KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
Translation of Japanese Original
FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED JULY 31, 2020(REIT) ( February 1, 2020 to July 31, 2020)
September 14, 2020
Kenedix Residential Next Investment Corporation is listed on the Tokyo Stock Exchange with the securities code number
3278. | |||||||||||||
(URL https://www.kdr-reit.com/en/) | |||||||||||||
Representative: | Keisuke Sato, Executive Director | ||||||||||||
Asset Management Company:Kenedix Real Estate Fund Management, Inc. | |||||||||||||
Representative: | Masahiko Tajima, CEO and President | ||||||||||||
Inquiries: | Shin Yamamoto, Head of Planning Division, Residential REIT Department | ||||||||||||
TEL+81-3-5157-6011 | |||||||||||||
Planned submission of semiannual securities report: October 29, 2020 | |||||||||||||
Planned start of distribution payments: | October 12, 2020 | ||||||||||||
Preparing presentation material: | Yes | ||||||||||||
Hold a financial brief meeting: | No (Cancelled due to preventing the spread of coronavirus infection. | ||||||||||||
Scheduled financial results presentation webcast (Japanese | |||||||||||||
version) . ) | |||||||||||||
(Amounts are rounded down to the nearest ¥million) | |||||||||||||
1. PERFORMANCE FOR THE FISCAL PERIOD ENDED JULY 31, 2020 (17TH FISCAL PERIOD) | |||||||||||||
(1) Business Results | (Percentages show period-on-period changes) | ||||||||||||
Operating Revenues | Operating Income | Ordinary Income | Net Income | ||||||||||
(Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | ||||||||||
The 17th fiscal period ended July 31, 2020 | 8,374 | (3.8%) | 4,469 | (4.9%) | 3,808 | (5.4%) | 3,808 | (5.4%) | |||||
The 16th fiscal period ended January 31, 2020 | 8,066 | (-0.9%) | 4,260 | (-2.3%) | 3,614 | (-3.4%) | 3,613 | (-3.4%) | |||||
Net Income per Unit | Return on | Ordinary Income | Ordinary Income to | ||||||||||
(Yen) | Unitholders' Equity | to Total Assets | Operating Revenues | ||||||||||
The 17th fiscal period ended July 31, 2020 | 4,028 | 3.1% | 1.4% | 45.5% | |||||||||
The 16th fiscal period ended January 31, 2020 | 3,981 | 3.0% | 1.4% | 44.8% | |||||||||
(2) Distribution
Distribution per | Total Distributions | Total Distributions | |||||||||||||||||
Unit (Excluding | Distribution in | Distribution Ratio | |||||||||||||||||
(Excluding Excess | in Excess of | ||||||||||||||||||
Excess of | Excess of Earnings | Payout Ratio | to Unitholders' | ||||||||||||||||
of Earnings) | Earnings | ||||||||||||||||||
Earnings ) | per Unit (Yen) | Equity | |||||||||||||||||
(Millions of Yen) | (Millions of Yen) | ||||||||||||||||||
(Yen) | |||||||||||||||||||
The 17th fiscal period ended | 4,065 | 3,866 | - | - | 101.5% | 3.1% | |||||||||||||
July 31, 2020 | |||||||||||||||||||
The 16th fiscal period ended | 4,064 | 3,687 | - | - | 102.1% | 3.1% | |||||||||||||
January 31, 2020 | |||||||||||||||||||
(Note 1) Total Distributions for the 16th and 17th fiscal periods is not the same amount as Net Income because of adding reversal of reserve for temporary difference adjustments and a part of Retained earnings brought forward.
(Note 2) Due to issuance of new investment units in the 17th period, Payout Ratio for each fiscal period is calculated as follows. Payout Ratio = Total Distributions (Excluding Excess of Earnings) /Net income × 100
This is an English-language translation of the key financials in the original Japanese announcement on our Web site released on September 14, 2020. However, no assurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(3) Financial Position
Total Assets | Unitholders' Equity | Unitholders' Equity to Total | Unitholders' Equity per Share | |
(Millions of Yen) | (Millions of Yen) | Assets | of Common Stock (Yen) | |
As of July 31, 2020 | 272,960 | 127,457 | 46.7% | 133,988 |
As of January 31, 2020 | 256,665 | 118,500 | 46.2% | 130,584 |
(4) Cash Flow Position
Cash Flow from Operating | Cash Flow from Investing | Cash Flow from Financing | Cash and Cash Equivalents at | ||||||
Activities | Activities | Activities | the End of the Period | ||||||
(Millions of Yen) | (Millions of Yen) | (Millions of Yen) | (Millions of Yen) | ||||||
The 17th fiscal period ended | 5,565 | -15,828 | 12,481 | 23,384 | |||||
July 31, 2020 | |||||||||
The 16th fiscal period ended | 5,685 | -2,764 | -1,955 | 21,165 | |||||
January 31, 2020 | |||||||||
2. FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING JANUARY 31,2021 (August 1, 2020 to January 31, 2021) AND JULY 31, 2021 (February 1, 2021 to July 31, 2021)
(Percentages show period-on-period changes)
Operating Revenues | Operating Income | Ordinary Income | Net Income | Distribution per | Distribution in | ||||||||||||
Unit Excluding | Excess of Earnings | ||||||||||||||||
(Millions of Yen) | (Millions of Yen)) | (Millions of Yen) | (Millions of Yen) | ||||||||||||||
Excess of Earning | per Unit | ||||||||||||||||
The 18th fiscal period | 8,369 | 4,348 | 3,649 | 3,649 | 4,066 | - | |||||||||||
ending January 31, 2021 | (-0.1%) | (-2.7%) | (-4.2%) | (-4.2%) | |||||||||||||
The 19th fiscal period | 8,477 | 4,413 | 3,732 | 3,731 | 4,067 | - | |||||||||||
ending July 31, 2021 | (1.3%) | (1.5%) | (2.3%) | (2.3%) | |||||||||||||
(Reference) Estimated net income per unit (Estimated Net Income / Estimated weighted average number of units) | |||||||||||||||||
The 18th fiscal period ending January 31, 2021 | ¥3,836 The 19th fiscal period ending July 31, 2021 ¥3,923 |
Total Distributions for the 18th and 19th fiscal periods are not the same amount as Net Income because of adding reversal of reserve for temporary difference adjustments and a part of Retained earnings brought forward.
(Note) Distribution per unit is calculated based on the number of investment units issued and outstanding totaled 951,258 as of today.
3. OTHER
- Changes in Accounting Policies/Changes in Accounting Estimate/Retrospective Restatement
- Changes concerning accounting policy accompanying amendments to accounting standards: No
- Changes other than (a): No
- Changes in accounting estimate: No
- Retrospective restatement: No
- Number of Investment Unit Issued and Outstanding (including treasury units)
- Number of investment units issued and outstanding at the end of the period (including treasury units)
As of January 31, 2020: 907,458 units | As of July 31, 2020: 951,258 units |
(b) Number of treasury units at the end of the period | |
As of January 31, 2020: 0 units | As of July 31, 2020: 0 units |
[Provisional Translation Only]
English translation of the original Japanese document is provided solely for information purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.
This is an English-language translation of the key financials in the original Japanese announcement on our Web site released on September 14, 2020. However, no assurance or warranties are given with respect to the accuracy or completeness of this English-language translation. The Japanese original shall prevail in the case of discrepancies between this translation and the Japanese original.
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
1. Financial Statements
(1) Balance Sheets
(in thousands of yen) | |||
16th Fiscal Period | 17th Fiscal Period | ||
(As of January 31, 2020) | (As of July 31, 2020) | ||
Assets | |||
Current assets | |||
Cash and deposits | 10,978,807 | 13,212,337 | |
Cash and deposits in trust | 10,187,104 | 10,171,729 | |
Operating accounts receivable | 37,373 | 31,793 | |
Prepaid expenses | 8,640 | 14,671 | |
Consumption taxes receivable | - | 35,339 | |
Other | 589 | 9,032 | |
Total current assets | 21,212,515 | 23,474,905 | |
Noncurrent assets | |||
Property, plant and equipment | |||
Land | 1,798,041 | 1,798,041 | |
Buildings in trust | 100,799,661 | 104,694,136 | |
Accumulated depreciation | -11,698,397 | -13,024,172 | |
Buildings in trust, net | 89,101,264 | 91,669,964 | |
Structures in trust | 1,089,011 | 1,127,421 | |
Accumulated depreciation | -223,450 | -252,221 | |
Structures in trust, net | 865,561 | 875,199 | |
Machinery and equipment in trust | 1,448,282 | 1,468,718 | |
Accumulated depreciation | -353,874 | -386,760 | |
Machinery and equipment in trust, net | 1,094,407 | 1,081,958 | |
Tools, furniture and fixtures in trust | 570,610 | 693,103 | |
Accumulated depreciation | -81,223 | -99,834 | |
Tools, furniture and fixtures in trust, net | 489,387 | 593,268 | |
Land in trust | 139,731,924 | 150,985,849 | |
Total property, plant and equipment, net | 233,080,586 | 247,004,281 | |
Intangible assets | |||
Leasehold right in trust | 1,227,187 | 1,225,462 | |
Other | 4,787 | 4,010 | |
Total intangible assets | 1,231,974 | 1,229,473 | |
Investments and other assets | |||
Lease and guarantee deposits | 89,097 | 89,210 | |
Long-term prepaid expenses | 945,375 | 1,014,382 | |
Other | 338 | 19,719 | |
Total investments and other assets | 1,034,810 | 1,123,311 | |
Total noncurrent assets | 235,347,371 | 249,357,066 | |
Deferred assets | |||
Investment corporation bond issuance costs | 49,303 | 45,185 | |
Investment unit issuance costs | 56,620 | 83,246 | |
Total deferred assets | 105,924 | 128,431 | |
Total assets | 256,665,810 | 272,960,403 | |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(in thousands of yen) | |||||
16th Fiscal Period | 17th Fiscal Period | ||||
(As of January 31, 2020) | (As of July 31, 2020) | ||||
Liabilities | |||||
Current liabilities | |||||
Operating accounts payable | 595,433 | 626,063 | |||
Short-term loans payable | 3,300,000 | 2,800,000 | |||
Current portion of long-term loans payable | 10,100,000 | 10,850,000 | |||
Accounts payable-other | 294,697 | 353,107 | |||
Accrued expenses | 35,152 | 38,676 | |||
Income taxes payable | 605 | 605 | |||
Accrued consumption taxes | 53,827 | 10,812 | |||
Advances received | 1,173,813 | 1,179,888 | |||
Deposits received | 59,879 | 82,406 | |||
Other | 4,090 | 1,704 | |||
Total current liabilities | 15,617,497 | 15,943,264 | |||
Noncurrent liabilities | |||||
Investment corporation bonds | 7,000,000 | 7,000,000 | |||
Long-term loans payable | 107,250,000 | 114,400,000 | |||
Tenant leasehold and security deposits in trust | 3,059,671 | 3,132,139 | |||
Tenant lump sum deposits in trust | 4,689,541 | 4,485,740 | |||
Asset retirement obligations | 67,522 | 67,707 | |||
Other | 481,213 | 473,947 | |||
Total noncurrent liabilities | 122,547,949 | 129,559,535 | |||
Total liabilities | 138,165,447 | 145,502,799 | |||
Net assets | |||||
Unitholders' equity | |||||
Unitholders' capital | 99,731,514 | 108,550,294 | |||
Surplus | |||||
Capital surplus | 13,187,100 | 13,187,100 | |||
Voluntary retained earnings | |||||
Reserve for temporary difference adjustments | *2 | 1,960,000 | *2 | 1,940,000 | |
Total voluntary retained earnings | 1,960,000 | 1,940,000 | |||
Unappropriated retained earnings (undisposed loss) | 4,072,277 | 4,212,398 | |||
Total surplus | |||||
19,219,377 | 19,339,498 | ||||
Total unitholders' equity | 118,950,891 | 127,889,792 | |||
Valuation and translation adjustments | |||||
Deferred gains or losses on hedges | -450,527 | -432,188 | |||
Total valuation and translation adjustments | -450,527 | -432,188 | |||
Total net assets | |||||
*1 | 118,500,363 | *1 | 127,457,603 | ||
Total liabilities and net assets | 256,665,810 | 272,960,403 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(2) Statements of Income and Retained Earnings
(in thousands of yen)
16th Fiscal Period | 17th Fiscal Period | ||||
August 1, 2019 to | February 1, 2020 to | ||||
January 31, 2020 | July 31, 2020 | ||||
Operating revenues | |||||
Rent revenue-real estate | *1 | 7,472,039 | *1 | 7,704,582 | |
Other lease business revenue | *1 | 555,566 | *1 | 585,197 | |
Gain on sale of real estate property | *2 | 39,013 | *2 | 84,437 | |
Total operating revenues | 8,066,618 | 8,374,217 | |||
Operating expenses | |||||
Expenses related to rent business | *1 | 2,911,303 | *1 | 3,005,600 | |
Asset management fees | 576,676 | 604,986 | |||
Asset custody fees | 13,836 | 13,908 | |||
Administrative service fees | 46,625 | 46,472 | |||
Directors' compensation | 8,100 | 8,100 | |||
Other operating expenses | 249,665 | 225,746 | |||
Total operating expenses | 3,806,207 | 3,904,813 | |||
Operating income | 4,260,411 | 4,469,404 | |||
Non-operating income | |||||
Interest income | 41 | 41 | |||
Dividends and redemption-prescription | 1,394 | 1,240 | |||
Total non-operating income | 1,435 | 1,282 | |||
Non-operating expenses | |||||
Interest expenses | 498,295 | 498,083 | |||
Interest expenses on investment corporation bonds | 15,857 | 21,322 | |||
Borrowing expenses | 112,332 | 115,280 | |||
Amortization of investment corporation bond issuance costs | 3,534 | 4,118 | |||
Amortization of investment unit issuance costs | 16,324 | 23,245 | |||
Other | 1,500 | - | |||
Total non-operating expenses | 647,845 | 662,051 | |||
Ordinary income | 3,614,002 | 3,808,635 | |||
Income before income taxes | 3,614,002 | 3,808,635 | |||
Income taxes | |||||
Current | 605 | 605 | |||
Total income taxes | 605 | 605 | |||
Net income | 3,613,397 | 3,808,030 | |||
Retained earnings brought forward | 458,879 | 404,367 | |||
Unappropriated retained earnings (undisposed loss) | 4,072,277 | 4,212,398 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(3) Statements of Changes in Net Assets
16th Fiscal Period | August 1, 2019 to January 31, 2020 | (in thousands of yen) | ||||||
Unitholders' equity | ||||||||
Surplus | ||||||||
Voluntary reserve | ||||||||
Unitholders' | Reserve for | Total | Unappropriated | Total | Total | |||
Capital surplus | temporary | retained earnings | unitholders' | |||||
capital | voluntary | surplus | ||||||
difference | (undisposed loss) | equity | ||||||
reserve | ||||||||
adjustments | ||||||||
Balance at the beginning of current period | 99,731,514 | 13,187,100 | 1,980,000 | 1,980,000 | 4,125,881 | 19,292,981 | 119,024,495 | |
Changes of items during the period | ||||||||
Reversal of reserve for temporary | -20,000 | -20,000 | 20,000 | - | - | |||
difference adjustments | ||||||||
Dividends from surplus | -3,687,001 | -3,687,001 | -3,687,001 | |||||
Net income | 3,613,397 | 3,613,397 | 3,613,397 | |||||
Net changes of items other than | ||||||||
unitholders' equity | ||||||||
Total changes of items during the period | - | - | -20,000 | -20,000 | -53,604 | -73,604 | -73,604 | |
Balance at the end of current period | * 1 99,731,514 | 13,187,100 | 1,960,000 | 1,960,000 | 4,072,277 | 19,219,377 | 118,950,891 | |
Valuation and translation | ||||||||
adjustments | ||||||||
Deferred gains | Total valuation | Total net | ||||||
assets | ||||||||
and losses on | and translation | |||||||
hedges | adjustments | |||||||
Balance at the beginning of current period | -483,092 | -483,092 | 118,541,403 | |||||
Changes of items during the period | ||||||||
Provision for reserve for temporary | - | |||||||
difference adjustments | ||||||||
Dividends from surplus | -3,687,001 | |||||||
Net income | 3,613,397 | |||||||
Net changes of items other than | 32,564 | 32,564 | 32,564 | |||||
unitholders' equity | ||||||||
Total changes of items during the period | 32,564 | 32,564 | -41,039 | |||||
Balance at the end of current period | -450,527 | -450,527 | 118,500,363 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
17th Fiscal Period | February 1, 2020 to July 31, 2020 | (in thousands of yen) | |||||||
Unitholders' equity | |||||||||
Surplus | |||||||||
Voluntary reserve | |||||||||
Unappropriated | Total | ||||||||
Unitholders' | Reserve for | Total | |||||||
Capital surplus | temporary | Total voluntary | retained earnings | unitholders' | |||||
capital | surplus | ||||||||
difference | reserve | (undisposed loss) | equity | ||||||
adjustments | |||||||||
Balance at the beginning of current period | 99,731,514 | 13,187,100 | 1,960,000 | 1,960,000 | 4,072,277 | 19,219,377 | 118,950,891 | ||
Changes of items during the period | |||||||||
Issuance of new investment units | 8,818,779 | 8,818,779 | |||||||
Reversal of reserve for temporary | -20,000 | -20,000 | 20,000 | - | - | ||||
difference adjustments | |||||||||
Dividends from surplus | -3,687,909 | -3,687,909 | -3,687,909 | ||||||
Net income | 3,808,030 | 3,808,030 | 3,808,030 | ||||||
Net changes of items other than | |||||||||
unitholders' equity | |||||||||
Total changes of items during the period | 8,818,779 | - | -20,000 | -20,000 | 140,121 | 120,121 | 8,938,900 | ||
Balance at the end of current period | * 1 108,550,294 | 13,187,100 | 1,940,000 | 1,940,000 | 4,212,398 | 19,339,498 | 127,889,792 | ||
Valuation and translation | |||||||||
adjustments | |||||||||
Deferred gains | Total valuation | Total net | |||||||
assets | |||||||||
and losses on | and translation | ||||||||
hedges | adjustments | ||||||||
Balance at the beginning of current period | -450,527 | -450,527 | 118,500,363 | ||||||
Changes of items during the period | |||||||||
Issuance of new investment units | 8,818,779 | ||||||||
Provision for reserve for temporary | - | ||||||||
difference adjustments | |||||||||
Dividends from surplus | -3,687,909 | ||||||||
Net income | 3,808,030 | ||||||||
Net changes of items other than | 18,339 | 18,339 | 18,339 | ||||||
unitholders' equity | |||||||||
Total changes of items during the period | 18,339 | 18,339 | 8,957,239 | ||||||
Balance at the end of current period | -432,188 | -432,188 | 127,457,603 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(4) Distributions
16th Fiscal Period | 17th Fiscal Period | |
(From August 1, 2019 to January 31, 2020) | (From February 1, 2020 to July 31, 2020) | |
I. Retained earnings at the end of period | ¥4,072,277,167 | ¥4,212,398,326 |
II. Revesal of voluntary reserve | ||
Reversal of reserve for temporary | ¥20,000,000 | ¥20,000,000 |
difference adjustments *1 | ||
III. Total distributions | ¥3,687,909,312 | ¥3,866,863,770 |
Distribution per unit | ¥4,064 | ¥4,065 |
Ⅳ. Retained earnings brought forward to | ¥404,367,855 | ¥365,534,556 |
the next period | ||
Method of calculating distribution amount | In accordance with the policy described in Article 38-1 of | In accordance with the policy described in Article 38-1 of |
its Articles of Incorporation, the Investment Corporation | its Articles of Incorporation, the Investment Corporation | |
determines that the amount of distribution shall exceed the | determines that the amount of distribution shall exceed the | |
amount equivalent to 90% of its distributable profit as | amount equivalent to 90% of its distributable profit as | |
stipulated in Article 67-15 of the Special Taxation | stipulated in Article 67-15 of the Special Taxation | |
Measures Law, and shall not exceed its accounting profits | Measures Law, and shall not exceed its accounting profits | |
as the maximum amount. Following this policy, the | as the maximum amount. Following this policy, the | |
Investment Corporation has decided that it shall distribute | Investment Corporation has decided that it shall distribute | |
¥3,687,909,312, which is the amount of ¥3,613,397,493 in | ¥3,866,863,770, which is the amount of ¥3,808,030,471 | |
net income and ¥54,511,819 from retained earnings | in net income and ¥38,833,299 from retained earnings | |
brought forward and reversal of reserve for temporary | brought forward and reversal of reserve for temporary | |
difference adjustments, as the distribution of earnings. | difference adjustments, as the distribution of earnings. | |
Procedures for the distribution of amounts exceeding | Procedures for the distribution of amounts exceeding | |
distributable income are outlined in Article 38-2 of the | distributable income are outlined in Article 38-2 of the | |
Investment Corporation's Articles of Incorporation. In the | Investment Corporation's Articles of Incorporation. In the | |
16th fiscal period, the Investment Corporation has | 17th fiscal period, the Investment Corporation has decided | |
decided not to distribute cash in excess of distributable | not to distribute cash in excess of distributable profit. | |
profit. | ||
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(5) Statements of Cash Flows
(in thousands of yen) | |||||
16th Fiscal Period | 17th Fiscal Period | ||||
August 1, 2019 to | February 1, 2020 to | ||||
January 31, 2020 | July 31, 2020 | ||||
Net cash provided by (used in) operating activities | |||||
Income before income taxes | 3,614,002 | 3,808,635 | |||
Depreciation and amortization | 1,429,641 | 1,467,881 | |||
Amortization of investment corporation bond issuance expenses | 3,534 | 4,118 | |||
Amortization of investment unit issuance costs | 16,324 | 23,245 | |||
Interest income | -41 | -41 | |||
Interest expenses | 514,152 | 519,406 | |||
Decrease (increase) in operating accounts receivable | -1,368 | 5,580 | |||
Decrease (increase) in consumption taxes refund receivable | - | -35,339 | |||
Decrease (increase) in prepaid expenses | 4,175 | -6,031 | |||
Increase (decrease) in operating accounts payable | 82,398 | -112,093 | |||
Increase (decrease) in accounts payable-other | -9,042 | 58,913 | |||
Increase (decrease) in accrued consumption taxes | 32,352 | -43,015 | |||
Increase (decrease) in advances received | 25,159 | 6,075 | |||
Decrease (increase) in long-term prepaid expenses | 69,352 | -69,007 | |||
Decrease in net property, plant and equipment held in trust due to sale | 420,922 | 451,169 | |||
Other, net | 4,194 | 12,738 | |||
Subtotal | 6,205,759 | 6,092,236 | |||
Interest income received | 41 | 41 | |||
Interest expenses paid | -519,985 | -526,470 | |||
Income taxes (paid) refund | 135 | -604 | |||
Net cash provided by (used in) operating activities | 5,685,950 | 5,565,201 | |||
Net cash provided by (used in) investing activities | |||||
Purchase of property, plant and equipment in trust | -2,922,615 | -15,697,335 | |||
Proceeds from investment securities | 2,276 | - | |||
Payments of lease and guarantee deposits | -72 | -112 | |||
Proceeds from lease and guarantee deposits | 72 | - | |||
Repayments of tenant leasehold and security deposits in trust | -160,351 | -134,722 | |||
Proceeds from tenant leasehold and security deposits in trust | 120,380 | 207,190 | |||
Repayments of tenant lump sum deposits in trust | -72,386 | -364,510 | |||
Proceeds from tenant lump sum deposits in trust | 268,174 | 160,709 | |||
Net cash provided by (used in) investing activities | -2,764,521 | -15,828,780 | |||
Net cash provided by (used in) financing activities | |||||
Increase in short-term loans payable | 800,000 | 2,000,000 | |||
Decrease in short-term loans payable | - | -2,500,000 | |||
Proceeds from long-term loans payable | 6,150,000 | 13,900,000 | |||
Repayments of long-term loans payable | -7,200,000 | -6,000,000 | |||
Proceeds from issuance of investment corporation bond | 1,982,489 | - | |||
Proceeds from issuance of investment units | - | 8,768,907 | |||
Dividends paid | -3,687,673 | -3,687,172 | |||
Net cash provided by (used in) financing activities | -1,955,184 | 12,481,735 | |||
Net increase (decrease) in cash and cash equivalents | 966,243 | 2,218,156 | |||
Cash and cash equivalents at the beginning of period | 20,199,667 | 21,165,911 | |||
Cash and cash equivalents at the end of period | *1 | 21,165,911 | *1 | 23,384,067 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(6) Notes to the Going Concern
Not applicable
(7) Important Accounting Standards
1. Depreciation of fixed assets | (1) Property, plant and equipment (includes trust assets) |
The straight-line method is applied. | |
Useful lives of the assets ranging are as follows: | |
Buildings: 2 to 69 years | |
Structures: 3 to 65 years | |
Machinery and equipment: 8 to 40 years | |
Tools, furniture and fixtures: 2 to 30 years | |
(2) Intangible assets(includes trust assets) | |
The straight-line method is applied. | |
Land leasehold: Fixed term land leaseholds is amortized over a contractual period under the straight-line method. | |
(3) Long-term prepaid expenses | |
The straight-line method is applied. | |
2. Accounting policies for | (1) Unit issuance costs |
deferred assets | Unit issuance costs are amortized over a period of 3 years under the straight-line method. |
(2) Investment corporation bond issuance costs | |
Bond issuance costs are amortized by applying the straight-line method for the entire redemption period. | |
3. Accounting standards for | Property-related taxes including property taxes, city planning taxes and depreciable property taxes are imposed on |
revenues and expenses | properties on a calendar year basis. These taxes are generally charged to operating expenses for the period, for the portion |
of such taxes corresponding to said period. Under Japanese tax regulations, the seller of the property is liable for these taxes | |
on the property from the date of disposal to the end of the calendar year in which the property is disposed. The seller, | |
however, is reimbursed by the purchaser for these accrued property-related tax liabilities. | |
When the Investment Corporation purchases properties, it typically allocates the portion of the property-related taxes | |
related to the period following the purchase date of each property through the end of the calendar year. The amounts of | |
those allocated portions of the property-related taxes are capitalized as part of the acquisition costs of the related | |
properties. Capitalized property-related taxes amounted to ¥31,734 thousand and ¥1,263 thousand as of July 31, 2020 and | |
January 31, 2020, respectively. | |
4. Accounting for hedges | (1) Hedge accounting method |
The deferred hedge method is applied. However, the special treatment is applied for the interest-rate swap agreements | |
that meet the criteria. | |
(2) Hedging instruments and risks hedged | |
Hedge instruments | |
The Investment Corporation enters into interest-rate swap transactions. | |
Risks hedged | |
Interest rates on debt. | |
(3) Hedging policy | |
The Investment Corporation enters into derivative transactions based on its risk management policies with the | |
objective of hedging risks in accordance with its Articles of Incorporation. | |
(4) Method of evaluating the effectiveness of hedging | |
As for the method of assessment of the effectiveness of the hedge in the period from the inception of the hedge to the | |
time of judgment of its effectiveness, the cumulative changes in cash flow of the hedged items and hedging instruments | |
are compared and a judgment is made based on changed amount, etc. However, an assessment of the effectiveness of | |
hedging activities is omitted in the case of interest rate swaps that meet the requirements for special treatment. | |
5. The scope of cash and cash | Cash and cash equivalents consist of cash on hand, deposits placed with banks and short-term investments which are highly |
equivalents on statements of | liquid, readily convertible to cash and with insignificant risk of market value fluctuation, with maturities of three months or |
cash flows | less from the date of purchase. |
6. Other significant accounting | (1) Accounting method for trust beneficiary interests in real estate and other assets |
policies utilized in the | The assets and liabilities as well as revenues and expenses of financial assets held in the form of trust beneficiary |
preparation of financial | interests in real estate and other assets are recorded in full in the Investment Corporation's balance sheets and |
statements | statements of income. |
Important line items included in accounting for financial assets and liabilities in the Investment Corporation's balance | |
sheet are as follows: | |
1. Cash and deposits in trust | |
2. Buildings in trust, structures in trust, machinery and equipment in trust, tools, furniture and fixtures in trust, land | |
in trust, leasehold right in trust | |
3. Tenant leasehold and security deposits in trust, tenant lump sum deposits in trust | |
(2) Accounting method for consumption tax | |
Consumption taxes are separately recorded. Non-deductible consumption taxes applicable to the acquisition of assets | |
are included in the cost of acquisition for each asset. | |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Accounting standards issued but not yet effective)
- "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued on March 31, 2020)
- "Implementation Guidance on Accounting Standard for Revenue Recognition" (ASBJ Guidance No. 30 issued on March 31, 2020)
(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States have jointly developed comprehensive accounting standards for revenue recognition and issued "Revenue from Contracts with Customers" (IFRS 15 (IASB) and Topic 606 (FASB)) in May 2014. Given the situation where IFRS 15 will be applied from fiscal years beginning on or after January 1, 2018 and that Topic 606 will be applied from fiscal years beginning after December 15, 2017, the ASBJ has developed comprehensive accounting standards for revenue recognition and issued them together with the implementation guidance.
The basic policy of the ASBJ when it developed the accounting standards for revenue recognition was to specify the accounting standards, incorporating the basic principles of IFRS 15 as a starting point, from the perspective of comparability between financial statements, which is one of the benefits of maintaining compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which consideration should be given, such as practices that have been conducted thus far in Japan, alternative treatments will be added to the extent to which comparability is not impaired.
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending January 31, 2022.
(3) Impact of applying the accounting standards
The impact of applying "Accounting Standard for Revenue Recognition" and its guidance on The financial statements is currently under evaluation.
- "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30 issued on July 4, 2019)
- "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31 issued on July 4, 2019)
- "Implementation Guidance on Disclosures about Fair Value of Financial Instruments" (ASBJ Guidance No. 19 issued on March 31, 2020)
(1) Overview
The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13 "Fair Value Measurement" (IASB) and Topic 820 "Fair Value Measurement" (FASB)). The ASBJ repeatedly considered the guidance regarding fair value of financial instruments and disclosure in order to improve the comparability with such international accounting standards, and issued "Accounting Standard for Fair Value Measurement" and "Implementation Guidance on Accounting Standard for Fair Value Measurement."
(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending January 31, 2022.
(3) Impact of applying the accounting standards
The impact of applying the "Accounting Standard for Fair Value Measurement" and its guidance on The financial statements is currently under evaluation.
・"Accounting Standard for Disclosure of Accounting Estimates" (ASBJ Statement No. 31 issued on March 31, 2020)
(1) Overview
Paragraph 125 of International Accounting Standard 1 (IAS 1), "Presentation of Financial Statements," (issued by the IASB in 2003) requires disclosure of information about the "assumptions the entity makes about the future, and other major sources of estimation uncertainty." In this regard, there has been a request that the major sources of estimation uncertainty should be disclosed in the notes to financial statements under Japanese GAAP to provide useful information to users of financial statements. In response to this request, the ASBJ developed and issued "Accounting Standard for Disclosure of Accounting Estimates."
(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending July 31, 2021.
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
・"Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections" (ASBJ Statement No. 24 issued on March 31, 2020)
(1) Overview
The ASBJ's Standards Advisory Council recommended that the ASBJ consider enhancing disclosures for notes relating to "accounting policies and methods adopted in the cases where the relevant accounting standards were not clear." In response to such recommendations, the ASBJ issued the revised "Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections."
(2) Scheduled date of application
The accounting standard will be applied from the end of the fiscal period ending July 31, 2021.
(8) Notes to the Financial Statements
(Notes to the Balance Sheets)
- 1. Minimum unitholders' equity pursuant to Article 67-4 of the Law Concerning Investment Trusts and Investment Corporations Law (in thousands of yen)
As of January 31, 2020 | As of July 31, 2020 | |||||||||
50,000 | 50,000 | |||||||||
*2. Reserve for temporary difference adjustments | ||||||||||
16th Fiscal Period (As of January 31, 2020) | ||||||||||
The following summarizes reserve for temporary difference adjustments. | (in thousands of yen) | |||||||||
Balance at | Reserve | Reversal | Balance at | Reason for reserve | ||||||
Initial amount | the beginning | during the | during the | the end of | ||||||
and reversal | ||||||||||
of the period | period | period | the period | |||||||
Gain on negative good will* | 2,000,000 | 1,980,000 | - | 20,000 | 1,960,000 | Appropriate for | ||||
distribution | ||||||||||
- The Investment Corporation has reserved a part of gain on negative goodwill in the 13th fiscal period as reserve for temporary difference adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period starting from the next fiscal period after the period, in which the initial amount was reserved.
17th Fiscal Period (As of July 31, 2020) | ||||||||
The following summarizes reserve for temporary difference adjustments. | (in thousands of yen) | |||||||
Balance at | Reserve | Reversal | Balance at | Reason for reserve | ||||
Initial amount | the beginning | during the | during the | the end of | ||||
and reversal | ||||||||
of the period | period | period | the period | |||||
Gain on negative good will* | 2,000,000 | 1,960,000 | - | 20,000 | 1,940,000 | Appropriate for | ||
distribution | ||||||||
- The Investment Corporation has reserved a part of gain on negative goodwill in the 13th fiscal period as reserve for temporary difference adjustments. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period starting from the next fiscal period after the period, in which the initial amount was reserved.
3. Commitment line contracts
KDR has commitment line contracts with the banks with which it does business.
As of January 31, 2020 | As of July 31, 2020 | |
Total amount of commitment line contracts | 4,500,000 | 4,500,000 |
Balance of loans payable outstanding | - | - |
Remaining amount | 4,500,000 | 4,500,000 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to the Statements of Income and Retained Earnings) | ||||
* 1. Breakdown of real estate rental business profit and loss | ||||
(in | thousands of yen) | |||
From August 1, 2019 | From February 1, 2020 | |||
to January 31, 2020 | to July 31, 2020 | |||
A. Rental and other operating revenues: | ||||
Rental revenues | 7,089,789 | 7,315,802 | ||
Rental revenues from limited proprietary rights of land | 43,749 | 43,750 | ||
Common area charges | 338,499 | 345,030 | ||
Subtotal | 7,472,039 | 7,704,582 | ||
Others: | ||||
Parking space rental revenues | 206,829 | 205,439 | ||
Miscellaneous | 348,736 | 379,757 | ||
Subtotal | 555,566 | 585,197 | ||
Total rental and other operating revenues | 8,027,605 | 8,289,780 | ||
B. Property-related expenses: | ||||
Property management fees and facility management fees | 409,507 | 433,235 | ||
Utilities | 95,299 | 89,588 | ||
Taxes | 475,323 | 498,996 | ||
Repairs and maintenance | 281,724 | 288,648 | ||
Insurance | 12,023 | 12,101 | ||
Trust fees | 55,272 | 55,499 | ||
Depreciation | 1,428,865 | 1,467,105 | ||
Others | 153,286 | 160,424 | ||
Total property-related expenses | 2,911,303 | 3,005,600 | ||
C. Net operating income (A-B) | 5,116,301 | 5,284,179 | ||
*2. Gain and Loss on sale of real estate property | ||||
16th Fiscal Period (August 1, 2019 to January 31, 2020) | ||||
(in thousands of yen) | ||||
Melody Heim Gotenyama | ||||
Revenue from sale of the investment property | 480,000 | |||
Costs of the investment property | 420,922 | |||
Other sales expenses | 20,063 | |||
Gain on sale of real estate property | 39,013 | |||
17th Fiscal Period (February 1, 2020 to July 31, 2020) | ||||
(in thousands of yen) | ||||
KDX Residence Izumi Chuo | ||||
Revenue from sale of the investment property | 540,000 | |||
Costs of the investment property | 451,169 | |||
Other sales expenses | 4,392 | |||
Gain on sale of real estate property | 84,437 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to the Statements of Changes in Net Assets)
- 1. Total number of authorized investment units and total number of investment units issued and outstanding are as follows:
From August 1, 2019 | From February 1, 2020 | |||
to January 31, 2020 | to July 31, 2020 | |||
Total number of authorized investment units | 10,000,000 | units | 10,000,000 | units |
Total number of investment units issued and outstanding | 907,458 | units | 951,258 | units |
(Notes to Distributions)
16th Fiscal Period (August 1, 2019 to January 31, 2020) *1. Reserve for temporary difference adjustments
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied to distribution in the 16th fiscal period distribution.
17th Fiscal Period (February 1, 2020 to July 31, 2020)
*1. Reserve for temporary difference adjustments
The Investment Corporation has reserved ¥2,000,000,000 as reserve for temporary difference adjustments from gain on negative goodwill in the 13th fiscal period. At least 1% of the initial amount in equal installments over 50 years (100 fiscal periods) will be reversed every fiscal period applied to distribution starting from the 14th fiscal period distribution. It has been decided that ¥20,000,000 shall be reversed and applied to distribution in the 17th fiscal period distribution.
(Notes to the Statements of Cash Flow)
* 1. Reconciliation of balance sheet items to cash and cash equivalents at end of period in the cash flows statements
(in thousands of yen) | ||||
As of January 31, 2020 | As of July 31, 2020 | |||
Cash and deposits | 10,978,807 | 13,212,337 | ||
Cash and deposits in trust | 10,187,104 | 10,171,729 | ||
Cash and cash equivalents | 21,165,911 | 23,384,067 | ||
(Notes to the Lease Transactions) | ||||
Operating lease transactions (Lessee) | ||||
Unearned lease payments | ||||
(in thousands of yen) | ||||
As of January 31, 2020 | As of July 31, 2020 | |||
Due in 1 year | 12,000 | 12,000 | ||
Due after 1 year | 545,000 | 539,000 | ||
Total | 557,000 | 551,000 | ||
Operating lease transactions (Lessor) | ||||
Unearned lease payments | ||||
(in thousands of yen) | ||||
As of January 31, 2020 | As of July 31, 2020 | |||
Due in 1 year | 3,238,403 | 3,639,213 | ||
Due after 1 year | 19,714,966 | 20,383,265 | ||
Total | 22,953,370 | 24,022,478 | ||
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to the Financial Instruments)
(A). Overview
(1) Policy for financial instruments
The Investment Corporation procures funds for asset acquisitions, repairs, payment of distributions, repayment of loans, etc. through loans from financial institutions, issuance of investment corporation bonds, issuance of investment units and other means. With regard to the procurement of interest-bearing debts, the Investment Corporation ensures that it can effectively combine stable long-term funds with flexible short-term funds. Management of surplus funds is undertaken through various bank deposits focusing on safety, liquidity and effectiveness. The Investment Corporation uses derivatives for the purpose of hedging its exposure to changes in interest rates and other risks and does not enter into derivative transactions for speculative or trading purposes.
(2) Types of financial instruments and related risk
Bank deposits are for managing the Investment Corporation's surplus funds and are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited. Borrowings and investment corporation bonds are made primarily for the purpose of procuring funds for the acquisition of real estate and trust beneficiary interests in real estate and have a repayment date of a maximum of 9 years and 5 months as of July 31, 2020, the end of the 17th fiscal period, are exposed to liquidity risk where alternative funds may not be procured by the repayment date. Also, borrowings with floating interest rates are exposed to interest rate fluctuation risk. Derivatives are used for the purpose of hedging interest rate fluctuation risk for a certain portion of the borrowings.
(3) Risk management for financial instruments
- Credit risk
While bank deposits are exposed to credit risk such as the bankruptcy of financial institutions at which funds are deposited, such risk is monitored by deposits in non- interest bearing ordinary savings accounts or with financial institutions with credit ratings above a certain level. To manage this credit risk, the Investment Corporation regularly evaluates the results of operations and the financial condition of the issuer, etc. In utilizing derivatives, the Investment Corporation aims to mitigate counterparty risk such as by transacting with financial institutions with favorable ratings.
- Market risk
While borrowings with floating rates are exposed to interest rate volatility risk, such risk is monitored by adjusting the rate of the balance of borrowings with floating rates against the total borrowings according to the financial environment, interest rate forecasts by continuous monitoring, etc. and by using derivatives, etc. A risk management policy is established with regard to the execution and management of derivatives and such transactions are conducted based on this policy.
- Liquidity risk
Though borrowings are subject to liquidity risk, the Investment Corporation reduces such risk by spreading out payment due dates and by diversifying financial institutions. Liquidity risk is also managed by such means as regularly checking the balance of cash reserves.
(4) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fair value, different assumptions and factors could result in a different fair value.
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(B). Estimated Fair Value of Financial Instruments
The carrying value of financial instruments on the balance sheet and estimated fair value are shown in the following table.
As of January 31, 2020
(in thousands of yen) | |||
Carrying amount | Estimated fair value | Difference | |
(1) Cash and deposits | 10,978,807 | 10,978,807 | - |
(2) Cash and deposits in trust | 10,187,104 | 10,187,104 | - |
Total | 21,165,911 | 21,165,911 | - |
(1) Short-term loans payable | 3,300,000 | 3,300,000 | - |
(2) Current portion of long-term loans payable | 10,100,000 | 10,112,003 | 12,003 |
(3) Investment corporation bonds | 7,000,000 | 7,024,300 | 24,300 |
(4) Long-term loans payable | 107,250,000 | 107,913,233 | 663,233 |
Total | 127,650,000 | 128,349,537 | 699,537 |
Derivative transactions | -450,527 | -450,527 | - |
- Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.
As of July 31, 2020
(in thousands of yen) | ||||
Carrying amount | Estimated fair value | Difference | ||
(1) Cash and deposits | 13,212,337 | 13,212,337 | - | |
(2) Cash and deposits in trust | 10,171,729 | 10,171,729 | - | |
Total | 23,384,067 | 23,384,067 | - | |
(1) Short-term loans payable | 2,800,000 | 2,800,000 | - | |
(2) Current portion of long-term loans payable | 10,850,000 | 10,863,234 | 13,234 | |
(3) Investment corporation bonds | 7,000,000 | 6,963,600 | -36,400 | |
(4) Long-term loans payable | 114,400,000 | 114,986,963 | 586,963 | |
Total | 135,050,000 | 135,613,797 | 563,797 | |
Derivative transactions | -432,188 | -432,188 | - |
* Figures indicate net amount of derivative assets/liabilities derived from derivative transactions, with minus representing net liabilities.
Note 1: Methods to determine the estimated fair value of financial instruments and matters related to derivative transactions
Assets
(1) Cash and deposits and (2) Cash and deposits in trust
Since these items are settled in a short period of time, their carrying amount approximates fair value.
Liabilities
(1) Short-term loans payable
Since these items are settled in a short period of time with floating interest rates, their carrying amount approximates fair value.
- Current portion of long-term loans payable and (4) Long-term loans payable
Among these items, the fair value of loans payable with fixed interest rates is calculated based on the present value, which is the total amount of principal and interest discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type. As for the fair value of loans payable with floating interest rates, it is based on the carrying amount since market interest rates are reflected in the short term and the fair value is believed to approximate the carrying amount as the credit standing of the Investment Corporation has not changed significantly since the loans were made. (However, the fair value of long-term loans payable subject to the special treatment for interest-rate swaps is based on the present value of the total of principal and interest, accounted for together with the applicable interest-rate swaps, discounted by the estimated interest rate to be applied in the event that the Investment Corporation conducts new borrowings of the same type.)
(3) Investment corporation bonds
The fair value of investment corporation bonds is based on market prices.
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
Derivative transactions
Please refer to "Notes to the Derivative Transactions".
Note 2: Redemption schedule for financial assets with maturities
As of January 31, 2020
(in 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 | |||||||
less | through 2 years | through 3 years | through 4 years | through 5 years | ||||||||
Cash and deposits | 10,978,807 | - | - | - | - | - | ||||||
Cash and deposits in trust | 10,187,104 | - | - | - | - | - | ||||||
Total | 21,165,911 | - | - | - | - | - | ||||||
As of July 31, 2020 | ||||||||||||
(in 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 | |||||||
less | through 2 years | through 3 years | through 4 years | through 5 years | ||||||||
Cash and deposits | 13,212,337 | - | - | - | - | - | ||||||
Cash and deposits in trust | 10,171,729 | - | - | - | - | - | ||||||
Total | 23,384,067 | - | - | - | - | - | ||||||
Note 3: Redemption schedule for loans payable and investment corporation bonds | ||||||||||||
As of January 31, 2020 | ||||||||||||
(in | 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 | |||||||
less | through 2 years | through 3 years | through 4 years | through 5 years | ||||||||
Short-term loans payable | 3,300,000 | - | - | - | - | - | ||||||
Investment corporation bonds | - | 1,000,000 | - | 1,000,000 | - | 5,000,000 | ||||||
Long-term loans payable | 10,100,000 | 14,400,000 | 18,250,000 | 14,400,000 | 12,000,000 | 48,200,000 | ||||||
Total | 13,400,000 | 15,400,000 | 18,250,000 | 15,400,000 | 12,000,000 | 53,200,000 | ||||||
As of July 31, 2020 | ||||||||||||
(in | 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 | |||||||
less | through 2 years | through 3 years | through 4 years | through 5 years | ||||||||
Short-term loans payable | 2,800,000 | - | - | - | - | - | ||||||
Investment corporation bonds | - | 1,000,000 | - | 1,000,000 | - | 5,000,000 | ||||||
Long-term loans payable | 10,850,000 | 19,650,000 | 13,350,000 | 14,850,000 | 13,550,000 | 53,000,000 | ||||||
Total | 13,650,000 | 20,650,000 | 13,350,000 | 15,850,000 | 13,550,000 | 58,000,000 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to the Derivative Transactions)
(1) Transactions not subject to hedge accounting
As of January 31, 2020 and as of July 31, 2020: Not applicable
- Transactions subject to hedge accounting As of January 31, 2020
Contract amount | ||||||
Hedge accounting | Type of derivative transactions | Hedged items | (in thousands of yen) | Fair value | Calculation method | |
method | Maturing | (in thousands of yen) | for applicable fair value | |||
after 1 year | ||||||
Accounting method, | Interest rate swap transaction: | Long-term loans | Based on the amount | |||
60,950,000 | 53,450,000 | -450,527 | provided by counterparty | |||
in principle | Receive/floating and pay/fixed | payable | ||||
financial institutions | ||||||
Special treatment of | Interest rate swap transaction: | Long-term loans | 36,800,000 | 33,200,000 | * | - |
interest-rate swaps | Receive/floating and pay/fixed | payable | ||||
Total | 97,750,000 | 86,650,000 | -450,527 |
*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fair
value of the hedged long-term debt.
As of July 31, 2020
Contract amount | ||||||
Hedge accounting | Type of derivative transactions | Hedged items | (in thousands of yen) | Fair value | Calculation method | |
method | Maturing | (in thousands of yen) | for applicable fair value | |||
after 1 year | ||||||
Accounting method, | Interest rate swap transaction: | Long-term loans | Based on the amount | |||
66,650,000 | 63,650,000 | -432,188 | provided by counterparty | |||
in principle | Receive/floating and pay/fixed | payable | ||||
financial institutions | ||||||
Special treatment of | Interest rate swap transaction: | Long-term loans | 36,800,000 | 30,850,000 | * | - |
interest-rate swaps | Receive/floating and pay/fixed | payable | ||||
Total | 103,450,000 | 94,500,000 | -432,188 |
*Interest rate swaps for which the special treatment is applied are accounted for together with the underlying hedged item. As a result, their fair value is included in the fair value of the hedged long-term debt.
(Notes to the Related-Party Transactions)
1.Parent Company, major corporate unitholders and other
16th Fiscal Period (August 1, 2019 to January 31, 2020) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
2.Affiliated companies and other
16th Fiscal Period (August 1, 2019 to January 31, 2020) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
3.Fellow subsidiary companies and other
16th Fiscal Period (August 1, 2019 to January 31, 2020) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
4.Directors, major individual unitholders and other
16th Fiscal Period (August 1, 2019 to January 31, 2020) and 17th Fiscal Period (February 1, 2020 to July 31, 2020): Not applicable
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to the Tax-Effect Accounting)
The significant components of deferred tax assets and liabilities:
(in thousands of yen) | ||||||
As of January 31, 2020 | As of July 31, 2020 | |||||
Deferred tax assets: | ||||||
Valuation difference on other assets acquired by merger | 697,994 | 678,375 | ||||
Deferred gains or losses on hedges | 141,875 | 142,170 | ||||
Asset retirement obligations | 21,242 | 21,300 | ||||
Amortization of leasehold right in trust | 723 | 1,266 | ||||
Other | 20 | - | ||||
Subtotal deferred tax assets | 861,856 | 843,112 | ||||
Valuation allowance | -861,856 | -843,112 | ||||
Total deferred tax assets | - | - | ||||
Net deferred tax assets | - | - | ||||
The significant differences between the statutory tax rate and the effective tax rate: | ||||||
From August 1, 2019 | From February 1, 2020 | |||||
to January 31, 2020 | to July 31, 2020 | |||||
Statutory tax rate | 31.51% | 31.46% | ||||
Deductible cash distributions | -30.94% | -30.98% | ||||
Others | -0.55% | -0.46% | ||||
Effective tax rate | 0.02% | 0.02% | ||||
(Notes to Asset Retirement Obligations)
Asset retirement obligations reported on balance sheets 1. Summary of the asset retirement obligations
KDR has recognized the original state restoration obligations assumed under the general fixed-term land leasehold agreement as the asset retirement obligations in connection with Arute Ishiyagawa on June 3, 2019.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated based on a discount rate of 0.54711% after the useful life has been estimated to be 47 years and one month based on the time period from the date of acquisition to the expiration of the agreement.
3. Changes in the amount of applicable asset retirement obligations consisted of the following
(in thousands of yen) | |||
From August 1, 2019 | From February 1, 2020 | ||
to January 31, 2020 | to July 31, 2020 | ||
Balance at the beginning of period | 67,338 | 67,522 | |
Accretion adjustment | 184 | 184 | |
Balance at the end of period | 67,522 | 67,707 |
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to the Investment and Rental Properties)
The Investment Corporation owns real estate for rental purposes in the Tokyo Metropolitan Area and other regional areas for the purpose of generating rental revenues. The book value and fair value concerning the above real estate for rental purposes are as follows.
(in thousands of yen) | |||
From August 1, 2019 | From February 1, 2020 | ||
to January 31, 2020 | to July 31, 2020 | ||
Book value | |||
Balance at the beginning of period | 233,496,342 | 234,307,773 | |
Changes during the period | 811,431 | 13,921,970 | |
Balance at the end of period | 234,307,773 | 248,229,744 | |
Fair value at the end of period | 279,986,000 | 295,688,000 | |
Note 1: Book value excludes accumulated depreciation from acquisition costs.
Note 2: Among changes in the amount of real estate for rental purposes that occurred during the 16th fiscal period, the principal increase was the acquisition of real estate
trust beneficiary interests in 2 properties totaling ¥2,006,136 thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1 property totaling ¥420,922 thousand and depreciation of ¥1,428,681 thousand and during the 17th fiscal period, the principal increase was the acquisition of real estate trust beneficiary interests in 8 properties totaling ¥15,324,167 thousand, and the principal decrease was the sales of real estate trust beneficiary interests in 1 property totaling ¥451,169 thousand and depreciation of ¥1,466,920 thousand.
Income and loss for real estate rental business in the fiscal periods ended January 31, 2020 and July 31, 2020 for real estate for rental purposes is listed in "Notes to the Statements of Income and Retained Earnings".
(Notes to the Segment Information)
Segment information for the periods from August 1, 2019 to January 31, 2020 and from February 1, 2020 to July 31, 2020 is as follows:
(A) Segment information
Disclosure is omitted because the real estate leasing business is the Investment Corporation's sole business and it has no reportable segment subject to disclosure.
(B) Related information
(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 the operating revenue on the statement of income and retained earnings.
-
Information about each geographic area
(a) Net sales
Disclosure is omitted because net sales to external customers in Japan account for over 90% of the operating revenue on the statement of income and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounts for over 90% of the amount of property, plant and equipment on the balance sheet. - Information about each major customer
Disclosure is omitted because net sales to a single external customer account for less than 10% of the operating revenue on the statement of income and retained earnings.
KENEDIX RESIDENTIAL NEXT INVESTMENT CORPORATION (3278)
(Notes to Per Unit Information)
From August 1, 2019 | From February 1, 2020 | |
to January 31, 2020 | to July 31, 2020 | |
Net asset value per unit | ¥130,584 | ¥133,988 |
Net income per unit | ¥3,981 | ¥4,028 |
Note 1: The weighted average number of units outstanding of 945,242 and 907,458 were used for the computation of the amount of net income per unit as of July 31, 2020
and January 31, 2020, respectively. Net income per unit after adjusting for residual units is not included because there were no residual investment units.
Note 2: The basis for calculating net income per unit is as follows:
From August 1, 2019 | From February 1, 2020 | |
to January 31, 2020 | to July 31, 2020 | |
Net income (in thousands of yen) | 3,613,397 | 3,808,030 |
Net income not available to ordinary unitholders (in thousands of yen) | - | - |
Net income available to ordinary unitholders (in thousands of yen) | 3,613,397 | 3,808,030 |
Weighted average number of units during the period (units) | 907,458 | 945,242 |
(Notes to Important Subsequent Events) Not applicable
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Kenedix Residential Next Investment Corporation published this content on 14 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2020 06:34:02 UTC