June 14, 2012

Summary of Earnings Results for the
Twelfth Fiscal Period(From November 1, 2011 to April 30, 2012)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982) hereby announces its earnings
results for the fiscal period ended April 30, 2012 (twelfth fiscal period).

1. Earnings Results for the Twelfth Fiscal Period
Twelfth Fiscal Period: From November 1, 2011 to April 30, 2012
Eleventh Fiscal Period: From May 1, 2011 to October 31, 2011
(1) Business Results
TwelfthFiscal Period
Eleventh
Fiscal Period

TwelfthFiscal Period
Eleventh
Fiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,693mn(2.1%)¥2,772mn(0.3%)¥2,029mn

2.1%¥5,812mn(2.6%)¥2,779mn(6.5%)¥1,986mn(9.5%)Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit¥1,999mn

0.7%¥12,899

2.4%

1.1%

35.6%

¥1,985mn(8.0%)¥12,809

2.4%

1.1%

34.2%

Ratio ofRatio ofRatio ofNet Income to
Ordinary Income to Ordinary Income toUnitholders’
Total Assets
Operating Revenue
Equity(Note) Net income per unit is rounded to the nearest yen.

(2) Dividends
Dividend
per Unit

Total Amount of
Dividends(excluding dividend inexcess of earnings)

TwelfthFiscal Period
Eleventh
Fiscal Period

Dividend in
Excess ofEarnings
per Unit

Total Amount of
Dividends in
Excess ofEarnings

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets¥12,577¥1,949mn

¥0

¥–mn

97.5%

2.3%

¥12,809¥1,985mn¥0¥–mn

100.0%

2.4%(Note) As a part of unappropriated retained earnings has been allocated as internal reserve (¥49 million) for the twelfth fiscal period, total amount ofdividends is not equal with the amount of net income.

(3) Financial Position

TwelfthFiscal Period
Eleventh
Fiscal Period

Total Assets

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

¥188,407mn¥84,259mn

44.7%¥543,610¥185,459mn¥84,245mn

45.4%¥543,520(Note) Net assets per unit is rounded to the nearest yen.

1(4) Cash Flows

TwelfthFiscal Period
Eleventh
Fiscal Period

Net Cash
Provided by (Used in)Operating Activities

Net Cash
Provided by (Used in)Investing Activities

Net Cash
Provided by (Used in)
Financing Activities

Cash and
Cash Equivalents
at End of Period¥3,521mn(¥8,418mn)¥947mn¥5,968mn¥3,066mn(¥3,372mn)(¥2,225mn)¥9,917mn

2. Forecast of Earnings Results for the Thirteenth Fiscal Period
Thirteenth Fiscal Period:

Thirteenth
Fiscal Period

Thirteenth
Fiscal Period

From May 1, 2012 to October 31, 2012

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,621mn(1.3%)¥2,631mn(5.1%)¥1,923mn(5.2%)Net
IncomePeriod-on-Period
ChangeDividend per Unit (Note)(excluding dividend in excess of earnings)

Dividend in Excess of Earnings
per Unit¥1,922mn(3.9%)¥12,400¥0(Reference) Estimated net income per unit for the thirteenth fiscal period: ¥12,400

3. Others(1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements of Revisions
a. Changes in accounting policies due to amended accounting standards: No
b. Changes in accounting policies due to other factors from a. above:Noc. Changes in accounting estimates:
Nod. Restatements of revisions:No(2) Number of Investment Units Issued and Outstanding
a. Number of investment units (including own investment units) issued and outstanding at end of fiscal period
Twelfth Fiscal Period:
155,000 units
Eleventh Fiscal Period:
155,000 units
b. Number of own investment units issued and outstanding at end of fiscal period
Twelfth Fiscal Period:
0 units
Eleventh Fiscal Period:
0 units*Statement on Implementation Status of Audit Procedure
This Summary of Earnings Results (“Kessan Tanshin” in Japanese) report is outside the scope of theauditing procedure under the Financial Instruments and Exchange Law. As of the publication of thisreport, no auditing procedure under the Financial Instruments and Exchange Law has been completed
for the earnings results.
*Explanation on the Appropriate Use of Earnings Results Forecasts, and Other Matters of Special Note
The earnings results forecasts and other forward-looking statements contained in this document are
based on information currently available to and certain assumptions deemed reasonable by Top REIT.
Accordingly, the actual results may differ materially due to a variety of factors. Moreover, theforecasts should not be construed as a guarantee of the dividend amount.
This summary of earnings results is translated from the Japanese “Kessan Tanshin” report, dated June 14, 2012,
which is prepared in accordance with generally accepted accounting principles in Japan and Japanese law.
Unless otherwise stated, fractions less than the specified unit are rounded down to the nearest specified
unit for monetary amounts and rounded to the nearest specified unit for percentage figures.
24. Asset Management Performance
A. Brief Background of Top REIT
Top REIT, Inc. (Top REIT) was founded on November 2, 2005 based on the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, as amended) with Top REIT Asset Management Co., Ltd.
(Asset Manager) as the incorporator, and listed on the Real Estate Investment Trust Section of the Tokyo
Stock Exchange (TSE) (Securities Code: 8982) on March 1, 2006 with the number of investment units
issued and outstanding totaling 145,500 units. Later, Top REIT issued additional investment units (9,500
units) through a third-party allotment on March 23, 2006. As of the end of the twelfth fiscal period (April
30, 2012), the total number of investment units issued and outstanding stands at 155,000 units.
Top REIT works to conduct management with the aim of maximizing the investment value for its unitholders
by securing stable revenues over the medium to long term and achieving steady growth of its portfolio. To doso, Top REIT focuses on the two strategies of “skilled management of a diversified portfolio” and “optimal
application of the sponsors’ strengths.” As of the end of the twelfth fiscal period, its portfolio consists of 18
properties with a total acquisition value of ¥184,345 million.
B. Investment Environment and Management Performance<Investment Environment>(a) Economy in General
The Japanese economy generally continued to be in severe circumstances, with corporate earnings
worsening due to the impact of the European debt problem, stagnant overseas economies and the rapid
appreciation of the yen, although there were signs of production activities and personal consumption
recovering from the drop after the Great East Japan Earthquake. Entering 2012, however, the economy has
been gradually recovering, supported by the correction in the strong yen and the post-quake reconstruction
demand becoming full-fledged, and is now expected to achieve a moderate recovery going forward.
Nevertheless, the business sentiment is likely to remain unpredictable under the situation in which concerns
about further downside risks of the Japanese economy not being wiped out due to the impact of theinstability in overseas economies, including the European debt problem that has not yet shown any signs ofcalming.
(b) Real Estate Leasing Market[Office Buildings]
After having hovered at a high level, the vacancy rate in the office building leasing market in central Tokyo
started to show signs of improvement due to comparatively inexpensive rents and the earthquake-induced
demand for large-scale quality buildings boasting high earthquake resistance performance or those equippedwith emergency power systems, etc. However, the vacancy rate still remains high, with the large volume of
supply of new buildings in the first half of this year causing to surface the problem of after-relocation
vacancy. Moreover, rent levels have remained on the downside, though the range of decrease in rent levels
is gradually decelerating, as companies continue to reduce costs due to the unpredictability of corporate
earnings and the competition of soliciting tenants is intensifying. Recovery in the rent levels is thus likely torequire a substantial amount of time.
[Retail Properties]
The decrease in new supply of large-scale retail properties has helped to improve the supply and demandbalance, and consumer confidence which had dropped after the earthquake is gradually recovering. Personal
consumption has continued to steadily reflect seasonal factors and political measures. Under suchcircumstances, large retailers have implemented structural reform of their stores and focused on reforming
sales space by utilizing specialty stores inside and outside of their groups, as well as working to develop
3private brand products and strengthening sales efforts, in order to improve earnings. On the other hand, thepopulation decline and other factors are expected to cause the domestic retail market to shrink in size andfurther intensify competition among retailers. As such, future trends of major retailers need to be closely
monitored.
[Residential Properties]
In the rental residential properties market in central Tokyo and surrounding metropolitan areas, the numberof households has shown an upward trend due to population influx from other areas and the increase ofhouseholds comprising singles or married couples alone. In this situation, the number of households living
in condominiums has increased due to the prevailing preference of focusing on convenience of living andproximity to central Tokyo. On the supply side, meanwhile, since the number of housing starts has remained
at a low level, the supply and demand conditions in the residence leasing market in central Tokyo andsurrounding metropolitan areas are relatively favorable. In addition, while such condominiums as thoseprimarily comprising highly convenient studio units have secured relatively steady occupancy rates andstable rent levels, the rent levels of properties in high rent zones, such as those for foreign business people,
have continued to be adjusted.
(c) Real Estate Transaction Market
J-REITs have continued to implement capital increase through public offerings, and financial institutions
have maintained positive lending attitude, keeping the financing environment comparatively favorable.
Under these conditions, such players as J-REITs and private placement funds show strong willingness toinvest in real estate, creating a trend of gradual recovery in the number of transactions from the drop after
the earthquake. Buyers continue to have severe price perspectives, however, reflecting the current status of
the real estate leasing market, while sellers expect the economy and the real estate market conditions torecover as well as enjoy the favorable financing environment. This has not allowed the gap in the priceperspective between sellers and buyers to narrow, and the supply and demand situation of blue-chipproperties, etc. has remained tight. Accordingly, the recovery in the real estate transaction market is only
limited.
<Asset Management Performance >(a) Acquisition and Disposition of Assets
Top REIT began the twelfth fiscal period with 17 properties (total acquisition value: ¥177,435 million) and,with an aim to acquire highly competitive and highly profitable properties, investigated possible acquisitionof properties based on information collected and carefully selected with a focus on excellent officebuildings located in central Tokyo and residential properties located in central Tokyo and Tokyo
metropolitan areas through not only the “optimal application of sponsors’ strengths,” but also utilizing
established information channels. As a result, Top REIT acquired Shinkawa Chuo Building (acquisition
value: ¥5,610 million) located in Chuo Ward, Tokyo, on March 30, 2012. Moreover, in order to enhance thestability of its portfolio, Top REIT conducted asset replacement – the first such arrangement of its own – bydisposing Nittetsu Honmachi Building (transfer value: ¥1,300 million), the sole property it owned in the
Osaka area, to a third party on November 25, 2011 and newly acquiring Top Residence Nihonbashi
Kayabacho (acquisition value: ¥2,400 million), located in Chuo Ward, Tokyo, on February 1, 2012.
Top Residence Nihonbashi Kayabacho may be expected to have stable occupancy and earnings.
Thus, the number of properties owned by Top REIT expanded to 18 properties (total acquisition value:¥184,345 million) as of the end of the twelfth fiscal period.
(b) Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT centers on sustaining and increasing revenue over the
medium to long term by maintaining and improving tenant satisfaction (the “Tenants First” policy) and4

keeping operational management costs at an appropriate level. Top REIT strived to improve tenantsatisfaction by sustaining relationships of trust with tenants and discerning tenant needs via property
management companies in order to maintain and improve high occupancy rates. In particular, Top REIT
placed top priority on soliciting successor tenants to Akasaka Oji Building and focused on tenantsolicitation activities during the fiscal period. Despite the severe real estate leasing market conditions, suchactivities successfully led to conclusion of lease agreements with new successor tenants. As of the end of
the twelfth fiscal period, there is only one floor left vacant in the property, and Top REIT is now almost
certain about its lease-up. As a result of such undertakings, the period-end occupancy rate of Top REIT’s
entire portfolio increased to 98.5% from the 97.3% at the end of the eleventh fiscal period.
Regarding maintenance, Top REIT followed up on ensuring that it had an appropriate grasp of theoperational management conditions and steady implementation of asset management plans for each
property. Top REIT also carried out renewal construction and repair work that contribute to enhancing thecompetitiveness of properties and maintaining and improving the functionality of properties based on asset
management plans, took steps to keep relevant costs at an appropriate level, as well as conducted efficientmanagement of resources.

C. Procurement of Funds
Top REIT procures funds by adopting a financial policy that is based on stable financial management. In
the twelfth fiscal period, ¥19,040 million in borrowings due for repayment on November 30, 2011, andTop REIT refinanced it by long-term loans (repayment date: November 30, 2016) on the same date inorder to extend the remaining period of interest-bearing liabilities. Top REIT also repaid ¥67 million in thelong-term loans payable as agreed upon using cash on hand on December 30, 2011. Moreover, on March
30, 2012, Top REIT newly procured ¥3,000 million through long-term loans payable (repayment date:
October 31, 2016) in order to partly fund the acquisition of Shinkawa Chuo Building.
As a result, at the end of the twelfth fiscal period, the total amount of interest-bearing liabilities stands at¥96,970 million (¥88,470 million in long-term loans (including the current portion) and ¥8,500 million in
investment corporation bonds), and the ratio of interest-bearing liabilities to total assets is 51.5%. Moreover,
the ratio of long-term interest-bearing liabilities (including the current portion) is 100%, while interestbearing liabilities with fixed interest rates occupy 51.5%.
The credit ratings of Top REIT as of April 30, 2012 are as follows:
Credit rating agency
Moody’s Japan K.K.
(Moody’s)
Rating and Investment Information, Inc.
(R&I)

Rating [Outlook]
Issuer rating: A3 [Negative]
Senior unsecured long-term rating (No 1 Unsecured
Investment Corporation Bonds): A3 [Negative]
Issuer rating: AA– [Stable]
Unsecured investment corporation bond rating: AA–

Note: Moody’s Japan K.K. downgraded the issuer rating and the senior unsecured long-term rating of Top REIT to
Baa1 [rating outlook: Negative] as of May 9, 2012.

Moreover, Top REIT conducted shelf registration for investment corporation bonds, as indicated below, inorder to secure flexible procurement of long-term funds.
[Overview of shelf registration]
Object of shelf registration
Investment corporation bonds(excluding short-term corporation
bonds)

Amount to be issued

Scheduled period of
issue¥100,000 million

From May 20, 2012 to
May 19, 20145

D. Business Results and Dividends
As a result of the asset management and operations described above, Top REIT recorded the asset
management performance during the twelfth fiscal period of ¥5,693 million in operating revenue, ¥2,772
million in operating income and ¥2,029 million in ordinary income after deducting expenses concerning
borrowings, etc. and net income was ¥1,999 million.
As for dividends, Top REIT has the aim of having an amount equivalent to profit dividends deducted as
expenses based on application of the special provision on taxation of investment corporations (Article 67-15
of the Act on Special Measures Concerning Taxation [Act No. 26 of 1957, as amended; hereinafter, the“Special Taxation Measures Act”]). Moreover, in order to reinforce its financial standings, Top REIT
applied for the Special Measures in Case Land or Other Property is Acquired in Advance in 2009 or 2010(Special Taxation Measures Act, Article 66-2) to reserve part of its unappropriated retained earnings as
reserve for reduction entry, and decided to distribute nearly all of the unappropriated retained earnings(excluding fractions of the dividend per investment unit that are less than ¥1) after deducting the said reserve
for reduction entry. Consequently, Top REIT declared a dividend per investment unit of ¥12,577.

5. Management Policy and Future Issues(a) Management Strategy for Existing Properties
Top REIT will continue to follow its basic asset management strategy that centers on sustaining andincreasing revenue over the medium to long term by maintaining and improving tenant satisfaction(the“Tenants First” policy) and keeping operational management costs at an appropriate level. Under thisstrategy, Top REIT will focus on sustaining relationships of trust with tenants and leasing vacant spaces, etc.
and striving to maintain stable occupancy rates over the medium to long term. Furthermore,
Top REIT will also work to ensure an appropriate perception of the operational management conditions foreach property while steadily implementing such measures as to sustain and improve revenues and keep
operational management costs at an appropriate level. In addition, Top REIT will carry out systematic
repair work and such to enhance the competitiveness of properties and to maintain and improve thefunctionality of properties, in an aim to secure stable revenues over the medium to long term.
(b) Investment Strategy for New Properties
Top REIT aims to increase its dividends over the medium to long term by realizing external growth throughacquisitions of new properties. Along with continuing to further utilize pipeline support functions fromsponsor companies and utilizing various cultivated information channels, Top REIT will collect information
on new properties from a wide range of sources. Based on this information, Top REIT will consider
investment targets centering on highly competitive office buildings in central Tokyo including residential
properties that are expected to have stable occupancy among office buildings, retail properties, residential
properties and other asset classes. By doing so, Top REIT aims to expand the portfolio size while improving
its quality.
Furthermore, Top REIT makes it a management policy to keep the ratio of the investment amount perproperty at less than 20% of the entire portfolio as a target over the medium to long term. For reference, theacquisition value of the NEC Head Office Building accounts for 22.8% of the total acquisition value of Top
REIT’s properties as of the end of the twelfth fiscal period. Going forward, Top REIT will work to
reduce the risk of concentration on specific properties by steadily advancing further external growth.

6(c) Financial Strategy
Top REIT will continue to implement diversified and flexible fund procurement operations in preparation or
acquisition of new properties and refinancing of existing loans, etc. While securing mobility and flexibility
in fund procurement, Top REIT will work to reduce the risk involved in fund procurement by extending
borrowing periods and spreading out the repayment dates. At the same time, Top REIT will manage the riskof interest rate fluctuations by taking into account the balance of borrowings at floating and fixed interest
rates, as it discerns the interest rate trends. Moreover, financial soundness will be maintained by keeping theleverage at an appropriate level.
(d) Compliance and Risk Management, etc.
In addition to the supervision of the Executive Officer by Supervisory Directors at the Board of Directors
meetings and other occasions, Top REIT will continue its direction and supervision on the Asset Manager
so that it can conduct management operations with full care given to market risks, including rent decreases,
and credit risks as well as with a focus on the protection of unitholders’ interests in conducting transactions
with interested parties and on other compliance issues.

6. Significant Subsequent Events
There is non applicable.

7. Outlook for the Thirteenth and Fourteenth Fiscal Periods
The earnings results forecasts for the thirteenth fiscal period (from May 1, 2012 to October 31, 2012,) andthe fourteenth fiscal period (from November 1, 2012 to April 30, 2013) are as follows:
Fiscal Period

Thirteenth Fiscal Period

fourteenth Fiscal Period[period of asset management][184 days][ 181days]

Operating Revenue¥5,621mn¥5,670Mn

Operating Income¥2,631mn¥2,663Mn

Ordinary Income¥1,923mn¥2,016Mn

Net Income¥1,922mn¥2,015Mn

Dividend per Unit
(excluding dividend in excess of earnings)¥12,400¥13,000¥0¥0

Dividend in Excess of Earnings per Unit

(Note) The earnings results forecasts represented above are the current estimated figures calculated based on
certain assumptions. Accordingly, the actual operating revenue, ordinary income, net income, dividend
per unit and dividend in excess of earnings per unit may vary due to changes in the circumstances.
Moreover, the forecasts should not be construed as a guarantee of the dividend amount.

7Preconditions for Forecast of Earnings Results for the Thirteenth Fiscal Period (from May 1, 2012 to
October 31, 2012) and the Fourteenth Fiscal Period (from November 1, 2012 to April 30, 2013)
Item
Preconditions and Assumptions
Management Thirteenth fiscal period: May 1, 2012 – October 31, 2012 (184 days)
Period Fourteenth fiscal period: November 1, 2012 – April 30, 2013 (181days)
The forecast is based on 18 properties Top REIT owns as of June 14, 2012. The actualPortfolio Assets
circumstances may change depending on the acquisition or disposal of other properties.
Number of The number of investment units issued and outstanding is based on the number as ofInvestment Units
April 30, 2012, which is 155,000 units, and assumes that no issuance of new investment
Issued andunits will be made through to April 30, 2013.
Outstanding It is assumed that the total amount of interest-bearing liabilities is ¥96,970 million,
which is the amount as of April 30, 2012.
 For the thirteenth fiscal period, it is assumed that the ¥17,500 million loans payable due
for repayment on June 29, 2012 will be fully refinanced. Moreover, it is assumed that
Interest-Bearing
the ¥67 million in long-term loans payable will be repaid on June 29, 2012 as agreed
Liabilities
upon.
 For the fourteenth fiscal period, it is assumed that the ¥9,800 million loans payable due
for repayment on November 30, 2012 and the ¥9,300 million loans payable due forMarch 27, 2013 will be fully refinanced. Moreover, it is assumed that the ¥67 million in
long-term loans payable will be repaid on December 28, 2012 as agreed upon.
 For real estate rent revenue related to existing properties, Top REIT takes into
consideration execution of new agreements, early termination of agreements, etc. that
Operatinghave been finalized as of June 14, 2012, along with current real estate leasing market
Revenueconditions, and also takes into account factors that may cause fluctuations in suchaspects as risks of reductions in revenue due to decreased amounts of rent of tenants
when they reach their rent revision period hereafter.
 Top REIT adopts a method of treating property, city planning and depreciable asset
taxes, etc. on real estate, etc. it owns, as expenses related to the rent business in theamount corresponding to the management period out of the assessed and determined
taxation amount. In addition, as for the acquisition of real estate or beneficiary interests
in trust in real estate, the adjustments equivalent to property tax for the acquired fiscal
year paid to the transferor will be included in acquisition costs, and thus will not berecorded as expenses in the corresponding period.
 It is assumed that the amount of property tax, etc. will be ¥596 million for the thirteenthfiscal period and ¥ 597 million for the fourteenth fiscal period.
OperatingExpenses It is assumed that the depreciation and amortization will be ¥1,116 million for thethirteenth fiscal period and ¥1,121 million for the fourteenth fiscal period.
 Repair expenses for buildings, etc. may vary greatly from the forecasted amount due tovarious reasons. For example, emergency repair expenses may possibly arise due to
unexpected factors causing building damage, etc. Another reason is that repair expenses
are expenses that do not accrue periodically and, rather, the variation in the amount islarge depending on the fiscal period.
 Management operation fees are assumed by reflecting historical data, among otherfactors.

8Non-Operating
ExpensesDividend per
Unit

Dividend in
Excess ofEarnings per Unit
Other

 It is assumed that non-operating expenses for the thirteenth fiscal period will be ¥709
million, of which interest on loans and interest expenses on investment corporation
bonds (including related expenses) will be ¥704 million.
 It is assumed that non-operating expenses for the fourteenth fiscal period will be ¥649
million, of which interest on loans and interest expenses on investment corporation
bonds (including related expenses) will be ¥ 644 million.
 Dividends (dividend per unit) are calculated based on the dividend policy stipulated in
Top REIT’s Articles of Incorporation.
 It is assumed that, with regard to the ¥78 million (reserve for reduction entry andaccompanying income taxes adjustment) that was internally reserved in the twelfth
fiscal period from gain on transfer of land for Nittetsu Honmachi Building, which wastransferred as of November 25, 2011, by applying for the Special Measures in Case
Land or Other Property is Acquired in Advance in 2009 or 2010 (as stipulated in theSpecial Taxation Measures Act, Article 66-2) with an aim to reinforce Top REIT’s
financial standings, Top REIT will not reverse the amount of internal reserves for thethirteenth and fourteenth fiscal period.
 Top REIT does not currently anticipate dividends in excess of earnings (dividend inexcess of earnings per unit).
 It is assumed that there will be no changes in legislation, taxation, accounting standards,
Tokyo Stock Exchange’s listing regulations, rules and requirements imposed by The
Investment Trusts Association, Japan that would impact the aforementioned forecasts.
 It is assumed that there will be no unpredictable material changes in general economic
trends and real estate market conditions, etc.

9

8. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Eleventh Fiscal Period(as of October 31, 2011)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Income taxes receivable
Consumption taxes receivable
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
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
Assets in trust and other intangible assets
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

10

Twelfth Fiscal Period(as of April 30, 2012)

5,405,178
4,512,649
27,275236,504
21
319
―
1,845
10,183,794

1,669,299
4,299,045
30,250234,094
16
150
608
1,845
6,235,311

1,143,383(145,279)
998,103
4,452(2,732)
1,719
11,436(9,493)
1,943
1,370
(683)
686
4,888,525
59,611,048(10,964,364)
48,646,683
699,737(219,949)
479,788
242,090(92,931)
149,159
227,793(92,531)
135,261
119,440,939
174,742,811

1,145,185(161,620)
983,564
4,452(2,867)
1,584
17,235(9,825)
7,410
2,522
(846)
1,676
4,888,525
61,867,568(11,762,594)
50,104,973
696,187(238,906)
457,281
232,455(92,043)
140,412
237,583(98,037)
139,546
124,678,411
181,403,387

2,343
170
2,513

2,096
148
2,245

10,000304,061
176,125
490,187
175,235,512

10,000537,134
184,406
731,541
182,137,174

40,42040,420185,459,727

34,90834,908
188,407,394

(Unit: thousand yen)
Eleventh Fiscal Period(as of October 31, 2011)

Twelfth Fiscal Period(as of April 30, 2012)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Provision for loss on disaster
Other
Total current liabilities

163,924―
36,675,000
254,070
261,532
512
63,072
941,986
―
747
3,647

225,911―36,735,000
233,949
221,849566―
804,500――
3,877

38,364,493

38,225,655

8,500,000
48,862,500
144,487
5,342,641―
35
62,849,665
101,214,158

8,500,000
51,735,000
144,487
5,513,903
28,827―65,922,219
104,147,874

82,260,100

82,260,100

1,985,468

1,999,419

Noncurrent liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Long-term advances received
Total noncurrent liabilities
Total liabilities
Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity

1,985,468

1,999,419

84,245,568

84,259,519―――

Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets―
84,245,568
185,459,727

11

84,259,519
188,407,394

(2) Statements of Income(Unit: thousand yen)
Eleventh Fiscal Period(May 1, 2011 –October 31, 2011)

Twelfth Fiscal Period(November 1, 2011 –April 30, 2012)

Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sales of real estate properties
Total operating revenue

5,661,876

5,420,035

150,602

17,265―

256,0025,812,479

5,693,303

2,479,757

2,383,013

Operating expenses
Expenses related to rent business
Asset management fee

424,168

409,169

Asset custody fee

8,358

8,348

Administrative service fees

63,912

63,199Directors’ compensations

6,600

6,300

Audit fee

10,00010,000

Other operating expenses
Total operating expenses
Operating income

40,204

41,222

3,033,001

2,921,252

2,779,477

2,772,050

3,894

2,880

686

800

Non-operating income
Interest income
Reversal of dividends payable
Insurance income

2,195

―

Reversal of provision for loss on disaster

1,672

391

－

119

8,448

4,192

Interest expenses

613,254

553,431

Interest expense on investment corporation bonds

42,87042,267

Other
Total non-operating income
Non-operating expenses

Amortization of investment corporation bond issuance costs
Borrowing related expenses
Other

5,511

5,511

136,618

140,627

3,170

5,262

801,426

747,101

1,986,499

2,029,141

－

－

－

－

Provision for loss on disaster－－

Total extraordinary loss－－

Income before income taxes

1,986,499

2,029,141

1,041

962

Total non-operating expenses
Ordinary income
Extraordinary income
Refunded Property taxes
Total extraordinary income
Extraordinary loss

Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

12

(2)

28,833

1,039

29,795

1,985,460

1,999,346

8

73

1,985,468

1,999,419

(3) Statements of Changes in Net Assets (Unitholders’ Equity)(Unit: Thousand yen)
Eleventh Fiscal Period(May 1, 2011 –October 31, 2011)
Unitholders’ equity
Unitholders’ capital
Balance at the beginning of the period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Surplus
Unappropriated retained earnings (undisposed loss)
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total surplus
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total unitholders’ equity
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the beginning of the period
Changes of items during the period
Changes of items other than unitholders’ equity (net)Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of the period
Changes of items during the period
Changes of items other than unitholders’ equity (net)Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Changes of items other than unitholders’ equity (net)Total changes of items during the period
Balance at the end of current period

13

Twelfth Fiscal Period(November 1, 2011 –April 30, 2012)

82,260,100

82,260,100－
82,260,100－
82,260,100

2,157,918

1,985,468(2,157,910)
1,985,460(172,449)
1,985,468(1,985,395)
1,999,346
13,951
1,999,419

2,157,918

1,985,468(2,157,910)
1,985,460(172,449)
1,985,468(1,985,395)
1,999,346
13,951
1,999,419

84,418,018

84,245,568(2,157,910)
1,985,460(172,449)
84,245,568(1,985,395)
1,999,346
13,951
84,259,519

－

－

－
－
－

－
－
－

－

－

－
－
－

－
－
－

84,418,018

84,245,568(2,157,910)
1,985,460－(172,449)
84,245,568(1,985,395)
1,999,346－
13,951
84,259,519

(4)Statements of Cash Dividend Distributions
For the period
from May 1, 2011
to October 31, 2011

For the period
from November 1, 2011
to April 30, 2012

Amount(yen) (Note 1)

Amount(yen) (Note 2)

I. Unappropriated retained earnings

1,985,468,894

1,999,419,960

II. Total Amount of Dividends

1,985,395,000

1,949,435,000(12,809)(12,577)―

49,958,494

73,894

26,466(Dividend per unit)
III. Voluntary retained earnings
Provision of reserve for reduction
entryIII. Retained earnings brought forward

Note 1: In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the amounts ofdividends are limited to the amounts of income. The article also stipulates the policy that “Top REIT shall distribute amount inexcess of the amount equivalent to 90% of its distributable profits as stipulated in Article 67-15 of the Special Taxation
Measures Act.” Based on these policies, Top REIT decided on a total distribution of ¥1,985,395,000 as distribution ofincome for the period. This is the maximum value arrived at when the number of units issued and outstanding (155,000
units) is multiplied by an integer, within the limit of unappropriated retained earnings for the fiscal period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the Articles
of Incorporation.
Note 2:

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the amounts ofdividends are limited to the amounts of income. The article also stipulates the policy that “Top REIT shall distribute amount inexcess of the amount equivalent to 90% of its distributable profits as stipulated in Article 67-15 of the Special Taxation
Measures Act.” Based on these policies, Top REIT decided on a total distribution of ¥1,949,435,000 as distribution of income
for the period . This is the maximum value arrived at when the number of units issued and outstanding (155,000 units) is
multiplied by an integer, within the limit of the balance of unappropriated retained earnings after deducting the reserve for
reduction entry, which was reserved pursuant to Article 66-2 of the Special Taxation Measures Act, for the fiscal period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the Articles ofIncorporation.

14

(5) Statements of Cash Flows(Unit: thousand yen)
Eleventh Fiscal Period(May 1, 2011 –October 31, 2011)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of deferred organization expenses
Amortization of right of trademark
Amortization of investment corporation bond issuance costs
Interest income and interest on securities
Interest expenses
Reversal of provision for loss on disaster
Provision for loss on disaster
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in income taxes receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in other current assets
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
Subtotal

Twelfth Fiscal Period(November 1, 2011 –April 30, 2012)

1,986,499
1,060,958
―
21
5,511
(3,894)
656,125(1,672)
―
831
―
(51)
―
22,560―(60,823)(16,847)
13,21473,72585,486(85,204)
3,736,441

2,029,141
1,072,349
―
21
5,511
(2,880)595,699(391)―（2,975）
（608）
168
―
2,410
1,001,145
7,256（11,901）（63,072）（137,486）（233,072）（106,072）
4,155,244

4,396(648,830)(24,323)(1,057)
3,066,626

2,880（635,382）
（355）
（908）
3,521,477

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities――(26,283)(2,692,868)(2,466)―70,026(720,768)(3,372,360)――（3,190）（8,586,136）――
468,502（297,240）（8,418,065）

Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities―――(67,500)(2,157,910)(2,225,410)――
22,040,000（19,107,500）（1,985,395）
947,105

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(2,531,143)
12,448,972
9,917,828（3,949,482）
9,917,828
5,968,345

Interest income received
Interest expenses paid
Payment for Loss on disaster
Income taxes paid
Net cash provided by (used in) operating activities

159. Portfolio Data
Asset
Class

Area

Property Name(million yen)(million yen)

NEC Head Office Building

41,95049,450

27.6

Harumi Island Triton Square OfficeTower Y

33,00036,400

20.3

Akasaka Oji Building

9,660

9,080

5.1

Kanda Park Plaza

5,156

4,930

2.8

Shiba-Koen Building

5,770

3,420

1.9

20,00014,3008.0

12,70014,1007.9

Shinkawa Chuo Building

5,610

5,790

3.2

Faret East Building

2,091

2,390

1.3

135,937

139,860

78.1

Sagamihara Shopping Center

12,00010,4005.8

Ito-Yokado Higashi-Narashino Store

8,900

5,620

3.1

Musashiurawa Shopping Square

4,335

3,860

2.2

25,23519,880

11.1

Top Residence Nihonbashi
Kayabacho

2,400

2,550

1.4

Fukasawa House Towers H&I

10,6356,950

3.9

Ecology Toyosu Procentury

5,160

4,880

2.7

Impress Musashi-Koganei

1,223

1,280

0.7

Top Residence Yoga

1,165

1,150

0.6

Subtotal (5 properties)

20,583

16,810

9.4

Central Tokyo

2,590

2,450

1.4

2,590

2,450

1.4

184,345

179,000

100.0

Central Tokyo
OfficeBuilding

Harumi Island Triton Square OfficeTower Z
Kanda Nishiki-cho 3-chome
Building
Tokyo
Metropolitan
Area

Subtotal (9 properties)

RetailPropertyTokyo
Metropolitan
Area

Subtotal (3 properties)
Central Tokyo

Residential Tokyo
Metropolitan
Property
Area

Other
Property

AcquisitionPrice

As of April 30, 2012
Appraisal
Investment
Value atBreakdown
End of Period(Note 1)OAK PLAZA

Subtotal (1 property)

Total (18 properties)(%)(Note 1) The investment breakdown is the ratio of the appraisal value at end of period for the applicableproperty or the applicable asset class to the sum total of the appraisal value at end of period for allproperties in the portfolio and is rounded to the first decimal place.
16

For more information, please visit our website http://www.top-reit.co.jp/english/
Contact for inquiries in Japanese:
Top REIT Asset Management Co., Ltd. (Asset Manager)
Takashi Mizuno, Director, General Manager, Finance Department+81-3-3243-2181
Contact for inquiries in English:
Top REIT Asset Management Co., Ltd. (Asset Manager)
E-mail address: info-top@top-reit-am.co.jp

DISCLAIMER:
Top REIT, Inc. makes no assurance or warranty with respect to the completeness or accuracy of this English
translation. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail. For complete and accurate information, please refer to the Japanese original.

17