Activia Properties Inc.
Financial Results Presentation
for the 14th Fiscal Period (November 2018)
January 2019（Security Code: 3279/API）

1. Financial Highlights
2. Internal Growth, External Growth,
Financial Strategies and ESG
3. Financial Forecasts

4. Others
5. Acquisition Highlights
6. Appendix

1. Financial Highlights

Highlights of the Period Ended November 2018 (the 14th Period) and Onwards

Internal Growth

External Growth

Financial Strategies

Progressively achieved
through tenant replacement
w/rent rise and upward rent
revision in each category
Tokyo Office

Conducted the 6th PO toenhance API’s portfolio quality

Further loweredaverage interest rate

■Upward rent revision in 3,262 tsubo in the
14th Period and uptrend continues in the
15th & 16th Periods

Retail properties■Change in rent of ¥44mn/period from the14th Period onwards allowing stable earning
secured in long term

Activia Account (office)■Rent increase achieved in 648 tsubo in the
14th Period and already achieved in over
1,000 tsubo in the 15th Period

EDGE
Q plaza
Tokyu Plaza
UR-17 HARAJUKU AA-13 Shinsaiba
Ginza (Land)shi
Acquisition price:
Acquisition price:

UR-16¥37.5bn(30% co-ownershipinterest)¥13.2bn(60% co-ownershipinterest)

Acquisition price:¥19.8bn¥502.0bn■AUM■Acquisition
Capacity

approx. ¥44.5bn（as of Jan. 17, 2019）

Replaced assets at the PO(disposed A-FLAG AKASAKA)
UR-6
A-FLAGAKASAKA

UR-17
Replacement

Q plaza
HARAJUKU■Gain on sale will berecorded over thetwo periods
ending May 2019 andending Nov. 2019

■Refinanced ¥23.6bn and newly borrowed¥35bn from the 14th Period onwards
Ave. interest rate:
0.66％ →％

0.58
Ave. period remaining: 4.6 years → 4.4 years
to maturity(as of May 31, 2018) (as of Jan. 17, 2019)

Began preparation forissuance of Green Bonds■Amendment to the shelf registration statement
to submit simultaneously with the financial
statement disclosure for issuance of API’s firstgreen bonds
Offer ESG investment
１opportunities
Strengthen
２Promote
３ financial formation
ESG initiatives

Continual growth in unitholders’ value
Achieved increase in DPU
DPU: ¥9,584 (period ended Nov. 2018)(vs. May 2018: +¥122 / +1.3% )(vs. forecast:+¥84 / +0.9% )2Achieved continual growthin NAV per unit
NAV per unit: ¥437,302 (end of Nov. 2018)(vs. end of May 2018: +¥10,991 / +2.6%)1. Financial Highlights

Financial Results for the Period Ended Nov. 2018 (the 14th Period): Statement of Income3Both revenue and profit increased vs. the 13th Period results and the 14th former forecasts due to (i) full operation of
the 3 properties acquired in connection with previous PO and (ii) consistent internal growth
DPU is ¥9,584, up ¥122 from the previous period and up ¥84 from the former forecast

1. 14th Period actual vs. 13th Period results/
former 14th Period forecasts（2018.7.13）(in millions of yen)
13th
PeriodResults

Operatingrevenue
Operatingexpenses
Taxes &
Public dues
Operating profit
Ordinary profit

14th Period
14th Period(forecasts)(period ended Nov. 2018)
vs. 13th Period Forecasts Change(vs. former
Results2018.7.13(%)
Difference

forecasts)

13,327

13,815

+488

+3.7%

13,717

+97

5,855

6,268

+413

+7.1%

6,230

+38

895

988

+92

+10.3%

987

+0

7,471

7,546

+75

+1.0%

7,487

+59

6,611

6,697

+85

+1.3%

6,639

+58

Profit

6,610

6,696

+85

+1.3%

6,638

+58

DPU

¥9,462¥9,584

+¥122

+1.3%

¥9,500+¥84

3. Variance between the 14th and the 13th Period results(DPU)

2. Variance analysis (vs. 13th results)
vs. 13th
results
Operatingrevenue

Expensesrelated to rent
business
NOI after
depreciation
Generaladministrative
expenses
OperatingprofitIncrease+370

Increase
Decrease

Full-period operation +225, sales-linked rent at hotels +203,
Utilities fee income +144, Other revenue +10,
Cancellation penalty +7, Facility usage fee +3
Existing rent -102, Parking lot fee -4, Restauration works fee-1
Full-period operation +71, Utilities expense +120,
Taxes & Public dues +92, Repair & Maintenance expenses+53, Depreciation +26, Other expenses related to rent
business +16
Advertisement fee -5, Administrative service fee -3,
Payment commission -2

+118
+43

Increase

Asset management fee +43, Miscellaneous expenses +1

Decrease

Taxes & Public dues -2+75

4. Variance analysis (vs. 14th former forecasts)(in millions of yen)vs. 14th
formerforecasts+¥122¥9,462

Details

Decreasevs. 13th Period¥9,584+488(in millions of yen)

Operatingrevenue+97

Details

Increase

Rent of existing properties +46, Facilities usage fee +22,
Other fees +19, Utilities fee +4, Restoration work fee +2,
Cancellation penalty +2

Decrease～

Operatingrevenue+¥699

Results of period
ended May 2018
(13th Period)

Rentbusiness
expenses-¥530

Generaladministrati
ve expense-¥62

Interest
expensesand others+¥26

Expensesrelated to
PO

-¥12

～

Results of period
ended Nov 2018
(14th Period)

Expensesrelated to rent
business+40

NOI after
depreciation+57

Generaladministrative
expenses
Operatingprofit-1+59

Decrease

Repair & Maintenance +24, Utilities expenses +12,
Administrative service fees +9, Depreciation +4
Other rent business expenses -6, Advertisement fee -3

Increase

Asset management fee +8

Decrease

Miscellaneous expenses -7, Payment commission -1

Increase

1. Financial Highlights

Financial Results for the Period Ended Nov. 2018 (the 14th Period): Balance Sheet

4Balance at the end of the 14th Period marks no significant fluctuation compared to the previous period as no property
acquisition recorded, though AUM decreased by ¥0.5bn
LTV stood at 44.8％, slightly increased from the previous period, and unrealized gain grew to ¥81.7bn, up ¥7.6bn fromthe previous period due to lowered Cap Rate and improved NOI by internal growth
1. Comparison of the 13th and 14th Periods
13th Period

14th Period(2018/5)(2018/11)(in millions of yen)

ChangeAssetsCurrent assets
Cash and deposits
Other

13,770

14,237+466

12,615

13,090+475

２. Changes in LTV
End of the
13th Period(2018/5)

End of the
14th Period(2018/11)

44.7%

44.8%

1,155

1,146

-8

432,171431,227-943

421,768

420,854

-913

9,132

9,132

+0

1,270

1,240

-29

Total assets

445,941

445,464-477

Short-term borrowings

9,100

9,100

+0

Long-term loans payable to be
repaid within a year

18,50019,600+1,10014,00014,000+0

153,750

152,650-1,10026,814

26,272-541

222,164

221,622-541

End of the
13th Period

End of the
14th Period

223,777

223,842+64

74,08881,702217,091

217,091

+0

6,686

6,750

+64

Total net assets

223,777

223,842+64

Total liabilities and net assets

445,941

445,464-477

Non-current assets
Total property, plant andequipement
Total intangible assets
Other

Change+0.1ptDepreciation -1,267,
Capital expenditure +352, Other +2

Liabilities

Investment corporation bonds
Long-term loans payable to be
repaid within a year
Tenant leasehold and security
deposits
Total liabilities
Net assets
Unitholder's equity
Unitholders' capital
SurplusTenant leasehold and security deposits-1,110, unpaid consumption tax +457,
Other +112

３. Changes in unrealized gain on portfolio(in millions of yen)

Change+7,614

Cap Rate lowered in 10 properties
NOI improved in 13 properties (out of 42)

2. Internal Growth, External Growth, Financial Strategies and ESG

Internal Growth ～Management of Office Properties 1～5

1. Upward rent revisions (Tokyo Office properties)

Continuous uptrend
in the 15th Period
and onwards

Rent increase achieved for 13 consecutive periods from the 4th Period ended Nov. 2013
to the 16th Period ending Nov. 2019(tsubo）

10,0007,000坪
6,000坪
5,000
5,000坪Area (Up)
増額面積

Total leasable area
(Tokyo Office)34,709 tsubo

+5.6%

+7.3%

+4.8%

4,000坪
4,000
3,000坪
3,000

4,879
tsubo

2,000坪
2,000
1,000坪
1,000
0坪
0

+6.8%
537
tsubo

1,000坪-1,0002013.11(4th(第4期)
Period)

+3.6%

+7.5%
547
tsubo

69
tsubo

626
tsubo

2014.52014.11(5th(第5期)
Period)(6th(第6期)
Period)+10.7%+12.9%

+8.6%

1,987
tsubo

1,355
tsubo

974
tsubo

～
10,345tsubo

Area subject to

改定対象面積lease renewal

Area (Down)
減額面積

Rent increase in 2nd & 3rd revisions(from 14th Period onwards）+7.1%

Increase in 2nd & 3rd
revisions (area)

+5.2%
5,343
tsubo

5,336
tsubo

Maintained high increase even from2nd revision onwards

2回転目増額2nd cycle

3,262

2,299
tsubo

2,614
tsubo

tsubo

+8.5%
Averageincreasein 1st revision
+7.2%

535
tsubo

47
tsubo

159
tsubo

17
tsubo
(as of Dec.31, 2018)2015.52015.11(8th(第8期)
Period)(7th(第7期)
Period)2016.52016.112017.52017.112018.52018.11 2019.5
2018.112019.11

Total rent-increased area
6,411 tsubo

(14th
(12th
(9th
(10th
(11th
(12th
(13th
(15th
(16th
(第9期)
period)Period) (第10期)
Period) (第11期)
Period) (第12期)
Period) (第13期)
Period) (第14期)
Period) (第15期)
Period) (第16期)
Period)2. Trends in average rent and rent gap

3回転目増額3rd cycle

Ave. rent
increasein 2nd & 3rd
rent revisions

4,977
tsubo

4,728
tsubo

1st cycle
1回転目増額25％*Figure above bar graph represents rent increase in each period

Increased rent with securing capacity for further internal growth backed by widening rent gap
Tokyo Office properties (overall)Tokyo Office properties (in greater Shibuya area)(per month per tsubo)
28,000円
TO平均賃料Tokyo Office properties (overall)¥28,000(per month per tsubo)
Tokyo Office properties (Greater Shibuya)
28,000円
広域渋谷圏平均賃料¥28,000

マーケット平均賃料
Market rent

Market rent
マーケット平均賃料

26,000円¥26,000¥26,000
26,000円¥24,000
24,000円¥24,000
24,000円-5%¥22,000
22,000円¥20,000
20,000円

-4%

-6%

-6%

-6%

-8%

-9%

-3%

+5%

*Excludes TAMACHI SQUARE (Land)2014.52014.112015.52015.112016.52016.11

(4th
(第4期)

(5th
(第5期)

(6th
(第6期)

(7th
(第7期)

(8th
(第8期)

(9th
(第9期)

(10th
(11th
(12th
(13th
(14th
(第10期)(第11期)(第12期)(第13期)(第14期)

Period)Period)Period)Period)Period)Period)2017.5Period)2017.112018.5 2018.11
2018.112013.11Period)¥22,000
22,000円¥20,000
20,000円-1%¥18,000
18,000円-6%

Period)Period)Period)¥18,000
18,000円+3%-5% -15%-15% -18%

-18%

-16%

-15%

-16%

-16% -19%

2018.112013.11 2014.5 2014.11 2015.5 2015.11 2016.5 2016.11 2017.5 2017.11 2018.5 2018.11
(4th
(第4期)
Period)(5th(第5期)
Period)(6th(第6期)
Period)(7th(第7期)
Period)(8th(第8期)
Period)(9th(第9期)
Period)(10th (第11期)(11th (第12期)(12th (第13期)(13th (第14期)(14th(第10期)
Period)Period)Period)Period)Period)2. Internal Growth, External Growth, Financial Strategies and ESG

Internal Growth ～Management of Office Properties 2～
1. Offices of Activia Account properties

2. Rent increase achieved at tenant replacement
Large-scaled internal growth achieved at tenant replacement in the
14th Period and onwards

Lineup with high competitiveness and upside potential
AA-13

Umeda
AA-10 Gate Tower

EDGE
Shinsaibashi

Rent increase
世界有数の賃料水準

and convenient location
facing Midosuji street
 Standard floor of 374 tsubo,
scarce size in Shinsaibashi area

 Standard floor area over 300 tsubo

 Located in Nakanoshima areawith concentration of offices

Market rent

Average rent

¥ 13.4¥ 15.7thousand /tsubo

 Located in area where further

thousand /
tsubo

-17％

Trend in rent revision

2,500坪Area (Up)
増額面積

Area (Down)
減額面積

Total leasable area
(Activia Account office)20,840 tsubo

1,500坪

2,113
tsubo

4,115坪
4,432

4,906
tsubo

～～
tsubo
4,115
tsubo

2,991
tsubo

+7.3%

+11.9%
255 tsubo

648
tsubo

360
tsubo

1,009
tsubo
1,009坪

97 tsubo

500坪
2016.11(10th(第10期)
Period)2017.5(11th(第11期)
Period)2017.11(12th(第12期)
Period)0.4 months

3. Example of strategic replacement
upon tenant departure
Rent increase achieved without down-time by capturing needs
for floor increase and timely leasing
Leasing example in TLC Ebisu Building

4th floor
145 tsubo

Company A(departed)
till Dec. 2018
Company B(scheduled todepart)till Mar. 20198th floor
243 tsubo

Rent
increase+17.1％

4th floor
145 tsubo

Company B(moved to larger
area-floor)
from Jan. 2019
CompanyＣ(scheduled)from Mar. 2019

Forward-thinking operation going beyond
location and quality
Generate opportunities to realize internal growththrough rent revision, tenant change with rent raise, etc.

1,277
tsubo

265 tsubo

Ave.世界有数の賃料水準
down-time period*Includes blocs scheduled to be leased

8th floor
243 tsubo

+8.1%
1,923
tsubo

1,000坪
1,000坪
1,000

0
0坪
0坪

+4.3%

+12.3%

2,000坪
2,000
2,000坪

500坪

Area subject to
改定対象面積lease renewal

1.8 months

Subject to replacement
11 blocs in 1,380 tsubo

Rent gap

development is expectedAve.
free-rent period
世界有数の賃料水準

100%

A-PLACE
Kanayama Only 1-min walk from station

 Only 1-min walk from station(tsubo)4,000坪
5,000
4,000坪3,000坪Increaseapprox.6,700 tsubo

AA-6

 Only 1-min walk from station+16%

 Large-sized office building with a GFA

Osaka Nakanoshima
Building

A-PLACE
AA-11
Bashamichi

Ave.
rent increase
世界有数の賃料水準

 Located in Umeda, center of Osaka RareAA-7

62018.5(13th(第13期)
Period)2018.11(14th(第14期)
Period)2019.5(15th(第15期)
Period)2019.11(16th(第16期)
Period)*Figure above bar graph represents rent increase in each period

Understandtenant needs

Value-enhancing
construction work

Relation with PM

Proactively increasing
rents

Satisfaction survey toidentify and resolve
issues

Maintain & improve
property value

Boost motivation of PM
through an awarding
programPursue 2 or 3
consecutive rent
revisions for the sametenantAccelerate proactive operations by leveraging the expertise of theSponsor Group2. Internal Growth, External Growth, Financial Strategies and ESG

Internal Growth ～Management of Retail Properties 1~
1. Balance stability with profitability of retail properties
Rent increase

Occupancy rate

Fixed rent ratio(as of Nov. 30, 2018)(13th & 14th Periods results)(stabilized per period
from the 14th Period onwards)

99.9%

96%

+¥44mn7

3. Management status of retail properties
Sales transition (Year-on-Year)Sales remains stable in Tokyu Plaza Omotesando Harajuku / Large expansion
in DECKS Tokyo Beach

Stability of term (Diversification of lease termination)(tsubo)(as of Nov. 30, 2018)

20,00015,00011% of total lease

Total leasable
area

Ave remaining period tolease end
8.6 yrs

contracts will terminate
by the 19th Period（Retail properties）

10,00024.3%

69,040 tsubo

120%

Tokyu Plaza Omotesando
東急プラザ表参道原宿
Harajuku

DECKS Tokyo Beach
デックス東京ビーチ

110%
100%

8.1%

5,000
0

3.0%

2017年11月期
Nov. 2017(第12期)(12th
Period)2018年5月期
May 2018(第13期)(13th
Period)2018年11月期
Nov. 2018(第14期)(14th
Period)2019年5月期
May 2019(第15期)(15th
Period)

3.8%
1.4%

1.4%

2019年11月期
Nov. 2019(第16期)(16th
Period)2020年5月期
May 2020(第17期)(17th
Period)2020年11月期
Nov. 2020(第18期)(18th
Period)2021年5月期
May 2021(第19期)(19th
Period)

90%

3.6%

1.4%
2021年11月期
Nov. 2021(第20期)(20th
Period)2022年5月期
May 2022(第21期)(21st
Period)

0.4%

1.1%

2022年11月期
Nov. 2022(第22期)(22nd
Period)2023年5月期
May 2023(第23期)(23rd
Period)ave. 14th Period
2023年11月期
Nov. 2023(第24期)(24th
Period)80%

DECKS Tokyo Beach

111%
102％

Tokyu Plaza Omotesando Harajuku

70%
0％

2. Internal Growth timely achieved

Internal growth achieved in recent periods
where large tenant leases expired

2017
6月
Jun.

12月 2018
Dec.
12th Period (Nov. 2017)6月
Jun.
14th Period (Nov. 2018)

13th Period (May 2018)

Trends in rents at end of periods(rent at the end of period immediately preceding acquisition of the property indexed as 100)

UR-10 Q plaza SHINSAIBASHI
120

tenantreplacement w/
rent increase inat end of the
14th Period

+25%

105

120

+9%

UR-12 A-FLAG BIJUTSUKAN DORI
at end of the
14th Period

107

100

9th

95
0

14th

1 2 3 4 5 6 7 8 9 10
UR-3 Q plaza EBISU
105

tenantreplacement w/
rent increase in
727 tsubo

100

90
0

2F

14th

5th

1

2 3 4 5 6 7 8UR-12 A-FLAG BIJUTSUKAN DORI
105

tenantreplacement w/
rent increase in
283 tsubo

tenantreplacement w/
rent increase in
191 tsubo+7%

at end of the
14th Period+6%

at end of the
14th Period

100

950

1

2

3

4

5

Underground

6

7

8

11th

1

 Implemented leasing activities with

14th

2

3

4

5

6

apparelcompany

Jazz clubpossibility to divide floor

95
00

14th

1F

former tenant(apparelcompany）

 Structure limiting tenants (duplex)

103

100

102

2nd

vs. former tenant +6%
Replaced w/o down-time
both on 1st & 2nd floors

110

361 tsubo

110

Rent increase achieved by replacement

UR-9 A-FLAG SHIBUYA

7

8

2F

1F

Undergroundoffice/show room
foreign-funded
car dealer

apparelcompany

Jazz club Succeeded in closing contract withfavorable conditions

 Improved revenue stability due to its

contribution to rent revenue & tenant
diversification

2. Internal Growth, External Growth, Financial Strategies and ESG

Internal Growth ～Management of Retail Properties 2～
1. Urban Retail properties with hotel zone

Stablemanagement

Overview of each hotel（based on the 13&14th Periods
results）

Highly competitive due to high visibility of the building as landmark
and excellent accessibility
Tokyu Plaza
Akasaka

Property

A-FLAGSAPPORO8

2. Proactive operation in Urban Retail properties
Cycle for improvement in
attractiveness and profitability

Fixed-rent

Kobe Kyu Kyoryuchi
25Bankan

Continually strengthen foundation for
future internal growth81％
Invite attractive tenants
Hotel(Operator)

Akasaka Excel Hotel
Tokyu(Tokyu Hotels)

Location

1-min walk from
Akasaka-mitsuke
Station2-min walk from
Susukino Station

487

575

# of
rooms

Sapporo Tokyu
REI Hotel(Tokyu Hotels)

Oriental Hotel(Plan・Do・See)
5-min walk from
Kyukyoryuchi・Daimarumae Station

Synergy

Improve property’s potential

Inbound sales ratio

Efficient proactive operation through co-operation
with Sponsor Group

13％

Examples116

Implementation of flexible renewals, investment gimmick and timely
promotional events

Trend in sales-linked rent at hotels

Installation of “Seaside place”

Decrease caused by earthquake is expected in the sales-linked rent in the 16th Period
 An open place faced to Odaiba Kaihin Park withTrend in sales-linked rent
Even period：Tokyu Plaza Akasaka,
A-FLAG SAPPORO
Odd period：Kobe Kyu Kyoryuchi
25Bankan 223.7

276.9
276.9
198.7
73.9

73.8

66.4

2017年5月期
2017.52017.5(11th
Period)(第11期)(第11期)

2017年11月期
2017.112017.11(12th
Period)(第12期)(第12期)

2018年5月期
2018.52018.5(13th
Period)(第13期)(第13期)

2018年11月期
2018年11月期
2018.112018.11(14th
Period)(第14期)(第14期)(第14期)

2019年5月期
2018年5月期
2019.52019.5(15th
Period)(第15期予想)(第15期予想)(第15期予想)(forecast)

DECKS Tokyo Beach
Installation of more toilets for visitors
Tokyu Plaza Omotesando Harajuku

2019年11月期
2018年11月期
2019.112019.11(16th
Period)(第16期予想)(第16期予想)(forecast)

Trend in operation (average of 3 hotels)
Ave. of 13th & 14th Periods: 86%

90%

91%

89%

86%

83%

87%

89%

92%
87%

86%

89%

78%
73%

80%

Earthquake in
Hokkaido70%

 Installed more ladies toilet booths

RevPAR (Y-on-Y)

Occupancy rate of hotel rooms
100% In objective to relieve congestion

Ave. of 13th & 14th Periods: 101%108%
105% 106%
106%
110%
103%
103%
102%
102%
99%
100%

103%
97%

Earthquake in
Hokkaido
Dec.
Jan.
12月
2月
3月
4月
5月
6月
7月 Aug.
8月 Sep.
9月 Oct.
10月Nov.
11月
Dec.1月Jan. Feb.
Feb. Mar.
Mar. Apr.
Apr. MayMay Jun.
Jun. Jul.
Jul.
Aug.
Sep.
Oct.
Nov.
13th Period ended May
14th Period ended Nov.
2018
2018

A-FLAG SAPPORO
 Installed more universal-designed

toilet booths

60%
2018

and improve visitors convenience Both visitors satisfaction and

90%

0％
50%

artificial lawns and mist spraying to offers arefreshing moment to visitors
 Project certified by the 2020 Tokyo Olympics andheat island measures by Government of Tokyo(subsidy granted)（in millions of yen)

80%
0％

2018

82%

12月
2月 Mar.
3月 Apr.
4月 May5月 Jun.
6月 Jul.
7月Aug.
8月Sep.
9月Oct.
10月
11月
Dec. 1月
Jan. Feb.
Nov.
13th Period ended May
14th Period ended Nov.
2018
2018

accessibility improved2. Internal Growth, External Growth, Financial Strategies and ESG

Internal Growth ～New retail tenants～

9

Numerous attractive tenants opened their shops in result of different leasing approaches
UR-9

A-FLAG SHIBUYA
Scheduled to open
on Mar.15, 2019
 “GU”, a top-class apparelbrand Its only one shop in Shibuya
area

Deciding factors
for tenant
to choose theproperty

UR-12 A-FLAG BIJUTSUKAN DORI

 Shibuya is an area where they had always wanted to open shops
 The property is located in an area of especially heavy foot traffic in

Shibuya, and high ability to attract customers is expected overlong periods of time thanks to many development projects aroundthe area

AA-13 EDGE Shinsaibashi

Opened on
Nov. 15, 2018

Opened on
Jan. 4, 2019
 Wedding facility operated by
DD Holding Group, a restaurant Unorthodox facility fitting
Shinsaibashi, an area rich inuniqueness A flagship store of “DS

Automobiles” by Peugeot
Citroën Japon
 French luxury brand launched
in Japan on full scale
Deciding factors
for tenant

Located in a center of fashion and trend
The property fits luxury image of the brand

Deciding factors fortenantFavorable location in Minami, center of Osaka
Elevator dedicated to the floor

TO-17 A-PLACE Shinbashi Ekimae

Opened on
Sep. 1, 2018
 A convention rooms rental by
TC Forum, a Tokyu Fudosan
Holdings Group company
 Room of 577㎡ canaccommodate an event

Opened on
Aug. 27, 2018
 Membership shared workspaceby Tokyu Land Corporation
 Brand’s 7th space & has thebiggest area
Deciding factors fortenant1-min walk from Shinbashi Station
Space extendable to more than one floor

Deciding factors fortenantConveniently located for users
Its 3m-high ceiling offers an open environment

2. Internal Growth, External Growth, Financial Strategies and ESG

Internal Growth ～Dynamic Internal Growth Continuously Achieved～10 In each period internal growth achieved in retail & office properties due to tenant replacements with rent increase and upward rent revisions
 Expected to realize an increase in revenue in the 16th Period far exceeding the 12th Period due to tenant replacement with rent increase
and upward rent revisions absorbing decrease in rent revenue recorded due to the depart of a tenant from A-PLACE Shinbashi Ekimae＜Increase in 2 years (16th vs. 12th Period)＞＋¥129mn (+1.1%)(+¥359mn (+3.2％) excl. A-PLACE Shinbashi Ekimae）

Trends in Rent & Common service fee (per period)*

Forecast

Actual(in millions of yen)
Retail+11

Retail+20

Office+90

A-PLACE
Shinbashi
Ekimae-23

11,266

11,344～(12th Period)(13th Period)（実）2018.5
第13期（実）

Office+48

A-PLACE
Shinbashi
Ekimae-207～
2017.11
第12期

Office+63

Retail+76

Office+36＜vs 12th Period＞

11,317
11,249・Office+237
・Retail+122
・A-PLACE Shinbashi
Ekimae-230～～(14th Period)(15th Period)

2018.11
第14期（実）*1 Excluded the properties acquired and property to be disposed in the 12th Period and onwards and sales-linked rent at hotels(Tokyu Plaza Akasaka, Kobe Kyu Kyoryuchi 25Bankan and A-FLAG SAPPORO)*2 Based on the forecasts disclosed on November 30, 2018 and January 17, 2019

Retail+15

2019.5
第15期（予）※＜vs. 12th＞
OfficeRetailAP Shinbas

11,395～2019.1116th
Period
第16期(16th Period)(2019.11)（予）※2. Internal Growth, External Growth, Financial Strategies and ESG

External Growth ~Highlights of the 6th PO~

11

 Conducted the 6th Global PO in Dec. 2018 and acquired 3 new properties (total ¥70.5bn) including 2 retail properties(¥50.7bn) and 1 office building (¥19.8bn)
 Through meetings through the longest roadshow ever of 7 business days, the issue received a demand of ¥239.4bn,
approx.8.2x of the offer size
1. Acquired properties
Property name

Address

Tokyu Plaza Ginza (Land)
Retail

(30% Co-ownership interest)

Q plaza HARAJUKU(60% Co-ownership interest)

AcquiredfromDate of
Acquisition

Acquisition
price(¥ mn)

AppraisalValue(¥ mn)

Appraisal
NOI yield

37,50039,0002.5％

13,20013,3003.1%

19,80020,0004.0%

70,50072,300

3.1％

Chuo,
Tokyo
Shibuya,Tokyo

SponsorsourcedJan. 10,2019

Osaka,Osaka

Office EDGE Shinsaibashi

Total / Average

2. Offering summary
72,520 units
Number of investment
units issued- Public:67,320 units(incl. units allocated todesignated purchaser 7,252)- Third-party allotment:5,200

Ratio of Dom. / Int.

65 / 35

Total number of units
after offering

771,224 units

Offer price¥445,410 per unit

Issue price¥431,320 per unit

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

Issuance annoucement
date

November 30, 2018 (Fri)Pricing date

December 12, 2018 (Wed)Payment date

December 19, 2018 (wed)

Delivery date

December 20, 2018 (Thu)Key points① Acquired from Sponsor 3 competitive and scarce large-sized properties and achieved to further
enhance portfolio quality② With asset replacement conducted at the same time as PO, achieved to increase stabilized DPU
and record gain on sales in the 15th and 16th Periods③ Growth achieved as well in NAV per unit through accretive PO
Offering schedule
Sun

Mon

Tue

Wed

Thu

Fri

Sat

Nov 25

Nov 26

Nov 27

Nov 28

Nov 29Nov 30

Dec 1

Annouce
ment
Dec 2

Dec 3

Dec 4

Dec 5

Dec 6

Dec 7

Dec 8

Dec 13

Dec 14

Dec 15

Roadshow

Dec 9

Dec 10Dec 11
Roadshow

Dec 12
Pricing

2. Internal Growth, External Growth, Financial Strategies and ESG

External Growth ～Purpose of the PO～

12

Through investments based on rigorous consideration of location and quality, ”External Growth contributing to Internal
Growth” successively achieved (External & Internal Growth generating virtuous cycle)
Succeeded to further enhance portfolio quality as well as secured internal growth potential

1. Three scarce properties acquired from Sponsor
Acquisition of properties expecting future upside backed bythose locations in prime areas such as Ginza, Harajuku andShinsaibashi where potential rent increase continues to grow

Characteristics

Tokyu Plaza Ginza(Land)

Q plaza HARAJUKUEDGEShinsaibashi

Flagship property
Excellent stability

Greater Shibuya area
Stability & Upside

Prime location
UpsideOfficial land price(Average
growth rate)+17％

Rent in area
(Average growth
rate)

+13％

Major
redevelopment
projects in area

①MUJI HOTEL
GINZA②Ginza Sony Park
project+13％

Acquisition price-based AUM grew to ¥502bn (+¥70.5bn vs. beforePO), leading further stable earning foundation with enhanced AUM
Distributions (forecast)
DPU
Distribu
tions
(¥mn)

+19％

+39％
①Jingumae 6chome Project②Miyashita Park
Redevelopment
Project

2. PO contributed to “stability” & ”portfolio quality”+1％

NAV per unit
①Daimaru
Shinsaibashi(Main Building)②Osaka M Project(Note 1) Official land prices of 5-41, Chuo Ginza, 5-31 Shibuya and 5-18 Osaka Chuo
(Note 2) Annual average growth rates from 2015 to 2018 except land price in Ginza and rent in Shinsaibashi
both from 2017 to 2018

API’s strategy forexternal and internal growth cycle¥9,502¥9,549

7,328

7,365

Stability up

Stability up

after POMay 2019(15th Period)

after PO
Nov. 2019(16th Period)¥9,502

6,638

before PO
May 2019(15th Period)*Excluding gain on sale of A-FLAG AKASAKA

before PO

after PO

(end of 14th
Period)(Jan.17, 2019)¥437,302/unit¥439,074/unit

3 most significant properties(based on
acquisition price)

Portfolio quality
enhancement+

Portfolio
diversification

Increase unitholder value
Higherevaluationin equity
marketDPU & NAV
growthInternal growth

External growth
Enhance AUM
Stabilize revenue

Shiodome
Building(30%)

Tokyu Plaza
Omotesando
Harajuku(75%)

Tokyu Plaza
Ginza(Land)(30%)

Kobe Kyu
Kyoryuchi
25Bankan

Total

Investment ratio(after PO)

14.3%

9.0%

7.5%

-

30.7％

(before PO）

16.6%

10.4%

-

4.9%

32.0％

Aim to increase continuously unitholder value through steady
growth in DPU and NAV per unit

2. Internal Growth, External Growth, Financial Strategies and ESG

External Growth ～Continual Expansion of AUM for the Growth in Unitholder’s Value～

13

Continued since IPO to expand portfolio rigorously selected with a focus on location and quality, maintaining focusedinvestment ratio at around 80%
 We aim at further continuous expansion of our portfolio contributing to unitholder’s value
1. Trends in AUM and investment ratio
2. Acquisition route and method

Investment ratio (as of Jan. 17, 2019)¥502.0bn
39.2% 40.2%
Ratio offocusedinvestment
assets
79.4%

48.7%
51.3%

¥389.1bn

Third Party¥71.1bn

External circle :Acquired¥333.9bn(after the
6th PO)¥326.7bn

OfficeTO

RetailAA

UR

SponsorGroup(developed)¥137.3bn

Via Asset
Manager¥103.2bn（31%）¥431.5bn

20.6%
Inner circle：

Since IPO, achieved external growth utilizing source
both from Sponsor Group and Asset Manager¥282.6bn¥231.7bn

Warehousing¥32.2bn

Sponsorsourced¥230.7bn（69%）¥170.4bn
SponsorGroup(owned)¥93.5bn

32

42

45

properties

properties

properties

2015年11月
Jan. 2016
after
3rd PO
3rdPO後2016年11月
Jan. 2017after
4th PO
4thPO後2017年11月
Jan. 2018
after
5th PO
5thPO後2018年11月
Jan. 20192018年11月
after
6th PO
本PO後
6thPO後

59.3%

54.9%

49.0%

49.7%

48.7%

29.7%

40.7%

45.1%

51.0%

50.3%

51.3%

80.3%

80.1%

83.2%

80.0%

80.6%

79.4%

26

30

properties

properties

properties

properties

2012年6月
Jun. 2012
after
IPO
IPO後

2013年11月
Jan. 2014after
1st PO
1stPO後2014年11月
Jan. 2015after
2nd PO
2ndPO後Retail

71.5%

70.3%

Office28.5%

Focusedinvestment
ratio

79.7%

18

38

3. Acquisition capacity
Capacity sufficiently secured after the PO
for flexible asset acquisition

44.5bnapprox. ¥*at LTV 50%

2. Internal Growth, External Growth, Financial Strategies and ESG

External Growth ～Properties Held by Sponsor Group and Diversified External Growth Methods (Example and Policy of Asset

14

Replacement)～

3. Asset replacement of A-FLAG AKASAKA
and Q plaza HARAJUKU

1. Significant properties held by Sponsor Group *As of Sep. 30
OfficeNb

Property①

Ichibancho Tokyu
Building
Ebisu Business Tower
Shibuya Square②③④

Hamatsucho 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

⑤
⑥
⑦
⑧
⑨
⑩
⑪
⑫

Nearest station

GFA
Walking Complet（thousands
distance -ion㎡）

Hanzomon

1 min

2002

20

Ebisu
Shibuya

2 min
3 min

2003
2004

23
13

Hamamatsucho

1 min

2004

24

Shibuya

6 min

2005

20

Shinbashi

2 min

2006

14

Nihonbashi

1 min

2006

17

Omotesando

4 min

2008

12

Shinbashi

2 min

2008

15

Tameike-Sanno

4 min

2010

19

Meguro

2 min

2012

22

Omotesando

3 min

2015

9

Replacement summary
Asset replacement with the aim of enhancement of portfolio quality and
DPU management
Asset to be disposed：
Property acquired：
A-FLAG AKASAKA
Q plaza HARAJUKU

rent upsideachieved

Nearest station-

Tokyu Plaza Kamata

Kamata①-

Shibuya BEAM
Daini Musashino
Building
Northport Mall

Shibuya
Shinjuku Sanchome
Center Kita-

Tokyu Plaza Totsuka

Totsuka-

Futakotamagawa
rise-SC
Morinomiya Q’s MALL
BASE
Q plaza
FUTAKOTAMAGAWA②

2. Properties co-owned withSponsor Group

Property

-

1968

28

30
%

%

1992

7

1 min

1992

6

1 min
Directlyconnected

2007

141

2010

12

Futakotamagawa 1 min

2011

20

Morinomiya

1 min

2015

24

Futakotamagawa 1 min

2017

3

75
%

Tokyu Plaza
Omotesando Harajuku

50%

Tokyu Plaza Akasaka

49%

Tokyu Plaza Ginza(Land)

Q plaza HARAJUKU＜Tenant structure＞＜Tenant
structure＞＜テナント構成＞DECKS Tokyo Beach*co-ownership interest ratios held by API

Fashion18%

Restaurant
65%

8Service
16%Service13%

tenants

Comparison ofappraisal values
（¥mn)

CR
3.5%

4,500

3,500

CR
4.3%

3,750

3,150

3,000
0
2,500

as of Jul. 2013(at acquisition)at the end of
14th Period(latest)

4. Policy ofasset replacement

Wedding
44%

15

テナント数

tenants
14

Food
service25% (based on leased area)（based on leased area）

4,000

60

(as of Nov. 30, 2018）studio10%

Walking Complet(thousands
distance-ion㎡）
Directlyconnected
5 minaged 3.7yrs(as of Nov. 30, 2018)

RetailYoga 10%GFA

Developed andheld by Sponsor

To bereplaced

aged 10.8yrs

RetailNb

2-min. walk fromnearest station in
Great Shibuya
areasmall-sized asset
with GFA of lessthan 3,000㎡

Disposition schedule
Gain on sale will be recorded in the 15th &16th Periods
Period ended
Nov. 2018（14th Period）
Nov. 30, 2018
Announcement ofsale to Sponsor
Group

Period ending
May 2019（15th Period）
Mar. 1, 2019

Period ending
Nov. 2019（16th Period）
Jun. 3, 2019

Dispose 50%
co-ownershipinterest

Dispose 50%
co-ownershipinterest(Contribution to DPUof disposition: ¥376)(Contribution to DPUof disposition: ¥356)

Enhance portfolio quality through asset replacement andaim at further growth of API
 Select asset to be disposed by comprehensive evaluation of each

asset’s competitiveness and other elements
 Be flexible with regard to replacement timing

2. Internal Growth, External Growth, Financial Strategies and ESG

Financial Strategies ～Status of Financing 1～

15

1. Trends in LTV and borrowing indicators
Secured acquisition capacity of approx. ¥44.5bn with a LTV at maximum 50% through the 6th PO and prepared for further acquisition

50.0%

LTV

Acquisition
Capacity(at max. 50%)
取得余力
（LTV50%迄）

as of Jan. 17, 2019as of Jan. 17, 201945.7％

approx. ¥44.5bn

46.0%
st

1 PO

42.8%

43.7%

41.5%

46.0%

44.8%

44.7%

4th PO

43.3%

42.7%

5th PO3

2nd PO

45.7%
6th POPO

41.6%

40.0% 41.3%
39.0%
2012.11(2nd(第2期)
Period)

44.5%
rd

43.6%

43.4%

鑑定LTV
LTV

47.7%

45.9%

45.0%

Appraisal

LTV

2013.5(3rd(第3期)
Period)2013.11(4th(第4期)
Period)2014.5(5th(第5期)
Period)40.1%
2014.11(6th(第6期)
Period)

40.1%

39.5%

38.7%
2015.5(7th(第7期)
Period)

39.6%

38.0%

2015.11(8th(第8期)
Period)2016.5(9th(第9期)
Period)2016.11(10th(第10期)
Period)2017.5(11th(第11期)
Period)2017.11(12th(第12期)
Period)

39.2%
38.3%

37.7%

2018.5(13th(13th(第13期)
period)period)Period)2018.11(14th(第14期)
Period)2019年
asof Jan.
17, 2019
1月17日時点

２. Average years remaining to maturity and interest rate
Secured average remaining years to maturity of over 4 years and a ratio of fixed interest rate of over 80% as of Jan. 17, 2019with lowering average interest rate
Ave. interest rate

Ave. remaining years to maturity

0.58%

4.4 years

0.80%

0.77%

0.75%

0.79%

0.76%

0.75%

Ave. years remaining

0.75%

4.1yrs
3.5yrs

2.9yrs2012.112013.52012.112013.52nd
Period3rd
Period(2nd
Period) (3rdPeriod)（2012.11)（2013.5)
(第2期)
(第3期)

Interest
bearing debt(¥mn)
Ratio of fixedrate

2013.112013.114th
Period(4th
Period)（2013.11)(第4期)

3.1yrs

2.9yrs

3.0yrs3.3yrs

平均金利
rate

0.77%
0.67%

3.3yrsAve. interest

平均残存年数to Maturity

0.67%

0.65%

0.66%

0.63%

4.4yrs

4.6yrs

0.58%

4.4yrs

4.5yrs

4.4yrs

3.5yrs2014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11as2019年
Jan 19,17,
2014.52014.112015.52015.112016.52016.112017.52017.112018.52018.115th
Period6th
Period7th
Period8th
Period9th
Period 10th
Period11th
Period 12th
Period13th
Period 14th
Period as
ofofJan.
(5th
Period) (6thPeriod) （2015.5）(7th Period) （2015.11）(8th Period) (9thPeriod) （2016.11）(10th Period) (11thPeriod) (12thPeriod) (13thPeriod) (14thPeriod)2019（2014.5）（2014.11）（2016.5)(2017.5)(2017.11)(2018.5)(2018.11)
2019
(第5期)
(第6期)
(第7期)
(第8期)
(第9期)
(第10期)(第11期)(第12期)(第13期)(第14期)
1月17日時点

77,00085,00088,000100,800

110,800

127,100

136,900

147,150

177,150

196,150

196,150

199,350

199,350

234,350

70.1%

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%

2. Internal Growth, External Growth, Financial Strategies and ESG

Financial Strategies ～Status of Financing 2～
１. Strategic refinancing and new borrowings
from the 14th Period onwards

16
２. List of lenders (as of Jan. 17, 2019)
Lenders presently extended to 18, and further enhance lenders diversification
with leveraging investment corporation bonds

Implemented strategic refinancing and new borrowings
allowing to lengthen average borrowing period and lowering
average interest rate

Outstanding
amount (\mn)

8%19%Beforerefinancing
Total
repaid/borrowed
amountAve. borrowing
periodAve. interest rate

After
refinancing¥23.6bnNewborrowings¥23.6bn¥35.0bn

8%
28%

4.2yrs

3.8yrs

4.1yrs

0.43%

0.67%

19%

0.31%

３. Maturity Ladder

45,305

19.3%

MUFG Bank *65,26027.8%

Mizuho Bank

45,30519.3%

19,1408.2%

19,1408.2%

Mizuho Trust & Banking

7,140

3.0%

Resona Bank

3,440

1.5%

The Bank of Fukuoka

2,440

1.0%

Shinkin Central Bank

2,940

1.3%

The Norinchukin Bank

2,640

1.1%

The Gunma Bank

500

0.2%

Nippon Life Insurance Company

500

0.2%

400

0.2%

400

0.2%

Mitsui Sumitomo Insurance
Company500

0.2%

Taiyo Life Insurance Company

500

0.2%

THE NISHI-NIPPON CITY BANK

500

0.2%

The Bank of Kyoto

300

0.1%

Mitsui Sumitomo Banking
Corporation
Development Bank of Japan

8%

Tokyo Marine & Nichido Fire
Insurance
The 77 Bank

Mitsui Sumitomo Trust BankMUFG Bank

Mizuho Bank

Mitsui Sumitomo Banking Corporation

Development Bank of Japan

Mizuho Trust & Banking

Resona Bank

The Bank of Fukuoka

Shinkin Central Bank

The Norinchukin BankThe Gunma Bank

Nippon Life Insurance Company

Tokyo Marine & Nichido Fire Insurance

The 77 Bank

Mitsui Sumitomo Insurance Company

Taiyo Life Insurance Company

THE NISHI-NIPPON CITY BANKThe Bank of Kyoto

Investment Corporation Bonds

Investment Corporation Bonds

Total

Diversified maturity periods paying attention to refinance ofinvestment corporation bonds

Borrowings
既存借入

16
160

Investment
投資法人債
Corporation
Bonds

Commitment line+
¥21bn

AA（Stable）〈Japan Credit Rating Agency(JCR)〉

Credit line
¥12bn

0

8.1

2.0

1.0

6.0
18.1
12.5

4
40

2.0

1.0

8
80

7.3

14.5

13.8

12.0
9.1

100.0%

Long-term issuer rating
New borrowings
新規借入

5.0

4.0

7.7%

234,350

４. Issuer rating

5.0

12
120

18,000* Borrowings from MUFG Bank include borrowings of ¥25.51bn fromformer Mitsubishi UFJ Trust and Banking Corporation.

Interest-bearing debt maturity ladder (as of Jan 17, 2019)20（¥bn）
200

Ratio

Mitsui Sumitomo Trust Bank

13.3

12.5

12.0

12.0

2012
（at IPO）
AA（Stable）

14.0
11.3

10.9

10.5

8.6
6.0

1.0

1.0

15th 第16期
16th 第17期
17th 第18期
18th 第19期
19th 第20期
20th 第21期
21st 第22期
22nd 第23期
23rd 第24期
24th 第25期
25th 第26期
26th 第27期
27th 第28期
28th 第29期
29th 第30期
30th 第31期
31st 第32期
32nd 第33期
33rd 第34期 第41期
41th 第42期 第53期
53th
第15期

2015
2016
AAAA
（Positive） （Stable）

2. Internal Growth, External Growth, Financial Strategies and ESG

ESG ～Preparation for Issuance of API’s Green Bonds～


17

Began preparation for issuance of API’s first Green Bonds
Second-party opinion obtained from Sustainalytics (Subsidy to be granted from the Ministry of the Environment)

１. Purpose of the issuance
1 Offer ESG investment opportunities

３. Eligible Green ProjectAs first J-REIT, API limited the green building certification of
the eligibility criteria to the top two levels

 Expect to contribute to expand Green Bond market in J-REIT

by offering ESG investment opportunities which is drawing attention
recently

Strict green eligibility
with a scope smaller than
the green certified
buildings

２ Promote ESG initiatives
 Issuance of Green Bond for further promote API’s sustainability

Green
Eligible
Projects

initiatives toward sustainability and green certifications aiming
to build a portfolio of properties that can expect stable andsustainable customer demand
3 Strengthen financial formation¥261.5bn

 Intend to draw new investor segment including major investors toinvest corporation bonds market of which players are limited Pursue API’s sustainable asset management through issuance ofGreen Bonds allowing more stable fund raising

２. Use of Proceeds
The proceeds will be limited to allocation to acquisition of new eligible
buildings (Eligible Green Projects) and refurbishment of existingbuildings, and to refinancing of the existing loans/investment
corporation bonds allocated to Eligible Green Projects or refurbishment

Eligibility criteria
Ａ．Eligible Green Project① S or A Rank under Certification for CASBEE for Real Estate② 5 or 4 Stars under DBJ Green Building Certification③ 5 or 4 Stars under BELS
Ｂ．Refurbishment① more than 10% reduction in CO2 emissions or energy consumption② more than 10% reduction in water consumption③ New achievement of the top two levels of one or more among thegreen building certifications listed above ①～③ or more than one levelof star/rank improvement in the green building certification

Green Eligible Projects¥287.2¥bn
(67%)
n
261.5
■Green buildings awarded 5 stars(¥135.7bn)■Green buildings awarded 4 stars(¥125.7bn)■Green buildings awarded 3 or less stars■Not applicable (excl. land)■Not applicable (land)（Note）Based on book value at the end of the 14th Period (total 42 properties）<Reference> Evaluation points from Sustainalytics■Given high remarks in all components of framework①Use of Proceeds

Sustainalytics considers that the framework’s inclusionof only the top two levels of green certifications is inline with market best practice②Process for ProjectEvaluation and
Selection

Projects are selected and evaluated by executives of
the Asset Manager and that approach is considered inline with market best practice③Management ofProceeds

If the proceeds are not allocated, API will track the
allocation at end of May each year, and that approachis considered in line with market practice④Reporting

API will report annually on key environmental
performance indicators and this disclosure is in linewith market practice2. Internal Growth, External Growth, Financial Strategies and ESG

ESG ~Continuous Effort for ESG~
Environment

18
SocialGovernance

1. External assessment of measures for sustainability
24 properties, over half of portfolio are awarded external certification
GRESB Real Estate AssessmentAwarded for two consecutive years “Sector Leader” in“Diversified – Office & Retail/Asia” in the assessment 2018
Obtained the highest grade of “5 Stars” in the GRESB Rating
Recognized with Green Star for five consecutive years
since 2014 (participation from 2013)
Acquired highest rating “A” GRESB Public Disclosure

Certification for CASBEE for Real EstateAt present, 16 properties have been
awarded certification, and all acquired topclass evaluation out of 5 classes
S(5 stars): 7 properties(A-PLACE Ebisu Minami, etc.)
A(4 stars): 9 properties(Q plaza HARAJUKU, etc.）

Newly 4 properties certified in Oct. 2018

A-PLACE
Shinagawa
Higashi

TLC Ebisu
Building

A-PLACE
Ebisu Higashi

A-PLACE
ShibuyaKonnohBELS

DBJ Green Building Certification

6 properties have been awarded
3 stars to 1 star
3 stars:2 properties(A-PLACE Shibuya Konnoh, etc.)
2 stars:3 properties (A-PLACE Yoyogi, etc.)
1 star: 1 property (A-PLACE Shinagawa)8 properties have been awarded 5 to 3 stars
5 stars:2 properties (OSAKI WIZTOWER, etc.)
4 stars:2 properties (Tokyu Plaza Omotesando,etc.)
3 stars: 4 properties (Tokyu Plaza Akasaka, etc.)

2. Social contribution

3. Asset management fee structure pursuing unitholder
value

At IPO in Jun. 2012, API adopted an asset management fee linked to
DPU for a portion of the management fees paid to the Asset Manager(Type II), which has led to incentivize the Asset Manager to maximize
unitholder’s value
Asset management fees
Acquisition / disposition fees
TypeⅠ
(annual rate)

Type IIDPU before
deduction of
Total assets at
Type II
the end of the
management
previous
feeperiodBasis for××
calculation
NOI
0.3%
of fee rate
×0.0002%The sum of Type I and TypeII may not exceed 0.5% of
our total assets at the end ofeach period







Active participation at Umeda Gate Tower invarious events sponsored by localorganizations
Joined “Purari Flower Watching” led by
Umeda Higashi Town Promote Association in
Nov. 2018 and set flowers of every season

0.5%
0.7%

0.5%

No
disposition
fees

No disposition fees
when loss on sale isaccruedNo disposition feesis accrued for the sale of
A-FLAG AKASAKAFirst same-boat investment by Sponsor in the 6th PO
after the last participation three years ago
Market Cap
approx. ¥30bn（calculated based on closing
Trend in Units hold by Sponsor(unit)
100,000

60,000Local nursery school children tried out vegetable
farming at the Omohara Forest rooftop terraceof Tokyu Plaza Omotesando Harajuku
Since Jun. 2018, we are implementing Harvest
Festival from time to time, promoting tocommunicate with local communities and build
good relationships with the surrounding areas
through various projects

Ratio of disposition
fee
Excl.
Relatedrelated
party
party

4. Same-boat investment by Sponsor

10.5%

10.4%

10.4%

80,000

Ratio of acquisition
fee
Excl.
Relatedrelated
party
party

43,00052,16057,374

10.3%

61,913

price on Jan. 2019)

9.3%

8.9%

61,913

61,9139.0%

10%69,1658%
6%40,0004%

20,0002%

00%
2012年6月
Jan. 2019
Jun. 2012 2013年11月
Jan. 2014 2014年11月
Jan. 2015 2015年11月
Jan. 2016 2016年11月
Jan. 2017 2017年11月
Jan. 2018 2018年11月
after
IPO
IPO後

after
1st PO after
2nd PO
1stPO後
2ndPO後after
3rd PO after
4th PO
3rdPO後
4thPO後after
5th PO
5thPO後after
6th PO
6thPO後3. Financial Forecast(Reference) Financial Forecasts for the Period Ending May 2019 (the 15th Period)

19

Both revenue and profit are expected to largely increase from the 14th Period due to (i) new operation of the 3
properties acquired through the 6th PO and (ii) gain on sale to record, absorbing decrease in sales-linked rent at hotels
DPU is expected to be ¥9,878, up ¥294 from the previous period

1. 15th Period latest forecasts vs. 14th Period results/(in millions of yen)
15th Period former forecasts

Operatingrevenue
Gain on sale
Operatingexpenses
Taxes &
Public dues
Operating profit

14th
Period15th Period(Period ending May 2019)

Results

Period2018.11.30
2019.1.17 Difference (%)

vs Previous

Forecasts

2. Variance analysis (vs. 14th Period results) (in millions of yen)

15th Period(vs. former
forecasts)

vs 14thPeriodresults

Change(vs. former
2018.7.13
forecasts)
Forecast

13,815

14,771

＋956

+6.9%

13,431+1,339

0

338

+338

-

0

+338

6,268

6,189

-79

-1.3%

5,922

+266

988

997

+9

+0.9%

997

+0

7,546

8,582

+1,035+13.7%

7,509+1,073

Ordinary profit

6,697

7,619

+921

+13.8%

6,640

+979

Profit

6,696

7,618

+921

+13.8%

6,639

+979

DPU

¥9,584¥9,878

+¥294

+3.1%

¥9,502+¥376

3. Variance between the 15th Period forecasts andthe 14th Period results (DPU)

Operatingrevenue

Expensesrelated to rent
business

NOI after
depreciation(excl. gain on sale)

Generaladministrative
expenses
OperatingprofitDetails

New operation +982, Sale of A-FLAG AKASAKA +309,
Increase Rent of existing properties +54, Cancellation penalty+6, Parking lots fee +4+956
Sales-linked rent at hotels -203, Utility fee income
Decrease -144, Other income -31, Facility usage fee -18,
Restoration work fee -2
New operation +116, Depreciation +14,
Increase
Advertisement fee +11, Taxes & Public dues +9
Repair & Maintenance -150, Management operation-155
Decrease expenses -68, Utilities fee -58, Other rent business
expenses -17, Sale of A-FLAG AKASAKA -13+772
Asset management fee +40, Taxes & Public dues
Increase +17, Miscellaneous expenses +10, Administration+75
service +3, Custody fee +1, Payment commission +1
Decrease

調達コスト：0.825%+1,035Interest rate assumption：0.80%
vs. 14th Period+¥294¥9,878¥9,584～the 14th Period results(ended May 2018)

Sale of
A-FLAGAKASAKA

Operatingrevenue+¥1,240

Expensesrelated torentbusiness+¥201

Generaladministrative
expenses-¥98

Interest
expenses andothersPO, etc.

-¥172

-¥877

～

the 15th Period forecasts(ending May 2019)(Note) The forecasts are calculated based on certain assumptions that reflect present conditions, and are subject to change. The forecasts do not guarantee any amount of distributions.

3. Financial Forecast(Reference) Financial Forecasts for the Period Ending Nov. 2019 (the 16th Period)

20

Both revenue and profit forecasted to increase from the 15th Period due to (i) full-period operation of 3 properties and(ii) revenue increase from rent of existing properties
 DPU is expected to be ¥9,905, up +¥27 from the previous period(in millions of yen)
1. Comparison to the 15th forecasts
2. Variance analysis (vs. the 15th latest forecast)

15th Period
Forecasts
2018.11.30
2019.1.17

Operatingrevenue
Gain on sale
Operatingexpenses
Taxes &
public dues

(in millions of yen)

16th Period (ending Nov. 2019)
Forecasts
vs. 15th Period

2018.11.30
2019.1.17

Difference

vs. 15th
forecasts

Details(%)

14,771

15,383

+612

+4.1%

338

341

+3

+0.1%

6,189

6,711

+522

+8.4%

997

1,087

+90

+9.0%

Operating profit

8,582

8,672

+89

+1.0%

Ordinary profit

7,619

7,640

+20

+0.3%

Profit

7,618

7,639

+20

+0.3%

DPU

¥9,878¥9,905

+¥27

+0.3%

3. Variance between the 16th Period forecasts andthe 15th Period forecasts (DPU)

Operatingrevenue+612

Increase
Decrease

Expensesrelated torent business+396

Increase
Decrease

NOI after
depreciation+212

Generaladministrative
expenses+125

Operatingprofit+89(exclu. gain on sale)

Increase
Decrease

Full-period operation +320, Utility fee income +159,
Sales-linked rent at hotels +125, Rent of existing
properties +85, Facility usage fee +13,
Parking lot fees +2, Restoration works +1
Sale of A-FLAG AKASAKA -75, Cancellation penalty -16
Full-period operation +66, Utility expense +138,
Repair & maintenance +103, Taxes & public dues +93,
Other expenses related to rent business +31,
Depreciation +10
Sale of A-FLAG AKASAKA -25, Management operation
expenses -12, Advertisement fee -7

Asset management fee +120, Payment commission +6,
Administration service +2
Miscellaneous expenses -3

Interest rate assumption：0.85%
vs. previous period+¥27¥9,878～¥9,905
Operatingrevenue

Expensesrelated torentbusiness

Generaladministrative
expenses

Interest
expenses andothersExpensesrelated to PO

+¥794

-¥514

-¥163

-¥124

+¥35

the 15th Period forecast(ending May 2019)(Note) The forecasts are calculated based on certain assumptions that reflect present conditions, and are subject to change. The forecasts do not guarantee any amount of distributions.

～the 16th Period forecast(ending Nov. 2019)3. Financial Forecast

Trend in Distributions per Unit

21

 Actual DPU for the 14th Period reached ¥9,584 exceeding the initial forecast, mainly due to that (i) the internal growthachieved in the 13th Period and before has stabilized and (ii) sales-linked rent at hotel increased.
 Forecast ¥9,878 for the 15th Period and ¥9,905 for the 16th Period (50% co-ownership interest of A-FLAG AKASAKA
is scheduled to dispose in the 15th Period and the remaining 50% in the 16th Period)¥10,000

level onstabilized base(¥)

10,000Initialforecast
前回予想分配金分配金確定値
Actual DPU

Actual/ Forecast
今回確定・予想分配金
as of Jan. 17, 2019

Effect by disposition「A-FLAG赤坂」売却効果相当額

9,878 9,905(A-FLAG AKASAKA)¥9,584

376

9,502

356

9,549

9,000

9,248

9,346

9,462

9,500

9,502

9,021

8,000

8,642

8,666

8,267
7,761

7,000

7,961

8,028

2013.112014.52014.112015.112015.112016.52016.112017.52017.112018.5
(4th
(5th
(6th
(7th
(8th
(9th
(10th
(11th
(12th
(13th
Period)Period)Period)Period)Period)Period)Period)Period)Period)Period)(Note) Adjusted for the 2-for-1 unit split effected as of October 1, 2015. Thus, the figures before the 8th period are shown as half as the actual DPU.

2018.11(14th
Period)2019.5(15th
Period)2019.11(16th Period)4. OtherTrend in Appraisal Value / NAV per Unit

22

１.Trend in appraisal value
(¥mn)
(百万円)

Unrealized gain in portfolio
ポートフォリオ含み益（百万円）

合計

(¥mn)

Book value at the end of
期末帳簿価額（百万円）

16.9%

650,000
13.3%

550,000

14.4%

15.2%

10.9%
9.4%

450,000

411,705
373,7156.8%

350,000
3.8%

250,000

3.9%

247,660
194,990

177,890

189,470

171,420

182,303

185,0172012.112012.11(2nd Period)

2013.52013.5(3rd Period)

2013.112013.11(4th Period)

6,469

150,000

314,130

5.4%

(第2期)

7,166

（第3期）

9,972

(第4期)

15,735

265,130

332,355

242,434

2014.52014.5(5th Period)

2014.112014.11(6th Period)（第6期）

283,311

293,3032015.52015.5(7th Period)

2015.112015.11(8th Period)

（第7期）

（第8期）

17.2%

15.6%

471,555

475,890

63,72468,944

407,830

406,945504,987

511,687

74,08881,702430,898

429,984

54,29847,17139,051

22,695

231,924（第5期）

30,81819.0%

Ratio of unrealized gain
含み益率

period (¥mn)

326,5432016.52016.5(9th Period)（第9期）

357,406

2016.112016.11(10th Period)（第10期）

2017.52017.112017.52017.11(11th Period) (12th Period)（第11期）（第12期）

2018.52018.112018.52018.11(13th Period) (14th Period)（第13期）（第14期）

2.Trend in NAV per unit(¥)

Unrealized gain per
1口当たり含み益（円）450,000

unit (¥)

Net asset per unit (¥)
1口当たり純資産（円）409,154400,000

373,383
335,888

350,000
290,342300,000
250,000
200,000

245,307248,509

254,632

15,75917,45824,292229,547

231,051

230,340

2012.112012.11(2nd Period)

2013.52013.5(3rd Period)

2013.112013.11(4th Period)

(第2期)

（第3期）

(第4期)

31,33855,601

437,302

95,795

103,642

313,359

313,467

106,036

116,934

320,275

320,368

90,54970,45645,199259,004

259,071

2014.52014.5(5th Period)

2014.112014.11(6th Period)（第5期）

426,311385,750

351,118
78,663

304,271

417,110（第6期）

280,287

280,661

2015.52015.5(7th Period)

2015.112015.11(8th Period)

（第7期）

（第8期）

294,719295,200

2016.52016.5(9th Period)

2016.112016.11(10th Period)（第9期）（第10期）(Note) To reflect the 2-for-1 split of investment units as of October 1, 2015 as the effective date, the figures of NAV per unit before the 8th period are shown as half of actual value.

2017.52017.112017.52017.11(11th Period) (12th Period)（第11期）（第12期）

2018.52018.52018.112018.11(13th Period) (14th Period)（第13期）（第14期）

4. Other

Distribution of Unitholders and IR Activities

23

1. Distribution of Unitholders by # of Unitholders and # of Units
End of Nov. 2018 (the 14th Period)# ofunitholders

Ratio

# of
units

End of May 2018 (the 13th Period)# ofunitholders

Ratio

Ratio

# of
units

Name
Ratio

Individual,
other

6,304

91.2%

26,101

3.7%

6,559

91.6%

26,170

3.8%

Financial
institution

189

2.7%

417,331

59.7%

183

2.6%

428,770

61.4%

149

2.2%

68,936

9.9%

147

2.1%

69,118

9.9%

252

3.6%

172,330

24.7%

255

3.6%

164,309

23.5%

Other
domestic
company
Foreigninstitution,
other
Securities
company

16

0.2%

14,006

2.0％

18

0.3%

10,337

1.5％

Total

6,910

100％

698,704

100%

7,162

100％

698,704100%

Foreigninstitution, other

Other domestic
company

252 (3.6%)

149 (2.2%）
Financial
institution

Securities
company
16 (0.2%)

By
Unitholder

189 (2.7%)

Securities
Individual, othercompany
26,101
14,006（3.7%）（2.0%）
Foreigninstitution,
otherBy
172,330
Investment（24.7%）
unit

6,910

698,704
Other domestic
company
68,936（9.9%）

Individual, other6,304 (91.2%)

Financial
institution
417,331（59.7%）

3. IR activities

Seminars for individual investorsscheduled in 2019 and onwards
Visited Asia, North America and Europe in■Caravan and others
addition to internal Japan for communication ofFeb. 8 Seminar by ARES in Yamaguchi
results of the period ended May 2018, as first IR Feb. 13 Caravan in Tokyo by Daiwa
activities of new management team, and API
Apr. 25 Daiwa J-REIT Caravan in
Fukuokaintends to continue constructive IR activities
Total
151
meetings orconference calls
or seminars

Domestic

Oversea95

52

meetings orconference calls

meetings orconference calls

2. Top 10 Unitholders

Individual
4
seminars(346 pers.)■Seminar in security company’s branch
Feb. 18 Mizuho Machida branchMar. 13 Nikko Okayama branchMar. 27 Daiwa Shibuya branch …etc.

Investment
units

Ratio
(%)

1.

Japan Trustee Services Bank, Ltd.
(Trust accounts)

129,161

18.5

2.

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

111,255

15.9

3. Tokyu Land Corporation

61,913

8.9

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

28,691

4.1

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

22,646

3.2

6. SSBTC CLIENT OMNIBUS ACCOUNT

12,711

1.8

11,100

1.6

8. THE BANK OF NEW YORK 133970

10,246

1.5

9. State Street Bank West Client Treaty 505234

8,160

1.2

10. State Street Bank & Trust Company 505012

7,693

1.2

403,57657.8

7.

Mitsubishi UFJ Morgan Stanley Securities Co.,
Ltd.

Total

5. Acquisition Highlights

External Growth ~Properties Acquired in the 15th Period (Tokyu Plaza Ginza (Land))~
UR-16

Tokyu Plaza Ginza (Land) (30% co-ownership interest)24

Unconventional tenant composition balancing tradition
and innovation

FlagshipRF

KIRIKO TERRACE

Prime location

11F

Restaurant

Sponsor developed

10F

First-in-Japan: 11 stores

New style shop: 38 stores

THE APOLLOLOTTE Duty Free Shop

Modern Greek restaurant
from Sydney

Largest airport-style duty freeshop in Tokyo

BALLY

TWG Tea

Flagship store of major Swiss
luxury jewelry brandAn international
high grade tea brand

9F

Duty free shop

KIRIKOLOUNGE

8F
7F
6F

Fashion, cafes, clothing,
lifestyle goods
Tokyu Hands

5F
4F

Fashion, cafes,
clothing,
lifestyle goods

Tokyu
Department
Store

3F
2F

Flagship stores
1F
B1F

MARCHE
B2F

Directly connected to Ginza Station (Tokyo Metro)

Sponsor Group’s tenants creating and transmitting new culture(New-style shop by Tokyu Hands)(New-style shop by Tokyu Department store)“Brand-New SelectStore in Ginza”“Into, Hands”

Creative interior suitable for Ginza, a center for new culture

Five cultural zones (wa(和), miyako (都), chi (知),bi (美), and syoku (食))built on the concept of‘linking cultures,
generating culture’

Creative space that stays fresh for visitors, with an interior complementing the cut glass exterior anddesigned in consideration of inbound tourists



Holding scheme with an eye
to long-term growth
KIRIKO TERRACE
WATER SIDEKIRIKO TERRACE
GREEN SIDEKIRIKO LOUNGE

1 Ginza: A global prime area

Leading, highly competitive commercial areawith numerous global brands

2 Rare location facing Sukiyabashi
Intersection

Located at the corner of the Sukiyabashi
Intersection, which has an overwhelming
amount of foot traffic even for the Ginza area

Sukiyabashisabo

B2F entrance plaza

Location

Ginza, Chuo, Tokyo

Access1 minute walk from Ginza Station on
the Tokyo Metro Marunouchi Lineand others (directly connected)

Acquisition price¥37,500mn

Appraisal value¥39,000mn

vs. appraisal
value
Forecast/Appraisal NOI yield
Occupancy rate

Acquisition scheme in partnershipwith the Sponsor GroupWill acquire land (30% co-ownership interest)and obtain the priority negotiation right forthe building and remaining co-ownership ofthe land
Seeking property growth through coownership with the Sponsor Group

96.2%

Long-term stable lease

3.1%/2.5%

100% (as of Jan. 10, 2019)Will conclude a 70-year term land leaseagreement
To address the risk of increased costs bylinking rent to property taxes and other taxes

Offers ‘new adult fashion’with a lineup of the finest
items selected both insideand outside Japan by themost discerning buyers

Tokyu Land Corporation’s‘Tokyu Plaza’ commercial
property brandCommercial facilities serving as city landmarks,
adding high quality to the day-to-day

Tokyu Plaza Omotesando
Harajuku

Tokyu Plaza Ginza

Tokyu Plaza
KamataTokyu Plaza Akasaka

Tokyu Plaza
Totsuka

Tokyu Plaza
Shinnagata(Note) We have no plans at present to acquire the remaining co-ownership trust beneficiaryinterests in Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka and Tokyu Plaza Ginza,
and trust beneficiary interests in Tokyu Plaza Kamata, Tokyu Plaza Totsuka, and Tokyu Plaza
Shinnagata

5. Acquisition Highlights

External Growth ~Properties Acquired in the 15th Period (Q plaza HARAJUKU)~
UR-17

Q plaza HARAJUKU (60% co-ownership interest)
traffic between Harajuku
Greater Shibuya Area
1 Heavy
and Shibuya
Upside potential

 10 minute walk from Shibuya Station, the area is bustling withSponsor developed Heavy foot traffic between the property and Cat Street, a busy

25

Area connecting Shibuya and Harajuku
Meiji Street
 In addition to traditional retail properties, otherfacilities such as sports brands, showrooms, andshared workspaces have been rolling out

people going back and forth between Harajuku and Shibuya
commercial area running along the east side of Meiji Street

10 min. walkStreet: Growth potential
2 Meijifrom development

from
Shibuya Station

 With the opening of WeWork in August 2018,which offers

shared offices, the area will continue to receive muchattention

Cat Street

 A construction project is underway at the Miyashita Park

Intersection, which is to the south of the property, and at
Jingumae Intersection, which is to the north of the property

 Area with diverse values and several unique
fashion and design shops
 A growing number of retailers as well as
first-in-Japan sweet shops and othereateries

3 Diverse entertainment-related tenants Tenants include a new wedding chapel and restaurants, andvarious other eateries The area is a foremost source of trends in Japan and, going

forward, is expected to serve as an area for showrooms andpromotional spaces

Location

Jingumae, Shibuya, Tokyo

Access2-minute walk from Meiji-jingumae<Harajuku> Station on the Tokyo Metro
Chiyoda and Fukutoshin Lines

Acquisition price¥13,200mn

Appraisal value
vs. appraisal value¥13,300mn
99.2%

Forecast /Appraisal NOI yield

3.1%/3.1%

Occupancy rate

95.2% (as of Nov. 30, 2018)

Completion date

March 2015

Major nearby redevelopment projects

Usage

Unique appearance and diverse tenant composition suitable for the area

Tenant mix with stability and popularity

Appealing tenants on each floor
11F

Dining bar

10F
9F

Restaurant

7F

Entertainment cafe

6F

Beauty salon

5F

School

4F(Vacant as of Nov. 30, 2018)

3F

Cafe and restaurant

1F
B1F

Wedding45%

Restaurant

8F

2F

Fashion18%

神泉駅

Fashion, flower shop, cafe
Beauty & healthServices
13%

Tenants by
type

1-3 years
10%

Fixed
rent
100%

More than
10 years
44%(Based on leased area)
Terrace
Terrace

Wedding salon

3-5 years
29%

Wedding

Newsy tenantsEntertainment cafe for fans of music,
animation, games, etc. to gather andcommunicate

 2015 Good Design Award recipient

View from
Harajuku side

Retail, hotel,
integrated park

Gross floor area

Approx. 22,000 m2

Approx. 47,000 m2

Completion date

FY2022(scheduled)

March 2020(scheduled)

Prime area with high property values and various new tenants
Ratio of numbers of new
エリア別新規出店割合
store openings by area

Shinjuku
18%
Ginza
17%
Shibuya14%

Exterior design with excellent visibility

View from
Shibuya sideStores, public interest facilities,
substation facilities, parking

1F retail rents in the Harajuku,
Omotesando, Aoyama area

Tokyu Land Corporation’s ‘Q plaza’commercial property brand(¥/tsubo)(Based on leased area)
眺望を生かした空間

Popular US hair salon
First shop in Japan②Miyashita Park
Redevelopment Project(Note) We have no plans at present to acquire the above properties

5-10 years
17%

Cafe and restaurant
24%
Terrace
Party &
weddingAve.
remaining
period
6.9yrs①Jingumae 6-chome urban area
Redevelopment Project(Jingumae 6-chome Project)

Largest wedding
chapel in the area

表参道・
原宿
Omotesando/
Harajuku

51%

Jingumae 6-chome,
Shibuya ward
(where Q plaza HARAJUKU)
is located)
Jingumae 1-chome,
Shibuya ward
(Around
La Foret Harajuku)
Kita Aoyama 3-chome,
Minato ward
(Around Ao
Building)
Minami Aoyama 5-chome,
Minato ward
(Around Avex
Building)
Jingumae 4-chome,
Shibuya ward
(Around Omotesando Hills)

Urban Retail Properties with shops
suitable for unique city areas

HARAJUKUEBISUSHINSAIBASHIFUTAKOTAMAGAWAIKEBUKURO(Scheduled toopen in July 2019)(Note) We have no plans at present to acquire the remaining co-ownershiptrust beneficiary interest in Q plaza HARAJUKU, and trust beneficiaryinterests in Q plaza FUTAKOTAMAGAWA and Q Plaza IKEBUKURO

5. Acquisition Highlights

External Growth ~Properties Acquired in the 15th Period (EDGE Shinsaibashi)~
AA-13

Short supply of offices in Shinsaibashi

EDGE Shinsaibashi
Prime location
Upside potential

Sponsor sourced

26

Vacancy rate in the Shinsaibashi/Namba area
remains at a low level

1 Continuously evolving Shinsaibashi area

20
15
10
5
0

The area continues to evolve as many flagshipstores of global luxury brands have been opening
Shinsaibashi is one of the leading areas in Japan interms of rising official land prices(thousandof tsubo)

With a standard floor area of 374 tsubo, theproperty has an excellent competitive edge in
Shinsaibashi in terms of scale
Convenient location with access to 6 train stations
and 8 lines

The simulated market-to-actual rent gap of the officespace is large, and we are pursuing upside in rent

We also aim to increase rent in the retail space upon
future rent revision or tenant replacement

2.6%



2010

2012

2014

60

Forecast

Shinsaibashi/Namba Office rent is at relatively high level（thousand yen/tsubo）

18
16
14
12
10
8
0
2008
2008年

Umeda
梅田
Yodoyabashi/
淀屋橋・本町
Honmachi

14.9
11.9
11.1
10.3

4-minute walk from Shinsaibashi Stationand 5-minute walk from Namba Station(Osaka Metro Midosuji Line etc.)

Acquisition price¥19,800mn

Upside potential of the property

Appraisal value
vs. appraisal value
Forecast/Appraisal
NOI yield
Occupancy rate
Completion date

¥20,000mn
99.0%

The office space has a higher simulated marketto-actual Rent Gap than Tokyo Offices

3.7%/4.0%

2010
2010年

2012
2012年

Average rent
(office space)¥12,304

95.5% (as of Nov. 30, 2018)
April 1986

WeddingRent gap
18%

Growth Rate of Inbound Tourism to Japan(Compared the number of foreign tourists in 2011 and in 2016)

0

Prime area with high property values andvarious new tenants

Exterior

Midosuji Boulevard

10F
9F

Shinsaibashi-suji

7F
6F

心斎橋東急ビル
A bustling
shopping arcade

5F

Americamura

4F
3F

1F

Fashion

B1F

Restaurants and cafes

Entrance hall
Entrance hall

Elevator interior
Elevator hall

2016
2016年

2018
2018年

Assumed market
rent¥14,500

10

20

30

40



Shinsaibashi official land prices(thousand yen/m2)

10,000

Japan

8,000

Iceland

6,000

Chile
Korea

Main street lined with brand stores

A unique and trendy hub＋87％
vs. 2013

4,000
Osaka: 42.9%
Tokyo: 26.2%

2,000
0

Portugal
Poltugal(Note) Created by API based on “International tourism, number ofarrivals”(World Bank Group), “Survey of number of tourists
etc. in Tokyo”(Tokyo) and “Changes in number of arrival
overseas guests”(OSAKA CONVENTION & TOURISM BUREAU)

Entrance
Offices

2F

2014
2014年

Rise in published land prices andincreased inbound tourism

Office floor
Elevator hall

11F

8F

新大阪

AccessSectional view

12F

Shinsaibashi
心斎橋・難波Shinosaka

Nishi Shinsaibashi, Chuo, Osaka, Osaka(%)

Standard floor area
374 tsubo

Obic
Midosuji
Bldg.

0“IWC SCHAFFHAUSEN” and “TOMORROWLAND” (1F shops)

13F

since 2018 August,17 thousands tsubo

Location

1F
Elevator hall

14F

2018

Namba
SkyO

20

Increased value through renovation(in 2016 & 2017)

Floor plan

2016

Forecasted supply of Osaka office buildings is limited

40

3 Pursuing upside potential in rent incomeAugust 20182008

and convenient property facing
2 UniqueMidosuji Blvd.
(%) 25(Note) Created by API based on official
land prices announced by Land
Appraisal Committee of the MLIT

Redevelopment projects in the Shinsaibashi area
Opening date
Usage
Area
(Plan)
Daimaru(1) Shinsaibashi
Fall 2019
Retail approx. 66,000m2
Main building(2) Osaka M Project

November 2019 Retailapprox. 4,000m2

Hotel Royal-Classic Osaka

October 2019

approx. 26,000m2

HotelAppendix

6. Appendix

Portfolio Map

28

6. Appendix

Portfolio ~Urban Retail Properties~ (1/3)
Property name

Tokyu Plaza
Omotesando Harajuku (Note 1)

Tokyu Plaza Akasaka

Location

Jingu-mae, Shibuya-ku, Tokyo29
Q plaza EBISU

Kyoto Karasuma Parking
Building

A-FLAG AKASAKA

Kobe Kyu Kyoryuchi 25Bankan

Nagatacho, Chiyoda-ku, Tokyo

Ebisu, Shibuya-ku, Tokyo

Moto Honenji-cho, Nakagyo-ku,
KyoytoAkasaka, Minato-ku, Tokyo

Kyomachi, Chuo-ku, Kobe, Hyogo

AccessA 1-minute walk from Tokyo Metro
Chiyoda Line, Fukutoshin Line, “Meiji
Jingumae” Station

A 1-minute walk from Tokyo
Metro Ginza Line, Marunouchi
Line“Akasaka-mitsuke” Station
A 1-minute walk from Tokyo
Metro Yurakucho Line,
Hanzomon Line,
Namboku Line “Nagatacho”
StationA 1-minute walk from JR Yamanote
Line, Saikyo Line, Shonan-Shinjuku
Line/
Tokyo Metro Hibiya Line“Ebisu” Station

A 1-minute walk from Hankyu
Kyoto Line “Karasuma” Station
A 1-minute walk from subway
Karasuma Line “Shijo” Station

A 3-minute walk from Tokyo Metro
Chiyoda Line “Akasaka” Station
A 5-minute walk from Tokyo Metro
Ginza Line, Marunouchi Line
“Akasaka-mitsuke” Station

A 5-minute walk from Kobe subway
Kaigan Line “Kyu Kyoryuchi,
Daimarumae” Station
9-minute walk from JR Tokaido Line“Sannomiya” Station
A 9-minute walk

Acquisition price (A)¥45,000mn¥11,450mn¥8,430mn¥8,860mn¥3,000mn¥21,330mn

Appraisal value (B)¥45,200mn¥11,500mn¥8,770mn¥9,430mn¥3,150mn¥21,600mn

vs appraisal value (A/B)

99.6%

99.6%

96.1%

94.0%

95.2%

98.8%

6.2%

4.5%

4.8%

Appraisal NOI yield

3.9%(Note 1)

6.1%

4.5%

Structure

Steel framed, RC, SRC

SRC

Steel framed, RC

Steel framed

Steel framed, SRC

Steel framed, SRC

Number of floors

7 floors above and 2 floors
underground

14 floors above and 3 floors
underground

6 floors above and 1 floor
underground

9 floors above and 1 floor
underground

7 floors above and 1 floor
underground

18 floors above and 3 floors
underground

Gloss floor area (Note 2)

11,368.11m2(Total)

51,491.66m2(Total)

4,670.02m2

21,495.47m2

2,429.01㎡

27,010.67㎡

Total leasable area (Note 2)

4,999.87m2

16,609.75m2

4,024.88m2

21,616.04m2

2,280.22㎡

19,653.90㎡

Occupancy rate (Note 2)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%Key tenants (Note 2)

Baroque Japan Limited

Tokyu Hotels Co., Ltd.

Tokyu Sports Oasis Inc.

Times24 Co., Ltd.

-（undisclosed）

Plan Do See Inc.

Number of tenants (Note 2)30
 Located at the crossing of

Omotesando and Meiji Street, thecenter of Japan’s fashion culture Aiming to develop a “fashion

Key points of properties

theme park” that enables
customers to enjoy the latest
fashion and life-style themes inan environment full of greenery Many tenants have positioned
their shops in this building as
their flagship or prototype shop
considering the building’s
excellent location and highvisibility

98
 The strong internationalflavor stems from the many
foreign companies andembassies in this area. The
Nagatacho and Kasumigaseki
areas are located behind thesite Located in the busy
commercial area of Tokyo
city-center, it has goodcommercial potential toattract diversified businesses
 Property is facing
Akasakamitsuke crossing
between Sotobori Dori andRoute 246, with high visibility

42

 Located in the Ebisu area which Located in the Shijo Karasuma

is, unlike Shibuya or
Daikanyama, well known as anarea for grown-up
 High-profile building located in
front of a station with a large
façade made of terracotta bars
and glass One of the few buildings withsignificant presence in the West
exit area of “Ebisu” station
where there are very few
large-sized retail properties

area, which is one of Kyoto’s
most prominent city centerareas
 Highly visible building with afaçade facing Karasuma Street,
it is a high-profile building with
an automated parking lot open
24 hours a day Highly important facility as itprovides parking space to retailcenters in the neighborhood
such as Daimaru Kyoto andTakashimaya Kyoto

8
 A 3-minute walking distancefrom Tokyo Metro Chiyoda Line
“Akasaka” Station, and isconvenient location wheremultiple stations and lines may
be used Facing “Hitotsugi Street”, thestreet with the heaviest foottraffic in Akasaka area whereconcentrates various
restaurants
 Leasing area is wide andenables versatile use suitingneeds of diverse tenants7 Located in Kobe, a port citywith long history, the area “KyuKyoryuchi” has various historicsites/buildings and is one of theleading commercial districts inWest Japan in terms of thenumber of visitors
 Kobe Luminarie takes place inDecember every year Tenants include Louis Vuitton
shop in the “Louis Vuitton
Maison” format offering a full
lineup Long-term lease of min. 5
years contributing to a stable
income(Note 1) Tokyu Plaza Omotesando Harajuku and Tokyu Akasaka are calculated based on the pro rata share of the co-ownership interests (75％ and 50％, respectively), except the gross floor area andnumber of tenants, which indicate the amount for the whole building.
(Note 2) Figures are provided as of Nov. 30, 2018 excluding Tokyu Plaza Ginza (Land)(as of Jan. 10, 2019). The same shall apply hereafter in the Portfolio pages.

6. Appendix

Portfolio ~Urban Retail Properties~ (2/3)

30Property name

A-FLAG SAPPORO

A-FLAG SHIBUYA

Q plaza SHINSAIBASHI

A-FLAG KOTTO DORI

A-FLAG BIJUTSUKAN
DORI

A-FLAG DAIKANYAMA
WEST

Location

Minami-Yonjo-Nishi, Chuo-ku,
Sapporo, Hokkaido

Udagawa-cho, Shibuya-ku, Tokyo

Shinsaibashisuji, Chuo-ku, Osakacity, Osaka

Minami-Aoyama, Tokyo

Minami-Aoyama, Tokyo

Sarugakucho, Shibuya-ku, Tokyo

A 4-minute walk from
“Omotesando” Station on theTokyo Metro

A 7-minute walk from
“Omotesando” Station on theTokyo Metro

A 4-minute walk from
“Daikanyama” Station on the
Tokyu Toyoko Line

AccessA 4-minute walk from Tokyo Metro
A 2-minute walk from Sapporo
Ginza Line, Hanzoumon Line,subway Nanbou Line “Susukino”
Fukutoshin Line/
A 1-minute walk from Osaka Metro
StationTokyu Denentoshi Line, Toyoko
Midosuji Line, Nagahori TsurumiA 8-minute walk from Sapporo
Line “Shibuya” Stationryokuchi Line “Shinsaibashi” Station
subwayA 6-minute walk from JR Yamanote
Toho Line “Hosui-susukino” Station Line, Saikyo Line, Shonan-Shinjuku
Line “Shibuya” Station

Acquisition price (A)¥4,410mn¥6,370mn¥13,350mn¥4,370mn¥4,700mn¥2,280mn

Appraisal value (B)¥4,800mn¥6,400mn¥13,400mn¥4,570mn¥4,740mn¥2,300mn

vs appraisal value (A/B)

91.9%

99.5%

99.6%

95.6%

99.2%

99.1%

Appraisal NOI yield

8.7%

4.9%

3.9％

4.3%

3.9%

4.0%

Structure

Steel framed, RC

RC

Steel framed, SRC, RC

Reinforced concrete

SRC, steel framed

SRC

Number of floors

12 floors above and 1 floor
underground

5 floors above and 1 floor
underground

8 floors above and 2 floors
underground

5 floors above and 2 floors
underground

2 floors above and 2 floors
underground

4 floors above and 2 floor
underground

Gross floor area

27,277.85㎡

3,340.70㎡

3,822.45㎡

3,358.28m2

2,221.98m2

4,036.27m2

Total leasable area

21,229.16㎡

3,417.70㎡

2,820.23㎡

2,656.53 ㎡

1,994.65 ㎡

2,579.08 ㎡

Occupancy rate

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%Key tenants

Tokyu Hotels Co., Ltd.

G.U. CO., LTD.

cocokara fine Inc.

AMAN CO., LTD.

BLUE NOTE JAPAN, INC.

- (undisclosed)

Number of tenants

17

2

6

7

4

Key points ofproperties

 Located in Susukuno, the most

 Located in Shibuya area, one Located in the front entrance

popular entertainment districtin Hokkaido and one of Japan’smajor tourist spots
 A retail property holding ahotel and restaurants withhigh visibility in a 2-minute
walk from “Susukino” Station
 Sapporo Snow Festival is held
every February in the cityof the major commercial
districts in Japan and the
fashion centers for "young
generations" An urban retail property in“Shibuya Center Street”,
designed to fit the district
feature attracting people all
day and night Club Quattro is a longestablished club, hosts live
music and has invited a varietyof artists from both Japan andabroad for over 25 years

of “Shinsaibashi”, the topcommercial area in WesternJapan Shinsaibashi has the ability to
attract customers ascommercial focal point withpassersby reaching about
98,000 people Conveniently located with a 1minute walk from Osaka Metro“Shinsaibashi” Station, directly
connecting to Crysta Nagahori

 A high versatile space able tomeet various commercial
needs ranging from smallscale units of approx. 6 tsubo
to large-scale units of approx.
130 tsubo Office spaces are equippedwith sufficiently highspecification facilities to meettenants’ needs and are highly
competitive in this area

 Located on Museum Street,connecting “Kotto Street” and“Miyuki Street”, where many
visitors stroll around Locationnear Nezu Museum, Taro
Okamoto Memorial Museum
and other cultural facilities Rare property in the fashionconscious
Omotesando/Minami-Aoyama
area, including unique tenants
such as Blue Note Tokyo and
DS STORE

1
 Located along “Hachiman

Street”, the main street of
Daikanyama area

 Very close to Daikanyama

crossing, center of the areawith sophisticated apparelshops, cafés and restaurants
scattered throughout
 Area draws visitors frombroader areas since theopening of large-scale retailproperties in 2011
 Elaborated design appeals totenants who prefer the highend image of the area

6. Appendix

Portfolio ~Urban Retail Properties~ (3/3)
Property name

A-FLAG KITA SHINSAIBASHI

Location

31

DECKS Tokyo Beach (Note)

Tokyu Plaza Ginza (Land) (Note)

Q plaza HARAJUKU (Note)

Senba, Chuo-ku, Osaka-city, Osaka

Daiba, Minato-ku, Tokyo

Ginza, Chuo-ku, Tokyo

Jingu-mae, Shibuya-ku, Tokyo

AccessA 3-minute walk from “Shinsaibashi”
Station on the Osaka Metro
Midosuji LineA 2-minute walk from “Odaibakaihinkoen”
Station on the Tokyo Waterfront
New Transit Waterfront LineA 5-minute walk from “Tokyo
Teleport” Station on the Tokyo
Waterfront Area Rapid Transit RinkaiLine

1-minute walk from “Ginza” Station on theTokyo Metro Marunouchi Line, Ginza Line,and Hibiya Line (directly
connected to the station)

2-minute walk from “Meiji-jingumae<Harajuku>” Station on the Tokyo
Metro Chiyoda Line and Fukutoshin Line

Acquisition price (A)¥4,725mn¥12,740mn¥37,500mn¥13,200mn

Appraisal value (B)¥4,770mn¥12,887mn¥39,000mn¥13,300mn

vs appraisal value (A/B)

99.1%

98.9%

96.2%

99.2%

Appraisal NOI yield

4.3%

4.4％

2.5%

3.1%

Structure

SRC, steel framed

Steel framed-

SRC, steel framed

Number of floors

7 floors above and 1 floor
underground

8 floors above-(Building A) 11 floors above and 2 floors
underground(Building B) 2 floors above and 1 floors
underground

Gross floor area

3,096.18㎡

67,506.91㎡-

7,667.27㎡

Total leasable area

2,536.75㎡

16,112.00㎡

1,130.04㎡

3,378.49㎡

Occupancy rate

100.0%

100.0%

100.0%

95.2%

Key tenants

PRESS Corporation Inc.

CA Sega Joypolis Ltd.

Sumitomo Mitsui Trust Bank, Limited

Take and Give Needs Co., Ltd

Number of tenants5

 Located next to “Odaiba-kaihinkoen”

 Facing the arcade of Shinsaibashisuji

 3rd floor with wood decks connected to“Shinsaibashi” Station

Key points of properties85

 Located at a 3-min walk from

North shopping street, a busy street
with many stores Standing on a highly visible corner Accessible directly to 2nd floor andunderground floor by stairs fromstreetlevel in addition to an elevator Diverse tenants meeting various dailyneeds such as fitness gym, live musicclub and cellular phone store

Stationneighbor commercial facilities andOdaiba Kaihin park “Hands-on experience” tenants such as“Tokyo Joypolis”, “LEGOLAND Discovery
Center Tokyo” and “Madame Tussauds
Tokyo”
 Offers a great view of the Rainbow
Bridge and illumination of Odaiba-kaihin
Park, attracting both overseas anddomestic tourists1 Located in Ginza, an high competitive

commercial area where many
international brands have their shops

 At the corner of Sukiyabashi Intersection

with very busy traffic even for Ginzaarea 70-year land lease contributing long-term stability15
 Located in an area bustling with people

going back and forth between Harajuku
and Shibuya
 Facing Meiji Street with growth potential
by development projects
 Includes 1st facility in Kanto region of a
wedding company and 1st restaurant inJapan of a food service provider(Note) DECKS Tokyo Beach, Tokyu Plaza Ginza (Land) and Q plaza HARAJUKU are calculated based on the pro rata share of the co-ownership interests (49％, 30% and 60％, respectively), except the grossfloor area and number of tenants, which indicate the amount for the whole building.

6. Appendix

Portfolio ～Tokyo Office Properties～ (1/3)

32Property name

TLC Ebisu Building

A-PLACE Ebisu Minami

A-PLACE Yoyogi

A-PLACE Aoyama

Luogo Shiodome

TAMACHI SQUARE (Land)

Location

Ebisu, Shibuya-ku,
TokyoEbisu-Minami, Shibuya-ku,
TokyoSendagaya, Shibuya-ku,
Tokyo

Kita-Aoyama, Minato-ku,
Tokyo

Higashi Shinbashi, Minato-ku,
TokyoShiba, Minato-ku,
Tokyo

AccessA 4-minute walk from
JR Yamanote Line, Saikyo Line,
Shonan-shinjuku Line"Ebisu" Station
A 6-minute walk from
Tokyo Metro Hibiya Line"Ebisu" Station

A 4-minute walk from
JR Yamanote Line, Saikyo Line,
Shonan-Shinjuku Line/
Tokyo Metro Hibiya Line"Ebisu" Station

A 3-minute walk from
JR Yamanote Line,
Chuo Line, Sobu Line/
Toei Oedo Line
"Yoyogi" Station

A 4-minute walk from
Tokyo Metro Ginza Line
"Gaienmae" Station

A 4-minute walk from
Toei Oedo Line/ Yurikamome"Shiodome" Station
A 5-minute walk from
JR Tokaido Line, Yamanote Line,
Keihin-Tohoku Line, Yokosuka
Line/ Tokyo Metro Ginza Line/
Toei Asakusa Line/ Yurikamome"Shinbashi" Station

A 2-minute walk from
Toei Asakusa Line, Mita Line
"Mita" Station
A 4-minute walk from
JR Yamanote Line,
Keihin-Tohoku Line
“Tamachi” Station

Acquisition price (A)¥7,400mn¥9,640mn¥4,070mn¥8,790mn¥4,540mn¥2,338mn

Appraisal value (B)¥7,420mn¥9,950mn¥4,180mn¥8,850mn¥4,570mn¥2,400mn

vs appraisal value (A/B)

99.7%

96.9%

97.4%

99.3%

99.3%

97.4%

Appraisal NOI yield

5.4%

4.9%

5.1%

5.0%

4.7%

4.7%

Structure

SRC

SRC

Steel framed

RC

Steel framed, RC-

Number of floors

9 floors above and 1 floor
underground

6 floors above and 1 floor
underground

10 floors above and 1 floor
underground

9 floors above and 1 floor
underground

11 floors above and 1 floor
underground-

Gross floor area

10,297.73m2

12,167.57m2

4,201.59m2

9,958.33m2

8,242.61m2-

Total leasable area

7,342.60m2

7,950.49m2

3,106.17m2

7,303.69m2

4,476.35m2

1,287.96m2

Occupancy rate

100.0%
 The building is in the highKey points of properties

profile area of Ebisu, which
has the highest concentrationof office buildings Compared with otherbuildings in the neighborhood,its large floor size of approx.
805m2 on standard floors
makes it highly competitive Large-scale renovations werecompleted in 2011, and thebuilding continues to be ahigh grade property

100.0%

100.0%

 Suited to the high traffic of Ebisu

 Highly visible building located onarea and high demand by IT
companies including softwaredevelopers, apparel companies,
as well as service providers suchas restaurants, beauty salonsand clinics and schools
 Large standard floor area ofapprox. 1,655 m2

the roadside of Meiji Street

 Approx. 346m2 astylar space on

one floor allows highly efficientspace usage

 Versatile rectangular building

shape equipped with sharedfacilities along the sides allows
partial leasing of the floor

100.0% Has strong competitive

advantages compared with theoffice buildings in theneighborhood due to its largesize Large-scale renovation of thebuilding including seismic
strengthening completed in2008 Above-ground ample parking
spaces provides an attractive
feature to companies including
apparel companies that need todeliver products and equipment

100.0%
 Located on the north side of

Shiodome Siosite‘s western
district, known as “Italy Town”
which has a high traffic
convenience Higher competitivenesscompared with other officeproperties in the neighborhood
due to its quakeabsorbing
structure Strong demand expected fromaffiliates and customers of thelarge corporations in other large
buildings around "Shiodome"
station100.0%
 Convenient location close tocenter of the city with a goodtraffic convenience with several
JR and Toei lines
 Area around “Tamachi” Station
is highly concentrated of large
companies because of easy
access to “Shinagawa” Station
providing Tokaido Shinkansen(bullet train), and to“Hamamatsu” Station providing
direct access to Haneda Airport
on JR Line

6. Appendix

Portfolio ～Tokyo Office Properties～ (2/3)

33Property name

A-PLACE Ikebukuro

A-PLACE Shinbashi

A-PLACE Gotanta

A-PLACE Shinagawa

OSAKI WIZTOWER(4-11th floors)

Shiodome Building (Note)

Location

Minami Ikebukuro, Toshima-ku,
Tokyo

Shinbashi, Minato-ku, Tokyo

Nishigotanda, Shinagawa-ku,
Tokyo

Konan, Minato-ku, Tokyo

Osaki, Shinagawa-ku, Tokyo

Kaigan, Minato-ku, Tokyo

AccessA 6-minute walk from
JR Yamanote Line, Saikyo Line,
Shonan-Shinjuku Line/ Tokyo
Metro Marunouchi Line,
Yurakucho Line, Fukutoshin Line/
Seibu Ikebukuro Line/ Tobu Tojo
Line
"Ikebukuro" Station

A 3-minute walk from JR TokaidoLine, Yamanote Line, KeihinTohoku
Line, Yokosuka Line/
Tokyo Metro Ginza Line/ Toei
Asakusa Line/ Yurikamome"Shinbashi" Station

A 3-minute walk from
Toei Asakusa Line
"Gotanda" station
A 4-minute walk from
JR Yamanote Line
"Gotanda" Station

A 4-minute walk from
JR Tokaido Shinkansen, TokaidoLine, Yamanote Line, KeihinTohoku
Line, Yokosuka Line/
Keikyu Main Line
"Shinagawa“ Station

A 4-minute walk from
JR Yamanote Line, Saikyo Line,
Shonan-Shinjuku Line/ Rinkai Line
"Osaki" Station

A 3-minute walk from JR Line“Hamamatsucho” Station
A 3-minute walk from Toei Oedo
Line/ Asakusa Line
“Daimon” Station

Acquisition price (A)¥3,990mn¥5,650mn¥5,730mn¥3,800mn¥10,690mn(sectional ownership)¥30,300mn / ¥20,400mn/ ¥20,900mn

Appraisal value (B)¥4,020mn¥5,780mn¥5,750mn¥3,800mn¥11,200mn(Sectional ownership)¥30,450mn / ¥20,700mn/ ¥21,100mn

vs appraisal value
(A/B)

99.3%

97.8%

99.7%

100.0%

95.4%

99.5％ / 98.6%/99.1%

Appraisal NOI yield

5.2%

5.1%

4.5%

4.6%

4.6%

4.2% / 4.1%/3.9%

Structure

Steel framed, RC

RC, SRC

RC, SRC

RC, SRC

RC, SRC

RC, SRC

Number of floors

7 floors above and 1 floor
underground

9 floors above and 2 floors
underground

10 floors above and 1 floor
underground

8 floors above and 1 floor
underground

25 floors above and 2 floors
underground (total)

24 floors above and 2 floors
underground

Gross floor area

4,709.05m2

7,143.97m2

5,782.65㎡

3,937.61㎡

54,363.84㎡(Total)

115,930.83㎡ (Total)

Total leasable area

3,409.73m2

5,052.14m2

4,028.69㎡

2,986.36㎡

7,193.28㎡(Sectional ownership)

28,136.05㎡

Occupancy rate

100.0%

98.7%

100.0%

100.0%

100.0%

 Located along Meiji Street enjoying

high visibility

 Further development of area is

Key points of properties

expected with redevelopment planof the land of former Toyoshima
ward municipal building and its
surrounding L-shaped floor with sharedfacilities along the sides offering alarge versatility

 Conveniently located with a 3-

minute walk from “Shinbashi”
Station serviced by JR, Tokyo
Metro Ginza Line, Toei Asakusa
Line and Yurikamome Line Can be expected various tenantneeds from different businesstypes and categories taking
advantage of traffic convenience Further development is expectedwith redevelopment plan of
Shinbashi East exit area
 Implemented renovation works of
2-5th floors in 2012-2013

 Good location with a 3-minute

walk from Toei Asakusa Line
“Gotanda” Station and 4-minute
walk from JR “Gotanda” Station
 An office building with a highprofile facade, developed by
Tokyu Land Corporation
 The relative new building isequipped with high-tech facilities
including 100mm-high freeaccess floors, individual air
conditioning units and gridceilings

 High traffic convenience located a

4-minute walk from “Shinagawa”
Station with easy access to major
areas in Tokyo by several JR lines
and Tokaido Shinkansen (bullet
train) and to Haneda Airport by
Keikyu Line Relatively compact rental areawith no pillars in the officespaces, allowing for efficient andversatile use of the floors
 Sufficient facility specification tomeet tenant needs equipped with
with individual OA floor and air
conditioner

100.0%

 High convenience with a 4-

 Well located close to Having BCP (Business Continuity

 Only a 3-minute walk from JR

minute walk from "Osaki“ Station
on JR Yamanote Line
Planning) facilities such as
emergency power generation
system enabling consecutive 48hour electric power supply in
addition to the newest
earthquake resistant structure(Note) Shiodome Building is calculated based on the pro rata share of the co-ownership interests (35％), except the gross floor area which indicates the amount for the whole building.

“Hamamatsucho” Station with ahigh visibility“Hamamatsucho” Station andToei “Daimon” Station with adirect access to Haneda Airportand major rail terminal stations
such as Tokyo and Shinagawa
 Possess a highly competitivenesswith standard office floor area ofmore than 1,000 tsubo, a rarity
in Tokyo market, also is capable
to divide the floor space which
responds a variety of tenantsneeds6. Appendix

Portfolio ～Tokyo Office Properties～ (3/3)

34Property name

A-PLACE Ebisu Higashi

A-PLACE Shibuya Konnoh

A-PLACE Gotanda Ekimae

A-PLACE Shinagawa Higashi

A-PLACE Shinbashi Ekimae

Location

Higashi, Shibuya-ku, Tokyo

Shibuya, Shibuya-ku, Tokyo

NishiGotanda, Shinagawa-ku,
Tokyo

Konan, Minato-ku, Tokyo

Shinbashi, Minato-ku, Tokyo

AccessA 6-minute walk from
JR Yamanote Line, Saikyo Line,
Shonan-Shinjuku Line/
Tokyo Metro Hibiya Line"Ebisu" Station

A 4-minute walk from
JR Yamanote Line
“Shibuya” station

A 1-minute walk from
JR Yamanote Line/
Toei Asakusa Line/
Tokyu Ikegami Line
“Gotanda” Station

A 7-minute walk from “Shinagawa”
station on the JR Yamanote Line,
Tokaido Shinkansen, Todaido Line,
Keihin-Tohoku Line and Yokosuka
Line, and the Keikyu Line

A 1-minute walk from “Shinbashi”
station on JR Tokaido Line,
Yamanote Line / Keihin-Tohoku
Line, Yokosuka Line / Tokyo Metro
Ginza Line, Toei Asakusa Line,
Yurikamome

Acquisition price (A)¥7,072mn¥4,810mn¥7,280mn¥18,800mn¥20,500mn

Appraisal value (B)¥7,160mn¥4,900mn¥7,390mn¥19,000mn¥22,500mn

vs appraisal value (A/B)

98.8%

98.2%

98.5%

98.9％

91.1%

Appraisal NOI yield

4.4%

4.4%

4.3％

4.2％

5.4%

Structure

SRC

RC, SRC

SRC

SRC

Steel framed, SRC

Number of floors

10 floors above and 2 floors
underground

8 floors above and 1 floor
underground

9 floors above and 1 floor
underground

8 floors above and 1 floor
underground

10 floors above and 1 floor
underground

Gross floor area

5,321.23m2

4,331.70m2

5,961.02㎡

21,114.32㎡

8,541.70m2

Total leasable area

4,010.69m2

2,995.72m2

4,316.89㎡

14,658.98㎡

6,484.57m2

Occupancy rate

100.0%
Great lighting and visibility as it
is located at the corner and along
the Meiji street which is 6-minute
walk from "Ebisu" station
 Well in appealing tenants interms of facilities following therenewal of entrance/restroom
and individualizing air
conditioner despite the age of 20
years Implemented a large-scalerenovation of external wall from2016 to 2017
Key points of properties

100.0%
 Southentranceof
ShibuyaStation is expected to be
developed with better
accessibility throughimprovement of Shibuya Stationand its surroundings as well as
redevelopment on such area It underwent large-scalerenovations from 2011 to 2012

100.0％
Just 1-minute walk from the JR
Yamanote Line “Gotanda”
Station Features a standard office floorarea of 148 tsubo with a ceilingheight of 2,600 mm, individual
air conditioning units, freeaccess floor, etc. The astylar
style rooms can be divided
which enables to address flexibly
the needs from tenants
 Addresses
a wide range ofdemands of tenants including
retail stores, owning tolocational rarity and highvisibility from the station

100.0％

100.0%

Excellent traffic links given theaccessibilitytotheTokaidoShinkansen (bullet train), alongwith several JR Lines, and directaccess to Haneda Airport via the
Keikyu Line The area is expected to develop
further with the prospective
opening of the Linear
Shinkansen (bullet train) Owns high competitivenessthanks to great specifications
with standard floor area ofapprox.687 tsubo and renewalworks

 A 1-minute walk from convenient“Shinbashi” station, one of thebusiest terminal stations in Japan Located in an area with diverse

properties, such as officebuildings, restaurants, apparelshops, and entertainment
facilities, including karaoke
facilities and bustle with visitors
to Ginza and office workers in thearea Large renovation works including
installation of entrance to officefloors completed in 2018
 Building has a standard floorarea of 205 tsubo and isequipped with a 3 meter-highceiling and individual air
conditioners

6. Appendix

Portfolio ～Activia Account properties～ (1/2)

35Property name

Amagsaki Q’s MALL (Land)

icot Nakamozu

icot Mizonokuchi

icot Tama Center

A-PLACE Kanayama

Osaka Nakanoshima Building

Location

Shioe, Amagasaki City, Hyogo

428-2 Nakamozucho 3-cho,
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

AccessA 2-minute walk from
JR Tokaido Main Line,
Fukuchiyama Line, Tozai Line
"Amagasaki" Station

A 6-minute walk from Osaka
Metro Midosuji Line
"Nakamozu" Station
A 6-minute walk from Nankai Koya
Line “Shirasagi” Station
A 8-minute walk from Nankai Koya
Line “Nakamozu” Station

A 13-minute walk from
Tokyu Denen Toshi Line/
Oimachi Line
"Takatsu" Station

A 4-minute walk from Keio
Sagamihara Line "Keio Tama
Center" Station
A 4-minute walk from Odakyu
Tama Line "Odakyu Tama Center"
StationA 4-minute walk from Tama Toshi
Monorail "Tama Center" Station

A 1-minute walk from
Nagoya Municipal Subway Meijo
Line/Meiko Line "Kanayama"
StationA 2-minute walk from
JR Chuo Line, Tokaido Line/
Meitetsu Nagoya Main Line
"Kanayama" Station

A 1-minute walk from
Keihan Nakanoshima Line
“Oebashi” Station
A 5-minute walk from
Osaka Municipal Subway Midosuji
Line “Yodoyabashi” Station

Acquisition price (A)¥12,000mn¥8,500mn¥2,710mn¥2,840mn(Sectional Ownership)¥6,980mn¥5,250mn / ¥5,850mn

Appraisal value (B)¥12,100mn¥8,880mn¥2,950mn¥2,990mn(Sectional Ownership)¥7,120mn¥5,800mn / ¥5,900mn

vs appraisal value (A/B)

99.2%

95.7%

91.9%

95.0%

98.0%

90.5%/99.2%

Appraisal NOI yield

5.0%

6.4%

6.7%

6.6%

5.6%

6.2%/5.5%

Structure-

Steel framed

Steel framed

RC

Steel framed, SRC

SRC

Number of floors-

3 floors above

4 floors above and 1 floor
underground

15 floors above and 1 floor
underground (total)

9 floors above and 1 floor
underground

15 floors above and 3 floors
underground

Gloss floor area-

27,408.34m2

14,032.05m2

31,553.75m2(total)

12,783.13m2

34,248.71m2

Total leasable area

27,465.44㎡

28,098.02m2

14,032.05m2

5,181.58m2(sectional ownership)

9,314.90m2

20,229.25m2

Occupancy rate

100.0%
Multi-tenant property that
represents Amagasaki city and isdirectly connected to the JR train
station. Its tenants include thelargest sports club and cinema
complex in the region also around
140 boutiques Stable income expected owningtothe 30-year term leasehold
agreement (land) for commercial
use with the leaseholderKey points of properties

100.0%
Located in Nakamozu area where
housing concentration is growing
steadily as it connects Osaka City
with Senboku New Town
 It is one of the No. 1
neighborhood shopping centers in
the nearby commercial area
 Stable income is expected due tothe 20-year fixed-term building
lease contracts with such coretenants

100.0%
Good access from the Tokyo city
center as property is facing thetrunk road and possessing apromising trade area
 Property presents one of the few
opportunities to major retailers
who want to open their shops
roadside.
 Stable income ensured by fixedterm leasing contracts with actual
tenant through 2023


100.0%High traffic convenience withaccess by Keio Sagamihara Lineand Odakyu Tama Line High concentration of residents inan area which is located in thecenter of Tama New Town,
property designed to be fully
integrated in the city is connectedwith a station and retail properties
by a pedestrian walkway

100.0%


Property is located in front of"Kanayama" Station which has
good access to "Nagoya" station
and Chubu International Airport.
The large standard floor size of
300 tsubo and its landmark
exterior ensures sufficientcompetitiveness in the area

100.0%

The Nakanoshima area features
many office buildings, including
financial institutions andgovernment offices, such as the
Bank of Japan Osaka branch andthe Osaka City Hall, as well as
offices of major companies suchas The Asahi Shimbun Company
and Kansai Electric Power6. Appendix

Portfolio ～Activia Account～ (2/2)

36Property nameicot Omori

Market Square Sagamihara

Umeda Gate Tower(5-20th floors）

A-PLACE Bashamichi

Commercial Mall Hakata

EDGE Shinsaibashi

Location

Omorikita, Ota-ku, Tokyo

Shimokuzawa, Chuo-ku,
Sagamihara-city, Kanagawa

Tsurunocho, Kita-ku, Osaka, Osaka

Honcho, Naka-ku, Yokohama,
Kanagawa

Tokojimachi 2-chome, Hakata-ku,
Fukuoka-city, Fukuoka

Nishishinsaibashi, Chuo-ku,
Osaka-city, Osaka

AccessA 3-minute walk from
JR Keihitohoku Line
"Omori" Station

A 15-minute walk from JR
Sagamihara
Line“Minamihashimoto” Station

A 3-minute walk from “Umeda”
Station on the Hankyu Kyoto LineA 6-minute walk from “Umeda”
Station on the Osaka Metro Midosuji
LineA 7-minute walk from “Osaka”
Station on the JR Tokaido Main Line

A 1-minute walk from “Bashamichi”
Station on Minatomirai LineA 7-minute walk from “Kannai”
Station on JR Negishi LineA 16-minute walk from “Takeshita”
Station on the JR Kagoshima MainLine

4-minute walk from “Shinsaibashi”
Station and 5-minute walkfrom “Namba” Station on the Osaka
Metro Midosuji Line, etc.

Acquisition price (A)¥5,790mn¥4,820mn¥19,000mn(Sectional ownership)¥3,930mn¥6,100mn¥19,800mn

Appraisal value (B)¥5,810mn¥4,820mn¥19,600mn(Sectional ownership)¥4,350mn¥6,270mn¥20,000mn

vs appraisal value (A/B)

99.7%

100.0%

96.9％

90.3%

97.3%

99.0％

Appraisal NOI yield

5.1%

5.5%

4.3％

6.4％

5.0%

4.0％

Structure

RC, SRC

Steel framed

Steel framed, SRC

SRC

Steel framed

SRC, Reinforced concrete, SteelframedNumber of floors

7 floors above and 1 floor
underground

2 floors above

21 floors above and 1 floor
underground (total)

12 floors above and 2 floors
underground

3 floors above

14 floors above and 2 floors
underground

Gross floor area

7,040.95㎡

9,719.38㎡

22,003.14㎡ (total)

14,009.06㎡

13,848.76㎡

23,483.28㎡

15,152.42㎡

13,624.49㎡(sectional ownership)

9,775.50㎡

9,612.88㎡

15,950.45㎡

Total leasable area

6,209.79㎡

Occupancy rate

100.0%
A retail property located a 3minute walk from Omori Stationnear the rotary in front of thestation Deserved competitiveness as acommunity-based property close
to the station with tenants related
to commodity business Tenants a major sport clubequipped with a swimming poolwith 8 lanes and studios inapprox.1,200 tsuboKey points of property

100.0%
Newly opened in July 2014
 Tenants－a major homeelectronics retailer K's Denki, amajor supermarket chain OK
Store, and a well-known revolving
sushi chain Hamazushi－cater tothe needs of local area residents

100.0％
 Located in Umeda area, one ofleading business and commercial
districts in Osaka A large-scale office building

completed in 2010, with a grossfloor area of approx. 6,700 tsubo

 Equipped with the latest

specification such as 16-zone
individual air-conditioning systemand high-performance seismic
structural control system
 Standard office floor area ofapprox. 265 tsubo, the rental
space in rectangular shape withastylar structure dividable into up
to 8 spaces, addressing the needsof variety of tenants

100.0％
Located above“Bashamichi“ Station with a 1minute walk Concentration of government
administration offices including
Kanagawa Pref. Government’s
Office and Yokohama Second
Common Government Office, andYokohama i-Land TOWER in which
Urban Renaissance Agency sets
up its headquarter A multi-tenant office building witha standard floor area of 347
tsubo, reducing the risk of
vacancy

97.0%
Located in Hakata-ku, Fukuokacity, which has the largest
population growth rate among
Japan’s government-designatedcities Widely facing the Chikushi Street,a heavy traffic road with two lanesin each direction, the property ishighly visible and easily accessible
 A commercial facility attracting
crowds by various tenants
including nation-wide chains suchas TSUTAYA and UNIQLO

93.8%
Facing Midosuji Boulevard where Has an excellent competitivenesswith a standard floor area of 374
tsubo in Shinsaibashi area wheremiddle and small size offices
cumulate Renovation work of external andcommon area implemented from2016 to 2017 and building’s grade
improved6. Appendix

Appraisal Values of Properties37

Total appraisal value at the end of the 14th Period (ended Nov. 30, 2018) is up ¥6.7bn from the previous period withunrealized gain increased to ¥81.7bn due to decreased Cap Rate and improved account balance(in millions of yen)
Category

Property #Property nameAcquisition price Investment ratio(A)(%)

Book value at
end of Nov. 30(B)Appraisal value
As of May 31,
2018 (C)

Difference fromDifference from

As of Nov. 30,
2018 (D)Cap rate as of
Nov. 30, 2018previous periodacquisition price

UR-1

Tokyu Plaza Omotesando Harajuku (Note 1)

45,00010.4%

44,757

59,10061,200

2.7%

2,100

(D-A)
16,200UR-2

Tokyu Plaza Akasaka (Note 1)

11,4502.7%

11,74415,00015,500

4.0%

500

4,050

3,756

UR-3
UR-5

Q plaza EBISU
Kyoto Karasuma Parking Building

8,430
8,860

2.0%
2.1%

8,251
8,736

11,30011,00011,90011,000

3.2%
4.9%

600
0

3,470
2,140

3,649
2,264

UR-6
UR-7

A-FLAG AKASAKA
Kobe Kyu Kyoryuchi 25Bankan

3,000
21,330

0.7%
4.9%

3,070
20,7533,730
26,8003,750
26,900

3.5%
4.0%

20
100

750
5,570

680
6,147

UR-8

A-FLAG SAPPORO

4,410

1.0%

4,723

7,080

7,090

5.5%

10

2,680

2,367

UR-9
UR-10

A-FLAG SHIBUYA
Q plaza SHINSAIBASHI

6,370
13,350

1.5%
3.1%

6,358
13,437

7,430
14,6007,930
14,600

4.0%
3.6%

500
0

1,560
1,250

1,572
1,163

UR-11
UR-12

A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI

4,370
4,700

1.0%
1.1%

4,401
4,722

4,880
4,760

4,880
4,920

3.5%
3.6%

0
160

510
220

479
198

UR-13

A-FLAG DAIKANYAMA WEST

2,280

0.5%

2,345

2,340

2,340

3.9%

0

60

-5

UR-14
UR-15

A-FLAG KITA SHINSAIBASHIDECKS Tokyo Beach (Note 1)
subtotal

4,725
12,740

1.1%
3.0%

4,740
12,8874,740
12,887

3.9%
4.0%

0
0

15
147

TLC Ebisu Building

35.0%
1.7%

189,637
10,800

3.6%

3,990
500

38,622
3,400

TO-2

A-PLACE Ebisu Minami

9,640

2.2%

7,289
9,411

185,647
10,300-107-538,592TO-1

151,015
7,400

4,847
12,892
151,044

13,90014,600

3.5%

700

4,960

3,511
5,189

TO-3
TO-4

A-PLACE Yoyogi
A-PLACE Aoyama

4,070
8,790

0.9%
2.0%

3,907
8,615

4,710
9,970

4,710
10,100

3.9%
4.0%

0
130

640
1,310

803
1,485

TO-5

Luogo Shiodome

4,540

1.1%

4,256

6,220

6,220

3.6%

0

1,680

1,964

TO-6
TO-7

TAMACHI SQUARE (Land)(Note2)
A-PLACE Ikebukuro

2,338
3,990

0.5%
0.9%

2,362
3,757

2,770
5,020

2,830
5,120

3.6%
4.1%

60
100

492
1,130

468
1,363

TO-8
TO-9

A-PLACE Shinbashi
A-PLACE Gotanda

5,650
5,730

1.3%
1.3%

5,701
5,529

6,670
6,940

7,080
6,970

3.8%
3.7%

410
30

1,430
1,240

1,379
1,441

TO-10

A-PLACE Shinagawa

3,800

0.9%

3,787

4,300

4,400

3.6%

100

600

613

TO-11
TO-12

OSAKI WIZTOWER
Shiodome Building (Note 1)

10,69071,6002.5%
16.6%

10,713
71,141

14,60075,60014,60075,600

3.5%
3.4%

0
0

3,910
4,000

3,887
4,459

TO-13
TO-14

A-PLACE Ebisu Higashi
A-PLACE Shibuya Konnoh

7,072
4,810

1.6%
1.1%

7,112
4,970

7,700
5,350

7,700
5,350

3.7%
3.6%

0
0

628
540

588
380

TO-15

A-PLACE Gotanda Ekimae

7,280

1.7%

7,546

7,690

7,690

3.8%

0

410

144

TO-16
TO-17

A-PLACE Shinagawa Higashi
A-PLACE Shinbashi Ekimae
subtotal

18,80020,500

4.4%
4.8%

19,50020,30019,50020,500

3.9%
3.6%

0
200

700
0

Amagasaki Q's MALL (Land)

45.6%
2.8%

12,113

221,540
13,900223,770
13,900

4.3%

2,230
0

27,070
1,900

624
-421
27,869AA-1

196,700
12,00018,87620,921
195,900

AA-2

icot Nakamozu

8,500

2.0%

8,137

10,30010,500

5.0%

200

2,000

2,363

AA-4
AA-5

icot Mizonokuchi
icot Tama Center

2,710
2,840

0.6%
0.7%

2,629
2,645

3,230
3,890

3,170
3,880

5.5%
5.1%

-60
-10

460
1,040

541
1,235

AA-6

A-PLACE Kanayama

6,980

1.6%

6,377

8,530

8,550

5.1%

20

1,570

2,173

AA-7
AA-8

Osaka Nakanoshima Building
icot Omori

11,100
5,790

2.6%
1.3%

10,9705,674

14,1006,750

14,300
6,870

4.0%
4.4%

200
120

3,200
1,080

3,330
1,196

AA-9
AA-10

Market Square Sagamihara
Umeda Gate Tower

4,820
19,000

1.1%
4.4%

4,709
19,431

5,030
21,3005,020
21,300

5.3%
3.7%

-10
0

200
2,300

311
1,869

AA-11

A-PLACE Bashamichi

3,930

0.9%

4,012

4,500

4,500

4.9%

0

570

488

AA-12

Commercial Mall Hakata
subtotal

6,100
83,770

1.4%
19.4%

6,270
97,8006,290
98,280

4.8%
-

20
480

190
14,510431,485

100.0%

6,336
83,038429,984

504,987

511,687-

6,700

80,202-46
15,241
81,702

Total

(D-C)

Difference frombook value(D-B)
16,443

1,787(Note 1) Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach and Shiodome Building are calculated based on the pro rata share of co-ownership interest (75%, 50%, 49% and 35%, respectively).
(Note 2) The acquisition price for TAMACHI SQUARE (Land) represents the acquisition price of the land as of the acquisition date (June 13, 2012).

6. Appendix

Trends of Cap Rate (Note 1)
Category

Property#

Property nameAcquisition date38
AcquisitionAt
price (\mn) acquisition

2012.112013.52013.112014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11(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)

Tokyu Plaza Omotesando Harajuku(Note 2)
Tokyu Plaza Akasaka (Note 2)

2012/6/13

45,000

3.8%

3.7%

3.7%

3.6%

3.4%

3.3%

3.2%

3.1%

3.1%

3.0%

2.9%

2.8%

2.8%

2.7%

UR-2

2012/6/13

11,450

5.3%

5.3%

5.2%

5.1%

4.9%

4.8%

4.6%

4.5%

4.4%

4.3%

4.2%

4.1%

4.1%

4.0%

UR-3

Q plaza EBISU

2012/6/13

8,430

4.3%

4.3%

4.2%

4.2%

4.1%

4.0%

3.9%

3.8%

3.7%

3.6%

3.5%

3.4%

3.3%

3.2%

UR-5

Kyoto Karasuma Parking Building

2012/6/13

8,860

5.7%

5.7%

5.7%

5.6%

5.5%

5.4%

5.3%

5.2%

5.1%

5.0%

4.9%

4.9%

4.9%

4.9%

UR-6

A-FLAG AKASAKA

2013/8/30

3,000

4.3%

-

-

4.3%

4.2%

4.0%

3.9%

3.8%

3.8%

3.7%

3.7%

3.6%

3.6%

3.5%

UR-7

Kobe Kyu Kyoryuchi 25Bankan

2013/12/19

21,330

4.8%

-

-

-

4.7%

4.6%

4.5%

4.3%

4.2%

4.1%

4.1%

4.0%

4.0%

4.0%

UR-8

A-FLAG SAPPORO

2013/12/19

4,410

6.5%

-

-

-

6.2%

6.0%

6.0%

5.9%

5.8%

5.7%

5.6%

5.5%

5.5%

5.5%

UR-9

A-FLAG SHIBUYA

2013/12/19

6,370

4.8%

-

-

-

4.7%

4.5%

4.4%

4.3%

4.2%

4.1%

4.0%

4.0%

4.0%

4.0%

UR-10

Q plaza SHINSAIBASHI

2015/12/16

13,350

3.9%

-

-

-

-

-

-

-

3.9%

3.8%

3.7%

3.6%

3.6%

3.6%

UR-11

A-FLAG KOTTO DORI

2016/12/20

4,370

3.8%

-

-

-

-

-

-

-

-

-

3.6%

3.5%

3.5%

3.5%

UR-12

A-FLAG BIJUTSUKAN DORI

2016/12/2

4,700

3.8%

-

-

-

-

-

-

-

-

-

3.6%

3.6%

3.6%

3.6%

UR-13

A-FLAG DAIKANYAMA WEST

2017/1/6

2,280

4.1%

-

-

-

-

-

-

-

-

-

4.0%

3.9%

3.9%

3.9%

UR-14

A-FLAG KITA SHINSAIBASHI

2017/12/1

4,725

4.0%

-

-

-

-

-

-

-

-

-

-

-

4.0%

3.9%

UR-15

DECKS Tokyo Beach (Note 2)

2018/1/5

12,740

4.0%

-

-

-

-

-

-

-

-

-

-

-

4.0%

4.0%

TO-1

TLC Ebisu Building

2012/6/13

7,400

4.7%

4.7%

4.6%

4.6%

4.5%

4.3%

4.2%

4.1%

4.1%

4.0%

3.9%

3.8%

3.7%

3.6%

TO-2

A-PLACE Ebisu Minami

2012/6/13

9,640

4.6%

4.6%

4.5%

4.5%

4.4%

4.2%

4.1%

4.0%

4.0%

3.9%

3.8%

3.7%

3.6%

3.5%

TO-3

A-PLACE Yoyogi

2012/6/13

4,070

4.6%

4.6%

4.5%

4.6%

4.5%

4.5%

4.4%

4.3%

4.2%

4.1%

4.0%

3.9%

3.9%

3.9%

TO-4

A-PLACE Aoyama

2012/6/13

8,790

4.9%

4.9%

4.9%

4.8%

4.7%

4.6%

4.5%

4.4%

4.3%

4.2%

4.1%

4.0%

4.0%

4.0%

TO-5

Luogo Shiodome

2012/6/13

4,540

4.5%

4.5%

4.5%

4.4%

4.3%

4.2%

4.1%

4.0%

3.9%

3.8%

3.7%

3.6%

3.6%

3.6%

TO-6

TAMACHI SQUARE (Land)(Note3)

2012/6/13

2,338

4.4%

-

-

-

4.4%

4.3%

4.2%

4.1%

4.0%

3.9%

3.8%

3.7%

3.7%

3.6%

TO-7

A-PLACE Ikebukuro2012/6/13

3,990

5.1%

5.1%

5.0%

4.9%

4.9%

4.8%

4.6%

4.5%

4.5%

4.4%

4.3%

4.3%

4.2%

4.1%

TO-8

A-PLACE Shinbashi

2013/4/19

5,650

4.7%

-

4.6%

4.5%

4.4%

4.3%

4.2%

4.1%

4.1%

4.0%

3.9%

3.9%

3.9%

3.8%

TO-9

A-PLACE Gotanda

2014/1/10

5,730

4.4%

-

-

-

4.3%

4.3%

4.2%

4.1%

4.0%

3.9%

3.8%

3.7%

3.7%

3.7%

TO-10

A-PLACE Shinagawa

2014/1/10

3,800

4.4%

-

-

-

4.3%

4.2%

4.1%

4.0%

4.0%

3.9%

3.8%

3.8%

3.7%

3.6%

TO-11

OSAKI WIZTOWER

2014/6/24

10,690

4.3%

-

-

-

-

4.2%

4.1%

3.9%

3.8%

3.7%

3.6%

3.5%

3.5%

3.5%

2015/1/9

30,300

3.9%

-

-

-

-

-

3.8%

3.8%

2015/12/16

20,400

3.8%

-

-

-

-

-

-

-

3.7%

3.6%

3.5%

3.5%

3.4%

3.4%

2016/12/2

20,900

3.6%

-

-

-

-

-

-

-

-

-

UR-1

TO-12

Shiodome Building (Note 4)

TO-13

A-PLACE Ebisu Higashi

2015/7/29

7,072

4.1%

-

-

-

-

-

-

4.0%

4.0%

3.9%

3.8%

3.7%

3.7%

3.7%

TO-14

A-PLACE Shibuya Konnoh

2015/10/1

4,810

4.0%

-

-

-

-

-

-

4.0%

3.9%

3.8%

3.7%

3.6%

3.6%

3.6%

TO-15

A-PLACE Gotanda Ekimae

2016/7/1

7,280

4.1%

-

-

-

-

-

-

-

-

4.0%

3.9%

3.8%

3.8%

3.8%

TO-16

A-PLACE Shinagawa Higashi

2017/3/16

18,800

4.0%

-

-

-

-

-

-

-

-

-

4.0%

3.9%

3.9%

3.9%

TO-17

A-PLACE Shinbashi Ekimae (Note 5)

2012/6/13

20,500

4.9%

4.9%

4.9%

4.8%

4.8%

4.7%

4.6%

4.5%

4.5%

4.4%

4.4%

3.6%

3.6%

3.6%

AA-１

Amagasaki Q's MALL (Land)2012/6/13

12,000

5.0%

5.0%

5.0%

4.9%

4.8%

4.8%

4.8%

4.7%

4.6%

4.5%

4.4%

4.3%

4.3%

4.3%

AA-２

icot Nakamozu

2012/6/13

8,500

6.0%

6.0%

5.9%

5.8%

5.6%

5.5%

5.4%

5.3%

5.3%

5.2%

5.2%

5.2%

5.1%

5.0%

AA-４

icot Mizonokuchi

2012/6/13

2,710

6.0%

6.0%

6.0%

5.9%

5.8%

5.8%

5.7%

5.6%

5.5%

5.4%

5.4%

5.4%

5.4%

5.5%

AA-５

icot Tama Center

2012/6/13

2,840

6.2%

6.2%

6.2%

6.1%

6.0%

5.9%

5.8%

5.7%

5.6%

5.4%

5.3%

5.2%

5.1%

5.1%

AA-６

A-PLACE Kanayama

2012/6/13

6,980

5.3%

5.3%

5.2%

5.4%

5.4%

5.4%

5.4%

5.3%

5.2%

5.1%

5.1%

5.1%

5.1%

5.1%

AA-７

Osaka Nakanoshima
Building (Note 6)

2013/1/25

5,250

5.0%

-

5.0%

5.0%

4.9%

4.8%

2014/12/19

5,850

4.8%

-

-

-

-

-

4.6%

4.5%

4.5%

4.4%

4.3%

4.2%

4.1%

4.0%

AA-８

icot Omori

2013/12/19

5,790

5.1%

-

-

-

5.0%

4.9%

4.8%

4.7%

4.7%

4.7%

4.6%

4.5%

4.4%

4.4%

AA-９

Market Square Sagamihara

2015/1/9

4,820

5.6%

-

-

-

-

-

5.5%

5.4%

5.4%

5.3%

5.3%

5.3%

5.3%

5.3%

AA-10

Umeda Gate Tower

2016/9/21

19,000

4.0%

-

-

-

-

-

-

-

-

3.9%

3.8%

3.7%

3.7%

3.7%

AA-11

A-PLACE Bashamichi

2016/10/6

3,930

5.1%

-

-

-

-

-

-

-

-

5.0%

4.9%

4.9%

4.9%

4.9%

AA-12

Commercial Mall Hakata

2018/1/5

6,100

4.8%

-

-

-

-

-

-

-

-

-

-

-

4.8%

4.8%

(Note 1) Calculated based on direct capitalization method.
(Note 2) Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka and DECKS Tokyo Beach are calculated based on the pro rata share of the co-ownership interests (75%, 50% and 49%, respectively).
(Note 3) The acquisition price for TAMACHI SQUARE (Land) represents the acquisition price of the land as of the acquisition date (June 13, 2012).
(Note 4) Regarding Shiodome Building, the first row, the second row, and the third row represent the figures for the stake acquired on January 9, 2015, December 16, 2015 and December 2, 2016 (co-ownership of 15%, 10% and 10%,respectively).
(Note 5) Asset category and property name changed on June 1, 2018 from UR and Shinbashi Place, respectively.
(Note 6) Regarding Osaka Nakanoshima Building, the first row represents the figures for the stake acquired on January 25, 2013 and the second row represents the figures for the stake acquired on December 19, 2014 (co-ownership of
50% each).

6. Appendix

Portfolio Appraisal Values Status/PML (1/2)

39

42 properties (as of Nov. 30, 2018 (the end of 14th Period))
Category

Property #Property nameAcquisition

Investment

priceratio (%)

Appraisal
agency(Note 1)

(in millions of yen)
Capitalization value

Appraisalvalue

Directcapiralization
methodUR-1
UR-2

Tokyu Plaza Omotesando Harajuku(Note 3)Tokyu Plaza Akasaka(Note 3)(Note 4)

Capitalization
rate (%)

Discounted
cash flow
method45,0009.0%J61,20061,9502.7%

60,375

11,450

2.3%

T

15,50015,7004.0%

Discount rate
(%)

PML

Terminal
capitalization

NOI (Note 2)(%)

rate (%)

2.4%

2.8%

1,668

2.9

15,400

4.1%

4.2%

725

3.6

UR-3

Q plaza EBISU (Note 5)

8,430

1.7%

T

11,90012,0003.2%

11,8003.4％/3.3％

3.4%

384

5.7

UR-5

Kyoto Karasuma Parking Building

8,860

1.8%

D

11,000

11,1004.9%

11,000

4.9%

5.1%

555

2.4

UR-6

A-FLAG AKASAKA

3,000

0.6%

J

3,750

3,810

3.5%

3,680

3.3%

3.7%

138

6.4

UR-7

Kobe Kyu Kyoryuchi 25Bankan

21,3304.2%

J26,90027,3004.0%

26,500

3.8%

4.2%

1,097

2.6

UR-8

A-FLAG SAPPORO (Note 4)

4,410

0.9%

D

7,090

7,090

5.5%

7,090

5.3%

5.7%

463

0.3

UR-9

A-FLAG SHIBUYA

6,370

1.3%

D

7,930

7,940

4.0%

7,930

3.8%

4.2%

325

7.9

UR-10

Q plaza SHINSAIBASHI

13,3502.7%

V14,60014,5003.6%

14,600

3.4%

3.8%

523

6.9

UR-11

A-FLAG KOTTO DORI

4,370

0.9%

D

4,880

4,940

3.5%

4,850

3.2%

3.6%

180

6.4

UR-12

A-FLAG BIJUTSUKAN DORI

4,700

0.9%

J

4,920

5,000

3.6%

4,830

3.4%

3.8%

182

7.5

UR-13

A-FLAG DAIKANYAMA WEST

2,280

0.5%

V

2,340

2,390

3.9%

2,290

3.7%

4.1%

88

4.2

UR-14

A-FLAG KITA SHINSAIBASHI

4,725

0.9%

V

4,740

4,920

3.9%

4,680

3.6%

4.0%

194

5.4

UR-15

DECKS Tokyo Beach (Note 3)

12,7402.5%

M12,887

13,0834.0%

12,642

3.8%

4.2%

566

4.0

TO-1

TLC Ebisu Building

7,400

1.5%

T

10,800

11,1003.6%

10,700

3.7%

3.8%

445

6.5

TO-2

A-PLACE Ebisu Minami

9,640

1.9%

T

14,60014,7003.5%

14,600

3.6%

3.7%

528

8.0

TO-3

A-PLACE Yoyogi

4,070

0.8%

V

4,710

4,790

3.9%

4,630

3.7%

4.1%

191

5.1

TO-4

A-PLACE Aoyama (Note 4)

8,790

1.8%

D

10,10010,1004.0%

10,100

3.8%

4.2%

422

8.9

TO-5

Luogo Shiodome

4,540

0.9%

D

6,220

6,280

3.6%

6,190

3.4%

3.8%

236

2.7

TO-6

TAMACHI SQUARE (Land)

2,338

0.5%

T

2,830

2,960

3.6%

2,780

4.0%

3.8%

107

(Note 6) -TO-7

A-PLACE Ikebukuro

3,990

0.8%

J

5,120

5,200

4.1%

5,030

3.9%

4.3%

218

3.2

TO-8

A-PLACE Shinbashi

5,650

1.1%

J

7,080

7,220

3.8%

6,930

3.6%

4.0%

287

7.4

TO-9

A-PLACE Gotanda

5,730

1.1%

M

6,970

7,060

3.7%

6,870

3.5%

3.9%

262

6.1

TO-10

A-PLACE Shinagawa

3,800

0.8%

J

4,400

4,480

3.6%

4,320

3.4%

3.8%

166

4.9

TO-11

OSAKI WIZTOWER

10,6902.1%

D

14,60014,6003.5%

14,600

3.1%

3.5%

512

2.4

TO-12

Shiodome Building (Note 3)

71,60014.3%

M75,60079,4503.4%

73,850

3.2%

3.6%

2,720

2.6

(Note 1) Abbreviation represents each appraisal agency as follows J：Japan Real Estate Institute, T：The Tanizawa Sōgō Appraisal, D：Daiwa Real Estate Appraisal Corp., V：Japan Valuers, and M：JLL Morii Valuation & Appraisal K.K.
(Note 2) Calculated based on Direct capitalization method. The figures are rounded to million yen.
(Note 3) Tokyu Plaza Ginza Omotesando, Tokyu Plaza Akasaka, DECKS Tokyo Beach and Shiodome Building are calculated based on the pro rata base share of the respective co-ownership interests (75%, 50%, 49% and 35%, respectively).
(Note 4) Seismic strengthening works were conducted at Tokyu Plaza Akasaka, A-FLAG SAPPORO and A-PLACE Aoyama, in Apr. 2009, Jun. 2007 and Jul. 2008, respectively.
(Note 5) The discount rate for Q plaza Ebisu is 3.4% from the 1st to the 5th year and 3.3% from the 6th year onwards. (Note 6) Not listed as we own only the land for TAMACHI SQUARE (Land).

6. Appendix

Portfolio Appraisal Values Status/PML (2/2)

40(in millions of yen)

Category

Property #Property nameAcquisition

Investment

priceratio (%)

Appraisal
agency(Note 1)

Capitalization value
Appraisalvalue

Directcapiralization
methodCapitalization
rate (%)

Discounted
cash flow
methodDiscount rate
(%)

PML

Terminal
capitalization

NOI (Note 2)(%)

rate (%)

TO-13

A-PLACE Ebisu Higashi

7,072

1.4%

V

7,700

7,870

3.7%

7,530

3.5%

3.9%

295

5.2

TO-14

A-PLACE Shibuya Konnoh

4,810

1.0%

V

5,350

5,420

3.6%

5,270

3.3%

3.7%

201

4.3

TO-15

A-PLACE Gotanda Ekimae

7,280

1.5%

V

7,690

7,810

3.8%

7,570

3.5%

3.9%

301

7.7

TO-16

A-PLACE Shinagawa Higashi

18,8003.7%

M19,50019,7003.9%

19,200

3.7%

4.1%

787

4.3

TO-17

A-PLACE Shinbashi Ekimae

20,500

4.1%

D20,50021,1003.6%

20,300

3.3%

3.7%

755

6.8

AA-１

Amagasaki Q's MALL (Land)12,0002.4%

J13,90014,0004.3%

13,700

4.0%

4.5%

600

(Note 5) -AA-２

icot Nakamozu (Note 3)

8,500

1.7%

T

10,50010,7005.0%

10,4004.9%/5.0%/5.1%

5.2%

548

4.8

AA-４

icot Mizonokuchi

2,710

0.5%

M

3,170

3,240

5.5%

3,100

5.3%

5.9%

182

8.3

AA-５

icot Tama Center

2,840

0.6%

J

3,880

3,890

5.1%

3,870

4.7%

5.3%

201

1.8

AA-６

A-PLACE Kanayama

6,980

1.4%

V

8,550

8,690

5.1%

8,400

4.9%

5.3%

449

5.3

AA-７

Osaka Nakanoshima Building

11,1002.2%

J14,30014,5004.0%

14,100

3.8%

4.2%

657

7.9

AA-８

icot Omori

5,790

1.2%

J

6,870

6,940

4.4%

6,790

4.2%

4.6%

308

3.9

AA-９

Market Square Sagamihara

4,820

1.0%

V

5,020

5,040

5.3%

4,990

5.1%

5.5%

264

7.7

AA-10

Umeda Gate Tower

19,0003.8%

D21,30021,9003.7%

21,100

3.4%

3.8%

815

2.4

AA-11

A-PLACE Bashamichi

3,930

0.8%

M

4,500

4,600

4.9%

4,400

4.6%

5.1%

251

10.2

AA-12

Commercial Mall Hakata

6,100

1.2%

V

6,290

6,310

4.8%

6,270

4.5%

4.9%

306

1.9

431,48586.0%-

511,687

521,373-505,257--

20,102

2.3

Appraisal

Directcapitalization

NOI (Note 2)

Subtotal (existing 42 properties)

New assets (as of Jan. 17, 2019)
Category

Property #Property nameAcquisition

Investment

priceratio (%)

Appraisal
agency(Note 1)

Capitalization value
value

capiralization
methodCapitalization
rate (%)

Discounted
cash flow
methodDiscount rate
(%)

PML

Terminal(%)

rate (%)

UR-16

Tokyu Plaza Ginza (Land)(Note 4)

37,5007.5%

M39,00038,4002.6%

39,0002.5%(Note 6) -952

(Note 5) -UR-17

Q plaza HARAJUKU (Note 4)

13,2002.6%

V

13,30013,5003.0%

13,100

2.7%

3.1%

405

5.1

AA-13

EDGE SHINSAIBASHI

19,8003.9%

V20,00020,2003.8%

19,800

3.5%

3.9%

798

5.0

Subtotal (New assets)

70,50014.0%-

72,30072,100-71,900

-

-

2,155

-

Total

501,985100%-

583,987

593,473-

577,157--

22,257(Note 6)2.2(Note 1) Abbreviation represents each appraisal agency as follows J：Japan Real Estate Institute, T：The Tanizawa Sōgō Appraisal, D：Daiwa Real Estate Appraisal Corp., V：Japan Valuers, and M：Morii Appraisal & Investment Consulting.
(Note 2) Calculated based on Direct capitalization method. The figures are rounded to million yen. (Note 3) The discount rate for icot Nakamozu is 4.9% from 1st to 4th year, 5.0% from 5th to 9th year, and 5.1% from 10th year onwards.
(Note 4）Tokyu Plaza Ginza (Land) and Q plaza HARAJUKU are calculated based on the pro rata base share of the respective co-ownership interests (30% and 60%).
(Note 5) Not listed as we own only the land for Amagasaki Q’s MALL (Land) and Tokyu Plaza Ginza (Land).
(Note 6) Calculation is based on the seismic data derived from the “National Seismic Hazard Maps for Japan” publicized by the Headquarters for Earthquake Research Promotion, Ministry of Education, Culture, Sports, Science andTechnologies in Dec. 2012. The figures are rounded to the first decimal place. PML for the entire portfolio is based on the “Report of portfolio seismic PML analysis” as of Oct. 2018.

6. Appendix

API Portfolio Matrix (Asset Types × NOI Yield) as of Jan. 17, 2019
9.0%
8.8%

41

A-FLAG SAPPORO

8.0%
7.8%

7.0%
6.8%

6.0%
5.8%

5.0%
4.8%

Kyoto
Karasuma
Parking
Building

Tokyu Plaza
Akasaka

Q plaza
EBISU

Kobe Kyu Kyoryuchi
A-FLAG SHIBUYA 25Bankan
A-FLAGAKASAKA DECKSTokyo Beach
Tokyu Plaza
Q plaza
Omotesando
SHINSAIBASHI
Harajuku

A-FLAG
BIJUTSUKAN
A-FLAGDORIDAIKANYAMA
WEST

3.0%
2.8%

TAMACHISQUARE (Land)

A-FLAG KITASHINSAIBASHI

A-FLAG
KOTTO DORI

4.0%
3.8%

icot
Mizonokuchi

Q plaza
HARAJUKU

A-PLACE
Ebisu
MinamiA-PLACE
Shinbashi
A-PLACE
AoyamaTLC Ebisu
Building A-PLACE
Ikebukuro
A-PLACE Yoyogi
Luogo Shiodome

A-PLACE
ShibuyaKonnohicot
Tama Center

A-PLACE
Ebisu Higashi

Osaka
Nakanoshima
Building

A-PLACE
Shinbashi
EkimaeA-PLACE
Shinagawa

OSAKI WIZTOWER

A-PLACE
GotandaA-PLACE
Shiodome Gotanda
Building
EkimaeA-PLACE
Shinagawa
Higashi

icot
Omori

A-PLACE
Bashamichi

icot Nakamozu

A-PLACE Market Square
Kanayama Sagamihara

Commercial
Mall Hakata

Amagasaki
Q’s MALL (Land)

Umeda Gate Tower
EDGE
Shinsaibashi

Tokyu Plaza Ginza(Land)

2.0%
1.8%

Number of Properties：16
Appraisal NOI Yield：4.1%
Acquisition Price：¥201.7bn

Number of Properties：17
Appraisal NOI Yield：4.5%
Acquisition Price：¥196.7bn

Number of Properties：12
Appraisal NOI Yield：5.1%
Acquisition Price：¥103.6bn

Number of Properties：45, Appraisal NOI Yield：4.5%,
Acquisition Price：¥502.0bn

6. Appendix

Portfolio Summary (as of Jan 17, 2019)42

Overall portfolio

UR and TO
79%
Activia
Account
21%

Urban
Retail40%

Category
Tokyo Office
39%

Urban Retail properties

Other major
cities2%
Threemetropolitan
areas
28%
Area
6 central
Wards ofTokyo other wards ofTokyothan 668%
2%-5 yrs
20 yrs-

6%

34%
Age

5-10 yrs
23%

5-10mins

Other
major
cities
2%

Three
major
metropolitArea
an areas24%

10-20yrs
37%

2%

6 centralwards ofTokyo
74%

Walking
1-5minsdistancefrom
36% nearest
stationService
17%

Retail43%

OfficeEnd4%tenantFood
service industry
11%
-1min
62%

Hotel

Other

14%

11%

Portfolio
average17.3 yrs

Tokyo Office properties

Other wards
than 62%Area
6 central
wards
98%

5-10mins

-1min

15%

14%

Walking
distancefromneareststation
1-5mins
71%

Activia Account properties
Electricity,Realgas, etc.
estate
4%
7%
Other
1%

RetailFinance,insurance
8%Service

41%

31%

End
tenantindustry

Transportation,
telecom
15%

Wholesale,retail, foodservice15%

Category

Manufacturing

19%

Office59%(Note 1) Calculated based on the 45 properties including Tokyu Plaza Ginza (Land), Q plaza HARAJUKU and EDGE Shinsaibashi acquired on Jan. 10, 2019.
(Note 2) “6 central wards of Tokyo” refers to Shibuya ward, Minato ward, Chuo ward, Chiyoda ward, Shinjuku ward and Shinagawa ward.
(Note 3) Average of property age is calculated excluding the properties API owns only land.
(Note 4) Industrial distribution is based on annual rents as of Nov. 30, 2018.

Wards ofTokyo
Other othermajor than 6cities6%
6%
Area
Three major
metropolitan
areas

88%

10mins-1min
13%
21%
5Walking
10mins distance8%
fromnearesttrain
station 15mins
58%

6. Appendix

Balance Sheets ~the Period Ended Nov. 2018 (the 14th Period)~
13th Period
ended May 2018

14th Period
ended Nov. 2018

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipement
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipement in trust
Accumulated depreciation
Machinery and equipement in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust,Land in trust
Construction in progress in trust
Total property, pland and equipement
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Derivatives
Deffered tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

43
13th Period
ended May 2018

(in thousands of yen)
14th Period
ended Nov. 2018

Liabilities
9,498,104
3,116,967
645,833
455,470
47,6996,514
13,770,589

10,023,157
3,067,204
848,825
294,817
3,066
14,237,072

83,050,493(9,675,982)
73,374,511
689,748(150,438)
539,310
1,364,809(300,583)
1,064,225
183,401(82,287)
101,113346,689,270
421,768,431

83,354,620(10,879,394)
72,475,226
696,585(168,417)
528,167
1,390,538(330,343)
1,060,195
193,307(98,107)
95,200346,689,270
6,708
420,854,767

9,130,097
2,575
9,132,673

9,130,097
2,118
9,132,216

1,078,965
74,904
5
38,742
1,192,618
432,093,723

1,080,595
54,24518
38,322
1,173,181
431,160,166

77,584
77,58467,64567,645445,941,897

445,464,883

Current liabilities
Operating accounts payable
Short-term borrowings
Investment corporation bonds due within a year
Long-term borrowings to be repaid within a year
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings payable
Tenant leasehold and security deposits in trust
Other
Total non-current liabilities
Total liabilities

846,139
9,100,000
4,000,000
18,500,000
234,813809,070708
314,273
4,755
33,809,761

913,616
9,100,000
4,000,000
19,600,000
73,949902,125976
457,386
428,888566
35,477,509

14,000,000
153,750,000
20,604,450
6
188,354,456
222,164,217

14,000,000
152,650,000
19,494,916
2
186,144,918
221,622,427

217,091,520

217,091,520

6,611,254
6,611,254
223,702,774

6,696,690
6,696,690
223,788,210

74,90474,904
223,777,679
445,941,897

54,24554,245
223,842,455
445,464,883

Net assets
Unitholders' equity
Unitholders' capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders' equity
Valuation, translation, adjustments and others
Deffered gains or losses on hedges
Total valuation, translation, adjustments and others
Total net assets
Total liabilities and net assets

6. Appendix

Statement of Income ~the Period Ended Nov. 2018 (the 14th Period)~44(in thousands of yen)
Period ended May 2018 Period ended Nov. 2018(the 13th Period)
Operating revenue
Rent revenue-real estate
Other
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fee
Directors' compensations
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Interest on securities
Reversal of distribution payable
Interest on refund
Insurance income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Investment unit issuance expenses
Borrowing related expenses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes-current
Income taxes-deffered
Total income taxes
Profit before income taxes
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)(the 14th Period)

12,409,430
917,584
13,327,014

12,673,479
1,141,921
13,815,400

4,706,236
1,034,028
12,42732,131
3,300
67,522
5,855,645
7,471,369

5,076,357
1,077,918
12,63832,2483,300
66,403
6,268,867
7,546,533

81
908
990

55
830
409
149
1,443

615,51235,2359,546
46,468
153,550500
860,813
6,611,545
6,611,545
721
12
734
6,610,811
442
6,611,254

595,52237,9289,938
54,545
151,997500
850,432
6,697,544
6,697,544
984
(12)
971
6,696,573
117
6,696,690

6. Appendix

Occupancy Rate by Property

45

 The occupancy rate for the entire portfolio at the end of each period is maintained over 99% since IPO and records
99.9%, a persistently high level of occupancy, at the end of Nov. 2018 (the 14th Period)
Property #Property name

UR-1
UR-2
UR-3
UR-4
UR-5
UR-6
UR-7
UR-8
UR-9
UR-10
UR-11
UR-12
UR-13
UR-14
UR-15

Tokyu Plaza Omotesando Harajuku
Tokyu Plaza Akasaka
Q plaza EBISU
Shinbashi Place
Kyoto Karasuma Parking
A-FLAG AKASAKA
Kobe Kyu Kyoryuchi 25Bankan
A-FLAG SAPPORO
A-FLAG SHIBUYA
Q plaza SHINSAIBASHI
A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI
A-FLAG DAIKANYAMA WEST
A-FLAG KITA SHINSAIBASHIDECKS Tokyo Beach

Urban Retail properties average
TO-1
TO-2
TO-3
TO-4
TO-5
TO-6
TO-7
TO-8
TO-9
TO-10
TO-11
TO-12
TO-13
TO-14
TO-15
TO-16
TO-17

TLC Ebisu Building
A-PLACE Ebisu Minami
A-PLACE Yoyogi
A-PLACE Aoyama
Luogo Shiodome
TAMACHI SQUARE (Land)
A-PLACE Ikebukuro
A-PLACE Shinbashi
A-PLACE Gotanda
A-PLACE Shinagawa
OSAKI WIZTOWER
Shiodome Building
A-PLACE Ebisu Higashi
A-PLACE Shibuya Konnoh
A-PLACE Gotanda Ekimae
A-PLACE Shinagawa Higashi
A-PLACE Shinbashi Ekimae (Note 2)

Tokyo Office properties average
AA-1
AA-2
AA-4
AA-5
AA-6
AA-7
AA-8
AA-9
AA-10
AA-11
AA-12

Amagasaki Q's MALL (Land)
icot Nakamozu
icot Mizonokuchi
icot Tama Center
A-PLACE Kanayama
Osaka Nakanoshima Building
icot Omori
Market Square Sagamihara
Umeda Gate Tower
A-PLACE Bashamichi
Commercial Mall Hakata

Activia Account properties average
Total average occupancy rate

2012.112013.52013.112014.52014.112015.52015.112016.52016.112017.52017.112018.52018.11(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)

100.0%
98.5%
100.0%
100.0%
100.0%-

100.0%
98.7%
100.0%
100.0%
100.0%-

100.0%
98.9%
100.0%
100.0%
100.0%
84.2%-

100.0%
100.0%
100.0%
100.0%
100.0%
84.2%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
98.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
99.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.4%-

100.0%
100.0%
100.0%
100.0%
100.0%
74.1%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
90.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
99.7%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.4%
100.0%
100.0%
100.0%
100.0%
100.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.7%

99.5%

99.6%

99.1%

99.6%

100.0%

99.8%

100.0%

99.7%

99.4%

99.8%

100.0%

99.7%

100.0%

100.0%
100.0%
100.0%
86.7%
100.0%
100.0%
100.0%-

100.0%
96.1%
100.0%
100.0%
100.0%
100.0%
100.0%
84.6%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
88.4%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
98.7%
100.0%
100.0%
100.0%
98.2%
-

87.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
97.8%
100.0%
100.0%
100.0%
93.2%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
98.2%
100.0%
100.0%-

100.0%
100.0%
88.9%
100.0%
100.0%
100.0%
100.0%
100.0%
89.3%
100.0%
100.0%
99.4%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.7%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
99.9%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
98.7%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

97.4%

97.5%

98.6%

100.0%

100.0%

99.6%

97.5%

99.6%

98.9%

100.0%

99.9%

100.0%

99.9%

100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
99.6%-

100.0%
100.0%
100.0%
100.0%
98.6%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
97.3%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
98.2%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
97.9%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
97.9%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
93.6%
99.1%
-

100.0%
100.0%
100.0%
100.0%
100.0%
96.9%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%-

100.0%
100.0%
100.0%
100.0%
100.0%
98.4%
100.0%
100.0%
100.0%
100.0%
97.0%

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
97.0%

100.0%
99.4%

100.0%
99.4%

99.9%
99.4%

99.8%
99.8%

99.8%
99.9%

99.7%
99.7%

99.7%
99.2%

100.0%
99.8%

99.4%
99.3%

99.6%
99.8%

100.0%
100.0%

99.6%
99.8%

99.8%
99.9%

(Note 1) The occupancy rate refers to the share of the leased area to the total leasable area of each property at the end of month. The figures are rounded to the first decimal place.
(Note 2) Asset category and property name changed as of June 1, 2018 from UR and Shinbashi Place, respectively.

6. Appendix

10 Largest Tenants / Average Monthly Rents for TO Properties /Contract Period & Remaining Years
2. Average monthly rents for Tokyo Office Properties(incl. common service fee)

1. 10 largest tenants by leased area (Note 1)
End-tenant

1. Tokyu Hotels Co., Ltd.

Property name

Tokyu Plaza Akasaka(Note 3)

A-FLAG SAPPORO

Totalleasedarea(㎡)

30,183

Ratio ofleased
area
(%)

Lease
expiration(Note 4)(Note 2)

7.3

2021.107.2

2089.12074.52042.1Tokyu Plaza Ginza(Land)(Note3)
TAMACHI SQUARE(Land)
Amagasaki Q’s MALL
(Land)

29,883

3. Kohnan Shoji Co., Ltd.

icot Nakamozu

26,5296.4

2027.7

4. Times24 Co., Ltd.

Kyoto Karasuma
Parking
Building

21,224

5.1-

5. Plan・Do・See Inc.

Kobe Kyu Kyoryuchi
25Bankan

14,195

3.4-

6. Room’s-Taishodo

icot Mizonokuchi

14,0323.4

2023.7

7. K’S HOLDINGSCORPORATION

Market Square
Sagamihara

11,8642.92034.6

10,337

2.5-

2. Sumitomo Mitsui
Trust Bank, Limited

8. NTT Communications

Shiodome Building(Note 3)

9. YANMAR Co., Ltd.

Umeda Gate Tower

10. Swing Corporation

A-PLACE Shinagawa
Higashi46

Tokyo Office properties

Tokyo Office properties(at IPO) (Note)¥19,338¥19,556¥19,813(+2.5%)¥19,230（-2.9%）¥22,242(+15.7%)¥22,127（-0.5%）¥23,358(+5.6%)¥23,441（+0.4%）¥23,323(-0.5%)¥23,510(+0.8%)¥23,761(+1.1%)¥24,420(+2.8%)¥19,400（-0.8%）¥19,270（-0.7%）¥19,548（+1.4%）¥19,995（+2.3%）¥20,406（+2.1%）¥20,748（+1.7%）¥21,253（+2.4%）¥21,681（+2.0%）¥21,870（+0.9%）¥21,981（+0.5%）

Nov. 2013
4th Period
May 2014
5th Period
Nov. 2014
6th Period
May 2015
7th Period
Nov. 2015
8th Period
May 2016
9th Period
Nov. 2016
10th Period

May 2017
11th Period
Nov. 201712th Period
May 2018
13th Period
Nov. 2018
14th Period(Note) “Tokyo Office properties (at IPO)” refers to 6 properties: TLC Ebisu Building, A-PLACE EbisuMinami, A-PLACE Yoyogi, A-PLACE Aoyama, Luogo Shiodome and A-PLACE Ikebukuro

3. Contract period and remaining contract period

7,871
6,101

1.9
1.5

Urban
RetailTokyo
OfficeActivia
Account

Total

Contract Period (Year)

16.0(9.3)

4.3(3.6)

9.8(7.2)

10.1(6.5)

Remaining Contract
Period (Year)12.1(4.9)

2.7(2.1)

6.1(3.9)

7.1(3.5)

2020.4(Note 1) Based on the lease agreements as of Nov. 30, 2018 of 45 properties including Tokyu Plaza Ginza (Land),Q plaza HARAJUKU and EDGE Shinsaibashi, except for Tokyu Plaza Ginza (Land) which is based on leaseagreement as of Jan. 10, 2019.
(Note 2) The percentage of area for each end-tenant is the ratio to the total leased area of API’s portfolio,
rounded to the first decimal place.
(Note 3) Tokyu Plaza Akasaka, Tokyu Plaza Ginza (Land) and Shiodome Buidling are calculated based on the prorata share of the co-ownership interests (50%, 30% and 35%, respectively).
(Note 4) “-” denotes that the data is not disclosed due to no consent from tenants.

(Note 1) The figures in the parenthesis are excluding those of Tokyu Plaza Ginza (Land), TAMACHISQUARE (Land) and Amagasaki Q’s MALL (Land).
(Note 2) Based on the lease agreements as of Nov. 30, 2018 of 45 properties including Tokyu Plaza Ginza (Land),Q plaza HARAJUKU and EDGE Shinsaibashi, except for Tokyu Plaza Ginza (Land) which is based on leaseagreement as of Jan. 10, 2019.

(Note 3) The figures are based on rents.

6. Appendix

Overview of Lease, Profit and Loss for the Period Ended Nov. 2018 (the 14th Period) (1/3)

47(in thousands of yen)
Urban Retail properties
Tokyu Plaza
Omotesando
Harajuku(Note1)①Revenues related to rent
business
Rent revenuereal estate

Tokyu Plaza
Akasaka(Note1)Kyoto
Q plaza

Karasuma

A-FLAG

EBISU

Parking

AKASAKA

Kobe Kyu
Kyoryuchi
25Bankan

Building

A-FLAG

A-FLAGQ plaza

SAPPOROSHIBUYASHINSAIBASHI

A-FLAG

A-FLAG

A-FLAG

A-FLAG

KOTTO

BIJUTSUKANDAIKANYAMAKITADECKS Tokyo
Beach

DORI

DORI

WEST

SHINSAIBASHI(Note1)

1,101,047

656,253

275,165(Note2)

107,851

744,420

677,651

212,075

345,331

121,961

138,673(Note2)110,223

634,257

1,042,366

555,117240,238(Note2)82,542

661,670

598,387

203,514

327,406

115,831111,075(Note2)

99,584

496,049

58,680101,136

34,926(Note2)25,30982,75079,2638,560

17,924

6,129

27,597(Note2)

10,639138,208

245,679

261,684

64,77239,39636,348208,941

256,345

86,63949,11937,84857,24229,54825,565

270,485

88,301

82,621

17,143

3,737

11,277

77,767

121,267

40,48810,025

13,294

16,37912,101

5,639

106,462

33,06977,98828,909-13,67965,09071,542

6,238

14,867

6,789

8,975

300

10,350116,52459,08068,897

8,671

33,643

7,643

46,63424,363

11,057

14,347

13,0882,190

12,842

5,969

15

191

412

75

159

36

619

476

53

64

73

36

58

70

607

6,579

23,385

131

814

2,109

13,74025,35723,468

3,787

2,588

10,912

1,525

2,121

5,165

58,457

8,377

9,841

1,040

1,603

5,089

13,338

5,333

6,027

2,015

18,748

2,719

1,413

41,709855,367

394,569

210,392(Note2)

71,503

535,478

421,305

125,435

296,211

84,11281,430(Note2)84,658363,772

51,01438,99818,264

15,8108,066

120,626

64,841

7,838

15,794

4,909

6,574

2,684

4,628

21,789804,352

355,571

192,127(Note2)63,436414,852

356,463

117,596

280,417

79,20374,856(Note2)80,030341,982

Other leasebusiness
revenue②Expense related to rent business
Management
operation
expensesUtilities expenses
Tax and publicdues
Insurance
Repair andmaintenanceexpenses
Other expenses
related to rent

③NOI
(①－②)
④Depreciation and other (Note 4)
Income (loss) from rent
business (③-④)(Note 1) Tokyu Plaza Harajuku, Tokyu Plaza Akasaka and DECKS Tokyo Beach are calculated based on the pro-rata share of the co-ownership interests (75%, 50% and 49%, respectively).
(Note 2) Undisclosed due to no consent from tenants.
(Note 3) Loss on retirement of current assets is included.

6. Appendix

Overview of Lease, Profit and Loss for the Period Ended Nov. 2018 (the 14th Period) (2/3)

48(in thousands of yen)
Tokyo Office properties
TLC Ebisu
Building①Revenues related
to rent business
Rent revenuereal estate

A-PLACE
Ebisu
MinamiA-PLACE

A-PLACE

Luogo

YoyogiAoyamaShiodome

TamachiSquare(Land)A-PLACE

A-PLACE

A-PLACE

A-PLACE

OSAKI

Ikebukuro

Shinbashi

GotandaShinagawa

WIZTOWER

Shiodome

A-PLACE

A-PLACE

A-PLACE

A-PLACE

Building

Ebisu

ShibuyaGotandaShinagawa(Note1)

HigashiKonnohEkimaeHigashiA-PLACE
Shinbashi
Ekimae(Note2)

324,751

373,973

129,208

303,637

181,904

62,502(Note3)

199,410

180,660

116,430

349,446

1,534,740

175,164

115,557

179,102509,697

381,874

299,450

355,826

120,835

283,251

167,916

62,502(Note3)

184,740

167,660

109,035

325,455

1,447,964

165,077

109,595

168,117464,032

371,823

25,301

18,147

8,372

20,385

13,988-(Note3)

14,67012,9997,395

23,99086,775

10,087

5,962

10,98545,664

10,05084,77988,64638,32769,50952,983

8,968

33,943

53,102

41,67633,89898,867

380,446

43,97430,461

59,707

137,867

82,181

25,88827,471

12,554

19,156

12,411-

10,308

16,524

12,8909,292

57,640105,630

12,643

11,67817,65345,87319,02422,504

23,816

9,442

20,996

14,338-10,43814,076

11,6706,802

17,477

98,613

9,563

6,598

12,65638,941

14,793

16,872

31,058

10,253

21,795

18,2968,700

10,494

15,31014,107

10,813

21,821

115,146

13,831

9,469

18,07647,07934,311

193

247

83

181

158

-

84

132

106

71

304

916

100

76

116

463

155

10,260

2,034

1,037

3,276

5,284

-

818

1,947

1,251

4,462

-

34,504

5,949

345

4,453

2,206

6,403

9,060

4,018

4,955

4,102

2,494

267

1,799

5,110

1,649

2,456

1,623

25,633

1,887

2,293

6,750

3,303

7,492

239,971285,327

90,880234,127

128,92153,533(Note3)

146,308

138,984

82,532

250,579

1,154,293

131,189

85,096

119,394

371,830

299,692

41,59433,332

15,42923,751

27,176-

20,685

21,10026,844

8,697

48,275148,280

23,60912,906

12,29230,24552,170198,377

251,994

75,451

210,376

101,745

53,533(Note3)

125,207

112,13973,834

202,303

1,006,013

107,579

72,189107,101

341,585

247,521

Other leasebusiness
revenue②Expense related torent business
Management
operation
expensesUtilities
expensesTax and publicdues
Insurance
Repair andmaintenanceexpenses
Other expenses
related to rent

③NOI
(①－②)
④Depreciation andother (Note 4)
Income (loss) fromrent business (③④)(Note 1) Shiodome Building is calculated based on the pro-rata share of the co-ownership interest (35%).
(Note 2) Property name and asset category were changed as such as of Jun. 1, 2018 following replacement of tenants.
(Note 3) Undisclosed due to no consent from tenants.
(Note 4) Loss on retirement of current assets is included.

6. Appendix

Overview of Lease, Profit and Loss for the Period Ended Nov. 2018 (the 14th Period) (3/3)(in thousands of yen)(in thousands of yen)
Activia Account properties
Amagasaki

to rent business

Osaka

Marketicot
Mizonokuchi

356,759

311,402(Note1)147,018

292,745535,622239,961(Note1)

356,759

310,545(Note1)

135,589

264,023

502,820

202,377-856(Note1)

11,42828,72132,80256,402

41,663

14,21945,971

90,294

-

5,682

3,261

18,524-30-

56,13430,423-

A-PLACE

icot

Umeda Gate

A-PLACE

Commercial

Tower

Bashamichi

Mall Hakata

444,714

191,089

222,272(Note1)

407,845

169,053

174,895

37,584(Note1)36,86822,03647,377

195,076

65,86336,437

107,696

81,69864,89825,25756,636

11,24816,05936,55419,085

20,814

13,891

25,61348,27532,425

5,551

31,45724,18633,362

10,074

11,75325,80250,76812,515

13,841

34,135

16,814

-

235

100

145

252

749

94

132

365

293

174

-

2,801

-

452

10,53029,589

8,370

-

2,208

18,420

3,034

267

2,491

783

1,205

2,838

9,058

1,209

851

2,974

2,896

7,513

300,356

269,738(Note1)

101,046

202,450

340,545

174,098(Note1)

337,018

109,391

157,373-

34,6258,440

18,94451,74971,04517,50023,941

68,92429,031

14,734300,356

235,113(Note1)

82,102

150,701

269,500

156,598(Note1)

268,094

80,359142,638(Land)①Revenues related

icot

icot
Nakamozu

Q's MALL

Tama
CenterKanayama

Nakanoshima
Building

SquareOmori

Sagamihara

Rent
revenue-realestateOther leasebusiness
revenue②Expense related
to rent business
Management
operation
expensesUtilities
expensesTax andpublic dues
Insurance
Repair andmaintenanceexpenses
Other
expensesrelated to rent

③NOI
(①－②)
④Depreciation andother (Note 23)
Income (loss)
from rent
business (③-④)(Note 1) Undisclosed due to no consent from tenants.
(Note 2) Loss on retirement of current assets is included.

49

6. Appendix

Financial Highlights

50

Nov. 2013(4th
Period)May 2014(5th
Period)Nov. 2014(6th
Period)May 2015(7th
Period)Nov. 2015(8th
Period)May 2016(9th
Period)Nov. 2016(10th
Period)May 2017(11th
Period)Nov. 2017(12th
Period)May 2018(13th
Period)Revenue related torent business
Gain on sale of realestate properties
Revenue from leasing
business (including
gain on sale ofproperties)
Expenses related torent business
Management
operation
expenses

6,124

7,778

8,174

9,120

9,500

10,175

10,917

12,107

12,72013,327

13,815

14,432

15,041

-

-

-

-

200

-

-

-

-

-

-

338

341

6,124

7,778

8,174

9,120

9,701

10,175

10,917

12,107

12,72013,327

13,815

14,771

15,383

1,456

1,889

2,174

2,323

2,494

2,409

2,781

2,922

3,319

3,471

3,809

3,620

4,007

425

638

693

825

822

869

917

1,037

1,062

1,225

1,236

1,209

1,224

Utilities expenses

371

524

593

627

658

629

652

682

791

836

1,001

978

1,133

Tax and public
dues

433

457

575

578

643

649

772

778

887

895

988

997

1,087

5

7

7

8

6

7

7

8

9

8

8

9

9

71

114

142

118

202

78

231

197

304

235

281

132

236

150

146

161

165

161

175

201

217

264

269

292

292

315

4,668

5,889

6,000

6,796

7,006

7,766

8,135

9,185

9,400

9,855

10,006

10,812

11,033

NOI yield(%)

5.10

5.23

4.98

4.93

4.84

4.79

4.73

4.63

4.61

4.61

4.64

-

-

Depreciation and other

518

743

763

887

928

989

1,051

1,175

1,189

1,234

1,267

1,300

1,309

Income (loss) fromrent business
Loss on sales of realestate properties
Net operating income(including loss on
sales of real estate
properties)
General andadministrative
expenses

4,149

5,145

5,237

5,909

6,078

6,776

7,083

8,009

8,211

8,620

8,739

9,511

9,724

-

7

-

-

-

-

-

-

-

-

-

-

-

4,149

5,138

5,237

5,909

6,278

6,776

7,083

8,009

8,211

8,620

8,739

9,850

10,066

507

558

643

710

818

849

922

1,029

1,136

1,149

1,192

1,268

1,393

Operating profit

3,642

4,580

4,594

5,199

5,460

5,926

6,161

6,980

7,074

7,471

7,546

8,582

8,672

4

2

5

3

5

8

3

3

1

0

1

0

0

Non-operating
expenses

459

584

567

619

674

737

754

830

858

860

850

963

1,032

Ordinary profit

3,187

3,998

4,032

4,583

4,790

5,197

5,410

6,152

6,218

6,611

6,697

7,619

7,640

Net profit

3,186

3,997

4,031

4,582

4,789

5,196

5,409

6,151

6,217

6,610

6,696

7,618

7,639

(in millions of yen)

Insurance
Repair andmaintenanceexpenses
Other expenses
related to rent
business
NOI

Non-operating income

Nov. 2018
May 2019
Nov. 2019(14th(15th Period) (16th Period)
Period)(Forecast)(Forecast)6. Appendix

Unit Price Performance and Market Cap since IPO (Jun. 2012)

51
Jan. 11, 2019
Unit price: ¥435,500
TSE REIT index: 1,810pt
Market Cap: ¥335.9bn

Unit Price
時価総額（右軸）(left axis)(¥)
600,000

TSE REIT
東証REIT指数
index

500,000

Market Cap.
投資口価格
(right axis）

Nov 14, 2016
Launch of 4th PO

Nov 30, 2018
Launch of 6th PO

Nov 26, 2015
Launch of 3rd PO
550,000

450,000

400,000

Nov 28, 2017
Launch of 5th PO
Nov 27, 2014
Launch of 2nd PO

500,000(¥mn)

350,000

Nov 22, 2013
Launch of 1st PO

300,000

450,000

250,000
400,000
200,000
350,000
150,000
300,000
100,000
Jun.13, 2012
API: ¥221,750
TSE REIT index: 906pt
Market Cap.: ¥90.6bn

250,000

50,000200,000
2012年6月

2012.60
2012年12月

2012.112013年6月

2013.52013年11月

2013.112014年5月

2014.52014年11月

2014.112015年5月

2015.52015年11月

2015.112016年5月

2016.5(Note 1) The performance of TSE REIT index is indexed to API unit price as of June 13, 2012.
(Note 2) Adjusted for the 2-for-1 unit split effected as of October 1, 2015. Thus the figures before 7th are shown as half as the actual DPU.

2016年11月

2016.112017年5月

2017.52017年10月

2017.112018年4月

2018.52018年10月

2018.11

6. Appendix

API’s Position in J-REITs

52

AUM
（¥mn）
12,000
1,200
10,000
1,000
8,000
800

Market Cap.

No.10

10,000
1,000

（¥mn）

¥502.0bn

8,000
800

（Ave. ¥296.3bn）

6,000
600
4,000
400

4,000
400
2,000
200

2,000
200

0

0

LTV

60.0
50.0

¥340.5bn(Ave. ¥212.6bn)

6,000
600

（%）
70.0

No.12

44.8%
(Ave. 41.2%)

NAV multiple(fold)
1.3
1.2
1.1

1.04X
(Ave. 0.92x)

40.0
1.0
30.0
0.9

20.0

0.8

10.0
0.0

0.7

Distribution yield
（%）
7.0
6.0
5.0

4.44%
(Ave. 4.82%)

Ratio of unrealized gain
（%）
45.0
40.0
35.0

30.0

4.0

25.0

3.0

20.0

2.0
1.0

19.0%
(Ave. 15.1%)

15.0
10.0
5.0

0.0
0.0
（Note 1）The data were prepared based on the unit price of each REIT as of Dec. 28, 2018 and its disclosed information as of the same date. (Note 2) Only the data of API is calculated based on the figures from thefinancial results of the period ended Nov. 30, 2018 or the figures as of Jan. 17, 2019. (Note 3) Figures are calculated based on simple average without using the weighted average.

6. Appendix

Macro Data for Real Estate Market

53

1. Vacancy rate by area

Source: CBRE Inc.

16%
14%

Major 5

丸の内・大手町
Otemachi

Tokyo

12%

Shibuya,Marunouchi,

wards of
主要5区

渋谷・恵比寿Ebisu

Nagoya
名古屋

Osaka
大阪

10%
8%
6%
4%

Osaka 1.9%
Marunouchi,
Otemachi 1.6%
Nagoya 1.3%
Major 5 wards ofTokyo 0.8%
Shibuya, Ebisu
0.4%

2%
0%

2. Trends of average rent for 23 wards of Tokyo（Note）(¥)

Source: CBRE Inc.
出所：CBRE株式会社

60,000

Grade
A
グレードA

Grade AグレードAマイナス

Grade B
グレードB

50,00040,000

Grade Ａ¥37,050

30,000

GradeＡ¥25,580
Grade B
¥22,100

20,00010,0002005.32005.92006.32006.92007.32007.92008.32008.92009.32009.92010.32010.92011.32011.92012.32012.92013.32013.92014.32014.92015.32015.92016.32016.92017.32017.92018.32018.9（Note）Grade A: Office buildings within the 5 central words of Tokyo, with more than 6,500 tsubo of total leasable area, 10,000 tsubo of gross floor area, 500 tsubo of basic floor area and aged lessthan 11 years. Grade A-: Office buildings within the 23 wards of Tokyo, with more than 4,500 tsubo of total leasable area, 7,000 tsubo of gross floor area, 250 tsubo of basic floor area andcomplying with the new earthquake resistance standard. Grade B: Office buildings within the 23 wards of Tokyo, having more than 2000 tsubo of basic floor area, between 2,000 and 7,000
tsubo of gross area, and complying with the new earthquake resistance standard.

6. Appendix

Supply of Large-scale Office Building in 23 wards of Tokyo54

New report published in April 2018 has indicated no significant fluctuation from the previous forecast, though FY2022
forecasted for the first time to be 290 thousands ㎡, the lowest level ever

actual
実績

（Mori
Trust
森トラスト㈱調査（

forecast)
予想）
221（10 thousand ㎡）

2018-2022
Average (forecast)
1.0 million ㎡/year

2013-2017
Average (actual)
0.9 million ㎡/year

200

181

173

162
147

150

119

118

126

119

118

118

99

100

89
74

72

90

82

92
82

64

100

99
76

66
53

50

36

29

0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
（Source) Mori Trust Co., Ltd.
（Note）“Large-scale office buildings” refers to office buildings with a total office floor area of 10,000 ㎡ or more.

6. Appendix

Activia’s Corporate Philosophy/Basic Policies/Portfolio Composition Policy
1. Corporate Philosophy

55

3. Portfolio Composition Policy
 We intend to maintain a competitive portfolio in the medium tolong term by investing primarily in Urban Retail properties andTokyo Office properties upon careful consideration of location as
the most important factor, followed by other factors such as size,
quality, specifications and suitability for use by tenants.

2. Basic Policies
 Focused investments in Urban Retail and Tokyo Office
Properties
 Utilization of the comprehensive support andcapabilities of Tokyu Fudosan Holdings Group’s valuechain Strong governance structure aimed at maximizing
unitholder value
In order to maximize unitholder value over the medium tolong term, we rigorously select properties which we can
expect stable and sustainable demand from retailcustomers and office tenants, such as properties that arelocated in areas where large numbers of people gather andthat serve as a foothold for bustling social and corporate
activities. We also seek to maximize unitholder value by
proactively managing our properties and taking
initiatives to maintain and improve its asset management.

Urban Retail Properties that are easily
recognized and located either near
major train stations or popular areasin Tokyo, government-designatedmajor cities within Japan’s threemajor metropolitan areas and othermajor cities in Japan70% or more

Office properties within the 23 wardsof Tokyo in areas with a highconcentration of offices and locatednear major train stations

To enhance the stability andprofitability of our portfolio, we
rigorously select commercial facilities
other than Urban Retail Properties
and office building other than Tokyo
Office Properties, assessing theattributes and competitiveness ofeach property(Note) The actual split of our portfolio may differ from the above over the short term due toacquisition / disposal of properties

30% or less

6. Appendix

Tokyu Fudosan Holdings Group’s Support System56

 To ensure stable growth over the medium to long term, the Asset Manager has applied its know-how and utilized its independent network to
the management of properties. The Asset Manager has also leveraged Tokyu Fudosan Holdings Group companies’ value chain andcomprehensive support to ensure asset growth through the continued acquisition of competitive assets (external growth) andoperation/management of properties through ways designed to bring out the competitive strengths of properties under management andimprove their profitability (internal growth) Utilization of Tokyu Fudosan Holdings Group’s multi-faceted and comprehensive know-how and value chain
Tokyu Fudosan Holdings Group One of the major property development groups in Japan with a solid track record
in development, operation and management of properties
 The group also includes B-to-C businesses which may serve as tenants in our
properties and has deep knowledge of consumer needs

Support forExternal
GrowthValue Chain
Sponsor support
agreement

Development / Property Management

Affiliate support
agreements
Brokerage

RetailBuilding Management

Property
managementagreements

HotelsSports Facility

Development / Property Management

Management forretail facilities

Management forbuildings

 Capitalize on the Asset Manager’s own know-how
 The management's years of experience in development, operation and management of retail facilities and officebuildings- Expand portfolio by leveraging its know-how for property acquisitions and its wide-ranging network- Establish proper operational and management systems tailored to the specific characteristics of the assets of API

Tokyu Fudosan Holding
Group’s Comprehensive
SupportSupport forInternal
GrowthOther
SponsorSupport6. Appendix

REIT Organizational Overview

2

Custodian
Sumitomo Mitsui Trust Bank,
LimitedTransfer Agent
Sumitomo Mitsui Trust Bank,
LimitedGeneral Administrator
Sumitomo Mitsui Trust Bank,
LimitedAdministrator for
Investment
Corporation Bonds
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank,
Limited

1 Asset Management Agreement
5 Fiscal Agency Agreement

3

4

5

57

The Sponsor

The REIT

6

General Meeting of Unitholders
1

The Asset Manager

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

Independent Auditor
Ernst & Young ShinNihon LLC

2 Asset Custody Agreement
6 Sponsor Support Agreement / Outsourcing Agreement

7

Support Companies
 Tokyu Livable Inc.
 Tokyu Community Corp.
 Tokyu Hands Inc.
 Tokyu Sports Oasis, Inc.
 Tokyu Stay Co., Ltd.

3 Transfer Agency Agreement
7 Affiliate Support Agreements

4 General Administration Agreement

6. Appendix

Asset Manager Organizational Overview
1. Overview of the Asset Manager
TLC REIT Management Inc.
Established on Oct. 2009
Capital ¥200 million
Shareholder/Sponsor
Tokyu Land Corporation 100%

Hiroyuki
TohmataPresident &CEO

Kazushi SatoManaging
Director,
Chief Division
Officer ofActivia
Management
Division58
2. Asset Manager Organizational Chart

Disclaimer
This document is provided solely for informational purposes and should not be construed as an offer, solicitation or recommendation to buy or sell any specificproduct including investment units. Any decisions making on investment absolutely rest on your own judgment and on your own responsibility.
This document is not a disclosure document or statement of financial performance required by the Financial Instruments and Exchange Act, the Act Concerning
Investment Trusts and Investment Corporations of Japan, the rules governing companies listed on the Tokyo Stock Exchange or any other applicable rules.
This document includes charts and data described by TLC REIT Management Inc. (hereinafter the “Asset Manager”) and refers to data, index and other information
provided by third parties in addition to information about Activia Properties Inc. (hereinafter the “Investment Corporation”). Also analyses, judgments and otherpoints of view of the Asset Manager under the present situation are included.
The information contained in this document is not audited and there is no guarantee regarding the accuracy and certainty of the information. Analyses, judgments
and other non-factual views of the Asset Manager merely represent views of the Asset Manager as of the preparation date. Different views may exist and the AssetManager may change its views in the future.
The figures included in this document may be different from the corresponding figures in other disclosure materials due to differences in rounding. Although theinformation contained in this document is the best available at the time of its publication, no assurances can be given regarding the accuracy, certainty, validity or
fairness of this information. The content of this document can be modified or withdrawn without prior notice.
The Investment Corporation and the Asset Manager do not guarantee the accuracy of the data, indexes and other information provided by third parties.
The Investment Corporation’s actual performance may be materially different from results anticipated by forward-looking statements contained in this document.
Dates indicated in this document may not be business days.

Disclaimer for Dutch Investors
The units of the Investment Corporation are being marketed in the Netherlands under Section 1:13b of the Dutch Financial Supervision Act (Wet op het financieeltoezicht, or the “Wft”). In accordance with this provision, the Asset Manager has notified the Dutch Authority for the Financial Markets of its intention to offer theseunits in the Netherlands. The units of the Investment Corporation will not, directly or indirectly, be offered, sold, transferred or delivered in the Netherlands, except
to or by individuals or entities that are qualified investors (gekwalificeerde beleggers) within the meaning of Article 1:1 of the Wft, and as a consequence neither
the Asset Manager nor the Investment Corporation is subject to the license requirement pursuant to the Wft. The Asset Manager is therefore solely subject tolimited ongoing regulatory requirements as referred to in Article 42 of the European Alternative Investment Fund Managers Directive (European Directive
2011/61/EU) (the “AIFMD”).
Please visit the Investment Corporation’s home page (https://www.activia-reit.co.jp/en/) to access information provided under Article 23 of the AIFMD.