June 13, 2013

Summary of Earnings Results for the
Fourteenth Fiscal Period(From November 1, 2012 to April 30, 2013)
Top REIT, Inc. (listed on the Tokyo Stock Exchange with securities code 8982) hereby announces its earnings
results for the fiscal period ended April 30, 2013 (fourteenth fiscal period).

1. Earnings Results for the Fourteenth Fiscal Period
Fourteenth Fiscal Period: From November 1, 2012 to April 30, 2013
Thirteenth Fiscal Period: From May 1, 2012 to October 31, 2012
(1) Business Results

Fourteenth
Fiscal Period
Thirteenth
Fiscal Period

Fourteenth
Fiscal Period
Thirteenth
Fiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,844mn

3.7%¥2,447mn(9.3%)¥1,823mn(8.9%)¥5,636mn(1.0%)¥2,697mn(2.7%)¥2,002mn(1.3%)Net
IncomePeriod-on-Period
ChangeNet
Incomeper Unit¥1,822mn(8.9%)¥11,759

2.2%

1.0%

31.2%

¥2,001mn

0.1%¥12,912

2.4%

1.1%

35.5%

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)

Fourteenth
Fiscal Period
Thirteenth
Fiscal Period

Dividend in
Excess ofEarnings
per Unit

Total Amount of
Dividends in
Excess ofEarnings

Dividend
Payout Ratio

Ratio of
Dividends to
Net Assets¥11,759¥1,822mn¥0¥–mn

100.0%

2.2%¥12,912¥2,001mn¥0¥–mn

100.0%

2.4%(3) Financial Position

Fourteenth
Fiscal Period
Thirteenth
Fiscal Period

Total Assets

Net Assets

Ratio of
Unitholders’ Equity to
Total Assets

Net Assets per Unit

¥187,003mn¥84,127mn

45.0%¥542,758¥188,440mn¥84,304mn

44.7%¥543,900(Note) Net assets per unit is rounded to the nearest yen.

1(4) Cash Flows

Fourteenth
Fiscal Period
Thirteenth
Fiscal Period

Net Cash
Provided by (Used in)Operating Activities

Net Cash
Provided by (Used in)Investing Activities

Net Cash
Provided by (Used in)
Financing Activities

Cash and
Cash Equivalents
at End of Period¥2,470mn(¥1,775mn)(¥2,838mn)¥4,700mn¥3,187mn(¥293mn)(¥2,016mn)¥6,845mn

2. Forecast of Earnings Results for the Fifteenth Fiscal Period
Fifteenth Fiscal Period : From May 1, 2013 to October 31, 2013
FifteenthFiscal Period

FifteenthFiscal Period

Operating
Revenue

Period-on-Period
ChangeOperating
IncomePeriod-on-Period
ChangeOrdinary
IncomePeriod-on-Period
Change¥5,125mn(12.3%)¥2,112mn(13.7%)¥1,504mn(17.5%)Net
IncomePeriod-on-Period
Change(excluding dividend in excess of earnings)

Dividend in Excess of Earnings
per Unit¥1,503mn(17.5%)¥9,700¥0

Dividend per Unit

(Reference) Estimated net income per unit for the fifteenth fiscal period: ¥9,700

3. Others(1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements of Revisions
a. Changes in accounting policies due to amended accounting standards: No
b. Changes in accounting policies due to other factors from a. above:Noc. Changes in accounting estimates:
Nod. Restatements of revisions:No(2) Number of Investment Units Issued and Outstanding
a. Number of investment units (including own investment units) issued and outstanding at end of fiscal period
Fourteenth Fiscal Period:
155,000 units
Thirteenth Fiscal Period:
155,000 units
b. Number of own investment units issued and outstanding at end of fiscal period
Fourteenth Fiscal Period:
0 units
Thirteenth Fiscal Period:
0 units* Statement on Implementation Status of Audit Procedure
This Summary of Earnings Results (“Kessan Tanshin” in Japanese) report is outside the scope of theauditing procedure under the Financial Instruments and Exchange Law. As of the publication of this report,
no auditing procedure under the Financial Instruments and Exchange Law has been completed for theearnings results.
* Explanation on the Appropriate Use of Earnings Results Forecasts, and Other Matters of Special Note
The earnings results forecasts and other forward-looking statements contained in this document are 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.
This summary of earnings results is translated from the Japanese “Kessan Tanshin” report, dated June 13, 2013,
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
A. Brief Background of Top REIT
Top REIT, Inc. (Top REIT) was founded on November 2, 2005 based on the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, as amended) with Top REIT Asset Management Co., Ltd.
(Asset Manager) as the incorporator, and listed on the Real Estate Investment Trust Section of the Tokyo
Stock Exchange (TSE) (Securities Code: 8982) on March 1, 2006 with the number of investment units issued
and outstanding totaling 145,500 units. Later, Top REIT issued additional investment units (9,500 units)
through a third-party allotment on March 23, 2006. As of the end of the fourteenth fiscal period (April 30,2013), the total number of investment units issued and outstanding stands at 155,000 units.
Top REIT works to conduct management with the aim of maximizing the investment value for its unitholders
by securing stable revenues over the medium to long term and achieving steady growth of its portfolio. To doso, Top REIT focuses on the two strategies of “skilled management of a diversified portfolio” and “optimal
application of the sponsors’ strengths.” As of the end of the fourteenth fiscal period, its portfolio consists of
19 properties with a total acquisition value of ¥185,555 million.
B. Investment Environment and Management Performance<Investment Environment>(a)Economy in General
The Japanese economy turned to positive growth from the third quarter of fiscal 2012 due in part to theexport industry improving as a result of correction of the appreciation of the yen and rise in stock prices
since inauguration of a new administration at the end of 2012, and such has heightened expectations for
economic recovery. However, with a strong aspect of expectations preceding progress, the correction of theappreciation of the yen and high stock prices have yet to lead to increase in new capital investment andemployment, increase in wages or other definite corporate movements, but rather have had limited impact
on the real economy. Furthermore, the financial market is showing signs of instability, such as wild
fluctuations in long-term interest rates due to the Bank of Japan’s massive purchases of Japanese
government bonds and abolition of maturity limits for purchases and the market entering a correction phaseof rapid movements toward depreciation of the yen and high stock prices. Consequently, the Japanese
government’s implementation of a growth strategy for stimulation of the economy and promotion offinancial soundness and the movements toward withdrawal from monetary easing in the U.S. are being
watched. While facing the risk of fluctuations in long-term interest rates, the prospects are further
improvement in the export environment through pickup in the overseas economy and depreciation of theyen, as well as increase in public investment with the full-scale implementation of emergency economic
measures. In addition, last-minute surge in demand for housing and other consumer durables prior to theconsumption tax hike is also likely to generate through the second half of the fiscal year. These lead to
expectations for moderate economic recovery.
(b)Real Estate Leasing Market[Office Buildings]
With expectations for economic growth increasing, some companies showed movement to lease more floorarea within the same property upon a review of the offices that were strongly undersized from having
largely reduced space in the wake of the Lehman Shock. In addition, relocations from old buildings and lossof old buildings since the Great East Japan Earthquake kept supply down. The vacancy rate of officebuildings in central Tokyo thus trends toward moderate improvement. On the other hand, the rent level incentral Tokyo showed signs of bottoming or having bottomed out for some large-scale office buildings thatare relatively new and have high specifications. However, with many office buildings forced to continue
rent adjustment owing to tenant relocations causing increase in vacancies and other reasons, an overall
sense of bottoming out is yet to be seen. Only slowly after full-fledged recovery of corporate earnings is itreflected in office building rent as hitting bottom or recovering further and so is thought to take some timeyet.
3[Retail Properties]
Fiscal 2012 retail store sales value increased year-on-year for the first time in two years. This was mainly
attributable to increase in motor vehicles retail sales and increase in food and beverages retail sales due inpart to brisk convenience store sales, which were from the effects of the eco-car subsidy program, on therebound of the impact of the Great East Japan Earthquake, etc. Currently, too, the asset effect, such as highstock prices, have led to consumer confidence being on a trend of improvement and strong movement being
found in high-price goods and consumer durables mainly among the wealthy. In the medium to long term,
however, large growth of the domestic retail market is thought to be unlikely in light of decrease in the
population and other factors. Under such circumstances, major retailers are forecast to accelerate mergers
and business alliances in view of strengthening the management base to survive the competition that is
intensifying not only with other companies within the same industry but also online operators that areleading the ever-growing e-commerce market. This calls for a close watch of future trends.
[Residential Properties]
New supply in 2013 will be slightly more than 2012 when there was the impact of the Great East Japan
Earthquake, but will be limited to supply in highly convenient locations and thus is expected to remain at alow level. On the other hand, while decrease in the young, a high proportion of which reside in rental
properties, will serve as a downward pressure, demand is forecast to gradually increase due to such factors
as population influx to large cities, division of households and decrease in the capacity to acquire for-salehousing. Therefore, supply-demand balance in major cities is generally forecast to continue to remainunchanged and rent is forecast to also remain stable.
(c) Real Estate Transaction Market
The number of transactions overall is on the rise because, while information on transaction properties
available for sale are in short supply, there was a series of cases of acquisition of a large number ofproperties resulting from new listing or capital increase through public offering by J-REITs backed by afavorable financing environment, as well as high-price sales transactions of large-scale office buildings
owned by major manufacturers. Acquisition of real estate by J-REITs is forecast to continue to increase,but there will be no large increase in sale properties distributed to the real estate market because buyers are
assumed to remain selective and movement to sell quickly will become limited with easing of the financial
environment. As a result, the supply-demand situation is forecast to still remain tight.
<Asset Management Performance >(a)Acquisition and Disposition of Assets
Top REIT began the fourteenth fiscal period with 18 properties (total acquisition value: ¥184,345 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. By doing so, Top REIT acquired MEL Building,an urban retail property located in Sendai City, Miyagi Prefecture for ¥1,210 million. Thus, the number ofproperties owned by Top REIT expanded to 19 properties (total acquisition value: ¥185,555 million) as ofthe end of the fourteenth fiscal period.
(b)Management and Maintenance of Portfolio Assets
The basic asset management strategy of Top REIT centers on sustaining and increasing revenue over the
medium to long term by maintaining and improving tenant satisfaction (the “Tenants First” policy) andkeeping operational management costs at an appropriate level. Top REIT strived to improve tenantsatisfaction by sustaining relationships of trust with tenants and discerning tenant needs via property
management companies in order to maintain and improve high occupancy rates.
Particularly in the fourteenth fiscal period, positioning solicitation of successor tenants to Harumi Island
Triton Square Office Tower Y as a top priority issue, Top REIT focused on tenant solicitation activities.
Despite conducting solicitation activities under still harsh real estate leasing market conditions, certain
4

results managed to be achieved, such as executing lease agreements for about 1,534 tsubos with threetenants, including those contracting to lease more floor area within the same property, and the occupancyrate, which was 41.8% after the exit of the major tenant, also being expected to improve to 62.5% at the endof June 2013. In addition, at Faret East Building, execution of a lease agreement for the about 180 tsubosthat had been vacant resulted in full occupancy from May 1, 2013. Top REIT is continuously focusing on
successor tenant solicitation and leasing activities.
Regarding maintenance, Top REIT followed up on ensuring that it had an appropriate grasp of theoperational management conditions and steady implementation of asset management plans for each
property. Top REIT also carried out renewal construction and repair work that contribute to enhancing thecompetitiveness of properties and maintaining and improving the functionality of properties based on asset
management plans, took steps to keep relevant costs at an appropriate level, and conducted efficientmanagement of resources.
C. Procurement of Funds
Top REIT procures funds by adopting a financial policy that is based on stable financial management. In
the fourteenth fiscal period, ¥9,800 million in long-term loans payable due for repayment on November 30,
2012 was refinanced with ¥7,000 million in long-term loans payable (loan period: 2 years and 10 months,
repayment date: September 30, 2015) and ¥2,800 million in short-term loans payable (loan period: 4 months,
repayment date: March 27, 2013) on the same date.
Of the ¥9,300 million long-term loan payable due for repayment on March 27, 2013, and the ¥2,800 million
short-term loan payable, totaling ¥12,100 million, a part of principal (¥2,000 million) was repaid using cashon hand and ¥10,100 million was refinanced with ¥4,670 million in long-term loans payable (loan period: 5
years, repayment date: March 27, 2018) , ¥2,355 million in long-term loans payable (loan period: 5 years,
repayment date: March 27, 2018) , and the ¥3,075 million in long-term loans payable (loan period: 2 years
and 6 months, repayment date: September 30, 2015) on the same date in order to extend the remaining period
of interest-bearing liabilities, and to spread out repayment dates.
Moreover, on April 30, 2013, Top REIT newly procured ¥1,230 million through long-term loans payable(loan period: 5 years, repayment date: April 30, 2018) in order to fund the acquisition of MEL Building.
Top REIT also repaid ¥67 million of the long-term loans payable as agreed using cash on hand on December
28, 2012.
As a result, at the end of the fourteenth fiscal period, the total amount of interest-bearing liabilities stands at
96,065 million (¥87,565 million in long-term loans (including the current portion) and ¥8,500 million in
investment corporation bonds), and the ratio of interest-bearing liabilities to total assets is 51.4%. Moreover,
the ratio of long-term interest-bearing liabilities (including the current portion) is 100%, while interestbearing liabilities with fixed interest rates account for 44.1%.
The credit ratings of Top REIT as of April 30, 2013 are as follows:
Credit Rating Agency
Rating [Outlook]
Issuer rating: Baa1 [Negative]
Moody’s Japan K.K.
Senior unsecured long-term rating (No. 1 Unsecured(Moody’s)
Investment Corporation Bonds): Baa1 [Negative]
Issuer rating: A+ [Stable]
Rating and Investment Information, Inc.
Unsecured investment corporation bond rating (No. 1(R&I)
Unsecured Investment Corporation Bonds): A+
Moreover, Top REIT conducted shelf registration for investment corporation bonds, as indicated below, inorder to secure flexible procurement of long-term funds.
[Overview of Shelf Registration]
Object of Shelf Registration
Investment corporation bonds(excluding short-term corporation bonds)

Amount to be Issued

Scheduled Period of Issue¥100,000 million

From May 20, 2012 to May 19, 20145

D. Business Results and Dividends
As a result of the asset management and operations described above, Top REIT recorded asset management
performance during the fourteenth fiscal period of ¥5,844 million in operating revenue, ¥2,447 million in
operating income and ¥1,823 million in ordinary income after deducting expenses concerning borrowings,
etc., and net income was ¥1,822 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 entire amount of unappropriated retained earnings ofthe fourteenth fiscal period, excluding fractions of the dividend per investment unit that are less than ¥1,
would be paid out. Consequently, Top REIT declared a dividend per investment unit of ¥11,759.

5. Management Policy and Future Issues(a)Management Strategy for Existing Properties
Top REIT will continue to follow its basic asset management strategy that centers on sustaining andincreasing revenue over the medium to long term by maintaining and improving tenant satisfaction (the“Tenants First” policy) and keeping operational management costs at an appropriate level. Under thisstrategy, Top REIT will focus on sustaining relationships of trust with tenants, leasing vacant spaces andsuch, as well as striving to maintain stable occupancy rates over the medium to long term.
Continuously positioning the successor tenant solicitation activities at Harumi Island Triton Square OfficeTower Y as a top priority issue, Top REIT will focus on solicitation activities in order to solidify theprospects of a successor tenant as early as possible by selecting from broad-ranging and highly-potential
candidates while continuing to approach candidates that are currently considering tenancy.
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 carry out
systematic repair work and such to enhance the competitiveness of properties and to maintain and improve
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 increase its dividends over the medium to long term by realizing external growth throughacquisition 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 to collect information on
new properties based on detailed analysis of market environment of each asset classes, while placingemphasis on primarily highly competitive office buildings. By doing so, Top REIT aims to expand theportfolio size while improving its quality.
Furthermore, Top REIT makes it a management policy to keep the ratio of the investment amount perproperty at less than 20% of the entire portfolio as a target over the medium to long term. For reference, theacquisition value of the NEC Head Office Building accounts for 22.6% of the total acquisition value of Top
REIT’s properties as of the end of the fourteenth fiscal period. 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 andfixed interest rates, as it discerns the interest rate trends. Moreover, financial soundness will be maintainedby keeping the leverage at an appropriate level.
6

(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
that it can conduct management operations with full care given to market risks, including rent decreases,
and credit risks as well as with a focus on the protection of unitholders’ interests in conducting transactions
with interested parties and on other compliance issues.

6. Significant Subsequent Events
There are none applicable.
[Reference Information]
Top REIT decided at its Board of Directors meeting held on May 23, 2013 to convene the fifth General
Meeting of Unitholders, scheduled for July 25, 2013.

7

7. Outlook for the Fifteenth and Sixteenth Fiscal Periods
The earnings results forecasts for the fifteenth fiscal period (from May 1, 2013 to October 31, 2013) and thesixteenth fiscal period (from November 1, 2013 to April 30, 2014) are as follows:
Furthermore, the following are expected as the main factors of decrease from the earning results of the
fourteenth fiscal period (Note 2).
(Decrease in operating income)① The decrease in operating income is attributable to move out of major tenants at Harumi Island Triton
Square Office Tower Y such as Nippon Steel & Sumitomo Metal Corporation, and vacancies thus being
assumed for some of the leasable spaces after the tenants moved out.
② The decrease in operating income is attributable to rent decrease concerning the tenants subject to rent
revision in the fourteenth fiscal period, which accounted for 24.2% of tenants (Note 3), impacting theentire fiscal period. In addition, tenants reaching their rent revision or contract renewal period in thefifteenth fiscal period account for 11.1% (Note 4), the main property being Sagamihara Shopping
Center. The decrease in operating income is attributable to taking into consideration current real estateleasing market conditions and also taking into account factors that may cause fluctuations in suchaspects as risks of reductions in revenue due to decreased amounts of rent of tenants.
Fiscal Period

Fifteenth Fiscal Period

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

Operating Revenue¥5,125mn¥5,088mn

Operating Income¥2,112mn¥2,105mn

Ordinary Income¥1,504mn¥1,504mn

Net Income¥1,503mn¥1,503mn

Dividend per Unit
(excluding dividend in excess of earnings)¥9,700 (Note 5)¥9,700 (Note 5)

Dividend in Excess of Earnings per Unit
(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)¥0¥0The earnings results forecasts represented above are the current estimated figures calculated
based on certain assumptions. Accordingly, the actual operating revenue, operating income,ordinary income, net income, dividend per unit and dividend in excess of earnings per unit mayvary due to changes in the circumstances. Moreover, the forecasts should not be construed as aguarantee of the dividend amount.
It is assumed that the ¥451 million as income equivalent to expenses for restoring the property
to its original state in accordance with the relocation of a major tenant from Harumi Island
Triton Square Office Tower Y is recorded as operating income, and the same amount isrecorded as operating expenses
The ratio of tenants reaching their rent revision period is the monthly rent (including common
service fees) before rent revision of tenants reaching their rent revision period in the respective
fiscal period expressed as a percentage of the monthly rent (including common service fees)
received from all tenants in October 2012, and is rounded to the first decimal place.
The ratio of tenants reaching their rent revision period is the monthly rent (including common
service fees) before rent revision of tenants reaching their rent revision period in the respective
fiscal period expressed as a percentage of the monthly rent (including common service fees)
received from all tenants in April 2013, and is rounded to the first decimal place.
For the dividend per unit of the fifteenth and sixteenth fiscal period, it is assumed that, withregard to the ¥49 million reserved for reduction entry, Top REIT will not reverse the amount ofinternal reserves for the fifteenth and sixteenth fiscal period.
8Preconditions for Forecast of Earnings Results for the Fifteenth Fiscal Period (from May 1, 2013 to
October 31, 2013) and the Sixteenth Fiscal Period (from November 1, 2013 to April 30, 2014)
Item
Preconditions and Assumptions
Management
 Fifteenth fiscal period: May 1, 2013 – October 31, 2013 (184 days)
Period Sixteenth fiscal period: November 1, 2013 – April 30, 2014 (181 days) The forecast is based on 19 properties Top REIT owns as of June 13, 2013. The actualPortfolio Assets
circumstances may change depending on the acquisition or disposal of other properties.
Number of The number of investment units issued and outstanding is based on the number as of April
Investment
30, 2013, which is 155,000 units, and assumes that no issuance of new investment units will
Units Issued andbe made through April 30, 2014.
Outstanding It is assumed that the total amount of interest-bearing liabilities is ¥96,065 million, which isthe amount as of April 30, 2013.
Interest-Bearing  For the fifteenth fiscal period, it is assumed that the ¥67 million in long-term loans payable
Liabilities
will be repaid on June 28, 2013 as agreed upon.
 For the sixteenth fiscal period, it is assumed that the ¥67 million in long-term loans payable
will be repaid on December 30, 2013 as agreed upon.
 For real estate rent revenue related to existing properties, Top REIT takes into consideration
execution of new lease agreements and cancellation of lease agreements that have been
finalized or are scheduled as of June 13, 2013, along with current real estate leasing market
conditions, as well as factors that may cause fluctuations in such aspects as risks associatedwith rent revision due to fluctuations in rent of tenants reaching their rent revision period orcontract renewal period.
Operating
For Harumi Island Triton Square Office Tower Y, revenue is expected for leased space as
Revenue
described in the press release “Notice Concerning Conclusion of Lease Agreement with
New Tenant” dated April 24, 2013, as well as for leasable spaces for which execution of
new lease agreements are scheduled as of June 13, 2013. Furthermore, it is assumed theoccupancy rate of the property on the last day of May 2013 is 41.8%, from June 1 to the last
day of August 2013 is 62.5% and from September 2013 is 68.9%.
 Top REIT adopts a method of treating property, city planning and depreciable asset taxes,
etc. on real estate, etc. it owns, as expenses related to the rent business in the amountcorresponding to the management period out of the assessed and determined taxation
amount. In addition, as for the acquisition of real estate or beneficiary interests in trust inreal estate, the adjustments equivalent to property tax for the acquired fiscal year paid to thetransferor will be included in acquisition costs, and thus will not be recorded as expenses in
the corresponding period.
 It is assumed that the amount of property tax, etc. will be ¥583 million for the fifteenth fiscal
Operatingperiod and ¥582 million for the sixteenth fiscal period.
Expenses It is assumed that the depreciation and amortization will be ¥1,115 million for the fifteenthfiscal period and ¥1,116 million for the sixteenth fiscal period.
 Repair expenses for buildings, etc. may vary greatly from the forecasted amount due tovarious reasons. For example, emergency repair expenses may possibly arise due to
unexpected factors causing building damage, etc. Another reason is that repair expenses are
expenses that are not accrued periodically and, rather, the variation in the amount largely
depends on the fiscal period.
 Management operation fees are assumed by reflecting historical data, among other factors.
 It is assumed that non-operating expenses for the fifteenth fiscal period will be ¥608 million,of which interest on loans and interest expenses on investment corporation bonds (including
related expenses) will be ¥604 million.
Non-Operating
Expenses It is assumed that non-operating expenses for the sixteenth fiscal period will be ¥600
million, of which interest on loans and interest expenses on investment corporation bonds(including related expenses) will be ¥597 million.
9

Dividend per
Unit Dividends (dividend per unit) are calculated based on the dividend policy stipulated in Top
REIT’s Articles of Incorporation.
 It is assumed that, with regard to the ¥49 million reserved for reduction entry that wasinternally reserved in the twelfth fiscal period from gain on transfer of land for Nittetsu
Honmachi Building that was transferred as of November 25, 2011 by applying the Special
Measures in Case Land or Other Property is Acquired in Advance in 2009 or 2010 (asstipulated in the Special Taxation Measures Act, Article 66-2), Top REIT will not reverse
the amount of internal reserves for the fifteenth and sixteenth fiscal period.

Dividend in
Excess ofEarnings per Unit Top REIT does not currently anticipate dividends in excess of earnings (dividend in excessof earnings per unit).

Other 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.

10

8. Financial Statements(1) Balance Sheets(Unit: thousand yen)
Thirteenth Fiscal Period(as of October 31, 2012)
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
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
Total deferred assets
Total assets

11

Fourteenth Fiscal Period(as of April 30, 2013)

2,306,624
4,538,595
35,841
261,404
16
1,830
7,144,313

520,404
4,180,585
27,442
317,24916
1,830
5,047,529

1,148,529(177,991)
970,537
4,760(3,012)
1,748
17,235(10,398)
6,837
4,058
(1,028)3,029
4,888,525
61,987,617(12,813,533)
49,174,083
697,367(259,630)
437,737
237,480(105,241)132,238
246,048(111,964)
134,083
124,695,656
180,444,479

1,150,996(194,278)
956,718
5,559(3,153)
2,406
17,235(10,927)
6,308
5,013
(1,341)
3,671
4,888,525
62,648,114(13,869,346)
48,778,767
697,808(280,312)
417,496
255,258(118,488)
136,770
250,945(126,500)
124,444
125,686,918
181,002,027

1,850
127
1,977

1,603
106
1,709

10,000613,286
197,185
820,471
181,266,928

10,000706,676
211,855
928,531
181,932,269

29,39629,396
188,440,638

23,88423,884
187,003,684

(Unit: thousand yen)
Thirteenth Fiscal Period(as of October 31, 2012)

Fourteenth Fiscal Period(as of April 30, 2013)

Liabilities
Current liabilities
80,127

259,047

19,235,000
252,992
174,072688
102,725
945,950
2,785

135,000
247,216
130,623702
20,742
726,380
4,693

20,794,342

1,524,405

8,500,000
69,167,500
125,901
5,512,599
25,243
10,5258,500,000
87,430,000
101,016
5,286,521
26,141
166
7,901

83,341,769
104,136,112

101,351,746
102,876,152

Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total Voluntary retained earnings

82,260,100

82,260,100

49,95849,95849,95849,958Unappropriated 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
Total liabilities and net assets

2,001,377
2,051,336
84,311,436

1,822,649
1,872,608
84,132,708(6,909)(6,909)84,304,526
188,440,638(5,177)(5,177)
84,127,531
187,003,684

Operating accounts payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Noncurrent liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Deferred tax liabilities
Long-term advances received
Derivatives liabilities
Total noncurrent liabilities－

Total liabilities
Net Assets
Unitholders’ equity12(2) Statements of Income(Unit: thousand yen)
Thirteenth Fiscal Period(May 1, 2012 –October 31, 2012)

Fourteenth Fiscal Period(November 1, 2012 –April 30, 2013)

Operating revenue
5,605,257

Rent revenue – real estate

5,370,000

Other lease business revenue

30,966474,649

Total operating revenue

5,636,223

5,844,649

2,384,258

2,848,597

Operating expenses
Expenses related to rent business

430,000

416,586

Asset custody fee

8,464

8,443

Administrative service fees

63,97964,413

Directors’ compensations

6,300

6,300

Audit fee

10,00010,000Asset management fee

Other operating expenses
Total operating expenses
Operating income

36,19542,7792,939,198

3,397,120

2,697,025

2,447,529

Non-operating income
1,448

1,346

Reversal of dividends payable

606

1,093

Insurance income

774

234

Other

198

798

3,027

3,472

Interest expenses

503,691438,278

Interest expense on investment corporation bonds

42,82742,034

Amortization of investment corporation bond issuance costs

5,511

5,511

141,551

136,221

4,171

5,377

Interest income

Total non-operating income
Non-operating expenses

Borrowing related expenses
Other697,753

627,423

Ordinary income

2,002,299

1,823,578

Income before income taxes

2,002,299

1,823,578

Income taxes – current

949

945

Income taxes – deferred(0)0Total non-operating expenses

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

13

948

946

2,001,351

1,822,632

26

17

2,001,377

1,822,649

(3) Statements of Changes in Net Assets (Unitholders’ Equity)(Unit: thousand yen)
Thirteenth Fiscal Period(May 1, 2012 –October 31, 2012)
Unitholders’ equity
Unitholders’ capital
Balance at the beginning of the period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Surplus
Voluntary retained earnings
Reserve for reduction entry
Balance at the beginning of the period
Changes of items during the period
Provision of reserve for reduction entry
Total changes of items during the period
Balance at the end of current period
Total Voluntary retained earnings
Balance at the beginning of the period
Changes of items during the period
Provision of reserve for reduction entry
Total changes of items during the period
Balance at the end of current period
Unappropriated retained earnings (undisposed loss)
Balance at the beginning of the period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total surplus
Balance at the beginning of the period
Changes of items during the period
Provision of reserve for reduction entry
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Total unitholders’ equity
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Deferred gains or losses on hedges
Balance at the beginning of the period
Changes of items during the period
Net changes of items other than owners’ equity (net)Total changes of items during the period

14

Fourteenth Fiscal Period(November 1, 2012 –April 30, 2013)82,260,100

82,260,100－
82,260,100－
82,260,100－

49,95849,95849,95849,958－－49,958－49,95849,95849,95849,958－－49,9581,999,419

2,001,377(49,958)(1,949,435)
2,001,351
1,957
2,001,377－(2,001,360)
1,822,632(178,727)
1,822,649

1,999,419

2,051,336－(1,949,435)
2,001,351
51,916
2,051,336－(2,001,360)
1,822,632(178,727)
1,872,608

84,259,519

84,311 ,436

(1,949,435)
2,001,351
51,91684,311,436(2,001,360)
1,822,632(178,727)
84,132 ,708－

(6,909)(6,909)(6,909)

1,732
1,732

Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than owners’ equity (net)Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of the period
Changes of items during the period
Dividends from surplus
Net income
Net changes of items other than owners’ equity (net)Total changes of items during the period
Balance at the end of current period(6,909)(5,177)－(6,909)(6,909)(6,909)(6,909)

1,732
1,732
(5,177)

84,259,519

84,304,526(1,949,435)
2,001,351(6,909)45,00684,304,526(2,001,360)
1,822,632
1,732(176,995)
84,127,531(4) Statements of Cash Dividend Distributions
For the period
from May 1, 2012
to October 31, 2012

For the period
from November 1, 2012
to April 30, 2013

Amount(yen) (Note 1)

Amount(yen) (Note 2)

I. Unappropriated retained earnings

2,001,377,610

1,822,649,910

II. Total Amount of Dividends

2,001,360,000

1,822,645,000(12,912)(11,759)

17,610

4,910(Dividend per unit)
III. Retained earnings brought forward(Note1)

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the amountsof 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 Special Taxation Measures Act.” Based on these policies, Top REIT decided on a total distribution of
2,001,360,000 yen as distribution of income for the period. This is the maximum value arrived at when the number ofunits issued and outstanding (155,000 units) is multiplied by an integer, within the limit of unappropriated retained
earnings for the fiscal period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.

(Note2)

In accordance with the “cash distribution policy” stipulated in Article 34 of the Articles of Incorporation, the amountsof 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 Special Taxation Measures Act.” Based on these policies, Top REIT decided on a total distribution of
1,822,645,000 yen as distribution of income for the period. This is the maximum value arrived at when the number ofunits issued and outstanding (155,000 units) is multiplied by an integer, within the limit of unappropriated retained
earnings for the fiscal period.
Furthermore, Top REIT does not make cash distributions in excess of the profit as stipulated in Article 34-2 of the
Articles of Incorporation.

15

(5) Statements of Cash Flows(Unit: thousand yen)
Thirteenth Fiscal Period(May 1, 2012 –October 31, 2012)
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
Interest income and interest on securities
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in income taxes receivable
Decrease (increase) in prepaid expenses
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
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
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities

2,002,299
1,116,306
21
5,511(1,448)546,518（5,590）608
150（27,309）(14,939)
14,526
102,725
141,449（76,152）（23,270）
3,781,407(55,845)
32,816(7,612)(81,983)(219,570)(93,389)(19,154)
2,993,532

1,448（594,264）（826）
3,187,764

1,346(523,755)(931)
2,470,191(70,500)
70,500（10,058）（264,006）(18,586)
66,667（67,971）（293,955）(192,000)
192,000(4,642)(1,519,956)(24,885)
251,829(477,907)(1,775,561)－

16

1,823,578
1,121,794
21
5,511(1,346)
480,312
8,398－－

17,500,000（17,567,500）（1,949,435）(2,016,935)

2,800,000(2,800,000)
18,330,000(19,167,500)(2,001,360)(2,838,860)

876,874
5,968,345
6,845,219(2,144,229)
6,845,219
4,700,990－

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

Fourteenth Fiscal Period(November 1, 2012 –April 30, 2013)

9. Portfolio Data
Asset
Class

Area

Property Name

AcquisitionPrice

As of April 30, 2013
Appraisal
Investment
Value atBreakdown
End of Period(Note)(million yen)(million yen)(%)

NEC Head Office Building

41,95049,500

28.7

Harumi Island Triton Square OfficeTower Y

33,00030,80017.9

Akasaka Oji Building

9,660

8,060

4.7

Kanda Park Plaza

5,156

4,910

2.9

Shiba-Koen Building

5,770

3,470

2.0

20,00012,6007.3

12,70014,1008.2

Shinkawa Chuo Building

5,610

5,780

3.4

Faret East Building

2,091

2,410

1.4

135,937

131,630

76.4

Sagamihara Shopping Center

12,00010,500

6.1

Ito-Yokado Higashi-Narashino Store

8,900

5,620

3.3

Musashiurawa Shopping Square

4,335

3,880

2.3

MEL Building

1,210

1,260

0.7

26,445

21,260

12.3

Top Residence Nihonbashi
Kayabacho

2,400

2,580

1.5

Fukasawa House Towers H&I

10,6357,030

4.1

Ecology Toyosu Procentury

5,160

4,980

2.9

Impress Musashi-Koganei

1,223

1,260

0.7

Top Residence Yoga

1,165

1,170

0.7

Subtotal (5 properties)

20,58317,020

9.9

Central Tokyo

2,590

2,450

1.4

2,590

2,450

1.4

185,555

172,360

100.0

Central Tokyo
OfficeBuilding

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

Subtotal (9 properties)

RetailPropertyTokyo
Metropolitan
Area
Other
Major Cities

Subtotal (4 properties)
Central Tokyo

Residential Tokyo
Metropolitan
Property
Area

Other
PropertyOAK PLAZA

Subtotal (1 property)

Total (19 properties)(Note) The investment breakdown is the ratio of the appraisal value at end of period for the applicable property
or the applicable asset class to the sum total of the appraisal value at end of period for all properties in theportfolio and is rounded to the first decimal place.
17

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)
Shusaku Ohashi, 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.

18