Semi-Annual Report

20th

for the Period ended November 30, 2021
(20th Period)
From June 1, 2021 to November 30, 2021

Activia Properties Inc. 21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo

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

Activia Properties Inc. aims at proactive management
through selecting assets that appeal to retailcustomers and office tenants as urban centersand hubs for business activity, in order to maximize unitholder
value over the medium- to long-term. API also takes initiatives
to improve its asset management.

Basic Policy of Activia Properties Inc.

investment in Urban Retail
1 Focused
Properties and Tokyo Office Properties
Utilization of the comprehensive support
and capabilities of the Tokyu Fudosan
Holdings Group’s value chain

2

governance structure aimed at
3 Strong
maximizing unitholder value

Contents
4

Message

5

TOPICS

15

API’s Strengths

16

Portfolio Map

19

Portfolio List

20

I.

Asset Management Report

50

II.

Balance Sheets

52

III.

Statements of Operations

53

IV. Statements of Changes in Unitholders’ Equity

55

V.

56

VI. Statements of Cash Flows

57

VII. Notes to Financial Statements

Statements of Cash Distributions

71

VIII. Schedule of Financial Statements

80

Independent Auditor’s Report

83

Overview of API

84

Overview of the Asset Manager

85

Information on Unitholders

Cash Distributions (Actual)

Financial Highlights

The Period ended November 2021 (the 20th Period)
Cash distributions per unit

¥

9,360

Cash Distributions (Forecast)
The Period ending May 2022 (the 21st Period)
Cash distributions per unit

¥

9,325

The Period ending November 2022 (the 22nd Period)
Cash distributions per unit

¥

9,210

Period ended May 31, 2021 (the 19th Period)
Operating revenue¥

Period ended November 30, 2021 (the 20th Period)

14,715 million¥

15,646 million

Operating profit¥

8,101 million¥

8,758 million

Ordinary profit¥

7,250 million¥

7,781 million

Profit¥7,249 million¥

7,753 million

Total assets¥

525,379 million¥

566,257 million

Net assets¥

255,581 million¥

278,716 million

48.6%

Unitholders’ equity to total assets (%)
Net assets per unit (yen)(Note)¥

331,397(Note) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.

49.2%
¥

338,760

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We Intend to Improve Unitholder Value through

1

M E

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Performance by Key Indicators for the 20th Period Ended November 2021

Initiatives that Prepare Us for a Post-COVID-19

Financial Results (FP20 ended November 2021)

Environment

Operating revenue(Gain on sale of real estate)Nobuhide Kashiwagi
Executive Director
Activia Properties Inc.
Thank you very much for your continued support for Activia
Properties Inc (API).
Before explaining the financial results, we pray for the

vs. Previous periodbillion(¥0.2 billion)

Consequently, our portfolio at the end of the periodacquisition price of ¥548.0 billion.
As a result of the above-mentioned management, thedeepest respect to the medical professionals involved inoperating revenue, operating profit, and profit for the period

treatment.

under review were ¥15,646 million, ¥8,758 million andRecently we closed all accounts for the 20th period,¥7,753 million, respectively, for the period ended November

from June 1, 2021 to November 30, 2021. We owe this2021. For cash distributions, we decided to retain a portionachievement to your understanding and continual supportof the capital gain as an internal reserve to ensure stablefor which we extend our deep appreciation.

cash distribution for the future, and distributions per

In the Japanese economy during the fiscal period

7.7+¥0.9 billion¥(+¥0.2 billion)

vs. Previous period+¥0.5 billion

billionAPI has included ESG (environment, social, governance)

the recovery, despite the difficult environment caused byperspectives into the long-term management strategy to

COVID-19. However, it seems to require more time for a

realize a sustainable society.

full-scale recovery.

We have so far promoted a wide range of initiatives to

The J-REIT market was firm due to expectations that¥environment and local community. And in January 2022, instate of emergency. However, prices declined toward

order to take specific measures, we have set environmental

November 30, 2021 due to an increasing sense of caution

KPIs such as promotion of renewable energy procurement,

because of new COVID-19 variants.

portfolio greening and sustainable finance.

Although these circumstances continuously affect our

We will continue to promote our ESG initiatives tooperational environment, in the Tokyo Office Properties,

enhance trustworthy relationships with all our stakeholders

API has continually achieved rent increases for the areas

including unitholders.

where market rent was higher than actual rent despite thewill seek to maximize unitholder value over the medium

the Urban Retail Properties, thanks to the solid motivation

to long term by improving the profitability of our portfolioof tenants for properties in good locations.

while prioritizing the maximization of our unitholder. We will

We will make a continual effort in our operation

-¥41

¥

460,237

vs. Previous period+¥4,489

Properties under Management

Debt Financing(End of November 2021)(End of November 2021)

Ratio of area with increased rent

Number of properties

Interest-bearing debt

24 %of TLC REIT Management Inc., the asset manager of API,

superiority of the location and quality of our assets.

as well as by utilizing the value chain of the Tokyu Fudosan

In August 2021, API conducted a seventh follow-

Holdings Group.

on public offering, and in connection with the offering,

We would be most grateful for your continued support

the investment corporation acquired three Tokyo Officeand encouragement. Thank you.

¥29million(Note 1).

In October 2021, we also conducted an asset replacement
by disposing of Tokyu Plaza Akasaka (50% co-ownership(Note 1) A lthough the name A-PLACE Shibuya Nampeidai as of the date of thisreport is Nikko Shibuya Nampeidai Building, it will be changed as of
September 1, 2022.
(Note 2) A lthough the name A-PLACE Tamachi East as of the date of this report
is Tamachi East Building, it will be changed as of November 1, 2022.

-26 ptvs. Previous period-¥ 68 million

11%
22.7k

+3

260.3 billion +16.2

vs. End of May 2021¥

548.0 billion +¥38.9

46.0%

billionCore asset ratio (UR + TO)

81.1%

vs. Previous period-1pt+¥ 0.6k

4.4 years

vs. End of May 2021

+1.4pt643.3 billion +¥42.4

Rent gap

0.53%

billionUnrealized gain

vs. Previous period

+6pt

¥

99.9 billion-0.5ptvs. End of May 2021

+0.2 years

Avg. interest rate

vs. End of May 2021¥

vs. End of May 2021

Avg. remaining years to maturity

Appraisal value

vs. Previous periodbillionLTV (book value)
vs. End of May 2021¥

Average rent¥

vs. End of May 2021

AUM

Increase rate0%

Properties, including Meguro Tokyu Building, Q plaza

47

vs. Previous period

Increased amountaccomplish this by leveraging the expertise and network

looking ahead of post COVID-19, taking advantage of the.

vs. Previous period(FP20 ended November 2021)

For the 21st period ending May 2022 and onwards, we

weakening market. There has been stable performance inShinjuku-3chome, and A-PLACE Shibuya Nampeidai

9,360

NAV per unit

Internal Growth (Offices)

reduce the environmental impact and to contribute to our

economic activity will normalize due to the lifting of the(Note 2)

DPU (Note 1)

investment unit were ¥9,360.

under review, there was a steadily improving trend in

4

15.6

under review has enhanced to 47 properties with the total

recovery of those affected by COVID-19 and extend ourinterest) and acquiring A-PLACE Tamachi East¥

Profit-0.00pt

Commitment line

vs. End of May 2021+¥ 4.0 billion

vs. End of May 2021¥

21.0 billion

vs. End of May 2021—

(Note) Figures for “Internal Growth in Office” are calculated based on all offices of Tokyo Office Properties and Activia Account Properties. Increased amount refers to the amount of
the total difference before and after rent revision (at contract renewal or tenant replacement) adjusted for the period covered.

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DPU Summary for FP20 Ended November 2021 vs. Forecast
Profit exceeded our forecast due to better-than-expected NOI and lower debt cost, etc.
 e retain a portion of the capital gain as an internal reserve to ensure stable cash distribution for theWfuture. Even after these deductions, the DPU for FP20 ended November 2021 turned out to be ¥10higher than the forecast.

(¥/unit)
9,500¥9,350

Improved NOI

9,250

9,000

Cash
distribution inexcess of
earnings

Capitalgain

Internal reserve-65-33
Tax oninternal reserve

Decrease inrent reduction+67

Decrease in
downtime, etc.
+23

Rent revision
+4

Other
revenue/cost+54

Financial cost
+94

Path to Growth Post Pandemic
 et a solid base for future DPU growth driven by profitability improvement through operations andS
qualitative improvement of our portfolio through asset replacements and asset acquisitions.
 o secure a stable DPU for the time being, we plan to execute asset replacement and realize a part of theTunrealized gain on the portfolio, which was approximately ¥100 bn as of the end of November 2021.

¥9,360

Build a more competitive portfolio byasset replacements.
Enhance and stabilize revenue basethrough asset acquisitions¥9,360¥9,3250

3FP20 ended
Nov. 2021
Forecast

FP20 ended
Nov. 2021
ActualForecast DPU Summary for FP21 Ending May 2022 and FP22 Ending Nov. 2022
 or FP21 ending May 2022, the full period contribution from new assets acquired during FP20 will beFthe major positive; the absence of the capital gain and extending downtime will be the major negatives.

¥9,210Stabilize DPU byactualizing a part ofunrealized gainon assets

 or FP22 ending November 2022, we strongly intend to actualize this forecast DPU level by managing
F
the size of the capital gain with the acquirer, which will depend upon trading conditions such as the
progress of our leasing activities.

(¥/unit)
9,500¥9,360Benefit¥9,325
Financialfrom
Rent
asset Decrease revision cost+49
replace- in rent
+96
ment reduction
+27
+497

9,250

9,000

Absenceof capitalgain-206 Downtime,
etc.
-238

8,750

6

Property-related Financial
cost
tax on-46
newFP20 ended
Nov. 2021
ActualDecrease
Other
Rent
in rent
revenue/reduction revision
cost
+17
+30
+224

¥9,200Occupancy
improvement
followed byinternal growth¥9,210
Expectedgain onsale+237

assets-125
Downtime,
etc.
-452

Other
revenue/
cost
-260

8,500

0

Size will be subject to the leasing
status at the period and negotiation
with the acquirer of the assets

External growth
including asset
replacement

FP21 ending
May 2022
Forecast

FP22 ending
Nov. 2022
Forecast

FP20 ended FP21 ending FP22 ending
Nov. 2021
May 2022
Nov. 2022
ActualForecast
Forecast

DPU level until
market recovery
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Office Leasing Status

Status of Retail Tenants

 mid prolonging leasing activities, major tenants are going to depart. This is going to put pressure on theAoccupancy rate.

1. Sales trend in UR properties (vs. two years ago)(%)

Tokyu Plaza Omotesando Harajku

 e aim to regain occupancy swiftly by focusing on districts with high demand. We also plan to be flexible inWleasing conditions for the large vacant spaces that will be generated by major tenant departures.

100

DECKS Tokyo Beach

2. Tenant replacement° Adidas’s new store
offers a new retailexperience with
exclusive services
available only in thisspace in Japan,
including a sneakercleaning service

1. Occupancy rate (actual and forecast)
(%)
100

50

Forecast
98.6
97.9
96.7
95.9

Key factors

96

92

FP18 ended
Nov. 2020 Actual

Umeda Gate Tower(departure)

A-PLACE Shinbashi(departure)

Shiodome Building(departure)-1.0%pt-0.8%pt-3.0%pt

Ebisu Prime Square(arrival)

Umeda Gate Tower(arrival)+0.5%pt+1.0%pt

FP19 ended
May 2021 Actual

FP20 ended
Nov. 2021 Actual

2. A
 ctual-to-market rent gap by area(¥ mn/period)
400

Actual rent is below market rate
Actual rent is above market rate

TO-10

TO-9

(200)

All

the Greater Shinagawa •Shibuya Gotanda area
area

Osaka
area

° Actively pursue rent growthin order to grow profit
8

21/2

21/3

21/4

A-PLACE Shinagawa

AA-7+14.3%

+7.5%

Area

Area

100 tsubo

850 tsubo
Ebisu Prime Square

Downtime

Downtime

0 months

0 months

Area

Area

70 tsubo

40 tsubo° Prioritize occupancy
depending upon eachsituation

21/9 21/10 21/11

4. Lease expiry diversification

4,432
tsubo

Fixed-termlease*

91%

954
tsubo

817
tsubo

2023.5(FP23)

2023.11(FP24)

2024.11(FP26)

2025.5(FP27)

2025.11(FP28)

6. RevPAR (vs. two years ago)*
Average for FP20,
ended Nov. 2021:

52%

36%

2024.5(FP25)

556
tsubo

5. Room occupancy*
Average for FP20,
ended Nov. 2021:

2022.11(FP22)

525
tsubo

2022.5(FP21)

29%

41%
34%

32%

38%

30% 30%
25%

30%

19%

Dec.

Jan.

Feb.

24%

16%
18%

18%

16%

30%

20%

24%

18%
13%

12%
Mar.

Apr.

FP19 ended May 2021

Image for illustration purpose

2,220
tsubo

1,848
tsubo

*Based on the total fixed rents in UR & AA retail properties

26% 26%° Fully furnished office space withflexible lease conditions allow
tenants to reduce relocation costand prompt them to move

GLA (Retail)63,546 tsubo

4. Furnished office space° Will be available at TLC Ebisu
Building

21/8

6,071
tsubo

36%

° Adapting to changing tenant
demands, and therefore
promoting our leasing initiatives

Area where actual rent isabove market rate

21/7

3. Fixed-term lease ratio

Osaka Nakanoshima Building
Rent increase

TO-18

21/6

FP22 ending
Nov. 2022 Forecast

Rent increase

A-PLACE Gotanda

21/5

Other

(400)

Area where actual rent isbelow market rate

20/12 21/1

3. Cases with upward rent revision and tenant replacement200

0FP21 ending
May 2022 Forecast

0

Contracted

96.7

Tokyu Plaza
Omotesando
Harajuku

UR-1

May

Jun.

Jul.

Aug. Sep.

Oct.

Nov.

FP20 ended November 2021

(Note) Data exclude figures for Tokyu Plaza Akasaka disposed as of October 29, 2021.

Dec.

Jan.

Feb.

Mar.

Apr.

FP19 ended May 2021

May

Jun.

Jul.

Aug. Sep.

Oct.

Nov.

FP20 ended November 2021

(Note) Data exclude figures for Tokyu Plaza Akasaka disposed as of October 29, 2021.

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Acquisition / Disposition Policy

External Growth Strategy
Combined strategy of fund-recycling model and asset-recycling model for our external growth or acquisitions, we are going to focus both on immediate stability and on growth potential in theFmedium- to long-term, as market conditions remain still uncertain.

 upport from our sponsor as a real estate developer allowing our portfolio enhancement andS
qualitative improvement in the medium- to long-term ssets to be disposed of will be chosen by analysis using three criteria; profitability, building age, andAcompetitive advantages.

Fund-recycling model(simple asset acquisition)

Asset
acquisition

1 Acquisition criteria

Asset-recycling model(asset replacement) ocational advantage and competitiveness of theLbuildings
Contributes to improved unitholder value, such as
growth potential in DPU and NAV

Substituting
asset

Currently held by Sponsor

Stable revenue such as long and fixed-term contracts

82
GFA ofbuildings with

1,588

thousand square meters• Stable revenue base by asset acquisition• Actualize unrealized gain at asset disposition• Pipeline potential as disposed assets arelikely to be redeveloped(As of Sep. 2021)• Development profit by selling assets to API• Promote redevelopment projects by acquiring
assets from API

Fund

Asset
disposition
Q plaza
Shinjuku- 3chome

A-FLAG SAPPORO

Kyoto Karasuma
Parking BuildingPotential revenue over the medium- to long-term

Office(52 buildings)

Retail(30 buildings)

748k m840k m2

2

Asset Acquisition and Replacement through a Public Offering
Acquired one property with secured stability in a prime location and three office properties in our
focused investment areas leveraging our sponsor’s support
 itigated downside risk by qualitative improvement of portfolio through acquisition of assets havingMstability and growth potential

1. 7th follow-on Public Offering
Total acquisition price¥50.3 bn

Capital raised

3.5 %

¥

1.7 %

(Disposed asset)

Sponsor sourced

23.3 bn

46.5 %(End of May 2021)

46.0 %

1) Profitability° Properties with relatively low yield and limited upside potential

2) Building age° Properties requiring a large amount of cash in future for maintenance and capital expenditures, etc.

3) Competitiveness° Properties with a risk of significant rent decrease, long-term vacancy, etc.

Disposition method° Asset replacement in principle to improve portfolio profitability
stable DPU through methods such as asset disposition over multiple fiscal periods and internal° Deliver
reserves

Disposition size

° Up to several billions of yen/period (Disposition over multiple fiscal periods is an option)
gain to total appraisal value of assets at end of Nov. 2021 is 18%° Unrealized(47 properties/total unrealized gain of ¥100 bn)(End of Nov. 2021)

Disposed asset

Growth potential
Sponsor sourced

Sponsor sourced

Sponsor sourced

Replacement

Q plaza
Shinjuku-3chome
Acquisition/
disposition date
Acquisition/
disposition price
10

Meguro Tokyu
Building

A-PLACE
Tamachi East

Total asset LTV

Acquired assets
Stable revenue

A-PLACE
Shibuya Nampeidai

2. Disposition criteria

NOI yield after depreciation(Avg. of 4 acquired assets)

Meguro Tokyu
Building

A-PLACE
Shibuya Nampeidai

A-PLACE
Tamachi East

Sep. 10, 2021
(excluding A-PLACE Tamachi East, acquired on Oct. 29, 2021)¥50,300 mn

Tokyu Plaza Akasaka(50% co-ownership interest)

Oct. 29, 2021
¥11,450 mn

Buyers° Assets where profitability improvement by redevelopment can be expected
Dispose to Sponsor and acquire opportunity for external growth after redevelopment° Assets where profitability improvement by redevelopment cannot be expected
Disposition to third parties is an option
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Status of Financial Management

List of lenders

Initiatives for ESG
Actively promoted ESG efforts such as continuous participation to GRESB as well as issuance of Green Bonds
Became a signatory to PRI as an asset manager in December 2021 and plan to support TCFD in Spring 2022

23%

18 lenders¥260.4 billion

9%

18%
9%

Sumitomo Mitsui Trust Bank

Mizuho Bank

Sumitomo Mitsui Banking Corporation

Development Bank of Japan

Mizuho Trust & Banking

The Bank of Fukuoka

Resona Bank

The Norinchukin Bank

Shinkin Central Bank

The 77 Bank

THE NISHI-NIPPON CITY BANK

2019/72020/52021/10GRESB Real Estate
Assessment: Recognized as the
Asia Listed Office & Retail
Sector Leader

Identified Materiality

MSCI ESG Rating
Ranked up to BB

GRESB Real Estate Assessment:
Recognized as the
topof Japanese listed
participants w/
diversified assets(office & retail)Environment• Reduce environmental
impact

The Gunma Bank

Nippon Life Insurance Company

Sumitomo Mitsui Insurance Company

Taiyo Life Insurance Company

Tokyo Marine & Nichido Fire Insurance

The Bank of Kyoto

Governance• Management framework
corresponding tomultifaceted social
demand towards
sustainable society

2019/7
Issuedthe firstGreen Bonds

Investment corporation bonds

18%

2017/9API

10%MUFG Bank

2016/122019/2

UN Global
Compact Signatory

Became GRESB
Participant Member

TRM

Trend in LTV
LTV at the end of the FP20 ended November 2021 was 46.0% (appraisal LTV was 39.1%), being controlled
within the guidance range of 40% to 50%
(%)
50.0

LTV

Appraisal LTV

46.0
44.7

40.0

44.8

39.6
38.3

45.6

38.7
37.7

45.5

38.2

46.5

39.1

46.5

39.0

46.5

39.3

46.0

39.1

LTV

Appraisal
LTV

46.0%

39.1%

Acquisition
capacity

Rating(JCR)¥ 45.6billionAA*at LTV 50%

2017.11
FP12

2018.5
FP13

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11FP18

2021.5FP19

2021.11
FP20(Stable)*Purchased by
Bank of Japan* As of November 30, 2021

5.0

4.0

0.65

0.66

0.63

0.59

0.57

Average interest rate (right axis)

0.55

4.4

4.6

4.5

4.5

4.7

4.4

years

years

years

years

years

years

0.56

4.1

years

0.54

4.2

years

Averageinterest
rate

Fixed
interest
rate ratio

0.75

0.53%

96.6%

4.4
years

0.50

Averageremaining period
to maturity

0.25

4.4

years
3.0

12

2017.11
FP12

2018.5
FP13

2018.11
FP14

2019.5
FP15

2019.11
FP16

2020.5FP17

2020.11FP18

2021.5FP19

2021.11FP20

0.00

2021/11

Released inauguralsustainability report

Fourth Issue ofgreen bonds

2021/122022/3 (plan)

Signatory of PRI(Principles for
Responsible Investment)

Become TCFD*
supporter

2020/92021/4

EstablishedSustainability Policy

Established Green
Procurement Policy

Officialized Sustainability Promotion Council
and established Sustainability Department

2018

2019

Setting KPIs

2020

2021

2022

Adoption of renewable energy

 et KPIs to translate our environmental policy
Saligned with our materiality into concrete initiatives

 enewable energy adoption will start with fourRproperties from the period ending in May 2022

 ccelerate and deepen initiatives to achieveA
performance targets

 doption to the entire portfolio will be promoted
A
after close examination of associated costs, withcareful attention to unitholder value.

Renewable Energy Procurement°A ccelerate procurement of renewable energy

Scheduled transition to renewable electricity in fourbuildings from the period ending in May 2022
Sponsor co-owned

Other

Portfolio Greening

(%)
1.00

0.53

2021/6*Task Force on
Climate-related
Financial Disclosures° Reduce CO2 emissions through renewable energy ealized lowered average interest rate and longer average remaining period to maturity. We willRcontinue to work for debt cost reduction
Average years remaining to maturity (left axis)

2017

Rebalanced the asset
management fee (Lowered total
asset-based fee and increased
DPU and NOI-based fee)

2019/4(Plan to set up the KPI by July 2022 after cost estimation)

Trends in average period remaining to maturity and average interest rate

(years)
6.0

2016

Set
environmental
KPIs

2019/8Social• Human capitaldevelopment as a groupof professionals• Contribution to the local
communities• Health and well-being of
tenants• Supplier Engagementby Sponsor Group

2022/1Long-term
borrowing
ratio

100%

° 70% or more green-certified assets by 2030
° Promote green leases for 100% of new contracts

Sustainable Finance°1 00% green bonds for new issues of investment
corporation bonds*° Consider diversification of sustainable finance methods*Based on the issuance within current framework

Tokyu Plaza
Omotesando Harajuku

DECKS TokyoBeach

Q plaza
HARAJUKU

Shiodome Building

Estimated impact on portfolio’s environmental performance*based on FY2020 performanceCO2
emissions

23 % lessUse ofrenewable
electricity

21 % more°T hree buildings co-owned with our sponsor will use renewableelectricity generated by the sponsor’s group* As of November 30, 2021

Contract

Retailer/
Tokyu Group's
wholesaler ofelectricity

Retail13

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API’s Strengths

S

1. Portfolio composition policy

Initiatives for ESGW e intend to maintain a competitive portfolio in the medium to long term by investing primarily in Urban
Retail Properties and Tokyo Office Properties upon careful consideration of location as the most importantfactor, followed by other factors such as size, quality, specifications and suitability of tenants.

1. Green certifications (As of the end of November 2021)
GRESB Real Estate Assessment

Green-certified assets

Global rating

Disclosure

5 stars for four consecutive years
Top among Japaneselisted participants
w/diversified assets (office/retail)Highest A rank for four
consecutive years

2. Green bonds (As of November 30, 2021)
Outstanding
Remaining capacity

17.4 bn¥ 115.9 bn¥

Newly certified

3 properties

Green-certified assets

29 properties

GFA

65 %

3. Green leases (green clauses in lease contracts)
New leases contracted in
FP ended Nov. 2021
Green lease ratio

Urban Retail Properties

Tokyo Office Properties

Activia Account Properties

Urban retail properties that areeasily recognized and locatedeither near major train stations or
popular areas in Tokyo,
government-designated major
cities within Japan’s three major
metropolitan areas and other major
cities in Japan

Office properties within the 23
wards of Tokyo in areas with a highconcentration of offices andlocated near major train stations

To enhance the stability and profitabilityof our portfolio, we rigorously selectcommercial facilities other than Urban
Retail Properties and office building
other than Tokyo Office Properties,
assessing the attributes andcompetitiveness of each property

Target investment ratio(based on acquisition price)

62
100 %

4. Measures taken at properties
Resource recycling within the premises (Tokyu Plaza Omotesando Harajuku)° Compost raw garbage generated in restaurants° Manure will be utilized for strawberry plants in rooftop garden on the premises. Strawberries will be
used in the dishes in restaurants

7. Measures taken at properties

Donation through regional revitalization support
tax system by our asset manager

Perks for tenant employees working inAPI’s office properties

a second donation following last year to the fundraising° Made
program to support medical staff
and to set up medical
infrastructure in Hokkaido where
A-FLAG SAPPORO is located° Contribution to regional
communities through donation

6. For investors
J-REIT glossary on
API website° Glossaries for J-REITs in generaland API-specific vocabularies areposted on our website (Japanese
only)

14

perks for tenant employees such as° Various
discount coupon for sponsor group’scommercial facilities and hotels° Tenants can enhance employee benefits
which represents an opportunity for API to betenants’ first choice

Shared bicycles

Target investment ratio% or more(based on acquisition price)

Investment ratio (by category)Tokyo Office Properties(TO)

Other major cities
of Japan

2%

Retail

58.0%

42.0%

6 central wardsof TokyoThree metropolitan
areas

34.2%
Office30% or less

Investment ratio (by area)

Urban Retail
Properties
(UR)

46.9%

in project to collect and recycle plastic materials in retail facilities in Tokyo° Participating
Verifyingrecyclesystem for packaging waste from clothing/apparel shops°

5. For local communities

70

71%

25%
Other wardsof Tokyo
Activia Account
Properties (AA)

2%

18.9%
Core asset ratio

81.1% (UR + TO)

Asset size ¥548.0 billion

2. Utilizing sponsor’s value chainW e utilize the support and capabilities of Tokyu Fudosan Holdings Group companies’ value chain during
the various phases of managing our assets, including at acquisition of competitive assets (external growth)and by maximizing the profitability of our assets under management (internal growth).

(Tokyu Plaza Omotesando Harajuku, Q plaza SHINSAIBASHI,
Q plaza HARAJUKU, A-PLACE Shibuya Konnoh)

Listed on the 1st section of Tokyo Stock Exchange with securities code 3289,
Operating revenue: ¥907.7 bn; Operating profit: ¥56.5 bn (Result FY2021)° For an electric bicycle-sharing program,docking stations are installed at four properties° Support a sustainable public transportation

Food trucks (A-PLACE Aoyama)° Demand for food takeout on the rise during
COVID-19

Residence

Hotel

Wellness

OfficeCommercial
properties

Logistics
properties

RenewableenergyOverseabusiness

Building
management

Brokerage

Retail° Contributes to improved tenant satisfaction,
as there are few restaurants in the neighborhood
15

Portfolio Map
UR-1

Tokyu Plaza
Omotesando Harajuku

UR-3

Q plaza EBISU

UR-9

A-FLAGSHIBUYA

UR-11

A-FLAG
KOTTO DORI

UR-12

A-FLAG
BIJUTSUKAN DORI

UR-13

A-FLAGDAIKANYAMA WEST

UR-15

DECKS Tokyo
Beach

UR-16

Tokyu Plaza
Ginza (Land)

UR-17

Q plaza
HARAJUKU

TO-1

TLC Ebisu
Building

TO-2

A-PLACE
Ebisu Minami

TO-3

A-PLACE Yoyogi

TO-4

A-PLACE
AoyamaTO-5

Luogo Shiodome

TO-6

TAMACHISQUARE (Land)

TO-7

A-PLACE
Ikebukuro

TO-8

A-PLACE
Shinbashi

TO-9

A-PLACE
GotandaTO-10

A-PLACE
Shinagawa

TO-11

OSAKI
WIZTOWER

TO-12

Shiodome
Building

TO-13

A-PLACE
Ebisu Higashi

TO-14

A-PLACE
Shibuya Konnoh

TO-15

A-PLACE
Gotanda Ekimae

TO-16

A-PLACE
Shinagawa Higashi

TO-18

Ebisu Prime Square

TO-19

Tamachi East Building(Scheduled) (Note 2)

TO-20

Meguro Tokyu
Building

TO-21

Q plaza
Shinjuku-3chome

TO-22

A-PLACE Shibuya
Nampeidai

Kita Ward

Arakawa Ward

Toshima Ward

Ikebukuro

Nippori

7

Taito Ward
Bunkyo Ward

Takadanobaba

NakanoWard

Shinjuku Ward

Ueno

Asakusa

Akihabara

Chiyoda Ward

SumidaWard

21

Shinjuku

Yotsuya3

Tokyo
Harajuku
ShibuyaWard

17

Akasaka
Mitsuke

4

1

Gaienmae
Omotesando
11 12

9

Shibuya8

Tokyo Tower

22
13 18
3 1
2 Ebisu

TamachiMeguroWard

Meguro

5

Chuo
Ward

Shinbashi

Minato Ward

14
13

16

Hamamatsucho

6
19

Takanawa Gateway

20
9

12

10 16

15

GotandaOsaki

Shinagawa

15

11

Shinagawa
Ward

Oimachi

URBAN RETAILTOKYO OFFICE

16

17

Portfolio List

Portfolio Map

AA-4

icot Mizonokuchi

AA-5

icot Tama Center

AA-8

Greater Tokyo Area

icot Omori

5
9Shin-Yokohama

AA-9Market Square
Sagamihara

AA-11

CategoryTokyo

4(As of November 30, 2021)

8

Property
numberLocation

UR-3
UR-5
UR-7

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

UR-8

A-FLAG SAPPORO

UR-9

A-FLAG SHIBUYA

UR-1

11

Property nameUR-10 Q plaza SHINSAIBASHI

A-PLACE
Bashamichi

UR-11 A-FLAG KOTTO DORI
UR-12 A-FLAG BIJUTSUKAN DORI
UR-13 A-FLAG DAIKANYAMA WEST
UR-14 A-FLAG KITA SHINSAIBASHI8UR-8URBAN RETAIL

AA-12

A-FLAG SAPPORO

Commercial Mall
HakataACTIVIAACCOUNT

SapporoAA-6

HakataA-PLACE
Kanayama

6
12

5
Kyoto

NagoyaShin-Kobe

1
10 Shin-Osaka
7
10
14
13
2

7

UR-5

Kyoto Karasuma
Parking Building

UR-7

Kobe Kyu Kyoryuchi
25Bankan

UR-10

Q plaza
SHINSAIBASHI

UR-14

A-FLAG KITASHINSAIBASHI

icot Nakamozu

AA-7

AA-10

AA-13

4,410

0.8%

21,229.16

May 1980

96.1%

6,370

1.2%

3,403.07

Jun. 1988

100.0%

13,3502.4%

2,820.23

Nov. 2007

100.0%

4,370
4,700
2,280

0.8%
0.9%
0.4%

2,656.53
1,994.65
2,579.08

Jan. 1992
Dec. 1998
Apr. 1992

88.9%
100.0%
100.0%

4,725

0.9%

2,538.13

Mar. 2008

100.0%

37,50013,200187,265
7,400
9,640
4,070
8,790
4,540
2,338

6.8%
2.4%
34.2%
1.4%
1.8%
0.7%
1.6%
0.8%
0.4%

1,130.04
3,378.49
108,062.10
7,342.60
7,950.49
3,106.17
7,303.69
4,476.35
1,287.96

3,990

0.7%

3,409.73

5,650
5,730
3,800
10,69071,600
7,072
4,810
7,280

1.0%
1.0%
0.7%
2.0%
13.1%
1.3%
0.9%
1.3%

5,054.19
4,028.69
2,986.36
7,193.28
28,136.05
4,010.69
3,010.53
4,333.64

TO-7

A-PLACE Ikebukuro

TO-8
TO-9
TO-10
TO-11
TO-12
TO-13
TO-14
TO-15

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

Ebisu, Shibuya-ku, Tokyo
Ebisu-Minami, Shibuya-ku, Tokyo
Sendagaya, Shibuya-ku, Tokyo
Kita-Aoyama, Minato-ku, Tokyo
Higashi-Shinbashi, Minato-ku, Tokyo
Shiba, Minato-ku, Tokyo
Minami-Ikebukuro,
Toshima-ku, Tokyo
Shinbashi, Minato-ku, Tokyo
Nishi-Gotanda, Shinagawa-ku, Tokyo
Konan, Minato-ku, Tokyo
Osaki, Shinagawa-ku, Tokyo
Kaigan, Minato-ku, Tokyo
Higashi, Shibuya-ku, Tokyo
Shibuya, Shibuya-ku, Tokyo
Nishi-Gotanda, Shinagawa-ku, Tokyo

100.0%
100.0%
89.3%
100.0%
100.0%
99.5%
100.0%
100.0%
100.0%

93.2%
98.8%
100.0%
100.0%
100.0%
96.7%
100.0%

Jun. 2007

100.0%
100.0%

18,800

3.4%

TO-18 Ebisu Prime Square (Note 2)
TO-19 A-PLACE Tamachi East
TO-20 Meguro Tokyu Building
TO-21 Q plaza Shinjuku-3chomeTO-22 A-PLACE Shibuya Nampeidai
Tokyo Office properties
AA-1 Amagasaki Q's MALL (Land)

Hiroo, Shibuya-ku, Tokyo
Shibaura, Minato-ku, Tokyo
Kami-osaki, Shinagawa-ku, Tokyo
Shinjuku, Shinjuku-ku, Tokyo
Nampeidai-cho, Shibuya-ku, Tokyo

30,7006,800
16,30018,4008,800
257,200
12,000

5.6%
1.2%
3.0%
3.4%
1.6%
46.9%
2.2%

8,500

1.6%

28,098.02

AA-10 Umeda Gate Tower
AA-11 A-PLACE Bashamichi

AA-13 EDGE Shinsaibashi
Activia Account properties
Total

Shioe, Amagasaki City, Hyogo
Nakamozucho, Kita-ku,
Sakai City, Osaka
Mizonokuchi, Takatsu-ku, Kawasaki
City, Kanagawa
Ochiai, Tama City, Tokyo
Kanayama, Naka-ku,
Nagoya City, Aichi
Nakanoshima, Kita-ku,
Osaka City, Osaka
Omorikita, Ota-ku, Tokyo
Shimokuzawa, Chuo-ku,
Sagamihara City, Kanagawa
Tsurunocho, Kita-ku, Osaka City,
Osaka
Honcho, Naka-ku, Yokohama City,
Kanagawa
Tokojimachi, Hakata-ku, Fukuoka City,
Fukuoka
Nishi-Shinsaibashi, Chuo-ku, Osaka
City, Osaka

100.0%
93.0%
97.5%
82.2%
100.0%
100.0%
100.0%
79.1%
100.0%

Oct. 2011

Konan, Minato-ku, Tokyo

icot Nakamozu

95.0%

Mar. 1999
Feb. 2012
Sep. 1991
Jan. 2014
Dec. 2007
Jan. 1992
Mar. 1992
Nov. 1993
Aug. 1985(Main building)
14,658.98
Sep. 1999(Annex)
18,063.03
Jan. 1997
4,288.88
Apr. 2003
6,993.70
Dec. 2002
4,528.01
Sep. 1992
4,373.54
Jul. 1989
146,536.56—
27,465.44—

TO-16 A-PLACE Shinagawa Higashi

AA-12 Commercial Mall Hakata

18

100.0%
100.0%
98.0%

Ginza, Chuo-ku, Tokyo
Jingumae, Shibuya-ku, Tokyo

AA-9 Market Square Sagamihara

AA-2

97.5%

Aug. 2008
Jul. 2006
Jan. 2010

UR-16 Tokyu Plaza Ginza (Land)
UR-17 Q plaza HARAJUKU (Note 2)
Urban Retail properties
TO-1 TLC Ebisu Building
TO-2 A-PLACE Ebisu Minami
TO-3 A-PLACE Yoyogi
TO-4 A-PLACE AoyamaTO-5 Luogo Shiodome
TO-6 TAMACHI SQUARE (Land) (Note 3)

AA-7 Osaka Nakanoshima Building

AA-1

Mar. 2012

4,024.88
21,616.04
19,653.90

16,119.47

AA-8 icot Omori

EDGE
Shinsaibashi

4,918.43

1.5%
1.6%
3.9%

2.3%

AA-6 A-PLACE Kanayama

Umeda Gate
Tower

8.2%

8,430
8,860
21,33012,740AA-4 icot Mizonokuchi

Osaka Nakanoshima
Building

45,000Ebisu, Shibuya-ku, Tokyo
Motohonenjicho, Nakagyo-ku, Kyoto
Kyomachi, Chuo-ku, Kobe City, Hyogo
Minami-Yonjo-Nishi, Chuo-ku, Sapporo
City, Hokkaido
Udagawacho, Shibuya-ku, Tokyo
Shinsaibashi-suji, Chuo-ku, Osaka
City, Osaka
Minami-Aoyama, Minato-ku, Tokyo
Minami-Aoyama, Minato-ku, Tokyo
Sarugakucho, Shibuya-ku, Tokyo
Minami-Senba, Chuo-ku, Osaka City,
Osaka
Daiba, Minato-ku, Tokyo(Note 2)

Occupancy
rate

Jingumae, Shibuya-ku, Tokyo

UR-15 DECKS Tokyo Beach (Note 2)

AA-5 icot Tama Center

Amagasaki Q's
MALL (Land)

Completion(Note 1)

Jun. 1996
Nov. 2000(Extension)—
Mar. 2015—
Mar. 1993
Jan. 1995
Feb. 2007
Sep. 1966
Jul. 2004—

AA-2

Hyogo/Osaka/Kyoto

Acquisition price Investment Total leasable(In millions of yen)ratio
area (m2)

95.2%

2,710

0.5%

14,032.05

Jul. 1998

2,840

0.5%

5,181.58

Mar. 2006

98.6%

6,980

1.3%

9,314.90

Feb. 2009100.0%

11,1002.0%

20,226.77

Mar. 1984

99.5%

5,790

1.1%

6,209.78

Mar. 2007

100.0%

4,820

0.9%

15,152.42

Jun. 2014

100.0%

19,0003.5%

13,566.95

Jan. 2010

85.5%

3,930

0.7%

9,710.91

May 1975

100.0%

6,100

1.1%

9,612.88

Nov. 2005

89.7%

3.6%

15,897.10

Apr. 1986

100.0%

18.9% 174,468.80
100.0% 429,067.46

—
—

98.2%
97.5%

19,800103,570548,035(Note 1) T he completion date is the date of construction of the main building as described in the property registry. For properties with multiple main buildings, the construction date of the oldest building
is listed. However, for A-PLACE Shinbashi and A-FLAG SHIBUYA, the date of inspection that confirms the completion of construction written on the certificate of inspection is provided.
(Note 2) F igures provided for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land), Q plaza HARAJUKU, Shiodome Building and Ebisu Prime Square are in proportion to
our pro rata share of the co-ownership interests (75%, 49%, 30%, 60%, 35% and 51%, respectively).
(Note 3) The acquisition price of TAMACHI SQUARE (Land) is the land acquisition price at the time of the initial acquisition (June 13, 2012).

19

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

Asset Management Report for the 20th Fiscal Period(Semi-Annual Report)

Fiscal periodBusiness period

From June 1, 2021 to November 30, 2021

III.

Statements of Operations

IV.

Statements of Changes in Unitholders’ Equity

15,542

15,073

15,073

14,715

15,646[14,063][14,009][14,009][13,765][14,283]

Operating expenses(millions of yen)

6,862

6,778

6,845

6,614

6,887

[Expenses related to rent business](millions of yen)

[5,464][5,470][5,588][5,369][5,551]

Operating profit(millions of yen)

8,680

8,228

8,228

8,101

8,758

Ordinary profit(millions of yen)

7,818

7,363

7,363

7,250

7,781

Profit(millions of yen)

7,817

7,363

7,363

7,249

7,753

Net assets(millions of yen)

256,198

255,700

255,705

255,581

278,716

V.

Statements of Cash Distributions

VI.

Statements of Cash Flows

VII.
VIII.

Notes to Financial Statements
Schedule of Financial Statements
Independent Auditor’s Report21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo(%)(millions of yen)

[0.0][－0.2][0.0][－0.0][9.1]

515,480

525,686

525,378

525,379

566,257

[0.2]

[2.0]

[－0.1]

[0.0]

[7.8]

(millions of yen)

248,370

248,370

248,370

248,370

270,963

Number of units issued and outstanding(units)771,224

771,224

771,224

771,224

822,754

Net assets per unit

(yen)332,196

331,558

331,558

331,397338,760

Total distributions(millions of yen)

7,817

7,362

7,362

7,250

7,700

(yen)

10,136

9,547

9,547

9,400

9,754

Cash distributions per unit

(yen)

10,137

9,508

9,547

9,401

9,360

[Earnings distributions per unit][Distributions per unit in excess ofearnings](yen)[10,137][9,504][9,514][9,386][9,360]

(yen)

[－]

[4]

[33]

[15]

[－]

Basic earnings per unit

Activia Properties Inc.

20th period(millions of yen)

Unitholders’ capital

Balance Sheets

19th period(millions of yen)

[Change from the previous period]II.

18th period[Lease business revenue]

Total assets

Asset Management Report

17th period

Operating revenue[Change from the previous period]I.

16th period

From June 1, 2019 From December 1, 2019 From June 1, 2020 From December 1, 2020 From June 1, 2021
to November 30, 2019
to May 31, 2020
to November 30, 2020
to May 31, 2021
to November 30, 2021

(Note4)(Note1)(%)

Ordinary profit to total assets(Note2)

(%)

1.5

1.4

1.4

1.4

1.4

Return on unitholders’ equity(Note2)

(%)

3.1

2.9

2.9

2.8

2.9

Unitholders’ equity to total
assets[Change from the previous
period]

49.7

48.7

48.7

48.6

49.2

(Note2)(%)[－0.1]

[0.1]

[0.1]

[－0.1][0.6]

Payout ratio(Note2)

100.0

99.7

99.7

99.8

99.3

(%)

[Other reference]
Number of properties

44

44

44

44

47

2

(m )

414,008.41

425,490.09

425,490.09

425,493.08

429,067.46

(%)

99.8

98.9

98.9

98.1

97.5

Depreciation(millions of yen)

1,298

1,335

1,335

1,352

1,374

Capital expenditure(millions of yen)

640

650

650

678

810

(millions of yen)

11,034

10,803

10,803

10,705

11,224

Total leasable area

(properties)(Note3)

Occupancy rate at end of period

NOI(Note2)(Note1) Basic earnings per unit is calculated by dividing profit by the daily weighted average number of investment units issued and outstanding (771,224 units, 771,224
units,771,224units, 771,224units, and 794,871units for the 16th, 17th, 18th, 19th and 20th fiscal periods, respectively).
(Note2) The indicators are calculated as follows:
Ordinary profit to total assets: Ordinary profit ÷ Average total assets × 100; Average total assets = (Total assets at beginning of period + Total assets at end of period) ÷ 2
Return on unitholders’ equity: Profit ÷ Average net assets × 100; Average net assets = (Net assets at beginning of period + Net assets at end of period) ÷ 2
Unitholders’ equity to total assets: Net assets at end of period ÷ Total assets at end of period × 100
Payout ratio: Total distribution amount (excluding distributions in excess of earnings) ÷ Profit × 100 (rounded down to the first decimal place)
NOI: Rental operating income (Lease business revenue + Other lease business revenue – Expenses related to rental business) + Depreciation + Loss on retirement of noncurrent assets(Note3) The total leasable area is equal to the gross floor area of leasable space in each property excluding properties for which we acquire land only, based on the leaseagreements for building or floor plans as of the end of each fiscal period. Total leasable area for properties for which only land is acquired is based on the lease agreement
for land or land plans as of the end of each fiscal period. As for Tokyu Plaza Omotesando Harajuku, DECKS Tokyo Beach, Shiodome Building, Q plaza HARAJUKU,
Tokyu Plaza Ginza (Land) and Ebisu Prime Square, the figures are in proportion to a pro rata share of co-ownership interests of each property (75%, 49%, 35%, 60%,
30% and 51% respectively).
(Note4) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not considered.

2
20

21

(2) Asset Management during the Fiscal Period under Review
1) Transition of Investment Corporation
Activia Properties Inc. (hereinafter referred to as the “Investment Corporation”) was established on September 7, 2011, withunitholders’ capital of ¥200 million (400 units) and TLC Township Inc. (on April 1, 2017, an absorption-type merger took placewith 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 an absorbed
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 Trust Act”), and completed its registration in the Kanto Local
Finance Bureau on September 20, 2011 (Director-General of the Kanto Local Finance Bureau No. 73).
After that, the Investment Corporation was listed on the real estate investment trust securities market of Tokyo Stock Exchange,
Inc. (Securities code 3279) on June 13, 2012. On September 7, 2021, the Investment Corporation carried out its seventh
publicly offered capital increase after the listing, and on September 28, 2021, it carried out a third-party allotment.
“Activia” of “Activia Properties,” the name of the Investment Corporation, has been coined from the words “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 broadly energizing society. The Investment Corporation will also select real estate capable ofsustaining 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 improvethe circumstances by taking initiatives and acting for the future).
In the fiscal period under review, which ended on November 30, 2021, the Investment Corporation acquired three “Tokyo
Office Properties,” through publicly offered capital increase, etc., which are categorized as its focused investment properties.
The Investment Corporation also took steps to reshuffle its asset portfolio which involved transferring Tokyu Plaza Akasaka(50% co-ownership interest) and acquiring one “Tokyo Office Property” on October 29, 2021. Consequently, the Investment
Corporation held 47 properties (with the total acquisition price of ¥548,035 million) at the end of the fiscal period under review.

2) Investment Environment and Investment Performance
In the Japanese economy in the fiscal period under review, weakness continued to be seen in the trend of recovery despite thedifficult 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 to smaller offices due to COVID19 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 aretrending upward and rent levels have fallen moderately or remain unchanged.
The J-REIT market was firm due to expectation that economic activity will normalize due to the lifting of the state of
emergency. However, prices declined toward November 30, 2021 due to an increasing sense of caution because of new
COVID-19 variants.
The Investment Corporation acquired three properties, namely Meguro Tokyu Building, Q plaza Shinjuku-3chome and APLACE 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 basic asset management policy set forth in the Articles of Incorporation. On
October 29, 2021, the Investment 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 under review were 47 properties(with the total acquisition price of ¥548,035 million) with the total leasable area 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 report is “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,” itwill be changed as of November 1, 2022.

Sustainability Department was established 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 ESG-related missions
from the Environmental Engineering Department, and we will further promote our sustainability program. As works to reduce
environmental load for the fiscal period under review, the lighting was upgraded to LED lighting at common areas of icot
Omori, some common areas of A-PLACE Yoyogi, A-PLACE Ikebukuro, A-PLACE Shinagawa, A-PLACE Ebisu Higashi andEbisu 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 the renovation of toilets of A-PLACE Shinagawa, andenergy-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 our properties have acquired green building certification, which amounted to 65.4% of ourholdings 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, APLACE 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 Harajuku has started a project aiming for self-sufficiency resource
circulation within the facilities in which raw garbage generated from restaurants within the facilities is turned into compost andthen used for cultivation of strawberries in the field at the roof garden, and the restaurants offer a menu using cultivatedstrawberries. The Investment Corporation will contribute to achieving a sustainable society by engaging in such initiatives
geared to the environment and society.

4) 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 theabove three properties and related costs, the Investment Corporation additionally issued investment units (49,030 units) througha public offering on September 7, 2021, issued new investment units (2,500 units) by a third-party allotment on September 28,
2021, and borrowed 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 and investment 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 to total 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 fixedinterest debt to total interest-bearing debt were 100% and 96.6%, respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review is as follows. This
investment unit does not have a credit rating provided or made available for inspection 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

Stable5) Overview of Financial Results and Distributions
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 topaying distributions of profit of ¥7,700,977,440, which is the entire amount of the unappropriated retained earnings less theamount equivalent 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 of Investment Corporations). Consequently,
distributions per investment unit resulted in ¥9,360.

3) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” with the aim of maximizing
medium- and long-term unitholder value, the Investment Corporation has been promoting various initiatives with its sights set
on lowering environmental loads and contributing to our 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 Corporationneeds to address, we released quantitative targets encompassing a wider range of performance benchmarks from anenvironmental standpoint, and also clearly stated practical management policy to such ends. In addition, we are striving daily toachieve our basic objective of cutting unit energy consumption, etc. by an annual average of 1% over the medium to long term.

4
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23

(3) Capital Increase, etc.
A summary of capital increases until the fiscal period under review is as follows:
Date

Summary

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

October 1, 2015
December 15, 2015
January 6, 2016
December 1, 2016
December 15, 2016
December 13, 2017
December 26, 2017
December 19, 2018
January 7, 2019
September 7, 2021
September 28, 2021

Investment unit split
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment
Capital increase through public
offering
Capital increase through thirdparty allotment

Fluctuation in Market Price of the Investment Securities

Changes in prices of the investment units listed on the Tokyo Stock Exchange REIT Market are as follows.

Number of total
investment units issued

Total unitholders’ capital(millions of yen)

Increase

Increase

Total

Remarks

Total

Fiscal periodBusiness period

16th period

17th period

From June 1, 2019
to November 30, 2019(yen)

18th period

19th period

20th period

From December 1, 2019

From June 1, 2020

From December 1, 2020

From June 1, 2021

to May 31, 2020

to November 30, 2020

to May 31, 2021

to November 30, 2021

400

400

200

200

(Note 1)Highest589,000

582,000

426,000

515,000

531,000

204,100

204,500

90,83491,034(Note 2)Lowest461,000

227,400

335,000

390,500

425,500

762

205,262

339

91,373(Note 3)

(4) Distributions, etc.

43,100248,362

32,636124,010(Note 4)2,700

251,0622,044

126,054(Note 5)24,050275,11222,800148,855(Note 6)2,020

277,132

1,915

150,770(Note 7)277,132554,264—

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

19,152

169,922(Note 9)3,520

599,654

1,610

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

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

665,2142,116

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

13,793

216,026(Note 13)2,400

698,704

1,064

217,091(Note 14)

67,320766,024

29,036

246,127(Note 15)5,200

771,2242,242

248,370(Note 16)

49,030820,254

21,496

269,867(Note 17)2,500

822,754

1,096

270,963(Note 18)

(Note 1) The Investment Corporation was established through an investment of Tokyu Land Corporation, which underwrote the investment units with an offer
price per unit of ¥500,000.
(Note 2) API issued new investment units through a public offering at a price of ¥460,000 per unit (issue price of ¥445,050 per unit) to raise funds for theacquisition of new properties, etc.
(Note 3) Following the public offering on June 12, 2012, API issued new investment units through a third-party allotment at a price of ¥445,050 per unit.
(Note 4) API issued new investment units through a public offering at a price of ¥782,925 per unit (issue price of ¥757,229 per unit) to raise funds for theacquisition of new properties, etc.
(Note 5) Following the public offering on December 16, 2013, API issued new investment units through a third-party allotment at a price of ¥757,229 per unit.
(Note 6) API issued new investment units through a public offering at a price of ¥979,020 per unit (issue price of ¥948,051 per unit) to raise funds for theacquisition of new properties.
(Note 7) Following the public offering on December 17, 2014, API issued new investment units through a third-party allotment at a price of ¥948,051 per unit.
(Note 8) A 2-for-1 investment unit split was implemented with September 30, 2015 as the record date and October 1, 2015 as the effective date.
(Note 9) API issued new investment units through a public offering at a price of ¥472,360 per unit (issue price of ¥457,418 per unit) to raise funds for theacquisition of new properties, etc.
(Note 10) Following the public offering on December 15, 2015, API issued new investment units through a third-party allotment at a price of ¥457,418 per unit.
(Note 11) API issued new investment units through a public offering at a price of ¥483,326 per unit (issue price of ¥468,283 per unit) to raise funds for theacquisition of new properties.
(Note 12) Following the public offering on December 1, 2016, API issued new investment units through a third-party allotment at a price of ¥468,283 per unit.
(Note 13) API issued new investment units through a public offering at a price of ¥458,150 per unit (issue price of ¥443,657 per unit) to raise funds for theacquisition of new properties.
(Note 14) Following the public offering on December 13, 2017, API issued new investment units through a third-party allotment at a price of ¥443,657 per unit.
(Note 15) API issued new investment units through a public offering at a price of ¥445,410 per unit (issue price of ¥431,320 per unit) to raise funds for theacquisition of new properties.
(Note 16) Following the public offering on December 19, 2018, API issued new investment units through a third-party allotment at a price of ¥431,320 per unit.
(Note 17) API issued new investment units through a public offering at a price of ¥452,760 per unit (issue price of ¥438,438 per unit) to raise funds for theacquisition of new properties.
(Note 18) Following the public offering on September 7, 2021, API issued new investment units through a third-party allotment at a price of ¥438,438 per unit.
(Note 19) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are notconsidered.

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 topaying distributions of profit of ¥7,700,977,440, which is the entire amount of the unappropriated retained earnings less theamount equivalent 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 of Investment Corporations). Consequently,
distributions per investment unit resulted in ¥9,360.
Fiscal periodBusiness period

Unappropriated retained earnings

16th period

17th period

18th period

19th period

20th period

From June 1, 2019 From December 1, 2019 From June 1, 2020 From December 1, 2020 From June 1, 2021
to November 30, 2019
to May 31, 2020
to November 30, 2020
to May 31, 2021
to November 30, 2021
¥7,829,267 thousand¥7,333,243 thousand¥7,366,549 thousand¥7,278,928 thousand¥7,793,594 thousand

Retained earnings¥572 thousand¥3,530 thousand¥29,124 thousand¥40,219 thousand¥53,379 thousand

Total distributions¥7,817,897 thousand¥7,332,797 thousand¥7,362,875 thousand¥7,250,276 thousand¥7,700,977 thousand[¥10,137][¥9,508][¥9,547][¥9,401][¥9,360]¥7,817,897 thousand¥7,329,712 thousand¥7,337,425 thousand¥7,238,708 thousand¥7,700,977 thousand[¥10,137][¥9,504][¥9,514][¥9,386][¥9,360]¥－thousand¥3,084 thousand¥25,450 thousand¥11,568 thousand¥－thousand

[¥－]

[¥4]

[¥33]

[¥15]

[¥－]

¥－thousand¥3,084 thousand¥25,450 thousand¥11,568 thousand¥－thousand

[¥－]

[¥4]

[¥33]

[¥15]

[¥－]

¥－thousand¥－thousand¥－thousand¥－thousand¥－thousand

[¥－]

[¥－]

[¥－]

[¥－]

[¥－]

[Distributions per unit]
Of which, total distributions of profits[Distributions of profits per unit]
Of which, total return on unitholders’capital[Return on unitholders’ capital perunit]
Of the total return on unitholders’capital, the total distribution paymentsfrom the allowance for temporary
difference adjustment[Of the return on unitholders’ capitalper unit, the distribution payment
from the allowance for temporary
difference adjustment per unit]
Of the total return on unitholders’capital, the total distribution paymentsfrom investments and other decreased
distribution under tax laws
[Of the return on unitholders’ capitalper unit, the distribution paymentsfrom investments and other decreased
distribution under tax laws]

6
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25

(5) Future Investment Policy and Issues to Address
With regard to the Japanese economy, the corporate sector and the household sector are both expected to recover due to theincrease 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 is necessary 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 expectation that 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 spreadof vaccinations, etc. In the rental office market, the Investment Corporation expects that the locations and quality of properties
will continue to be tested as it is expected that supply and demand will continue to see a trend of easing due to relocations tosmaller offices and partial contract cancellations despite benefitting from a limited 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.

(6) Significant Matters after Book Closing

Resolution regarding acquisition of investment units

The Investment Corporation has decided the acquision of own investment units based on the Article 80-2 ofInvestment Trust Act applied upon reading the terms in the Article 80-5, Paragraph 2 of the Investment Trust
Act at a meeting of the board of directors of the Investment Corporation held on February 17, 2022.
The Investment Corporation will cancel all the acquired units in 21th fiscal period.
(1) Reason for acquisition of own investment units
Considering various facts such as the level of investment unit price, situation of cash in hand, financial situation and market
environment, the Investment Corporation expects that improving capital efficiency and returning profit to investors throuthacquiring own investment units will improve the investors' value in mid-to long-term.
(2) Details of acquisition of own investment units
Total number of own investment units to be acquired：13,000 units (maximum)
Total acquisition price：4,000,000 thousand yen (maximum)
Acquisition period：From February 18, 2022 to May 13, 2022
Method of acquisition：The investment Corporation entrusts the market purchase of its own investment units at Tokyo Stock
Exchange to a securities company by discretionary transaction contract.

1) Basic Policy
The Investment Corporation’s basic policies are to invest in assets, with targeted investments in Urban Retail and Tokyo Officeproperties; utilize the Tokyu Fudosan Holdings Group’s value chain based on the comprehensive support system; and agovernance structure that maximizes unitholder value.

2) External Growth Strategy
The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main target. It will make its
investment decisions carefully, concentrating on selecting properties in excellent locations, including surrounding areas, andthoroughly considering individual factors such as use, size, specifications and other qualities of properties, and credibility andname recognition of tenants, in order to construct a competitive portfolio in the medium to long term.
To acquire these competitive assets on an ongoing basis, the Investment Corporation will work to maintain and improve thequality 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 groupcompanies in the Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive know-how andinformation-gathering network of the Asset Manager.

3) Internal Growth Strategy
The Investment Corporation will operate, manage, and refurbish its portfolio to maintain and improve the competitiveness of its
facilities through a comprehensive understanding of the features of its overall portfolio and its individual assets undermanagement, based on the unique expertise of its Asset Manager. The Investment Corporation will also seek to manage its
portfolio in a stable manner 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 regular and non-regular inspections by theproperty management company that has considerable experience in 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 growththrough operating and managing properties. It will maximize the competitiveness of its assets through the ongoing assistance of
Tokyu Land Corporation and other support companies, which, through their face-to-face business with consumers, have 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.

4) Financial Strategy
Having a sound financial strategy in an effort to conservatively control LTV as well as make stable long-term borrowings anddiversify maturities (diversifying repayment dates), the Investment Corporation will endeavor to build a stable financial basewith a solid bank formation based on good relationships with major financial institutions. In addition, with the aim ofdiversifying means of raising funds, the Investment Corporation will issue investment corporation bonds while paying close
attention to trends in financial markets. 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 theaim of achieving long-term and stable growth.

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26

27

(3) Matters Relating to Officers, etc.
1) Executive Director, Supervisory Directors, and Independent Auditor during the Fiscal Period under Review

2. Overview of the Investment Corporation(1) Unitholders’ Capital

Total number of authorized(units)investment units
Total number of investment(units)units issued
Unitholders’ capital(millions of yen)

16th period
As of November
30, 2019(Note)

Number of unitholders

17th period
As of May31, 2020

18th period
As of November
30, 2020

19th period
As of May31, 2021

20th period
As of November
30, 2021

4,000,000

4,000,000

4,000,000

4,000,000

4,000,000

771,224

771,224

771,224

771,224

822,754¥248,370¥248,370¥248,370¥248,370¥270,963(persons)

6,914

7,758

7,542

7,542

8,164

(Note) The changes in unitholders' capital arising from the distributions in excess of earnings from allowance for temporary difference adjustments are not(2) Matters Relating to Investment Units

The top 10 unitholders as of the end of the fiscal period under review are as follows:
Number of units
owned

Percentage of total units issued (%)(Note)

Custody Bank of Japan, Ltd. (Trust accounts)

182,799

22.21

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

133,018

16.16

Tokyu Land Corporation

81,137

9.86

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

35,595

4.32

Custody Bank of Japan, Ltd. (Securities investment trust
accounts)

22,325

2.71

SMBC Nikko Securities Inc.

18,131

2.20

State Street Bank & Trust Company(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited. Tokyo office)14,121

1.71

JAPAN SECURITIES FINANCE CO., LTD.

11,579

1.40

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

9,608

1.16

JP MORGAN CHASE BANK 385781

9,004

1.09

517,317

62.87

Total

Executive
Director(Note 1)Supervisory
Directors(Note 1)

Independent
Auditorconsidered.

Name

Title

Name of officer, etc.

Major concurrent post, etc.

Nobuhide Kashiwagi

TLC REIT Management Inc.,
Chief Division Officer of Activia
Management Division

Yonosuke Yamada

Yamada, Goya and Suzuki Law Office
Managing Partner

Yoshinori Ariga

Ariga Yoshinori Accounting Office
Managing Partner

Ernst & Young ShinNihon
LLC－

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

－

3,300

35,671(Note 2)

(Note 1) Executive director or supervisory directors do not hold any investment units of the Investment Corporation under their or another person’s name.
Supervisory directors may serve as directors of companies other than those mentioned above, but there are no mutual business interests whatsoever
between such companies and the Investment Corporation.
(Note 2) Compensation for the independent auditor includes fees for preparing comfort letters related to the issuance of new investment units in September 2021
and new investment corporation bonds in November 2021 .

2) Policy Regarding the Dismissal of or Refusal to Reappoint the Accounting Auditor
The Investment Corporation will dismiss the accounting auditor in conformity with the provisions of the Investment
Trust Act and determine not to reappoint the accounting auditor through a resolution of a general meeting of unitholders
while comprehensively considering various factors.

(4) Asset Manager, Custodian Company, and Administrative Agent
Consignment classification
Asset manager

Name
TLC REIT Management Inc.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (unitholder registry administration, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting service, etc.)

Sumitomo Mitsui Trust Bank, Limited

General administrator (administrative service)

Sumitomo Mitsui Trust Bank, Limited

General administrator (investment corporation bond service)

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited(Note) The percentage of total units issued is calculated by rounding down to the second decimal place.

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29

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

A summary of properties owned and under management by the Investment Corporation as of the end of the fiscal period
under review is as follows:(1) Composition of Assets of the Investment Corporation
19th period
As of May 31, 2021

Type of assets

Category

Ratio to total assets(%)

Tokyu Plaza Omotesando
Harajuku (Note 4)30-3 Jingu-mae 4-chome, Shibuya-ku, Tokyo

Q plaza EBISU

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

Urban Retail Properties

―

―

―

―

Tokyo Office Properties

―

―

―

―

678 Motohonenjicho, Nakagyo-ku, Kyoto
City, Kyoto

Activia Account Properties

―

―

―

―

Kyoto Karasuma Parking
Building
Kobe Kyu Kyoryuchi
25Bankan(Note 1)

―

―

―

―

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

102,04418.0

505,024

96.1

543,438

96.0

Total real estate, etc.

505,57796.1

543,438

96.0

Deposits and other assets

19,801

3.9

22,8184.0

525,378100.0

566,257

100.0(505,577)(96.1)(543,438)(96.0)

Total assets (Note 2)

Urban Retail Properties

Total amount ofassets owned(millions of yen)

Subtotal

32-13, Udagawa-cho, Shibuya-ku, Tokyo

Q plaza SHINSAIBASHI
A-FLAG KOTTO DORI
A-FLAG BIJUTSUKAN DORI
A-FLAG DAIKANYAMA
WEST
A-FLAG KITASHINSAIBASHI

Leased area(m2)
(Note 2)

Occupancy
rate (%)(Note 3)

Ratio of rental
revenue tototal rental
revenues (%)

70,38028,136.05

28,002.58

99.5

9.8

OfficeTokyu Plaza Omotesando
Harajuku (Note 4)

44,5204,918.43

4,796.34

97.5

7.0

RetailTokyu Plaza Ginza (Land) (Note 4)

37,8951,130.04

1,130.04

100.0

3.8

RetailEbisu Prime Square (Note 4)

31,01018,063.03

16,834.23

93.2

5.2

OfficeKobe Kyu Kyoryuchi 25Bankan

20,103

19,653.90

19,265.71

98.0

4.5

Retail19,977

15,897.10

15,897.10

100.0

3.7

OfficeUmeda Gate Tower

19,042

13,566.95

11,593.87

85.5

3.3

OfficeA-PLACE Shinagawa Higashi

18,761

14,658.98

13,956.02

95.2

3.8

OfficeQ plaza Shinjuku-3chome

18,524

4,528.01

4,528.01

100.0

1.3

OfficeMeguro Tokyu Building

16,391

6,993.70

6,993.70

100.0

0.9

Office296,609

127,546.19

122,997.60

96.4

43.2

(Note 1) Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements forbuilding or floor plans as of November 30, 2021 and leasable space for properties for which we acquire only land, based on lease agreements for land or
land plans as of November 30, 2021.
(Note 2) Leased area refers to the leased area of each property based on lease agreements as of November 30, 2021. For properties with master lease agreements,
leased area refers to leased areas of each property and is actually leased based on sublease agreements with end-tenants.
(Note 3) Occupancy rate refers to the percentage of total leased area for each property to total leasable area for each property as of November 30, 2021, rounding
down to the first decimal place.
(Note 4) As for Shiodome Building, Tokyu Plaza Omotesando Harajuku,Tokyu Plaza Ginza (Land) and Ebisu Prime Square , the figures are in proportion to a
pro rata share of our trust beneficiary co-ownership interest of each property (35%, 75%, 30% and 51% , respectively).

10-11, Minami Senba 3-chome, Chuo-ku,
Osaka city, Osaka

Tokyu Plaza Ginza (Land)(Note 4)2-1, Ginza 5-chome, Chuo-ku, Tokyo

A-PLACE Yoyogi

Luogo Shiodome

Major use

Shiodome Building (Note 4)

11-6, Sarugakucho, Shibuya-ku, Tokyo

6-1, Daiba 1-chome, Minato-ku, Tokyo

A-PLACE Ebisu Minami

Tokyo Office Properties

Leasable area(m2)
(Note 1)

1-10 Shinsaibashi-suji 1-chome, Chuo-ku,
Osaka City, Osaka
4-40, Minami-Aoyama 5-chome, Minatoku, Tokyo
3-16, Minami-Aoyama 6-chome, Minatoku, Tokyo

DECKS Tokyo Beach (Note 4)

TLC Ebisu Building

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

EDGE Shinsaibashi

A-FLAG SHIBUYA

28-6, Jingu-mae 6-chome, Shibuya-ku,
Tokyo

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

Subtotal(2) Major Assets Owned

Property name1, Minami-Yonjo-Nishi 5-chome, Chuo-ku,
Sapporo City, Hokkaido

A-PLACE Aoyama

Book value at endof period(millions of yen)

25 Kyomachi, Chuo-ku, Kobe City, Hyogo

A-FLAG SAPPORO

Q plaza HARAJUKU (Note 4)(Note 1) The total amount of assets owned is based on the amounts on the balance sheets as of the end of each fiscal period (for real estate and real estate in trust,book value less depreciation expenses), in accordance with the asset valuation method set forth in the Articles of Incorporation of the Investment
Corporation.
(Note 2) Total assets represent the amounts recorded on the balance sheets as of the end of each fiscal period. The figures in parentheses represent portions thatpractically correspond to real estate owned in the object assets.

Total

Location

Ratio to total assets(%)

Subtotal

Real estate in trust

Property name

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

Real estate

20th period
As of November 30, 2021

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

TAMACHI SQUARE (Land)

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

A-PLACE Ikebukuro

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

A-PLACE Shinbashi

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

A-PLACE Gotanda

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

A-PLACE Shinagawa

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

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

Shiodome Building (Note 4)

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

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

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

A-PLACE Gotanda Ekimae

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

A-PLACE Shinagawa Higashi

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

Ebisu Prime Square (Note 4)

1-9,39,40 Hiroo 1-chome, Shibuya-ku,
Tokyo

A-PLACE Tamachi East

2-16, Shibaura 3-chome, Minato-ku, Tokyo

Meguro Tokyu Building

13-17, Kami-osaki 2-chome, Shinagawa-ku,
Tokyo

Q plaza Shinjuku-3chome

5-6 Shinjuku 3-chome, Shinjuku-ku, Tokyo

A-PLACE Shibuya Nampeidai

2-17 Nampeidai-cho, Shibuya-ku, Tokyo

Subtotal

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

Total leasable area(m2)
(Note 1)

Assessed value at
end of period(millions of yen)
(Note 2)

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

4,918.43

62,10044,5204,024.88

11,7008,144

21,616.04

10,4008,644

19,653.90

26,70020,103

21,229.16

7,670

4,708

3,403.07

7,910

6,353

2,820.23

14,30013,3652,656.53

4,850

4,383

1,994.65

4,860

4,701

2,579.08

2,300

2,434

2,538.13

4,670

4,832

16,119.47

12,054

12,904

1,130.04

39,00037,895

3,378.49

12,80013,307108,062.10

221,314

186,299

7,342.60

11,8007,116

7,950.49

15,8009,597

3,106.17

5,000

3,837

7,303.69

10,7008,511

4,476.35

6,350

4,435

1,287.96

2,850

2,362

3,409.73

5,610

3,639

5,054.19

7,330

5,731

4,028.69

8,180

5,374

2,986.36

6,320

3,770

7,193.28

14,70010,42328,136.05

77,35070,3804,010.69

7,630

6,990

3,010.53

5,730

4,909

4,333.64

7,950

7,603

14,658.98

21,60018,761

18,063.03

31,30031,0104,288.88

7,130

6,855

6,993.70

16,80016,391

4,528.01

19,20018,524

4,373.54

9,050

8,862

146,536.56

298,380

255,09312
30

31

Amagasaki Q’s MALL (Land)
icot Nakamozu

Activia Account Properties

icot Mizonokuchi
icot Tama Center
A-PLACE Kanayama
Osaka Nakanoshima Building
icot Omori

Location
3-1 Shioe 1-chome, Amagasaki City, Hyogo(main building)
2-3 Shioe 1-chome, Amagasaki City, Hyogo(sports club)428-2 Nakamozucho 3-cho, Kita-ku, Sakai
City, Osaka
11-1 Mizonokuchi 6-chome, Takatsu-ku,
Kawasaki City, Kanagawa
35 Ochiai 1-chome, Tama City, Tokyo
14-18 Kanayama 1-chome, Naka-ku,
Nagoya City, Aichi
2-2 Nakanoshima 2-chome, Kita-ku, Osaka
City, Osaka
8-2, Omorikita 1-chome, Ota-ku, Tokyo

Market Square Sagamihara
Umeda Gate Tower
A-PLACE Bashamichi
Commercial Mall Hakata
EDGE Shinsaibashi
Subtotal
Total

777-2 Shimokuzawa, Chuo-ku, Sagamihara
City, Kanagawa
1-9, Tsurunocho, Kita-ku, Osaka City,Osaka
43 Honcho 4-chome, Naka-ku,Yokohama
City, Kanagawa
6-40, Tokojimachi 2-chome, Hakata-ku,
Fukuoka city, Fukuoka
2-3, Nishi Shinsaibashi 2-chome, Chuo-ku,
Osaka City, Osaka

Asset type

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

Total leasable area(m2)
(Note 1)

Assessed value at
end of period(millions of yen)
(Note 2)

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

27,465.44

14,20012,11328,098.02

10,6008,138

14,032.05

3,240

2,587

5,181.58

3,950

9,314.90

8,660

6,080

17,40011,0486,209.78(Note 5)

6,870

5,662

15,152.42

5,010

4,567

13,566.95

21,60019,0429,710.91

4,760

4,012

9,612.88

5,900

6,274

15,897.10

21,50019,977

174,468.80

123,690102,044643,384

19th period(From December 1, 2020 to May 31, 2021)

2,540

20,226.77

429,067.46

Changes in key figures in the rental business (figures by property owned and under management by the Investment Corporation)

Urban Retail Properties

Property name543,438

Tokyo Office Properties(Note 1) Total leasable area refers to leasable space for each property excluding properties for which we acquire only land, based on lease agreements for building or floor
plans as of November 30, 2021 and leasable space for properties for which we acquire only land, based on lease agreements for land or land plans as of November
30, 2021.
(Note 2) The appraisal of each property is commissioned to the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd.,
Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K.. Assessed value at end of period stands for the appraised value described in each real estateappraisal report, with November 30, 2021 taken as the point of evaluation.
(Note 3) Book value at end of period stands for the book value minus depreciation as of November 30, 2021, rounded down to the nearest ¥ million.
(Note 4) 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 a pro rata share of our trust beneficiary co-ownership interest of each property (75%, 49%, 30%, 60%, 35%, and 51%, respectively).
(Note 5) The calculation of total leasable area for icot Omori includes part of an external bicycle parking lot (approximately 21 m2) and part of a common area on the second
floor (approximately 28 m2).

20th period(From June 1, 2021 to November 30, 2021)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

Tokyu Plaza Omotesando
Harajuku (Note 4)

32

99.3

934

6.4

30

97.5

1,074

7.0

Tokyu Plaza Akasaka (Note 4)

90

96.8

509

3.5

－

－

437

2.8

Q plaza EBISU

4

100.0

270

1.8

4

100.0

273

1.8

Kyoto Karasuma Parking
Building

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

Kobe Kyu Kyoryuchi
25Bankan

7

100.0

691

4.7

6

98.0

697

4.5

A-FLAG SAPPORO

12

96.0

396

2.7

13

96.1

376

2.4

A-FLAG SHIBUYA

2

100.0

215

1.5

2

100.0

212

1.4

Q plaza SHINSAIBASHI

6

100.0

345

2.3

6

100.0

356

2.3

A-FLAG KOTTO DORI

7

88.9

116

0.8

7

88.9

103

0.7

A-FLAG BIJUTSUKAN
DORI

4

100.0

124

0.8

4

100.0

119

0.8

A-FLAG DAIKANYAMA
WEST

1

100.0

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

A-FLAG KITASHINSAIBASHI

5

100.0

94

0.6

5

100.0

101

0.7

DECKS Tokyo Beach (Note
4)

77

94.9

440

3.0

78

95.0

518

3.4

Tokyu Plaza Ginza (Land)(Note 4)

1

100.0

581

3.9

1

100.0

581

3.8
1.5

Q plaza HARAJUKU (Note
4)

14

95.2

229

1.6

14

93.0

227

Subtotal

264

97.8

－

－

173

97.5

－

－

TLC Ebisu Building

11

88.7

319

2.2

11

88.7

286

1.9

A-PLACE Ebisu Minami

10

100.0

361

2.5

10

100.0

435

2.8

A-PLACE Yoyogi

4

100.0

127

0.9

4

100.0

125

0.8

A-PLACE Aoyama

8

100.0

299

2.0

8

100.0

282

1.8

Luogo Shiodome

6

87.3

172

1.2

6

87.3

160

1.0

TAMACHI SQUARE (Land)

1

100.0

62

0.4

1

100.0

62

0.4

A-PLACE Ikebukuro

1

100.0

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

A-PLACE Shinbashi

10

100.0

207

1.4

10

100.0

209

1.4

A-PLACE Gotanda

11

100.0

201

1.4

11

100.0

197

1.3

A-PLACE Shinagawa

8

100.0

142

1.0

8

100.0

144

0.9

OSAKI WIZTOWER

6

100.0

372

2.5

6

100.0

347

2.3

Shiodome Building (Note 4)

36

99.5

1,506

10.2

36

99.5

1,506

9.8

A-PLACE Ebisu Higashi

7

100.0

188

1.3

7

100.0

188

1.2

A-PLACE Shibuya Konnoh

4

100.0

134

0.9

4

100.0

149

1.0

A-PLACE Gotanda Ekimae

11

100.0

170

1.2

11

100.0

199

1.3

A-PLACE Shinagawa Higashi

7

95.2

563

3.8

7

95.2

579

3.8

Ebisu Prime Square(Note 4)

103

89.6

804

5.5

103

89.6

795

5.2

A-PLACE Tamachi East

－

－

－

－

23

98.8

31

0.2

Meguro Tokyu Building

－

－

－

－

8

100.0

144

0.9

Q plaza Shinjuku-3chome

－

－

－

－

4

100.0

197

1.3

A-PLACE Shibuya
Nampeidai

－

－

－

－

13

100.0

88

0.6

Subtotal

244

96.7

－

－

297

96.7

－

－

14
32

33

19th period(From December 1, 2020 to May 31, 2021)

Activia Account Properties

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)

4. Capital Expenditure for Assets under Management

20th period(From June 1, 2021 to November 30, 2021)

Numberoftenants(Note 1)

Occupancy
rate(%)(Note 2)

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

Ratio of rental
revenue to total
rental revenues(%)
2.3

Amagasaki Q’s MALL (Land)

1

100.0

356

2.4

1

100.0

356

icot Nakamozu

2

100.0

310

2.1

2

100.0

311

2.0

icot Mizonokuchi

1

100.0

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

icot Tama Center

10

100.0

142

1.0

9

98.6

142

0.9

A-PLACE Kanayama

21

100.0

288

2.0

21

100.0

306

2.0

Osaka Nakanoshima
Building

38

99.5

548

3.7

39

99.5

550

3.6

icot Omori

8

100.0

220

1.5

8

100.0

219

1.4

Market Square Sagamihara

3

100.0

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

Umeda Gate Tower

17

100.0

460

3.1

16

85.5

502

3.3

A-PLACE Bashamichi

36

100.0

196

1.3

36

100.0

203

1.3

Commercial Mall
Hakata

17

87.0

192

1.3

17

89.7

192

1.3

EDGE Shinsaibashi

21

100.0

578

3.9

20

100.0

570

3.7

Subtotal
Total

175

99.2

－

－

173

98.2

－

－

683

98.1

14,715

100.0

643

97.5

15,396100.0(Note 1) The number of tenants refers to the total number of tenants for each property at the end of each fiscal period, based on each lease agreement. In the casewhere a master lease agreement is in place, the number of end tenants is counted. In the case of a property for which only land is acquired, the total numberof tenants on the land is counted.
(Note 2) Occupancy rate refers to the percentage of leased area to leasable area for each property as of the end of each fiscal period, rounding down to the firstdecimal place.
(Note 3) Rental revenue includes other rental revenue.
(Note 4) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, A-FLAG Akasaka, DECKS Tokyo Beach, Tokyu plaza Ginza (Land), Q plaza
HARAJUKU, Shiodome Building and Ebisu Prime Square the figures are in proportion to a pro rata share of our trust beneficiary co-ownershipinterest of each property (75%, 50%, 50%, 49%, 30%, 60%, 35% and 51%, respectively). Tokyu Plaza Akasaka was disposed October 29,2021.
(Note 5) Rental revenue and the ratio of rental revenue to total rental revenues are not disclosed, as consent from tenants has not been obtained.

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

Over-the-counter

Transaction
Interest rate swaps(Receive floating pay fixed)
Total

Notional contract amount (Note 1)
Over 1 year

(Note 2) (Note 3)

30,140,000

30,140,000(409)

30,140,000

30,140,000(409)(5) Other Assets
There are no major incorporations of other specified assets that are the principal investment targets of the Investment
Corporation as of the end of the fiscal period under review.

(6) Ownership of Assets by Country and Region
Not applicable for countries and regions other than Japan.

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of substationequipment (First period)

From March 2022
to November 2022

560

–

–

Osaka Nakanoshima Building(Osaka, Osaka)

Renovation of air conditioning(Second period)

From December 2023
to May 2024

520

–

–

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of substationequipment (Second period)

From November 2022
to May 2023

470

–

–

Osaka Nakanoshima Building(Osaka, Osaka)
Osaka Nakanoshima Building(Osaka, Osaka)
TLC Ebisu Building(Shibuya, Tokyo)
Osaka Nakanoshima Building(Osaka, Osaka)
Osaka Nakanoshima Building(Osaka, Osaka)
Osaka Nakanoshima Building(Osaka, Osaka)
DECKS Tokyo Beach(Minato, Tokyo)
A-PLACE Shinagawa Higashi(Minato, Tokyo)
A-FLAG SHIBUYA(Shibuya, Tokyo)

Renovation of air conditioning(First period)
Renovation of air conditioning(Third period)

400

–

–

400

–

–

210

–

–

153

–

–

140

–

–

106

–

–

85
(Note)

–

–

77

–

–

74

–

–

73
(Note)

–

–

73

–

–

70

–

–

70

–

–

66

–

–

64

–

–

–

–

–

–

58

–

–

52

–

–

50

–

–

50

–

–

48

–

–

–

–

–

–

–

–

DECKS Tokyo Beach(Minato, Tokyo)
A-PLACE Bashamichi(Yokohama, Kanagawa)Fair value(Note 1) The contract amount of interest rate swaps is presented based on its notional principal.
(Note 2) The statement of the fair value is omitted for those transactions that satisfy requirements for special treatment based on accounting standards forfinancial instruments.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

(1) Scheduled Capital Expenditure

The following table shows major estimated capital expenditure for renovation work, etc. that the Investment 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.
Estimated construction cost
(Millions of yen)
Name of real property
PurposeScheduled period(Location)
Payment for Total amount
Total amountthe period
paid

A-PLACE Aoyama(Minato, Tokyo)
icot Nakamozu(Sakai, Osaka)
A-PLACE Kanayama(Nagoya, Aichi)
TLC Ebisu Building(Shibuya, Tokyo)
Ebisu Prime Square(Shibuya, Tokyo)
DECKS Tokyo Beach(Minato, Tokyo)
Osaka Nakanoshima Building(Osaka, Osaka)
A-FLAG BIJUTSUKAN DORI
(Minato, Tokyo)
TLC Ebisu Building(Shibuya, Tokyo)
A-PLACE Shibuya Konnoh(Shibuya, Tokyo)
TLC Ebisu Building(Shibuya, Tokyo)
DECKS Tokyo Beach(Minato, Tokyo)
Ebisu Prime Square(Shibuya, Tokyo)
Shiodome Building(Minato, Tokyo)

From June 2023
to November 2023
From June 2024
to November 2024
From December 2022
Large-scale repair work
to May 2023
Renovation of air conditioning From December 2024
(Fourth period)to May 2025
Replacement of two emergency From July 2021
elevators
to November 2022
Large-scale renovation of
From June 2022
external wall
to November 2023
Replacement of air conditioning From November 2022
equipment
to November 2022
Overhaul of air conditioning
From October 2023
equipment
to November 2023
From January 2022
Renewal of escalators
to March 2022
Replacement of spray-painted
From February 2023
tiles for SEASIDE Building
to May 2023
(First period)
Replacement of vertical pipes
From June 2021
for supply/pumped clean waterto November 2022
and for black water
From June 2022
Installation of LED lighting
to November 2022
Replacement of substation
From May 2023
equipment (SC Building)to May 2023
Installation of LED lighting in From January 2022
private areas
to May 2022
Renovation work for
From May 2022
mechanical parking facility
to May 2022
Replacement of air conditioning From June 2023
equipment (2 floors)
to October 2023
Readjustment (merging) of
From August 2022
compartmentalization
to September 2022
Repair of lavatory plumbing for From May 2021
2nd to 5th floors
to May 2023
From December 2022
Large-scale repair work
to May 2023
From December 2022
Renovation of entrance
to May 2023
From June 2023 to November
Beautification of lavatory
2023
From May 2022
Installation of set-up office
to May 2022
Replacement of automated fire From September 2021
alarm system
to March 2022
Replacement of air conditioning From December 2022
equipment (1 floor)
to April 2023
Installation of LED lighting
From October 2021
(Third period)
to February 2022

64
(Note)
59(Note)

34(Note)
32(Note)
28(Note)

16
34

35

Name of real property(Location)
Commercial Mall Hakata(Fukuoka, Fukuoka)
A-PLACE
Ikebukuro(Toshima, Tokyo)
Osaka Nakanoshima Building(Osaka, Osaka)
Luogo Shiodome(Minato, Tokyo)
A-FLAG SAPPORO(Sapporo, Hokkaido)
EDGE Shinsaibashi(Osaka, Osaka)
A-PLACE Bashamichi(Yokohama, Kanagawa)PurposeScheduled period

Replacement of air conditioning From December 2021
units
to December 2021
Installation of LED lighting

From January 2022
to May 2022

Repair work of substation
From February 2022
equipment according to facility
to February 2022
planning
From December 2021
Replacement of security system
to May 2022
Disassembly and maintenance From November 2021
of centrifugal chillers
to February 2022
Replacement of mechanical
From November 2021
security and entry/exit
to December 2021
monitoring system
Replacement of total heatexchangers and ventilation fans From April 2022 to May 2022
for 3rd to 9th floors
Replacement of 5th floor air
From January 2022
conditioning units
to January 2022
From December 2021
Compartmentalization
to January 2022
Replacement of heat-transfer
From May 2022
pipe of cooling water system
to May 2022

Estimated construction cost
(Millions of yen)
Payment for Total amount
Total amountthe period
paid(2) Capital Expenditure during the 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.

23

–

–

22

–

–

21

–

–

A-PLACE Ebisu Minami(Shibuya, Tokyo)

Large-scale repair work (First period
and Second period)

From December 2020
to August 2021

298

18

–

–

icot Nakamozu(Sakai, Osaka)

Large-scale repair work (SCBuilding)

From April 2021
to October 2021

197

17

–

–

Luogo Shiodome(Minato, Tokyo)

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

17

–

–

Shiodome Building(Minato, Tokyo)

Installation of LED lighting (Second
period)From April 2021
to August 2021

26
(Note)

16––

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 parksystem (drive section)

From August 2021
to September 2021

10

A-FLAG SHIBUYA
13––(Shibuya, Tokyo)
DECKS Tokyo Beach
13––(Minato, Tokyo)(Note)EDGE Shinsaibashi
13––(Osaka, Osaka)
Tokyu Plaza Omotesando
Renovation work for roof deck From May 2022
11––
Harajuku(Third period)to May 2022
(Note)(Shibuya, Tokyo)
A-PLACE Bashamichi
Replacement of automated fire From February 2022
11––
(Yokohama, Kanagawa)alarm system
to May 2022
(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 the Investment Corporation’s co-ownership beneficial interests in real estate
trust (49%, 51%, 35% and 75%, respectively).

Name of real property (Location)

Purpose

PeriodConstruction cost
(Millions of yen)

122

Other

122

Total

810

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

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

18
36

37

5. Expenses and Liabilities(2) Borrowings

The status of borrowings from financial institutions as of November 30, 2021 is as follows:(1) Details of Expenses Related to Asset Management, etc.
Item(a) Asset management fees (Note)(b) Asset custody fees

19th period(From December 1, 2020
to May 31, 2021)(Thousands of yen)
20th period(From June 1, 2021
to November 30, 2021)

1,104,682

1,135,604

14,884

15,281(c) Administrative service fees

37,01539,054(d) Directors’ compensation

3,300

3,300

(e) Other operating expenses

84,835

143,153

Total

1,244,717

1,336,393(Note) Asset management fees contain acquisition fees that were included in the book value of acquired properties (20th fiscal period:¥251,500
thousand)Category
Lender

Draw
down
date

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
January
10, 2019
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJanuaryJapan Inc.
10, 2019
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
January 5,
2018
Sumitomo Mitsui
Banking Corporation
Development Bank ofLong- Japan Inc.
term
Sumitomo Mitsui Trustloans Bank, Limited
payablMUFG Bank, Ltd. (Notee(Note 6)2)
Mizuho Bank, Ltd.
January 9,
2015
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

January
10, 2020
January
10, 2020(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

3,920,000—

3,920,000
1,970,000—
0.20981%—

July 12,2021(Note 3)

Unsecured,
non-guaranteed

1,970,000—

1,970,000— 0.36607%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

December28, 2021(Note 3)

Unsecured,
non-guaranteed

BeginningbalanceEndingbalance

320,000

320,000

640,000
320,000
160,000

640,000
320,000 0.41931%
160,000

160,000

160,000

840,000

840,000 0.73690%

840,000

840,000 0.73690%

840,000

840,000 0.73690%

840,000

840,000 0.73690%

420,000

420,000 0.73690%

420,000

420,000 0.73690%

January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,2022

1,420,000

1,420,000

1,420,000
720,000

1,420,000
January 11,0.22365%2022
720,000

720,000

720,000

720,000

720,000 0.31571%

January 11,2022(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

20
38

39

Category
LenderMizuho Trust &Banking Co.,LTD.
Shinkin Central Bank
Tokio Marine &Nichido Fire Insurance
Co LtdThe 77 Bank, Ltd.

Draw
down
date
March
31, 2015

March
31, 2017

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.

2,000,000

500,000

500,000

400,000

400,000

400,000

400,000

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

1,500,000 0.94688%

March 31,2022
June 15,2022

1,500,000 0.94688%

June 15,2022

1,500,000 0.94688%

June 15,2022

1,500,000
200,000

1,500,000
June 15,2015

Endingbalance2,000,000

1,500,000

MUFG Bank, Ltd.
Longtermloanspayable(Note
2)

Beginningbalance

1,500,000(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

1,500,000 0.94688%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

200,000

Sumitomo Mitsui
Banking Corporation

100,000

100,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000

100,000 0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Sumitomo Mitsui Trust
Bank, Limited

1,560,000

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

200,000

December 16,
2015

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

June 13,2018

200,000

1,560,000

1,560,000

1,560,000

1,560,000

1,560,000

160,000

160,000

160,000

160,000

0.44835%

June 15,2022(Note 4)

Unsecured,
non-guaranteed

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

Draw
down
date

January 9,
2019

September 30,
2015

BeginningbalanceMaturitydate

Use offunds

Remarks

0.38236%January10,2023(Note 4)

Unsecured,
non-guaranteed

0.61330%(Note 5)0.61330%
1,250,000(Note 5)0.61330%
1,250,000(Note 5)
1,250,000 0.61330%(Note 5)

March 30,
2023
March 30,
2023
March 30,
2023
March 30,2023

620,000

620,000

620,000
620,000

620,000
620,000

320,000

320,000

320,000

320,000

1,250,000

1,250,000

1,250,000
1,250,000

MUFG Bank, Ltd.

1,250,000

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Long- Mizuho Bank, Ltd.
term Sumitomo Mitsuiloans Banking Corporation
payabl Development Bank ofeJapan Inc.
(Note Sumitomo Mitsui Trust
2)
Bank, Limited
MUFG Bank, Ltd. (Note6)

750,000

750,000

750,000
750,000
375,000

750,000
750,000 0.44804%
375,000

375,000

375,000

Mizuho Bank, Ltd.

March 30,
2018

October 6,
2016

June 15,2015

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Taiyo Life Insurance
Company
Mitsui Sumitomo
Insurance Company,
LimitedResona Bank, Limited.
The Gunma Bank, Ltd.

800,000

800,000

1,600,000
800,000

1,600,000
800,000

400,000

400,000

400,000

December16, 2015
June 13,2017
September
10, 2021
March 31,2017
March 31,2020
March 31,2020

0.38472%(Note 4)(Note 4)

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

April 6,2023

(Note 3)

Unsecured,
non-guaranteed(Note 3)June 15,2023(Note 4)

Unsecured,
non-guaranteed

0.21198%

September
10, 2023(Note 3)

Unsecured,
non-guaranteed

0.35998%

September
29, 2023(Note 4)

Unsecured,
non-guaranteed

1,500,000

1,500,000 1.06316%

1,500,000

1,500,000 1.06316%

1,500,000

1,500,000 1.06316%

625,000

625,000 0.75387%

2,500,000
1,250,000(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

1,500,000 1.06316%

625,000(Note 4)400,000

1,500,000

1,250,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Endingbalance

625,000 0.75387%
1,250,000

2,500,000 0.46400%
1,250,000－

1,000,000－－

1,000,000
500,000

500,000

500,000

500,000

500,000

1,500,000

1,500,000 0.19990%

500,000

500,000 0.23990%

June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023
June 15,2023

September
30, 2023
September
30, 2023(Note 4)(Note 4)(Note 4)(Note 4)(Note 3)(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

22
40

41

Category
Lender

Draw
down
date

BeginningbalanceEndingbalance

Averageinterest rate
(Note 1)

Sumitomo Mitsui Trust
Bank, Limited

1,400,000

1,400,000 0.78362%

MUFG Bank, Ltd. (Note6)

1,400,000

1,400,000 0.78362%

1,400,000

1,400,000 0.78362%

Mizuho Bank, Ltd.
MUFG Bank, Ltd.

January 12,2016

1,400,000

1,400,000 0.78362%

Sumitomo Mitsui
Banking Corporation

700,000

700,000 0.78362%

Development Bank ofJapan Inc.

700,000

700,000 0.78362%

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Long- Resona Bank, Limited.
term The Bank of Fukuoka,
loans Ltd.
payabl Shinkin Central Bank
The Norinchukin Banke(Note Sumitomo Mitsui Trust
Bank, Limited
2)
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Nippon Life Insurance
Company

January 10,
2020

March 31,2017

December 16,
2015

June 13, 2016
June 13,2016

September 21,
2016

March 31,2021

1,420,000

1,420,000

1,420,000
720,000

1,420,000
720,000

720,000

720,000

720,000

720,000

2,000,000

2,000,000

1,500,000

1,500,000

1,000,000

1,000,000

500,000
500,000

500,000
500,000

0.34459%

0.41380%

1,200,000

1,200,000 0.85377%

1,200,000

1,200,000 0.85377%

1,200,000

1,200,000 0.85377%

1,200,000

1,200,000 0.85377%

600,000

600,000 0.85377%

600,000

600,000 0.85377%

1,500,000
3,000,000
1,500,000

1,500,000

0.33150%
3,000,000 (Note 5)
1,500,000

1,500,000

1,500,000

3,000,000
1,500,000

3,000,000
1,500,000

0.36900%(Note 5)1,200,000

1,200,000

2,400,000
1,200,000

2,400,000
1,200,000 0.54094%
600,000

600,000
600,000

600,000

500,000

500,000 0.25000%(Unit: Thousands of yen)
Maturity
date
January12,2024January12,2024January12,2024January12,2024January12,2024January12,2024January
12,2024

March 29,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
December13, 2024

Use offunds

Remarks(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed(Note 3)(Note 4)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 4)(Note 4)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

March 21,2025

(Note 3)

Unsecured,
non-guaranteed

March 31,2025

(Note 4)

Unsecured,
non-guaranteed

Category
LenderSumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
Shinkin Central Bank
The Norinchukin Bank
THE NISHI-NIPPONCITY BANK, LTD.
The Bank of Kyoto,Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Long- Development Bank ofterm Japan Inc.
loans Mizuho Trust &payable Banking Co.,LTD.
(Note 2) Shinkin Central Bank
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
The 77 Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co.,LTD.
The Norinchukin Bank

Draw
down
date

March 16,2017

March 16,2018

March 30,
2018

August 29,
2019

September 21,
2016

December 13,
2016

March 7, 2019

June 13, 2017
June 28, 2019

BeginningbalanceEndingbalance1,800,000

1,800,000

3,600,000
1,800,000

3,600,000
1,800,000

900,000

900,000

900,000

900,000

440,000

440,000

440,000

440,000

440,000

440,000

Maturitydate

Use offunds

Remarks

0.70169%

September
16, 2025(Note 3)

Unsecured,
non-guaranteed

September
16, 2025(Note 4)

Unsecured,
non-guaranteed

0.58630%

September
16, 2025(Note 4)

Unsecured,
non-guaranteed

0.09313%

February 27,
2026(Note 4)

Unsecured,
non-guaranteed

0.61942%

March 19,2026

(Note 3)

Unsecured,
non-guaranteed

June 12,2026(Note 4)

Unsecured,
non-guaranteed

September
7,2026(Note 4)

Unsecured,
non-guaranteed

December
14, 2026(Note 4)

Unsecured,
non-guaranteed

December28, 2026(Note 4)

Unsecured,
non-guaranteed

440,000
440,000

440,000 0.46453%
440,000

500,000

500,000

300,000

300,000

500,000

500,000

500,000
500,000

500,000
500,000

250,000

250,000

250,000

250,000

1,500,000

1,500,000

1,500,000

1,500,000

2,100,000

2,100,000

4,200,000
2,100,000

4,200,000
2,100,000

1,050,000

1,050,000

1,050,000

1,050,000

6,000,000

6,000,000 0.69796%

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000

1,100,000
600,000

1,100,000
600,000

1,750,000

1,750,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)0.35765%

3,500,000
1,750,000

3,500,000 0.71015%
1,750,000

1,200,000

1,200,000

1,200,000

1,200,000

0.23004%

24
42

43

Category
LenderSumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Long- Mizuho Bank, Ltd.
term Sumitomo Mitsuiloans Banking Corporation
payable Development Bank of(Note 2) Japan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

Draw
down
date

January 9, 2018

January 10,
2020

June 13, 2018

January 5, 2018

April 19, 2019

April 19, 2019
March 31, 2020

January 10,
2019
January 10,
2019

May 31, 2019

BeginningbalanceEndingbalance

780,000

780,000

1,560,000
780,000

1,560,000
780,000

390,000

390,000

390,000

390,000

950,000

950,000

950,000
950,000

950,000
950,000

475,000

475,000

475,000

475,000

2,200,000

2,200,000

2,200,000
2,200,000

2,200,000
2,200,000

200,000

200,000

200,000

200,000

320,000

320,000

640,000
320,000

640,000
320,000

160,000

160,000

160,000

160,000

Averageinterest rate
(Note 1)0.70698%

0.43349%

0.73360%

0.74869%

1,000,000

1,000,000

1,000,000
1,000,000

1,000,000 0.54375%
1,000,000 (Note 5)

500,000

500,000

500,000

500,000 0.58821%(Unit: Thousands of yen)
Maturity
date

January 9,
2027

January 12,2027

June 13,2027

July 5,
2027

July 5,2027

Use offunds(Note 4)(Note 4)(Note 4)(Note 3)(Note 4)

Remarks

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

3,210,000

3,210,000

3,210,000
1,610,000

3,210,000 0.55800%
1,610,000 (Note 5)

January 11,2028(Note 3)

Unsecured,
non-guaranteed

1,610,000

1,610,000

1,610,000

1,610,000 0.65264%

January 11,2028(Note 3)

Unsecured,
non-guaranteed

1,000,000

1,000,000

500,000

500,000

1,165,000

1,165,000

1,165,000
590,000

1,165,000
590,000

590,000

590,000

590,000

590,000

0.56127%

May 31,
2028(Note 4)

Unsecured,
non-guaranteed(Unit: Thousands of yen)
Category
LenderSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
The Bank of Fukuoka,
Ltd.
The 77 Bank, Ltd.
THE NISHI-NIPPONCITY BANK, LTD.
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo MitsuiLong- Banking Corporation
term Development Bank ofloans Japan Inc.
payable Sumitomo Mitsui Trust(Note 2) Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Total

Draw
down
date

July 9, 2019

January 12,
2021

June 13, 2019

July 12,2021

September 10,
2021

December
21,2020

January 12,
2021

July 12,2021

September 10,
2021

BeginningbalanceEndingbalance

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

July 10, 2028

(Note 4)

Unsecured,
non-guaranteed

0.27935%

July 12, 2028

(Note 4)

Unsecured,
non-guaranteed

December
13,2028(Note 4)

Unsecured,
non-guaranteed

July 12,2029(Note 4)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

December
21,2029(Note 4)

Unsecured,
non-guaranteed

0.45882%January 12,2030(Note 4)

Unsecured,
non-guaranteed

0.42436%

July 12,2030(Note 4)

Unsecured,
non-guaranteed

0.46690%

September 10,2030(Note 3)

Unsecured,
non-guaranteed

420,000

420,000

420,000
420,000

420,000
420,000 0.49281%
220,000

220,000
220,000

220,000

1,500,000

1,500,000

1,500,000

1,500,000

1,000,000

1,000,000

1,000,000

1,000,000

6,000,000

6,000,000 0.56511%—

1,200,000——

1,200,000
600,000—

600,000

0.36806%—

600,000—

1,400,000——

1,400,000
700,000 0.40809% September 10,
2029
700,000——

700,000

1,320,000

1,320,000

1,320,000
1,320,000

1,320,000
1,320,000 0.45403%
670,000

670,000
670,000

670,000

1,670,000

1,670,000

1,670,000
1,670,000

1,670,000
1,670,000

845,000

845,000

845,000

845,000—

2,720,000——

2,720,000
1,370,000—

1,370,000—

1,370,000—

1,400,000——

1,400,000
700,000—

700,000—

700,000

221,350,000

233,650,000(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of thishedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.

26
44

45

6. Buying and Selling during the Period

Investment Corporation Bonds
Name of bonds

Issuance date

Balance as ofNovember30, 2020(millions ofyen)

Balance as ofMay
31, 2021(millions ofyen)Interestrate(%)

The 3rd Unsecured Investment
Corporation Bond

April 21, 2015

2,000

2,000

The 4th Unsecured Investment
Corporation Bond

February 3, 2016

2,000

2,000

The 6th Unsecured Investment
Corporation Bond

February 2, 2017

1,000

1,000

The 7th Unsecured Investment
Corporation Bond

February 2, 2017

1,000

The 8th Unsecured Investment
Corporation Bond

February 13,
2018

The 9th Unsecured Investment
Corporation Bond

Maturity date

Repayment
method0.726

April 21,2025

Lump sum(Note)

0.770

February 3,
2026

Lump sum(Note)

0.480

February 2,
2027

Lump sum(Note)

1,000

0.810

February 2,
2032

Lump sum(Note)

1,000

1,000

0.160

August 12,
2022

Lump sum(Note)

February 13,
2018

1,000

1,000

1.050

February 12,
2038

Lump sum(Note)

The 10th Unsecured Investment
Corporation Bond (Green Bond)

July 9, 2019

5,000

5,000

0.220 July 9, 2024

Lump sum(Note)

The 11th Unsecured Investment
Corporation Bond (Green Bond)

November 18,
2019

4,000

4,000

0.530

November16, 2029

Lump sum(Note)

The 12th Unsecured Investment
October 21, 2020
Corporation Bond (Green Bond)

4,500

4,500

0.510

October 21,
2030

Lump sum(Note)

The 13th Unsecured Investment
Corporation Bond

February 9, 2021

1,300

1,300

0.750

February 8,
2036

Lump sum(Note)

The 14th Unsecured Investment
Corporation Bond (Green Bond)

November 16,
2021

－

3,900

0.400

November
14, 2031

Lump sum(Note)

22,80026,700Total

Use of proceeds
Repayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payableRepayment ofoutstanding loans
payable(Note) The Investment Corporation may repurchase and cancel bonds at any time after the date of payment unless otherwise specified by the Japan Securities
Depository Center, Inc.

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

Remarks

Unsecured andunguaranteed(1) Buying and Selling, etc., of Real Estate and Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets
Acquisition
Category

Unsecured andunguaranteed
Unsecured andunguaranteed

Tokyo Office
Properties

Unsecured andunguaranteed

Tokyo Office
Properties

Unsecured andunguaranteed

Tokyo Office
Properties

Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed
Unsecured andunguaranteed

Tokyo Office
Properties
Urban Retail
Properties

Asset type

Trust
beneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests
Trustbeneficiaryinterests

Property name

Disposal
Disposal
date

Disposalamount(millions ofyen)Book value(millions ofyen)

Gain (loss) on
disposal(millions ofyen)

Acquisitiondate

Acquisition price(millions of yen)

A-PLACE Tamachi
East

October 29,
2021

6,800

－

－

－

－

Meguro Tokyu
Building

September 7,
2021

16,300－－－－

Q plaza Shinjuku3chome

September 7,
2021

18,400－－－－A-PLACE Shibuya
Nampeidai

September 7,
2021

8,800

－

－

－

－

－

－

11,800

11,540250－

50,30011,800

11,540250

Tokyu Plaza
Akasaka(Note 2) (Note 3)

Total(Note1)

October
29,
2021－(Note1) The acquisition and disposal amount represent the trading value of trust beneficiary rights stipulated in beneficiary right sale agreement for the asset(excluding consumption tax, local consumption tax, and expenses such as trading commissions).
(Note2) The disposition amount of Tokyu Plaza Akasaka represents figure equivalent to the percentage of the Investment Corporation’s co-ownership interest(50%).
(Note3) Regarding the disposal of Tokyu Plaza Akasaka, in addition to the above, there were “Other disposal expenses” of ¥8 million and the gain (loss) on
disposal reflects such expenses.

(2) Buying and Selling, etc. of Other Assets
Not applicable. In addition, the Investment Corporation’s assets other than the above-mentioned real estate and assetbacked securities are mostly comprised of direct bank deposits and bank deposits in trust.

(3) Survey of Prices, etc. of Specified Assets
1) Real Estate
Acquisition /DisposalAcquisition
Acquisition
Acquisition
Acquisition
Disposal

Property name
A-PLACE Tamachi
East
Meguro Tokyu
Building
Q plaza Shinjuku3chome
A-PLACE Shibuya
Nampeidai
Tokyu Plaza
Akasaka (Note 2)

Date ofacquisition /disposalAcquisition /Disposal amount(millions of yen)
(Note 1)

Appraisal value(millions of yen)

Name of appraiser

Date ofappraisal

October 29,
2021

6,800

7,130

Japan Valuers Co., Ltd.

March 31,2021

September 10,
2021

16,30016,700Japan Real Estate Institute

July 1, 2021

September 10,
2021

18,40019,200Japan Valuers Co., Ltd.

July 1, 2021

September 10,
2021

8,800

9,020

Japan Valuers Co., Ltd.

July 1, 2021

October 29,
2021

11,80010,800

Tanizawa Sogo Appraisal
Co., Ltd.

March 31,2021

(Note 1) The acquisition and disposal amount represent the trading value of trust beneficiary rights stipulated in beneficiary right sale agreement for the asset(excluding consumption tax, local consumption tax, and expenses such as trading commissions).
(Note 2) The disposition amount of Tokyu Plaza Akasaka represents figure equivalent to the percentage of the Investment Corporation’s co-ownership interest(50%).
(Note 3) The appraisal of the above-mentioned real estate was conducted by applying “Real Estate Appraisal Standard Section 3: Appraisals Regarding Prices ofReal Estate for Securitization.”2) Others
Not applicable

28
46

47

(4) Transactions between Interested Parties
Category
Total amount
Details of transactions between interested parties

7. Accounting Status

Purchase and sale amounts
Purchase amounts
Sale amounts¥50,300 million¥11,800 million(1) Assets, Liabilities, Principal, and Profit and Loss
Please refer to “II. Balance Sheets,” “III. Statements of Operations,” “IV. Statements of Changes in Unitholders’ Equity,” “V.
Statements of Cash Distributions” and “VII. Notes to Financial Statements.”

CANAL INVESTMENT¥6,800 million (100.0%)－ million (－%)

PARK VIEW INVESTMENT Y.K.

¥16,300 million (100.0%)－ million (－%)

Tokyu Land Corporation¥27,200 million (100.0%)－ million (－%)

－million (－%)

¥11,800 million (100.0%)¥50,300 million (100.0%)¥11,800 million (100.0%)

Exsim Limited Liability Company
Total

Commissions Paid
Category

Total amount (A)(thousands of yen)

451,779

Building management fee

785,886

Other management operation
expenses

Other lease business expenses

Not applicable(3) Changes in the Evaluation Method of Real Estate, etc. and Infrastructure Assets, etc.

Property management fee

Construction management fee(2) Changes in the Calculation Method of Depreciation Expenses

9,206

Breakdown of transactions with interested parties
Paid toTokyu Community Corp.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation
Tokyu Housing Leace Corporation
Tokyu Community Corp.
Tokyu Community Corp.
Tokyu Land SC Management
Corporation
Tokyu Land Corporation(B) / (A)Amount (B)(thousands of yen)
176,821

Not applicable

(%)
39.1

130,21928.8

101,527
3,792
660,569
5,449

22.5
0.8
84.1
59.2

1,606

17.4

627

6.8

60,995

Tokyu Community Corp.

8,426

13.8

88,287

27.1

3,102

1.0

326,250

Tokyu Community Corp.
Tokyu Land SC Management
Corporation
TOKYU LIVABLE STAFF,INC.
Ishikatsu Exterior Inc
HANDS LAB INC.
Tokyu Re・design Corporation

2,203
798
760
640

0.7
0.2
0.2
0.2

(Note 1) The term “Interested parties” refers to interested parties of Asset Management Companies as stipulated by Article 201, Paragraph 1 of theInvestment Trust Act, Article 123 of the Enforcement Ordinances of the Act on Investment Trust and Investment Corporation of Japanand Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Reports of Investment Trusts and Investment
Corporations, issued by The Investment Trusts Association, Japan.
(Note 2) Other than commission paid as referred to above, construction works ordered to interested parties are as follows:
Tokyu Community Corp.
¥110,062 thousand
Tokyu Re・design Corporation¥17,736 thousand
Tokyu Land SC Management Corporation¥9,907 thousand(5) Transactions between the Asset Manager in Other Businesses of the Asset Manager
No relevant matter exists under this subject as the asset manager (TLC REIT Management Inc.) does not engage in any
other business such as the first- or second-type financial instruments businesses under the Financial Instruments andExchange Act, the building lots and buildings transaction business, or the real estate joint enterprise.

8. Other(1) Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company
Not applicable(2) Announcements
Here is an outline of major agreement that the Board of Directors of the Investment Corporation approved to conclude andmodify for the fiscal period under review.
Date of approval

Item

Conclusion of an
August 24, 2021 underwriting agreement for
new investment units

September 24,
2021

Comprehensive approval ofissuance of investment
corporation bonds andappointment ofadministrators

Summary
We entrusted the underwriters (Note) with general administration related to the issuance of
new investment units and the secondary offering of investment units, which was approvedby the Board of Directors of the Investment Corporation on the same day.
The Board of Directors of the Investment Corporation made a comprehensive resolution
regarding the issuance of investment corporation bonds (total amount: ¥50 billion or less;issuance period: October 4, 2021 to October 3, 2022); approved the appointment ofcandidate companies for the entrustment of affairs and administrative works, such as
issuing agent, financial agent, and paying agent regarding the placing of investment
corporation bonds; and entrusted the decision of other necessary matters to the Executive
Director.

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

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

30
48

49

Financial Statements
II. Balance Sheets
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(Unit: Thousands of yen)

(Unit: Thousands of yen)
As of May 31, 2021

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

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

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

1
50

2

51

III. Statements of Operations(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 sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fee
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
Borrowing related expenses
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)*1, *3*1, *3*1

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

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

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

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

Ⅳ. Statements of Changes in Unitholders’ Equity
Previous fiscal period (From December 1, 2020 to May 31, 2021)(Unit: Thousands of yen)
Unitholders’ equity

Balance at beginningof period

Unitholders’ capital

Surplus

Deduction from unitholders’capital
Total
Unitholders’
Unitholders’ Allowance fordeduction
capital, net
capitaltemporaryfromdifference
unitholders’adjustments
capitalUnappropriatedretainedearnings
Total surplus(undisposed
loss)

248,370,846(3,084)(3,084)

248,367,761

Total
unitholders’equity7,366,549

7,366,549

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

Changes during period
Dividends of surplus
Distributions inexcess of earnings
from allowance fortemporarydifference
adjustments(25,450)(25,450)(25,450)

ProfitNet changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
periodBalance at beginningof period(25,450)

7,249,804

7,249,804

7,249,804–(25,450)(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(Unit: Thousands of yen)
Valuation and translation
adjustments
Total
Total net
Deferred gains valuation
assetsor losses onandhedgestranslation
adjustments(28,584)(28,584)

255,705,726

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

Distributions inexcess of earnings
from allowance fortemporarydifference
adjustments(25,450)

ProfitNet changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
period3
52

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

255,581,592

453

V. Statements of Cash Distributions

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

Balance at beginningof period

Surplus

Deduction from unitholders’capital
Total
Unitholders’
Unitholders’ Allowance fordeduction
capital, net
capitaltemporaryfromdifference
unitholders’adjustments
capital248,370,846(28,535)(28,535)

248,342,311

I Unappropriated retained earnings

Unappropriatedretainedearnings
Total surplus(undisposed
loss)
7,278,928

7,278,928

Total
unitholders’equity255,621,239

Changes during period
Issuance of new
investment units

22,592,710

Dividends of surplus(7,238,708)(11,568)(11,568)(11,568)

ProfitBalance at beginningof period(7,238,708)(7,238,708)

7,753,375

7,753,375¥11,568,360¥–

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

Of which, reversal of allowance fortemporary difference adjustments¥–¥39,237,355¥7,250,276,824¥7,700,977,440

Of which, allowance for temporary
difference adjustments[Cash distributions per unit]
Of which, distributions of earnings

7,753,375[Of which, cash distributions in excess ofearnings per unit
(Related to allowance for temporary
difference adjustments)]
V Earnings carried forward(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(Unit: Thousands of yen)
Valuation and translation
adjustments
Total
Total net
Deferred gains valuation
assetsor losses onandhedgestranslation
adjustments(39,646)(39,646)

255,581,592

Calculation method for distributions

Changes during period
Issuance of new
investment units

22,592,710

Dividends of surplus(7,238,708)

Distributions inexcess of earnings
from allowance fortemporarydifference
adjustments(11,568)

ProfitNet changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
period¥–(11,568)(11,568)

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

23,135,045

(409)

(409)

278,716,638

Amount¥11,568,360

Additional amount of cash distributions
in excess of earnings

Of which, allowance for temporary
difference adjustments

22,592,710

Amount¥7,793,594,694

II[Of which, distributions of earnings per unit]

Distributions inexcess of earnings
from allowance fortemporarydifference
adjustments
Net changes in
items other thanunitholders’ equity
Total changes during
periodBalance at end of
period22,592,710

Current fiscal period(From June 1, 2021
to November 30, 2021)¥7,278,928,158

IV Distributions

22,592,710

Previous fiscal period(From December 1, 2020
to May 31, 2021)[¥9,401][¥9,360]¥7,238,708,464¥7,700,977,440[¥9,386][¥9,360]¥11,568,360

¥–

[¥15]

[¥–]

¥40,219,694¥53,379,899

Based on the distribution policy set forth in
Article 35, Paragraph 1 of the Articles ofIncorporation of the Investment Corporation,
distributions shall be limited to the amount of
net profit in excess of an amount equivalent toninety hundredths (90/100) of distributableprofits, as stipulated in Article 67-15,
Paragraph 1 of the Act on Special Measures
Concerning Taxation. In consideration of thispolicy, we will pay distributions of profits of¥7,238,708,464, which is the amount of the
net profit defined in Article 136, Paragraph 1of the Act on Investment Trusts andInvestment Corporations, except a fraction ofless than ¥1 of distributions per investment
unit.
Based on the policy on distribution of cash
exceeding net profit set forth in Article 35,
Paragraph 2 of the Articles of Incorporation of
the Investment Corporation, distributions inexcess of earnings shall be made in an amountdecided by the Investment Corporation andequivalent to a deduction in net assets (refers
to stipulations of Article 2, Paragraph 2, Item
30 (b) of the Regulations on Accountings ofInvestment Corporations), taking into accounteffects of the deduction in net assets on
distribution amounts. During the fiscal period
under review, the Investment Corporation has
accordingly decided to distribute ¥11,568,360
as distributions related to allowance fortemporary 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 30of the Regulations on Accountings ofInvestment Corporations) from deferred 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.

Based on the distribution policy set forth in
Article 35, Paragraph 1 of the Articles ofIncorporation of the Investment Corporation,
distributions shall be limited to the amount of
net profit in excess of an amount equivalent toninety hundredths (90/100) of distributableprofits, as stipulated in Article 67-15, Paragraph
1 of the Act on Special Measures Concerning
Taxation. In consideration of this policy, internal
reserve of ¥53,379,899 was provided forstabilization of future distributions in view of¥250,323,186 of gain on sale of real estate
properties arising, and we will pay distributionsof profits of ¥7,700,977,440, which is the entire
amount of the unappropriated retained earnings
less the amount equivalent to the internal reserveand the reversal of allowance for temporary
difference adjustments (refers to stipulations ofArticle 2, Paragraph 2, Item 30 of theRegulations on Accountings of Investment
Corporations), for the fiscal period under review.

6
5

54

55

VI. Statements 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
Borrowing related expenses
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*1Current 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*1VII. Notes to Financial Statements
Notes on Assumption of Going Concern
Not applicable
Notes on Important Accounting Policies
1. Method of depreciationof non-current assets

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 to15 years(2) Intangible assets
Internal use software is amortized by the straight-line method over the expected usefullife (5 years).
(3) Long-term prepaid expenses
The straight-line method is used.

2. Accounting method fordeferred assets(1)

3. Accounting for income
and expenses(1)

Accounting for income
Details of major performance obligations and typical timing of satisfying theperformance obligations (timing when revenue is recognized) with regard to theInvestment Corporation’s revenue from contracts with customers are as follows.
i) Sale of real estate properties
For sale of real estate properties, revenue is recorded at the time when the buyer, acustomer, obtains control of the real estate property, etc., by fulfilling 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 the real estate property, etc.
and any accompanying agreement. Of utilities income, for such income for which theInvestment Corporation is considered to be an agent, the net amount of the amountreceived 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, theamount of tax levied corresponding to the calculation period is recorded as expenses
related to leasing business.
The settlement money for property tax that is paid to the disposing entity for acquisitionof real properties (so-called “amount equivalent to property tax”) is not recorded as
expenses related to leasing business but included in the acquisition costs for the related
properties. The amount equivalent to property tax included in acquisition cost for
properties for the current fiscal period is ¥56,701 thousand.

4. Method of hedge
accounting

(1)

(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.

Method of hedge accounting
Deferred hedge accounting is applied. For interest rate swaps that satisfy therequirements for special treatment, special treatment is applied.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swaps transactions
Hedged items: Long-term 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 ofIncorporation of the Investment Corporation.
(4) Method of assessing hedge effectiveness
The Investment Corporation assesses hedge effectiveness by comparing the cumulative
total changes in the cash flows of the hedged items with those of the hedging
instruments, and then verifying the ratio of the changes in both amounts. However,hedge effectiveness is deemed to have been ensured with respect to interest rate swaps
that satisfy the requirements for special treatment.

5. Scope of cash (cash and Cash and cash equivalents include cash on hand, cash in trust, demand deposits, deposits incash equivalents) in the trust, and highly liquid short-term investments that are readily convertible, bear little risk instatements of cash flows price fluctuations, and mature within three months of the date of acquisition.

7
56

8
57

Notes to Balance Sheets
1. Commitment Line Contracts

6. Other important matters (1) Accounting method for beneficiary interests in trust with real estate, etc. as trust asset
related to the preparation
With regard to beneficiary interests in trust with real estate, etc. in holding as trust asset,of financial statements
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 sheets andstatements of operations.
Of the trust assets accounted for under the respective account items, the following itemswith significance are separately indicated on the balance sheets.
i) Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; construction in progress in trust; andland 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 tax-exclusion
method. Consumption taxes unqualified for deduction for tax purposes for non-current
assets, etc. are included in acquisition cost for each asset.

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 commitment line
contracts
Net balance

As of November 30, 2021
¥50,000 thousand*3. Allowance for Temporary Difference Adjustments

Additional information

Previous fiscal period (From December 1, 2020 to May 31, 2021)
1.Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision
Related assets,
etc.

Reason forprovision

Deferred
gains or losses
on hedges

Recognition ofloss onvaluation ofinterest rate
swaps

Initialamount28,535(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
beginning of provision for reversal forend ofreversal
periodperiodperiodperiod3,084

25,450–28,535–2.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)

Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments

1.Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision

Previous fiscal period (From December 1, 2020 to May 31, 2021)

Recognition of loss on valuation ofinterest rate swaps–¥21,000,000 thousand¥50,000 thousand

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 Recognition” (ASBJ Guidance No. 30,
March 26, 2021) from the beginning of the fiscal period under review, and it has recognized revenue at the time the control ofpromised goods or services is transferred to 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.

Deferred gains or losses on hedges–¥21,000,000 thousand

As of May 31, 2021

2. Application of Accounting Standard for Revenue Recognition, Etc.

Reason for provision¥21,000,000 thousand*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations

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 accordancewith the transitional measures provided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, andparagraph 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.

Related assets, etc.

¥21,000,000 thousand

Loan balance

Notes on Changes in Accounting Policies
1. Application of Accounting Standard for Fair Value Measurement, Etc.

1.Reason for Provision, Related Assets, etc. and Amount of Provision

As of November 30, 2021

(Unit: Thousands of yen)
Allowance for temporary
difference adjustments
11,5682.Specific Method of Reversal
Deferred gains or losses on hedges

Related assets,
etc.

Reason forprovision

Deferred
gains or losses
on hedges

Recognition ofloss onvaluation ofinterest rate
swaps

Initialamount40,103(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
Reason for
beginning of provision for reversal forend ofreversal
periodperiodperiodperiod28,535

11,568–40,103–

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.

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 Reversal, Related Assets, etc. and Amount of Provision
Related assets, etc.
Deferred gains or losses on hedges

Reason for provision
Elimination of loss on valuation ofinterest rate swaps(Unit: Thousands of yen)
Allowance for temporary
difference adjustments(39,237)

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.

9
58

10
59

Notes to Statements of Operations*1. Breakdown of Profit (Loss) from Real Estate Leasing Business(Unit: Thousands of yen)Previous fiscal period(From December 1, 2020
to May 31, 2021)
A.

Previous fiscal period(From December 1, 2020
to May 31, 2021)

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

Rent

12,674,111

13,170,192

Common service fees

712,876

706,032

Parking lot fees

281,003

Other rent revenue

97,361Other leasing business revenue
Total real estate leasing business revenues

Total number of authorized investment units
Total number of investment units issued

307,780
13,765,352

99,55014,283,556

950,325

1,112,460

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

13,031

13,324

Insurance
Repair and maintenance expenses
Depreciation

C.

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

Real estate leasing business revenues
Leasing business revenue

B.

Notes to Statements of Changes in Unitholders’ Equity*1. Total number of authorized investment units and total number of investment units issued are as follows:

384,062276,218

1,352,155

1,374,701

Loss on retirement of non-current assets

7,860

Other expenses related to leasing business

282,797

326,250

4,000,000 units

771,224 units

822,754 units

Notes to Statements of Cash Flows*1. Reconciliation between Cash and Cash Equivalents at End of Period and the Amount on the Balance Sheets
Previous fiscal period(From December 1, 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

Notes to Lease Rental Revenues
The Investment Corporation leases properties on which rental revenues are earned. As of May 31, 2021 and November 30, 2021,
future lease revenues under non-cancelable operating leases are summarized as follows:
As of May 31, 2021

5,229
5,369,825

4,000,000 units

5,551,549

Total real estate leasing business expenses

5,369,825

5,551,549

Profit (loss) from real estate leasing business (A – B)

9,345,853

9,844,466

As of November 30, 2021

Due within one year

¥15,597,084 thousand¥16,071,889 thousand

Due after one year

¥108,742,775 thousand¥116,746,698 thousand

Total¥124,339,859 thousand¥132,818,588 thousand*2. Breakdown of Gain (Loss) on Sales 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)
Income from sales of real estate properties
Costs of sales of real estate properties
Other costs of sales

11,800,000
11,540,850
8,826

Gain on sales of real estate properties

250,323*3. Transactions with Major Unitholders(Unit: Thousands of yen)Previous fiscal period(From December 1, 2020
to May 31, 2021)

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

Operating transactions
Operating revenue(Note)

1,863,166

974,811

Due 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 major unitholder. Consequently, the transaction
amount stated above is for the amount until the time immediately preceding when that company ceased to qualify as amajor unitholder.

11
60

12
61

(Note 1)

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 issuing investment units forthe 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 byenhancing its capital adequacy and maintaining conservative interest-bearing debt, looking for attributes such as extended
borrowing periods for interest-bearing debt, fixed interest rates, and diversified due dates to ensure financial stability andavoid the risk of interest-rate hikes.

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.
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 theinsolvency 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 and liquidity, etc. into account and carefully considering thefinancial environment and our cash management.
Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate and refinancing of existing
borrowings. Leasehold and guarantee deposits received are deposits provided by tenants. 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.

These fair values are determined by discounting the total of principal and interest at a rate taking into account theremaining period and credit risk of the said investment corporation bonds.
These fair values are determined by discounting the total of principal and interest at the rate assumed when a new loan ismade corresponding to the remaining period. The book value is used as the fair value of those borrowings with floatinginterest rate, given that the fair value is almost the same as the book value, as their interest rates are reviewed on a shortterm interval to reflect market interest rates (however, for long-term 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 and interest, which are treated in combination with the said interest rate swap, at a reasonable rate estimated fora similar new loan).
Derivative transactions
Please refer to “Notes on Derivative Transactions”(Note 2)

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the Account Closing Date
(May 31, 2021)(Unit: Thousands of yen)
Within1 yearInvestment corporation bonds
Long-term borrowings
Total

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)(1) Current portion of investment corporation bonds, (3) Investment corporation bonds(2) Current portion of long-term borrowings, (4) Long-term borrowings

We also invest temporary excess funds in deposits in general, taking safety and liquidity, etc. into account and carefully
considering the interest-rate environment and our cash management.

(2)

Measurement Methods for Fair Values of Financial Instruments

Liabilities

2–3 years

3–4 years

4–5 yearsOver
5 years–

1,000,000–

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)

Supplemental Remarks on the Fair Value of Financial Instruments(Unit: Thousands of yen)

As certain assumptions are made in calculating the fair value of financial instruments, if different assumptions are used, thesevalues could vary. Furthermore, the contract amounts related to derivative transactions, etc. stated in “Derivative transactions”
on page 27 should not be considered indicative of the market risk associated with derivative transactions.

Within1 year

1–2 years

2–3 years

3–4 years

4–5 yearsOver
5 years

2. Matters Regarding Fair Values of Financial Instruments

Investment corporation bonds

1,000,000–

5,000,000

2,000,000

2,000,000

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 andin a short time and therefore the fair value approximates the book value. A note on “leasehold and guarantee deposits received intrust” is omitted because it is immaterial.
(Unit: Thousands of yen)

Long-term borrowings

26,100,000

32,250,000

29,500,000

26,500,000

24,500,000

94,800,000

27,100,000

32,250,000

34,500,000

28,500,000

26,500,000

111,500,000

Carrying amount

Fair value

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

244,150,000

246,331,994

2,181,994(39,646)(39,646)–

Derivative transactions(As of November 30, 2021)
Not applicable.

(Unit: Thousands of yen)
Fair value

1,000,000

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

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

260,350,000

262,593,735

2,243,735

(409)

(409)

–

Derivative transactions

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 the account closing dateby method of hedge accounting.

(Unit: Thousands of yen)

Difference(1) Current portion of investment
corporation bonds

Total liabilities

Notes on Derivative Transactions(As of May 31, 2021)
Not applicable.

Carrying amounts, fair values, and the differences between the two values as of November 30, 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.
Carrying amount

Total

16,700,000

1. Derivative Transaction to Which Hedge Accounting Is Not Applied

Difference(1) Current portion of long-term borrowings

Total liabilities

Hedge accounting

Deferred hedge
accounting
Special treatment forinterest rate swaps

1362

1–2 years

Type of derivativetransactions
Interest rate swaps
Receive floating Pay
fixedInterest rate swaps
Receive floating Pay
fixed

Major hedged
items

Amount of contract
Portion due
after 1 year

Fair value

Calculation method forfair value

Long-term
borrowings

12,000,000

12,000,000(39,646)

Based on prices, etc.
indicated by partner
financial institutions

Long-term
borrowings

18,140,000

18,140,000

*

–

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63

(As of November 30, 2021)
The following table shows contract amount or principal amount, etc. set forth in the contract as of the account closing dateNotes on Transactions with Related Parties
1. Parent Company and Major Corporate Unitholders
Previous fiscal period (From December 1, 2020 to May 31, 2021)

by method of hedge accounting.
(Unit: Thousands of yen)
Hedge accounting

Deferred hedge
accounting
Special treatment forinterest rate swaps

Type of derivativetransactions
Interest rate swaps
Receive floating Pay
fixedInterest rate swaps
Receive floating Pay
fixed

Major hedged
items

Amount of contract
Portion due
after 1 year

Fair value

Calculation method forfair value

Long-term
borrowings

12,000,000

12,000,000(409)

Based on prices, etc.
indicated by partner
financial institutions

Long-term
borrowings

18,140,000

18,140,000*–* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-termborrowings, a hedged item. Thus, their fair values are included in the fair value of long-term borrowings. (Please refer tothe preceding “Notes on Financial Instruments, 2. Matters Regarding Fair Values of Financial Instruments, (Note 1)
Liabilities (4)”)

Name

Address

Receipt ofleasehold andguarantee
deposits

21-1
Tokyu
Major
DogenzakaLand
unit
1-chome,
Corporatio-holder
Shibuya-ku,nTokyo¥2 thousand¥2,765 thousand¥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

Deferred gains or losses on hedges

Total deferred tax assets
Net deferred tax assets

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

31.46%

57,551

Real estatebusiness

10.52%

AttributeNameAddress

Share
Percentag
Relationshipcapital oreBusiness
investmentof voting Interlock- Businessor
ing
in capitalrightsrelationoccupation(Millionsowning officers,
ship
etc.
of yen)(owned)

Other

21-1
Tokyu
Major
DogenzakaLand
unit
1-chome,
Corporatio-holder
Shibuya-ku,nTokyo

57,551

Real estatebusiness

10.52%

As of November 30, 2021

Effective income tax rate after application of tax
effect accounting(34.23)%

0.01%

0.01%

0.01%

0.37%

None

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

34.59%(31.46)%

Operatingaccounts
1,863,166 receivable

48,685

Advances
received

196,033

Balance atTransactio
end ofnperiodAccount
Transaction
amount(Thousandtitle(Thousandssof yen)of yen)Receipt ofleasehold andguarantee
deposits

Adjustments
Distributions paid included in deductibles

None

Major
Refund ofunitholder leasehold and, and rent guarantee
anddeposits
manage- received
ment ofproperties

170,771 Leasehold
andguarantee
2,459,904
deposits
received
95,433 in trust

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

As of November 30, 2021

Deferred tax assets
Non-deductible amount for tax purposes ofenterprise tax payable

Balance atTransactio
end ofnperiodAccount
Transaction
amount(Thousandtitle(Thousandssof yen)of yen)Rentalrevenues, etc.

Notes on Deferred Tax Accounting
1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of May 31, 2021

Attribute

SharePercentag
Relationshipcapital oreBusiness
Interlockinvestmentof votingBusinessoring
in capitalrightsrelationoccupation
officers,(Millionsowningship
etc.
of yen)(owned)(Note)

2.

11,581 Leasehold
andguarantee
2,461,043
deposits
received
10,442 in trust
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 of voting rights owning (owned),transaction amount and the ending balance stated above, are for the percentage and amount as of the time immediately preceding whenthat company ceased to qualify as a related party.

Affiliates, 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.

15
64

16
65

3.

Sister companies, etc.

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

Previous fiscal period (From December 1, 2020 to May 31, 2021)

Attribute

Name

Share
Percentag
Relationshipcapital oreInterlockinvestment Business or of voting
Business
Addressing
in capital occupationrightsrelationofficers,(Millionsowningship
etc.
of yen)(owned)Transaction

Receipt ofleasehold andguarantee
deposits
Tokyu
Land SC
SubsidiarManagey of majormentunitholder
Corporation

16-3,
Dogenzaka
1-chome,
Shibuyaku, Tokyo

100

Real estate
management business

–

None

Refund ofleasehold andRent andguarantee
managedeposits
ment ofreceived
properties
Rentalrevenues, etc.

Receipt ofleasehold andguarantee
deposits

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

1,653

Real estate
management business

–

None

Refund ofleasehold andguarantee
Rent and deposits
manage- received
ment ofproperties
Rentalrevenues, etc.
Real estate
management
fee

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

Investment
management business

–

None

Asset
Asset
management
Managerfee

Transactio
Balance atn
end ofAccount
amountperiodtitle(Thousand(Thousandssof yen)of yen)16,924 Leasehold
andguarantee
6,195,007
deposits
received
61,835 in trust

3,968,534

Operatingaccounts
receivable

186,630

Advances
received

42,441

1,066,671 Leasehold
andguarantee
9,445,453
deposits
received
845,808 in trust
Operatingaccounts
5,914,339 receivable

204,877

Advances
received

38,366

Operating905,983 accounts
payable194,553

1,104,682

Accruedexpenses494,734

AttributeTransaction

Receipt ofleasehold andguarantee
deposits
Tokyu
Land SC
SubsidiarManagey of majormentunitholder
Corporation

16-3,
Dogenzaka
1-chome,
Shibuyaku, Tokyo

100

Real estate
management business

–

None

Refund ofleasehold andRent andguarantee
managedeposits
ment ofreceived
properties
Rentalrevenues, etc.

Receipt ofleasehold andguarantee
deposits

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

21-1,
Subsidiary TLC REIT Dogenzaka
of major Manage- 1-chome,unitholder ment Inc. Shibuyaku, Tokyo(Note 1)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.

Name

Share
Percentag
Relationshipcapital oreinvestment Business or of voting Interlock- Business
Addressing
in capital occupationrightsrelation(Millions
owning officers,
ship
etc.
of yen)(owned)(Note 2)
(Note 3)

4.

1,653

200

Real estate
management business

Investment
management business

–

–

None

None

Refund ofleasehold andguarantee
Rent and deposits
manage- received
ment ofproperties
Rentalrevenues, etc.

Transactio
Balance atn
end ofAccount
amountperiodtitle(Thousand(Thousandssof yen)of yen)4,597 Leasehold
andguarantee
6,162,971
deposits
received
36,633 in trust

2,051,470

Operatingaccounts
receivable

290,903

Advances
received

8,234

258,190 Leasehold
andguarantee
9,573,583
deposits
received
130,060 in trust
Operatingaccounts
3,004,802 receivable

268,057

Advances
received

16,840Real estate
management
fee

Operating412,899 accounts
payable160,612

Payment of
Asset
asset
Manager management
fee

Other
567,802 accrued
expenses

262,394

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 related parties. Consequently, the percentage of voting rights
owning (owned), transaction amount and the ending balance stated above, are for the percentage and amount as of the time
immediately preceding when each company ceased to qualify as a related party.

Directors and Major Individual Unitholders

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

17
66

18
67

Notes on Investment and Rental Properties
The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions for rental revenue.
The carrying amounts on the balance sheet, changes during the fiscal period, and fair values of investment and rental properties are
as follows.
(Unit: Thousands of yen)
Use

Previous fiscal period(From December 1, 2020
to May 31, 2021)

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

198,465,968

198,195,674

Segment Information
Segment Information for the fiscal periods ended June 1, 2021 and November 30, 2021 is as follows:
1. Operating Segment Information
Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in the property rental
business.
2.

Enterprise-wide Disclosures(1) Information about Products and Services
Disclosure is not required as revenues from external customers for the single segment is in excess of 90% of total revenues.
(2) Information about Geographic Areas
Revenues from Overseas Customers:
Disclosure is not required as revenues from external customers attributed to Japan are in excess of 90% of total revenues.
Property, plant and equipment:
Disclosure is not required as Property, plant and equipment located in Japan are in excess of 90% of total Property, plant andequipment.

3.

Information about Major Customers
Previous fiscal period (From December 1, 2020 to May 31, 2021)

Carrying amount on the balance sheets
Urban Retail
Properties

Balance at beginning of period
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

Fair value at end of period
Carrying amount on the balance sheets
Tokyo Office
Properties

Balance at beginning of period
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(241,903)(151,126)

Fair value at end of period

Name of Customer

Carrying amount on the balance sheets
Activia Account
Properties

Balance at beginning of period
Changes during period
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

Total

Fair value at end of period

5,914,339

Property rental businessTokyu Land SC Management Corporation

3,968,534

Property rental businessTokyu Land Corporation

1,863,166

Property rental business(Unit: Thousands of yen)

Revenues

Related Segment

Tokyu Community Corp.

6,119,946

Property rental businessTokyu Land SC Management Corporation

4,194,567

Property rental businessTokyu Land Corporation

2,112,992

Property rental businessNotes on Revenue Recognition
Information on disaggregation of revenue from contracts with customers

The carrying amount on the balance sheets 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 (A-PLACE 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 theprovision of depreciation worth ¥1,374,701 thousand.
The fair value at end of period is the appraisal value provided by an outside real estate appraiser.

Current fiscal period (From June 1, 2021 to November 30, 2021)(Unit: Thousands of yen)
Revenue from contracts with customers *1
Sale of real estate properties
Utilities income

The profit/loss concerning investment and rental properties for the current fiscal period is indicated under “Notes to Statements ofOperations.”

Others
Total
*1

*2

19
68

Tokyu Community Corp.

Name of Customer(Note 1)

(Note 3)

Related Segment

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

Carrying amount on the balance sheets
Balance at beginning of period(Unit: Thousands of yen)

Revenues

11,800,000

Revenues from external customers*2

250,323

879,402879,402–

14,516,614

12,679,402

15,646,339

Leasing business revenue, etc. that is subject to ASBJ Statement No. 13 “Accounting Standard for Lease Transactions” andtransfer of real estate properties, etc. that is subject to Japanese Institute of Certified Public Accountants Accounting PracticeCommittee Report No. 15 “Practical Guidelines on Accounting by Transferors for Derecognition of Real Estate Securitizedby means of Special Purpose Companies” are not subject to the Accounting Standard for Revenue Recognition, and therefore
are not included in the above amount. Major revenue from contracts with customers is income from sale of real estate
properties and utilities income.
Since income from sale of real estate properties is recorded as gain (loss) on sale of real estate properties in the statement ofincome, the amount of income from sale of real estate properties less costs of sale of real estate properties and other costs ofsale is shown.

20
69

VIII. Schedule of Financial Statements

Per Unit Information
Previous fiscal period(From December 1, 2020
to May 31, 2021)
Net assets per unit
Basic earnings per unit
(Note 1)
(Note 2)

Securities

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

1.

¥331,397¥338,760¥9,400¥9,754

2.

Profit (Thousands of yen)

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

771,224

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

Amount not attributable to common unitholders(Thousands of yen)

Average number of investment units for the period(Units)Securities Other Than Shares
Not applicable

Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (previous fiscal period 771,224 units; current fiscal period 794,871 units). Diluted earnings per unit is notstated, as there is no potential investment unit.
The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From December 1, 2020
to May 31, 2021)

SharesNot applicable

Classification

Type of derivative transactions

Over-the-counter

Interest rate swaps
Receive floating Pay fixed

Fair value(Note 2) (Note 3)

Portion due
after one year

Total

30,140,000

30,140,000(409)

30,140,000

30,140,000(409)(Note 1) The amounts of contract do not represent the market risk exposure associated with the derivative instruments.
(Note 2) The interest rate swaps which qualify for hedge accounting and meet specific criteria are not measured at fair value inthe balance sheets and the interest received or paid under the interest rate swap contracts is recognized on an accrualbasis.
(Note 3) Fair value is based on prices, etc. indicated by partner financial institutions.

794,871

Significant Subsequent Events
Resolution regarding acquisition of investment units
The Investment Corporation has decided the acquisition of own investment units based on the Article 80-2 of Investment Trust
Act applied upon reading the terms in the Article 80-5, Paragraph 2 of the Investment Trust Act at a meeting of the board of
directors of the Investment Corporation held on February 17, 2022. The Investment Corporation will cancel all the acquired units
in 21th fiscal period.

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

(1) Reason for acquisition of own investment units
Considering various facts such as the level of investment unit price, situation of cash in hand, financial situation and market
environment, the Investment Corporation expects that improving capital efficiency and returning profit to investors throughacquiring own investment units will improve the investors' value in mid-to long-term.
(2) Details of acquisition of own investment units
Total number of own investment units to be acquired：13,000 units (maximum)
Total acquisition price：4,000,000 thousand yen (maximum)
Acquisition period：From February 18, 2022 to May 13, 2022
Method of acquisition：The investment Corporation entrusts the market purchase of its own investment units at Tokyo Stock
Exchange to a securities company by discretionary transaction contract.

Tangible
AssetsOmission of Disclosure
As the need for disclosing notes on securities, retirement benefits, equity in earnings of affiliates, and asset retirement obligationsin this financial report is not material or applicable, the disclosure of these items is omitted.

Increase

Decrease

EndingBalanceAccumulated
depreciation

Buildings in trust

85,760,008

2,740,579

1,430,222

87,070,366

17,086,807

Structures in trust

805,357

6,447

28,291

783,513259,824

20,471

523,689

Machinery andequipment in trust

1,422,969

41,522

204

1,464,287

501,805

39,061

962,481

Tools, furniture andfixtures in trust

302,469

8,819

20,348290,941

182,233

18,909108,707

Land in trust (Note1)

424,862,322

48,665,244

10,757,984

462,769,582-- 462,769,582

163,000-

127,939

35,061--

Subtotal

513,316,128

51,462,613

12,364,990

552,413,751

18,030,670

Leasehold rights intrust

9,055,086--

9,055,086--

9,055,086

7,153

-

-

7,153

6,729

254

423

9,062,239--

9,062,239

6,729

254

9,055,510

522,378,368

51,462,613

12,364,990

Construction inprogress in trust

Intangible
AssetsOther (Note2)
Subtotal
Total

561,475,991 18,037,400

Depreciation
for the period

Net property,
plant andequipment

Beginningbalance

1,296,259 69,983,558

35,061

1,374,701 534,383,081

1,374,955 543,438,591(Note1) The main reason for the fiscal period ended November 30,2021 is the acquisition of 3properties (Meguro Tokyu Building,Q plaza Shinjuku 3-chome,A-PLACE
Shibuya Nampeidai).The decrease is mainly due to the transfer of Tokyu Plaza Akasaka.
(Note2) “Other” is software (non-real estate asset).

21
70

22
71

Other Specified Assets

Loans PayableNot applicable

The following tables show the details of loans payable.
Category

Investment Corporation Bonds

Lender(Unit: Thousands of yen)
Issue

Issue Date

3rd unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

April 21,2015

4th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 3,
2016

6th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 2,
2017

7th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 2,
2017

8th unsecured bonds(with pari passu conditions among February 13,
2018
specified investment corporation
bonds)
9th unsecured bonds(with pari passu conditions among February 13,
2018
specified investment corporation
bonds)
10th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)(Green Bonds)

July 9,2019

Beginningbalance

Decrease

2,000,000

2,000,000

1,000,000

1,000,000

－

－

－

－

Endingbalance

Interest
Rate

Redemption
Date

0.726%

April 21,2025

2,000,000

2,000,000

1,000,000

1,000,000

February 3,
0.770%
2026

February 2,
0.480%
2027

0.810%

Use of funds

Remarks

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

February 2,
2032

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

August 12,
2022

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

1,000,000

1,000,000－－

1,000,000

1,000,000

0.160%

1.050%

February 12,
2038

July 9,2024

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed－

5,000,000

0.220%

11th unsecured bonds(with pari passu conditions among November 18,
specified investment corporation2019
bonds)(Green Bonds)

4,000,000－

4,000,000

0.530%

November 16, Partial repayment of the
Unsecured,2029
long-term borrowings non-guaranteed

12th unsecured bonds(with pari passu conditions among October 21,
2020
specified investment corporation
bonds)(Green Bonds)

4,500,000－

4,500,000

0.510%

October 21,
2030

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

13th unsecured bonds(with pari passu conditions among
specified investment corporation
bonds)

February 9,
2021

1,300,000－

1,300,000

0.750%

February 8,
2036

Partial repayment of the
Unsecured,
long-term borrowings non-guaranteed

14th unsecured bonds(with pari passu conditions among November 16,
specified investment corporation
2021
bonds)(Green Bonds)－－

3,900,000

0.400%

November 14, Partial repayment of the
Unsecured,
2031
long-term borrowings non-guaranteed

Total

–

Longtermloanspayable(Note 2)

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

5,000,000(Note)

ShortTerm
Loanspayable22,800,000— 26,700,000

–

–

–

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

Draw
down
date
September
10, 2021

January 10,
2019
January 10,
2019

January 5,
2018

January 9,
2015

January 10,
2020
January 10,
2020

Beginningbalance

Increase

Endingbalance

Decrease－

1,560,000

1,560,000－－－

1,560,000
780,000

1,560,000
780,000－－

3,920,000—

3,920,000—

3,920,000
1,970,000——

3,920,000
1,970,000——

1,970,000—

1,970,000—

1,970,000—

1,970,000—

Maturitydate

Use offunds

Remarks

0.20171%

September
10, 2022(Note 3)

Unsecured,
non-guaranteed

0.20981%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

0.36607%

July 12,2021(Note 3)

Unsecured,
non-guaranteed

0.41931%

December28, 2021(Note 3)

Unsecured,
non-guaranteed

320,000——

320,000

640,000
320,000————

640,000
320,000

160,000——

160,000

160,000——

160,000

840,000——

840,000

0.73690%840,000——

840,000

0.73690%840,000——

840,000

0.73690%840,000——

840,000

0.73690%420,000——

420,000

0.73690%0.73690%420,000——

420,000

1,420,000——

1,420,000

1,420,000
720,000————

1,420,000
720,000

720,000——

720,000

720,000——

720,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,
2022
January 9,2022(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

0.22365%

January 11,2022(Note 4)

Unsecured,
non-guaranteed

0.31571%

January 11,2022(Note 4)

Unsecured,
non-guaranteed–

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

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

1,000,000

1–2 years

2–3 years－

5,000,000

3–4 years
2,000,000

4–5 years
2,000,000

23
72

24
73

Category
LenderMizuho Trust & Banking
Co.,LTD.

Draw
down
date
March 31,2015

Shinkin Central Bank
Tokio Marine & Nichido
Fire Insurance Co., Ltd.
The 77 Bank, Ltd.

March 31,2017

Sumitomo Mitsui Trust
Bank, Limited
MUFG Bank, Ltd. (Note6)
Mizuho Bank, Ltd.

June 15,
2015

Increase

Endingbalance

Decrease

2,000,000——

2,000,000

500,000——

500,000

400,000——

400,000

400,000——

400,000

1,500,000——

1,500,000

1,500,000
1,500,000

—

—

—

—

1,500,000
1,500,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.68500%

March 31,2022

(Note 4)

Unsecured,
non-guaranteed

0.30630%

0.94688%

March 31,2022
June 15,2022

0.94688%

June 15,2022

0.94688%

June 15,2022(Note 4)(Note 4)(Note 4)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed——

1,500,000

0.94688%

Sumitomo Mitsui Trust
Bank, Limited

200,000——

200,000

0.65691%

June 15,2022(Note 3)

MUFG Bank, Ltd. (Note6)

200,000

June 15,2022(Note 3)

Mizuho Bank, Ltd.

200,000
December16, 2015

—

—

—

—

200,000

200,000

0.65691%

0.65691%

June 15,2022

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed

200,000——

200,000

0.65691%

June 15,2022

Sumitomo Mitsui
Banking Corporation

100,000——

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

Development Bank ofJapan Inc.

100,000——

100,000

0.65691%

June 15,2022(Note 3)

Unsecured,
non-guaranteed

MUFG Bank, Ltd.

Sumitomo Mitsui Trust
Bank, Limited

1,560,000

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

June 13,
2018

—

—

1,560,000

1,560,000——

1,560,000

1,560,000——

1,560,000

160,000——

160,000

160,000——

0.44835%

June 15,2022(Note 4)

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

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

1,500,000

Category

Unsecured,
non-guaranteed(Note 4)

June 15,2022

MUFG Bank, Ltd.

Longtermloanspayable(Note 2)Beginningbalance

Unsecured,
non-guaranteed

160,000

Mizuho Bank, Ltd.

Longtermloanspayable(Note 2)

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

September
30, 2015

March 30,
2018

October 6,
2016

June 15,2015

MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Taiyo Life Insurance
Company
Mitsui Sumitomo
Insurance Company,
LimitedThe Gunma Bank, Ltd.

74

January 9,
2019

MUFG Bank, Ltd.

Resona Bank, Limited.

25

Draw
down
date

December16, 2015
June 13,2017
September
10, 2021

March 31,2017
March 31,2020
March 31,2020

Beginningbalance

Increase

Endingbalance

Decrease

620,000——

620,000

620,000
620,000————

620,000
620,000

320,000——

320,000

320,000——

320,000

1,250,000——

1,250,000

1,250,000——

1,250,000

1,250,000——

1,250,000

1,250,000——

1,250,000

750,000——

750,000

750,000
750,000————

750,000
750,000

375,000——

375,000

375,000——

375,000

800,000——

800,000

1,600,000
800,000————

1,600,000
800,000

400,000——

400,000

400,000——

400,000

1,500,000——

1,500,000

Maturitydate

Use offunds

Remarks

0.38236%January 10,2023(Note 4)

Unsecured,
non-guaranteed

0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)0.61330%(Note 5)

March 30,
2023
March 30,
2023
March 30,
2023
March 30,2023

0.44804%

March 30,2023

(Note 4)

Unsecured,
non-guaranteed

0.38472%

April 6,2023

(Note 3)

Unsecured,
non-guaranteed

1.06316%

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

1,500,000——

1,500,000

1.06316%

625,000——

625,000

0.75387%
0.75387%

625,000——

625,000

1,250,000——

1,250,000

2,500,000
1,250,000

—
—

—
—

2,500,000
1,250,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)

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

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

0.46400%

June 15,2023(Note 4)

Unsecured,
non-guaranteed

0.21198%

September
10, 2023(Note 3)

Unsecured,
non-guaranteed

0.35998%

September
29, 2023(Note 4)

Unsecured,
non-guaranteed－

1,000,000－

1,000,000－－

1,000,000
500,000－－

1,000,000
500,000

500,000——

500,000

500,000——

500,000

1,500,000——

1,500,000

0.19990%

500,000——

500,000

0.23990%

September
30, 2023
September
30, 2023(Note 4)(Note 4)

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

26
75

Category
LenderSumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.

Longtermloanspayable(Note 2)

Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
Shinkin Central Bank
The Norinchukin Bank
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
(Note 6)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Nippon Life Insurance
Company

Draw
down
date

January 12,
2016

January 10,
2020

March 31,2017

December16, 2015

June 13,
2016
June 13,2016

September
21, 2016

March 31,2021

Beginningbalance

Increase

Decrease

Endingbalance

Averageinterest rate
(Note 1)1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%

1,400,000——

1,400,000

0.78362%700,000——

700,000

0.78362%700,000——

700,000

0.78362%

1,420,000——

1,420,000

1,420,000
720,000————

1,420,000
720,000

720,000——

720,000

720,000——

720,000

2,000,000——

2,000,000

1,500,000——

1,500,000

1,000,000——

1,000,000

500,000
500,000————

500,000
500,000

1,200,000——

1,200,000

0.34459%

0.41380%

0.85377%

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

1,200,000——

1,200,000

0.85377%

600,000——

600,000

0.85377%

600,000——

600,000

0.85377%

1,500,000——

1,500,000

3,000,000
1,500,000

—
—

—
—

3,000,000
1,500,000

1,500,000——

1,500,000

3,000,000
1,500,000

—
—

—
—

3,000,000
1,500,000

1,200,000——

1,200,000

2,400,000
1,200,000

—
—

—
—

2,400,000
1,200,000

600,000——

600,000

600,000——

600,000

500,000－—

500,000

0.33150%(Note 5)0.36900%(Note 5)0.54094%

0.25000%(Unit: Thousands of yen)
Maturity
date
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024
January 12,
2024

January 12,
2024

March 29,2024

June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
June 17,2024
December13, 2024

March 21,2025

March 31,2025

Use offunds(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 4)(Note 3)(Note 4)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)(Note 4)(Note 4)(Note 3)(Note 4)

Remarks
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed
Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

LenderSumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
Shinkin Central Bank
The Norinchukin Bank
THE NISHI-NIPPONCITY BANK, LTD.
The Bank of
Kyoto,Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Long-term Development Bank ofJapan Inc.
loans
payable Mizuho Trust &(Note 2) Banking Co.,LTD.
Shinkin Central Bank
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Banking Corporation
Mizuho Trust &Banking Co.,LTD.
Resona Bank, Limited.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
The 77 Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust &Banking Co.,LTD.
The Norinchukin Bank

Draw
down
date

March 16,2017

March 16,2018

March 30,
2018

August 29,
2019

September
21, 2016

December13, 2016

March 7,2019

June 13,2017
June 28,2019

Beginningbalance

Increase

Endingbalance

Decrease

1,800,000——

1,800,000

3,600,000
1,800,000

—
—

—
—

3,600,000
1,800,000

900,000——

900,000

900,000——

900,000

440,000——

440,000

440,000——

440,000

440,000——

440,000

440,000
440,000————

440,000
440,000

500,000——

500,000

300,000——

300,000

500,000——

500,000

500,000
500,000————

500,000
500,000

250,000——

250,000

250,000——

250,000

1,500,000——

1,500,000

1,500,000——

1,500,000

2,100,000——

2,100,000

4,200,000
2,100,000

—
—

—
—

4,200,000
2,100,000

1,050,000——

1,050,000

1,050,000——

1,050,000

6,000,000——

6,000,000

1,100,000——

1,100,000

1,100,000——

1,100,000

1,100,000——

1,100,000

1,100,000
600,000————

1,100,000
600,000

1,750,000——

1,750,000

3,500,000
1,750,000

—
—

—
—

3,500,000
1,750,000

1,200,000——

1,200,000

1,200,000——

1,200,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.70169%

September
16, 2025(Note 3)

Unsecured,
non-guaranteed

0.46453%

September
16, 2025(Note 4)

Unsecured,
non-guaranteed

0.58630%

September
16, 2025(Note 4)

Unsecured,
non-guaranteed

0.09313%

February 27,
2026(Note 4)

Unsecured,
non-guaranteed

0.61942%

March 19,2026

(Note 3)

Unsecured,
non-guaranteed

0.69796%

June 12,2026(Note 4)

Unsecured,
non-guaranteed

0.35765%

September
7,2026(Note 4)

Unsecured,
non-guaranteed

0.71015%

December
14, 2026(Note 4)

Unsecured,
non-guaranteed

0.23004%

December28, 2026(Note 4)

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

27
76

Category

28
77

Category
LenderSumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Long-term
Sumitomo Mitsui
loansBanking Corporation
payable(Note 2) Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
The Bank of Fukuoka,
Ltd.
The Norinchukin Bank
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
Development Bank ofJapan Inc.

Draw
down
date

January 9,
2018

January 10,
2020

June 13,2018

January 5,
2018

April 19,2019
April 19,2019
March 31,2020

January 10,
2019
January 10,
2019

May 31,2019

Beginningbalance

Increase

Endingbalance

Decrease

780,000——

780,000

1,560,000
780,000————

1,560,000
780,000

390,000——

390,000

390,000——

390,000

950,000——

950,000

950,000
950,000————

950,000
950,000

475,000——

475,000

475,000——

475,000

2,200,000——

2,200,000

2,200,000
2,200,000

—
—

—
—

2,200,000
2,200,000

200,000——

200,000

200,000——

200,000

320,000——

320,000

640,000
320,000————

640,000
320,000

160,000——

160,000

160,000——

160,000

1,000,000——

1,000,000

1,000,000
1,000,000

—
—

—
—

1,000,000
1,000,000

500,000——

500,000

500,000——

500,000

1,000,000——

1,000,000

500,000——

500,000

3,210,000——

3,210,000

3,210,000
1,610,000

—
—

—
—

3,210,000
1,610,000

1,610,000——

1,610,000

1,610,000——

1,610,000

1,165,000——

1,165,000

1,165,000
590,000————

1,165,000
590,000

590,000——

590,000

590,000——

590,000

Averageinterest rate
(Note 1)0.70698%

0.43349%

0.73360%

0.74869%

0.54375%(Note 5)

(Unit: Thousands of yen)
Maturity
date

January 9,
2027

January 12,2027

June 13,2027

July 5,
2027

July 5,2027

Use offunds(Note 4)(Note 4)(Note 4)(Note 3)(Note 4)

Remarks

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

Unsecured,
non-guaranteed

0.58821%

July 5,2027(Note 4)

Unsecured,
non-guaranteed

0.28500%

September
30,2027(Note 4)

Unsecured,
non-guaranteed

0.55800%(Note 5)January 11,2028

0.65264%January 11,2028

0.56127%

May 31,
2028(Note 3)

Unsecured,
non-guaranteed(Note 3)

Unsecured,
non-guaranteed(Note 4)

Unsecured,
non-guaranteed

Category
Lender

Draw
down
date

Beginningbalance

Increase

Sumitomo Mitsui
420,000
Trust Bank, Limited
Mizuho Bank, Ltd.
420,000
MUFG Bank, Ltd.
July 9,420,000
2019
Sumitomo Mitsui
220,000
Banking Corporation
Development Bank of
220,000
Japan Inc.
Mizuho Trust &1,500,000
Banking Co.,LTD.
The Bank of Fukuoka,
1,500,000
JanuaryLtd.
12, 2021
The 77 Bank, Ltd.
1,000,000
THE NISHI-NIPPON
1,000,000
CITY BANK, LTD.
Development Bank ofJune 13,6,000,000
Japan Inc.
2019
Sumitomo Mitsui—
Trust Bank, Limited
Mizuho Bank, Ltd.
—MUFG Bank, Ltd.
July 12,—2021
Sumitomo Mitsui—
Banking Corporation
Development Bank of—Japan Inc.
Sumitomo Mitsui—
Trust Bank, Limited
Mizuho Bank, Ltd.
—
September
MUFG Bank, Ltd.
—
10,
Sumitomo Mitsui
2021—
Banking
Corporation
Longterm Development Bank of—loans Japan Inc.
payable Sumitomo Mitsui
1,320,000(Note 2) Trust Bank, Limited
Mizuho Bank, Ltd.
1,320,000
MUFG Bank, Ltd.
December
1,320,000
21,2020
Sumitomo Mitsui670,000
Banking Corporation
Development Bank of
670,000
Japan Inc.
Sumitomo Mitsui1,670,000
Trust Bank, Limited
Mizuho Bank, Ltd.
1,670,000
MUFG Bank, Ltd.
January 12,
1,670,000
2021
Sumitomo Mitsui845,000
Banking Corporation
Development Bank of
845,000
Japan Inc.
Sumitomo Mitsui—
Trust Bank, Limited
Mizuho Bank, Ltd.
—MUFG Bank, Ltd.
July 12,—2021
Sumitomo Mitsui—
Banking Corporation
Development Bank of—Japan Inc.
Sumitomo Mitsui—
Trust Bank, Limited
Mizuho Bank, Ltd.
—MUFG Bank, Ltd.
September—
10, 2021
Sumitomo Mitsui—
Banking Corporation
Development Bank of—Japan Inc.
Total
221,350,000

Endingbalance

Decrease——

420,000————

420,000
420,000——

220,000——

220,000——

1,500,000——

1,500,000——

1,000,000——

1,000,000——

6,000,000

1,200,000—

1,200,000

1,200,000
600,000——

1,200,000
600,000

600,000—

600,000

600,000—

600,000

1,400,000—

1,400,000

1,400,000
700,000——

1,400,000
700,000

700,000—

700,000

700,000—

700,000——

1,320,000

—
—

—
—

1,320,000
1,320,000——

670,000——

670,000——

1,670,000

—
—

—
—

1,670,000
1,670,000——

845,000——

845,000

2,720,000—

2,720,000

2,720,000
1,370,000——

2,720,000
1,370,000

1,370,000—

1,370,000

1,370,000—

1,370,000

1,400,000—

1,400,000

1,400,000
700,000——

1,400,000
700,000

700,000—

700,000

700,000—

700,000

26,050,000

13,750,000

233,650,000(Unit: Thousands of yen)

Averageinterest rate
(Note 1)Maturitydate

Use offunds

Remarks

0.49281%

July 10,2028(Note 4)

Unsecured,
non-guaranteed

0.27935%

July 12,2028(Note 4)

Unsecured,
non-guaranteed

0.56511%

December
13,2028(Note 4)

Unsecured,
non-guaranteed

0.36806%

July 12,2029(Note 4)

Unsecured,
non-guaranteed

0.40809%

September
10, 2029(Note 3)

Unsecured,
non-guaranteed

0.45403%

December
21,2029(Note 4)

Unsecured,
non-guaranteed

0.45882%January 12,2030(Note 4)

Unsecured,
non-guaranteed

0.42436%

July 12,2030(Note 4)

Unsecured,
non-guaranteed

0.46690%

September
10, 2030(Note 3)

Unsecured,
non-guaranteed(Note 1) Weighted average rate, rounding to the sixth decimal place.
(Note 2) Long-term loans payable include current portion.
(Note 3) Use of the borrowings is acquisition of the real estate trust beneficiary interests.
(Note 4) Use of the borrowings is appropriated to repayment of outstanding loans payable.
(Note 5) This long-term loans payable is hedged by interest rate swap contract. The average interest rate reflects the effectiveness of thishedging instrument.
(Note 6) The role of Mitsubishi UFJ Trust and Banking Corporation as a lender has been taken over by MUFG Bank, Ltd. on April 16, 2018.
(Unit: Thousands of yen)
Within 1 year
Long-term loans payable29
78

26,100,000

1–2 years
32,250,000

2–3 years
29,500,000

3–4 years
26,500,000

4–5 years
24,500,000

30
79Independent Auditor’s Report80

81Overview of API
Structure
The REITThe Sponsor

2

6

3

Sumitomo Mitsui
Trust Bank, Limited

General Meetingof Unitholders

The Asset Manager

4

CustodianTransfer Agent
General Administratorof InstitutionallyManaged Assets

1

5

Board of Directors

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

Executive Director:
Nobuhide Kashiwagi
Supervisory Director:
Yonosuke Yamada

7Supervisory Director:
Yoshinori Ariga

Support Companies
Tokyu Livable Inc.
Tokyu Community Corp.
Tokyu Hands Inc.
Tokyu Sports Oasis, Inc.
Tokyu Resorts & Stays Co., Ltd.

Independent Auditor
Ernst & Young
ShinNihon LLC

1Asset management agreement

2

Asset custody agreement

3

Transfer agency agreement

4

General administration agreement

5

Fiscal agency agreement

6

Sponsor support agreement,
outsourcing agreement

7

Affiliate support agreements

ProfileName

Activia Properties Inc.

Executive Director

Nobuhide Kashiwagi

Address

Shibuya Solasta 18F, 21-1 Dogenzaka 1-chome, Shibuya-ku, Tokyo

Contact

Activia Management Division of
TLC REIT Management Inc.
Tel. +81-3-6455-3377

Closing dates

May 31 and November 30

History
Sep. 7, 2011

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

Sep. 20, 2011

Implementation of registration by the prime minister under Article 189 of the Act on
Investment Trusts and Investment Corporations (registration number: Director of Kanto
Local Finance Bureau No. 73)

Jun. 13, 2012

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

API Website
We provide all appropriate information on our website
in a timely and reliable manner.
URL

https://www.activia-reit.co.jp/en/
Accessible from smartphone as well.
82

83

Overview of the Asset Manager

Information on Unitholders

Overview of the Asset Manager

Trends in Unit Prices(¥)

Corporate
name

TLC REIT Management Inc.

Established
CapitalOctober 6, 2009

Registration &License¥200 million

Shareholder

President andTokyu Land Corporation 100%
CEO

Financial Instruments Business Firm, granted by the Director of the Kanto
Regional Finance Bureau (Financial Instruments) Registration No. 2370
Discretionary Transaction Agent granted by the Minister of Land,
Infrastructure, Transport and Tourism, Registration No. 65
Building Lots and Building Transactions Business License, granted by theGovernor of Tokyo (3) No. 91139
Member of the Investment Trusts Association, Japan
Masaoki Kanematsu

TSE REIT index (left axis)

600,000

API (left axis)

Market Cap. (right axis)

November 30, 2021
API: ¥432,000
TSE REIT index: 2,003pt
Market Cap.: ¥355.4bn(¥ 100 millions)

5,000
4,500

550,000

4,000
500,000

3,500

450,000

3,000
2,500

400,000

2,000

350,000

DNA of Tokyu Land Corporation

1,500

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

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

300,000

June 13, 2012
API: ¥221,750
TSE REIT index: 906pt
Market Cap.: ¥90.7bn

250,000

0Jun. 13, End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of End of2012 Nov. 2012 May 2013 Nov. 2013 May 2014 Nov. 2014 May 2015 Nov. 2015 May 2016 Nov. 2016 May 2017 Nov. 2017 May 2018 Nov. 2018 May 2019 Nov. 2019 May 2020 Nov. 2020 May 2021 Nov. 2021
(Note 1) Performance of TSE REIT index is indexed to API unit price as of June 13, 2012 being 100.
(Note 2) As API implemented a 2-for-1 investment unit split effected as of October 1, 2015, the closing prices from the listing date to the end of May 2015 are indicated as half asadjusted for the unit split.

Distribution of Unitholders
Other domestic
companies

182 (2.2%)

187 (2.3%)

Number ofunitholders
by holder type

Corporate Auditor
Board of Directors
Investment Committee

Compliance Committee
President & CEO

Sustainability
Promotion Council

Acquisition Priority
Review Meeting

Internal Audit Dept.

Compliance Dept.

Activia
Management Div.

Asset
Investment
Dept.

Environmental
Engineering
Dept.

Strategy
Dept.

Securities
companies

Individuals,other

296 (3.6%)

37,957 (4.6%)

31,417 (3.8%)

Securities
companies

23 (0.3%)

Comforia
Management Div.

Broadia
Management Div.

Asset
Management
Dept.

Strategy
Dept.

Asset
Management
Dept.

Strategy
Dept.

Asset
Management
Dept.

Foreignunitholders

180,056(21.9%)

Number ofinvestment units
by holder type822,754

Individuals,
other

Other domestic
companies

Financial
institutions

7,476 (91.6%)

88,768 (10.8%)

484,556 (58.9%)(Note 1) API implemented a 2-for-1 investment unit split effected as of October 1, 2015.
(Note 2) “Individuals, other” includes goverments and local public entities.

Unitholder Memo
Account closing dates

May 31 and November 30

Unitholders’ meeting

To be held at least once every two years

Record date forunitholders’ meeting
Dates for determining cash
distribution payments
Administrator ofunitholders’ registry
Place of business of administratorof unitholders’ registry

Corporate
Human
Finance & Sustainability
Planning Resources Accounting Department (Note)
Dept.
Dept.
Dept.

Foreignunitholders

8,164

Shareholders’ Meeting

Corporate
Management Div.

500

200,000

Financial
institutions

Organizational Chart

1,000

Stock exchange
Newspaper to provide public notice

A record date based on Article 15, Section 1 of the Articles of Incorporation
May 31 and November 30
Sumitomo Mitsui Trust Bank, Limited
4-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan
Stock Transfer Agency Business Planning Department of
Sumitomo Mitsui Trust Bank, Limited
Mailing address: 8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063, Japan
0120-782-031 (toll-free, available within Japan only)
URL: https://www.smtb.jp/personal/procedure/agency/ (Japanese page)
J-REIT section of the Tokyo Stock Exchange (securities code: 3279)
Nihon Keizai Shimbun(Note) Newly established in April 2021

84

85

■ Change of registered address, name or seal, etc., or designation or change ofaccount for receipt of dividends:

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

Please contact the securities company.

From January 1, 2014 through December 31, 2037

From January 1, 2038

20.315%20%■ Dividends
You can receive dividends by presenting a dividend receipt to the nearest head office/branch/office ofJapan Post Bank (bank agency). If the period for receipt has already expired, please specify how you wish
to receive dividends on the back of the dividend receipt, and then mail it to the Stock Transfer Agency

Dividend tax rate oflisted investment
corporations

Breakdown

Breakdown

Residence tax 5%

Department, Sumitomo Mitsui Trust Bank, or receive dividends directly at the service counter of the head

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

office/branch of the bank.
In addition, with respect to future dividends, if you wish to receive dividends through transfer to a bankaccount, etc., please take the necessary procedures at your securities company.
Telephone inquiries

Income tax
15%

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

Stock Transfer Agency Business Planning Department of Sumitomo Mitsui Trust Bank, Limited

0120-782-031

During the period from January 1, 2013 through December 31, 2037 (25 years), the Act on Special Measures for
Securing Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan
Earthquake (2011 Law No. 117) is in force. As a result, there is a reconstruction special income tax of 2.1%.

(toll-free, available within Japan only)This reconstruction special income tax will be imposed together when income tax is withheld at the source on
dividends paid by listed investment corporations.
Additional issues to be aware of are as follows.

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

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

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

Annual Schedule
May

June

Closing month for the
fiscal period endingin May86

July

Announcementof financial
results

AugustCommencementof payment ofdividends

September

Release of theSemi-Annual
ReportOctoberNovember

DecemberClosing month for the
fiscal period ending inNovemberJanuary

Announcementof financial
results

February

Commencementof payment ofdividends

March

April

Release of theSemi-Annual
Report87

API 3279

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