（－）

（－）

（－）

（－）

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

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

20

regional analysis taking into account location, etc.
In residential facilities, the Investment Corporation focuses on the potential earnings power of land and use“location prestige,” “location convenience” and “whether there is a special market” and other metrics to determine
investment opportunities providing rental income with medium- to long-term stability, and invests also in rental
residential facilties and other residential facilities located mainly in greater Tokyo and in Other Regional Areas(government-designed municipalities and other regional cities. The same applies hereinafter.) by discerning room
types where stable rent demand can be expected, in accordance with the locational characteristics after analyzing
the attractiveness of the land in detail.
In healthcare facilities and accommodations, the Investment Corporation judges investment opportunity
considering scale and characteristic of market, regional financial affairs and status of competitive facilities, etc.
and examines investment mainly in three major metropolitan area.
The Investment Corporation believes that it will be possible to acquire properties steadily by utilizing the“judgment capabilities” cultivated as a real estate investment management professional to select excellent
investment opportunities from a wide range of investment targets.
As a property acquisition channel, the Investment Corporation use not only the pipeline from Kenedix, Inc and
Kenedix Investment Partners, Inc. pursuant to the Memorandum of Understanding concerning Real Estate
Information Provisions dated October 1, 2013 (including the change after the date and calls “Support Line MOU”.
This Support Line MOU was used for i) residential facilities, ii and) healthcare facilities and iii) accommodations
and Residential REIT department is applied for those having a priority consideration right to responsible for theasset management of the Investment Corporation) but also leverage the Asset Management Company’s own
network, including Jyukyo Holdings Co., Ltd., with which a support agreement was executed on June 15, 2017
and Shinsei Bank, Limited, HASEKO Corporation, Mitsubishi UFJ Trust and Banking Corporation and LIXILGroup Corporation, with which a support agreement was executed on November 10, 2017 by the Merger, forflexible property acquisitions.
We also plan to control property acquisition timing in order to acquire properties at an advantageous timing inaccordance with the future market and financing climates, and we are considering investment in silent partnership
equities and real estate-backed securities (preferred securities, etc.).
(Note) The support agreement with LIXIL Group Co., Ltd. was canceled on October 25, 2019.

（B）Management of owned assets
As residential facilities, with the goal of securing a rental income with medium- to long-term stability, PM
companies and the Asset Management Company work together to formulate leasing strategies in accordance withindividual property characteristics, and by closely allying with leading real estate companies experienced inregional rental markets, seek to maintain or improve occupancy rates and rent levels.
The Investment Corporation will also take into account the operation statuses of the properties and movementsof competing properties and seek to maintain or improve occupancy rates, raise rent levels at the time of tenantchanges, increase rent at the time of lease renewals, receive key money, reduce the time of vacancy, maintain or
improve lease renewal rates, and secure parking revenue and other auxiliary revenue and other income
opportunities to secure rent income.
The Investment Corporation will further strive to cut down on restoration and other repair and maintenanceexpenses, review the electricity provider for common areas in connection with the liberalization of the electricity
market, cut costs through the use of LED lighting for common areas, and reduce tenant solicitation and othercosts.
The Investment Corporation will carry out strategic work to update common areas and enhance the value ofleased areas of the properties and continue implementing appropriate, major repairs, as necessary, while it seek
to maintain or enhance the market competitiveness of its assets.
As healthcare facilities, the Investment Corporation continues to monitor properly operational status of facilities
it owns and business status of operators by information about them and companies from operators, inspection ofoperating status and interview by visiting them and interview with managements in operating company, etc.
Considering results of monitoring, the Investment Corporation proposes to improve buildings, facilities andoperation and examines changing operators in case important issue occurs in succession of management in21

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

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

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

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

（6）Important Subsequent Events
Issuance of New Investment Units
The Investment Corporation resolved at the Board of Directors’ meeting on February 10, 2020 and February 19,
2020 to issue new investment units to apply the funds toward a payment for the acquisition of specified assets.
Payment for the issuance of new investment units has been made on February 26, 2020.
As a result, Unitholders’ capital came to 108,550,294,003 yen and Number of investment units issued andoutstanding came to 951,258 units as of February 26, 2020.
The Investment Corporation received a notice from allottee, SMBC Nikko Securities Inc., that it will not
subscribe to any of the new investment units to be issued through a third-party allotment by the subscription date,
March 23, 2020.
Therefore, the issuance of new investment units through third-party allotment will not be conducted.
（Issuance of new investment units through public offering）
Total number of units issued:：43,800 units

Issue price (offer price)：¥ 208,065 per unit

Total amount of issue price (offer price)：¥ 9,113,247,000

22Paid-in amount (issue amount):：¥ 201,342 per unit

Total paid-in amount (total issue amount)：¥ 8,818,779,600

Payment date:：February 26, 2020

23

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

Propert
y
num
ber
T-85

February27, 2020

R-46
T-87
T-88

March 2,
2020

A-1
A-2

March 13,
2020

T-89

Property Name

(Note 2)
(Note 3)

Previous Owner

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

ShibuyaKDX Residence Hatagaya (Note 1)
ku, Toky
KDX Residence Sendai Station
Sendai-shi,
East (Note 1)
Miyagi
MeguroKDX Residence Gakugeidaigaku
ku, Tokyo
Ota-ku,KDX Residence Kamata-minami
Tokyo
HOTEL LiVEMAX Tokyo-Otsuka- ToshimaEkimae
ku, Tokyo
Yokohama
HOTEL LiVEMAX Yokohamaeki-shi,
Nishiguchi
Kanagawa
Musashino
KDX Residence Kichijoji (Note 1)
-shi,
Tokyo
Total

(Note 1)

Location

THE SANKEIBUILDING CO., LTD.
Hoosiers AssetManagement Co., Ltd
Pineland co.,ltd.
JUKYO KENSETSU
Co., Ltd.

（Note 3）

2,500

2,710

1,340

1,410

750

828

1,918

2,090

2,390

2,440

2,570

2,670

621

650

12,08912,798G.K. KHF4

Shinko Holdings Co.,Ltd.

The trust beneficiary interest sales contract associated with the assets for T-85, R-46 and T-89 fall under the forward
commitments, etc. by the Investment Corporation as specified in the Financial Services Agency “Comprehensive
Guidelines for Supervision of Financial Instruments Business Operators, etc.”“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-beacquired assets and is rounded down to the nearest million yen.
“Appraisal date” for T-85 and R-46 is January 31, 2020, T-87, T-88, T-88, A-1 and A-2 is December 1, 2019, T-89 is March
6, 2020.

24

b. The Investment Corporation executed trust beneficiary interest sales contract (Note 1) concerning the following trust
beneficiary interest in real estate (the “to be acquired assets”) on February 10, 2020.
Date of tobe acquired

Property
number

Property Name

Location

AcquisitionPrice(scheduled)(mil.yen)Previous Owner

Appraisal value（mil.yen）（Note 4）（Note 3）June 30, 2020

T-90

August 3,
2020

T-91

KDX Residence Mitaka(Note 1)KDX Residence
Nakanobu (Note 1)

Mitaka-shi,Tokyo
Shinagawa-ku,
Tokyo

Non-Disclosure(Note 2)

Non-Disclosure(Note 2)

Total
(Note 1)
(Note 2)
(Note 3)(Note 4)

2,530

2,810

830

897

3,360

3,707

The trust beneficiary interest sales contract associated with the to-be acquired assets for T-90 and T-91 fall under the forward
commitments, etc. by the Investment Corporation as specified in the Financial Services Agency “Comprehensive
Guidelines for Supervision of Financial Instruments Business Operators, etc.”
Not disclosed according to seller’s intention.
“Acquisition Price” is the sales amount of each trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in each trust beneficiary interest sales contract concerning the to-beacquired assets and is rounded down to the nearest million yen.
“Appraisal Date” is December 1, 2019. As the building is still under construction as of today, the Investment Corporation
have conducted “appraisal for non-completed buildings etc.,” which came into force in real estate appraisal standards
definedby the Ministry of Land, Infrastructure and Transport on November 1, 2014 (May 1, 2014 partial revision).

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

Property
number

Property nameLocation

Buyer

Sale
price
(mil.yen)（Note 1）February 28,
2020(Note 1)
(Note 2)
(Note 3)

R-15

KDX Residence IzumiChuo

Sendai-shi,
Miyagi

NonDisclosure

540

Appraisal value（mil.yen）（Note 2）

613

(Note 3)

“Sale price” represent the sales price amount of trust beneficiary interest (excluding acquisition costs, property tax, city
planning tax or consumption tax, etc.) indicated in trust beneficiary interest sales contract, and rounded down to the nearest
million yen.
“Appraisal date “ is January 31, 2020.
Not disclosed according to seller’s intention(ⅲ) Financing
With respect to the above (ⅰ) acquisition of assets, the Investment Corporation borrowed a total of 5.1 billion yen(Series 39 and Series 40) on March 2 and 13, 2020 in order to allocate part of the funds to the acquisition of T-88,
A-1, A-2 and T-89 in a) above-mentioned assets and associated costs thereof.

2．Overview of the Investment Corporation（1）Unitholders’ Capital
Fiscal period
Total number of authorized
investment units (Unit)
Total number of investment
units issued andoutstanding (Unit)
Unitholders’ capital(Million yen)
Number of unitholders(People)12th
As of January 31,
2018

13th
As of July 31,
2018

14th
As of January 31,
2019

15th
As of July 31,
2019

16th
As of January 31,
2020

5,000,000

10,000,000

10,000,000

10,000,000

10,000,000

349,089

782,928

869,133

907,458

907,458

80,13280,132

93,226

99,731

99,731

8,466

12,847

12,484

11,684

10,390（2）Matters concerning Investment Units
25

Major unitholders as of January 31, 2020 are as follows.

Name

Address

Number ofinvestment units
held

Ratio（％）（Note）(Units)Japan Trustee Services Bank, Ltd. (Trust Acct.)

8-11, Harumi 1-chome, Chuo-ku, Tokyo

250,737

27.63

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

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

173,619

19.13

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

2-2, Otemachi 2-chome, Chiyoda-ku,
Tokyo
8-12, Harumi 1-chome, Chuo-ku,
Tokyo
Harumi Island Toriton Square OfficeTower Z
4-5, Marunouchi 1-chome, Chiyoda-ku,
Tokyo
2-1 Uchisaiwai-cho 2-chome, Chiyodaku, Tokyo

42,6584.70

21,8892.41

17,223

1.89

16,5701.82

15,225

1.67

13,412

1.47

12,675

1.39

11,4401.26

575,448

63.41

Trust and Custody Services Bank, Ltd.
(Securities Investment Trust Acct.)
Mitsubishi UFJ Trust and Banking Corporation
Kenedix, Inc.
Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd.
The Gunma Bank, Ltd.
STATE STREET BANK WEST CLIENTTREATY 505234

5-2, Marunouchi 2-chome, Chiyoda-ku,
Tokyo
194, Motosojamachi, Maebashi-shi,
Gunma
Shinagawa Intercity Tower A 15-1, 2chome, Kohnan, Minato-ku, Tokyo
Standing proxy: Mizuho Bank, Ltd.
7-1, Marunouchi 2-chome, Chiyoda-ku,
TokyoStanding proxy: MUFG Bank, Ltd.

BNYM AS AGT/CLTS 10 PERCENT
Total(Note) Ratio of number of investment units owned to total number of investment units issued is calculated by being rounded down to two
decimal places（3）Matters Concerning Directors and Auditor(ⅰ) The Executive Directors, Supervisory Directors and the Independent Auditor during the 16th fiscal
period are as follows.

Position

Name

Keisuke Sato

Executive
Director

Katsue Okuda

Osamu Chiba
Supervisory
Director（Note 1）

Satoshi Ogawa

Other concurrent title

Kenedix Real Estate Fund Management, Inc.
Director & COO, Head of Residential REIT Department
Ogata Appraisal Corporation, Director
Lecturer in Meiji University’s Graduate School of Global
Business
Kudan Ogata Holdings Corporation, Representative
director
Kudan Urban Appraisal Co., Ltd., Director
CERESPO CO.,LTD., Auditor
Wealth Management, Inc., External Investment
Committee
Outside corporate auditor of OKWAVE, Inc.(current)
Akebono Law Office, Attorney
Toin Law School, Associate Professor
Maruzen Foods Corporation, Outside Auditor
IMAGICA GROUP Inc., Outside Director
Ogawa CPA Office, CPA
GK Mercury Consulting, Representative Partner
Oedo-Onsen Monogatari Co., Ltd, Auditor
Ooedo Onsen Monogatari Hotels & Resorts Co., Ltd.

Total amount offees
paid during theperiod(thousand yen)
1,800

1,800

1,500

1,500

26

Auditor

Soichiro Iwao

Independent
auditor（Note 2）

(Note 1)
(Note 2)

Ernst & Young ShinNihon
LLC

Hungarian Medical Universities, Director
Chigasaki Central Clinic, Director
Medical Corporate Body Ken-iku kai, Vice President
National Federation of Industrial Health Organization,
Director
Iwao Consultant Office, Director

1,500

－

14,200Supervisory Director may be an officers of corporations other than mentioned above, but there is no interest in relation to theInvestment Corporation.
The fee of Independent auditor includes remuneration for Comfort Letter creation work related to issuance of new investment
units.

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

（4）Asset Management Company, Custodian and General Administrators
The asset management company, custodian and general administrators as of the end of the 16th fiscal period are as
follows.
Classification

Name

Asset manager
CustodianKenedix Real Estate Fund Management, Inc.

General administrator (Unitholder registry)

Sumitomo Mitsui Trust Bank, Limited

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

General administrator (Administration)

Mizuho Trust & Banking Co., Ltd.

General administrator(Regarding investment corporation bonds)

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

27

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

Use

15th
As of July 31, 2019
Total amountComposition ratio
held(%)(mil.yen)(Note 6)Areaof assets（Note 5）Residential
Trustbeneficiaryinterest inreal estateTokyo Metropolitan
Area (Note 2)
Other Regional Area
(Note 3)

Healthcare

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

Other (Note 4)

Total (Trust beneficiary interest in real estate)
Real estate
Other
Tokyo Metropolitan
Area (Note 2)
Total (Real estate)
Silent partnership equity interest (Note 1)
Bank deposits and other assets
Total assets

16th
As of January 31, 2020
Total amountComposition ratio
held(%)(mil.yen)(Note 6)（Note 5）

121,35047.6

123,188

48.0

55,96922.0

55,221

21.5

22,751

8.9

22,6508.830,29811.9

30,13711.7

1,328
231,698

0.5
90.9

1,311
232,509

0.5
90.6

1,798

0.7

1,798

0.7

1,798
2

0.7
0.0

1,798
－

0.7
－

21,467

8.4

22,3588.7

254,965

100.0

256,665100.0(Note 1) Subordinated silent partnership equity interest in GK Tropic Ⅲ.
(Note 2) “Tokyo Metropolitan Area” means major cities in Tokyo, Kanagawa, Saitama and Chiba.
(Note 3) “Other regional areas” include government-designed municipalities and other regional cities.
(Note 4) “Other” means cities except Tokyo Metropolitan Area and Other regional areas.
(Note 5) “Total amount held” means carrying amounts on the balance sheet (amounts of Trust beneficiary interests in real property and real
property are book values net of depreciation) at the end of fiscal period and rounded off to one dismal place.
(Note 6) “Composition ratio” means the ratio of carrying amounts of each classified assets to total assets on balance sheet and rounded off to
one dismal place.

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

Name of property

T-78

KDX Residence Toyosu
KDX Residence Shukugawa
Hills

R-45
H-22

Tsukui Sun-shine Machida

7,706

6,811.38

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

7,298

17,575.39

16,254.23

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

7,149

15,553.33

Leased area(m²) (Note 2)

15,553.33

92.5

2.5

Residential

100.0

NonDisclosure

Healthcare(Note 5)

H-10

Activa Biwa

6,386

39,649.84

39,649.84

100.0

NonDisclosure

Healthcare(Note 5)T-56

KDX Residence Hanzomon

4,947

4,854.23

4,777.96

98.4

1.7

Residential

T-1

KDX Daikanyama Residence

4,768

5,338.99

5,178.88

97.0

2.0

Residential

R-39

KDX Residence Ohori Harbor
View Tower

4,508

11,855.63

9,333.11

78.7

2.2

Residential

H-3

Joy Stage Hachioji

3,781

13,812.27

13,812.27

100.0

NonDisclosure

Healthcare(Note 5)T-52

KDX Residence Togoshi

3,731

4,591.76

4,591.76

100.0

1.5

Residential

H-16

Anesis Teradacho

3,528

7,856.64

7,856.64

100.0

NonDisclosure

Healthcare(Note 5)

Total

53,806

127,899.46

123,819.40

-

20.3

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

28

（Note 2）“Leased area” is the floor space set forth in a lease agreement that has been executed with an end tenant and leased as of January
31, 2020.
（Note 3）“Occupancy rate” = “leased area” / “leasable area” ×100
（Note 4）The ratio of rental revenue to total rental revenue = each property’s real estate lease business revenue / total for all properties.
（Note 5）The Investment Corporation has not obtained consent from the tenant to release this information.

29

（3）Overview of the Portfolio（Detail of Real Estate Portfolio Assets）
The overview of assets under management of the Investment Corporation as of the end of the 16th fiscal period
Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

T-1

KDX Daikanyama Residence

7-1, Sarugakucho,Shibuya-ku,Tokyo

TBI

4,768

6,530

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

TBI

1,698

2,250

TBI

782

1,060

TBI

1,443

1,910

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

T-3

Residential Facilities

Tokyo Metropolitan Area

TBI

611

943

TBI

2,646

3,590

TBI

632

758

TBI

1,299

1,830

TBI

1,103

1,500

TBI

3,078

3,700

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

TBI

2,848

3,690

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

TBI

2,268

2,580

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

TBI

2,132

2,790

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

TBI

1,756

2,430

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

TBI

1,585

2,120

T-20 KDX Residence Takanawa

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

TBI

760

1,090

T-21 KDX Residence Nishihara
KDX Residence Daikanyama
T-22
II
T-23 KDX Residence Sendagaya
KDX Residence Nihombashi
T-24
Suitengu
KDX Residence Nihombashi
T-25
Hakozaki
KDX Residence HigashiT-26
shinjuku
T-27 KDX Residence Yotsuya
KDX Residence NishiT-28
shinjuku
T-29 KDX Residence Kagurazaka
KDX Residence Futako
T-30
Tamagawa
KDX Residence Komazawa
T-31
Koen
T-32 KDX Residence Mishuku

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

TBI

1,498

1,940

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

TBI

759

1,030

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

TBI

635

854

41-6 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

3,203

4,060

38-1 Nihombashi Hakozakicho, Chuo-ku, Tokyo

TBI

1,157

1,450

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

TBI

3,224

4,210

22-50 Arakicho, Shinjuku-ku, Tokyo

TBI

2,291

2,970

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

TBI

993

1,380

8-10, Tsukijicho, Shinjuku-ku, Tokyo

TBI

707

968

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

TBI

1,271

1,520

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

TBI

901

1,150

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

TBI

749

985

T-33 KDX Residence Yoga

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

TBI

693

915

T-34 KDX Residence Shimouma

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

TBI

597

785

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

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

TBI

1,239

1,460

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

TBI

1,019

1,370

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

TBI

1,065

1,280

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

TBI

733

977

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

TBI

762

1,040

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

TBI

867

1,090

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

TBI

811

1,040

13-16, Yamatocho, Itabashi-ku, Tokyo

TBI

595

790

30

Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

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

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

TBI

549

666

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

TBI

392

538

TBI

771

1,010

TBI

1,002

1,170

TBI

1,697

2,120

TBI

1,334

1,690

TBI

1,040

1,350

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

TBI

558

680

TBI

1,319

1,620

31

Use

Area

No.

Name of property

Location

Form ofownership

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

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

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

TBI

3,731

4,810

TBI

2,564

3,340

TBI

1,823

2,390

T-55 KDX Residence Oyama

8-8, Oyamakanaimachi, Itabashi-ku, Tokyo

TBI

2,622

3,350

T-56 KDX Residence Hanzomon

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

TBI

4,947

5,800

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

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

TBI

860

1,060

120-1, Yaraicho, Shinjuku-ku, Tokyo

TBI

1,376

2,010

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

TBI

2,346

2,550

T-60 KDX Residence Seijo

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

TBI

1,418

1,700

T-61 KDX Residence Akihabara

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

TBI

1,243

1,610

T-62 KDX Residence Iriya

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

TBI

1,056

1,440

T-63 KDX Residence Tachikawa

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

TBI

2,976

3,710

TBI

1,155

1,530

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

TBI

1,102

1,350

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

TBI

1,186

1,830

T-67 KDX Residence Kanda

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

TBI

718

1,140

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

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

TBI

2,928

4,450

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

TBI

1,165

1,300

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

TBI

1,239

1,750

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

TBI

804

1,150

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

TBI

563

862

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

TBI

699

986

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

TBI

654

837

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

TBI

772

1,020

TBI

902

1,190

T-77 KDX Residence Ryogoku

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

TBI

850

1,190

T-78 KDX Residence Toyosu

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

TBI

7,706

7,730

T-79 KDX Residence Asagaya

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

TBI

1,965

2,230

TBI

2,697

2,740

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

TBI

1,398

1,420

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

TBI

1,138

1,260

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

Residential Facilities

Tokyo Metropolitan Area

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

Other Regional Area

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

TBI

707

748

KDX Residence NishiT-84
Funabashi

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

TBI

1,023

1,060

T-86

KDX Residence Asagaya II

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

TBI

977

982

R-2

KDX Jozenjidori Residence

TBI

926

1,340

R-3

KDX Izumi Residence

TBI

1,041

1,410

R-4

KDX Chihaya Residence

3-25, Kasugamachi, Aoba-ku, Sendai-shi, Miyagi
24-28, Izumi 2-chome, Higashi-ku, Nagoya-shi,
Aichi
49-6, Shinsakae 1-chome, Naka-ku, Nagoya-shi,
Aichi
7-15, Kawaracho 1-chome, Chuo-ku, Osaka-shi,
Osaka
2-43, Sakaemachi 3-chome, Takarazuka-shi, Hyogo
21-27, Shimizu 1-chome, Minami-ku, Fukuoka-shi,
Fukuoka
1000-4, Minami 2-jo 40-chome, Chuo-ku, Sapporoshi, Hokkaido

TBI

987

1,430

TBI

2,694

3,550

TBI

1,338

1,970

TBI

1,545

2,030

TBI

771

996

R-7

KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

R-8

KDX Shimizu Residence

R-9

KDX Residence Odori Koen

R-5

32

Use

Area

No.

Name of property

Location

Form ofownership

Book
value
(Millionyen)Appraisal value
at the end of
the fiscal period(Million yen)
(Note 1)KDX Residence Kikusui
R-10
Yojo
KDX Residence Toyohira
R-11
Koen
R-13 KDX Residence Ichiban-cho
R-15 KDX Residence Izumi Chuo
KDX Residence HigashiR-16
sakura I
KDX Residence HigashiR-17
sakura II
R-18 KDX Residence Jingumae
R-19 KDX Residence Nishi-oji
R-20 KDX Residence Saiin

2-35, Kikusui 4-jo 3-chome, Shiroishi-ku, Sapporoshi, Hokkaido
4-16, Hiragishi 4-jo 3-chome, Toyohira-ku, Sapporoshi, Hokkaido
15-42, Ichibancho 1-chome, Aoba-ku, Sendai-shi,
Miyagi45-2, Ichinazaka-Ishidome, Izumi-ku, Sendai-shi,
Miyagi13-22, Higashi-sakura 2-chome, Higashi-ku, Nagoyashi, Aichi
5-10, Higasi-sakura 1-chome, Higashi-ku, Nagoyashi, Aichi
4-27, Yokota 2-chome, Atsuta-ku, Nagoya-shi, Aichi
40-3, Nishi 7-jo Kakekoshicho, Shimogyo-ku, Kyotoshi, Kyoto
30-2, Saiintakadacho, Ukyo-ku, Kyoto-shi, Kyoto

TBI

780

1,050

TBI

462

559

TBI

498

721

TBI

451

613

TBI

2,232

2,590

TBI

858

1,050

TBI

790

1,040

TBI

774

938

TBI

415

513

33

Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

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

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

TBI

1,353

1,700

TBI

1,270

1,600

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

TBI

1,283

1,439

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

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

TBI

674

874

(Note 2)

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

Other Regional Area

Residential Facilities

R-32 KDX Residence Nishi Koen
KDX Residence Hirao JosuiR-33
machi
R-35 Leopalace Flat Shin-sakae
R-36
R-37
R-38
R-39
R-40

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

R-41 Serenite Kita-kyuhoji
Serenite Nishinomiya
R-42
HommachiR-43 KDX Residence Nishijin
R-44 Serenite Kobe Motomachi
R-45

KDX Residence Shukugawa
Hills

TBI

512

680

TBI

1,071

1,230

TBI

1,457

1,940

TBI

548

716

TBI

641

895

TBI

723

895

TBI

734

933

TBI

3,464

4,590

TBI

964

1,160

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

TBI

3,137

3,700

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

TBI

1,971

2,430

TBI

4,508

5,220

TBI

908

1,700

TBI

1,268

1,620

TBI

638

748

TBI

1,742

1,720

TBI

2,477

2,600

TBI

7,298

7,320

2-18, Minato 1-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
3-2, Minami 3-jo Nishi 8-chome, Chuo-ku, Sapporoshi, Hokkaido
3-15, Kitakyuhojicho 1-chome, Chuo-ku, Osaka-shi,
Osaka
5-26, Hommachi, Nishinomiya-shi, Hyogo
24-30, Nishijin 2-chome, Sawara-ku, Fukuoka-shi,
Fukuoka
1-22, Kaigandori 3-chome, Chuo-ku, Kobe-shi,
Hyogo
7-1, Hinoikecho, Nishinomiya-shi, Hyogo

Subtotal
H-1
H-2

Healthcare Facilities

Tokyo Metropolitan Area

H-3

Irise Kamata/Yuseien
Nichii Home NakanoMinamidai
Joy Stage Hachioji

178,409

222,914

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

TBI

1,082

1,120

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

TBI

1,769

1,780

924-2 Yokokawamachi, Hachioji-shi, Tokyo

TBI

3,781

3,760

TBI

1,085

1,120

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

Yuimaru Hijirigaoka(Note 2)

H-5

Nichii Home Tama Plaza

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

Other Regional Area

TBI

2,832

2,940

H-21 Plaisant Grand Ota tamagawa 2-19-4 Tamagawa,Ota-ku, Tokyo
1-11-7 Oyamagaoka Machida-shi, Tokyo (WestTsukui Sun-shine Machida
Tower)
H-22 (Note2)
1-11-8 Oyamagaoka Machida-shi, Tokyo (East
Tower)
H-23 Serabi Ebisu
2-10-20, Mita, Meguro-ku, Tokyo
6-3-1 Tsukisamuchuodori, Toyohira-ku, Sapporo-shi,
H-6 TenHokkaido
13-7-10 Nishioka Sanjo, Toyohira-ku, Sapporo-shi,
H-7 Irise Nishioka
Hokkaido
H-8 Izarie Eniwa Building
2-1 Aioimachi, Eniwa-shi, Hokkaido

TBI

3,231

3,180

TBI

7,149

7,070

TBI

1,719

1,700

TBI

2,633

2,660

TBI

825

857

TBI

1,590

1,740

H-9

TBI

945

993

TBI

6,386

6,580

Sawayaka Sakura Nibankan

1-10-3 Oroshimachi, Akita-shi, Akita
6-16-16 Ogoto, Otsu-shi, Shiga

H-10 Activa Biwa(Note 2)

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

34

Appraisal value
Book

Use

Area

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

Sompo Care LAVIERE Kobe 285 Sarukura, Myodanicho, Tarumi-ku, Kobe-shi,
H-11
Tarumi
Hyogo

TBI

2,066

2,110

H-12 Granda Mondo Yakujin

10-10 Hayashidacho, Nishinomiya-shi, Hyogo

TBI

1,152

1,190

H-13 Excellent Nishinomiya

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

TBI

935

975

H-15 Excellent Kitano

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

TBI

759

780

H-16 Anesis Teradacho

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

TBI

3,528

3,640

H-17 Rococo-riha

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

TBI

2,080

2,170

H-18 Orage Suma

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

TBI

2,803

2,830

35

Appraisal value
Book

Area

Use

No.

Name of property

Location

Form ofownershipvalue(Millionyen)

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

Other
Regional
Area

HCanadian Hill
19
HAnesis Hyogo
20
HArute Ishiyagawa
24

HGran Hills Ogawarako
14

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

TBI

1,838

1,870

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

TBI

1,410

1,440

1-10-13,Mikage tsuka-machi, Higashi nada-ku,
Kobe-shi, Hyogo

TBI

1,181

1,400

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

TBI

1,311

1,380

54,09955,285

1,798

1,860

234,307

280,059

Subtotal

Tokyo
Metropolitan
Area

Other

T-9 Cosmo Heim Motosumiyoshi

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

RP(Note1) “Appraisal value at the end of the fiscal period” is the appraisal value in a real property appraisal prepared, pursuant to the asset
appraisal techniques and standards in the Investment Corporation’s certificate of incorporation and the rules of the Investment Trusts
Association, Japan, by Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., JLL Morii Valuation & Advisory K.K. or
Tanizawa Sogo Appraisal Co., Ltd.
(Note 2) R-24 and H-4 consist of two buildings and H-4, H-10 consist of three buildings, book value and appraisal value are total amount ofeach value of the properties.

36

The overview of the rental business for the Individual Properties owned by the Investment Corporation are as follows.
15th(From February 1, 2019 to July 31, 2019)

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

Area
Use

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

No.

Name of property

T-1

KDX Daikanyama Residence

1

98.7

164

2.1

1

97.0

161

2.0

T-3

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

1

96.4

58

0.7

1

98.2

58

0.7

1

98.0

28

0.4

1

100.0

28

0.4

1

100.0

50

0.6

1

97.5

51

0.6

1

95.5

25

0.3

1

97.7

25

0.3

1

98.6

103

1.3

1

97.8

106

1.3

1

94.3

27

0.3

1

97.2

25

0.3

1

98.1

64

0.8

1

96.9

63

0.8

1

96.6

49

0.6

1

98.3

47

0.6

1

98.7

113

1.4

1

100.0

113

1.4

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

1

95.4

91

1.2

1

97.0

90

1.1

1

100.0

65

0.8

1

89.1

61

0.8

1

95.9

73

0.9

1

95.1

75

0.9

1

95.9

65

0.8

1

97.4

65

0.8

T-19

KDX Residence Azabu East

1

97.7

55

0.7

1

100.0

58

0.7

T-20

KDX Residence Takanawa

1

100.0

27

0.3

1

100.0

29

0.4

T-21

1

100.0

52

0.7

1

100.0

52

0.7

1

100.0

28

0.4

1

93.6

28

0.4

1

93.8

22

0.3

1

100.0

23

0.3

1

100.0

97

1.2

1

100.0

97

1.2

1

97.3

41

0.5

1

98.7

41

0.5

1

98.4

111

1.4

1

100.0

112

1.4

1

98.1

79

1.0

1

97.8

80

1.0

1

96.2

35

0.5

1

100.0

35

0.4

1

94.4

25

0.3

1

100.0

25

0.3

1

100.0

42

0.5

1

97.0

43

0.5

1

96.8

28

0.4

1

97.8

28

0.4

T-32

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

1

100.0

25

0.3

1

97.7

27

0.3

T-33

KDX Residence Yoga

1

100.0

24

0.3

1

97.5

24

0.3

T-34

KDX Residence Shimouma

1

100.0

21

0.3

1

100.0

22

0.3

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

1

100.0

41

0.5

1

100.0

41

0.5

1

95.9

39

0.5

1

97.3

39

0.5

1

100.0

38

0.5

1

97.2

38

0.5

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

1

98.3

29

0.4

1

100.0

28

0.4

1

100.0

29

0.4

1

98.1

28

0.4

1

100.0

32

0.4

1

96.4

29

0.4

1

100.0

30

0.4

1

97.4

29

0.4

1

100.0

24

0.3

1

100.0

23

0.3

1

96.8

20

0.3

1

100.0

20

0.3

(Note 3)

T-4
T-5
T-6
T-7
T-10
T-11
T-12
T-13
T-15

Residential Facilities

Tokyo Metropolitan Area

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

T-35

T-38
T-39
T-40
T-41
T-42
T-43

(Note 3)37

15th
(From February 1, 2019 to July 31, 2019)

Area
Use

No.

Name of property

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

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

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

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

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

1

100.0

18

0.2

1

93.9

17

0.2

1

97.5

35

0.4

1

98.6

34

0.4

1

95.5

37

0.5

1

97.8

35

0.4

1

100.0

65

0.8

1

100.0

64

0.8

1

93.7

44

0.6

1

96.8

44

0.6

1

100.0

30

0.4

1

100.0

31

0.4

1

100.0

20

0.3

1

100.0

19

0.2

1

100.0

41

0.5

1

93.4

37

0.5

38

15th
(From February 1, 2019 to July 31, 2019)

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

Area
Use

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

No.

Name of property

T-52

1

98.0

122

1.5

1

100.0

122

1.5

1

98.3

87

1.1

1

99.1

89

1.1

T-54

KDX Residence Togoshi
KDX Residence Shinagawa
SeasideKDX Residence Ojima

1

97.4

64

0.8

1

99.1

64

0.8

T-55

KDX Residence Oyama

1

97.0

94

1.2

1

97.6

92

1.2

T-56

KDX Residence Hanzomon

1

98.3

135

1.7

1

98.4

132

1.7

T-57

100.0

23

0.3

1

100.0

23

0.3

1

98.6

53

0.7

1

98.6

52

0.7

T-59

B-Site Akihabara
KDX Residence Kagurazaka
Dori
KDX Residence Sendagi

1

1

95.1

66

0.8

1

96.1

65

0.8

T-60

KDX Residence Seijo

1

95.5

42

0.5

1

100.0

42

0.5

T-61

KDX Residence Akihabara

1

91.0

41

0.5

1

100.0

41

0.5

T-62

KDX Residence Iriya

1

100.0

40

0.5

1

100.0

39

0.5

T-63

KDX Residence Tachikawa

1

99.4

101

1.3

1

92.5

98

1.2

T-64

1

98.4

53

0.7

1

100.0

56

0.7

1

98.1

39

0.5

1

96.8

39

0.5

T-66

KDX Residence Tsurumi
KDX Residence Morishita
ChitoseKDX Residence Akasaka

1

100.0

40

0.5

1

100.0

40

0.5

T-67

KDX Residence Kanda

1

100.0

29

0.4

1

94.9

28

0.4

T-68

1

97.3

94

1.2

1

95.7

96

1.2

1

98.1

33

0.4

1

96.1

32

0.4

1

94.3

40

0.5

1

96.9

39

0.5

1

100.0

27

0.3

1

100.0

28

0.4

1

97.6

21

0.3

1

100.0

22

0.3

1

100.0

25

0.3

1

100.0

25

0.3

1

97.7

24

0.3

1

100.0

23

0.3

T-75

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

1

100.0

22

0.3

1

100.0

22

0.3

T-76

KDX Residce Sakurajosui

1

95.9

29

0.4

1

100.0

29

0.4

T-77

KDX Residence Ryogoku

1

100.0

29

0.4

1

100.0

29

0.4

T-78

KDX Residence Toyosu

1

100.0

181

2.3

1

100.0

180

2.2

T-79

KDX Residence Asagaya

1

97.8

49

0.6

1

97.7

48

0.6

T-80

1

97.2

77

1.0

1

96.6

77

1.0

1

92.3

34

0.4

1

97.4

36

0.5

T-82

KDX Residence Hiyoshi
KDX Residence
Kamikitazawa
KDX Residence Kaminoge

1

100.0

26

0.3

1

100.0

26

0.3

T-83

KDX Residence Kaminoge

1

96.2

18

0.2

1

97.5

19

0.2

－

－

－

－

1

100.0

20

0.3

(Note 3)

T-53

T-58

T-65

Residential Facilities

Tokyo Metropolitan Area

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

T-81

(Note 3)

T-86

KDX Residence NishiFunabashi
KDX Residence Asagaya II

－

－

－

－

1

90.5

11

0.1

R-2

KDX Jozenji Dori Residence

1

87.2

49

0.6

1

98.2

49

0.6

R-3

KDX Izumi Residence

1

100.0

43

0.5

1

100.0

44

0.5

R-4

1

93.7

48

0.6

1

92.9

48

0.6

1

96.0

107

1.4

1

97.4

117

1.5

R-7

KDX Chihaya Residence
KDX Sakaisuji Hommachi
Residence
KDX Takarazuka Residence

1

94.3

58

0.7

1

94.3

56

0.7

R-8

KDX Shimizu Residence

1

93.4

71

0.9

1

98.7

74

0.9

R-9

KDX Residence Odori Koen
KDX Residence Kikusui
Yojo
KDX Residence Toyohira
Koen

1

93.5

31

0.4

1

93.6

33

0.4

1

97.9

39

0.5

1

96.0

39

0.5

1

93.8

23

0.3

1

90.7

22

0.3

T-84

Other Regional Area

R-5

R-10
R-11

39

15th
(From February 1, 2019 to July 31, 2019)

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

Area
Use

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

No.

Name of property

R-13

KDX Residence Ichiban-cho

1

88.1

25

0.3

1

98.0

25

0.3

R-15

1

94.8

23

0.3

1

93.7

22

0.3

1

96.3

91

1.2

1

96.3

95

1.2

1

94.0

37

0.5

1

97.0

38

0.5

R-18

KDX Residence Izumi Chuo
KDX Residence Higashisakura I
KDX Residence Higashisakura II
KDX Residence Jingumae

1

96.0

39

0.5

1

94.0

40

0.5

R-19

KDX Residence Nishi-oji

1

97.8

34

0.4

1

100.0

32

0.4

(Note 3)

R-16
R-17

(Note 3)40

15th
(From February 1, 2019 to July 31, 2019)

Area
Use

No.

Name of property

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

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

R-20

KDX Residence Saiin

1

95.7

18

0.2

1

100.0

18

0.2

R-21

KDX Residence Namba
KDX Residence Nambaminami
KDX Residence Shin-osaka

1

97.7

56

0.7

1

98.5

58

0.7
0.7

R-22

1

97.3

54

0.7

1

96.6

56

－

－

0

0.0

－

－

－

－

98.4

54

0.7

1

98.4

55

0.7

1

95.6

29

0.4

1

97.0

28

0.4

R-26

KDX Residence Ibaraki I・IIKDX Residence Toyonakaminami
KDX Residence Moriguchi

1

1

96.9

23

0.3

1

100.0

23

0.3

R-27

KDX Residence Sannomiya

1

97.8

39

0.5

1

98.9

39

0.5

R-28

Ashiya Royal Homes
KDX Residence Funairi
Saiwai-cho
KDX Residence Tenjinhigashi II
KDX Residence Nishi Koen
KDX Residence Hirao Josuimachi
Melody Heim Gotenyama

1

87.6

65

0.8

1

91.9

59

0.7

1

90.6

27

0.3

1

93.7

27

0.3

1

98.4

31

0.4

1

95.2

30

0.4

1

91.3

31

0.4

1

86.8

27

0.3

1

92.4

28

0.4

1

91.7

27

0.3

1

100.0

22

0.3

－

－

20

0.3

Leopalace Flat Shin-sakae
KDX Residence Koman
YamateKDX Residence
Hommachibashi
KDX Residence Minamikusatsu
KDX Residence Ohori
Harbor View Tower
KDX Residence Minamisanjo
Serenite Kita-kyuhoji
Serenite Nishinomiya
Hommachi
KDX Residence Nishijin

1

100.0

121

1.5

1

100.0

121

1.5

1

100.0

32

0.4

1

100.0

32

0.4

1

96.5

107

1.4

1

97.0

108

1.3

1

100.0

104

1.3

1

100.0

103

1.3

1

76.8

189

2.4

1

78.7

177

2.2

1

100.0

55

0.7

1

96.2

56

0.7

1

100.0

43

0.5

1

100.0

43

0.5

1

100.0

23

0.3

1

100.0

23

0.3

1

96.8

57

0.7

1

90.5

56

0.7

KDX Residence Hiyoshi
KDX Residence Shukugawa
Hills
Subtotal

1

97.2

76

1.0

1

95.1

74

0.9

1

93.9

206

2.6

1

92.5

203

2.5

6,283

79.2

6,289

78.3

R-23
R-24
R-25

R-29
R-30

Other Regional Area

Residential Facilities

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

118

96.4

119

96.5

1

100.0

1

100.0

1

100.0

1

100.0

H-3

Irise Kamata/Yuseien
NichiiHome
NakanoMinamidai
Joy Stage Hachioji

1

100.0

1

100.0

H-4

Yuimaru Hijirigaoka

1

100.0

1

100.0

H-5

Nichii Home Tama Plaza

1

100.0

1

100.0

H-21

Plaisant Grand Ota tamagawa

1

100.0

1

100.0

H-22

Tsukui Sun-shine Machida

1

100.0

1

100.0

H-23

Serabi Ebisu

1

100.0

1

100.0

H-6

Ten

1

100.0

1

100.0

H-7

Irise Nishioka

1

100.0

1

100.0

H-8

Izarie Eniwa Building

1

100.0

1

100.0

H-9

Sawayaka Sakura Nibankan

1

100.0

1

100.0

H-10

1

100.0

1

100.0

1

100.0

1

100.0

H-12

Activa Biwa
Sompo Care LAVIERE Kobe
TarumiGranda Mondo Yakujin

1

100.0

1

100.0

H-13

Excellent Nishinomiya

1

100.0

1

100.0

H-1

Other Regional Area

Healthcare Facilities

Tokyo Metropolitan Area

H-2

H-11

NonNondisclosure disclosure（Note5））（Note5）

NonNondisclosure disclosure（Note5）（Note5）41

15th(From February 1, 2019 to July 31, 2019)

Area
Use

No.

Name of property

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

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

H-15

Excellent Kitano

1

100.0

1

100.0

H-16

Anesis Teradacho

1

100.0

1

100.0

H-17

Rococo-riha

1

100.0

1

100.0

H-18

Orage Suma

1

100.0

1

100.0

H-19

Canadian Hill

1

100.0

1

100.0

42

15th
(From February 1, 2019 to July 31, 2019)

Area

Use

No.

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

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

Name of property(Note 3)

Other
Other
Regional
Area
Healthcare Facilities

H-20

Anesis Hyogo

1

100.0

H-24

Arute Ishiyagawa

1

100.0

(Note 3)

1

100.0

1

100.0

NonNondisclosure disclosure（Note5）

H-14

Gran Hills Ogawarako

Subtotal

Tokyo
Metropolitan
Area
Other

T-9

Cosmo Heim Motosumiyoshi(land with leasehold interest)
Total

NonNondisclosure disclosure（Note5）

1

100.0

24

100.0

1,605

－

100.0

142

97.5

（Note5）（Note5）

1

100.0

20.2

24

100.0

1,694

21.1

43

0.6

－

100.0

43

0.5

7,933

100.0

143

97.6

8,027

100.0

(Note1) Regarding residential, in the “number of tenants” column, if a master lease agreement has been executed with a master lease company,
1 is entered as the number of tenants. As of January 31, 2020, master lease agreements had been executed for all investment assets of
the Investment Corporation except for one case of ownership of leased land and Raffine Minami-magome; the “total” for the “numberof tenants” is the sum of the master lease agreements for the properties (running number); and for the properties with no master leaseagreement, the number of end tenants is entered. There are a total of 14 master lease companies.
"Total number of tenants" of the healthcare facility lists the total number of tenants of the master lease contract pertaining to each asset
effective as of the end of January 2020.
(Note2) The “occupancy rate” = leased area / leasable area x 100. The “total” for the “occupancy rate” column is the occupancy rate for the
portfolio as a whole.
(Note3) “Rental and other operating revenues” is the sum of a property’s rental business income for each fiscal period.
(Note4) (R-23) KDX Residence Shin-Osaka sold on February 1, 2020 and (R-34) Melody Heim Gotenyama sold on January 1, 2020.
(Note5) The Investment Corporation has not obtained consent from the tenant to release this information.

（4）Details of specified transaction
The details of specified transaction at the end of 16th fiscal period are as follows.
Contact amount (Million yen)Classification

Transaction

Over-the-counter transactions

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

Over 1 year
97,750(Note 1)

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

86,650-450

Total
97,75086,650－-450(Note 1) The interest rate swap contract amount, etc. is based on the assumed principal.
(Note 2) With respect to those meeting the requirements for special treatment under the accounting standards for financial products, the fairvalue is not listed.
(Note 3) Appraised at the price presented by the financial institution that is the other party in the transaction.

(5) Other assets
Real estate properties as well as beneficiary interests having real estate properties as major trust assets are
all set forth in (3) Details of portfolio assets above. There are not any other specified assets the Investment
Corporation owns at the end of 16th fiscal period except for those mentioned in (3) above.

(6) Asset ownership per country or region
There is no relevant information for countries and regions other than Japan.

43

4. Capital expenditures for property(1)Planned capital expenditures

The table below shows major capital expenditures for renovations, repairs and other projects that are planned for the
17 the fiscal period ending July 31, 2020. These expenditures are for real estate owned by the Investment Corporation
and real estate in trusts in which the Investment Corporation owns trust beneficiary rights. These planned projects
may include some expenditure that will be recorded as expenses rather than capital expenditures for accounting
purposes.

No.

Name of property

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

Location

PurposeScheduled

Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
Major renewal
construction
Water heater
replacement
construction

From February2020 To July 2020

87

－

－

From February2020 To July 2020

52

－

－

From February2020 To July 2020

48

－

－

From February2020 To July 2020

45

－

－

From February2020 To July 2020

35

－

－

From February2020 To July 2020

5

－

－

T-12

KDX Kawaguchi Saiwai-cho
Residence

Kawaguchishi, Saitama

T-18

KDX Residence Shiba Koen

Minato-ku,
Tokyo

T-36

KDX Residence Yukigaya Otsuka

Ota-ku,
Tokyo

T-39

KDX Residence Monzennakacho

Koto-ku,
Tokyo

T-20

KDX Residence Takanawa

Minato-ku,
Tokyo

R-11

KDX Residence Toyohira Koen

Sapporo-shi,
Hokkaido（2）Capital expenditures during the 16th fiscal period
The table below shows major capital expenditures for renovations, repairs and other projects in the 16th fiscal period
ended January 2020. The construction cost for the period amounted to 938 million yen, consisting of 656 million yen
of capital expenditures and 281 million yen of repair and maintenance expenses.
No.

Name of property

Capital expenditures(Million yen)

Location

PurposeTerm

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

From April 2019
To September 201967

From August 2019
To December 2019

66

H-6

Ten

Sapporo-shi,
Hokkaido

T-24

KDX Residence Nihombashi
Suitengu

Chuo-ku,
Tokyo

T-17

KDX Residence Minami-azabu

Minato-ku,
Tokyo

T-49

KDX Residence Nihombashi
Hamacho

Chuo-ku,
Tokyo

T-16

KDX Residence Minami-aoyama

Minato-ku,
Tokyo

T-41

KDX Residence Moto-asakusa

Taito-ku,Tokyo

Major renewal
construction
Major renewal
construction

From August 2019
To December 2019
From September
2019 To January
2020
From August 2019
To December 2019
From September
2019 To December
2019

62
41
30
27

Other
Total

(3)

361
656

Reserved funds for long-term maintenance plan

In accordance with its long-term repair and maintenance plan for each property, the Investment Corporation sets aside,from the cash flow during the 16th fiscal period, repair and maintenance reserves designed to finance payment of future
medium- to long-term major repair and maintenance work.
(million yen)

Term
Reserve balance at the
beginning of the period
Amount of reserve
during the period

13th
15th
12th
14th
16th
From Aug. 1, 2017 From Feb. 1, 2018 From Aug. 1, 2018 From Feb. 1, 2019 From Aug. 1, 2019
to Jan. 31, 2018
to Jan. 31, 2019
to Jan. 31, 2020
to Jul. 31, 2018
to Jul. 31, 2019
1,295

1,384

732

831

898

263

302

101

71

36

44

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

174

954

2

4

12

1,384

732

831

898

921

45

5. Expenditures and liabilities(1) Details of asset management expenses(in thousands of yen)
15th
From February 1, 2019
to July 31, 2019

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

16th
From August 1, 2019
to January 31, 2020
562,274
13,40445,9508,100
231,968
861,697

576,676
13,836
46,625
8,100
249,665894,903（Note）There are other asset management fees in addition to the amount set forth above, and asset management fees pertaining to property
acquisitions (15th fiscal period: 128,443 thousand yen and 16th fiscal period: 19,147 thousand yen) and sold fee pertaining to property
sold (15th fiscal period: 3,450 thousand yen and 16th fiscal period: 2,400 thousand yen).

(2)

Status of Interest-bearing debt

Borrowings as of January 31, 2020 are as follows.

Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mln yen)of period(mln yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Short-term loans
payableSumitomo Mitsui Banking Corporation

February 28, 2019

1,000

1,000

0.422

February 28, 2020

Sumitomo Mitsui Banking Corporation

July 31, 2019

1,000

1,000

0.374

July 31, 2020

Sumitomo Mitsui Banking Corporation

July 31, 2019

500

500

0.324

July 31, 2020

Sumitomo Mitsui Banking Corporation

January31, 2020

0.419

January 31, 2021

0.689

November 30, 2019

0.447

January 31, 2020

Subtotal
MUFG Bank, Ltd.

November 28, 2014

-

800

2,500

3,300

1,500

-

Sumitomo Mitsui Banking Corporation(Note 6)

1,500

-

MUFG Bank, Ltd.(Note 6)

1,400

-

Mizuho Bank, Ltd.(Note 6)

900-

Shinsei Bank, Ltd.

500

-

400

-

Sumitomo Mitsui Trust Bank, Limited.

300-

Mizuho Trust & Banking Co., Ltd.

300-

Aozora Bank, Ltd.

200-

THE BANK OF FUKUOKA, LTD.

200-

Shinsei Bank, Ltd.

1,750

1,750

Sumitomo Mitsui Banking Corporation

1,750

1,750

MUFG Bank, Ltd.

1,000

1,000

Mizuho Bank, Ltd.

500

500

Resona Bank, Ltd.

500

500

Mizuho Trust & Banking Co., Ltd.

500

500

Resona Bank, Ltd.(Note6)

August 2, 2018

Current portion of long-term borrowings

July 29, 2015

0.729

1,000

1,000

1.109

January 31, 2021

Sumitomo Mitsui Banking Corporation(Note 5)

November 28, 2014

2,000

2,000

0.804

November 30, 2020

Aozora Bank, Ltd.(Note 5)

August 31, 2015

300

300

0.678

August 31, 2020

MUFG Bank, Ltd.(Note 5)

October 27, 2015

300

300

0.624

October 27, 2020

500

500

0.447

August 31, 2020

17,30010,100February28, 2019

Remarks（Note 4）

Unsecured/
Unguaranteed

July 29, 2020

January 31, 2014

Subtotal

Repaymentof principal
in full on
maturity
date

Use

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

MUFG Bank, Ltd.(Note 5)

MUFG Bank, Ltd.(Note 5)

Debt
Financing
Method46

Classification

LenderDrawdown
Date

Balance at theBalance

beginningat the endof period(mln yen)of period(mln yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)

Sumitomo Mitsui Banking Corporation

January 31, 2014

1,000

1,000

1.221

July 31, 2021

Aozora Bank, Ltd.

March 28, 2014

1,350

1,350

1.183

March 31, 2021

Sumitomo Mitsui Banking Corporation

April 30, 2014

2,000

2,000

1.267

April 30, 2022

Aozora Bank, Ltd.

April 30, 2014

1,500

1,500

1.267

April 30, 2022

MUFG Bank, Ltd.

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Resona Bank, Ltd.

April 30, 2014

1,000

1,000

1.267

April 30, 2022

Sumitomo Mitsui Banking Corporation

1,100

1,100

MUFG Bank, Ltd.

1,100

1,100

Mizuho Bank, Ltd.

600

600
0.916

August 7, 2021

Aozora Bank, Ltd.

350

350

Resona Bank, Ltd.

300

300

Mizuho Trust & Banking Co., Ltd.

300

300

1,000

1,000

0.996

August 7, 2021

Sumitomo Mitsui Banking Corporation

400

400

MUFG Bank, Ltd.

400

400

Mizuho Bank, Ltd.

300

300
1.254

August 7, 2023

Resona Bank, Ltd.

200

200

Mizuho Trust & Banking Co., Ltd.

200

200

Aozora Bank, Ltd.

150

150

August 7, 2014

Development Bank of Japan Inc.(Note 3)

August 7, 2014

August 7, 2014

Debt
Financing
MethodUse

Remarks

Long-term borrowings

Development Bank of Japan Inc.(Note 3)

August 7, 2014

500

500

1.320

August 7, 2023

Sumitomo Mitsui Banking Corporation

August 29, 2014

600

600

0.945

August 31, 2021

MUFG Bank, Ltd.

August 29, 2014

600

600

0.945

August 31, 2021

Aozora Bank, Ltd.

August 29, 2014

500

500

0.945

August 31, 2021

Mizuho Bank, Ltd.

November 14, 2014

950

950

1.083

Sumitomo Mitsui Banking Corporation

February 5, 2015

1,200

1,200

0.875

MUFG Bank, Ltd.

February 5, 2015

1,200

1,200

1.105

Aozora Bank, Ltd.

April 30, 2015

2,000

2,000

0.875

November 30, 2022 Repayment
Unsecured/
January 31, 2022 of principal
in full on （Note 4） Unguarant
January31, 2024
maturityeed
date
April 30, 2022

Resona Bank, Ltd.

April 30, 2015

1,500

1,500

0.987

April 30, 2023

MUFG Bank, Ltd.

April 30, 2015

2,000

2,000

1.100

April 30, 2024

Sumitomo Mitsui Banking Corporation

April 30, 2015

1,000

1,000

1.265

April 30, 2025

1,100

1,100

1,100

1,100

1,000

1,000

1.115

July 29, 2022

300

300

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

July 29, 2015

Mizuho Bank, Ltd.
Sompo Japan Nipponkoa Insurance Inc.

1,000

1,000

Resona Bank, Ltd.

August 31, 2015

1,100

1,100

0.923

August 31, 2022

Mizuho Trust & Banking Co., Ltd.

August 31, 2015

700

700

0.923

August 31, 2022

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2015

950

950

1.047

August 31, 2023

MUFG Bank, Ltd.

August 31, 2015

1,700

1,700

1.169

August 31, 2024

Mizuho Bank, Ltd.

August 31, 2015

950

950

1.169

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2015

2,000

2,000

1.345

August 31, 2025

Development Bank of Japan Inc.(Note 3)

August 31, 2015

1,000

1,000

1.193

August 31, 2024

MUFG Bank, Ltd.

October 27, 2015

1,000

1,000

1.156

April 27, 2025

MUFG Bank, Ltd.

April 28, 2016

1,000

1,000

0.819

April 28, 2025

Sumitomo Mitsui Banking Corporation

April 28, 2016

2,500

2,500

0.903

April 30, 2026

MUFG Bank, Ltd.(Note 3)

August 1, 2016

1,000

1,000

0.660

July 31, 2025

Mizuho Bank, Ltd.(Note 3)

August 30, 2016

1,500

1,500

0.816

August 31, 2026

Aozora Bank, Ltd.

August 31, 2016

1,000

1,000

0.713

August 31, 2024

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2016

1,000

1,000

0.797

August 31, 2025

Resona Bank, Ltd.

August 31, 2016

500

500

0.797

August 31, 2025

47

Classification

LenderDrawdown
Date

Balance at theBalance

beginningat the endof period(mln yen)of period(mln yen)

Averageinterest
rate(Note 1)

Payment
due date(Note 2)Long-term borrowings

MUFG Bank, Ltd.(Note 3)

August 31, 2016

2,000

2,000

0.670

August 31, 2025

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

August 31, 2016

500

500

0.751

August 31, 2025

Sumitomo Mitsui Banking Corporation

August 31, 2016

3,000

3,000

0.906

August 31, 2026

Development Bank of Japan Inc.(Note 3)

November 1, 2016

1,000

1,000

0.773

October 31, 2025

Resona Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

Shinsei Bank, Ltd.

August 22, 2017

1,000

1,000

0.900

August 22, 2027

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

August 22, 2017

1,200

1,200

0.928

August 22, 2027

Development Bank of Japan Inc. (Note 3)

August 22, 2017

1,000

1,000

0.928

August 22, 2027

Mizuho Bank, Ltd.(Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

THE BANK OF FUKUOKA, LTD.(Note 3)

August 22, 2017

500

500

0.928

August 22, 2027

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.501

February 28,2023

MUFG Bank, Ltd.

August 31, 2017

1,500

1,500

0.501

February 28, 2023

Aozora Bank, Ltd.

August 31, 2017

1,500

1,500

0.582

February 29, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,000

1,000

0.582

February 29, 2024

MUFG Bank, Ltd.

August 31, 2017

1,000

1,000

0.582

February 29, 2024

Mizuho Bank, Ltd.

August 31, 2017

500

500

0.624

August 31, 2024

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

August 31, 2017

500

500

0.661

August 31, 2024

Sumitomo Mitsui Banking Corporation

August 31, 2017

1,500

1,500

0.665

February 28, 2025

Resona Bank, Ltd.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2017

1,000

1,000

0.749

February 28, 2026

Sumitomo Mitsui Banking Corporation

July 30, 2018

1,000

1,000

0.409

July 31, 2021

Shinsei Bank, Ltd.

July 30, 2018

1,000

1,000

0.409

July 31, 2021

MUFG Bank, Ltd.

July 30, 2018

500

500

0.409

July 31, 2021

Mizuho Bank, Ltd.

July 30, 2018

500

500

0.409

July 31, 2021

Nippon Life Insurance Company(Note 3)

July 30, 2018

0.900

January30, 2027

0.799

February2, 2026

500

500

Sumitomo Mitsui Banking Corporation

1,500

1,500

MUFG Bank, Ltd.

1,400

1,400

Mizuho Bank, Ltd.

900

900

Development Bank of Japan Inc.

500

500

Nippon Life Insurance Company

500

500

400

400

Shinsei Bank, Ltd.

400

400

Sumitomo Mitsui Trust Bank, Limited.

400

400

Mizuho Trust & Banking Co., Ltd.

400

400

Aozora Bank, Ltd.

300

300

THE BANK OF FUKUOKA, LTD.

300

300

Resona Bank, Ltd.

August 2, 2018

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,000

1,000

0.509

August 31, 2022

MUFG Bank, Ltd.

August 31, 2018

400

400

0.509

August 31, 2022

Development Bank of Japan Inc.(Note 3)

August 31, 2018

1,600

1,600

0.498

August 31, 2022

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,200

1,200

0.592

August 31, 2023

Aozora Bank, Ltd.

August 31, 2018

1,000

1,000

0.592

August 31, 2023

MUFG Bank, Ltd.

August 31, 2018

800

800

0.592

August 31, 2023

Sumitomo Mitsui Banking Corporation

August 31, 2018

1,050

1,050

0.914

February 28,2027

Resona Bank, Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Sumitomo Mitsui Trust Bank, Limited.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Trust & Banking Co., Ltd.

August 31, 2018

500

500

0.914

February 28, 2027

Mizuho Bank, Ltd.

August 31, 2018

250

250

0.914

February 28, 2027

Development Bank of Japan Inc.(Note 3)

August 31, 2018

1,400

1,400

0.884

February 28, 2027

MUFG Bank, Ltd.(Note 3)

August 31, 2018

800

800

0.825

February 28, 2027

Debt
Financing
MethodUse

Remarks

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

48

Classification

Drawdown
Date

LenderBalance at theBalance

beginningat the endof period(mln yen)of period(mln yen)

Averageinterest
rate

Payment
due date(Note 1)
(Note 2)Long-term borrowings

Nippon Life Insurance Company(Note 3)

September 28, 2018

700

700

0.920

September 30, 2026

Shinsei Bank, Ltd.

September 28, 2018

1,000

1,000

1.031

September 30, 2028

Sumitomo Mitsui Trust Bank, Limited.

September 28, 2018

800

800

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

September 28, 2018

500

500

1.031

September 30, 2028

Mizuho Trust & Banking Co., Ltd.

June 3, 2019

400

400

0.363

November 30, 2024

Mizuho Bank, Ltd.(Note 3)

June 3, 2019

2,000

2,000

0.330

May 31, 2025

Shinsei Bank, Ltd.

June 3, 2019

500

500

0.484

November 30, 2025

Shinsei Bank, Ltd.

July 31, 2019

500

500

0.272

January 31, 2023

Mizuho Bank, Ltd.

July 31, 2019

800

800

0.299

July 31, 2023

Sumitomo Mitsui Banking Corporation

September 17, 2019

-

1,000

0.572

August 31, 2026

MUFG Bank, Ltd.

October 29, 2019

-

500

0.325

April 30, 2023

Resona Bank, Ltd.

October 29, 2019

-

450

0.336

April 30, 2024

MUFG Bank, Ltd.

November 29, 2019

-

1,500

0.600

November 30, 2026

MUFG Bank, Ltd.

January31, 2020

-

900

0.444

July 31, 2021

Mizuho Bank, Ltd.

January31, 2020

-

500

0.444

July 31, 2021

Shinsei Bank, Ltd.

January31, 2020

-

500

0.329

July 31, 2023

Mizuho Trust & Banking Co., Ltd.

January31, 2020

-

300

0.329

July 31, 2023

Sumitomo Mitsui Trust Bank, Limited.

January31, 2020

-

300

0.329

July 31, 2023

THE BANK OF FUKUOKA, LTD.

January31, 2020

-

200

0.329

July 31, 2023

Subtotal

101,100

107,250

Total

120,900

120,650

Debt
Financing
MethodUse

Remarks

Repaymentof principal
Unsecured/in full on （Note 4） Unguarantmaturityeed
date（Note 1）All debts except for the following Note 3 are borrowing at a floating rate.
（Note 2）Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal places. Also, with regard
to borrowings for which interest rate swap transactions and other derivative transactions were implemented in order to hedge the interest rate
volatility risk, the weighted average interest rates taking into consideration the effects of the interest rate swaps and other derivatives areindicated.
（Note 3）Borrowings is applied at a fixed rate.
（Note 4）All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses are included)
and repayment of debts.
（Note 5）Debts included in the classification of current portion of long-term loans payable from the 16th fiscal period and in of long-term loans payablein the 15th fiscal period.
（Note 6）Partial prepayment of 2,000 million yen has been made on December 30, 2019.

（3）Investment corporation bonds
Outstanding Investment corporation bonds as of January 31, 2020 are as follows.
SeriesFirst Series Unsecured
Investment Corporation
Bonds
Second Series Unsecured
Investment Corporation
Bonds
Third Series Unsecured
Investment Corporation
Bonds
Fourth Series Unsecured
Investment Corporation
Bonds
Fifth Series Unsecured
Investment Corporation
Bonds
Sixth Series Unsecured
Investment Corporation
Bonds（Social Bond）
Total

Date of issue

Balance atBalance at thethe beginning
Interest rate
end of periodof period（%）(mln yen)(mln yen)

Repayment dateAugust 30, 2016

1,000

1,000

0.200

August 30, 2021

August 30, 2016

1,000

1,000

0.540

August 28, 2026

August 30, 2016

1,000

1,000

0.800

August 30, 2028

November 30,
2018

1,000

1,000

0.410

November 30,
2023

November 30,
2018

1,000

1,000

0.850

November 30,
2028

December 12,
2019

－

2,000

0.750

December 20,
2029

5,000

7,000

Repayment
methodRepaymentof principal
in full on
maturitydate

Use

Remarks（Note 1）

（Note 3）（Note 2）

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

49

（Note 3）Ranking pari passu among the specified investment corporation bonds.

（4）Status of Short-Term Investment Corporation Bonds
Not applicable（5）Investment Unit warrants
Not applicable50

6．Acquisitions and sales during the 16th fiscal period(1) Acquisitions and sales of real estate properties and asset-backed securities, etc., infrastructure assets andinfrastructure-related assets
Acquisition
No.

Type

Name

Acquisition
date

Sale

Acquisition
price(Million yen) Sales date

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

(Note 1)

Trust
BeneficiaryInterest
Trust
BeneficiaryInterest
Trust
BeneficiaryInterest

T-84

KDX Residence NishiFunabashi

September 17
2019

975

－

－

－

－

T-86

KDX Residence Asagaya II

October 29
2019

939

－

－

－

－

R-34

Melody Heim Gotenyama－

27－ January
2020

480

420

39

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

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

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

Type

No.

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

Appraiser

As ofAppraisal
date(Note 1)

Trust
Acquis Beneficiary
itionInterest
Trust
AcquisBeneficiary
itionInterest
Trust
Sale
BeneficiaryInterest

KDX Residence NishiFunabashi

September
17, 2019

975

1,060

Japan Real Estate
Institute

September
1, 2019

T-86 KDX Residence Asagaya II

October 29,
2019

939

982

Japan Real Estate
Institute

September
1, 2019

R-34

January 27,
2020

480

531

Japan Real Estate
Institute

July 31,
2019

T-84

Melody Heim Gotenyama（Note 1）“Acquisition price” and “Sale price” represent the purchase and Sales amount (excluding acquisition costs and consumption taxes)of each property or beneficiary right of real estate in trust as stated in the Sales and Purchase Agreement.
（Note 2）“Appraisal value” of specific assets above was calculated in accordance with the guideline of “Real Estate Appraisal Standards,
Chapter 3, Appraisal of Securitized Real Estate.”(ⅱ) Others
With regard to transactions and contracts entered by the Investment Corporation whose values shall be
investigated based on the Act on Investment Trusts and Investment Corporations, Crowe Toyo & Co. performs
an investigation of transactions. For the fiscal period from August 1, 2019 to January 31, 2020, the transactions
subject to such investigation were eight interest rate swap transactions, for which the Investment Corporation
received reports from Crowe Toyo & Co. For this purpose, investigation was performed with respect to detailsof the interest swap contracts, such as the name of counter parties, contract amounts, or the period of transactions.
This survey is not a part of the audit for financial statements, and there is no guarantee of fairness of the priceand internal management system.

51

（4）Transactions with Related-Party(ⅰ) Transactions
Not applicable(ⅱ) Amounts of Fees Paid
Category
Rent paid

Total paid fees（A）
26 million yen

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

Ratio to total（B）/（A）
6.2％(Note 1) A related-party, etc. is a defined as a related-party, etc. of the asset management company having executed an asset management
entrustment agreement with the Investment Corporation provided in Article 123 of the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations and Article 26, Item 27 of Rules on asset management reports, pertaining toinvestment trusts and investment corporations of the Investment Trusts Association, Japan.
(Note 2）The amount of payments including expenses for repair work of which orders were placed to related-party, etc. during the 16th fiscal
period other than the above paid fees is as follows.
Kenedix Engineering, Inc.
Construction costs recorded as capital expenditure: 38 million yen
Repair costs: 2 million yen（5）Transactions with asset management company related to Concurrent Operations Carried Out by the
Asset Management Company
There is no transaction with the Asset Management Company, KFM, regarding to the Type II Financial Instruments
Business, and Building Lots and Buildings Transaction Business. Furthermore, KFM does not concurrently engage
in any of Type I Financial Instruments Business, Real Estate Specified Joint Business.

7．Accounting(1)

Assets, liabilities, principal and profit/loss

Please see the Balance Sheet, the Statement of Income and Retained Earnings, the Statement of Unitholders’ Equity,
Notes and the Calculation pertaining to Distributions below.

(2)

Change to calculation of depreciation amountNot applicable(3)

Change to real estate and other infrastructure assets appraisal method
Not applicable(4) Disclosure pertaining to investment trust beneficial right securities, etc.
The status of investment units held by the Asset management Company of the Investment Corporation (Kenedix
Real Estate Fund Management, Inc) is as follows.

(ⅰ) Acquisitions
Date of acquisition

Number of units

Number of disposal
units

Number of units held

March 1, 2018 (Note)

1

-

1

Accumulated total

1

-

1

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

(ⅱ) Ownership

13th Fiscal Period
From February 1, 2018 to July 31, 2018
14th Fiscal Period
From August 1, 2018 to January 31, 2019

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

Asset held at the endof fiscal period（Million yen）

Ratio to total number ofunits issued (%)

1

0

0.0

1

0

0.0

52

15th Fiscal Period
From February 1, 2019 to July 31, 2019
16th Fiscal Period
From August 1, 2019 to January 31, 2020

1

0

0.0

1

0

0.0

(ⅱ) Ownership

13th Fiscal Period
From February 1, 2018 to July 31, 2018
14th Fiscal Period
From August 1, 2018 to January 31, 201915th Fiscal Period
From February 1, 2019 to July 31, 2019
16th Fiscal Period
From August 1, 2019 to January 31, 2020

(5)

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

Asset held at theend of fiscal period（Million yen）

Ratio to total numberof units issued (%)

1

0

0.0

1

0

0.0

1

0

0.0

1

0

0.0

Disclosure pertaining to overseas real estate holding corporations
Not applicable(6)

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

8. Other(ⅰ) Unitholders general meeting
The 6th General Meeting of Unitholders of the Investment Corporation was held on October 30, 2019.
The main outlines of the matters approved by the unitholders' general meeting are as follows.
AgendaOverview

Changed rules for the following matters.
(1) (i) For the purpose of improving the link between the amount of the asset management fee
payable to the asset management company and unitholders’ returns, (a) lowering the fee
rate of Asset Management Fee I which is linked to the total assets of the Investment
Corporation from 0.3% to 0.27% and (b) changing the calculation method of AssetManagement Fee II which is linked to the distributable amount, from multiplying the
distributable amount by 5.0% to multiplying the distributable amount by the earnings perunit before deduction of Asset Management Fee II and then multiplying such amount by
0.00145% as well as (ii) in order to give the asset management company incentive toimprove unitholders’ returns, newly introducing a concept of performance relative to TSE
REIT index as an index to compare with the degree of ups and downs of the price of theAgenda No. 1:
Partial Changes to Articles ofIncorporation

investment unit of the Investment Corporation so that if such comparison of the degree ofthe ups and downs of the investment unit of the Investment Corporation with that of TSE
REIT index (including dividends) results in favorable outcome, there will be additional
compensation, and newly establishing Asset Management Fee III which will be paid when
the performance relative to TSE REIT index is positive. If calculation of the performance
relative to TSE REIT index results in negative outcome for a particular business period,
such outcome will be carried over only to the following business period.
Adding a provision to make necessary adjustment to the formulae of Asset Management
Fee II and III in order to make neutral the effect on Asset Management Fee II and III if
the Investment Corporation acquires its own investment units (related to Exhibit of thecurrent Articles of Incorporation).
(2) In order to make the amendments to the Articles of Incorporation set forth above in (1)effective from February 1, 2020 when the 17th business period of the Investment

53

Corporation commences, a provision regarding such effect will be set forth in the
supplementary provisions (related to Chapter 11 and Article 41 of the proposed
amendment).
(3) In addition to the above, expressions, and words and phrases will be modified and revisedfor integrity with expressions in applicable laws, clarification of the contents of provisions
or otherwise.
Agenda No. 2:
Election of Two (2) Executive
Directors

Two executive directors, Keisuke Sato and Katsue Okuda were appointed. The term ofoffice shall be two years beginning from November 1, 2019.

Agenda No. 3:
Election of One (1) Alternative
Executive Director

One alternative executive director, Shin Yamamoto was appointed. The effective term
shall be from November 1, 2019, on which the executive directors will be appointed
pursuant to Proposal No. 2, until October 31, 2021 on which the term of office of theexecutive directors will expire.

Agenda No. 4:
Election of Three (3) Supervisory
Directors

Three supervisory directors, Osamu Chiba, Satoshi Ogawa and Soichiro Iwao wereappointed. The term of office shall be two years beginning from November 1, 2019.

(ⅱ) Board of directors Meeting
The following is an outline of the major agreements and changes approved by the Investment Corporation's Boardof Directors during the 16th fiscal period.
Date of approval

Items

Overview

September 12, 2019

Regarding the conclusion of amemorandum of amendment to an
asset management agreement inaccordance with the revision of thearticles of incorporation of theInvestment Corporations

As a result of the amendment to the articles of Incorporation, theInvestment Corporation entered into a memorandum of agreement withasset management company for the amendment of the asset management
entrustment agreement on October 30, 2019.

（2）OtherUnless otherwise specified, amounts are rounded down and ratios are rounded off.

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

54

Financial Statements(16th Fiscal Period: From August 1, 2019 to January 31, 2020)

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

55

56

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Balance Sheet
As of January 31, 2020
16th Fiscal Period
as of January 31, 2020

15th Fiscal Period
as of July 31, 2019(in thousands of yen)
ASSETS
Current assets
Cash and deposits (Notes 8 and 10)
Cash and deposits in trust (Notes 8 and 10)
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Noncurrent assets
Property, plant and equipment (Notes 15 and 20)
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment, net
Intangible assets
Leasehold right in trust (Notes 15 and 20)
Other
Total intangible assets
Investments and other assets
Investment securities (Notes 10 and 19)
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¥10,978,807
10,187,104
37,3738,640
589
21,212,515¥10,296,548
9,903,118
36,005
12,815856
20,249,344

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

1,798,041
99,911,220(10,381,143)
89,530,077
1,073,137(191,362)
881,774
1,436,362(321,177)
1,115,184
523,059(65,444)457,614
138,484,736
232,267,430

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

1,228,912
5,563
1,234,475

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

2,398
89,0971,014,728
1,106,223
234,608,129

49,30335,32756,62072,944

105,924¥256,665,810

108,272¥254,965,747

57

16th Fiscal Period
as of January 31, 2020

15th Fiscal Period
as of July 31, 2019(in thousands of yen)
LIABILITIESCurrent liabilities
Operating accounts payable¥595,433¥772,751

Short-term loans payable (Notes 10 and 22)

3,300,000

2,500,000

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

10,100,000
294,697
35,152605

13,200,000
305,806
27,560605

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

53,827

21,474

1,173,813
59,879

1,148,654
58,742

4,090

10,09815,617,497

18,045,693

Investment corporation bonds (Notes 10 and 21)

7,000,000

5,000,000

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

107,250,000
3,059,671

105,200,000
3,099,642

4,689,541

4,493,753

67,522

67,338Tenant lump sum deposits in trust
Asset retirement obligations (Note 14)

481,213517,915

122,547,949

118,378,649

138,165,447

136,424,343

99,731,514

99,731,514

13,187,100

13,187,100

Reserve for temporary difference adjustments (Note 4)

1,960,000

1,980,000

Total voluntary retained earnings

1,960,000

1,980,000

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

Unappropriated retained earnings

4,072,277

4,125,881

19,219,377
118,950,891

19,292,981
119,024,495

Deferred gains or losses on hedges (Notes 10 and 11)(450,527)(483,092)

Total valuation and translation adjustments(450,527)(483,092)

Total surplus
Total unitholders' equity
Valuation and translation adjustments

Total net assets (Note 3)

118,500,363

118,541,403

Total liabilities and net assets¥256,665,810¥254,965,747

See accompanying notes to the financial statements.

58

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Income and Retained Earnings
For the period from August 1, 2019 to January 31, 2020
16th Fiscal Period
from August 1, 2019
to January 31, 2020

15th Fiscal Period
from February 1, 2019
to July 31, 2019(in thousands of yen)
Operating revenues
Rent revenue-real estate (Note 6)
Other lease business revenue (Note 6)
Gain on sales of real estate property (Note 6)
Total operating revenues
Operating expenses
Expenses related to rent business (Note 6)
Asset management fees
Asset custody fees
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Dividends and redemption-prescription
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes (Note 13)
Current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings¥7,472,039
555,566
39,013
8,066,618¥7,342,246
590,778
203,392
8,136,417

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

2,915,721
562,274
13,40445,9508,100
231,968
3,777,419
4,358,998

41
1,394
1,435

38
765
463
1,268

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

485,799
13,825100,264
3,243
15,269618,4023,741,863
3,741,863

605
605
3,613,397
458,879¥4,072,277

605
605
3,741,258
384,622¥4,125,881

See accompanying notes to the financial statements.

59

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Changes in Net Assets
For the period from August 1, 2019 to January 31, 2020

Unitholders'
capitalBalance as of January 31, 2019
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, 2019 (Note 7)
Changes of items during the period
Reversal of reserve for temporary
difference adjustments
Dividends from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during the period
Balance as of January 31, 2020 (Note 7)¥93,226,228

Capitalsurplus¥13,187,100

Unitholders' equity
Surplus
Voluntary retained earnings
UnappropriatedReserve for
Total
retained
temporaryvoluntaryearnings
difference
retained
adjustments
earnings(in thousands of yen)
¥2,000,000¥2,000,000¥3,875,050

Total
unitholders'equityTotal
surplus¥19,062,150

6,505,285

6,505,285(20,000)

6,505,285¥99,731,514¥99,731,514¥112,288,379¥13,187,100¥13,187,100(20,000)(20,000)¥1,980,000(20,000)¥1,980,000(20,000)(20,000)(20,000)¥1,960,000(20,000)¥1,960,000

20,000--(3,510,428)
3,741,258(3,510,428)
3,741,258(3,510,428)
3,741,258

250,830¥4,125,881

230,830¥19,292,981

6,736,116¥119,024,495

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

Valuation and translation adjustments
Deferred gains orlosses on hedges

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

Total valuationand translation
adjustments(in thousands of yen)¥(337,222)¥(337,222)

Total net assets¥111,951,157
6,505,285(3,510,428)
3,741,258(145,870)(145,870)(145,870)(145,870)¥(483,092)(145,870)¥(483,092)

6,590,246¥118,541,403(3,687,001)
3,613,397

32,56432,56432,56432,564¥(450,527)

32,564¥(450,527)(41,039)¥118,500,363

See accompanying notes to the financial statements.

60

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATIONStatement of Cash Flows
For the period from August 1, 2019 to January 31, 2020
16th Fiscal Period
from August 1, 2019
to January 31, 2020

15th Fiscal Period
from February 1, 2019
to July 31, 2019(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Decrease in net property, plant and equipment held in trust due to sale
Other, net¥3,614,002
1,429,641
3,534
16,324(41)514,152(1,368)4,175
82,398(9,042)32,35225,15969,352420,922
4,194¥3,741,863
1,392,068
3,243
15,269(38)
499,624(9,393)
338,402(5,365)(109,149)
7,522
10,061
52,37245,046482,312(8,827)

Subtotal

6,205,759

6,455,011

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

41(519,985)
135

38(509,888)
2,074

Net cash provided by (used in) operating activities

5,685,950

5,947,236(2,922,615)
2,276
(72)
72
(160,351)
120,380(72,386)
268,174(13,813,975)(162,428)
103,455(60,000)(141,168)
558,072(79,827)
168,384

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Proceeds from investment securities
Payments for lease and guarantee deposits
Proceeds from lease and guarantee deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant lump sum deposits in trust
Proceeds from tenant lump sum deposits in trust
Net cash provided by (used in) investing activities(2,764,521)(13,427,488)

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

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

2,500,000(2,050,000)
4,700,000(2,500,000)
6,462,083(3,510,096)

Net cash provided by (used in) financing activities(1,955,184)

5,601,986

Net increase (decrease) in cash and cash equivalents

966,243(1,878,264)

Cash and cash equivalents at the beginning of period

20,199,667

22,077,932

Cash and cash equivalents at the end of period (Note 8)¥21,165,911¥20,199,667

See accompanying notes to the financial statements.

61

KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION

Notes to Financial Statements
For the period from August 1, 2019 to January 31, 2020

1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Kenedix Residential Next Investment Corporation (“the Investment Corporation”) was established on November 15, 2011 under the Act on
Investment Trusts and Investment Corporations of Japan (“the Investment Trust Act”). On April 26, 2012, the Investment Corporation was listed on
the Real Estate Investment Trust Market of the Tokyo Stock Exchange (Securities Code: 3278). The Investment Corporation implemented a 2-for-1
split of its investment units held by unitholders set forth or recorded in the final unitholder registry on February 28, 2018 with March 1, 2018 as theeffective date. And also on March 1, 2018, the Investment Corporation conducted an absorption-type merger (“the Merger”) whereby theInvestment Corporation was the surviving corporation and Japan Senior Living Investment Corporation (“JSL”) was the dissolving corporation.
After "the Merger", the Investment Corporation raised funds through two public offerings and third-party allotment. As of January 31, 2020, theend of the 16th fiscal period, the number of investment units issued and outstanding totaled 907,458 units.
The Investment Corporation is externally managed by Kenedix Real Estate Fund Management, Inc. (“the Asset Management Company”), a
company that was formed with personnel from Kenedix, Inc. and adheres to the core philosophies of Kenedix, Inc., that is, to provide management
services from the perspective of real estate investors as an independent real estate management company. As the asset manager, the AssetManagement Company shall provide flexible and speedy real estate investment and management services based on the strategies of theInvestment Corporation: “Flexible pursuit for appropriate investment and profit opportunities with comprehension of the real estate market trends”
and “Speedy execution based on expeditious information collection and judgement.”
During the 16th fiscal period, the Investment Corporation acquired 2 residential properties (total acquisition price of ¥1,914 million) and sold 1
residential property (acquisition price of ¥400 million, disposition price of ¥480 million). As the result, the Investment Corporation has a portfolio
comprised of 144 properties (total acquisition price of ¥234,766 million) as of January 31, 2020, the end of the 16th fiscal period. The portfolio
consists of 119 residential properties (total acquisition price of ¥178,887 million), 24 healthcare properties (total acquisition price of ¥54,128 million)and 1 other property (acquisition price of ¥1,750 million).
The occupancy rates of the overall portfolio including land with leasehold interest were 97.5% and 97.6% as of the end of the 15th and 16th
fiscal period, respectively. Furthermore, the average occupancy rates of the properties for residential and healthcare were 96.5% and 100.0% as ofthe end of 16th fiscal period.
During the 15th and 16th fiscal period, the Investment Corporation made borrowings of ¥4,300 million and ¥5,000 million for the repayment ofdebt matured. During the 15th fiscal period, the Investment Corporation made new borrowings of ¥2,900 million upon acquiring properties. During
the 16th fiscal period, the Investment Corporation made new borrowings of ¥1,950 million upon acquiring properties and partially paid off loan
amounting to 2,000 million yen from the investment corporation bonds issued. As a result, the balance of borrowings as of the end of the 15th and16th fiscal period stood at ¥120,900 million and ¥120,650 million, respectively. The balance of interest-bearing debt including investment
corporation bonds as of the end of the 15th and 16th periods, was ¥ 125,900 million and ¥ 127,650 million, respectively.
Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements in accordance with accounting principles
generally accepted in Japan (Japanese GAAP), including provisions set forth in the Investment Trust Act, the Companies Act of Japan, theFinancial Instruments and Exchange Act of Japan and related regulations, which are different in certain respects as to the application anddisclosure requirements of International Financial Reporting Standards.
The accompanying financial statements are a translation of the audited financial statements of the Investment Corporation, which wereprepared in accordance with Japanese GAAP and were presented in the Securities Report of the Investment Corporation filed with the Kanto Local
Finance Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications have been made to the financial
statements issued domestically in order to present them in a format that is more familiar to readers outside Japan. In addition, the notes tofinancial statements include certain information that might not be required under Japanese GAAP but is presented herein as additional information.
The Investment Corporation fiscal period is a six-month period which ends at the end of January or July. The Investment Corporation does notprepare consolidated financial statements because it has no subsidiaries.

62

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(A) Securities
Other securities without market value are stated using the moving average cost method. Equity investments in an anonymous association
are stated, the amount equivalent to the corresponding equity interests including net amount of gain or loss from the anonymous association.
(B) Property and Equipment (including trust assets)
Property and equipment are stated at cost. Depreciation of property and equipment is calculated on a straight-line basis over the estimateduseful lives of the assets ranging as stated below:

Buildings

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

From February 1, 2019
to July 31, 20192-69 years

Structures

3-65 years

3-65 years

Machinery and equipment

8-40 years

8-40 years

Tools, furniture and fixtures

2-30 years

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

Taxes on Property and Equipment
Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on properties on a calendar
year basis. These taxes are generally charged to operating expenses for the period, for the portion of such taxes corresponding to said period.
Under Japanese tax regulations, the seller of the property is liable for these taxes on the property from the date of disposal to the end of thecalendar year in which the property is disposed. The seller, however, is generally reimbursed by the purchaser for these accrued
property-related tax liabilities.

63

When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes related to the period
following the purchase date of each property through the end of the calendar year. The amounts of those allocated portions of theproperty-related taxes are capitalized as part of the acquisition costs of the related properties. Capitalized property-related taxes amounted to¥33,037 thousand and ¥1,263 thousand as of July 31, 2019 and January 31, 2020, respectively.
(J) Income Taxes
Deferred tax assets and liabilities are computed based on the difference between the financial statements and income tax bases of assets
and liabilities using the statutory tax rates.
(K) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Non-deductible consumption taxes
applicable to the acquisition of assets are included in the cost of acquisition for each asset.
(L) Derivative Financial Instruments
The Investment Corporation enters into derivative transactions to hedge risks prescribed in its Articles of Incorporation based on its risk
management policies. The Investment Corporation hedges interest rate volatility risk of its interest payments on its borrowings by utilizing
interest rate swap as hedging instruments.
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the time of judgment of its
effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments are compared and a judgment is madebased on changed amount, etc. However, an assessment of the effectiveness of hedging activities is omitted in the case of interest rate
swaps and other derivatives that meet the requirements for special treatment.
(M) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly liquid, readily
convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or less from the date of purchase.
(N) Presentation of Amounts
Amounts of less than one thousand yen are truncated in the Japanese financial statements prepared in accordance with Japanese GAAP
and filed with regulatory authorities in Japan. Unless otherwise noted, amounts are rounded down and ratios are rounded off in theaccompanying financial statements. Totals shown in the accompanying financial statements do not necessarily agree with the sums of theindividual amounts.

64

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

4. RESERVE FOR TEMPORARY DIFFERENCE ADJUSTMENTS
As of January 31, 2020
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
period(in thousands of yen)

Reversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversalAppropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥1,980,000¥ -¥20,000¥1,960,000

adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period
starting from the next fiscal period after the fiscal period, in which the initial amount was reserved.
As of July 31, 2019
The following summarizes reserve for temporary difference adjustments.
Balance atReserve
Initial amountthe beginningduring theof the period
period(in thousands of yen)

Reversalduring theperiodBalance atthe end of
the period

Reason for reserve andreversalAppropriation for cash
distribution* The Investment Corporation reserved part of gain on negative goodwill incurred in the 13th fiscal period as reserve for temporary difference
Gain on negative goodwill*¥2,000,000¥2,000,000¥ -¥20,000¥1,980,000

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

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

As of July 31, 2019(in thousands of yen)

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

-

¥

-

65

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, 2019 to January 31, 2020 and from February 1,
2019 to July 31, 2019 consist of the following:
From August 1, 2019
From February 1, 2019
to January 31, 2020
to July 31, 2019(in thousands of yen)
A. Rental and other operating revenues:
Rental revenues¥7,089,789¥6,964,736

Rental revenues from limited proprietary rights of land

43,74943,750Common area charges

338,499

333,759

7,472,039

7,342,246

Parking space rental revenues

206,829

206,653

Miscellaneous

348,736

384,125

Subtotal
Others:Subtotal
Total rental and other operating revenues

555,566

590,778¥8,027,605¥7,933,025¥409,507¥425,193

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

95,29995,304Taxes

475,323

476,820

Repairs and maintenance281,724

300,657

Insurance

12,023

11,671

Trust fees

55,27253,335

Depreciation

1,428,865

1,391,292

Others153,286

161,445¥2,911,303¥2,915,721¥5,116,301¥5,017,303

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, 2019 to January 31, 2020

(in thousands of yen)
Melody Heim Gotenyama
Revenue from sale of real estate property¥480,000Cost of real estate property

420,922

Other sales expenses

20,063Gain on sales of real estate property¥39,013

From February 1, 2019 to July 31, 2019(in thousands of yen)
KDX Residence Shin-Osaka
Revenue from sale of real estate property¥690,000Cost of real estate property

482,312

Other sales expenses
Gain on sales of real estate property

4,295¥203,392

66

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, 2019
to January 31, 2020
10,000,000 units

From February 1, 2019
to July 31, 201910,000,000 units

907,458 units

907,458 units

Total number of investment units issued and outstanding

8. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following as of January 31, 2020 and July 31, 2019:
As of January 31, 2020

As of July 31, 2019(in thousands of yen)
Cash and deposits¥10,978,807¥10,296,548

Cash and deposits in trust

10,187,104

9,903,118

Cash and cash equivalents¥21,165,911¥20,199,667

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, 2020 and July 31, 2019 are as follows:
As of January 31, 2020

As of July 31, 2019(in thousands of yen)Due in 1 year

¥12,000¥12,000

Due after 1 year

545,000

551,000

Total¥557,000¥563,000

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, 2020and July 31, 2019 are as follows:
As of January 31, 2020

As of July 31, 2019(in thousands of yen)Due in 1 year

¥3,238,403¥3,265,232

Due after 1 year

19,714,966

20,920,160

Total¥22,953,370¥24,185,392

67

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 8 months for borrowings and also have a redemption
date of a maximum of 9 years and 10 months for investment corporation bonds as of January 31, 2020, the end of the 16th fiscal period, areexposed to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are
exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of theborrowings.
(3) Risk management for financial instruments
a. Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored
by deposits in non-interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. Investment
securities represent equity investments in an anonymous association and are exposed to credit risk of the issuer and interest rate fluctuation risk.
To manage this credit risk, the Investment Corporation regularly evaluates the results of operations and the financial condition of the issuer, etc. In
utilizing derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable
ratings.
b.

Market risk

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

Liquidity risk

Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by
diversifying financial institutions. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fairvalue is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors
could result in a different fair value.

68

(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table.
As of January 31, 2020
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1)

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

Cash and deposits in trust

10,187,104

10,187,104-

Subtotal¥-

21,165,911

21,165,911-(1)

Short-term loans payable

3,300,000

3,300,000-(2)

Current portion of long-term loans payable

10,100,000

10,112,003

12,003(3)

Investment corporation bonds

7,000,000

7,024,300

24,300(4)

Long-term loans payable

107,250,000

107,913,233

663,233

127,650,000

128,349,537

699,537

Subtotal

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

As of July 31, 2019
Carrying amount

Estimated fair value

Difference(in thousands of yen)
(1)

Cash and deposits(2)

Cash and deposits in trust
Subtotal¥10,296,548¥10,296,548¥-

9,903,118

9,903,118-

20,199,667

20,199,667-(1)

Short-term loans payable

2,500,000

2,500,000-(2)

Current portion of long-term loans payable

13,200,000

13,198,325(1,674)(3)

Investment corporation bonds

5,000,000

5,036,600

36,600(4)

Long-term loans payable

105,200,000

106,075,204

875,204

125,900,000

126,810,130

910,130

Subtotal

Derivative transactions*¥(483,092)¥(483,092)¥* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.

-

Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying amount approximates fair value.
Liabilities(1)Short-term loans payable
Since these items are settled in a short period of time with floating interest rates, their carrying amount approximates fair value.
(2)Current portion of long-term loans payable and (4) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount ofprincipal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates
are reflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment
Corporation has not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special
treatment for interest-rate swaps is based on the present value of the total of principal and interest, accounted for together with the applicableinterest-rate swaps, discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowingsof the same type.)69

(3) Investment corporation bonds
The fair value of investment corporation bonds is based on quoted market prices.
Derivative transactions
Please refer to Note 11 “DERIVATIVE TRANSACTIONS”.
Note 2: Financial instruments whose fair values are extremely difficult to recognize(in thousands of yen)Classification

As of January 31, 2020

Investment securities *¥As of July 31, 2019-

¥2,398*Fair values of investment securities are not subject to disclosure of fair value as they have no market value and their fair values are extremely
difficult to recognize.
Loss on valuation of investment securities of ¥5,942 thousand was recognized in the fiscal period ended July 31, 2019.
Note 3: Redemption schedule for financial assets with maturities
As of January 31, 2020
Due in 1 year or
less
Cash anddeposits
Cash anddeposits in trust
Total

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

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

10,187,104¥-¥21,165,911

¥

-

¥

-

-

¥

Due after 4 years
through 5 years

Due after 5 years

¥

¥

-

-

¥

-

-

¥

-

-

¥

-

As of July 31, 2019
Due in 1 year or
less
Cash anddeposits
Cash anddeposits in trust
Total

Due after 1 year
through 2 years¥10,296,548¥

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

9,903,118¥-¥20,199,667

¥

-

¥

-

-

¥

Due after 4 years
through 5 years

Due after 5 years

¥

¥

-

-

¥

-

-

¥

-

-

¥

-

Note 4: Redemption schedule for loans payable and investment corporation bonds
As of January 31, 2020
Due in 1 year or
lessShort-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal¥3,300,000

Due after 1 year
through 2 years

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

Due after 4 years
through 5 years

Due after 5 years

¥

¥

¥

¥

－

－

¥

－

－

－

－

1,000,000－

1,000,000－

5,000,000

10,100,000

14,400,000

18,250,000

14,400,000

12,000,000

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

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

¥

¥

¥

¥

As of July 31, 2019

Short-term loans
payableInvestment
corporation bonds
Long-term loans
payableTotal¥2,500,000

－

－

¥

－

－

－

－

－

1,000,000－

1,000,000

3,000,000

13,200,000

9,450,000

19,650,000

11,550,000

12,800,000

51,750,000¥15,700,000¥9,450,000¥20,650,000¥11,550,000¥13,800,000¥54,750,000

7011. DERIVATIVE TRANSACTIONS
The contract amount and the fair value of interest-rate swap transactions as of January 31, 2020 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodType of derivativetransactions

Hedged items

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

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

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

value is included in the fair value of the hedged long-term loans payable.
The contract amount and the fair value of interest-rate swap transactions as of July 31, 2019 are shown in the following table.
(1) Transactions not subject to hedge accounting
Not applicable(2) Transactions subject to hedge accounting
Hedge
accounting
methodType of derivativetransactions

Hedged items

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

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

Interest rate swap
Based on the amounttransaction:
Long-term¥56,200,000¥48,700,000¥(483,092) provided by counterparty
Receive/floatingloans payablefinancial institutions
and pay/fixedSpecialInterest rate swap
treatment for transaction:
Long-term
38,300,000
36,800,000*
interest-rate Receive/floatingloans payableswaps
and pay/fixed
Total¥94,500,000¥85,500,000¥(483,092)*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair
Accounting
method, inprinciple

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

12. RELATED-PARTY TRANSACTIONS
1．Parent Company, major corporate unitholders and other16th Fiscal Period (August 1, 2019 to January 31, 2020) and 15th Fiscal Period (February 1, 2019 to July 31, 2019): Not applicable
2．Affiliated companies and other16th Fiscal Period (August 1, 2019 to January 31, 2020) and 15th Fiscal Period (February 1, 2019 to July 31, 2019): Not applicable
3．Fellow subsidiary companies and other16th Fiscal Period (August 1, 2019 to January 31, 2020) and 15th Fiscal Period (February 1, 2019 to July 31, 2019): Not applicable
4．Directors, major individual unitholders and other16th Fiscal Period (August 1, 2019 to January 31, 2020) and 15th Fiscal Period (February 1, 2019 to July 31, 2019): Not applicable7113. INCOME TAXESThe Investment Corporation is subject to corporate income taxes at a regular statutory rate of approximately 32%. However, the Investment
Corporation may deduct from its taxable income amounts distributed to its unitholders, provided the requirements under the Special Taxation
Measures Law of Japan are met, including a requirement that it currently distributes in excess of 90% of its net income for the fiscal period in order
to be able to deduct such amounts. If the Investment Corporation does not satisfy all of the requirements, the entire taxable income of theInvestment Corporation will be subject to regular corporate income taxes. Since the Investment Corporation distributed in excess of 90% of its
distributable income in the form of cash distributions totaling ¥3,687 million and ¥3,687 million for the periods ended January 31, 2020 and July 31,
2019, respectively, the distributions were treated as deductible distributions for purposes of corporate income taxes. The effective tax rates on theInvestment Corporation’s income were 0.02% for the periods ended January 31, 2020 and July 31, 2019. The following table summarizes thesignificant differences between the statutory tax rate and the effective tax rate.
From August 1, 2019
to January 31, 2020
31.51%

From February 1, 2019
to July 31, 201931.51%

Deductible cash distributions(30.94)(31.04)

Others(0.55)(0.45)

Effective tax rate

0.02％

0.02%

Statutory tax rate

The significant components of deferred tax assets and liabilities as of January 31, 2020 and July 31, 2019 are as follows:
As of January 31, 2020

As of July 31, 2019(in thousands of yen)
Deferred tax assets:
Valuation difference on assets acquired by merger¥697,994¥720,920

Deferred gains or losses on hedges

141,875

152,608

Asset retirement obligations

21,242

21,272

Loss on valuation of investment securities

-

1,872

Amortization of leasehold right in trust

723

181

Other

20

-

Subtotal deferred tax assets

861,856

896,855

Valuation allowance(861,856)(896,855)

Total deferred tax assets

¥

-

¥

-

Net deferred tax assets

¥

-

¥

-

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

From February 1, 2019
to July 31, 2019(in thousands of yen)
Balance at the beginning of period
Increase due to acquisition of tangible fixed assets
Accretion adjustment
Balance at the end of period¥67,338-¥-

67,277

184

61¥67,522¥67,33872

15. INVESTMENT AND RENTAL PROPERTIESThe Investment Corporation owns real estate for rental purposes in the Tokyo Metropolitan Area and other regional areas for the purpose ofgenerating rental revenues.
The book value and fair value concerning the above real estate for rental purposes are as follows.
16th Fiscal Period
from August 1, 2019
to January 31, 2020

15th Fiscal Period
from February 1, 2019
to July 31, 2019(in thousands of yen)Book value
Balance at the beginning of period¥233,496,342¥221,356,688

Changes during the period
Balance at the end of period

811,431234,307,773

12,139,653
233,496,342¥279,986,000¥273,676,000

Fair value at the end of period
Note 1: Book value excludes accumulated depreciation from acquisition costs.

Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 16th fiscal period, the principal increase was theacquisition of real estate trust beneficiary interests in 2 properties totaling ¥2,006,136 thousand, and the principal decrease was the salesof real estate trust beneficiary interests in 1 property totaling ¥420,922 thousand and depreciation of ¥1,428,681 thousand , and during the15th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in 6 properties totaling ¥13,400,965
thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1 property totaling ¥482,312 thousand anddepreciation of ¥1,391,231 thousand.
Note 3: The fair value is the appraisal value or the survey value determined by outside appraisers. In addition, the fair value at the end of 16th
fiscal period of KDX Residence Izumi Chuo, which was sold on February 28, 2020, is based on the sales prices (¥540,000 thousand)under the trust beneficiary interest sales contracts entered into on January 29, 2020.
Income and loss in the fiscal periods ended January 31, 2020 and July 31, 2019 for real estate for rental purposes is listed in Note 6 ”
BREAKDOWN OF RENTAL AND OTHER OPERATING REVENUES, PROPERTY-RELATED EXPENSES AND GAIN ON SALES OF REALESTATE PROPERTY”.

16. SEGMENT AND RELATED INFORMATION
Segment and related information for the period ended from August 1, 2019 to January 31, 2020 and from February 1, 2019 to July 31, 2019 is asfollows:(A) Segment information
Disclosure is omitted because the real estate leasing business is the Investment Corporation’s sole business and it has no reportable segment
subject to disclosure.
(B) Related information(1) Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of the operating revenue
on the statement of income and retained earnings.
(2) Information about each geographic area(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income
and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property,
plant and equipment on the balance sheet.
(3) Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement ofincome and retained earnings.

7317. PER UNIT INFORMATION
From August 1, 2019

From February 1, 2019

to January 31, 2020

to July 31, 2019

Net asset value per unit

¥130,584¥130,630

Net income per unit

¥3,981¥4,142

Weighted average number of units (units)

907,458

903,243

The weighted average number of units outstanding of 907,458 and 903,243 were used for the computation of the amount of net income per unit
as of January 31, 2020 and July 31, 2019, respectively.
Net income per unit after adjusting for residual units is not included because there were no residual investment units.
The basis for calculating net income per unit is as follows:
From August 1, 2019

From February 1, 2019

to January 31, 2020

to July 31, 2019

Net income (in thousands of yen)
Net income not available to ordinary unitholders (in thousands of yen)
Net income available to ordinary unitholders (in thousands of yen)
Weighted average number of units during the period (units)¥3,613,397¥3,741,258--¥3,613,397¥3,741,258

907,458

903,243

18. SIGNIFICANT SUBSEQUENT EVENTSIssuance of New Investment Units
On February 10, 2020 and February 19, 2020, the Board of Directors of the Investment Corporation resolved to issue new investment units as thefunds for acquiring specified assets and other use. Payments for the issuance of new investment units through public offering have been
completed on February 26, 2020 .
As a result of the issuance of new investment units, the Investment Corporation had total unitholders’ capital of ¥108,550,294,003 with 951,258
investment units outstanding as of February 26, 2020.
With regard to the secondary offering through over-allotment, the allottee SMBC Nikko Securities Inc. decided not to subscribe for any new
investment units. As a result, no units were issued through third party allotment.
(Issuance of New Investment Units through Public Offering)Issuance of new investment units: 43,800 units

Issue price (Offer price): ¥208,065 per unit

Aggregate issue price (Total offer price): ¥9,113,247,000

Issue amount (Paid-in value): ¥201,342 per unit

Total issue amount (Aggregate paid-in value): ¥8,818,779,600

Payment date

: February 26, 2020

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

Stock Not applicable(2)

Securities other than shares Not applicable

Securities portfolio consists of the following as of July 31, 2019:(1) Stock Not applicable(2) Securities other than shares

Type

Name

Face value
Book value
total

Accruedinterest(in thousands of yen)
Prepaid AssessedGain
accruedvalue(Loss) on Remarks
interest （Note 2） valuation

SubordinatedEquity interests in TK property fund with
Silent Partnership
2,398
2,398
G.K. Tropic III as operator (Note 1)
Equity Interests
Total
2,398
2,398
Note 1: TK property fund owns trust beneficiary interests in real estate for “Serabi Ebisu” and “Arute Ishiyagawa.” Furthermore, the Investment
Corporation acquired real estate beneficiary interests in trust for the above two mentioned properties on June 3, 2019
Note 2: The assessed value is stated at the book value. Furthermore, loss on valuation of investment securities of ¥5,942 thousand wasrecognized in the fiscal period ended July 31, 2019.

74

20. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASEETS
Property, plant and equipment consist of the following as of January 31, 2020
Type of asset

Property,plant andequipment

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

Balance atthe beginningof period¥1,798,041
1,798,041
99,911,220
1,073,137
1,436,362

Increaseduring theperiodDecreaseduring theperiod

¥¥1,067,512
15,874
11,920Depreciation
Depreciation
for theperiod(in thousands of yen)
¥1,798,041¥¥
1,798,041
100,799,661
11,698,397
1,346,387
1,089,011
223,450
32,087
1,448,282
353,874
32,697

Balance atthe end of
period179,071-

Accumulated
depreciation

523,059

47,786236

570,610

81,223

15,784

138,484,736
241,428,516
243,226,558
1,229,487

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

272,617451,924
451,924-

139,731,924
243,639,490
245,437,532
1,229,487

12,356,945
12,356,945
2,299

1,426,956
1,426,956
1,724

7,762
¥1,237,249

¥

-

7,762
¥1,237,249

2,975¥5,275776¥2,501-¥Netbalance at
end of theperiodRemarks¥1,798,041
1,798,041
89,101,264 Notes 1 and 2
865,561
1,094,407
489,387
139,731,924 Notes 1 and 2
231,282,545
233,080,586
1,227,187
4,787¥1,231,974

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, 2019:
Type of asset

Property,plant andequipment

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

Balance atthe beginningof period¥1,798,041
1,798,041
95,077,289
947,729

Increaseduring theperiodDecreaseduring theperiod¥¥5,144,241
127,706

Depreciation
Depreciation
for theperiod(in thousands of yen)
¥1,798,041¥¥
1,798,041
99,911,220
10,381,143
1,313,277
1,073,137
191,362
30,813

Balance atthe end of
period310,310
2,298

Accumulated
depreciation

Netbalance at
end of theperiod¥1,798,041
1,798,041
89,530,077 Notes 1 and 2
881,774

1,429,327

7,035

-

1,436,362

321,177

32,586

1,115,184

473,61449,958513

523,059

65,444

13,978457,614130,189,152
228,117,113
229,915,155

8,521,826
13,850,768
13,850,768

226,242539,365
539,365

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

10,959,127
10,959,127

1,390,656
1,390,656

1,067,058

162,428-

1,229,487

574

574

1,228,912

7,762¥1,074,821¥162,428-

7,762¥1,237,249

2,199¥2,774776¥1,351

5,563¥1,234,475¥

Remarks

138,484,736 Notes 1 and 2
230,469,388
232,267,430

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.

75

21. INVESTMENT CORPORATION BONDS
Outstanding Investment corporation bonds as of January 31, 2020 are as follows.
Balance at
Decrease
Balance at
Date of
Seriesthe beginningduring thethe end ofissue
of period
periodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2018(Note 1)Fifth series of unsecured
November 30,
investment corporation
1,000,000
1,000,000
2018
bonds (Note 1)
Sixth series of unsecured
December 20,
investment corporation
2,000,000
bonds(Social bond)2019(Note 1)
¥ Total¥5,000,000¥7,000,000

Interest
rate

Repayment date

Use

Remarks(Note2)

Unsecured(Note3)

Unsecured

August 30,

0.200%

2021
August 28,

0.540%

2026
August 30,

0.800%

2028
November 30,

0.410%

2023
November 30,

0.850%

2028
December 20,

0.750%

2029

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

¥ -¥1,000,000¥ -Outstanding Investment corporation bonds as of July 31, 2019 are as follows.
Balance at
Decrease
Balance at
Date of
Seriesthebeginning
duringthethe end ofissue
of period
periodperiod(in thousands of yen)First series of unsecured
August 30,
investment corporation¥ ¥1,000,000¥1,000,000
2016
bonds (Note 1)
Second series ofAugust 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2016(Note 1)
Third series of unsecured
August 30,
investment corporation
1,000,000
1,000,000
2016
bonds (Note 1)
Fourth series ofNovember 30,
unsecured investment
1,000,000
1,000,000
corporation bonds
2018(Note 1)Fifth series of unsecured
November 30,
investment corporation
1,000,000
1,000,000
2018
bonds (Note 1)
Total¥ ¥5,000,000¥5,000,000¥1,000,000

Interest
rate

0.200%
0.540%
0.800%
0.410%
0.850%¥ -Repayment date

Use

Remarks(Note2)

Unsecured

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

Note 1: Ranking pari passu among the specified investment corporation bonds.
Note 2: Investment corporation bonds were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate andrepayment of debts.
Note 3: Annual repayments of investment corporation bonds scheduled for the next five years after the balance sheet date are as follows.
Due in 1 year
or less
Investment corporation bonds¥ -Due after 1 year
through 2 years¥ -Due after 2 years
through 3 years(in thousands of yen)

¥1,000,000

Due after 3 years
through 4 years

Due after 4 years
through 5 years¥ -¥1,000,0007622. SHORT-TERM DEBT AND LONG-TERM DEBT
Short-term debt and long-term debt consist of the following as of January 31, 2020
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)-¥1,000,000

0.422%

February 28, 2020

Decreaseduring theperiodUse

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

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

1,000,000¥-¥

1,000,000--

1,000,000

0.374%

July 31, 2020

500,000--

500,000

0.324%

July 31, 2020-

800,000-

800,000

0.419%

January 31, 2021

2,500,000
1,500,000

800,000-

1,500,000

3,300,000-

0.689%

November 30, 20191,500,000-

1,500,000-

1,400,000-

1,400,000-

900,000-

900,000-

500,000-

500,000-

400,000-

400,000-

0.447%

January 31, 2020

300,000-

300,000-

300,000-

300,000-

200,000-

200,000-

200,000-

200,000-

1,750,000--

1,750,000

1,750,000--

1,750,000

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

1,000,000
500,000
500,000

500,000--

500,000

1,000,000--

2,000,000-

300,000

0.729%

July 29, 2020

1,000,000

1.109%

January 31, 2021-

2,000,000

0.804%

November 30, 2020--

300,000

0.678%

August 31, 2020

300,000--

300,000

0.624%

October 27, 2020

500,000--

500,000

0.447%

August 31, 2020

17,300,000-

7,200,000

10,100,000

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

2,000,000--

2,000,000

1.267%

April 30, 2022

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

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

1.267%
1.267%
1.267%

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

1,100,000--

1,100,000

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

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

300,000--

1,000,000--

400,000--

400,000

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

0.916%

August 7, 2021

0.996%(Note 5)

August 7, 2021

1.254%

August 7, 2023

77

Classification
LenderLong-term
loans
payableMizuho Bank, Ltd.
Resona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Insurance Inc.(Note 9)
Resona Bank, Limited
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

Balance atthebeginning of
period300,000
200,000

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

300,000
200,000

Averageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)1.254%

August 7, 2023

200,000--

200,000

150,000--

150,000

500,000--

500,000

1.320%(Note 5)

August 7, 2023

600,000--

600,000

0.945%

August 31, 2021

600,000
500,000
950,000--

600,000
500,000
950,000

0.945%
0.945%
1.083%

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

1,200,000--

1,200,000

0.875%

January 31, 2022

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

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

1.105%
0.875%
0.987%
1.100%

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

1,000,000--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

1,100,000--

1,100,000

0.923%

August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

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

1,000,000
1,000,000

1.193%(Note 5)
1.156%
0.819%

2,500,000--

2,500,000

0.903%

Unsecured/
Unguaranteed

April 30, 2026

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

0.797%

August 31, 2025

500,000--

500,000

2,000,000--

2,000,000

500,000--

500,000

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

August 31, 2025

MUFG Bank, Ltd.

3,000,000--

3,000,000

0.906%

August 31, 2026

The Bank of Fukuoka,
Ltd.
Sumitomo Mitsui
Banking Corporation(Note 6)

April 27, 2025
April 28, 2025

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

Remarks

August 31, 2024

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

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

Use

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

August 31, 2025
August 31, 2025

1,000,000--

1,000,000

1,000,000--

1,000,000

0.773%(Note 5)0.900%

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

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

1,500,000

0.501%

February 28, 2023

October 31, 2025
August 22, 2027

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

78

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

1,500,000
1,500,000

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

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

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

Increaseduring theperiod1,000,000--

1,000,000

0.582%

February 29, 2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

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

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.409%

July 31, 2021

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

1,000,000
500,000
500,000

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

500,000--

500,000

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

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000
400,000--

400,000
400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.509%

August 31, 2022

0.509%
0.498%(Note 5)

August 31, 2022

0.799%-

400,000--

1,600,000

1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

250,000--

250,000

February 28, 2027

1,400,000--

1,400,000

800,000--

800,000

700,000--

700,000

1,000,000--

1,000,000

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

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028

400,000--

400,000

0.363%

November 30, 2024--

2,000,000

Shinsei Bank, Limited
Shinsei Bank, Limited

500,000
500,000--

500,000
500,000

Unsecured/
Unguaranteed

February 2, 2026-

2,000,000(Note 6)

January 30, 2027

400,000

Mizuho Bank, Ltd.

Remarks

August 31, 2024

1,600,000

0.330%(Note 5)0.484%
0.272%

Use

August 31, 2022

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

May 31, 2025
November 30, 2025
January 31, 2023

79

Classification
LenderLong-term
loans
payableDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

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

800,000

0.299%

July 31, 2023-

1,000,000-

1,000,000

0.572%

August 31, 2026

Balance atthebeginning of
periodIncreaseduring theperiodMizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.

800,000-

500,000-

500,000

0.325%

April 30, 2023

Resona Bank, Limited-

450,000-

450,000

0.336%

April 30, 2024

MUFG Bank, Ltd.

-1,500,000-

1,500,000

0.600%

November 30, 2026

MUFG Bank, Ltd.

-

900,000-

900,000

0.444%

July 31, 2021

Mizuho Bank, Ltd.

-

500,000-

500,000

0.444%

July 31, 2021

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

500,000-

500,000

0.329%

July 31, 2023-

300,000-

300,000

0.329%

July 31, 2023-

300,000-

300,000

0.329%

July 31, 2023-

200,000-

200,000

0.329%

July 31, 2023

101,100,000¥120,900,000

6,150,000¥6,950,000¥7,200,000

107,250,000¥120,650,000

Total

Use

Remarks(Note 6)

Unsecured/
Unguaranteed

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 1 year
through 2 years
Long-term loans payable¥14,400,000

Due after 2 years
through 3 years

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

Due after 4 years
through 5 years

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

Note 2: Borrowings listed in the current portion of long-term loans payable were listed in long-term loans payable in the previous fiscal period.
Note 3: All debts except for the following Note 5 are borrowing at a floating rate.
Note 4: Average interest rates are the weighted average during the period and figures are rounded to the nearest third decimal place. Also, withregard to borrowings for which interest rate swap transactions were implemented in order to hedge the interest rate volatility risk, theweighted average interest rates taking into consideration the effects of the interest rate swaps are indicated.
Note 5: Borrowings is applied at a fixed rate.
Note 6: All debts were used as the funds for acquiring real estate properties or trust beneficiary interest in real estate (additional expenses areincluded) and repayment of debts.
Note 7: All the repayment methods of debt financing except for the following Note 8 are lump-sum repayments on the due date.
Note 8: Partial prepayment of 2,000,000 thousand yen was made on December 30, 2019.
Note 9: Sompo Japan Nipponkoa Insurance Inc. changed its corporate name to Sompo Japan Insurance Inc. on April 1, 2020.

80

Short-term debt and long-term debt consist of the following as of July 31, 2019
Classification
LenderBalance atthebeginning of
periodIncreaseduring theperiodDecreaseduring theperiodBalance atthe end of
periodAverageinterest
rate(Note 3)(Note 4)

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

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

¥1,250,000-¥ 1,250,000-

0.412%

July 31, 2019

800,000¥-

800,000¥-

0.412%

July 31, 2019-

1,000,000-

1,000,000

0.413%

February 28, 2020-

1,000,000-

1,000,000

0.374%

July 31, 2020-

500,000-

500,000

0.324%

July 31, 2020

2,050,000
1,500,000

2,500,000-

2,050,000-

2,500,000
1,500,000

0.689%

November 30, 2019

1,000,000-

1,000,000-

0.486%

February 28, 2019

500,000-

500,000-

0.486%

February 28, 2019

500,000-

500,000-

0.362%

July 31, 2019

500,000-

500,000-

0.362%

July 31, 20191,500,000--

1,500,000

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

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

300,000--

300,000

0.437%

January 31, 2020

300,000--

300,000

200,000--

200,000

200,000--

200,000

1,750,000--

1,750,000

1,750,000--

1,750,000

1,000,000--

1,000,000

500,000--

500,000

500,000--

500,000

500,000--

500,000

15,700,000
1,000,000-

2,500,000-

0.729%

July 29, 2020

13,200,000
1,000,000

1.109%

January 31, 2021

1,000,000--

1,000,000

1.221%

July 31, 2021

1,350,000--

1,350,000

1.183%March 31, 2021

2,000,000--

2,000,000

1.267%

April 30, 2022

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

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

1.267%
1.267%
1.267%

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

1,100,000--

1,100,000

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

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

300,000--

300,000

1,000,000--

400,000-

400,000
300,000
200,000-

0.916%

August 7, 2021

1,000,000

0.996%(Note 5)

August 7, 2021-

400,000

1.254%

August 7, 2023-

400,000
300,000
200,000

1.254%

August 7, 2023

81

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

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Long-term
loans
payableMizuho Trust &Banking Co., Ltd.
Aozora Bank, Ltd.
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Aozora Bank, Ltd.
Resona Bank, Limited.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sompo Japan
Nipponkoa InsuranceInc.
Aozora Bank, Ltd.
Resona Bank, Limited.
Mizuho Trust &Banking Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

200,000--

200,000

150,000--

150,000

500,000--

500,000

1.320%(Note 5)

August 7, 2023

600,000--

600,000

0.945%

August 31, 2021

600,000
500,000
950,000--

600,000
500,000
950,000

0.945%
0.945%
1.083%

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

2,000,000--

2,000,000

0.804%

November 30, 2020

1,200,000--

1,200,000

0.875%

January 31, 2022

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

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

1.105%
0.875%
0.987%
1.100%

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

1,000,000--

1,000,000

1.265%

April 30, 2025

1,100,000--

1,100,000

1,100,000--

1,100,000

1,000,000
300,000--

1,000,000
300,000

1.115%

July 29, 2022

1,000,000--

1,000,000

300,000
1,100,000--

300,000
1,100,000

0.678%
0.923%

August 31, 2020
August 31, 2022

700,000--

700,000

0.923%

August 31, 2022

950,000--

950,000

1.047%

August 31, 2023

1,700,000
950,000--

1,700,000
950,000

1.169%
1.169%

August 31, 2024
August 31, 2024

2,000,000--

2,000,000

1.345%

August 31, 2025

1,000,000--

1,000,000

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

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

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

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

2,500,000--

2,500,000

0.903%

April 30, 2026

August 31, 2024

MUFG Bank, Ltd.

1,000,000-

Mizuho Bank, Ltd.

1,500,000--

1,500,000

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

1,000,000--

1,000,000

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

1,000,000--

1,000,000

0.797%

August 31, 2025

500,000--

500,000

2,000,000--

2,000,000

500,000--

500,000

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

August 31, 2025

MUFG Bank, Ltd.

3,000,000--

3,000,000

0.906%

August 31, 2026

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

-

1,000,000

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

August 31, 2025
August 31, 2025

1,000,000--

1,000,000

1,000,000--

1,000,000

0.773%(Note 5)0.900%

1,000,000--

1,000,000

0.900%

August 22, 2027

1,000,000--

1,000,000

August 22, 2027

1,200,000--

1,200,000

1,000,000--

1,000,000

500,000--

500,000

0.900%
0.928%(Note 5)0.928%(Note 5)0.928%(Note 5)October 31, 2025
August 22, 2027

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

82

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

Payment due date
(Note 7)Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

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

500,000--

500,000

0.928%(Note 5)

August 22, 2027

1,500,000--

1,500,000

0.501%

February 28, 2023

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

1,500,000
1,500,000

0.501%
0.582%

February 28, 2023
February 29, 2024

1,000,000--

1,000,000

0.582%

February 29,2024

1,000,000
500,000--

1,000,000
500,000

February 29, 2024
August 31, 2024

500,000--

500,000

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

1,500,000

0.665%

February 28, 2025

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.749%

February 28, 2026

1,000,000--

1,000,000

0.409%

July 31, 2021

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

1,000,000
500,000
500,000

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

500,000--

500,000

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

1,500,000

1,400,000
900,000--

1,400,000
900,000

500,000--

500,000

500,000--

500,000

400,000
400,000--

400,000
400,000

400,000--

400,000

400,000--

400,000

300,000--

300,000

300,000--

300,000

1,000,000--

1,000,000

0.509%

August 31, 2022

400,000--

400,000

August 31, 2022

1,600,000--

1,600,000

0.509%
0.498%(Note 5)1,200,000--

1,200,000

0.592%

August 31, 2023

1,000,000
800,000--

1,000,000
800,000

0.592%
0.592%

August 31, 2023
August 31, 2023

1,050,000--

1,050,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027

500,000--

500,000

0.914%

February 28, 2027
February 28, 2027

250,000--

250,000

1,400,000--

1,400,000

800,000--

800,000

0.799%

August 31, 2024

January 30, 2027

February 2, 2026

August 31, 2022

700,000--

700,000

1,000,000--

1,000,000

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

800,000--

800,000

1.031%

September 30, 2028

500,000--

500,000

1.031%

September 30, 2028-

500,000-

500,000

0.438%

August 31, 2020

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

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

Payment due date
(Note 7)0.363%

November 30, 2024

Use

Remarks(Note 6)

Unsecured/
Unguaranteed(in thousands of yen)

Long-term
loans
payableMizuho Trust &Banking Co., Ltd.

-

400,000-

400,000

Mizuho Bank, Ltd.

-2,000,000-

2,000,000

Shinsei Bank, Limited-

500,000-

Shinsei Bank, Limited-

500,000

100,500,000¥118,250,000

800,000
4,700,000¥7,200,000

Mizuho Bank, Ltd.
Sub total
Total

500,000

0.330%(Note 5)0.484%

November 30,2025-

500,000

0.272%

January 31, 2023

¥4,550,000

800,000
105,200,000¥120,900,000

0.299%

July 31, 2023

May 31, 2025

Note 1: Annual repayments of long-term loans payable (except for current portion of long-term loans payable) scheduled for the next five years
after the balance sheet date are as follows:
Due after 1 year
through 2 years
Long-term loans payable¥9,450,000

Due after 2 years
through 3 years

Due after 3 years
through 4 years(in thousands of yen)
¥19,650,000¥11,550,000

Due after 4 years
through 5 years

Due after 5 years¥12,800,000¥51,750,000

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

84

23. DISTRIBUTIONS
16th Fiscal Period(From August 1, 2019 to January 31, 2020)

I. Retained earnings at the end of period

15th Fiscal Period(From February 1, 2019 to July 31, 2019)¥4,072,277,167¥4,125,881,528¥20,000,000¥20,000,000¥3,687,909,312¥3,687,001,854¥4,064¥4,063¥404,367,855¥458,879,674

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall
distribute ¥3,687,909,312, which is the amount of¥3,613,397,493 in net income,¥54,511,819 from retained
earnings brought forward and reversal of reserve fortemporary difference adjustments, as the distribution of
earnings.
Procedures for the distribution of amounts exceeding
distributable income are outlined in Article 38-2 of theInvestment Corporation’s Articles of Incorporation. In the
16th fiscal period, the Investment Corporation has
decided not to distribute cash in excess of distributableprofit.

In accordance with the policy described in Article 38-1 of
its Articles of Incorporation, the Investment Corporation
determines that the amount of distribution shall exceed
the amount equivalent to 90% of its distributable profit as
stipulated in Article 67-15 of the Special Taxation
Measures Law, and shall not exceed its accounting
profits as the maximum amount. Following this policy, theInvestment Corporation has decided that it shall distribute¥3,687,001,854, which is the amount deducting a part ofgain 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
15th 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
16th Fiscal Period (August 1, 2019 to January 31, 2020)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied
to distribution in the 16th fiscal period distribution.
15th Fiscal Period (February 1, 2019 to July 31, 2019)
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in
the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal
period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed andapplied to distribution in the 15th fiscal period distribution.

85