June 15, 2015

Summary of Earnings Results
for the Eighteenth Fiscal Period(From November 1, 2014 to April 30, 2015)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982, hereinafter “Top REIT”) hereby
announces its earnings results for the fiscal period ended April 30, 2015 (Eighteenth fiscal period).

1. Earnings Results for the Eighteenth Fiscal Period
Eighteenth Fiscal Period (18th FP): From November 1, 2014 to April 30, 2015
Seventeenth Fiscal Period (17th FP): From May 1, 2014 to October 31, 2014
(1) Business Results
Operating
Revenue
Period ended
Apr 30, 2015 (18th FP)
Oct 31, 2014 (17th FP)

Period ended
Apr 30, 2015 (18th FP)
Oct 31, 2014 (17th FP)

Period-on-Period
ChangeMillions of yen

Operating
IncomePeriod-on-Period
ChangeMillions of yen(3.1%)
2.8%¥2,472¥2,563

(3.6%)
1.4%

Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit

Ratio ofNet Income toUnitholders’Equity(6.3%)
2.1%¥10,408¥11,107¥1,831¥1,954

Period-on-Period
ChangeMillions of yen¥5,612¥5,792Millions of yen

Ordinary
Income¥1,891¥1,955(3.3%)
2.2%

Ratio ofRatio of
Ordinary Income
Ordinary Income
to Operating
to Total Assets
Revenue

Yen

2.0%
2.1%

1.0%
1.0%

33.7%
33.8%

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets

93.0%
100.0%

1.8%
2.1%(Note) Net income per unit is rounded down to the nearest yen.

(2) Dividends
Dividend(excluding dividend in excess ofearnings)
Per unit
Total
Period ended
Apr 30, 2015 (18th FP)
Oct 31, 2014 (17th FP)(Note)

Yen¥9,680¥11,107

Dividend in Excess of Earning
Per unit

Millions of yen

Total
Yen

¥1,703¥1,954¥0¥0Millions of yen¥–¥–

Since a part of unappropriated retained earnings (126 million yen) and the correction amount of deferred tax liability (1 million yen) due to thechange in corporate tax rate following the tax system revisions in the fiscal year 2015, have been allocated as the reserve for reduction, there
are differences between Net Income and Total Amount of Dividends as well as Dividend per Unit and Net Income per Unit for the Period
ended April 30, 2015.

(3) Financial Position
Total Assets
As of
Apr 30, 2015 (18th FP)
Oct 31, 2014 (17th FP)

Millions of yen¥189,737¥200,551

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

49.0%
46.4%

¥528,400¥529,095

Millions of yen¥92,998¥93,120(Note) Net assets per unit are rounded down to the nearest yen.

1Yen

(4) Cash FlowsNet Cash
Provided by (Used in)Operating Activities
Period ended
Apr 30, 2015 (18th FP)
Oct 31, 2014 (17th FP)

Net Cash
Provided by (Used in)Investing Activities

Millions of yen¥10,725¥3,593

Net Cash
Provided by (Used in)
Financing Activities

Millions of yen

Cash and
Cash Equivalents
at End of Period

Millions of yen(¥1,515)(¥584)

Millions of yen(¥11,719)(¥1,979)¥5,843¥8,353

2. Earnings Forecasts for the Nineteenth Fiscal Period
Nineteenth Fiscal Period (19th FP): From May 1, 2015 to October 31, 2015
Operating
Revenue
Period ending
Oct 31, 2015 (19th FP)

Period ending
Oct 31, 2015 (19th FP)

Period-on-Period
ChangeMillions of yen

Operating
IncomePeriod-on-Period
ChangeMillions of yen¥2,178Period-on-Period
ChangeMillions of yen¥5,391(3.9%)Net
IncomePeriod-on-Period
ChangeDividend per Unit
(excluding dividend in excess ofearnings)(11.9%)(11.3%)¥9,700Millions of yen¥1,625

Ordinary
Income¥1,626(14.0%)

Dividend in Excess of Earnings
per Unit

Yen

Yen

¥0

(Reference) Estimated net income per unit for the 19th FP: ¥9,233(Note) With regard to the dividend per Unit, it is assumed that the internal reserve, etc. will be partially reversed. (approximately ¥82 million)

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 treasury investment units) issued and outstanding at the end of
fiscal period
As of April 30, 2015 (18th FP):
176,000 units
As of October 31, 2014 (17th FP):
176,000 units
b. Number of treasury investment units issued and outstanding at the end of fiscal period
As of April 30, 2015 (18th FP):
0 units
As of October 31, 2014 (17th FP):
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 Act. As of the publication of this report,
no auditing procedure under the Financial Instruments and Exchange Act has been completed for theearnings results.
* Explanation on the Appropriate Use of Earnings Forecasts, and Other Matters of Special Note
The earnings 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, the forecasts 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 15, 2015,
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 formonetary amounts and rounded to the nearest specified unit for percentage figures.

24. Asset Management Performance(1) Operations during the Eighteenth Fiscal Period
A. Brief Background of Top REIT
Top REIT was founded on November 2, 2005 based on the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, as amended) with Top REIT Asset Management Co., Ltd. (AssetManager) 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 andoutstanding totaling 145,500 units. As of the end of the eighteenth fiscal period (April 30, 2015), the total
number of investment units issued and outstanding stands at 176,000 units as a result of the issuance ofadditional investment units through the third-party allotment (9,500 units) on March 23, 2006, the public
offering (20,000 units) on November 25, 2013, and the third-party allotment (1,000 units) on December 13,
2013.
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 do so, 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 eighteenth fiscal period,
its portfolio consists of 20 properties with a total acquisition value of ¥190,484 million.
B. Investment Environment and Asset Management Performance<Investment Environment>(a)Economy in GeneralIn the eighteenth fiscal period, the Japanese economy showed some weakness in personal consumption due
in part to the prolonging of the repercussions from the rush demand prior to the consumption tax hike in
April 2014, but ongoing government economic policies and Bank of Japan monetary easing measures led
to strong corporate performance and corresponding improvement in the employment and income
environment continuing. The Japanese economy thus maintained a moderate recovery trend.
While U.S. interest rate trends, resurgence of the European debt problem, China’s growth stagnation,
resource-rich countries’ economic trends and other risk factors that may impact the Japanese economy
require close monitoring, such factors as anticipated improvement in consumer sentiment associated withcompanies’ capital investment increase and households’ income increase against the backdrop ofdepreciation of the yen and high stock prices suggest that the moderate recovery will continue.
(b)Real Estate Leasing Market[Office Buildings]
The office leasing market remained steady, as evident by such factors as the vacancy rate continuing totrend towards improvement in not only Tokyo but also Osaka, Fukuoka and other major office districts,
and the increasingly marked upward turn in rent and shortening of rent-free periods, centering on excellent
office buildings in central Tokyo. Based on continued assumption of robust office demand buoyed by suchfactors as improvement in the employment environment and corporate performance, the market as a wholeis expected to continue to be on a moderate recovery trend.
[Retail Properties]
Despite a temporary decline due to decrease in demand on the rebound of the rush demand prior to theconsumption tax hike and other factors being observed, personal consumption is showing signs of gradual
recovery and is thought to remain steady going forward, backed by improvement in the employment andincome environment. On an analysis by business category, strong showings are expected to continue fordepartment stores in central Tokyo, which are expected to benefit from growth in consumption driven by
inbound tourism, and for food supermarkets and other business categories that target a small trade area,
which are showing consecutive year-on-year increases in business performance. Among large-scale generalsupermarkets, on the other hand, are stores struggling with continuing year-on-year decreases in businessperformance. In this manner, the state of disparities arising in business performance depending on thecharacteristics of individual retail properties is thought to continue.

3

[Residential Properties]
Rental residential property construction starts in the Tokyo metropolitan area is forecast to remain at a low
level due in part to soaring land acquisition costs and construction costs. With improvement in theemployment and income environment and other factors, the trend of population in-migration exceedingout-migration continues in the Tokyo metropolitan area and major urban areas of Japan. As such, thefavorable supply-demand environment is expected to continue for highly-competitive rental residential
properties that are excellent in terms of location and quality. The rental residential property market is thus
thought to see strong showings in both occupancy rate and rent.
(c) Real Estate Transaction Market
In the current real estate transaction market, a positive investment stance is maintained overall, centering
on not only J-REITs but also private placement funds, business corporations, overseas investors who
anticipate a full-fledged recovery of the Japanese economy and other investors. This has led to ongoing
capital inflow into the market continuing. On the other hand, with information on sale of excellent
properties being limited, competition over property acquisition is increasingly intensifying and transaction
prices are on an upward trend. Investors’ expected cap rate is also on a downward trend. Recently, there
have even been survey findings that the expected cap rate of excellent office buildings in the “Marunouchi/
Otemachi District” is in the 3.5% to 4.0% range. With investors’ appetite for real estate investment
remaining strong against the backdrop of a favorable financing environment, the downward trend ofinvestment returns is seen to continue for the time being.
(d) Financial Market
The financial market in the eighteenth fiscal period saw both short-term and long-term interest rates remain
at a low level against the backdrop of ongoing monetary easing measures by the Bank of Japan. Recently,
volatility of long-term interest rates is increasing slightly, but the purchase of Japanese government bondsby the Bank of Japan in an aim to achieve inflation rate of 2% based on “quantitative and qualitative
monetary easing” is expected to continue. Therefore, the view is that interest rate levels will remain low ina stable manner for the time being and a financing environment that is favorable for also J-REITs willcontinue.
<Asset Management Performance >(a) Acquisition and Disposition of Assets
Top REIT began the eighteenth fiscal period with 22 properties (total acquisition value: ¥197,855 million).
With an aim to acquire highly-competitive and highly-profitable properties, Top REIT considered possible
acquisition of properties through not only the “optimal application of the sponsors’ strengths” but also by
utilizing established information channels to collect and carefully select from property sale information,with excellent office buildings located in central Tokyo at the core, as well as other asset classes, bydrawing on the characteristics of being a diversified REIT, and also considered revision of the existing
portfolio. During the eighteenth fiscal period, Top REIT transferred two properties, Kanda Park Plaza(disposition price: ¥5,350 million) and OAK PLAZA (disposition price: ¥2,900 million), each to third
parties on November 13, 2014, and used part of the proceeds from the disposition of these two properties toearly repayment of existing loans on November 28, 2014. In addition, on March 30, 2015, Top REIT madeadditional acquisition of compartmentalized ownership in Shiba-Koen Building (acquisition price: ¥375
million), resulting in Top REIT owning the entire property.
As a result, as of the end of the eighteenth fiscal period, Top REIT has a portfolio consisting of 20
properties (total acquisition value: ¥190,484 million).
(b) Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT is sustaining and increasing revenue over the medium tolong term by maintaining and improving tenant satisfaction (the “Tenants First” policy) and keeping
operational management costs at an appropriate level. Top REIT strived to improve tenant satisfaction andmaintain and improve high occupancy rates while sustaining trusted relationships with tenants anddiscerning tenant needs via property management companies. During the eighteenth fiscal period, Top
REIT continued to focus on tenant solicitation activities for successor tenants of Kanda Nishiki-cho 3chome Building, which has been a pending issue. As a result, the occupancy rate reached 76.1% at the endof the eighteenth fiscal period (end of April 2015), and is expected to further improve to 94.3% at the endof October 2015. Top REIT continues its effort to solicit successor tenants for lease-up.
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 each4

property. Based on asset management plans, Top REIT also carried out renewal construction and repair
work that contributed to enhancing the competitiveness of properties and maintaining and improving thefunctionality of properties, and construction that contributed to improving tenant satisfaction. Top REIT
also took steps to keep relevant costs at an appropriate level and conducted efficient management of
resources. Furthermore, as of the date of this document, with regard to one floor of Harumi Island Triton
Square Office Tower Y that had been used as a cafeteria for the employees of tenants, Top REIT
commenced construction work to convert the floor into office leasing space and is also concurrently
working to solicit tenants to move into the concerned leasing space after the construction work is complete.
C. Funding
Top REIT procures funds under a financial policy based on stable financial management. During theeighteenth fiscal period, with the disposition of Kanda Park Plaza and OAK PLAZA on November 13,
2014, Top REIT used the proceeds from the disposition and cash on hand to make early repayment totaling¥9,697 million of certain existing loans on November 28, 2014. Using cash on hand, Top REIT also repaid¥67.5 million in long-term loans on December 30, 2014 as agreed upon.
As a result, at the end of the eighteenth fiscal period, the balance of interest-bearing liabilities amounts to¥90,598 million (¥82,098 million in long-term loans (including the current portion) and ¥8,500 million in
investment corporation bonds (including the current portion)), and the ratio of interest-bearing liabilities tototal assets is 47.7%. Moreover, the ratio of long-term interest-bearing liabilities (including the current
portion) is 100%, while interest-bearing liabilities with fixed interest rates account for 51.4%.
Furthermore, after closing the eighteenth fiscal period, the investment corporation bonds due forredemption on June 4, 2015 were financed in the entire amount using long-term loans. As a result, as of thedate of this document, the balance of interest-bearing liabilities amounts to ¥90,598 million (¥90,598
million in long-term loans (including the current portion)).
The credit rating of Top REIT as of April 30, 2015 is as follows:
Credit Rating Agency
Rating [Outlook]
Issuer rating: A+ [Negative]
Rating and Investment Information, Inc.
Unsecured investment corporation bond rating(R&I)(No. 1 Unsecured Investment Corporation Bonds): A+(Note) No. 1 Unsecured Investment Corporation Bonds were fully redeemed on June 4, 2015.

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, 2014 to May 19, 20165

D. Earnings Results and Dividends
As a result of the asset management and operations described above, Top REIT recorded asset management
performance during the eighteenth fiscal period of ¥5,612 million in operating revenue, ¥2,472 million in
operating income and ¥1,891 million in ordinary income after deducting expenses concerning borrowings,
etc., and net income was ¥1,831 million.
As for dividends, with the aim of having an amount equivalent to profit dividends deducted as expenses
based on the 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”]), Top REIT decided that the maximum value arrived at when thenumber of units issued and outstanding (176,000 units) is multiplied by an integer, within the limit of thebalance of unappropriated retained earnings of the eighteenth fiscal period after deducting the amount ofdeferred tax liabilities being corrected due to the change in tax rate and the amount of part of gain on salesof real estate properties set aside as internal reserves as reserve for reduction entry, etc. by applying the“Special Provisions for Taxation in the Event of Advance Acquisition of Land, etc. in 2009 and 2010”(Article 66-2 of the Special Taxation Measures Act) that were transferred to the reserve for reduction entry,
would be paid out. Consequently, Top REIT declared a dividend per investment unit of ¥9,680.
(2) Outlook for the next fiscal periods
A. Management Policy and Issues to be addressed(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, leasing vacant spaces andsuch, as well as 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 for each 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 carryout systematic repair work and such to enhance the competitiveness of properties and to maintain andimprove the functionality 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 maintain or increase its dividends over the medium to long term by realizing external
growth through acquisition of new properties. Top REIT will continue to not only further utilize pipeline
support functions from sponsor companies, but also utilize various established information channels tocollect information on new properties based on detailed analysis of market environment of each asset
classes, while placing emphasis on primarily highly competitive office buildings. 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. Going forward,
Top REIT will work to reduce the risk of concentration on specific properties by steadily advancing further
external growth.
(c) Financial Strategy
Top REIT will continue to implement diversified and flexible fund procurement operations in preparation
for acquisition of new properties and refinancing of existing loans, etc. While securing mobility andflexibility in fund procurement, Top REIT will work to reduce the risk involved in fund procurement byextending borrowing periods and spreading out the repayment dates. At the same time, Top REIT will
manage the risk of 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 bemaintained by keeping the leverage 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
6

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.
(e) Significant Subsequent Events
There are none applicable.
[Reference Information]
Top REIT decided at its board of directors meeting held on May 21, 2015 to convene the sixth General
Meeting of Unitholders, scheduled for July 24, 2015.
<New Borrowings>
Top REIT has entered into loan agreements on June 1, 2015 as shown below. The proceeds from theborrowings were applied for the redemption of No. 1 Unsecured Investment Corporation Bonds on June 4,2015.

Long-term loan (Term Loan No. 24-(1))(1) Lender(2) Amount of borrowing(3) Interest rate(4) Execution date(5) Borrowing method(6) Principal repayment date
(7) Principal repayment method(8) Collateral, etc.

Sumitomo Mitsui Trust Bank, Limited.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
The Bank of Fukuoka, Ltd.
¥4,000 million
0.430% (fixed by the interest-rate swap agreement
until principal repayment date)June 3, 2015
Borrowing based on the loan agreement concluded onJune 1, 2015
May 29, 2020
Bullet repayment on the principal repayment dateUnsecured and unguaranteed

Long-term loan (Term Loan No. 24-(2))(1) Lender(2) Amount of borrowing(3) Interest rate(4) Execution date(5) Borrowing method(6) Principal repayment date
(7) Principal repayment method(8) Collateral, etc.

Sumitomo Mitsui Trust Bank, Limited.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo Mitsubishi UFJ Ltd.
Resona Bank, Ltd.
The Bank of Fukuoka, Ltd.
¥4,500 million
0.825% (fixed by the interest-rate swap agreement
until principal repayment date)June 3, 2015
Borrowing based on the loan agreement concluded onJune 1, 2015
May 31, 2022
Bullet repayment on the principal repayment dateUnsecured and unguaranteed7

B. Outlook for the Nineteenth and Twentieth Fiscal Periods
The earnings forecasts for the nineteenth fiscal period (from May 1, 2015 to October 31, 2015) and thetwentieth fiscal period (from November 1, 2015 to April 30, 2016) are as follows:
Please refer to the next page for the assumptions of the earnings forecasts.
Nineteenth Fiscal Period

Twentieth Fiscal Period(From May 1, 2015 to Oct 31, 2015)(From Nov 1, 2015 to Apr 30, 2016)

Operating Revenue¥5,391million¥5,407million

Operating Income¥2,178million¥2,242million

Ordinary Income¥1,626million¥1,708million

Net Income¥1,625million¥1,707million

Dividend per Unit
(excluding dividend in excess of earnings)¥9,700 (Note 2)¥9,700

Dividend in Excess of Earnings per Unit

(Note 1)

(Note 2)¥0¥0The earnings forecasts represented above are the current estimated figures calculated basedon certain assumptions. Accordingly, the actual operating revenue, operating income,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.
With regard to the dividend per unit of nineteenth fiscal period, it is assumed that an
approximately ¥82 million of internal reserve, etc. will be reversed.

8Assumptions for Earnings Forecasts for the Nineteenth Fiscal Period (from May 1, 2015 to October 31,2015) and the Twentieth Fiscal Period (from November 1, 2015 to April 30, 2016)
Item
Assumptions• Nineteenth fiscal period (19th FP): May 1, 2015 – October 31, 2015 (184 days)
Accounting
Period• Twentieth fiscal period (20th FP): November 1, 2015 – April 30, 2016 (182 days)• It is assumed that portfolio assets will be the 20 properties Top REIT owns as of the date
Portfolio Assetsof this document. The actual circumstances may change depending on the acquisition or
disposal of other properties.
Number of• It is assumed that the number of investment units issued and outstanding will be 176,000
Investment Units
units, which is the number as of the date of this document, and it is assumed that noIssued andissuance of new investment units will be made through April 30, 2016.
Outstanding• It is assumed that the balance of interest-bearing liabilities is ¥90,598 million, which isthe amount as of April 30, 2015.
• For the nineteenth fiscal period, the ¥8,500 million in investment corporation bonds due
for redemption on June 4, 2015 were financed in the entire amount using long-term loans.
Interest-Bearing
It is assumed that the ¥4,251 million in loans due for repayment on September 30, 2015
Liabilities
will be fully refinanced. It is also assumed that, of long-term loans, ¥67 million will be
repaid on June 30, 2015 as agreed upon.
• For the twentieth fiscal period, it is assumed that the ¥19,527 million in loans due forrepayment on February 29, 2016 will be fully refinanced. It is also assumed that, of longterm loans, ¥67 million will be repaid on December 30, 2015 as agreed upon.
• For rent revenue from existing properties, Top REIT takes into account the execution of
new lease agreements and cancellation of lease agreements that have been finalized andscheduled as of the date of this document, as well as such factors that may cause
fluctuations as risks associated with rent revision with tenants due for rent revision or
Operatingcontract renewal, in light of recent real estate leasing market conditions.
Revenue• For Kanda Nishiki-cho 3-chome Building, Top REIT expects revenue for the spaces to beleased for which lease agreements have been executed as of the date of this document.
Furthermore, it is assumed that the occupancy rate of the property stands at 76.1% as ofthe last day of August 2015, 81.0% as of the last day of September 2015, and 94.3% as ofthe last day of October 2015 onward.
• Top REIT adopts a method of treating property, city planning and depreciable asset taxes,
etc. (the “property tax, etc.”) on real estate, etc. it owns, as expenses related to the rent
business in the amount corresponding to the management period out of the assessed anddetermined taxation amount. In addition, as for the acquisition of real estate or trust
beneficiary interests in real estate, the adjustments equivalent to property tax, etc. forfiscal year of the acquisition paid to the transferor will be included in acquisition costs,
and thus will not be recorded as expenses in the corresponding period.
• Property tax, etc. is assumed to be ¥611 million for the nineteenth fiscal period and ¥611
Operatingmillion for the twentieth fiscal period.
Expenses• Depreciation and amortization is assumed to be ¥1,190 million for the nineteenth fiscal
period and ¥1,187 million for the twentieth fiscal period.
• Repair expenses for buildings, etc. may vary greatly from the forecasted amount due tovarious reasons, including that emergency repair expenses may possibly arise due to
unexpected factors causing building damage, etc. and that repair expenses vary largely
depending on the fiscal period as they are expenses not accrued periodically.
• Management operation fees are assumed by considering historical data and the detail ofmanagement contracts.
• For the nineteenth fiscal period, non-operating expenses are assumed to be ¥553 million,of which interest expenses on loans and investment corporation bonds (including related
expenses) are expected to be ¥544 million and amortization of investment unit issuance
Non-Operating
expenses is expected to be ¥6 million.
Expenses• For the twentieth fiscal period, non-operating expenses are assumed to be ¥535 million,of which interest expenses on loans (including related expenses) are expected to be ¥526
million and amortization of investment unit issuance expenses is expected to be ¥6
million.
9•Dividends (dividend per unit) are calculated based on the dividend policy stipulated in
Top REIT’s Articles of Incorporation.
For the nineteenth and twentieth fiscal period, it is assumed that net income will be fully
distributed as dividends (excluding fractions).
For the nineteenth fiscal period, it is assumed that part (approximately ¥82 million) of theinternal reserves of reserve for reduction entry, etc. totaling approximately ¥266 million(balance at the end of April 2015) will be reversed and applied to dividends.

Dividend per
Unit•(excluding dividend inexcess of earnings)•

Dividend in
Excess ofEarnings per Unit•

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,
listing regulations of Tokyo Stock Exchange, 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.

Other

•

10

5. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Seventeenth Fiscal Period(as of October 31, 2014)

Eighteenth Fiscal Period(as of April 30, 2015)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
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
Leasehold right in trust
Other intangible assets in trust
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
Investment unit issuance expenses
Total deferred assets
Total assets

11

4,427,277
3,926,308
219,407
360,75417
08,933,766

2,046,803
3,796,885
218,025
298,13715
13
6,359,881

1,158,083(241,752)
916,330
5,559(3,469)2,089
20,309(12,582)
7,726
6,609
(2,562)
4,047
4,888,525
66,838,553(17,163,781)
49,674,771
802,038(335,874)
466,164
312,926(182,083)
130,843
279,398(172,805)
106,593
134,748,836
190,945,929

1,222,605(258,166)
964,439
5,559(3,550)2,009
20,309(13,177)
7,131
6,609
(3,050)3,559
5,209,643
66,198,127(17,863,648)
48,334,479
801,461(353,838)
447,622
310,592(204,492)
106,099
303,189(179,472)
123,717
127,651,793
182,850,494

7,348
1,924
42
9,315

7,348
1,650
21
9,019

10,000372,029
246,400
628,429
191,583,674

10,000244,946
241,210496,157
183,355,671

7,349
26,71434,063
200,551,504

1,837
20,03521,873
189,737,426

(Unit: thousand yen)
Seventeenth Fiscal Period(as of October 31, 2014)

Eighteenth Fiscal Period(as of April 30, 2015)

Liabilities
Current liabilities
186,273
8,500,000
10,210,000
256,812110,509670
223,962
801,889
5,899
20,296,018

352,904
8,500,000
23,913,000
231,359
103,139764
85,700704,242
3,711
33,894,820

Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Long-term advances received
Derivatives liabilities

81,652,500
127,4295,298,658
11,76435
44,37758,185,000
170,568
4,373,971
72,345－42,216

Total noncurrent liabilities
Total liabilities

87,134,766
107,430,784

62,844,102
96,738,923

91,143,100

91,143,100

51,87351,87351,88051,8801,954,943
2,006,816

1,832,069
1,883,949

93,149,916

93,027,049(29,195)

Operating accounts payable
Current portion of Investment corporation bondCurrent portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total Voluntary retained earnings
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets(29,195)
93,120,720(28,546)(28,546)
92,998,503

Total liabilities and net assets

200,551,504

189,737,426

12

(2) Statements of Income(Unit: thousand yen)
Seventeenth Fiscal Period(May 1, 2014 –October 31, 2014)

Eighteenth Fiscal Period(November 1, 2014 –April 30, 2015)

Operating revenue
Rent revenue – real estate

5,762,641

Other lease business revenue

29,981

31,369－297,259

5,792,623

5,612,443

2,721,218

2,630,481

369,341

341,711

Gain on sales of real estate properties
Total operating revenue

5,283,814

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee

9,009

8,622

Administrative service fees

69,08567,447

Directors’ compensations

6,300

6,300

Audit fee

10,00010,000

Other operating expenses

44,46075,8283,229,416

3,140,392

2,563,206

2,472,051

1,579

1,025

Total operating expenses
Operating income
Non-operating income
Interest income

563

611

3,979

424

820

－

6,942

2,061

Interest expenses

402,362355,378

Interest expense on investment corporation bonds

42,96542,034

Reversal of dividends payable
Insurance income
Other
Total non-operating income
Non-operating expenses

Amortization of investment corporation bond issuance costs
Borrowing related expenses

5,511

5,511

154,614170,089

Amortization of investment unit issuance expenses

6,678

6,678

Other

2,137

2,440

614,271582,133

Ordinary income

1,955,878

1,891,979

Income before income taxes

1,955,878

1,891,979

Total non-operating expenses

Income taxes – current

963

944

Income taxes – deferred(9)59,068

Total income taxes
Net income
Retained earnings brought forward

954

60,013

1,954,924

1,831,965

19

103
1,832,069

1,954,943

Unappropriated retained earnings (undisposed loss)13

(3) Statements of Changes in Net Assets (Unitholders’ Equity)
For the period from May 1, 2014 to October 31, 2014 (17th fiscal period)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

91,143,100

Voluntary retained earnings
Total
Reserve for
Voluntary
reduction entry
retainedearnings

Total surplus

Totalunitholders’equity49,95849,958

1,913,997

1,963,956

93,107,056

1,914

1,914

(1,914)－－(1,912,064)(1,912,064)(1,912,064)

1,954,924

1,954,924

1,954,924

－

1,914

1,914

40,94542,86042,86091,143,100

51,87351,873

1,954,943

2,006,816

93,149,916

Valuation and translation
adjustments

Balance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

Unappropriatedretainedearnings(undisposed
loss)

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments(25,275)(25,275)

Total net
assets93,081,780－(1,912,064)
1,954,924(3,920)(3,920)(3,920)(3,920)(3,920)38,940(29,195)(29,195)

93,120,720

14For the period from November 1, 2014 to April 30, 2015 (18th fiscal period)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

91,143,100

Voluntary retained earnings
Total
Reserve for
Voluntary
reduction entry
retainedearnings

Total surplus

Totalunitholders’equity51,87351,873

1,954,943

2,006,816

93,149,916

7

7

(7)

－

－

(1,954,832)(1,954,832)(1,954,832)

1,831,965

1,831,965

1,831,965－

7

7(122,874)(122,866)(122,866)

91,143,100

51,88051,8801,832,069

1,883,949

93,027,049

Valuation and translation
adjustments

Balance at the
beginning of theperiodChanges of items
during the period
Reserve for
reduction entry
Dividends fromsurplus
Net income
Net changes of
items other thanunitholders’equity (net)Total changes of
items during theperiodBalance at the endof the period

Unappropriatedretainedearnings(undisposed
loss)

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments(29,195)(29,195)

Total net
assets93,120,720－(1,954,832)
1,831,965
649

649

649

649

649

(122,216)(28,546)(28,546)

92,998,503

15

(4) Statements of Cash Distributions
For the period
from May 1, 2014
to October 31, 2014

For the period
from November 1, 2014
to April 30, 2015

Amount (yen)(Note 1)

Amount (yen)(Note 2)

I. Unappropriated retained earnings

1,954,943,312

1,832,069,089

II. Total Amount of Dividends

1,954,832,000

1,703,680,000<11,107><9,680>7,879

128,233,041

103,433

156,048<Dividend per unit>
III. Voluntary retained earnings
Reserve for reduction entry
IV. Retained earnings brought forward(Note1)(Note2)

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, theamounts of dividends are limited to the amounts of income. The article also stipulates the policy that “Top REIT
shall distribute amount in excess of the amount equivalent to 90% of its distributable profits as stipulated in Article
67-15 of the Act on Special Measures Concerning Taxation.” Based on these policies, Top REIT decided on a total
distribution of 1,954,832,000 yen as distribution of income for the period. This is the maximum value arrived atwhen the number of units issued and outstanding (176,000 units) is multiplied by an integer, within the limit of thebalance of unappropriated retained earnings of the seventeenth fiscal period, after deducting the amount of deferred
tax liabilities being corrected due to the change in tax rate which would be transferred to the reserve for reduction
entry.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.
In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, theamounts of dividends are limited to the amounts of income. The article also stipulates the policy that “Top REIT
shall distribute amount in excess of the amount equivalent to 90% of its distributable profits as stipulated in Article
67-15 of the Act on Special Measures Concerning Taxation.” Based on these policies, Top REIT decided on a total
distribution of 1,703,680,000 yen as distribution of income for the period. This is the maximum value arrived atwhen the number of units issued and outstanding (176,000 units) is multiplied by an integer, within the limit of thebalance of unappropriated retained earnings of the eighteenth fiscal period, after deducting the amount of deferred
tax liabilities being corrected due to the change in tax rate and the amount of internal reserve pursuant to Article 66-2of the Special Taxation Measures Act which would be transferred to the reserve for reduction entry.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.

16

(5) Statements of Cash Flows(Unit: thousand yen)
Seventeenth Fiscal Period(May 1, 2014 –October 31, 2014)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of trademark
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income and interest on securities
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease in property, plant and equipment in trust due to disposal
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

Eighteenth Fiscal Period(November 1, 2014 –April 30, 2015)

1,955,878
1,202,801
21
5,511
6,678
(1,579)445,328(25,992)
137,402(7,615)－
15,974
4,086
223,962
6,218
120,345(29,376)

1,891,979
1,186,513
21
5,511
6,678
(1,025)
397,412
1,382－
62,617
7,734,728(5,696)(25,453)(138,262)(97,646)
127,083(16,236)

4,059,646
1,579(466,150)(1,145)
3,593,929

11,129,607
1,025(404,780)(851)
10,725,000(3,587)(255,766)
26,413－
160,435(511,732)(584,237)(388,632)(245,384)
43,239(100)
285,796(1,210,483)(1,515,565)

Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities

4,000,000(4,067,500)(1,912,064)(1,979,564)－(9,764,500)(1,954,832)(11,719,332)

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

1,030,128
7,323,458(2,509,897)
8,353,586

Cash and cash equivalents at end of period

8,353,586

5,843,689

SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
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

176. Portfolio Data
As of the end of April, 2015
Asset Class

Area

Central Tokyo
OfficeBuilding

Property Name

Acquisition
Price

Appraisal Value at
End of Period

NEC Head Office Building
Harumi Island Triton Square Office Tower Y
Akasaka Oji Building
Shiba-Koen Building
Harumi Island Triton Square Office Tower Z
Kanda Nishiki-cho 3-chome Building
Shinkawa Chuo Building
Shinjuku EAST Building
Ginza Oji Building(million yen)
41,95033,0009,660
6,145
20,00012,700
5,610
5,800
2,000

(million yen)
54,50027,2009,610
4,110
12,300
8,310
6,150
6,550
2,120

Investment
Breakdown(Note 1)
(%)
31.0
15.5
5.5
2.3
7.0
4.7
3.5
3.7
1.2

Tokyo
Faret East Building
2,091
2,630
1.5
Metropolitan Area
Subtotal (10 properties)
138,956
133,480
76.0
Sagamihara Shopping Center
12,0009,080
5.2
Ito-Yokado Higashi-Narashino Store
8,900
3,990
2.3
Tokyo
Metropolitan Area Musashiurawa Shopping Square
4,335
4,140
2.4
RetailKojima ×Bic Camera Kashiwa Store
4,500
4,930
2.8
Property
Other
MEL Building
1,210
1,300
0.7
Major Cities
Subtotal (5 properties)
30,94523,440
13.3
Central Tokyo
Top Residence Nihonbashi Kayabacho
2,400
2,860
1.6
Fukasawa House Towers H&I
10,6357,810
4.4
EcologyToyosuProcentury
5,160
5,460
3.1
Residential Tokyo
Property
Metropolitan Area Impress Musashi-Koganei
1,223
1,370
0.8
Top Residence Yoga
1,165
1,300
0.7
Subtotal (5 properties)
20,58318,800
10.7
Total (20 properties)
190,484
175,720100.0(Note 1) The investment breakdown is the ratio of the appraisal value at the end of the period for the applicable property or the applicable
asset class to the sum total of the appraisal value at the end of the period for all properties in the portfolio and is rounded to thefirst decimal place.

18

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.
Shusaku Ohashi, Director, General Manager, Finance Department+81-3-3243-2181
Contact for inquiries in English:
Top REIT Asset Management Co., Ltd.
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.

19