December 15, 2010

Summary of Earnings Results for theNinth Fiscal Period(From May 1, 2010 to October 31, 2010)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982) hereby announces its earnings
results for the fiscal period ended October 31, 2010 (ninth fiscal period).

1. Earnings Results for the Ninth Fiscal Period
Ninth Fiscal Period: From May 1, 2010 to October 31, 2010
Eighth Fiscal Period: From November 1, 2009 to April 30, 2010
(1) Business Results
NinthFiscal Period
EighthFiscal PeriodNinthFiscal Period
EighthFiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥6,060mn

4.2%¥3,019mn

6.0%¥2,204mn

5.4%¥5,814mn

3.7%¥2,849mn

8.3%¥2,091mn

6.7%

Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit¥2,204mn

5.5%¥14,220

2.6%

1.2%

36.4%

¥2,090mn

6.6%¥13,484

2.5%

1.2%

36.0%

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)

NinthFiscal Period
EighthFiscal Period

Dividend in
Excess ofEarnings
per Unit

Total Amount of
Dividends in
Excess ofEarnings

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets¥14,220¥2,204mn¥0¥–mn

100.0%

2.6%¥13,484¥2,090mn¥0¥–mn

100.0%

2.5%(3) Financial Position

Ninth
Fiscal Period
EighthFiscal Period

Total Assets

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

¥186,459mn¥84,438mn

45.3%¥544,768¥186,296mn¥84,289mn

45.2%¥543,805(Note) Net assets per unit is rounded to the nearest yen.

1(4) Cash Flows

Ninth
Fiscal Period
EighthFiscal 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¥3,481mn(¥141mn)(¥2,213mn)¥12,013mn¥2,981mn(¥12,425mn)¥10,538mn¥10,886mn

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

TenthFiscal Period

TenthFiscal Period

From November 1, 2010 to April 30, 2011

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,976mn(1.4%)¥2,951mn(2.3%)¥2,169mn(1.6%)Net
IncomePeriod-on-Period
Change(excluding dividend in excess of earnings)

Dividend in Excess of Earnings
per Unit¥2,170mn(1.5%)¥14,000¥0

Dividend per Unit

(Note) Estimated net income per unit for the tenth fiscal period: ¥14,000*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 basedon 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, the forecasts
should not be construed as a guarantee of the dividend amount.

3. Others(1) Changes in Accounting Policies
a. Changes accompanying revisions in accounting standards, etc.:
b. Changes aside from a. above:Yes
No[Accounting Standard for Asset Retirement Obligations]
Since the ninth fiscal period, Top REIT has applied “Accounting Standard for Asset Retirement Obligations” (AccountingStandards Board of Japan (ASBJ) Statement No. 18; March 31, 2008) and “Guidance on Accounting Standard for Asset
Retirement Obligations” (ASBJ Guidance No. 21; March 31, 2008). This does not impact income/loss.

(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
Ninth Fiscal Period:
155,000 units
Eighth Fiscal Period: 155,000 units
b. Number of own investment units issued and outstanding at end of fiscal period
Ninth Fiscal Period:
0 units
Eighth Fiscal Period:
0 units
This summary of earnings results is translated from the Japanese “Kessan Tanshin” report, dated
December 15, 2010, which is prepared in accordance with generally accepted accounting principles inJapan 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(1) Acquisition and Selling of Assets
Top REIT began the ninth fiscal period with 15 properties (total acquisition value: ¥175,047 million). None ofthe deliberations over the possible acquisition of properties, based on information collected and carefully
selected with a focus on office buildings located in central Tokyo through the “optimal application of sponsor
strengths,” led to the decision to acquire properties. As a result, the number of properties owned by Top REIT
remained unchanged from the eighth fiscal period at 15 properties (total acquisition value: ¥175,047 million) asof the end of the ninth fiscal period.
(2) 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) and keeping
operational management costs at an appropriate level.
Top REIT strives to improve tenant satisfaction by sustaining relationships of trust with tenants and discerning
tenant needs via property management companies in order to maintain high occupancy rates. Moreover,solicitation of new tenants and other efforts were appropriately made. As a result of such undertakings, theoccupancy rate of Top REIT’s entire portfolio at the end of the ninth fiscal period was 99.5%.
Regarding maintenance, Top REIT followed up on ensuring an appropriate perception of the operational
management conditions and steady implementation of asset management plans for each property. Top REIT
also carried out repair work that contributes to enhancing the competitiveness of properties and maintaining andimproving the functionality of properties based on asset management plans, took steps to keep relevant costs at
an appropriate level, as well as conducted efficient management of resources.

5. Procurement of Funds
Top REIT procures funds by adopting a financial policy that is based on stable financial management. During
the ninth fiscal period, in view of diversifying fund procurement means, Top REIT filed a shelf registration
statement for investment corporation bonds on May 12, 2010 (scheduled period of issue: 2 years, starting May
20, 2010; amount to be issued: ¥100 billion) to enable flexible issuance of investment corporation bonds. Top
REIT issued its No. 1 Unsecured Investment Corporation Bonds (with special pari passu conditions among
specified Top REIT investment corporation bonds) (total issue amount: ¥8,500 million; interest rate: 1.0% perannum) on June 4, 2010 in view of extending borrowing periods and the periods remaining until repayment dates
and fixing interest rates, and used the funds to repay a long-term loan payable that was due for repayment onJune 30, 2010. As a result, at the end of the ninth fiscal period, the total amount of interest-bearing liabilities
stands at ¥94,172.5 million and the ratio of interest-bearing liabilities to total assets at 50.5%. Of the total
amount of interest-bearing liabilities, 47.2% are interest-bearing liabilities with fixed interest rates and 92.9% are
long-term interest-bearing liabilities (including the current portion).
The credit ratings of Top REIT as of October 31, 2010 are as follows:
Rating Agency

Issuer Rating [Outlook]

Moody’s Japan K.K. (Moody’s) (Note)

A3 [Negative]

Rating and Investment Information, Inc. (R&I)

AA– [Stable](Note) The rating agency changed from Moody’s Investors Service, Inc. (Moody’s) to Moody’s Japan K.K.
(Moody’s) on October 1, 2010.
3

[Reference Information]
Sony Computer Entertainment Inc., a major tenant of Akasaka Oji Building, reported to Top REIT on December
15, 2010 of the following plans to relocate to the Shinagawa area.
(i) Relocated the headquarters from TK Minami Aoyama Building to Sony City at 1-7-1 Konan, Minato-Ward,
Tokyo on August 23, 2010, and also plans to relocate the other departments that are tenants of Akasaka Oji
Building to the Shinagawa area by around the summer of 2011.
(ii) The termination of the lease agreement for Akasaka Oji Building and the specific timing of such are yet to
be determined at this stage. A notice of early termination of the lease agreement will be issued at a later
date based on the lease agreement once finalized.

6. Outlook for the Tenth and Eleventh Fiscal Periods
The earnings results forecasts for the tenth fiscal period (from November 1, 2010 to April 30, 2011) and theeleventh fiscal period (from May 1, 2011 to October 31, 2011) are as follows:
Fiscal Period

Tenth Fiscal Period

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

Operating Revenue¥5,976mn¥5,811mn

Ordinary Income¥2,169mn¥2,047mn

Net Income¥2,170mn¥2,046mn

Dividend per Unit
(excluding dividend in excess of earnings)¥14,000¥13,200¥0¥0

Dividend in Excess of Earnings per Unit

(Note) The earnings results forecasts presented 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.
Preconditions for Forecast of Earnings Results for the Tenth Fiscal Period (from November 1, 2010 toApril 30, 2011) and the Eleventh Fiscal Period (from May 1, 2011 to October 31, 2011)
Item
Management
PeriodPortfolio Assets

Number ofInvestment Units
Issued andOutstanding

Preconditions and Assumptions
 Tenth fiscal period: November 1, 2010 – April 30, 2011 (181 days) Eleventh fiscal period: May 1, 2011 – October 31, 2011 (184 days) The forecast is based on the 15 properties Top REIT owns as of December 15, 2010.
 The actual circumstances may change due to the acquisition or disposal of properties
and other factors.
 Top REIT does not have any forward commitments, etc. indicated in the supervision
guidelines of the Financial Services Agency (FSA) as of December 15, 2010.
 The number of investment units issued and outstanding is based on the number as of
October 31, 2010, which is 155,000 units, and assumes that no issuance of new
investment units will be made through to October 31, 2011.
4

Interest-Bearing
Liabilities

Operating
Revenue

OperatingExpenses

Non-Operating
ExpensesDividend per
Unit
Dividend in
Excess ofEarnings per Unit
Other

 It is assumed that the total amount of interest-bearing liabilities will be ¥94,172.5
million, which is the amount as of October 31, 2010.
 For the tenth fiscal period, it is assumed that ¥67.5 million of a long-term loan payable
will be repaid on December 30, 2010 as agreed upon. Moreover, it is assumed that the¥6,700 million loan payable due for repayment on February 28, 2011 and the ¥16,700
million loan payable due for repayment on March 3, 2011 will be fully refinanced.
 For the eleventh fiscal period, it is assumed that ¥67.5 million of a long-term loan
payable will be repaid on June 30, 2011 as agreed upon.
 For real estate rent revenue for existing properties, Top REIT takes into consideration
execution of new agreements, early termination of agreements, etc. that have been
finalized as of December 15, 2010, along with current real estate leasing market
conditions, 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.
 As the timing of the early termination of the lease agreement for a major tenant of
Akasaka Oji Building as outlined on page 4 [Reference Information] is yet to be
determined at this stage, it is assumed that there will be no impact on the tenth fiscal
period and eleventh fiscal period.
 Top REIT adopts a method treating property, city planning and depreciable asset taxes,
etc. on real estate, etc. it owns, as expenses related to the rent business in the amountcorresponding to the management period out of the assessed and determined taxation
amount.
 It is assumed that the amount of property tax, etc. will be ¥586 million for the tenthfiscal period and ¥629 million for the eleventh fiscal period.
 It is assumed that depreciation and amortization will be ¥1,088 million for the tenthfiscal period and ¥1,055 million for the eleventh 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 damages, etc. Another reason is that repair
expenses are expenses that do not accrue periodically and, rather, the variation in theamount is large depending on the fiscal period.
 Management operation fees are assumed by reflecting historical data, among otherfactors.
 It is assumed that non-operating expenses for the tenth fiscal period will be ¥787
million, of which interest on loans and interest expenses on investment corporation
bonds (including related expenses) will be ¥782 million.
 It is assumed that non-operating expenses for the eleventh fiscal period will be ¥802
million, of which interest on loans and interest expenses on investment corporation
bonds (including related expenses) will be ¥799 million.
 Dividends (dividend per unit) are calculated based on the dividend policy stipulated in
Top REIT’s Articles of Incorporation.
 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.

5

7. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Eighth Fiscal Period(as of April 30, 2010)
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
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
Deferred organization expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets

6

Ninth Fiscal Period(as of October 31, 2010)

6,184,999
4,701,262
36,742
246,767
39,187530
17,4301,979
11,228,898

7,343,741
4,769,415
42,947
250,570
16,379511―
2,859
12,426,425

1,116,573(89,700)
1,026,872
4,452(1,876)
2,575
11,436(6,594)
4,842
1,004
(343)
660
4,888,525
57,653,042(7,926,071)
49,726,970
656,108(159,651)
496,456
208,528(60,504)
148,023
144,174(54,832)
89,341
118,234,009
174,618,279

1,116,573(110,360)
1,006,212
4,452(2,283)
2,168
11,436(8,116)
3,320
1,004
(448)
555
4,888,525
57,717,230(8,942,395)
48,774,834
657,339(179,227)
478,112
212,861(71,141)
141,720
156,580(67,501)
89,079118,234,009
173,618,539

233
233

212
212

10,000300,759
132,394
443,154
175,061,667

10,000
198,549
154,660
363,210
173,981,962

5,670
―
5,670
186,296,235―
51,44451,444
186,459,832

(Unit: thousand yen)
Eighth Fiscal Period(as of April 30, 2010)
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
Other
Total current liabilities

Ninth Fiscal Period(as of October 31, 2010)

116,9036,700,000
25,335,000
296,129
228,365441―
909,119
120,135
2,438

187,056
6,700,000
16,835,000
271,228
239,784445
134,143
810,715
62,972
2,670

33,708,533

25,244,017―
62,205,000
147,8945,945,013―
68,297,908
102,006,441

8,500,000
62,137,500
146,592
5,992,614
122
76,776,829
102,020,847

82,260,100

82,260,100

2,090,112

2,204,126

Noncurrent liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
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

2,090,112

2,204,126

84,350,212

84,464,226(60,419)(25,241)(60,419)
84,289,793
186,296,235(25,241)
84,438,984
186,459,832

Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

7

(2) Statements of Income(Unit: thousand yen)
Eighth Fiscal Period(November 1, 2009 –April 30, 2010)

Ninth Fiscal Period(May 1, 2010 –October 31, 2010)

Operating revenue
Rent revenue – real estate

5,797,208

6,047,097

Other lease business revenue

17,007

13,728

Total operating revenue

5,814,215

6,060,826

2,405,910

2,451,121

436,159455,280

Asset custody fee

8,062

8,367

Administrative service fees

61,10863,093Operating expenses
Expenses related to rent business
Asset management fee

Directors’ compensations

6,900

6,900

Audit fee

10,00010,000

Other operating expenses

36,28046,613

2,964,421

3,041,377

2,849,794

3,019,449

Interest income

5,366

6,225

Reversal of dividends payable

1,061

728

826

678

7,254

7,633

Total operating expenses
Operating income
Non-operating income

Other
Total non-operating income
Non-operating expenses
Interest expenses

671,063

665,835

Interest expense on investment corporation bonds―

34,698

Amortization of investment corporation bond issuance costs

―

4,593

Borrowing related expenses―

108,153

Amortization of deferred organization expenses

5,670

5,670

Other

89,284

3,144

766,018

822,095

Ordinary income

2,091,030

2,204,986

Income before income taxes

2,091,030

2,204,986

1,011

950

Total non-operating expenses

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

8

(9)

2

1,002

953

2,090,028

2,204,033

84

92

2,090,112

2,204,126

(3) Statements of Cash Flows(Unit: thousand yen)
Eighth Fiscal Period(November 1, 2009 –April 30, 2010)
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
Decrease (increase) in operating accounts 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

Ninth Fiscal Period(May 1, 2010 –October 31, 2010)

2,091,030
1,127,065
5,670
21
―
(5,366)
671,063
3,921
178(17,430)(127,986)
613(38,118)
8,665(74,301)
154,318(217,522)
10,544
3,592,366

2,204,986
1,081,984
5,670
21
4,593
(6,225)700,534(6,205)19
17,430(3,803)9635,191
17,047
134,143(98,403)102,210(23,850)
4,165,440

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
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
Proceeds from tenant leasehold and security deposits
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

5,869(616,201)(945)
2,981,089

5,391(688,296)(945)
3,481,589(525,000)
890,000(1,191)(13,503,884)
18,586―
761,941(65,489)(12,425,037)(400,000)
300,000(196)(87,610)―(1,301)
82,322(34,721)(141,507)

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
Proceeds from issuance of investment corporation bonds
Payments for investment corporation bond issuance costs
Dividends paid
Net cash provided by (used in) financing activities

6,700,000(13,278,000)
28,078,000(9,000,000)――(1,961,370)
10,538,630―――(8,567,500)
8,500,000(55,667)(2,090,020)(2,213,187)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

1,094,682
9,791,579
10,886,261

1,126,894
10,886,261
12,013,156

9

8. Portfolio Data
Asset
Class

Acquisition
Value

Investment
Appraisal
Breakdown
Value at
(Note 1)
End of Period(million yen)(million yen)

NEC Head Office Building

41,95047,750

27.2

Harumi Island Triton Square OfficeTower Y

33,00039,00022.2

Akasaka Oji Building

9,660

13,300

7.6

Kanda Park Plaza

5,156

4,959

2.8

Shiba-Koen Building

5,770

3,410

1.9

20,00015,1008.6

12,70014,1008.0

AreaCentral Tokyo
OfficeBuilding

Property Name

Harumi Island Triton Square OfficeTower Z
Kanda Nishiki-cho 3-chome
Building (Note 2)Tokyo
Metropolitan
Area

Faret East Building

2,091

2,500

1.4

KansaiNittetsu Honmachi Building

1,100

1,380

0.8

131,427

141,499

80.7

Sagamihara Shopping Center

12,00010,3005.9

Ito-Yokado Higashi-Narashino Store

8,900

5,568

3.2

Musashiurawa Shopping Square

4,335

3,810

2.2

25,235

19,678

11.2

Fukasawa House Towers H&I

10,6356,980

4.0

Ecology Toyosu Procentury

5,160

4,520

2.6

Subtotal (2 properties)

15,795

11,500

6.6

Central Tokyo

2,590

2,674

1.5

2,590

2,674

1.5

175,047

175,351

100.0

Subtotal (9 properties)

RetailPropertyTokyo
Metropolitan
Area

Subtotal (3 properties)Tokyo
Residential Metropolitan
Area
Property

Other
Property(%)

OAK PLAZA

Subtotal (1 property)

Total (15 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.
(Note 2) The name of the property was changed from Sumitomo Corporation Nishiki-cho Building, effective
December 15, 2010.

10

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)
Koji Murata, 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.

11