January 14, 2022

Financial Report for the Fiscal Period Ended November 30, 2021
(June 1, 2021 – November 30, 2021)

Activia Properties Inc.
Listing:
Securities code:
URL:
Representative:

Tokyo Stock Exchange3279
https://www.activia-reit.co.jp/en/
Nobuhide Kashiwagi, Executive Director

Investment management company:
TLC REIT Management Inc.
Representative: Masaoki Kanematsu, President & CEO
Contact:
Kazuyuki Murayama, General Manager of Strategy Department,
Activia Management Division
TEL: +81-3-6455-3377
Scheduled date to file Securities Report:
Scheduled date to start distribution payments:
Supplementary material on financial report:
Financial report presentation meeting:February 24, 2022
February 14, 2022
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen)1.

Summary of financial results for the fiscal period ended November 30, 2021
(June 1, 2021 – November 30, 2021)(1) Operating results(Percentages show changes from the corresponding amounts for the previous period.)
Operating revenue

Fiscal period ended
November 30, 2021
Fiscal period ended
May 31, 2021

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

15,646

6.3

8,758

8.1

7,781

7.3

7,753

6.9

14,715

(2.4)

8,101

(1.5)

7,250

(1.5)

7,249

(1.5)

Basic earnings per unit

Return on unitholders’equity (ROE)%

Ordinary profit tototal assets

Ordinary profit tooperating revenue

Yen%%
Fiscal period ended
9,754
2.9
1.4
49.7
November 30, 2021
Fiscal period ended
9,400
2.8
1.4
49.3
May 31, 2021
(Note) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (771,224 units for the fiscal period ended May 31, 2021 and 794,871 units for the fiscal period ended
November 30, 2021).

-1-

(2) Cash distributions
Cash
distributions
per unit

Total
distributions(excluding excessof earnings)(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unit

Yen Millions of yen
Fiscal period ended
November 30, 2021
Fiscal period ended
May 31, 2021

Total
distributions
in excess ofearnings

Cashdistributions
per unit(including excessof earnings)

Yen Millions of yen

Total
distributions(including excessof earnings)

Yen Millions of yen

9,360

7,700

0

0

9,360

7,700

9,386

7,238

15

11

9,401

7,250

Payout ratio

Distribution
ratio tounitholders’equity%%Fiscal period ended
99.3
2.8
November 30, 2021
Fiscal period ended
99.8
2.8
May 31, 2021
(Note 1) Because new investment units were issued during the fiscal period ended November 30, 2021, the payout ratio for that
period is obtained by the following formula with figures rounded to the first decimal place: Payout ratio = total
distributions (excluding excess of earnings) / profit × 100(Note 2) The ¥15 in cash distributions in excess of earnings per unit for the fiscal period ended May 31, 2021 comprises ¥15 inallowance for temporary difference adjustments. There are no distributions on reduction of unitholders’ capital for tax
purposes.

(3) Financial position

As of November 30, 2021

Total assets

Net assets

Millions of yen
566,257

Millions of yen
278,716

525,379

255,581

As of May 31, 2021
(Reference) Unitholders’ equity
As of November 30, 2021:
As of May 31, 2021:

Unitholders’ equity tototal assets%
49.2

Net assets per unit

48.6

331,397

Yen
338,760¥278,716 million¥255,581 million(4) Cash flows

Fiscal period ended
November 30, 2021
Fiscal period ended
May 31, 2021

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

21,002(49,887)

31,061

20,057

8,745

(566)

(7,847)

17,881-2-

2.

Forecasts of results for the fiscal period from December 1, 2021 to May 31, 2022 andthe fiscal period from June 1, 2022 to November 30, 2022
(Percentages show changes from the corresponding amounts for the previous period.)
Operatingrevenue
Millionsof yenFiscal period ending
May 31, 2022
Fiscal period ending
November 30, 2022

Operatingprofit% Millionsof yenOrdinary
profit% Millionsof yen(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unitCashdistributions
per unit

Profit% Millionsof yen

%

Yen

Yen

15,271

(2.4)

8,614

(1.6)

7,673

(1.4) 7,672

(1.0)

9,325

–

15,520

1.6

8,558

(0.7)

7,579

(1.2) 7,578

(1.2)

9,210

–

(Reference) Forecasted profit per unit (forecasted profit / total projected number of investment units issued at end of period)
for the fiscal period ending May 31, 2022:¥9,325for the fiscal period ending November 30, 2022:¥9,210* Other(1) Changes in accounting policies, changes in accounting estimates, and restatement of priorperiod financial statements
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement of prior period financial statements: None

(2) Total number of units issueda.

b.

Total number of units issued at end of period (including treasury units)
As of November 30, 2021

822,754 units

As of May 31, 2021

771,224 units

Number of treasury units at end of period
As of November 30, 2021

– units

As of May 31, 2021

– units(Note) Please refer to “Per Unit Information” on page 34 for the number of investment units used as the basis
for calculating basic earnings per unit.

* Financial reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Other special items
Forward-looking statements presented in this financial report including forecasts of results are based on
information currently available to us and on certain assumptions we deem to be reasonable. As such, actual
operating and other results may differ materially due to a number of factors. Furthermore, these forecasts arein no way a guarantee of any distribution amount. Please refer to “Assumptions for Forecasts of Investment
Performance for the 21st Fiscal Period from December 1, 2021 to May 31, 2022 and the 22nd Fiscal Period
from June 1, 2022 to November 30, 2022” on pages 10 through 11 for information on assumptions for theforecasts.

This English version is a translation of the original Japanese document and is only for reference purposes. In
the case where any differences occur between the English version and the original Japanese version, theJapanese version will prevail.

-3-

Index
1. Asset Management Status ......................................................................................................................... - 5 (1) Asset Management Status ................................................................................................................. - 5 2. Financial Statements ............................................................................................................................... - 12 (1) Balance Sheet .................................................................................................................................. - 12 (2) Statement of Income ....................................................................................................................... - 14 (3) Statement of Unitholders’ Equity.................................................................................................... - 15 (4) Statement of Cash Distributions ..................................................................................................... - 17 (5) Statement of Cash Flows................................................................................................................. - 19 (6) Notes on Assumption of Going Concern ........................................................................................ - 20 (7) Notes on Important Accounting Policies ........................................................................................ - 20 (8) Notes on Changes in Accounting Policies ...................................................................................... - 21 (9) Notes to Financial Statements ......................................................................................................... - 22 (10) Changes in Total Number of Investment Units Issued and Outstanding ........................................ - 35 3. Reference Information ............................................................................................................................ - 38 (1) Composition of Invested Assets ...................................................................................................... - 38 (2) Investment Assets ........................................................................................................................... - 39 --4-

1. Asset Management Status(1) Asset Management Statusi) Summary of Results for the Current Fiscal Period(A) Transition of Investment Corporation
Activia Properties Inc. (hereinafter referred to as the “Investment Corporation”) was established on
September 7, 2011, with unitholders’ capital of ¥200 million (400 units) and TLC Township Inc. (onApril 1, 2017, an absorption-type merger took place with current TLC REIT Management Inc.
(hereinafter referred to as the “Asset Manager”) as a surviving company and TLC Activia Investment
Management Inc. (its trade name was changed from TLC Township Inc. on April 1, 2012) as anabsorbed company) as the organizer under the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951, including subsequent revisions; hereinafter referred to as the “Investment TrustAct”), and completed its registration in the Kanto Local Finance Bureau on September 20, 2011
(Director-General of the Kanto Local Finance Bureau No. 73).
After that, the Investment Corporation was listed on the real estate investment trust securities marketof Tokyo Stock Exchange, Inc. (Securities code 3279) on June 13, 2012. On September 7, 2021, theInvestment Corporation carried out its seventh publicly offered capital increase after the listing, andon September 28, 2021, it carried out a third-party allotment.
“Activia” of “Activia Properties,” the name of the Investment Corporation, has been coined from thewords “activate” and “ia,” a suffix meaning “place.” By investing in and managing real estate
appropriate to its name, the Investment Corporation seeks to become an entity capable of broadlyenergizing society. The Investment Corporation will also select real estate capable of sustaining
customer demand as a location for both corporate activities and urban recreation in popular areas,
with the aim of maximizing the medium- and long-term value of unitholders, supported by its
proactive management (management to improve the circumstances by taking initiatives and acting forthe future).
In the fiscal period under review, which ended on November 30, 2021, the Investment Corporationacquired three “Tokyo Office Properties,” through publicly offered capital increase, etc., which are
categorized as its focused investment properties. The Investment Corporation also took steps toreshuffle its asset portfolio which involved transferring Tokyu Plaza Akasaka (50% co-ownershipinterest) and acquiring one “Tokyo Office Property” on October 29, 2021. Consequently, theInvestment Corporation held 47 properties (with the total acquisition price of ¥548,035 million) at theend of the fiscal period under review.
(B) Investment Environment in the Fiscal Period Under Review
In the Japanese economy in the fiscal period under review, weakness continued to be seen in the trendof recovery despite the difficult environment, which was caused by COVID-19, softening steadily.
With respect to the environment surrounding retail properties, a trend of recovery has been seen in
consumer sentiment, such as signs of recovery in contact service consumption due to the complete
lifting of state of emergency, etc.
In the rental office market, there is a continuing trend of office consolidations and relocations tosmaller offices due to COVID-19 leading to the adoption of telework and trend of cost reduction.
Meanwhile, the average vacancy rate in the five central wards of Tokyo (Chiyoda-ku, Minato-ku,
Chuo-ku, Shibuya-ku and Shinjuku-ku) as of November 30, 2021, according to data published by
Miki Shoji Co., Ltd., was 6.35%, an increase of 0.45 percentage points from the period ended May 31,
2021. Rent levels have dropped for 16 consecutive months starting in August 2020. The average rent
per tsubo (about 3.3 square meters) in the five central wards of Tokyo as of November 30, 2021, was¥20,686. Even in major cities outside Tokyo, vacancy rates are trending upward and rent levels havefallen moderately or remain unchanged.
The J-REIT market was firm due to expectation that economic activity will normalize due to thelifting of the state of emergency. However, prices declined toward November 30, 2021 due to anincreasing sense of caution because of new COVID-19 variants.
(C) Investment Performance
The Investment Corporation acquired three properties, namely Meguro Tokyu Building, Q plaza
Shinjuku-3chome and A-PLACE Shibuya Nampeidai (Note 1) (with the total acquisition price of¥43,500 million) on September 10, 2021, by publicly offered capital increase in accordance with the-5-basic asset management policy set forth in the Articles of Incorporation. On October 29, 2021, theInvestment Corporation also transferred Tokyu Plaza Akasaka (50% co-ownership interest) (with thetransfer price of ¥11,800 million) and acquired A-PLACE Tamachi East (Note 2) (with the acquisition
price of ¥6,800 million) on the same day.
Consequently, total assets held by the Investment Corporation at the end of the fiscal period underreview were 47 properties (with the total acquisition price of ¥548,035 million) with the total leasablearea of 429,067.46 m2 (129,791 tsubo).
(Note 1) Although the name of “A-PLACE Shibuya Nampeidai” as of the date of this financial reportis “Nikko Shibuya Nampeidai Building,” it will be changed as of September 1, 2022.
(Note 2) Although the name of “A-PLACE Tamachi East” as of the date of this financial report is“Tamachi East Building,” it will be changed as of November 1, 2022.
The trend of monthly average occupancy rate (Note) during the fiscal period under review is asfollows:
June 30,
2021

July 31,
2021

August 31,
2021

September
30, 2021

October 31,
2021

November30, 2021

Urban Retail
Properties

97.7%

97.3%

97.2%

97.3%

97.4%

97.5%

Tokyo Office
Properties

96.7%

97.1%

96.8%

97.2%

96.9%

96.7%

Activia
Account
Properties

99.2%

99.2%

99.2%

99.2%

99.2%

98.2%

Total

98.0%

98.0%

97.9%

98.0%

97.9%

97.5%

(Note)

Figures for occupancy rates are rounded to the nearest tenth.

(D) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” withthe aim of maximizing medium- and long-term unitholder value, the Investment Corporation has beenpromoting various initiatives with its sights set on lowering environmental loads and contributing toour nearby surroundings and local communities, thereby extending beyond considerations such as
location, use, size and qualities. In July 2019, as material issues that the Investment Corporation needs
to address, we released quantitative targets encompassing a wider range of performance benchmarks
from an environmental standpoint, and also clearly stated practical management policy to such ends.
In addition, we are striving daily to achieve our basic objective of cutting unit energy consumption,etc. by an annual average of 1% over the medium to long term. Sustainability Department wasestablished as of April 1, 2021 to expand the functionality of the Sustainability Promotion System of
TLC REIT Management Inc., our Asset Manager. The Sustainability Department succeeds the ESGrelated missions from the Environmental Engineering Department, and we will further promote oursustainability program. As works to reduce environmental load for the fiscal period under review, thelighting was upgraded to LED lighting at common areas of icot Omori, some common areas of APLACE Yoyogi, A-PLACE Ikebukuro, A-PLACE Shinagawa, A-PLACE Ebisu Higashi and Ebisu
Prime Square Tower, some private areas of Shiodome Building and Ebisu Prime Square. In addition,water-saving toilet bowls were used to promote effective utilization of water resources in therenovation of toilets of A-PLACE Shinagawa, and energy-saving performance was improved by using
highly efficient outdoor air conditioning units in the replacement of air conditioning units of Luogo
Shiodome.
Moreover, we continue to engage in annual initiatives geared to acquiring green building
certifications, and during the fiscal period under review, we have acquired the BELS certifications for
Umeda Gate Tower (two stars) and OSAKI WIZTOWER (two stars). As such, a total of 29 of ourproperties have acquired green building certification, which amounted to 65.4% of our holdings
calculated on the basis of gross floor area (as of November 30, 2021).
Furthermore, an umbrella sharing service has been newly introduced at Luogo Shiodome, A-PLACE
Shinagawa Higashi, A-PLACE Gotanda, A-PLACE Aoyama, A-PLACE Yoyogi, A-PLACE Shibuya
Konnoh, TLC Ebisu Building and Ebisu Prime Square. At the same time, Tokyu Plaza Omotesando-6-

Harajuku has started a project aiming for self-sufficiency resource circulation within the facilities inwhich raw garbage generated from restaurants within the facilities is turned into compost and thenused for cultivation of strawberries in the field at the roof garden, and the restaurants offer a menu
using cultivated strawberries. The Investment Corporation will contribute to achieving a sustainable
society by engaging in such initiatives geared to the environment and society.
(E) Overview of Financing
In the fiscal period under review, in order to cover a part of the acquisition costs for beneficial
interests in real estate trust to the above three properties and related costs, the Investment Corporation
additionally issued investment units (49,030 units) through a public offering on September 7, 2021,
issued new investment units (2,500 units) by a third-party allotment on September 28, 2021, andborrowed funds of ¥16,200 million on September 10, 2021. The Investment Corporation also
refinanced a total of ¥13,750 million largely in order to cover repayment of borrowings andinvestment corporation bonds that had come due. In addition, the Investment Corporation issued green
bonds (unsecured investment corporation bonds) of ¥3,900 million on November 16, 2021, and used
the funds to cover repayment of short-term borrowings. As a result, as of the end of the fiscal period
under review, the balance of interest-bearing debt was ¥260,350 million (borrowings of ¥233,650
million and investment corporation bonds of ¥26,700 million). The ratio of interest-bearing debt tototal assets (LTV = Balance of interest-bearing debt / Total assets x 100) was 46.0% as of the end of
the fiscal period under review. The long-term debt ratio and the ratio of fixed-interest debt to totalinterest-bearing debt were 100% and 96.6%, respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period underreview is as follows. This investment unit does not have a credit rating provided or made available forinspection by a credit rating agency or one scheduled to be provided or made available for inspection
by a credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

Rating

Forecast

Japan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable(F) Overview of Financial Results and Distributions in the Fiscal Period Under Review
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary
profit were ¥15,646 million, ¥8,758 million, and ¥7,781 million, respectively, for the fiscal period
under review, and profit was ¥7,753 million.
As for distributions for the fiscal period under review, internal reserve of ¥53,379,899 was provided
for stabilization of future distributions in view of ¥250,323,186 of gain on sale of real estate
properties arising, and the decision was made with respect to paying distributions of profit of¥7,700,977,440, which is the entire amount of the unappropriated retained earnings less the amountequivalent to the internal reserve and the reversal of allowance for temporary difference adjustments(refers to stipulations of Article 2, Paragraph 2, Item 30 of the Regulations on Accountings ofInvestment Corporations). Consequently, distributions per investment unit resulted in ¥9,360.

-7-ii) Outlook for the Next Fiscal Period(A) Investment Environment for the Next Fiscal Period
With regard to the Japanese economy, the corporate sector and the household sector are both expected
to recover due to the increase of external demand and the effects of economic policies as the impact of
COVID-19 gradually eases because of factors such as the spread of vaccinations. However, it isnecessary to closely observe the impact of the risks of a global downturn, such as the spread of
COVID-19 variants as well as the prolonging of supply constraints, which include the stagnation oflogistics and supply chain issues.
With respect to the environment surrounding retail properties, it is necessary to pay attention to risks
that will restrict consumption again due to the spread of COVID-19 variants despite the expectationthat pent-up demand for services, etc. will actualize because of the progression of consumer activities
while the spread of infection is suppressed as a result of the spread of vaccinations, etc. In the rental
office market, the Investment Corporation expects that the locations and quality of properties willcontinue to be tested as it is expected that supply and demand will continue to see a trend of easing
due to relocations to smaller offices and partial contract cancellations despite benefitting from alimited amount of new supply. While the J-REIT market is expected to continue to move in prices due
to a sense of caution regarding COVID-19 variants in the short term, we expect inflow of funds into
REITs due to their relatively stable earnings and attractive high return levels in the medium to longterm.
Amid this environment, the Investment Corporation will fulfill its social responsibility in preventing
the spread of infections, etc. while minimizing the impact of the COVID-19 pandemic through its
abundant management expertise, and in line with its medium- to long-term portfolio strategy, it will
aim to return to the path of improving unitholder value by increasing portfolio revenue through asset
replacement that leverages sponsor support.
(B) Investment Policy and Developments to Be Addressed in the Next Fiscal Perioda. Basic Policy
The Investment Corporation’s basic policies are to invest in assets, with targeted investments in
Urban Retail and Tokyo Office properties; utilize the Tokyu Fudosan Holdings Group’s value chain
based on the comprehensive support system; and a governance structure that maximizes unitholder
value.
b. External Growth Strategy
The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main
target. It will make its investment decisions carefully, concentrating on selecting properties in
excellent locations, including surrounding areas, and thoroughly considering individual factors suchas use, size, specifications and other qualities of properties, and credibility and name recognition oftenants, in order to construct a competitive portfolio in the medium to long term.
To acquire these competitive assets on an ongoing basis, the Investment Corporation will work tomaintain and improve the quality of its portfolio by rigorously selecting investment assets based on
the information it receives under its sponsor support agreement with Tokyu Land Corporation
regarding the Investment Corporation and its support agreement with five group companies in the
Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive know-how
and information-gathering network of the Asset Manager.
c. Internal Growth Strategy
The Investment Corporation will operate, manage, and refurbish its portfolio to maintain andimprove the competitiveness of its facilities through a comprehensive understanding of the featuresof its overall portfolio and its individual assets under management, based on the unique expertise of
its Asset Manager. The Investment Corporation will also seek to manage its portfolio in a stablemanner and strengthen its earnings by establishing appropriate operational and management
systems tailored to the specific characteristics of the assets it has invested in, and through regularand non-regular inspections by the property management company that has considerable experiencein the operation and management of real estate.
The Investment Corporation will also maintain and improve the value of its assets through its
expertise in internal growth through operating and managing properties. It will maximize thecompetitiveness of its assets through the ongoing assistance of Tokyu Land Corporation and other-8-

support companies, which, through their face-to-face business with consumers, have richinformation regarding consumer needs and developments in industries such as retail and services.
With respect to the property management business for the assets under management, leasing support
has been provided from Tokyu Land Corporation, Tokyu Land SC Management Corporation or
Tokyu Community Corp.
d. Financial Strategy
Having a sound financial strategy in an effort to conservatively control LTV as well as make stablelong-term borrowings and diversify maturities (diversifying repayment dates), the Investment
Corporation will endeavor to build a stable financial base with a solid bank formation based ongood relationships with major financial institutions. In addition, with the aim of diversifying meansof raising funds, the Investment Corporation will issue investment corporation bonds while paying
close attention to trends in financial markets. Concerning the issuance of new investment units,
moreover, the Investment Corporation will prudently and flexibly carry out such issuance while
paying appropriate attention to various environmental factors with the aim of achieving long-termand stable growth.
(C) Significant Subsequent Events
Not applicable.
(D) Outlook of Investment Performance
For the fiscal period ending May 31, 2022 (21st fiscal period: December 1, 2021 to May 31, 2022),
investment performance is estimated as follows. For the assumptions used for the estimation of
investment performance, please refer to “Assumptions for Forecasts of Investment Performance forthe 21st Fiscal Period from December 1, 2021 to May 31, 2022 and the 22nd Fiscal Period from June
1, 2022 to November 30, 2022” on pages 10 through 11.
Operating revenue¥15,271 million

Operating profit¥8,614 million

Ordinary profit¥7,673 million

Profit¥7,672 million

Cash distributions per unit

¥9,325

Cash distributions in excess of earnings per unit¥–

If it is assumed that there are no changes in “Assumptions for Forecasts of Investment Performancefor the 21st Fiscal Period from December 1, 2021 to May 31, 2022 and the 22nd Fiscal Period from
June 1, 2022 to November 30, 2022” on pages 10 through 11, the outlook of investment performancefor the fiscal period ending November 30, 2022 (22nd fiscal period: June 1, 2022 to November 30,2022) is estimated as follows.
Operating revenue¥15,520 million

Operating profit¥8,558 million

Ordinary profit¥7,579 million

Profit¥7,578 million

Cash distributions per unit

¥9,210Cash distributions in excess of earnings per unit¥–

(Note) The above estimation is determined based on certain assumptions at the time of preparing
the financial statements. Due to changes in the circumstances surrounding the Investment
Corporation including acquisition or disposition of properties, the trend of real estatemarket, etc. in the future, actual operating revenue, operating profit, ordinary profit, profit
and cash distributions per unit may change. Furthermore, this estimation does notguarantee the amount of distributions.

-9-Assumptions for Forecasts of Investment Performance for the 21st Fiscal Period from December 1,
2021 to May 31, 2022 and the 22nd Fiscal Period from June 1, 2022 to November 30, 2022
Item
PeriodInvestment
portfolio

Assumptions
・ 21st fiscal period (December 1, 2021 to May 31, 2022) (182 days)
・ 22nd fiscal period (June 1, 2022 to November 30, 2022) (183 days)
・ Our forecasts of investment performance assume that the Investment Corporation
holds 47 properties as of today (the “Assets Currently Held”).
・ Although the transfer has not been determined at the moment, we assume that someof the assets held will be transferred at the end of the 22nd fiscal period.

・ We have calculated our real estate leasing business revenues from the Assets
Currently Held taking into account the relevant lease agreements effective as oftoday, market trends, etc.
・ Operating revenue is based on our assumption that there will be no delinquencies or
non-payment of rents by tenants.
・ Although the transfer has not been determined at the moment, we assume that gain
Operating revenue
on sale of real estate properties of ¥195 million will arise by transferring some of theassets held in the 22nd fiscal period. This may change, however, depending on
outcomes of the sales, transfer prices, transfer dates and other conditions.
・ In addition to the above, a certain amount of the expected lower leasing businessrevenue, etc. due to the impact of the COVID-19 pandemic has been factored into
the calculations.

Operatingexpenses・ Expenses related to leasing business (other than depreciation), which are ourprincipal operating expenses, were calculated based on the historical information
and upon considering variable factors.
・ In general, property tax and city planning tax of properties acquired are settled at thetime of acquisition between the former owner (seller) and the purchaser based on
their respective periods of ownership in relation to the relevant tax year. However,any of these taxes allocated to the purchaser are not expensed at the time ofacquisition because they are treated as a part of the acquisition cost for accounting
purposes. For property tax and city planning tax, ¥1,260 million and ¥1,450 million
for the Assets Currently Held will be expensed in the fiscal period ending May 31,
2022 (21st fiscal period) and in the fiscal period ending November 30, 2022 (22ndfiscal period), respectively.
・ Repair and maintenance expenses of buildings are estimated at the amount required
for each of the fiscal periods based on the medium- and long-term repair andmaintenance plans formed by the Asset Manager. However, the actual repair andmaintenance expenses for the fiscal periods may significantly differ from theestimates since (i) an unforeseeable event may cause serious damage to a building
requiring emergent repair expenditure, (ii) in general, amounts vary according to thefiscal period, and (iii) certain types of repair and maintenance expenses are notrequired in every fiscal period.
・ We calculate depreciation expenses (including incidental expenses) by the straightline method, assuming ¥1,377 million and ¥1,394 million for the 21st fiscal period
ending May 31, 2022 and the 22nd fiscal period ending November 30, 2022,
respectively.

Non-operating
expenses・ We expect interest expense and other borrowing-related expenses of ¥939 million
for the fiscal period ending May 31, 2022 (21st fiscal period) and ¥978 million for
the fiscal period ending November 30, 2022 (22nd fiscal period).

- 10 -

Item

Assumptions

・ As of today, the Investment Corporation has a balance of interest-bearing debt of¥260,350 million (borrowings of ¥233,650 million and investment corporation
bonds of ¥26,700 million).
・ We assume that there will be refinancing of all interest-bearing debt due by the endof the fiscal period ending May 31, 2022 (21st fiscal period) and the fiscal period
ending November 30, 2022 (22nd fiscal period) (21st fiscal period: long-term
Interest-bearing
borrowings of ¥14,100 million; 22nd fiscal period: long-term borrowings of ¥12,000
debt
million and investment corporation bonds of ¥1,000 million).
・ We assume the LTV ratios as of May 31, 2022 and November 30, 2022 are both tobe approximately 46%.
・ The LTV ratio is obtained by the following formula:
LTV = Balance of interest-bearing debt / Total assets × 100

Units

・ The number is based on our assumption of total of 822,754 units issued as of today.
We assume that there will be no additional issuance of new investment units before
the end of the 22nd fiscal period (November 30, 2022).
・ The cash distributions per unit for the 21st fiscal period ending May 31, 2022 andthe 22nd fiscal period ending November 30, 2022 have been calculated inaccordance with the total projected number of investment units issued as of the endof each of the fiscal periods which is 822,754 units.

・ Cash distributions (cash distributions per unit) are calculated based on the cash
distribution policy stipulated in our Articles of Incorporation.
・ The cash distributions per unit may change due to various factors, including changes
Cash distributions
to the composition of our investment portfolio, changes in rental revenues
per unit
accompanying changes in tenants, and unexpected maintenance and repairs.
・ Deferred losses on hedges, which arise from interest rate swaps and are counted as adeduction in net assets, are calculated assuming no fluctuation.
・ As stated above, deferred losses on hedges, which are counted as a deduction in net
assets, are calculated assuming no fluctuation. Accordingly, we do not anticipate
distributions in excess of earnings (allowance for temporary difference adjustments)
Cash distributions
for the 21st fiscal period ending May 31, 2022 or the 22nd fiscal period ending
in excess ofNovember 30, 2022.
earnings per unit
・ Among cash distributions in excess of earnings, we currently do not anticipate
distributions deemed as distributions on reduction of unitholders’ capital for tax
purposes.
・ We assume that there will be no amendments in legislation, taxation, accounting
standards, listing regulations or regulations of the Investment Trusts Association of
Other
Japan that affect the above forecasts.
・ We assume that there will be no material changes in general economic conditions orreal estate markets.

- 11 -

2. Financial Statements(1) Balance Sheet(Unit: Thousands of yen)
As of May 31, 2021
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Land leasehold interests in trust
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 12 -

As of November 30, 2021

14,227,970
3,653,881
601,413569,141
6,566
19,058,973

15,986,135
4,071,575
911,525
388,238
14,324
21,371,798

85,760,008(16,450,302)
69,309,705
805,357(252,555)
552,8021,422,969(462,948)
960,021302,469(181,133)
121,335
424,862,322
163,000
495,969,188

87,070,366(17,086,807)
69,983,558
783,513(259,824)
523,689
1,464,287(501,805)
962,481
290,941(182,233)
108,707462,769,582
35,061
534,383,081

9,055,086
678
9,055,764

9,055,086
423
9,055,510

1,144,625
2
38,322
1,182,950
506,207,903

1,278,079
2,765
38,322
1,319,167
544,757,758

112,210112,210525,379,087

127,469
127,469
566,257,027

(Unit: Thousands of yen)
As of May 31, 2021
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term borrowings
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
Leasehold and guarantee deposits received in trust
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference
adjustments
Total deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets*3*2- 13 -

As of November 30, 2021

1,078,246–
27,850,000
13,719918,728637
263,790695,615753
30,821,491

928,758
1,000,000
26,100,000
64,640981,085
31,233
199,558784,759
74,54830,164,583

22,800,000
193,500,000
22,636,356
39,646238,976,003
269,797,494

25,700,000
207,550,000
24,125,396
409
257,375,805
287,540,389

248,370,846

270,963,556(28,535)*3(40,103)(28,535)
248,342,311(40,103)
270,923,453

7,278,928

7,793,594

7,278,928
255,621,239

7,793,594
278,717,047(39,646)(39,646)
255,581,592
525,379,087

(409)
(409)
278,716,638
566,257,027*2

(2) Statement of Income(Unit: Thousands of yen)Previous fiscal period(From December 1, 2020
to May 31, 2021)
Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sale of real estate properties
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Reversal of distributions payable
Insurance claim income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuancecosts
Investment unit issuance expenses
Financing fees
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 14 -

Current fiscal period(From June 1, 2021
to November 30, 2021)*1, *3*1, *3

13,765,352
950,325–
14,715,678*1, *3*1, *3*2

14,283,556
1,112,460
250,323
15,646,339*1

5,369,825
1,104,682
14,88437,0153,300
84,835
6,614,543
8,101,135*1

5,551,549
1,135,604
15,28139,0543,300
143,153
6,887,943
8,758,396

85
1,188
–
1,273

82
1,113
857
2,052

598,377
57,807616,195
60,629

8,841

9,186

–
186,412500
851,939
7,250,469
7,250,469
650
14
665
7,249,804
29,124
7,278,928

93,250198,829500
978,591
7,781,857
7,781,857
31,245(2,763)28,482
7,753,375
40,2197,793,594

(3) Statement of Unitholders’ Equity
Previous fiscal period (From December 1, 2020 to May 31, 2021)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Unitholders’capitalBalance at beginning of
period248,370,846

Deduction from unitholders’capitalAllowance for Total deduction
temporaryfromdifference
unitholders’adjustments
capital(3,084)(3,084)

Surplus

Unitholders’capital, net

Unappropriatedretained earnings(undisposed loss)

Total surplus

Totalunitholders’equity248,367,761

7,366,549

7,366,549

255,734,310(7,337,425)(7,337,425)(7,337,425)

Changes during period
Dividends of surplus
Distributions in excessof earnings fromallowance fortemporary difference
adjustments(25,450)(25,450)(25,450)

ProfitNet changes in items
other than unitholders’equityTotal changes during
periodBalance at end of period

7,249,804(25,450)(25,450)(87,620)(87,620)(113,071)*1
248,370,846(28,535)(28,535)

248,342,311

7,278,928

7,278,928

255,621,239

Total valuation
Deferred gains or
and translation
losses on hedges
adjustments(28,584)(28,584)

Total net assets

255,705,726

Changes during period
Dividends of surplus(7,337,425)

Distributions in excessof earnings fromallowance fortemporary difference
adjustments(25,450)

ProfitBalance at end of period

7,249,804(25,450)(Unit: Thousands of yen)

Net changes in items
other than unitholders’equityTotal changes during
period7,249,804–

Valuation and translation
adjustments

Balance at beginning of
period(25,450)

7,249,804(11,062)(11,062)(11,062)(11,062)(11,062)(124,133)(39,646)(39,646)

255,581,592- 15 -

Current fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Unitholders’capitalBalance at beginning of
period248,370,846

Deduction from unitholders’capitalAllowance for Total deduction
temporaryfromdifference
unitholders’adjustments
capital(28,535)(28,535)

Surplus

Unitholders’capital, net

Unappropriatedretained earnings(undisposed loss)

Total surplus

Totalunitholders’equity248,342,311

7,278,928

7,278,928

255,621,239

Changes during period
Issuance of new
investment units

22,592,710

22,592,710

Dividends of surplus(7,238,708)

Distributions in excessof earnings fromallowance fortemporary difference
adjustments(11,568)(11,568)

Balance at end of period

7,753,375

7,753,375

7,753,375(11,568)

22,581,141

514,666

514,666

23,095,808*1
270,963,556(40,103)(40,103)

270,923,453

7,793,594

7,793,594

278,717,047

Total valuation
Deferred gains or
and translation
losses on hedges
adjustments(39,646)(39,646)

Total net assets

255,581,592

Changes during period
Issuance of new
investment units

22,592,710

Dividends of surplus(7,238,708)

Distributions in excessof earnings fromallowance fortemporary difference
adjustments(11,568)

ProfitBalance at end of period(11,568)(11,568)(Unit: Thousands of yen)

Net changes in items
other than unitholders’equityTotal changes during
period(7,238,708)

22,592,710

Valuation and translation
adjustments

Balance at beginning of
period(7,238,708)(11,568)

ProfitNet changes in items
other than unitholders’equityTotal changes during
period22,592,710

7,753,375
39,23739,23739,23739,23739,237

23,135,045

(409)

(409)

278,716,638- 16 -

(4) Statement of Cash Distributions
Previous fiscal period(From December 1, 2020
to May 31, 2021)

Current fiscal period(From June 1, 2021
to November 30, 2021)

AmountAmountI

Unappropriated retained
earnings¥7,278,928,158¥7,793,594,694

II

Additional amount of cash
distributions in excess ofearnings¥11,568,360¥–

Of which, allowance fortemporary difference
adjustments¥11,568,360¥–

III Amount incorporated into
unitholders’ capital¥–¥39,237,355

Of which, reversal of
allowance for temporary
difference adjustments¥–¥39,237,355¥7,250,276,824¥7,700,977,440[¥9,401][¥9,360]

Of which, distributions ofprofits¥7,238,708,464¥7,700,977,440[Of which, distributions ofprofits per unit][¥9,386][¥9,360]

Of which, allowance fortemporary difference
adjustments¥11,568,360¥–[Of which, cash
distributions in excess ofearnings per unit
(Related to allowance fortemporary difference
adjustments)]

[¥15]

[¥–]

Earnings carried forward¥40,219,694¥53,379,899

IV Distributions[Cash distributions per unit]V- 17 -

Calculation method for
distributions

Based on the distribution policy
Based on the distribution policy
set forth in Article 35, Paragraph set forth in Article 35, Paragraph
1 of the Articles of Incorporation 1 of the Articles of Incorporationof the Investment Corporation,of the Investment Corporation,
distributions shall be limited to
distributions shall be limited tothe amount of net profit in excess the amount of net profit in excess
of an amount equivalent to ninety of an amount equivalent to ninety
hundredths (90/100) of
hundredths (90/100) of
distributable profits, as stipulated distributable profits, as stipulated
in Article 67-15, Paragraph 1 ofin Article 67-15, Paragraph 1 of
the Act on Special Measures
the Act on Special Measures
Concerning Taxation. In
Concerning Taxation. In
consideration of this policy, we
consideration of this policy,
will pay distributions of profits of internal reserve of ¥53,379,899¥7,238,708,464, which is thewas provided for stabilization ofamount of the net profit defined
future distributions in view ofin Article 136, Paragraph 1 of the ¥250,323,186 of gain on sale of
Act on Investment Trusts andreal estate properties arising, andInvestment Corporations, except a we will pay distributions offraction of less than ¥1 ofprofits of ¥7,700,977,440, which
distributions per investment unit. is the entire amount of theBased on the policy onunappropriated retained earnings
distribution of cash exceeding net less the amount equivalent to the
profit set forth in Article 35,
internal reserve and the reversal
Paragraph 2 of the Articles ofof allowance for temporary
Incorporation of the Investment
difference adjustments (refers to
Corporation, distributions instipulations of Article 2,
excess of earnings shall be made Paragraph 2, Item 30 of thein an amount decided by theRegulations on Accountings ofInvestment Corporation and
Investment Corporations), for theequivalent to a deduction in net
fiscal period under review.
assets (refers to stipulations ofArticle 2, Paragraph 2, Item 30(b) of the Regulations on
Accountings of Investment
Corporations), taking into accounteffects of the deduction in net
assets on distribution amounts.
During the fiscal period underreview, the Investment
Corporation has accordingly
decided to distribute ¥11,568,360
as distributions related toallowance for temporary
difference adjustments, calculated
as the amount equivalent to¥11,111,618, which is calculated
by deducting ¥28,535,288 of
temporary difference adjustments(refers to stipulations of Article 2,
Paragraph 2, Item 30 of theRegulations on Accountings ofInvestment Corporations) fromdeferred losses on hedges of¥39,646,906. As a result,distributions are to amount to¥7,250,276,824 for the fiscal
period under review.

- 18 -

(5) Statement of Cash Flows(Unit: Thousands of yen)Previous fiscal period(From December 1, 2020
to May 31, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Amortization of investment corporation bond issuance
costs
Interest income and interest on securities
Interest expenses
Investment unit issuance expenses
Financing fees
Decrease (increase) in operating accounts receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease in property, plant and equipment in trust due
to saleIncrease (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Refund of leasehold and guarantee deposits received intrust
Proceeds from leasehold and guarantee deposits
received in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation
bonds
Proceeds from issuance of investment units
Distributions paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1- 19 -

Current fiscal period(From June 1, 2021
to November 30, 2021)

7,250,469
1,352,409
7,860

7,781,857
1,374,955
5,229

8,841

9,186

(85)
656,185–
186,41244,474(54,509)(205,702)(82)
676,825
93,250198,829(310,112)(64,232)
203,964–

11,540,850

18,685(19,264)
157,127
15,412(1,979)9,416,336
85(670,357)(954)
8,745,109(50,957)
37,22889,143
1,091
63,83821,650,868
82(647,967)(650)
21,002,333(850,086)(51,376,826)(1,191,268)(1,190,565)

1,474,589

2,679,605(566,765)(49,887,787)–(6,518,000)
17,268,352(12,500,000)

3,898,245(3,900,000)
25,723,217(13,750,000)

1,286,500

3,879,871–(7,364,538)(19,887)(7,847,572)
330,772
17,551,079
17,881,851

22,499,459(7,254,890)(34,589)
31,061,312
2,175,858
17,881,851
20,057,710*1

(6) Notes on Assumption of Going Concern
Not applicable.
(7) Notes on Important Accounting Policies
1. Method ofdepreciation of noncurrent assets(1) Property, plant and equipment (including trust assets)
The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 70 years
Structures
2 to 66 years
Machinery and equipment
2 to 33 years
Tools, furniture and fixtures
2 to 15 years(2) Intangible assets
Internal use software is amortized by the straight-line method over the
expected useful life (5 years).
(3) Long-term prepaid expenses
The straight-line method is used.

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

(1) Accounting for income
3. Accounting forincome and expenses
Details of major performance obligations and typical timing of satisfying
the performance obligations (timing when revenue is recognized) withregard to the Investment Corporation’s revenue from contracts withcustomers are as follows.
i) Sale of real estate properties
For sale of real estate properties, revenue is recorded at the time when thebuyer, a customer, obtains control of the real estate property, etc., byfulfilling the delivery obligation set forth in the agreement for the sale of
the real estate property.
ii) Utilities income
For utilities income, revenue is recorded according to supply of electricity,water, etc. to the tenant, a customer, based on the contract for lease of thereal estate property, etc. and any accompanying agreement. Of utilities
income, for such income for which the Investment Corporation isconsidered to be an agent, the net amount of the amount received as
charges for electricity, gas, etc. supplied by other parties less the amount
paid to the other parties is recognized as revenue.
(2)
Property-related taxes
For property tax, city planning tax, depreciable asset tax for real properties
held, the amount of tax levied corresponding to the calculation period isrecorded as expenses related to leasing business.
The settlement money for property tax that is paid to the disposing entity
for acquisition of real properties (so-called “amount equivalent to propertytax”) is not recorded as expenses related to leasing business but included in
the acquisition costs for the related properties. The amount equivalent toproperty tax included in acquisition cost for properties for the current fiscal
period is ¥56,701 thousand.

- 20 -

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

5. Scope of cash (cash Cash and cash equivalents include cash on hand, cash in trust, demandand cash equivalents) deposits, deposits in trust, and highly liquid short-term investments that arein the statement ofreadily convertible, bear little risk in price fluctuations, and mature withincash flows
three months of the date of acquisition.
6. Other matters related (1) Accounting method for beneficial interests in trust with real estate, etc. as
to the preparation oftrust asset
financial statements
With regard to beneficial interests in trust with real estate, etc. in holding
as trust asset, all assets and liabilities as well as all revenue and expense
items associated with all trust assets are accounted for under the respective
account items of the balance sheet and statement of income.
Of the trust assets accounted for under the respective account items, thefollowing items with significance are separately indicated on the balance
sheet.
i) Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment intrust; tools, furniture and fixtures in trust; land in trust; construction inprogress in trust; and land leasehold interests in trustiii) Leasehold and guarantee deposits received in trust(2) Accounting method for consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for by the taxexclusion method. Consumption taxes unqualified for deduction for tax
purposes for non-current assets, etc. are included in acquisition cost foreach asset.
(8) Notes on Changes in Accounting Policies
1. Application of Accounting Standard for Fair Value Measurement, Etc.
The Investment Corporation has applied the “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal period
under review, and it has applied the new accounting policy provided for by the Accounting Standard for
Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for inparagraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The impact ofthese changes on the financial statements is immaterial.
2. Application of Accounting Standard for Revenue Recognition, Etc.
The Investment Corporation has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and “Implementation Guidance on Accounting Standard for Revenue- 21 -

Recognition” (ASBJ Guidance No. 30, March 26, 2021) from the beginning of the fiscal period underreview, and it has recognized revenue at the time the control of promised goods or services is transferredto the customer at the amount expected to be received upon exchange of said goods or services. The
impact of the application of the accounting standard, etc. on the financial statements is immaterial. In
accordance with the transitional measures provided for in paragraph 89-3 of the Accounting Standard for
Revenue Recognition, the note on “Revenue Recognition” for the previous fiscal period is not provided.
Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2020 to May 31, 2021)
1.

2.

Reason for Provision, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments

Related assets, etc.

Reason for provision

Deferred gains or losses on hedges

Recognition of loss on valuationof interest rate swaps

11,568Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

Current fiscal period (From June 1, 2021 to November 30, 2021)
1.

2.

Reason for Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments

Related assets, etc.

Reason for provision

Deferred gains or losses on hedges

Elimination of loss on valuationof interest rate swaps(39,237)

Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

(9) Notes to Financial Statements
Notes to Balance Sheet
1. Commitment Line Contracts
The Investment Corporation has the commitment line contracts with three of the banks with which it does
business.
As of May 31, 2021
Total amount specified in the commitmentline contracts¥21,000,000 thousand¥21,000,000 thousand––¥21,000,000 thousand¥21,000,000 thousand

Loan balance
Net balance

As of November 30, 2021

- 22 -

*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts andInvestment Corporations
As of May 31, 2021
¥50,000 thousand

As of November 30, 2021
¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2020 to May 31, 2021)
1.

Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
RelatedReason for
Initialbeginning provision reversal
end ofreversal
assets, etc.
provisionamountof period for period for period period
Recognition
Deferredof loss on
gains orvaluation of
28,535
3,084
25,450–28,535–losses oninterest rate
hedgesswaps

2.

Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

Current fiscal period (From June 1, 2021 to November 30, 2021)
1.

Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
RelatedReason for
InitialReason for
beginning provision reversal
end ofassets, etc.
provisionamountreversalof period for period for period period
Recognition
Deferredof loss on
gains orvaluation of
40,10328,535
11,568–40,103–losses oninterest rate
hedgesswaps

2.

Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

- 23 -

Notes to Statement of Income*1. Breakdown of Profit (Loss) from Real Estate Leasing Business
Previous fiscal period(From December 1, 2020
to May 31, 2021)(Unit: Thousands of yen)
Current fiscal period(From June 1, 2021
to November 30, 2021)

12,674,111

13,170,192

Common service fees

712,876

706,032

Parking lot fees

281,003

307,780

Other rent revenue

97,361

A. Real estate leasing businessrevenues
Leasing business revenue
Rent

B.

13,765,352

99,55014,283,556

Other leasing business revenue

950,325

1,112,460

Total real estate leasing businessrevenues

14,715,678

15,396,016

Real estate leasing business
expenses
Expenses related to leasing
business
Management operation
expenses

1,325,956

1,307,867

Utilities expenses

722,712873,305

Tax and public dues

1,281,248

1,374,652

Insurance

13,031

13,324

Repair and maintenanceexpenses

384,062276,218

1,352,155

1,374,701

Loss on retirement of noncurrent assets

7,860

5,229

Other expenses related toleasing business

282,797

Depreciation

C.

5,369,825

326,250

5,551,549

Total real estate leasing business
expenses

5,369,825

5,551,549

Profit (loss) from real estateleasing business (A – B)

9,345,853

9,844,466- 24 -

*2.

Breakdown of Gain (Loss) on Sale of Real Estate Properties
Previous fiscal period (From December 1, 2020 to May 31, 2021)
Not applicable.
Current fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Tokyu Plaza Akasaka (50% co-ownership interest)
11,800,000
Income from sale of real estate properties
11,540,850
Costs of sale of real estate properties
8,826
Other costs of sale
250,323
Gain on sale of real estate properties*3.

Transactions with Major Unitholders
Previous fiscal period(From December 1, 2020
to May 31, 2021)(Unit: Thousands of yen)
Current fiscal period(From June 1, 2021
to November 30, 2021)

Operating transactions
Operating revenue

1,863,166

974,811(Note) Due to the Investment Corporation’s issuance of new investment units through public offering thatwas conducted on September 7, 2021, Tokyu Land Corporation no longer qualifies as a major
unitholder. Consequently, the transaction amount stated above is for the amount until the time
immediately preceding when that company ceased to qualify as a major unitholder.
Notes to Statement of Unitholders’ Equity
Previous fiscal period(From December 1, 2020
to May 31, 2021)

Current fiscal period(From June 1, 2021
to November 30, 2021)*1. Total number of authorized investment units
and total number of investment units issued
Total number of authorized investment units
Total number of investment units issued

4,000,000 units

4,000,000 units

771,224 units

822,754 units

Notes to Statement of Cash Flows*1. Reconciliation between Cash and Cash Equivalents at End of Period and the Amount on the Balance
Sheet
Previous fiscal period(From December 1, 2020
to May 31, 2021)

Current fiscal period(From June 1, 2021
to November 30, 2021)

Cash and deposits¥14,227,970 thousand¥15,986,135 thousand

Cash and deposits in trust¥3,653,881 thousand¥4,071,575 thousand

Cash and cash equivalents¥17,881,851 thousand¥20,057,710 thousand- 25 -

Notes on Financial Instruments
1. Matters Regarding Financial Instruments(1) Policy for Financial Instruments
The Investment Corporation raises funds by borrowing, issuing investment corporation bonds, or issuinginvestment units for the purpose of acquiring real estate-related assets and repaying interest-bearing debt.
When raising funds, the Investment Corporation aims to sustain stable financing capability for a long time
at low cost by enhancing its capital adequacy and maintaining conservative interest-bearing debt, looking
for attributes such as extended borrowing periods for interest-bearing debt, fixed interest rates, anddiversified due dates to ensure financial stability and avoid the risk of interest-rate hikes.
We also invest temporary excess funds in deposits in general, taking safety and liquidity, etc. into accountand carefully considering the interest-rate environment and our cash management.
We may carry out derivatives transactions for the purpose of hedging the interest-rate risk of borrowings
and other risks, but do not engage in speculative transactions.
(2) Content and Risks of Financial Instruments and Risk Management System
As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit
risks such as the insolvency of the financial institutions in which the excess funds are deposited. However,
we deposit excess funds carefully by limiting the period of deposits to the short term, taking safety andliquidity, etc. into account and carefully considering the financial environment and our cash management.
Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate andrefinancing of existing borrowings. Leasehold and guarantee deposits received are deposits provided bytenants. Borrowings, investment corporation bonds, leasehold and guarantee deposits received are
exposed to liquidity risks at the time of repayment or redemption. However, these risks are managed
through management of liquidity in hand by preparing a monthly funding plan, efforts to reduce liquidity
risk on borrowings and investment corporation bonds by diversifying repayment periods, etc., and othermeans.
Floating-rate borrowings are also exposed to the risk of fluctuations in interest-rates. However, these risks
are managed through derivative transactions (interest rate swaps) as hedging instruments in certain
floating-rate borrowings.
(3) Supplemental Remarks on the Fair Value of Financial Instruments
As certain assumptions are made in calculating the fair value of financial instruments, if different
assumptions are used, these values could vary. Furthermore, the contract amounts related to derivativetransactions, etc. stated in “Derivative transactions” on page 27 should not be considered indicative of themarket risk associated with derivative transactions.
2. Matters Regarding Fair Values of Financial Instruments
Carrying amounts, fair values, and the differences between the two values as of May 31, 2021, are as shown
below. Notes on “cash and deposits,” “cash and deposits in trust” and “short-term borrowings” are omitted,
because they are settled in cash and in a short time and therefore the fair value approximates the book value.
A note on “leasehold and guarantee deposits received in trust” is omitted because it is immaterial.
(Unit: Thousands of yen)
Carrying amount
Fair value
Difference(1) Current portion of long-termborrowings

27,850,000

27,891,765

41,765(2) Investment corporation bonds

22,800,000

22,975,707

175,707(3) Long-term borrowings

193,500,000

195,464,522

1,964,522

Total liabilities

244,150,000

246,331,994

2,181,994(39,646)(39,646)–

Derivative transactions- 26 -

Carrying amounts, fair values, and the differences between the two values as of November 30, 2021, are asshown below. Notes on “cash and deposits,” “cash and deposits in trust” and “short-term borrowings” areomitted, because they are settled in cash and in a short time and therefore the fair value approximates thebook value. A note on “leasehold and guarantee deposits received in trust” is omitted because it isimmaterial.
Carrying amount

Fair value(Unit: Thousands of yen)
Difference(1) Current portion of investment
corporation bonds

1,000,000

1,004,1254,125(2) Current portion of long-termborrowings

26,100,000

26,193,790

93,790(3) Investment corporation bonds

25,700,000

26,082,115

382,115(4) Long-term borrowings

207,550,000

209,313,703

1,763,703

Total liabilities

260,350,000

262,593,735

2,243,735

(409)

(409)

–

Derivative transactions(Note 1) Measurement Methods for Fair Values of Financial Instruments
Liabilities(1) Current portion of investment corporation bonds, (3) Investment corporation bonds
These fair values are determined by discounting the total of principal and interest at a rate taking into
account the remaining period and credit risk of the said investment corporation bonds.
(2) Current portion of long-term borrowings, (4) Long-term borrowings
These fair values are determined by discounting the total of principal and interest at the rate assumed
when a new loan is made corresponding to the remaining period. The book value is used as the fairvalue of those borrowings with floating interest rate, given that the fair value is almost the same as thebook value, as their interest rates are reviewed on a short-term interval to reflect market interest rates(however, for long-term borrowings with floating interest rate to which special treatment for interest
rate swaps is applied, the fair value is the value calculated by discounting the sum of principal andinterest, which are treated in combination with the said interest rate swap, at a reasonable rateestimated for a similar new loan).
Derivative transactions
Please refer to “Notes on Derivative Transactions” on pages 28 and 29.

- 27 -

(Note 2) Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (May 31, 2021)
Within1 yearInvestment corporationbonds
Long-term borrowings
Total

–

1–2 years

2–3 years

1,000,000–(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years
7,000,000

2,000,000

12,800,000

27,850,000 26,500,000 32,750,000 24,500,000 27,500,000

82,250,000

27,850,000 27,500,000 32,750,000 31,500,000 29,500,000

95,050,000

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (November 30, 2021)
Within1 year

1–2 years

2–3 years–

5,000,000(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Investment corporation
bonds

1,000,000

Long-term borrowings

26,100,000 32,250,000 29,500,000 26,500,000 24,500,000 94,800,000

Total

2,000,000

2,000,000 16,700,000

27,100,000 32,250,000 34,500,000 28,500,000 26,500,000 111,500,000

Notes on Derivative Transactions
1. Derivative Transaction to Which Hedge Accounting Is Not Applied(As of May 31, 2021)
Not applicable.
(As of November 30, 2021)
Not applicable.
2. Derivative Transaction to Which Hedge Accounting Is Applied(As of May 31, 2021)
The following table shows contract amount or principal amount, etc. set forth in the contract as of theaccount closing date by method of hedge accounting.
(Unit: Thousands of yen)Hedge
accounting

Type ofderivativetransactions

Deferred hedge
accounting

Interest rate
swaps
Receive floating
Pay fixed

Interest rate
Special treatment
swaps
for interest rate
Receive floating
swaps
Pay fixed

Major
hedgeditems

Amount of contract
Fair value

Calculation
method forfair value

Long-term
12,000,000 12,000,000
borrowings(39,646)

Based onprices, etc.
indicated bypartnerfinancial
institutions

Long-term
18,140,000 18,140,000
borrowings*–- 28 -

Portion due
after 1 year

(As of November 30, 2021)
The following table shows contract amount or principal amount, etc. set forth in the contract as of theaccount closing date by method of hedge accounting.
(Unit: Thousands of yen)Hedge
accounting

Type ofderivativetransactions

Deferred hedge
accounting

Interest rate
swaps
Receive floating
Pay fixed

Major
hedgeditems

Amount of contract
Portion due
after 1 year

Long-term
12,000,000 12,000,000
borrowings

Fair value

Calculation
method forfair value(409)

Based onprices, etc.
indicated bypartnerfinancial
institutions

Interest rate
Special treatment
Long-term
swaps
for interest rate
18,140,000 18,140,000*–
Receive floating borrowings
swaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral
part of long-term borrowings, a hedged item. Thus, their fair values are included in the fair value of
long-term borrowings. (Please refer to the preceding “Notes on Financial Instruments, 2. Matters
Regarding Fair Values of Financial Instruments, (Note 1) Liabilities (4)” on page 27.)
Notes on Tax Effect Accounting
1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of May 31, 2021

As of November 30, 2021

Deferred tax assets
Non-deductible amount for tax purposesof enterprise tax payable¥2 thousand¥2,765 thousand

Deferred gains or losses on hedges¥12,472 thousand¥141 thousand

Subtotal of deferred tax assets¥12,475 thousand¥2,906 thousand

Valuation allowance¥(12,472) thousand¥(141) thousand¥2 thousand¥2,765 thousand¥2 thousand¥2,765 thousand

Total deferred tax assets
Net deferred tax assets

2. Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax
Rate after Application of Tax Effect Accounting
As of May 31, 2021
Effective statutory tax rate

As of November 30, 2021

31.46%

34.59%(31.46)%(34.23)%

0.01%

0.01%

0.01%

0.37%

Adjustments
Distributions paid included indeductibles
Other
Effective income tax rate after applicationof tax effect accounting- 29 -

Notes on Transactions with Related Parties
1. Parent Company and Major Corporate Unitholders
Previous fiscal period (From December 1, 2020 to May 31, 2021)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Transaction

Receipt ofleasehold andguarantee
deposits
21-1
Major
Dogenzaka 1Tokyu Land
unit
chome,
Corporation-holder
Shibuya-ku,
Tokyo

57,551

Real estatebusiness

10.52%None

Major
Refund ofunitholder, leasehold andand rent
guarantee
anddeposits
manage- received
ment ofproperties
Rentalrevenues, etc.

Account
title

Balance at
end ofperiod(Thousandsof yen)170,771 Leasehold
andguarantee
deposits
received in
95,433 trust

2,459,904

Operatingaccounts
1,863,166 receivable

48,685

Advances
received

196,033

Transaction
amount(Thousandsof yen)Current fiscal period (From June 1, 2021 to November 30, 2021)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Transaction

Receipt ofleasehold andguarantee
deposits
21-1
Major
Dogenzaka 1Tokyu Land
unit
chome,
Corporation-holder
Shibuya-ku,
Tokyo

57,551

Real estatebusiness

10.52%None

Major
Refund ofunitholder, leasehold andand rent
guarantee
anddeposits
manage- received
ment ofproperties
Rentalrevenues, etc.

(Note)

Transaction
amount(Thousandsof yen)Balance at
end ofAccount
periodtitle(Thousandsof yen)11,581 Leasehold
andguarantee
deposits
received in
10,442 trust

2,461,043

Operatingaccounts
974,811 receivable

84,988Advances
received

60,619Due to the Investment Corporation’s issuance of new investment units through public offering that was conducted on
September 7, 2021, Tokyu Land Corporation no longer qualifies as a related party. Consequently, the percentage ofvoting rights owning (owned), transaction amount and the ending balance stated above, are for the percentage andamount as of the time immediately preceding when that company ceased to qualify as a related party.

2. Associates, etc.
Previous fiscal period (From December 1, 2020 to May 31, 2021)
Not applicable.
Current fiscal period (From June 1, 2021 to November 30, 2021)
Not applicable.

- 30 -

3. Sister companies, etc.
Previous fiscal period (From December 1, 2020 to May 31, 2021)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Account
title

Balance at
end ofperiod(Thousandsof yen)16,924 Leasehold
andguarantee
deposits
received in
61,835 trust

6,195,007

Operatingaccounts
receivable

186,630

Advances
received

42,441

1,066,671 Leasehold
andguarantee
deposits
received in
845,808 trust

9,445,453

Operatingaccounts
5,914,339 receivable

204,877

Advances
received

38,366

Real estate
management
fee

Operating905,983 accounts
payable194,553

Payment of
asset
management
fee

Other
1,104,682 accrued
expenses494,734

Transaction

Receipt ofleasehold andguarantee
deposits
Tokyu
Land SC
Subsidiary
Manageof majormentunitholder
Corporation

16-3,
Dogenzaka
1-chome,
Shibuya-ku,
Tokyo

100

Real estate
managementbusiness–

None

Rent andmanagement ofproperties

Refund ofleasehold andguarantee
deposits
received

Rentalrevenues, etc.

Receipt ofleasehold andguarantee
deposits

10-1, Yoga
Subsidiary Tokyu
4-chome,of major Community
Setagayaunitholder Corp.
ku, Tokyo

1,653

Real estate
managementbusiness–

None

Rent andmanagement ofproperties

Refund ofleasehold andguarantee
deposits
received
Rentalrevenues, etc.

21-1,
Subsidiary TLC REIT Dogenzaka
of major Manage1-chome,unitholder ment Inc. Shibuya-ku,
Tokyo(Note 1)
(Note 2)200

Investment
managementbusiness

–

None

Asset
Manager

Transaction
amount(Thousandsof yen)3,968,534

Of the amounts above, the transaction amount does not include consumption taxes, and the ending balance includes
consumption taxes.
The transaction terms are based on current market practices.

- 31 -

Current fiscal period (From June 1, 2021 to November 30, 2021)

Attribute

Name

Address

Share
Relationship
Percentage
capital orof voting Interlockinvestment Business or
Businessrightsing
in capital occupation
relationowning
officers,(Millionsship(owned)etc.
of yen)Account
title

Balance at
end ofperiod(Thousandsof yen)4,597 Leasehold
andguarantee
deposits
received in
36,633 trust

6,162,971

Operatingaccounts
receivable

290,903

Advances
received

8,234

258,190 Leasehold
andguarantee
deposits
received in
130,060 trust

9,573,583

Operatingaccounts
3,004,802 receivable

268,057

Advances
received

16,840Real estate
management
fee

Operating412,899 accounts
payable160,612

Payment of
asset
management
fee

Other
567,802 accrued
expenses

262,394

Transaction

Receipt ofleasehold andguarantee
deposits
Tokyu
Land SC
Subsidiary
Manageof majormentunitholder
Corporation

16-3,
Dogenzaka
1-chome,
Shibuya-ku,
Tokyo

100

Real estate
managementbusiness–

None

Rent andmanagement ofproperties

Refund ofleasehold andguarantee
deposits
received

Rentalrevenues, etc.

Receipt ofleasehold andguarantee
deposits

10-1, Yoga
Subsidiary Tokyu
4-chome,of major Community
Setagayaunitholder Corp.
ku, Tokyo

1,653

Real estate
managementbusiness–

None

Rent andmanagement ofproperties

Refund ofleasehold andguarantee
deposits
received
Rentalrevenues, etc.

21-1,
Subsidiary TLC REIT Dogenzaka
of major Manage1-chome,unitholder ment Inc. Shibuya-ku,
Tokyo(Note 1)
(Note 2)
(Note 3)200

Investment
managementbusiness

–

None

Asset
Manager

Transaction
amount(Thousandsof yen)2,051,470

Of the amounts above, the transaction amount does not include consumption taxes, and the ending balance includes
consumption taxes.
The transaction terms are based on current market practices.
Tokyu Land Corporation no longer qualifies as a related party due to the Investment Corporation’s issuance of new
investment units through public offering that was conducted on September 7, 2021. In conjunction with this, Tokyu
Land SC Management Corporation, Tokyu Community Corp. and TLC REIT Management Inc. are no longer relatedparties. Consequently, the percentage of voting rights owning (owned), transaction amount and the ending balancestated above, are for the percentage and amount as of the time immediately preceding when each company ceased toqualify as a related party.

- 32 -

Notes on Investment and Rental Properties
The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions
for rental revenue. The carrying amounts on the balance sheet, changes during the fiscal period, and fairvalues of investment and rental properties are as follows.
(Unit: Thousands of yen)
Current fiscal period
Previous fiscal period(From June 1, 2021
(From December 1, 2020
to November 30, 2021)
to May 31, 2021)

Use
Carrying amount on the balance sheet
Balance at beginning of period
Urban Retail
Properties

198,465,968

198,195,674

Changes during period(270,294)(11,896,039)

Balance at end of period

198,195,674

186,299,634

232,977,000

221,314,000

204,673,488

204,632,303

Changes during period(41,185)

50,461,329

Balance at end of period

204,632,303

255,093,632

246,570,000

298,380,000

102,437,930

102,196,027

Changes during period(241,903)(151,126)

Balance at end of period

102,196,027

102,044,900

122,380,000

123,690,000

505,577,388

505,024,005

Changes during period(553,383)

38,414,162

Balance at end of period

505,024,005

543,438,167

601,927,000

643,384,000

Fair value at end of period
Carrying amount on the balance sheet
Balance at beginning of periodTokyo Office
Properties

Fair value at end of period
Carrying amount on the balance sheet
Activia
Account
Properties

Balance at beginning of period

Fair value at end of period
Carrying amount on the balance sheet
Balance at beginning of period
Total

Fair value at end of period(Note 1) The carrying amount on the balance sheet is the acquisition cost less accumulated depreciation.
(Note 2) The main reason for the increase in the current fiscal period is the acquisition of four properties (APLACE Tamachi East, Meguro Tokyu Building, Q plaza Shinjuku-3chome and A-PLACE Shibuya
Nampeidai) worth ¥50,650,190 thousand. The decrease is mainly due to the disposition of Tokyu
Plaza Akasaka worth ¥11,540,850 thousand and the provision of depreciation worth ¥1,374,701
thousand.
(Note 3) The fair value at end of period is the appraisal value provided by an outside real estate appraiser.
The profit/loss concerning investment and rental properties for the current fiscal period is indicated under“Notes to Statement of Income.”- 33 -

Notes on Revenue Recognition
Information on disaggregation of revenue from contracts with customers
Current fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Revenue from contracts withcustomers *1
Sale of real estate properties

Revenues from external customers

11,800,000

Utilities income

250,323

879,402879,402–

14,516,614

12,679,402

15,646,339

OthersTotal*2*1 Leasing business revenue, etc. that is subject to ASBJ Statement No. 13 “Accounting Standard for Lease
Transactions” and transfer of real estate properties, etc. that is subject to Japanese Institute of Certified
Public Accountants Accounting Practice Committee Report No. 15 “Practical Guidelines on Accounting
by Transferors for Derecognition of Real Estate Securitized by means of Special Purpose Companies” arenot subject to the Accounting Standard for Revenue Recognition, and therefore are not included in theabove amount. Major revenue from contracts with customers is income from sale of real estate properties
and utilities income.
*2 Since income from sale of real estate properties is recorded as gain (loss) on sale of real estate properties
in the statement of income, the amount of income from sale of real estate properties less costs of sale ofreal estate properties and other costs of sale is shown.
Per Unit Information
Previous fiscal period(From December 1, 2020
to May 31, 2021)
Net assets per unit
Basic earnings per unit

Current fiscal period(From June 1, 2021
to November 30, 2021)¥331,397¥338,760¥9,400¥9,754(Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number ofinvestment units for the period (previous fiscal period 771,224 units; current fiscal period 794,871
units). Diluted earnings per unit is not stated, as there is no potential investment unit.
(Note 2) The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From December 1, 2020
to May 31, 2021)

Current fiscal period(From June 1, 2021
to November 30, 2021)

7,249,804

7,753,375––

Profit attributable to common investment units(Thousands of yen)

7,249,804

7,753,375

Average number of investment units for theperiod (Units)771,224

794,871

Profit (Thousands of yen)Amount not attributable to common
unitholders (Thousands of yen)

Significant Subsequent Events
Not applicable.
Omission of Disclosure
As the need for disclosing notes on lease transactions, securities, retirement benefits, equity in earnings ofaffiliates, asset retirement obligations, and segment information in this financial report is not considered to be
substantial, the disclosure of these items is omitted.
- 34 -

(10) Changes in Total Number of Investment Units Issued and Outstanding
The Investment Corporation carried out issuances of new investment units on September 7, 2021, andSeptember 28, 2021 (49,030 units in a capital increase through public offering and 2,500 units in a thirdparty allotment), thus procuring funds of ¥22,592 million. Changes in total investments and the number ofinvestment units issued up to the current fiscal period are as follows:

Date

Summary

Total investments(Thousands of yen)
ChangeBalance

Total number ofinvestment units
issued(Units)ChangeRemarks

Balance

September 7, 2011

Establishment
through private
placement

200,000

200,000400

400 (Note 1)

June 12, 2012

Capital increase
through public
offering

90,834,705

91,034,705

204,100

204,500 (Note 2)

July 10, 2012

Capital increase
through thirdparty allotment

339,128

91,373,833

762

205,262 (Note 3)

December 16,
2013

Capital increase
through public
offering

32,636,569 124,010,403

43,100248,362 (Note 4)

January 15, 2014

Capital increase
through thirdparty allotment

2,044,518 126,054,921

2,700

251,062 (Note 5)

December 17,
2014

Capital increase
through public
offering

22,800,626 148,855,547

24,050275,112 (Note 6)

January 8, 2015

Capital increase
through thirdparty allotment

1,915,063 150,770,610

2,020

277,132 (Note 7)

October 1, 2015

Investment unit
split

– 150,770,610

277,132554,264 (Note 8)

December 15,
2015

Capital increase
through public
offering

19,152,091 169,922,702

41,870596,134 (Note 9)

January 6, 2016

Capital increase
through thirdparty allotment

1,610,111 171,532,813

3,520

599,654 (Note 10)

December 1, 2016

Capital increase
through public
offering

28,583,994 200,116,808

61,040660,694 (Note 11)

December 15,
2016

Capital increase
through thirdparty allotment

2,116,639 202,233,447

4,520

665,214 (Note 12)

December 13,
2017

Capital increase
through public
offering

13,793,296 216,026,743

31,090696,304 (Note 13)

December 26,
2017

Capital increase
through thirdparty allotment

1,064,776 217,091,520

2,400

698,704 (Note 14)

December 19,
2018

Capital increase
through public
offering

29,036,462 246,127,982

67,320766,024 (Note 15)

January 7, 2019

Capital increase
through thirdparty allotment

2,242,864 248,370,846

5,200

771,224 (Note 16)- 35 -

Date

Summary

Total investments(Thousands of yen)
ChangeBalance

Total number ofinvestment units
issued(Units)ChangeRemarks

Balance

September 7, 2021

Capital increase
through public
offering

21,496,615 269,867,461

49,030820,254 (Note 17)

September 28,
2021

Capital increase
through thirdparty allotment

1,096,095 270,963,556

2,500

822,754 (Note 18)(Note 1) The Investment Corporation was established with an offering price per unit of ¥500,000.
(Note 2) New investment units were issued by public offering with an offering price per unit of ¥460,000(paid-in amount of ¥445,050 per unit) in order to raise funds for the acquisition of new
properties, etc., and then investment operations were commenced.
(Note 3) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥445,050 per unit.
(Note 4) New investment units were issued by public offering with an offering price per unit of ¥782,925(paid-in amount of ¥757,229 per unit) in order to raise funds for the acquisition of new
properties, etc.
(Note 5) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥757,229 per unit.
(Note 6) New investment units were issued by public offering with an offering price per unit of ¥979,020(paid-in amount of ¥948,051 per unit) in order to raise funds for the acquisition of new
properties.
(Note 7) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥948,051 per unit.
(Note 8) A two-for-one split of the investment units has been implemented, with September 30, 2015 as
the record date and October 1, 2015 as the effective date.
(Note 9) New investment units were issued by public offering with an offering price per unit of ¥472,360(paid-in amount of ¥457,418 per unit) in order to raise funds for the acquisition of new
properties, etc.
(Note 10) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥457,418 per unit.
(Note 11) New investment units were issued by public offering with an offering price per unit of ¥483,326(paid-in amount of ¥468,283 per unit) in order to raise funds for the acquisition of new
properties.
(Note 12) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥468,283 per unit.
(Note 13) New investment units were issued by public offering with an offering price per unit of ¥458,150(paid-in amount of ¥443,657 per unit) in order to raise funds for the acquisition of new
properties.
(Note 14) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥443,657 per unit.
(Note 15) New investment units were issued by public offering with an offering price per unit of ¥445,410(paid-in amount of ¥431,320 per unit) in order to raise funds for the acquisition of new
properties.
(Note 16) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥431,320 per unit.
(Note 17) New investment units were issued by public offering with an offering price per unit of ¥452,760(paid-in amount of ¥438,438 per unit) in order to raise funds for the acquisition of new
properties.
- 36 -

(Note 18) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥438,438 per unit.
(Note 19) The above does not take into account the changes in unitholders’ capital arising from theimplementation of distributions in excess of net earnings from allowance for temporary
difference adjustments.

- 37 -

3. Reference Information(1) Composition of Invested Assets

Type ofassetsPrevious fiscal period

Current fiscal period(As of May 31, 2021)(As of November 30, 2021)

Total amount
held(Millions ofyen)(Note 1)

Percentage tototal assets

Total amount
held(Millions ofyen)(Note 1)

Percentage tototal assets

Urban Retail Properties

–

–

–

–

Tokyo Office Properties

–

–

–

–

Activia Account Properties

–

–

–

–

The five central wards ofTokyo (Note 3)

–

–

–

–

Wards of Tokyo other than
the five central wards

–

–

–

–

Three major metropolitan
areas (Note 4)

–

–

–

–

Other locations

–

–

–

–

Subtotal

–

–

–

–

Urban Retail Properties

198,195

37.7

186,299

32.9

Tokyo Office Properties

204,63238.9

255,09345.0

Activia Account Properties

102,19619.5

102,044

18.0

The five central wards ofTokyo (Note 3)

323,82261.6

346,305

61.2

Wards of Tokyo other than
the five central wards

32,821

6.2

49,095

8.7

Three major metropolitan
areas (Note 4)

137,31026.1

137,054

24.2

Other locations

11,0702.1

10,982

1.9

Subtotal

505,024

96.1

543,438

96.0

Total real estate assets

505,024

96.1

543,438

96.0

Deposits and other assets

20,354

3.9

22,8184.0

Total assets (Note 5)525,379100.0

566,257

100.0

Category(%)(Note 2)(%)
(Note 2)

By property type

By locationRealestateBy property type

By locationRealestate intrust- 38 -

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Total liabilities (Notes 5, 6)

269,79751.4

287,540

50.8

Total net assets (Note 5)

255,58148.6

278,71649.2(Note 1) The total amount held is based on the carrying amounts on the balance sheet as of the end ofeach fiscal period (for real estate and real estate in trust, book value less depreciation expenses),in accordance with the asset valuation method set forth in the Articles of Incorporation of theInvestment Corporation.
(Note 2) Figures are rounded to the nearest tenth.
(Note 3) “The five central wards of Tokyo” refers to Chiyoda ward (Chiyoda-ku), Chuo ward (Chuo-ku),
Minato ward (Minato-ku), Shinjuku ward (Shinjuku-ku) and Shibuya ward (Shibuya-ku) inTokyo.
(Note 4) “Three major metropolitan areas” refers to the Tokyo area (Tokyo, Kanagawa Prefecture,
Saitama Prefecture and Chiba Prefecture), the Chukyo area (Aichi Prefecture) and the Kinki
area (Osaka Prefecture, Kyoto Prefecture and Hyogo Prefecture); the same shall apply
hereinafter.
(Note 5) Total assets, total liabilities and total net assets represent the amounts reported in the balance
sheet as of the end of each fiscal period.
(Note 6) Total liabilities include the obligation to refund leasehold and guarantee deposits.
(2) Investment Assetsi) Major investment securities
Not applicable.
ii) Investment properties
Properties in trust held by the Investment Corporation are included in the below section “iii) Other
investment assets.”- 39 -

iii) Other investment assets(A) Overview of real estate and beneficial interests in real estate trust
The following table shows property name, acquisition price, book value at the end of the fiscal period,
assessed value at the end of the fiscal period, return price and investment ratio related to the assets
held by the Investment Corporation as of the end of the 20th fiscal period. Figures shown in the table
are as of November 30, 2021 unless otherwise provided.
a. Overview of assets held (1)(As of November 30, 2021)

Urban Retail Properties

Category

Return price (Note 4)
Property
number(Note 1)

Property name

Direct capitalization
DCF method
methodBook value Assessed
Acquisition
Investment
at end ofvalue at Price based
price
ratio
on
directDirectPrice
based
Terminal
periodend ofDiscount
capitaliza- capitaliza- on DCF
capitalizaperiod
rate
tion
tion rate
methodtion rate
method(Millionsof yen)(Note 2)

(Millionsof yen)(Note 3)

(Millionsof yen)(Note 4)

(Millionsof yen)(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)UR-1

Tokyu Plaza Omotesando
Harajuku (Note 6)

45,00044,52062,10063,075

2.7

61,050

2.4

2.8

8.2

UR-3

Q plaza EBISU (Note 7)

8,430

8,144

11,70011,9003.2

11,6003.4/3.3

3.4

1.5

UR-5

Kyoto Karasuma Parking
Building

8,860

8,644

10,40010,500

4.7

10,400

4.7

4.9

1.6

UR-7

Kobe Kyu Kyoryuchi
25Bankan

21,33020,103

26,70027,3003.8

26,100

3.6

4.0

3.9

UR-8

A-FLAG SAPPORO

4,410

4,708

7,670

7,690

5.4

7,660

5.2

5.6

0.8

UR-9

A-FLAG SHIBUYA

6,370

6,353

7,910

7,970

3.9

7,890

3.7

4.1

1.2

UR-10 Q plaza SHINSAIBASHI

13,35013,365

14,30014,2003.6

14,400

3.4

3.8

2.4

UR-11 A-FLAG KOTTO DORI

4,370

4,383

4,850

4,860

3.4

4,850

3.1

3.5

0.8

A-FLAG BIJUTSUKAN
UR-12
DORI

4,700

4,701

4,860

4,950

3.5

4,770

3.3

3.7

0.9

UR-13

A-FLAG DAIKANYAMA
WEST

2,280

2,434

2,300

2,320

3.9

2,270

3.7

4.1

0.4

A-FLAG KITA
UR-14
SHINSAIBASHI

4,725

4,832

4,670

4,750

3.9

4,590

3.6

4.0

0.9

DECKS Tokyo Beach
UR-15(Note 6)

12,74012,904

12,054

12,5444.0

11,809

3.8

4.2

2.3

Tokyu Plaza Ginza (Land)
UR-16(Notes 6, 8)

37,50037,89539,00038,7002.6

39,000

2.5

–

6.8

13,20013,307

12,80012,9603.0

12,600

2.7

3.1

2.4

187,265

186,299

221,314

223,719–

218,989

–

–

34.2

UR-17

Q plaza HARAJUKU(Note 6)
Subtotal- 40 -

Tokyo Office Properties

Category

Return price (Note 4)
Property
number(Note 1)

Direct capitalization
methodProperty name(Millionsof yen)(Note 2)

(Millionsof yen)(Note 3)

(Millionsof yen)(Note 4)

(Millionsof yen)(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)

TO-1

TLC Ebisu Building

7,400

7,116

11,80012,2003.6

11,600

3.7

3.8

1.4

TO-2

A-PLACE Ebisu Minami

9,640

9,597

15,80015,3003.5

16,000

3.6

3.7

1.8

TO-3

A-PLACE Yoyogi

4,070

3,837

5,000

5,060

3.8

4,940

3.6

4.0

0.7

TO-4

A-PLACE Aoyama

8,790

8,511

10,70010,7003.9

10,700

3.7

4.1

1.6

TO-5

Luogo Shiodome

4,540

4,435

6,350

6,470

3.5

6,300

3.3

3.7

0.8

TO-6

TAMACHI SQUARE(Land)

2,338

2,362

2,850

2,980

3.4

2,800

3.8

3.6

0.4

TO-7

A-PLACE Ikebukuro

3,990

3,639

5,610

5,710

3.8

5,510

3.6

4.0

0.7

TO-8

A-PLACE Shinbashi

5,650

5,731

7,330

7,440

3.6

7,220

3.3

3.7

1.0

TO-9

A-PLACE Gotanda

5,730

5,374

8,180

8,310

3.5

8,050

3.3

3.7

1.0

TO-10 A-PLACE Shinagawa

3,800

3,770

6,320

6,480

3.3

6,150

3.1

3.5

0.7

TO-11 OSAKI WIZTOWER

10,69010,423

14,70014,8003.3

14,600

3.0

3.4

2.0

Shiodome Building(Note 6)

71,60070,38077,35080,8503.3

75,950

3.1

3.5

13.1

TO-13 A-PLACE Ebisu Higashi

7,072

6,990

7,630

7,740

3.6

7,510

3.4

3.8

1.3

4,810

4,909

5,730

5,690

3.5

5,760

3.2

3.6

0.9

7,280

7,603

7,950

7,950

3.7

7,940

3.4

3.8

1.3

18,80018,761

21,60021,9003.8

21,300

3.6

4.0

3.4

30,70031,01031,30031,875

3.4

30,600

3.2

3.6

5.6

TO-12

A-PLACE Shibuya
KonnohA-PLACE Gotanda
TO-15
EkimaeA-PLACE Shinagawa
TO-16
HigashiEbisu Prime Square (Note
TO-18
6)
TO-14

TO-19 A-PLACE Tamachi East

6,800

6,855

7,130

7,270

3.4

6,980

3.2

3.6

1.2

TO-20 Meguro Tokyu Building

16,30016,391

16,80017,1003.2

16,500

2.9

3.3

3.0

TO-21 Q plaza Shinjuku-3chome

18,40018,524

19,20019,5003.5

18,900

3.3

3.7

3.4

A-PLACE Shibuya
TO-22
Nampeidai

8,800

8,862

9,050

9,110

3.3

8,980

3.0

3.4

1.6

Subtotal

Activia Account Properties

DCF method
Book value Assessed
Acquisition
Investment
at end ofvalue at Price based
price
ratio
Direct Price based
Terminal
on direct
periodend ofDiscount
capitalizaon
DCF
capitalizacapitalizaperiod
ratetion rate
methodtion ratetion
method257,200

255,093

298,380

304,435–

294,290

–

–

46.9

AA-1

Amagasaki Q’s MALL
(Land)

12,00012,113

14,20014,4004.2

14,000

3.9

4.4

2.2

AA-2

icot Nakamozu (Note 9)

8,500

8,138

10,60010,9004.8

10,500

4.7
/4.8
/4.9

5.0

1.6

AA-4

icot Mizonokuchi

2,710

2,587

3,240

3,310

5.4

3,160

5.2

5.8

0.5

AA-5

icot Tama Center

2,840

2,540

3,950

3,960

5.0

3,940

4.6

5.2

0.5

AA-6

A-PLACE Kanayama

6,980

6,080

8,660

8,750

5.0

8,560

4.8

5.2

1.3

AA-7

Osaka Nakanoshima
Building

11,10011,04817,40017,7003.7

17,100

3.5

3.9

2.0

AA-8

icot Omori

5,790

5,662

6,870

6,940

4.3

6,790

4.1

4.5

1.1

AA-9

Market Square Sagamihara

4,820

4,567

5,010

5,030

5.3

4,980

5.1

5.5

0.9

AA-10 Umeda Gate Tower

19,00019,042

21,60022,1003.6

21,400

3.4

3.8

3.5

AA-11 A-PLACE Bashamichi

3,930

4,012

4,760

4,850

4.8

4,660

4.5

5.0

0.7

AA-12 Commercial Mall Hakata

6,100

6,274

5,900

5,910

4.8

5,880

4.5

4.9

1.1

AA-13 EDGE Shinsaibashi

19,80019,97721,50021,8003.7

21,100

3.5

3.9

3.6

Subtotal

103,570

102,044

123,690

125,650–

122,070

–

–

18.9

Total

548,035

543,438

643,384

653,804–

635,349

–

–

100.0

(Note 1)

(Note 2)

(Note 3)

A property number is assigned to each of assets held by the Investment Corporation, which are divided into the three
categories: UR (meaning Urban Retail Properties), TO (meaning Tokyo Office Properties) and AA (meaning Activia
Account Properties).
Acquisition price represents trading value of beneficial interests in trust stipulated in each beneficiary interest sales
agreement in relation to the assets held (excluding consumption tax and local consumption tax, and expenses such as
trading commissions, rounding down to the nearest million yen).
Book value at end of period represents book value for each property less depreciation expenses as of November 30,
2021, rounding down to the nearest million yen.
- 41 -

(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)The appraisal of properties is commissioned to Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd.,The Tanizawa Sōgō Appraisal Co., Ltd., Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K. Assessedvalue at end of period and return price show value described in each real estate appraisal report with the date of value
estimate of November 30, 2021.
Investment ratio is calculated by dividing the acquisition price for each property by the total acquisition price(excluding consumption tax and other acquisition-related expenses). Figures are rounded to the nearest tenth.
As for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU,
Shiodome Building, and Ebisu Prime Square, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 49%, 30%, 60%, 35% and 51%, respectively).
The discount rates of Q plaza EBISU represent 3.4% from the first year to the second year and 3.3% in and after thethird year.
The price based on direct capitalization method stated for Tokyu Plaza Ginza (Land) has been calculated by means of
the fixed term capitalization method.
The discount rates of icot Nakamozu represent 4.7% in the first year, 4.8% from the second year to the sixth year and4.9% in and after the seventh year.

- 42 -

b. Overview of assets held (2)Category(As of November 30, 2021)
Property
number

Property nameLocation

Date ofconstruction(Note 1)

(Note 2)

(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)

UR-1

Tokyu Plaza
Omotesando
Shibuya, Tokyo
Harajuku (Note 8)

March 14, 2012

30

1,964

1,475

4,918.43

4,796.34

97.5

UR-3

Q plaza EBISU

Shibuya, Tokyo

August 20, 2008

4

485

475

4,024.88

4,024.88

100.0

UR-5

Kyoto Karasuma
Parking Building

Kyoto, Kyoto

July 24, 2006

2

(Note 9)(Note 9)21,616.04

21,616.04

100.0

Kobe, Hyogo

January 31, 2010

6

1,207

1,407

19,653.90

19,265.71

98.0

Kobe Kyu
UR-7 Kyoryuchi
25Bankan

Urban Retail Properties

Number Contractedof
rent
tenants(Annual)Leaseholdandguarantee
deposit

UR-8

A-FLAGSAPPORO

Sapporo,Hokkaido

May 23, 1980

13

690

100

21,229.16

20,392.03

96.1

UR-9

A-FLAGSHIBUYA

Shibuya, Tokyo

June 29, 1988

2

420

179

3,403.07

3,403.07

100.0

UR-10

Q plaza
SHINSAIBASHI

Osaka, Osaka

November 16,
2007

6

673

433

2,820.23

2,820.23

100.0

UR-11

A-FLAG KOTTO
DORI

Minato, Tokyo

January 22, 1992

7

200

161

2,656.53

2,362.46

88.9

A-FLAG
UR-12 BIJUTSUKAN
DORI

Minato, Tokyo

December 1, 1998

4

239

241

1,994.65

1,994.65

100.0

A-FLAG
UR-13 DAIKANYAMA
WEST

Shibuya, Tokyo

April 21, 1992

1

(Note 9)(Note 9)2,579.08

2,579.08

100.0

UR-14

A-FLAG KITASHINSAIBASHI

Osaka, Osaka

March 25, 2008

5

186

129

2,538.13

2,538.13

100.0

UR-15

DECKS Tokyo
Beach (Note 8)

Minato, Tokyo

June 20, 1996

78

584

450

16,119.47

15,316.03

95.0

UR-16

Tokyu Plaza Ginza
Chuo, Tokyo(Land) (Note 8)

1

1,162

572

1,130.04

1,130.04

100.0

14

432

322

3,378.49

3,143.27

93.0

173

–

–

108,062.10

105,381.96

97.5

Q plaza
UR-17 HARAJUKU (Note Shibuya, Tokyo
8)
Subtotal–March 5, 2015–

- 43 -

CategoryTokyo Office Properties

Property
number

Property nameLocation

Number Contractedof
rent
tenants(Annual)(Note 1)

(Note 2)

Leaseholdandguarantee
deposit(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)

TO-1

TLC Ebisu
Building

Shibuya, Tokyo

March 5, 1993

10

524

445

7,342.60

6,034.78

82.2

TO-2

A-PLACE Ebisu
MinamiShibuya, Tokyo

January 31, 1995

10

833

784

7,950.49

7,950.49

100.0

TO-3

A-PLACE Yoyogi Shibuya, Tokyo

February 22, 2007

5

261

241

3,106.17

3,106.17

100.0

TO-4

A-PLACE Aoyama Minato, Tokyo

September 6,
1966

8

606

580

7,303.69

7,303.69

100.0

TO-5

Luogo Shiodome

Minato, Tokyo

July 30, 2004

5

279

254

4,476.35

3,540.65

79.1

TO-6

TAMACHISQUARE (Land)

Minato, Tokyo

–

1

125

0

1,287.96

1,287.96

100.0

TO-7

A-PLACE
Ikebukuro

Toshima, Tokyo

October 13, 20111

(Note 9)(Note 9)3,409.73

3,409.73

100.0

TO-8

A-PLACE
Shinbashi

Minato, Tokyo

March 4, 1999

10

378

315

5,054.19

5,054.19

100.0

TO-9

A-PLACE Gotanda

Shinagawa,Tokyo

February 27, 2012

11

361

324

4,028.69

3,598.67

89.3

TO-10

A-PLACE
ShinagawaMinato, Tokyo

September 20,
1991

8

271

256

2,986.36

2,986.36

100.0

TO-11

OSAKI
WIZTOWER

Shinagawa,Tokyo

January 10, 2014

6

680

680

7,193.28

7,193.28

100.0

TO-12

Shiodome Building
Minato, Tokyo(Note 8)December 14,
2007

37

3,228

2,670

28,136.05

28,002.58

99.5

TO-13

A-PLACE Ebisu
Higashi

Shibuya, Tokyo

January 10, 1992

7

354

266

4,010.69

4,010.69

100.0

TO-14

A-PLACE Shibuya
Shibuya, Tokyo
KonnohMarch 18, 1992

4

285

225

3,010.53

3,010.53

100.0

TO-15

A-PLACE Gotanda Shinagawa,EkimaeTokyo

November 30,
1993

10

398

339

4,333.64

4,333.64

100.0

TO-16

A-PLACE
Minato, Tokyo
Shinagawa Higashi

August 31, 1985
(main building)
September 13,
1999 (annex)

7

1,092

996

14,658.98

13,956.02

95.2

TO-18

Ebisu Prime Square
Shibuya, Tokyo(Note 8)January 31, 1997

109

1,404

1,088

18,063.03

16,834.23

93.2

A-PLACE Tamachi
TO-19
Minato, Tokyo
East

April 9, 2003

23

328

313

4,288.88

4,236.16

98.8

Meguro Tokyu
TO-20
Building

Shinagawa,Tokyo

December 24,
2002

8

605

597

6,993.70

6,993.70

100.0

Q plaza ShinjukuTO-21
3chomeSeptember 24,
Shinjuku, Tokyo
1992

4

827

570

4,528.01

4,528.01

100.0

13

378

343

4,373.54

4,373.54

100.0

–

297

–

–

146,536.56

141,745.07

96.7

–

1

714

341

27,465.44

27,465.44

100.0

A-PLACE Shibuya
TO-22
Shibuya, Tokyo
Nampeidai
Subtotal

Activia Account Properties

Date ofconstruction

July 31, 1989

AA-1

Amagasaki Q’s
MALL (Land)

Amagasaki,
Hyogo

AA-2

icot Nakamozu

Sakai, Osaka

June 27, 2007

2

620

430

28,098.02

28,098.02

100.0

AA-4

icot Mizonokuchi

Kawasaki,Kanagawa

July 15, 1998

1

(Note 9)100

14,032.05

14,032.05

100.0

AA-5

icot Tama Center

Tama, Tokyo

March 7, 2006

9

233

231

5,181.58

5,110.96

98.6

AA-6

A-PLACE
Kanayama

Nagoya, Aichi

February 10, 2009

21

542

446

9,314.90

9,314.90

100.0

AA-7

Osaka
Nakanoshima
Building

Osaka, Osaka

March 5, 1984

38

1,010

714

20,226.77

20,125.63

99.5

Ota, Tokyo

March 6, 2007

8

388

357

6,209.78(Note 10)

6,209.78(Note 10)

100.0

Sagamihara,
Kanagawa

June 13, 2014

3

(Note 9)(Note 9)15,152.42

15,152.42

100.0January 15, 2010

16

849

662

13,566.95

11,593.87

85.5

AA-8 icot Omori
AA-9

Market Square
Sagamihara

AA-10 Umeda Gate Tower Osaka, Osaka
A-PLACE
Bashamichi

Yokohama,
Kanagawa

May 31, 1975

36

355

250

9,710.91

9,710.91

100.0

Commercial Mall
AA-12
HakataFukuoka,
Fukuoka

November 3, 2005

17

304

151

9,612.88

8,624.06

89.7

21

1,061

864

15,897.10

15,897.10

100.0

173

–

–

174,468.80

171,335.14

98.2

AA-11

AA-13 EDGE Shinsaibashi Osaka, Osaka
Subtotal

April 22, 1986–

- 44 -

Category

Property
number

Property name

Total

Location

Date ofconstruction

Number Contractedof
rent
tenants(Annual)(Note 1)

(Note 2)–643

- 45 -

Leaseholdandguarantee
deposit(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)
–

–

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)429,067.46

418,462.17

97.5

(Note 1)

Date of construction of the main building, as described in the property registry. For properties with several mainbuildings, the construction date of the oldest building is listed. The construction date is omitted in case of acquisitionof land only (Land represents the part of site on which the building is established under a land lease right; the same
shall apply hereinafter). However, for A-PLACE Shinbashi and A-FLAG SHIBUYA, the date of inspection
confirming completion of construction written on the certificate of inspection is provided.
(Note 2) At each property, the number of tenants is equal to the aggregate number of tenants as of November 30, 2021
described in the lease agreements in relation to buildings, except that for properties with master lease agreements, thetotal number of end-tenants is listed. For properties for which we acquire only land, the total number of tenants of theland is listed.
(Note 3) The contracted rent (annual) for each property other than properties for which we acquire only land is calculated bymultiplying the aggregate anticipated monthly rent (limited to rent for rooms which were occupied by tenants as ofNovember 30, 2021), including common service fee and excluding usage fee for warehouses, signboards and parking
lots, and also excluding revenue-based rents, regardless of free rents, rent holidays and temporary reductions of rent
as of November 30, 2021, as indicated in the lease agreements in relation to buildings as of November 30, 2021 by 12(for where multiple lease agreements are concluded in relation to buildings, the aggregate anticipated monthly rent
for all lease agreements) (excluding consumption tax) and rounding to the nearest million yen. For properties forwhich we acquire only land, it is calculated as the annual contracted rent (excluding consumption tax) as indicated in
the lease agreement for such land as of November 30, 2021, rounding to the nearest million yen. For properties withmaster lease agreements, the annual contracted rent is calculated by multiplying the aggregate anticipated monthly
rent (limited to rent for rooms; including common service fees and excluding usage fees for warehouses, signboards
and parking lots, and also excluding revenue-based rents, regardless of free rents, rent holidays and temporary
reductions of rent as of November 30, 2021), as indicated in the relevant sublease agreement with end-tenants by 12.
(Note 4) The leasehold and guarantee deposit is calculated as the total amount on the lease agreement for each property as ofNovember 30, 2021 (limited to leasehold and guarantee deposit based on the lease agreement for leased property thatwas occupied by the tenant as of November 30, 2021), rounding to the nearest million yen. For properties with master
lease agreements, the leasehold and guarantee deposit is calculated as the total amount required based on the subleaseagreements with end-tenants, rounding to the nearest million yen.
(Note 5) The total leasable area represents the total of gross floor area considered to be leasable based on the lease agreements
for building or floor plans as of November 30, 2021 of each property other than properties of which we acquire only
land, and gross land area considered to be leasable based on the lease agreement for land or land plans as ofNovember 30, 2021 of each property of which we acquire only land.
(Note 6) The total leased area is equal to the total of leased area presented in each lease agreement for properties held as ofNovember 30, 2021. For properties with master lease agreements, counted is the total of the area of properties forwhich sublease agreements are concluded with end-tenants and that are actually subleased.
(Note 7) The occupancy rate is calculated by dividing total leased area for each property by the total leasable area as ofNovember 30, 2021, rounding to the nearest tenth. The subtotal and total are calculated by dividing aggregate leased
area by aggregate leasable area, rounding to the nearest tenth.
(Note 8) As for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU,
Shiodome Building, and Ebisu Prime Square, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 49%, 30%, 60%, 35% and 51%, respectively).
However, the numbers of tenants provided are the numbers for each whole building.
(Note 9) Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
(Note 10) The calculation of total leasable area and total leased area for icot Omori includes part of an external bicycle parking
lot (approximately 21 m2) and part of a common area on the second floor (approximately 28 m2).
(Note 11) For lease agreements with end-tenants that have been asked to be terminated or cancelled, or for which the rent has
not been paid, number of tenants, contracted rent (annual), leasehold and guarantee deposit, total leased area andoccupancy rate are shown in the above table if these agreements continued as of November 30, 2021, assuming thatthe lease agreements with the end-tenants remained effective; the same shall apply hereinafter.

- 46 -

(B) Capital expenditure for assets under managementa. Scheduled capital expenditure
The following table shows major estimated capital expenditure for renovation work, etc. that theInvestment Corporation plans to conduct for assets held in the 20th fiscal period as of November 30,
2021. The estimated construction cost below includes the portion expensed for accounting purposes.
Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid

Replacement of
A-FLAG SAPPORO
substation equipment(Sapporo, Hokkaido)(First period)

From March 2022
to November 2022

560

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (Second(Osaka, Osaka)period)From December 2023
to May 2024

520

–

–

Replacement of
A-FLAG SAPPORO
substation equipment(Sapporo, Hokkaido)(Second period)

From November 2022
to May 2023

470

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (First(Osaka, Osaka)period)From June 2023
to November 2023

400

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (Third(Osaka, Osaka)period)From June 2024
to November 2024

400

–

–

TLC Ebisu Building Large-scale repair(Shibuya, Tokyo)
work

From December 2022
to May 2023

210

–

–

Osaka Nakanoshima Renovation of air
Building
conditioning (Fourth(Osaka, Osaka)period)From December 2024
to May 2025

153

–

–

Osaka Nakanoshima
Replacement of two
Building
emergency elevators(Osaka, Osaka)

From July 2021
to November 2022

140

–

–

Osaka Nakanoshima
Large-scale renovation From June 2022
Buildingof external wall
to November 2023
(Osaka, Osaka)

106

–

–

85
(Note)––DECKS Tokyo
Beach(Minato, Tokyo)

Replacement of air
conditioning
equipment

From November 2022
to November 2022

A-PLACE
Shinagawa Higashi(Minato, Tokyo)

Overhaul of air
conditioning
equipment

From October 2023
to November 2023

77

–

–

A-FLAG SHIBUYA
From January 2022
Renewal of escalators(Shibuya, Tokyo)
to March 2022

74

–

–

DECKS Tokyo
Beach(Minato, Tokyo)

Replacement of spraypainted tiles for
From February 2023
SEASIDE Building
to May 2023
(First period)

73(Note)––A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Replacement ofvertical pipes for
supply/pumped cleanwater and for black
water

73

–

–

From June 2021
to November 2022

- 47 -Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeA-PLACE Aoyama Installation of LED(Minato, Tokyo)
lighting

Scheduled period

TotalamountPayment
for theperiodTotalamountpaid

From June 2022
to November 2022

70

–

–

icot Nakamozu(Sakai, Osaka)

Replacement of
substation equipment(SC Building)

From May 2023
to May 2023

70

–

–

A-PLACE
Kanayama(Nagoya, Aichi)

Installation of LED
lighting in private
areas

From January 2022
to May 2022

66

–

–

Renovation work for
TLC Ebisu Building
mechanical parking(Shibuya, Tokyo)
facility

From May 2022
to May 2022

64

–

–

Replacement of air
Ebisu Prime Squareconditioning(Shibuya, Tokyo)
equipment (2 floors)

From June 2023
to October 2023

64
(Note)––

59(Note)––DECKS Tokyo
Beach(Minato, Tokyo)

Readjustment
From August 2022
(merging) of
to September 2022
compartmentalization

Osaka Nakanoshima Repair of lavatory
plumbing for 2nd to
Building
5th floors(Osaka, Osaka)

From May 2021
to May 2023

58

–

–

A-FLAG
BIJUTSUKAN
DORI(Minato, Tokyo)

From December 2022
to May 2023

52

–

–

TLC Ebisu Building
From December 2022
Renovation of entrance(Shibuya, Tokyo)
to May 2023

50

–

–

A-PLACE Shibuya
Konnoh(Shibuya, Tokyo)

From June 2023 toNovember 2023

50

–

–

TLC Ebisu Building Installation of set-up(Shibuya, Tokyo)
officeFrom May 2022
to May 2022

48

–

–

DECKS Tokyo
Beach(Minato, Tokyo)

Replacement of
automated fire alarmsystemFrom September 2021
to March 2022

34
(Note)––

Replacement of air
Ebisu Prime Squareconditioning(Shibuya, Tokyo)
equipment (1 floor)

From December 2022
to April 2023

32
(Note)––

28(Note)––

Shiodome Building(Minato, Tokyo)

Large-scale repair
work

Beautification oflavatory

Installation of LED
From October 2021
lighting (Third period) to February 2022

Commercial Mall
Replacement of air
Hakataconditioning units(Fukuoka, Fukuoka)

From December 2021
to December 2021

23

–

–

A-PLACE
Ikebukuro(Toshima, Tokyo)

From January 2022
to May 2022

22

–

–

Installation of LED
lighting- 48 -Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid

Repair work of
Osaka Nakanoshima
substation equipment
Building
according to facility(Osaka, Osaka)planning

From February 2022
to February 2022

21

–

–

Luogo Shiodome(Minato, Tokyo)

From December 2021
to May 2022

18

–

–

Disassembly and
A-FLAG SAPPORO
maintenance of(Sapporo, Hokkaido)
centrifugal chillers

From November 2021
to February 2022

17

–

–

Replacement of
EDGE Shinsaibashi mechanical security(Osaka, Osaka)and entry/exit
monitoring system

From November 2021
to December 2021

17

–

–

16

–

–

13

–

–

13
(Note)––A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Replacement of
security system

Replacement of totalheat exchangers andFrom April 2022 toventilation fans for 3rd May 2022
to 9th floors

Replacement of 5th
A-FLAG SHIBUYA
floor air conditioning(Shibuya, Tokyo)
units

From January 2022
to January 2022

DECKS Tokyo
Beach(Minato, Tokyo)

From December 2021
to January 2022

Compartmentalization

Replacement of heatEDGE Shinsaibashi
transfer pipe of(Osaka, Osaka)cooling water system

From May 2022
to May 2022

13

–

–

Tokyu Plaza
Omotesando
Harajuku(Shibuya, Tokyo)

Renovation work forroof deck (Third
period)From May 2022
to May 2022

11
(Note)––A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Replacement of
automated fire alarmsystemFrom February 2022
to May 2022

11

–

–

(Note)The shown estimated construction cost with regard to DECKS Tokyo Beach, Ebisu Prime Square,
Shiodome Building and Tokyu Plaza Omotesando Harajuku is the amount equivalent to the ratio of theInvestment Corporation’s co-ownership beneficial interests in real estate trust (49%, 51%, 35% and 75%,
respectively).

- 49 -

b. Capital expenditure during the fiscal period
For assets held by the Investment Corporation in the 20th fiscal period, construction work
conducted by the Investment Corporation during the fiscal period ended November 30, 2021 that
falls into capital expenditure is as follows. The capital expenditure for the fiscal period ended
November 30, 2021 amounted to ¥810 million, and repair and maintenance expenses that were
accounted for as expense in the fiscal period ended November 30, 2021 came to ¥260 million. On
aggregate, construction work of ¥1,070 million was carried out during the fiscal period.
Name of real property(Location)

Purpose

PeriodConstruction cost
(Millions of yen)

A-PLACE Ebisu
Minami(Shibuya, Tokyo)

Large-scale repair work (First From December 2020
period and Second period)to August 2021

298

icot Nakamozu(Sakai, Osaka)

Large-scale repair work (SCBuilding)

From April 2021
to October 2021

197

Luogo Shiodome(Minato, Tokyo)

Replacement of air
conditioning units (Second
period)From December 2020
to November 2021

122

Shiodome Building(Minato, Tokyo)

Installation of LED lighting(Second period)

From April 2021
to August 2021

26
(Note)A-PLACE Yoyogi(Shibuya, Tokyo)

Installation of LED lighting

From June 2021
to August 2021

20

A-PLACE Ebisu
Minami(Shibuya, Tokyo)

Replacement of horizontal
drainage piping of air
conditioning units (Second
period)From March 2021
to August 2021

12

Kobe Kyu Kyoryuchi
25Bankan(Kobe, Hyogo)

Renovation of multilevel car
park system (drive section)

From August 2021
to September 2021

10

Other

122
Total

(Note)

810

The shown construction cost with regard to Shiodome Building is the amount equivalent to the ratio of theInvestment Corporation’s co-ownership beneficial interests in real estate trust (35%).

- 50 -

(C) Information concerning major tenants
a. Summary of major tenants
For assets held in the 20th fiscal period, the table below shows tenants whose leased area accounts
for 10% or more of the total leased area in the entire portfolio (major tenants) based on the data asof November 30, 2021. The forms of agreements with the tenants in the table are ordinary leaseagreements.
As for certain assets held, the Investment Corporation has entered into lease agreements (master
lease agreements) with Tokyu Community Corp. and Tokyu Land SC Management Corporation
with the objective of allowing them to be master lease companies and sublease the leased assets to
end-tenants. The table below shows information on the major tenants with master lease agreements
based on the data as of November 30, 2021. Rents received by the Investment Corporation from themaster lease companies are equal to the rents received by these companies from sublessees (endtenants) (pass-through master lease), and such rents are not guaranteed.

TenantTokyu Community
Corp.

Business

Property nameLeased area (m2)(Note 1)

Contracted rent
(Annual)(Millions ofyen)(Note 2)

Leasehold andguarantee
deposit(Millions ofyen)(Note 3)

Expiration date
(Note 4)

A-FLAG KOTTO DORI

2,362.46

200

161

December 31, 2026

TLC Ebisu Building

6,034.78

524

445

May 31, 2025

A-PLACE Ebisu Minami

7,950.49833

784

May 31, 2025

A-PLACE Yoyogi

3,106.17261

241

May 31, 2025

A-PLACE Aoyama

7,303.69

606

580

May 31, 2025

Luogo Shiodome

3,540.65

279

254

May 31, 2025

A-PLACE Ikebukuro

3,409.73(Note 5)(Note 5)

May 31, 2025

A-PLACE Shinbashi

5,054.19

378

315

May 31, 2025

A-PLACE Gotanda

3,598.67361

324

May 31, 2025

A-PLACE Shinagawa

2,986.36

271

256

May 31, 2025

OSAKI WIZTOWER

7,193.28680

680

May 31, 2025

A-PLACE Ebisu Higashi

Real EstateManagement A-PLACE Shibuya Konnoh

4,010.69

354

266

May 31, 2025

3,010.53285

225

September 30, 2025

A-PLACE Gotanda Ekimae

4,333.64

398

339

June 30, 2026

A-PLACE Shinagawa
Higashi

13,956.02

1,092

996

March 31, 2027

Ebisu Prime Square (Note 6)

13,342.87

1,204

1,059

January 31, 2030

A-PLACE Tamachi East

4,236.16328

313

October 31, 2031

A-PLACE Shibuya
Nampeidai

4,373.54

378

343

September 30, 2031

A-PLACE Kanayama

9,314.90

542

446

May 31, 2025

Osaka Nakanoshima Building

20,125.63

1,010

714

November 30, 2024

Umeda Gate Tower

11,593.87

849

662

April 30, 2028

A-PLACE Bashamichi

9,710.91355

250

October 31, 2026

Commercial Mall Hakata

8,624.06

304

151

March 31, 2027

159,173.29

–

–

–

Total

- 51 -

Tenant

Tokyu Land SC
Management
Corporation(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)

Business

Property nameLeased area (m2)(Note 1)

Contracted rent
(Annual)(Millions ofyen)(Note 2)

Leasehold andguarantee
deposit(Millions ofyen)(Note 3)

Expiration date
(Note 4)

June 30, 2022

Q plaza EBISU

4,024.88

485

475

Kyoto Karasuma Parking
Building

21,616.04(Note 5)(Note 5)

November 30, 2024

Kobe Kyu Kyoryuchi
25Bankan

19,265.71

1,207

1,407

August 31, 2023

A-FLAG SAPPORO

20,392.03

690

100

December 31, 2023

A-FLAG SHIBUYA

3,403.07

420

179

December 31, 2023

Q plaza SHINSAIBASHI

2,820.23

673

433

December 31, 2025

A-FLAG BIJUTSUKAN
DORI

1,994.65

239

241

December 31, 2026

A-FLAG DAIKANYAMA
WEST

2,579.08(Note 5)(Note 5)

December 31, 2026

2,538.13

186

129

June 30, 2027

15,316.03

584

450

January 31, 2028

Q plaza HARAJUKU(Note 6)

3,143.27432

322

January 31, 2029

Q plaza Shinjuku-3chome

4,528.01827

570

September 30, 2031

icot Nakamozu

28,098.02

620

430

June 30, 2022

icot Mizonokuchi

14,032.05(Note 5)100

June 30, 2022

icot Tama Center

5,110.96

233

231

November 30, 2024

icot Omori

6,209.78

388

357

December 31, 2023

Market Square Sagamihara

15,152.42(Note 5)(Note 5)January 31, 2025

Total

170,224.36––

Real Estate A-FLAG KITAManagement SHINSAIBASHIDECKS Tokyo Beach(Note 6)–The leased area is the leased area to end-tenants in respect to the leased area provided in the master lease agreement
as of November 30, 2021 where the tenant is the master lease company and sublessor, rounding to the nearest
hundredth.
Under master lease contracts concluded with tenants, for properties of which the master lease rent payable by thetenant equals to the rent payable by the end-tenant to the tenant, the contracted rent (annual) for each property is
calculated by multiplying the monthly rent (limited to rooms which were occupied by tenants as of November 30,2021), including common service fee and excluding usage fee for warehouses, signboards and parking lots, and also
excluding revenue-based rents, regardless of free rents, rent holidays and temporary reductions of rent as ofNovember 30, 2021, as indicated in the sublease agreement concluded with the end-tenant as of November 30, 2021
by 12, rounding to the nearest million yen.
The leasehold and guarantee deposit is calculated as the total amount on the sublease agreement with the end-tenant
as of November 30, 2021 (limited to leasehold and guarantee deposit based on the lease agreement for leased
property that was occupied by the tenant as of November 30, 2021), rounding to the nearest million yen, where thetenant is the master lease company and sublessor.
The expiration date is the date provided in the lease agreement where the tenant is the lessee, including where thetenant is a sublessor and master lease company under a sublease agreement. Concerning the method of renewing themaster lease agreement entered into with the above-mentioned major tenant who is the master lease company,
assuming that the lessor or lessee has not expressed in writing their intention to refuse renewal at a time that is at least
three full months before the expiry of the lease agreement, the agreement shall be renewed for a further two years
under the same conditions, and the same will apply thereafter.
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
As for Ebisu Prime Square, DECKS Tokyo Beach and Q plaza HARAJUKU, the figures are in proportion to the pro
rata share of our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (51%, 49% and 60%, respectively).

- 52 -

b. End-tenants in the top 10 in terms of total leased area
For assets held by the Investment Corporation, the following table shows end-tenants ranked in the
top 10 in terms of total leased area in the entire portfolio as of November 30, 2021.
End-tenants

Property name

Total leased area (m2)(Note 1)

Lease expiration date

Form of agreement(Note 2)
General fixed-termleasehold land agreement
Ordinary leasehold land
agreement
Fixed-term business-use
lease agreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement

Sumitomo Mitsui Trust
Bank, Limited (Note 3)

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

29,883.44(Note 4)January 9, 2089
May 31, 2074
January 31, 2042

Kohnan Shoji Co., Ltd.

icot Nakamozu

26,529.03

July 11, 2027

Times24 Co., Ltd.

Kyoto Karasuma Parking Building

21,224.14

July 31, 2026

Tokyu Hotels Co., Ltd.

A-FLAG SAPPORO

18,891.39

March 31, 2027

Plan Do See Inc.

Kobe Kyu Kyoryuchi 25Bankan

14,195.42

February 28, 2022
(Note 5)Room’s-Taishodo

icot Mizonokuchi

14,032.05

July 24, 2023

K’S HOLDINGSCORPORATION

Market Square Sagamihara

11,863.92

June 30, 2034

NTT Communications
Corporation

Shiodome Building

10,336.62

June 30, 2022
(Note 6)

Fixed-term building leaseagreement

Swing Corporation

A-PLACE Shinagawa Higashi

6,488.78

April 30, 2022
March 31, 2023

Ordinary building leaseagreement

MUFG Bank, Ltd.

icot Nakamozu
icot Tama Center
A-PLACE Kanayama

5,609.11––(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

The total leased area is equal to the total leased area in each property under the lease agreement with the end-tenant asof November 30, 2021. As for Tokyu Plaza Ginza (Land) and Shiodome Building, the figure is based on the amountin proportion to the pro rata share of our trust beneficiary co-ownership interests (jun kyōyū-mochibun) as ofNovember 30, 2021 (30% and 35%, respectively).
The form of agreement is equal to the form of agreement described in the lease agreement with the end-tenants as ofNovember 30, 2021.
Tenant is the trustee of the building on the land; SPADE HOUSE Limited Liability Company is the trust beneficiaryunder such trust of Tokyu Plaza Ginza (Land); Tokyu Land Corporation is the trust beneficiary under such trust of
TAMACHI SQUARE (Land) and Amagasaki Q’s MALL (Land).
Total leased area for Tokyu Plaza Ginza (Land), TAMACHI SQUARE (Land) and Amagasaki Q’s MALL (Land) isin respect of the land.
As of December 10, 2021, a fixed-term building lease agreement with a lease period of March 1, 2022 to February
28, 2051 was entered into.
NTT Communications Corporation is scheduled to vacate upon expiration of contract on June 30, 2022.
Since we have not obtained permission from the tenant of the properties to release the information, the information
missing from this table is not disclosed.

- 53 -

(D) Overview of lease and profit and loss
20th fiscal period (From June 1, 2021 to November 30, 2021)
Property number

UR-1

UR-2

UR-3

UR-5

(Unit: Thousands of yen)
UR-7

Property name

Tokyu Plaza
Omotesando
Harajuku(Note 1)Tokyu Plaza
Akasaka(Notes 1, 4)

Q plaza EBISU

Kyoto Karasuma
Parking Building

Kobe Kyu Kyoryuchi
25Bankan

183

150

183

Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues

183

183

1,074,108

437,077

273,154(Note 2)

697,195

Leasing business revenue

924,159

379,778

242,939(Note 2)630,776

Other leasing business revenue

149,949

57,29930,215(Note 2)

66,419b. Expenses related to leasing business

263,785

242,738

61,20345,585

188,639Management operation expenses

129,146

61,941

16,387

4,724

74,355

Utilities expenses

23,92841,38522,889–50,748Tax and public dues

48,07468,710114,561

8,910

38,893

Insurance

254

583

101

212

897

Repair and maintenance expenses

662

15,744

1,516

469

7,484

Other expenses related to leasing
business

41,083

8,521

11,397

1,286

7,080

c. NOI (a – b)810,322

194,339

211,951(Note 2)508,556

d. Depreciation, etc. (Note 3)

52,07032,245

18,29815,894

123,366

Profit (loss) from leasing business(c – d)758,252

162,093

193,652(Note 2)

385,189

UR-8

UR-9

UR-10

UR-11

Q plaza
SHINSAIBASHI

A-FLAG KOTTO
DORI

Property number
Property name
Number of business days in the 20th
fiscal period

A-FLAG SAPPORO A-FLAG SHIBUYA(Unit: Thousands of yen)
UR-12
A-FLAG
BIJUTSUKAN
DORI

183

183

183

183

183

376,070

212,505

356,064

103,117

119,711

Leasing business revenue

336,594

202,646

341,065

98,257113,079

Other leasing business revenue

39,4759,859

14,999

4,859

6,631

b. Expenses related to leasing business

190,924

36,41542,84033,18732,238a. Real estate leasing business revenues

Management operation expenses

107,932

12,109

9,743

8,447

3,797

Utilities expenses

44,193

7,378

10,957

5,628

5,192

Tax and public dues

24,295

11,38016,837

13,851

2,120

739

70

89

100

49

Repair and maintenance expenses

4,901

917

1,586

2,723

741

Other expenses related to leasing
business

8,862

4,558

3,626

2,436

20,338c. NOI (a – b)

185,145

176,089

313,224

69,92987,472d. Depreciation, etc. (Note 3)

78,70910,264

16,293

5,236

7,199

Profit (loss) from leasing business(c – d)106,436

165,825

296,930

64,69380,273

Insurance- 54 -

(Unit: Thousands of yen)
UR-17

Property number

UR-13

UR-14

UR-15

UR-16

Property name

A-FLAGDAIKANYAMA
WEST

A-FLAG KITASHINSAIBASHIDECKS Tokyo
Beach(Note 1)Tokyu Plaza Ginza(Land)(Note 1)

Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues

183

183

183

183

Q plaza
HARAJUKU(Note 1)
183

(Note 2)

101,663

518,484

581,063

227,645

Leasing business revenue(Note 2)

92,168404,795

581,063

215,277

Other leasing business revenue(Note 2)

9,495

113,688–

12,368b. Expenses related to leasing business

28,027

22,810314,853

105,506

72,414

Management operation expenses

8,224

5,415

106,757–

19,165

Utilities expenses

385

8,039

87,732–

11,113

Tax and public dues

14,1006,656

54,807105,203

36,868

82

59

617

–

106

Repair and maintenance expenses

1,947

1,598

17,526–

1,336

Other expenses related to leasing
business

3,288

1,041

47,411302

3,825(Note 2)78,853

203,631475,557

155,230

5,131

5,581

28,769–6,778(Note 2)73,271

174,861475,557

148,452

Property number

TO-1

TO-2

TO-3

TO-4

Property name

TLC Ebisu Building

A-PLACE
Ebisu Minami

A-PLACE
YoyogiA-PLACE
Aoyama

183

183

183

Insurancec. NOI (a – b)d. Depreciation, etc. (Note 3)
Profit (loss) from leasing business(c – d)Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues
Leasing business revenue

183(Unit: Thousands of yen)
TO-5
Luogo Shiodome
183

286,581435,437

125,009282,277

160,817277,307419,182

118,858

264,643

153,255

Other leasing business revenue

9,273

16,255

6,151

17,634

7,562

b. Expenses related to leasing business

85,055

120,716

34,521

67,59772,606

Management operation expenses

26,54530,33912,71018,141

11,203

Utilities expenses

10,01621,1596,953

17,321

7,304

Tax and public dues

17,25932,094

10,57623,52320,001

Insurance

266

339

114

249

214

Repair and maintenance expenses

17,48630,241

1,289

2,776

28,274

Other expenses related to leasing
business

13,480

6,542

2,875

5,584

5,607

c. NOI (a – b)

201,525

314,72190,487

214,680

88,211d. Depreciation, etc. (Note 3)

43,91635,55815,79923,49736,730

Profit (loss) from leasing business(c – d)157,609279,163

74,688191,182

51,480Property number

TO-6

TO-7

TO-8

TO-9

(Unit: Thousands of yen)
TO-10

Property name

TAMACHISQUARE (Land)

A-PLACE
Ikebukuro

A-PLACE
Shinbashi

A-PLACE
GotandaA-PLACE
Shinagawa

183

183

183

183

Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues
Leasing business revenue
Other leasing business revenue

183
62,502(Note 2)

209,210

197,002144,320

62,502(Note 2)

196,160

186,650140,257–(Note 2)

13,04910,352

4,062

b. Expenses related to leasing business

9,383

34,63356,52444,60937,386

Management operation expenses–

10,486

17,162

15,952

10,139

Utilities expenses–

10,12912,057

9,129

4,542

9,130

10,55015,34013,811

11,495

Insurance

–

113

190

153

105

Repair and maintenance expenses

–

622

5,423

2,774

8,042

Other expenses related to leasing
business

252

2,730

6,350

2,787

3,060

53,118(Note 2)

152,686

152,393

106,933–

20,77723,06926,934

9,274

53,118(Note 2)

129,616

125,458

97,659Tax and public duesc. NOI (a – b)d. Depreciation, etc. (Note 3)
Profit (loss) from leasing business(c – d)- 55 -

(Unit: Thousands of yen)
TO-15

Property number

TO-11

TO-12

TO-13

TO-14

Property nameOSAKI
WIZTOWER

Shiodome Building(Note 1)

A-PLACE Ebisu
HigashiA-PLACE Shibuya
KonnohNumber of business days in the 20th
fiscal period
a. Real estate leasing business revenues
Leasing business revenue

183

183

183

183

A-PLACE Gotanda
Ekimae183347,128

1,506,834

188,122

149,943

199,364

331,727

1,446,089

180,596

145,108

190,055

Other leasing business revenue

15,40060,745

7,525

4,834

9,308

b. Expenses related to leasing business

95,164

325,305

37,40334,38354,834

Management operation expenses

58,234106,099

12,13813,15016,182

Utilities expenses

10,93559,016

7,311

5,394

10,382

Tax and public dues

23,516

123,992

13,8409,462

18,095

Insurance

448

900

139

107

159

Repair and maintenance expenses

192

15,757

1,132

3,338

865

Other expenses related to leasing
business

1,837

19,539

2,840

2,929

9,148

c. NOI (a – b)

251,963

1,181,528

150,719

115,560

144,530

d. Depreciation, etc. (Note 3)

48,275

154,748

23,497

13,247

14,620

Profit (loss) from leasing business(c – d)203,687

1,026,780

127,222102,313

129,909

Property number

TO-16

TO-18

TO-19

TO-20

(Unit: Thousands of yen)
TO-21

Property name

A-PLACE
Shinagawa Higashi

Ebisu Prime Square(Note 1)

A-PLACE Tamachi
East(Note 5)Meguro Tokyu
Building(Note 6)

Q plaza Shinjuku3chome(Note 6)

Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues
Leasing business revenue

183

183

33

82

82

579,770

795,498

31,404

144,719

197,433

547,193

703,806

30,204

139,494

149,307

Other leasing business revenue

32,576

91,692

1,200

5,225

48,125b. Expenses related to leasing business

138,675

271,554

6,144

16,796

14,637

Management operation expenses

47,18963,955

2,753

10,473

6,141

Utilities expenses

24,672

103,456

1,253

5,742

7,189

Tax and public dues

48,026

68,535

–

–

–

630

861

34

115

84

Repair and maintenance expenses

6,004

18,464

885

238

–

Other expenses related to leasing
business

12,152

16,280

1,217

228

1,222

c. NOI (a – b)

441,094

523,944

25,260127,922

182,795

d. Depreciation, etc. (Note 3)

31,22545,951

2,697

7,494

2,975

Profit (loss) from leasing business(c – d)409,869

477,992

22,563

120,428

179,820

Insurance- 56 -

(Unit: Thousands of yen)
AA-5

Property number

TO-22

AA-1

AA-2

AA-4

Property name

A-PLACE Shibuya
Nampeidai(Note 6)

Amagasaki Q’s
MALL (Land)

icot Nakamozu

icot Mizonokuchi

183

183

Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues
Leasing business revenue

82

183

icot Tama Center
183

88,050356,784

311,044(Note 2)

142,289

82,990356,784

311,014(Note 2)

131,461

Other leasing business revenue

5,059

–

30

(Note 2)

10,828b. Expenses related to leasing business

12,55056,412

41,95915,314

46,389Management operation expenses

6,570

–

5,765

2,343

16,881

Utilities expenses

4,207

–

30

–

9,627

–

56,15930,123

9,949

11,706

Insurance

86

–

307

133

217

Repair and maintenance expenses

975

–

4,729

2,036

6,765

Other expenses related to leasing
business

710

252

1,003

851

1,190

c. NOI (a – b)

75,499300,371

269,084(Note 2)

95,899d. Depreciation, etc. (Note 3)

1,983

–

35,8498,385

18,991

Profit (loss) from leasing business(c – d)73,516300,371

233,234(Note 2)

76,907

Tax and public dues

Property number

AA-6

AA-7

AA-8

AA-9

Property name

A-PLACE Kanayama

Osaka Nakanoshima
Building

icot Omori

Market Square
Sagamihara

183

183

Number of business days in the 20th
fiscal period
a. Real estate leasing business revenues

183

183

(Unit: Thousands of yen)
AA-10
Umeda Gate Tower
183

306,264

550,967

219,431(Note 2)502,599

Leasing business revenue

283,139527,233

194,454(Note 2)

465,119

Other leasing business revenue

23,12523,733

24,977(Note 2)37,480b. Expenses related to leasing business

76,430159,552

50,88437,516

107,861

Management operation expenses

24,28655,658

8,891

16,10432,194

Utilities expenses

19,87837,03325,0604,834

29,117

Tax and public dues

27,45353,816

12,38813,55735,158Insurance

343

1,023

144

180

504

Repair and maintenance expenses

1,166

4,474

2,422

1,710

5,226

Other expenses related to leasing
business

3,301

7,546

1,977

1,128

5,660

c. NOI (a – b)

229,834

391,414

168,547(Note 2)394,737

d. Depreciation, etc. (Note 3)

52,442

92,946

18,40523,64967,949Profit (loss) from leasing business(c – d)177,392

298,467

150,141(Note 2)

326,788- 57 -

(Unit: Thousands of yen)
AA-13

Property number

AA-11

AA-12

Property name

A-PLACE
Bashamichi

Commercial Mall
HakataNumber of business days in the 20th
fiscal period
a. Real estate leasing business revenues

183

183

EDGE Shinsaibashi
183

203,102

192,966

570,523

Leasing business revenue

186,116

155,521531,334

Other leasing business revenue

16,98537,44539,189b. Expenses related to leasing business

66,967

68,616

192,054

Management operation expenses

19,62921,19841,195

Utilities expenses

18,632

23,84547,494

Tax and public dues

16,972

12,29660,541

402

166

617

Repair and maintenance expenses

6,857

2,396

34,491Other expenses related to leasing
business

4,473

8,713

7,714

c. NOI (a – b)136,134

124,350

378,469

d. Depreciation, etc. (Note 3)

33,84016,18023,173

Profit (loss) from leasing business(c – d)102,293108,169

355,295

Insurance(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land),Q plaza HARAJUKU, Shiodome Building and Ebisu Prime Square, the figures are in proportion to the pro rata shareof our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 49%, 30%, 60%, 35% and 51%,
respectively).
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
“Depreciation, etc.” includes loss on retirement of non-current assets.
Disposed on October 29, 2021. Therefore, figures up to the day prior to the disposition date are presented.
Acquired on October 29, 2021. Therefore, figures after the acquisition date are presented.
Acquired on September 10, 2021. Therefore, figures after the acquisition date are presented.

- 58 -