Semi-Annual Reportfor the Period ended November 2018(the 14th Period)
From June 1, 2018 to November 30, 2018

Activia Properties Inc.
Tokyu Plaza Ginza

1-1 Minami-Aoyama 1-chome, Minato-ku, Tokyo https://www.activia-reit.co.jp/en/

Semi-Annual Report for
the Period ended November 2018(the 14th Period)
From June 1, 2018 to November 30, 2018

Cash Distributions (Result)
The Period ended November 2018(the 14th Period)

Cash distributions per unit

¥

9,584

Cash Distributions (Forecast)
The Period ending May 2019(the 15th Period)

Cash distributions per unit

¥

9,878

The Period ending November 2019(the 16th Period)

Cash distributions per unit

¥

9,905

Contents
Basic Policy of Activia Properties Inc.

Focused investment in Urban Retailproperties and Tokyo Office properties
Activia Properties Inc. aims at proactive

management through selecting assetsthat appeal to retail customers andoffice tenants as urban centers and hubs for

Utilization of the comprehensive support
and capabilities of the Tokyu Fudosan
Holdings Group’s value chain

business activity, in order to maximize unitholder
value over the medium to long term. API also
takes initiatives to improve its asset management.

Strong governance structure aimed at
maximizing unitholder value

4

Message

27

Overview of API

6

Topics29

I

Asset Management Report10

Overview of Public Offering and Acquired Properties

58

II

Balance Sheets

12

Asset Replacement

60

III Statements of Operations

13

External Growth

61

IV Statements of Changes in Unitholders’ Equity

14

API’s Basic Policy

62

V Statements of Cash Distributions

14

Sponsor’s Situation

63

VI Statements of Cash Flows

15

Portfolio List

64

VII Notes to Financial Statements

16

Portfolio Map

77

VIII Schedule of Financial Statements

17

Overview of Urban Retail Properties

86

Independent Auditor’s Report

20

Overview of Tokyo Office Properties

87

Overview of the Asset Manager

25

Overview of Activia Account Properties

88

Information on Unitholders

Message

Sixth Public Offering Implemented,
Now We Aim to Enhance the Scale ofAssets on a Continuing Basis andMaximize Our Unitholder Value
Kazuyuki Murayama
Executive Director
Activia Properties Inc.

Thank you very much for your continued support for
Activia Properties Inc.
Recently we have closed all accounts for the
14th period (June 1, 2018 to November 30, 2018).
We owe this achievement to your understanding andcontinuous support, for which we wish to extend our
deep appreciation to you.
In the period ended November 2018, theJapanese economy remained generally robust amid
an ongoing trend of gradual recovery in the global
economy overall against a backdrop of a continued
trajectory of recovery in corporate earnings as wellas the employment and income environments, anddespite concerns particularly regarding effects froma string of natural disasters.
With respect to the environment surrounding
retail properties, developments involving consumer
sentiment have been weak according to theMonthly Consumer Confidence Survey releasedby the Economic and Social Research Institute,Cabinet Office, Government of Japan, yet sales ofretailers are gradually picking up steam according
to the Current Survey of Commerce released by the
Ministry of Economy, Trade and Industry. Moreover,according to the Consumption Trend Survey for
Foreigners Visiting Japan released by the Japan
Tourism Agency, the Ministry of Land, Infrastructure,
Transport and Tourism, the number of foreign
overseas visitors to Japan had decreased briefly
due to effects from the string of natural disasters in
the quarter spanning July to September 2018, butcurrently as of December 2018 the number exceeds
30 million people annually for the first time ever. As
such, demand related to inbound tourism has been
holding firm.
In the rental office market, a favorable
environment of supply relative to demand has been
persisting. In that regard, according to data publishedby Miki Shoji Co., Ltd., the average vacancy rate of

the five central wards of Tokyo (Chiyoda-ku, Minatoku, Chuo-ku, Shibuya-ku and Shinjuku-ku) had beenhovering just above the 2% range since March 2018
until it fell below 2% to 1.98% in November 2018.
With respect to rent levels as well, the average rent
has been increasing for 59 consecutive months. The
market environment continues to be favorable also
in major cities outside Tokyo amid declining vacancy
rates and an increasingly upward trend in rent levels.
The J-REIT market has held firm overall amid
further improvement in business performance
underpinned largely by a favorable rental officemarket, as well as relatively high yields, and despite
the Bank of Japan having announced that it will allow
long-term interest rates to fluctuate to a greater
extent. Financing activities through publicly offeredcapital increase and property acquisition have been
continuously and actively conducted, and this has
led to an ongoing expansion in J-REIT asset sizes.

consistently at a high level.
As a result of the above-mentioned management,
operating revenue, operating profit, and profit were
¥13,815 million, ¥7,546 million, and ¥6,696 million,
respectively, for the period ended November 2018.
Distributions per investment unit resulted in ¥9,584,
exceeding the previous forecast of ¥9,500.
In December 2018, API carried out a publicly
offered capital increase for the sixth consecutive year,
and in connection with the offering, the investment
corporation acquired two properties categorized
as “Urban Retail properties”: Tokyu Plaza Ginza(Land) (30% co-ownership interest) and Q plaza
HARAJUKU (60% co-ownership interest) and one
property categorized as “Activia Account property”:
EDGE Shinsaibashi.
Consequently, the portfolio held by API has
enhanced to 45 properties with the total acquisition
price of ¥502.0 billion as of January 17, 2019.

Under such circumstances, API has achieved
rent increase upon lease contract renewals in Tokyo
Office properties for 13 consecutive periods, and in
Urban Retail properties as well, backed by locational
advantage and quality of the properties, rent increase
upon tenant replacements and sales-linked rent
have been growing, and such achievements havecontributed to continue steady internal growth inoverall portfolio.
The overall occupancy rate of the portfolio at
end of the period under review was 99.9%, staying

For the next period ending May 2019 (the 15th
period) and onwards, we will seek to maximize
unitholder value over the medium to long term bypromoting both internal and external growth taking
advantage of Tokyu Fudosan Holdings Group’s
comprehensive value-chain, along with continuing
to leverage the expertise and network of TLC REITManagement Inc.
We would be most grateful for your continued
support and encouragement. Thank you.

Financial Highlights (Millions of yen)
Period ended May 31, 2018(the 13th Period)
Operating revenue

Operating profit

Ordinary profit

Profit¥13,327
¥

7,471

¥

6,611

¥

6,610

Period ended November 30, 2018(the 14th Period)¥

13,815
7,546
6,697
6,696
¥

¥

¥

Period ended May 31, 2018(the 13th Period)
Total assets

Net assets¥

445,941¥¥

223,777¥

50.2%

Unitholders’ equity tototal assets (%)
Net assets per unit (yen) (Note)

Period ended November 30, 2018(the 14th Period)¥

320,275

445,464
223,84250.2
320,368%¥(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

45

Topics

Management of retail properties

Occupancy Rate

▪API’s retail properties have long lease terms contributing to high revenue stability and also high profitability achieved
through rent increases upon tenant replacement following lease end or rent revisions.

▪Since our listing, we have continuously maintained a high occupancy rate of 99% or above at the end of each period,
and recorded 99.9% at the end of the period ended November 2018 (the 14th period).

Total

Lease term stability (Diversification of lease end period)(m2)
66,000

24.3%

99.9%

100.0%

99.9%

49,50099.8%

11% of total lease contracts will

Total leasable area

228,231 m2

33,000

Average remaining period
to lease end

terminate by the 19th period(retail properties)

8.6 years(as of November 30, 2018)

Internal Growth

3.0%0

Upward rent revisions for Tokyo Office properties▪The uptrend in rent revisions has continued for 13 consecutive periods from the period ended November 2013 (the 4th
period) to the period ending November 2019 (the 16th period).

Continuous uptrend in
the 15th period and onwards

Upward revision

13,200+5.6%

Subject to revision

114,740 m2+10.7%

15,630 m

0
3,300

+8.6%
+6.8%
1,775 m2

+3.6%
228 m2+7.5%
1,808 m2
2,069 m2

3,220 m2

4,479 m2

6,569 m2

vs. Former tenant: +6%
New tenants settled without down-time
both on 1st & 2nd floors

Increase upontenantreplacement
631 m2+6%

34,198 m

16,453 m2

100

2FFormer tenant(apparel company)

103

Underground

10,783 m2

08,641 m2

7,600 m2

11th

14th

(Note) Rent at end of the period ended May 2017
(the 11th period) is indexed to 100.

Jazz club

155 m

526 m

1F

Foreign-funded
car dealer
Jazz club▪Duplex structure suited to few typesof tenants▪Succeeded in closing contracts withfavorable conditions▪Leasing activities implemented with aview to dividing floors▪Revenue stability improved owing
to its contribution to rent revenue &tenant diversification(as of December 31, 2018)▪A large increase in sales-linked rent was recorded in the period ended November 2018 (the 14th period) compared tothe previous year. And decrease due to earthquake occurred in Hokkaido is expected for the period ending November
2019 (the 16th period) with signs of recovery emerging.

Upward rent revisions for Tokyo Office properties

Trends in sales-linked rent▪Buoyed by robust demand for and low vacancy rates of offices, rent increases have been achieved in many properties
for the period ended November 2018 (the 14th period) and onwards.

Occupancy rate of hotel rooms

Even-numbered period: Tokyu Plaza Akasaka, A-FLAG SAPPORO
Odd-numbered period: Kobe Kyu Kyoryuchi 25Bankan

TO-16

TO-4

AA-10

A-PLACE
Shinagawa
HigashiA-PLACE
AoyamaUmeda
Gate Tower+ ¥18 million+ ¥14 million+¥8 million(¥ mn)
300

276.9

90

223.7

198.7

200
100
0

66.4

73.8

73.9

Average of the 13th & 14th periods: 86%

(%)
100
89%

91%

87%

78%

0

(Note) Lease contract terminates at the end of December 2018.

87% 86% 89%

83%
73%
Earthquake
in Hokkaido

60
2017.52018.52019.5 Forecast 2019.11 Forecast
2017.112018.11(11th Period) (12th Period) (13th Period) (14th Period) (15th Period) (16th Period)

92%
89%

80
70

86%

2018
Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov.
2018.5 (13th Period)

6

Apparelcompany

Management of hotels

56 m

2

2013.112014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11 2019.5 Forecast 2019.11 Forecast(4th Period) (5th Period) (6th Period) (7th Period) (8th Period) (9th Period) (10th Period) (11th Period) (12th Period) (13th Period) (14th Period) (15th Period) (16th Period)(Note) Figures above bar refer to rent change ratio following rent revisions in each period.

Office / Showroom

Underground

1,769 m2
2

2

2F
Apparelcompany

1F

at end ofthe 14th period2+12.9%

3,300

Trend in rents at end of periods

2

2

6,600

1.1%

0.4%

2017.112018.52018.112019.52019.112020.52020.112021.52021.112022.52022.112023.52023.11(12th Period) (13th Period) (14th Period) (15th Period) (16th Period) (17th Period) (18th Period) (19th Period) (20th Period) (21st Period) (22nd Period) (23rd Period) (24th Period)(Tokyo Office)

+7.1%

3.6%

1.4%

<Tenant replacement examples>

17,640 m 17,663 m
2

16,129 m2

3.8%(as of November 30, 2018)

105

+7.3%

+4.8%

Total leasable area

9,900

1.4%

UR-12 A-FLAG BIJUTSUKAN DORI

+5.2%

Downward revision
16,5001.4%▪For the period ended November 2018 (the 14th period) and onwards, a rent increase of ¥44 million has been achievedin overall retail properties.

Tokyo Office properties (overall)(m2)
33,3008.1%

16,5002018.11 (14th Period)(Note) Average rate of three hotels.

7

Trend in DPU

Financial Situation▪For the period ended November 2018 (the 14th period), we achieved DPU of ¥9,584, better than the former forecast forthe period, owing to stabilized internal growth achieved in the period ended May 2018 (the 13th period) and preceding
periods, and an increase in sales-linked rent at hotels.

LTV and acquisition capacity▪An acquisition capacity of approximately ¥44.5 billion at LTV 50% was secured through the last PO that enables future
flexible asset acquisition.
(%)
50.0

LTV

Acquisition capacity (at LTV maximum 50%)

45.7% as of Jan. 17, 2019

approx. ¥44.5 billion as of Jan. 17, 2019¥10,000

LTV(Yen)
10,000

47.7％
46.0％

45.9％

45.0％

1st PO

42.8％

43.7％

46.0％

44.7％

4th PO

42.7％

45.7％

44.8％

5th PO

43.3％

3rd PO

2nd PO

41.5％

40.0

44.5％

Avg. number of years remaining to maturity

0.58%
0.77%

0.75%

0.76%

0.77%

0.75%

0.75%

0.67%

4.0

3.3
years

3.5
years

3.1
years

2.9
years

2.0

2.9
years

3.5
years

3.3
years

3.0
years

4.1
years

0.67%

0.65%

0.66%

0.63%

4.4
years

4.4
years

4.6
years

4.5
years

0.75

4.4
years

100,800

110,800

127,100

136,900

147,150

177,150

196,150

196,150

199,350

199,350

234,350

74.1%

71.6%

79.2%

77.4%

85.1%

82.6%

88.6%

86.5%

92.8%

92.8%

95.4%

95.4%

86.8%

▪Presently, we have borrowed from 18 lenders and are promoting
further diversification of lenders with leveraging investment
corporation bonds.
8%

AA (stable)
by Japan Credit Rating Agency(JCR) umitomo Mitsui TrustS
Bank
Mizuho Bank

19%

8%
8%
28%

2012 (at IPO)
AA(stable)
8

2015
AA(positive)

2016
AA(stable)19%¥9,502¥9,502¥9,549¥8,666¥8,267¥7,761¥7,961¥8,0282013.112014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11(4th Period) (5th Period) (6th Period) (7th Period) (8th Period) (9th Period) (10th Period) (11th Period) (12th Period) (13th Period) (14th Period)

2019.52019.11
Forecast
Forecast(15th Period) (16th Period)

Continuous Efforts for ESG
GRESB Real Estate Assessment

0.00

Diversification of interest-bearing debt

Long-term issuer rating¥9,3460.25

88,000▪Our long-term issuer rating by Japan
Credit Rating Agency is AA (stable)
since 2016.

¥9,905356(Note) API implemented a 2-for-1 investment unit split on October 1, 2015. To reflect the split, the DPU before the 8th period is represented as half of the actual values.

0.58%

85,000Issuer rating¥9,878376

Avg. interest rate (right axis) (%)
1.00

2012.112013.52013.112014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11
As of(2nd Period) (3rd Period) (4th Period) (5th Period) (6th Period) (7th Period) (8th Period) (9th Period) (10th Period) (11th Period) (12th Period) (13th Period) (14th Period) Jan. 17, 2019
Interestbearing
77,000debt (¥ mn)
Fixedinterest 70.1%
rate ratio¥9,248¥9,021¥9,462 ¥9,500

7,500
0

0.50
3.0

8,000

level onstabilized basis¥9,584¥8,642

Avg. number of years remaining to maturity (left axis)

4.4 years
0.79%

Effect from disposition of “A-FLAG AKASAKA”

8,500▪An average number of years remaining to maturity of over four years and a fixed interest rate ratio of over 80% aresecured as of January 17, 2019, while lowering average interest rate.

0.80%

14th period DPU / New forecast

9,000

6th PO

Average interest rate, average number of years remaining to maturity

Avg. interest rate

Actual DPU

9,500

2012.112013.52013.112014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11
As of(2nd Period) (3rd Period) (4th Period) (5th Period) (6th Period) (7th Period) (8th Period) (9th Period) (10th Period) (11th Period) (12th Period) (13th Period) (14th Period) Jan. 17, 2019(Years)5.0

Former forecast

 evelopment Bank ofD
Japan
Resona BankMUFG Bank umitomo Mitsui Banking
S
Corporation
Mizuho Trust & Banking
The Bank of Fukuoka

Shinkin Central Bank

The Norinchukin BankThe Gunma Bank ippon Life InsuranceN
Company
The 77 Bank okyo Marine & Nichido
TFire InsuranceMitsui Sumitomo
Insurance Company
THE NISHI-NIPPON CITY
BANK
Investment CorporationBonds

 aiyo Life InsuranceT
Company
The Bank of Kyoto▪Selected as “Sector Leader” in “Diversified – Office/
Retail/Asia” sector in 2018 for two consecutive years▪Awarded five stars, the highest rank, in the GRESB
Rating, a relative evaluation of overall score▪The award ceremony was held within the event“Sustainability and ESG investment in Real Estate –announcement of GRESB results and future trends in
ESG” on November 5, 2018.

Social contribution (Tokyu Plaza Omotesando Harajuku)▪Local nursery school children experienced vegetable
farming at the rooftop terrace “Omohara Forest.”▪Harvest festivals are organized since June 2018 that
promote communication with local communities andbuild good relationships with the neighborhood throughvarious projects.

9Overview of Public Offering and Acquired Properties▪In December 2018, we conducted our 6th global offering and the issue received a demand of ¥239.4 billion, approximately
8.2 times larger than the offer size.
▪In connection with the PO, we acquired three properties (total acquisition price of ¥70.5 billion); two retail properties(¥50.7 billion) and one office property (¥19.8 billion), all rigorously selected with a focus on location and quality andsuccessfully contributed to further enhance portfolio quality.

UR-16 Tokyu Plaza Ginza (Land) (30% co-ownership interest)

Offering summary
Number of investment units
issued10

UR-17

Q plaza HARAJUKU

AA-13(60% co-ownership interest)

EDGE Shinsaibashi

Overview of acquired properties
72,520(Public: 67,320 units including 7,252 units allocated todesignated purchaser, Third-party allocation: 5,200 units)

Ratio of Domestic toInternational

65:35

Total number of units after
offering

771,224

Offer price¥445,410 per unit

Issue price¥431,320 per unit

Total amount offered¥31,279,326,400 (incl. TPA)

Issuance announcement
date

November 30, 2018 (Fri)Pricing date

December 12, 2018 (Wed)Payment date

December 19, 2018 (Wed)Delivery date

December 20, 2018 (Thu)

Office / Retail

Property name

Address

Tokyu Plaza Ginza (Land)(30% co-ownership interest)

Chuo, Tokyo

Q plaza HARAJUKU(60% co-ownership interest)

Shibuya, Tokyo

EDGE Shinsaibashi

Osaka, Osaka

Acquired from

Date of acquisition

Acquisition price(millions of yen)Appraisal value(millions of yen)Appraisal NOI
yield

37,50039,0002.5%

13,20013,3003.1%

19,80020,0004.0%

70,50072,300

3.1%

RetailOfficeTotal / AverageSponsor sourced

January 10, 201911

Asset Replacement

External Growth

Replacement summary

Trend in AUM▪Asset replacement will be implemented with the aim of enhancement of portfolio quality and DPU management.

Asset to be disposed: A-FLAG AKASAKA

Asset acquired: Q plaza HARAJUKU

Small-sized asset
with a GFA of lessthan 3,000 m2

2-min. walk fromnearest station in
greater Shibuya area

Rent upside achieved

Developed and heldby Sponsor▪Since our IPO, we have continued to make competitive investments based on rigorous consideration of location andproperty quality, while maintaining our focused investment ratio at around 80%.
▪We aim at further expansion of our portfolio that contributes to enhance our unitholders’ value.

Investment ratio (as of Jan. 17, 2019)
Tokyo Officeproperties (TO)Urban Retail properties
(UR)

39.2%

40.2%
OfficeAged 10.8 years

Aged 3.7 years(As of November 30, 2018)(As of November 30, 2018)<Tenant Structure>

Replacement
scheduled

Fashion18%
Service
13%
Restaurant
65%

4,000
3,500

CR
4.3%

3,750

0

As of July 2013(at disposition)

As of end of
14th Period

20.6%

Wedding
44%

15¥231.7 bn¥170.4 bn

tenants(Based on leased area)

Disposition schedule▪Gain on sale will be recorded in the 15th & 16th periods
Period ended
Nov. 2018(14th period)

Period ending
May 2019(15th period)

Period ending
Nov. 2019(16th period)

Nov. 30, 2018

Mar. 1, 2019

Jun. 3, 2019

Dispose of 50%
co-ownership interest

Dispose of 50%
co-ownership interest(Contribution to DPU: ¥376/unit)(Contribution to DPU: ¥356/unit)

3,150

3,000

¥389.1 bn

Restaurant
25%(Based on leased area)

CR
3.5%

¥431.5 bn¥282.6 bn

Activia Account properties (AA)8(¥ mn)
4,500

51.3% 48.7%¥326.7 bn

tenants

Comparison of appraisal values

Investment intarget portfolio
79.4%

Retail<Tenant Structure>

RetailYoga 10%studio10%Service16%¥ 502.0 bn

Announcement of sale toSponsor Group

Policy of asset replacement

18 properties

26 properties

30 properties

32 properties

38 properties

42 properties

45 properties

Jun. 2012
after IPO

Jan. 2014
after 1st PO

Jan. 2015
after 2nd PO

Jan. 2016
after 3rd PO

Jan. 2017
after 4th PO

Jan. 2018
after 5th PO

Jan. 2019
after last PO

Retail

71.5%

70.3%

59.3%

54.9%

49.0%

49.7%

48.7%

Office

28.5%

29.7%

40.7%

45.1%

51.0%

50.3%

51.3%

Target portfolio
ratio

79.7%

80.3%

80.1%

83.2%

80.0%

80.6%

79.4%

Source of acquisition

Acquisition capacity▪Since our IPO, API has achieved external growth leveraging both
sourcing from Sponsor and independent sourcing by Asset Manager.

Via Asset Manager¥103.2 billion (31%)

Sponsor sourced¥230.7 billion (69%)▪Through the last PO, API has secured
sufficient capacity for further acquisitions.

44.5 billion

approx. ¥*at LTV 50%

Enhance portfolio quality through asset replacement
and aim at further growth of API▪Select asset to dispose by comprehensive evaluation of each asset’s
competitiveness and other factors▪Be flexible with regard to replacement timing

Third-party¥71.1 billion

since IPO

¥333.9 billion(after last PO)

Sponsor(developed)¥137.3 billion

Warehousing¥32.2 billion

Sponsor (owned)¥93.5 billion

1213

API’s Basic Policy

Portfolio List

Focused investments in Urban Retail and Tokyo Office properties

Category

Portfolio Construction Policy

UR-1
UR-2
UR-3

Urban Retail properties

UR-5

Investment ratio

Urban Retail properties are easily recognizable and are located near major
train stations or popular areas in Tokyo, government-designated major cities
within the three major metropolitan areas or other major cities in Japan.

To be disposed(based on acquisition price)

70%

Tokyo Office properties

UR-8

or more

UR-9
UR-10
UR-11

(Note) T he actual investment ratio could differ
from the ratio indicated above in the
short term depending on theacquisition or selling of properties.

Activia Account properties

UR-12
UR-13
UR-14

Commercial facilities and office buildings other than Urban Retail and Tokyo Office properties that API rigorously
selected assessing the attributes and competitiveness of each property in anticipation that such properties will secureboth stability and profitability through portfolio diversification.
NipporiSponsor’s Situation
Takadanobaba

UR-15
Acquired in the 15th Period
Acquired in the 15th Period

Taito-ku

Bunkyo-ku

Ueno

Asakusa

Major properties owned by Sponsor Group
Shinjuku-ku

Akihabara
1 The Imperial
PalaceYotsuya
Akasaka-mitsuke

Omotesando
Harajuku

Gaienmae 10

12Shibuya

1

5

3

2

Ebisu

8

Tokyo
6

Chuo-ku
Minato-ku

9 Shinbashi
4

Tokyo Tower Hamamatsucho
TamachiMeguro-ku

Rive

r

①
②
③
④
⑤
⑥
⑦
⑧
⑨
⑩
⑪
⑫

錦糸町
Property name

Nearest station

Ichibancho Tokyu Building
Ebisu Business Tower
Shibuya Square
Hamamatsucho Square
Shibuya Minami Tokyu Building
Uchisaiwaicho Tokyu Building
Nihonbashi Maruzen Tokyu Building
Minamiaoyama Tokyu Building
Shinbashi Tokyu Building
Kasumigaseki Tokyu Building
Shin-Meguro Tokyu Building
Shin-Aoyama Tokyu Building

HanzomonEbisu
ShibuyaHamamatsucho
Shibuya
Shinbashi
Nihonbashi
Omotesando
Shinbashi
Tameike-Sanno
MeguroOmotesando

Property name

Nearest station

Walking
distance
1 min
2 mins3 mins
1 min
6 mins2 mins
1 min
4 mins2 mins4 mins2 mins3 minsGFA
Completion (thousands
m2)
2002
20
2003
23
2004
13
2004
24
2005
20
2006
14
2006
17
2008
12
2008
15
2010
19
2012
22
2015
9

Gotanda Shinagawa

Number①②

Osaki

Shibuya BEAM
Daini Musashino Building

Shibuya
Shinjuku San-chome

Walking
distance
5 mins1 min

GFA
Completion (thousands
m2)
1992
7
1992
6

Properties co-owned with Sponsor Group30%
75%

Tokyu Plaza Omotesando Harajuku

Tokyu Plaza Akasaka(Note) Percentages are co-ownership interests held by API.

Q plaza HARAJUKUDECKS Tokyo Beach

TO-5

Luogo Shiodome

TO-6

TAMACHI SQUARE (Land)

TO-7

A-PLACE Ikebukuro

TO-8

A-PLACE Shinbashi

TO-9

A-PLACE Gotanda

TO-10
TO-11
TO-12
TO-13
TO-14

A-PLACE Shinagawa
OSAKI WIZTOWER
Shiodome Building (Note 2)
A-PLACE Ebisu Higashi
A-PLACE Shibuya Konnoh

TO-15

A-PLACE Gotanda Ekimae
A-PLACE Shinagawa Higashi

AA-2

icot Nakamozu

AA-4

icot Mizonokuchi

AA-5

icot Tama Center

AA-6

A-PLACE Kanayama

AA-7

Osaka Nakanoshima Building

AA-8

icot Omori

AA-9

Market Square Sagamihara

AA-12 Commercial Mall Hakata
AA-13 EDGE Shinsaibashi
Activia Account properties
Total

49%

Tokyu Plaza Ginza (Land)

DECKS Tokyo Beach (Note 2)

AA-11 A-PLACE Bashamichi

Acquired in the 15th Period(As of January 17, 2019)
Location
Jingumae, Shibuya-ku, Tokyo

Nagatacho, Chiyoda-ku, Tokyo
Ebisu, Shibuya-ku, Tokyo
Motohonenjicho, Nakagyo-ku,
Kyoto
Akasaka, Minato-ku, Tokyo
Kyomachi, Chuo-ku, Kobe City,
Hyogo
Minami-Yonjo-Nishi, Chuo-ku,
A-FLAG SAPPORO
Sapporo City, Hokkaido
A-FLAG SHIBUYA
Udagawacho, Shibuya-ku, Tokyo
Shinsaibashi-suji, Chuo-ku,
Q plaza SHINSAIBASHI
Osaka City, Osaka
Minami-Aoyama, Minato-ku,
A-FLAG KOTTO DORITokyo
Minami-Aoyama, Minato-ku,
A-FLAG BIJUTSUKAN DORITokyo
A-FLAG DAIKANYAMA WEST Sarugakucho, Shibuya-ku, Tokyo
Minami-Senba, Chuo-ku, Osaka
A-FLAG KITA SHINSAIBASHI
City, Osaka

AA-10 Umeda Gate Tower

50%

14

Tokyu Plaza Omotesando
Harajuku (Note 2)
Tokyu Plaza Akasaka (Note 2)
Q plaza EBISU
Kyoto Karasuma Parking
Building
A-FLAG AKASAKA
Kobe Kyu Kyoryuchi
25Bankan

TO-17 A-PLACE Shinbashi Ekimae(Note 4)
Tokyo Office properties
AA-1 Amagasaki Q’s MALL (Land)(As of September 30, 2018)60%

Property nameUR-16 Tokyu Plaza Ginza (Land)(Note 2)
UR-17 Q plaza HARAJUKU (Note 2)
Urban Retail properties
TO-1 TLC Ebisu Building
TO-2 A-PLACE Ebisu Minami
TO-3 A-PLACE Yoyogi
TO-4 A-PLACE Aoyama

TO-16

RetailMeguro11

awa

Shibuya-ku

7

idag

2

NumberSum

Shinjuku

Sumida-ku
OfficeChiyoda-ku

UR-6
UR-7

of the amount invested

Tokyo Office properties are located within the 23 wards of Tokyo in areas
with a high concentration of offices and near major train stations.

Ikebukuro

Property
numberAcquisition price Investment Total leasable(In millions of yen)ratio
area (m2)Completion(Note 1)

Occupancy
rate

45,0009.0%4,999.87

Mar. 2012

100.0%

11,450
8,430

2.3%
1.7%

16,609.75
4,024.88

Sep. 1969
Aug. 2008

100.0%
100.0%

8,860

1.8%

21,616.04

Jul. 2006

100.0%

3,000

0.6%

2,280.22

Feb. 2008

100.0%

21,3304.2%

19,653.90

Jan. 2010

100.0%

4,410

0.9%

21,229.16

May 1980

100.0%

6,370

1.3%

3,417.70

Jun. 1988

100.0%

13,3502.7%

2,820.23

Nov. 2007

100.0%

4,370

0.9%

2,656.53

Jan. 1992

100.0%

4,700

0.9%

1,994.65

Dec. 1998

100.0%

2,280

0.5%

2,579.08

Apr. 1992

100.0%

4,725

0.9%

2,536.75

Mar. 2008

100.0%

Jun. 1996
Nov. 2000(Extension)

99.7%

Daiba, Minato-ku, Tokyo

12,7402.5%

16,112.00

Ginza, Chuo-ku, Tokyo

37,5007.5%

1,130.04—

100.0%

Jingumae, Shibuya-ku, Tokyo

13,200201,715
7,400
9,640
4,070
8,790

2.6%
40.2%
1.5%
1.9%
0.8%
1.8%

3,378.49
127,039.29
7,342.60
7,950.49
3,106.17
7,303.69

Mar. 2015—
Mar. 1993
Jan. 1995
Feb. 2007
Sep. 1966

95.2%
99.7%
100.0%
100.0%
100.0%
100.0%

4,540

0.9%

4,476.35

Jul. 2004

100.0%

2,338(Note 3)0.5%

1,287.96—

100.0%

3,990

0.8%

3,409.73

Oct. 2011

100.0%

5,650

1.1%

5,052.14

Mar. 1999

98.7%

5,730

1.1%

4,028.69

Feb. 2012

100.0%

3,800
10,69071,600
7,072
4,810

0.8%
2.1%
14.3%
1.4%
1.0%

2,986.36
7,193.28
28,136.05
4,010.69
2,995.72

Sep. 1991
Jan. 2014
Dec. 2007
Jan. 1992
Mar. 1992

100.0%
100.0%
100.0%
100.0%
100.0%

7,280

1.5%

4,316.89

Nov. 1993

100.0%

3.7%

Aug. 1985(Main building)
14,658.98
Sep. 1999(Annex)100.0%

Ebisu, Shibuya-ku, Tokyo
Ebisu-Minami, Shibuya-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
Kita-Aoyama, Minato-ku, Tokyo
Higashi-Shinbashi, Minato-ku,
TokyoShiba, Minato-ku, Tokyo
Minami-Ikebukuro,
Toshima-ku, Tokyo
Shinbashi, Minato-ku, Tokyo
Nishi-Gotanda, Shinagawa-ku,
Tokyo
Konan, Minato-ku, Tokyo
Osaki, Shinagawa-ku, Tokyo
Kaigan, Minato-ku, Tokyo
Higashi, Shibuya-ku, Tokyo
Shibuya, Shibuya-ku, Tokyo
Nishi-Gotanda, Shinagawa-ku,
Tokyo
Konan, Minato-ku, Tokyo
Shinbashi, Minato-ku, Tokyo
Shioe, Amagasaki City, Hyogo
Nakamozucho, Kita-ku,
Sakai City, Osaka
Mizonokuchi, Takatsu-ku,
Kawasaki City, Kanagawa
Ochiai, Tama City, Tokyo
Kanayama, Naka-ku,
Nagoya City, Aichi
Nakanoshima, Kita-ku,
Osaka City, Osaka
Omorikita, Ota-ku, Tokyo
Shimokuzawa, Chuo-ku,
Sagamihara City, Kanagawa
Tsurunocho, Kita-ku, Osaka City,
Osaka
Honcho, Naka-ku, Yokohama
City, Kanagawa
Tokojimachi, Hakata-ku, Fukuoka
City, Fukuoka
Nishi-Shinsaibashi, Chuo-ku,
Osaka City, Osaka

18,80020,500

4.1%

6,484.57

Apr. 2008

100.0%

196,700
12,00039.2%
2.4%

114,740.36
27,465.44

—
—

99.9%
100.0%

8,500

1.7%

28,098.02

Jun. 2007

100.0%

2,710

0.5%

14,032.05

Jul. 1998

100.0%

2,840

0.6%

5,181.58

Mar. 2006

100.0%

6,980

1.4%

9,314.90

Feb. 2009100.0%

11,1002.2%

20,229.25

Mar. 1984

100.0%

5,790

1.2%

6,209.79

Mar. 2007

100.0%

4,820

1.0%

15,152.42

Jun. 2014

100.0%

19,0003.8%

13,624.49

Jan. 2010

100.0%

3,930

0.8%

9,775.50

May 1975

100.0%

6,100

1.2%

9,612.88

Nov. 2005

97.0%

19,8003.9%

15,950.45

Apr. 1986

93.8%

103,570
501,98520.6%
100.0%

174,646.77
416,426.42

—
—

99.3%
99.6%

(Note 1) T he completion date represents the date of construction of the main building as described in the property registry. For properties with multiple main buildings, the construction date of the oldest
building is listed. However, for A-PLACE Shinbashi and A-FLAG SHIBUYA, the date of inspection that confirms the completion of construction written on the certificate of inspection is provided.
(Note 2) F or Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU and Shiodome Building, the acquisition price and total
leasable area are in proportion to our pro rata share of the co-ownership interests (75%, 50%, 49%, 30%, 60%, and 35%, respectively).
(Note 3) T he acquisition price of TAMACHI SQUARE (Land) is the land acquisition price at the time of the initial acquisition (June 13, 2012).
(Note 4) T he property name of Shinbashi Place was changed to A-PLACE Shinbashi Ekimae on June 1, 2018 (the 14th period). Its asset category also changed from Urban Retail properties to Tokyo
Office properties on the same day.

15

Portfolio Map

Central Tokyo Area

Ikebukuro

Nippori7

Tokyu PlazaUR-2 Akasaka

UR-3 Q plaza EBISU

A-FLAG
UR-6 AKASAKA

Sumida-ku

A-FLAG
UR-11 KOTTO DORI

UR-12

Akihabara

2

idag

4

Tokyo

6

16
1 Omotesando
8 17 Chuo-ku
Shibuya 17 11 12
Shinbashi
Minato-ku
9
5
12
14
13
Tokyo Tower Hamamatsucho
13
Harajuku

3

1

6

Tamachi

Gotanda Shinagawa

15

Osaki

UR-1

Tokyu Plaza Omotesando Harajuku■■ The property is located on the

DECKS Tokyo
UR-15 Beach

Tokyu Plaza
UR-16 Ginza (Land)

15

corner of Omotesando Street
and Meiji Street (Jingumae
Crossing), a center of fashion
and culture in Japan. Fashionoutlets can expect significant
branding effects from thelocation.

10 16

UR-2

Tokyu Plaza Akasaka

Location: Nagatacho, Chiyoda-ku, Tokyo
Acquisition price: ¥11,450 million■■ Adjoining the Nagatacho
FukutoshinLine

1-minute
walkfrom the nearestMe
ijitrain station
Om Jingum
Str oteaeee sant
Stado.
JR LineChiyodaLine

and Kasumigaseki area, theAkasaka area is home to manyembassies and foreign firms.
The property is located in abusiness quarter in proximity
to restaurants, bars, hotels
and offices where many office
workers gather.

Hotel New Otani
Namboku Line

MarunouchiLine
Hanzomon
Line
ma
ya t
Ao tree
S

ta.
ke S
t
itsu
a-m i Streesakr
Aka otobo
S

9

A-FLAG
BIJUTSUKAN DORI

Location: Jingumae, Shibuya-ku, Tokyo
Acquisition price: ¥45,000 million

A-FLAG
UR-13 DAIKANYAMA WEST

Meguro-ku

MeguroA-FLAG
UR-9 SHIBUYAHarajuk
u Sta.

Shibuya-ku Gaienmae

awa
Riv

The Imperial
Yotsuya
PalaceAkasaka-mitsuke

3Asakusaer

Shinjuku

Chiyoda-ku

Ueno

Sum

Shinjuku-ku

2Tokyu Plaza
UR-1 Omotesando Harajuku
Taito-ku

Bunkyo-ku

Takadanobaba

Ebisu

Overview of Urban Retail Properties

Sta.
Nagatacho

1-minute
walkfrom the nearest
train station

Ginza Line

11
A-PLACETO-4 Aoyama

Luogo
TO-5 Shiodome

TAMACHI
TO-6 SQUARE (Land)

A-PLACE
TO-7 Ikebukuro

A-PLACE
TO-8 Shinbashi

A-PLACE
TO-9 Gotanda

A-PLACE
TO-10 Shinagawa

OSAKI
TO-11 WIZTOWER

UR-3
A-PLACE
TO-15 Gotanda Ekimae

A-PLACE
TO-16 Shinagawa Higashi

A-PLACE
TO-17 Shinbashi Ekimae■■ The property is located in

t

e
re

JR Lineta.

Hibiya Line

from the nearest
train stationuS

Komazawa
Street1-minute
walk

Ebis

16

St

Ebisu, an area recognized asa city for adults.
■■ Facing the front of Ebisu
Station, the property enjoys
high visibility with a fancy,
well-lit façade made ofterracotta bars and glass.

ji

A-PLACE
TO-14 Shibuya Konnoh

Location: Ebisu, Shibuya-ku, Tokyo
Acquisition price: ¥8,430 million
ei

A-PLACE
TO-13 Ebisu Higashi

UR-5

M

Shiodome
TO-12 Building

Q plaza EBISU

Kyoto Karasuma Parking Building

Location: Motohonenjicho, Nakagyo-ku, Kyoto
Acquisition price: ¥8,860 million■■ The property is located in the
Nishiki-koji
Shijo Karasuma area, Kyoto’s
Streetmost prominent city center.
1-minutewalk■■ As a tie-up parking lot for thefrom the nearest
train station
Daimaru Kyoto department
store and the Takashimaya
Karasuma Sta.
Kyoto department store, theHankyuShijo Street
Kyoto Line
property also serves as animportant service facility forneighboring retail stores.
SubwayKarasuma Line

TO-3 A-PLACE Yoyogi

Shijo Sta.

A-PLACETO-2 Ebisu Minami

Sta.

TLC Ebisu
TO-1 Building

Ebisu

Q plaza
UR-17 HARAJUKU

17

.
ta
aS
ak
as
Ak

Subway Kaigan Line5-minutewalkfrom the nearest
train station

Route 3 Kobe Line

Shinsaibashi
Opa

DaimaruNorth
Building

Daimaru(Underconstruction)

1-minute
walkfrom the nearest
train station

Longchamp

DaimaruSouth
Buildingalong Kotto Street in the
Omotesando and MinamiAoyama area with a luxurious
and high-design façade
finished with granite■■ A highly versatile space able
to meet various commercial
needs

Omotesando
StreetGinza Line■■ A rare property locatedOmotesando Sta.

Hotel
Nikko
Osaka

H&M

UNIQLO

hi-

yuc

yor

uK

Shinsaibashi Sta.

.

Sta

Ky

Nagahori St.

FENDI

A-FLAG KOTTO DORI

Hanzomon Line

ChiyodaLineakasaka Sacas

hi

ac

tom

Mo

n im
Sadokena
HaTokyu Hands

Nagahori-Tsurumi Ryokuchi Subway Line

Shinsaibashi Sta.

UR-11

Location: Minami-Aoyama, Minato-ku, Tokyo
Acquisition price: ¥4,370 million

LOUIS VUITTON
Shinbashi

popular place for both domestic
and international tourists toexperience the uniqueness of thecity of Osaka■■ The building located near theentrance of Shinsaibashi-suji
shopping street is a prominent
landmark.

Sinsaibashi-suji shopping district

Ginza Line

m

aru

im
Da

.
.
Sta iya- Sta
ae nom aerfrom the nearest
train station

JR Line

ine

treet

walk

bori
Soto et
Stre

ugi S

3-minute

Marunouchi
Line■■ Located in Shinsaibashi, art L

Ginza Line

Foreign Settlement) area, there are
famous historical spots in the port
city Kobe at every turn. As a centerof tourism and commerce in westernJapan, it enjoys a prominent ability to
attract tourists and customers.
■■ The property faces the mainstreet, Nakamachi Street, with highdemand for its favorable locationnear Daimaru Kobe, the Bank ofJapan Kobe Branch and the Kobe
City Museum.

Q plaza SHINSAIBASHI
CartierPo

Hanzomon Line

Tokyu Plaza
Akasaka■■ In the Kyu Kyoryuchi (the Former

nn
St om
a. iyaam
ya t
Ao treeS

Hitotsfrom Akasaka Station anda 5-minute walk from
Akasaka-mitsuke Station.
■■ The property is a highly visiblecommercial building facing
Hitotsugi Street, the busiest
street with the heaviest foottraffic in the Akasaka area.

UR-10

Location: Shinsaibashi-suji, Chuo-ku, Osaka City, Osaka
Acquisition price: ¥13,350 million

Location: Kyomachi, Chuo-ku, Kobe City, Hyogo
Acquisition price: ¥21,330 million
ta.
ke S
itsu
a-m
sak
Aka

■■ Located a 3-minute walk

Kobe Kyu Kyoryuchi 25Bankan

Midosuji

Location: Akasaka, Minato-ku, Tokyo
Acquisition price: ¥3,000 million

UR-7

Subway Midosuji Line

A-FLAG AKASAKA

Sa

UR-6

Chiyoda Line4

- minute
walk fromthe nearest
train station

246

Exit B1

To Shibuya

Kotto Street

Midosuji Suomachi Sta.

walk

.

Tokyu Den-en-toshi
Line

.

a Sta

from the nearest
train station

246

Ao

From 1st

7

SPIRALGLASSAREAAOYAMA
A-FLAG
KOTTO DORI

Exit B1

Kotto Street

To Shibuya

Nezu
Museum- minute
walk fromthe nearest
train station

Taro
OkamotoMemorial
Museum4

eet-minutewalk fromthe nearest
train station

Str

Street, the main street in
Daikanyama area■■ The property is equipped witha courtyard and a corridor thatappeals to tenants who prefer
the area.

an

Chiy oda Line

Exit A5■■ Located along HachimanimSt re etShin-Aoyama Tokyu Building

Daikanyama Address
TENOHADAIKANYAMA

ika

Da

ma

a
ny

.

Sta

e

walk

from the nearest
train stationa Sta

SapporoStreetcar Line2-minute

4-minute Shibuya Center-Gai
ShibuySapporoChuo Streetcar Line
Kuyakusho
mae Sta.
Susukinoarea

JR LineShibuySusukino
Sta.

Shibuya BEAM

Museum Street in Omotesando
and Minami-Aoyama area witha famous jazz club as one ofits tenants■■ The building facing aboulevard has a high visibility
and offers a spacious
atmosphere.

Toy Toky
oko uLinSapporo TV Tower

Fukutoshin
Line

A-FLAG DAIKANYAMA WESTche
Tozai Lin
Subwayjyo
KitaichiStreet
Kariki■■ A rare property located along
Tokyu Hands

UR-13

Location: Sarugakucho, Shibuya-ku, Tokyo
Acquisition price: ¥2,280 million
Mu se umgawa
SouseiStreetu LineNambokSubwayBank of Japan

Crock
Tower
City Office

Shibuya, a major commercial
district that is also known as acenter for younger generations
and the forefront of Japanesefashion and cultural trends.
■■ Further growth is expected,
reflected by large-scale
redevelopment projects in the area.

Han zomo n L ine■■ The property is located in

JR LineSta.
SapporoLocation: Minami-Aoyama, Minato-ku, Tokyo
Acquisition price: ¥4,700 million↑ To Gaienmae
G inz a L ine■■ The property is located

A-FLAG BIJUTSUKAN DORI
Omotesando

Location: Udagawacho, Shibuya-ku, Tokyo
Acquisition price: ¥6,370 million

UR-12

Ha

A-FLAG SHIBUYA

Location: Minami-Yonjo-Nishi, Chuo-ku, Sapporo City, Hokkaido
Acquisition price: ¥4,410 million
in Susukino, the largest
amusement center in Hokkaido
and one of the most popular
tourist spots in Japan.
■■ SAPPORO TOKYU REI HOTEL,
opened in 1980, is one of thelargest hotels in Sapporo witha total of 575 guest rooms.

18

UR-9

Omotesando Sta.

A-FLAG SAPPORO

AoyamaStreet

UR-8

19

3

テスラ
-minuteカッシーナ・
walk
from
イクスシー
the nearest
train station

ABC-MART

Midosuji

Shinsaibashi-suji Shopping Arcade

Shinsaibashi Sta.

Subway Midosuji Line.

SHINSAIBASHIOPABig Step

大丸南館

357

Metropolitan Expressway
Bayshore Route

東京都
水の科学館

Yume-no-ohashi
bridgePalette Town

Aomi Sta.

有明ランプ

Rinkai Line

Tokyo Teleport Sta.

Diver City Tokyo Plaza
Museum of
Maritime
Science

Onitsuka Tiger

PUMAApple Store

Odaiba-kaihinkoen Sta.

Daiba Sta.
Fuji Television
Grand Nikko
Tokyo Daiba

Yurikamome LineTOKYOミナトリエ

アニヴェルセル東京ベイ

Location: Kita-Aoyama, Minato-ku, Tokyo
Acquisition price: ¥8,790 million■■ The property is located withinwalking distance of Shinjuku
Station and is situated on Meiji
Street with good visibility.
■■ Tenants can efficiently use
a column-free space ofapproximately 344 m2 per floor.

アメリカ村

ダンヒル アーバンリサーチ
タグ・ホイヤーナイキ
ドクターマーチン
バーバリー
POLO by RL
ヒューゴボス ABCマート
ディズニーストア
マツモトキヨシ
プラダ
JINS
トリーバーチGU
アイプリモ
トゥモローランドパーフェクトスーツファクトリー
ドルチェ＆ガッパーナ
アディダス
ジュンアシダ
CLAN

Shinjuku
Gyoen

3-minute
walkfrom the nearest
train station

Oedo
Line
JR Lineテレコムセンタービル
大江戸温泉物語

A-PLACE Aoyama

Acquisition price: ¥4,070 million

テレコムセンター駅

ビューティー＆ユース
フォリフォリ
スウォッチ

TO-4

Location: Sendagaya, Shibuya-ku, Tokyo.

Daimaru
Shinsaibashi
North
Building

Q plaza
SHINSAIBASHI

Aqua City Odaiba

A-PLACE Yoyogi

i Sta

Hotel Nikko
Osaka

Nagahori-Tsurumi Ryokuchi Line
Nagahori Street

Daiba turnoff

Odaiba Statue of Liberty
Hilton Tokyo Odaiba

TO-3

idge

t

UNDER ARMOUR

Shinsaibashi Sta.

Yotsubashi
Ruins

ow Br

Stree

Yofuku-no-Aoyama
Tokyu Hands

Odaiba Marine Park
(Battery No.3)-minutewalk fromthe nearest
train station

Meiji

ROUND 1

Rainb

2

g
Yoyo

Yotsubashi Sta

Harry Winston

Location: Daiba, Minato-ku, Tokyo
Acquisition price: ¥12,740 million■■ Located in Odaiba, an
area crowded by domestic
and inbound visitors, witha magnificient view ofRainbow Bridge and thecentral Tokyo■■ A large commercial facility
with rare, hands-on
experience based retailtenants being the one andonly outlet in Japan or inTokyo metropolitan area

i Sta.
Yoyog

arcade in the Shinsaibashisuji kita shopping district, theproperty enjoys a locational
advantage as a retail property.
■■ This property meets the needsof customers with a diverse
tenant structure including acellular phone store, a fitness
gym and a live music club.

Hanshin Expressway■■ Facing a popular shopping

Route 1 Loop Route

Yotsubashi-suji

Midosuji Grand Tower

Fukutoshin Line■■ The property is superior interms of scale compared toother office buildings locatedin the vicinity.
■■ Large-scale renovations,
including anti-earthquake
reinforcement, were completed
in 2008.

Gaiennishi Street

Nanba Shrine：デッキ・遊歩道

Odaiba Rainbow Park

Location: Minami-Senba,
Chuo-ku, Osaka City, Osaka
Acquisition price: ¥4,725 million

DECKS Tokyo Beach
Metropolitan Expressway
Route No.11

UR-15

至本町駅

Aomi-Chuo
Port Park

A-FLAG KITA SHINSAIBASHI

Fune-nokagakukan Sta.

UR-14

4-minute

Jingu Kyujo

walkChichibunomiya

from the nearest Rugby Stadium
train station

Ginza
Line
.
e Sta
nma
Gaie

青海アーバンスポーツ会場（東京五輪スケートボード
スポーツクライミング会場）

Overview of Tokyo Office Properties
エンポリオアルマーニ

ベルシュカ
オーディマピゲ

ZARA
ZARA
トミーヒルフィガー

スターバックスコーヒー

train station

walkfrom the nearest
train station

JR Line

inb

as

hi

JR LineSta.

Oedo Line

4-minute
walk

TO-6

from the nearest
train station

TAMACHI SQUARE (Land)

Location: Shiba, Minato-ku, Tokyo
Acquisition price: ¥2,338 million (Note)■■ A 2-minute walk from Mita
Station and a 4-minute walkfrom Tamachi Station■■ The area offers close proximity
to central Tokyo with goodtraffic access, as several JRlines and Toei subway lines canbe used.

Mita

Sakurada
StreetShk

4-minute

north side of the west districtof “Shiodome Sio-Site,” which
is known as “Italia Gai (Italy
Town),” and boasts good traffic
access.
■■ Equipped with an earthquakeresistant structure, it is highly
competitive with surrounding
office buildings.

.
Shinbashi Sta

Location: Higashi-Shinbashi, Minato-ku, Tokyo
Acquisition price: ¥4,540 million

Yuri

JR Line from the nearest

Luogo Shiodome

am
Shio
om
dom
e
eS
ta.

walk

a.

Ko
Stre mazaweta4-minute

TO-5■■ The property is located on the

.

a.

t

Location: Ebisu-Minami, Shibuya-ku, Tokyo
Acquisition price: ¥9,640 million■■ The property is conveniently
located a 4-minute walk from
Ebisu Station.
Komazawa
Street■■ Thanks to its traffic
convenience, the Ebisu area
HibiyaLine
attracts numerous tenants,
particularly IT companies suchas software development
companies, apparelcompanies, and foreign firms.

Sta

St

Meiji Stree

A-PLACE Ebisu Minami
isu

isu

TO-2

Eb

Hibiya
Line

ta.
uS
Ebis

Location: Ebisu, Shibuya-ku, Tokyo
Acquisition price: ¥7,400 million■■ The surroundings are wellknown, as the area has alarge concentration of officebuildings around Ebisu.
■■ The property is superior interms of scale compared withother office buildings in thevicinity, with a standard floorarea of approximately 803 m2.

20

ツルハドラッグ

TLC Ebisu Building

Eb

TO-1

ドン・キホーテ

ホノルルコーヒーSt

H&M

フォーエバー21isu

ドン・キホーテ

LUSH
ラオックス
H&M

Eb

ドン・キホーテ
マツモトキヨシAsakusaLineLine

2-minute
walkfrom the nearest
train station

ta

.
Sta

JR
Line
.
Sta
chi
a
Tam Shibaura
Institute ofTechnology

Mi(Note) T he land acquisition price stated is at
the time of the initial acquisition (June13, 2012).

21

No.

JR LineNBF Osaki Bldg.

4-minute
walkfrom the nearest
train station

Hama-rikyu
Gardens

JR Linee
Oedo Lin(Tentative name)Takeshiba Waterfront
Development Projecta.

Gate City Osaki

3-minutewalk fromthe nearest
train station

sucho St

.
Sta

uro

buk
Ike

Shinbashi Sta.

2

Shiodome
Sta.

Location: Kaigan, Minato-ku, Tokyo
Acquisition price: ¥71,600 million■■ A high-spec building able torespond flexibly to a wide
range of needs■■ Accessible from two train
stations serviced by five
大門通り
lines, the property also has大門駅
direct access to Haneda 浜松町二丁目
4地区
Airport. Further development
再開発事業
of the area is expected inline with large-scale urban
redevelopment projects.

Hamamat

oad

Yur
ikam
om
e

pR

Think Park
Tower

Shiodome Building
第一京浜

Loo

ta.

The

Sh
inb
ash
iS
ta.

JR Lineconnection through thepedestrian deck from Osaki
Station, a terminal station
serviced by four railway lines■■ Enjoys good access to theTokyo metropolitan area
as well as Yokohama andSaitama.

TO-12

都営浅草線

walk

from the nearest
train station■■ A 4-minute walk with a direct

iS

Seibu
IkebukuroLinefrom the nearest
train station

3-minute

SL
Squareak

walkLocation: Osaki, Shinagawa-ku, Tokyo
Acquisition price: ¥10,690 million

Location: Shinbashi, Minato-ku, Tokyo
Acquisition price: ¥5,650 million■■ A 3-minute walk from Shinbashi
Station, where seven lines
converge, including the JR
Yamanote Line and Tokyo
Metro Ginza Line■■ In addition to a spacious officespace with a ceiling heightof 2,700 mm, the property
offers quality facilities such asindividual air conditioning.

Os

6-minute

JR LineOSAKI WIZTOWER

eet
Str

Marunouchi
Line

TO-11

ate

YurakuchoLine

A-PLACE Shinbashim
Ya

Location: Minami-Ikebukuro, Toshima-ku, Tokyo
Acquisition price: ¥3,990 million■■ The property offers good visibility,
as it is located along Meiji Street.
A 6-minute walk from Ikebukuro
Station which enjoys high potential
as a terminal station.
■■ Further development of the area is
expected owing to the large scale
development project by a railway
company and the redevelopmentof the land of former administrativebuilding of Toshima ward
scheduled in the vicinity.

TO-8

D
Ke aiichihi inA-PLACE Ikebukuro

Ikeb
ukuro
Sta.

TO-7

Kyu-Shibarikyu
Onshi Garden

Urban Regeneration
Step Up Project(Takeshiba District)

ゆ
り
か
も
め

東京モノレール

首都高速

都心環状

.
Sta
wa
ag a
Shin

Shinagawa East

線

Shibuya Hikarie

4-minute
walk

Roppongi St.
KonnohHachimangu
Shrinefrom the nearest
train station

ky

a.

To

St

u
Namikibashi

e

り
通
治
明

品川インターシティ

リニア新
幹線
（建設中
）

東海道新
幹線

e

Lin

n
Li

JR

ko

yo

To

Konan Exit

り

ya

et

from the nearest
train station

Shibuya Station, serviced bynine railway lines■■ Around Shibuya Station
South Exit, further
246
development and improved
accessibility are expected.
Improvement projects along
National Route 246 and otherrenewal plans include theinstallation of new pedestriandecks and escalators.

通

ibu

Stre

A-PLACE
Shinagwa Higashi

from the nearest
train station■■ A 4-minute walk from

山

Sh

ura
da

walk

ShinagawaTokyu Building

高輪口

Sak

4-minute

from Ebisu Station and ona corner along Meiji Street,the property has excellent
lighting and visibility.
■■ A comprehensive renovationof facilities in the entire
building has enhanced its
appeal to tenants.

-minute
walk

青

銀座

Sta.

■■ A 4-minute walk from JR

6

線

門

蔵

半

uya

JR Line■■ Located a 6-minute walk
Shinagawa-Season
Terrace

A-PLACE Shibuya Konnoh

Location: Shibuya, Shibuya-ku, Tokyo
Acquisition price: ¥4,810 million 渋谷駅

Acquisition price: ¥7,072 million
JR Line

Shinagawa Station■■ Shinagawa Station is serviced
by the Tokaido Shinkansen(bullet train) and has directaccess to Haneda Airport by
the Keikyu Line.

Location: Higashi, Shibuya-ku, Tokyo

TO-14

Shib

Toei Subway
Asakusa Line

ta.

aS

d
an

22

A-PLACE Shinagawa

Location: Konan, Minato-ku, Tokyo
Acquisition price: ¥3,800 milliont
Go

Location: Nishi-Gotanda, Shinagawa-ku, Tokyo
Acquisition price: ¥5,730 million■■ Conveniently located a
3-minute walk from Gotanda
Station on the Toei Subway
3-minute
walk
Asakusa Line and a 4-minutefrom the nearest
train station
walk from Gotanda Station on
JR Line■■ The property offers goodYamaccess to major areas in Tokyo
ate
Str
eet
via several railway lines.

TO-10

Kyu-kaigan
StreetA-PLACE Gotanda

A-PLACE Ebisu Higashi

芝浦一丁目
再開発計画

副都心線

TO-9

TO-13

線

竹芝駅

23

Overview of Activia Account Properties
Hyogo/Osaka/Kyoto

Kyoto

Shin-Kobe

1Shin-Osaka

7 10
2

t
Go

JR
e

re

et

.

Shinagawa Season
Terrace
JR Line7- minute
walk fromthe nearest
train station

6

8

Shin-Yokohama

11

A-PLACE Shinagawa

Shinagawa East

Konan Exit

リニア新

幹線

幹 線（ 建 設

東海道新

中）

五反
田駅

東急
池上
線

Amagasaki Q’s MALL (Land)

Location: Shioe, Amagasaki City, Hyogo
Acquisition price: ¥12,000 million

AA-2

icot Nakamozu

Location: Nakamozucho, Kita-ku, Sakai City, Osaka
Acquisition price: ¥8,500 million

A-PLACE Shinbashi Ekimae
Ginza
Line

i Sta

.

Asakusa
Line
Sta

.
JR
Line

.

as
hi

from the nearest
train station

bash

inb

walk

Shin

Sh

1-minute

Shinbashi Sta

Location: Shinbashi, Minato-ku, Tokyo
Acquisition price: ¥20,500 million■■ The property is located only 1
minute on foot from Shinbashi
Station, a gateway to Ginza,
one of the busiest commercial
districts in Japan■■ With its excellent visibility from
Shinbashi Station and highconvenience, the property can
respond to the diverse needs oftenants including stores where
people shop in person.

24

Tokyo

4

12

AA-1

TO-17

5
9

ShinagawaTokyu Building

高輪口

da

St

ta

ra

ine

aS

ku

aL

nd

Sa

us

St

ta

e
To

ak

da

Go

from the nearest
train station

s
iA

an

JR

1-minute
walk

Linfrom Gotanda Station■■ Having good visibility from
Gotanda Station and excellent
convenience, the property canfulfill an advertising role andattract demand for various
tenants, such as stores where
people shop in person.

Location: Konan, Minato-ku, Tokyo
Acquisition price: ¥18,800 million■■ Located near Konan Exitof Shinagawa Station, an
area serving as a hub ofmajor domestic companies.
Further development of thearea is expected in line withthe opening of the Linear
Shinkansen (maglev train).
■■ A large renovation wascompleted in 2014 including
installation of a green wall.

a.

Kyu-kaigan
Street■■ Located a short 1-minute walk

A-PLACE Shinagawa Higashi

Sta.

Location: Nishi-Gotanda, Shinagawa-ku, Tokyo
Acquisition price: ¥7,280 million

TO-16

gawa

A-PLACE Gotanda Ekimae

Shina

TO-15

Greater Tokyo Area

AA-4

icot Mizonokuchi

Location: Mizonokuchi, Takatsu-ku, Kawasaki City, Kanagawa
Acquisition price: ¥2,710 million

AA-5

icot Tama Center

Location: Ochiai, Tama City, Tokyo
Acquisition price: ¥2,840 million

25

Overview of API
Structure
The REITThe Sponsor

2

3

4

CustodianTransfer Agent
General Administratorof InstitutionallyManaged Assets
Sumitomo Mitsui
Trust Bank, Limited

6

A-PLACE Kanayama

AA-7 Osaka Nakanoshima Building

Location: Kanayama, Naka-ku, Nagoya City, Aichi
Acquisition price: ¥6,980 million

Location: Nakanoshima, Kita-ku, Osaka City, Osaka

AA-6

Acquisition price: ¥11,100 million

AA-8

General Meetingof Unitholders

icot Omori

Location: Omorikita, Ota-ku, Tokyo
Acquisition price: ¥5,790 million

The Asset Manager

51

General Administrator
for Investment
Corporation Bonds
MUFG Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited

Board of Directors
Executive Director:
Kazuyuki Murayama
Supervisory Director:
Yonosuke Yamada

7Supervisory Director:
Yoshinori Ariga

Support Companies
Tokyu Livable Inc.
Tokyu Community Corp.

Independent Auditor

Tokyu Hands Inc.
Tokyu Sports Oasis, Inc.

AA-9

Market Square Sagamihara

Location: Shimokuzawa, Chuo-ku, Sagamihara City, Kanagawa
Acquisition price: ¥4,820 million

AA-10

Umeda Gate Tower

Location: Tsurunocho, Kita-ku, Osaka City, Osaka
Acquisition price: ¥19,000 million

Name

A-PLACE Bashamichi

26

AA-12

2

Asset custody agreement

3

Transfer agency agreement

4

General administration agreement

5

Fiscal agency agreement

6

Sponsor support agreement,
outsourcing agreement

7

Affiliate support agreements

History
Activia Properties Inc.

Executive Director Kazuyuki Murayama

AA-11

Asset management agreement

Tokyu Stay Co., Ltd.

ProfileLocation: Honcho, Naka-ku, Yokohama City, Kanagawa
Acquisition price: ¥3,930 million

Ernst & Young
ShinNihon LLC

1

Address

Shin-Aoyama Building East 9F,
1-1 Minami-Aoyama 1-chome,
Minato-ku, Tokyo, Japan

Contact

TLC REIT Management Inc.
Tel. +81-3-6804-5671

Closing dates

May 31 and November 30

Sep. 7, 2011

Registration of incorporation, and foundation
under Article 166 of the Act on Investment
Trusts and Investment Corporations

Implementation of registration by theprime minister under Article 189 of theSep. 20, 2011 Act on Investment Trusts and Investment
Corporations (registration number: Directorof Kanto Local Finance Bureau No. 73)
Jun. 13, 2012

Listed on the J-REIT section of the Tokyo
Stock Exchange (securities code: 3279)

Commercial Mall Hakata

Location: Tokojimachi, Hakata-ku, Fukuoka City, Fukuoka
Acquisition price: ¥6,100 million

27

I. Asset Management Report
1. Review of Asset Management(1) Investment Performance of the Investment Corporation

Asset Management Report for the 14th Fiscal Period(Semi-Annual Report)
From June 1, 2018 to November 30, 2018

Fiscal period

10th periodBusiness period

From June 1, 2016
to November 30, 2016

Operating revenue[Lease business revenue]
Operating expenses

10,917

12,107

12,72013,327

13,815(In millions of yen)

[10,175][11,370][11,861][12,409][12,673]

5,127

5,645

5,855

6,268

[4,097][4,509][4,706][5,076]

Operating profit(In millions of yen)

6,161

6,980

7,074

7,471

7,546

Ordinary profit(In millions of yen)

5,410

6,152

6,218

6,611

6,697

Profit(In millions of yen)

5,409

6,151

6,217

6,610

6,696

Net assets(In millions of yen)

177,018

208,451

208,523

223,777

223,842(%)(In millions of yen)

[0.2]

[17.8]

[0.0]

[7.3]

[0.0]

371,680

425,977

426,838

445,941

445,464[9.4][14.6]

[0.2]

[4.5]

[–0.1](In millions of yen)

171,532

202,233

202,233

217,091

217,091

Number of units issued and outstanding(Units)599,654665,214665,214

698,704

698,704

Net assets per unit

(Yen)

295,200

313,359

313,467

320,275

320,368

Total distributions(In millions of yen)

5,409

6,151

6,217

6,611

6,696

(Yen)

9,021

9,252

9,346

9,493

9,584

[Earnings distributions per unit][Distributions per unit in excess ofearnings](Yen)[9,021][9,248][9,346][9,462][9,584]

(Yen)

[—]

[—]

[—]

[—]

[—]

Ordinary profit to total assets (Note 2)

(%)

1.5

1.5

1.5

1.5

1.5

Return on unitholders’ equity (Note 2)

(%)

3.1

3.2

3.0

3.1

3.0

Unitholders’ equity to total
assets[Change from the previous
period](Note 2)

47.6

48.9

48.9

50.2

50.2

(%)

[–4.4]

[1.3]

[—]

[1.3]

[―]

Payout ratio(Note 2)

(%)

99.9

100.0

99.9

100.0

99.9

Unitholders’ capital.

(In millions of yen)

4,755

[Change from the previous period]

Statements of Cash Flows
Notes to Financial Statements
Schedule of Financial Statements
Independent Auditor’s Report

14th period[3,833]

Total assets

VI.
VII.
VIII.

13th period(In millions of yen)

[Change from the previous period]

Asset Management Report
Balance Sheets
Statements of Operations
Statements of Changes in Unitholders’ Equity
Statements of Cash Distributions

12th period(In millions of yen)

[Expenses related to rent business]

I.
II.
III.
IV.
V.

11th period

From December 1, 2016 From June 1, 2017 From December 1, 2017 From June 1, 2018
to May 31, 2017
to November 30, 2017
to May 31, 2018
to November 30, 2018

Basic earnings per unit

(Note 1)(%)

Cash distributions per unit

Activia Properties Inc.
1-1 Minami-Aoyama 1-chome,
Minato-ku, Tokyo[Other reference]
Number of properties
Total leasable area

(Properties)(Note 3)

Occupancy rate at end of period
Depreciation
Capital expenditure
NOI(Note 2)

(m2)

35

39

39

42

42

340,271.66

370,194.77

370,296.85

395,994.33

395,967.44

(%)

99.3

99.8

100.0

99.8

99.9

(In millions of yen)

1,051

1,175

1,189

1,234

1,267

(In millions of yen)

502

147

303

1,077

352

(In millions of yen)

8,135

9,185

9,400

9,855

10,006(Note 1) Basic earnings per unit is calculated by dividing profit by the daily weighted average number of investment units issued and outstanding (599,654 units, 664,866 units, 665,214 units ,696,324 and 698,704 units for the 10th, 11th, 12th ,13th and 14th fiscal periods, respectively).
(Note 2) The indicators are calculated as follows:
Ordinary profit to total assets: Ordinary profit ÷ Average total assets × 100; Average total assets = (Total assets at beginning of period + Total assets at end of period) ÷ 2
Return on unitholders’ equity: Profit ÷ Average net assets × 100; Average net assets = (Net assets at beginning of period + Net assets at end of period) ÷ 2
Unitholders’ equity to total assets: Net assets at end of period ÷ Total assets at end of period × 100
Payout ratio: Total distribution amount ÷ Profit × 100 (rounded down to the first decimal place)
NOI: Rental operating income (Lease business revenue + Other lease business revenue – Expenses related to rental business) + Depreciation + Loss on retirement of non-current assets(Note 3) The total leasable area is equal to the gross floor area of leasable space in each property excluding properties for which we acquire land only, based on the lease agreements for building
or floor plans as of the end of each fiscal period. Total leasable area for properties for which only land is acquired is based on the lease agreement for land or land plans as of the end ofeach fiscal period. As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach and Shiodome Building, the figures are in proportion to a pro rata share of
co-ownership interests of each property (75%, 50%, 49% and 25% (10th fiscal period) or 35% (from the 11th fiscal period to the 14th fiscal period), respectively).

2
28

29

(2) Asset Management during the Fiscal Period under Review
1) Transition of Investment Corporation

Activia Properties Inc. (hereinafter referred to as the “Investment Corporation”) was established on
September 7, 2011, with unitholders’ capital of ¥200 million (400 units) and TLC Township Inc. (onApril 1, 2017, an absorption-type merger took place with current TLC REIT Management Inc.
(hereinafter referred to as the “Asset Manager”) as a surviving company and TLC Activia Investment
Management Inc. (its trade name was changed from TLC Township Inc. on April 1, 2012) as anabsorbed company) as the organizer under the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951, including subsequent revisions), and completed its registration in the Kanto
Local Finance Bureau on September 20, 2011 (Director-General of the Kanto Local Finance Bureau
No. 73).
After that, the Investment Corporation was listed on the real estate investment trust securities market ofTokyo Stock Exchange, Inc. (Securities code 3279) on June 13, 2012. On December 13, 2017, theInvestment Corporation carried out a publicly offered capital increase for the fifth consecutive year, andon December 26, 2017, it carried out a third-party allotment.
“Activia” of “Activia Properties,” the name of the Investment Corporation, has been coined from thewords “activate” and “ia,” a suffix meaning “place.” By investing in and managing real estate
appropriate to its name, the Investment Corporation seeks to become an entity capable of broadlyenergizing society. The Investment Corporation will also select real estate capable of sustaining
customer demand as a location for both corporate activities and urban recreation in popular areas, withthe aim of maximizing the medium- and long-term value of unitholders, supported by its proactive
management (management to improve the circumstances by taking initiatives and acting for the future).
Moreover, the Investment Corporation has continued to carefully select investment assets with a focus
on location and quality since having concluded its IPO, and consequently held 42 properties (with thetotal acquisition price of ¥431,485 million) at the end of the fiscal period under review.
2) Investment Environment and Investment Performance

In the fiscal period under review, the Japanese economy remained generally robust amid
an ongoing trend of gradual recovery in the global economy overall against a backdrop of acontinued trajectory of recovery in corporate earnings as well as the employment andincome environments, and despite concerns particularly regarding effects from a string of
natural disasters.
With respect to the environment surrounding retail properties, developments involving
consumer sentiment have been weak according to the Monthly Consumer Confidence
Survey released by the Economic and Social Research Institute, Cabinet Office,
Government of Japan, yet sales of retailers are gradually picking up steam according to
the Current Survey of Commerce released by the Ministry of Economy, Trade andIndustry. Moreover, according to the Consumption Trend Survey for Foreigners Visiting
Japan released by the Japan Tourism Agency, the Ministry of Land, Infrastructure,
Transport and Tourism, the number of foreign overseas visitors to Japan had decreased
briefly due to effects from the string of natural disasters in the quarter spanning July to
September 2018, but currently as of December 2018 the number exceeds 30 million people
annually for the first time ever. As such, demand related to inbound tourism has been
holding firm.
In the rental office market, a favorable environment of supply relative to demand has been
persisting. In that regard, according to data published by Miki Shoji Co., Ltd., the averagevacancy rate of the five central wards of Tokyo (Chiyoda-ku, Minato-ku, Chuo-ku,
Shibuya-ku and Shinjuku-ku) had been hovering just above the 2% range since March2018 until it fell below 2% to 1.98% in November 2018. With respect to rent levels as well,
the average rent has been increasing for 59 consecutive months. The market environment
continues to be favorable also in major cities outside Tokyo amid declining vacancy rates
and an increasingly upward trend in rent levels.
The J-REIT market has held firm overall amid further improvement in businessperformance underpinned largely by a favorable rental office market, as well as relatively
high yields, and despite the Bank of Japan having announced that it will allow long-term
interest rates to fluctuate to a greater extent. Financing activities through publicly offeredcapital increase and property acquisition have been continuously and actively conducted,
and this has led to an ongoing expansion in J-REIT asset sizes.

The Investment Corporation has continued to maintain and improve its portfolio in
accordance with the basic asset management policy set forth in the Articles ofIncorporation. Consequently, total assets held by the Investment Corporation at the end of
the fiscal period under review were 42 properties (with the total acquisition price of¥431,485 million) with the total leasable area of 395,967 m2 (119,764 tsubo). In addition,
the occupancy rate at the end of the 14 th period was 99.9%.
3) Initiatives Regarding Sustainability

In aiming to build a portfolio consisting of “real estate capable of sustaining customer demand,” theInvestment Corporation deems that efforts to achieve “lower environmental loads” while acting to“contribute to our nearby surroundings and local communities” also constitute an important portfolio
consideration. This involves daily effort to achieve our basic objective of cutting unit energy
consumption by an annual average of 1% over the medium to long term. Initiatives carried out in thefiscal period under review include upgrading to LED lighting at some private areas at A-PLACE
Gotanda Ekimae, timed in conjunction with change of tenants at the facility, and some common areasof A-PLACE Ebisu Higashi and Commercial Mall Hakata. In addition, in new lease agreements andmemorandums of renewal, we have added “green lease clauses” and are working with each tenant tobuild a system of cooperation with respect to environmental awareness. Moreover, we continue toengage in annual initiatives geared to acquiring green building certifications. During the fiscal period
under review, we have acquired the CASBEE (Comprehensive Assessment System for Built
Environment Efficiency) for Real Estate certification, for four properties including A-PLACE
Shinagawa Higashi (S class), TLC Ebisu Building (A class), A-PLACE Ebisu Higashi (A class), and APLACE Shibuya Konnoh (A class). As such, a total of 24 of our properties have acquired green
building certification, which amounted to 58.8% of our holdings calculated on the basis of gross floorarea (as of November 30, 2018).
Furthermore, at Tokyu Plaza Omotesando Harajuku, we held the first harvest of the “Yasai-no-mori(garden of vegetables) Project,” which entails the property growing vegetables in cooperation with
NPOs, sponsor companies, and neighboring nursery schools. We also cooperated in community
activities to coexist with nearby businesses, residents and cities as part of initiatives for local society,which included our participation in clean-up campaigns and summer festivals in various areas where
our properties are located.
The Investment Corporation will contribute to achieving a sustainable society by engaging in suchinitiatives geared to the environment and society.
4) Overview of Financing

In the fiscal period under review, the Investment Corporation refinanced borrowings amounting to¥17,000 million in June 2018, in order to cover repayment of loans payable that had come due, andworked to otherwise maintain a stable financial base through ongoing moves that have included
reducing interest costs and diversifying repayment dates on interest-bearing debt. As of the end of the
fiscal period under review, the balance of interest-bearing debt was ¥199,350 million (borrowings of¥181,350 million and investment corporation bonds of ¥18,000 million). The ratio of interest-bearing
debt to total assets (LTV = Balance of interest-bearing debt / Total assets x 100) was 44.8% as of the endof the fiscal period under review. The long-term debt ratio and the ratio of fixed-interest debt to totalinterest-bearing debt were both 95.4%.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review
is as follows. This investment unit does not have a credit rating provided or made available forinspection by a credit rating agency or one scheduled to be provided or made available for inspection bya credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

RatingOutlookJapan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable5) Overview of Financial Results and Distributions

As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit
were ¥13,815 million, ¥7,546 million, and ¥6,697 million, respectively, for the fiscal period underreview, and profit was ¥6,696 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the
4

30

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Articles of Incorporation), it was decided that the all amount of unappropriated retained earnings would
be distributed except a fraction of less than ¥1 of distributions per investment unit, with the aim that as
greatest as possible distributions of profits would be included in tax deductible expenses under Article
67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including subsequent
revisions; hereinafter referred to as the “Special Taxation Measures Act”). Consequently, distributions
per investment unit resulted in ¥9,584.
(3) Capital Increase, etc.
A summary of capital increases until the fiscal period under review is as follows:
Date

Summary

Establishment through private
placement
Capital increase through public
June 12, 2012
offering
Capital increase through thirdJuly 10, 2012
party allotment
Capital increase through public
December 16, 2013
offering
Capital increase through thirdJanuary 15, 2014
party allotment
Capital increase through public
December 17, 2014
offering
Capital increase through thirdJanuary 8, 2015
party allotment
September 7, 2011

October 1, 2015

Investment unit split

Capital increase through public
offering
Capital increase through thirdJanuary 6, 2016
party allotment
Capital increase through public
December 1, 2016
offering
Capital increase through thirdDecember 15, 2016
party allotment
Capital increase through public
December 13, 2017
offering
Capital increase through thirdDecember 26, 2017
party allotment
December 15, 2015

Number of total
investment units issued

Total unitholders’ capital(In millions of yen)

Increase

Increase

Total

Remarks

Total

400

400

200

200

(Note 1)

204,100

204,500

90,83491,034(Note 2)

762

205,262

339

91,373(Note 3)

43,100248,362

32,636124,010(Note 4)

Fluctuation in Market Price of the Investment Securities

Changes in prices of the Investment Corporation’s investment units listed on the Tokyo Stock Exchange
REIT Market are as follows.
Fiscal period

10th period

11th period

12th period

13th period

14th periodBusiness period

From June 1, 2016
to November 30, 2016

From December 1, 2016
to May 31, 2017

From June 1, 2017
to November 30, 2017

From December 1, 2017
to May 31, 2018

From June 1, 2018
to November 30, 2018

Highest price580,000

560,000

518,000

499,500

518,000

Lowest price488,500

490,000

437,500

448,000

466,000(4) Distributions, etc.
The Investment Corporation decided to distribute the entire unappropriated retained earnings at the end of
the fiscal period under review excluding fractions of the distribution amount per unit that are less than ¥1 toensure that the maximum amount of profit distribution would be included in tax deductible expenses withthe application of a special provision of taxation (Article 67-15 of the Act on Special Measures Concerning
Taxation). Accordingly, distributions per investment unit were ¥9,584.
Fiscal periodBusiness period

2,700

251,0622,044

126,054(Note 5)

Unappropriated retained earnings(undisposed loss)

24,050275,11222,800148,855(Note 6)

Retained earnings
Total distribution payments[Distributions per unit]

2,020

277,132

1,915

150,770(Note 7)277,132554,264—

150,770(Note 8)41,870596,134

19,152

169,922(Note 9)3,520

599,654

1,610

171,532(Note 10)61,040660,694

28,583200,116(Note 11)4,520

665,2142,116

202,233(Note 12)31,090696,304

13,793

216,026(Note 13)2,400

698,704

1,064

217,091(Note 14)

(Note 1) The Investment Corporation was established through an investment of Tokyu Land Corporation, which underwrote the investment units with an offer price perunit of ¥500,000.
(Note 2) API issued new investment units through a public offering at a price of ¥460,000 per unit (issue price of ¥445,050 per unit) to raise funds for the acquisition of
new properties, etc.
(Note 3) Following the public offering on June 12, 2012, API issued new investment units through a third-party allotment at a price of ¥445,050 per unit.
(Note 4) API issued new investment units through a public offering at a price of ¥782,925 per unit (issue price of ¥757,229 per unit) to raise funds for the acquisition of
new properties, etc.
(Note 5) Following the public offering on December 16, 2013, API issued new investment units through a third-party allotment at a price of ¥757,229 per unit.
(Note 6) API issued new investment units through a public offering at a price of ¥979,020 per unit (issue price of ¥948,051 per unit) to raise funds for the acquisition of
new properties.
(Note 7) Following the public offering on December 17, 2014, API issued new investment units through a third-party allotment at a price of ¥948,051 per unit.
(Note 8) A 2-for-1 investment unit split was implemented with September 30, 2015 as the record date and October 1, 2015 as the effective date.
(Note 9) API issued new investment units through a public offering at a price of ¥472,360 per unit (issue price of ¥457,418 per unit) to raise funds for the acquisition of
new properties, etc.
(Note 10) Following the public offering on December 15, 2015, API issued new investment units through a third-party allotment at a price of ¥457,418 per unit.
(Note 11) API issued new investment units through a public offering at a price of ¥483,326 per unit (issue price of ¥468,283 per unit) to raise funds for the acquisition of
new properties.
(Note 12) Following the public offering on December 1, 2016, API issued new investment units through a third-party allotment at a price of ¥468,283 per unit.
(Note 13) API issued new investment units through a public offering at a price of ¥458,150 per unit (issue price of ¥443,657 per unit) to raise funds for the acquisition of
new properties.
(Note 14) Following the public offering on December 13, 2017, API issued new investment units through a third-party allotment at a price of ¥443,657 per unit.

(Yen)

10th period

11th period

12th period

13th period

14th period

From June 1, 2016 From December 1, 2016 From June 1, 2017 From December 1, 2017 From June 1, 2018
to November 30, 2016
to May 31, 2017
to November 30, 2017
to May 31, 2018
to November 30, 2018
¥5,409,874 thousand¥6,152,150 thousand¥6,217,532 thousand¥6,611,254 thousand¥6,696,690 thousand¥395 thousand¥251 thousand¥442 thousand¥117 thousand¥311 thousand¥5,409,478 thousand[¥9,021]¥6,151,899 thousand[¥9,248]¥6,217,090 thousand[¥9,346]¥6,611,137 thousand[¥9,462]¥6,696,379 thousand[¥9,584]

Of which, total distributions of profits were ¥5,409,478 thousand[Distributions of profits per unit][¥9,021]
Of which, total return on unitholders’ capital¥― thousand
was[Return on unitholders’ capital per unit][¥―]¥6,151,899 thousand[¥9,248]¥6,217,090 thousand[¥9,346]¥6,611,137 thousand[¥9,462]¥6,696,379 thousand[¥9,584]¥― thousand¥― thousand¥― thousand¥― thousand

[¥―]

[¥―]

[¥―]

[¥―]

¥― thousand¥― thousand¥― thousand¥― thousand¥― thousand

[¥―]

[¥―]

[¥―]

[¥―]

[¥―]

¥― thousand¥― thousand¥― thousand¥― thousand¥― thousand

[¥―]

[¥―]

[¥―]

[¥―]

[¥―]

Of the total return on unitholders’ capital, thetotal distribution payments from theallowance for temporary difference
adjustment[Of the return on unitholders’ capital per unit,
the distribution payment from the allowancefor temporary difference adjustment per unit]
Of the total return on unitholders’ capital, thetotal distribution payments from investments
and other decreased distribution under tax
laws[Of the return on unitholders’ capital per unit,
the distribution payments from investments
and other decreased distribution under tax
laws](5) Future Investment Policy and Issues to Address
In the Japanese economy going forward, we expect the trend of modest recovery to persist on the whole,driven in part by firm domestic demand particularly in terms of capital investment and personal consumption
and also by continued robust employment and income environments, against a backdrop of factors that
include the Bank of Japan’s sustained monetary easing policy as well as support from government
expenditure. On the other hand, risk factors include potential effects on the global economy as well as
financial and capital markets stemming from developments with respect to trade policies particularly of the
U.S. as well as monetary policy in Europe and the U.S., along with potential effects of outcomes innegotiations ahead of the U.K.’s withdrawal from the European Union and Japan’s hike in its consumption
tax rate.
In the rental office market, conditions are likely to remain favorable amid a scenario of ongoing robust
demand particularly in terms of corporate expansion as well as improving and relocating business sites, alongwith continued tightening of supply relative to demand. With respect to the environment surrounding retailproperties, trends that include robust employment and income environments along with the increasing
number of foreign overseas visitors to Japan were ongoing, and temporary effects of the consumption tax
6

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33

hike aside, we anticipate robust performance with some contribution to this expected from fiscal stimulus.
The J-REIT market, is likely to gain support from the robust real estate market and long-term interest rates
remaining at low levels in Japan, despite the need to closely monitor the overseas economic situation
particularly with respect to uncertainties brought about by developments involving policy in Europe and the
U.S. Amid this environment, the Investment Corporation will promote both external growth through making
careful investment decisions, in part by continuing to leverage its sponsor support, and also internal growthby leveraging the competitiveness of its assets under management, with the aim of improving unitholder
value.

Number of new investment units issued
Offering priceTotal offering price
Paid-in amount
Total paid-in amountPayment date(b) Issuance of new investment units through third-party allotment
Number of new investment units issued
Paid-in amount
Total paid-in amountPayment date
Allottee1) Basic Policy

The Investment Corporation’s basic policies are to invest in assets, with targeted investments in Urban
Retail and Tokyo Office properties; utilize the Tokyu Fudosan Holdings Group’s value chain based on
the comprehensive support system; and a governance structure that maximizes unitholder value.
2) External Growth Strategy

The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main target. It
will make its investment decisions carefully, concentrating on selecting properties in excellent locations,
including surrounding areas, and thoroughly considering individual factors such as use, size,
specifications and other qualities of properties, and credibility and name recognition of tenants, in order
to construct a competitive portfolio in the medium to long term.
To acquire these competitive assets on an ongoing basis, the Investment Corporation will work tomaintain and improve the quality of its portfolio and will seek to expand the size of its assets bycarefully selecting investment assets based on the information it receives under its sponsor support
agreement with Tokyu Land Corporation regarding the Investment Corporation and its support
agreement with five group companies in the Tokyu Fudosan Holdings Group. It will also acquire
properties through the exclusive know-how and information-gathering network of the Asset Manager.
3) Internal Growth Strategy

The Investment Corporation will operate, manage, and refurbish its portfolio to maintain and improvethe competitiveness of its facilities through a comprehensive understanding of the features of its overall
portfolio and its individual assets under management, based on the unique expertise of its AssetManager. The Investment Corporation will also seek to manage its portfolio in a stable manner andstrengthen its earnings by establishing appropriate operational and management systems tailored to thespecific characteristics of the assets it has invested in, and through regular and non-regular inspections
by the property management company that has considerable experience in the operation andmanagement of real estate.
The Investment Corporation will also maintain and improve the value of its assets through its expertisein internal growth through operating and managing properties. It will maximize the competitiveness of
its assets through the ongoing assistance of Tokyu Land Corporation and other support companies,
which, through their face-to-face business with consumers, have rich information regarding consumer
needs and developments in industries such as retail and services.
With respect to the property management business for the assets under management, leasing support has
been provided from Tokyu Land Corporation, Tokyu Land SC Management Corporation or Tokyu
Community Corp.
4) Financial Strategy

Having the sound financial strategy in an effort to conservatively control LTV as well as make stablelong-term loans and diversify maturities (diversifying repayment dates), the Investment Corporation will
endeavor to build stable financial base with solid bank formation. In addition, with the aim ofdiversifying means of raising funds, the Investment Corporation will issue investment corporation bonds
while paying close attention to trends in financial markets. The Investment Corporation will also
continue to flexibly issue new investment units while paying appropriate attention to dilution of
investment units with the aim of achieving long-term and stable growth.
(6) Significant Matters after Book Closing
1) Issuance of New Investment Units
At meetings of the board of directors held on November 30, 2018 and December 12, 2018, we
resolved to issue new investment units as described below, and issued these per the terms below once
payment was completed on December 19, 2018 and January 7, 2019. As a result, unitholders’ capitalamounted to ¥248,370,846,700, and the total number of investment units issued came to 771,224units.
  (a) Issuance of new investment units through the public offering (Public placement)

67,320 units¥445,410 per unit
¥29,985,001,200¥431,320 per unit
¥29,036,462,400
December 19, 2018
5,200 units¥431,320 per unit
¥2,242,864,000
January 7, 2019
Nomura Securities Co.,Ltd

2) Borrowing of Funds
In order to cover a part of the acquisition costs for beneficiary interests of real estate in trust describedin the below section“3) Acquisition of Properties”and related costs, the Investment Corporation
borrowed funds as follows.
Totalamountborrowed

Interest
rate

Drawdown
date

Sumitomo Mitsui Trust Bank,
LimitedMizuho Bank, Ltd.

¥5,000
millionBase rate+ 0.13%January 10,
2019

May 31,
2019

MUFG Bank, Ltd.
Short- Sumitomo Mitsui Trust Bank,
term Limited
Mizuho Bank, Ltd.

¥5,000
millionBase rate+ 0.13%

Base rate January 10,+ 0.145%
2019

July 12,
2021

Category

Lender

MUFG Bank, Ltd.
Total
Sumitomo Mitsui Trust Bank,
LimitedMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank of Japan
Inc.
Long- Sumitomo Mitsui Trust Bank,
term Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank of JapanInc.

Due date(Note 1)

Borrowing andrepayment methods,
security, andguarantee

Borrowing based ona borrowing
agreement with thelender shown at left
as the creditor,
lump-sum
January 10, January 10,
repayment,
2019
2020
unsecured, andunguaranteed¥10,000
million¥11,780
million¥1,970
million¥9,640
millionBorrowing based ona borrowing
agreement with theJanuary 10, July 12, lender shown at left
0.36607%2019
2021
as the creditor,
lump-sum
repayment,
unsecured, and
0.55800% January 10, January 11,
unguaranteed(Note 2)20192028

¥1,610January 10, January 11,
0.65264%
million20192028¥25,000
Total
million¥35,000
Total
million(Note 1) If the due date is a non-business day, the due date shall be the following business day. If such day
comes in the following month, the due date shall be the immediately preceding business day.
(Note 2) The Investment Corporation conducts interest rate swaps to hedge interest rate fluctuation risk, and,accordingly, the indicated interest rate reflects the effect of the interest rate swaps.

 3) Acquisition of Properties
The Investment Corporation acquired properties listed below with proceeds from the issuance of new
investment units through the public offering (public placement) and third-party allotment andborrowings, etc. in accordance with the basic asset management policy set forth in the Article of
Incorporation.
8

34

35

(UR-16) Tokyu Plaza Ginza (Land) (acquisition of 30% co-ownership interest)
Type of assets
Acquisition price
Acquisition date
Location
Use
Land area
Gross floor area
Structure
Month and year of completion
Ownership

Trust beneficiary interest¥37,500 million
January 10, 2019
2-1, Ginza 5-chome, Chuo-ku, Tokyo
－3,766.80 m2－－－
Land: Owned (30% co-ownership interest)(UR-17) Q Plaza HARAJUKU (acquisition of 60% co-ownership interest)
Type of assets
Acquisition price
Acquisition date
Location
Use
Land area
Gross floor area
Structure

Month and year of completion
Ownership(AA-13) EDGE Shinsaibashi
Type of assets
Acquisition price
Acquisition date
Location
Use
Land area
Gross floor area
Structure

Month and year of completion
Ownership

Trust beneficiary interest¥13,200 million
January 10, 2019
28-6, Jingumae 6-chome, Shibuya-ku, Tokyo(BuildingA) Retail, (BuildingB) Hall2,165.54 m2
7,667.27 m2(BuildingA) SRC, Steel framed / 11 floors above and 2 floors
underground(BuildingB) SRC, Steel framed / 2 floors above and 1 floor
underground
March 2015
Land:
Owned (60% co-ownership interest)
Building:
Owned (60% co-ownership interest)
Trust beneficiary interest¥19,800 million
January 10, 2019
2-3, Nishishinsaibashi 2-chome, Chuo-ku, Osaka City, Osaka
Office, retail, parking
2,217.78 m2
23,483.28 m2
SRC, Reinforced concrete, Steel framed / 14 floors above and2 floors underground
April 1986
Land:
Owned
Building:
Owned〈Reference Information〉
The Investment Corporation plans to transfer property listed below in accordance with the basic asset
management policy set forth in the Articles of Incorporation.
(UR-6) A-FLAG AKASAKA
Type of assets
Scheduled transfer price

Scheduled delivery date (Note)
Location
Use
Land area
Gross floor area
Structure
Month and year of completion
Ownership

Trust beneficiary interest
Total ¥3,750 million(i) ¥1,875 million (50% co-ownership interest)(ii) ¥1,875 million (50% co-ownership interest)(i) March 1, 2019 (50% co-ownership interest)(ii) June 3, 2019 (50% co-ownership interest)
3-6, Akasaka 4-chome, Minato-ku, Tokyo
Retail514.86 m2
2,429.01 m2
SRC, Steel framed / 7 floors above and 1 floor undergroundFebruary 2008Land:
Ownership and partial leasehold
Building:
Owned(Note) The contract for the sale of trust beneficiary interests falls under a forward commitment, etc. asprovided in the“Comprehensive Guidelines for Supervision of Financial Instruments Business
Operators, etc.”by Financial Services Agency (forward commitment, etc. refers to a postdated sales
contract under which payment and delivery shall be made at least one month after the conclusion of thecontract, or any other contract similar thereto).

2. Overview of the Investment Corporation(1) Unitholders’ Capital
10th period
As of November
30, 2016

11th period
As of May 31,
2017

12th period
As of November
30, 2017

13th period
As of May 31,
2018

14th period
As of November
30, 2018(Units)4,000,000

4,000,000

4,000,000

4,000,000

4,000,000(Units)599,654665,214665,214

698,704

698,704

Unitholders’ capital(In millionsof yen)¥171,532¥202,233¥202,233¥217,091¥217,091

Number of unitholders(Persons)

6,359

6,656

6,871

7,162

6,910

Total number ofauthorized investment
units
Total number ofinvestment units issued(2) Matters Relating to Investment Units
The top 10 unitholders as of the end of the fiscal period under review are as follows:
Number of units
owned

Percentage of total units issued (%)(Note)

Japan Trustee Services Bank, Ltd. (Trust accounts)

129,161

18.48

The Master Trust Bank of Japan, Ltd. (Trust accounts)

111,255

15.92

Tokyu Land Corporation

61,913

8.86

The Nomura Trust and Banking Co., Ltd.
(Investment accounts)

28,691

4.10

Trust & Custody Services Bank, Ltd.
(Securities investment trust accounts)

22,646

3.24

State Street Bank & Trust Company(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited. Tokyo office)12,711

1.81

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

11,100

1.58

THE BANK OF NEW YORK 133970(Standing proxy: Mizuho Bank, Ltd.)

10,246

1.46

STATE STREET BANK WEST CLIENT - TREATY 505234(Standing proxy: Mizuho Bank, Ltd.)

8,160

1.16

STATE STREET BANK AND TRUST COMPANY 505012(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited. Tokyo office)

7,693

1.10

Total

403,576

57.76

Name

(Note) The percentage of total units issued is calculated by rounding down to the second decimal place.

10
36

37

(3) Matters Relating to Officers, etc.

1) Executive Director, Supervisory Directors, and Independent Auditor during the Fiscal Period under Review
Title
Executive
Director(Note 1)Name of officer, etc.

Major concurrent post, etc.

Kazuyuki Murayama

TLC REIT Management Inc.,
General Manager of Strategy Department,
Activia Management Division

Yonosuke Yamada

Yamada, Goya and Suzuki Law Office
Managing Partner

Supervisory
Directors(Note 1)

Yoshinori Ariga

Ariga Yoshinori Accounting Office
Managing Partner

Independent
AuditorErnst & Young ShinNihon
LLC―

Total amount of compensationfor each position during thebusiness period under review(In thousands of yen)

3. Assets of the Investment Corporation(1) Composition of Assets of the Investment Corporation
13th period
As of May 31, 2018

Type of assets

3,300

Real estate

Ratio to total assets(%)

Total amount ofassets owned(In millions of yen)
(Note 1)

Ratio to total assets(%)

Urban Retail Properties

―

―

―

―

Tokyo Office Properties

―

―

―

―

Activia Account Properties

―

―

―

―

Subtotal
Urban Retail Properties

―

―

―

―

(Note 3)

172,14838.6

151,044

33.9(Note 3)

175,40239.3

195,900

44.0

Activia Account Properties

83,34818.7

83,038

18.6

Subtotal

430,898

96.6

429,984

96.5

Total real estate, etc.

430,898

96.6

429,984

96.5

Deposits and other assets

15,042

3.4

15,4803.5

445,941100.0

445,464100.0(430,898)(96.6)(429,984)(96.5)

13,100(Note 2)

Tokyo Office Properties
Real estate in trust2) Policy Regarding the Dismissal of or Refusal to Reappoint the Accounting Auditor

The Investment Corporation will dismiss the accounting auditor in conformity with the provisions of
the Investment Trust Act and determine not to reappoint the accounting auditor through a resolution ofa general meeting of unitholders while comprehensively considering various factors.

Total assets (Note 2)

Asset Manager, Custodian Company, and Administrative Agent
Name

Asset manager

TLC REIT Management Inc.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (administration of the unitholders’ registry, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting data processing, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administration related to the operation ofadministrative instruments)
General administrator (administration related to investment corporation
bonds)

Total amount ofassets owned(In millions of yen)
(Note 1)―

(Note 1) Executive Directors or Supervisory Directors do not hold any investment units of the Investment Corporation under their or another person’s name. Supervisory
Directors may serve as directors of companies other than those mentioned above, but there are no mutual business interests whatsoever between such companies andthe Investment Corporation.
(Note 2) Compensation for the Independent Auditor includes the audit fees for financial statements prepared in English.

Consignment classification

Category

Sumitomo Mitsui Trust Bank, Limited

14th period
As of November 30, 2018

(Note 1) The total amount of assets owned is based on the amounts on the balance sheets as of the end of each fiscal period (for real estate and real estate in trust, book valueless depreciation expenses), in accordance with the asset valuation method set forth in the Articles of Incorporation of the Investment Corporation.
(Note 2) Total assets represent the amounts recorded on the balance sheets as of the end of each fiscal period. The figures in parentheses represent portions that practicallycorrespond to real estate owned in the object assets.
(Note 3) As of June 1, 2018, the name of Shinbashi Place was changed to A-PLACE Shinbashi Ekimae and its asset category was changed from Urban Retail Properties to Tokyo
Office Properties; the same shall apply hereinafter.

(2) Major Assets Owned
Major assets owned by the Investment Corporation (the 10 largest properties by book value) as of the endof the fiscal period under review are as follows:

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited

Property nameBook value at end of
period(In millions of yen)

Leasable area(m2)
(Note 1)

Leased area(m2)
(Note 2)

Occupancy rate(%)
(Note 3)

Ratio of rental
revenue to total
rental revenues(%)

Major use

Shiodome Building (Note 4)

71,141

28,136.05

28,136.05

100.0

11.1

OfficeTokyu Plaza Omotesando
Harajuku (Note 4)

44,7574,999.87

4,999.87

100.0

8.0

RetailA-PLACE Shinbashi Ekimae

20,921

6,484.57

6,484.57

100.0

2.8

OfficeKobe Kyu Kyoryuchi 25Bankan

20,753

19,653.90

19,653.90

100.0

5.4

RetailUmeda Gate Tower

19,431

13,624.49

13,624.49

100.0

3.2

OfficeA-PLACE Shinagawa Higashi

18,876

14,658.98

14,658.98

100.0

3.7

OfficeQ plaza SHINSAIBASHI

13,4372,820.23

2,820.23

100.0

2.5

RetailDECKS Tokyo Beach (Note 4)

12,892

16,112.00

16,056.19

99.7

4.6

RetailAmagasaki Q’s MALL (Land)12,113

27,465.44

27,465.44

100.0

2.6

RetailTokyu Plaza Akasaka (Note 4)

11,744

16,609.75

16,609.75

100.0

4.8

Retail246,070

150,565.28

150,509.47

100.0

—

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

Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of November 30, 2018 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of November
30, 2018.
Leased area refers to the leased area of each property based on lease agreements as of November 30, 2018. For properties with master lease agreements, leased area
refers to leased areas of each property and is actually leased based on sublease agreements with end-tenants.
Occupancy rate refers to the percentage of total leased area for each property to total leasable area for each property as of November 30, 2018, rounding down to thefirst decimal place.
As for Shiodome Building, Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach and Tokyu Plaza Akasaka, the figures are in proportion to a pro rata share of
our trust beneficiary co-ownership interest of each property (35%, 75% , 49%and 50%, respectively).

12
38

39

(3) Details of Assets, such as Real Estate, Incorporated into the Portfolio

Amagasaki Q’s MALL (Land)

A summary of properties owned and under management by the Investment Corporation as of the end of the
fiscal period under review is as follows:

Tokyu Plaza Omotesando
Harajuku (Note 4)

Urban Retail Properties

Tokyu Plaza Akasaka (Note 4)

Location30-3 Jingu-mae 4-chome, Shibuya-ku, Tokyo
14-3 Nagatacho 2-chome, Chiyoda-ku,
Tokyo

Q plaza EBISU

8-12 Ebisu 1-chome, Shibuya-ku, Tokyo

Kyoto Karasuma Parking
Building

678 Motohonenjicho, Nakagyo-ku, Kyoto
City, Kyoto

A-FLAG AKASAKA (Note 6)

3-6 Akasaka 4-chome, Minato-ku, Tokyo

Kobe Kyu Kyoryuchi
25Bankan

25 Kyomachi, Chuo-ku, Kobe City, Hyogo

A-FLAG SAPPORO
A-FLAG SHIBUYA
Q plaza SHINSAIBASHI
A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI
A-FLAG DAIKANYAMA
WEST
A-FLAG KITASHINSAIBASHIDECKS Tokyo Beach (Note 4)

1, Minami-Yonjo-Nishi 5-chome, Chuo-ku,
Sapporo City, Hokkaido
32-13, Udagawa-cho, Shibuya-ku, Tokyo
1-10 Shinsaibashi-suji 1-chome, Chuo-ku,
Osaka City, Osaka
4-40, Minami-Aoyama 5-chome, Minatoku, Tokyo
3-16, Minami-Aoyama 6-chome, Minatoku, Tokyo
11-6, Sarugakucho, Shibuya-ku, Tokyo
10-11, Minami Senba 3-chome, Chuo-ku,
Osaka city, Osaka
6-1, Daiba 1-chome, Minato-ku, Tokyo

Asset type
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

Subtotal
TLC Ebisu Building
A-PLACE Ebisu Minami
A-PLACE Yoyogi
A-PLACE Aoyama

Tokyo Office Properties

Luogo Shiodome

18-18 Ebisu 1-chome, Shibuya-ku, Tokyo
15-1 Ebisu-minami 1-chome, Shibuya-ku,
Tokyo
23-15 Sendagaya 5-chome, Shibuya-ku,
Tokyo
11-3 Kita-Aoyama 2-chome, Minato-ku,Tokyo
3-3 Higashi-Shinbashi 2-chome, Minato-ku,
Tokyo

TAMACHI SQUARE (Land)

26-24 Shiba 5-chome, Minato-ku, Tokyo

A-PLACE Ikebukuro

16-22 Minami Ikebukuro 1-chome,
Toshima-ku, Tokyo

A-PLACE Shinbashi

11-1 Shinbashi 4-chome, Minato-ku, Tokyo

A-PLACE Gotanda

27-3, Nishigotanda 2-chome, Shinagawa-ku,
Tokyo

A-PLACE Shinagawa

8-40, Konan 1-chome, Minato-ku, TokyoOSAKI WIZTOWER

11-1 Osaki 2-chome, Shinagawa-ku, Tokyo

Shiodome Building (Note 4)

2-20 Kaigan 1-chome, Minato-ku, Tokyo

A-PLACE Ebisu Higashi(Note 5)
A-PLACE Shibuya Konnoh(Note 5)

13-11 Higashi 3-chome, Shibuya-ku, Tokyo
3-1 Shibuya 3-chome, Shibuya-ku, Tokyo

A-PLACE Gotanda Ekimae

5-1 Nishigotanda 1-chome, Shinagawa-ku,
Tokyo

A-PLACE Shinagawa Higashi

7-18 Konan 1-chome, Minato-ku, Tokyo

A-PLACE Shinbashi Ekimae

12-9 Shinbashi 1-chome, Minato-ku, Tokyo

Subtotal

Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

Book value at endof period(In millions of yen)
(Note 3)

4,999.87

61,20044,757

16,609.75

15,50011,744

Total leasable area(m2)
(Note 1)

4,024.88

11,9008,251

21,616.04

11,0008,736

icot Mizonokuchi
Activia Account Properties

Property nameicot Nakamozu

Assessed value at
end of period(In millions ofyen)(Note 2)

icot Tama Center
A-PLACE Kanayama
Osaka Nakanoshima Building
icot Omori
Market Square Sagamihara

4,401

1,994.65

4,920

4,722

2,579.08

2,340

2,345

2,536.75

4,740

4,847

16,112.00

12,887

12,892

122,530.76

189,637

151,044

7,342.60

10,8007,289

7,950.49

14,6009,411

3,106.17

4,710

3,907

7,303.69

10,1008,615

4,476.35

6,220

4,256

1,287.96

2,830

2,362

3,409.73

5,120

3,757

5,052.14

7,080

5,701

4,028.69

6,970

5,529

2,986.36

4,400

3,787

7,193.28

14,60010,71328,136.05

75,60071,1414,010.69

7,700

7,112

2,995.72

5,350

4,970

4,316.89

7,690

7,546

14,658.98

19,50018,876

6,484.57

20,50020,921

114,740.36

223,770

195,900

5,181.58

3,880

2,645

9,314.90

8,550

6,377

20,229.25

14,30010,9706,209.79(Note 5)

6,870

5,674

4,500

4,012

6,290

6,336

Subtotal

158,696.32

98,28083,038

Total

395,967.44

511,687

429,984

4,723

4,880

2,629

9,612.88

Commercial Mall Hakata

2,656.53

8,137

3,170

9,775.50

A-PLACE Bashamichi

13,437

10,50014,032.05

4,709

3,070

14,60028,098.02

19,431

20,7532,820.23

12,113

5,020

3,750

6,358

13,90021,30026,900

7,930

Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests
Trust beneficiaryinterests

27,465.44

13,624.49

2,280.22

3,417.70

777-2 Shimokuzawa, Chuo-ku, Sagamihara
City, Kanagawa
1-9, Tsurunocho, Kita-ku, Osaka City,Osaka
43 Honcho 4-chome, Naka-ku,Yokohama
City, Kanagawa
6-40, Tokojimachi 2-chome, Hakata-ku,
Fukuoka city, Fukuoka

Trust beneficiaryinterests

15,152.42

19,653.90

7,090

35 Ochiai 1-chome, Tama City, Tokyo
14-18 Kanayama 1-chome, Naka-ku,
Nagoya City, Aichi
2-2 Nakanoshima 2-chome, Kita-ku, Osaka
City, Osaka
8-2, Omorikita 1-chome, Ota-ku, Tokyo

Umeda Gate Tower

21,229.16

3-1 Shioe 1-chome, Amagasaki City, Hyogo(main building)
2-3 Shioe 1-chome, Amagasaki City, Hyogo(sports club)428-2 Nakamozucho 3-cho, Kita-ku, Sakai
City, Osaka
11-1 Mizonokuchi 6-chome, Takatsu-ku,
Kawasaki City, Kanagawa(Note 1)

Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of November 30, 2018 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of November
30, 2018.
(Note 2) The appraisal of each property is commissioned to the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd.,
Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K.. Assessed value at end of period stands for the appraised value described in each real estateappraisal report, with November 30, 2018 taken as the point of evaluation.
(Note 3) Book value at end of period stands for the book value minus depreciation as of November 30, 2018, rounded down to the nearest ¥ million.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach and Shiodome Building, the figures are in proportion to a pro rata share of
our trust beneficiary co-ownership interest of each property (75%, 50%, 49% and 35%, respectively).
(Note 5) The calculation of total leasable area for icot Omori includes part of an external bicycle parking lot (approximately 21 m2) and part of a common area on the second
floor (approximately 28 m2).
(Note 6) Regarding the trust beneficiary co-ownership interests in A-FLAG AKASAKA, the Investment Corporation and ORB Limited Liability Company concluded sales
contracts with the effective dates of March 1, 2019 (50% co-ownership interest) and June 3, 2019 (50% co-ownership interest). The Investment Corporation also
concluded an agreement on trust beneficiary co-ownership interest with ORB Limited Liability Company; the same shall apply hereinafter.

14
40

41

Changes in key figures in the rental business (figures by property owned and under management by the Investment Corporation)
13th period
14th period(From December 1, 2017 to May 31, 2018)(From June 1, 2018 to November 30, 2018)
Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

Revenues related torent business(In millions of yen)
(Note 3)

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

Revenues related torent business(In millions of yen)
(Note 3)

Ratio of rental
revenue to total
rental revenues(%)

Tokyu Plaza
30

100.0

1,084

8.1

30

100.0

1,101

8.0

97

100.0

612

4.6

98

100.0

656

4.8

Q plaza EBISU

4

100.0

267

2.0

4

100.0

275

2.0

Shinbashi Place

6

100.0

(Note 5)(Note 5)

－

－

－

－

2

100.0

(Note 5)(Note 5)2100.0(Note 5)(Note 5)

Omotesando Harajuku(Note 4)
Tokyu Plaza Akasaka(Note 4)

Kyoto Karasuma
Parking Building

Urban Retail Properties

A-FLAG AKASAKA

100.0

353

2.7

1

100.0

356

2.6

icot Nakamozu

2

100.0

310

2.3

2

100.0

311

2.3

icot Mizonokuchi

1

100.0

(Note 5)(Note 5)1100.0(Note 5)(Note 5)

icot Tama Center

9

100.0

147

1.1

9

100.0

147

1.1

A-PLACE Kanayama

20

100.0

285

2.1

20

100.0

292

2.1

Osaka Nakanoshima
Building

40

98.4

525

3.9

41

100.0

535

3.9

icot Omori

9

100.0

233

1.8

8

100.0

239

1.7

3

100.0

(Note 5)(Note 5)3100.0(Note 5)(Note 5)

Umeda Gate Tower

13

100.0

449

3.4

14

100.0

444

3.2

A-PLACE Bashamichi

33

100.0

185

1.4

33

100.0

191

1.4

Commercial Mall

1

Hakata

8

97.0

168

1.3

18

97.0

222

1.6

Market Square
Sagamihara

8

100.0

103

0.8

8

100.0

107

0.8

Subtotal

149

99.6

－

－

150

99.8

－

－

7

100.0

809

6.1

7

100.0

744

5.4

Total

576

99.8

13,327

100.0

577

99.9

13,815100.0

A-FLAG SAPPORO

18

100.0

443

3.3

17

100.0

677

4.9

A-FLAG SHIBUYA

2

100.0

205

1.5

2

100.0

212

1.5

5

88.4

283

2.1

6

100.0

345

2.5

Kobe Kyu Kyoryuchi
25Bankan

Q plaza
SHINSAIBASHI
A-FLAG KOTTO(Note 1) The number of tenants refers to the total number of tenants for each property at the end of each fiscal period, based on each lease agreement. In the case where a master
lease agreement is in place, the number of end tenants is counted. In the case of a property for which only land is acquired, the total number of tenants on the land iscounted.
(Note 2) Occupancy rate refers to the percentage of leased area to leasable area for each property as of the end of each fiscal period, rounding down to the first decimal
place.
(Note 3) Rental revenue includes other rental revenue.

7

100.0

107

0.8

7

100.0

121

0.9

(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach and Shiodome Building, the figures are in proportion to a pro rata share of

3

100.0

123

0.9

4

100.0

138

1.0

(Note 5) Rental revenue and the ratio of rental revenue to total rental revenues are not disclosed, as consent from tenants has not been obtained.

1

100.0

(Note 5)(Note 5)1100.0(Note 5)(Note 5)

5

100.0

108

0.8

5

100.0

110

0.8

DECKS Tokyo Beach

86

100.0

462

3.5

85

99.7

634

4.6

Subtotal

281

99.7

－

－

276

100.0

－

－

TLC Ebisu Building

12

100.0

317

2.4

12

100.0

324

2.4

11

100.0

368

2.8

11

100.0

373

2.7

4

100.0

127

1.0

3

100.0

129

0.9

DORI
A-FLAG
BIJUTSUKAN DORI

our trust beneficiary co-ownership interest of each property (75%, 50% , 49% and 35%, respectively).

A-FLAGDAIKANYAMA(4) Details of Specified Transaction
The outstanding contract amount and fair value of specified transactions as of the end of the fiscal
period under review are as follows:

WEST
A-FLAG KITASHINSAIBASHI

A-PLACE Ebisu
MinamiA-PLACE Yoyogi
A-PLACE Aoyama

8

100.0

293

2.2

8

100.0

303

2.2

Luogo Shiodome

7

100.0

174

1.3

7

100.0

181

1.3

TAMACHI SQUARE

1

100.0

62

0.5

1

100.0

62

0.5

A-PLACE Ikebukuro

1

100.0

(Note 5)(Note 5)1100.0(Note 5)(Note 5)

A-PLACE Shinbashi

10

100.0

197

1.5

9

98.7

199

1.4

A-PLACE Gotanda

11

100.0

175

1.3

11

100.0

180

1.3

A-PLACE Shinagawa

7

100.0

114

0.9

7

100.0

116

0.8

OSAKI WIZTOWER

5

100.0

334

2.5

5

100.0

349

2.5

38

99.9

1,499

11.3

39

100.0

1,534

11.1

8

100.0

179

1.3

8

100.0

175

1.3

4

100.0

(Note 5)(Note 5)

4

100.0

115

0.8

10

100.0

180

1.4

10

100.0

179

1.3

9

100.0

492

3.7

9

100.0

509

3.7

－

－

－

－

6

100.0

381

2.8

146

100.0

－

－

151

99.9

－

－

(Land)

Tokyo Office Properties

1

MALL (Land)

Activia Account Properties

Property name

Amagasaki Q’s

Shiodome Building(Note 4)
A-PLACE Ebisu
HigashiA-PLACE Shibuya
KonnohA-PLACE Gotanda
EkimaeA-PLACE Shinagawa
HigashiA-PLACE Shinbashi
EkimaeSubtotal(In thousands of yen)

Classification

Over-the-counter

Transaction

Notional contract amount (Note 1)

Interest rate swaps(Receive floating pay fixed)
Total

Over 1 year

Fair value(Note 2) (Note 3)

19,400,000

17,000,000

54,245

19,400,000

17,000,000

54,245

(Note 1) The contract amount of interest rate swaps is presented based on its notional principal.
(Note 2) The statement of the fair value is omitted for those transactions that satisfy requirements for special treatment based on accounting standards for financial
instruments.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.
(5) Other Assets
There are no major incorporations of other specified assets that are the principal investment targetsof the Investment Corporation as of the end of the fiscal period under review.

16
42

43

4. Capital Expenditure for Assets under Management(1) Scheduled Capital Expenditure
The following table shows major capital expenditure for renovation works, etc., scheduled forthe properties owned by the Investment Corporation at the end of the fiscal period underreview. The estimated construction cost below includes the portion expensed for accounting
purposes.

Name of real property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid(2) Capital Expenditure during the Period
For assets held by the Investment Corporation in the 14th fiscal period, construction work conductedby the Investment Corporation during the fiscal period ended November 30, 2018 that falls into
capital expenditure is as follows. The capital expenditure for the fiscal period ended November 30,
2018 amounted to ¥352 million, and repair and maintenance expenses that were accounted for as
expense in the fiscal period ended November 30, 2018 came to ¥281 million. On aggregate,
construction work of ¥633 million was carried out during the fiscal period.
Name of real property(Location)

Purpose

PeriodConstruction cost
(Millions of yen)

A-FLAG SAPPORO(Sapporo, Hokkaido)

Conversion of air
conditioning units of large
From September 2018banquet hall systems into gasto November 2018
heat-pump (GHP) airconditioning systems

Tokyu Plaza Akasaka(Chiyoda, Tokyo)

Construction to upgrade
plumbing

From July 2018
to November 2018

Renovation of multilevel car
park system

From September 2018
to November 2018

17

60

A-PLACE Shinbashi(Minato, Tokyo)

Large-scale repairs

From November 2018
to April 2019

139

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of hot water
main pipe

From January 2019
to April 2019

59

–

–

Tokyu Plaza
Omotesando
Harajuku(Shibuya, Tokyo)

Renewal works (First
period)From February 2019
to May 201948
(Note)––A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of power
control board(First
period)From June 2018
to May 2019

29

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of halon fire
extinguishing system control
panel

From October 2018
to November 2018

16

A-FLAG SAPPORO(Sapporo, Hokkaido)

Work to replace card
locks

From January 2019
to March 2019

21

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of heater units

From November 2018
to November 2018

14–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of air
conditioning units and fan
coil units

From September 2018
to November 2018

14

A-FLAG SAPPORO(Sapporo, Hokkaido)

Extension of chilled water
coil

From May 2018
to June 201811

TLC Ebisu Building(Shibuya, Tokyo)

Replacement works forreceivers and sensors ofautomatic fire alarms

From August 2018
to November 201811

Tokyu Plaza
Omotesando Harajuku(Shibuya, Tokyo)

Renovation of women’s
restroom

From November 2018
to November 201810
(Note)A-FLAG SHIBUYA(Shibuya, Tokyo)

Maintenance of total heatexchangers

From November 2018
to November 201810

(Kobe, Hyogo)

Renewal of air
A-PLACE Shinagawa
conditioning
Higashiequipment on the(Minato, Tokyo)
fourth floor

From December 2018
to January 2019

Work to reinforce
DECKS Tokyo Beach ceiling meeting(Minato, Tokyo)
specific engineering
specifications

From January 2019
to February 201911(Note)––

Renewal of ITV
camera surveillancesystemFrom January 2019
to February 201910(Note)––

Tokyu Plaza
Construction of
Omotesando Harajuku
nursing room
(Shibuya, Tokyo)

From February 2019
to February 201910(Note)

Kobe Kyu Kyoryuchi Renovation of
25Bankanmultilevel car park
(Kobe, Hyogo)systemFrom April 2019
to May 2019

Shiodome Building(Minato, Tokyo)

14

Kobe Kyu Kyoryuchi
25Bankan

–

Other
10

–

–

(Note) The shown estimated construction cost with regard to Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach and Shiodome Building is the amountequivalent to the ratio of the Investment Corporation’s co-ownership interests of real estate trust beneficiary (75%, 49% and 35%, respectively).

167
Total

(Note)

17(Note)

352

The shown estimated construction cost with regard to Tokyu Plaza Omotesando Harajuku and Tokyu Plaza
Akasaka is the amount equivalent to the ratio of the Investment Corporation’s co-ownership interests of realestate trust beneficiary (75% and 50%, respectively).

(3) Money Accumulated for Long-Term Repair Plan
Not applicable

18
44

45

(2) Borrowings
The status of borrowings from financial institutions as of November 30, 2018 is as follows:

5. Expenses and Liabilities(Unit: Millions of yen)

(1) Details of Expenses Related to Asset Management, etc.
Item(a) Asset management fees (Note)(b) Asset custody fees

13th period(From December 1, 2017
to May 31, 2018)(In thousands of yen)
14th period(From June 1, 2018
to November 30, 2018)

Lender㻌

Sumitomo Mitsui Trust
Bank, Limited

1,034,028

1,077,918

Mizuho Bank, Ltd.

12,427

12,638MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited(c) Administrative service fees

32,131

32,248(d) Directors’ compensation

3,300

3,300

(e) Other operating expenses

67,522

66,403

1,149,409

1,192,509

Total

Category

Shortterm
loans
payableMUFG Bank, Ltd.

September 29,
2017

January 9,
2018

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

(Note) Asset management fees contain acquisition fees that were included in the book value of acquired properties (13th fiscal period: ¥117,825 thousand).

Drawdown
dateJune 1,2018

MUFG Bank, Ltd.

Endingbalance

1,250

–

1,250

–

2,500

–

1,025

1,025

2,050

2,050

1,025

1,025

–

1,670

–

1,670

–

1,660

Total

9,100

9,100

Mizuho Bank, Ltd.

3,000

–

3,000

–

Sumitomo Mitsui Trust
Bank, Limited

June 13,
2012

MUFG Bank, Ltd.

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks－%(Note 7)

June 1,
2018

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.18898%

January 9,
2019

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.18802%

June 1,2019

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed㻌㻌(Note 3)

Unsecured,
non-guaranteed㻌

1.06309%

June 13,2018

Lump-sum
repayment

6,000

–

Sumitomo Mitsui Trust
Bank, Limited

500

500

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

500

500

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

500

500

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

500

500

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

250

250

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

250

250

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

800

800

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

800

800

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

800

800

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

800

800

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

400

400

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

400

400

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

6,000

6,000

1.19051%

June 13,2019

Lump-sum
repayment(Note 3)

Unsecured,
non-guaranteed

1,200

1,200

0.02875%(Note 5)1,200

0.02875%(Note 5)June 28,
2019

Lump-sum
repayment(Note 4)1,200

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Longtermloanspayable(Note 2)BeginningbalanceMizuho Bank, Ltd.
MUFG Bank, Ltd.

Development Bank ofJapan Inc.
Mizuho Trust & Banking
Co.,LTD.
The Norinchukin Bank

January 9,
2015

April 19,2013

June 13,2012
June 30,
2016

Lump-sum
repayment

Lump-sum
repayment

20
46

47

(Unit: Millions of yen)
Category㻌LenderDrawdown
dateEndingbalance

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks㻌

(Unit: Millions of yen)
Category㻌LenderDrawdown
date

BeginningbalanceEndingbalance

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks㻌

Sumitomo Mitsui Trust
Bank, Limited

340

340

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,340

1,340

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

340

340

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,340

1,340

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

340

340

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,340

1,340

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

340

340

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,340

1,340

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

170

170

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

670

670

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

170

170

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

670

670

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

1,500

1,500

0.51000%(Note 4)500

0.25000%

March 31,2021

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

1,500

Unsecured,
non-guaranteed

500

1,500

August 29,
2019

320

320

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

640

640

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

320

320

December 28, Lump-sum
2021
repayment(Note 3)

Unsecured,
non-guaranteed

160

160

Development Bank ofJapan Inc.

160

160

Sumitomo Mitsui Trust
Bank, Limited

840

840

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

840

840

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840

840

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

840

840

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

420

420

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

420

420

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

March 31,
2015

2,000

2,000

0.68500%

500

March 31,2022

Lump-sum
repayment(Note 4)500

Unsecured,
non-guaranteed

March 31,
2017

400

400

0.30630%400

March 31,2022

Lump-sum
repayment(Note 4)400

Unsecured,
non-guaranteed

1,500

1,500

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500

1,500

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500

1,500

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

1,500

1,500

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

200

200

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

200

200

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200

200

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200

200

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

100

100

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100

100

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Mizuho Trust & Banking
Co.,LTD.
Shinkin Central Bank

January 9,
2015

August 29,
2014

Sumitomo Mitsui Trust
Bank, Limited

160

MUFG Bank, Ltd. (Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd. (Note 6)

Longtermloanspayable(Note 2)Beginningbalance160

January 10,
2014

160
160

160

160

0.93846%

January 10,
2020

160

160

0.93846%

January 10,
2020

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

80

80

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

80

80

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

600

600

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

600

600

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

600

600

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

600

600

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

300

300

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

300

300

January 10,2020(Note 4)

Resona Bank, Limited.

1,500

1,500

1,000

1,000

500

500

500

500

MUFG Bank, Ltd.

The Bank of Fukuoka, Ltd.
The Gunma Bank, Ltd.

July 9,2014

March 31,2015

The Norinchukin Bank
Sumitomo Mitsui Trust
Bank, Limited

1,060

MUFG Bank, Ltd. (Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

1,060

December 19,
2013

1,060
1,060

0.72546%

0.52500%

December 19,
2020

1.07980%

December 19,
2020

1,060

1,060

1.07980%

530

March 31,2020

1.07980%

1.07980%530

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

Mizuho Bank, Ltd.
Longtermloanspayable(Note 2)

MUFG Bank, Ltd.

Mizuho Trust & Banking
Co.,LTD.
Shinkin Central Bank
Tokio Marine & Nichido
Fire Insurance Co., Ltd.

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

December 19,
2020
Lump-sum
December 19, repayment2020

1.07980%

December 19,
2020

1.07980%

December 19,
2020(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

January 5,
2018

January 9,
2015

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note 6)

1,060

530

Unsecured,
non-guaranteed

March 31,2017

Sumitomo Mitsui Trust
Bank, Limited

The 77 Bank, Ltd.

1,060

530

Lump-sum
repayment

Nippon Life Insurance
Company

January 10,2014

Mizuho Bank, Ltd.

June 15,2015

MUFG Bank, Ltd.

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

December 16,
2015

0.41931%

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment

22
48

49

(Unit: Millions of yen)
Category㻌LenderDrawdown
date

Sumitomo Mitsui Trust
Bank, Limited

Endingbalance

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks

1,400

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

1,400

1,400

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

1,400

1,400

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

700

700

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

700

700

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

2,000

2,000

1,500

1,500

1,000

1,000

0.41380%

March 29,2024

(Note 4)

Unsecured,
non-guaranteed

Shinkin Central Bank

500

500

The Norinchukin Bank

500

500

Sumitomo Mitsui Trust
Bank, Limited

1,200

1,200

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed375

MUFG Bank, Ltd. (Note 6)

1,200

1,200

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

375

375

Mizuho Bank, Ltd.

1,200

1,200

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

800

800

MUFG Bank, Ltd.

1,200

1,200

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

1,600

1,600

600

0.85377%

June 17,2024(Note 3)800

Sumitomo Mitsui Banking
Corporation

600

800

Unsecured,
non-guaranteed

400

400

Development Bank ofJapan Inc.

600

600

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

400

400

1,500

1,500

3,000

3,000

0.33150%(Note 5)June 17,2024

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

1,500

1,500

1,500

1,500

3,000

3,000

December 13, Lump-sum
2024
repayment(Note 4)

Unsecured,
non-guaranteed

Lump-sum
repayment(Note 3)

Unsecured,
non-guaranteed

September 16, Lump-sum
2025
repayment(Note 3)

Unsecured,
non-guaranteed–

160

Sumitomo Mitsui Trust
Bank, Limited

1,250

1,250

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.
(Note 6) (Note7)

1,250

1,250

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

1,250

1,250

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

1,250

1,250

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

750

750

Mizuho Bank, Ltd.

750

750

750

750

375

Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation

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

October 6,
2016

Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note 6)
Mizuho Bank, Ltd.

1,500

June 15,2015

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

December 16,
2015

1,500

1,500
1,500

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

0.44804%

0.38472%

March 30,
2023

April 6,2023

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment(Note 4)(Note 3)

Resona Bank, Limited.
The Bank of Fukuoka, Ltd.

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)

Sumitomo Mitsui Trust
Bank, Limited
1.06316%

June 15,2023

1.06316%

June 15,2023

Lump-sum
repayment

MUFG Bank, Ltd.

(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,500

1,500

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

625

625

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

625

625

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,250

1,250

Taiyo Life Insurance
Company

500

500

0.46400%

0.35998%500

500

June 15,2023

Lump-sum
repayment

Lump-sum
repayment

September 29, Lump-sum
2023
repayment(Note 4)(Note 4)

Unsecured,
non-guaranteed

January 12,
2016

March 31,2017

December 16,
2015

June 13,2016

Mizuho Bank, Ltd.

June 15,
2023

2,500

March 31,2017

(Note 4)

Unsecured,
non-guaranteed

1.06316%

2,500

Mitsui Sumitomo Insurance
Company, Limited

Lump-sum
repayment

1,500

1,250

MUFG Bank, Ltd.

0.44835%

June 15,
2022

1,500

1,250
June 13,
2017

Remarks

1,400

Development Bank ofJapan Inc.

March 30,
2018

Use offunds

MUFG Bank, Ltd. (Note 6)160

MUFG Bank, Ltd.

Repayment
methodUnsecured,
non-guaranteed–

MUFG Bank, Ltd. (Note 6)

Maturity
date(Note 4)

1,560

September 30,
2015

Averageinterest rate
(Note 1)January 12,
2024

1,560

Mizuho Bank, Ltd.

Endingbalance

0.78362%–

Sumitomo Mitsui Banking
Corporation

Lender

Beginningbalance

1,400–
June 13,2018㻌

Drawdown
date

1,400

1,560

MUFG Bank, Ltd.

(Unit: Millions of yen)
Category

Sumitomo Mitsui Trust
Bank, Limited–

Mizuho Bank, Ltd.

Longtermloanspayable(Note 2)Beginningbalance

June 13,2016

Mizuho Bank, Ltd.

1,500

1,500

Sumitomo Mitsui Trust
Bank, Limited

1,200

1,200

MUFG Bank, Ltd.

2,400

2,400

1,200

1,200

600

600

Development Bank ofJapan Inc.

600

600

Sumitomo Mitsui Trust
Bank, Limited

1,800

1,800

3,600

3,600

1,800

1,800

900

900

900

900

Sumitomo Mitsui Banking
Corporation

September 21,
2016

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

March 16,2017

0.36900%(Note 5)0.54094%0.70169%

March 21,2025

Lump-sum
repayment

Lump-sum
repayment

Lump-sum
repayment

24
50

51

(Unit: Millions of yen)
Category㻌LenderDrawdown
dateEndingbalanceMizuho Trust & Banking
Co.,LTD.

440

440

Resona Bank, Limited.

440

440

The Bank of Fukuoka, Ltd.

440

440

440

440

The Norinchukin Bank

440

440

THE NISHI-NIPPONCITY BANK, LTD.

500

500

The Bank of Kyoto,Ltd.

300

300

Sumitomo Mitsui Trust
Bank, Limited

500

500

500

500

500

500

250

250

Development Bank ofJapan Inc.

250

250

Sumitomo Mitsui Trust
Bank, Limited

2,100

2,100

4,200

4,200

2,100

2,100

1,050

1,050

1,050

1,050

6,000

6,000

Shinkin Central Bank

March 16,2018

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

March 30,
2018

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

September 21,
2016

Development Bank ofJapan Inc.
Longtermloanspayable(Note 2)Beginningbalance

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

December 13,
2016

1,750

1,750

3,500

3,500

1,750

1,750

780

780

1,560

1,560

780

780

390

390

Development Bank ofJapan Inc.

390

390

Sumitomo Mitsui Trust
Bank, Limited

–

2,200

–

2,200

–

2,200

–

200

Development Bank ofJapan Inc.

–

200

Sumitomo Mitsui Trust
Bank, Limited

320

320

640

640

320

320

160

160

160

160

172,250

172,250

MUFG Bank, Ltd.

June 13,2017

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

January 9,
2018

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

June 13,
2018

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

January 5,
2018

Averageinterest rate
(Note 1)Maturity
date

Repayment
methodUse offunds

Remarks

0.46453%

September
16,
2025

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.58630%

September
16,
2025

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.61942%

March 19,2026

Lump-sum
repayment(Note 3)

Unsecured,
non-guaranteed

0.69796%

June 12,2026

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.71015%

December
14,
2026

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.70698%

January 9,
2027

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.73360%

June 13,2027

Lump-sum
repayment(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027

Lump-sum
repayment(Note 3)

Unsecured,
non-guaranteed

㻌

㻌

㻌

(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectivenessof this hedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April
16, 2018.
(Note 7) Based on the loan agreements, interests were accrued excluding the last day of the borrowing period. Thus, no interest
was incurred for the period ended November 30, 2018.

(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.

26
52

53

Investment Corporation Bonds
Name of bonds

Issuance dateCommissions Paid

Balance as of
May 31,
2018(In millionsof yen)Balance as ofNovember30, 2018(In millionsof yen)Interest
rate(%)

Maturity
date

Repayment
methodThe 1st Unsecured Investment
Corporation Bond

April 25,
2014

4,000

4,000

0.370

April 25,
2019

Lump sum(Note)The 2nd Unsecured
Investment Corporation Bond

April 21,
2015

2,000

2,000

0.297

April 21,2020

Lump sum(Note)The 3rd Unsecured
Investment Corporation Bond

April 21,
2015

2,000

2,000

0.726

April 21,2025

Lump sum(Note)The 4th Unsecured Investment
Corporation Bond

February 3,
2016

2,000

2,000

0.770

February 3,
2026

Lump sum(Note)The 5th Unsecured Investment
Corporation Bond

February 2,
2017

4,000

4,000

0.001

January 31,
2020

Lump sum(Note)The 6th Unsecured Investment
Corporation Bond

February 2,
2017

1,000

1,000

0.480

February 2,
2027

Lump sum(Note)The 7th Unsecured Investment
Corporation Bond

February 2,
2017

1,000

1,000

0.810

February 2,
2032

Lump sum(Note)The 8th Unsecured Investment
Corporation Bond

February 13,
2018

1,000

1,000

0.160

August 12,
2022

Lump sum(Note)The 9th Unsecured Investment
Corporation Bond

February 13,
2018

1.050

February 12,
2038

Lump sum(Note)

Total

1,000
18,0001,000

Use of proceeds
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable
Repayment ofoutstandingloans payable

Remarks
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed
Unsecured
andunguaranteed

18,000(Note) The Investment Corporation may repurchase and cancel bonds at any time after the date of payment unless otherwise specified by the Japan Securities Depository Center, Inc.

(3) Short-Term Investment Corporation Bonds
Not applicable(4) Subscription Rights for New Investment Units
Not applicable

Category

Total amount (A)(In thousands of yen)

Property management fee

453,607

Building management fee

713,754

Construction management fee

9,527

Breakdown of transactions with interested parties
Paid toTokyu Land SC Management
Corporation
Tokyu Community Corp.
Tokyu Land Corporation
Tokyu Community Corp.
Tokyu Community Corp.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation

Amount (B)(In thousands of yen)(B) / (A)(%)

179,77339.6

168,910
72,156
622,571
4,643

37.2
15.9
87.2
48.7

3,191

33.5

1,198

12.6

Other management operation
expenses

59,387

Tokyu Community Corp.

6,943

11.7

Other lease business expenses

292,707

Tokyu Community Corp.
Tokyu Re・design Corporation
Tokyu Architects & Engineers INC.
HANDS LAB INC.
TOKYU HANDS INC.
Tokyu Land Corporation

52,605
6,192
1,500
1,057
804
620

18.0
2.1
0.5
0.4
0.3
0.2

(Note 1) The term “Interested parties” refers to interested parties of Asset Management Companies as stipulated by Article 201, Paragraph 1 of theInvestment Trust Act, Article 123 of the Enforcement Ordinances of the Act on Investment Trust and Investment Corporation of Japan and Article
26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment Corporations, issued by The
Investment Trusts Association, Japan.
(Note 2) Other than commission paid as referred to above, construction works ordered to interested parties are as follows:
Tokyu Community Corp.

¥81,137 thousand

Tokyu Re・design Corporation¥22,690 thousand

Tokyu Land SC Management Corporation¥7,765 thousand

Tokyu Architects & Engineers INC.

¥5,700 thousand

Tokyu Land Corporation¥1,569 thousand(5) Transactions between the Asset Manager in Other Businesses of the Asset Manager
No relevant matter exists under this subject as the asset manager (TLC REIT Management Inc.) does notengage in any other business such as the first- or second-type financial instruments businesses under the
Financial Instruments and Exchange Act (or the securities business under the former Securities andExchange Act), the building lots and buildings transaction business, or the real estate joint enterprise.

6. Buying and Selling during the Period(1) Buying and Selling, etc., of Real Estate and Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets
Not applicable(2) Buying and Selling, etc. of Other Assets
Not applicable. In addition, the Investment Corporation’s assets other than the above-mentioned realestate and asset-backed securities are mostly comprised of direct bank deposits and bank deposits intrust.
(3) Survey of Prices, etc. of Specified Assets
1) Real Estate

Not applicable2) Others

Not applicable(4) Transactions between Interested Parties
Not applicable

28
54

55

7. Accounting Status

8. Other(1) Assets, Liabilities, Principal, and Profit and Loss

(1) Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company

Please refer to “II. Balance Sheets,” “III. Statements of Operations,” “IV. Statements of Changes inUnitholders’ Equity,” “V. Statements of Cash Distributions” and “VII. Notes to Financial Statements.”(2) Changes in the Calculation Method of Depreciation Expenses
Not applicable(3) Changes in the Evaluation Method of Real Estate, etc. and Infrastructure Assets, etc.
Not applicableNot applicable(2) Announcements
Here is an outline of major agreements that the Board of Directors of the Investment Corporation
approved to conclude and modify for the fiscal period under review.
Date of approval

November 30, 2018

Item

Summary

Conclusion of an underwriting
agreement for new investment
units

We entrusted the underwriters (Note) with generaladministration related to the issuance of new investment units
and the secondary offering of investment units, which wasapproved by the Board of Directors of the Investment
Corporation on the same day.

(Note)The underwriters in Japan are Nomura Securities Co.,Ltd.,Daiwa Securities Co.,Ltd.,Mizuho Securities Co.,Ltd.,Mitsubishi UFJ Morgan
Stanley Securities Co.,Ltd.,SMBC Nikko Securities Inc.,and SBI SECURITIES Co.,Ltd. The underwriters overseas are Nomura
International plc, Daiwa Capital Markets Europe Limited, Morgan Stanley & Co. International plc and Citigroup Global Markets Limited.

(3) Status of Companies Owing Real Estate Overseas
Not applicable(4) Status of Real Estate Owned by Companies Owning Real Estate Overseas
Not applicable(5) Other
For the purpose of this report, the numbers for amounts below unit and percentages are rounded to units,
unless otherwise mentioned specifically.

30
56

57

Financial Statements(Unit: Thousands of yen)

II. Balance Sheets
As of May 31, 2018

(Unit: Thousands of yen)
As of May 31, 2018

As of November 30, 2018

Liabilities

As of November 30, 2018

Current liabilities

AssetsCurrent assets

Operating accounts payable

846,139

913,616

Short-term loans payable

9,100,000

9,100,000

Cash and deposits

9,498,104

10,023,157

Current portion of investment corporation bonds

4,000,000

4,000,000

Cash and deposits in trust

3,116,967

3,067,204

Current portion of long-term loans payable

18,500,000

19,600,000

Operating accounts receivable

645,833

848,825

Accounts payable - other234,81373,949Prepaid expenses

455,470

294,817

Accrued expenses

809,070

902,125

Consumption taxes receivable

47,699

－

Other

6,514

3,066

13,770,589

14,237,072

Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust

Income taxes payable

708

976

Accrued consumption taxes－

457,386

Advances received

314,273

428,888

Deposits received

4,755

566

33,809,761

35,477,509

Total current liabilities
83,050,493

83,354,620

Accumulated depreciation(9,675,982)(10,879,394)

Investment corporation bond

14,000,000

14,000,000

Buildings in trust, net

73,374,511

72,475,226

Long-term loans payable

153,750,000

152,650,000

20,604,450

19,494,916

Non-current liabilities

689,748

696,585

Tenant leasehold and security deposits in trust

Accumulated depreciation(150,438)(168,417)

Other

Structures in trust, net

539,310528,167

Total non-current liabilities

Machinery and equipment in trust

1,364,809

1,390,538

Accumulated depreciation(300,583)(330,343)

Machinery and equipment in trust, net

1,064,225

1,060,195

Structures in trust

Total liabilities

183,401

193,307

Unitholders’ capital(82,287)(98,107)

SurplusTools, furniture and fixtures in trust, net

101,113

95,200Construction in progress in trust
Total property, plant and equipment

346,689,270

－

6,708

421,768,431

420,854,767

Other
Total intangible assets

9,130,097

9,130,097

2,575

2,118

9,132,673

9,132,216

1,078,965

1,080,595

Derivatives
Deferred tax assets
Other
Total investments and other assets
Total non-current assets

Unappropriated retained earnings(undisposed loss)
Total surplus

221,622,427

217,091,520

217,091,520

6,611,254

6,696,690

6,611,254

6,696,690

223,702,774

223,788,210

Deferred gains or losses on hedges

74,90454,245

Total valuation and translation adjustments

74,904

Total unitholders’ equity

74,90454,245

Total net assets
Total liabilities and net assets

Investments and other assets
Long-term prepaid expenses

222,164,217

Valuation and translation adjustments

Intangible assets
Leasehold rights in trust

186,144,918

Unitholders’ equity

Accumulated depreciation

346,689,270

2

188,354,456

Net assets

Tools, furniture and fixtures in trust

Land in trust

6

5

18

38,74238,322

1,192,618

1,173,181

432,093,723

431,160,166

77,58467,645*2

223,777,679
445,941,897

54,245*2

223,842,455
445,464,883

Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

58

77,58467,645445,941,897

445,464,883

1

2

59

III. Statements of Operations

Ⅳ. Statements of Changes in Unitholders’ Equity(Unit: Thousands of yen)Previous fiscal period

Current fiscal period(From December 1, 2017

(From June 1, 2018

to May 31, 2018)

to November 30, 2018)

Previous fiscal period (From December 1, 2017 to May 31, 2018)

Unitholders’ equity
SurplusOperating revenue
Lease business revenue*1

12,409,430*1

12,673,479

Other lease business revenue*1

917,584*1

1,141,921

Total operating revenue

13,327,014

13,815,400

Asset management fee*14,706,236*1

5,076,357

1,034,028

1,077,918

Asset custody fee

12,427

12,638Administrative service fees

32,131

32,248

Directors’ compensations

3,300

3,300

Other operating expenses

67,522

66,403

Total operating expenses

5,855,645

6,268,867

7,471,369

7,546,533

Operating profit

Unitholders’capitalBalance at beginningof current period

Operating expenses
Expenses related to rent business

Interest income

81

55

Reversal of distribution payable

908

830

Interest on refund－

409

Insurance income－

149

Total non-operating income

990

1,443

Interest expenses

615,512595,522

Interest expenses on investment corporation bonds

35,23537,928202,233,447

9,546

9,938

Investment unit issuance expenses

46,46854,545

Borrowing related expenses

153,550

151,997500

500

860,813

850,432

Ordinary Profit

6,611,545

6,697,544

Profit before income taxes

6,611,545

6,697,544

Income taxes - current

721

984

Income taxes - deferred

12

(12)

Total income taxes

734

971

6,610,811

6,696,573

442

117

6,611,254

6,696,690

Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

60

6,217,532

6,217,532

208,450,980

Issuance of new
investment units

14,858,072

3

Total
valuationandtranslation
adjustments

72,117

72,117

Total net
assets

208,523,097

Dividends ofsurplusProfit

14,858,072

14,858,072(6,217,090)(6,217,090)(6,217,090)(6,217,090)

6,610,811

6,610,811

6,610,811

6,610,811

Net changes of
items other than

2,787

2,787

2,787

unitholders’ equity
items during period
Balance at endof current period

14,858,072*1
217,091,520

393,721393,721

15,251,794

2,787

2,787

15,254,581

6,611,254

6,611,254

223,702,774

74,90474,904

223,777,679

Current fiscal period (From June 1, 2018 to November 30, 2018)(Unit: Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity

Amortization of investment corporation bond issuance costs

ProfitTotal surplus

Deferred
gains orlosses onhedgesduring period

Non-operating expenses

Total non-operating expenses

Unappropriatedretained earnings(undisposed loss)

Total
unitholders’equityChanges of items

Total changes of

Non-operating income

Other(Unit: Thousands of yen)
Valuation and translation
adjustments

Surplus
Unitholders’capitalBalance at beginningof current period

217,091,520

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

74,90474,904

Total net
assetsUnappropriatedretained earnings(undisposed loss)

Total surplus

Totalunitholders’equity6,611,254

6,611,254

223,702,774(6,611,137)(6,611,137)(6,611,137)(6,611,137)

6,696,573

6,696,573

6,696,573

6,696,573

223,777,679

Changes of items
during period
Dividends ofsurplusProfitNet changes of
items other than

(20,659)(20,659)(20,659)

unitholders’ equity
Total changes of
items during period
Balance at endof current period－*1217,091,520

85,43585,43585,435(20,659)(20,659)

64,776

6,696,690

6,696,690

223,788,210

54,24554,245

223,842,455

461

V. Statements of Cash Distributions

VI. Statements of Cash Flows
Fiscal periods

Previous fiscal period(From December1, 2017
to May 31, 2018)

Current fiscal period(From June 1, 2018
to November 30, 2018)

AmountAmountI

Unappropriated retained
earnings (Undisposed loss)¥6,611,254,555¥6,696,690,398

II

Distributions¥6,611,137,248¥6,696,379,136¥[9,462]¥[9,584]¥117,307¥311,262[Cash distribution per unit]
III Earnings carried forward

Calculation method for
distributions

62(Unit: Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Amortization of investment corporation bond issuance costs
Interest income and interest on securities
Interest expenses
Investment unit issuance expenses
Borrowing related expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Other, net
Net cash provided by (used in) investing activities
Cash flows from 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
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Based on the distribution policy
Based on the distribution policy
set forth in Article 35, Paragraph set forth in Article 35, Paragraph
1 of the Articles of Incorporation 1 of the Articles of Incorporationof the Investment Corporation,of the Investment Corporation,
distributions shall be limited to
distributions shall be limited tothe amount of net profit in excess the amount of net profit in excess
of an amount equivalent to ninety of an amount equivalent to ninety
hundredths (90/100) of
hundredths (90/100) of
distributable profits, as stipulated distributable profits, as stipulated
in Article 67-15, Paragraph 1 ofin Article 67-15, Paragraph 1 of
the Act on Special Measures
the Act on Special Measures
Concerning Taxation. In
Concerning Taxation. In
consideration of this policy, we
consideration of this policy, we
will pay distributions at the total will pay distributions at the total
amount of ¥6,611,137,248, which amount of ¥6,696,379,136, whichis the amount that does notis the amount that does notexceed the unappropriatedexceed the unappropriatedretained earnings and is theretained earnings and is thegreatest value among integral
greatest value among integral
multiples of 698,704, which is the multiples of 698,704, which is thetotal number of investment units total number of investment units
issued; provided, however, thatissued; provided, however, that
we will not pay the portion of
we will not pay the portion ofamount that exceeds the net profit amount that exceeds the net profit
defined in Article 35, Paragraph 2 defined in Article 35, Paragraph 2of the Articles of Incorporation of of the Articles of Incorporation of
the Investment Corporation.
the Investment Corporation.

5

Previous fiscal period

Current fiscal period(From December 1, 2017

(From June 1, 2018

to May 31, 2018)

to November 30, 2018)*1

6,611,545
1,234,776
284
9,546
(81)
650,748
46,468
153,550(159,576)(47,699)(494,431)(158,518)
22,38978,334
24,647(119,943)
11,258(715)
7,862,582
81(638,416)(984)
7,223,263

6,697,544
1,267,428
－
9,938
(55)
633,450
54,545
151,997(202,992)
47,699457,386
166,083
11,232(78,334)
9,346
114,615(12,281)(18,142)
9,309,462
55(600,021)(717)
8,708,779(25,062,465)(523,524)
1,544,178
1,354(24,040,457)(354,286)(1,879,200)
786,882(24,459)(1,471,063)

4,098,155(5,000,000)
14,940,999(13,000,000)
1,979,812
14,756,418(6,216,193)(16,310)
11,542,882(5,274,310)
17,889,382
12,615,072

4,997,750(5,000,000)
11,878,013(12,000,000)－－(6,609,955)(28,233)(6,762,426)
475,289
12,615,072
13,090,361

*1

6

63

VII. Notes to Financial Statements

6. Other importantmatters related to the
preparation offinancial statements

Notes on Assumption of Going Concern
Not applicable

Notes on Important Accounting Policies
1. Method ofdepreciation of noncurrent assets

2. Accounting methodfor deferred assets(1) Investment unit issuance expenses
The full amount is recorded as expenses at the time of expenditure.
(2) Investment corporation bond issuance costs
Amortized by the straight-line method over the period until maturity.

3. Accounting forincome and expenses

Property-related taxes
For property tax, city planning tax, depreciable asset tax for real properties held,
the amount of tax levied corresponding to the calculation period is recorded as
expenses related to rent business.
The settlement money for property tax that is paid to the transferor for
acquisition of real properties (so-called “amount equivalent to property tax”) is
not recorded as expenses related to rent business but included in the acquisition
costs for the related properties. There is no amount equivalent to property tax
included in acquisition cost for properties for the current fiscal period.

4. Method of hedge
accounting

5. Scope of cash (cashand cash equivalents)
in the statements ofcash flows

64(1) Property, plant and equipment (including trust assets)
The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 70 years
Structures
2 to 60 years
Machinery and equipment
2 to 33 years
Tools, furniture and fixtures
2 to 15 years(2) Intangible assets
Internal use software is amortized by the straight-line method over the expected
useful life (5 years).
(3) Long-term prepaid expenses
The straight-line method is used.

(1) Accounting method for trust beneficiary right with real estate, etc. as trust asset
With regard to trust beneficiary right with real estate, etc. in holding as trust
asset, all assets and liabilities as well as all revenue and expense items
associated with all trust assets are accounted for under the respective accountitems of the balance sheets and statements of operations.
Of the trust assets accounted for under the respective account items, thefollowing items with significance are separately indicated on the balance sheets.
i) Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment in trust;
tools, furniture and fixtures in trust; land in trust; construction in progressin trust; and leasehold rights in trustiii) Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for by the taxexclusion method. Consumption taxes unqualified for deduction for tax
purposes for non-current assets, etc. are included in acquisition cost for each
asset.

Changes Resulting from Application of “Partial Amendments to Accounting Standard for Tax EffectAccounting”
The Investment Corporation has applied the ”Partial Amendments to Accounting Standard for Tax EffectAccounting” (ASBJ Statement No. 28, February 16, 2018) effective from the beginning of the current fiscal period.
Accordingly, the presentation method has been changed, whereby deferred tax assets were presented under“Investment and other assets” and deferred tax liabilities were presented under “Non-current liabilities.”
Consequently deferred tax assets of ¥5 thousand that had been presented under “Current assets” in the balance
sheet of the previous fiscal period were presented as being included in deferred tax assets of ¥5 thousand under“Investments and other assets.”

Notes to Balance Sheets
1. Commitment Line Contracts
The Investment Corporation has the commitment line contracts with four of the banks (as of May 31, 2018) andthree of the banks (as of November 30, 2018), respectively.

(1) Method of hedge accounting
Deferred hedge accounting is applied. For interest rate swaps that satisfy therequirements for special treatment, special treatment is applied.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swaps transactions
Hedged items: Long-term loans payable(3) Hedging policy
Based on the management policy of financial market risks, the Investment
Corporation makes interest rate swaps for the purpose to hedge risks set forth in
the Articles of Incorporation of the Investment Corporation.
(4) Method of assessing hedge effectiveness
The Investment Corporation assesses hedge effectiveness by comparing the
cumulative total changes in the cash flows of the hedged items with those of thehedging instruments, and then verifying the ratio of the changes in bothamounts. However, hedge effectiveness is deemed to have been ensured withrespect to interest rate swaps that satisfy the requirements for special treatment.

As of November 30, 2018

As of May 31, 2018
Total amount specified in thecommitment line contracts¥20,000,000 thousand¥21,000,000 thousand

Loan balance––

Net balance¥20,000,000 thousand¥21,000,000 thousand*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
As of May 31, 2018
¥50,000 thousand

As of November 30, 2018
¥50,000 thousand

Cash and cash equivalents include cash on hand, cash in trust, demand deposits,
deposits in trust, and highly liquid short-term investments that are readily
convertible, bear little risk in price fluctuations, and mature within three months ofthe date of acquisition.

7

8

65

Notes to Statements of Operations*1. Breakdown of Income from Real Estate Leasing BusinessNotes to Statements of Changes in Unitholders’ Equity*1. Total number of authorized investment units and total number of investment units issued are as follows:(Unit: Thousands of yen)A.

Previous fiscal period

Current fiscal period(From December 1, 2017

(From June 1, 2018

to May 31, 2018)

to November 30, 2018)

Previous fiscal period

Total number of authorized investment units

Real estate leasing businessrevenues

Total number of investment units issued

Current fiscal period(From December 1, 2017

(From June 1, 2018

to May 31, 2018)

to November 30, 2018)

4,000,000 units

4,000,000 units

698,704 units

698,704 units

Lease business revenue
Rent

B.

11,196,642

11,463,285

Common service fees

851,982

810,382

Parking lot fees

267,359

285,449

Other rent revenue

93,445

12,409,430

114,361

Notes to Statements of Cash Flows*1. Reconciliation between Cash and Cash Equivalents at End of Period and the Amount on the Balance Sheets
Previous fiscal period(From December 1, 2017
to May 31, 2018)12,673,479

Other lease business revenue

917,584

1,141,921

Total real estate leasing businessrevenues

13,327,014

13,815,400

Real estate leasing business
expenses

Current fiscal period(From June 1, 2018
to November 30, 2018)

Cash and deposits¥9,498,104 thousand¥10,023,157 thousand

Cash and deposits in trust¥3,116,967 thousand¥3,067,204 thousand

Cash and cash equivalents¥12,615,072 thousand¥13,090,361 thousand

Expenses related to rent business
Management operation expenses

1,225,076

1,236,276

Utilities expenses

836,857

1,001,848

Tax and public dues

895,539988,148

8,795

8,875

235,857

281,326

Due within one year

¥12,024,634 thousand¥12,844,688 thousand

1,234,521

1,267,174

Due after one year

¥50,559,841 thousand¥51,061,025 thousand

284

－

Total

¥62,584,475 thousand¥63,905,714 thousand

Insurance
Repair and maintenanceexpenses
Depreciation
Loss on retirement of noncurrent assets
Other expenses related to rent
businessC.

66

269,3034,706,236

292,707

Notes to Lease Rental Revenues
The Investment Corporation leases properties on which rental revenues are earned. As of May 31, 2018 andNovember 30, 2018, future lease revenues under non-cancelable operating leases are summarized as follows:
As of May 31, 2018

As of November 30, 2018

5,076,357

Total real estate leasing business
expenses

4,706,236

5,076,357

Income from real estate leasing
business (A – B)

8,620,778

8,739,043

9

10

67

Carrying amounts, fair values, and the differences between the two values as of November 30, 2018, are as shown
below. Financial instruments whose fair value is considered to be extremely difficult to determine are not includedin this table (please refer to (Note 2)).

Notes on Financial Instruments
1. Matters Regarding Financial Instruments(1) Policy for Financial Instruments(Unit: Thousands of yen)

The Investment Corporation raises funds by borrowing, issuing investment corporation bonds, or issuinginvestment units for the purpose of acquiring real estate-related assets and repaying interest-bearing debt.

Carrying amount

When raising funds, the Investment Corporation aims to sustain stable financing capability for a long time at low
cost by enhancing its capital adequacy and maintaining conservative interest-bearing debt, looking for attributes
such as extended borrowing periods for interest-bearing debt, fixed interest rates, and diversified due dates toensure financial stability and avoid the risk of interest-rate hikes.
The Investment Corporation also invests temporary excess funds in deposits in general, taking safety andliquidity, etc. into account and considering the interest-rate environment and its cash management.
The Investment Corporation may carry out derivatives transactions for the purpose of hedging the interest-raterisk of borrowings and other risks, but does not engage in speculative transactions.
(2) Content and Risks of Financial Instruments and Risk Management System
As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit risks suchas the insolvency of the financial institutions in which the excess funds are deposited. However, the Investment
Corporation deposits excess funds carefully by limiting the period of deposits to the short term, taking safety andliquidity, etc. into account and considering the financial environment and its cash management.
Borrowings and investment corporation bond are received mainly for the purpose of acquiring real estate andrefinancing of existing borrowings. Tenant leasehold and security deposits are deposits provided by tenants.
Borrowings, investment corporation bond, tenant leasehold and security deposits are exposed to liquidity risks at
the time of repayments. However, these risks are managed through management of liquidity in hand by preparing
a monthly funding plan, efforts to reduce liquidity risk on loans payable and investment corporation bond by
diversifying repayment periods, etc., and other means.
Floating-rate loans payable are also exposed to the risk of fluctuations in interest-rates. However, these risks aremanaged through derivative transactions (interest rate swaps) as hedging instruments in certain floating-rateloans payable.
(3) Supplemental Remarks on the Fair Value of Financial Instruments
The fair value of financial instruments is based on market prices or reasonably calculated value if it has nomarket price. As certain assumptions are made in calculating these values, if different assumptions, etc. are used,
these values could vary.
2.

Matters Regarding Fair Values of Financial Instruments
Carrying amounts, fair values, and the differences between the two values as of May 31, 2018, are as shown below.
Financial instruments whose fair value is considered to be extremely difficult to determine are not included in thistable (please refer to (Note 2)).
(Unit: Thousands of yen)
Carrying amount

Difference

9,498,104

9,498,104－(2) Cash and deposits in trust

3,116,967

3,116,967－

Total assets

12,615,072

12,615,072－(1) Short-term loans payable

9,100,000

9,100,000－(2) Current portion of investment corporation
bonds

4,000,000

4,011,819

11,819(3) Current portion of long-term loans payable

18,500,000

18,535,570

35,570(4) Investment corporation bonds

14,000,000

14,225,517

225,517(5) Long-term loans payable

153,750,000

155,002,178

1,252,178

199,350,000

200,875,086

1,525,086

74,90474,904－

Derivative transactions

Difference(1) Cash and deposits

10,023,157

10,023,157－(2) Cash and deposits in trust

3,067,204

3,067,204－

Total assets

13,090,361

13,090,361－(1) Short-term loans payable

9,100,000

9,100,000－(2) Current portion of investment corporation
bonds

4,000,000

4,006,417

6,417(3) Current portion of long-term loans payable

19,600,000

19,663,090

63,090(4) Investment corporation bonds

14,000,000

14,199,701

199,701(5) Long-term loans payable

152,650,000

154,031,795

1,381,795

199,350,000

201,001,005

1,651,005

54,24554,245－

Total liabilities
Derivative transactions(Note 1) Measurement Methods for Fair Values of Financial Instruments
Assets(1) Cash and deposits, (2) Cash and deposits in trust
The book value is used as the fair value of these assets, given that the fair value is almost the same as the book value, as it issettled in a short time.
Liabilities(1) Short-term loans payable
The book value is used as the fair value of these liabilities, given that the fair value is almost the same as the book value, as
it is settled in a short time.
(2) Current portion of investment corporation bonds, (4) Investment corporation bonds
The fair value is determined by discounting the total of principal and interest at a rate taking into account the remaining
period and credit risk of the said investment corporation bonds.
(3) Current portion of long-term loans payable, (5) Long-term loans payable
These fair values are determined by discounting the total of principal and interest at the rate assumed when a new loan ismade corresponding to the remaining period. The book value is used as the fair value of those loans payable with floatinginterest rates, given that the fair value is almost the same as the book value, as their interest rates are reviewed on a shortterm interval to reflect market interest rates (however, for long-term loans payable with floating interest rates to which
special treatment for interest rate swaps is applied, the fair value is the value calculated by discounting the sum of principal
and interest, which are treated in combination with the said interest rate swap, at a reasonable rate estimated for a similar
new loan).
Derivative transactions(1) Cash and deposits

Total liabilities

68

Fair value

Fair value

11

Please refer to “Notes on Derivative Transactions.”(Note 2) Carrying Amounts of Financial Instruments Where Fair Value Is Considered to Be Extremely Difficult to Determine(Unit: Thousands of yen)
Category
Tenant leasehold and security deposits in trust *1

As of May 31, 2018
20,604,450

As of November 30, 201819,494,916*1 As there are no market prices for tenant leasehold and security deposits in trust from tenants for leasehold properties andthe actual period of deposit from move-in of the tenant to move-out is difficult to determine, it is extremely difficult toreasonably estimate the cash flow. Therefore, the fair value for tenant leasehold and security deposits in trust is not
subject to the disclosure of fair value.

1269

(Note 3) Expected Amounts of Repayment of Monetary Claims after the Account Closing Date (May 31, 2018)

Notes on Derivative Transactions(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Deposits

9,498,104

－

－

－

－

－

Deposits in trust

3,116,967

－

－

－

－

－

Total

12,615,072

－

－

－

－

－

Expected Amounts of Repayment of Monetary Claims after the Account Closing Date (November 30, 2018)(Unit: Thousands of yen)
Within 1 year

1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Deposits

10,023,157

－

－

－

－

－

Deposits in trust

3,067,204

－

－

－

－

－

Total

13,090,361

－

－

－

－

－

(Unit: Thousands of yen)
1–2 years

2–3 years

3–4 years

4–5 years

Over 5 years

Short-term loans payable

9,100,000

－

－

－

－

－

Investment corporation bonds

4,000,000

6,000,000－－

1,000,000

7,000,000

Long-term loans payable

18,500,000

20,400,000

12,500,000

9,100,000

19,000,000

92,750,000

31,600,000

26,400,000

12,500,000

9,100,000

20,000,000

99,750,000

Total

Derivative transaction to which hedge accounting is not applied(As of May 31, 2018)
Not applicable(As of November 30, 2018)
Not applicable2.

Derivative transaction to which hedge accounting is applied(As of May 31, 2018)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the accountclosing date by method of hedge accounting.

Hedge accounting(Note 4) Expected Amounts of Repayment of Loans Payable and Investment Corporation Bonds after the Account Closing Date
(May 31, 2018)
Within 1 year

1.

Expected Amounts of Repayment of Loans Payable and Investment Corporation Bonds after the Account Closing Date
(November 30, 2018)
2–3 years

3–4 years

4–5 years

Over 5 years

Short-term loans payable

9,100,000

－

－

－

－

－

Investment corporation bonds

4,000,000

6,000,000－

1,000,000－

7,000,000

Long-term loans payable

19,600,000

7,300,000

12,500,000

21,100,000

25,250,000

86,500,000

32,700,000

13,300,000

12,500,000

22,100,000

25,250,000

93,500,000

Total

70

1–2 years

13

Major hedged
items

Amount of contract(Unit: Thousands of yen)Calculation method
Fair value
for fair value

Portion due after
one year

Based on prices, etc.
Interest rate swaps
Long-term
14,400,000
14,400,000
74,904indicated by partner
Receive floatingloans payable
Pay fixed
financial institutions
Interest rate swaps
Special treatment
Long-term
for interest rate
5,000,000
5,000,000*–
Receive floatingloans payableswaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termloans payable, a hedged item. Thus, their fair values are included in the fair value of long-term loans payable. (Pleaserefer to “(Note 1) Liabilities (5), 2. Matters Regarding Fair Values of Financial Instruments, Notes on Financial
Instruments.”)
Deferred hedge
accounting(As of November 30, 2018)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the accountclosing date by method of hedge accounting.

Hedge accounting(Unit: Thousands of yen)
Within 1 year

Type of derivativetransactions

Type of derivativetransactions

Major hedged
items

Amount of contract(Unit: Thousands of yen)Calculation method
Fair value
for fair value

Portion due after
one year

Based on prices, etc.
Interest rate swaps
Long-term
14,400,000
12,000,000
54,245indicated by partner
Receive floatingloans payable
Pay fixed
financial institutions
Special treatment
Interest rate swaps
Long-term
for interest rate
Receive floating
5,000,000
5,000,000*–
loans payableswaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termloans payable, a hedged item. Thus, their fair values are included in the fair value of long-term loans payable. (Pleaserefer to “(Note 1) Liabilities (5), 2. Matters Regarding Fair Values of Financial Instruments, Notes on Financial
Instruments.”)
Deferred hedge
accounting

14

71

4.

Notes on Deferred Tax Accounting

1.

Previous fiscal period (From December 1, 2017 to May 31, 2018)

Components of Deferred Tax Assets and Deferred Tax Liabilities
As of May 31, 2018

Not applicable

As of November 30, 2018

Deferred tax assets

Current fiscal period (From June 1, 2018 to November 30, 2018)

Non-deductible amount for tax purposesof enterprise tax payable¥5 thousand¥18 thousand

Total deferred tax assets¥5 thousand¥18 thousand¥5 thousand¥18 thousand

Net deferred tax assets

2.

Directors and major individual unitholders

Not applicable

Notes on Investment and Rental Properties
The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions
for rental revenue. The carrying amounts on the balance sheet, changes during the fiscal period, and fair valuesof investment and rental properties are as follows.

Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax

Rate after Application of Deferred Tax Accounting(Unit: Thousands of yen)

As of May 31, 2018
Effective statutory tax rate

As of November 30, 201831.74%

31.51%(31.74)%(31.50)%

0.01%

0.00%

0.01%

0.01%

Previous fiscal period

Use(Adjustments)
Distributions paid included in deductibles
Other
Effective income tax rate after application oftax effect accounting

Urban
RetailProperties

Tokyo
OfficeProperties

Not applicable
Current fiscal period (From June 1, 2018 to November 30, 2018)
Not applicable

Balance at beginning of period

153,842,632

172,148,067

Changes during period

18,305,434(21,103,355)

Balance at end of period

172,148,067

151,044,711

Fair value at end of period

205,947,000

189,637,000

175,846,419

175,402,564

Changes during period(443,854)

20,498,333

Balance at end of period

175,402,564

195,900,898

Fair value at end of period

201,240,000

223,770,000

Balance at beginning of period

77,256,285

83,348,268

Changes during period

6,091,983(309,624)

Balance at end of period

83,348,268

83,038,644

Fair value at end of period

97,800,000

98,280,000

Balance at beginning of period

406,945,337

430,898,900

Changes during period

23,953,563(914,646)

Balance at end of period

430,898,900

429,984,254

Fair value at end of period

504,987,000

511,687,000

Balance at beginning of period

Carrying amount on the balance sheets

Affiliates, etc.

Activia
Account
Properties

Previous fiscal period (From December 1, 2017 to May 31, 2018)
Not applicable
Current fiscal period (From June 1, 2018 to November 30, 2018)

Carrying amount on the balance sheets

Not applicable
Total

Sister companies, etc.
Previous fiscal period (From December 1, 2017 to May 31, 2018)
Not applicable(Note 1) The carrying amount on the balance sheets is the acquisition cost less accumulated depreciation.
(Note 2) The main reason for the decrease in the current fiscal period is the provision of depreciation worth ¥1,267,174 thousand.
(Note 3) The fair value at end of period is the appraisal value provided by an independent real estate appraiser.
The income/loss concerning investment and rental properties is indicated under “Notes to Statements of Operations.”

Current fiscal period (From June 1, 2018 to November 30, 2018)
Not applicable72

to November 30, 2018)

Carrying amount on the balance sheets

Previous fiscal period (From December 1, 2017 to May 31, 2018)3.

(From June 1, 2018

to May 31, 2018)

Carrying amount on the balance sheets

Notes on Transactions with Related Parties
1. Parent Company and Major Corporate Unitholders

2.

Current fiscal period(From December 1, 2017

15

16

73

Segment Information
Segment Information for the fiscal periods ended May 31, 2018 and November 30, 2018 is as follows:
1.

Per Unit Information

Operating Segment Information
Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in theproperty rental business.

Previous fiscal period

Current fiscal period(From December 1, 2017 to May 31, 2018)(From June 1, 2018 to November 30, 2018)

Net assets per unit
Basic earnings per unit

2.

Enterprise-wide Disclosures(1) Information about Products and Services
Disclosure is not required as revenues from external customers for the single segment is in excess of 90% of total
revenues.

¥320,368¥9,493¥9,584(Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (previous fiscal period 696,324 units; current fiscal period 698,704 units). Diluted earnings per unit is not stated,as there is no potential investment unit.
(Note 2) The basis for calculating basic earnings per unit is as follows:
Previous fiscal period

Current fiscal period(2) Information about Geographic Areas(From December 1, 2017

(From June 1, 2018

Revenues from Overseas Customers:

to May 31, 2018)

to November 30, 2018)

Profit (Thousands of yen)Disclosure is not required as revenues from external customers attributed to Japan are in excess of 90% of total
revenues.

3.

¥320,275

6,610,811

6,696,573

Property, plant and equipment:

Amount not attributable to common
unitholders (Thousands of yen)－－Disclosure is not required as Property, plant and equipment located in Japan are in excess of 90% of total
Property, plant and equipment.

Profit attributable to common
investment units (Thousands of yen)

6,610,811

6,696,573

Average number of investment units
for the period (Units)696,324

698,704

Information about Major Customers
Previous fiscal period (From December 1, 2017 to May 31, 2018)

Significant Subsequent Events(Unit: Thousands of yen)
Name of Customer

Revenues

Related Segment

Tokyu Community Corp.

4,616,099

Property rental businessTokyu Land SC Management Corporation

4,530,224

Property rental businessTokyu Land Corporation

2,113,698

Property rental business

1) Issuance of New Investment Units
At meetings of the board of directors held on November 30, 2018 and December 12, 2018, we
resolved to issue new investment units as described below, and issued these per the terms below once
payment was completed on December 19, 2018 and January 7, 2019. As a result, unitholders’ capitalamounted to ¥248,370,846,700, and the total number of investment units issued came to 771,224 units.
(a) Issuance of new investment units through the public offering (Public placement)
Number of new investment units issued
67,320 units
Offering price¥445,410 per unit
Total offering price¥29,985,001,200
Paid-in amount¥431,320 per unit
Total paid-in amount¥29,036,462,400
Payment date
December 19, 2018

Current fiscal period (From June 1, 2018 to November 30, 2018)(Unit: Thousands of yen)
Name of Customer

Revenues

Related Segment

Tokyu Community Corp.

5,476,634

Property rental businessTokyu Land SC Management Corporation

4,429,746

Property rental businessTokyu Land Corporation

2,176,562

Property rental business(b) Issuance of new investment units through third-party allotment
Number of new investment units issued
5,200 units
Paid-in amount¥431,320 per unit
Total paid-in amount¥2,242,864,000
Payment date
January 7, 2019
Allottee
Nomura Securities Co.,Ltd
2) Borrowing of Funds
In order to cover a part of the acquisition costs for beneficiary interests of real estate in trust describedin the below section“3) Acquisition of Properties”and related costs, the Investment Corporation
borrowed funds of ¥35,000 million on January 10, 2019. For the details, please refer to the preceeding“2. Asset Management Policies and Status, (2) Asset Management Status, 2) Outlook for the Next
Fiscal Period, (6) Significant Matters After Book Closing, 2) Borrowing of funds.”

74

173) Acquisition of Properties
The Investment Corporation acquired beneficiary interests of real estate in trust to three properties for¥70,500 million on January 10, 2019, with proceeds from the issuance of new investment units throughpublic offering (public placement) and third-party allotment and from borrowings, etc. in accordancewith the basic asset management policy set forth in the Articles of Incorporation. For the details, pleaserefer to the preceeding 2. Asset Management Policies and Status, (2) Asset Management Status, 2)

18

75

VIII. Schedule of Financial Statements

Outlook for the Next Fiscal Period, (6) Significant Matters After Book Closing, 3) Acquisition of
Properties.”
Omission of Disclosure
As the need for disclosing notes on securities, retirement benefits, equity in earnings of affiliates, and asset retirement
obligations in this financial report is not material or applicable, the disclosure of these items is omitted.

Securities
1. Shares
Not applicable
2.

Securities Other Than Shares
Not applicable

Derivative Transactions(Unit: Thousands of yen)Amount of contract (Note 1)

Fair value(Note 2) (Note 3)Classification

Type of derivative transactions

Over-the-counter

Interest rate swaps
Receive floating Pay fixed

19,400,000

17,000,000

54,245

Total

19,400,000

17,000,000

54,245

Portion due
after one year

(Note 1) The amounts of contract do not represent the market risk exposure associated with the derivative instruments.
(Note 2) The interest rate swaps which qualify for hedge accounting and meet specific criteria are not measured at fair value inthe balance sheets and the interest received or paid under the interest rate swap contracts is recognized on an accrualbasis.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

Property and Equipment
The following tables show the summary of movement in property and equipment.
(Unit: Thousands of yen)
Beginningbalance

Tangible
AssetsDecrease

Accumulated
depreciation

Depreciation
for the period

Net property,
plant andequipment

Buildings in trust

83,050,493

304,126－

83,354,620

10,879,394

1,203,412

72,475,226

Structures in trust

689,748

6,836－

696,585

168,417

17,979528,167

Machinery andequipment in
trust

1,364,809

25,729－1,390,538

330,343

29,7591,060,195

Tools, furnitureand fixtures intrust

183,401

9,906－

193,307

98,107

15,81995,200Land in trust(Note1)

346,689,270－－

346,689,270－－

346,689,270

－

6,708

－

6,708

－

－

6,708

Subtotal

431,977,722

353,307－432,331,030

11,476,262

1,266,971

420,854,767

Leasehold rights
in trust

9,130,097－－

9,130,097－－

9,130,097

7,153

－

－

7,153

5,035

457

2,118

9,137,251－－

9,137,251

5,035

457

9,132,216

441,114,974

353,307－441,468,281

11,481,297

1,267,428

429,986,984

Construction inprogress in trust

Intangible
AssetsIncrease

EndingBalance

Other (Note)
Subtotal
Total(Note) “Other” is software (non-real estate asset).

76

19

20

77

Other Specified Assets
Not applicable

Loans Payable
The following tables show the details of loans payable.
(Unit: Thousands of yen)
Category

Investment Corporation Bonds

Lender(Unit: Thousands of yen)
Issue

Issue
Date

1st unsecured bonds(with pari passu conditions
April 25,
among specified
2014
investment corporation
bonds)
2nd unsecured bonds(with pari passu conditions
April 21,
among specified
2015
investment corporation
bonds)
3rd unsecured bonds(with pari passu conditions
April 21,
among specified
2015
investment corporation
bonds)
4th unsecured bonds(with pari passu conditions
February
among specified
3, 2016
investment corporation
bonds)
5th unsecured bonds(with pari passu conditions
February
among specified
2, 2017
investment corporation
bonds)
6th unsecured bonds(with pari passu conditions
February
among specified
2, 2017
investment corporation
bonds)
7th unsecured bonds(with pari passu conditions
February
among specified
2, 2017
investment corporation
bonds)
8th unsecured bonds(with pari passu conditions
February
among specified
13, 2018
investment corporation
bonds)
9th unsecured bonds(with pari passu conditions
February
among specified
13, 2018
investment corporation
bonds)
Total(Note)–

Beginningbalance

4,000,000

2,000,000

2,000,000

2,000,000

4,000,000

1,000,000

1,000,000

1,000,000

1,000,000

18,000,000

Decrease

–

–

–

–

–

–

–

–

–

Endingbalance

4,000,000

2,000,000

2,000,000

2,000,000

4,000,000

1,000,000

1,000,000

1,000,000

1,000,000– 18,000,000

Interest
Rate

Redemption
Date

Use offunds

Remarks

0.370%

April 25,
2019

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

0.297%

0.726%

0.770%

0.001%

0.480%

0.810%

0.160%

1.050%–

April 21,
2020

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

January 31,
2020

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

February 2,
2027

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

February 2,
2032

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

August 12,
2022

Partialrepaymentof thelong-term
borrowings

April 21,2025

February 3,
2026

February 12,
2038

Longtermloanspayable(Note 2)

Unsecured,
non-guaranteed

Partialrepaymentof thelong-term
borrowings

Unsecured,
non-guaranteed

–

–

–

Shortterm
loans
payableBeginningbalance

Increase

Endingbalance

Decrease

Sumitomo Mitsui Trust
Bank, Limited

1,250,000–

1,250,000–

Mizuho Bank, Ltd.

1,250,000–

1,250,000–

MUFG Bank, Ltd.

2,500,000–

2,500,000–

Sumitomo Mitsui Trust
Bank, Limited

1,025,000––

1,025,000

MUFG Bank, Ltd.

2,050,000––

2,050,000

Mizuho Bank, Ltd.

1,025,000––

1,025,000

Sumitomo Mitsui Trust
Bank, Limited–

1,670,000–

1,670,000

Mizuho Bank, Ltd.

–1,670,000–

1,670,000

MUFG Bank, Ltd.

–1,660,000–

1,660,000

Total

9,100,000

5,000,000

5,000,000

9,100,000

Mizuho Bank, Ltd.

3,000,000–

3,000,000–

Sumitomo Mitsui Trust
Bank, Limited

3,000,000–

3,000,000–

MUFG Bank, Ltd.

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks－%(Note 7)

June 1,
2018(Note 4)

Unsecured,
non-guaranteed

0.18898%

January 9,
2019(Note 4)

Unsecured,
non-guaranteed

0.18802%

June 1,
2019(Note 4)

Unsecured,
non-guaranteed

1.06309%

June 13,2018(Note 3)

Unsecured,
non-guaranteed

6,000,000–

6,000,000–

Sumitomo Mitsui Trust
Bank, Limited

500,000––

500,000

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

500,000––

500,000

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

500,000––

500,000

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

500,000––

500,000

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

250,000––

250,000

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

250,000––

250,000

0.52304%

January 9,
2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

800,000––

800,000

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

800,000––

800,000

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

800,000––

800,000

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

800,000––

800,000

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

400,000––

400,000

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

400,000––

400,000

0.91941%

April 19,2019

(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

6,000,000––

6,000,000

1.19051%

June 13,2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

1,200,000––

1,200,000

0.02875%(Note 5)1,200,000––

1,200,000

0.02875%(Note 5)June 28,2019(Note 4)The Norinchukin Bank

Unsecured,
non-guaranteed

Annual redemptions of investment corporation bonds scheduled for next five years after each balance sheet date were as
follows:(Unit: Thousands of yen)

Within 1 year
Unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

78

4,000,000

1–2 years
6,000,000

2–3 years

3–4 years－

1,000,000

4–5 years
－

21

22

79

(Unit: Thousands of yen)
Category
LenderEndingbalance

Decrease

Maturitydate

Use offunds

Remarks

Lender

Beginningbalance

Increase

Decrease

Endingbalance

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

340,000––

340,000

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

340,000––

340,000

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

340,000––

340,000

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

340,000––

340,000

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,340,000––

1,340,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

170,000––

170,000

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

670,000––

670,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

170,000––

170,000

0.54352%

July 9,2019(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

670,000––

670,000

1.07856%January 10,2021(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

1,500,000––

1,500,000

0.51000%(Note 4)500,000––

500,000

0.25000%

March 31,2021

(Note 4)

Unsecured,
non-guaranteed

1,500,000––

1,500,000

Unsecured,
non-guaranteed

Nippon Life Insurance
Company

Shinkin Central Bank

August 29,
2019

320,000––

320,000(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

0.93846%

January 10,
2020

MUFG Bank, Ltd.

640,000––

640,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

320,000––

320,000

0.41931%

December 28,
2021(Note 3)

Sumitomo Mitsui Banking
Corporation

Unsecured,
non-guaranteed

160,000––

160,000

Development Bank ofJapan Inc.

160,000––

160,000

Sumitomo Mitsui Trust
Bank, Limited

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

840,000––

840,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

420,000––

420,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

420,000––

420,000

0.73690%

January 9,2022(Note 3)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

2,000,000––

2,000,000

0.68500%

500,000––

500,000

March 31,2022

(Note 4)

Shinkin Central Bank

Unsecured,
non-guaranteed

Tokio Marine & Nichido
Fire Insurance Co., Ltd.

400,000––

400,000

0.30630%

400,000––

400,000

March 31,2022

(Note 4)

The 77 Bank, Ltd.

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,500,000––

1,500,000

0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

200,000––

200,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

100,000––

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000––

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

160,000
160,000––––

160,000
160,000

Mizuho Bank, Ltd.

160,000––

160,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

160,000––

160,000

0.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

80,000––80,0000.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

80,000––80,0000.93846%

January 10,2020(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

600,000––

600,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

600,000––

600,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

600,000––

600,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

600,000––

600,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

300,000––

300,000

0.72546%

January 10,2020(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

300,000––

300,000

January 10,2020(Note 4)

Resona Bank, Limited.

1,500,000––

1,500,000

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

The Gunma Bank, Ltd.

500,000––

500,000

The Norinchukin Bank

500,000––

500,000

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note 6)

1,060,000
1,060,000

–
–

–
–

1,060,000
1,060,000

0.72546%

0.52500%

March 31,2020

1.07980%

December 19,
2020

1.07980%

December 19,
2020

Mizuho Bank, Ltd.

1,060,000––

1,060,000

1.07980%

December 19,
2020

MUFG Bank, Ltd.

1,060,000––

1,060,000

1.07980%

December 19,
2020

1.07980%

December 19,
2020

1.07980%

December 19,
2020

Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

80

Increase(Unit: Thousands of yen)
Category

Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Trust
Bank, Limited

Longtermloanspayable(Note 2)Beginningbalance

Averageinterest rate
(Note 1)530,000
530,000––––

530,000
530,000

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed23

Longtermloanspayable(Note 2)24

81

(Unit: Thousands of yen)
Category
LenderLongtermloanspayable(Note 2)

Increase

Endingbalance

Decrease

Maturitydate

Use offunds(Unit: Thousands of yen)
Category

Remarks

LenderSumitomo Mitsui Trust
Bank, Limited–

1,560,000–

1,560,000

Mizuho Bank, Ltd.

–1,560,000–

1,560,000

MUFG Bank, Ltd.

–1,560,000–

1,560,000

Sumitomo Mitsui Banking
Corporation–

160,000–

160,000

Development Bank ofJapan Inc.

–

160,000–

160,000

Sumitomo Mitsui Trust
Bank, Limited

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.
(Note 6)

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,250,000––

1,250,000

0.61330%(Note 5)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

750,000––

750,000

Mizuho Bank, Ltd.

750,000––

750,000

MUFG Bank, Ltd.

750,000––

750,000

Sumitomo Mitsui Banking
Corporation

375,000––

Development Bank ofJapan Inc.

375,000–

Sumitomo Mitsui Trust
Bank, Limited

800,000

MUFG Bank, Ltd.

Beginningbalance

Increase

Decrease

Endingbalance

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

Sumitomo Mitsui Trust
Bank, Limited

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd. (Note 6)

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,400,000––

1,400,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

700,000––

700,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

700,000––

700,000

0.78362%January 12,2024(Note 4)

Unsecured,
non-guaranteed

Mizuho Trust & Banking
Co.,LTD.

2,000,000––

2,000,000

Resona Bank, Limited.

1,500,000––

1,500,000

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.41380%

March 29,2024

(Note 4)

Unsecured,
non-guaranteed

Shinkin Central Bank

500,000––

500,000

The Norinchukin Bank

500,000––

500,000

Sumitomo Mitsui Trust
Bank, Limited

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

375,000

MUFG Bank, Ltd. (Note 6)

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed–

375,000

Mizuho Bank, Ltd.

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed––

800,000

MUFG Bank, Ltd.

1,200,000––

1,200,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

1,600,000––

1,600,000––

600,000

0.85377%––

800,000

June 17,2024(Note 3)800,000

Sumitomo Mitsui Banking
Corporation

600,000

Mizuho Bank, Ltd.

Unsecured,
non-guaranteed

Sumitomo Mitsui Banking
Corporation

400,000––

400,000

Development Bank ofJapan Inc.

600,000––

600,000

0.85377%

June 17,2024(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

400,000––

400,000

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

MUFG Bank, Ltd.

3,000,000––

3,000,000

0.33150%(Note 5)June 17,2024(Note 4)

Unsecured,
non-guaranteed

0.36900%(Note 5)

December 13,
2024(Note 4)

Unsecured,
non-guaranteed

0.54094%

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

0.70169%

September 16,
2025(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

0.44835%

0.44804%

0.38472%

June 15,2022

March 30,
2023

April 6,2023

1.06316%

June 15,2023(Note 4)(Note 4)(Note 3)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Longtermloanspayable(Note 2)

(Note 4)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,500,000––

1,500,000(Note 4)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,500,000––

1,500,000

MUFG Bank, Ltd.

3,000,000––

3,000,000

Mizuho Bank, Ltd.

1,500,000––

1,500,000

Sumitomo Mitsui Trust
Bank, Limited

1,200,000––

1,200,000

MUFG Bank, Ltd. (Note 6)

1,500,000––

1,500,000

1.06316%

June 15,2023

Mizuho Bank, Ltd.

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

1,500,000––

1,500,000

1.06316%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

625,000––

625,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

2,400,000––

2,400,000

0.75387%

June 15,2023(Note 3)

Unsecured,
non-guaranteed

Mizuho Bank, Ltd.

1,200,000––

1,200,000

Sumitomo Mitsui Banking
Corporation

600,000––

600,000

June 15,2023(Note 4)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

600,000––

600,000

Sumitomo Mitsui Trust
Bank, Limited

1,800,000––

1,800,000

MUFG Bank, Ltd.

3,600,000––

3,600,000

Mizuho Bank, Ltd.

1,800,000––

1,800,000

Sumitomo Mitsui Banking
Corporation

900,000––

900,000

Development Bank ofJapan Inc.

900,000––

900,000

Sumitomo Mitsui Banking
Corporation
Development Bank ofJapan Inc.

625,000––

625,000

Sumitomo Mitsui Trust
Bank, Limited

1,250,000––

1,250,000

MUFG Bank, Ltd.

2,500,000––

2,500,000

Mizuho Bank, Ltd.

1,250,000––

1,250,000

Taiyo Life Insurance
Company

500,000––

500,000

Mitsui Sumitomo Insurance
Company, Limited

82

Beginningbalance

Averageinterest rate
(Note 1)0.46400%

0.35998%
500,000––

500,000

September 29,
2023(Note 4)

Unsecured,
non-guaranteed

25

26

83

(Unit: Thousands of yen)
Category
LenderLongtermloanspayable(Note 2)Beginningbalance

Increase

Endingbalance

Decrease

Mizuho Trust & Banking
Co.,LTD.

440,000––

440,000

Resona Bank, Limited.

440,000––

440,000

The Bank of Fukuoka, Ltd.

440,000––

440,000

Shinkin Central Bank

440,000––

440,000

The Norinchukin Bank

440,000––

440,000

THE NISHI-NIPPONCITY BANK, LTD.

500,000––

500,000

The Bank of Kyoto,Ltd.

300,000––

300,000

Sumitomo Mitsui Trust
Bank, Limited

500,000––

500,000

Mizuho Bank, Ltd.

500,000––

500,000

MUFG Bank, Ltd.

500,000––

500,000

Sumitomo Mitsui Banking
Corporation

250,000––

250,000

Development Bank ofJapan Inc.

250,000––

250,000

Sumitomo Mitsui Trust
Bank, Limited

2,100,000––

2,100,000

MUFG Bank, Ltd.

4,200,000––

4,200,000

Mizuho Bank, Ltd.

2,100,000––

2,100,000

Sumitomo Mitsui Banking
Corporation

1,050,000––

1,050,000

Development Bank ofJapan Inc.

1,050,000––

1,050,000

Sumitomo Mitsui Banking
Corporation

6,000,000––

6,000,000

Sumitomo Mitsui Trust
Bank, Limited

1,750,000––

1,750,000

MUFG Bank, Ltd.

3,500,000––

3,500,000

Mizuho Bank, Ltd.

1,750,000––

1,750,000

780,000––

780,000

MUFG Bank, Ltd.

1,560,000––

1,560,000

Mizuho Bank, Ltd.

780,000––

780,000

Sumitomo Mitsui Banking
Corporation

390,000––

390,000

Development Bank ofJapan Inc.

390,000––

390,000

Sumitomo Mitsui Trust
Bank, Limited–

2,200,000–

2,200,000

Mizuho Bank, Ltd.

–

2,200,000–

2,200,000

MUFG Bank, Ltd.

–

2,200,000–

2,200,000

Sumitomo Mitsui Banking
Corporation–

200,000–

200,000

Development Bank ofJapan Inc.

–

200,000–

200,000

Sumitomo Mitsui Trust
Bank, Limited

320,000––

320,000

MUFG Bank, Ltd.

640,000––

640,000

Mizuho Bank, Ltd.

320,000––

320,000

Sumitomo Mitsui Banking
Corporation

160,000––

160,000

Development Bank ofJapan Inc.

160,000––

160,000

172,250,000

12,000,000

12,000,000

172,250,000

Sumitomo Mitsui Trust
Bank, Limited

Total

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.46453%

September
16,
2025(Note 4)

Unsecured,
non-guaranteed(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectivenessof this hedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April
16, 2018.
(Note 7) Based on the loan agreements, interests were accrued excluding the last day of the borrowing period. Thus, no interest
was incurred for the period ended November 30, 2018.
(Note 8) Annual repayments of long-term loans payable scheduled for next five years after each balance sheet date were as follows:(Unit: Thousands of yen)
Within 1 year
Long-term loans payable

0.58630%

September
16,
2025(Note 4)

Unsecured,
non-guaranteed

0.61942%

March 19,2026

(Note 3)

Unsecured,
non-guaranteed

0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

0.71015%

December
14,
2026(Note 4)

Unsecured,
non-guaranteed

0.70698%

January 9,2027(Note 4)

Unsecured,
non-guaranteed

0.73360%

June 13,2027(Note 4)

Unsecured,
non-guaranteed

0.74869%

July 5,2027(Note 3)

Unsecured,
non-guaranteed

19,600,000

1–2 years
7,300,000

2–3 years
12,500,000

3–4 years
21,100,000

4–5 years
25,250,000(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.

84

27

28

85

Independent Auditor’s Report

Overview of the Asset Manager
Overview of the Asset Manager
Corporate
name

TLC REIT Management Inc.

Established

October 6, 2009

Capital¥200 million

Shareholder

Tokyu Land Corporation 100%

Registration &LicenseFinancial Instruments Business Firm, granted by the Director of the Kanto
Regional Finance Bureau (Financial Instruments) Registration No. 2370
Discretionary Transaction Agent granted by the Minister of Land,
Infrastructure, Transport and Tourism, Registration No. 65
Building Lots and Building Transactions Business License, granted by theGovernor of Tokyo (2) No. 91139

President andCEO

Hiroyuki Tohmata

DNA of Tokyu Land Corporation
The Tokyu Fudosan Holdings Group generally carries on the frontier spirit and development capabilities of Tokyu Land
Corporation in undertaking development mainly in the Tokyo metropolitan area and major cities nationwide. The Group has
built up a strong track record as a pioneer in creating businesses ahead of the times in anticipation of customer demands, forexample by opening Tokyu Plaza as the forefront of a building complex near the station and Tokyu Hands as a specialty store
for daily-life materials.
API’s staff, with abundant experience in many fields of the Tokyu Fudosan Holdings Group, engage in J-REIT operations
to meet the needs of unitholders.

Proactive Behavior
As an asset manager, API’s staff is required to work proactively (take initiative, foresee and make improvements). API aims
at stable asset management over the medium to long term, through not only management and good care of individual
properties, but also by closely observing and responding early to the changing market environment (real estate transaction,leasing and finance markets).

Organizational Chart
Shareholders’ Meeting
Corporate Auditor
Board of Directors
Compliance Committee

Investment Committee
President & CEO

Acquisition Priority
Review Meeting
Internal Audit Dept.

Compliance Dept.

Activia
Management Div.

Corporate Planning& Administration
Dept.

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Finance &Accounting
Dept.

Asset
Investment
Dept.

Environmental
Engineering
Dept.

Strategy
Dept.

Asset
Management
Dept.

Comforia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

Broadia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

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Information on Unitholders
Trends in Unit Prices

TSE REIT index (left axis)

API (left axis)(¥)

Nov. 30, 2018
API: ¥435,500
TSE REIT index: 1,810 pt
Market Cap.: ¥335.9 bn

600,000
550,000

Unitholder Memo

Market Cap. (right axis)

500,000(¥ millions)

500,000

Account closing dates

May 31 and November 30

450,000

Unitholders’ meeting

To be held at least once every two years

400,000

Record date forunitholders’ meeting

A record date based on Article 15, Section 1 of the Articles of Incorporation

350,000

450,000

300,000

400,000

250,000
200,000

350,000

Dates for determining cash
distribution payments

May 31 and November 30

Administrator ofunitholders’ registry

Sumitomo Mitsui Trust Bank, Limited
4-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

150,000

300,000

June 13, 2012
API: ¥221,750
TSE REIT index: 906 pt
Market Cap.: ¥90.6 bn

250,000
200,000

100,000
50,000

Place of business of administratorof unitholders’ registry0

Jun. 13, End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of2012 Nov. 2012 May 2013 Nov. 2013 May 2014 Nov. 2014 May 2015 Nov. 2015 May 2016 Nov. 2016 May 2017 Nov. 2017 May 2018 Nov. 2018

Stock exchange(Note 1) Performance of TSE REIT index is indexed to API unit price as of June 13, 2012 being 100.
(Note 2) As API implemented a 2-for-1 investment unit split effected as of October 1, 2015, the closing prices on and after the listing date are indicated as half as adjusted for the unit split.

Newspaper to provide public noticeDistribution of Unitholders

Other domestic
companies

149 (2.2%)

Foreignunitholders

Securities
companies

Individuals,
otherSecurities
companies

16 (0.2%)

Foreignunitholders

26,101 (3.7%)

6,304 (91.2%) 68,936 (9.9%)

Please contact the securities company.

Japan Post Bank (bank agency). If the period for receipt has already expired, please specify how you wish
to receive dividends on the back of the dividend receipt, and then mail it to the Stock Transfer Agency
Financial
institutions

Other domestic
companies

account for receipt of dividends:

You can receive dividends by presenting a dividend receipt to the nearest head office/branch/office of

698,704
Individuals,
other

189 (2.7%)

Nihon Keizai Shimbun■■ Dividends

Number ofinvestment units
by holder type

172,330(24.7%)

6,910
Financial
institutions

J-REIT section of the Tokyo Stock Exchange (securities code: 3279)■■ Change of registered address, name or seal, etc., or designation or change of

252 (3.6%) 14,006 (2.0%)
Number ofunitholders
by holder type

Stock Transfer Agency Business Planning Department of
Sumitomo Mitsui Trust Bank, Limited
Mailing address: 8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan
Tel: 0120-782-031 (toll-free, available within Japan only)
URL: https://www.smtb.jp/personal/agency/ (Japanese page)417,331 (59.7%)

Department, Sumitomo Mitsui Trust Bank, or receive dividends directly at the service counter of the head
office/branch of the bank.
In addition, with respect to future dividends, if you wish to receive dividends through transfer to a bank

(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

account, etc., please take the necessary procedures at your securities company.

Annual Schedule
Closing monthfor the fiscal
period endingin MayAnnouncementof financial
results

Telephone inquiries
Commencementof payment ofdividends

Release of theSemi-Annual
ReportClosing monthfor the fiscal
period endingin November

Announcementof financial
results

Commencement of
payment of dividends

Release of theSemi-Annual
ReportStock Transfer Agency Business Planning Department of Sumitomo Mitsui Trust Bank, LimitedTel:0120-782-031 (toll-free, available within Japan only)■■ Dividend statement
Pursuant to the provisions of the Act on Special Measures concerning Taxation, with regard to dividends

May

July

AugustSeptember

NovemberJanuary

FebruaryMarchpaid by API, API will send to each unitholder a payment notification describing the amount of the dividend,
withholding tax and so forth. However, the dividend statement sent along with the dividend payment also

API Website

functions as the payment notification.

We provide all relevant information on our website in a timely and reliable manner.

(If you select the method of allocation in proportion to the number of shares held, please ask your securities

URL

https://www.activia-reit.co.jp/en/
88

Please note that each unitholder may use the payment notification as an attachment for a tax return.

Accessible from smartphone as well.

company for further information.)

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Information on Unitholders
Withholding tax rate on dividends of listed investment corporations
Commencement
date of thedividend payment

Dividend tax rate oflisted investment
corporations

From January 1, 2014 through December 31, 2037

From January 1, 2038

20.315%20%
Income tax
15%

Income tax 15% + Reconstruction special income tax 0.315% (Note)
Breakdown

Breakdown

Residence tax 5%

Residence tax
5%(Note) 15% × reconstruction special income tax rate 2.1% = 0.315%.

During the period from January 1, 2013 through December 31, 2037 (25 years), the Act on Special Measures for
Securing Financial Resources Necessary to Implement Measures for Reconstruction following the Great East
Japan Earthquake (2011 Law No. 117) is in force. As a result, there is a reconstruction special income taxof 2.1%.
This reconstruction special income tax will be imposed together when income tax is withheld at the source on
dividends paid by listed investment corporations.
Additional issues to be aware of are as follows.

■■ Matters to be noted regarding the withholding tax on dividends of listed

investment corporations• In the case of an individual unitholder who holds 3% or more of the outstanding investment, the income tax
rate is 20.42% (income tax 20% + reconstruction special income tax 0.42% (Note)).
However, with regard to residence tax, a separate procedure is required.
• If a corporate unitholder receives dividends, no residence tax will be imposed.
(Note) 20% × reconstruction special income tax rate 2.1% = 0.42%.

■■ Matters to be noted regarding the Reconstruction Special Income Tax• In cases where income tax is non-taxable or exempt, or where the income tax rate is less than the rate
provided by domestic laws due to the application of a tax treaty, the reconstruction special income tax will
not be imposed.
• With regard to taxes in the case where you have selected the method of allocation in proportion to thenumber of shares held, please ask your securities company.
For more details, please ask the tax office with jurisdiction over the place of tax payment.

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