Summary of Accounts for Fiscal Period Ended May 31, 2018 (Infrastructure Fund)
July 13, 2018
Infrastructure Fund Issuer:
Securities Code: 9281
Representative:

Takara Leben Infrastructure Fund, Inc.
URL: http://www.tif9281.co.jp/
Masahide Kikuchi, Executive Director

Exchange for listing: TSE

Management Company:
Representative:
Contact:

Takara Asset Management Co., Ltd.
Mamoru Takahashi, President & CEO
Masahide Kikuchi, Vice President & Director of Infrastructure Fund Division,
Investment Management Department

TEL: +81-3-6262-6402
Scheduled date of submission of securities report: August 30, 2018
Scheduled start date of payment of distributions: August 16, 2018
Availability of supplementary materials for disclosure of financial statements: Available
Holding of financial results briefing: Holding (for institutional investors and analysts)(Rounded down to nearest million yen)
1. Results of operations and assets for the fiscal period ended May 31, 2018 (December 1, 2017 to May 31, 2018)(1) Operating results(The percentages show the rates of change from the previous fiscal period.)
Operating revenue
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal period
ended May 31,
1,205
13.5
473
12.0
415
12.4
414
12.4
2018
Fiscal period
ended November
1,062
159.4
422
150.8
369
146.3
368
146.8
30, 2017
Net income per unit
Yen
Fiscal period
ended May 31,
2018
Fiscal period
ended November
30, 2018

Ratio of net income to Ratio of ordinary income to Ratio of ordinary income toequity capital (ROE)
total assets (ROA)
operating revenue
%
%
%

3,511

3.7

1.7

34.4

3,136

4.6

2.3

34.8

(2) Results of distributions
Distribution perunit (excl.
surplus earnings
distribution)

Total
distribution(excl. surplus
earnings
distribution)
Million yen

Surplusearnings
distribution
per unit

Distribution per
Total
unit (incl.
distribution
surplus(incl. surplus
earnings
earnings
distribution) distribution)
Million yen
Yen Million yen

Total
surplusearnings
distribution

Ratio ofDivid
dividend
end
to netpayou
assetst ratio
(DOE)
%
%

Yen
Yen
Fiscal period
ended May 31,
3,512
414
464
54
3,976
469 100.0
3.7
2018
Fiscal period
ended November
3,123
368
463
54
3,586
423 100.0
3.2
30, 2017(Note 1) Due to an issuance of new investment units during the fiscal period, the dividend payout ratio for the fiscal period ended
November 30, 2017 is calculated according to the following calculation formula.
Dividend payout ratio = total distributions (excluding surplus earnings distribution) / net income x 100(Note 2) The dividend payout ratios and the ratio of dividend to net assets are calculated based on figures that do not include surplus
earnings distribution.
(Note 3) The entire amount of total surplus earnings distribution for the fiscal period ended November 30, 2017 is a refund ofcontributions that constitute distribution upon the decrease of contributions under the tax laws.
(Note 4) The ratio of surplus, etc. that decreases upon surplus earnings distribution (refund of contributions that constitute distribution
upon the decrease of contributions under the tax laws) during the fiscal period ended November 30, 2017 is 0.005 and fiscal
period ended May 31, 2018 is 0.005.
The ratio of decreased surplus, etc. is calculated according to Item 4, Paragraph 1, Article 23 of the Order for Enforcementof the Corporation Tax Act.
(3) Financial position－

1 －Total assets
Million yen

Net assets
Million yen

Capital adequacy ratio%

Net assets per unit
Yen

24,538

11,322

46.1

95,976

23,071

11,331

49.1

96,050Fiscal period
ended May 31,
2018
Fiscal period
ended November
30, 2017(4) Results of cash flows

Million yen

Million yen

Million yen

Cash and cash
equivalents at the endof the term
Million yen

1,582-1,928

1,032

2,000

-18

-13,029

13,701

1,312

Cash flows fromoperating activities
Fiscal period
ended May 31,
2018
Fiscal period
ended November
30, 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Forecast operating results for the fiscal period ending November 30, 2018 (June 1, 2018 to November 30, 2018), the fiscal period
ending May 31, 2019 (December 1, 2018 to May 31, 2019) and the fiscal period ending November 30, 2019 (June 1, 2019 toNovember 30, 2019)(The percentages show the rates of change from the previous fiscal period.)
Operating revenue

Fiscal period
endingNovember30, 2018
Fiscal period
ending May
31, 2019
Fiscal period
endingNovember30, 2019

Operating income

Ordinary income

Distribution per unit
Distribution per unit
Surplus earnings(excl. surplus(incl. surplus
distribution perearnings
earnings
unit
distribution)
distribution)

Net income

Millionyen%

Millionyen%

Millionyen%

Million
yen

%

Yen

Yen

Yen

1,430

18.7

504

6.6

438

5.7

437

5.7

3,160

350

3,510

1,468

2.7

527

4.5

457

4.3

456

4.3

3,297

334

3,631

1,423

-3.1

472

-10.5

407

-11.0

406

-11.0

2,935

336

3,271

(Reference) Forecast net income per unit (for the fiscal period ending November 30, 2018): 3,160 yen; forecast net income per unit
(for the fiscal period ending May 31, 2019): 3,296 yen; forecast net income per unit (for the fiscal period ending
November 30, 2019): 2,934 yen
Estimated total number of issued investment units at the end of the fiscal period: 138,574 units* Others(1) Change of the accounting policy, change in the estimates for the purpose of accounting, and revision and reclassification(i) Change of the accounting policy upon revision to the accounting standards, etc.: none(ii) Change of the accounting policy other than that described in (i) above: none(iii) Change in the estimates for the purpose of accounting: none(iv) Revision and reclassification: none
(2) Total number of issued investment units
As of
117,976units November
117,976units
30, 2017
As of(ii) Number of treasury investment units at the end of the
As of May
-units November-unitsfiscal period
31, 2018
30, 2017(Note) For the number of investment units that is the basis for the calculation of net income per unit, please refer to the Notes for
Data per Unit stated on page 25 below.
(i) Total number of issued investment units at the end of the
fiscal period (including treasury investment units)

As of May31, 2018* Indication regarding the state of audit procedures taken
This summary of accounts is not included in the scope of the audit procedures under the Financial Instruments and Exchange Act(Act No. 25 of 1948, including amendments thereto, hereinafter referred to as the “Act”). At the time of the publication of this－2 －summary of accounts, the audit procedures under the Act are not completed.
* Explanations about the appropriate use of the forecasts of the operating results and other special notes
The statements about the outlook for the operating results stated herein and other future situations are based on the informationthat the Investment Corporation has obtained and certain assumptions that the Investment Corporation considers reasonable. The
actual operating results may differ substantially from them due to various causes. In addition, those forecasts do not guarantee theamounts of distributions. For the assumptions for the forecasts of the operating results, please refer to “Assumptions for Forecastsof Operating Results for the Fiscal Period ending November 30, 2018 (June 1, 2018 to November 30, 2018), the Fiscal Period
ending May 31, 2019 (December 1, 2018 to May 31, 2019), and the Fiscal Period ending November 30, 2019 (June 1, 2019 toNovember 30, 2019)” stated on page 7 below.

－

3 －Table of Contents
1. Corporations affiliated with the investment corporation ....................................................................................................................... 5
2. Operational policy and operating results ............................................................................................................................................... 5(1) Operational policy............................................................................................................................................................................ 5(2) Operating results .............................................................................................................................................................................. 5(i) Overall situation in the fiscal period under review ....................................................................................................................... 5a.
Major events of the Investment Corporation ...................................................................................................................... 5b.
Actual operating results for the fiscal period under review ................................................................................................ 5c.
Summary of financing ........................................................................................................................................................ 5d.
Summary of business results and distributions ................................................................................................................... 6(ii) Outlook for the following fiscal period........................................................................................................................................ 6a.
Future outlook for operations ............................................................................................................................................. 6b.
Future operational policy.................................................................................................................................................... 6c.
Forecasts of operating results ............................................................................................................................................. 7(iii) Facts arising after the settlement of accounts ............................................................................................................................. 8a.
Issuance of new investment units ....................................................................................................................................... 8b.
Borrowing of funds ............................................................................................................................................................ 8c.
Acquisition of assets ........................................................................................................................................................... 9(iv) Forecast of Operation................................................................................................................................................................ 10(3) Investment risk............................................................................................................................................................................... 13
3. Financial Statements ........................................................................................................................................................................... 14(1) Balance sheets ................................................................................................................................................................................ 14(2) Statement of income ...................................................................................................................................................................... 16(3) Statement of unitholders’ equity .................................................................................................................................................... 17(4) Statement of distribution of money ................................................................................................................................................ 19(5) Statement of cash flows ................................................................................................................................................................. 20(6) Notes regarding the premise of going concern ............................................................................................................................... 21(7) Notes regarding the matters relating to important accounting policies .......................................................................................... 21(8) Notes regarding financial statements ............................................................................................................................................. 22(9) Change in the total number of issued investment units .................................................................................................................. 32
4. Change of officers ............................................................................................................................................................................... 32(1) Change of officers of the Investment Corporation ......................................................................................................................... 32(2) Change of officers of the management company ........................................................................................................................... 32(i) New assumption of office ........................................................................................................................................................... 32(ii) Retirement ................................................................................................................................................................................. 32
5. Reference information ......................................................................................................................................................................... 33(1) State of investment......................................................................................................................................................................... 33(2) Investment assets ........................................................................................................................................................................... 34(i) Major issues of investment securities ......................................................................................................................................... 34(ii) Real estate for investment .......................................................................................................................................................... 34(iii) Other major investment assets .................................................................................................................................................. 35a.
Summary of renewable energy power facilities, etc. ........................................................................................................ 35b.
Results of revenues and expenditures of individual renewable energy power facilities ................................................... 39－

4 －1. Corporations affiliated with the investment corporation
Structure of the investment corporation
The disclosure of information about this item is omitted because no material changes have been made to the statements about thestructure of the investment corporation in the latest securities report (submitted on February 27, 2018).

2. Operational policy and operating results(1) Operational policy
The disclosure of information about the operational policy is omitted because no material changes have been made to thestatements about the investment policy, investment targets and distribution policy in the securities report that was submitted on
February 27, 2018.
(2) Operating results(i) Overall situation in the fiscal period under reviewa.
Major events of the Investment Corporation
The Investment Corporation was established with capital contributed of 200 million yen (2,000 units) on August 5, 2015 by
the promoter of Takara Asset Management (hereinafter referred to as the “Management Company”) according to the Act on
Investment Trust and Investment Corporations (hereinafter referred to as the “Investment Trust Act”) and was registered with
the Kanto Local Finance Bureau on September 2, 2015 (registration number: No. 105 of the Director-General of the Kanto
Local Finance Bureau).
The Investment Corporation additionally issued investment units (45,166 units) by public offering on June 1, 2016 and waslisted on the infrastructure fund of Tokyo Stock Exchange, Inc. (hereinafter referred to as “TSE”) (security code: 9281) on June2, 2016. On July 1, 2016, the Investment Corporation issued new investment units (2,258 units) by third-party allotment. In
June 2017, the Investment Corporation increased capital by public offering and third-party allotment. As a result, the total
number of issued investment units as of May 31, 2018 is 117,976 units.
b.

Actual operating results for the fiscal period under review
During the fiscal period under review, the Japanese economy was generally on a recovery trend due to stable growth on
corporate earnings, along with steady recovery on personal earning based on a continuous improvement on the employment
situation and labor shortage.
With respect to the environment surrounding the renewable energy power facilities, etc., the issues of the increase of the
primary energy self-sufficiency rate and the reduction of the emission of greenhouse effect gas remain. Such issues in Japan’s
energy policy are expected to be resolved by introducing renewable energy power facilities, etc. that utilize natural energy.
Under these circumstances, according to the basic policy for the investment and management of assets set forth in the rules,
etc., the Investment Corporation acquired two solar power plant properties (for the acquisition cost of 1,423 million yen) on
December 1, 2017 and acquired one solar power plant property (for the acquisition cost of 484 million yen) on February 28,
2018 in order to expand external growth and increase distributions based on net profit.
As a result, the total assets held by the Investment Corporation at the end of the fiscal period under review were 21 properties(total value: 25,231 million yen (note)), and the total panel output was 55.8 MW.
(Note) This value is the total sum of the assessed values of the assets held. The assessed values of the assets held are the median values calculated by theInvestment Corporation according to Item 1, Paragraph 2, Article 36 of its certificate of incorporation from among the range of the assessedvalues of the respective power plants stated in the valuation report indicating the values as of May 31, 2018 that was obtained fromPricewaterhouseCoopers Sustainability LLC. The same applies hereinafter.

c.

Summary of financing
During the fiscal period under review, the Investment Corporation borrowed funds in an amount of 1,395 million yen on
December 1, 2017 and an amount of 475 million yen on April 27, 2018 to appropriate them to the funds for the acquisition of
three (3) solar power plants and the expenses related thereto (including national and local consumption taxes).
On the other hand, at the end of the fiscal period under review, the Investment Corporation made repayments under theagreements, and the loans at the end of the fiscal period under review were 13,097 million yen. As a result, the ratio of interestbearing debts to total assets was 53.4% at the end of the fiscal period under review.
For information, the rating obtained by the Investment Corporation as of May 31, 2018 is as shown below.
<Rating>
Credit rating agency

RatingTrend of rating

Japan Credit Rating Agency, Ltd.

A-

Stable

－

5 －

d.

Summary of business results and distributions
As a result of the operations described above, the business results for the fiscal period under review were operating revenueof 1,205 million yen, operating income of 473 million yen, ordinary income of 415 million yen and net income of 414 million
yen.
With respect to the distributions, according to the policy for the distribution of money that is set forth in Article 38 of thecertificate of incorporation of the Investment Corporation, the amount thereof shall exceed an amount equivalent to 90/100 of
the amount of profits available for dividends that is specified in Article 67-15 of the Act on Special Measures Concerning
Taxation. In addition, the amounts remaining after reserving such cash and deposits as the Investment Corporation considers
appropriate to prevent any impact on the long-term repair plan and meet the demand for funds (such as capital expenditure forthe new acquisition of assets for investment and maintenance and the improvement of the portfolio assets, the working capitalof the Investment Corporation, the repayment of debts and the payment of distributions) based on the amount of capital
expenditure estimated for each accounting period under the long-term repair plan, taking into account the conditions of credit
lines, etc. are distributed to an extent that exceeds the amount of profits as the distribution of money beyond profits (refund ofcontributions).
Under this distribution policy, the Investment Corporation decided to distribute 54,740 thousand yen which is theremaining amount after subtracting 415,740 thousands yen for expense of borrowing repayment and 36,067 thousands yen forinternal reserve from total of 506,279 thousands yen, which is consisted with 452,081 thousands yen for depreciation, 45,612
thousands yen for amortization of long-term prepaid expenses, 8,557 thousands yen for amortization of issuance expenses of
new investment units, and 28 thousands yen for amortization of establishment expenses.
As the result, the surplus earnings distribution for the fiscal period under review consists about 12.1% of total depreciation
expense. The distribution per investment unit is 3,976 yen.

(ii) Outlook for the following fiscal perioda.
Future outlook for operations
The Japanese economy is expected to remain on a stable recovery trend due to an increased exports, growth in capital
investment, improvement on labor conditions and personal incomes as well as other factors.
In respect to the environment surrounding the photovoltaic power facilities that are included in the renewable energy power
facilities, the capacity of the photovoltaic power facilities with not less than 10 kW (for non-residence use) that were approved(as defined in Paragraph 3, Article 9 of the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities (Act No. 108 of 2011, including amendments thereto) (hereinafter referred to as the“Renewable Energy Special Measures Act”; the Renewable Energy Special Measures Act before the amendment thereto by the
Act for Partial Revision of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities enforced on April 1, 2017 (Act No. 59 of 2016) (hereinafter referred to as the “Act for Partial
Revision of the Renewable Energy Special Measures Act”) may be especially referred to as the “Former Renewable Energy
Special Measures Act,” and the Renewable Energy Special Measures Act after the amendment thereto by the Act for Partial
Revision of the Renewable Energy Special Measures Act may be especially referred to as the “Current Renewable Energy
Special Measures Act”; in addition, if the context requires, such approval may include the approval defined in Paragraph 1,
Article 6 of the Former Renewable Energy Special Measures Act; the same applies hereinafter) after the feed-in tariff wasintroduced was approximately 66 GW as of September 30, 2017, and the capacity of such facilities that were actually installed
was approximately 31 GW. Based on the records of new approval and installation in the past, it is presumed that there weremany cases where the facilities were not installed after the development period had passed from the approval event when such
period extends for about one (1) year. Accordingly, it is judged that there are quite a lot of cases where development is not insight at the present time. Meanwhile, according to the Ministry of Economy, Trade and Industry, the estimates for long-term
energy demand and supply as of July 2015 forecast a volume of installation of approximately 64 GW for the fiscal year 2030
(including that for non-residence use of approximately 55 GW). The ratio of the photovoltaic power facilities with a renewableenergy capacity of not less than 10 kW that were installed only after the feed-in tariff started is 93.3% as of September 30,
2017. Given such circumstances, the Investment Corporation will make main investments in the photovoltaic power facilities
for the time being and acquire and manage assets according to the growth strategy described below.
b.

Future operational policy(i). External growth strategy
The Investment Corporation and the Management Company consider that the unique know-how of the Management
Company and the operational know-how on the overall photovoltaic power business that can be obtained from the sponsor,
Takara Leben Co., Ltd. (hereinafter referred to as “Takara Leben”; and Takara Leben as the sponsor may be hereinafter referred
to as the “Sponsor”) that has been developed should be able to contribute to the growth of the Investment Corporation in the－

6 －medium to long term. In addition, the Management Company will expand the information network among the entities otherthan Takara Leben and its subsidiaries (hereinafter referred to as the “Takara Leben Group”) and gather information about
assets in order to expand, increase and promote the opportunity to acquire the photovoltaic power facilities, etc. that are themain investment targets of the Investment Corporation. The Investment Corporation will aim to acquire the photovoltaic power
facilities, etc. from persons other than the Takara Leben group (including acquisition through the secondary transaction for thephotovoltaic power facilities, etc. that have been put into use for operation) based on the information about assets gathered by
the Management Company.
In addition, the Investment Corporation and the Management Company may receive a range of support for external growthfrom the Sponsor. This support should contribute to future external growth. The Investment Corporation intends to increase
assets by exercising the preferential right to negotiate purchases granted by the Sponsor. In addition, the Investment
Corporation considers that its right to receive information from the Sponsor under the sponsor support agreement should be
conducive to the future external growth of the Investment Corporation, because the Sponsor has such relations and networks
with and among the other enterprises, fund managers, sole proprietors and other persons engaging in the photovoltaic powerbusiness as have been established through the photovoltaic power projects in the past and, through such networks, has obtained
information about the sale of properties held by third parties(ii). Internal growth strategy
The Investment Corporation will contract out or have its lessees contract out the O&M operations of the photovoltaic
power facilities to the contractors with the relevant technical know-how and ensure the appropriate equipment inspection,
repair and equipment replacement of the assets acquired to maintain and increase the asset value from a medium- to longterm perspective and thereby secure stable income in the medium to long term.
In addition, the Investment Corporation will formulate the repair plan for each asset, considering the situations andcharacteristics of the managed assets, among other factors, upon consultation with the operators and contractors engaging in
O&M and make the necessary repairs and capital expenditures to maintain and increase the returns from the managed assets
in the medium to long term. Repairs and capital expenditures shall be judged by the Investment Corporation in considerationof the depreciation costs for the entire portfolio assets, in principle. However, if the Investment Corporation reasonably
judges that any repair or capital expenditure should contribute to the maintenance or improvement of the performance of the
managed assets, the said repair or capital expenditure shall be implemented early. In this regard, the costs necessary for the
maintenance, management, repair and other operations of the renewable energy power facilities, etc. that are incurred during
the period of operations (including taxes and other public charges imposed on the renewable energy power facilities, etc.,
capital expenditure for the renewable energy power facilities, etc., the price for new equipment or parts upon thereplacement of the equipment or parts that constitute the renewable energy power facilities, outsourcing fees and otherexpenses payable to the contractors engaging in O&M, and insurance premiums for the insurances with the Investment
Corporation as the policyholder or the insured that cover the renewable energy power facilities) shall be borne by the ownerand lessor of the renewable energy power facilities, etc. (the Investment Corporation), and the costs necessary for the daily
maintenance, management, repair and other operations of the renewable energy power facilities, etc. other than those to beborne by the owner and lessor shall be borne by the lessee, in principle.
c.

Forecasts of operating results
The forecast of operating results for the fiscal period ending November 30, 2018 (June 1, 2018 to Nov 30, 2018), fiscal
period ending May 31, 2019 (December 1, 2018 to May 31, 2019), and fiscal period ending November 30, 2019 (June 1, 2019
to November 30, 2019) are as follows. For the assumptions for the forecast operating results, please refer to the “Assumptions
for Forecasts of Operating Results for Fiscal Period ending Nov 30, 2018 (June 1, 2018 to Nov 30, 2018), fiscal period ending
May 31, 2019 (December 1, 2018 to May 31, 2019), and fiscal period ending November 30, 2019 (June 1, 2019 to November
30, 2019)” stated on page 7 below.
Distribution
Operatingrevenue

OperatingincomeOrdinary
incomeNet income

earnings
distribution)

Fiscal period ending
November 30, 2018

1,430

504

438

437

(6th fiscal period)

million yen

million yen

million yen

million yen－

per unit (excl.
surplus7 －3,160 yen

Surplusearnings
distribution perDistribution
per unit (incl.
surplusunit

earnings
distribution)

350 yen

3,510 yen

Fiscal period ending
May 31, 2019

1,468

527

457

456

(7th fiscal period)

million yen

million yen

million yen

million yen

Fiscal period ending
November 30, 2019

1,423

472

407

406

(8th fiscal period)

million yen

million yen

million yen

million yen

3,297 yen

334 yen

3,631 yen

2,935 yen

336 yen3,271 yen

(Note) The forecast figures stated above are calculated based on certain assumptions at the present time. Due to the future acquisition or disposal of therenewable energy power facilities, etc., the future additional issue of new investment units or change in the infrastructure market, interest rate orother conditions surrounding the Investment Corporation, among other causes, the actual operating revenue, operating income, ordinary income,net income, distribution per unit (excluding surplus earnings distribution), surplus earnings distribution per unit and distribution per unit
(including surplus earnings distribution) may change. In addition, the forecasts announced herein do not guarantee the amount of distributions
and surplus earnings distribution.

(iii) Facts arising after the settlement of accountsa.
Issuance of new investment units
The Investment Corporation has decided to issue new investment units at the board of meeting held on May 10, 2018 and May
21, 2018. Payment for each issuance new investment units are completed on June 1, 2018 and June 27, 2018. As the result,
Unitholders' net capital is 13,138,647 thousands yen and numbers of total investment unit issued is 138,574 units as of June 27,
2018.
1.

Issuance of new investment units through public offering

(1)
(2)

Total number of investment units to be offered:
Issue price (Offer Price)

19,618 Unit
113,384 yen per unit

(3)
(4)

Total amount of issue value (offer price)
Paid-in amount

2,224,367,312 yen
108,267 yen per unit

(5)
(6)

Total paid-in amountPayment date

2,123,982,006 yen
June 1, 2018

(7)

Intended use of funds

To appropriate part of the funds for the acquisition of the new
assets acquired2.

Issuance of new investment units by third-party allotment

(1)
(2)

Total number of investment units to be offered:
Issue price (Offer Price)

980 unit
108,267 yen per unit

(3)
(4)

Total amount of issue value (offer price)
Allottee and number of units allocated106,101,660 yen
Mizuho Securities Co., Ltd. 980 unit

(5)
(6)

Payment date
Intended use of funds

June 27, 2018
To maintain as cash in hand, which expected to be used for
acquiring specified assets (as set forth in Paragraph 1, Article
2 of the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, including amendments
thereto) or for planed repayment of debts

Change of number of investment units through above new issuance of new investment units are as follow
Total number of investment units as of May 31, 2018
Increased number of investment units through the public offering

117,976 units
19,618 units

Increased number of investment units through the third-party allotment
Total number of investment units after the public offering and the third-party allotment

980 units
138,574 unitsb.

Borrowing of funds

To appropriate part of the funds for the acquisition of the new assets acquired and to be acquired as set forth in “c. Acquisition ofassets” below and the expenses related thereto (including national and local consumption taxes), the Investment Corporation
executed the following loans on June 1, 2018.

－8 －Category

Amount ofborrowings

LenderInterest rate
(Note 1)

(Million yen)

Date ofextension of

Date of
final

loans

repayment

Repayment
methodSecurity(Note 3)(Note 2)

Mizuho Bank, Ltd.
(Arranger)

Longterm

Resona Bank, Limited(Arranger)

Interest rate

Sumitomo Mitsui Banking
Corporation

obtained byadding 0.5% to(Co-Arranger)
Asahi Shinkin Bank

3,024

the six-month
Japanese Yen

Ashikaga Bank, Ltd.
Iyo Bank, Ltd.

RepaymeJune 1, 2018

May 31,

TIBOR

2028

nt in
installme
nts inpart

UnsecuredUnguaranteed

Gunma Bank, Ltd.
Daishi Bank, Ltd.
(Note 1) Fees for loans, etc. paid to the lenders are not included.
The interest rate applicable to the interest paid on the date of the payment of interest (hereinafter referred to as the “Base Rate”) is the six-month
Japanese TIBOR that the JBA TIBOR Administration publicly announces on the date that occurs two (2) business days before the date of theexecution of the loan or the respective date of the payment of interest. The said Base Rate is reviewed for each date of payment of interest.
However, if no rate for the period of the calculation of interest is available, the Base Rate for the said period shall be calculated according to themethod set forth in the agreement. In addition, if such interest rate falls below 0%, the Base Rate shall be 0%. For information, the Base Rate forthe first period of the calculation of interest on the loan executed on June 1, 2018 is 0.12636%.
(Note 2) Part of the principal (the amount obtained by dividing the total amount of loans by 34) shall be firstly repaid on the last day of November, 2018 andshall be partially repaid at the end of each Fiscal Period ending May or November (if the said day falls on a non-business day, the business day
immediately following the said day, and if the said business day falls within the following month, the business day immediately preceding the saidnon-business day), and the remaining principal shall be repaid in a lump sum on the last due date of repayment on May 31, 2028.
(Note 3) The said loan is limited by the financial covenant to maintain the debt ratio (D/E ratio) and the indexes for assessing the ability to pay the principal
and interest (DSCR) of the Investment Corporation as of each date of closing accounts of the Investment Corporation. In the case of a violation of
the said limitation, the provision of security may be demanded, among other actions.
c.

Acquisition of assets
The Investment Corporation executed the purchase agreements for the solar power plants below on June 1, 2018.

PropertyNo.

Name of property

Location

Acquisition cost
(Million yen) (Note 1)

SellerS-22

LS Mie Yokkaichi

Yokkaichi-shi, Mie740

Takara Leben Co., Ltd.

S-23

LS Sakuragawa Nakaizumi

Sakuragawa-shi, Ibaraki

980

Takara Leben Co., Ltd.

S-24

LS Shirahama

Kamitonda-Cho,
Nishimuro-gun, Wakayama

2,810

Takara Leben Co., Ltd.

S-25

LS Takahagi

Takahagi-shi, Ibaraki

400

Takara Leben Co., Ltd.

4,930

－

Total portfolios(Note) The acquisition costs described above are the purchase price stated in the purchase agreement for the respective assets acquired (exclusive of thecontract fees and other expenses for the acquisition of assets, fixed assets, city planning, consumption and other taxes and other charges) androunded down to the nearest million yen.

－

9 －(iv) Forecast of Operation
Assumptions for Forecasts of Operating Results for Fiscal Period ending November 30, 2018 (June 1, 2018 to November 30, 2018),
Fiscal Period ending May 31, 2019 (December 1, 2018 to May 31, 2019) and Fiscal Period ending November 30, 2019 (June 1, 2019
to November 30, 2019)
Items

Assumptions
Fiscal period ending November 30, 2018 (6th fiscal period): June 1, 2018 to November 30, 2018 (183 days)

Accounting period

Fiscal period ending May 31, 2019 (7th fiscal period): December 1, 2018 to May 31, 2019 (182 days)
Fiscal period ending November 30, 2019 (8th fiscal period): June 1, 2019 to November 30, 2019 (183days)
・The assumption is based on a holding of 25 properties in total: the breakdown of them is 21 properties
held as of May 31, 2018 (hereinafter referred to as the “Portfolio Assets”), 4 properties acquired on June

Managed assets

1, 2018 (hereinafter referred to as the “Acquired Assets”).
・The assumptions for forecasting the operating results are that there will be no change to the assets undermanagement (such as the acquisition of new assets and the disposal of the Portfolio Assets) until the endof the fiscal period ending November 30, 2019 (8th fiscal period).
・There is a possibility that in reality, there may be a change due to the acquisition of new assets otherthan the Acquired Assets or the disposal of the Portfolio Assets, among other causes.
・The revenues from the lease of 10 properties acquired on June 2, 2016 that are included in the Portfolio
Assets are calculated based on the minimum rent guaranteed, which is set forth in the agreement for thelease of the photovoltaic power facilities, etc. that is in force and in effect as of today’s date, in theamount equivalent to the forecast revenues from sales of electric power for the relevant month, which is
calculated in consideration of the forecast electric power output (probability of exceedance P(percentile) 50) calculated by a third party based on the database of annual solar radiation by hours andother data. The revenues from the lease of the LS Kamisu Hasaki that was acquired on February 7,
2017 , 7 properties acquired on June 1, 2017, LS Sakuragawa Shimoizumi and LS Fukushima Yamatsurithat were acquired on December 1, 2017, and LS Shizuoka Omaezaki that was acquired on February 27,
2018 are calculated based on the sum of the minimum rent guaranteed, which is set forth in the

Operating revenue

agreement for the lease of the photovoltaic power facilities, etc. that is in force and effect as of today’s
date, and the variable rent linked to the actual output, which is based on the assumption that the electric
power output is the forecast electric power output (probability of exceedance P (percentile) 50)
calculated by a third party based on the database of annual solar radiation by hours and other data. The
revenues from the lease of the Acquired Assets are calculated based on the sum of the minimum rent
guaranteed, which is set forth in the agreement for the lease of the solar power facilities, etc. that is
expected to be in force and in effect on the date of acquisition and the variable rent linked to the actual
output, which is based on the assumption that the electric power output is the forecast electric power
output (probability of exceedance P (percentile) 50) calculated by a third party based on the database ofannual solar radiation by hour and other data.
・The assumption for operating revenue is the revenues from the lease, not the disposal of assets.
・The assumption for the revenues from the lease is that there will be no default in the payment of rent or
non-payment of rent.
・Of the expenses for the lease business that are the main items of the operating expenses, the items otherthan depreciation are calculated based on the actuals for the past, reflecting the variable factors of
expenses. In addition, the expenses for the Acquired Assets are calculated based on the actuals for the
past and the estimates obtained from the respective contractors, among other data, by referring to the

Operating expenses

information provided by the former owners of the respective Acquired Assets reflecting the variablefactors of expenses.
・In the acquisition of the solar power facilities, etc., the Investment Corporation settles the fixed assets
and other taxes with the seller proportionately in accordance with the period of ownership. The amountof the said settlement will be included in the acquisition cost for the fiscal year of acquisition.
Accordingly, the fixed assets and other taxes for the fiscal year 2018 on the Acquired Assets are notposted under expenses, In addition, the total amount of the settlement of the fixed assets and other taxes－

10 －ItemsAssumptions
to be included in the acquisition costs for the Acquired Assets is estimated at 39 million yen. The fixed
assets and other taxes on the Portfolio Assets and Acquired Assets are estimated at 74 million yen for
the fiscal period ending November 30, 2018 (6th fiscal period), 87 million yen for the fiscal period
ending May 31, 2019 (7th fiscal period) and 109 million yen for the fiscal period ending November 30,
2019 (8th fiscal period). The fixed assets and other taxes for Acquired Assets are expected to berecorded as expenses from the fiscal period ending May 31, 2019 (7th fiscal period) and estimated at 16
million yen for the fiscal period ending May 31, 2019 (7th fiscal period), and 32 million yen for the
fiscal period ending November 30, 2019 (8th fiscal period).
・The expenses for the maintenance and management of the solar power facilities are estimated at 83
million yen respectively for the fiscal period ending November 30, 2018 (6th fiscal period), the fiscal
period ending May 31, 2019 (7th fiscal period), and the fiscal period ending November 30, 2019 (8thfiscal period). The utilities expenses are estimated at 4 million yen respectively for the fiscal period
ending November 30, 2018 (6th fiscal period), the fiscal period ending May 31, 2019 (7th fiscal period),
and the fiscal period ending November 30, 2019 (8th fiscal period).
・The fees for operators are estimated at 20 million yen the fiscal period ending November 30, 2018 (6thfiscal period), 21 million yen for the fiscal period ending May 31, 2019 (7th fiscal period), and 20

Operating expenses

million yen for the fiscal period ending November 30, 2019 (8th fiscal period)
・Depreciation expenses are calculated, including incidental expenses, according to the straight-line
method and estimated at 562 million yen for the fiscal period ending November 30, 2018 (6th fiscal
period), 562 million yen for the fiscal period ending May 31, 2019 (7th fiscal period), and 554 million
yen for the fiscal period ending November 30, 2019 (8th fiscal period).
・The organization expenses and the expenses for the issue of new investment units are estimated at nineNon-operating
expensesmillion yen respectively for fiscal period ending November 30, 2018 (6th fiscal period) and the fiscal
period ending May 31, 2019 (7th fiscal period), and four million yen for the fiscal period ending
November 30, 2019 (8th fiscal period).
・Interest expenses and other borrowing-related expenses are estimated at 61 million yen for the period
ending November 30, 2018 (6th fiscal period), 59 million yen respectively for the fiscal period ending
May 31, 2019 (7th fiscal period) and the fiscal period ending November 30, 2019 (8th fiscal period).
・The balance of loans of the Investment Corporation as of May 31, 2018 is 13,097 million yen. The
assumptions for the said loans are that according to the agreement, the repayment of the said loans will
be made on November 30, 2018 and May 31, 2019, and that the amount of the repayment is 415 million
yen for each repayment date.
・The assumption is that the Investment Corporation will obtain loans in the total amount of 3,024 million

Loans

yen from the qualified institutional investors specified in Item 1, Paragraph 3, Article 2 of the Financial
Instruments and Exchange Act (limited only to the institutional investors set forth in Item 1 b. (2),Paragraph 1, Article 67-15 of the Act on Special Measures Concerning Taxation) on June 1, 2018.
・The ratio of interest-bearing debts to total assets (LTV: loan to value) at the end of the fiscal period
ending November 30, 2018 (6th fiscal period) is estimated at about 53.6%.
・In the calculation of the ratio of interest-bearing debts to total assets (LTV: loan to value), the following
calculation formula is used:
Ratio of interest-bearing debts to total assets (LTV: loan to value) = total amount of interest-bearing
debts / total amount of assets x 100
・The total number of issued investment units as of the date of this document is assumed to be 138,574

Total number of issued
investment units

units. The assumption is that there will be no change in the number of investment units due to the issueof new investment units and other reasons until the end of the fiscal period ending November 30, 2019(8th fiscal period).
・Distribution per unit (excluding surplus earnings distribution), surplus earnings distribution per unit anddistribution per unit (including surplus earnings distribution) are calculated based on the forecast
number of investment units issued at the end of the fiscal period, which is 138,574 units.

Distribution per unit

・Distribution per unit (excluding surplus earnings distribution) is calculated based on the assumption that(excl. surplus earnings
distribution)

all the profits will be distributed according to the policy for the distribution of money that is set forth in
the rules of the Investment Corporation.
－

11 －ItemsAssumptions
・There is a possibility that distribution per unit (excluding surplus earnings distribution) may change due
to a change of the lessees, a change in the rent revenues due to the amendment of the terms andconditions of the lease agreement or unexpected repair and various other causes.
・Surplus earnings distribution per unit is calculated, which is in accordance with the policy for the
distribution, set forth in the certificate of incorporation of the Investment Corporation and the guidelines
for investment that are the internal rules of the Management Company.
・The policy of the Investment Corporation is to generally distribute all the amounts remained after
reserving such cash and deposits as the Investment Corporation considers appropriate to prevent any
impact on the long-term repair plan and meet the demand for funds (such as for the new acquisition ofassets, for the investment and maintenance and improvement of the Portfolio Assets, working capital of
the Investment Corporation, repayment of debts and payment of distributions) based on the amount of
capital expenditure estimated for each fiscal period under the long-term repair plan, taking into accountthe conditions of the credit line, etc. The amounts exceeding the amount of profits will be distributed as
the distribution of money beyond profits (decrease of contributions). However, such distribution islimited to an extent that will have no adverse impact on the financial position of the Investment
Corporation and to the amount stipulated in laws (including the regulations established by theInvestment Trusts Association, Japan).
・According to the policy described above, the amounts remaining after subtracting expenses ofborrowing repayment and internal reserve that the Investment Corporation considers appropriate todeposit for its future external growth, from the total of expenses that serve as internal reserve, such as

Surplus earnings
distribution per unit

depreciation, amortization of long-term prepaid expenses, amortization of issuance expenses of new
investments units, and amortization of establishment expenses are divided by the forecast number ofinvestment units issued at the end of the fiscal period, which is 138,574 units respectively for the fiscal
period ending November 30, 2018 (6th fiscal period), the fiscal period ending May 31, 2019 (7th fiscal
period), and the fiscal period ending November 30, 2019 (8th fiscal period) to determine the surplus
earnings distribution per unit. The total surplus earnings distribution is estimated at 48 million yen for
the fiscal period ending November 30, 2018 (6th fiscal period) and 46 million yen respectively for the
fiscal period ending May 31, 2019 (7th fiscal period) and the fiscal period ending November 30, 2019(8th fiscal period).
・Distribution of money beyond profits (refund of contributions) may not be paid, considering the
economic environment, the market conditions for the renewable energy power generation business, thefinancial position of the Investment Corporation and other circumstances in a comprehensive manner,
including other possible uses of funds such as appropriation to repair and capital expenditure, therepayment of loans, funds for the acquisition of new properties and the acquisition of treasury
investment units.
・Distribution of money beyond profits (refund of contributions) involves a decrease in funds on hand.
Accordingly, there is a possibility of a shortage of funds on hand in the event that capital expenditure
beyond the estimate of the Investment Corporation is needed due to any sudden events and other causes.
There is also a possibility that such a decrease in funds on hand may limit the funds for the flexible
acquisition of properties. In addition, the amount of distribution of money beyond profits (refund ofcontributions) will be deducted from the total amount of unitholders’ capital or the capital surplus.
・The assumption is that there will be no amendments to the laws and regulations, tax systems,

Otheraccounting standards, listing rules that Tokyo Stock Exchange, Inc. establishes, rules of the Investment
Trusts Association, Japan and other rules that affect the forecast figures described above.
・The assumption is that there will be no unexpected material change in the general economic trends, themarket conditions for the photovoltaic power facilities, the real-estate market conditions and othercircumstances.

－

12 －

(3) Investment risk
The disclosure of investment risk is omitted because no material changes have been made to the statements about investment
risk in the securities report that was submitted on February 27, 2018.

－

13 －

3. Financial Statements(1) Balance sheets(Unit: Thousand yen)Previous term
(As of November 30, 2017)
AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Leasehold right
SoftwareTotal intangible assets
Investments and other assets
Guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Deferred organization expenses
Investment unit issuance expenses
Total deferred assets
Total assets

－

14 －

Current term
(As of May 31, 2018)

1,312,797
5,578
31,123
818,09415
2,167,608

2,000,428
15,29958,04862,946
11
19,0792,155,814

7,286
-159
7,127
6,198,864-237,837
5,961,026
11,372,576-435,934
10,936,642
197,192-46,887
150,305
3,523,094
756
20,578,953

7,286
-319
6,967
6,640,529-397,735
6,242,793
12,651,444-703,218
11,948,225
217,267-71,474
145,793
3,633,796
6,079
21,983,655

173,105
1,064
174,169

246,491912
247,403

10,000108,74720
118,767
20,871,889

10,000116,61920
126,639
22,357,697

195
32,05432,25023,071,748

167
24,99725,16524,538,677

(Unit: Thousand yen)Previous term
(As of November 30, 2017)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus
Unappropriated retained earnings (undisposedloss) (-)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

－

15 －

Current term
(As of May 31, 2018)

16,720720,941
78,444923
750
16817,796

12,384
830,941
102,024
220
851
2,555
14
948,991

10,922,235
11
10,922,246
11,740,043

12,266,764
9
12,266,774
13,215,765

10,963,186
10,963,186

10,963,186-54,622
10,908,563

368,519414,348368,519
11,331,705※１ 11,331,705
23,071,748

414,348
11,322,911※１ 11,322,911
24,538,677

(2) Statement of income(Unit: Thousand yen)Previous term
Current term
(From June 1, 2017 to November (From December 1, 2017 to May
30, 2017)
31, 2018)
Operating revenue
Rent revenue - renewable energy power production
facilities, etc.
Total operating revenue
Operating expenses
Rent expenses on renewable energy power production
facilities, etc.
Asset management fee
Asset custody fee and administrative service fees
Directors' compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Interest on refund
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing-related expenses
Amortization of deferred organization expenses
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (-)

－

16 －

※１ 1,062,234※１ 1,205,371

1,062,234

1,205,371※１ 541,497※１ 615,494

64,4196,042
2,400
24,904
639,264
422,969

72,2597,416
2,400
34,259731,829473,542

4
23
0
28

7
1,075
1,082

36,360
8,624
28
8,557
53,569369,428
369,428923-5918
368,5099368,519

40,512
10,40328
8,557
59,501
415,123
415,123852
3
855
414,26780
414,348

(3) Statement of unitholders’ equity
Previous term (From June 1, 2017 to November 30, 2017)(Unit: Thousand yen)
Unitholders’ equity
Surplus
Unitholders’ capital Unappropriated(net value)
retained earnings(undisposed loss)(-)
Balance at the beginning of theterm

4,705,280

Total unitholders’equityTotal surplus

149,319

Total net assets

149,319

4,854,599

4,854,599-

6,257,906

6,257,906

Changes of items during period
Issuance of new investment
units

6,257,906

Dividends of surplus-149,309-149,309-149,309-149,309

Net income

368,509368,509368,509368,509

Total changes of items during
the term

6,257,906

219,199

219,199

6,477,106

6,477,106

Balance at the end of the term

※１ 10,963,186

368,519

368,519

11,331,705

11,331,705

Current term (From December 1, 2017 to May 31, 2018)(Unit: Thousand yen)
Unitholders’ equity
Unitholders’ capital (net value)

Surplus

UnappropriatedDeduction from
Unitholders’ capital retained earnings
Unitholders’ capital
unitholders’(net value)(undisposed loss)
capital(-)
Balance at the beginning of theterm

10,963,186

10,963,186

Total surplus

368,519

368,519

Dividends of surplus-368,439-368,439

Net income

414,267

414,267

Changes of items during period-54,622

Surplus earning distribution

Total changes of items during
the term
Balance at the end of the term-

-54,622-54,62245,82845,828※1 10,963,186-54,622

10,908,563

414,348414,348(Unit: Thousand yen)
Unitholders’ equity
Total Unitholders’equityBalance at the beginning of theterm

Total net assets

11,331,705

11,331,705-54,622-54,622

Changes of items during period
Surplus earning distribution-54,622－

17 －Dividends of surplus-368,439-368,439

Net income

414,267

414,267

Total changes of items during
the term-8,794-8,794

Balance at the end of the term

11,322,911

11,322,911

－

18 －

(4) Statement of distribution of money
Previous term
(From June 1, 2017 to November
30, 2017)

Current term
(From December 1, 2017 to May
31, 2018)

I. Unappropriated retained earnings
II. Additional surplus earnings distribution

368,519,439 yen

414,348,094 yen

Deduction from unitholders’ capital
III. Amount of distribution

54,622,888 yen
423,061,936 yen（3,586) yen

54,740,864 yen
469,072,576 yen(Amount of distribution per investment unit)
Distribution of profits included(Distribution of profits per unit included)
Surplus earnings distribution included(Surplus earnings distribution per unit included)
IV. Retained earnings carried forward
Method of calculation of amount of distribution

368,439,048 yen(3,976) yen
414,331,712 yen(3,123) yen
54,622,888 yen(3,512) yen
54,740,864 yen(463) yen
80,391 yen(464) yen
16,382 yen

According to Paragraph 1,

According to Paragraph 1,

Article 38 of the certificate ofincorporation of the Investment

Article 38 of the certificate ofincorporation of the Investment

Corporation, the amount ofCorporation, the amount of
distribution shall exceed an amount distribution shall exceed an amountequivalent to 90/100 of the amount equivalent to 90/100 of the amountavailable for dividends as set forth available for dividends as set forthin Article 67-15 of the Act on
Special Measures Concerning

in Article 67-15 of the Act on
Special Measures Concerning

Taxation.
The distribution to be paid for

Taxation.
The distribution to be paid forthe fiscal period under review is the the fiscal period under review is the
distribution of profits in the total
distribution of profits in the total
amount of 368,439,048 yen
equivalent to the unappropriatedamount of 414,331,712 yenequivalent to the unappropriatedretained earnings (368,519,439
yen) excluding the portion

retained earnings (414,348,094
yen) excluding the portion

corresponding to the distribution
corresponding to the distribution
per investment unit of less than one per investment unit of less than one
yen.
In addition, according to theyen.
In addition, according to thepolicy for the distribution of money policy for the distribution of moneythat is set forth in Paragraph 2,that is set forth in Paragraph 2,
Article 38 of the certificate ofincorporation, the Investment

Article 38 of the certificate ofincorporation, the Investment

Corporation decided to pay the
distribution of money exceeding

Corporation decided to pay the
distribution of money exceeding

profits (refund of contributions that profits (refund of contributions that
constitute distribution upon theconstitute distribution upon thedecrease of contributions under the decrease of contributions under the
tax laws) in the amount oftax laws) in the amount of
54,622,888 yen.
As a result, the distribution per

54, 740,864 yen.
As a result, the distribution perinvestment unit is 3,586 yen.

investment unit is 3,976 yen.

(Note) The policy of the Investment Corporation is to distribute the amounts remaining after reserving such cash and deposits as the Investment Corporationconsiders appropriate to prevent any impact on the long-term repair plan and meet the demand for funds (such as capital expenditure for the newacquisition of assets for investment and the maintenance and improvement of the portfolio assets, working capital of the Investment Corporation,
repayment of debts and payment of distributions) based on the amount of capital expenditure estimated for each accounting period under the long-term
repair plan, taking into account the conditions of the credit line, etc., to an extent that exceeds the amount of profits, as the distribution of money

－

19 －

exceeding profits (refund of contributions). Under this distribution policy, the Investment Corporation decided to distribute 54,740 thousand yen which is
the remaining amount after subtracting 415,740 thousands yen for expense of borrowing repayment and 36,067 thousands yen for internal reserve fromtotal of 506,279 thousands yen, which is consisted with 452,081 thousands yen for depreciation, 45,612 thousands yen for amortization of long-term
prepaid expenses, 8,557 thousands yen for amortization of issuance expenses of new investment units, and 28 thousands yen for amortization of
establishment expenses.

(5) Statement of cash flows(Unit: Thousand yen)Previous term
Current term
(From June 1, 2017 to November (From December 1, 2017 to May
30, 2017)
31, 2018)
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment unit issuance expenses
Amortization of deferred organization expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable(negative figures show increases)
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in operating accounts payable(negative figures show decreases)
Increase (decrease) in accounts payable - other
Increase (decrease) in deposits received
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Dividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the term
Cash and cash equivalents at the end of the term

－

20 －

369,428
412,7408,557
28-436,360415,123
452,0818,557
28-740,512-3,191-9,721-807,217

755,147

13,095-4,33663,098-323-8,174-66,581324
18,1384-36,360-686-18,903

18,618
1,805-26,925-7,872-19,083
1,623,930
7-40,292-924
1,582,720-12,910,745-119,128-13,029,874-1,854,688-73,385-1,928,073

7,966,000-360,470
6,257,906-12,775-149,591
13,701,068
652,290
660,506※1 1,312,797

1,870,000-415,470-366,922-54,622
1,032,984
687,630
1,312,797※1 2,000,428

(6) Notes regarding the premise of going concern
Not applicable.
(7) Notes regarding the matters relating to important accounting policies
1. Method of depreciation of non- ①Property, plant and equipment
current assets

The straight-line method is used.
For information, the useful life of major property, plant and equipment is as shown below.
Buildings
Structures

23 years
19 years to 22 years

Machinery and equipment
22 years to 25 years
Tools, furniture and fixtures
3 years to 6 years②Intangible assets
The straight-line method is used.
For information, the useful life is as shown below.
Software5 years③Long-term prepaid expenses
The straight-line method is used.
2. Method of accounting of deferred ①Deferred organization expenses
assetsThe deferred assets are amortized according to the straight-line method (for five years).
(ii) Investment unit issuance expenses
The deferred assets are amortized according to the straight-line method (for three years).

3. Standards for posting revenues and Method of accounting of fixed assets and other taxes
expenses
For the fixed assets, city planning, depreciable assets and other taxes on the infrastructure
and other similar assets held, the Investment Corporation adopts the method of posting theamount of taxes assessed for the relevant accounting period as rent expenses.
In this regard, the Investment Corporation does not post the amount of settlement of fixed
assets and other taxes that it pays to the transferors, etc. upon the acquisition of theinfrastructure and other similar assets (namely, the amount equivalent to the fixed assets andother taxes) under rent expenses, and includes the said amount in the acquisition cost for thesaid infrastructure and other similar assets.
The amount equivalent to the fixed assets and other taxes included in the acquisition costfor the infrastructure and other similar assets for the fiscal period under review is 6,911
thousand yen.
4. Scope of funds included in thestatement of cash flows

The funds (cash and cash equivalents) indicated in the statement of cash flows are cashon hand and deposits that can be drawn at any time and short-term investments with an
insignificant risk of fluctuation in value whose date of maturity occurs within three (3)months from the date of the acquisition thereof that can be easily realized.

5. Other important basic matters for the Method of accounting of consumption and other similar taxes
preparation
statementsoffinancial

With respect to the accounting of national and local consumption taxes, these taxes are
not included in the accounting of each account title. However, the consumption taxes, etc.
not to be deducted for the acquisition of assets are posted under long-term period expenses.

－

21 －

(8) Notes regarding financial statements[Notes regarding the balance sheet]*1 Amount of minimum net assets as set forth in Paragraph 4, Article 67 of the Investment Trust Act
Previous term
(From June 1, 2017 to November 30,
2017)(Unit: Thousand yen)
Current term
(From December 1, 2017 to May 31,
2018)

50,00050,000[Notes regarding the statement of income]Breakdown of profit or loss of lease business - renewable energy power production facilities, etc.
(Unit: Thousand yen)Previous term
Current term
(From June 1, 2017 to (From December 1, 2017 toNovember 30, 2017)
May 31, 2018)

A. Operating revenue - lease of renewable energy power production
facilities, etc.
Lease revenue - renewable energy power production facilities, etc.
(Minimum rent guaranteed)

1,015,514

1,171,787

46,70910

33,56913

1,062,234

1,205,371(Outsourcing fees - management)(Taxes and other public charges)

69,32632,05877,70451,096(Utilities expenses)(Insurance expenses)

2,865
7,159

4,742
7,775

(Depreciation)(Payment of land rent)

412,588
16,737451,929
21,326(Other lease business)

761

919

541,497

615,494

520,736

589,877(Variable rent linked to actual output)(Incidental revenues)
Total operating revenue - lease of renewable energy power
production facilities, etc.
B. Business expenses - lease of renewable energy power production
facilities, etc.
Lease expenses - renewable energy power production facilities,
etc.

Total business expenses - lease of renewable energy power
production facilities, etc.
C. Profit or loss of lease business - renewable energy power production
facilities, etc. (A-B)
2. Transaction value with major unitholders

Previous term

Transaction value of business transactions
Operating revenue(Unit: Thousand yen
Current term

(From June 1, 2017 toNovember 30, 2017)(From December 1, 2017
to May 31, 2018)

1,062,223

1,205,357

Outsourcing fees - management (operators’ fees)
Transaction value - other than business transactions

12,686

15,496

Acquisition of photovoltaic power facilities, etc.

12,780,000

1,907,000－

22 －[Notes regarding the statement of unitholders’ equity]*1 Total number of authorized investment units and total number of issued investment units
Previous term
(From June 1, 2017 to November 30,
2017)
Total number of authorized investment
units

Current term
(From December 1, 2017 to May 31,
2018)

10,000,000 units

10,000,000 units

117,976 units

117,976 units

Total number of issued investment units[Notes regarding the statement of cash flows]*1 Relationship between the balance of cash and cash equivalents at the end of the fiscal period and the amounts of account titles
stated on the balance sheet(Unit: Thousand yen)Previous term
(From June 1, 2017 to November 30,
2017)

Current term
(From December 1, 2017 to May 31,
2018)

Cash and deposits

1,312,797

2,000,428

Cash and cash equivalents

1,312,797

2,000,428[Notes regarding lease transaction]
Operating lease (on the part of the lender)
Future lease payments(Unit: Thousand yen)Previous term
As of November 30, 2017

Current term
As of May 31, 2018

Less than 1 year
More than 1 year

2,097,281
16,817,576

2,301,813
17,511,267

Total

18,914,858

19,813,080[Notes regarding financial instruments]
1. Matters regarding the state of financial instruments(1) Action policy for financial instruments
The Investment Corporation will secure funds for appropriation to the acquisition of new assets to be managed andthe repayment of loans by borrowings from financial institutions or the issue of investment units, among other means.
The basic policy is to establish stable and sound financial management to achieve the maintenance and increase ofrevenues and the growth of the scale and value of the managed assets in the medium to long term.
(2) Details of financial instruments and risk thereof and risk management system
Long-term loans payable are one of the means to secure the funds for the acquisition of assets to be managed andinvolve the risk of fluctuations in interest rates and liquidity, among others. This risk is reduced through the appropriate
control of various indexes, especially the general application of the upper limit of the ratio of interest-bearing debts,
which is 60%, as well as the appropriate balancing of the loan period and the interest rate type and diversification oflenders.
(3) Supplementary explanation of matters regarding the market value of financial instruments
The market value of financial instruments includes the value quoted on the market and the value reasonably
determined when the value is not quoted on the market. In determining such value, certain assumptions are applied, andthus the value may differ if any different assumptions are applied.
2. Matters regarding the market value of financial instruments
The value recorded on the balance sheet and the market value as of November 30, 2017 and the difference between them
are as shown below. In addition, those whose market value cannot be determined in any way are not included in the table－23 －below.
(Unit: Thousand yen)Amount posted on thebalance sheet(1) Cash and deposits

Market value

Difference

1,312,797

1,312,797-

1,312,797

1,312,797-

720,941

720,941-(2) Long-term loans payable

10,922,235

10,922,235-

Total liabilities

11,643,176

11,643,176-

Total assets(1) Current portion of long-term loans
payableThe value recorded on the balance sheet and the market value as of May 31, 2018 and the difference between them are
as shown below. In addition, those whose market value cannot be determined in any way are not included in the table below.
(Unit: Thousand yen)Amount posted on thebalance sheet(1) Cash and deposits

Market value

Difference

2,000,428

2,000,428-

Total assets

2,000,428

2,000,428-(1) Current portion of long-term loans
payable830,941

830,941-(2) Long-term loans payable

12,266,764

12,266,764-

Total liabilities

13,097,705

13,097,705-(Note 1) Method of determination of the market value of financial instruments
Assets(1) Cash and deposits
These items are settled in a short period of time, and thus the market value almost equals the book value. Accordingly, the book value is used.
Liabilities(1) Current portion of long-term loans payable, (2) Long-term loans payable
Long-term loans payable at a variable interest rate will reflect the market interest rate for a short period of time, and the market value thereof willalmost equal the book value thereof. Accordingly, the book value is used.
(Note 2) Amount of repayment of monetary claims scheduled after the date of closing accounts (November 30, 2017)

Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Cash and deposits

1,312,797

-

-

-

-

-

Total

1,312,797

-

-

-

-

-

Amount of repayment of monetary claims scheduled after the date of closing accounts (May 31, 2018)(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Cash and deposits

2,000,428

-

-

-

-

-

Total

2,000,428

-

-

-

-

-

(Note 3) Amount of repayment of long-term loans payable scheduled after the date of closing accounts (November 30, 2017)

－

24 －

(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Long-term loans payable
Total

720,941

720,941

720,941

720,941

720,941

8,038,470

720,941

720,941

720,941

720,941

720,941

8,038,470

Amount of repayment of long-term loans payable scheduled after the date of closing accounts (May 31, 2018)(Unit: Thousand yen)More than 1 More than 2 More than 3 More than 4
Not more than year and not years and not years and not years and More than 5
1 yearmore than 2 more than 3 more than 4 not more
years
years
years
years
than 5 years(1) Long-term loans payable
Total

830,941

830,941

830,941

830,941

830,941

8,943,000

830,941

830,941

830,941

830,941

830,941

8,943,000[Notes regarding securities]
Previous term (As of November 30, 2017)
Not applicable.
Current term (As of May 31, 2018)
Not applicable.
[Notes regarding derivative transactions]
Previous term (As of November 30, 2017)
Not applicable.
Current term (As of May 31, 2018)
Not applicable.
[Notes regarding retirement benefits]
Previous term (As of November 30, 2017)
Not applicable.
Current term (As of May 31, 2018)
Not applicable.
[Notes regarding tax effect accounting]
1. Breakdown of deferred tax assets and deferred tax liabilities by cause(Unit: Thousand yen)Previous term
As of November 30, 2017

Current term
As of May 31, 2018

Accrued business tax not deductible from taxable
income15

11

Total deferred tax assets

15

11

Deferred tax assets, net

15

11

－

25 －

2. Breakdown of major items that cause material differences between the effective tax rate designated by laws and the ratio of
the burden of corporate tax, etc. after the application of tax effect accounting(Unit: %)Previous term
As of November 30, 2017
Effective statutory tax rate
(Adjustment)
Dividends paid,

includedin

deductible

expenses
Other
Ratio of burden of corporate tax, etc. after theapplication of tax effect accounting

Current term
As of May 31, 201831.74%

31.74%-31.65%-31.68%

0.16%

0.15%

0.25%

0.21%

[Notes regarding equity earnings of affiliate companies]
Previous term (As of November 30, 2017)
Not applicable.
Current term (As of May 31, 2018)
Not applicable.
[Notes regarding related party transaction]
1. Parent company and major corporate unitholders, among others
Previous term (From June 1, 2017 to November 30, 2017)

Category

Name ofcompany,
etc. orpersons

Address

Capital stockorBusiness
investments description
in capitalor(Thousand occupation
yen)

1-8-2
TakaraMajor
Marunouchi,
Leben Co.,4,819,809
unitholders
Chiyoda-ku,
Ltd.
Tokyo

Real estatebusiness

Ratio ofholding ofinvestment
units, etc.
(ratio ofinvestment
units, etc.
held)

14.2%

Relationship
Concurrent
holding of Businessposition as relations
officer, etc.

Not
Major
applicable unitholders

Transaction
Specifics ofvaluetransaction(thousandyen)

Account
title

Acquisitionofphotovoltaic 12,780,000
power
facilities, etc.

-

Receipt of
rents

1,062,223

Operatingaccounts
receivable

Payment ofoperators’fees

12,686-

Balance atthe end of
the fiscal
period(thousand
yen)

-

5,578

(Note 1) The transaction value described above does not include consumption taxes, and the balance at the end of the fiscal period includes consumption taxes.
(Note 2) The terms and conditions for the transaction are decided by referring to the market value and other information.

－

26 －

-

Current term (From December 1, 2017 to May 31, 2018)

Category

Name ofcompany,
etc. orpersons

Address

Capital stockorBusiness
investments description
in capitalor(Thousand occupation
yen)

1-8-2
TakaraMajor
Marunouchi,
Leben Co.,4,819,809
unitholders
Chiyoda-ku,
Ltd.
Tokyo

Real estatebusiness

Ratio ofholding ofinvestment
units, etc.
(ratio ofinvestment
units, etc.
held)

14.2%

Relationship
Concurrent
holding of Businessposition as relations
officer, etc.

Not
Major
applicable unitholders

Specifics oftransaction

Transaction
value(thousandyen)

Account
title

Acquisitionofphotovoltaic
power
facilities, etc.

1,907,000-

Receipt ofrents

Operating
1,205,357 accounts
receivable

Payment ofoperators’fees

15,496

Balance atthe end of
the fiscal
period(thousandyen)-

15,299-(Note 1) The transaction value described above does not include consumption taxes, and the balance at the end of the fiscal period includes consumption taxes.
(Note 2) The terms and conditions for the transaction are decided by referring to the market value and other information.

2. Affiliated companies, etc.
Previous term (From June 1, 2017 to November 30, 2017)
Not applicable.
Current term (From December 1, 2017 to May 31, 2018)
Not applicable.
3. Companies under common control, etc.
Previous term (From June 1, 2017 to November 30, 2017)
Not applicable.
Current term (From December 1, 2017 to May 31, 2018)
Not applicable.
4. Officers and major individual unitholders, among others
Previous term (From June 1, 2017 to November 30, 2017)
Not applicable.
Current term (From December 1, 2017 to May 31, 2018)
Not applicable.
[Notes regarding asset retirement obligations]
Previous term (As of November 30, 2017)
Not applicable.
Current term (As of May 31, 2018)
Not applicable.

－

27 －

-

[Notes regarding real estate for rent, etc.]
The Investment Corporation has renewable energy power production facilities, etc. The amount thereof recorded on the balance
sheet, the amount of change in the current term and the value thereof assessed at the end of the term are as shown below.
(Unit: Thousand yen)Previous term
(From June 1, 2017 toNovember 30, 2017)

Current term
(From December 1, 2017 to
May 31, 2018)

Amount posted on the balance sheet(Note 2)
Balance at the beginning of the8,121,212

20,751,302

12,630,090

1,472,765

Balance at the end of the term

20,751,302

22,224,067

Value assessed at the end of the term
(Note 4)23,535,500

25,231,000

term
Change in the current term
(Note 3)(Note 1) The real estate that the Investment Corporation has will be used for the operation of the renewable energy power production facilities. Accordingly,
the amount recorded on the balance sheet and the value assessed at the end of the term respectively include the total sum of the renewable energy
power production facilities and the relevant real estate.
(Note 2) The amount recorded on the balance sheet is the result of the deduction of the accumulated depreciation from the acquisition cost.
(Note 3) The increase for the current term is mainly attributable to the acquisition of the photovoltaic power facilities, etc. (1,953,765 thousand yen). The
increase for the current term is mainly attributable to depreciation (451,929 thousand yen).
(Note 4) The value above is the total sum of the median values calculated by the Investment Corporation according to Item 1, Paragraph 2, Article 36 of
its certificate of incorporation from among the range of the assessed values stated in the valuation report indicating the values as of November
30, 2017 and May 31, 2018 that were obtained from PricewaterhouseCoopers Sustainability LLC.

The profit and loss of the renewable energy power facilities, etc. for the fiscal period ended November 30, 2017 (4th fiscal
period), and the fiscal period ended May 31, 2018 (5th fiscal period) are as stated in the “Notes Regarding the Statement of
Income” above.
[Notes regarding segment information]
1. Segment information
Previous term (From June 1, 2017 to November 30, 2017)
The statement of the segment information is omitted because the business of the Investment Corporation is only the lease ofrenewable energy power facilities, etc.
Current term (From December 1, 2017 to May 31, 2018)
The statement of the segment information is omitted because the business of the Investment Corporation is only the lease ofrenewable energy power facilities, etc.
2. Related information
Previous term (From June 1, 2017 to November 30, 2017)(1) Information regarding product and service
The statement of this information is omitted because the operating revenue from the sales of the single product/service
to customers outside the Investment Corporation exceeds 90% of the operating revenue recorded on the statement ofincome.
(2) Information regarding region① Operating revenue
The statement of this information is omitted because the operating revenue from sales to customers outside theInvestment Corporation in Japan exceeds 90% of the operating revenue recorded on the statement of income.

－

28 －

② Property, plant and equipment
The statement of this information is omitted because the value of property, plant and equipment located in Japan exceeds
90% of the value of the property, plant and equipment recorded on the balance sheet.
(3) Information regarding major customer(Unit: Thousand yen)
Name of customer

Net sales

Takara Leben Co., Ltd.

Name of related segments
1,062,223

Lease of the renewable energy
power facilities, etc.

Current term (From December 1, 2017 to May 31, 2018)(1) Information regarding product and service
The statement of this information is omitted because the operating revenue from the sales of the single product/service
to customers outside the Investment Corporation exceeds 90% of the operating revenue recorded on the statement ofincome.
(2) Information regarding region① Operating revenue
The statement of this information is omitted because the operating revenue from sales to customers outside theInvestment Corporation in Japan exceeds 90% of the operating revenue recorded on the statement of income.
② Property, plant and equipment
The statement of this information is omitted because the value of property, plant and equipment located in Japan exceeds
90% of the value of the property, plant and equipment recorded on the balance sheet.
(3) Information regarding major customer(Unit: Thousand yen)
Name of customer

Net sales

Takara Leben Co., Ltd.

Name of related segments
1,205,357

Lease of the renewable energy
power facilities, etc.

[Notes regarding data per unit]
Previous term
(From June 1, 2017 toNovember 30, 2017)
Net assets per unit
Net income per unit

96,050 yen
3,136 yen

Current term
(From December 1, 2017 to May
31, 2018)
95,976 yen
3,511 yen

(Note 1) Net income per unit is calculated by dividing the net income by the weighted average number of investment units that is based on the number of days.
In addition, diluted net income per investment unit for the current term is not stated because there are no dilutive investment units.
(Note 2) The basis for the calculation of net income per unit is as shown below.

Previous term
(From June 1, 2017 toNovember 30, 2017)
Net income (thousand yen)

368,509

Amount not vested in ordinary unitholders (thousand yen)
Net income corresponding to common investment units (thousand yen)
Average number of investment units during the term (units)

－

29 －

Current term
(From December 1, 2017 to May
31, 2018)
414,267－－

368,509
117,494414,267
117,976

[Notes regarding important events after the reporting period]
1.

Issuance of new investment units

The Investment Corporation has decided to issue new investment units at the board of meeting held on May 10, 2018 and May
21, 2018 and received the proceeds of new investment units as set forth below on June 1, 2018 and June 27, 2018, respectively.
As the result, Unitholders' net capital is 13,138,647 thousands yen and numbers of total investment unit issued is 138,574 units asof June 27, 2018.
a.

Issuance of new investment units through public offering

(1)
(2)

Total number of investment units to be offered:
Issue price (Offer Price)

19,618 Unit
113,384 yen per unit

(3)
(4)

Total amount of issue value (offer price)
Paid-in amount

2,224,367,312 yen
108,267 yen per unit

(5)
(6)

Total paid-in amountPayment date

2,123,982,006 yen
June 1, 2018

(7)

Intended use of funds

To appropriate part of the funds for the acquisition of the new
assets acquiredb.

Issuance of new investment units by third-party allotment

(1)
(2)

Total number of investment units to be offered:
Issue price (Offer Price)

980 unit
108,267 yen per unit

(3)
(4)

Total amount of issue value (offer price)
Allottee and number of units allocated106,101,660 yen
Mizuho Securities Co., Ltd. 980 unit

(5)
(6)

Payment date
Intended use of funds

June 27, 2018
To maintain as cash in hand, which expected to be used for
acquiring specified assets (as set forth in Paragraph 1, Article
2 of the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, including amendments
thereto) or for planed repayment of debts

Change of number of investment units through above new issuance of new investment units are as follow
Total number of investment units as of May 31, 2018

117,976 units

Increased number of investment units through the public offering
Increased number of investment units through the third-party allotment

19,618 units
980 units

Total number of investment units after the public offering and the third-party allotment

138,574 units

2. Borrowing of funds
To appropriate part of the funds for the acquisition of the new assets acquired and to be acquired as set forth in “c. Acquisition ofassets” below and the expenses related thereto (including national and local consumption taxes), the Investment Corporation
executed the following loans on June 1, 2018, and some of the loans were extended.

Categ
ory

LenderAmount ofborrowings(Million yen)Interest rate
(Note 1)

Date ofextension

Date of
final

Repayment
methodof loans

repayment(Note 2)June 1,
2018

May 31,
2028

Security(Note 3)

Mizuho Bank, Ltd.

Longterm(Arranger)
Resona Bank, Limited

Interest rate

(Arranger)
Sumitomo Mitsui Banking Corporation

obtained byadding 0.5%

(Co-Arranger)
Corp Asahi Shinkin Bank

3,024

Ashikaga Bank, Ltd.
Iyo Bank, Ltd.

to the sixmonth
Japanese Yen
TIBOR

Gunma Bank, Ltd.
Daishi Bank, Ltd.
－

30 －Repaymentininstallmentsin partUnsecured
Unguaranteed

(Note 1) Fees for loans, etc. paid to the lenders are not included.
The interest rate applicable to the interest paid on the date of the payment of interest (hereinafter referred to as the “Base Rate”) is the six-month
Japanese TIBOR that the JBA TIBOR Administration publicly announces on the date that occurs two (2) business days before the date of theextension of the loan or the respective date of the payment of interest. The said Base Rate is reviewed for each date of payment of interest.
However, if no rate for the period of the calculation of interest is available, the Base Rate for the said period shall be calculated according to themethod set forth in the agreement. In addition, if such interest rate falls below 0%, the Base Rate shall be 0%. For information, the Base Rate forthe first period of the calculation of interest on the loan extended on June 1, 2018 is 0.12636%.
(Note 2) Part of the principal (the amount obtained by dividing the total amount of loans by 34) shall be repaid on the last day of May and November of eachyear starting from November 30, 2018 (if the said day falls on a non-business day, the business day immediately following the said day, and if thesaid business day falls within the following month, the business day immediately preceding the said non-business day), and the remaining
principal shall be repaid in a lump sum on the last due date of repayment on May 31, 2028.
(Note 3) The said loan is limited by the financial covenant to maintain the debt ratio (D/E ratio) and the indexes for assessing the ability to pay the principal
and interest (DSCR) of the Investment Corporation as of each date of closing accounts of the Investment Corporation. In the case of a violation of
the said limitation, the provision of security may be demanded, among other actions.

3.

PropertyNo.

Acquisition of assets
The Investment Corporation executed the purchase agreements for the solar power plants below on June 1, 2018.
Name of property

Location

Acquisition cost
(Million yen) (Note 1)

SellerS-22

LS Mie Yokkaichi

Yokkaichi-shi, Mie740

Takara Leben Co., Ltd.

S-23

LS Sakuragawa Nakaizumi

Sakuragawa-shi, Ibaraki

980

Takara Leben Co., Ltd.

S-24

LS Shirahama

Kamitonda-Cho, Wakayama

2,810

Takara Leben Co., Ltd.

S-25

LS Takahagi

Takahagi-shi, Ibaraki

400

Takara Leben Co., Ltd.

4,930

－

Total portfolios(Note) The acquisition costs described above are the purchase price stated in the purchase agreement for the respective assets acquired (exclusive of thecontract fees and other expenses for the acquisition of assets, fixed assets, city planning, consumption and other taxes and other charges) androunded down to the nearest million yen.

－

31 －

(9) Change in the total number of issued investment units
The unitholders’ capital contributed after the establishment of the Investment Corporation before May 31, 2018 and thechange in the total number of issued investment units are shown below.

Date

Summary

Unitholders’ capital (net value)(Million yen) (note 1)
ChangeAugust 5, 2015
June 1, 2016

July 1, 2016

Establishment by

Remarks(Units)ChangeBalance

200

200

2,000

2,000

(Note 2)

4,290

4,490

45,16647,166(Note 3)

214

4,705

2,258

49,424(Note 4)

5,959

10,66565,288

114,712(Note 5)297

10,963

3,264

117,976(Note 6)-54

10,908-

117,976(Note 7)

private offering
Capital increase by
public offering

Balance

Total number of issued
investment units

Capital increase by
third-party
allotment

June 1, 2017

June 28, 2017

Capital increase by
public offering
Capital increase by
third-party
allotment

February 19, 2018

Surplus earning
distribution(Note 1) Show values subtracting expenses of deduction from total unitholders' capital(Note 2) Upon its establishment, the Investment Corporation issued its investment units at the issue price per unit of 100,000 yen.
(Note 3) The Investment Corporation issued new investment units by public offering for the purpose of securing funds for the acquisition of new
properties at the issue price per unit of 100,000 yen (the price that the underwriter pays the issuer is 95,000 yen).
(Note 4) The Investment Corporation issued new investment units by third-party allotment at the issue price per unit of 95,000 yen.
(Note 5) The Investment Corporation issued new investment units by public offering for the purpose of securing funds for the acquisition of new
properties at the issue price per unit of 95,499 yen (the price that the underwriter pays the issuer is 91,287 yen).
(Note 6) The Investment Corporation issued new investment units by third-party allotment at the issue price per unit of 91,287 yen.
(Note 7) The Investment Corporation distributed surplus earning for the fiscal period ended November 30, 2017 (4th fiscal period) in the amountof 463 yen per unit as it was decided on the Investment Corporation's board of meeting held on January 12, 2018 and started payment on
February 19, 2018.

4. Change of officers(1) Change of officers of the Investment Corporation
There was no change of officers during the fiscal period under review.
(2) Change of officers of the management company(i) New assumption of office
On February 15, 2018: CEO, Mamoru Takahashi
On March 1, 2018: Executive Director, Takahiko Hasegawa
On March 1, 2018: Director., Head of Private Fund Department, Takehiko Kusajima(ii) Retirement
On March 30, 2018: director (part-time), Tetsuo Funamoto

－

32 －

5. Reference information(1) State of investment(As of May 31, 2018)
Category by region, etc.
(Note 1)

Asset type

Total value of investments

Ratio of investments to total

held(Note 2) (Thousand yen)value of assets(Note 3) (%)

Tohoku region

1,605,950

6.5

Renewable energy power Kanto region

15,627,975

63.7

Chubu region

384,355

1.6

Kyushu region

718,531

2.9

18,336,812

74.7

Tohoku region

260,083

1.1

Kanto region

3,112,391

12.7

Chubu region

112,812

0.5

Kyushu region

155,4760.6

3,640,763

14.8

Tohoku region

21,224

0.1

Kanto region

225,266

0.9

Chubu region--

Kyushu region--

246,4911.0

Tohoku region

1,887,258

7.7

Renewable energy power Kanto region

18,965,632

77.3

Chubu region

497,167

2.0

Kyushu region

874,008

3.6

22,224,067

90.6

Total renewable energy power facilities, etc.

22,224,067

90.6

Deposits and other assets

2,314,609

9.4

Total value of assets (Note 2)

24,538,677

100.0

Amount (Thousand yen)

Ratio of investments to total
value of assets

facilities

Subtotal

Real estate

Subtotal

Leasehold right

Subtotalfacilities, etc.

Subtotal(Note 3) (%)
Total value of liabilities (Note 2)

13,215,765

53.9

Total value of net assets (Note 2)

11,322,911

46.1(Note 1) In category by region, etc., “Tohoku region” refers to Aomori, Akita, Iwate, Fukushima, Miyagi and Yamagata Prefectures, “Kanto region”
refers to Ibaraki, Kanagawa, Gunma, Saitama, Tochigi, Chiba and Tokyo Prefectures, “Chubu region” refers to Niigata, Yamanashi, Shizuoka, Aichi, Nagano and
Mie Prefectures, and “Kyushu region” refers to Oita, Kagoshima, Kumamoto, Saga, Nagasaki, Fukuoka and Miyazaki Prefectures.
(Note 2) The values described above are the values recorded on the balance sheet as of May 31, 2018. In addition, the total value of investments held for the
category of cash and other deposits include construction in progress of 6,079thousand yen.
(Note 3) The ratio is rounded off to one decimal place.

－

33 －

(2) Investment assets(i) Major issues of investment securities
Not applicable.
(ii) Real estate for investment
Not applicable.

－

34 －

(iii) Other major investment assetsa.
Summary of renewable energy power facilities, etc.
The renewable energy power facilities, etc. that the Investment Corporation holds as of May 31, 2018 are summarized below.
Category
of

No.

Name

Date ofacquisition

Location

facilities
Solar power
S-01
facilities
Solar power
facilities

S-02

LS Shioya

LS Chikusei

Land
area
(m2)

Purc
hase
price

Solar power
S-04
facilities

36,72740

December21, 2012

July 30, 2033

June 2, 2016

18,54640

March 6,2013

March 17, 2034

June 2, 2016

6,930

40

February27, 2013

March 26, 2034

June 2, 2016

21,18936

September
2, 2013

July 21, 2034

Kokubushigehisa, Kirishima-shi,
June 2, 2016
Kagoshima and one other parcel of

47,29040

March 29,2013

September 15, 2034

June 2, 2016

25,22436

September
2, 2013

December 17, 2034

June 2, 201657,31136

November
1, 2013

March 29, 2035

June 2, 2016

36,61636

December
5, 2013

March 26, 2035

June 2, 2016

61,17136

March 17,
2014

July 20, 2035

Tone-machi, Kitasoma-gun, Ibaraki June 2, 2016
and 10 other parcels of land

33,05336

February25, 2014

December 10, 2035

February 7,
201712,81936

December
5, 2013

March 21, 2036

98, Irikubo, Bochi, Tsukuba-shi,
June 1, 2017
Ibaraki and 23 other parcels of land

33,25040

March 25,
2013

July 13, 2034

June 1, 201731,15036

December24, 2013

March 24, 2036

June 1, 2017798,374

36

August 19,
2013

March 30, 2036

June 1, 2017

20,55136

March 27,
2014

July 25, 2036

1601-19, Yashio, Tadokoro,
June 2, 2016
Shioya-machi, Shioya-gun, Tochigi
492, Numata, Higuchi, Chikuseishi, Ibaraki and 10 other parcels of

1336-16, Norocho, Wakaba-ku,
LS Chiba WakabaChiba-shi, Chiba and two otherku
parcels of land2872-1, Osumi, Kihara, MihoLS Miho

Expiry date ofpurchase period

(Yen)

land

Solar power
S-03
facilities

Date ofapprovalmura, Inashiki-gun, Ibaraki andeight other parcels of land
4566-1, Shinogasako,

Solar power
S-05
facilities

LS Kirishima
Kokubuland
Solar power
S-06
facilities

3994-1, Shiobagata, Higashikozasa,
LS Sosa

Sosa-shi, Chiba and one otherparcel of land
1-5, Itayahigashiyama,

Solar power
S-07
facilities

LS Miyagi Osato

Higashinarita, Osato-cho,
Kurokawa-gun, Miyagi and one
other parcel of land

Solar power
S-08
facilities

15-1, Dai, Takada-cho, Mito-shi,
LS Mito Takada

Ibaraki and eight other parcels of
land
9-11, Tsutsumigasawa, Nakano,Solar power
S-09
facilities

LS Aomori Hiranai

Hiranai-machi, Higashitsugarugun, Aomori and 11 other parcelsof land

Solar power
S-10
facilities
Solar power
facilities

facilities

Solar power
facilities
Solar power
facilities

LS Tone Fukawa

2487-1, Murago, Hasaki, KamisuS-11

Solar power
S-12
facilities
Solar power

5777-2, Sanbanwari, Fukawa,

LS Kamisu Hasaki shi, Ibaraki and 12 other parcels ofland
LS Tsukuba Bochi

932-1, Maeno, Kamigama, HokotaS-13

S-14

S-15

LS Hokota

LS Nasu
Nakagawa

LS Fujioka Ashi, Ibaraki and eight other parcelsof land1279-17, Hanukisawa, Miwa,
Nakagawa-machi, Nasu-gun,Tochigi and 130 other parcels of
land
4402, Shiroyama, Fujioka, Fujiokamachi, Tochigi-shi, Tochigi and 31－

35 －other parcels of land
Solar power
facilities

S-16

LS Inashiki
Aranuma 1

Solar power
S-17
facilities

LS Fujioka B

Solar power
S-18
facilities

LS Inashiki
Aranuma 2

Solar power

LS Sakuragawa

facilities

Solar power
facilities

S-19

S-20

1585-5, Aranuma Otsu, Edosaki,
Inashiki-shi, Ibaraki and two other

June 1, 201732,55636

March 24,
2014

July 27, 2036

4225-1, Shiroyama, Fujioka,
Fujioka-machi, Tochigi-shi, Tochigi June 1, 201739,26336

March 27,
2014

October 3, 2036

June 1, 201717,82736

March 10,2014

January 11, 2037

December 1,
201747,19336

March 31,2014

October 23, 2036

December 1,
201727,02636

September13, 2013

November 6, 2036

February 28,
201818,99236

February
13, 2014

March 29, 2035

parcels of land

and two other parcels of land

Shimoizumi

LS Fukushima
Yamatsuri

1585-1, Aranuma Otsu, Edosaki,
Inashiki-shi, Ibaraki and four otherparcels of land421-1, Maeyashika, Shimoizumi,
Sakuragawa-shi, Ibaraki and one
other parcels of land
48-1, Sasanotawa, Hozaka,,
Yamatsuri-machi, Higashi
Shirakawa-gun, Fukushima and 30
other parcels of land3419-2, Karakigaya, Hiki,

Solar power
S-21
facilities

LS Shizuoka
OmaezakiOmaezaki-shi, Shizuoka-shi,
Ibaraki and eight other parcels of
land

－

36 －

Matters regarding

No.

Name ofapproved

Name

operator

Name of theAcquisitio

other party to
the specificcontractn cost(Millionyen)(Note 1)Value

the assessment of
the value ofBookvalue atassessedat the end

infrastructure andother assets

the end of
the fiscalof theterm(Million yen)
(Note 3)

periodunder(Millionyen)(upper part:
facilities andreview(Million(Note 2)equipment)(lower part: realyen)
(Note 4)

estate)
S-01

S-02

S-03

S-04

S-05

S-06

S-07

S-08

S-09

S-10

S-11

S-12

S-13

LS Shioya

LS Chikusei

LS Chiba Wakaba-ku

LS Miho

LS Kirishima Kokubu

LS Sosa

LS Miyagi Osato

LS Mito Takada

LS Aomori Hiranai

LS Tone Fukawa

LS Kamisu Hasaki

LS Tsukuba Bochi

LS Hokota

Takara Leben Co.,Ltd.

TEPCO Energy
Partner,

1,315

Incorporated

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

540

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

271

Takara Leben Co.,Ltd.

TEPCO Energy
Partner,

Power Co., Inc.

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated
Takara Leben Co., Tohoku Electric
Ltd.

Power Co., Inc.

Takara Leben Co.,TEPCO Energy
Partner,

Ltd.

666

818

991

Power Co., Inc.

705

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

1,261

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

470

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

890

Takara Leben Co.,
Ltd.

－

735

37 －

325

419

355

165

158

231

182

113

78

472

368

131

103

849

718

147

155

667

572

40

45

742

636

125

121

790

683

265

251

603

523

149

139

1,020

878

321

306

494

447

8

7

1,010

836

24

27

754

688

23

30

603

996

708

867

1,055

752

1,341

502

1,035

TEPCO Energy
Partner,
Incorporated

331

344

Incorporated

Takara Leben Co., Tohoku Electric
Ltd.

937

880

584

Incorporated

Takara Leben Co., Kyushu Electric
Ltd.

498

1,047
1,378

778

Acquisitio
No.

S-14

S-15

S-16

S-17

S-18

S-19

S-20

S-21

Name

Name of approved
operator

Name of theother party to then cost(Million

specific contract

yen)(Note 1)TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

8,315

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

265

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

925

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

1,091

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

422

LS Sakuragawa
Shimoizumi

TEPCO Energy
Takara Leben Co.,
Partner,
Ltd.
Incorporated

955

LS Fukushima Yamatsur

Takara Leben Co., Tohoku Electric
Ltd.
Power Co., Inc.

468

Takara Leben Co., Chubu Electric
Ltd.
Power Co., Inc.

484

LS Nasu Nakagawa

LS Fujioka A

LS Inashiki Aranuma 1

LS Fujioka B

LS Inashiki Aranuma 2

LS Shizuoka Omaezaki

Total

－

Matters regarding
the assessment of

Book

Value
assessed

the value of
infrastructure andvalue atthe end of

at the endof theother assets(Million yen)

the fiscal
periodterm(Million(Note 3)
(upper part:

underreviewyen)(Note 2)

facilities andequipment)(Millionyen)(lower part: realestate)(Note 4)

7,408

6,540

1,640

1,579

182

174

95

94

1,034

871

50

36

972

852

242

225

471

395

20

15

1,061

898

58

52

521

446

22

21

393

384

111

112

21,147

18,336

4,083

3,887

23,027

－

9,048

277

1,085

1,214

492

1,120

544

504

25,231(Note 1) The acquisition cost described above is the purchase price (excluding national and local consumption taxes and transaction fees and other charges) set
forth in the respective purchase agreements for the power facilities, etc. that are the assets acquired.
(Note 2) The value assessed at the end of the term described above is the median value calculated by the Investment Corporation according to Item 1, Paragraph 2,
Article 36 of its certificate of incorporation from among the range of the total assessed values including renewable energy power facilities and real estate,leasehold or superficies calculated by PricewaterhouseCoopers Sustainability LLC.
(Note 3) In the section of the matters regarding the assessment of the value of the infrastructure assets above, the upper part shows the estimates of the value
assessed of the renewable energy power facilities after the deduction of the assessed real estate value calculated by CBRE K.K. from the value assessedthat is described above (Note 2), and the lower part shows the value stated in the real estate appraisal report prepared by CBRE K.K. Real estate includes
superficies or leasehold of real estate.
(Note 4) In the section of book value at the end of the fiscal period under review, the upper part shows the book value of the renewable energy power facilities atthe end of the fiscal period under review, and the lower part shows the book value of the real estate at the end of the fiscal period under review.

－

38 －

b.
Results of revenues and expenditures of individual renewable energy power facilities
5th fiscal period (from December 1, 2017 to May 31, 2018)
Property number(Unit: Thousand yen)Total
portfolios

S-01

S-02

S-03

S-04

S-05

LS Shioya

LS Chikusei

LS Chiba
Wakaba-ku

LS Miho

LS Kirishima
Kokubu1,171,787

67,57427,56015,25628,16145,34233,569

315

319

-

300

50

13

-

1

-

0

-

1,205,371

67,88927,881

15,25628,46245,393

Taxes and other public charges

51,096

6,826

2,190

1,033

2,099

4,262

(Fixed assets and other related
taxes included)

51,059

6,826

2,190

1,033

2,099

4,262

37

-

-

-

-

-

Sundry expenses

112,468

2,694

1,306

1,281

1,847

2,208

(Outsourcing fees management)

77,704

1,946

1,113

1,108

1,647

1,568

(Repair expenses)

-

-

-

-

-

-

(Utilities expenses)

4,742

328

3

3

7

258

(Insurance expenses)

7,775

386

155

84

158

351

(Payment of land rent)

21,326

-

-

-

0

0

Name of property
Lease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed
Variable rent linked to actual
outputIncidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.

(Other taxes included)(Other lease expenses included)
Depreciation

919

33

33

85

33

30

451,929

29,981

9,050

4,742

9,216

17,797(Buildings)

160

-

-

-

-

-

(Structures)

159,897

2,906

3,729

1,329

2,013

3,533

(Machinery and equipment)

267,284

19,499

5,244

3,112

6,947

14,264(Tools, furniture and fixtures)

24,587

7,574

76

300

255

-

615,494

39,502

12,548

7,057

13,16424,269589,877

28,386

15,333

8,198

15,29821,123

Lease expenses - renewable energy
power production facilities, etc.
(subtotal B)
Profit or loss of lease business renewable energy power production
facilities, etc. (A－B)

－

39 －

(Unit: Thousand yen)
Property No.

S-06

Name of property

LS Sosa

S-07

S-08

S-09

S-10

S-11

LS Miyagi

LS MitoLS Aomori

LS Tone

LS Kamisu

Osato

TakadaHiranai

FukawaHasakiLease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed

37,45340,42045,57032,44657,181

24,816

-

-

25

-

-

1,191

-

-

2

-

-

-

37,45340,42045,59832,44657,181

26,007

2,655

3,067

3,403

2,431

4,422

1,057

2,655

3,067

3,403

2,431

4,422

1,057

-

-

-

-

-

-

3,509

2,809

2,220

4,837

2,644

3,281

1,576

2,227

1,751

4,185

2,107

2,006

(Repair expenses)

-

-

-

-

-

-

(Utilities expenses)

124

194

151

332

164

3

(Insurance expenses)

245

345

282

284

292

166

(Payment of land rent)

1,530

-

-

-

42

1,068

33

40

35

35

37

37

13,99917,261

16,353

12,504

21,533

11,000

Variable rent linked to actual
outputIncidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.
Taxes and other public charges(Fixed assets and other related
taxes included)(Other taxes included)
Sundry expenses(Outsourcing fees management)(Other lease expenses included)
Depreciation(Buildings)

-

-

-

-

-

-

(Structures)

6,394

7,399

3,693

2,842

8,565

4,204

(Machinery and equipment)

7,605

7,928

12,452

9,517

11,486

6,213

-

1,933

207

144

1,481

583

20,164

23,137

21,977

19,77328,60015,33917,28917,282

23,62012,67328,580

10,667(Tools, furniture and fixtures)
Lease expenses - renewable energy
power production facilities, etc.
(subtotal B)
Profit or loss of lease business renewable energy power production
facilities, etc. (A－B)

－

40 －

(Unit: Thousand yen)
Property No.
Name of property

S-12

S-13

LS Tsukuba

S-14
LS Nasu

LS Hokota

Bochi

S-15

S-16

LS Fujioka A

Nakagawa

S-17

LS Inashiki

LS Fujioka B

Aranuma 1

Lease revenue - renewable energy
power production facilities, etc.
Minimum rent guaranteed

57,30339,276405,443

13,94955,15555,238

Variable rent linked to actual
output

2,013

1,915

13,333

866

3,669

3,383

-

-

2

-

-

2

59,317

41,191

418,779

14,81558,82558,623

2,920

1,616

-

1,039

3,035

3,041

2,920

1,604

-

1,039

3,035

3,041

-

12

-

-

-

-

8,999

5,153

36,026

2,300

8,815

5,313

3,351

3,195

30,184

2,131

3,712

4,802

(Repair expenses)

-

-

-

-

-

-

(Utilities expenses)

297

3

2,429

3

163

135

(Insurance expenses)

319

266

2,881

123

299

338

(Payment of land rent)

5,000

1,548

441

-

4,603

-

Incidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.
Taxes and other public charges(Fixed assets and other related
taxes included)(Other taxes included)
Sundry expenses(Outsourcing fees management)(Other lease expenses included)
Depreciation

31

139

88

41

37

37

23,046

16,439154,740

4,595

20,276

20,439(Buildings)

-

-

160

-

-

-

(Structures)

10,846

9,568

62,164

1,749

7,827

8,153

(Machinery and equipment)

10,871

6,763

88,682

2,190

12,201

11,459(Tools, furniture and fixtures)

1,327

106

3,733

655

247

826

34,96623,209190,766

7,935

32,12828,79424,35017,982228,0126,880

26,697

29,829Lease expenses - renewable energy
power production facilities, etc.
(subtotal B)
Profit or loss of lease business renewable energy power production
facilities, etc. (A－B)

－

41 －

(Unit: Thousand yen)
Property No.
Name of property

S-18

S-19

LS Inashiki

S-20

S-21

LS Sakuragawa LS Fukushima

Ls Shizuoka

Aranuma 2

Shimoizumi

Yamatsuri

Omaezaki

Minimum rent guaranteed

24,93557,73327,313

13,654

Variable rent linked to actual
output

2,126

2,641

629

787

-

-

-

4

27,06160,37527,943

14,447

1,382

3,069

1,528

12

1,382

3,062

1,522

-

-

6

6

12

4,754

7,265

3,937

1,258

2,032

3,564

2,350

1,139

-

-

-

-

Lease revenue - renewable energy
power production facilities, etc.

Incidental revenues
Lease revenue - renewable energy
power production facilities, etc.
(subtotal A)
Lease expenses - renewable energy
power production facilities, etc.
Taxes and other public charges(Fixed assets and other related
taxes included)(Other taxes included)
Sundry expenses(Outsourcing fees management)(Repair expenses)(Utilities expenses)

5

74

25

33

(Insurance expenses)

177

367

170

76

(Payment of land rent)

2,502

3,228

1,360

0

37

30

30

8

11,10020,584

10,597

6,667(Other lease expenses included)
Depreciation(Buildings)

-

-

-

-

(Structures)

3,053

3,393

3,761

2,766

(Machinery and equipment)

4,966

16,104

6,174

3,597

(Tools, furniture and fixtures)

3,080

1,086

662

303

Lease expenses - renewable energy
power production facilities, etc.

17,23730,91916,063

7,937

9,823

29,456

11,8796,509(subtotal B)
Profit or loss of lease business renewable energy power production
facilities, etc. (A－B)－

42 －