Financial Summary for the 10th Fiscal Period(from July 1, 2007 to December 31, 2007)

Name
Representative
Stock Listing
Securities CodeURL
Contact

:
:
:
:
:
:

TGR Investment Inc.
Takashi Tsunogae, Executive Director
Tokyo Stock Exchange8963
http://www.tgr-inv.co.jp/eng/
GrowthREIT Advisors, Ltd. (Asset Manager of TGR)
Hideyo Hironaka, Director
Tel. +81-3-3238-5341

Start date for dividend
distribution: March 14, 2008

(Note) This financial summary has been prepared in accordance with generally
accepted accounting principles in Japan and Japanese laws.

TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

Overview of TGR Investment Inc.
TGR Investment Inc. (hereinafter, “TGR”) was established in January 2002 in accordancewith the Law concerning Investment Trusts and Investment Corporations (Law No. 198, 1951and subsequent revisions, hereinafter “Investment Trust Law”). TGR was listed as a Real
Estate Investment Trust on the Osaka Securities Exchange in May 2004 and on the Tokyo Stock
Exchange (hereinafter, “TSE”) in August 2006 on the J-REIT market (Securities Code: 8963).
Subsequently, in order to focus trading on one securities exchange and reduce administrative
tasks and costs accompanying cross listing, TGR delisted from Osaka Securities Exchange in
October 2007. Consequently, TGR is listed only on the TSE as of the end of the 10th fiscal
period (ended December 31, 2007).
In the five years since establishment, TGR has built up a solid track record. TGR willcontinue its efforts to realize its “Growth Potential” and seek to improve investor value as acomprehensive REIT that invests in a variety of assets.

Overview of Financial Results
TGR announced financial results for its 10th fiscal period (ended December 31, 2007) on
February 19, 2008.
For this period, operating revenues were JPY1,664 million, operating income was JPY744
million, recurring profits were JPY485 million and net income was JPY481 million. As for the
distribution, with the aim of having the maximum amount of interest distribution included in
expenses in accordance with Article 67-15 of the Special Taxation Measures Law, it was decided
to distribute the full amount of unappropriated profits for this period’s distribution per unit,
excluding fractional amounts less than 1 yen, and thus distribution per unit is 8,934 yen.
As of the end of this period, total assets were approximately JPY48,461 million, total liabilities
were JPY28,865 million and total net assets were JPY19,595 (JPY363,567 per unit).

Summary of the 10th Fiscal Period
Acquisitions and Dispositions
TGR considers it necessary to replace properties in the portfolio through acquisitions andselling of properties with the aim of securing the growth potential of assets. Therefore, TGR
tries to secure profitability and maintain stable earnings through flexible acquisition of properties,
while pursuing improved efficiency of administrative operations and enhanced profitability of theentire portfolio.
When selecting properties to be sold, small properties (acquisition price of less than JPY500

2 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

million for residences and less than JPY700 million for offices etc.) or old properties are mainly
considered. In such occasions, real estate market conditions, future fluctuations in profitability
and the asset value of properties, expected capital expenditures to deal with the deterioration or
obsolescence of properties, and portfolio composition among other factors are all taken into
consideration.
The upswing in the Japanese economy seen in the previous period continued into this period
as corporate performance remained strong. However, despite the worldwide turmoil in thefinancial market in the wake of the U.S. subprime loan problem as well as the continuing soaring
prices of crude oil, gold and other commodities markets, harmful effects on business conditions
have been avoided.
The real estate market maintained active demand.
Land prices in large metropolitan areas
are on an upward trend and thus land is not readily available in some regions. In addition, in
the residential real estate rental market, rent levels remain unchanged by and large due to theongoing trend of an increase in supply.
On the other hand, in the office market that has been
buoyed by active demand due to strong corporate performance continuing from the previous
period, a rising trend in rents has become apparent in addition to an improvement in vacancy
rates.
Under such circumstances, TGR worked to acquire properties while avoiding excessive
acquisition competition through effective use of the support of sponsor companies and focusing
on negotiation transactions and considering only real estate with great potential and profitability
as properties.
During the 10th fiscal period, TGR acquired 9 properties, consisting of 2 residences, 1 office,and 6 parking lots (total acquisition price: JPY 5,636 million).
In addition, TGR did not sell or transfer any properties during this period. Consequently,
operating income in this period fell 4.9% from the previous period ended June 30, 2007.
However, rental revenues increased 14.6% from the previous period, indicating steady growth.

Portfolio Overview
As of the end of this period, the number of properties that TGR owned was 36 residences, 10
offices & commercial facilities etc., 10 parking lots, which totals 56 properties with a totalacquisition price of JPY44,808 million and total leasable area of 97,384.59m2. Further, theoccupancy rate of the total portfolio of TGR was 97.2 % as of the end of this period.
(Note) For further information, please see “Portfolio (Portfolio List and Portfolio Data)” page on the following website of
TGR.
URL: http://www.tgr-inv.co.jp/eng/

3 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

Debt Financing
During this period, TGR proposed acquisition of properties and refinancing of short-term debt
and took out a long-term loan of JPY7,648 million. In addition, in line with refinancing,
short-term debt of JPY1,000 million was paid off ahead of schedule. Also, portion of long-term
debt (JPY115 million) was paid off at maturity.
With regard to capital procurement, TGR’s basic policy is to reduce financing costs, seek todiversify sources of financing and spread out maturity dates. With the goal of enjoying theadvantage of low interest rates and enable flexible leverage control, the ratio of variable interests
has been increased.
As a result, the outstanding interest-bearing debt that TGR had as of the end of this period
was JPY27,283 million (all of which is long-term debt) and an LTV of 58.8%**LTV (Loan–to-Value) =Interest-bearing debt/ (Interest-bearing debt + Unitholders’ capital) x100
(Note) For further information, please see “Investors’ Guide (Financial Information)” page on the following website of
TGR.
URL: http://www.tgr-inv.co.jp/eng/

4 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

1. Performance for the 10th Fiscal Period(from July 1, 2007 to December 31, 2007)

1) Business Results(Percentages in brackets represent change from previous fiscal period)

Operating Revenues

Operating Income％ Millions of yen

Millions of yen

Recurring Profits％ Millions of yen

Net Income％ Millions of yen％

Dec. 31, 2007

1,664

（1.7）

744

（-4.9）

485（-19.4）481（-19.9）Jun. 30, 2007

1,637（-4.9）

782（-13.8）602（-6.4）

600（-6.5）

Earnings
Per Unit

Net Income
/NAV
％

Yen

Recurring
Profits/
Total Assets

Reference(Annualized)％

Reference(Annualized)％

Recurring
Profits/
Operating
Revenues％％

Dec. 31, 2007

8,934

2.4

（4.9）

1.1

（2.1）

29.2

Jun. 30, 2007

11,150

3.0

（6.1）

1.4

（2.9）

36.8

2) Cash Distributions
Distribution
Per Unit(Excluding
exceeding profit
distribution per
unit)
Yen

ExceedingProfitDistribution
Per unit

Distribution
AmountMillions of yen

ExceedingProfitDistribution
AmountYen

Dividend
Payout Ratio

Distribution
/NAV

％

Yen

％

Dec. 31, 2007

8,934

481

0

0

100.0

2.5

Jun. 30, 2007

11,150

600

0

0

99.9

3.0

(Note) ”Dividend Payout Ratio” is rounded to one decimal place.

3) Financial Position
Total Assets
Dec. 31, 2007

NAV*

NAV Ratio

NAV per Unit％

Millions of yen

Millions of yen

48,461

19,59540.4

363,567

19,72847.3

366,025

Jun. 30, 2007
41,753(Reference) Net Assets:
As of December 31, 2007: JPY19,595 million

Yen

As of June 30, 2007: JPY19,728 million*NAV=Total net assets4) Cash Flows
Cash Flows fromOperating Activities
Millions of yen

Cash Flows from
Investing Activities
Millions of yen

Cash Flows from
Financing Activities
Millions of yen

Cash and Cash
Equivalents
at End of Period
Millions of yen

Dec. 31, 2007

673

-5,588

5,929

3,154

Jun. 30, 2007

3,079

-3,762

-741

2,141

5 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

2. Forecast of Results for the 11th Fiscal Period(from January 1, 2008 to June 30, 2008)(Percentages in brackets represent change from previous fiscal period)
Operating
Revenues
Millions

Operating
IncomeMillions

Distribution
Per Unit

Recurring
Profits

Net Income

Millions(Excluding
exceeding profit
distribution per
unit)

ExceedingProfitDistribution
Per Unit

Millions

11th Fiscal Periodof yenof yenof yenof yen％％％％Ending June 30,
1,710 （2.8） 685 （-8.0） 397 （-18.2） 395 （-18.0）
2008(Reference) Estimated EPU for the 11th fiscal period: JPY7,330

Yen

7,330

Yen

0

Pre-Conditions and Assumptions that Support Operating Forecasts for the 11th Fiscal PeriodEnding June 30, 2008
Item
PeriodAssumptions
Fiscal Period Ending June 30, 2008:
January 1, 2008 to June 30, 2008 (182 days)th
Forecasts for the 11 fiscal period ending June 30, 2008 are based on a property
portfolio totaling 56 properties held as of February 19, 2008.

Assets under Management

Units Outstanding

LTV (Loan-to-Value)

In reality, however, there is a possibility that the number of properties of TGR
Investment Inc. would be changed since TGR Investment Inc. might acquire or sellthproperties during the 11 fiscal period.
The number of investment units issued and outstanding as of February 19, 2008 is
53,899 investment units.
Forecasts are based on the assumption that the
number of investment units issued and outstanding may remain unchanged for theth
11 fiscal period.
Forecasts for the fiscal period ending June 30, 2008 are based on an LTV* of 58.8%
as of February 19, 2008.
*LTV=Interest-bearing debt/ (Interest-bearing debt + Unitholders’ capital) x100

6 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

3. Financial Statements
1) Balance Sheet of TGR as of December 31, 2007
(Consistent with Japanese GAAP)(Thousands of yen)Items

10th Fiscal Period(As of Dec. 2007)％

AmountAssetsⅠ Current assets
Cash and cash equivalents
Cash and cash equivalents in trust
Rental receivables
Payment in advance
Deposit payments
Prepaid expneses
Consumption tax refundable
Deferred income taxes
Other current assets
Allowance for doubtful assets
Total current assets
Ⅱ Non-current assets
Property, plant and equipment, at cost
Buildings
Equipment
Building improvements
Land
Buildings in trust
Equipment in trust
Building improvements in trust
Furniture and fixtures in trust
Land in trust
Net property, plant and equipment, at cost
Intangible assets net of amortization
Other intangible assets
Other intangible assets in trust
Intangible assets
Investments
Lease deposits
Long-term prepaid expenses
Deferred income taxes
Other Investments
Total investments
Total non-current assets
Ⅲ Deferred assets
Offering costs
Total deferred assets
Total assets

1,087,701
2,067,238
51,015392
15,01355,14962,2842,372-4,003
3,337,166％

Amount

%

6.9

92.6

457,917
116,892
3,732
2,197,698
14,561,822
2,379,993
186,600
19,653
19,461,257
39,385,567

0.0

121
3,125
3,247

99,66754,90013,27951,959219,806
45,118,359

0.5
93.1

10,00042,155
4,755
50,362
107,273
39,496,088

0.3
94.6

89,667
12,744
8,523
1,596
112,533
5,622,270

5,544
5,544
48,461,069

0.0
100.0

7,295
7,295
41,753,010

0.0
100.0

-1,750-1,7506,708,059

673,383
160,284
6,873
2,866,124
16,280,334
2,674,533
184,175
29,33422,020,574
44,895,618
121
2,812
2,934

10 Fiscal Period(As of Dec. 2007)％

AmountLiabilities
Ⅰ Current liabilities
Accounts payable
Short-term debt
Accrued liabilities
Accrued expenses
Accrued income taxes
Unearned revenues
Deposits reveived
Total current liabilities
Ⅱ Non-current liabilities
Long-term debt
Tenant leasehold and security
Tenant leasehold and security in trust
Derivative liabilities
Total non-current liabilities
Total liabilities
Net assets
Ⅰ Unitholders' equities
1. Unitholders' capital
2. Retained earnings
Unappropriated profit for the year
Total unitholders' equities
Ⅱ Evaluation, currency translation and etc.
Deferred hedge losses
Total evaluation, currency translation and etc.
Total net assets
Total liabilities and net assets

AmountChanges552,493
1,588,576
47,421
375
37,14010,972
6,070
10,000-3,4232,249,626

th

Items

9th Fiscal Period(As of Jun. 2007)

65,874
18,17489,946479
197,051
13,760385,286
27,283,000
1,053,821
109,944
33,14528,479,911
28,865,197

48.3

94.3

215,466
43,392
3,141
668,426
1,718,512
294,539-2,4249,680
2,559,317
5,510,050

14.0

0.0

-313
-313

-9.6

104.9
14.2

-24.0
16.1

9th Fiscal Period(As of Jun. 2007)
Amount0.8

103,423
1,000,000
14,43038,9895,678
156,408
8,834
1,327,764

58.8
59.6

19,750,000
828,685
106,595
11,55920,696,840
22,024,604

19,134,417

5.4

535,208
478,6613,594
16
15,01318,00951,312-3,697-10,000-580
1,087,539

Changes％Amount%3.2-37,549-1,000,000
3,744
50,956-5,19940,642
4,926-942,478

-71.0

49.6
52.7

7,533,000
225,136
3,349
21,585
7,783,071
6,840,593

37.6
31.1

19,134,417-

481,544
19,615,961

40.5

600,995
19,735,412

47.3-119,450-119,450-0.6-20,089-20,089
19,595,871
48,461,069

-0.0
40.4
100.0

-7,006-7,006
19,728,405
41,753,010

0.0
47.3
100.0

-13,082-13,082-132,533
6,708,059

186.7
-0.7
16.1

7 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

2) Statement of Income for the 6 months ended December 31, 2007
(Consistent with Japanese GAAP)(Thousands of yen)
Items
Ⅰ. Operating revenues
Rental revenues (1)Gain from sales of properties
Ⅱ. Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI(1)-(2)+(3)Directors' fees
Asset management fees
Asset costodian fees
Administrative service fees
Allowance for uncollectible accounts
Bad debt expenses
Other operating expenses
Operating income
Ⅲ. Non-operating revenues
Interest revenues
Other non-operating revenues
Ⅳ. Non-operating expenses
Interest expenses
Finance related costs
Public listing related costs
Other non-operating expenses
Amortization of offering costs
Recurring profits
Income before income taxes
Income and other taxes
Tax adjustments
Net income
Retained earnings (begning balance)
Retained earnings (ending balance)

10th Fiscal Period(Six months
ended Dec. 2007)％
Amount
1,664,747
1,664,747
919,997730,292
308,501
1,242,957
3,300
99,39010,883
21,8844,003
2,052
48,191
744,750
8,286
2,517
5,769
267,232
255,593
8,302
1,585
0
1,750
485,804
485,804
605
3,676
481,52221
481,544

100.0

55.3

74.7

44.7
0.5

16.1

29.2
29.2

28.9
28.9

8 / 10th

9 Fiscal Period(Six months
ended Jun. 2007)％
Amount
1,637,306
1,452,853
184,452
854,437
675,995
278,036
1,054,893
3,300
88,9199,074
19,912
3,423
1,630
52,180782,869
1,943
1,683
259
182,391
166,590
12,246
1,766
38
1,750
602,421602,421
6,014-4,576600,98212
600,995

ChangesAmount

100.0

52.2

64.4

47.8
0.1

11.1

36.8
36.8

36.7
36.7

27,441
211,893-184,452
65,56054,29630,465
188,063
10,470
1,808
1,971
580
421
-3,989-38,118
6,342
833
5,509
84,84089,003-3,943-181-38-116,616-116,616-5,4098,252-119,459
8-119,450

%
1.7

7.7

17.8

-4.9
326.3

46.5

-19.4
-19.4

-19.9
-19.9

TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

3) Statement of Cash Flow for the 6 months ended December 31, 2007
(Consistent with Japanese GAAP)(Thousands of yen)Items

10th Fiscal Period(Six months
ended Dec. 2007)
Amount9th Fiscal Period(Six months
ended Jun. 2007)
Amount485,804
308,815
1,585
8,302
1,750
-2,517
255,593580-1,101-3,594-15,013-51,312-89,667-37,549-3,742
48,55940,642
4,926-4,939947,1222,517-270,625-5,804
673,210602,421278,302
1,766
12,246
1,750-1,683
166,590
3,423
2,203,994-115
28,9109,470-5,522
26,902-7,931-933-2,157-6,240-41,219
3,269,975
1,683-189,536-2,4373,079,685-940,773-4,877,779-1,750
5,099-77,146
303,384-5,588,965-2,777,362-1,034,286-2,827
106,595-137,094
82,253-3,762,721-1,000,000
7,648,000-115,000-1,585-8,302-593,487
5,929,625
1,013,870
2,141,069
3,154,940

1,000,000-8,842,004
7,750,000-1,766-12,246-635,222-741,239-1,424,275
3,565,345
2,141,069

Ⅰ

Cash flow from operating activities
Net income before taxes
Depreciation expenses
Public listing related costs
Finance related costs
Amortization of offering costs
Interest received
Interest paid
Increase or decrease in allowance for doubtful assets
Decrease due to sale of tangible assets in trust
Amortization of tenant leasehold and security deposits
Increase (-) or decrease in accounts receivable
Increase (-) or decrease in deposit payments
Increase (-) or decrease in consumption tax receivable
Increase (-) or decrease in guarantee money paid
Increase or decrease (-) in accrued consumption tax
Increase or decrease (-) in accounts payable
Increase or decrease (-) in accrued liabilities
Increase or decrease (-) in accrued expenses
Increase or decrease (-) in unearned revenues
Increase or decrease (-) in deposits
OthersSubtotal
Proceeds of interest
Payment of interest
Payment of corporate taxes
Cash flow from operating activities
Ⅱ Cash flow from investment activities
Payment for acquisition of tangible assets
Payment for acquisition of tangible assets in trust
Payment for acquisition of other intangible assets
Payment of security deposits & guarantee money
Proceeds of security deposits & guarantee money
Payment of security deposits & guarantee money in trust
Proceeds of security deposits & guarantee money in trust
Cash flow from investment activities
Ⅲ Cash flow from financing activities
Proceeds from short-term debt
Repayment of short-term debt
Proceeds of long-term debt
Repayment of long-term debt
Public listing related costs
Finance related costs
Payment of distributions
Cash flow from financing activities
Ⅳ Increase in cash and cash equivalents
Ⅴ Beginning balance of cash and cash equivalents
Ⅵ Closing balance of cash and cash equivalents

9 / 10TGR Investment Inc. (8963), Financial Summary for the 10th Fiscal Period

For further information:
Please contact Investor Relations at GrowthREIT Advisors, Ltd.
E-mail: ir.tgr@gr-ad.com Tel. +81-3-3238-5341
Disclaimer
This document contains translations of selected information provided in the Japanese language Financial Report(Kessan-Tanshin) of TGR Investment Inc. (hereinafter, “TGR”) dated February 19, 2008 and prepared under the timely
disclosure requirements of the Tokyo Stock Exchange for the 10th fiscal period (from July 1, 2007 to December 31, 2007).
This English language document was provided solely for the convenience of and reference by non-Japanese investors andneither corresponds to the original Japanese documents nor is it intended to constitute a disclosure document. The
Japanese language Financial Report should always be referred to as the original of this document.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to theconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial
statements, if there exist any discrepancies in the meaning or interpretation thereof between the original Japanese
documents and English statements contained herein, the original Japanese documents will always govern the meaning andinterpretation.
None of TGR, GrowthREIT Advisors, Ltd. (hereinafter, “GRA”) or any of their respective directors, officers, employees,
partners, shareholders, agents or affiliates will be responsible or liable for the completeness appropriateness or accuracy ofEnglish translations or the selection of the portions of any documents translated into English. No person has beenauthorized to give any information or make any representations other than as contained in this document in relation to thematters set out in this document, and if given or made, such information or representation must not be relied upon as
having been authorized by TGR, GRA or any of their respective directors, officers, employees, partners, shareholders,
agents or affiliates.
The financial statements are a translation of the audited financial statements of TGR, that were prepared in accordance withgenerally accepted accounting principles in Japan (Japanese GAAP) which may materially differ in certain respects fromgenerally accepted accounting principles and practices in other jurisdictions. In preparing the financial statements, certain
reclassifications and modifications have been made to the financial statements issued domestically in order to present themin a format that is more familiar to readers outside Japan.
Many provisions of this document contain forward-looking statements and information. We base these statements on ourbeliefs as well as our assumptions based solely on certain limited information currently involved known and unknown risks,
uncertainties and assumptions.
These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there
are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimatesreflected in such forward-looking statements, including without limitation: the general economy, market conditions, financial
markets including the performance of the real market, interest rate fluctuations, competition with our properties, and theimpact of changing regulations or taxation.
TGR does not intend, and is under no obligation, to update any particular forward-looking statement included in thisdocument. The forward-looking statements contained in this document speak only as of the date of release, February 19,
2008, and TGR does not undertake to revise those forward-looking statements to reflect events occurring after the date ofthis release.
10 / 10