Comforia Residential REIT, Inc

Semi-Annual Reportfor the 11th Fiscal Period
From August 1, 2015 to January 31, 2016

For a Superior Level of Living Comfort
COMFORIA

1-16-3 Dogenzaka, Shibuya-ku, Tokyo
http://www.comforia-reit.co.jp/english/

I

Overview of the Investment Corporation

Greetings

For a Superior Level of Living Comfort
COMFORIA is the name we have given to the urban rental residences producedby the Tokyu Land Corporation. The word COMFORIA is a compound that
we coined from “comfort,” and “ia,” a Latin suffix meaning “place.”
The idea that residences are not just containers has given birth toour “COMFORIA” series of rental residences made specifically for people

We are pleased to inform you that Comforia Residential REIT, Inc (the “Investment
Corporation”) safely closed all accounts for the 11th Fiscal Period (from August 1,
2015 to January 31, 2016). We would like to thank all of our unitholders andstakeholders for their continued support and cooperation.
We hereby report on the asset management overview and results for the 11th
Fiscal Period. During the 11th Fiscal Period, the Investment Corporation acquired
two properties, namely COMFORIA AZABU EAST, which is located in the Tokyo 23
wards, and COMFORIA KITASANJO, the Investment Corporation’s first property in
Sapporo, and sold COMFORIA DAIKANYAMA and COMFORIA HARAJYUKU NORD
in an attempt to enhance the portfolio quality. Consequently, our asset size as of the
Hiroyuki Tohmata
end of the period totaled 94 properties, with ¥146.7 billion in total acquisition price.
Executive Director
The average occupancy rate was 95.9% for the 11th Fiscal Period, which was 0.6%
higher compared to the previous period. The Investment Corporation achieved¥5,050 million in operating revenue, ¥2,603 million in operating income, and ¥2,147 million in profit, all of which exceeded
our forecasts, resulting in ¥4,339 in distributions per unit.
Furthermore, after the end of the 11th Fiscal Period, we acquired two additional properties in the Tokyo 23 wards in
February 2016 through a public offering for the third consecutive year since listing, in addition to borrowings. As a result,our portfolio as of March 31, 2016 stood at 96 properties, with a total acquisition price of ¥161.4 billion. We intend tocontinue to make selective investments in the Tokyo 23 wards.
We invest mainly in rental residences in the Tokyo metropolitan area, based on our basic policies of “investments inresidential properties with stable earnings and a high growth potential” and “utilization of the Tokyu Fudosan HoldingsGroup,” as well as the concept and expertise of the urban rental residence “Comforia” series, which Tokyu Land
Corporation has produced for singles and small families. We will continue to aim to achieve stable earnings and ensure thesteady growth of our managed assets based on medium- and long-term perspectives to maximize our unitholders’ value.
Your continued support and cooperation are highly appreciated.

who wish to live freely and affluently in urban communities.

Financial Highlights

We invest in and manage the urban exclusive rental residence “COMFORIA” series,
which Tokyu Land Corporation has produced, to maximize our unitholders’ value.

Operating revenue
Operating income
ProfitDistributions per unit
Total loan to value (LTV)¥5,050 million Number of properties
94 properties¥2,603 million Acquisition price¥146.7 billion¥2,147 million Appraisal value¥170.6 billion
Occupancy rate at the 11th
96.2 %¥4,339Fiscal Period-end
Average occupancy rate
49.8 %
95.9 %(Change from the previous period: +0.6%)

Note: Internal reserve through the reduction entry for gains on acquisition and sales of real estate properties (¥92 million)

Contents
I. Overview of the Investment Corporation
Greetings / Financial Highlights ……………………………… 1
Topic 1 History of External Growth…………………………… 2
Topic 2 Replacement of Assets (11th Fiscal Period)………… 4
Topic 3 Public Offering in the 12th Fiscal Period…………… 5
Internal Growth Strategy……………………………………… 6
Financial Strategy……………………………………………… 7
Portfolio Map …………………………………………………… 8
Portfolio List ………………………………………………… 10
Basic Policies ………………………………………………… 17

Overview of the Investment Corporation and AssetManagement Company……………………………………
II. Asset Management Report………………………………
III. Financial Section
Balance Sheet………………………………………………
Statements of Income………………………………………
Statements of Changes in Unitholders’ Equity…………
Statements of Cash Distributions…………………………
Statements of Cash Flows…………………………………
Notes…………………………………………………………

18
19
48
50
51
52
53
54

1

Topic 1

During the 11th Fiscal Period, the Investment Corporation acquired and sold the investment assets in October 2015 toenhance portfolio quality. Furthermore, through a public offering in February 2016, we acquired two newer properties
located in the Tokyo 23 wards, one of which was COMFORIA SHINJUKU EASTSIDE TOWER.
We will continue to promote external growth by primarily utilizing the collaboration with our sponsor group, as wellas original sourcing by TLC Comforia Investment Management INC. (hereinafter referred to as the “Asset Management
Company”), to invest selectively in high quality properties mainly in the Tokyo 23 wards. We aim to achieve an asset sizeof ¥200 billion in the medium to long term, while seeking stable distribution levels.

History of External Growth

Steady Growth and Selective Investment Mainly in theTokyo 23 Wards
Acquired COMFORIASHINJUKUEASTSIDE TOWER
and one other property

Asset size
Acquired COMFORIAKUDAN and 24
other properties(Billions of yen)

Acquired COMFORIA
KOMABA and one
other property

Over the three
years since listing,achieved
2.3-fold growth

200

150

146.5

50

71.2
Tokyo
23 wards

96.3%

96.3%
Listed(Feb. 6, 2013)

Distributions
per unit (DPU) (Note)
Occupancy rate
at end of period——

Aim to expand asset size while
maintaining a ratio of assets
in the Tokyo 23 wards above 90%Tokyo
23 wards

Tokyo
23 wards

Tokyo
23 wards

94.0%

90%

Tokyo
23 wards

94.2%

93.6%

92.9%

92.5%

Tokyo
23 wards

Tokyo
23 wards
More thanTokyo
23 wards

74.5

146.7

122.8

100

Tokyo
23 wards

Replacementof assets

161.4

116.2

71.2

Acquired COMFORIA
KANDAJINBOCHO
and 11 other properties

Itabashi

93.3%

Toshima“End of 6th
Fiscal Period”
Ended Jul. 2013“End of 7th
Fiscal Period”
Ended Jan. 2014“End of 8th
Fiscal Period”
Ended Jul. 2014“End of 9 th
Fiscal Period”
Ended Jan. 2015

“End of 10 th
Fiscal Period”
Ended Jul. 2015

“End of 11th
Fiscal Period”
Ended Jan. 2016

¥4,051
95.9%¥4,203
96.2%¥4,26894.8%¥4,29695.2%¥4,403
95.5%¥4,33996.2%

NakanoArakawa

SumidaBunkyoTaito
Shinjuku

AfterChiyoda
theShibuyapublicoffering
Chuo Koto

Future strategy(Feb. Minato
2016)

Setagaya

MeguroShinagawa

Aim to improve DPU (ongoing basis)

Ota

Consistently stable occupancy rate

Note: Since a four-for-one split of investment units was carried out effective August 1, 2014, the figures for DPU prior to the split are divided by four and rounded
off to the nearest full number.

The Pipeline with the Tokyu Fudosan Holdings Group
1 Acquisition from sponsor groups
Acquisition at time of
End of 11th
public offering
Fiscal Period +

67.3%

100%

Sponsor
34.4%

Other

29.8%
From sponsor group

70.2%

That Enables External Growth
2 Property development by Tokyu Land Corporation (As of March 31, 2016)
Tokyu Land Corporation has developed 16 properties with 1,802 units of rental residences as the “Comforia” series.
Tokyo area
10 properties 1,147 units

2(Major development properties)■COMFORIA KAMATA■COMFORIA AKIHABARA EAST

Suita-city
ItabashiHigashiyodogawa
Higashiyodogawa
Arakawa

ToshimaThe Investment Corporation promotes steady growth centered on
the acquisition of assets from sponsor groups, mainly from Tokyu
Land Corporation.
In addition, we strive to reinforce our property acquisition channels
through the Asset Management Company.

Osaka area
6 properties 655 units

NakanoBunkyoTaito
Shinjuku

SumidaShin-osaka
Osaka

Umeda

ChiyodaShibuya
Setagaya

Other sponsors
35.9%

Chuo

Koto

Nishi

Shinsaibashi

Location

Location

Ota-ku,Tokyo

Chiyoda-ku,
Tokyo

MinatoMeguroShinagawaOta(As of March 31, 2016)

Note: No specific plan has been made by Comforia Residential REIT (CRR) to acquire
any of the above properties.

3Topic 2

Replacement of Assets (11th Fiscal Period)

On October 19, 2015, the Investment Corporation acquired two properties (COMFORIA AZABU EAST and COMFORIAKITASANJO) and sold two properties (COMFORIA DAIKANYAMA and COMFORIA HARAJYUKU NORD). The transactions
have enhanced portfolio quality, specifically by lowering the average building age of the portfolio and improving average
NOI yield and unrealized gain of the portfolio.

Improvement in profitability and quality through asset replacement
Before asset
replacement(October 18, 2015)

Average building age
Average appraisal
NOI yield
Unrealized gain

Assets acquiredin the 11th
Fiscal Period

9.0 years
5.41%¥21,323 million

Assets sold in the
11th Fiscal Period

4.5 years
6.41%¥880 million

After asset
replacement(October 19, 2015)

11.1 years
8.9 years
5.62%
5.43%
¥503 million ¥21,699 million

Assets acquired in the 11th Fiscal Period

96 COMFORIA AZABU EAST

Topic 3Public Offering in the 12th Fiscal Period

Overview of the public offering
The Investment Corporation carried out a public offering with a subscription period from January 19 to January 20, 2016,
and February 1, 2016 as the date of payment.
Furthermore, we acquired COMFORIA SHINJUKU EASTSIDE TOWER and one other property on February 2, 2016.

Launch date

Payment date

Delivery date

Total issue price

Number of units issued

January 5

February 1

February 2¥7,519 million

39,700 units

Note: The total issue price and number of units issued include the capital increase through third-party allotment on February 26, 2016 (payment date).

Acquisitions (Acquired on February 2, 2016)
Property nameLocation

Rentable Acquisition priceunits (units) (millions of yen)Seller97

COMFORIA SHINAGAWA
EAST

Shinagawa-ku, Tokyo

97

1,430

Tokyu Land Corporation

98

COMFORIA SHINJUKUEASTSIDE TOWER

Shinjuku-ku, Tokyo

765

13,264

Tokyu Land Corporation

862

14,694Total

95 COMFORIA KITASANJO
98 COMFORIA SHINJUKU EASTSIDE TOWER

July 2011

Completion date

September 2010i
Meiji-dorShinjukunishiguchi

COMFORIA SHINJUKUEASTSIDE TOWER
Yasu

kuni-

Keio Shinsen
Shinjuku

dori

Shinjuku-sanchome

juku

Yoyogi

Toei Subway
Shinjuku Line

Shinjuku-gyoemmae-dori

Marunouchi Line

Shinjuku Gyoen

Nearest station
Distance(on foot)
OwnershipCompletion date

6-27-29 Shinjuku, Shinjuku-ku, Tokyo
Tokyo Metro Fukutoshin Line and one other line
A two-minute walk from Higashishinjuku Station
Tokyo Metro Marunouchi Line and two other lines
A four-minute walk from Shinjuku-sanchome Station
Building with a fixed-term lease
January 2012

Appraisal NOI yield 5.62%

Line

Appraisal NOI yield 7.70%

Shin

oshin

Appraisal NOI yield 5.96%

2-2-51 Kitasanjohigashi, Chuo-ku,
Sapporo-shi, Hokkaido

kuAddress

Address

Oedo Line

Higashishinjuku

Fukut

Completion date

2-29-1 Higashiazabu, Minato-ku, Tokyo

Wakamatsukawada

Seibu-Shinjuku

ShinjuAddress

Seibu
ShinjukuLine

Shinokubo

e
o Lin
Chu
Yamanote Line

Okubo

Assets sold in the 11th Fiscal Period
25 COMFORIA HARAJYUKU NORD

Address

97 COMFORIA SHINAGAWA EAST
Address

Address

3-8-19 Sendagaya,
Shibuya-ku, Tokyo

Completion dateFebruary 2015

Appraisal NOI yield 5.59%

Kitashinagawa

-dori

6.29%

COMFORIA SHINAGAWA EAST
aigan
Kyuk

Appraisal NOI
yield

5.42%

Building with a fixed-term lease

ShinagawaIntercityeAppraisal NOI
yield

Ownership

品川駅
Shinagawa

Lin

Completion date July 2003

A five-minute walk from Kitashinagawa Station on the
Keikyu Line
A 10-minute walk from Shinagawa Station on the JR
Tokaido Line and five other lines

Shinagawa
Prince Hotelyu

Completion date January 2005

Nearest station
Distance(on foot)

1-20-8 Kitashinagawa, Shinagawa-ku, Tokyo

Keik

4

1-21-14 Ebisunishi,
Shibuya-ku, Tokyo(Terrace)
1-21-15 Ebisunishi
Shibuya-ku Tokyo(Tower)Yamanot
Tokaido e Line/YokosukLinea Line/ini KeihToka
Daiich
ido S
hinka
nsen

24 COMFORIA DAIKANYAMA

5

Internal Growth Strategy

Financial Strategy

Occupancy rate(%)
100

Total portfolio

95.6%

95

We will carry out equity finance (additional issuance of investment units) and debt finance (borrowings of funds andissuance of investment corporation bonds) while paying attention to financial soundness and earnings stability.
Furthermore, we will appropriately control our balance sheet by maintaining an LTV level to secure fund capacity.

Total portfolio (year-on-year)

96.2%

95.1%

94.9%

95.2%

95.5%

96.0% 95.9% 95.6% 95.8% 95.8% 96.2%

94.6%

Interest-bearing debt

90
100

Central Tokyo

Sub-central Tokyo

Tokyo metropolitan area

End of 9th
Fiscal Period

End of 10th
Fiscal Period

End of 11th
Fiscal Period(ended Jan. 31, 2015)(ended Jul. 31, 2015)(ended Jan. 31, 2016)

54.2%

49.7%

49.8%

90.2%

85.3%

78.0%

Other major cities

LTV

95

(Note)

Long-term debt ratio
90
9th FP

Jan.
2015

10th FP

Feb.

Mar.

Apr.

Fixed-interest debt ratio

90.2%

97.8%

97.5%

Average maturity

3.6 years

3.9 years

3.4 years

Weighted avg. interest

0.86%

0.87%

0.87%

11th FP

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2016

Note: Interest-bearing debt balance/total assets

Utilization of the Tokyu Fudosan Holdings GroupWe aim to secure stable earnings of the portfolio and maintain and increase asset value by fully utilizing the support of the
Tokyu Fudosan Holdings Group, primarily the sponsor support of Tokyu Land Corporation, and the original management
expertise of the Asset Management Company.

Diversification of repayment dates
The expected repayments of debt and investment corporation bonds as of January 31, 2016 are as follows:
Debt(Millions of yen)

15,00012,495

Tokyu Fudosan Holdings Group
Property management

Secure stable earnings

Asset management
and fund management

Maintain andincrease asset value

TLC Comforia Investment Management INC.
Original management expertise of theAsset Management Company

Investment corporation bonds

9,925

10,000

7,480

6,300

6,900 7,500

5,500

5,000

3,700

5,000
3,410

3,000 3,300

3,410

1,350
0

11th
FP

12th
FP

13th
FP

14th
FP

15th
FP

16th
FP

17th
FP

18th
FP

19th
FP

20th
FP

21st
FP

22nd 23rd
FP
FP

24th
FP

25th
FP

26th
FP

27th
FP

28th
FP

29th
FP

30th
FP

31st
FP

Loan balances
The Investment Corporation’s loan balances as of January 31, 2016 are as follows:

Development of COMFORIA WELBOX service

1.0%
1.7%

We strive to offer high-quality services that increase tenantsatisfaction in light of the Comforia brand concept. COMFORIA
WELBOX, a dedicated service for tenants that was introduced
in June 2015, offers unique Internet services developed withthe support of EWEL, one of the Tokyu Fudosan HoldingsGroup companies. About 4,000 services are provided in total,
including discount services at Tokyu Hands, another groupcompany, as well as discounts for car rentals, cinema andaccommodation. By providing such services, we hope to
improve the profitability of our portfolio through increased
tenant satisfaction and raised occupancy rates.

2.3%
2.6%
3.0%

7.7%
15.0%
15.6%

Lender0.7%
0.7%■ Mitsubishi UFJ Trust and Banking Corporation

18.2%
16.1%
15.6%

■ Sumitomo Mitsui Trust Bank, Limited

12,305■ Mizuho Bank, Ltd.

11,870■ The Bank of Tokyo-Mitsubishi UFJ, Ltd.

11,870■ Development Bank of Japan Inc.

11,430■ Sumitomo Mitsui Banking Corporation

5,875■ The Norinchukin Bank

2,250

■ Mizuho Trust & Banking Co., Ltd.

2,000

■ The Bank of Fukuoka, Ltd.

1,750

■ The Tokyo Tomin Bank, Limited

1,300■ Shinkin Central Bank

750

■ The 77 Bank, Ltd.

500

■ The Daishi Bank, Ltd.
List of the services of COMFORIA WELBOX

6Loan balance(millions of yen)
13,870Total

500
76,2707

Portfolio Map
The Investment Corporation manages assets with superb accessibility
located mainly in the Tokyo 23 wards.

Tokyo 23 wards + Tokyo metropolitan area
47

Central Tokyo 39 properties

1 COMFORIA NIHONBASHI NINGYOCHO
2 COMFORIA WASEDA
3 COMFORIA SHIMOOCHIAI
4 COMFORIA HIGASHINAKANO
14 COMFORIA GINZA EAST
15 COMFORIA AZABUDAI
16 COMFORIA SHIBAKOEN
17 COMFORIA NISHIAZABU
18 COMFORIA MINAMIAOYAMA
19 COMFORIA MINAMIAOYAMA DEUX

20 COMFORIA NISHIWASEDA
59 COMFORIA AKASAKA
26 COMFORIA HARAJYUKU
60 COMFORIA MITA EAST
30 COMFORIA MITA NORTH
61 COMFORIA SHIBAURA CANAL
31 COMFORIA SHIBAURA BOWHOUSE 69 COMFORIA KITASANDO
48 COMFORIA SHIROKANETAKANAWA 70 COMFORIA YOYOGIUEHARA
49 COMFORIA NIHONBASHI NINGYOCHO EAST 71 COMFORIA SASAZUKA
50 COMFORIA ATAGO
72 COMFORIA SHINJUKUGYOEN II
56 COMFORIA KUDAN
73 COMFORIA ICHIGAYAYANAGICHO
57 COMFORIA NIHONBASHININGYOCHO NORTH 74 COMFORIA KAGURAZAKA
58 COMFORIA SHINKAWA
80 COMFORIA NIBANCHO

81 COMFORIA NISHISHINJUKU
83 COMFORIA KANDAJINBOCHO
84 COMFORIA NIHONBASHI
85 COMFORIA TAMACHI
86 COMFORIA AZABUJUBAN
92 COMFORIA SHINJUKUGYOEN I
93 COMFORIA KAGURAZAKA DEUX
96 COMFORIA AZABU EAST
98 COMFORIA SHINJUKU EASTSIDE TOWER

NerimaSub-central Tokyo 48 properties

5 COMFORIA BUNKYOKASUGA
39 COMFORIA GAKUGEIDAIGAKU
88 COMFORIA MINAMISUNAMACHI
6 COMFORIA ASAKUSAMATSUGAYA
40 COMFORIA HIGASHINAKANO DEUX 89 COMFORIA HIGASHISHINAGAWA
7 COMFORIA NISHIOI
41 COMFORIA HIGASHIIKEBUKURO WEST 90 COMFORIA MEGUROYAKUMO
8 COMFORIA NAKANO
43 COMFORIA RYOGOKU DEUX
9 COMFORIA SHIMOKITAZAWA
44 COMFORIA OMORI DEUX
10 COMFORIA NISHIKAMATA
45 COMFORIA MACHIYA
Acquired in the 11th
11 COMFORIA OYAMA
51 COMFORIA ASAKUSABASHI
Fiscal Period
COMFORIA KITASANJO
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 52 COMFORIA RYOGOKU SOUTH
13 COMFORIA KOMAZAWA
53 COMFORIA TOYOSU
21 COMFORIA KOISHIKAWA
55 COMFORIA SUMIDA-TACHIBANA
22 COMFORIA SENGOKU
62 COMFORIA UENOHIROKOJI
23 COMFORIA DAIKANYAMAAOBADAI
63 COMFORIA KASUGATOMISAKA
27 COMFORIA IKEBUKURO
64 COMFORIA HONKOMAGOME
29 COMFORIA RYOGOKUISHIWARA
65 COMFORIA MORISHITA
32 COMFORIA ASAKUSABASHI DEUX
66 COMFORIA KIBAKOEN
33 COMFORIA OSHIAGE
67 COMFORIA MEGURO CHOJAMARU
34 COMFORIA HONJOAZUMABASHI
68 COMFORIA NISHIMAGOME
35 COMFORIA KIYOSUMISHIRAKAWA TROIS 75 COMFORIA HIGASHIIKEBUKURO EAST
36 COMFORIA MONZENNAKACHO
76 COMFORIA HIGASHIIKEBUKUROCOMFORIA
HIMONYA
37
82 COMFORIA KOMABACOMFORIAMISYUKU
38
87 COMFORIA KINSHICHO

91 COMFORIA YOGA
94 COMFORIA ITABASHINAKAJUKU
97 COMFORIA SHINAGAWA EAST

95
28

94
11

Kita

Arakawa

Katsushika
45
27 Toshima
64
41
Ikebukuro
75 22
Taito
76
SumidaNakano3
Bunkyo
Ueno
21 5
55
8
20
6
4
62
33
40
2
63
34
32 51 29
Shinjuku 74
87
73 93
81
56 83
57 84 43 52
98
72
Suginami
49
Shinjuku 69 92
65 35
80 Chiyoda
1
Tokyo
12
88
58 36
Minato71 Shibuya
59
66 Koto26 1814
919 15 5070
Chuo
Shibuya
17 96
53
30 16
82
86 48 60
23
Setagaya
38
61
67
31
85
13
91
39
Shinagawa
37
97
Meguro89
90
Shinagawa

7
Ota

68

Edogawa46

Acquired in the 12th
Fiscal Period
COMFORIA SHINAGAWA EAST

44

10Acquired in the 11th
Fiscal Period
COMFORIA AZABU EASTTokyo metropolitan area 5 properties

28 COMFORIA KOMAE
42 COMFORIA YOKOHAMAKANNAI
46 COMFORIA ICHIKAWAMYODEN
47 COMFORIA YATSUKA
77 COMFORIA SHINKOYASU

Adachi

ItabashiAcquired in the 12th
Fiscal Period
COMFORIA SHINJUKUEASTSIDE TOWER

As of February 2, 2016

Central Tokyo
Sub-central Tokyo

78

77

Other major cities 4 properties

54 COMFORIA SHIN-OSAKA
78 COMFORIA SHINSAKAE
79 COMFORIA KITAHORIE
95 COMFORIA KITASANJOTokyo metropolitan area
Other major cities

54 79

Acquired in the 11thand 12th Fiscal Periods

42

Total 96 properties
8

9

Portfolio List
No.

Property nameGross floorarea (m2)

Rentableunits

Acquisition price(thousands of yen)

Investment
ratio (%)

NihonbashiNingyocho, Chuo-ku, Tokyo

3,021.53

45

1,586,837

1.0

Bentencho, Shinjuku-ku, Tokyo

3,080.28

79

1,900,000

1.2

Nakaochiai, Shinjuku-ku, Tokyo

2,726.15

44

1,181,000

0.7

Kitashinjuku, Shinjuku-ku, Tokyo

1,058.75

37552,707

0.3

Nishikata, Bunkyo-ku, Tokyo

3,198.5480

1,470,000

0.9Matsugaya, Taito-ku, Tokyo

2,264.8462

910,000

0.6

Nishioi, Shinagawa-ku, Tokyo

1,542.53

59902,370

0.6

Kamitakada, Nakano-ku, Tokyo

1,935.39

35

881,863

0.5

Hanegi, Setagaya-ku, Tokyo

5,287.18

116

2,587,000

1.6

Nishikamata, Ota-ku, Tokyo

3,358.99103

1,550,000

1.0

Oyamacho, Itabashi-ku, Tokyo

4,793.28

97

1,987,000

1.2

Miyoshi, Koto-ku, Tokyo

1,317.2245740,000

0.5

Komazawa, Setagaya-ku, Tokyo

1,695.4639

1,290,000

0.8

Irifune, Chuo-ku, Tokyo

5,773.48

133

3,059,000

1.9

Azabudai, Minato-ku, Tokyo

1,028.94

24

574,000

0.4

Shibakoen, Minato-ku, Tokyo

1,914.13

54

1,398,000

0.9Nishiazabu, Minato-ku, Tokyo

1,069.7722755,000

0.5

Minamiaoyama, Minato-ku, Tokyo

1,763.88

24

1,041,000

0.6

Minamiaoyama, Minato-ku, Tokyo

487.97

6

248,000

0.2

Takadanobaba, Shinjuku-ku, Tokyo

2,971.10

60

1,685,000

1.0

Koishikawa, Bunkyo-ku, Tokyo

1,015.7137

552,000

0.3

Sengoku, Bunkyo-ku, Tokyo

3,514.75

44

1,219,000

0.8

Aobadai, Meguro-ku, Tokyo

1,533.95

26

926,000

0.6

Sendagaya, Shibuya-ku, Tokyo

6,314.63

99

3,629,000

2.2

Ikebukuro, Toshima-ku, Tokyo

1,171.21

28

602,000

0.4

Iwadokita, Komae-shi, Tokyo

1,468.30

24

399,000

0.2

Ishiwara, Sumida-ku, Tokyo

1,151.4747651,000

0.4

Mita, Minato-ku, Tokyo

1,257.9430

850,000

0.5

Kaigan, Minato-ku, Tokyo

4,862.1875

2,650,000

1.6

Asakusabashi, Taito-ku, Tokyo

1,596.33

46874,000

0.5

Narihira, Sumida-ku, Tokyo

1,369.2647714,000

0.4

Honjo, Sumida-ku, Tokyo

1,434.29

48

762,000

0.5

Shirakawa, Koto-ku, Tokyo

1,553.4550873,000

0.5

Fuyuki, Koto-ku, Tokyo

4,916.04

144

2,658,000

1.6

Himonya, Meguro-ku, Tokyo

2,302.53

28

1,189,000

0.7

Ikejiri, Setagaya-ku, Tokyo

2,842.56

59

1,874,000

1.2

Shimouma, Setagaya-ku, Tokyo

1,919.59

38

1,138,000

0.7

Higashinakano, Nakano-ku, Tokyo

1,419.08

40

833,000

0.5

Higashiikebukuro, Toshima-ku, Tokyo

8,296.57

155

3,911,000

2.4

Okinacho, Naka-ku, Yokohama-shi, Kanagawa

2,377.6260

972,000

0.6

Chitose, Sumida-ku, Tokyo

2,010.27

66

1,014,730

0.6

Omorikita, Ota-ku, Tokyo

2,180.52

64

1,188,000

0.7Arakawa, Arakawa-ku, Tokyo

1,361.9230

594,000

0.4

Shioyaki, Ichikawa-shi, Chiba

1,533.11

48

606,000

0.4

Sezaki, Soka-shi, Saitama

1,710.09

62

626,000

0.4

Mita, Minato-ku, Tokyo

1,932.57

37

1,300,000

0.8

NihonbashiNingyocho, Chuo-ku, Tokyo

2,912.38

82

2,139,300

1.3

Toranomon, Minato-ku, Tokyo

1,147.20

38

826,000

0.5

Yanagibashi, Taito-ku, Tokyo

5,273.67141

2,680,000

1.7

Chitose, Sumida-ku, Tokyo

2,404.23

61

1,240,000

0.8

Edagawa, Koto-ku, Tokyo
Higashinakajima, Higashiyodogawa-ku,
Osaka-shi, Osaka

4,513.10

161

3,096,650

1.9

6,530.63

133

2,400,000

1.5

LocationNo.

Property nameLocation

Gross floorarea (m2)

Rentableunits

Acquisition price(thousands of yen)

Investment
ratio (%)

1,888.25
1,787.89

56

938,000

0.6

36

1,280,500

0.8

1,717.58

36

1,108,000

0.7

2,866.0859

1,840,800

1.1

2,956.70

40

1,945,000

1.2

4,973.31

111

3,190,550

2.0

2,703.41

95

1,570,000

1.0

1,935.60

37

1,050,000

0.7

4,479.23

106

2,912,150

1.8

2,623.37

36

1,344,000

0.8

2,159.39

75

1,530,000

0.9

1,753.8560

956,000

0.6

3,720.52

71

1,972,000

1.2

1,797.93

52

990,000

0.6

7,667.04

144

4,268,000

2.6

2,344.24

51

1,560,000

1.0

3,440.91

89

1,789,000

1.1

2,312.7965

1,806,000

1.1

2,416.85

69

1,623,000

1.0

1,161.31

29

736,000

0.5

3,156.84

90

1,712,000

1.1

1,798.18

48

1,132,000

0.7

2,622.19

36

1,077,000

0.7

4,098.97

144

1,653,400

1.0

1,910.0173

1,010,000

0.6

2,165.01

42

1,621,000

1.0

1,947.14

56

1,625,000

1.0

7,450.62

136

5,000,000

3.1

1,823.86

431,434,000

0.9

2,950.59

63

1,956,000

1.2

5,494.78

77

3,272,000

2.0

1,632.38

55

1,471,000

0.9

1,917.15

46

1,042,000

0.6

8,124.20

211

4,681,000

2.9

3,298.65

86

1,510,000

0.9

1,333.57

36

813,000

0.5

1,798.36

39

1,041,000

0.6

1,832.93

52

1,406,000

0.9

1,637.00

46

1,245,000

0.8

7,732.25

104

3,794,280

2.4

3,949.7960

660,000

0.4

3,505.1269

1,900,000

1.2

265,002.40

6,141

146,750,137

90.9

Portfolio properties at the 11th Fiscal Period-end
1 COMFORIA NIHONBASHI NINGYOCHO
2 COMFORIA WASEDA
3 COMFORIA SHIMOOCHIAI
4 COMFORIA HIGASHINAKANO
5 COMFORIA BUNKYOKASUGA
6 COMFORIA ASAKUSAMATSUGAYA
7 COMFORIA NISHIOI
8 COMFORIA NAKANO
9 COMFORIA SHIMOKITAZAWA
10 COMFORIA NISHIKAMATA
11 COMFORIA OYAMA
12 COMFORIA KIYOSUMISHIRAKAWA SOUTH
13 COMFORIA KOMAZAWA
14 COMFORIA GINZA EAST
15 COMFORIA AZABUDAI
16 COMFORIA SHIBAKOEN
17 COMFORIA NISHIAZABU
18 COMFORIA MINAMIAOYAMA
19 COMFORIA MINAMIAOYAMA DEUX
20 COMFORIA NISHIWASEDA
21 COMFORIA KOISHIKAWA
22 COMFORIA SENGOKU
23 COMFORIA DAIKANYAMAAOBADAI
26 COMFORIA HARAJYUKU
27 COMFORIA IKEBUKURO
28 COMFORIA KOMAE
29 COMFORIA RYOGOKUISHIWARA
30 COMFORIA MITA NORTH
31 COMFORIA SHIBAURA BOWHOUSE
32 COMFORIA ASAKUSABASHI DEUX
33 COMFORIA OSHIAGE
34 COMFORIA HONJOAZUMABASHI
35 COMFORIA KIYOSUMISHIRAKAWA TROIS
36 COMFORIA MONZENNAKACHO
37 COMFORIA HIMONYA
38 COMFORIA MISYUKU
39 COMFORIA GAKUGEIDAIGAKU
40 COMFORIA HIGASHINAKANO DEUX
41 COMFORIA HIGASHIIKEBUKURO WEST
42 COMFORIA YOKOHAMAKANNAI
43 COMFORIA RYOGOKU DEUX
44 COMFORIA OMORI DEUX
45 COMFORIA MACHIYA
46 COMFORIA ICHIKAWAMYODEN
47 COMFORIA YATSUKA
48 COMFORIA SHIROKANETAKANAWA
49 COMFORIA NIHONBASHI NINGYOCHO EAST
50 COMFORIA ATAGO
51 COMFORIA ASAKUSABASHI
52 COMFORIA RYOGOKU SOUTH
53 COMFORIA TOYOSU
54 COMFORIA SHIN-OSAKA
10

Tachibana, Sumida-ku,Tokyo
55 COMFORIA SUMIDA-TACHIBANA
Kudanminami, Chiyoda-ku, Tokyo
56 COMFORIA KUDAN
57 COMFORIA NIHONBASHININGYOCHO NORTH Nihonbashi Horidomecho, Chuo-ku, Tokyo
Shinkawa, Chuo-ku, Tokyo
58 COMFORIA SHINKAWA
Akasaka, Minato-ku, Tokyo
59 COMFORIA AKASAKA
Shiba, Minato-ku, Tokyo
60 COMFORIA MITA EAST
Kaigan, Minato-ku, Tokyo
61 COMFORIA SHIBAURA CANAL
Ueno, Taito-ku, Tokyo
62 COMFORIA UENOHIROKOJI
Kasuga, Bunkyo-ku, Tokyo
63 COMFORIA KASUGATOMISAKA
Honkomagome, Bunkyo-ku, Tokyo
64 COMFORIA HONKOMAGOME
Shinohashi, Koto-ku, Tokyo
65 COMFORIA MORISHITA
Kiba, Koto-ku, Tokyo
66 COMFORIA KIBAKOEN
Kamiosaki, Shinagawa-ku, Tokyo
67 COMFORIA MEGURO CHOJAMARU
Nishimagome, Ota-ku, Tokyo
68 COMFORIA NISHIMAGOME
Sendagaya, Shibuya-ku, Tokyo
69 COMFORIA KITASANDO
Uehara, Shibuya-ku, Tokyo
70 COMFORIA YOYOGIUEHARA
Sasazuka, Shibuya-ku, Tokyo
71 COMFORIA SASAZUKA
Shinjuku, Shinjuku-ku, Tokyo
72 COMFORIA SHINJUKUGYOEN II
Ichigayayanagicho, Shinjuku-ku, Tokyo
73 COMFORIA ICHIGAYAYANAGICHO
Iwatocho, Shinjuku-ku, Tokyo
74 COMFORIA KAGURAZAKA
Higashiikebukuro, Toshima-ku, Tokyo
75 COMFORIA HIGASHIIKEBUKURO EAST
Higashiikebukuro, Toshima-ku, Tokyo
76 COMFORIA HIGASHIIKEBUKURO
Koyasudori, Kanagawa-ku, Yokohama-shi, Kanagawa
77 COMFORIA SHINKOYASU
Shinsakae, Naka-ku, Nagoya-shi, Aichi
78 COMFORIA SHINSAKAE
Kitahorie, Nishi-ku, Osaka-shi, Osaka
79 COMFORIA KITAHORIE
Nibancho, Chiyoda-ku, Tokyo
80 COMFORIA NIBANCHO
Kitashinjuku, Shinjuku-ku, Tokyo
81 COMFORIA NISHISHINJUKUIkejiri, Setagaya-ku, Tokyo
82 COMFORIA KOMABA
Kandajinbocho, Chiyoda-ku, Tokyo
83 COMFORIA KANDAJINBOCHO
Nihonbashibakurocho, Chuo-ku, Tokyo
84 COMFORIA NIHONBASHI
Shibaura, Minato-ku, Tokyo
85 COMFORIA TAMACHI
Mita, Minato-ku, Tokyo
86 COMFORIA AZABUJUBAN
Taihei, Sumida-ku, Tokyo
87 COMFORIA KINSHICHO
Minamisuna, Koto-ku, Tokyo
88 COMFORIA MINAMISUNAMACHI
Higashishinagawa, Shinagawa-ku, Tokyo
89 COMFORIA HIGASHISHINAGAWA
Yakumo, Meguro-ku, Tokyo
90 COMFORIA MEGUROYAKUMO
Yoga, Setagaya-ku, Tokyo
91 COMFORIA YOGA
Shinjuku, Shinjuku-ku, Tokyo
92 COMFORIA SHINJUKUGYOEN I
Iwatocho, Shinjuku-ku, Tokyo
93 COMFORIA KAGURAZAKA DEUX
Nakajuku, Itabashi-ku, Tokyo
94 COMFORIA ITABASHINAKAJUKU
Kitasanjohigashi, Chuo-ku, Sapporo-shi, Hokkaido
95 COMFORIA KITASANJO
Higashiazabu, Minato-ku, Tokyo
96 COMFORIA AZABU EAST
Sub-total

Portfolio properties acquired during the 12th Fiscal Period
97 COMFORIA SHINAGAWA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

3,701.0797

1,430,000

0.9(Tower Building) 69,308.35(Annex Building) 2,305.29(Gate Building)
203.15765

13,264,000

8.2

Sub-total

75,517.86862

14,694,000

9.1

Total

340,520.26

7,003

161,444,137

100.0

98 COMFORIA SHINJUKU EASTSIDE TOWER

Shinjuku, Shinjuku-ku, Tokyo

11

Portfolio List
Central Tokyo
93 COMFORIA KAGURAZAKA DEUX

1286 COMFORIA AZABUJUBAN

85 COMFORIA TAMACHI

83 COMFORIA KANDAJINBOCHO

81 COMFORIA NISHISHINJUKU

92 COMFORIA SHINJUKUGYOEN I

60 COMFORIA MITA EAST

59 COMFORIA AKASAKA

84 COMFORIA NIHONBASHI

71 COMFORIA SASAZUKA

69 COMFORIA KITASANDO

26 COMFORIA HARAJYUKU

58 COMFORIA SHINKAWA

16 COMFORIA SHIBAKOEN

73 COMFORIA ICHIGAYAYANAGICHO

13

Portfolio List
48 COMFORIA SHIROKANETAKANAWA

50 COMFORIA ATAGO

56 COMFORIA KUDAN

70 COMFORIA YOYOGIUEHARA

74 COMFORIA KAGURAZAKA

80 COMFORIA NIBANCHO

89 COMFORIA HIGASHISHINAGAWA

88 COMFORIA MINAMISUNAMACHI

87 COMFORIA KINSHICHO

82 COMFORIA KOMABA

52 COMFORIA RYOGOKU SOUTH

75 COMFORIA HIGASHIIKEBUKURO EAST

41 COMFORIA HIGASHIIKEBUKURO WEST

63 COMFORIA KASUGATOMISAKA

51 COMFORIA ASAKUSABASHI

Sub-central Tokyo
94 COMFORIA ITABASHINAKAJUKU

1491 COMFORIA YOGA

90 COMFORIA MEGUROYAKUMO

15

Portfolio List
55 COMFORIA SUMIDA-TACHIBANA

Basic Policies
65 COMFORIA MORISHITA

66 COMFORIA KIBAKOEN

We invest intensively in rental residences for singles and small families, mainly in the Tokyo metropolitan area, based on ourbasic policies of “investments in residential properties with stable earnings and high growth potential” and “utilization of the
Tokyu Fudosan Holdings Group,” with the aim of ensuring stable earnings over the medium and long term and maximizing
our unitholders’ value.

“COMFORIA” series
We will invest in and manage rental residences, fully utilizing the concept and expertise of the urban rental residence“Comforia” series, which Tokyu Land Corporation has produced.

For a Superior Level of Living Comfort
COMFORIA is the name we have given to the urban rental residences produced by the Tokyu Land Corporation.
The word COMFORIA is a compound that we coined from “comfort,” and “ia,” a Latin suffix meaning “place.”
The idea that residences are not just containers has given birth to our “COMFORIA” series of rental residences made specificallyfor people who wish to live freely and affluently in urban communities.
COMFORIA offers living comfort beyond expectation and surpasses the level of mere convenience in many ways.

67 COMFORIA MEGURO CHOJAMARU

68 COMFORIA NISHIMAGOME

Four Advantages COMFORIA Offers

76 COMFORIA HIGASHIIKEBUKURO

Location

Quality

COMFORIA knows how
valuable time is.

COMFORIA knows whathigh quality
feels like.

SafetyService

COMFORIA knows
where peace of mind
comes from.

COMFORIA knows
how residents feel.

Value chain of the Tokyu Fudosan Holdings GroupWe have concluded sponsor support agreements, support agreements and property management agreements for
managed assets with the Asset Management Company and the Tokyu Fudosan Holdings Group companies, to fully utilize
the value chain and expertise of the Tokyu Fudosan Holdings Group. With the support of the Tokyu Fudosan HoldingsGroup companies through such agreements, we will aim to expand our asset size (external growth), and maintain andincrease asset value (internal growth).

42 COMFORIA YOKOHAMAKANNAI

Tokyu Land Corporation
Comprehensive real estate developer

Other major cities

Tokyo metropolitan area
47 COMFORIA YATSUKA

54 COMFORIA SHIN-OSAKA

Sponsor support agreement

TOKYU COMMUNITY CORP.
Management of condominiums
and buildings● Information on the sale of properties● Warehousing● Advisory● Human resources/Expertise

Support agreement

Tokyu Livable, Inc.
Comprehensive real estate marketingintermediary and brokerage ofland and buildings
Support agreement● Information on the sale of properties● Considering becoming tenants● Market information● Information on the sale of properties● Market information

TOKYU E-LIFE DESIGN Inc.
Management and operation of senior
housing and nursing homes

TLC Comforia Investment Management INC.

Support agreement

Support agreement● Market information

EWEL, Inc.
Welfare service agency businessTokyu Housing Lease Corporation
Property management/Tenant leasing● Information on thewelfare services forresidential tenants

Support agreement● Information on the sale of properties ● Considering becoming tenants● Market information

Property management agreement

1617

Overview of the Investment Corporation and Asset Management Company

Overview of the Investment Corporation (As of January 31, 2016)

II Asset Management Report
Overview of Asset Management
1. Performance of the Investment Corporation

Name of theinvestment corporation

Comforia Residential REIT, Inc

Representative

Hiroyuki Tohmata, Executive Director

Address

1-16-3 Dogenzaka, Shibuya-ku,
Tokyo 150-0043, Japan

Inquiries

TLC Comforia Investment Management INC.
Tel: +81-3-6415-6200

Fiscal period-end

January 31 and July 31 of each year

History
June 8, 2010

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

June 30, 2010

Implementation of registration by the prime minister under Article 187 of the Act on Investment
Trusts and Investment Corporations (registration number: Director of Kanto Finance Bureau No. 71)

February 6, 2013

Listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange

Structure
The Investment Corporation

SponsorTokyu Land Corporation2

Mitsubishi UFJ Trust and Banking Corporation

5

Asset Management Company
TLC Comforia Investment
Management INC.

Asset Custodian
General Administration (operationof the administrative instrument)
Transfer Agent

Comforia Residential REIT, Inc

1

3

Unitholders’ Meeting

Heiseikaikeisha Tax Corporation

Board of Directors

General Administration(corporation bond)6

Supporting Company
Tokyu Livable, Inc.
TOKYU COMMUNITY CORP.
Tokyu Housing Lease Corporation
TOKYU E-LIFE DESIGN Inc.
EWEL, Inc.

General Administration(accounting, etc.)

Executive Director
Hiroyuki Tohmata
Supervisory Director Yoshihiro Kataoka
Supervisory Director Koji Yamamoto

4

Sumitomo Mitsui Trust Bank, Limited

Asset management agreement
Asset custody agreement,
Administrative service agreement,
Transfer agency agreement
3 Accounting service agreement
4 Fiscal, issuing and payment agency agreement
5 Sponsor support agreement
6 Support agreement
1
2

AuditorErnst & Young ShinNihon LLC

Overview of the Asset Management Company (As of January 31, 2016)

Fiscal period

7thFiscal Period

8thFiscal Period

9thFiscal Period

10th
Fiscal Period

11th
Fiscal PeriodBusiness period

FromAug. 1, 2013 toJan. 31, 2014

From
Feb. 1, 2014 toJul. 31, 2014

From
Aug. 1, 2014 toJan. 31, 2015

From
Feb. 1, 2015 toJul. 31, 2015

From
Aug. 1, 2015 toJan. 31, 2016

Operating revenue(millions of
yen)

2,673

4,017

4,103

4,952

5,050

[Rent revenue - real estate](millions ofyen)[2,667][4,014][4,099][4,942][4,957]

Operating expenses(millions of
yen)

1,246

1,912

1,971

2,416

2,446

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

[963]

[1,551][1,519][1,919][1,902]

Operating income(millions of
yen)

1,427

2,105

2,131

2,535

2,603

Ordinary income(millions of
yen)

1,133

1,719

1,730

2,087

2,148

Profit(millions of
yen)

1,132

1,718

1,729

2,086

2,147

Total assets(millions ofyen)

80,354

125,866

132,857

158,962

159,245[Period-on-period change]
Net assets[Period-on-period change]

TLC Comforia Investment Management INC.

Representative

Hiroyuki Tohmata, President & CEO

Address

1-16-3 Dogenzaka, Shibuya-ku, Tokyo 150-0043, Japan

Established

October 2009

Capital¥200 million

Shareholder

Tokyu Land Corporation 100%

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

Overview of organization
Shareholders’ Meeting
Corporate Auditor
Board of Directors
Investment Committee

Compliance Committee
President & CEO
Compliance Officer
Compliance OfficeInternal Audit

Investment Operation Department
18

Finance & Accounting Department

Strategic Planning Department[4.0][56.6][5.6][19.6][0.2]

35,12758,62958,62977,31077,369(%)[0.0][66.9][0.0][31.9][0.1](millions ofyen)

33,97556,90056,90075,22475,224(units)67,361

100,662

402,648

473,804

473,804(yen)

521,474

145,609

145,610

163,169

163,295

Total distributions(millions of
yen)

1,132

1,718

1,729

2,086

2,055

Distribution per unit

(yen)

16,813

17,074

4,296

4,403

4,339

[Earnings distribution per unit](yen)[16,813][17,074][4,296][4,403][4,339][Distribution in excess of earnings per
unit]

(yen)

[–]

[–]

[–]

[–]

[–]

Return on assets(Note 2)

(%)

1.4

1.7

1.3

1.4

1.4

Return on unitholders’ equity(Note 3)

(%)

3.2

3.7

3.0

3.1

2.8

(%)

43.7

46.6

44.1

48.6

48.6

Unitholders’ capital
Number of investment units issued
Net assets per unit

Unitholders’ equity ratio(Note 1)

(Note 4)

[Period-on-period change]
Trade name(%)(millions ofyen)Interest-bearing debt(%)[–1.7][2.9][–2.5][4.5][–0.0](millions ofyen)

43,72064,92071,97078,99079,270Interest-bearing debt ratio(Note 5)

(%)

54.4

51.6

54.2

49.7

49.8

Payout ratio(Note 6)

(%)

100.0

99.9

99.9

99.9

95.7

Number of properties(properties)

55

80

82

94

94

Total leasable area

(m2)

117,763.35

174,471.74

181,571.53

214,620.36

217,652.64

Occupancy rate at end of period

(%)

96.2

94.8

95.2

95.5

96.2

Depreciation(millions of
yen)

429

664

681

816

821

Capital expenditure(millions of
yen)

17

61

95

52

52

(millions of
yen)

2,133

3,127

3,262

3,839

3,875

NOI
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 7)The Investment Corporation implemented a four-for-one split of investment units effective August 1, 2014, with July 31, 2014 as the record date. Net
assets per unit for the 8th Fiscal Period are calculated under the assumption that the split took place at the beginning of the 8th Fiscal Period.
Ordinary income ÷ [(Total assets at beginning of period + Total assets at end of period) ÷ 2] × 100
Profit ÷ [(Net assets at beginning of period + Net assets at end of period) ÷ 2] × 100
Net assets at end of period ÷ Total assets at end of period × 100
Interest-bearing debt at end of period ÷ Total assets at end of period × 100
Total distributions ÷ Profit × 100
Payout ratio is rounded down to the first decimal place.
Real estate rental revenue and expenses + Depreciation

-1-

19

3. Capital Increases

2. Asset Management Status for the 11th Fiscal Period(1) History of the Investment Corporation
Comforia Residential REIT, Inc (the “Investment Corporation”) was established on June 8, 2010 as an investment
corporation that invests mainly in residential properties in accordance with the “Act on Investment Trusts and Investment
Corporations” of Japan (Act No. 198 of 1951, as revised; hereinafter referred to as the “Investment Trust Act”), withregistration by the Prime Minister completed as of June 30, 2010 under Article 187 of the Investment Trust Act (registration
number: Director of Kanto Finance Bureau No. 71). Investments by the Investment Corporation commenced in August 2010.
The Investment Corporation issued new investment units (18,691 units) through a public offering on February 6, 2013 andwas listed on the real estate investment trust market of the Tokyo Stock Exchange, Inc. (securities code: 3282).
Managed assets of the Investment Corporation at the commencement of operations totaled 11 properties, acquired
for a total of ¥15,508 million. As a result of additional acquisition and sale of properties under the basic policy of asset
management (to manage assets with the aim of achieving stable earnings and ensuring the steady growth of our managed
assets based on medium- and long-term perspectives to maximize our unitholders’ value) stipulated in the regulations of theInvestment Corporation, the portfolio owned as of the end of the 11th Fiscal Period includes 94 properties, acquired for a
total of ¥146,750 million.
(2) Investment performance(i) Investment environment
During the 11th Fiscal Period, the Japanese economy remained on a modest recovery trend amid improvements in theemployment and income environment. Under these circumstances, the rental residence market maintained highoccupancy rates, with unit rent roughly unchanged across the board. In the real estate investment market, there is strong
motivation to invest, not only by J-REIT but also by individuals, one-room apartment dealers, some domestic pension
funds and overseas investors, on the back of a favorable funding environment, which has resulted in continued
overheated competition for acquisition.
(ii) Acquisition and sale of assets
During the 11th Fiscal Period, the Investment Corporation acquired COMFORIA AZABU EAST and one other property,
and sold COMFORIA DAIKANYAMA and one other property in October 2015. As a result, assets owned by theInvestment Corporation as of the end of the 11th Fiscal Period totaled 94 properties, acquired for a total of¥146,750 million.
(iii) Operation management of assets owned by the Investment Corporation
The Investment Corporation consigns property management operations mainly to Tokyu Housing Lease Corporation,
which has an extensive track record in managing the “Comforia” series of properties. Under the “Comforia” series, we
promote unified management and strive to improve operational efficiency and shorten periods of vacancy.
(3) Overview of funding
During the 11th Fiscal Period, the Investment Corporation borrowed funds (¥280 million) in October 2015 to be appropriatedfor the acquisition of COMFORIA AZABU EAST and one other property. Subsequently, another borrowing was undertaken
in November 2015 (¥1,980 million) to repay existing loans that had reached their due date (¥1,980 million). As a result,unitholders’ capital as of the end of the 11th Fiscal Period (January 31, 2016) was ¥75,224 million, interest-bearing debt was¥79,270 million, the ratio of interest-bearing debt to total assets (LTV) was 49.8% as of the end of the 11th Fiscal Period, theaverage maturity of interest-bearing debt as of the end of the period was 3.4 years, the ratio of long-term debt was 78.0%,
and the fixed rate ratio was 97.5%.
The Investment Corporation obtained the following rating as of the end of the 11th Fiscal Period.
Name of credit rating agency

RatingOutlookJapan Credit Rating Agency, Ltd. (JCR)

A+

Positive(4) Overview of performance and distributions
As a result of investment during the 11th Fiscal Period, the Investment Corporation posted operating revenues of ¥5,050
million, operating income of ¥2,603 million, ordinary income of ¥2,148 million, and profit of ¥2,147 million.
The Investment Corporation carries out distributions so that the Special Provisions for Taxation on Investment Corporations(Article 67-15 of the Act on Special Measures Concerning Taxation (Law No. 26 of 1957, as revised; hereinafter referred toas the “Act on Special Measures Concerning Taxation”)) are applied. For the 11th Fiscal Period, ¥92 million, which
represents a part of gain on sales of real estate properties, has been included in internal reserves as a source of future
distribution through the utilization of Article 66-2 “Special Provisions for Taxation for Advance Acquisition of Land, etc. in2009 and 2010” of the Act on Special Measures Concerning Taxation. As a result, the distributions per unit (DPU) were
¥4,339 for the period.

20

-2-

Date

Number of investment units
issued (units)

Type

ChangeBalanceUnitholders’ capital(millions of yen)
ChangeRemarks

Balance

June 8, 2010

Establishment throughprivate placement

200

200

100

100

(Note 1)

August 30, 2010

Capital increase throughprivate placement

7,800

8,000

3,900

4,000

(Note 2)

March 18, 2011

Capital increase throughprivate placement

24,27032,27011,84015,840(Note 3)February 2, 2012

Capital increase throughprivate placement

16,40048,6708,200

24,040(Note 4)

February 5, 2013

Capital increase throughpublic offering

18,691

67,361

9,935

33,975(Note 5)February 3, 2014

Capital increase throughpublic offering

31,90099,261

21,96055,936(Note 6)

February 26, 2014

Capital increase throughthird-party allotment

1,401

100,662964

56,900(Note 7)

August 1, 2014

Investment unit split

301,986

402,648–

56,900(Note 8)February 2, 2015

Capital increase throughpublic offering

70,000472,648

18,02574,926(Note 9)February 27, 2015

Capital increase throughthird-party allotment

1,156

473,804297

75,224(Note 10)(Note 1)
(Note 2)
(Note 3)

Established at an issue price of ¥500,000 per investment unit.
Issued privately placed investment units at an issue price of ¥500,000 per investment unit to fund the acquisition of new properties.
Issued privately placed investment units at an issue price of ¥500,000 (subscription price of ¥487,852) per investment unit to fund the acquisition of
new properties and repay loans.
(Note 4) Issued privately placed investment units at an issue price of ¥500,000 per investment unit to fund the acquisition of new properties and repay loans.
(Note 5) Issued investment units at an issue price of ¥550,000 (subscription price of ¥531,575) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 6) Issued investment units at an issue price of ¥712,530 (subscription price of ¥688,413) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 7) Issued investment units to Mizuho Securities Co., Ltd. at an issue price of ¥688,413 per investment unit.
(Note 8) Carried out a four-for-one-split of investment units effective as of August 1, 2014, with July 31, 2014 as the record date.
(Note 9) Issued investment units at an issue price of ¥266,253 (subscription price of ¥257,514) per investment unit to fund the acquisition of new properties
and repay loans.
(Note 10) Issued investment units to Mizuho Securities Co., Ltd. at an issue price of ¥257,514 per investment unit.

[Fluctuation in market price of the investment securities]
The highest and lowest prices (closing price) in the real estate investment trust market of the Tokyo Stock Exchange, Inc., where theInvestment Corporation is listed, by fiscal period are as follows.
Fiscal period

7th Fiscal Period

8th Fiscal Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal Period

Closing month/year

Jan. 2014

Jul. 2014

Jan. 2015

Jul. 2015

Jan. 2016

Highest¥754,000¥769,000¥188,600 (Note)¥283,700¥266,300¥242,500

Lowest¥584,000¥690,000¥187,700 (Note)¥186,900¥232,600¥189,600(Note) The investment unit price is shown for the ex-rights period (July 29, 2014–July 31, 2014) of the investment unit split.

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21

4. Performance of Distributions
The Investment Corporation has decided to carry out distributions with the intent of including the maximum amount of earnings
distributions in deductible expenses by applying special measures concerning taxation (Article 67-15 of the Act on Special
Measures Concerning Taxation). For the 11th Fiscal Period, the Investment Corporation has decided to include a part of gain on
sales of real estate properties in internal reserves as a stable source of future distributions by applying Article 66-2, “Special
Provisions for Taxation for Advance Acquisition of Land, etc. in 2009 and 2010” of the Act on Special Measures Concerning
Taxation. Under such policies, the Investment Corporation has decided to distribute the amount of unappropriated retained
earnings after deducting ¥92 million, which is within the scope where the provisions of Article 67-15 of the Act on Special
Measures Concerning Taxation are applied, as well as within the limit of reserve for reduction entry stipulated in Article 66-2 ofthe Act on Special Measures Concerning Taxation, as provision of reserve for reduction entry. As a result, DPU for the 11th Fiscal
Period was ¥4,339.
Fiscal period

7th Fiscal Period

8th Fiscal Period

9th Fiscal Period

10th Fiscal Period

11th Fiscal PeriodBusiness period

From Aug. 1, 2013
to Jan. 31, 2014

From Feb. 1, 2014
to Jul. 31, 2014

From Aug. 1, 2014
to Jan. 31, 2015

From Feb. 1, 2015
to Jul. 31, 2015

From Aug. 1, 2015
to Jan. 31, 2016

Unappropriated retained earnings
Retained earnings
Total distributions[Distribution per unit]
Of which, total earnings
distributions[Earnings distribution per unit]¥1,132,545 thousand ¥1,718,736 thousand ¥1,729,936 thousand ¥2,086,414 thousand ¥2,148,086 thousand¥5 thousand¥33 thousand¥160 thousand¥255 thousand¥92,251 thousand¥1,132,540 thousand ¥1,718,702 thousand ¥1,729,775 thousand ¥2,086,159 thousand ¥2,055,835 thousand[¥16,813][¥17,074][¥4,296][¥4,403][¥4,339]¥1,132,540 thousand ¥1,718,702 thousand ¥1,729,775 thousand ¥2,086,159 thousand ¥2,055,835 thousand[¥16,813][¥17,074][¥4,296][¥4,403][¥4,339]¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Return on unitholders’ capital per
unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on unitholders’capital, the total distribution
payments from the allowance fortemporary difference¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Of the return on unitholders’capital per unit, the distribution
payment from the allowance fortemporary difference per unit]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of the total return on unitholders’capital, the total distribution
payments from investments andother decreased distribution under
the tax laws¥– thousand¥– thousand¥– thousand¥– thousand¥– thousand[Of the total return on unitholders’capital per unit, the distribution
payments from investments andother decreased distribution under
the tax laws]

[¥–]

[¥–]

[¥–]

[¥–]

[¥–]

Of which, total return on
unitholders’ capital(Note) Figures above are rounded down to the nearest unit.

(2) Internal growth strategy
With the aim of maximizing portfolio value and cash flows from individual properties from a medium- to long-term
perspective and to make the most of the experience and comprehensive strength of the Tokyu Fudosan Holdings Group inproperty management, we will consign property management operations mainly to Tokyu Fudosan Holdings Group
companies, which have extensive experience in the management of J-REIT and the “Comforia” series. In addition, we will
strive for efficient management by examining the adequacy of building management specifications and costs.
Furthermore, we will actively utilize the expertise of Tokyu Fudosan Holdings Group in asset and fund management toachieve higher-quality overall management of the Investment Corporation.
In the 12th Fiscal Period, we will aim to maintain and improve occupancy rates by closely observing the property
management situation, as we did in the 11th Fiscal Period.
(3) Financial strategy
In consideration of addressing future interest rate risk and refinance risk, we will carry out funding activities by paying
attention to financial soundness and earnings stability. With regard to debt, we will efficiently combine short-term fundingthat focuses on agility with long-term stable funding. Furthermore, we will consider the issuance of new investment units inaccordance with financing needs for property acquisition and the financial situation of the Investment Corporation, while
paying attention to the market development and distribution level, with the upper limit of the ratio of interest-bearing debt tototal assets (LTV) at around 60%.

6. Significant Matters after Book Closing
Issuance of new investment units
The Investment Corporation made a resolution concerning the issuance of new investment units at the Board of Directors’
meetings held on January 5, 2016 and January 18, 2016, with the payments pertaining to the issuance of new investment units by
public offering completed on February 1, 2016, and the payments pertaining to the issuance of new investment units by
third-party allotment completed on February 26, 2016 as follows. As a result, unitholders’ capital totaled ¥82,743,523,862, with
513,504 investment units issued as of February 26, 2016.
Issuance of new investment units through public offering
Number of investment units offered
37,800 units
Issue price (offer price)¥195,828 per unit
Total issue amount (offer price)¥7,402,298,400
Paid-in amount (issue value)¥189,400 per unit
Total paid-in amount (issue value)¥7,159,320,000
Payment dateFebruary 1, 2016
Issuance of new investment units through third-party allotment
Number of investment units offered
1,900 units
Paid-in amount (issue value)¥189,400 per unit
Total paid-in amount (issue value)¥359,860,000
Payment dateFebruary 26, 2016
AllotteeMizuho Securities Co., Ltd.
(Reference)(1) Acquisition of property
The Investment Corporation acquired the following properties as of February 2, 2016.
Type of asset

Location

Acquisition price(thousands of yen) (Note)

Main usage

COMFORIA
SHINAGAWA EAST

Beneficial interest inreal estate

Shinagawa-ku, Tokyo

1,430,000

Apartment complex

COMFORIA SHINJUKUEAST SIDE TOWER

Beneficial interest inreal estate

Shinjuku-ku, Tokyo

13,264,000

Apartment complex

Property name

5. Future Investment Policy and Issue to Address
Based on our basic policies of investment management, the Investment Corporation acquired two assets and sold two assets
during the 11th Fiscal Period, and has carried out investment and management based on the concept and expertise of the urban
rental residence “Comforia” series, which Tokyu Land Corporation (hereinafter referred to as “Tokyu Land”) has been producing.
Going forward, we aim to achieve medium- to long-term growth by continuing to carry out investment and management based on
our basic policies.

(Note) “Acquisition price” does not include miscellaneous expenses required for the acquisition, fixed property tax, city planning tax, consumption
tax and local consumption tax.

(1) External growth strategy
We aim to acquire higher-quality assets and expand our asset size, utilizing the support of the Tokyu Fudosan HoldingsGroup, primarily the sponsor support of Tokyu Land, and original information from TLC Comforia Investment Management
INC., the asset management company of the Investment Corporation (hereinafter referred to as the “Asset Management
Company”).
Specifically, we will acquire properties developed by our sponsor, Tokyu Land, using the sponsor support agreement theAsset Management Company entered into with Tokyu Land, and continuously and steadily acquire quality residential
properties that are under stable operation. In addition, we intend to utilize real estate brokerage capabilities through the vast
information network of Tokyu Fudosan Holdings Group companies, who are not our sponsors, to acquire quality residential
properties, achieve stable operation and enhance profitability. Based on this perspective, the Asset Management Company
has entered into a support agreement with each of the five support companies of the Tokyu Fudosan Holdings Group
companies (Tokyu Livable, Inc., TOKYU COMMUNITY CORP., Tokyu Housing Lease Corporation, TOKYU E-LIFE
DESIGN Inc. and EWEL, Inc.).

22

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23

(2) Loans(i) Term loans
The Investment Corporation made the following loans as of February 2, 2016.

Overview of the Investment Corporation
1. Unitholders’ Capital

Loan amount(millions ofyen)Interest

Drawdown date

Repayment dateMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Long-term
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
loans
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation

3,550

Base rate (Note 1)+0.200%Feb. 2, 2016

Feb. 28, 2017

Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Long-term Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
loans
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation

2,000

Type

LenderDevelopment Bank of Japan Inc.
Mizuho Bank, Ltd.
Long-term Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
loans
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation(Note 2)Feb. 2, 2016

Mar. 31, 2023

2,330

0.62460% (Note 2)

Feb. 2, 2016

Aug. 31, 2023

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

9,000

10th Fiscal
Period11th Fiscal
PeriodAs of Jan. 31,
2014

As of Jul. 31,
2014

As of Jan. 31,
2015

As of Jul. 31,
2015

As of Jan. 31,
2016

Total number of authorized
investment units (Note)(units)2,000,000

2,000,000

8,000,000

8,000,000

8,000,000

Total number of investment units
issued (Note)(units)67,361

100,662

402,648

473,804

473,804

Unitholders’ capital(millions ofyen)

33,97556,90056,90075,22475,224

Number of unitholders(people)

3,244

5,672

5,254

8,148

7,530

2. Matters concerning Investment Units
Number of investment units
owned (units)

Name
2,670

0.67745% (Note 2)

Feb. 2, 2016

Feb. 29, 2024(ii) Uncommitted Line of Credit Loan Master Agreement
The Investment Corporation has entered into the uncommitted Line of Credit Loan Master Agreement as of February 9,
2016, to prepare for cases where funding becomes necessary such as when purchasing assets for investment in
the future.
Counterparties

9th Fiscal
PeriodMajor unitholders as of January 31, 2016 are as follows.

The base rate that is applied to interest paid on the interest payment date is the JBA 1-month JPY TIBOR as of two business days
prior to the interest payment date immediately before each interest payment date.
An interest-rate swap was concluded as of January 29, 2016 to avoid interest rate risk. The rate in the “Interest” column shows therate taking into account the effect of the interest-rate swap.

Amount ofborrowing
limit(millions ofyen)

8th Fiscal
Period(Note) A four-for-one split of investment units was carried out effective August 1, 2014.

Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Long-term Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
loans
Mitsubishi UFJ Trust and Banking Corporation
Sumitomo Mitsui Banking Corporation(Note 1)0.58430% (Note 2)

7th Fiscal
PeriodRepayment
dateLess than one
year fromdrawdown
date

Repayment
methodBulletrepayment

Usage

CollateralTo purchase additional assets,
to repay existing borrowings Unsecured,
nonand investment corporation
guaranteedbonds, and cover related
expenses

Ratio to the total number ofinvestment units issued (%) (Note)

Japan Trustee Services Bank, Ltd. (trust account)

150,06431.67

Tokyu Land Corporation

47,694

10.06

The Master Trust Bank of Japan, Ltd. (trust account)

33,482

7.06

Trust & Custody Services Bank, Ltd. (securities investment
trust account)

29,966

6.32

Nomura Bank (Luxembourg) S.A.
(Standing proxy: Sumitomo Mitsui Banking Corporation)

17,7303.74

The Nomura Trust & Banking Co., Ltd. (trust account)

13,292

2.80

Asahi Fire & Marine Insurance Co., Ltd.

9,600

2.02

Trust & Custody Services Bank, Ltd. (taxable trust money
account)

9,384

1.98

Nippon Tosho Fukyu Co., LTD.

4,279

0.90

The Hokkoku Bank, Ltd.

3,862

0.81

319,353

67.40

Total

(Note) The percentage of investment units owned to the total number of investment units issued is rounded down to the nearest tenths.

3. Matters concerning Directors, etc.
(1) Name of directors, etc.
The names of directors, etc. of the 11th Fiscal Period are as follows.
Position

Name of director, etc.

Main concurrent posts

Total amount of
remuneration paid during theperiod (thousands of yen)

Executive
Director

Hiroyuki Tohmata

President & CEO, TLC Comforia Investment
Management INC.
Operating Officer, Tokyu Land Corporation–

Supervisory
Director

Yoshihiro Kataoka

Head of Kataoka & Kobayashi
Outside Audit & Supervisory Board Member,
The Higo Bank, Ltd.

1,800

Supervisory
Director

Koji Yamamoto

Partner, Shiki-Sogo Law and Accounting Office
Supervisory Officer, Toshi Saisei Fund Investment
Corporation

1,800

Accounting
AuditorErnst & Young
ShinNihon LLC–

11,664(Note) None of the Executive Director and Supervisory Directors own investment units of the Investment Corporation, either in their own name or insomeone else’s name. Furthermore, although Supervisory Directors may be officers of a corporation other than that mentioned above, neither
one has an interest in the Investment Corporation, including the above.

24

-6-

-7-

25

(2) Policy for decisions on dismissal or non-reappointment of Accounting Auditor
The Board of Directors shall, with the consent of all its members, dismiss the Accounting Auditor if it is deemed that it falls
under any of the grounds set forth in each item of Paragraph 1 of Article 105 of the Investment Trust Act, and when it isdetermined that there is no hope for improvement.
In addition, when it is determined that the Accounting Auditor is not fit for its role, upon comprehensive examination of
its execution of duties as the Accounting Auditor and other various circumstances, the Board of Directors shall dismiss or not
reappoint said Accounting Auditor with the consent of all of its members, and forward a proposal for the appointment of a
new Accounting Auditor to the unitholders’ meeting.
(3) Disposition of suspension of services that the Accounting Auditor is currently subject toDetails of the disciplinary action announced by the Financial Services Agency on December 22, 2015:(i) Subject of the action
Ernst & Young ShinNihon LLC(ii) Description of the action– Three-month suspension from accepting new engagements(From January 1, 2016 to March 31, 2016)– Order to improve operations (improvement of the audit management system)
Note: In addition, the commencement of hearing procedures related to an order for payment of a surcharge ofapproximately ¥2.1 billion was decided on the same day.
(iii) Reason for the action– Seven certified accountants from Ernst & Young ShinNihon LLC (hereinafter referred to as the “Auditor”) had, in
negligence of due care, attested the financial statements of TOSHIBA CORPORATION for fiscal 2009, fiscal 2011
and fiscal 2012 (for years that ended March 31, 2010, 2012 and 2013) containing material misstatements as though
no material misstatements were present.
– The Auditor’s operations were deemed significantly inappropriate

4. Asset Management Company, Asset Custodian, General Administration
The asset management company, asset custodian and general administration as of January 31, 2016 are as follows.
Consignment segment

Name

Asset management company

TLC Comforia Investment Management INC.

Asset custodian

Mitsubishi UFJ Trust and Banking Corporation

General administration (unitholder registry administration)

Mitsubishi UFJ Trust and Banking Corporation

General administration (accounting service)

Heiseikaikeisha Tax Corporation

General administration (administrative service)

Mitsubishi UFJ Trust and Banking Corporation

General administration (corporation bond service)

Sumitomo Mitsui Trust Bank, Limited

Status of Managed Assets of the Investment Corporation
1. Composition of Assets of the Investment Corporation
10th Fiscal Period(as of July 31, 2015)
Type of asset

Area

Real estate
Properties in trust-8-

Percentage of total
assets (%) (Note 2)

Total amountowned (millions ofyen) (Note 1)

Percentage of total
assets (%) (Note 2)

Other major cities

1,079

0.7

1,072

0.7

Central Tokyo

65,27141.1

64,62440.6

Sub-central Tokyo

74,322

46.8

73,916

46.4

Tokyo metropolitan area

3,764

2.4

3,735

2.3

Other major cities

4,181

2.6

4,853

3.0

148,62093.5

148,201

93.1

Subtotal
Deposits and other assets

10,342

6.5

11,043

6.9

Total assets

158,962100.0

159,245100.0(Note 1)
(Note 2)

“Total amount owned” shows the amount posted on the balance sheet as of the closing of accounts (the book value after depreciation for real estateand properties in trust).
The sum may not total 100.0% since figures are rounded down to the nearest tenth.

2. Major Assets Owned
The overview of major assets owned by the Investment Corporation (top 10 properties in terms of term-end book value)is as follows.
Ratio to total
rental revenues(%)

Main usage

95.7

2.5

Apartment
building

5,885.41

95.8

2.6

Apartment
building

4,981.66

4,668.79

93.7

2.6

Apartment
building

3,934

6,966.04

6,636.40

95.3

2.3

Apartment
building

COMFORIAHIGASHIIKEBUKURO WEST

3,858

6,436.14

6,214.77

96.6

3.1

Apartment
building

COMFORIA HARAJYUKU

3,579

4,528.51

4,342.61

95.9

2.5

Apartment
building

COMFORIA TAMACHI

3,457

4,254.42

4,090.27

96.1

1.9

Apartment
building

COMFORIA MITA EAST

3,211

3,639.93

3,475.39

95.5

2.0

Apartment
building

COMFORIA TOYOSU

3,088

4,127.00

3,773.40

91.4

2.0

Apartment
building

COMFORIA GINZA EAST

2,988

4,816.73

4,767.54

99.0

2.4

Apartment
building

38,522

51,234.79

48,966.68

95.6

23.9

Property nameBook value(millions ofyen)

Rentable area(m2)

Rented area
(m2)

COMFORIA KOMABA

5,268

5,342.38

5,112.10

COMFORIA
MINAMISUNAMACHI

4,812

6,141.98

COMFORIA KITASANDO

4,323

COMFORIA
ITABASHINAKAJUKU

Total

26

Total amountowned (millions ofyen) (Note 1)

11th Fiscal Period(as of January 31, 2016)-9-

Occupancy
rate
(%)

27

3. Statement of Properties Incorporated in the Portfolio
Area

The overview of assets under management of the Investment Corporation as of January 31, 2016 is as follows.

28

Address

COMFORIA NIHONBASHININGYOCHO

3-5-10 Nihonbashi Ningyocho, Chuo-ku, Tokyo

COMFORIA WASEDA

147 Bentencho, Shinjuku-ku, Tokyo

COMFORIA SHIMOOCHIAI

2-7-10 Nakaochiai, Shinjuku-ku, Tokyo

COMFORIA HIGASHINAKANO

4-34-2 Kita-Shinjuku, Shinjuku-ku, Tokyo

COMFORIA GINZA EAST

1-3-1 Irifune, Chuo-ku, Tokyo

COMFORIA AZABUDAI

3-4-4 Azabudai, Minato-ku, Tokyo

COMFORIA SHIBAKOEN

2-2-15 Shibakoen, Minato-ku, Tokyo

COMFORIA NISHIAZABU

4-1-10 Nishiazabu, Minato-ku, Tokyo

COMFORIA MINAMIAOYAMA

4-1-12 Minami-Aoyama, Minato-ku, Tokyo

COMFORIA MINAMIAOYAMA
DEUX

4-2-1 Minami-Aoyama, Minato-ku, Tokyo

COMFORIA NISHIWASEDA

1-5-19 Takadanobaba, Shinjuku-ku, Tokyo

COMFORIA HARAJYUKU

3-61-3 Sendagaya, Shibuya-ku, Tokyo

COMFORIA MITA NORTH

2-7-16 Mita, Minato-ku, Tokyo

COMFORIA SHIBAURABOWHOUSE

3-13-12 Kaigan, Minato-ku, Tokyo

COMFORIASHIROKANETAKANAWA

5-1-21 Mita, Minato-ku, Tokyo

COMFORIA NIHONBASHININGYOCHO EAST

3-6-3 Nihonbashi Ningyocho, Chuo-ku, Tokyo

COMFORIA ATAGO

3-23-7 Toranomon, Minato-ku, Tokyo

COMFORIA KUDAN

2-6-12 Kudan Minami, Chiyoda-ku, Tokyo

COMFORIA NIHONBASHININGYOCHO NORTH

1-1-6 Nihonbashi Horidomecho, Chuo-ku,
Tokyo

COMFORIA SHINKAWA

2-15-5 Shinkawa, Chuo-ku, Tokyo

COMFORIA AKASAKA

2-17-63 Akasaka, Minato-ku, Tokyo- 10 -

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trustBook value(millions ofyen) (Note 2)

2,020

1,585

2,400

1,921

1,460

1,143

654

565

3,840

2,988

736

568

1,660

1,366

878

743

1,420

1,042

366

249

2,010

1,646

4,360

3,579

1,030

847

3,210

2,636

1,580

1,340

2,470

2,132

918

831

1,500

1,294

1,240

1,117

2,110

1,858

2,300

1,967

Central Tokyo

Property name

Address

COMFORIA MITA EAST

4-18-1 Shiba, Minato-ku, Tokyo

COMFORIA SHIBAURA CANAL

3-1-9 Kaigan, Minato-ku, Tokyo

COMFORIA KITASANDO

4-5-10 Sendagaya, Shibuya-ku, Tokyo

COMFORIA YOYOGIUEHARA

2-31-5 Uehara, Shibuya-ku, Tokyo

COMFORIA SASAZUKA

1-59-10 Sasazuka, Shibuya-ku, Tokyo

COMFORIA SHINJUKUGYOEN II

1-13-3 Shinjuku, Shinjuku-ku, Tokyo

COMFORIA
ICHIGAYAYANAGICHO

18-2 Ichigaya Yanagicho, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA

26-1 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA NIBANCHO

4-8 Nibancho, Chiyoda-ku, Tokyo

COMFORIA NISHISHINJUKU

1-20-12 Kita-Shinjuku, Shinjuku-ku, Tokyo

COMFORIA KANDAJINBOCHO

1-42-2 Kanda Jinbocho, Chiyoda-ku, Tokyo

COMFORIA NIHONBASHI

1-2-2 Nihonbashi Bakurocho, Chuo-ku, Tokyo

COMFORIA TAMACHI

4-5-13 Shibaura, Minato-ku, Tokyo

COMFORIA AZABUJUBAN

1-2-15 Mita, Minato-ku, Tokyo

COMFORIA SHINJUKUGYOEN I

1-10-4 Shinjuku, Shinjuku-ku, Tokyo

COMFORIA KAGURAZAKA
DEUX

7-3 Iwatocho, Shinjuku-ku, Tokyo

COMFORIA AZABU EAST

2-29-1 Higashi-Azabu, Minato-ku, Tokyo

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Subtotal

Sub-central Tokyo

Central Tokyo

Area

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Property name

COMFORIA BUNKYOKASUGA

1-15-12 Nishikata, Bunkyo-ku, Tokyo

COMFORIAASAKUSAMATSUGAYA

1-11-5 Matsugaya, Taito-ku, Tokyo

COMFORIA NISHIOI

6-6-1 Nishi-Oi, Shinagawa-ku, Tokyo

COMFORIA NAKANO

2-40-12 Kamitakada, Nakano-ku, Tokyo

COMFORIA SHIMOKITAZAWA

1-9-14 Hanegi, Setagaya-ku, Tokyo

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Book value(millions ofyen) (Note 2)

3,660

3,211

1,800

1,583

4,770

4,323

1,740

1,573

2,100

1,816

1,980

1,819

1,880

1,636

840

743

1,780

1,647

1,650

1,665

1,550

1,513

2,070

2,011

3,510

3,457

1,550

1,510

1,450

1,441

1,310

1,282

2,610

1,959

74,41264,624

1,910

1,429

1,160

875

989

905

988

889

3,110

2,488

- 11 29

30

Address

COMFORIA NISHIKAMATA

6-37-3 Nishi-Kamata, Ota-ku, Tokyo

COMFORIA OYAMA

4-4 Oyamacho, Itabashi-ku, Tokyo

COMFORIA
KIYOSUMISHIRAKAWA SOUTH

3-2-13 Miyoshi, Koto-ku, Tokyo

COMFORIA KOMAZAWA

2-1-5 Komazawa, Setagaya-ku, Tokyo

COMFORIA KOISHIKAWA

2-17-27 Koishikawa, Bunkyo-ku, Tokyo

COMFORIA SENGOKU

4-3-20 Sengoku, Bunkyo-ku, Tokyo

COMFORIA
DAIKANYAMAAOBADAI

2-1-7 Aobadai, Meguro-ku, Tokyo

COMFORIA IKEBUKURO

2-57-1 Ikebukuro, Toshima-ku, Tokyo

COMFORIA
RYOGOKUISHIWARA

1-36-1 Ishiwara, Sumida-ku, Tokyo

COMFORIA ASAKUSABASHI
DEUX

5-24-10 Asakusabashi, Taito-ku, Tokyo

COMFORIA OSHIAGE

4-7-2 Narihira, Sumida-ku, Tokyo

COMFORIA
HONJOAZUMABASHI

2-11-12 Honjo, Sumida-ku, Tokyo

COMFORIA
KIYOSUMISHIRAKAWA TROIS

3-5-14 Shirakawa, Koto-ku, Tokyo

COMFORIA MONZENNAKACHO

16-8 Fuyuki, Koto-ku, Tokyo

COMFORIA HIMONYA

2-3-3 Himonya, Meguro-ku, Tokyo

COMFORIA MISYUKU

3-23-2 Ikejiri, Setagaya-ku, Tokyo

COMFORIA GAKUGEIDAIGAKU

6-46-6 Shimouma, Setagaya-ku, Tokyo

COMFORIA HIGASHINAKANO
DEUX

4-2-19 Higashi-Nakano, Nakano-ku, Tokyo

COMFORIAHIGASHIIKEBUKURO WEST

3-22-21 Higashi-Ikebukuro, Toshima-ku, Tokyo

COMFORIA RYOGOKU DEUX

1-2-10 Chitose, Sumida-ku, Tokyo

COMFORIA OMORI DEUX

3-4-2 Omori Kita, Ota-ku, Tokyo

COMFORIA MACHIYA

5-51-7 Arakawa, Arakawa-ku, Tokyo

COMFORIA ASAKUSABASHI

2-20-10 Yanagibashi, Taito-ku, Tokyo- 12 -

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Area

Property name

Address

2,060

1,501

COMFORIA RYOGOKU SOUTH

2-14-8 Chitose, Sumida-ku, Tokyo

2,230

2,001

COMFORIA TOYOSU

1-4-12 Edagawa, Koto-ku, Tokyo

875

720

COMFORIA
SUMIDA-TACHIBANA

5-18-5 Tachibana, Sumida-ku, Tokyo

1,620

1,266

COMFORIA UENOHIROKOJI

3-17-4 Ueno, Taito-ku, Tokyo

638

542

COMFORIA KASUGATOMISAKA

1-11-18 Kasuga, Bunkyo-ku, Tokyo

1,620

1,209

COMFORIA HONKOMAGOME

2-29-24 Honkomagome, Bunkyo-ku, Tokyo

1,230

913

COMFORIA MORISHITA

3-6-8 Shin-Ohashi, Koto-ku, Tokyo

639

585

COMFORIA KIBAKOEN

2-17-7 Kiba, Koto-ku, Tokyo

833

640

COMFORIA MEGUROCHOJAMARU

2-6-25 Kami-Osaki, Shinagawa-ku, Tokyo

1,030

882

COMFORIA NISHIMAGOME

2-35-8 Nishi-Magome, Ota-ku, Tokyo

848

722

COMFORIAHIGASHIIKEBUKURO EAST

2-8-1 Higashi-Ikebukuro, Toshima-ku, Tokyo

891

770

COMFORIAHIGASHIIKEBUKURO

4-3-5 Higashi-Ikebukuro, Toshima-ku, Tokyo

1,030

865

COMFORIA KOMABA

4-8-25 Ikejiri, Setagaya-ku, Tokyo

3,030

2,629

COMFORIA KINSHICHO

3-8-6 Taihei, Sumida-ku, Tokyo

1,440

1,179

COMFORIA
MINAMISUNAMACHI

4-4-20 Minamisuna, Koto-ku, Tokyo

2,370

1,851

COMFORIAHIGASHISHINAGAWA

3-22-11 Higashi-Shinagawa, Shinagawa-ku,
Tokyo

1,440

1,142

COMFORIA MEGUROYAKUMO

1-12-10 Yakumo, Meguro-ku, Tokyo

1,050

827

COMFORIA YOGA

3-24-3 Yoga, Setagaya-ku, Tokyo

5,050

3,858

COMFORIA
ITABASHINAKAJUKU

62-2 Nakajuku, Itabashi-ku, Tokyo

1,220

1,044

1,380

1,223

832

612

3,250

2,679

Sub-central Tokyo

Property nameBook value(millions ofyen) (Note 2)

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Subtotal
Tokyo metropolitanarea

Sub-central Tokyo

Area

Appraisalvalue at end of
period(millions ofyen) (Note 1)

COMFORIA KOMAE

3-9-5 Iwato Kita, Komae-shi, Tokyo

COMFORIA
YOKOHAMAKANNAI

2-8-15 Okinacho, Naka-ku, Yokohama-shi,
Kanagawa

COMFORIA ICHIKAWAMYODEN

1-9-10 Shioyaki, Ichikawa-shi, Chiba

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Appraisalvalue at end of
period(millions ofyen) (Note 1)

Book value(millions ofyen) (Note 2)

1,520

1,241

3,530

3,088

1,010

977

1,230

1,061

3,340

2,938

1,560

1,355

1,750

1,543

1,100

964

2,290

2,008

1,090

1,003

2,180

1,738

1,260

1,143

5,260

5,268

1,110

1,083

4,740

4,812

1,600

1,553

836

834

1,060

1,105

4,090

3,934

85,31973,916

542

425

1,260

956

745

625

- 13 31

Tokyometropolitan area

Area

Property name

Address

COMFORIA YATSUKA

3-38-3 Sezaki, Soka-shi, Saitama

COMFORIA SHINKOYASU

2-216-2 Koyasudori, Kanagawa-ku,
Yokohama-shi, Kanagawa

Ownership form
Beneficial
interest in realestate trust
Beneficial
interest in realestate trust

Other major cities

Subtotal
COMFORIA SHIN-OSAKA

1-21-24 Higashi-Nakajima,
Higashi-Yodogawa-ku, Osaka-shi, Osaka

COMFORIA SHINSAKAE

2-28-18 Shinsakae, Naka-ku, Nagoya-shi, Aichi

COMFORIA KITAHORIE

3-12-2 Kita-Horie, Nishi-ku, Osaka-shi, Osaka

COMFORIA KITASANJO

2-2-51 Kita-Sanjo Higashi, Chuo-ku,
Sapporo-shi, Hokkaido(Note 1)

727

The overview of the rental business by assets under management of the Investment Corporation is as follows.

Book value(millions ofyen) (Note 2)

10th Fiscal Period(from February 1, 2015 to July 31, 2015)
Area

1,210

1,087

4,484

3,735

2,700

2,412

1,820

1,735

1,070

1,072

892

705

6,482
170,697

5,926
148,201

COMFORIA NIHONBASHININGYOCHOCOMFORIA WASEDACOMFORIA SHIMOOCHIAICOMFORIA HIGASHINAKANOCOMFORIA GINZA EASTCOMFORIA AZABUDAICOMFORIA SHIBAKOENCOMFORIA NISHIAZABUCOMFORIA MINAMIAOYAMACOMFORIA MINAMIAOYAMADEUXCOMFORIA NISHIWASEDACOMFORIA DAIKANYAMA (Note 3)
COMFORIA HARAJYUKU NORD

“Appraisal value at end of period” indicates the appraisal value by a real estate appraiser (based on real estate appraisal reports or research reports
prepared by the Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd., Morii Appraisal &Investment Consulting, Inc. and Japan Valuers Co., Ltd., with the account closing date as the date of value estimate), pursuant to the method of asset
appraisal stipulated in the regulations of the Investment Corporation as well as the “Ordinance on Accountings of Investment Corporations” (Cabinet
Office Ordinance No. 47 of 2006).
“Book value” indicates the acquisition price (including miscellaneous expenses related to the acquisition) as of the end of the 11th Fiscal Period(January 31, 2016) minus accumulated depreciation, and does not include construction in progress or construction in progress in trust.

- 14 -

Number oftenants(at end of
period)(Note 1)

(Note 3)Sub-central Tokyo

32

Property name

640

Central Tokyo(Note 2)

Subtotal
Total

Beneficial
interest in realestate trust
Beneficial
interest in realestate trust
Real estate
Beneficial
interest in realestate trust

Appraisalvalue at end of
period(millions ofyen) (Note 1)

COMFORIA HARAJYUKUCOMFORIA MITA NORTHCOMFORIA SHIBAURABOWHOUSECOMFORIASHIROKANETAKANAWACOMFORIA NIHONBASHININGYOCHO EASTCOMFORIA ATAGOCOMFORIA KUDANCOMFORIA NIHONBASHININGYOCHO NORTHCOMFORIA SHINKAWACOMFORIA AKASAKACOMFORIA MITA EASTCOMFORIA SHIBAURA CANALCOMFORIA KITASANDOCOMFORIA YOYOGIUEHARACOMFORIA SASAZUKACOMFORIA SHINJUKUGYOEN II
COMFORIA
ICHIGAYAYANAGICHOCOMFORIA KAGURAZAKACOMFORIA NIBANCHOCOMFORIA NISHISHINJUKUCOMFORIA KANDAJINBOCHOCOMFORIA NIHONBASHICOMFORIA TAMACHICOMFORIA AZABUJUBANCOMFORIA SHINJUKUGYOEN I
COMFORIA KAGURAZAKA
DEUXCOMFORIA AZABU EAST
Subtotal
COMFORIA BUNKYOKASUGACOMFORIAASAKUSAMATSUGAYACOMFORIA NISHIOICOMFORIA NAKANOCOMFORIA SHIMOKITAZAWACOMFORIA NISHIKAMATA

11th Fiscal Period(from August 1, 2015 to January 31, 2016)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

Number oftenants(at end of
period)(Note 1)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

1

97.7

55,361

1.1

1

100.0

58,052

1.2

1
1
1
1
1
1
1
1

99.0
89.6
100.0
97.9
100.0
98.0
100.0
94.5

62,04545,44921,063
114,953
18,816
48,62325,37039,213

1.3
0.9
0.4
2.3
0.4
1.0
0.5
0.8

1
1
1
1
1
1
1
1

96.9
97.7
95.2
99.0
95.9
93.2
100.0
95.1

65,89045,37020,270117,197
21,772
48,69725,65941,166

1.3
0.9
0.4
2.4
0.4
1.0
0.5
0.8

1

100.0

12,029

0.2

1

100.0

11,334

0.2

1
1

94.6
95.6

58,66059,408

1.2
1.2

1
–

93.0
–

57,62525,563

1.2
0.5

1

100.0

20,598

0.4

–

–

8,654

0.2

1
1

97.6
97.1

121,283
28,784

2.5
0.6

1
1

95.9
96.2

122,561
30,337

2.5
0.6

1

87.3

94,397

1.9

1

100.0

93,693

1.9

1

92.2

44,225

0.9

1

92.2

42,032

0.8

1

97.3

66,472

1.3

1

98.2

65,880

1.3

1
1

80.0
97.8

27,05439,012

0.5
0.8

1
1

97.5
83.8

27,60837,711

0.6
0.8

1

91.7

35,126

0.7

1

100.0

35,403

0.7

1
1
1
1
1
1
1
1

98.3
97.5
95.3
97.9
90.2
96.8
93.6
100.0

58,342
63,723
99,71253,796
127,403
49,77862,58555,413

1.2
1.3
2.0
1.1
2.6
1.0
1.3
1.1

1
1
1
1
1
1
1
1

98.3
100.0
95.5
99.0
93.7
96.4
98.9
95.5

57,84764,74898,34953,724
126,505
50,11863,672
56,838

1.2
1.3
2.0
1.1
2.6
1.0
1.3
1.1

1

98.7

50,275

1.0

1

92.3

50,801

1.0

1
1
1
1
1
1
1
1

100.0
95.6
98.0
95.3
98.6
92.7
98.2
94.1

24,06049,671
42,25069,39160,671
86,20340,52739,480

0.5
1.0
0.9
1.4
1.2
1.7
0.8
0.8

1
1
1
1
1
1
1
1

94.3
86.5
96.3
95.2
97.1
96.1
96.4
98.3

22,85046,80343,73842,09662,93496,224
41,72240,795

0.5
0.9
0.9
0.8
1.3
1.9
0.8
0.8

1

100.0

38,821

0.8

1

96.0

41,424

0.8

–
1
1

–
95.5
95.4

–
2,110,058
57,411

–
42.7
1.2

1
1
1

93.4
96.2
98.3

39,5682,103,245
58,719

0.8
42.4
1.2

1

92.9

43,067

0.9

1

97.9

42,741

0.9

1
1
1
1

98.3
96.7
96.0
99.1

31,30531,12293,70965,626

0.6
0.6
1.9
1.3

1
1
1
1

93.2
90.3
98.4
96.6

30,10030,34492,28865,014

0.6
0.6
1.9
1.3

- 15 -

33

Property name

Number oftenants(at end of
period)Sub-central Tokyo(Note 1)COMFORIA OYAMACOMFORIA
KIYOSUMISHIRAKAWA SOUTH
COMFORIA KOMAZAWACOMFORIA KOISHIKAWACOMFORIA SENGOKUCOMFORIA
DAIKANYAMAAOBADAICOMFORIA IKEBUKUROCOMFORIA
RYOGOKUISHIWARA
COMFORIA ASAKUSABASHI
DEUX
COMFORIA OSHIAGE
COMFORIA
HONJOAZUMABASHICOMFORIA
KIYOSUMISHIRAKAWA TROISCOMFORIA MONZENNAKACHOCOMFORIA HIMONYACOMFORIA MISYUKUCOMFORIA GAKUGEIDAIGAKUCOMFORIA HIGASHINAKANODEUXCOMFORIAHIGASHIIKEBUKURO WEST
COMFORIA RYOGOKU DEUXCOMFORIA OMORI DEUXCOMFORIA MACHIYACOMFORIA ASAKUSABASHICOMFORIA RYOGOKU SOUTH
COMFORIA TOYOSUCOMFORIA
SUMIDA-TACHIBANACOMFORIA UENOHIROKOJI
COMFORIA KASUGATOMISAKACOMFORIA HONKOMAGOMECOMFORIA MORISHITACOMFORIA KIBAKOENCOMFORIA MEGUROCHOJAMARUCOMFORIA NISHIMAGOMECOMFORIAHIGASHIIKEBUKURO EASTCOMFORIAHIGASHIIKEBUKUROCOMFORIA KOMABACOMFORIA KINSHICHOCOMFORIA
MINAMISUNAMACHICOMFORIAHIGASHISHINAGAWACOMFORIA MEGUROYAKUMOCOMFORIA YOGACOMFORIA
ITABASHINAKAJUKU
Subtotal

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

(Note 1)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)

Area

Property name

96.3

82,091

1.7

1

95.8

80,336

1.6

1

95.6

27,988

0.6

1

100.0

28,884

0.6

1
1
1

93.8
95.6
95.6

42,676
21,28353,423

0.9
0.4
1.1

1
1
1

93.9
97.4
97.5

39,58822,01153,891

0.8
0.4
1.1

1

93.4

37,024

0.7

1

95.4

33,187

0.7

1

88.9

21,927

0.4

1

93.1

21,276

0.4

1

100.0

26,724

0.5

1

100.0

25,590

0.5

1

97.2

29,657

0.6

1

98.2

30,231

0.6

1

96.0

25,803

0.5

1

93.6

25,360

0.5

1

92.4

26,622

0.5

1

98.2

26,149

0.5

1

100.0

30,905

0.6

1

100.0

31,485

0.6

1
1
1
1

97.2
100.0
97.1
97.4

89,692
41,253
61,89238,018

1.8
0.8
1.3
0.8

1
1
1
1

95.1
91.6
96.5
93.8

89,90442,404
66,92041,157

1.8
0.9
1.3
0.8

1

98.1

30,896

0.6

1

91.7

30,943

0.6

1

93.0

156,428

3.2

1

96.6

154,369

3.1

1
1
1
1
1
1

98.1
98.5
97.0
97.0
100.0
97.3

36,32240,70325,724
97,26445,81599,401

0.7
0.8
0.5
2.0
0.9
2.0

1
1
1
1
1
1

92.5
98.6
97.0
98.2
97.5
91.4

36,09339,60325,69098,02247,87598,056

0.7
0.8
0.5
2.0
1.0
2.0

1

96.9

31,838

0.6

1

92.3

31,231

0.6

1
1
1
1
1

90.3
93.9
97.3
98.6
98.3

34,98189,06544,89749,76933,425

0.7
1.8
0.9
1.0
0.7

1
1
1
1
1

100.0
98.8
91.8
97.5
96.7

34,161
86,77046,30050,50632,779

0.7
1.8
0.9
1.0
0.7

1

95.9

69,508

1.4

1

97.4

71,201

1.4

1

96.3

33,363

0.7

1

96.3

33,289

0.7

1

95.7

64,513

1.3

1

98.9

65,723

1.3

1

89.1

32,979

0.7

1

100.0

34,886

0.7

1
1

87.7
92.6

123,436
33,334

2.5
0.7

1
1

95.7
96.3

125,191
34,429

2.5
0.7

1

96.1

128,031

2.6

1

95.8

129,017

2.6

1

98.2

50,938

1.0

1

100.0

51,340

1.0

1
1

94.5
97.8

25,10729,984

0.5
0.6

1
1

95.3
97.8

25,03430,790

0.5
0.6

1

94.2

115,722

2.3

1

95.3

116,304

2.3

1

95.6

2,502,683

50.6

1

96.2

2,507,202

50.6

Number oftenants(at end of
period)(Note 1)

(Note 2)

1

- 16 34

Number oftenants(at end of
period)Tokyo
Metropolitan area

Area

10th Fiscal Period(from February 1, 2015 to July 31, 2015)

11th Fiscal Period(from August 1, 2015 to January 31, 2016)

Other major
cities10th Fiscal Period(from February 1, 2015 to July 31, 2015)

COMFORIA KOMAE
COMFORIA
YOKOHAMAKANNAICOMFORIA ICHIKAWAMYODENCOMFORIA YATSUKACOMFORIA SHINKOYASU
Subtotal
COMFORIA SHIN-OSAKACOMFORIA SHINSAKAE
COMFORIA KITAHORIE
COMFORIA KITASANJO
Subtotal
Total(Note 1)

(Note 2)
(Note 3)11th Fiscal Period(from August 1, 2015 to January 31, 2016)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

1

91.4

18,0190.4

Number oftenants(at end of
period)(Note 1)

Occupancy
rate
Rental revenue Ratio to total(at end of (during period)
rentalperiod)revenues(thousands of
(%)
(%)
yen)
(Note 2)

1

100.0

19,138

0.4

1

85.9

40,830

0.8

1

96.7

39,312

0.8

1
1
1
1
1
1
1
–
1
1

96.2
95.2
97.1
93.2
97.7
93.6
94.8
–
95.9
95.5

25,51528,14839,059151,575
89,20356,50032,756–
178,459
4,942,777

0.5
0.6
0.8
3.1
1.8
1.1
0.7
–
3.6
100.0

1
1
1
1
1
1
1
1
1
1

95.7
98.4
85.3
94.3
96.3
97.9
91.9
98.4
96.6
96.2

24,383
26,85537,054
146,743
89,31858,12432,841
19,639199,923
4,957,115

0.5
0.5
0.7
3.0
1.8
1.2
0.7
0.4
4.0
100.0

“Number of tenants” indicates the number of tenants under a direct lease relationship with the Investment Corporation or the trustee. Therefore, incases where the Investment Corporation or trustee comprehensively leases all of the rooms for rent from each managed property to the master lease
company (hereinafter referred to as the “introduction of a master lease”), and said master lease company subleases each room for rent to end tenants,
the number of tenants will be shown as “1,” and will not include the number of end tenants related to the said sublease. Tokyu Housing Lease
Corporation is the only master lease company hired by the Investment Corporation; therefore, the sum of the number of tenants is set as “1” to reflect
this. Even for managed assets where a master lease is introduced, end tenants who do not accept the introduction of a master lease will be under adirect lease relationship with the Investment Corporation or trustee. However, the number of said end tenants is not included in the total number oftenants. In addition, the total number of end tenants by managed asset will be roughly the same as the number of rental units. However, at
COMFORIA RYOGOKUISHIWARA, two companies rent all rental rooms for corporate housing; therefore, the number of end tenants is “2.”“Occupancy rate” is the percentage of rented area vs. the rentable area of each managed asset.
These properties were sold to a third party as of October 19, 2015.

- 17 -

35

Capital Expenditure for Properties Owned

4. Statement of Renewable Energy Power Generation Facilities

1. Expected Capital Expenditure

Not applicable

5. Statement of Operational License of Public Facilities

Major capital expenditure that accompanies repair works currently planned for assets already acquired (includes assets undermanagement that were acquired after the account closing date) is as follows. The following expected amount of construction work
includes portions that are separately accounted under expenses.

Not applicable

6. Statement of Securities Incorporated in the Portfolio

Property name(location)

Not applicable

7. Details of Specified Transactions
The amount of specified derivative transactions entered into by the Investment Corporation and fair value as of January 31, 2016is as follows.
Segment
Over-the-countertransactions

Type

Contract amount (millions of yen)

Receive floating, pay
fixed interest-rate swap
transactions
Total(Note 1)
(Note 2)

Over 1 year

(Note 1)

Fair value(millions of yen)
(Note 2)

66,64038,720(2)

66,64038,720(2)

The contract amount of the interest-rate swap transactions is based on the notional principal.
The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate. The fair value is omitted fortransactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial Instruments.

8. Other Assets
The beneficiary rights of the trusts in which the properties owned by the Investment Corporation are entrusted are listed on the
aforementioned “3. Statement of Properties Incorporated in the Portfolio.” As of the end of the 11th Fiscal Period, there is no
incorporation in particular of specified assets as principal investment targets by the Investment Corporation, other than assets inthe aforementioned “3. Statement of Properties Incorporated in the Portfolio,” “4. Statement of Renewable Energy Power
Generation Facilities,” “5. Statement of Operational License of Public Facilities” and “6. Statement of Securities Incorporated in
the Portfolio.”

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

36- 18 -

PurposeScheduled period

Expected amount of construction work
(thousands of yen)
Total amountPayment for theperiodTotal amountalready paid

COMFORIA HIMONYA(Meguro-ku, Tokyo)

Large-scale repair work

From Mar. 2016
to Jun. 2016

40,850––

COMFORIA
DAIKANYAMAAOBADAI(Meguro-ku, Tokyo)

Exterior wall repair work

From May 2016
to Jul. 2016

25,460––

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

Electric water heater
replacement work

From Mar. 2016
to Jul. 2016

6,352

–

–

COMFORIA
YOYOGIUEHARA(Shibuya-ku, Tokyo)

Painting of iron section incommon area

From Jun. 2016
to Jul. 2016

5,980

–

–

COMFORIA KITASANDO(Shibuya-ku, Tokyo)

Washing machine
installation place repair
work

From Feb. 2016
to Jul. 2016

4,200

–

–

COMFORIA MISYUKU(Setagaya-ku, Tokyo)

Rooftop waterproofing
repair, painting of ironsection in common area,
etc.

From Jun. 2016
to Jun. 2016

4,045

–

–

COMFORIA SHINJUKUEAST SIDE TOWER(Shinjuku-ku, Tokyo)

Building face plate andsignage installation work

From Feb. 2016
to Mar. 2016

4,022

–

–

COMFORIA AZABUJUBAN(Minato-ku, Tokyo)

Painting of iron section incommon area

From Jun. 2016
to Jun. 2016

3,850

–

–

COMFORIA KITASANDO(Shibuya-ku, Tokyo)

Entrance improvement
work

From Jul. 2016
to Jul. 2016

3,000

–

–

COMFORIA NIBANCHO(Chiyoda-ku, Tokyo)

Painting of iron section incommon area

From Jun. 2016
to Jun. 2016

2,480

–

–

COMFORIA SHIBAURABOWHOUSE(Minato-ku, Tokyo)

Wooden flooring
installation work

From Feb. 2016
to Jul. 2016

2,400

–

–

COMFORIA GINZA EAST
(Chuo-ku, Tokyo)

Air conditioner
installation and repair
work

From Feb. 2016
to Jul. 2016

2,070

–

–

COMFORIA SHIBAURABOWHOUSE(Minato-ku, Tokyo)

Dog run renewal work

From Jul. 2016
to Jul. 2016

2,000

–

–

COMFORIA
SHINJUKUGYOEN I(Shinjuku-ku, Tokyo)

Painting of iron section incommon area

From May 2016
to May 2016

2,000

–

–

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

Painting of iron section incommon area

From Jul. 2016
to Jul. 2016

1,928

–

–

COMFORIA KITAHORIE(Nishi-ku, Osaka-shi, Osaka)Bathroom dehumidifier
installation work

From Feb. 2016
to Jul. 2016

1,560

–

–

COMFORIAHIGASHISHINAGAWA(Shinagawa-ku, Tokyo)

Storage place upper
waterproof layer repair
work

From Jul. 2016
to Jul. 2016

1,500

–

–

COMFORIA
SHINJUKUGYOEN II(Shinjuku-ku, Tokyo)

Painting of iron section incommon area

From May 2016
to May 2016

1,330

–

–

- 19 -

37

Property name(location)

PurposeScheduled period

2. Capital Expenditure during the Period

Expected amount of construction work
(thousands of yen)
Total amountPayment for theperiodTotal amountalready paid

COMFORIA SHIBAKOEN(Minato-ku, Tokyo)

Painting of iron section incommon area

From May 2016
to May 2016

1,259

–

–

COMFORIA KITAHORIE(Nishi-ku, Osaka-shi, Osaka)

Exclusively owned area
entrance repair work

From Feb. 2016
to Jul. 2016

1,065

–

–

The overview of main construction works corresponding to capital expenditure that took place in the 11th Fiscal Period for the
managed assets owned as of the end of the period is as follows. Capital expenditure during the 11th Fiscal Period was ¥52,481
thousand. Together with repair expenses of ¥124,735 thousand that were classified as expenses for the 11th Fiscal Period,
construction works totaling ¥177,217 thousand were carried out.
Property name(location)

PurposeConstruction cost(thousands of yen)

PeriodCOMFORIA KITASANDO(Shibuya-ku, Tokyo)

Washing machine installation place
repair work

From Aug. 2015
to Jan. 2016

6,992

COMFORIA MEGUROCHOJAMARU(Shinagawa-ku, Tokyo)

Common area repair work

From Oct. 2015
to Dec. 2015

5,159

COMFORIA SHIMOOCHIAI(Shinjuku-ku, Tokyo)

Common area repair work

From Nov. 2015
to Dec. 2015

4,742

COMFORIA TOYOSU(Koto-ku, Tokyo)

Painting of iron section in common area

From Dec. 2015
to Jan. 2016

3,051

COMFORIA KOMAZAWA(Setagaya-ku, Tokyo)

Painting of iron section in common area

From Dec. 2015
to Jan. 2016

2,494

COMFORIA OSHIAGE(Sumida-ku, Tokyo)

Painting of iron section in common area

From Dec. 2015
to Jan. 2016

1,804

COMFORIA KANDAJINBOCHO
Painting of iron section in common area
(Chiyoda-ku, Tokyo)

From Nov. 2015
to Dec. 2015

1,605

COMFORIA KITAHORIE(Nishi-ku, Osaka-shi, Osaka)Bathroom dehumidifier installation work

From Aug. 2015
to Dec. 2015

1,336

COMFORIA NIHONBASHI(Chuo-ku, Tokyo)

Painting of iron section in common area

From Dec. 2015
to Jan. 2016

1,092

COMFORIA SHIBAURABOWHOUSE(Minato-ku, Tokyo)

Wooden flooring installation and repair
work

From Aug. 2015
to Aug. 2015

1,036

Other properties, etc.

Automatic door security enhancement
work, etc.

From Aug. 2015
to Jan. 2016

23,166

Total

52,481

3. Money Reserved for Long-Term Repair Plans
From the cash flows during the fiscal period, the Investment Corporation sets aside reserves for repairs, which are to beappropriated for repairs in the medium to long term.
7th Fiscal Period

8th Fiscal Period

9th Fiscal Period

10th Fiscal Period(Thousands of yen)
11th Fiscal Period

From Aug. 1, 2013
to Jan. 31, 2014

From Feb. 1, 2014
to Jul. 31, 2014

From Aug. 1, 2014
to Jan. 31, 2015

From Feb. 1, 2015
to Jul. 31, 2015

From Aug. 1, 2015
to Jan. 31, 2016

Balance of reserves at the
beginning of period

144,240

175,529

232,973

248,938

313,837

Amount of reserves
during period

96,830144,738

239,628

188,329

188,418

Reversal of reserves
during period

65,541

87,293

223,663

123,430

175,173

Amount carried forward
to next period

175,529

232,973

248,938

313,837

327,081

Fiscal period38- 20 -- 21 -

39

Status of Expenses and Liabilities

2. Loan Status

1. Statement of Expenses Related to Investments
Item
Asset management fee

The status of loans as of January 31, 2016 is as follows.

10th Fiscal Period
From Feb. 1, 2015 to Jul. 31, 2015
291,002(Note)(Thousands of yen)
11th Fiscal Period
From Aug. 1, 2015 to Jan. 31, 2016

5,118

5,918

Administrative service fees

21,433

24,974

Directors’ compensation

3,600

3,600

176,030

176,307497,185543,788

Total

Lender332,987

Asset custody fee

Other expenses

Type

Long-term loans (Note 1)(Note) In addition to the amount stated above, asset management fees amounting to ¥137,897 thousand and ¥25,600 thousand in the 10th Fiscal Period and 11th
Fiscal Period, respectively, related to the acquisition of property are incorporated in the book value of each property, as well as ¥24,450 thousand inmanagement fees related to the sale of property in the 11th Fiscal Period.

Development Bank of Japan Inc.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank, Limited
The Tokyo Tomin Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
The Tokyo Tomin Bank, Limited
Mitsubishi UFJ Trust and Banking
Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Trust & Banking, Co., Ltd.
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
The 77 Bank, Ltd.
The Daishi Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation40- 22 -

Drawdown
dateMar. 23,2011

Mar. 23,2011

Feb. 3,2012

Sep. 4,2013

Sep. 30,
2013

Sep. 30,
2013
Feb. 4,2014

Feb. 4,2014

Balance atthebeginningof current
period(millionsof yen)Balance atthe end ofcurrent
period(millionsof yen)

3,570

3,570

1.34500

3,570

3,570

1.33500

1,785
1,000
3,570
3,570

1,785
1,000
3,570
3,570

1.03715
1.03715
1.03715
1.03715

3,570

3,570

1.03715

1,785
1,090
1,090
1,090

1,785
1,090
1,090
1,090

1.03715
1.41200
1.41200
1.41200

1,090

1,090

1.41200

1,090

1,090

1.41200

550
300

550
300

1.41200
1.41200

2,000

2,000

0.79500

Averageinterest
rate (%)(Note 2)

1,350

1,350

0.67075

1,350

1,350

0.67075

1,350

1,350

0.67075600

600

0.67075

1,350

1,350

0.90487

2,000
1,500
1,000
500
500
1,000
1,000
1,000

2,000
1,500
1,000
500
500
1,000
1,000
1,000

0.379900.379900.379900.379900.379900.60700
0.60700
0.60700

1,000

1,000

0.60700

1,000

1,000

0.60700

500

500

0.60700

Maturity Repayment
date
methodUse offunds

RemarksMar. 23,
2016

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Mar. 23,
2019

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Sep. 29,2017

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Aug. 31,2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Mar. 30,
2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Sep. 30,
2019

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Jan. 31,2017

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Jan. 31,2019

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed- 23 41

Long-term loans (Note 1)

Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Shinkin Central Bank
The Norinchukin Bank
The Bank of Fukuoka, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation

Feb. 4,2014

Jun. 30,
2014

Jun. 30,
2014

Nov. 13,2014

Feb. 3,2015

Feb. 3,2015

Feb. 3,2015

Feb. 3,
2015

1,000
1,000
1,000

1,000
1,000
1,000

0.882400.882400.88240

1,000

1,000

0.88240

1,000

1,000

0.88240

500
670
670
670

500
670
670
670

0.882400.601500.601500.60150670

670

0.60150

Averageinterest
rate (%)(Note 2)670

670

0.60150

350
910
910
910

350
910
910
910

0.60150
0.90100
0.90100
0.90100

910

910

0.90100

910

910

0.90100

450
380
380

450
–
–

0.90100
0.33000
0.33000380–

0.33000380–

0.33000

180
750
750
750
600
600
600

–
750
750
750
600
600
600

0.33000
0.308200.308200.308200.69250
0.69250
0.69250600

600

0.69250600

600

0.69250

300
620
620
620

300
620
620
620

0.69250
0.79875
0.79875
0.79875620

620

0.79875620

620

0.79875

310
620
620
620

310
620
620
620

0.79875
1.04200
1.04200
1.04200

620

620

1.04200

620

620

1.04200

310

310

1.04200

MaturitydateJan. 31,2021

Repayment
methodLump-sum
repayment

Use offunds(Note 3)

Remarks

Unsecured
Unguaranteed

Type(Note 1)

LenderBalance atthe end ofcurrent
period(millionsof yen)Long-term loans

Type

Drawdown
date

Balance atthebeginningof current
period(millionsof yen)LenderMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking Corporation
Total(Note 1)
(Note 2)

Jun. 30,
2020

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Jun. 30,2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Nov. 30,
2015

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Mar. 30,
2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Jan. 31,2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Jan. 31,2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Jan. 31,2025

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed(Note 3)

Drawdown
date

Nov. 30,
2015

Balance atthebeginningof current
period(millionsof yen)Balance atthe end ofcurrent
period(millionsof yen)

–
–

440
440

0.33000
0.33000–440

0.33000–440

0.33000–
75,990220
76,2700.33000

Averageinterest
rate (%)(Note 2)

Maturity
date

Repayment
methodUse offunds

Remarks

Nov. 30,
2016

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

Long-term loans include the current portion of long-term loans payable.
Average interest rates consist of the borrowing rates for each loan agreement rounded to the fifth decimal place. Furthermore, the stated rate for loans
for which interest-rate swap transactions were carried out to avoid interest rate risk takes into account the effect of the interest-rate swap.
The usage of funds includes purchasing properties in trust and the repayment of existing loans.

- 24 42- 25 -

43

3. Investment Corporation Bonds

3. Appraisals of Specified Assets

The status of investment corporation bonds as of January 31, 2016 is as follows.
Issue
date

Issue

1st Unsecured Bond
(Note 1)

Jul. 30,
2014

Total
(Note 1)
(Note 2)

Balance atthe beginningof current
period(millions ofyen)Amountincreased incurrent
period(millions ofyen)Amountdecreased incurrent
period(millions ofyen)

Balance atthe end ofcurrent
period(millions of
yen)

3,000

–

–

3,000

3,000

–

–

3,000

(1) Real estate, etc.

Couponrate (%)

0.64000

Maturity Repayment
date
methodJul. 30,
2021

Use offunds

Lump-sum
repayment(Note 2)

Security

UnsecuredThe bonds are subject to the pari passu clause among specified investment corporation bonds.
The funds are appropriated to the acquisition of real estate in trust and the repayment of some of the existing borrowings.

4. Short-Term Investment Corporation Bonds
Not applicable

5. Investment Unit Acquisition Rights

Sale

Acquisition price
Acquisition date(millions of yen)

Sale date

Appraisalcompany(Note 2)

Date ofvaluation

COMFORIAKITASANJO

Oct. 19, 2015

660

890

(1)

Sep. 30, 2015

Acquisition

Beneficial
interest in realestate Trust

COMFORIA AZABU
EASTOct. 19, 2015

1,900

2,550

(2)

Sep. 30, 2015

Sale

Beneficial
interest in realestate trust

COMFORIA
DAIKANYAMA

Oct. 19, 2015

1,850

2,140

(2)

Jul. 31, 2015

Sale

Beneficial
interest in realestate trust

COMFORIA
HARAJYUKU NORD

Oct. 19, 2015

595

703

(1)

Jul. 31, 2015

The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property
tax, city planning tax, consumption tax and local consumption tax.
The appraisal companies handling the real estate appraisal of each property are (1) The Tanizawa Sogo Appraisal Co., Ltd. and (2) Japan Real
Estate Institute.

(2) Other
Of the transactions carried out by the Investment Corporation, there were no transactions other than those shown in the
aforementioned “(1) Real estate, etc.,” that were deemed to require an appraisals pursuant to the provisions of Article 201 of
the Investment Trust Act.

1. Purchase and Sale of Properties and Asset Backed Securities
Acquisition

Property nameReal estate appraisal
Appraisalvalue(millions ofyen)

Beneficial
interest in realestate trust(Note 2)

Purchase and Sale during the Period

Type of asset

Acquisition
Acquisition or price or saleprice (millions
sale dateof yen) (Note 1)

Acquisition(Note 1)

Not applicable

Property nameAcquisitionor saleSale price(millions ofyen)Book value(millions ofyen)

4. Transactions with Related Parties

Gain on sale(millions ofyen)(1) Information on transaction
Not applicable

COMFORIAKITASANJO

Oct. 19, 2015

660

–

–

–

–

COMFORIA AZABU
EASTOct. 19, 2015

1,900

–

–

–

–

COMFORIA
DAIKANYAMA––

Oct. 19, 2015

1,850

1,790

38

COMFORIA
HARAJYUKU NORD––

Oct. 19, 2015

595

532

54

Total

–

2,560

–

2,445

2,322

92

(Note) The acquisition price and sale price do not include miscellaneous expenses required for the acquisition or sale of said property, fixed property tax, city
planning tax, consumption tax and local consumption tax.

2. Purchase and Sale of Other Assets
Main assets other than the above properties and asset backed securities are bank deposits or bank deposits within trust assets.

(2) Amount of commission paid
Category

Total amount ofcommission paid(A) (thousands ofyen)

Breakdown of transaction with related parties
Payee
Tokyu Housing Lease Corporation

Property management
entrustment costs

432,693 TS Community Co., Ltd.

Marketing-related
expenses

107,334 Tokyu Livable, Inc.

Other expenses related
to rent business

79,695 TS Community Co., Ltd.

TOKYU COMMUNITY CORP.

Amount of payment(B) (thousands ofyen)

Percentage of total
amount B/A (%)

305,067

70.5

21,725

5.0

3,370

0.8

299

0.3

2,639

3.3

(3) Major payments to other related parties
TS Community Co., Ltd.
¥860 thousand (repair work)
Tokyu Homes Corporation¥827 thousand (repair work)
Tokyu Community Corp.
¥125 thousand (repair work)

5. Transactions with Asset Management Companies related to Concurrent Operations Carried Out by the AssetManagement Company
The Asset Management Company (TLC Comforia Investment Management INC.) is not concurrently engaged in type I financial
instruments business, type II financial instruments business, realty business or specified real estate cooperative business.

44- 26 -- 27 -

45

Accounting Status

3. Disclosure on Overseas Property Owning Corporations
Not applicable

1. Assets, Liabilities, Principal and Profit/Loss
Please refer to “1. Balance Sheet,” “2. Statements of Income,” “3. Statements of Changes in Unitholders’ Equity,” “4. Statementsof Cash Distributions,” “5. Statements of Cash Flows,” and “6. Notes.”

2. Changes in the Calculation Method of Depreciation

4. Disclosure on Real Estate Owned by Overseas Property Owning Corporations
Not applicable

5. Other

Not applicable

Figures in this material are rounded down (values) and rounded to the nearest decimal place (percentages) unlessotherwise indicated.

3. Changes in the Appraisal Method of Real Estate, etc.
Not applicable

Other
1. Beneficiary Certificates of Investment Trusts Established by Own Company
Not applicable

2. Notices
The main overviews of the major conclusion and change of contracts that were approved by the Board of Directors of theInvestment Corporation during current period are as follows.
Approval date

MatterOverview

December 25, 2015

Change in general administrationconsignment contract

Part of the conditions were amended as a result of the introduction of
the Social Security and Tax Number System for the generaladministration consignment (investment unit administration agency)
contract that was concluded as of June 14, 2010 between theInvestment Corporation and the transfer agent (Mitsubishi UFJ Trustand Banking Corporation).

January 5, 2016

Conclusion of a new investment unit
underwriting contract pertaining to
the issuance of new investment units
and the sale of investment units, andthe conclusion of a new investment
unit purchase contract with regard to
the Green Shoe option

A new investment unit underwriting contract with Mizuho Securities
Co., Ltd. and three other companies (Note) for the issuance of new
investment units and the sale of investment units that were approvedat the Board of Directors’ meeting held on January 5, 2016 andJanuary 18, 2016, as well as a new investment unit purchase contract
pertaining to the Green Shoe option with the book runner (Mizuho
Securities Co., Ltd.) were concluded as of January 18, 2016.

(Note) Joint lead managers of Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc., as well as Daiwa Securities Co., Ltd. and Nomura Securities
Co., Ltd.

- 28 46- 29 -

47

III Financial Section
1.

[Balance Sheet]

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

48(Thousands of yen)(Thousands of yen)
10th Fiscal Period(As of July 31, 2015)

10th Fiscal Period(As of July 31, 2015)

11th Fiscal Period(As of January 31, 2016)

4,829,815
4,643,818
12,40233,31425,6249,375
9,554,351

5,628,757
4,703,318
7,635
14,293–
9
10,354,013

666,057
ሺ23,347)
642,709
5,927
ሺ488)
5,438
431,262
64,218,363
ሺ3,867,453)
60,350,909
828,659
ሺ124,630)
704,028
1,039,180
ሺ100,553)
938,627
66,840
ሺ18,272)
48,567
85,233,191
148,354,735

667,564
ሺ31,715)
635,849
5,927
ሺ661)
5,266
431,262
64,615,063
ሺ4,551,429)
60,063,634
821,638
ሺ143,891)
677,746
1,081,784
ሺ119,444)
962,339
73,815
ሺ23,088)
50,726
85,109,790
147,936,616

265,279
18,966284,245

265,279
16,653281,932

10,189675,914686,103
149,325,084

10,129602,353
612,482
148,831,031

67,10816,257
83,366
158,962,802

45,925
14,88360,808159,245,853

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

-2-

-1-

11th Fiscal Period(As of January 31, 2016)

310,574
11,625,000
57,541
105,410671–
761,233505
816
12,861,753

270,460
17,405,000
32,068108,810629
45,292757,387
2,578
311
18,622,539

3,000,000
64,365,000
10,351
1,415,445
68,790,796
81,652,549

3,000,000
58,865,000
5,015
1,383,447
63,253,462
81,876,001

75,224,343

75,224,343

2,086,414

2,148,086

2,086,414
77,310,758

2,148,086
77,372,430

ሺ505)
ሺ505)
*1 77,310,252
158,962,802

ሺ2,578)
ሺ2,578)*1 77,369,851
159,245,853

49

2.

[Statements of Income](Thousands of yen)
10th Fiscal Period(From February 1, 2015
to July 31, 2015)

Operating revenue
Rent revenue - real estate
Other lease business revenue
Gain on sales of real estate properties
Dividend income
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Directors’ compensations
Audit fee
Asset custody fee
Administrative service fee
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)

50

-3-

3.

[Statements of Changes in Unitholders’ Equity]
10th Fiscal Period (From February 1, 2015 to July 31, 2015)

11th Fiscal Period(From August 1, 2015
to January 31, 2016)(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus*1 4,721,827*1 4,772,679*1 220,949*1 184,435–
9,225
4,952,002*2 92,911–
5,050,026*1 1,919,572*1 1,902,989

291,002
3,600
11,664
5,118
21,433
164,366
2,416,758
2,535,244

332,987
3,600
11,664
5,918
24,974
164,6432,446,778
2,603,248

757
–
757

856
48
904

332,230
82,626
9,599

338,388
83,198
9,600

1,373

1,373

22,949448,779
2,087,222
2,087,222
966
1
968
2,086,253
160
2,086,414

22,950455,5112,148,641
2,148,641803
6
810
2,147,831
255
2,148,086

Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
periodIssuance of new
investment units

56,900,677

ProfitDeferred gains
or losses onhedgesTotal valuationand translation
adjustments

Total net assets

ሺ932)

ሺ932)

58,629,681

Total surplus

1,729,936

1,729,936

58,630,614

18,323,666

18,323,666

ሺ1,729,775)

ሺ1,729,775)

ሺ1,729,775)

ሺ1,729,775)

18,323,666

Dividends of surplus

2,086,253

Net changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end of current
periodTotalunitholders’equityUnappropriatedretainedearnings(undisposed
loss)

2,086,253

2,086,253

2,086,253

427

427

427

18,323,666

356,477

356,477

18,680,143

427

427

18,680,571*1 75,224,343

2,086,414

2,086,414

77,310,758

ሺ505)

ሺ505)

77,310,252

11th Fiscal Period (From August 1, 2015 to January 31, 2016)(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
period75,224,343

Dividends of surplus
ProfitNet changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end of current
periodTotalunitholders’equityUnappropriatedretainedearnings(undisposed
loss)

Total surplus

2,086,414

2,086,414

77,310,758

ሺ2,086,159)

ሺ2,086,159)

ሺ2,086,159)

2,147,831

2,147,831

Total valuationand translation
adjustments

Total net assets

ሺ505)

ሺ505)

77,310,252

ሺ2,086,159)

2,147,831–

61,672

61,672

61,672*1 75,224,343

2,148,086

2,148,086

77,372,430-4-Deferred gains
or losses onhedges2,147,831

ሺ2,073)

ሺ2,073)

ሺ2,073)

ሺ2,578)

ሺ2,578)77,369,851

ሺ2,073)

ሺ2,073)59,598

51

4.

5.

Category

10th Fiscal Period(From February 1, 2015
to July 31, 2015)

11th Fiscal Period(From August 1, 2015
to January 31, 2016)

Unappropriated retained earnings¥2,086,414,365¥2,148,086,708

II. Distributions[Distribution per unit]
III. Voluntary retained earnings
Provision of reserve for reduction
entry
IV. Retained earnings carried forward
Method for calculating distributions¥2,086,159,012[¥4,403]¥2,055,835,556[¥4,339]

I.

52[Statements of Cash Distributions]¥–¥255,353
The Investment Corporation will makecash distributions using accounting profits
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation, in
an amount that exceeds 90% of the“amount of distributable profit” of theInvestment Corporation as set forth in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, the Investment
Corporation has determined to pay out¥2,086,159,012 as the total amount ofdividends for the period under review,which is nearly equivalent to the entire
amount of unappropriated retained
earnings.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

-5-¥92,170,266¥80,886
The Investment Corporation will makecash distributions using accounting profits
based on the distribution policy outlined
in Article 35-1 of the Investment
Corporation’s Articles of Incorporation, in
an amount that exceeds 90% of the“amount of distributable profit” of theInvestment Corporation as set forth in
Article 67-15 of the Act on Special
Measures Concerning Taxation.
Based on this policy, the Investment
Corporation has determined that it will
pay out ¥2,055,835,556 as the total
amount of dividends for the period underreview, which is nearly equivalent to theentire amount of unappropriated retained
earnings after deducting provision ofreserve for reduction entry as set forth in
Article 66-2 of the Act on Special
Measures Concerning Taxation.
Furthermore, the Investment Corporation
does not pay out dividends that exceed
accounting profits as outlined in Article
35-2 of the Investment Corporation’s
Articles of Incorporation.

[Statements of Cash Flows](Thousands of yen)
10th Fiscal Period(From February 1, 2015
to July 31, 2015)

Cash flows from operating activities
Profit before income taxes
Depreciation
Borrowing related expenses
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease due to sales of property, plant and equipmentin trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from withdrawal of investment securities
Proceeds from collection of lease and guarantee
deposits
Proceeds from tenant leasehold and security deposits
Repayment of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
in trust
Repayment of tenant leasehold and security deposits intrust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

11th Fiscal Period(From August 1, 2015
to January 31, 2016)

2,087,222
818,201
82,626
1,373

1,373

22,949
ሺ757)
341,829
ሺ2,964)
ሺ20,149)

22,950ሺ856)
347,989
4,767
18,234

ሺ3,976)
90,0702,152
16,819120,871

45,292
ሺ45,724)790
ሺ280)
ሺ3,846)

ሺ25,624)

25,624–2,322,939

1,903
3,532,547
757
ሺ343,462)
514
ሺ2,723)
3,187,633

4,061
5,799,196856
ሺ344,308)
1,742
ሺ845)
5,456,641

ሺ6,939)
ሺ24,783,226)
ሺ17,024)
168,460

ሺ1,848)
ሺ2,747,306)
–
–

–

60

651
ሺ655)

360,692759
ሺ6,095)

149,346

ሺ177,425)

ሺ181,184)

ሺ24,455,467)––
12,118,684
ሺ5,350,000)
18,280,930
ሺ1,729,687)
ሺ7,608)23,312,318
2,044,484
7,429,148*1 9,473,633-6-

2,148,641
824,039
83,198

ሺ2,786,268)

279,697
ሺ280,000)
1,979,684
ሺ1,700,000)–
ሺ2,084,204)
ሺ7,108)
ሺ1,811,930)
858,441
9,473,633*1 10,332,075

53

6.
[Notes]<Summary of Significant Accounting Policies>
1. Method of depreciation of(1) Property, plant and equipment (including trust assets)
non-current assets
Property, plant and equipment are depreciated using the straight-line method overthe estimated useful lives as follows:
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures

2–64 years
2–64 years
10–34 years
3–10 years(2) Intangible assets
Intangible assets are amortized by the straight-line method.

2.

Accounting policies fordeferred assets

3.

Accounting standards forrevenues and expenses

4.

Method of hedge
accounting(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized using the straight-line
method over the redemption periods.

6.

Other significant
accounting policies utilized
in the preparation offinancial statements(1) Accounting method for trust beneficiary interests in real estate and other assets
The assets and liabilities in addition to revenues and expenses of financial assets
held in the form of trust beneficiary interests in real estate and other assets arerecorded in full in the Investment Corporation’s balance sheets and statements ofincome.
Important line items included in accounting for financial assets and liabilities in
the Investment Corporation’s balance sheet are as follows:(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; construction in progress in trust;and leasehold rights in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting method for consumption tax
Consumption taxes are excluded from transaction amounts. Non-deductible
consumption taxes applicable to the acquisition of non-current assets, etc. are
included in the cost of acquisition for each asset.

(2) Investment unit issuance expenses
Investment unit issuance expenses are amortized using the straight-line method overthree years.
Accounting treatment of fixed property tax, etc.
For property tax, city planning tax, and depreciation asset tax for real estate
properties held, the amounts to be paid for the fiscal periods are calculated out of
the tax amounts decided to be levied and are recorded as Expenses related to rent
business.
Of the amounts paid for the acquisition of real estate property or beneficiary right ofreal estate in trust, the amounts equivalent to fixed property tax for thecorresponding year are capitalized as part of the acquisition cost of the relevant
property rather than being charged as expenses.
(1) Method of hedge accounting
The deferred hedge method is applied.
However, the special accounting treatment is applied for interest-rate swap
transactions that meet certain criteria.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest expenses on loans payable(3) Hedging policy
The Investment Corporation enters into derivative transactions based on its
investment management guidelines with the objective of hedging interest rate
fluctuation risks and other risks pertaining to borrowings, etc.

5.

54

Scope of funds (cash andcash equivalents) on theStatements of Cash Flows(4) Method of evaluating the effectiveness of hedging
As for the method of assessing the effectiveness of the hedge, the cumulativechanges in cash flow of the hedged items and hedging instruments are compared
and a judgment is made by verifying the ratio of the changed amount. However, anassessment of the effectiveness of hedging activities is omitted in the case ofinterest-rate swap transactions that meet the requirements for the special treatment.
The funds (cash and cash equivalents) on the Statements of Cash Flows consist of cashon hand and cash in trust, deposits and deposits in trust that are readily available, andshort-term investments with maturities of three months or less from the date of purchasewhich are readily convertible to cash and with insignificant risk of market value
fluctuation.

-7-

-8-

55

<Notes to the Balance Sheets>*1. Minimum net assets pursuant to Article 67-4 of the Act on Investment Trusts and Investment Corporations(Thousands of yen)
11th Fiscal Period(As of January 31, 2016)

10th Fiscal Period(As of July 31, 2015)
50,000<Notes to the Statements of Income>*1. Breakdown of real estate rental revenues and expenses
10th Fiscal Period(From February 1, 2015
to July 31, 2015)
A. Real estate rental revenue
Rent revenue - real estate(Rental revenues, common service
charges)(Parking revenues)
Other lease business revenue(Key money and contract renewal
fees)(Other revenues)
Total real estate rental revenues
B. Real estate rental expenses
Expenses related to rent business(Property management fees andfacility management fees)(Repairs and maintenance)(Land rent)(Tax and public dues)(Insurance)(Utilities)(Marketing-related expenses)(Trust fees)(Depreciation)(Other expenses related to rent
business)
Total real estate rental expenses
C. Income from real estate rental business(A - B)

124,735
2,729
222,958
6,980
62,442
107,334
40,887
821,726

70,87880,501Other sales expenses

1,902,989
3,054,125

1,850,000
1,790,518
21,29338,18711th Fiscal Period(As of January 31, 2016)

8,000,000 units
473,804 units<Notes to the Statements of Cash Flows>*1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the Statements of Cash Flows(Thousands of yen)
10th Fiscal Period
11th Fiscal Period(As of July 31, 2015)(As of January 31, 2016)
Cash and deposits
4,829,815
5,628,757
Cash and deposits in trust
4,643,818
4,703,318
Cash and cash equivalents
9,473,633
10,332,075<Notes to lease transactions>Operating lease transactions (Lessor)
The future minimum rental revenues under existing non-cancelable operating leases were as follows:

Due within 1 year
Due after 1 year
Total

3,023,204(Thousands of yen)

10th Fiscal Period(As of July 31, 2015)

63,056
151,992
215,049(Thousands of yen)
11th Fiscal Period(As of January 31, 2016)
60,432
138,878
199,311<Notes to financial instruments>
1. Status of financial instruments(1) Policies for financial instruments
With a focus on stability, flexibility and efficiency as the basis of its financial policy, the Investment Corporation procures
funds through borrowings as well as the issuance of investment corporation bonds (including short-term investment
corporation bonds; the same shall apply hereinafter) and investment units among other means with the aim of growing its
investment assets through their acquisition.
The Investment Corporation may enter into derivatives transactions, which shall be executed solely for the purpose ofhedging against interest-rate fluctuations and other risks pertaining to borrowings, etc.
(2) Characteristics and risk profile of each financial instrument and risk management system
The funds for borrowings and investment corporation bonds were mainly appropriated for the acquisition of investment
assets and repayment of borrowings, etc. With regard to liquidity and interest rate fluctuation risks associated with thesefinancing activities, the Investment Corporation endeavors to manage and limit them by considering and implementing
multifaceted funding methods including the utilization of surplus funds and raising funds, etc. from capital markets throughissuance of investment units, etc. while diversifying funding sources. Although loans with floating interest rates are exposed
to a risk of fluctuation in interest payable, the Investment Corporation employs derivative transactions (interest-rate swap
transactions) as hedging instruments in order to avoid interest rate fluctuation risks and fix loan interest payable. For moredetailed information on the method of hedge accounting, hedging instruments, hedged items, hedging policy and theevaluation method for hedge effectiveness, please refer to the previous section (6) Notes: Summary of significant accounting
policies, 4. Method of hedge accounting.
(3) Supplementary note regarding fair value of financial instruments
The fair value of financial instruments presented in this report is based on their market value, and in cases where market
value is not available, reasonably calculated values are presented. Since the calculation of fair value is based on certain
assumptions, fair value could differ depending on the assumptions used.

595,000
532,420
7,855
54,724Gain on sales of real estate properties

56

184,435
4,957,115

1,919,572(2) COMFORIA HARAJYUKU NORD
Revenue from sales of real estate
properties
Costs of sales of real estate properties

61,877432,693

Gain on sales of real estate properties

4,772,679

122,557
220,949
4,942,777

431,214(1) COMFORIA DAIKANYAMA

Other sales expenses

91,035140,533
2,729
180,617
6,831
64,864
164,676
40,772
816,455*2. Breakdown of gain on sales of real estate properties
10th Fiscal Period (From February 1, 2015 to July 31, 2015)
Not applicable
11th Fiscal Period (From August 1, 2015 to January 31, 2016)

Revenue from sales of real estate
properties
Costs of sales of real estate properties

4,721,827

125,882
95,067(Thousands of yen)
11th Fiscal Period(From August 1, 2015
to January 31, 2016)

4,681,644

4,632,063
89,76350,000<Notes to the Statements of Changes in Unitholders’ Equity>
10th Fiscal Period(As of July 31, 2015)*1. Total number of authorized
investment units and total number ofinvestment units issued andoutstanding
Total number of authorized investment
8,000,000 units
units
Total number of investment units issued
473,804 units
and outstanding-9-- 10 57

2.

Fair value of financial instruments
The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of July 31,2015 are as follows.
(Thousands of yen)
Carrying value
Fair value
Difference(Note 1)

(Note 1)

(1) Cash and deposits

4,829,815

4,829,815–(2) Cash and deposits in trust

4,643,818

4,643,818–(3) Current portion of long-term loans
payable(11,625,000)(11,665,865)

40,865(4) Investment corporation bonds(3,000,000)(3,022,372)

22,372(5) Long-term loans payable(64,365,000)(64,627,916)

262,916

(505)

(505)

–

(6) Derivative transactions

The carrying value of financial instruments on the balance sheet, their fair value and the differences between them as of January
31, 2016 are as follows.
(Thousands of yen)
Carrying value
Fair value
Difference(Note 1)

(Note 1)

(1) Cash and deposits

5,628,757

5,628,757–(2) Cash and deposits in trust

4,703,318

4,703,318–(3) Current portion of long-term loans
payable(17,405,000)(17,417,564)

12,564(4) Investment corporation bonds(3,000,000)(3,038,037)

38,037(5) Long-term loans payable(58,865,000)(59,530,149)

665,149(2,578)(2,578)–(6) Derivative transactions(Note 1)
(Note 2)

(Note 3)Figures in parentheses indicate liabilities.
Methods to determine the fair value of financial instruments:(1) Cash and deposits and (2) Cash and deposits in trust
Due to their short tenors, the carrying values of these assets are reasonable approximations of their present value and hence are used as theirfair value.
(3) Current portion of long-term loans payable and (5) Long-term loans payable
For loans with floating interest rates, since the interest rates on such loans reflect market rates reasonably well over the short-term and theircarrying values are good approximations of their fair value, the carrying values are presented as their fair value. However, the fair value offloating-rate long-term loans payable and current portion of long-term loans payable hedged by interest-rate swap transactions subject tospecial accounting treatment (refer to the following section entitled “Notes to derivative transactions”) are calculated by discounting theaggregated principal and interest on such loans, after taking into account the effect of said interest-rate swap transactions, using reasonableestimates of the rates that would be applicable in a similar borrowing.
(4) Investment corporation bonds
The fair value of investment corporation bonds is measured based upon the present value obtained by discounting the total amount ofprincipal and interest at a rate that takes into account the term to maturity and credit risk.
(6) Derivative transactions
Please refer to the following section entitled “Notes to derivative transactions.”
Carrying value of financial instruments whose fair value cannot be reliably measured(Thousands of yen)
10th Fiscal Period
11th Fiscal Period(As of July 31, 2015)(As of January 31, 2016)(1) Tenant leasehold and security deposits(10,351)(Note 4) Redemption schedule for monetary claims (Thousands of yen)
10th Fiscal Period (As of July 31, 2015)
Due in 1 year
or less
Deposits

4,829,815

Deposits in trust

4,643,818

Total

9,473,633

11th Fiscal Period (As of January 31, 2016)
Due in 1 year
or less
Deposits

5,628,757

Deposits in trust

4,703,318

Total

10,332,075(Note 5) Redemption schedule for loans payable and investment corporation bonds (Thousands of yen)
10th Fiscal Period (As of July 31, 2015)
Due in 1 year
Due after 1 year Due after 2 years Due after 3 years
or less
to 2 years
to 3 years
to 4 years
Current portion of
long-term loans
11,625,000–––
payableLong-term loans–
5,500,000
13,200,000
19,995,000
payableInvestment––––
corporation bonds
Total

11,625,000

11th Fiscal Period (As of January 31, 2016)
Due in 1 year
or less
Current portion of
long-term loans
17,405,000
payableLong-term loans–
payableInvestment–
corporation bonds
Total

17,405,000

Due after 4
years to 5 years

Due after 5
years

–

–

5,050,000

20,620,000–

3,000,000

5,500,000

13,200,000

19,995,000

5,050,000

23,620,000

Due after 1 year
to 2 years

Due after 2 years
to 3 years

Due after 3 years
to 4 years

Due after 4
years to 5 years

–

–

–

–

–

6,300,000

14,400,000

13,845,000

9,200,000

15,120,000

Due after 5
years

–

–

–

–

3,000,000

6,300,000

14,400,000

13,845,000

9,200,000

18,120,000<Notes to investment securities>
10th Fiscal Period (As of July 31, 2015)
Not applicable
11th Fiscal Period (As of January 31, 2016)
Not applicable<Notes to derivative transactions>
1. Transactions not subject to hedge accounting
10th Fiscal Period (As of July 31, 2015)
Not applicable
11th Fiscal Period (As of January 31, 2016)
Not applicable(5,015)(2) Tenant leasehold and security deposits in(1,383,447)(1,415,445)
trust(1)(2) Fair value of tenant leasehold and security deposits is not subject to disclosure of fair value, as they have no market value and their future
cash flows are difficult to reasonably estimate given the fact that although a predetermined period for each lease contract exists, the actual
deposit period cannot be calculated due to possible contract termination, renewal or extension.
(3) Figures in parentheses indicate non-current liabilities.

58- 11 -- 12 -

59

2.

Transactions subject to hedge accounting
10th Fiscal Period (As of July 31, 2015)
Hedge
accounting
methodDefferdaccounting
method, inprinciple
Specialtreatment ofinterest-rate
swap
transactions

Type of derivativetransactions

Receive floating, pay
fixed interest-rate
swap transactions

Receive floating, pay
fixed interest-rate
swap transactions

2.

Contract amount
Hedged items

Maturing after 1
yearLong-term loans
payable(*1)

Long-term loans
payable
(*1)

Total

15,280,000－

51,360,000

44,220,000

66,640,000

44,220,000

11th Fiscal Period (As of January 31, 2016)
Hedge
accounting
methodType of derivativetransactions

Defferdaccounting
method, inprinciple

Receive floating, pay
fixed interest-rate
swap transactions

Specialtreatment ofinterest-rate
swap
transactions

Receive floating, pay
fixed interest-rate
swap transactions

Contract amount
Hedged items

Maturing after 1
yearLong-term loans
payable(*1)

Long-term loans
payable

Total

(*1)

15,280,000

51,360,000

66,640,000－

38,720,000

38,720,000(Thousands of yen)Calculation
method for
Fair value
applicable fairvalue
Evaluated basedon the fair value
calculated by theሺ505) counterparty of
the contract
using market
interest rate, etc.

(Thousands of yen)Calculation
method for
Fair value
applicable fairvalue
Evaluated basedon the fair value
calculated by theሺ2,578) counterparty of
the contract
using market
interest rate, etc.

Statutory tax rate
(Adjustments)
Deductible cash distributions
Provision of reserve for reduction entry
Other
Effective tax rate
3.

60

16
16
16

- 13 -

32.31

ሺ34.13)
－
0.03
0.05

ሺ30.91)ሺ1.39)
0.03
0.04

Change in statutory tax rate, etc. after the balance sheet date
The Act for Partial Revision of the Income Tax Act, etc. (Act No.15 of 2016) and the Act for Partial Revision of Local Taxes, etc.
(Act No.13 of 2016) were promulgated on March 31, 2016, and as a result, the corporate tax rate, etc. will be lowered from fiscal
years beginning on or after April 1, 2016. Accordingly, the effective statutory tax rate used to measure deferred tax assets anddeferred tax liabilities will be changed from 32.31% to 31.74% for temporary differences expected to be settled or realized in thefiscal years beginning during the period between August 1, 2016 and February 1, 2018. Additionally, the effective statutory tax
rate used to measure deferred tax assets and deferred tax liabilities will be changed to 31.51% for temporary differences expected
to be settled or realized in the fiscal years beginning on or after August 1, 2018. The effect of these changes will be immaterial.

Attribution

Major
unitholder

ሺ2,578)(Note 1)
(Note 2)
(Note 3)(Note 4)Company’s
name orperson’s
nameTokyu Land
Corporation

Location

Shibuyaku,
Tokyo

Capital andinvestment(millions ofyen)

57,551

Type ofbusinessor jobtitle

Realestatebusiness

Ratio ofvotinginterest(held)(Note 1)

Relationship
Concurrent
positions
held by
officers

Businessrelationship

Yes

Major
unitholder

10.06%

Account

Year-endbalance(thousandsof yen)Purchase of
beneficiary
17,428,000
rights of realestate in trust––

Warehousing
expense(Note 2)––

Details oftransactions

Transaction
amount(thousandsof yen)183,677

The ratio of voting interest is rounded down to the second decimal place.
Warehousing expense is the amount confirmed upon agreement between the Investment Corporation and Tokyu Land Corporation other thanacquisition cost, such as due-diligence expense, and brokerage commission, etc.
In the above amounts, transaction amount does not include consumption taxes, while the year-end balance does include consumption taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.

11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable2.

Affiliated companies and other10th Fiscal Period (From February 1, 2015 to July 31, 2015)
Not applicable
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable(Thousands of yen)
11th Fiscal Period(As of January 31, 2016)

10th Fiscal Period(As of July 31, 2015)
Deferred tax assets
Enterprise tax payable
Subtotal deferred tax assets
Deferred tax assets, net

34.15<Notes to related-party transactions>
1. Parent company, major corporate unitholders and other10th Fiscal Period (From February 1, 2015 to July 31, 2015)*1 Long-term loans payable include the current portion of long-term loans payable.
*2 Interest-rate swap transactions for which the special treatment is applied are accounted for together with the underlying hedged items. As a result,
their fair value is included in the fair value of items listed under “(3) Current portion of long-term loans payable” and “(5) Long-term loans payable”
in the section entitled “2. Fair value of financial instruments” under the “Notes to financial instruments.”<Notes to tax-effect accounting>
1. Components of deferred tax assets and liabilities

11th Fiscal Period(As of January 31, 2016)<Notes to share of profit or loss of investments accounted for under the equity method>
10th Fiscal Period (From February 1, 2015 to July 31, 2015)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have affiliated companies.

(*2)<Notes to retirement benefits>
10th Fiscal Period (As of July 31, 2015)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.
11th Fiscal Period (As of January 31, 2016)
The disclosure of relevant information is omitted since the Investment Corporation does not have a retirement benefit program.

(%)

10th Fiscal Period(As of July 31, 2015)

(*2)

ሺ505)

Significant differences between the statutory tax rate and the effective tax rate999- 14 -

61

3.

Fellow subsidiary companies and other10th Fiscal Period (From February 1, 2015 to July 31, 2015)
Attribution

Company’s
name orperson’s
name

Major
unitholder’ssubsidiary

Tokyu
Community
Corp.

Location

Capital andinvestment(millions ofyen)Line ofbusinessor jobtitle

Ratio ofvotinginterest(held)(Note 1)

Setagayaku,
Tokyo

1,653

Real
estatebusiness–

Relationship
Concurrent
positions
held by
officers

Businessrelationship

No

Major
unitholder’ssubsidiary

Details oftransactions

Transaction
amount(thousandsof yen)Account

Year-endbalance(thousandsof yen)Purchase of
beneficiaryrights of realestate intrust

2,323,000––

Details oftransactions

Transaction
amount(thousandsof yen)Account

305,067

Operatingaccounts
payable11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Attribution

Company’s
name orperson’s
name

Location

Major
unitholder’ssubsidiary

Tokyu
Housing
Lease
Corporation

Shinjukuku,
Tokyo(Note 1)
(Note 2)
(Note 3)

4.

Capital andinvestment(millions ofyen)Line ofbusinessor job
title

100

Real
estatebusiness

Ratio ofvotinginterest(held)(Note 1)

Relationship
Concurrent
positions
held by
officers

Businessrelationship

No

Major
unitholder’ssubsidiary–

Property
management
contract

Year-endbalance(thousandsof yen)54,426<Notes to investment and rental properties>
The Investment Corporation owns real estate for rental purposes (including land) in the Tokyo metropolitan area and otherregional areas. The book value, changes during the period and fair value regarding the above real estate for rental purposes are as
follows.
(Thousands of yen)
10th Fiscal Period
11th Fiscal Period(from February 1, 2015
(from August 1, 2015
to July 31, 2015)
to January 31, 2016)
Book value
Balance at beginning of
period124,618,449

148,620,014

Changes during period

24,001,565

Balance at end of
period148,620,014

ሺ418,118)

148,201,895

Fair value at end of period

167,853,000

170,697,000(Note 1)
(Note 2)

The ratio of voting interest is rounded down to the second decimal place.
In the above amounts, transaction amount does not include consumption taxes, while the year-end balance does include consumption
taxes.
Transaction terms are determined based on price negotiation in light of prevailing market prices, etc.
(Note 3)

Directors, major individual unitholders and other10th Fiscal Period (From February 1, 2015 to July 31, 2015)
Not applicable
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable

The book value excludes accumulated depreciation from acquisition cost. The book value does not include construction in progress andconstruction in progress in trust.
Among changes in the amount of real estate for rental purposes that occurred during the 10th Fiscal Period, the principal increase consisted of
the acquisition of 12 properties including COMFORIA KANDAJINBOCHO during the 10th Fiscal Period totaling ¥24,765,441 thousand, while
the principal decrease consisted of depreciation totaling ¥816,455 thousand. During the 11th Fiscal Period, the principal increase consisted of
the acquisition of 2 properties including COMFORIA AZABU EAST during the 11th fiscal period totaling ¥2,673,479 thousand, while theprincipal decrease consisted of the disposition of 2 properties including COMFORIA DAIKANYAMA during the 11th fiscal period totaling¥2,322,939thousand and depreciation of ¥821,726 thousand.
The fair value at end of period is the appraisal value or the survey value determined by outside appraisers.

Income and loss related to real estate for rental purposes, etc. for the 10th Fiscal Period (From February 1, 2015 to July 31,2015) and 11th Fiscal Period (From August 1, 2015 to January 31, 2016) are listed in “Notes to the Statements of Income.”<Notes to segment information>(Segment information)
Disclosure is omitted because the property leasing business is the Investment Corporation’s sole business, with no reportablesegment subject to disclosure.

<Notes to asset retirement obligations >10th Fiscal Period (From February 1, 2015 to July 31, 2015)
Not applicable
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
Not applicable(Related information)
10th Fiscal Period (From February 1, 2015 to July 31, 2015)
1. Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category account for over 90% of theoperating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on
the Statements of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of theamount of property, plant and equipment on the balance sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.
11th Fiscal Period (From August 1, 2015 to January 31, 2016)
1. Information about each product and service
Disclosure is omitted because net sales to external customers of a single product/service category account for over 90% of theoperating revenues on the Statements of Income.
2. Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenues on
the Statement of Income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of theamount of property, plant and equipment on the balance sheet.
3. Information about each major customer
Disclosure is omitted because there is no single external customer whose net sales accounts for 10% or more of operating
revenues on the Statements of Income.

62- 15 -- 16 -

63

<Notes to per unit information>

Net assets per unit

10th Fiscal Period(From February 1, 2015
to July 31, 2015)¥163,169

11th Fiscal Period(From August 1, 2015
to January 31, 2016)¥163,295¥4,408¥4,533

Profit per unit
(Note 1)
(Note 2)7.

(ii) Information on contract amount and fair value of derivative transactions and forward exchange contracts
Information on derivative transactions and forward exchange contracts entered into by the Investment Corporation as ofJanuary 31, 2016 is as follows.
(Thousands of yen)Contract amount (Note 1)
Fair value
Classification
Type
Maturing after 1(Note 2)year
Over-the-counter
Receive floating, pay fixed
66,640,000
38,720,000(2,578)interest-rate swap transactionstransactions
Total
66,640,000
38,720,000(2,578)

Profit per unit was calculated by dividing profit for the period by the daily weighted average number of investment units issued and outstanding.
Profit per unit after adjusting for diluted units is not included because there were no diluted investment units.
The basis for calculating profit per unit is as follows:

Profit (thousands of yen)Amount not attributable to common
unitholders (thousands of yen)
Profit attributable to common
investment units (thousands of yen)
Average number of investment units
for the period (units)

10th Fiscal Period(From February 1, 2015
to July 31, 2015)
2,086,253

11th Fiscal Period(From August 1, 2015
to January 31, 2016)
2,147,831––

2,086,253

2,147,831

473,251

473,804[Supplementary schedules](i) Supplementary schedule of investment securities
Not applicable(Note 1)
(Note 2)The contract amount of interest-rate swap transactions is based on the notional principal.
Fair value is evaluated based on the value calculated by the counterparty of the contract using market interest rate, etc. Disclosure of fairvalue is omitted for the transactions that meet the requirements for special treatment pursuant to the Accounting Standard for Financial
Instruments.

(iii) Condensed supplementary schedule of real estate properties<Notes to significant subsequent events>
Issuance of new investment units
The Investment Corporation made a resolution with regard to the issuance of new investment units at its Board of Directors’
meetings held on January 5, 2016 and January 18, 2016 as outlined below. Payments for the issuance of new investment units
through a public offering were completed on February 1, 2016, and the payments for the issuance of new investment units
through a third-party allotment were completed on February 26, 2016. As a result of these issuances, unitholders’ capitalincreased to ¥82,743,523,862 and the total number of investment units issued and outstanding totaled 513,504 units as ofFebruary 26, 2016.

Intangible
assetsIssuance of new investment units through third-party allotment
Number of investment units offered
1,900 units
Paid-in amount (issue value)¥189,400 per unit
Total paid-in amount (issue value)¥359,860,000
Payment dateFebruary 26, 2016
AllotteeMizuho Securities Co., Ltd.

Property, plant and equipment

Issuance of new investment units through public offering
Number of investment units offered
37,800 units
Issue price (offer price)¥195,828 per unit
Total issue amount (offer price)¥7,402,298,400
Paid-in amount (issue value)¥189,400 per unit
Total paid-in amount (issue value)¥7,159,320,000
Payment dateFebruary 1, 2016

(Thousands of yen)
Accumulated depreciationorBalance at end
accumulatedof current
Depreciationamortization
periodduringat end ofperiodcurrent
periodAsset type

Balance at
beginning ofcurrent period

Increaseduring period

Decreaseduring period

Buildings

666,057

1,507–

667,564

31,7158,367

635,849

Structures

5,927

–

–

5,927

661

172

5,266

431,262––431,262––431,262

64,218,363

1,125,000

728,300

64,615,063

4,551,429

765,756

60,063,634(Note)

828,659

8,335

15,357

821,638

143,891

22,417

677,746(Note)

1,039,180

43,991

1,388

1,081,784

119,444

19,137962,339(Note)

66,840

9,288

2,312

73,81523,0885,874

50,726(Note)

Land in trust

85,233,191

1,538,423

1,661,823

85,109,790––

85,109,790(Note)

Total

152,489,482

2,726,547

2,409,182

152,806,847

4,870,230

821,726

147,936,616

Leaseholdrights in trust

265,279––

265,279––

265,279

Other

23,134––

23,134

6,481

2,313

16,653

288,413––

288,413

6,481

2,313

281,932

Land
Buildings in
trust
Structures intrust
Machinery andequipment in
trust
Tools, furnitureand fixtures in
trust

Total

Net balance at
end of current
periodRemarks(Note) Increases and decreases during the 11th Fiscal Period are due primarily to the acquisition and disposition of real estate for rental purposes. The details
are as follows.
(Thousands of yen)

Property name

Increase during Decrease during
periodperiodCOMFORIA AZABU EAST

1,963,850–

COMFORIA KITASANJO

709,629–

COMFORIA DAIKANYAMA–

1,790,518

COMFORIA HARAJYUKU NORD–

532,420(iv) Supplementary schedule of other specified assets
Not applicable64- 17 -- 18 -

65

(v) Supplementary schedule of investment corporation bonds

Bond name
The Investment
Corporation 1st
unsecuredbonds

Issuance
date

Balance at
beginningof current
periodJuly 30,
2014

Increaseduringperiod3,000,000––

3,000,000

Classification(Thousands of yen)    
Balance
Decreaseat end of Coupon
duringcurrent
rate (%)
periodperiodRedemption
date

0.64000

July 30,2021

LenderUse offunds(Note 2)

Security(Note 1)
(Note 1) The bonds are subject to the pari passu clause among specified investment corporation bonds.
(Note 2) The funds are appropriated to acquire of real estate in trust and repayment of certain existing borrowings.
(Note 3) No redemptions are scheduled within five years following the balance sheet date.

(vi) Supplementary schedule of borrowings
Information on the Investment Corporation’s borrowings as of January 31, 2016 is as follows:
Classification
LenderShort-termloanspayableMizuho Bank, Ltd.
Subtotal–

280,000
280,000

280,000
280,000–

Maturity date

Repayment
methodNovember 30, Lump-sum
0.33000
2015
repayment

Use of funds(Note 3)––1,000,000

0.88240

1,000,000––

1,000,000

0.88240

1,000,000––

1,000,000

0.88240

1,000,000––

1,000,000

0.88240

1,000,000––

1,000,000

0.88240

500,000––

500,000

0.88240Development Bank of Japan Inc.

670,000––

670,000

0.60150

Mizuho Bank, Ltd.

670,000––

670,000

0.60150

670,000––

670,000

0.60150

670,000––

670,000

0.60150

670,000––

670,000

0.60150

350,000––

350,000

0.60150Development Bank of Japan Inc.

910,000––

910,000

0.90100

Mizuho Bank, Ltd.

910,000––

910,000

0.90100

910,000––

910,000

0.90100

910,000––

910,000

0.90100

910,000––

910,000

0.90100

450,000––

450,000

0.90100

380,000–

380,000–

0.33000

380,000–

380,000–

0.33000

380,000–

380,000–

0.33000

380,000–

380,000–

0.33000

180,000–

180,000–

0.33000

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Remarks

Unsecured
Unguaranteed–

The Tokyo Tomin Bank, Limited

1,000,000––

1,000,000

1.03715

Mizuho Bank, Ltd.

3,570,000––

3,570,000

1.03715

Mizuho Bank, Ltd.

3,570,000––

3,570,000

1.03715

3,570,000––

3,570,000

1.03715

1,785,000––

1,785,000

1.03715

Development Bank of Japan Inc.

1,090,000––

1,090,000

1.41200

Mizuho Bank, Ltd.

1,090,000––

1,090,000

1.41200

Shinkin Central Bank

750,000––

750,000

0.30820

1,090,000––

1,090,000

1.41200

The Norinchukin Bank

750,000––

750,000

0.30820

The Bank of Fukuoka, Ltd.

750,000––

750,000

0.30820Development Bank of Japan Inc.

600,000––

600,000

0.69250

600,000––

600,000

0.69250

600,000––

600,000

0.69250

600,000––

600,000

0.69250

600,000––

600,000

0.69250

300,000––

300,000

0.69250Development Bank of Japan Inc.

620,000––

620,000

0.79875

Mizuho Bank, Ltd.

620,000––

620,000

0.79875

620,000––

620,000

0.79875

620,000––

620,000

0.79875

620,000––

620,000

0.79875

310,000––

310,000

0.79875

Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,
Ltd.
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

3,570,000––

3,570,000

1.34500

3,570,000––

3,570,000

1.33500

1,785,000––

1,785,000

1.03715

March 23,
2016

March 23,
2019

Lump-sum
repayment

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Long-term
loans
payable(Note 1)

Lump-sum
1.41200 September 29,
repayment
2017
1.41200

Unsecured
Unguaranteed

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

1,090,000––

1,090,000

1,090,000––

1,090,000

550,000––

550,000

1.41200

Mizuho Bank, Ltd.

The Tokyo Tomin Bank, Limited

300,000––

300,000

1.41200

Mitsubishi UFJ Trust and Banking
Corporation

2,000,000––

2,000,000

0.79500

Mizuho Bank, Ltd.

1,350,000

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation––

1,350,000

0.67075

The Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

1,350,000––

1,350,000

0.67075

1,350,000––

1,350,000

0.67075

600,000––

600,000

0.67075

Development Bank of Japan Inc.

1,350,000––

1,350,000

0.90487

Mizuho Trust & Banking Co., Ltd.

2,000,000––

2,000,000

0.37990

August 31,
2018

March 30,
2018

Lump-sum
repayment

Lump-sum
repayment

September 30, Lump-sum
2019
repayment(Note 3)(Note 3)(Note 3)(Note 3)

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

The Norinchukin Bank

1,500,000––

1,500,000

0.37990

The Bank of Fukuoka, Ltd.

1,000,000––

1,000,000

0.37990

The 77 Bank, Ltd.

500,000––

500,000

0.37990

Development Bank of Japan Inc.

620,000––

620,000

1.04200

The Daishi Bank, Ltd.

500,000––

500,000

0.37990

Mizuho Bank, Ltd.

620,000––

620,000

1.04200

Development Bank of Japan Inc.

1,000,000––

1,000,000

0.60700

620,000––

620,000

1.04200

Mizuho Bank, Ltd.

1,000,000––

1,000,000

0.60700

620,000––

620,000

1.04200

1,000,000––

1,000,000

0.60700

620,000––

620,000

1.04200

1,000,000––

1,000,000

0.60700

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

310,000––

310,000

1.04200

1,000,000––

1,000,000

0.60700

500,000––

500,000

0.60700

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

66–

Averageinterest rate(%)
(Note 2)

1,000,000

Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Development Bank of Japan Inc.

Long-term
loans
payable(Note 1)

Balance atBalance at end
Increase during
Decrease
beginning ofof current
periodduring period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Averageinterest rate(%)
(Note 2)Development Bank of Japan Inc.

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation

Unsecured

Balance atBalance at end
Increase during
Decrease
beginning ofof current
periodduring period
current period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

- 19 -

January 31,
2017

January 31,
2019

Lump-sum
repayment

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

Unsecured
Unguaranteed

Unsecured
Unguaranteed

Maturity date

Repayment
methodUse of funds

Remarks

January 31,
2021

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

June 30, 2020

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

June 30, 2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

November 30, Lump-sum
2015
repayment(Note 3)

Unsecured
Unguaranteed

March 30,
2018

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

January 31,
2022

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

January 31,
2023

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed

January 31,
2025

Lump-sum
repayment(Note 3)

Unsecured
Unguaranteed- 20 67

Balance atBalance at end
Increase during
Decrease
beginning ofof current
during period
periodcurrent period
period(thousands of (thousands of(thousands of(thousands of
yen)
yen)
yen)
yen)

Classification
LenderMizuho Bank, Ltd.

Long-term
loans
payable(Note 1)

Sumitomo Mitsui Trust Bank,
LimitedThe Bank of Tokyo-Mitsubishi UFJ,Ltd.
Mitsubishi UFJ Trust and Banking
Corporation
Sumitomo Mitsui Banking
Corporation
Subtotal
Total

Averageinterest rate(%)
(Note 2)–440,000–

440,000

0.33000–

440,000–

440,000

0.33000–

440,000–

440,000

0.33000–

440,000–

440,000

0.33000–

220,000–

220,000

0.33000

75,990,000

1,980,000

1,700,000

76,270,000

75,990,000

2,260,000

1,980,000

76,270,000

Maturity date

Repayment
methodNovember 30, Lump-sum
2016
repayment

Use of funds

Remarks(Note 3)

Unsecured
Unguaranteed(Note 1)
(Note 2)Long-term loans payable include the current portion of long-term loans payable.
The average interest rate is the interest rate for each loan contract rounded to the nearest fifth decimal place. As for the borrowings hedged byinterest-rate swap transactions in order to avoid interest rate fluctuation risk, the interest rates reflect the effect of interest-rate swap transactions.
(Note 3) The use of funds is mainly for the acquisition of real estate in trust and repayment of existing borrowings, etc.
(Note 4) The total amount of repayment of long-term loans payable for each year during the five years following the balance sheet date is as shown
below.
(Thousands of yen)Due in 1 year or Due after 1 year Due after 2 years Due after 3 years Due after 4 years
Due after 5 years
lessto 2 years
to 3 years
to 4 years
to 5 years
17,405,000

6,300,000

14,400,000

13,845,000

9,200,000

15,120,000- 21 6869